the lira at a new low after comments from president erdogan. our middle east correspondent joins us from doha. it's not that it is new that president erdogan wants to cut interest rates. what is special about the comments he made on sunday? simone: no, it is not, this is something he has said any times, but the comments yesterday directly undermining what the central bank was talking about late last week when it cut interest rates again, saying there is limited extra room to cut rates further. that was something that could have had a stabilizing impact on the lira, and instead, we are hearing from erdogan saying more interest rate cuts ahead. also there were comments from a prominent business group calling for erdogan and his government specifically to stop this experimental monetary policy he has been advocating. instead, he fired back yesterday and said the group just wants to see me out of power. escalating the dispute between prominent business leaders the erdogan government. dani: not being swayed from his path of calling for cutting of in

measures from president erdogan. we will take a look at the futures. a sense of cautious stabilization bleeding into these markets after what we saw stateside, another close in the red. the s&p 500 posting the worst streak of three-day losses since september. lower five of the last six sessions. investors continue to weigh up the impact of omicron. moderna saying its third booster is effective. the ftse 100 is opening, currently up 0.6%. the spanish ibex is gaining 1%. we knew that futures were looking at a positive start after a close in the red. if it can be sustained as investors take profits and assess, the monetary policy response, omicron, and what is happening stateside in terms of the politics of bidens economic agenda. the cac 40 is getting 1%. we can look at the cross asset board. the futures stateside are pointing to gains after losses yesterday. gains of 0.6%. the u.s. 10 year yield is back to 1.4 two. brent and oil are higher after losses of around 3% yesterday. not close to making up the losses we saw yesterday, but nonetheless on a posit

eight days later, president erdogan pushed a central bank to go further. in his speech, he declared an economic war of independence. he said interest rates make the rich richer and the poor poorer. lira fell again by 15% and inflation grew to its highest level in three years. president erdogan and says his policy is the right way forward. >> some of these steep prices are expected to be balanced again soon. unfortunately, one of the reasons for the extortionate price rises is the greedy opportunists. ros: this is not just an economic crisis, it's night political crisis. a brawl or opted in parliament -- a business reporter in his temple on president erdogan's justifications for keeping the interest rates so low. >> the president has this idea that interest rates, he has called him the mother and father of all people. he believes higher interest rates stoke inflation and that runs contrary to what you might see in a lot of western central banks, the federal reserve, the bank of england, they all use higher interest rates to cool inflation. what president er

erdogan once lower rates -- shared one want -- erdogan wants lower rates. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ chair powell: the u.s. needs to get back on a sustainable fiscal path, where the taxes are rolling in, where employment is high. the inflation we are seeing is still clearly connected to pandemic related factors. i would also add that it has spread more broadly in the economy and i think that the risk of persistent higher inflation is clearly risen. jonathan: fed chair jay powell. inflation is broader, stickier, and we need to adapt, and that is what we are doing. equities are positive on the s&p , positive 0.4%. nasdaq futures are down about 0.1%. up a basis point on tens. speaking of fade, get to today's stoxx 600. over in europe, session lows, -1.5%. with pointing up at europe was closed when we started to slide a little more late in the session stateside yesterday. add to that session lows, and we rol

erdogan has ordered a series of interest rate cuts, despite soaring inflation. economists generally agree that higher interest rates help to stabilize inflation by encouraging consumers to save rather than spend. the new prime minister said he agreed with erdogan's mission of the economy and would not try to change course. jasper mortimer said the turkish public is increasingly fed up with spiraling prices. >> what erdogan hopes is that by keeping -- pushing interest rates down, he will generate growth, stimulate exports, factories will expand and employ more people. he will create jobs. unemployment is more than 4 million at the moment. however, his plan may not work out. turkey imports more than it exports. manufacturers will not be able to import the new machines, the new raw materials that they need to expand because the lira has fallen so low. when elections are held in 18 months' time, voters may not be thinking of the jobs that have been created, but the price rises they have suffered. >> authorities in scotland have encouraged people to work from home wh

resident erdogan announced the new finance minister -- president erdogan announced a new finance minister. the lira is at a new record low. what is the reason behind this latest move? >> turkey's former finance minister has been replaced. this, after weeks of speculation that he would be stepping down. this comes as president erdogan pushes for aggressive interest rate cuts despite high inflation , and undermining the lira. the new finance minister used to be the deputy finance minister. he has close ties with president erdogan and his son-in-law, who used to be the former finance and treasury minister. tom: the lira trading near record lows, the central bank forced to continue, under pressure, to cut rates despite inflation close to 20%. how does this play out for the fx markets going forward? what are traders saying? >> that is the million-dollar question -- where does the lira go from here? over the past month it has lost 30% of its value, hitting record low after record low against the dollar. yesterday, the central bank intervened officially in the fx markets by flooding the market w

