Trump Threatens EU Auto Imports; Lira Jumps as Erdogan Claims Presidency
Published June 25, 2018
China’s central bank will cut the amount of cash some lenders must hold as reserves, unlocking about 700 billion yuan ($108 billion) of liquidity, as it seeks to control leverage and support smaller companies. The aim is to support small and micro enterprises, and to further promote the debt-to-equity swap program, according to the central bank.
Recep Tayyip Erdogan claimed a mandate to govern with sweeping new powers after an election victory that left his opponents alleging fraud. Erdogan had 53% of the presidential vote to 31% for his closest challenger, Muharrem Ince of the secular Republican People’s Party or CHP, with 98% of ballots counted.
President Donald Trump threatened a 20% tariff on cars imported from the European Union unless the bloc removes import duties and other barriers to US goods, escalating a global trade war the EU warned could endanger $300 billion in commerce.
British Prime Minister Theresa May and German Chancellor Angela Merkel both face renewed pressure coming into this week’s European Leaders Summit. Many UK businesses are calling for more clarity on the process from May.
New home sales data will be released this morning; while newly built single-family home sales have been recovering steadily, driven by solid consumer demand, rising mortgage costs remain a concern. The prospect of rising rates could compel consumers on the fence to participate in the market now to avoid higher mortgage rates later.