Today’s Pickup: Turkish Lira continues plunge, U.S. fed hikes still expected

Good day,

Turkey’s currency continues to plunge, rattling vulnerable emerging markets. A defiant speech from President Recep Tayyip Erdogan, and policy moves infusing liquidity from the nation’s central bank failed to allieve investor concerns about the country’s perilous financial condition. The lira ended 6.6% lower at 6.88 against the U.S. dollar on Monday, after falling as much as 10% in Asian morning trading. The country’s debt and stock markets were also swept up in the turmoil.

The lira is down more than 40% this year, battered by concerns about the NATO member’s political and economic stability and continuing trade tensions with the U.S.

Despite fears of a Turkish contagion, U.S. markets wobbled, but remained generally consistent. Drawing broad conclusions from history, analysts agree the U.S. can generally ignore what happens in emerging markets, unless it involves China. The U.S. economy still looks poised to rack up another quarter of solid growth after expanding at its fastest pace since 2014 in the April-June period, according to Bloomberg. The bigger fear is that, in fact, China is seeing some turbulence. Analysts still expect to see interest rate hikes from Fed. Chairman Powell.

Did you know?

In January 2016, Tesla produced 4526 vehicles out of their Fremont facility. Tesla’s June 2018 production numbers represent a 337% increase over the January 2016 mark.

Quotable:

“That when the sea was calm all boats alike show’d mastership in floating.”

—Shakespeare, The Tragedy of Coriolanus

In other news:

Musk says he’s working with Silver Lake, Goldman to take Tesla private

Elon Musk continued to drip feed details of his controversial plan to take Tesla Inc. private, saying late Monday that he’s getting advice from Goldman Sachs Group Inc. and private-equity firm Silver Lake. (Bloomberg)

Home Depot’s second-quarter sales top estimates, shares rise early

Home Depot Inc (HD.N) on Tuesday reported second-quarter sales that beat Wall Street estimates and revised its earnings forecast for the year, boosted by a rebound in demand for seasonal merchandise. (Reuters)

Tariffs could slow exports, not just imports, New York fed research warns

Higher tariffs on imported goods aren’t likely to narrow the U.S. trade deficit because domestic producers are likely to face higher costs for exports. (WSJ)

Google-Facebook dominance hurts ad tech firms, speeding consolidation

Many ad tech companies and their investors are throwing up their hands. (New York Times)

Port of Amsterdam adds solar panels in sustainability push

The Port of Amsterdam will host the largest solar installation in that city on the building of Singaporean shipper CWT Logistics. (SupplyChainDive) 

Final Thoughts:

Ocean shipping rates into both US coasts are on the rise going into peak season demand. Along with ongoing import growth due to a strong US economy, market watchers also cite tighter regional trade shifts, tighter vessel supply, fuel prices and tariff threats keeping shipping rates strong.