Day: February 11, 2022

Argentina on Thursday announced an expansion of a currency swap with China by US$3 billion.

 

“An extension of the monetary swap by US$3 billion was agreed with the People’s Republic of China,” Gabriela Cerruti, the spokeswoman for the presidency, said during a press conference.

 

The announcement comes in the wake of President Alberto Fernandez’s visit to China, where on Sunday Argentina joined China’s multi-trillion-dollar Belt and Road Initiative, which includes more than US$23 billion in investment and cooperation deals.

 

The new swap deal with China will help boost the Argentine Central Bank’s reserves.

 

During the press conference, Ceruti added that Argentine authorities are also “studying expanding the possible uses of these reserves,” which act like a contingent loan, bearing no costs as long as they are not activated.

 

She said the authorities are “conversing with the corresponding organizations to see what other types of uses can be given to this expansion of the swap.”

 

The Argentine Central Bank responded to the announcement with caution, describing it as a “political agreement while the technical details continue to be negotiated” relating to the amount and timing of the entry of the yuan into Argentina’s reserves.

 

The current total swap amount between the Argentine Central Bank and the People’s Bank of China, China’s Central Bank, is around US$18.7 billion.

 

During 2020’s renewal process, both nations agreed to eliminate the requirement of International Monetary Fund (IMF) support for a swap deal.

 

Argentina’s swap with China was originally signed in 2011 during Cristina Fernandez de Kirchner’s presidency.​​​​​​​

 

According to the Investopedia website, a currency swap is a transaction in which two parties exchange an equivalent amount of money with each other but in different currencies. The parties are essentially loaning each other money and will repay the amounts at a specified date and exchange rate. The purpose could be to hedge exposure to exchange-rate risk, to speculate on the direction of a currency, or to reduce the cost of borrowing in a foreign currency.

 

Source: Anadolu Agency

Major Asian stock exchanges, except for Tokyo’s Nikkei 225, closed the week with losses, after US consumer inflation climbed to record levels, enhancing the prospects of interest rate hikes.

 

US consumer prices rose 7.5% year-on-year in January, marking the largest 12-month increase since February 1982, according to the Labor Department.

 

The consumer price index was above the market estimate of 7.3%, rising 7% in December.

 

Investors are worried that the Federal Reserve could turn more hawkish and make faster and higher rate hikes this year to tame record inflation.

 

The Asia Dow, which includes blue-chip companies in the region, fell 0.51% or 19.40 points, to close at 3,785.61 points on Friday.

 

Tokyo’s Nikkei 225 stock exchange was the sole index posting gains at Friday close, going up by 0.42% or 116.2 points, to reach 26,696.08 points.

 

China’s Shanghai stock exchange dropped 0.66% or 22.96 points to 3,462.95 points.

 

The Hang Seng, the benchmark for blue-chip stocks trading on the Hong Kong stock exchange, lost 17.69 points, or 0.07%, to reach 24,906.66.

 

The Indian Sensex benchmark posted a decrease of 1.30% or 763.36 points to close at 58,162.67 points, and the Singapore index lost 6.43 points, or 0.19%, to reach 3,421.57.

 

Source: Anadolu Agency

 

Turkiye’s calendar-adjusted industrial production soared 14.4% in December on a yearly basis, the country’s statistical authority announced on Friday.

 

While the mining and quarrying sector posted negative results, the manufacturing industry and the electricity, gas, steam, and air conditioning supply indices were on the positive side, data from the Turkish Statistical Institute (TurkStat) indicated.

 

The mining and quarrying sector index dropped 1.4% year-on-year in December.

 

The manufacturing industry and the electricity, gas, steam, and air conditioning supply indices were up 16.2% and 8%, respectively, over the same period.

 

A group of eight experts surveyed by Anadolu Agency this week had projected an 10.8% annual rise in December’s industrial production data.

 

Monthly comparison

 

Turkiye’s industrial output increased by 1.6% in December compared to the previous month.

 

The mining and quarrying sector index dropped by 3.4% month-on-month in December.

 

Over the month, the manufacturing, and gas, steam, and air conditioning supply index were up by 1.8% and 0.6%, respectively, versus November

 

Source: Anadolu Agency

US President Joe Biden has warned American citizens in Ukraine to leave amid fears over potential aggression by Russia.

 

“American citizens should leave now,” Biden told NBC News anchor Lester Holt in an interview partly aired on Thursday.

 

“It’s not like we’re dealing with a terrorist organization. We’re dealing with one of the largest armies in the world. It’s a very different situation and things could go crazy quickly,” he said.

 

Biden also said he would not send troops to get Americans out of Ukraine.

 

“That’s a world war when Americans and Russia start shooting at one another,” he said.

 

Russia recently amassed more than 100,000 troops near Ukraine, prompting fears that the Kremlin could be planning another military offensive against its former Soviet neighbor.

 

Moscow has denied that it is preparing to invade and said its troops are there for exercises.

 

The Kremlin also issued a list of security demands from the West, including a rolling back of troop deployments to some ex-Soviet states and guarantees that Ukraine and Georgia will not join NATO.

