Q3 2018

05. September 2018:
CNBC:
JP Morgan’s top quant warns next crisis to have flash crashes and social unrest not seen in 50 years

04. September 2018:

FT:
Argentina turmoil batters big names in bond market
Franklin Templeton funds have lost $1.2bn on biggest Argentine positions

Handelsblatt:
Franklin Templeton verliert in Argentinien Milliarden mit riskanten Anleihewetten
Der bekannte Bondsmanager Michael Hasenstab hat auf argentinische Anleihen gesetzt – und in der jüngsten Krise viel Geld verloren. Auch andere Fondshäuser leiden.

Austrian.economicblogs:
No Other Banks Are This Exposed to Turkey, Argentina, Brazil…. Emerging Markets Haunt Spanish Banks
Summary:
To diversify from the euro-debt-crisis, the biggest Spanish banks pushed deeply into Emerging Markets. Now, they’re in a new crisis.  By Don Quijones, Spain, UK, & Mexico, editor at WOLF STREET. Almost exactly six years ago, the Spanish government requested a €100 billion bailout from the Troika (ECB, European Commission and IMF) to rescue its bankrupt savings banks, which were then merged with much larger commercial banks. Over €40 billion of the credit line was used; much of it is still unpaid. Yet Spain’s banking system could soon face a brand new crisis, this time not involving small or mid-sized savings banks but instead its alpha lenders, which are heavily exposed to emerging economies, from Argentina to Turkey and beyond. In the case of Turkey’s financial system, Spanish
14. August:

Independent by Ann Pettifor:
Why the Federal Reserve is as much to blame for Turkey’s economic crisis as Donald Trump
It is necessary to point to the Fed’s actions to understand tremors in world markets, but central bankers should never have been held solely responsible for the restoration of macroeconomic stability.

Bloomberg:
Soviet Collapse Echoes in China’s Belt and Road
Grand investment plans for unproductive regions have caused empires to founder before.

JP Morgan:
Should U.S. investors worry about Turkey?
Turkish assets have been under severe pressure, with the Turkish lira depreciating by 42% against the U.S. dollar this year, down 22% this week alone. In addition, year-to-date, local equities are down 19% and the 10 year USD government bond yield is up 309 bps to 8.4% since January 23, 2018, the earliest available trading date this year.