Lira collapses as Erdogan tells Turks: They have 'their dollars,' we have 'our god'

Discussion in 'General' started by Samira, Aug 10, 2018.

  1. Samira

    Samira Illuminated Xalimo

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    https://www.cnbc.com/2018/08/10/lir...dogan-tells-turks-they-have-their-dollar.html

     
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  2. MarehanBanker

    MarehanBanker

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    BBVA and Unicredit have huge exposure to the turkish market. Italian banks are really fragile atm, hope this doesn't lead to anything severe.
     
    Last edited: Aug 10, 2018
  3. Blade1

    Blade1 Abdi pleaser

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    Interesting
     
  4. MarehanBanker

    MarehanBanker

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    [​IMG]

    European stocks extended their losses on Friday afternoon as the meltdown in the Turkish lira spurred concerns about an economic crisis that could rattle the European banking sector.

    The Stoxx Europe 600 Index retreated as much as 1.1 percent, on track to post a weekly loss of 0.8 percent. BBVA fell 5.4 percent, UniCredit dropped 4.4 percent and BNP Paribas sank 4 percent. The Financial Times reported that the European Central Bank is said to be concerned about the three lenders’ exposure to Turkey. According to Bloomberg Intelligence, the key concern is the more than $130 billion exposure of European lenders to the Turkish non-bank private sector.

    “There’s Turkish panic right now - so selling European banks is tough as it’s into the eye of the storm,” said John Roe, head of multi-asset funds at Legal & General Investment Management in London.

    “As we have seen during the Greek debt crisis, financial markets are sufficiently interwoven that concerns over debt serviceability in one region can spread quite quickly within European banks, adding uncertainty to a sector that has already become less popular with investors as they struggle to see the ECB meaningfully raise rates this economic cycle,” said Edward Park, a London-based investment director at Brooks Macdonald.

    Today’s selloff worsens the already negative performance of European banking shares this year, which are down 12 percent in 2018 amid disappointment the ECB will keep rates on hold until at least next summer. Investors continue to shun the region’s stocks, with European equity funds seeing outflows of $0.6 billion in the latest week, marking a 22nd straight week of redemptions, according to Bank of America Merrill Lynch strategists.

    Italy’s UniCredit said it’s been “paying particular attention” to geopolitical risks in Turkey, where the tumbling lira is driving down the value of its local banking venture. UniCredit jointly controls Turkey’s Yapi Kredi Bankasi AS, part of a banking empire that sprawls over 14 countries, serving 25 million clients.
     
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  5. MarehanBanker

    MarehanBanker

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    That infographic does not even take into account BBVA's stake in Garanti Bank :whoo:

    This could get ugly :whew:
     
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  6. Blade1

    Blade1 Abdi pleaser

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    Woah I did business at school so this is really intriguing. I'd give it a informative rating but I'm not allowed
     
  7. jamal9

    jamal9

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    what does Turkey or their Lira have to do with sspot?
     
  8. Inquisitive_

    Inquisitive_

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    Classic economic warfare from the west, they use this along with sanctions and IMF debt to enslave and subdue large parts of the world while they pillage and loot unabated.

    Unlike other poor dirt countries sanctions & IMF debt instruments are not enough to enslave a powerful country like Turkey that is self sufficient & can fight back.

    But the curse of Turkey is being exposed so heavily to this toxic western economic model, their heavy reliance upon it exposes them to the predatory speculators in the west who can crush them at will.

    This is essentially low intensity economic warfare to get Erdogan to toe their line since various coup plots didn't work.

    Much of Turkey's gold is still kept in Fort Knox like most other countries, they literally have Turkey by the balls.
     
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  9. Shushue

    Shushue

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    Nobody messes with creditors

    Any risk leads to higher interest rates

    Good boys get low interest rates

    Bad boys get a punishing rate

    You end up digging a bigger hole you can’t eacape

    Pay your debts in due

    Only EU nations can play as they want because they pay the same rate , markets can be punishing
     
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  10. kaluumayste

    kaluumayste

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  11. DRACO

    DRACO

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    Wait ,Are you actually a banker:ohhh:

    What bank do you work for and what role(e.g Investment banking)?
     
  12. Apollo

    Apollo Machiavelli Staff Member Moderator

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    I can't stand Turks. Lived among them for a long time in Germany. Weird folk..
     
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  13. mustang22

    mustang22

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    Turkey could join BRICS and become part of the BRICS bank.
     
  14. RichEnoughForGucci

    RichEnoughForGucci

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    They are agressive and very rude
     
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