erdogan? damian: not much good. there may be a call for an early election. the elections are scheduled for june 2023, a lot of people calling for a regime change. we had forecast growth in 2022 of something north of 3%, that is out the door. annual inflation we hope to remain around 20%. that is out the door. unemployment at 11%. things are going to get worse. tom: the history you and i studied, our global institutions to the rescue. can the world bank, the international monetary fund, president biden, can they rescue mr. erdogan? they can but they will not. turkey is a different animal altogether. think about how many locals have money sitting offshore. when the lira declines, the wealth effects on those households are quite goods. there dollars offshore are worth that much more. we should approve export competitiveness. this move is nothing short of spectacular. my colleague in london is looking for the lira -- they have buffers, but they would need to get a 20 before the banks rollover. lisa: let's say president erdogan is kicked out of office and there i

lira is rallying after its biggest surge yesterday since the 19 80's as president erdogan unveiled new measures. happy tuesday, happy homestretch to the holidays. it was a bruising session on wall treat and in europe. back-to-back 1% declines in this equity market. we are rallying back today but this question remains does the narratives and strategy that had so much pow for the 2021, can it last as it seems to wobble here on year-end. this was the setup going into this week. we had $30 billion poured into equity focused etf's. you're looking at the nasdaq etf which had the biggest inflow in 15 months. it was a tough week for the nasdaq. it did not help that people poured money in. yesterday we had another difficult session for those who went in and started to buy tech. in 2021, 68% of the time when the s&p pell 21% it was able to reverse losses the next day and we have not yet seen that. we are looking at a u.s. futures session, european futures session and asian cash equity trading session pushing higher. it is stronger for europe. more value, cyclical stocks benefiting considering th

i remember talking to president erdogan years ago and he was saying similar things. we are now starting to see his turbulence in the equity market. if we start saying the currency volatility bleeding into other asset classes. >> you are focusing on the equity market. the focus needs to be on the u.s. dollar credit market. kailey: it looks like we are having connection trouble with damien. can you hear us? he can't hear us. i think it's a really interesting question. we have been talking about this in turkey for quite some time. president erdogan doesn't feel any pressure to change his course. >> absolutely not. he's been talking about this unorthodox approach for quite some time. those kind of protections that are available, if they stop working than the endgame of this goes towards president erdogan. if people in the street start to feel there's nothing in it for them, then the game changes. kailey: on going to make a hard pivot and talk about movies. $253 million debut that smashes the pandemic record. saturday was the busiest day globally since christmas 2019. >>

what i find fascinating is the change of erdogan over 17 years. i never would have thought this sitting at the ritz-carlton in istanbul 17 years ago. caroline: it was a couple of years ago that we started to move the market when we understood this new focus of erdogan, the fact that he did want to cut rates in the pace of inflation. this whole seismic focus of him as a leader in the political interference we continue to see as we see the ushered in of the governor. tom: we will continue to monitor that. dow futures up to 19. in the yield space, 1.45 percent on the 10 year. so much quiescent. oil, 74 dollars $.23 on brent. coming up, jenny -- coming up, janet mui. good morning. ♪ laura: we will hear from the european central bank a few minutes from now. the ecb is set to unveil a gradual withdrawal from its extreme there he stimulus. -- from its extraordinary stimulus. in turkey, the central bank says it is ramping up a cycle of interest rate cuts, but first it cut its one-week we prorate -- one-week repo rate in support of monetary policy. that

erdogan said they would be raising the minimum wage by 50% next year. in dollar terms that means 40% of the workforce in turkey will be getting paid $275 per year, up from $186 on a dollar adjusted basis. it was as high as $380. you could expect to see the 11% unemployment rate in turkey going from here because employers are not going to pay that. it is bad news ahead, it is bad for the economy. erdogan is doing everything he possibly can to right the ship ahead of the june 2023 elections , when his power will be called into question. guy: it is a strange one. let's talk about the banking sector. is the banking sector still able to handle this, because that is critical. damian: i just had a call and he told me if the lira is below 20 to the dollar -- we had mentioned in the past there are five hsbc, unicredit, that are most exposed to the turkish banking sector, but they have created enough reserve buffers in dollar so they should be able to stem the losses in the near term. the banking sector, those are the ones they're probably most insulated from wha

dollar, president erdogan saying further cuts to interest rates on the cards as inflation is around 21% in the country. currently, you are looking at losses of 6% on the turkish lira. let's get the bloomberg business flash now with laura wright. laura: elon musk he will pay more than $11 billion in taxes. the levy comes after musk sold his shares to cover the taxes related to those transactions. the world's richest man has been reducing his stake in the electric carmaker after the result of a twitter poll on a sell down. blackstone is nearing a deal to acquire luxury apartment rentals in downtown manhattan. the firm's latest wager on real estate. bloomberg learns the property giant are in advanced talks to acquire residential tower for $930 million from brookfield asset management. it's the latest in a series of recent bets on the staying power of higher new york buildings. chinese ev maker neo has unveiled a second electric sedan, named the et5, with a price tag of just over $51,000 before government subsidies. it's the most direct rival to tesla's popular model three and will be avail

