Turkish Foreign Investment Fell as Political Tensions Escalated
Turkey attracted $12.3 billion in foreign direct investment in 2016, higher than expected considering the latest developments in Turkey and the neighboring region.
Political uncertainty, a fall in tourism, weak corporate profitability, and credit growth are expected to impact Turkey’s (TUR) growth in 2017.
According to the Turkish government’s latest Medium-Term Economic Plan (or MEP), its forecast for a current account deficit for 2017 is $32 billion, or 4.2% of GDP.
Global markets fell as the United States launched 59 Tomahawk missiles at a Syrian government airbase on the expectation of a chemical attack against Syrian civilians early in April 2017.
The stock market in Turkey rose slightly as the people of Turkey voted for new President Recep Tayyip Erdoğan by a margin of 2.7% on April 16, 2017.
The financial technology industry embodies a combination of financial services and communications tech and aims to reshape the financial sector landscape.
President Trump is expected to submit a tax reform and infrastructure spending package to Congress this year—all aimed at increasing business investments.
Former Morgan Stanley head John Mack is highly optimistic about tech in 2017, given the high creativity across the sector.
US stocks have posted low or negative returns this April, though markets had been surging at the start of 2017 on positive macroeconomic data.
Chinese exports in US dollar terms fell 7.7% in 2016 compared to 2015, making it the worst decline since 2009.
China’s manufacturing PMI rose to 51.8 in March 2017, compared to 51.6 in February 2017. This signals the stabilization of China’s economy in 2017.
Retail sales of consumer goods totaled 8.5 trillion yuan (~$1.3 trillion) in 1Q17, according to the National Bureau of Statistics.
The US trade deficit with China decreased 5.5% to $347 billion in 2016, compared to $367 billion in 2015.
China’s fiscal revenue growth has picked up since the beginning of 2017, as the country has seen surging prices and improved economic growth.
The Chinese economy is expected to grow 6.5% in 2017 as it undertakes fiscal stimulus measures and monetary policy changes. China is currently struggling to improve the pace of its economic growth.
Goldman Sachs’s (GS) equity strategist said in a recent interview with CNBC that he believes the financial sector (XLF) (VFH) and the technology sector (XLK) show promise.
The improved growth in emerging markets was led by a cyclical recovery in Brazil (EWZ) and Russia (ERUS).
Emerging markets started on a weak note in 2016, as equities dropped in concert with concerns around China’s economy and falling oil prices.
Emerging markets are becoming increasing important in the global economy, as they account for about 75% of global output and consumption.
The most important indicators for this week are the US consumer price index and US retail sales.