Turkish lira down
In a move by one NATO member, France, against another, Turkey, the potential for a dust up of the long tense relations rises in likelihood. On another chapter of long running territorial disputes between Greece and Turkey concerning the territorial waters surrounding tiny uninhabited Greek islands close to Turkey, the Erdogan government has decided to make a stand by dispatching exploration vessels close to some of these Greek islands off the Cypriot coast. The history of the Greek Turkish relationship is long and troubled. That the French would pick up the gauntlet and steam naval airpower into the region in stated defense of Greek grievances is a new chapter in the leadership by France into the vacuum left by US isolationism. The Turkish Lira has lost .3227 since February 20 and is at its highest price per Euro since 2005, from which point it has declined in value by 369.09% to today. The weakening of the Lira is a development worth watching.
IEA lowers crude consumption expectations
In a continuing slowdown in crude oil demand worldwide resulting from covid-19 the IEA cut its 2020 forecast, as well as for 2021. The intergovernmental International Energy Agency (IEA) now thinks that demand for crude in 2020 will come in at 91.9 barrels a day which is a .081 decline from 2019 crude consumption. While oil is moving up slowly now trading with a 42 handle, it is likely to meet resistance as continued declines in aviation, a principle use of refined crude products, persist as the pandemic rages.
A firm calls Apple into court. The charge: Rent collecting
Maker of the popular video game Fortnite Epic Games announced yesterday that they are suing Apple for the right to sell in game products, as opposed to the app itself, without passing the standard .3 fee to Apple. The move came in response to Apple ejecting Fortnite from their platform for breach of the agreed rules. Epic maintains that Apple’s behavior is monopolistic and should be reined in. Apple’s share price was unaffected. What is of significance in the case is that it’s the first legal challenge to the monopoly pricing regime that prevails at Apple. It will require the US to consider, at least in its court of law, how far the US is willing to let the tech giants grow before clipping their wings? Epic indeed.
All stock markets fell slightly yesterday except of course for the perennially contrarian Nikkei, up by .01 yesterday. Gold continues its profit taking from the side trip to 2000 last week.
The above content is considered to be market commentary information and shall not be perceived as independent investment research or investment advice.