The world this week--Business
Under its new governor, Hafize Gaye Erkan, Turkey’s central bank took steps to loosen its support for the lira and to encourage savings and lending in the currency.
This came soon after the bank made a break with its easy policy of the past few years by raising its benchmark interest rate from 8.5% to 15% (markets were expecting a bigger increase).
It said it was beginning a “monetary tightening process in order to establish the disinflation course as soon as possible”.
Official annual inflation stood at 39.6% in May, though unofficial measures are much higher.
Ms Erkan was appointed governor by Recep Tayyip Erdogan after he was re-elected president in May.
Britain signed a memorandum of understanding with the European Union on financial services.
The agreement establishes twice-yearly meetings through which the two sides will discuss co-operation on issues such as regulation, digital finance and financial crime.
Jeremy Hunt, Britain’s chancellor of the exchequer, said he was “absolutely delighted” with the deal.
An EU spokesman pointed out that the agreement does not restore Britain’s access to the EU.
It was a busy week for Mr Hunt, who persuaded British banks to give mortgage-holders who fall behind on their payments at least 12 months before repossessing their homes.
Mortgage rates have surged in line with interest rates.
Mr Hunt also told the banks to pass on higher interest to their customers by increasing savings rates.
Enticing people to save could help lower inflation.
The British government held emergency discussions on taking Thames Water into public ownership.
The company, which provides water and sewage services to London and the surrounding region, has fallen heavily into debt.
HSBC is to leave its global headquarters at London’s Canary Wharf and move to a more central location in the City, according to reports.
The decision is a big blow to the Canary Wharf business district, which competes with the City as a base for financial companies.
HSBC is searching for smaller premises because of the shift to remote working.
Once hailed as a pioneer in electric pick-up trucks, Lordstown Motors filed for bankruptcy protection.
The startup, based in a former General Motors factory in Ohio, blamed Foxconn for its woes.
Best known as the company that assembles the iPhone, Foxconn had a deal with Lordstown to help produce vehicles.
Lordstown claims Foxconn reneged on the deal.
Foxconn says it tried to resolve the dispute with Lordstown and accuses the company of making “malicious attacks”.