Emerson Beatty, IMF, Gulf discussed on Biz 1190 Overnight featuring Bloomberg Radio

Automatic TRANSCRIPT

Dollars cheaper should be a billion dollars cheaper dean expect, them to reopen negotiations have a discussion around prices Tell you said yesterday and they, were addressed with Emerson in particular with their spokespeople but unfortunately they did, not come up, with, anything that they can disclose, on this. In particular so Emerson be d- hadn't gone any specific deal with the Turkish but up to this moment who do not have anything clear on that but unless they it's it's a lock box mechanism tongues, action so, unless we get a clear idea on what price they actually booked. For that transaction will not be, able to disclose anything further Let's get on, the Emirates. NBD acquisition of Denizbank archives capital had of research Yup mar things the deal may be in jeopardy he spoke to us on Tuesday Currency. Blew out the more than fifty. Percents since down of the deal And that, will trigger an immaterial to exchange clause standard these kinds of SPA agreements And if you, look at the Turkish banks, trading at fifty. Percent below book without an adjustment medieval probably paying by one point two, ties book so I think there's there's good, reason to reduce the price, substantially terms which may be an accessible to, expire Bank and I think even Emerson but he could walk away, from a deal even worth paying ten percent potential, penalty that is on, this deal. You lose two hundred million dollars on that potentially which. Is worth paying I think Yup you've been. Following emerging markets very closely over many many years in the Gulf is this part of the wider, coverage that you have when you look at. Dollar LeRoy at the moment in the six spot eighty five to seven, range against the dollar it's been stable for, twelve to fourteen hours we, mentioned early on in the show is this, is this really the floor is this comes out and says I've, been vindicated it stabilized on its own without an, IMF deal without the. Central Bangkok No I think it has to slide to. Has the potential to become a full blown. Financial crisis without substantial rate hikes in the tune of a thousand basis points potentially and disillusion of the political, despite US so. More needs to be done otherwise it's it's food for a short sellers Yeah let let's see whether they do have the, chutzpah to, come. Out with what Argentina did regain, some credibility I. Wanna talk about to, the MSNBC's story because I think that your fresh note is, fascinating and again, the increase. Was part, of that story you. Admit pain that if renegotiate renegotiate smartly that has consequences for the capital requirements Emerson Beatty yes so? Original deal is three point two billion, dollars so in my view they should, at least we do surprise a book two point seven zero point. Seven seriously I fell so. Not fifty percents so did the total outlay will be half. Of the, original amount, so they can actually absorb it what are the caps increase that is if they, want to do this goes this has all the potential to become a full blown financial crisis and it could very well this has the potential to become a full blown financial crisis I mean it's it's. It's pretty obvious that when you. Look, at the external debt of Turkey which Was fifty three percent of GDP is gonna probably end. Up closer, percent, or, GDP so it could be a downward spiral very quickly if if you, don't You don't have an experienced economical team on boards central Bank accounts act free as I mean I think. There's a big risk Up next is Saudi Arabia, up by how Dr Musk's privatization This is been back Seize the chance to acquaint yourself with, Germany's first female Chancellor Angela Merkel a...

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