Page 25 - aruba-today-20180811

BUSINESS Saturday 11 auguSt 2018
A25

Turmoil in Turkey sends US and European stocks sharply lower

By MARLEY JAY of America gave up 1 per-
NEW YORK (AP) — U.S. cent to $31.29. Citigroup re-
stocks are skidding Friday treated 2 percent to $07.53.
after a sharp drop in Eu- Big dividend stocks like utili-
rope as investors worried ties and household goods
about the financial stabil- retailers held up better
ity of Turkey. The Turkish lira than the rest of the market.
nosedived again following Evergy gained 1.4 percent
concerns about the coun- to $57.84 and Walmart rose
try's economic policies and 1.3 percent to $90.15.
sanctions from the U.S. OVERSEAS: Germany's DAX
European banks are taking fell 2.1 percent and the
some of the worst losses. CAC 40 in France fell 1.7
Seeking safety, investors percent. Britain's FTSE 100
are buying U.S. dollars and lost 1 percent. The Nikkei
government bonds. The 225 index in Japan lost 1.3
rising dollar helped U.S-fo- percent. Hong Kong's Hang
cused companies but hurt Seng gave up 0.8 percent.
big exporters. Rising bond In South Korea, the Kospi
prices are sending interest lost 0.9 percent.
rates lower, hurting banks. CURRENCIES: Emerging
KEEPING SCORE: The S&P market currencies fell and
500 index slid 14 points, the dollar jumped. The ICE
or 0.5 percent, to 2,839 as U.S. Dollar Index was al-
of noon Eastern time. The Trader Jonathan Mueller works in the E&J Securities booth on the floor of the New York Stock Ex- ready trading around an-
Dow Jones Industrial Aver- change, Friday, Aug. 10, 2018. nual highs and it rose an-
age dropped 174 points, or Associated Press other 0.7 percent, a large
0.7 percent, to 25,334. The move.
Nasdaq composite, which ried about Turkish President a tariff on steel and alumi- Bank dropped 5 percent The euro fell to $1.1398, its
has risen for eight days in a Recep Tayyip Erdogan's un- num imported from Turkey. to $11.78 and Banco lowest in more than a year,
row, sank 31 points, or 0.4 orthodox economic views. The U.S. sanctioned Turkey Santander of Spain fell 3.6 from $1.1542. The dollar fell
percent, to 7,860. He says higher interest rates after it arrested an Ameri- percent to $5.18. British to 110.66 yen from 111.04
TURKEY: The Turkish lira lead to higher inflation, the can pastor and put him on bank Barclays fell 2.5 per- yen after a strong eco-
dropped again and is now opposite of what standard trial for espionage and ter- cent to $9.72. nomic growth report form
down 66 percent this year economic theory says. As a ror-related charges. U.S. BANKS: Bond prices Japan.
against the dollar. The result he's pushed Turkey's FALLOUT: Analysts say Tur- rose. The yield on the 10- LOSING GROUND: When
weakening lira has been central bank to keep inter- key's problems shouldn't year Treasury note fell to the dollar gets stronger, it
pushing up the cost of est rates low, threatening its have a major impact on 2.89 percent from 2.93 hurts U.S. companies that
goods for Turkish people independence. the global financial system. percent. That helped send get a lot of revenue from
and shaken international U.S. President Donald Trump Still, some European banks bank stocks lower. JPM- overseas. That includes
investors' confidence in the said Friday he will authorize could be exposed to loss- organ Chase slid 0.9 per- technology and industrial
country. Investors are wor- the government to double es. Germany's Deutsche cent to $115.81 and Bank companies.q

Japan's economy rebounds as

consumers, companies spend more

Associated Press In quarterly terms, gross do- "While GDP started ex-
TOKYO (AP) — Japan's mestic product expanded panding again in the sec-
economy resumed its long- 0.5 percent in April-June, ond quarter, growth isn't
time expansion in the last rebounding from a 0.2 per- as vigorous as last year.
quarter as consumers and cent contraction. With the economy running
businesses stepped up Consumers spent more into capacity constraints,
spending, the government thanks partly to a rise in we think that activity will
said Friday. earnings mostly fueled by remain sluggish for now,"
Preliminary data showed strong half-year bonus pay- Thieliant said.
that trade weighed slightly ments. The 2.1 percent gain The contraction early in the
on growth, a worrying sign in cash earnings in the last year interrupted Japan's In this July 20, 2018, photo, people walk on a street in Ginza
as Japan braces for tariffs quarter was the strongest longest expansion in almost shopping district in Tokyo.
that the administration of since 1997 and job growth three decades. But growth Associated Press
President Donald Trump also remained strong, but a has remained weaker than
plans to impose on imports large share of that income hoped for. en the heavy reliance of ply machinery and parts
of steel and, possibly, autos likely went into savings, Still, the news could help Japanese manufacturers for electronics, autos and
and auto parts. Marcel Thieliant of Capital Prime Minister Shinzo Abe on demand from factories other products.
The world's third largest Economics said in a com- in his campaign to remain in China. Higher tariffs im- Trade talks between Ja-
economy grew at a 1.9 mentary. leader of the ruling Liberal posed by the U.S. on ex- pan and the U.S. in Wash-
percent annual pace af- He said he expects spend- Democratic Party in an ports of billions of dollars of ington on Thursday report-
ter contracting by 0.6 per- ing to remain relatively election in September. Chinese good are likely to edly made little headway
cent in January-March, the strong ahead of a sales tax The outlook for trade is a pinch a wide array of Jap- but were due to resume
Cabinet Office said. hike expected next year. looming uncertainty, giv- anese industries that sup- Friday.q