Turkey rolling back FX-protected deposits / Wildfires in Canada / Nissan recalling over 236,000 cars

Also, a sky map crafted by ancient Greek astronomer Hipparchus was unearthed in Egypt

Inside Daily Brief

For August 20, 2023

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🗞️ Today's issue features Turkey's central bank rolling back FX-protected deposits, a dive into the wildfires in Canada, Nissan recalling over 236,000 cars, and more.

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Turkey's central bank is rolling back a scheme protecting lira deposits from FX depreciation, signaling a move toward more orthodox policies. The bank has lifted targets for conversions of foreign-exchange deposits to the lira-protection scheme, KKM. It is encouraging the transition of KKM accounts into regular lira accounts.

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The KKM scheme was introduced in late 2021 to counter the lira's historic plunge, influenced by President Tayyip Erdogan's unorthodox interest rate cuts amidst rising inflation.
- KKM accounts have grown to approximately $117B, or 3.1T lire, about a quarter of total bank deposits.
The lira has depreciated by roughly 68% over the past two years.
The central bank covered KKM depreciation costs of 300B lire ($11B) in June and July, with this month's charges estimated at 350B lire.
- The lira remained stable over the past month, closing last week at 27.02 to the dollar, its lowest ever.
After Erdogan's re-election in May, there was a policy shift, including 900 basis points in rate hikes and a commitment to abandon several previous regulations to address inflation and the trade deficit.

What the numbers say: By July 2023, forest fires consumed approximately 11.5 million hectares (about 44,401 square miles) in Canada, marking the most significant yearly land devastation from wildfires on record, with around 4,600 fires reported from January to July of this year.

Relevance: Currently, around 30,000 households in British Columbia are evacuating due to nearly 400 active wildfires. The Canadian Interagency Forest Fire Centre (CIFFC) reports that the country is experiencing its most severe wildfire season, with over 1,000 fires nationwide.

Impact: Amidst global record-breaking heat exacerbated by climate change and existing droughts, Canada's wildfire season has become particularly severe this year. The country has witnessed hundreds of wildfires, burning an area twice as large as any past season, roughly the size of Alabama.

Nissan is recalling over 236,000 small cars in the U.S. due to potential tie rod failures in the front suspension. The tie rods can bend, increasing the likelihood of breaking and severing the connection between the steering wheel and the front wheels.

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The recall explicitly targets Sentra compact cars from 2020 through 2022.
Symptoms of a bent tie rod include an off-center steering wheel or a vibration in the steering system.
A redesigned part will be available soon, and both the left and right rods will be replaced free of charge.
Once parts are ready, notification letters to owners will start being mailed from Oct. 5, with a second letter.
Interestingly, many of these vehicles were recalled in 2021 for the same issue. Vehicles fixed under the prior recall will need to get the redesigned part.

Zoom Out:

In June 2022, Nissan Motor Co recalled more than 300,000 SUVs in the U.S. over an issue in which the hood could suddenly open, increasing the risk of a crash.

A map of the night sky crafted by ancient Greek astronomer Hipparchus was unearthed at St. Catherine Monastery in Egypt. This artifact, concealed beneath Christian texts, is believed to be a segment of Hipparchus's long-sought star catalog, the earliest known effort to chart the entire sky.

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The discovery was described as "rare" and "remarkable" by James Evans, an astronomy historian at the University of Puget Sound.
- This extract was recently published in the Journal for the History of Astronomy.
The manuscript confirms Hipparchus' role in mapping the heavens centuries before other documented attempts.
This find marks a pivotal moment in science's inception, highlighting the shift from mere sky pattern descriptions to precise measurements and predictions.
The folios contain astronomical data, including coordinates for the constellation Corona Borealis.
Using the phenomenon of Earth's precession, researchers dated the observations to approximately 129 BC, aligning with Hipparchus's active period.

Zoom Out:

Hipparchus, the founder of trigonometry, is renowned for discovering the precession of the equinoxes.

Otto Sonnenholzner, a candidate in Ecuador's presidential election, experienced a shooting near his breakfast venue, highlighting the country's escalating gang violence. The incident wasn't targeted at him, and he wasn't struck or injured, but it underscores the dangerous environment in Ecuador, especially with the recent surge in gang attacks.

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A video on social media captured the former vice president interacting with supporters before the shooting caused panic.
- Local reporters indicated a nearby robbery might have triggered the incident.
The murder of Fernando Villavicencio in Quito marked a turning point, with no other candidate being directly targeted since.
Cities like Guayaquil are particularly affected, with drug traffickers exerting significant influence.
Bulletproof vests are becoming common in campaigns, and many events have been toned down due to safety concerns.
- The focus of many campaigns has shifted to peace and security, reflecting the primary concerns of Ecuadorians.
After the event, Mr. Sonnenholzner demanded an investigation, emphasizing the untenable state of affairs.

Zoom Out:

In 2020, the U.S. Bureau of Counterterrorism expressed concerns over the increasing gang violence in the region, impacting stability and trade.
Drug trafficking remains a significant challenge for many Latin American countries, leading to heightened violence and instability.

Ukraine is keen on acquiring Swedish Gripen warplanes to modernize its air force and gain an edge against Russia. President Volodymyr Zelensky of Ukraine confirmed progress during his recent visit to Sweden.

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The talks come as the Netherlands and Denmark said they would send U.S.-made F-16 jets to Ukraine.
Ukraine's push for Gripen warplanes is a strategic move to strengthen Ukraine's air capabilities.
The modernization of Ukraine's air force is crucial in its ongoing conflict with Russia.
- Ukraine's F-16 fighter jet deliveries won't happen until next year.
A preliminary agreement was announced between Sweden and Ukraine regarding the production, repair, and training of Sweden's CV90 infantry fighting vehicle.
Sweden has provided approximately $2.4B in aid to Ukraine during the war, which includes CV90s, Leopard tanks, Archer artillery systems, and mine-clearing equipment.

Zoom Out:

Last week, Swedish bearings maker SKF said its factory in Lutsk, Ukraine, was hit by a missile overnight, killing three employees.

QUICK HITS:

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China's dominance in solar investments has propelled global renewable funding to an all-time high, with the U.S. boosting solar spending as wind projects face challenges.
Suspected North Korean hackers have targeted a joint U.S.-South Korea military exercise this week, though classified information has not been compromised.
Tropical Storm Hilary has lost its hurricane status but will still hit Southern California on Sunday, unleashing floods, winds, and heavy downpours as first responders brace for water rescues. Significant rain ahead of the main storm has already begun as far north as the Owens Valley.
Spain won its first Women's World Cup, beating England in a 1-0 thriller.
Russia confirmed that its Luna 25 spacecraft has crashed into the moon. The country's first lunar probe since 1976 was attempting to enter a pre-landing orbit.
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