EUROPE
Russia: Hit by a
double shot of sanctions – ING
Russian
assets have sold off heavily over the last 24 hours on the back of two US
sanctions stories. The mood in the US Congress towards Russia certainly seems
more aggressive and less predictable. Ahead of US mid-term elections in
November, we expect a greater risk premium to be demanded of Russian asset
markets
Russia tells
Washington curbs on its banks would be act of economic war – Reuters
Russia
warned the United States on Friday it would regard any U.S. move to curb the
activities of its banks as a declaration of economic war which it would
retaliate against
UNITED STATES
US yield curve:
Self-fulfilling prophecy? – ING
Like
everyone else, the Fed is watching the yield curve for signs of the next
recession. But it seems unsure on what signal to take from the flattening curve
Highest Core
Inflation in Decade Flattens Real U.S. Wage Growth – BB
CPI: lower energy
prices; a hint of pressure on core prices – Daiwa
Perjury Traps Are
No Threat to Trump
– BB
The
primary argument against him submitting to an interview with the Mueller probe
is full of holes.
OTHER
The secret to
growth: not shrinking – FT
TURKEY
Turkey Meltdown:
Lira Implodes As Panicked Sellers Spark Global Contagion – ZH
Turkish Lira
Tumbles as Investors Panic Before Erdogan Address – BB
Currency
slumps more than 11 percent amid tensions with U.S. * Bond yields surge as
pressure for interest-rate hike mounts
Turkey's Erdogan
dismisses lira fears, says 'we have our God' – Reuters
Erdogan Answers
Lira's Pleas With an Ottoman Slap – BB
The
pleas of the currency have gone unanswered.
Turkey flash
crash: Chaotic contagion – ING
A
sharp drop in the Turkish lira could have implications for Europe's banks and
the Federal Reserve's interest rate path. We expect the yen to remain a
preferred safe-haven vehicle
Turkey Leaves
Europe’s Bankers Looking for Divine Help – BB
Citi’s
2015 exit from the country seems wiser every day –
Investors Dump
European Banks Exposed to Turkey – WSJ
The
selloff came on news that the ECB was examining the exposure of several of the
region’s banks
Europe chart of
the week – Turkey
– Pictet
European
banks’ exposure to Turkey looks non-systemic and manageable overall, although a
number of indirect effects could amplify the eventual losses.
ECB concerns grow
over EU banks’ Turkey exposure as lira slides – FT
Lenders
from Spain, France and Italy viewed as vulnerable to weak lira
U.S.-Turkey
Relations Will Never Be the Same – BB
Escalating
tensions might simmer down, but we’re past the point of pretending these two
governments’ values are compatible.
Trump Authorizes
Doubling of Tariffs on Turkey's Steel, Aluminum – BB
Steel
tariffs to be 50%, aluminum 20%, Trump says in tweet * Turkish lira slides to
new record low on latest development
Why Turkey Is
Doomed In Two Charts
– ZH
TRY: A bloodbath – Nordea
The
TRY is in a full-blown currency crisis as the number of negative stories
increases. What can prevent the TRY from falling further and what does the
current crisis mean for Nordics' exposure?
CHINA
China says its
U.S. agricultural imports will fall sharply – Reuters
China paper rebuts
trade war criticism, says 'an elephant can't hide' – Reuters
REGULARS
EU Open Rundown – RANsquawk
FirstFT Daily
Briefing
– FT
Dollar
Strengthens as Turkey’s Troubles Rattle Currency Markets
Danske Daily – Danske Bank
Daily Market
Comment
– Marc
Chandler
The
Dollar Muscles Higher as Turkey Melts Down
Brussels Playbook – Politico
Babylon
Berlin — America and Germany, Wunderbar together — Orbán vs. Europe
Five Things You
Need to Know to Start Your Day – BB
US Open – ZH
World
Markets Roiled As Turkey Currency Crisis Goes Global
US Open Rundown – RANsquawk
Aamukatsaus – Nordea
Tänään saadaan inflaatiolukuja USA:sta, Ruotsista ja
Norjasta | Japanin BKT odotettua paremmassa kasvussa toisella
vuosineljänneksellä | Turkin liira jatkaa syöksyään, dollari vahvistui eilen
Blogi: Turkki: Vaihtoehdot vähissä – Nordea
Turkin taloustilanne on kriisiytynyt viime viikkoina.
Liira on valahtanut ennätysheikoksi, kun keskuspankin itsenäisyys on
kyseenalaistettu ja poliittiset riskit ovat nousseet. Helppoa ulospääsyä ei ole
luvassa.