Erdogan calls to boycott United States electronics, including iPhone

Erdogan Turkey lira

Asian stocks retreated to a one-year low on Wednesday as bearish Chinese markets worsened investor sentiment already hurt by Turkey's financial crisis.

"In a lot of ways some of his actions have amplified this risk-off type of environment, which has ultimately helped the USA dollar strengthen in the near-term", said Charles Tomes, senior investment analyst and trader at Manulife Asset Management in Boston.

Many emerging market currencies also rose, clawing back some of Wednesday's losses thanks to easing fears over the knock-on effects from a slide in the Turkish lira.

Hong Kong was down 1.5 per cent, Shanghai was off 1.3 per cent, Tokyo slipped 0.3 per cent and Sydney fell 0.5 per cent. Seoul was closed for a holiday.

The pan-European FTSEurofirst 300 index .FTEU3 lost 1.41 percent and MSCI's gauge of stocks across the globe .MIWD00000PUS shed 1.10 percent.

Keeping the markets wary, Turkish President Tayyip Erdogan said on Tuesday that Ankara would boycott electronic products from the United States, retaliating in a row with Washington that has helped drive the lira to record lows.

"In response to deliberated and continued trade tensions, Turkey has again raised tariffs on key USA imports", Turkish Trade Minister Ruhsar Pekcan said in a statement.

"It seems to welcome a potential confrontation with the European Union and markets over its budget, probably because it judges that it gains political capital at home by taking such a confrontational line.

The move failed to impress financial markets, however, which want the authorities to hike interest rates sharply to combat the lira s weakness and fight inflation.

Hundreds Of Newspapers Are Challenging Trump's Attacks: 'We Are Not The Enemy’
The Globe's Opinion department, which is separate from its news operations, organized the effort. News organisations across the U.S. have united to condemn Donald Trump's attack on the media.

Jaguars CB Jalen Ramsey calls Bills rookie QB Josh Allen ‘trash’
Ramsey talking about Roethlisberger the way a father talks about his child doing something really stupid is wonderful. Because if somebody does pick him, and they just stay in the locker room - I think it's like a pride thing now.

England rugby star Cipriani charged with assaulting police
Cipriani recently returned to global rugby, making his first Test start for a decade during the tour of South Africa in June. After appearing in court on Thursday he was fined £1,500 for resisting arrest and £500 for assault.

Traders fret that Turkey's woes could spark contagion into other emerging currencies and also that banks in advanced nations could suffer due to exposure to the Turkish economy.

On Wednesday, an index that tracks the dollar against the euro, yen and four other currencies was flat at 96.729, hovering near a 13-month high of 96.794 reached the previous day. "Europe's banks will have to reserve more against these potential losses, and already low capital adequacy ratios will be tested", wrote Carl Weinberg, chief worldwide economist at High Frequency Economics.

The dollar index .DXY fell 0.03 percent, with the euro EUR= up 0.04 percent to $1.1346.

While fears of a crisis in Turkey still loomed, China was in sharp focus as the yuan CNH=EBS sagged almost 0.8 percent to 6.9514 per dollar, hitting its weakest level since January 2017.

The benchmark 10-year Treasury note yield stood around 2.90 percent, having bounced from a three-week low of 2.848 percent set on Monday.

US crude oil CLcv1 fell 3.18 percent to $64.91 per barrel and Brent LCOcv1 was last at $70.75, down 2.36 percent on the day after data showed a surprise weekly increase in USA crude stockpiles, compounding worries about a weaker global economic growth outlook.

Oil plunged after data showed United States crude stocks rose by 6.8 million barrels to 414.2 million barrels, confounding analysts surveyed by Bloomberg who had expected a drop of 2.5 million barrels.

The pound hit a 13-month low, dropping 0.2 percent to $1.2694 despite data showing Britain's inflation rate picked up in July for the first time this year.