president erdogan or places his finance minister, further weakening the lira. here with us now is damian sassower of bloomberg intelligence. what is leading this last leg lower? damian: this revolving door of central bank policy. in this case, the minister of finance being replaced. what this means is there is no credibility in turkey whatsoever, and the lira has now plunged through 13.72 the dollar. we all talk about spillover and contagion into the broader markets. the only mechanism i can see that happening is through the european banking committee, five banks that are at risk. bbva stands out. but outside of that, it seems like foreign bank claims on turkey from the european banking sector or from the global banking sector is down something on the order of 30% since 2018, so it seems to be insulated from our perspective. guy: we get cpi tomorrow. what do we think we are looking at? damian: maybe 20%. we are already at 19%. maybe a bit of an increase. but we are so far from an equilibrium price in the dollar-lira right now. is it 500, 800, 1000 basis points

mohamed el-erian coming out openly against erdogan. it is unbelievable what we are seeing. 1825 on the lira, down 9% overnight and getting worse. guy: the financial system at the moment is just about holding up. what do cracks look like when they start to appear? where should we be looking for the system, for evidence the system is not coping? damian: if we start seeing blind spending, and we start to see that in the increase in the minimum wage by 50%, and now we will see a lot more if the government trying to put a band-aid on this. they do not have the funds necessary to do this. we were calling for 3% to 3.5% gdp growth in 2022. we will not come close to that. the risk of recession is evidence. we are looking for cracks in the financial system spread into the banking sector. bnp is at risk, unicredit, ing. they all have exposure in the form of $140 billion in obligations to turkeys financial system. if that starts to spread into the financial sector, that is probably the next shoe to drop. the five-year print up 100 basis points si

here's president erdogan on that. translation: we will not - let our turkish lira be swallowed. there are some troubles at the moment, and we will get over them as soon as possible. nobody should doubt that. we are determined to put an end to the uncertainty that has arisen due to the fluctuations in the exchange rate, and the exorbitant price increases as soon as possible. last month, inflation hit 21%. this is the reality. the price of wheat has gone up 109% sunflower oil, 137%. toilet paper, 90%. families are now queuing for subsidised bread because they can no longer afford market rate at bakeries, even though bread is one of the cheapest staples. so let's get the latest from istanbul — our business co—respondent, victoria craig, is there. the justification is that president erdogan wants to see an environment that has low interest rates and high growth. and he's got both of those at the moment, but they aren't exactly working as he thinks they should be. so growth is up above 7% in the third quarter from a year ago. interest rates have been cut by one percentage point t

. >> less than a week after he appointed a new finance minister, erdogan has said turks should be patient and trust that his new vision will lead to growth and jobs. he has made interest rate cuts despite soaring inflation. he has -- it has made life difficult for many families. >> leading up to by cutprice bread. the traditional stronghold of president brca 1 and his ak party. even here, residents are losing patience. "the government must change. for 20 years, it has been the same system, the same politics." "the situation is really bad. it is not just me, it is everyone." the decision taken by istanbul's mayor as response to the growing crisis. >> we are processing 1.5 million loaves of bread and there are still cues -- still queues, so it's not enough, not merely an economic crisis but a political crisis. i see this as an inability to run the country. >> as the liver continues to plunge, thousands have taken to the streets, calling for her to resign, but the president is urging residents to trust him -- as the lira continues to plunge. inflation reached a three-year high last month. >>

erdogan has repeated that over the last few days. shery: simone foxman with the latest on the lira and turkey. you can get a round up on the stories you need to know in today's edition of daybreak. subscribers go to your terminal. this is bloomberg. ♪ haidi: let's get a quick check of what is moving in tokyo and seoul. we are watching travel stocks falling after japanese carriers have been suspending inbound bookings for all of december. in korea, travel names are also being affected. they have reported their first omicron variant cases in five people. korean air one of the biggest losers. we are seeing some of those tour companies down. korea announcing to implement the 10 day quarantine for two weeks. watching those japanese airlines. in australia, we are watching after pay. the delay of the vote for $26 billion takeover. it could lift the odds of its failure due to the 23% discount in the 2021 peak. we are also watching after pay on account of the meeting being postponed amid the spanish regulatory approval delay, as well. shery

in terms of president erdogan, do you think he will keep cutting interest rates? 0r he will keep cutting interest rates? or call on his central bank to do so? fin rates? or call on his central bank to do so?— rates? or call on his central bank to do so? on sunday, we saw him continue _ bank to do so? on sunday, we saw him continue to _ bank to do so? on sunday, we saw him continue to say - bank to do so? on sunday, we saw him continue to say that l bank to do so? on sunday, we | saw him continue to say that he will not back down. he doesn't know any other way to operate. he is leaning on islamic ideology here which goes strongly with his support base so for now, i suspect he will continue to do this as long as possible. continue to do this as long as ossible. ~ continue to do this as long as possible-— continue to do this as long as ossible. ~ ~ , ., . possible. we will keep a close e e. possible. we will keep a close eye- jason. — possible. we will keep a close eye. jason, thank _ possible. we will keep a close eye. jason, thank you. - let's get some of th

