Believe it or not but it will have ripple effects across all great oceans of the world
Los Angeles August 18, 2018
Senior
US tourism officials are concerned that global trade tensions ignited by
the United States could negatively impact the number of visitors to the
country, which is nearly five times the size of the American steel industry
that is at the heart of the trade disputes.
China's
Xinhua news agency reported that according to a report by azcentral.com, a
popular news website in the state of Arizona, President and CEO of the US Travel
Association Roger Dow expressed his worries during a visit to Phoenix.
Dow
said global trade tensions could discourage international visitors or undermine
the value of their currencies, which would make trips to the Unites States less
affordable. The association's data shows that visits by international
travellers are down about six per cent over the past two years.
That
decline is the result of several factors, including the strong US dollar,
economic weakness in Latin America and the proliferation of low-cost European
airlines that has encouraged travel within Europe, Dow said, adding that the
rhetoric by the White House that might not make some international visitors
feel welcome also could be taking a toll.
"It's
a fragile thing this thing we call travel," Dow said. "A dip in
travel could have more impact than the steel and aluminium tariffs
combined."
Dow
said he is especially concerned about a possible reduction in the number of
visits by Chinese tourists, given the Trump administration's claim that China
is the main source of trade imbalances.....
Turkey Situation Here Aug17, 2018
Turkey on Friday threatened to respond if the United States levied further sanctions over the detention of an American pastor, which has sparked a diplomatic standoff and battered the Turkish currency.
"We've already responded based on the World Trade Organisation rules and will continue to do so," Trade Minister Ruhsar Pekcan was quoted as saying by the state-run Anadolu news agency.
Washington warned on Thursday that it would impose more sanctions unless pastor Andrew Brunson, described by US President Donald Trump as a "hostage", was released.
Brunson's detention since October 2016 on terror-related charges has soured relations between the two NATO allies, sending the Turkish lira into a tailspin.
The lira, which earlier this week traded at well over seven to the dollar, was at 5.8 against the dollar and 6.7 against euro on Friday.
Last week, Trump tweeted that his administration was doubling aluminium and steel tariffs for Turkey, and in response Ankara sharply hiked tariffs on some US products.
US Treasury Secretary Steven Mnuchin suggested Thursday the next spiral of tit-for-tat sanctions was coming soon, in a sign of a deepening spat
Five companies from Turkey among world\'s biggest steel producers
 Erdemir Group, Habas, Icdas, Diler Group and Colakoglu Metalurji were included in the world\'s leading steel & metal markets publication Metal Bulletin\'s \"Biggest Steel Producers List\" for 2010.
Five Turkish companies have been named among the world's biggest steel producers.
Turkish companies Erdemir Group, Habas, Icdas, Diler Group and Colakoglu Metalurji were included in the world's leading steel & metal markets publication Metal Bulletin's "Biggest Steel Producers List" for 2010.
A total of 116 companies from all over the world entered World Bulletin's list.
Erdemir Group was ranked the 47th in the list with its steel production reaching 7.1 million tons, while Habas was ranked the 72nd with a production of 4.4 million tons, Icdas was positioned the 76th with its production of 3.6 million tons, Diler Group was at the 108th place with its production around 2.3 million tons and Colakoglu Metalurji was ranked the 110th with its steel production reaching 2.1 million tons.
ArcelorMittal from Luxembourg; Hebei Steel, Baosteel and Wuhan from China; and Nippon Steel from Japan topped World Bulletin's annual list.
One big company that I used to know not even in list, so you see what it mean Europe’s leading steel pipe manufacturer, Borusan Mannesmann has started its business in 1958 as the first enterprise of Turkey's leading industrial power, the Borusan Group. Having Borusan Group’s power and reliability, Borusan Mannesmann has become a trusted brand for more than 55 years and all over the world. A journey, which started with 27 employees and 5 types of products, is proceeding with 1400 employees and a product range of 4000 items today.
