Turkey's lira this week slipped to its weakest level since hitting a record low in early May after inflation for the month of June was reported at 12.6%, a figure that topped economists' expectations. With rapidly shrinking foreign reserves to prop up the currency, inflation and currency devaluation are showing no signs of a turnaround, analysts say. The lira is still "overvalued" right now even despite its current weakness, Can Selcuki, managing director of Istanbul Economics Research, told CNBC this week, citing rising inflation and the government's dearth of reserves. June's inflation figure was up from 11.4% in May, and the highest since August of 2019, rising steadily from 8.6% last October."Add to this, the increasing foreign denominated debt, it
Member of the Executive Board of the European Central Bank, Benoit CoeureFABRICE COFFRINI / AFP / Getty ImagesCertain companies are at risk of becoming insolvent as governments lift the pedal on fiscal support, a former member of the European Central Bank warned Tuesday.Many governments have deployed massive fiscal stimulus to mitigate the economic fallout from Covid-19. In most cases, this has allowed firms to avoid bankruptcy and employees to have a job to return to once lockdowns are lifted. However, as this fiscal stimulus eases and without a fully-open economy, some companies will struggle to keep their doors open. "When it comes to corporate solvency, trouble is ahead of us," Benoit Coeure, who is now head of the Bank for
U.S. government debt prices were higher Tuesday morning after Federal Reserve Chairman Jerome Powell emphasized the prolonged uncertainty facing the U.S. economy, as coronavirus cases soar in numerous states.At around 2:05 a.m. ET, the yield on the benchmark 10-year Treasury note was lower at 0.6283% and the yield on the 30-year Treasury bond was down at 1.3780%. Yields move inversely to prices.In remarks prepared for a congressional hearing Tuesday, Powell said that despite a recent uptick in economic activity as lockdown measures are eased across the world's largest economy, the outlook is "extraordinarily uncertain" and will rely on both containing the virus and government support for the recovery.Powell and Treasury Secretary Steven Mnuchin will testify before the House Financial Services Committee at 12:30 p.m.
U.S. government debt prices were lower Monday morning as risk-on sentiment sought a rebound, after record new coronavirus cases tempered optimism over an imminent economic recovery.At around 2:45 a.m. ET, the yield on the benchmark 10-year Treasury note was higher at 0.6512% and the yield on the 30-year Treasury bond rose to 1.3845%. Yields move inversely to prices.The U.S. now has more than 2.5 million confirmed infections and more than 125,000 deaths from Covid-19, according to data compiled by Johns Hopkins University, with a spike of 45,255 on Friday alone. The global toll stands at more than 10.1 million cases and more than 501,000 deaths.Florida reported a single-day record for new cases of 9,636 on Saturday followed by 8,577 on Sunday, while Texas on
European Central Bank (ECB) President Christine Lagarde addresses a news conference on the outcome of the meeting of the Governing Council in Frankfurt, Germany, January 23, 2020.Ralph Orlowski | ReutersChristine Lagarde, the president of the European Central Bank, believes the world may be passed the worst of the coronavirus crisis but said a return to the status quo is unlikely."That recovery is going to be incomplete and might be transformational," she said during the online Northern Light Summit on Friday."It is likely that trade will be significantly reduced ... We need to be extremely attentive to those that are most vulnerable," she added.The European Central Bank announced earlier this month an expansion in size and duration of its emergency