Published: Fri, August 17, 2018
Business | By Tara Barton

White House Calls On Turkey to Release American Pastor Andrew Brunson

Three big companies operating in Dogubank, a trade center specialized in the sales of electronic products in central Istanbul, suspended 50 million USA dollars' worth of iPhone orders, the Turkish daily said.

The Turkish currency began to recover after authorities this week took steps to help bank liquidity and limit swap transactions.

Whatever action the United States does take, economists said it looked likely to cause more pain for Turkish assets in the immediate future.

Erdogan has called for a boycott of USA electronic goods and Turkish media have given extensive coverage to anti-U.S. protests, including videos on social media showing Turks apparently burning dollar bills and destroying iPhones. "The fundamentals of the Turkish economy are robust and Turkey will emerge stronger from this process", Ibrahim Kalin wrote.

A day later, US President Donald Trump doubled the tariffs on Turkish steel and aluminium, sending the lira into free-fall.

Mr Brunson, an evangelical pastor from North Carolina, faces 35 years in prison on espionage and terror-related charges and is under house arrest while his trial continues.

Still, many investors remain on edge about the situation in Turkey and other emerging markets amid a strengthening USA dollar and rising interest rates.

In his televised speech yesterday, Erdogan vowed that Turkey will "boycott United States electronic goods".

Trump suggests Canada intentionally excluded from NAFTA talks
Speaking in Washington on Thursday amid the latest round of talks between USA and Mexican officials to rejig NAFTA, . Mexican Economy Minister Ildefonso Guajardo plans to travel to Washington on Wednesday for meetings with U.S.

"If they have the iPhone, there is Samsung", he said during a speech in Ankara earlier this week.

In a bid to soothe the markets, Turkish Finance Minister Berat Albayrak went on record on Thursday to reassure investors that Ankara was still in control.

Markets are concerned by Erdogan's influence over the economy and his resistance to interest rate increases to tackle double-digit inflation.

"There has been no improvement in relations with the US and additional sanctions may be on the horizon", said William Jackson of Capital Economics in a note to clients, adding that the lira could see a downward trend in 2019 and beyond.

Asian stocks retreated to a one-year low on Wednesday as bearish Chinese markets worsened investor sentiment already hurt by Turkey's financial crisis.

London copper slid 1 per cent, declining for a fifth session in six and set for its biggest weekly decline since early July as supply disruption concerns eased.

Brunson is under house arrest after spending almost two years in a Turkish prison under what the Trump administration has said are bogus allegations of aiding terrorists. On Tuesday, he said Turkey would boycott USA electronic products.

Like this: