Page 7 - TURKRptJun21

2.0 Politics 2.1 Watchlist
● Global liquidity: The Fed’s balance sheet is breaking fresh records.
A sharp reversal in the money printing is not expected soon. “Sell in May, go holiday” worked in the cryptocurrency markets but USD lost value in the month. DXY was below the 90-level.
Discussions over the Biden administration’s new stimulus packages and tax hike plans continue.
● Virus lockdowns and demand conditions in Europe.
● Halkbank case: On April 12, a hearing was held at the 2nd US Circuit Court of Appeals in Manhattan, a higher court will decide whether Halkbank can be prosecuted by the US. The appeals court did not say when it will rule. The case stays politicised.
● April 24: US President Joe Biden caused some surprise by formally calling the WWI-era Armenian Genocide by its name.
However, the move was delivered with some subtlety, not in a fashion that would necessarily blow up the available bridges between Biden and Erdogan. (The Biden administration appears to be making a specialty of this kind of two-sided move. For instance, Biden announced sanctions that applied to Russian government paper, as reflected in some media reports, but at the same time the US finance industry loaded up on the paper since the sanctions were only applied to the primary market; the secondary market was left open to benefit from the hit on prices caused by the sanctions talk.)
On April 23, Biden finally deigned to call Erdogan. Erdogan had been waiting for a call since Biden won elections in November.
The press was informed that Biden and Erdogan will meet on the sidelines of a Nato summit to be held on June 14 in Brussels.
Then, it was “leaked” that during the call Biden confirmed to Erdogan that the “G-word” would be at the heart of a statement to be released by the US leader on April 24.
There are still few clues as to what the Biden administration is
7 TURKEY Country Report June 2021 www.intellinews.com