FT News Briefing Germany’s unusually unpredictable election
Sep 24, 2021
As Germany gears up for a crucial election, the race remains unpredictably tight with many undecided voters. Young voters are prioritizing climate and digital issues, shaping the political landscape anew. In Turkey, a surprising interest rate cut complicates economic expectations amid soaring inflation. The discussion also touches on international tensions, particularly regarding criticisms of the AUKUS security pact and its implications for NATO allies. The uncertainty surrounding coalition formations raises questions about future fiscal policies.
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Treasury Yields Rise
- U.S. Treasury yields rose as bond prices fell, reflecting investor alignment with the Fed's view of the economy.
- The market anticipates the Fed will raise interest rates in response to rising economic expectations.
Turkey's Rate Cut
- Turkey's central bank cut interest rates to boost economic growth, despite soaring inflation.
- President Erdogan, opposing conventional theory, believes lower rates will curb inflation.
Germany Criticizes AUKUS
- Germany criticized the AUKUS pact as an insult and a breach of trust with the Biden administration.
- Merkel's advisor, Hoegsson, expressed disappointment in Biden's approach.