European shares tumble as Turkish turmoil hits banks

The ECB bulletin said that since 2013'all countries have seen a clear trend marked by expansion

Trump said via a tweet that the tariff on aluminium imports will be increased to 20 per cent and the tariff on steel imports will be raised to 50 per cent as the Turkish Lira "slides rapidly downward against our very strong Dollar!"

President Donald Trump said in a tweet Friday that he would hit Turkey with additional tariffs, as their national currency continues to drop.

The currency slid almost 8 percent in relation to the dollar to a record low of 6.59 shortly after Trump announced the increase on metals duties on Twitter.

The United States is the biggest destination for Turkish steel exports with 11 per cent of the Turkish export volume.

A "gigantic rate hike" of at least 500 basis points to calm markets and a clear commitment from the Central Bank of Turkey to support the currency could help halt the decline, Hordijk said, adding, "Another bandage to stop the lira from bleeding to death would be capital controls, but Erdogan opposes these measures".

The lira has always been falling on worries about Mr Erdogan's influence over monetary policy and worsening relations with the United States.

The United States had warned it was reviewing Turkey's duty-free access to its markets, after Ankara imposed retaliatory tariffs on USA goods in response to American tariffs on steel and aluminium.

The lira tumbled 13% in one day, to 6.51 per United States dollar, a massive move for a currency that will make the Turkish poorer and further shake worldwide investors' confidence in the country.

Turkey's President Recep Tayyip Erdogan saluting supporters after Friday prayers, in Bayburt, Turkey, yesterday.

United States mid-term elections: Trump claims win in key OH vote
With dozens of Republican lawmakers retiring this year, the minority party has a decent chance of taking over the House. The script for Ohio's special election is perhaps familiar: An experienced Trump loyalist, two-term state Sen.

Despite mounting pressure to reassure investors, president Erdogan yesterday remained defiant, stating that Turkey would prevail in an "economic war" while calling on Turks not to panic or "bow in front of economic threats".

A favourable exchange rate though can't have harmed the situation: on Friday, the USA dollar would buy nearly six Turkish lira; at the end of January, it would have got you less than four. Negotiations for his release broke down when Turkey refused to free Brunson after his third courtroom hearing on July 18.

Canada's main stock index also fell on Friday. Rate increases are the central bank's main tool to support the currency and fight inflation.

Jay Sekulow, an attorney for Trump who is also representing Brunson's family, told talk-show host and political commentator Sean Hannity's radio programme on Friday: "We're close to getting a resolution in that case".

Turkey's currency has nosedived amid concerns about the country's economic policies and its dispute with the US. Turkey answered the March tariff announcement by placing its own tariffs on $267 million of US goods. The US responded by imposing sanctions on Turkey and threatening more. Albayrak is the Turkish President Recep Tayyip Erdogan's son-in-law.

The Lira is now down over 26pc in the past month and 40pc since the start of the year, raising investor fears that the situation could quickly spiral from a currency crisis into a full-blown credit event. Earlier, it had crashed some 12 percent through the 6.00 level for the first time in history, trading at one point at more than 6.20 lira per dollar.

Yet even USA firms that have disclosed relatively little exposure to Turkey fell as that country's crisis escalated Friday, with Citigroup Inc. down the most since May.

Concerns mounted Friday after a report in the Financial Times that the supervisory wing of the European Central Bank had over the last weeks begun to look more closely at eurozone lenders' exposure to Turkey.

Related news:

Hot News

isis-killer-beheading-video-story-top Dallas reports 1st human West Nile virus death
Aug 11, 2018 - 11:39
According to the report , occasionally live chickens are tested to determine if West Nile is present in a particular area. These larvicides will not hurt birds or animals. -Clean roof gutters and downspouts for proper drainage.

isis-killer-beheading-video-story-top CEO Jack Dorsey Explains Why Twitter Didn't Ban Alex Jones
Aug 10, 2018 - 07:52
The social media giant said: "We believe in giving people a voice, but we also want everyone using Facebook to feel safe". And Spotify said , "The Alex Jones Show has lost access to the Spotify platform".

