Markets weigh changing environment
Turkey held a historic referendum on Sunday to vote on constitutional amendments that will introduce an executive presidential system of government. The “yes” camp, led by the ruling AK Party, won the vote by a narrow margin of 51.4 percent, below the party’s hope for a stronger mandate of 55 percent of the vote. The switch to an executive presidency will not be immediate, occurring after the next election. Financial markets saw a short-term rally, despite obstacles for the Turkish economy. Analysts also tried to look at the outcome of referendum from the perspective of structural reforms and changed their firms’ exposure recommendations. Are there concerns about the longer term impact of the erosion of checks and balances within the political system? How would the business environment and financial markets be effected?