Weekly Market Update - 29 May 2023

US Debt Ceiling

US President Joe Biden and House Speaker Kevin McCarthy voiced confidence that their debt-ceiling deal will pass Congress and reach the president’s desk for signature, averting a historic default. The pair sealed the deal during a 90-minute phone call late Saturday, clearing the way for a push to shepherd it through Congress. Now the leaders must must convince enough members of their respective parties that the agreement hashed out by negotiators is a better deal than the global economic consequences of default. Even if default is dodged, the deal could add to risks of a downturn in the US.

Source: Bloomberg

Turkish Presidency

Turkish President Recep Tayyip Erdogan sealed an election victory that appeared unlikely just weeks ago, raising the prospect of more friction with Western governments and more uncertainty for investors. Erdogan won 52.2% of a runoff vote on Sunday against Kemal Kilicdaroglu to take his rule well into a third decade, based on results with almost all ballots counted. The most pressing question for investors now is whether he will stick to his promise of maintaining an economic policy that’s seen an exodus of foreign money.

Source: Bloomberg

Made-In-China

A made-in-China aircraft to rival Boeing and Airbus underwent its maiden commercial flight on Sunday, almost six months after being delivered to China Eastern Airlines. Flight MU9191 carried 128 passengers from Shanghai to Beijing, marking the end of a long journey for Commercial Aircraft Corp of China — or Comac, as it is better known. The planemaker started developing the narrow-body airliner in 2008 and production began in late 2011. But it wasn’t until September 2022 that the C919 received official certification to fly. The aircraft, which has a price tag of $99 million, is currently only certified to fly within China.

Source: Bloomberg