Turkey's Election Results: A Step Towards Autocracy?

Turkish assets fell again as President Erdogan's strong showing in the recent election raised investor expectations that he could extend his rule and unorthodox economic policies into a third decade. Banking stocks and sovereign dollar bonds slid for a second day, and the cost of insuring exposure to Turkish debt rose further. The lira set yet another record closing low, and longer-dated, dollar-denominated government bonds had the biggest falls in fixed-income markets. Credit ratings agency Fitch said the political and economic uncertainty would continue at least until after the runoff, and that its focus regarding Turkey's "B"/Negative sovereign rating after the election would be whether the policy mix "becomes more credible and consistent."