Turkey’s problems are spilling over into the broader markets this morning, as the Lira touched an all-time low against the dollar and plunged 13% overnight as Turkish president Erdogan called on citizens to convert their dollars and gold into Lira. The Euro also touched a 13 month low against the dollar over concerns of European Banking exposure to Turkey.
In Delaware, US Federal Judge Leonard Stark has authorized the seizure of Citgo Petroleum to satisfy a Venezuelan government debt owed to a defunct Canadian gold miner. The ruling could likely set off a scramble among Venezuela’s many unpaid creditors to wrest control of its only obviously seizable U.S. asset, as Venezuela’s oil production continues to plummet.
With us GDP growing at a 4.1% clip last quarter and the job market solid, consumer inflation has become the wild card for economists. The latest figure, which could be the highest in more than six years, will be released this morning by the Labor Department. Expectations are for CPI to have increased 2.3% Y/Y, and headline CPI (including food and energy) to have reached a 3% Y/Y pace for the first time since December 2011.
With Northwest Quadrant Wealth Management a Registered Investment Advisor I am Josh Fenili.