Disney's "Avengers: Endgame" is now the highest-grossing film of all time having earned $2.79 billion at the global box office.Entertainmentread more
Peter Neupert worked for Microsoft and Amazon-backed Drugstore.com, where he got to know Jeff Bezos. He now advises start-ups.Technologyread more
Regional stability, oil prices and potential for war will all depend on what Iran does with its nuclear program in the event of the deal's termination.World Politicsread more
Instagram began tests that hide "like" counts on posts. That means influencers who market products on Instagram will have to rely on different metrics to show success.Technologyread more
Facebook Vice President David Marcus is the face of the company's Libra digital currency, but the original driving force was a 26-year-old female corporate-development...Technologyread more
Moving lots of data to a public cloud over the internet can take months or years. CNBC got an inside look at how AWS transfers data to the cloud for its clients.Technologyread more
Amazon's new policy for account suspensions doesn't go far enough to protect sellers from potentially unfair and wrongful suspensions, merchants say.Technologyread more
There is no end in sight to the Boeing 737 Max grounding after two fatal crashes, prompting airlines to rethink their growth plans.Airlinesread more
After a year of flooding, Midwest farmers face a stifling heat wave that's spreading across the U.S.Weather & Natural Disastersread more
On Saturday, Disney's Marvel Studios announced its upcoming slate of superhero films during a panel at San Diego Comic-Con.Entertainmentread more
"It troubles me that the most important political office in the world is becoming the face of racism and exclusion," Kaeser said in a Twitter post.Politicsread more
The Turkish government is playing a dangerous political game that risks hitting the country with a full-blown currency crisis and ratings downgrade, experts warn.
Over the past week, Turkish President Tayyip Erdogan's administration has lashed out at the central bank, urging it to aggressively lower interest rates to shore up economic growth ahead of general elections in June. The political pressure has troubled investors, sending the lira to an all-time low of 2.6290 per dollar on Thursday, the third straight day of record declines.
Erdogan's demands come after the Central Bank of the Republic of Turkey (CBRT) lowered benchmark rates last month, its second cut since December. While the CBRT has been under pressure to ease policy for years, markets are worried recent scathing attacks could spell the end of the central bank's independence.
"The CBRT's dovishness has coincided with a period of intense political pressures, which has only bolstered the market's skepticism regarding central bank independence and credibility," stated Barclays analysts in a note.
"There's nothing wrong with a collaborative policy between government and central banks, but this type of confrontation undermines the CBRT's authority. It's also counterproductive as it doesn't translate into macro stability," said Vishnu Varathan, senior economist at Mizuho Bank.
Turkish Prime Minister Ahmet Davutoglu attempted to reassure investors on Thursday, stating that the country's central bank remains independent: "There is no need to worry about Turkey's institutional set-up," he told the Council on Foreign Relations in New York.
The market has taken a dim view of Erdogan's encroachment into monetary policy and the risk is that he could stir a currency crisis, said Kathleen Brooks, research director at FOREX.com in a note on Thursday. All eyes are now on what the central bank does at the next policy meeting on March 17th.
"It seems like the market is only interested in one direction when it comes to the lira, and that is lower," Brooks said. "If the central bank governor does resign in the coming days, or bows to pressure from the government, then this could trigger another leg higher for USDTRY."
Barclays agreed that the lira's selloff will only get worse if the central bank does yield to Erdogan: "The potentially aggressive interest rates cuts would keep real rates subdued, even though inflation is expected to fall over the coming months, eroding the currency's attractiveness."
With losses of 10 percent against the greenback since January, the lira is one of the world's worst-performing currencies this year.
If it continues to weaken, Turkey's gross external debt will become more expensive to service. "Although overall public debt levels remain low at 36.6 percent, external debts denominated in foreign currency have risen, which leaves the country vulnerable to a currency crisis," Brooks continued.
Continued confrontation between the government and central bank increases the risks of Turkey losing its investment grade status over the next few months, according to Barclays.
"The pressures on the CBRT to cut interest rates will likely heighten concerns about checks and balances, policy predictability and broader political risks in Turkey, which had been cited as source of downward pressure on Turkey's rating by both Fitch and Moody's," the bank said.
Consequently, it recommends investors take a more cautious approach toward Turkey despite the country being a major beneficiary of falling commodity prices.