Market Round Up: Cut Price Turkey 🐔  Ho-Hum America 😲

by | 10 Oct, 2018

 

1. Cut price Turkey

Turkey has launched a plan to control surging inflation that involves urging businesses to cut prices by at least 10%.

Finance minister Berat Albayrak launched the initiative yesterday, vowing an “all-out war” against inflation. The discount plan is voluntary and will cover all goods that make up Turkey’s inflation basket, and will apply till the end of the year. Companies that try to increase profits under the current circumstances would cause greater losses in the near term, warned Albarak – the son-in-law of President Recep Tayyip Erdogan.

The inflation-busting program also includes a freeze on energy prices, an acceleration on VAT rebates and banks offering 10% discounts on high-interest loans.

President Erdoğan also called on the Turkish people to report unusual price hikes in shops, saying it was the government’s responsibility to raid the inventories of stores if necessary.

 

2. Ho-Hum America

Following the significant rout on U.S.Treasury bonds last week, the market is in a bit of a limbo as investors seem to be holding off from doing anything until several inflation-relevant data reports are scheduled for release later this week. Snooze time?

Well, you can rely on President Trump to voice his criticism about something or someone. This time it’s against the Fed’s monetary policy tightening – especially when there is an evident lack of inflationary pressures (Signs are not yet evident that the recent GDP growth figures is putting pressure on prices and wages). Trump reiterated that he would prefer having lower interest rates, although he did acknowledge the Fed was doing what it believes is necessary – which is a thinly veiled compliment. His remarks do not appear to have had any impact on the markets but do create the impression of some political pressure on the Fed to slow policy tightening. Time will tell.

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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