Borusan Mannesmann having a global vision; signed a
partnership with Europe's leading steel and technology company, Salzgitter
Mannesmann GmbH in 1998, and strengthened its position of competitiveness in
the international arena.
Today Borusan Mannesmann, with it’s 5 plants in 3 continents,1.4 mn tons of production capacity and high sales volume, is among Europe and the world's leading producers in the steel pipe industry...
While exporting products to various countries in
Americas (similar to South Korea’s Hyundai Steel and South Koreans are
suffering more), Europe, Africa and Asia, Borusan Mannesmann contributes to
Turkey and it also grows into one of the main driving forces of the Turkish
economy due to its assurance for future developments.
Utilizing its experience to the markets overseas,
especially in USA, Europe and Middle East, Borusan Mannesmann has
successfully accomplished producing pipes for numerous major energy, oil and
gas pipeline projects. The name of Borusan Mannesmann can be found under many
great worldwide projects. The company provides products for various international
projects such as The Baku – Tbilisi - Ceyhan Pipeline, The NK1 Oil Pipeline,
The Şahdeniz,
The Blue Stream, The Turkey – Greece Pipeline, Hungary Gas Pipeline, USA-Elba
Express Natural Gas Pipeline and TANAP projects.
CAUSE & EFFECT
The hurt that President Trump laid on Turkey on Aug. 10 was
feather-light— a doubling of
tariffs on imported Turkish steel and aluminum. Turkey sells only
about $1.4 billion in primary metals to the U.S. in an average year,
according to the U.S. Commerce Department. So the new levies will reduce the
country’s gross domestic product by just about 0.04 percent. And that’s
assuming Turkish mills and smelters have to cut prices by 25 percent to
retain their American customers—the hit will be even less if the Turks find
customers in other nations that aren’t jamming it with high tariffs.
So why did a 0.04 percent slap on the wrist—more of a tap,
really—cause the Turkish lira
to plummet; prompt President Recep Tayyip Erdogan to complain of “economic
warfare”; push down the
currencies of Argentina, India, Indonesia, Mexico, Russia, South
Africa, and Zambia; and raise Italy’s borrowing costs to their highest vs.
Germany’s since May? It’s simple, actually. Conditions for a crisis were
ripe. Financial weakness and poor policies in Turkey and other vulnerable
nations supplied dry tinder. Two headstrong characters, Erdogan and Trump,
butting heads like flint and steel, provided the spark. “Countries go through
stress in two ways, gradually and then suddenly. We’re seeing the ‘suddenly’
right now,” says Samy Muaddi, a Baltimore-based money manager at T. Rowe
Price Group who manages the Emerging Markets Corporate Bond Fund.
The currency crisis is a huge blow to Erdogan, who won reelection
in June. Investors grew restive after the vote when he appointed his
son-in-law, Berat Albayrak, as treasury and
finance minister and exerted pressure on the central bank not to
raise interest rates, which would have helped defend the currency and lower
inflation. Now things are coming to a head. Turkish banks and nonfinancial
businesses borrowed heavily in dollars, so the fall of the lira will sharply
increase their financing costs, raising the risk that this becomes a
full-blown debt crisis. “The authorities need to act decisively, but history suggests
that they will instead procrastinate,” writes Nafez Zouk, the lead
emerging-markets economist at Oxford Economics in London.
Erdogan has been wanton in his management of the economy. He
suggests that high interest rates are “the mother and father of all evil” and
subscribes to a theory that increasing them causes inflation. In striving to
show financial independence, the autocrat has done the opposite: raised the
likelihood Turkey will eventually require assistance from the International
Monetary Fund, China, or someone else. On Aug. 14 he was reduced to threatening a
boycott of iPhones. The next day, Qatar threw
him a lifeline, promising to invest $15 billion in Turkey. The
strongman appears weak.
For the rest of the world, the risk is contagion, the
transmission of financial problems from one nation to another. Even if Turkey
doesn’t directly infect other countries, its troubles could instigate a
general retreat from vulnerable emerging markets
|
No comments:
Post a Comment