Important Developments in the Markets This Week

This week, 7 important developments in the markets were compiled. Here are the highlights of the week ...

1- Evaluations Regarding Bond Purchases Draw Attention in the FED Minutes

In the US Federal Reserve (FED) meeting held on April 27-28, members stated that the economy was far from the targets of the Federal Open Market Committee (FOMC). The evaluations regarding the bond purchases drew attention. Accordingly, some members anticipated that evaluations for reducing bond purchases could take place in the upcoming meetings. FED members gave the message that at some point, evaluations for reducing bond purchases should begin.

2- Gradual Normalization in Combating Coronavirus in Turkey

Within the framework of the measures to combat the coronavirus (Covid-19) epidemic, the "full lockdown" period, which started at 7 pm on Thursday, April 29 across Turkey has ended, while the "gradual normalization" period, which will be applied until 5 am on Tuesday, June 1, began.

3- Fuel Price and SCT Rates Increased

The special consumption tax rate on fuel has been re-determined. According to the new regulation, the tax rate taken over the liter price of 95 octane unleaded gasoline will be 1.33 TL. The special consumption tax of 98 octane unleaded gasoline was announced as 1.58 TL per liter. The SCT to be collected over a liter of diesel is determined as 1.29 TL, and that of LPG, which is liquefied petroleum gas, is 0,81 TL. Presidential Decree on the subject was published in the Official Gazette. Energy, Petrol, Gas Supply Stations Employers' Union announced on its Twitter account that there has been a valid increase in fuel consumption as of May 20 due to the SCT increase. According to EPGIS, a price increase of 0,55 TL per liter was made for gasoline, 0,67 TL for diesel and 0,35 TL for LPG, reflected in pump prices.

4- Support to Tradesmen Announced

The Presidential decision was published to provide a one-time grant of 3 thousand TL and 5 thousand TL to tradesmen, craftsmen and real person merchants within the scope of combating the epidemic. According to the decision in the Official Gazette, 3 thousand TL and 5 thousand TL grant support will be provided to tradesmen and craftsmen who are taxpayers of income tax and real person merchants for two separate groups to be determined by the Ministry of Commerce. The support budget will be covered by the budget of the Ministry of Commerce. Trade Minister Mehmet Muş stated that tradesmen and craftsmen and real person merchants who have established tax obligations before this date will benefit from the grant support, including on May 17, 2021. Support applications can be made within 1 month as of May 25, 2021 via e-government.

5- Budget Deficit in April

The central government budget, which gave a surplus with the transfer from the Central Bank in March, gave a deficit in April. According to the data published by the Ministry of Treasury and Finance, the budget deficit was recorded as 16.9 billion TL in April.

6- BioNTech-Pfizer Will Provide Turkey with Additional Vaccine

BioNTech-Pfizer announced that an agreement was signed with the Turkish Ministry of Health to provide an additional 60 million doses of vaccine to Turkey. In the statement, it was said that there is an option for an additional 30 million doses within the agreement. The deal will increase BioNTech-Pfizer's Covid-19 vaccine supply to Turkey up to 120 million doses, all delivered by 2021. BioNTech CEO Uğur Şahin said, "We are grateful that we have made an important contribution to Turkey's vaccination efforts."

7- China's Statements Hit Bitcoin Hard

According to Bloomberg's report, the Financial Stability and Development Committee of the Chinese State Council repeated its call for restrictions on Bitcoin transactions and mining. The committee expressed that China is determined to avoid financial risks. The statement followed the Committee's meeting, chaired by Chinese Deputy Prime Minister Liu He. Immediately after the announcement, Bitcoin's daily depreciation saw 6 percent.