Cyprus-Forum.com

[Maximus]

Poorview, I am profiting out of it.

The stock index is getting ready for another break to the downside to trade at new lows, soon.

Things are not looking good for Turkeys economy from my perspective the general view is very bearish/negative/pessimistic.

[Viewpoint]

OK lets go along with what you want to happen Turkey explodes and disappears, what will you get out of it? what is it you want....you people seem to get off on churning out doom and gloom about Turkey...are you aware of how crazy you all sound?

[Maximus]

OK lets go along with what you want to happen Turkey explodes and disappears, what will you get out of it? what is it you want....you people seem to get off on churning out doom and gloom about Turkey...are you aware of how crazy you all sound?

Tell these Turkish politicians buddy, it is they who are destroying Turkeys economy. Not that I think it will make a difference because they really are crazy.

[kimon07]

OK lets go along with what you want to happen Turkey explodes and disappears, what will you get out of it?

Well.... If the mama white elephant disappears. What will happen to the baby white elephants? The lions will eat them. Unless.....they they come back home. To the RoC, that is.

[Viewpoint]

OK we will deal with that if Turkey disappears, that OK? but you have been claiming this for years and Turkey is still around so that proves how stupid you really are and anything you claim is just fantasy and speculation.

[Demonax]

Latest news from the markets...

Turkey raises rates to stop lira’s slide amid EM turmoil

By Daniel Dombey in Istanbul

Turkey responded to the pressure on emerging markets with a surprise 50 basis point interest rate rise to prop up the lira, in spite of domestic political resistance to tighter monetary policy.

The country’s central bank on Tuesday decided to raise the overnight lending rate a day after the lira hit a record low against the euro amid a rout that saw many other leading emerging market currencies fall.

Most analysts surveyed before the decision had expected the bank not to raise rates, a hot political topic in Turkey.

Prime minister Recep Tayyip Erdogan has made clear his aversion to high interest rates by repeatedly denouncing an ill-defined “interest rate lobby”, an alleged conspiracy to hold back the country’s growth through tighter monetary policy. He has also blamed the “interest rate lobby” for orchestrating the protests that rocked Turkey in June.

“The hike in Turkish interest rates merely underlines how vulnerable the economy is to the recent slowdown in capital inflows,” said William Jackson of Capital Economics, a London-based consultancy. He highlighted the switch from $9bn in inflows into Turkish stocks and bonds for the first five months of the year, to $3bn in outflows from the start of June to August 9.

Because of limited foreign direct investment, portfolio funds underwrite about 80 per cent of Turkey’s substantial current account deficit, which requires financing of about $5bn a month in portfolio inflows.

But after years in which quantitative easing in the US and elsewhere pushed capital to Turkey and many other fast growing economies in a search for higher returns, higher yields on US Treasuries and the prospect of Federal Reserve tapering have put increasing pressure on emerging market currencies.

Ankara is particularly sensitive to foreign exchange movements, because in addition to the country running a current account deficit of about $55bn a year, the Turkish public and private sector have between them $163bn in external debt due in the next 12 months.

http://www.ft.com/cms/s/0/60b551a8-0989 ... z2cXdHVqBy

[Demonax]

Really not looking good for the Turkish economy. If only they had some gas...

In recent months, the Turkish lira has lost 4.5 percent of its value against the dollar. Adding to this, protests have hit Istanbul’s main public square over an unpopular building sponsored by a developer with close political and cultural ties to the prime minister, Recep Tayyip Erdogan.

Goldman Sachs is forecasting a dollar-lira rate of 2.2, representing a 15 percent mini-devaluation from the current level of 1.95. “The Turkish economic miracle was built on liquidity and a massive appreciation of the Turkish lira,” said Atilla Yesilada, an economist at Global Source partners in Istanbul, who has lived through Turkey’s previous financial crashes in 1994 and 2001.

http://www.nytimes.com/2013/08/21/busin ... wdown.html?

[bill cobbett]

Yep... there's no running away from the markets...

Erdogan can blame the "interest rate lobby" (we can read that as meaning a Jewish Conspiracy) as much as he wants.

Turkish lira hits record lows despite central bank support

http://www.hurriyetdailynews.com/turkis ... sCatID=346

[Kikapu]

Volvo ends contract to build trucks in Turkey


21 August 2013 /TODAY'S ZAMAN WITH WIRES, İSTANBUL
Turkish automaker Karsan said on Tuesday that its contract to build Renault Trucks in Turkey will not be renewed after the current six-year deal expires in November.
Volvo, which owns Renault Trucks, announced on Tuesday it had terminated a contract for local assembly in Turkey and that the new range of Renault trucks will be manufactured in France. Volvo said that termination would have a negative impact on the group's operating income in the third quarter of 2013. The company said the move will “generate a positive long-term effect of better utilization of the existing truck plants, thus aligning and contributing to the group truck strategy of improved industrial performance and competitiveness.” In 2007, Volvo's Renault Trucks unit and Turkey's Karsan agreed to cooperate on the production of trucks for Turkey and neighboring countries.

Karsan started producing the trucks on behalf of Renault Trucks at its plant in Bursa in 2009. The models that were produced by Karsan include Renault Premium Route, Premium Lander and Renault Kerax. Karsan's plant has the capacity to produce about 5,000 vehicles a year on behalf of Renault Trucks.

http://www.todayszaman.com/news-324134- ... urkey.html

[Demonax]

UPDATE Turkish lira hits record low on capital outflow fears

ISTANBUL, Aug 21 (Reuters) - Turkey's lira hit its weakest ever on Wednesday and stocks tumbled to a 10-month low as investors feared the central bank would struggle to stem capital outflows in the face of an expected stimulus pullback from the U.S. Fed.

The lira fell to 1.9740 to the dollar by 1518 GMT, while the main share index tumbled 3.5 percent to its lowest close since October 2012, underperforming a 0.9 percent drop by emerging markets peers

Emerging markets assets saw a broad sell-off as investors bet minutes of the U.S. Federal Reserve's latest policy meeting, due to be released 2 p.m. (1800 GMT), will solidify expectations of a tapering in its massive bond-buying programme next month.

Turkey is particularly vulnerable, being heavily dependent on foreign inflows to finance its gaping current account deficit, running at over 7 percent of national output.

"The days of investing in anything with an emerging markets handle, and a bit of carry, are kind of gone for the time being ... Bottom-up country analysis is back. Avoid countries with deficits," said Standard Bank economist Timothy Ash.

http://www.reuters.com/article/2013/08/ ... OC20130821