Fitch Warns of Fed Taper Risks, Indecision Over Turkish Presence in Kabul Rises

LOCAL NEWS

• Fitch says weak monetary policy and the Fed taper leaves indebted firms exposed to FX volatility in Turkey.
  • Says reliance on short-term funding and distribution of debt maturities has not changed in Turkish corporates.
  • 66% are now at or above the country ceiling (BB-) – making the portfolio more sensitive to sovereign rating changes
• WH Adviser Sullivan says Biden and Erdogan agreed to cooperate on Afghanistan and that US support for this would be forthcoming. Noted, however, that no progress was made on S-400s
• Russia says Turkey's proposal to keep forces in Afghanistan (Kabul Airport) after the US' withdrawal goes against the 2020 deal to pull out of foreign forces.
  • Notes the deal stipulated full withdrawal of foreign troops by May 1 2021. The Taliban has expressed reluctance over the presence of Turkish troops
• Turkish, German Defense Ministers hold 'constructive' meeting in Ankara, discussing counter-terrorism.
  • German Defense min said diplomatic missions in Afghanistan were crucial in ensuring security of the Kabul Airport
• HDP Deputy says gunman that attacked HDP headquarters was trained by pro-AKP bodies (SADAT) in northern Syria and tried to pass him off as a crazy drunkard.
  • Noted the damage could have been far greater had the meeting of HDP execs set for the morning not been delayed