Related News:



Most liked

Here are NC’s best hospitals. Only one makes the national Honor Roll
News assessed more than 4,500 hospitals across the country, according to a statement released by Loyola following the rankings. News, which has been compiling the list for 29 years, said it put more emphasis this year on patient outcomes and experiences.

Qatar to make direct investment of $15B in Turkey
Turkey's exports to the United States a year ago amounted to $8.7 billion, making it Turkey's fifth-largest export market. Turkey's lira has plummeted almost 40 percent this year due to concerns over Erdogan's growing influence on the economy.

Taliban capture northern base from Afghan army
I saw two bodies that were eaten by dogs", said Abdul Hakim Sulaimankhel, 37, who owns an automobile spare parts shop in Ghazni. But in others "the Taliban have positioned their fighters in high buildings shooting at security forces from there", he added.

Marvel's Kevin Feige Reportedly Supports Disney's James Gunn Decision
Despite the best efforts of his friends and the cast of Guardians of the Galaxy , it seems Disney will not rehire James Gunn . Marvel Cinematic Universe boss Kevin Feige did not attend the meeting, and is said to stand by Disney's decision.

'Queen of Soul' Aretha Franklin dead at 76
She also performed at the inaugurations of three presidents, including Jimmy Carter, Bill Clinton and Barack Obama. In 1965, during a show, the M.C. gave her a crown and declared her the " Queen of Soul ".

Constellation Invests Additional $4B in Pot Grower
Canopy, based in Smiths Falls, Ontario, doesn't now have any operations south of the border, where marijuana is banned federally. Constellation could also increase its ownership to over 50 percent if it exercises warrants received as part of the deal.

Bitcoin Market Share at Highest This Year
The market valuation dropped from $218 billion to $193 billion (USD) in the hours to Tuesday, according to CoinMarketCap . While the price of Bitcoin continues to show several ups and downs - the markets continue to show faith in the currency.

Vaping is more harmful than first thought, study finds
E-cigarettes are a relatively new phenomenon and thus not much has been known about them and the harm they can cause. It believed that e-cigarettes can help one overcome the habit of smoking and should be allowed on prescription.

Senior Chinese delegates to visit USA for trade war talks
Other Countries should not be allowed to come in and steal the wealth of our great United States of America . China's Commerce Ministry says it will not accept any unilateral trade measures, but welcome dialogue.

Turkey announces sharp tariffs on U.S. goods
Qatar said it would provide "a host of economic projects, investments and deposits" worth $15 billion to support Turkey's economy. The move sent the Turkish lira to a record low against the dollar and spurred declines in other emerging market currencies.

Banker Pushed $16M Manafort Loans Despite Risk, Jury Told
Calk had hoped to land a Cabinet-level position in the new Trump administration, a former bank executive testified Friday. Brennan even rated one loan for Manafort risky but doable in a memorandum used by regulators and the bank.

Donald Trump's Black Approval Rating Almost Double That of previous year
And it's harder than you would think. "There's one way to shut Donald Trump down, and that is just don't give him the oxygen". Longtime friend of Omarosa and TV host Jawn Murray is threatening the White House with more tapes if Trump keeps tweeting.

Lira rallies as Erdogan hits back at short-sellers
Erdogan also renewed a call for Turks to convert their dollars into the Turkish lira , to help strengthen the currency . Indonesia, acting after the rupiah fell to three-year lows, raised interest rates for the fourth time since May.

David de Gea: Manchester United confident goalkeeper will sign new deal
The Spanish worldwide won the Premier League's Golden Glove award last season and now earns around £180,000 a week. His current deal is due to expire in June although the club have the option to extend it by a further 12 months.

More than 30 people overdose at downtown CT park; synthetic pot suspected
Rick Fontana, director of emergency operations for New Haven said some overdoses were 'in multiples of 4-6 at a time'. The police chief says they firmly believe the person in custody is responsible for at least some of the overdoses.