Tales on a summit
Amidst much hype and misinformation, Messrs. Erdogan and Trump finally met. The summit was significant, because the respective teams spent 2 hours and 20 minutes behind closed doors. The politics author concludes in his single essay for the week that the outcome was largely favorable, although concrete progress such as being reinvited to the F-35 jet fighter program or suspension of CAATSA sanctions may take time. On the other hand, neither leader went off the handle over Gaza or Israel, to the relief of the author. For an in-depth look at what we think was decided at the summit, what wasn't, and the Big Picture, read our report.
On the economics side, sectoral confidence indices have improved modestly in September, generally speaking, so did sectoral inflation expectations, but the pace of improvement of the latter is too slow for comfort.
TUSAID released the Q2 estimate for its competitiveness index, which showed a modest improvement, while the corporate sector’s short F/X position narrowed relatively visibly in July.
In an effort to abide by the 60% TL deposit ratio --and thus avoid the associated penalties of failing to do so, banks have reportedly been bidding TL deposit rates higher.
Meanwhile, after declining for three consecutive weeks, net foreign assets improved noticeably last week, we reckon.
There will be several important data releases this week among which September inflation, due on Friday, tops the list. According to the publicly available Foreks poll, the median expectation for CPI inflation is 2.5%, which we think could be slightly higher.
Now read on...
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