Turkish lira at historic low
The Turkish lira fell to near an all-time high yesterday, a day after a surprise rate cut by the Turkish central bank, as broader emerging market currencies headed for their third consecutive weekly loss amid fears the group Chinese Evergrande (æå¤§ éå) is not lacking. The lira fell almost 1% to 8.855 to the US dollar, its weakest since June 2. The currency, down nearly 16% this year, is among the worst performing in emerging markets, with Turkey’s heavy foreign debt and the independence of its central power. bank considered the main concern of investors. The central bank was generally expected to keep interest rates at 19%, but instead on Thursday it launched a stimulus long sought by Turkish President Recep Tayyip Erdogan.
Daimler in the battery adventure
Daimler AG will partner with Stellantis NV and TotalEnergies SE in a European battery company that will cost more than 7 billion euros ($ 8.2 billion) to secure the supply of Mercedes-Benz electric vehicles. The world’s largest luxury vehicle maker will take a 33% stake in battery maker Automotive Cells Co (ACC) and fund the deal with equity, debt and grants. The new venture is to build a capacity of at least 120 gigawatt hours in Europe by the end of the decade. Mercedes is reportedly investing around â¬ 500 million next year, but expects its total spending to remain below â¬ 1 billion. The deal marks the latest step for sedan maker EQS to accelerate towards fully electric vehicles, expecting affluent buyers to be at the forefront of change.
Temporary inflation: ECB
Many factors of a recent surge in inflation in the euro area are temporary and are expected to subside next year, European Central Bank (ECB) President Christine Lagarde said yesterday. Prices have rebounded faster than expected as economies reopened after lockdowns induced by COVID-19, and several ECB policymakers believe inflation will be near or above the ECB’s 2% target. next year, she said. Lagarde blamed much of the rise on supply disruptions and said inflation is expected to stabilize next year. “When you look at what causes [inflation], this is largely related to energy prices, âsaid Lagarde. She added that “things will fall into place” when new sources of supply are found.
Household net worth increases
Household net worth hit a new record in the second quarter, as Americans benefited from a booming stock market and the largest ever increase in the value of their real estate holdings. Household net worth rose $ 5.8 trillion, or 4.3%, to $ 141.7 trillion in the second quarter, a Federal Reserve report said on Thursday. The advance included a US $ 3.5 trillion gain in stock value and a US $ 1.2 trillion improvement in real estate held by households. Stocks hit record highs and low borrowing costs supported a wave of home purchases and, ultimately, an appreciation in house prices. Shares as a percentage of total household assets rose in the second quarter to nearly 29.5%, from 25.6% in 2019, according to the report. However, a large portion of Americans are not invested in the stock market, and for many renters, the steep rise in house prices has made the prospect of owning a home even more out of reach.
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