Trump's tariff tweet inflames Turkey's economic crisis and strained USA relations

11 Agosto, 2018, 09:24 | Author: Arnold Perez

The currency's slide deepened early Friday, after the Financial Times reported that the eurozone's chief financial watchdog was concerned about how some of Europe's biggest lenders would be affected by a crisis in Turkey.

Trump intensified the alarm on financial markets with his new tweet doubling the tariffs, noting for good measure the lira was sliding "rapidly downward against our very strong Dollar!".

Turkey exported $1.04 billion (€0.91 billion) worth of steel and $60 billion worth of aluminum to the USA in 2017, according to the Hurriyet newspaper.

"Change the euros, the dollars and the gold that you are keeping beneath your pillows into lira at our banks".

The tweet is another salvo in the growing dispute between Turkey and the U.S.

The lira hit a record low of 6.24 per dollar on Friday, before recovering to 5.94, down 7 percent on the day. "The cheap lira actually can help increase their export volume", said George Gero, a managing director at RBC Wealth Management who follows metals markets.

Lapid's praise for Trump came after the United States president announced the doubling of steel and aluminum tariffs on Turkey.

Emerging market stocks lost 1.66 percent, while the Mexican peso, a proxy for emerging market currencies, shed 1.29 percent to the dollar.

The dollar rose as exposure to Turkey could impact European banks and spark a domino effect as people begin to pull out of those banks and into USA assets, said Gregan Anderson, macroeconomic strategist at brokerage Bulltick LLC. U.S. President Donald Trump introduced a round of sanctions on August 1, preventing the Turkish justice an interior ministries from doing business with U.S. businesses.

It argued that the country accounted for less than 2 percent of group revenues and a 10 percent fall in the lira would affect its CET1 ratio - capital that must be set aside as a buffer against financial shocks - by only around 2 basis points.

More news: Anthony Anderson's Sexual Assault Case Under Review By LAPD
More news: United Launch Alliance to Launch NASA's Parker Solar Probe
More news: Blizzard confirma que están trabajando en nuevos proyectos para Diablo

"Most of the actors in the Washington scene think that carrots just don't work with Turkey, just the stick", said political analyst Atilla Yesilada of Global Source Partners.

Already, U.S. -Turkey relations have been strained over an array of conflicts.

"As he stated, the president has authorized the preparation of documents to raise tariffs on imports of steel and aluminum from Turkey", White House Deputy Press Secretary Lindsay Walters said.

Shares in France's BNP Paribas, Italy's UniCredit and Spain's BBVA, the banks seen as most exposed to Turkey, fell 4 per cent or more.

Markets are deeply concerned over the direction of domestic economic policy under Erdogan with inflation at almost 16 per cent but the central bank reluctant to raise rates in response.

The US, meanwhile, rates Turkey at level three, urging people to reconsider travel to the region.

President Trump seems to think that Turkey has been trying to take advantage of us by having an economic crisis that's sent their currency tumbling.so he's taken steps to make it tumble even more?

After winning a June election with revamped powers, Erdogan tightened his control over the central bank and appointed his son-in-law Berat Albayrak to head a newly-empowered finance ministry.

A delegation of Turkish officials held discussions with their counterparts in Washington this week but there was no sign of a breakthrough.

Recomendado:



Popular

El nuevo presidente ha sido un "caballero absoluto", elogia Trump a AMLO
Por otra parte, Trump señaló que las negociaciones con Canadá deberán esperar, ya que sus aranceles y tarifas son altos. Este viernes, el presidente Donald Trump aseguró que los pactos con México están "saliendo muy bien".

Registran el ingreso diario de 4.200 venezolanos a Ecuador
El decreto apunta a "dar una respuesta eficiente y convincente en ayuda de las personas que ingresan al territorio ecuatoriano ". La mayoría solo está de paso por Ecuador en camino al sur, hacia Perú y Chile , donde hay más oportunidades de trabajo.

All 20 Marvel Cinematic Universe movies are coming to IMAX
And it all gets underway later this month, when the Marvel Cinematic Universe storms theaters for an unforgettable week of movies. Each film will screen in order, followed by two theme days celebrating origin stories and team-up movies.

¿Apostasía?: Miles de argentinos renunciaron a la Iglesia Católica
Es importante que la carta contenga datos del bautismo, como la parroquia y la fecha aproximada. Por cada creyente que es bautizado, la Iglesia Católica percibe del Estado una suma de dinero.

Kerala: Death toll rises to 26, CM calls emergency meeting
All of the dam's gates being opened will heighten concerns of extreme flooding along the banks of the rapidly swelling Periyar. The northern districts of Palakkad and Malappuram and the hilly districts of Wayanad and Idukki were reeling under floods.

Bird electric scooters arrive in Cleveland
The interim agreement allows Bird to place up to 500 scooters on streets with the city's permission. They got a maximum of 15 mph, last 15 miles on a charge and are only available during the day.

Identificaron a otros tres soldados caídos en Malvinas
Lograron identificar a tres nuevos soldados caídos en la Guerra de Malvinas que estaban sepultados en el cementerio de Darwin. Post norte, ambos fueron ascendidos al rango de Cabo y les fue otorgada la medalla " La Nación Argentina al Valor en Combate".

Messi succeeds Iniesta as new Barcelona captain
Messi's elevation to captain comes 14 years after he made his senior debut for the club, as a 17-year-old in 2004. Barcelona's decision can be attributed not only to the La Masia connection but also to time served at the club.

Rand Paul says he gave Putin a letter from Trump seeking cooperation
The increased diplomacy between the two nations occurred after President Trump met with President Putin in Helsinki, Finland, in July.

Fedefutbol se molesta con Almeyda
Dejó en claro que no existe ningún tipo de acuerdo y que el único acercamiento que tuvieron con El Pelado fue una videollamada . La declaración afirma que sí lo buscaron, pero no es una prioridad, ya que la información se ha tergiversado.