President Putin and North Korean leader Kim Jong Un strengthened their relationship this week, but we doubt the discussions will yield any meaningful benefits for Russia's economy or materially boost Russia's military capabilities. Elsewhere, current account figures released this week for July suggest that external vulnerabilities have continued to reduce in Poland, Czechia and Hungary, while deficits remain at worryingly large levels in Romania and Turkey. Next week, Turkey’s investor roadshow takes shape in the US as policymakers seek to drum up Western interest and attract foreign capital. Another large interest rate hike by the central bank on Thursday (we expect a 500bp hike) would help to support investor optimism.
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