Turkey Financial News

Posted by meb at July 17th, 2008

Russian billionaire Roman Abramovich, especially famous for his ownership of British Premier League soccer club Chelsea, is planning to order a second yacht from Turkey, after being impressed by the technology and craftsmanship of his first one.

Ada Marine Group Executive Board President Murat Bilican recalled that the Russian tycoon had initially purchased an ABY 36 Oyster model luxury yacht, which was constructed at İstanbul’s Tuzla shipyards last year and delivered to Abramovich in December. The construction had taken nine months, a fairly quick turnover time for yachts of this class. “The first yacht is currently anchored at Chelsea harbor in London,” Bilican noted. The first yacht, which cost YTL 780,000, has a composite hull made of bulletproof carbon fiber. All the necessary technology for communication was also installed in the yacht, allowing its owners to contact any location in the world. (more…)

Posted by meb at July 9th, 2008

The monthly Industrial Production Index increased by 2.4 percent in May of 2008 compared to the same month of 2007, according to figures released by the Turkish Statistical Institute (TURKSTAT) on Tuesday.

The 2.4 percent of year-on-year growth revealed a sharp decrease compared to the 6.3 percent growth recorded in April.

Analysts expect the slower growth trend to continue for the remainder of the year amid a general economic slowdown, but do not expect the data to change expectations of imminent interest rate hikes.

A Reuters poll of 14 economists had given a median forecast of 2.55 percent for industrial output growth, with forecasts ranging from 0.3 percent to 5 percent growth.

“More than half of this growth was thanks to the 20.7 percent year-on-year increase in automotive output which followed strong export performance in the sector,” Reuters quoted JP Morgan economist Yarkin Cebeci.

“The slowdown in growth is in line with our view that following the strong performance in the first quarter economic activity should lose speed in the remainder of the year,” he said.

I expect full-year gross domestic product growth of 3.8 percent and the central bank will raise interest rates by 50 basis points at its monthly meeting next week, Cebeci also said.

In the sub sectors level of industry, the mining sector index increased by 2.6 percent, the manufacturing industry sector index increased 1.9 percent, and the electricity, gas and water index rose 6.6 percent in May, 2008 compared with same month of the previous year.

The five-month average for 2008 saw the total industry sector index rise by 5.8 percent, the mining sector by 6.4 percent, the manufacturing industry sector increase by 5.4 percent, while the electricity, gas and water sector increased by 8.6 percent compared to the previous year.

The highest rates of change in the Manufacture Industry Production Index for May 2008 compared to May 2007 were realized in the manufacture of motor vehicles, trailers and semi-trailers with 20.7 percent, and the manufacture of electrical machinery at by 12.4 percent, and the manufacture of paper and paper products at 11.9 percent.

Economists had expected May industrial output data to show a sharp slowdown in growth due to global credit problems and domestic political uncertainty. Interest rate increases have also put the brakes on economic growth.
source: Hurriyet Daily

Posted by meb at June 28th, 2008

The purchase was the latest in a string of foreign acquisitions in Turkey’s fast-growing and fragmented insurance sector.

Guven Sigorta has a 2.4 percent share of the Turkish non-life insurance market, ranking it 13th, while Guven Hayat has 1.2 percent of the life insurance market, ranking it 15th.

Unlisted Groupama is one of France’s top insurers and competes domestically with listed rivals AXA and CNP. (more…)

Posted by meb at June 10th, 2008

The Turkish Statistics Institute (TurkStat) yesterday released data that indicated monthly industrial production in April had increased as a whole by 6.3 percent compared to last year’s figures.

The institute attributed the increase to vehicle, trailer and semi-trailer manufacturing, accounting for 54.4 percent of the index, also noting that Coca-Cola, refined petroleum products and tobacco products accounted for 15.6 percent.

According to the Monthly Industrial Production Index (with the base year 1997 = 100), composed from the production information of 2005, “important industry items” according to ISIC Rev.3, reached 149.4, increasing by 6.3 percent in April of 2008. (more…)

Posted by meb at May 19th, 2008

Alternative investment demand that emerged after the U.S. dollar lost value has caused a surge in raw material prices, resulting in extreme increases in the costs of giant steel companies.

The rising costs of investment in industrial commodities such as steel, copper and zinc have led pioneering industrialists to give up their projects worldwide, and are also about to affect several sectors in Turkey. (more…)

Posted by meb at April 23rd, 2008

The expected social security reform is likely to boost private savings for retirement in Turkey, the managing director of AvivaSA told reporters in Istanbul yesterday. “The reform and the increase of retirement age to 65 from the current 58 years will make people plan their future more,” Meral Egemen said.

The private pension system in Turkey consists of 10 firms and 1.54 million scheme members at present. The system had a total asset volume of YTL 4.92 million (2.35 billion euros) in mid-April. Currently, 75 percent of all contracts are individual pension plans and 25 percent group plans. (more…)

Posted by meb at April 16th, 2008

Bosch, one of the world’s leading firms operating in automotive, industrial and building technologies as well as consumer goods aims for further expansion in the Turkish market. The company announced its 2007 results and 2008 expectations in Istanbul yesterday.

“Last year was a year of records for Bosch in Turkey,” said Hermann Butz, CEO of Bosch Sanayi&Ticaret. “Bosch Group Turkey’s average growth rate was 17 percent within the last five years. We aim to continue our performance by growing 15 percent this year.” (more…)

Posted by meb at April 15th, 2008

Global warming has caused increased concern over the saving of water, leading to a period of fast development in the armature sector. The growth of the sector in Turkey, where annual armature sales amount to 2.7 million, has reached 110 million euros ($173 million). Armatures  have begun to be seen as decorations in the house and have led to water savings worth $5 billion.

Mostly pioneered by ECA and Artema, the armature sector is, however, threatened by cheap products from Far Eastern countries. Experts say that these armatures, bought because of their cheap prices, may lead to serious problems in consumers’ health. (more…)