 

Source: Anadolu Agency

Turkey’s retail sales volume, a marker of growing consumer spending, surged 15.5% in December 2021 versus the same month of 2020, the country’s statistical authority said on Friday.

 

All sub-indices posted increases year-on-year last December, the Turkish Statistical Institute (TurkStat) data showed.

 

Non-food (except automotive fuel) sales increased by 28.2% in December 2021, compared to the same month in 2020.

 

Automotive fuel sales were up by 2.8%, while that of food, drinks, and tobacco increased by 1.7% over the same period.

 

Among non-food items, textile, clothing, and footwear sales rose the most, climbing 77.3% from December 2020, followed by medical goods and cosmetics (16%) and computers, books and telecommunications equipment (13.1%).

 

Sales by mail order and the Internet soared 34.1% year-on-year in December 2021.

 

On a monthly basis, Turkey’s retail sales volume dropped by 2.7% over the month.

 

Source: Anadolu Agency

Major indices in the US stock market opened higher on Friday, trying to recover from previous day’s losses fueled by inflation climbing to new record high.

 

Consumer prices rose 7.5% year-on-year in January, marking the largest 12-month increase since February 1982, according to the Labor Department.

 

The consumer price index was above the market estimate of 7.3%, rising 7% in December.

 

Investors are worried that the Federal Reserve could turn more hawkish and make faster and higher rate hikes this year to tame record inflation.

 

On Thursday, the Dow Jones fell 526 points, or 1.47%, to close at 35,241. The S&P 500 was off 83 points, or 1.81%, to end at 4,504. The Nasdaq plummeted 304 points, or 2.1%, to 14,185.

 

The blue-chip Dow rose 56 points, or 0.16%, to 35,297 at 9.42 a.m. EDT. The S&P 500 was flat at 4,504. The Nasdaq, on the other hand, fell 18 points, or 0.13%, to 14,163.

 

The VIX volatility index was up 1.2% to 24.20 with expectations of a more hawkish Fed.

 

The dollar index rose 0.28% to 95.82 and the yield on 10-year US Treasury notes retreated 0.93% to 2.010%.

 

Precious metals were mixed with gold adding 0.22% to $1,830 per ounce, but silver declining 0.1% to $23.17.

 

Crude oil prices were on the rise once again. Brent crude was trading at $92.49 per barrel with a 1.2% gain, while US benchmark West Texas Intermediate was at $91.01 – up 1.3%.

 

Source: Anadolu Agency

Turkiye-based global ground handler Havas on Friday acquired Crotia’s MZLZ Ground Handling Services operating at Zagreb Airport.

 

Havas took over passenger, ramp, representation and supervision services, flight operation, load control and communication services as well as cargo and mail services at the airport in the capital city, the company said in a statement.

 

Zagreb becomes the 31st airport in the portfolio of Havas, with nearly 500 employees and a machine park consisting of 176 motorized and 346 wheeled equipment.

 

Havas’ General Manager Mete Erna said nearly 30 airlines fly to Zagreb Airport, which is a significant touristic destination in the Adriatic.

 

“We will increase the efficiency of our operations, sustain our investments in ground handling services and continue to be the preferred business partner of airlines,” Erna said.

 

In 2019, Zagreb Airport welcomed more than 3.4 million passengers and 45,000 flights, beside seeing almost 13,000 tons of cargo.

 

Due to travel restrictions amid the COVID-19 pandemic, the passenger traffic in 2021 was around 41% of 2019.

 

The consortium including TAV Airports and Groupe ADP holds the right to operate Zagreb Airport until 2042.

 

Havas, a TAV Airports and Groupe ADP company, operates at 29 airports in Turkiye, as well as Zagreb Airport in Croatia and Riga Airport in Latvia.

 

Established in 1958, Havas provides passenger transportation service between airports and city centers.

 

Source: Anadolu Agency

Russia’s Central Bank on Friday raised its key rate by 100 basis points to 9.5% to cushion surging inflation, bringing borrowing costs to their highest level in five years.

 

“Inflation is developing appreciably above the Bank’s October forecast,” the bank said in a statement.

 

It also said that inflation expectations have not declined yet and hit multi-year highs, adding the monetary policy stance is aimed to return inflation to 4%.

 

Annual inflation in January climbed to 8.7% (vs 8.4% in December 2021), which is projected at 8.8% as of 4 Feb.

 

Expanding demand, global commodity prices and the rapid recovery of economic activity exacerbates inflationary pressure, the bank said.

 

Source: Anadolu Agency

Turkiye’s benchmark stock index opened at 2,023.04 points on Friday, down 15.63, or 0.77%, from the previous close.

 

The BIST 100 index was down 0.2% to close on Thursday at 2,038.67 points, with a daily trading volume of 27.6 billion Turkish liras ($2 billion).

 

The US dollar/Turkish lira exchange rate dropped slightly to 13.5320 as of 9.30 a.m. local time (0630GMT), from 13.5430 at Thursday’s close.

 

The euro/lira exchange rate also fell to 15.4070 from 15.4220, while a British pound traded for 18.3070 liras, down from 18.3660 at the last close.

 

Brent crude oil sold for around $90.7 per barrel as of 10 a.m. local time (0700GMT)

 

Source: Anadolu Agency