Turkish Lira Slides to Seven Month Low, State Banks Sell US$1.5 Billion To Stem Fall

Turkey’s Lira hit a 7 month low after the U.S. assassinated Iranian Maj. Gen.Soleimani in an airstrike. Iran’s Supreme Leader Ayatollah Ali Khamenei Swore retribution after the US Turkish state lenders sold up to $1.5 billion to stem the lira’s fall on Friday,

Saudi Arabia FTSE Russell Emerging Market Index Attracts Another $1.58 Billion

The Arab world’s biggest bourse, Saudi Arabia’s Tadawul exchange, third phase of inclusion in FTSE Russell’s emerging market index is set to attract about $1.58 billion (Dh5.8bn) in passive foreign inflows. KSA joined the MSCI Emerging Market benchmark last year. 

The Fragile Five Emerging Markets Contagion Risk

The emerging markets known as the ‘fragile five’; Brazil, India, Indonesia, South Africa and Turkey have shown that contagion is unavoidable when you are a high interest-rate economy with a trade deficit dependant on foreign capital to balance its books. 

Spanish, Italian and French Banks Are Most Exposed to Turkey

The Turkish crisis escalated over the past week and has sent flight risk contagion ripples through emerging markets. The fallout extends to those that are Turkey’s biggest lenders. There are five banks most exposed with Spains BBVA the most at risk

Russian ETF Sees Biggest Outflow in a Year as Oil Prices Fall

Oil plummeted Friday after Russia and Saudi Arabia were quoted as increasing production. High oil prices are crucial for Russia’s vulnerable economy and the flow on was seen in Russia tracking ETFs which had avoided the emerging-market selling until now. Russia will be more circumspect going forward.

Turkey says U.S. Visa Spat Overblown Just Like It’s 10% Inflation

Much back and forth on a Turkey-US crisis, coming just weeks after the Kurdistan vote. Turkish Deputy PM Simsek speaking in Washington says its all overblown. What grabbed my attention was Turkey’s 10% inflation on a Fed minutes day.