“Erdogan once said that democracy, for him, is a bus ride … ‘once I get to my stop, I’m getting off’ ”
Jordan’s King Abdullah recalling a conversation with the Turkish President
Tonight is Hedrellez in Turkey, celebrating spring and the day on which the Prophets al-Khidr and Elijah.
Traditionally wishes come true today and it would seem that President Erdoran’s wish for an executive Presidency has come one step closer to reality with the resignation of Prime Minister Davutoalu.
When we downgraded Turkey in last week’s Governments and Markets update, it was primarily due to negative shifts in governance as the pressure to move to a Presidential system and crack down on the Kurds increased. We weren’t sure of the timing of these events, although key factors like the HDP being effectively banned and the President needing to assert control over more elements of the government seemed certain.
Taking some cash off the table after a period of Turkish outperformance seemed sensible and we must now consider where we go from here with Turkish equities having fallen 10% this week alone.
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