Allchair #TanerKilic who was jailed for over a year on terror charges. Earlier,another court had released two Greek soldiers charged of espionage. entertaining coincidence of timing when still no word on release of US pastor BrunsonBeneath the smiles of joy and relief there will be sorrow, inflame and a steely determination.
Sorrow for all the things Taner has missed during his cruel incarceration. inflame that the baseless charges against him and the Istanbul 10 have not been dropped. And determination to continue our fight for human rights in Turkey and for the release of all those human rights defenders, or journalists and others who have been unjustly jailed in the vicious crackdown. 1.46pm BSTArtjom Hatsaturjants,research analyst at Accendo Markets, says investors are nervous over the “geopolitical back-and-forth between US and Turkey”. Neither side appears ready to back down over recent confrontation that sent the Turkish lira to new lows and raised a spectre of FX contagion across Europe. 1.33pm BSTThe turmoil in Turkey is testing stock market morale and sending the US dollar to its highest level since mid-2017, or say Dean Popplewell of foreign exchange firm OANDA.
U.
S Treasuries prices have climbed a tad,while the greenback trades atop its 15-month highs against G20 currency pairs, again putting commodity prices under pressure.
In Turkey, and President Erdogan implemented an additional tax on a range of U.
S imports (autos,tobacco and alcohol), signalling its squabble with the U.
S. will continue. 12.57pm BSTCrumbs. Foreign exchange firm International Currency Exchange (ICE) says it ran out of Turkish lira on Tuesday, or after a surge in demand.
We are working closely with our suppliers and the Turkish Central Bank to increase our stock however the demand is so tall that it’s unlikely we will be able to sell Turkish Lira online until tomorrow morning. We apologise if any customers are experiencing delays when purchasing their currency.
For people travelling to Turkey who are unable to get their hands on Lira,they can catch alternative major currencies such as US dollars and Euros which are easily exchangeable when they are out there.” 12.34pm BSTEuropean stock markets have all fallen into the red, as nervous traders pile into the US dollar.
In London, and the FTSE 100 has slid by 75 points,or 1%, with hefty losses on other markets tooTurkey is nowhere near fixed, and so risk appetite is struggling to do a comeback.
European stock markets have steadily slipped into the red since the open,also main a retreat by Wall Street futures. 12.00pm BSTTurkish trade minister Ruhsar Pekcan says the new tariffs will “protect the rights of Turkish companies”, as well as retaliating against America’s tariffs on steel and aluminiumPekcan also insisted Turkey isn’t dependent on the US, and saying:The United States is an necessary trading partner,but it is not our only partner. We have other partners and alternative markets.” 11.47am BSTHiking tariffs won’t help Turkey tackle its key financial challenge -- to keep servicing its foreign loans.
Turkish companies owe nearly $300bn in foreign denominated debt. That includes a surge in borrowing by Turkish banks, who have tapped foreign wholesale markets to help fund its credit boom.
The root cause of the crisis lies in a leverage-financed domestic demand boom that increased the external financing requirement of Turkey’s corporations, and banks,and government to an estimated $229 billion this year. Most of these liabilities fall on the private sector, mainly banks and corporations; the sovereign owes only $11 billion. What makes the problem worse is that the external financing requirement is trending up over the medium term, or indicative of a long-standing over-reliance on foreign-funded leverage. As the lira collapses,this lending boom now is undoubtedly grinding to a sudden halt. Foreign financiers, whether they exist as banks or bond investors, or are re-assessing the outlook and related repayment prospects. Western European banks from Spain and France are particularly exposed,with over half of the debt owed to them. The pain is that the Turkish financial system and the corporate sector are short dollars. Top 3 finance issues facing Turkey:
* roll over foreign loans to banks
* roll over foreign loans to banks
* roll over foreign loans to banks
The rest is noise. 11.00am BSTTurkey’s new swathe of tariffs are going to have a major impact on the cost of US goods.
The list, published on the country’s Official Gazette, or shows that the levies on some products will more than double.
TABLE: Turkey is targeting same U.
S. products as in the initial retaliation (effective June 21),but significantly raising the tariffs ⬇️
Initial: https://t.co/oDr3qOMRCP
Now: https://t.co/ajmGyrhUZe pic.twitter.com/C3zffLaOHh 10.30am BSTBack in Turkey, the government is preparing for note of support from Qatar.