president erdogan of turkey is removing the treasury of finance minister. he has been in the job as minister of finance and treasury since november of 2020. he previously was minister of development. this is not changing the guard of the central bank, which everyone had been conjecture lily concerned about -- been particularly concerned about the ramifications of central bank policy. but this is the man in charge of the purse strings of turkey being removed. romaine: we talked about how economic and monetary policy is being driven from one person or one officeand some of the deputies beneath erdogan may have not as much control of the market. taylor: it goes against economic theory, that when inflation rises, you cut interest rates. not one, not two, totally blown out multiple sigma events. caroline: i remember the lira crash spurred for the first time in a long time the central bank to intervene to transport the currency. romaine: 13.27 on the lira versus the dollar. caroline: stick with us. this is bloomberg. ♪ ♪ taylor: today we are focused on the bl

president erdogan said they will make up the losses. authorities offering to help exporters mitigate losses. and chile's president elect says his government will maintain fiscal discipline when he takes office in march. he is seeking to reassure investors after assets tumbled following his election win. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. rishaad: we will hear from a company weighing in on compliance and working from home. yvonne: and the top risk impacting global markets as we head into 2022. this is bloomberg. ♪ >> there's going to be a bit of a roller coaster ride. >> the continuation of volatility. >> the cycle is really about a change in regime. >> they left a lot of options open. >> the timing of things has been a bit complicated. >> the market is still uncertain about how to process this news. >> the possibility of tighter policy next year. >> there's going to be high volume. >> the

let's move to turkey where president irvin has released the countries -- president erdogan. what is behind -- what is the reason behind the latest move? >> turkey's former finance minister has been replaced after weeks of speculation that he was planning on stepping down. this is due to a risk over the central banks aggressive rate cuts despite high inflation. he was in the job for just over 12 months. he has been replaced by the man who was a deputy finance minister since 2018. he has a close relationship with the president's son-in-law. he is a controversy -- had a controversial term as economy minister back in 2018 and resigned two years later. recently he has been showing support for the fight against high interest rates. dani: this comes at a time when the lira is already trading near record lows in the central bank is being forced to intervene in the fx market. >> that's right, over the past few weeks the lira has been an absolute turmoil due to unorthodox economic policies. the lira has depreciated 30% in one month alone and it is hitting multiple record lows against

president erdogan in5i5t5 his policy is right way forward. some of these steep prices are expected to be balanced again soon. unfortunately, one of the reasons for the extortionate price rises in our country is the greedy opportunists. this isn'tjust an economic crisis. this is now a political crisis this brawl erupted in parliament last week during a debate on the country's budget. business reporter victoria craig is in istanbul on president erdogan's justification to keep interest rates low. the president has this idea that interest rates is called the mother and father of all evil and higher interest rates stoke information and that runs contrary to what you might see a lot of other west end central banks and the european central bank and they all use higher interest rates to cool inflation. essentially what they want to see is a he believes in that case lower interest rates that attract investors here and make them want to invest in the country and borrowing costs and lower interest rates and that helps stimulate the economy but so far th

we'll gauge the impact of turkish president erdogan�*s economic policy. and what to do about christmas waste, we look at the solutions to an annual problem. the uk jobs market is awaiting the next set of figures expecting to record the highest ever number of vacancies exacerbating the staff shortage problem faced by many businesses. last quarters figures showed thatjob vacancies had reached 1.2 million due to post—brexit labour shortages and the post—covid reopening. many businesses are struggling to recruit as the latest report from manpower shows the jobs market hiring intentions has accelerated to a 30—year high. nina warhurst reports. who could have predicted this? from a pandemic that punished the economy, lots ofjobs are now available and not enough people to fill them. this hotel in manchester bounced back to a high number of bookings but despite recruitment drives and training new faces they are 30 members of staff down. adrian, where is everyone gone then? good question. some went back to europe in the early part of the year and then some p

some experts have blamed president erdogan, saying his economic policies are reckless. from istanbul, our international correspondent orla guerin reports. runaway inflation and a plunging currency. it's been falling so fast it's hard to keep track. for turks, the exchange rate makes painful reading. the lira doesn't go far these days. many are counting their pennies. this is kasimpasa, the istanbul neighbourhood where president erdogan grew up, traditionally one of his strongholds. yilmaz sees the prices and walks on by. he has to borrow to survive and he is furious with the president. these days, when the president utters a word about the economy, the lira nosedives. he insists that cutting interest rates will curb inflation. most experts believe the opposite. if he gets success by using this new model, i think he will get a nobel prize. this professor of finance says the president's policy is a costly mistake. i'm sure that it will not work, this new model. we will lose days and days, years and years, and i am so sad for the young people in turkey. they are getting mo

erdogan has agreed to raise minimum ways -- waged by 50%. there are other things he put into the announcement, the positive news coming out yesterday. all of which is the hyper inflationary nature. with inflation running at 21% year-over-year, we expect that now to go up considerably in the new year. guy: in terms of the currency move we have seen today and yesterday, how much of that is this working or how much of that was basically just a short switch? damian: that is the question. i'm not going to speculate. sure, that is what i get paid to do. save -- the banks in turkey, you probably saw a number of those stepping into the market after the close yesterday. selling dollars, buying lira. i can't imagine the retail buying of the lira in that magnitude at that time of the evening. it is yet to turn on itself. i will be watching very closely. the conflict with many of these banks, they are limited to say the least. alix: really good analysis there. thank you very much. this is bloomberg. ♪ alix: two hours into the trading day. we are at hi

