The devil makes work for idle traders – a paucity of central bank meetings and major data releases means there will be plenty of time for investors to think about emerging markets next week. And so they should. Turkey’s economy is threatening a meltdown, Russia could be slammed with fresh sanctions and South Africa has found itself in President Donald Trump’s crosshairs. Not forgetting that the trade skirmish between the U.S. and China will rumble on, too.
Turkey is back to work this week after an extended national holiday. Officials will need to get cracking on an urgent task – restoring confidence. The economy has been running hot for several years, inflation has got out of control and there has been too much borrowing in foreign currency. The Fed’s tightening cycle hasn’t helped. But what really lit the fuse was President Recep Tayyip Erdogan’s heavy-handed management of the economy.
