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Markets are also waiting for the appointment of a new central bank governor to replace Sahap Kavcioglu, who spearheaded rate cuts under Erdogan's unorthodox policies. "I think we are seeing the impact of Simsek pushing (the Turkish central bank) for rational policy." Bankers say the lira's continued gradual depreciation will lead to improved market conditions and halt a decline in central bank reserves. But it sparked a record lira crisis in December of 2021 and sent inflation to a 24-year high above 85% last year. Erdogan is considering appointing Hafize Gaye Erkan, a senior finance executive in the United States, as central bank governor, Reuters reported on Monday.
Persons: Tayyip Erdogan, Erdogan, Mehmet Simsek, Simsek, Sahap Kavcioglu, Tim Ash, Hafize Gaye Erkan, Erkan, Paul McNamara, Huseyin Hayatsever, Jonathan Spicer, Ali Kucukgocmen, Tom Hogue, Christina Fincher Organizations: BlueBay Asset Management, Bankers, Reuters, Simsek, GAM, Thomson Locations: ANKARA, Turkish, United States, Ankara, Turkey, Jorgelina, Rosario, London
A former co-CEO of First Republic is said to be in line to be Turkey's next central bank chief. Turkey's central bank is expected to return to more orthodox policies. That's not stopping the Turkish government, which is considering Hafize Gaye Erkan, a former co-CEO of First Republic, to be the next governor of its central bank, according to reports. The bank would ultimately name the chief financial officer, Michael Roffler, to be CEO. Turkey's central bank has been a punching bag for Erdogan, who has forced out its leaders and pressured the bank to slash interest rates even in the face of surging inflation.
Persons: Hafize Gaye Erkan, Goldman Sachs, Recip Tayyip Erdogan, Erkan, Jim Herbert, Herbert, Graystone, Michael Roffler, Erdogan, Mehmet Şimşek Organizations: First, Morning, Princeton, JPMorgan Chase, Erkan, Reuters, First Republic, Financial Times, Bogazici University Locations: First Republic, Turkey's, Turkey, Republic
Markets now put the probability of a 25 basis point hike at the meeting on June 13-14 at 29.1%, down from 2-in-3 odds a week earlier. U.S. services data due later on Monday could give further clues, though analysts said core inflation data due next week was more likely to move the needle. "...the lack of other key inputs before next week's CPI [inflation data] could keep the dollar capped," currency analysts at ING said in a note. The Australian dollar fell 0.2% to $0.65905, ahead of a decision by the central bank on Tuesday on whether to raise rates that analysts said was on a knife-edge. The fall came despite the appointment of Mehmet Simsek as Turkey's finance minister, who won markets' confidence during previous stints in government between 2009 and 2018.
Persons: Christine Lagarde, Tayyip Erdogan's, Mehmet Simsek, Iain Withers, Kevin Buckland, William Maclean, Jason Neely Organizations: U.S . Federal Reserve, CPI, ING, European Central Bank, Thomson Locations: U.S, Turkish, Tokyo
Turkey inflation dips to 39.6% on relief from free gas
  + stars: | 2023-06-05 | by ( ) www.reuters.com   time to read: +3 min
ISTANBUL, June 5 (Reuters) - Turkish annual inflation fell to 39.59% in May, official data showed on Monday, broadly in line with expectations, largely due to the government offsetting price rises in other goods by providing natural gas free of charge. The government had pledged ahead of last month's elections that it would provide free gas in May, and a monthly free 25 cubic metres until May 2024. The poll had forecast that annual consumer price inflation (CPI) (TRCPIY=ECI) would be 39.2%, and was expected to end the year at 45%. Clothing and shoe prices recorded the largest monthly increase with 9.85%, followed by restaurant and hotel prices with 7.10%. The weight of natural gas in the inflation basket is 2.9%.
Persons: Tayyip Erdogan, Erdogan, Mehmet Simsek, Liam Peach, Peach, Cevdet Yilmaz, Canan Sevgili, Daren Butler, Ali Kucukgocmen, Jonathan Spicer, William Maclean Organizations: Turkish Statistical Institute, Treasury, Finance, Capital Economics, Thomson Locations: ISTANBUL
Turkey’s new economic broom has too much to tidy
  + stars: | 2023-06-05 | by ( ) www.reuters.com   time to read: +2 min
That’s unlikely to be enough to counter President Tayyip Erdogan’s long-held penchant for economic mismanagement. Simsek, who was finance minister and deputy prime minister between 2009 and 2018, would have a nearly impossible task even in normal conditions. He has to tame inflation that is running at 39.6%, bolster a currency hovering near a record low against the U.S. dollar, and restore Turkey’s credibility with international investors. But that would further weaken the lira and do little to tame inflation. Simsek needs more than investors’ respect to right Turkey’s listing ship.
