Asian markets tumble and Turkish lira dives amid contagion fears

President Donald Trump

Turkey's spat with the United States has further weighed on the lira.

Speaking to supporters in the Black Sea coastal city of Trabzon, Erdogan revealed details of negotiations held last week between the two countries, saying Washington had threatened sanctions if Turkey refused to release the pastor.

The lira is now down around 45% against the dollar since the start of the year, making it far harder for Turkish companies to pay back loans they have taken out in the USA currency.

Asian markets tumbled and the Turkish lira dived nearly eight percent on Monday on fears that the economic crisis gripping Turkey could spill over into the global economy.

During Sunday's meeting, President Recep Tayyip Erdoğan also said that the fluctuation in the Turkish lira is a plot against Turkey, but the Turkish people will not give in. "Nobody should try to make us fall into this trap, we won't be fooled by this plot, nobody should get excited".

The nominally independent central bank has defied pressure over the last few weeks to hike interest rates in the face of high inflation and a collapsing currency.

Mr. Erdogan, who has called himself the "enemy of interest rates", wants cheap credit from banks to fuel growth, but investors fear the economy is overheating and could be set for a hard landing. The White House said he had authorised them under a section of U.S. trade law that allows for tariffs on national security grounds. There is no economic reason for this.

In a call with reporters late Sunday Turkey's finance minister Berat Albayrak said Ankara was planning to roll out an "action plan" on Monday in response to the crisis.

Raheem Sterling goal celebration is a response to World Cup critics
Pierre-Emerick Aubameyang starts up front, with Alexandre Lacazette among the subs. "And today is the first step in that". Emery now has a clear sense of the task he faces, throwing his arms in the air in frustration as the goals were conceded.

Why Malcom is out of Barcelona's Spanish Super Cup vs Sevilla
Barcelona are expected to have three non-EU players in their squad on Sunday: new signings Malcom, Arturo Vidal and Arthur. It had been thought the Spanish Super Cup was the same but Sevilla said they would object to "an improper line-up".

Emery names Koscielny Arsenal captain
We need four on the top level. "What I saw in the last training sessions and Chelsea and Arsenal games is we are still there". Kyle Walker will overlap more for City than for England, where he was shifted inside into a back three. "We are happy.

In the Hurriyet interview, Albayrak said budget policies were important to support and strengthen the central bank's monetary policies.

Recep Erdogan once again urged Turks to sell dollars and buy liras to help boost the currency.

"The last time I can remember a currency exploding into a similar acceleration of weakness to what we have seen in the past 24 hours is the Russian ruble crisis that transpired late in 2014", Jameel Ahmad, the head of currency strategy at FXTM, said. "You should know that to keep this nation standing is. also the manufacturers" duty".

The lira's crash was sparked by a disagreement with the United States over the detention of an American pastor in Turkey, which has even brought up questions over the future partnership between Washington and Ankara.

Trump said Friday on Twitter that he authorized a new 20 percent tariff on aluminum and 50 percent tariff on steel from Turkey. "Relations with countries who behave like this have reached a point beyond salvaging", said Erdogan, who warned of "economic war".

"Shame on you, shame on you", he said in remarks directly addressed to Washington.

The United States, the world's biggest steel importer, imposed tariffs of 10 percent on aluminum and 25 percent on steel in March for imports from a variety of countries.

Related News:

  • Heather Heyer Remembered By Lawmakers, Activists On Charlottesville Anniversary

    Heather Heyer Remembered By Lawmakers, Activists On Charlottesville Anniversary

    Coalition is producing a "Still Here, Still Strong" rally to counter " Unite the Right 2 " starting at noon Sunday. Outside Washington, "anti-racist" activists plan to rally in Charlottesville, home of the University of Virginia.

    Koepka leads, Tiger lurks as PGA final-round drama begins

    His birdie putt on the 11th green seemed certain to drop in but stopped, impossibly close , on the front edge. He drained his longest putt of the tournament, a 19-footer putt for birdie, and pumped his fist to celebrate.
    Arsenal vs Manchester City: 3 key battles in Emery’s league debut

    Arsenal vs Manchester City: 3 key battles in Emery’s league debut

    Guendouzi made a shocking error, taking an air shot at a bouncing ball, allowing Aguero to run through on goal . As you would expect, the champions took the game to their hosts but Arsenal stood up to the onslaught.
  • New Mexico compound littered with ammunition, dirty diapers

    New Mexico compound littered with ammunition, dirty diapers

    The boy was not among the 11 children rescued, but child remains were found at the compound and have yet to be identified. In November 2009, Wahhaj was one of many Muslim leaders who met with NY mayor Michael Bloomberg at City Hall.
    INTERNATIONAL - Trump's SC pick's confirmation hearing in September

    INTERNATIONAL - Trump's SC pick's confirmation hearing in September

    Kavanaugh will face questions Wednesday, Sept. 5, followed by testimony from and legal experts and people who know the judge. If he is confirmed, Kavanaugh would take over the seat vacated by Anthony Kennedy, who retired at the end of July.
    Chinese tourist dies in hippo attack on Kenyan lake

    Chinese tourist dies in hippo attack on Kenyan lake

    Kenya has had several months of heavy rains this year which resulted in serious flooding, including around Lake Naivasha. Wildlife service spokesman Paul Udoto said the circumstances are not clear in which the two Chinese were attacked.
  • 5 things we learned from the Premier League weekend

