Today, Central Bank Governor Sahap Kavcioglu will launch the Fourth Inflation Report for 2022 with a meeting and presentation. Kavcioglu will also answer questions from the press and economists at the meeting, which will be broadcast live on the bank’s website, and its official Twitter and YouTube accounts. The year-end inflation was revised by 17.6 points from 42.8% to 60.4% for 2022 in the previous inflation report.
The government is working to address exporters’ access to financing, according to Trade Minister Mehmet Mus. Mus stated at the Turkish Exporters Assembly (TIM) Extended Board of Presidents meeting that the work continues for banks to be able to provide more loan support to SMEs. The trade minister also said resources will be raised to give support to all companies that need financing through Ihracati Gelistirme Anonim Sirketi (IGE), which was established by the Turkish Exporters Assembly (TIM) and Eximbank.
The European Investment Bank (EIB), which hasn’t supported projects in Turkey since 2019 due to measures taken by the European Union (EU), will restart financial support in the country, according to Faruk Kaymakci, Deputy Foreign Minister and Director for EU Affairs, Ambassador. Speaking after the EU-Turkey High-Level Business Dialogue meeting, Kaymakci said the Turkey investment platform, which was established due to Turkey’s weight in the EU economy and is based on a guarantee from the EU, has attracted attention. While the business world mentioned problems regarding the Schengen visa, the EU side requested support for sanctions on Russia.
Maritime transportation has slowed with the recession in international trade. The ‘Grain Corridor,’ which was launched per negotiations in Turkey, has stalled in the Mediterranean and Black Seas. The number of vessels waiting in Canakkale and the Marmara Sea within the scope of the Grain Corridor has exceeded 200, according to daily DUNYA. The number of vessels waiting to pass the Bosporus Strait in Istanbul has reached 120.
Treasury and Finance Minister Nureddin Nebati called on investors to benefit from Turkey’s capabilities and geographic location at an investment conference in the Saudi capital of Riyadh. Nebati said Turkey ranks third in Europe in terms of workforce with 31 million workers. “Turkey’s growth rate reached 7.5% in the first half of this year,” the minister added. He said that Turkey has started implementing its new economic model based on investment, employment, production, and export. “Turkey has attracted investments worth USD 250bn in the last 20 years,” Nebati said, adding that the number of foreign companies in Turkey rose to 78,000 in 2022, from 5,000 in 2002.
Turkey’s benchmark stock index went up slightly by 1.35 points or 0.03%, yesterday to close at 3,976.36. During the day, the lowest value of the BIST 100 was 3,958.79, points, while its daily high was 4,015.62. The index’s total market value was around TRY 3.1tr by market close, with a daily trading volume of TRY 64.3bn. Expectations that the Federal Reserve’s ‘hawkish’ monetary policies have come to an end, continue to support equity markets despite the increasing concerns over the recession in the U.S., according to analysts. They said equity-based volatility may increase as the financial statement period has been densified as of yesterday. Analysts also stated that 3,900 points will be the support level and 4,000-4,030 points will be the resistance level for the BIST 100 index, in technical terms.
DAILY AGENDA
The Economic Confidence Index surged by 3% to from 94.3 to 97.1 in October, compared to the previous month, according to the Turkish Statistical Institute (TurkStat).
Exports increased by 9.2% to USD 22.6bn and imports climbed by 38.1% to USD 32.2bn in September, year-over-year, according to TurkStat. The foreign trade deficit jumped 268.1% from USD 2.6bn to USD 9.59bn in the same period.
Tourism revenues surged by 27.1% to USD 17.95bn in the third quarter, compared to the same period last year, according to TurkStat.
The Central Bank will release the weekly monetary and banking statistics (2.30 p.m.).
Meanwhile…
>> The Competition Authority has fined Facebook’s parent, Meta Platforms Inc, TRY 346.7m for breaking competition law, according to Reuters. The regulator said the company held a dominant position in personal social networking services and online video advertising and had obstructed competitors by merging data collected through its core services, Facebook, Instagram, and WhatsApp. A spokesperson for Meta Platforms said the company disagrees with the probe’s findings and will consider all options.
>> Sabanci Holding’s banking subsidiary Akbank’s consolidated net profit totaled TRY 38.2bn in the first nine months of the year. The bank’s total deposits and assets reached TRY 669bn and TRY 1.06tr in the same period.
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>> Something is shifting in Syria
President Recep Tayyip Erdogan’s statement that “there could be a meeting with Assad if necessary” was a sign that the Damascus regime could now become a negotiation partner under certain conditions. After this statement, mobilization in the northern part of the country, where Turkey and opposition armed forces are in control, indicates that something might be happening in Syria.