erdogan and the government stepping into the market, trying to alleviate the pain in the lira itself. that allowed for the biggest gain since 1980. we are continuing to see that gain today as well. let's focus on the virus story. joe biden has warned that the omicron variant will result in more breakthrough infections among vaccinated americans but they are unlikely to be severely ill. he added, a winter of severe illness and death awaits the unvaccinated. let's get the details from michelle cortez. good morning to you. talk us through biden's strategy to fight this new wave. michelle: biden is really setting the united states out to understand what's coming. what's coming is a wave of omicron that is unlike what has been seen to date in the u.s. which has been the hardest hit of all countries. biden is saying he expects to have cases within the white house where everyone is vaccinated. he wants the entire country to know that they need to take action, to get vaccinated, to get a booster, stay indoors number protect yourselves. at this point, the u.s. doesn't want to put in new restri

erdogan once lower interest rates. that led to inflation to surge. global news, 24 hours a day on-air and on quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ >> this is a worldwide challenge. a natural byproduct of the world economy shut down by the pandemic as it comes back to life. prices are still out of sync as the world comes back. this new variant is a cause of concern, not a cause for panic. we will fight this variant with science and speed, not chaos and confusion. jonathan: good morning. your equity market is up 27, a bounce in the equity market once again. for your 10-year treasury yield all over the place to last week or so, yields up by three basis points to 143.75. the cleveland fed president speaking to kathleen hays yesterday, making the taper faster is buying insurance and optionality. there is a difference between baking in flexibility and charting a clear, direct path towards a rate hike. perhaps that is what separates the call from morgan stanley and goldman sachs. th

erdogan looks at a span of seven years of turmoil and the recent unwind, i am not going to go into the mathematics right now, but it is an absolutely textbook lira we getting. it is stunning over the last four days. lisa: this is a capital flight from the nation. this is a fire sale of the nation's currency leading to social unrest. at this point, it is a complete political liability leading to calls for regime change. honestly, the scale of depreciation, just to give you a sense, there is anger sweeping among highways, where people are protesting because their money is not worth anything, and that leads to an inflationary spiral that is absolutely prohibitive. tom: with great respect to the true expert of this, stephen hankey of johns hopkins, we are not yet to the extreme, the first and second derivatives that are out of control. but nevertheless, this is something to watch into the weekend. coming up, we begin two important interviews on the stock market. christopher grisanti later. next, anna han of wells fargo. good morning. ♪ mom, hurry! our show's gonna start soon! i promised

erdogan's approval ratings are the worst of his entire presidency and that has further call. tom: eurasia group president ian bremmer on all things turkey in russia. coming up, almost a year since the u.k. technically severed ties with the eu. we look at the impact on finance and the city of london of brexit. this is bloomberg. ♪ ♪ tom: welcome back to the open. 52 minutes into the european trading day. positive handover from wall street. positive handover from asia gains. let's focus in on all things u.k. recap what has been happening over the last 12 months. it has been a year almost since the u.k. technically severed ties with the eu. we are looking at the impact on finance and the city of london. joining me now is bloomberg's u.k. economy reporter. what has the impact event on the city of london finance over the last 12 months? lizzy: it has not been as bad as some had predicted, but you have seen brexit pushing finance firms to relocate some of their people, assets, operations to the continent. ey said it had been worse had it not been for covid because the pandemic

you know that erdogan pass the legislation where the the governments will backstop any lira losses on local deposits. that is what drove the recent rally 11% today where back and attends we were in the 18 handle last week. this is almost a doubling of the lira, an unbelievable move, unprecedented. anna: we have heard a lot from president erdogan this week and heard about the new policy and it is designed to persuade average turks to convert their currency into dollars. from what we have heard so far, you think that can be successful? damian: there are 260 $5 billion of hard currency deposits within the current -- the turkish banking system so now the central bank of turkey will backstop all of that. if it all comes back on shore, good luck with that. it will not be good for their fiscal situation. it will probably rise. once the lira does depreciate it means that, quite frankly they will have to print a lot more money and their monetary base will expand and that is not good for inflation. kailey: i did not remember -- i do not remember the last day we did not talk about the turkish li

president erdogan says he will continue to push for rate cuts even in the face of inflation. the dollar right now weaker against the lira. back to a 15 handle after the erdogan administration introduced a new program to protect savings from fluctuations in the local currency. that is providing some support right now. let's get back to washington. everyone on capitol hill and in the white house were shaken when joe manchin announced he would not support the president's build back better program. joining us to discuss is wendy schiller, brown university professor of political science. it is great to have you. this would seem like a major blow to the democratic party. you don't think it is. why? wendy: i think it gives the biden administration and congress a favor. the agenda is so crowded and they have gotten a number of things done. infrastructure, the debt ceiling, ensuring some financial stability. they have student loan forgiveness that may and in the winter, but a lot of things to take credit for. infrastructure money has to be spent. you will need designs and shovel ready

