Reuters Insider - Markets rally over Turkey election

Baader Bank AG

02/11/2015 17:21

Click the following link to watch video:                              
 https://insider.thomsonreuters.com/link.html?cn=share&cid=1511904&shareToken=MzpiODBjOWQwMi1kZDE3LTQ2ZjYtOWMwMC03ZTUzYTE0MmRiZDY%3D&playerName=ReutersNews 
                                                                       
 Source:             Thomson Reuters                                   
                                                                       
 Description:        Turkish assets rally, with the lira on track for  
                     its biggest one-day gain in seven years and stocks 
                     up 5 percent after an election that returned the  
                     country to single-party rule.                     
 
 
(To access all exclusive Reuters Insider programming visit: http://insider.thomsonreuters.com) 
 
 Short Link:  http://reut.rs/1RpjuHl  
 
 
Transcript (May be auto-generated)

                 The Lira's biggest one-day gain in almost seven years and stocks up nearly 6%- 
investors showed their relief over the Turkish election as the country returns 
to single-party rule. The AK Party founded by President Erdogan took just shy of
half the vote. It offers a reprieve from the uncertainty that's plagued Turkey's
markets since the AKP lost its single-party majority in June. Pressure is now on
for the government to boost the flagging economy and the EU will be keen to see 
how it handles the increasing refugee crisis in the region. Baader Bank's Robert
Halver. I think the stock market would have wanted a different result- a 
coalition in Turkey. If they now try to fundamentally change the constitution, 
that won't be to the stock market's taste. Political concerns this year have led
Turkish assets to lag far behind their 

emerging market peers, with the Lira having fallen around 20%- that's a far cry 
from the booming growth the country has seen in recent years. BGC's Mike Ingram.
One of the things that Erdogan needs to do is certainly dial back on tax on some
of the institutions. He needs to dial back on the tax on the central bank then 
get on with the job that he has to do. Overall, he needs to make investors 
confident that Turkey is a place where it's safe to invest. But safety is a 
concern. In an attempt to win back nationalist support, the AKP government in 
recent months struck against Kurdish militants, putting an end to a two and a 
half year ceasefire. And the war in neighboring Syria has worsened. Some critics
say they fear a drift to authoritarianism under the President