Page 6 - TURKRptJun19

are aggravated, especially given the volatility in the Turkish economy and currency,” Edward Parker of Fitch Ratings told Reuters on May 7.
The IMF that the Turkish economy will contract by 2.5% this year. The EBRD sees its economy contract by 1%.
Consumer sentiment index nosedived 14% m/m in May. Vehicle sales sank 56% y/y in April. White goods market contracted 12% y/y.
The first-quarter net income of 300 Turkish companies listed on the Istanbul stock exchange declined by 21% y/y. Turkcell’s profit jumped to TRY1.22bn in the quarter from TRY501mn. Higher aviation fuel prices and other costs caused Turkish Airlines’ Q1 loss to more than double to Turkish lira (TRY) 1.25bn ($206mn).
The US Congress is determined to prevent Erdogan’s S-400 missile systems from Russia and threat of sanctions is hanging over the head of Turkish economy. However, Turkey stopped importing Iranian oil. Then there is the intimacy between Erdogan’s son-in-law and Trump’s son-in- law Jared Kushner, who is expected to announce the Deal of the Century. The Erdogan administration is, meanwhile, holding talks with the Syrian Kurds via Trump’s Syria envoy James Jeffrey. Erdogan’s only real misbehaviour is his insistence with a purchase and deployment of Russia’s S-400s, due to arrive in July if not sooner. Then there is his stubbornness in not giving up on loose monetary and fiscal policies, which so rattle the markets. But Trump is not big on Nato, so might find a convenient arrangement with his Turkish counterpart when it comes to the Russian missiles, and, as for the global markets establishment fretting over Erdogan refusing to fall in line with orthodox neoliberal economics, Trump will go his own way, he won’t be at their beck and call telling the Turkey’s strongman to get his house in order.
Lira firms around 1% after Turkish defence minister says Russian missiles may not arrive in June.
Turkey mired in ‘death of democracy’ outrage—but global lenders are unfazed. Spring season syndicated loan renewals concluded successfully albeit with lower roll-over rations and higher costs.
Bids for Turkish national lottery operating rights expected in June: wealth fund head.
Some of the owners of the joint venture that operates Istanbul’s giant new airport have hired Lazard to sell their stake in the $11bn flight hub. Vinci SA, Aeroports de Paris and its Turkish unit TAV Havaliamanlari Holding, and Ferrovial SA are among interested parties.
Italy’s Astaldi has relaunched talks to sell its 33.35% stake in Turkey’s Third Bosphorus Bridge.
US-based Lincoln Electric Holdings has entered into an agreement to purchase an additional 49.6% stake in Turkey’s Askaynak.
Anadolu considers McDonald’s operator options.
Teklas Kaucuk, a supplier of components to carmakers such as General Motors and BMW, has been put up for sale in a deal that could value the company at as much as €700mn.
6 TURKEY Country Report June 2019 www.intellinews.com