14/08/2018 - Markets Rocked By Crisis In Turkey

TRY

The Turkish Lira dominated headlines on Monday after a widening diplomatic spat with the US intensified and investors fretted about the government's lack of action to tackle the problems plaguing its economy. The Lira plunged as much as 9% against the dollar, hitting a record low as the country wrestled with a crisis that has rattled markets around the world.

Economists are warning that if confidence isn't restored quickly, Turkey could lurch into a recession and debt crisis requiring a bailout from the International Monetary Fund.

Turkey's central bank has said it is ready to take "all necessary measures" to ensure financial stability and it has vowed to provide banks with "all the liquidity the banks need".

The slide was ignited on Friday, when US President Donald Trump approved the doubling of tariffs on Turkish steel and aluminium, following Turkey's refusal to free American pastor Andrew Brunson who has been in detention in Turkey for nearly two years.

GBP

In a report released by the Chartered Institute of Personnel and Development (CIPD) firms are struggling to recruit staff after a steep fall in the number of people coming to Britain from the European Union.

Some 40% of employers had found it harder to fill vacancies in the past 12 months however it also said a tighter labour market was boosting wages for some.

The news follows warnings of shortages in sectors such as health and hospitality since Britain voted to leave the EU. The CIPD said the number of EU-born workers in Britain increased by just 7,000 between the first quarters of 2017 and 2018.

The survey of 2,000 employers found the number of applicants per vacancy had dropped at every skill level - low, medium and high since last summer.

Key Announcements

09:30 – GBP: Average Earnings Index expected to remain at 2.5%