Turkey shaken by financial fears, Trump rattles it further

Thomson branded summer holiday brochures

Thomson branded summer holiday brochures

But the trade minister, Ruhsar Pekcan, said: "We implore President Trump to return to the negotiating table".

Trump decided in March to impose import duties of 25 percent on steel and 10 percent on aluminum imports from several countries, including Turkey. The president launched his steel and aluminum tariffs on the grounds that maintaining a robust domestic metal industry was a core national-security interest of the United States, and that competition with metal imports was threatening to drive said industry into extinction.

The Russian economy has for four years been hurt by the effects of sanctions imposed on the country in response to its annexation of Crimea and intervention in Ukraine.

Turkey's currency sank to record lows on Friday amid panic about the country's economic health and souring relations with the United States.

In 2017, 19 billion dollars worth of goods were traded between the US and Turkey. Already, U.S. -Turkey relations have been strained over an array of conflicts.

The US dealt Turkey and the lira a further blow in a tweet on Friday, in which Mr Trump said he had approved the doubling of tariffs on Turkish steel and aluminium.

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The lira's value fell about 13 percent against the dollar on Friday.

The currency had spent much of 2014 hovering at just over two to the United States dollar but broke through the three mark for the first time after the 2016 failed coup bid and then slid to four earlier this year.

Erdogan and his newly appointed finance minister, Berat Albayrak, are due to speak at 2 p.m. local time Friday.

That is unlikely to mollify investors who are also anxious by the growing dispute with the United States.

"A US-induced crisis in Turkey will create a new martyr in the region, with far-reaching consequences which American congressmen and President Trump do not foresee", Bulent Gultekin, a professor at the Wharton School of the University of Pennsylvania and the former Turkish Central Bank governor, told MEE.

Turkey's President Recep Tayyip Erdogan saluting supporters after Friday prayers, in Bayburt, Turkey, yesterday.

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Jefferies analysts said Turkey contributed 14 percent to BBVA's first-half group profit and 9 percent to UniCredit's consolidated profit, although their capital exposure is limited. But some investors fear the Turkish economy is growing too quickly and could face problems. Erdogan has frequently blamed an "interest rate lobby" and Western credit ratings agencies for trying to bring down Turkey's economy.

Meanwhile, investors are anxious about the economic policies of President Recep Tayyip Erdogan, who won a new term in office in June with sweeping new powers.

Emerging market currencies are ending the week with a brutal sea of red across the board, with consistent losses throughout Asia, while the South African rand and Turkish lira are leading the way with losses within the EMEA.

A "gigantic rate hike" of at least 500 basis points to calm markets and a clear commitment from the Central Bank of Turkey to support the currency could help halt the decline, Hordijk said, adding, "Another bandage to stop the lira from bleeding to death would be capital controls, but Erdogan opposes these measures".

Last week, the U.S. -Turkish relations is a dispute over an American clergyman who has been jailed in Turkey since December 2016. Earlier this month, the United States slapped sanctions against Turkey's ministers of justice and interior in response to Brunson's detention.

Turkey's currency slumped to a new record low as Donald Trump compounded the country's economic crisis by doubling steel and aluminium tariffs.

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