    5 things we learned from the Premier League weekend

    Kyle Walker will play at right-back while Benjamin Mendy could return after missing last season with a knee injury at left-back. Manchester City English Premier League opening weekend match, see the streaming information at the bottom of this article.
    Liverpool vs. West Ham United - Football Match Report

    Liverpool vs. West Ham United - Football Match Report

    Let me say it like this, past year he already had a few problems with that but he could obviously play - and played really good. The Draw - the Merseysiders had seven of those in their 19 matches - is [6.8] while West Ham are [14.5] to spring a surprise.
    Manchester United Make Last Ditch Move For Chelsea Sensation

    Manchester United Make Last Ditch Move For Chelsea Sensation

    Under Premier League regulations, Chelsea and Everton were given an extra two hours to finalise negotiations. Everton have signed France centre-back Kurt Zouma on a season-long loan from Chelsea .
  • ‘If they have dollar, we have our Allah’: Erdogan

    ‘If they have dollar, we have our Allah’: Erdogan

    Andrew Craig Brunson, an evangelical pastor from Black Mountain, North Carolina, arrives at his house in Izmir, Turkey, in July. Turkey has accused Andrew Craig Brunson of spying and " committing crimes on behalf of terror groups without being a member".
    Tiger Woods in contention in final round

    Tiger Woods in contention in final round

    The Kiwi sits in a tie for 28th at four-under through three rounds after carding a two-under round of 68 on Sunday (NZ time). Plenty went missing; we saw none of Tony Finau's insane no-par roller coaster front nine (7 birdies, a triple, and a bogey).
    Palm’s first phone in years has leaked and it’s tiny

    Palm’s first phone in years has leaked and it’s tiny

    It will be available in two color variants where the first one will be in Titanium color and the second will come in Gold color. Do you think a small budget phone like this will find a market or have we all moved on to bigger and arguably better things?


Most liked

Orca whale mother's 'tour of grief' over after almost 3 weeks
But by the time a team from the Centre for Whale Research arrived to take pictures of the newborn, it sadly was no longer alive. Cottrell said the cross-border collaboration with their American counterparts has been very successful.

Harley Davidson boycott would be 'great'
A really bad move! " Most other companies are coming in our direction, including Harley competitors", he wrote. Manufacturing for Harley-Davidson's motorcycles for US customers are expected to remain in the United States.

Meghan's father hung up on Harry in phone row
He said: "I was going to recount the amusing story about how she broke the news to me about dating Harry, 'Daddy, I've met a man. To which Mr Markle said he replied: "Maybe it would be better for you guys if I was dead... then you could pretend to be sad".

Lira extends retreat as Turkey heads toward a financial crisis
Last week, a Turkish delegation went to Washington and met with US counterparts, but there was no breakthrough. In a tweet, he said he was imposing duties of 20 per cent on Turkish aluminium and 50 per cent on steel.

Killer whale finally lets dead calf go
The young, malnourished animal was given a shot of antibiotics earlier this week in hopes of helping it fight an infection. The whales have been struggling because of a lack of salmon , and J35's calf died soon after birth on July 24.

Canada seeks help on Saudi row
The senior official, who asked not to be identified due to the sensitivity of the diplomacy, said Foreign Minister Chrystia Freeland had spoken with her counterparts in the two European nations.

Romanian Protesters Return to the Streets for the Second Day
Critics say Romania has lost ground in fighting corruption since the ruling Social Democratic Party assumed power in 2016. Police said they had acted in a proportionate way, responding to the violent behaviour of hooligans in the crowd.

We may have just discovered the ultimate dream job for cat-lovers
If you love cats and kittens, as well as being on a sunny Greek island then this is certainly the most flawless job for you. The position requires you to care for all 55 cats, feed them, and distribute their medications.

Arsenal must work to 'shorten the difference' with Manchester City - Unai Emery
They could have led by three or four in the first half, but only Raheem Sterling found a route past Petr Cech before the break. Arsenal brought on Alexandre Lacazette ten minutes after the interval as they went in search of an equaliser.

Pogba tight-lipped over United situation for fear of being fined
It's over, the market is closed. "I think football is changing and managers should be called head coaches". It's the last time I speak about it.

Green Lights Captured Shooting Across The Sky During Meteor Shower
Lucky observers may see the occasional meteor sailing across the sky for several seconds, leaving behind a trail of glowing smoke. The Perseids take their name from the constellation Perseus, the constellation from which they are thought to have originated.

Tourists In Rome Get Into Physical Fight... Over Perfect Selfie Spot
Finding the flawless spot for a selfie can sometimes be a challenge, especially if it's at the crowded Trevi Fountain in Rome . The Trevi Fountain, built in 1762, is a major attraction in the Italian capital and underwent a £1.4m renovation in 2015.

Trump adviser Stone's ex-aide refuses to appear before grand jury
Stone himself has not yet been questioned or subpoenaed in the investigation. Miller worked for Stone during Donald Trump's 2016 presidential campaign.

EUR/USD consolidates Turkey fears-led slide to 1.1430, US CPI eyed
Erdogan enjoys the support of many Turks even though rents and food and fuel prices have all surged. We look the issue straining relations between the USA and Turkey .

Trump has choice words for ex-aide Omarosa
Manigault Newman had said in the book that she had not personally heard the recording. A weekly recap of the top political stories from The Globe, sent right to your email.