we'll examine if president erdogan has played a role in its decline. and the australian actress rebel wilson talks to the bbc about fame, fertility, and food. lets return to our top story. the virtual summit between the two presidentjoe biden and vladimir putin, which took place this afternoon — with ukraine top of the agenda. —— the two presidents. in the last few hours, us officials have told members of congress that us officials have now received assurances from germany the new nordstream 2 pipeline — which links russia with europe — would be turned off indefinitely in the event of a russian invasion. the americans and their allies are desperate to turn the screw on president putin, before he presses the button on any invasion plans. evelyn farkas is an national security adviser who served as deputy assistant secretary of defence for russia, ukraine, and eurasia. good evening to you. do you think there's a diplomatic way out of this? , ,, �* , there's a diplomatic way out of this? , «e �* , ., there's a diplomatic way out of this? , �

as president erdogan doubles down on policies credit swiss has done an overhaul of its lending board. the ceo of europe, middle east and africa the head of the lender's bank division will now lead the america's division this as the bank continues its restructuring program amid heavy losses and scandals. it also said there's an investigation of the covid rules. 68 million euros after withdrawing his job in 2018. the spanish bank was directed to pay a sign on bonus. he's been running the italian lender since april, saying he hoped this decision would close the matter so, quote, we can all turn the page. >> we'll squeeze in a quick break. but coming up the new german chancellor meets with the polish prime minister for the first time against a backdrop of differences. the latest right after the break. where's mom? she said she would be home in time for the show. don't worry, sweetie. she promised she'd be here for it. ooh! nice shot! thanks! glad we have xfinity, with wifi speed faster than a gig! me too! woah, look! mom is on tv! she's amazing! (cheers) xfinity brought us together, after

president erdogan said the president will make up for losses in lira deposit should the currency decline exceed bank rates. they will help exporters mitigate risks. the lira bounced back from record lows on new measures. chile's leftist president elect boric, says his that-- his government will continue -- maintain fiscal discipline when it takes office in march. boric is seeking to read sure investors -- to reassure investors after the peso was closing at a record low and the main stock gauge falling 6% monday. g-7 nations this press over hong kong's legislative elections. the g-7 foreign ministers criticized electoral changes imposed by china's central government last year. saying they eroded the cities democratic elements and undermined its autonomy. hong kong reported its lowest ever turn out in global election sunday with 30% of registered voters posting ballots. china has slept an unprecedented $210 million fine on a top e-commerce streamer -- for tax evasion. it avoided taxes totaling $100 million by concealing her personal income and making false declarations. viya is china's mos

the currency has hapten value so far this year due to the rate cuts and as president erdogan exerts increasingly closer control over the central bank economist on warning that local businesses are being hit hard. >> what turkey expenses today cannot be called high volatility any longer, but depreciation in the value of the turkish lira. companies are not able to determine the cost levels therefore they are not able to run their operation smoothly. it is impossible for them to set prices even for a couple of our -- hours on the sale. it means that operations are under the threat of being frozen. >> how has all of this affected or know people? >> the knocked down effects have been fasted naval as people watch their savings and earnings dissolve. it affects 6 million workers particular those that are only wearing -- earning minimum wage. restaurant owners already say they are struggling with steep price -- price hikes and had to pass it on to customers. >> we have to increase our prices by 50% because of the jump in the minimum wage. how would our customers be able to afford our products? that is w

more stories around the world now, starting in turkey where the lira has rebounded after president erdogan promised to compensate lira bank account holders for the value of the currency which has seen drastic losses over the weeks. japan has carried out the death penalty for the first time in two years. the three death row inmates were hanged on tuesday. they had all been convicted on multiple murders. capital punishment has widespread support in japan, despite criticism from civil rights groups. after western troops withdrew from afghanistan, many governments halted humanitarian aid. the taliban are unable to feed their own people with more than 20 million afghans estimated to be at risk of malnutrition. aid organization unicef has stepped in to fill the gap of getting supplies to those in need and set it is a major challenge. >> the only road leading to this remote area along the border with pakistan has been partly destroyed by mines. we are driving to an area where the afghani army and the taliban fought for decades. the people who live in this village were caught between the two sides

erdogan announced steps including promise to compensate sabers from losses. >> if the deposited earnings of the turkish lira assets in our people's bank are higher they on the exchange rate increase, they will get this return. however if the return exceeds the deposit earnings, the difference will be paid directly to citizens. this income will be exempted from tax and we will put into use a tool that will ensure turkish lira assets are used in a way that does not create a new foreign-exchange demand. our citizens need to switch their deposits to foreign-currency, fearing that the rate will be higher. >> chile's peso has bounced back after the election of a leftist student leader. gabriel defeated his conservative rival. in his first day as president, he tried to ease fears his leadership would cause economic instability. >> before going in to meet the president, porridge made a detour, one way of sending a message that no one is more important than the ordinary people who voted for him. then, he went into the presidential palace where the 35-year-old former student leader will be the bos