isis-killer-beheading-video-story-top Catholic Church Changes Doctrine To Oppose Death Penalty
Aug 10, 2018 - 07:27
The signal from the Papacy ought ideally to prompt a reflection on the issue, most particularly in the United States and China. This policy is incongruous with Catholic teachings regarding the dignity of human life, the pope proclaimed.

isis-killer-beheading-video-story-top U.S. to impose sanctions on Russian Federation over nerve attack in UK
Aug 10, 2018 - 07:03
Listen to Newsbeat live at 12:45 and 17:45 every weekday on BBC Radio 1 and 1Xtra - if you miss us you can listen back here. A Russia Foreign Ministry spokeswoman said Thursday the restrictions represent a new attempt to " demonize Russia".

isis-killer-beheading-video-story-top United States tariffs on China: Trump administration adds $16 billion
Aug 10, 2018 - 06:36
China deprives US companies of the ability to set market-based terms in licensing and other technology-related negotiations. China responded by promising to hit $60 billion worth of United States goods coming into the country with tariffs.

isis-killer-beheading-video-story-top Manafort defense asks Gates about additional extramarital affairs
Aug 10, 2018 - 05:46
In several instances, Manafort signed documents to open accounts, and a copy of his passport was found in the files, she said. Gates was hired by Manafort to serve as deputy campaign chairman and later had a role on Mr Trump's inaugural committee.

isis-killer-beheading-video-story-top Man saved from quake-flattened mosque on Indonesia island
Aug 10, 2018 - 04:50
The country sits on the Ring of Fire , a major area in the basin of the Pacific Ocean where most of the world's earthquakes occur. Nugroho said authorities had deployed three ships to evacuate people who were packed on the 16-square-kilometre beach.

isis-killer-beheading-video-story-top Google Pixel 3 XL leak is best look yet at new phone
Aug 10, 2018 - 04:30
That sounds a lot like the Snapdragon 845, which again would be consistent with rumors about the processor for the Pixel 3. In additional photos, we can see that Google will apparently be changing the color of the power button this time around.

isis-killer-beheading-video-story-top Oil Prices Steady After Sharp Fall
Aug 10, 2018 - 03:43
President Donald Trump tweeted that the sanctions were "the most biting sanctions ever imposed". Where these trade tensions threaten the volume of China's import of USA crude oil .

isis-killer-beheading-video-story-top Ferdinand urges Man United not to sell Pogba
Aug 08, 2018 - 12:56
The Manchester United midfielder became a world champion following a string of excellent performances in Russian Federation . United fans could get excited about this signing if they did end up losing their French World Cup victor .

isis-killer-beheading-video-story-top Chelsea Keen On Liverpool Target Nabil Fekir But Europa League Negative Factor
Aug 08, 2018 - 08:30
Liverpool legend Robbie Fowler has sent a clear warning to Mohamed Salah that he will find it harder next season with the club. One window later, Liverpool can get him a lot cheaper since the manager Jurgen Klopp is a big admirer of Fekir.

isis-killer-beheading-video-story-top Who Arsenal could sign next after they complete Lucas Torreira transfer
Aug 07, 2018 - 10:19
Unai Emery is a known admirer of the player and is reportedly keen on the idea of bringing him to the Emirates this summer. Once Torreira has completed a medical, he will become Arsenal's fourth signing of the summer transfer window.

isis-killer-beheading-video-story-top Paul Pogba holds secret talks with Barcelona chief
Aug 07, 2018 - 08:22
Raiola is known to have approached United about a raise for Pogba after Sanchez moved to Old Trafford from Arsenal in January. Juventus have agreed a swap deal with Manchester United , involving midfielders, Paul Pogba and Miralem Pjanic.

isis-killer-beheading-video-story-top Chelsea star tells Sarri that he wants to leave
Aug 07, 2018 - 07:30
Play from the back, attack where possible and show some ambition. "Sometimes we press in the right way, sometimes no", he said. With Sarri since being brought in as a replacement for Conte, Willian hopes for a better relationship with the 59-year-old.

isis-killer-beheading-video-story-top Conor McGregor's Lawyer Hints At Date And Location For Khabib Fight
Aug 07, 2018 - 07:26
McGregor is returning to UFC , and White said that they were waiting for his legal proceedings to conclude before moving forward. As part of a deal with prosecutors McGregor was also ordered to undertake an anger management class.