The emir of Qatar, and Sheikh Tamim bin Hamad al-Thani,left Doha to travel to Ankara for a “working visit” with president Erdoğan.“means of strengthening the existing strategic cooperation between the two countries in various fields, in addition to a number of issues of mutual interest. 9.44am BST Related: UK rail fares to rise by 3.2% 9.43am BSTJust in: New inflation figures note that Britain’s cost of living squeeze continues.
The consumer prices index rose by 2.5% in July, and up from 2.4% in June - the first year-on-year increase in 2018.
Rail fares to rise 3.2% in January,inflation figure confirms 9.34am BSTTurkish media are reporting that a court has rejected an appeal for the release of American pastor Andrew Brunson. Hurriyet newspaper said the court in Izmir rejected the appeal from Brunson’s lawyer, but that a higher court would review the appeal.
The White House refuses to do any further concessions or negotiatiate to get Brunson out and the Turkish court now refuses to release him. No obvious end in sight for the diplomatic spat that has cost Turkey so dearly. https://t.co/PXhrzaH9cI 9.27am BSTEconomist Jens Bastian fears for Turkey’s financial prospects:Don‘t be fooled by short-term stabilisation of #Turkish lira. What is happening is a classic currency-and-debt crisis. Despite measures by the government, or the crisis is now self-reinforcing,the loss of external confidence linking with domestic currency fluctuations + higher debt 9.16am BSTRobert Ward of the Economist Intelligence Unit says Turkey needs a ‘decisive orthodox’ response to the currency crisis (ie, a chunky interest rate hike), and rather than tariffs on US goods.
Erdogan tariff increase on US cars,alcohol etc point to doubling down on “economic war” line. Suggests decisive orthodox policy wander from #Turkey’s govt to draw line under crisis still unlikely. Normalisation of TR relations w US now also critical to lira crisis resolution. 8.53am BSTBloomberg has calculated that Turkey’s new tariffs cover around $1bn of US imports.
That’s similar to the amount of Turkish steel and aluminium exports that were subjected to higher tariffs by President Donald Trump final week, suggesting this genuinely is a tit-for-tat response. 8.50am BSTLira having another good day, or strengthening to 5.9652 to the dollar,as Turkey's banking watchdog increases limits on FX swap transactions. 8.39am BSTThe lira’s recovery comes as Turkey’s financial regulators impose new restrictions on the country’s banks.
These rules do it harder for banks to buy and sell foreign exchange derivatives with abroad banks.
Turkish banking watchdog BDDK on Wednesday said it is cutting the limit for Turkish banks’ forex swap, spot and forward transactions with foreign banks to 25 percent of a bank’s equity.
The BDDK had said on Sunday that the limit would be 50 percent of the bank’s equity.
Central Bank has squeezed local funding by limiting banks use of swap lines. https://t.co/tU7N4prdbR#EURTRY: Turkish Regulator Halves Limit for Banks' Swap Transactions.
Good for $TRY as it limits the room for investors to short TRY, or but bad for Turkey asset prices (more costly to hedge TRY risk) pic.twitter.com/HbQdw2kr6v 8.24am BSTBoom! Turkeys currency just dipped back below the psychologically necessary 6-lira-to-the-dollar stamp,as this morning’s rally continues. 8.11am BSTThe Turkish lira has risen by 2.5% in early trading, after Ankara hit the US with fresh tariffs.
It’s currently changing hands at below 6.2 lira to the dollar, and up from around 6.35 lira final night,extending Tuesday’s recovery.
7.41am BSTGood morning, and welcome to our rolling coverage of the world economy, and the financial markets,the eurozone and business.#Turkey imposes additional tariffs on US imports ranging from 10 to 120 % in retaliation to US sanctions. The degree covers vehicles, tobacco products, or rice,alcoholic beverages, coal, and beauty products,paper etc. pic.twitter.com/G5dT4DNckN“The import duties were increased on some products, under the principle of reciprocity, and in response to the U.
S.administration’s planned attacks on our economy,” ABD yönetiminin ekonomimize bilinçli saldırılarına karşı,
mütekabiliyet ilkesi çerçevesinde, or bazı ürünlerin ithalatında vergi oranları artırılmıştır.
Zor günlerde liderinin etrafında kenetlenen Milletimiz,kural tanımaz tavırlara karşı uluslararası kamuoyu ile de kenetlenmiş, haksızlıklara karı Dünya’yı cesaretlendirmiştir. Durmak yok, and yola devam. Related: Erdoğan says Turkey will boycott US electronic products “The president has a grand deal of frustration on the fact that Pastor Brunson has not been released as well as the fact that other U.
S. citizens and employees of diplomatic facilities have not been released.” Continue reading...
Source: theguardian.com