FT News Briefing Friday, March 29
Mar 29, 2019
Swedbank faces serious accusations of money laundering, leading to a CEO resignation and regulatory scrutiny. Meanwhile, Turkey is battling a currency crisis, spending foreign reserves to prop up the lira ahead of crucial elections. The broader implications of these financial strategies raise concerns about recession and inflation in Turkey. Additionally, the fear of a no-deal Brexit looms over German businesses, which could significantly impact UK-Germany trade relations.
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Turkey's Lira Intervention
- Turkey's central bank sold $10B in foreign currency to stabilize the lira.
- This drastic action caused turmoil in stocks and bonds, harming Turkey's credibility with investors.
Turkish Lira and Politics
- The Turkish government limited lira lending to foreign entities to curb short-selling before local elections.
- President Erdogan views currency stability as crucial due to the difficult economic conditions and potential impact on his party's support.
German Businesses and Brexit
- German businesses are bracing for a no-deal Brexit, with some planning to relocate operations.
- The UK's departure from the EU, regardless of the deal, will impact the substantial trade relationship between the two countries.