president erdogan said turkey's destiny would not be determined by speculators. the defence in the sex abuse trial of ghislaine maxwell in new york has called its first witness. cimberly espinosa, a former assistant to the british socialite, described her as fair but demanding. thousands of people are seeking refuge from a super typhoon which is battering the southern philippines. the red cross said it was one of the strongest typhoons this year and warned that climate change was making storms more ferocious. hello, and welcome to our look ahead to what the papers will be bringing us tomorrow. to what the papers will be with me isjohn stevens, who's the deputy political editor at the daily mail, and the author and journalist rachel shabi. hello to you both. quick look through the front pages for our viewers. the daily mail reports that senior tories are lining up to take aim at professor chris whitty as borisjohnson comes under pressure to rein in what they describe as "alarmist" government scientists. the i says millions of people are choosing to stay at home wi

in turkey, president erdogan has pledged to continue with rate cuts. he also said turkey will not back down from its new economic model, relies on lower borrowing costs at a cheaper currency. the lira is the world's worst performing currency in the last three months, losing a must-have its value against the dollar. and spider-man: no way home posted the second-highest opening-day in north american box office history, trailing only of interest: in game. it is set to hit 400 $22 million for the weekend, that would make it best november -- december debut of all time. many theaters were sold out. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. haslinda: thank you so much. let's look at markets. risk off in asia. benchmarks in negative territory, under pressure on a slew of demands including the omicron viruses parking renewed restrictions, rising u.s. tensions. looking at where we are for u.s. futures, all in negative territory. we

dramatic losses suffered on monday as investors responded to plans announced by president recep tayyip erdogan. he said no one would need to convert their lira savings into dollars because of concerns about the value of the turkish currency. police in the philippines say the number of people who've died after a super typhoon hit last week has risen to more than 375. the red cross says it's carnage in many areas, with no power, no communications and very little water. earlier, i spoke to senator richard gordon, the chairman of the philippine red cross. he gave this update of the situation. i still expect the death toll to rise, but on the part of the red cross, we're so busy with the disaster, but we're going to eyeball the people that they said have died. in the meantime, the threat is rising because there are people in one island, in siargao, and our people just arrived there. can you imagine, we tried for the last 48 hours to get there. they're finally there, it's an isolated island, it's a tourism island, but 100,000 people are there. and a lot of people are in a panic because none of the f

president erdogan said turkey's destiny would not be determined by speculators. the defence in the sex abuse trial of ghislaine maxwell in new york has called its first witness. cimberly espinosa, a former assistant to the british socialite, described her as fair but demanding. thousands of people are seeking refuge from a super typhoon which is battering the southern philippines. the red cross said it was one of the strongest typhoons this year and warned that climate change was making storms more ferocious.

president erdogan promising to do more. from new york, i'm alix steel. welcome to "bloomberg markets." if we can't take yesterday's price action seriously, do we have to take today's seriously? when do we get a read? guy: today is less useful than yesterday. the volume is down. i don't think you are getting a particularly high --. it does not feel convincing. yesterday was interesting inasmuch as what we saw there was actually reaching into different places into the market. that was fascinating, because that wasn't just we are going to sell big tech, we are going to sell everything. that may be an interesting narrative. alix: the rotation in the market, it is hard to know if there is a story we can take out period pfizer down 6%. the biggest drop we have seen since june 2020. magan micron performing. how they fit together -- microsoft and gas performing. how they fit together? guy: we need to get people back or maybe they don't. maybe omicron figures in. there are a lot of things hard to judge at the moment. the market is struggling with it. the clear ta

i've been listening to erdogan in turkey! inflation is going up, cut rates. long after people - were expecting them. i remember in 2009 when interest rates were cut to record lows, - and we all thought in a few months, in a couple of years, _ it'll back to normal. here we are 12 years later, and they were at 0.01%. l they put them up 15 basis points. that is 15 one hundredths of 1%. still incredibly low, - and i think a lot of people thought that, blimey, if 5.1% isn't enough i for the teeniest little increase i in rates up from 0.1 in a decade, then what is? the bank of england were expecting to do it last month. _ they held off, and then the omicron virus, a lot of people thought - they would hold off again. i think they have got to be seen to be in the price stability- game, as the ft put it, - which is kind of their mainjob. what i would say... what are they there for otherwise? other people would say, _ what is this really going to change? also, when it comes to inflation, this is a global phenomenon. - you've got supply chains. iwill raising interest ra

inflation is soaring, but president erdogan has been putting pressure on the central bank to cut interest rates to boost the economy, which it has done for three months in a row. and is widely expected to do again later today, risking a further sell—off in the lira. our reporter victoria craig is in istanbul, where she's been following the story. victoria, is a bad situation about to get worse?- victoria, is a bad situation about to get worse? well it could be. — about to get worse? well it could be, victoria. - about to get worse? well it could be, victoria. as - about to get worse? well it could be, victoria. as you | could be, victoria. as you said, the central bank today will have its rate decision at 11am local time, a couple of hours from now. it is widely expected it will cut interest rates, as you say, for the fourth straight month of a row by one percentage point. central bank decisions, things don't always go according to expectations. but the issue is what investors and people here are really concerned about is what happens after that, because, as you say, the lira has yet

i've been listening to reccep erdogan in turkey! inflation is going up — cut interest rates! long after people - were expecting them. just to put it in context, . i remember in 2009 when interest rates were cut - to record lows, and we thought in a few months, in a couple of years, they'll be - back to normal. here we are, 12 years later, and they were at 0.01%. . so they put them up - what they 15 basis points — that's 15 one - hundredths of a %. still incredibly low, - and i think a lot of people thought that, "blimey, if 5.1% isn't enough - for the teeniest little - increase in rates up from 0.1, then what is? ! " of course, the bank- of england were expecting to do- it last month. they held off and then, | the omicron virus was — a lot— of people thought they would hold off again. i think they have got to be seen to be in the price - stability game, as the ft put it this morning, - which is kind - of their mainjob. what i would say... what are they there for otherwise? the point is other people - would say, "what is this really going to change? " also, when it comes

it is now at 14%, this to support president erdogan's unorthodox monetary policy. global news, 24 hours a day on air and on bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. shery: and here in the u.s., the fed has the white house is confident after its hawkish pivot this week. the council of economic advisers cecelia rose spoke with bloomberg about the pandemic's impact on inflation and more. >> it has been our sense since the beginning that the inflation we are seeing is due to the mismatch of the pandemic. this pandemic was a catastrophic blow to our economy, to the worldwide economy. it generated supply disruptions because the supply disruptions because the supply chain was highly calibrated and any disruption was going to perturb that system. at the same time, the president was committed to assuring that the president had the funds to buy food, to pay their rent, to take care of their families, and that demand has outstripped the capacity of the supply chain. so it's always be

erdogan. coming up, saudi arabia expects its first budget cuts in eight years. we have the finance minister in an exclusive from bloomberg. ♪ manus: it is "daybreak: europe." want to check on the lira again, building on this narrative, the new turkish finance minister reassuring businesses on the market and economy. he had a meeting over the weekend. of course he reassured them the government won't retreat from free-market principles amid the currency rout. this is a six-hour meeting he had with them. of course he favors rate cuts. unlike his predecessor who quit. the market grasps a hold of that line. he favors rate cuts, unlike his predecessor who quit. the lira has dropped over 50% this year. saudi arabia poised to deliver the first budget surplus in a decade, and the finance minister says the kingdom wants to diversify the economy and revenues. >> we have been working on this for an extended time under vision 2030, where we want to diversify our economy but also our revenues, and we want to make sure we have the stability so that our budget does not fluctu

we had comments from president erdogan pledging cutting rates. let's get you more when it comes to the covid situation in new south wales. daily new cases in the last 24 hours, 2501 new cases in the last 24 hours in new south wales so investors are facing a covid resurgence in australia and other parts of the world. and there was also the sharp rejection of president biden's economic agenda. president biden's top medical advisor saying lockdowns are likely to not be necessary though the hospital system will be stressed. >> the thing that continues to be troublesome to me is the fact that we still have about 50 million people in the country who are eligible to be vaccinated who are not vaccinated. when you have that degree of vulnerability and you have a virus like omicron that spreads so rapidly, it is quite likely that we will see in some sections of the country a significant stress on the hospital system. host: let's bring in our bloomberg editor and our congress reporter. record virus spread globally, the likes of senator warren testing positi

president erdogan pledged to continue cutting interest rates. the lira has lost almost half its value. in china -- more monetary support to an economy showing strain. the low rate has been set at 3.8%. the new spider-man movie set a pandemic era record in its north american debut. international theaters brought in another $334 million. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i'm laura wright. this is bloomberg. ♪ >> i don't foresee the kind of lock downs we see before but i certainly see the potential for stress on a hospital system. >> dr. anthony fauci doesn't think we are headed toward any kind of lockdown. >> another linens headed into lockdown over the weekend. all of that was really to deal with the delta wave. germany deciding whether they will have vaccine mandates. limiting the fun that people can have on new year's eve. >> i don't think this is the holiday season any of us were anticipating. the markets leaving something to be desired this

i'v e i've been listening to erdogan in turkey! inflation is going up. long after people - were expecting them. i remember in 2009 when interest rates were cut to record lows, - and we thought in a few months, in a couple - of years, back to normal. here we are 12 years later, and they were at 0.0%. i still incredibly low, - and i think a lot of people thought that, blimey, if 5.1% isn't enough i for the teeniest little| increase up from 0.1, then what is? the bank of england were expecting to do it last month. _ they held off and then the omicron virus, a lot of people thought - they would hold up again. i think they have got to be seen to be in the price stability- game as the ft put it, - which is kind of their mainjob. what i would say... what are they therefore otherwise? other people would say, _ what is this really going to change? also, when it comes to inflation, this is a global phenomenon. - you've got supply chains. will raising interest rates right now have _ will raising interest rates right now have any— will raising interest rates right