Persons: Mehmet Simsek, , Tayyip Erdogan’s, Simsek, Erdogan, Francesco Guerrera, George Hay, Streisand Neto Organizations: Reuters, U.S ., Twitter, Toyota, Thomson
Morning Bid: Jobs glow, crude pops, dollar lifts
  + stars: | 2023-06-05 | by ( ) www.reuters.com   time to read: +4 min
A look at the day ahead in U.S. and global markets from Mike DolanWorld markets retained a warm afterglow from Friday's shining U.S. employment reading, with only minor gains in crude oil prices on Saudi Arabia's output cut clouding the picture. While Brent crude oil prices popped up about $1 per barrel on the Saudi output cut plans, the move was limited and year-on-year crude losses continue to clock some 35%. May U.S. service sector readings dominate the Monday diary, as does the likely start of Treasury rebuilding its depleted coffers with 3- and 6-month bill auctions. Soundings from China's service sector earlier helped partly to offset fears that dour factory readings questioned its post-COVID recovery. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
Persons: Mike Dolan, Russell, Morgan, Mehmet Simsek, Christine Lagarde, Loretta Mester, Sharon Singleton Organizations: Federal, Nasdaq, Big Tech, Apple, Brent, Treasury, Wall Street, Global, Central Bank, Cleveland Federal, Reuters, Thomson Locations: U.S, Saudi, Asia
June 5 (Reuters) - Turkey's lira slid almost 1% on Monday in thin trading during the Asian day to weaken past 21 per dollar, in a shaky initial reaction to the appointment of highly-regarded Mehmet Simsek as finance minister. The lira hit 21.1 to the dollar, not far above a record low of 21.8 made last week. Simsek, 56, won markets' confidence during terms as finance minister and deputy prime minister between 2009 and 2018. Turkey's annual consumer price inflation hit a 24-year peak beyond 85% last year, and stood at 44% in April in a sign that further monetary tightening was required, according to Elmi. "A simple return to credible economic policy could see a marked change in Turkey's investment appeal," he said.
Persons: Mehmet Simsek, Tayyip Erdogan's, Mohammed Elmi, Tom Westbrook, Shri Navaratnam, Jamie Freed Organizations: Federated Hermes, Thomson Locations: Turkey
Erkan met with Mehmet Simsek, Turkey's newly-appointed treasury and finance minister, in Ankara on Monday, one of the sources said. The two sources told Reuters she is set to meet Erdogan soon to discuss the possible role. Turkey's policy rate was cut to 8.5% from 19% in 2021, setting off a historic currency crash in late 2021. Erkan would be the country's fifth central bank chief in four years. The central bank has been the linchpin of Erdogan's programme of monetary stimulus and targeted credit to boost economic growth, exports and investments.
Persons: Erdogan, Tayyip Erdogan, Hafize Gaye Erkan, Erkan, Mehmet Simsek, Sahap Kavcioglu, Goldman Sachs, Simsek, Kathryn Wylde, Wylde, Naci Agbal, Marsh, Jonathan Spicer, Daren Butler, Angus MacSwan, Emelia Organizations: Reuters, First Republic Bank, Treasury, Ivy League, Princeton, New, First, JPMorgan, Greystone, Thomson Locations: Turkey, ANKARA, United States, Ankara, New York City, U.S
Morning Bid: Hawkish pause for thought?
  + stars: | 2023-06-05 | by ( ) www.reuters.com   time to read: +2 min
Asian equities are carrying on the global rally, setting Europe up nicely to do the same. The Fedspeak that has been such a big driver of markets in recent weeks, will go quiet in the days ahead with officials in a blackout period. There's been a slight pullback in expectations for further tightening after last week's data showed euro-area CPI cooling more than analysts predicted. Lagarde said that day that there was still "ground to cover" in the tightening cycle. The lira weakened more than 1% to 21.12 per dollar in thin Asian trading, approaching the record low of 21.80 marked last week.
Persons: Kevin Buckland, Chris Weston, Christine Lagarde, There's, Lagarde, Ignazio Visco, Brent, Tayyip Erodogan, Mehmet Simsek, Sam Holmes Organizations: Fed, Reuters Graphics Reuters, ECB, Economic, Monetary Affairs, Bank of Italy, PPI, Thomson Locations: Europe, United States, Saudi Arabia, OPEC, Germany, Switzerland, Spain, Italy, France
Turkey's President Recep Tayyip Erdogan has named former economy chief Mehmet Simsek as his new treasury and finance minister. In the unveiling of his new cabinet, Turkey's President Recep Tayyip Erdogan named former economy chief Mehmet Simsek as his new treasury and economy minister, leading to some optimism that the country will now forge a new economic path. Simsek was known for his market friendly policies, and subsequently went on to become the country's deputy prime minister from 2015 to 2018 after his stint as Turkey's finance minister. Simsek creating a new team in the key economy portfolio would imply that he will have "pretty strong control over broader economic policy," BlueBay Asset Management's Senior EM Sovereign Strategist Timothy Ash said via e-mail. "The Turkish economy has a chance of pulling back from the brink," he continued.
Persons: Recep Tayyip Erdogan, Mehmet Simsek, Simsek, Erdogan, Timothy Ash
ANKARA, June 4 (Reuters) - Turkey's newly appointed Finance Minister Mehmet Simsek said on Sunday that the country has no choice but to return to "rational ground" to ensure predictability in the economy. In a handover ceremony, Simsek said the main goal of the new government will be to increase social welfare. "Turkey has no other choice than to return to a rational ground. A rules-based, predictable Turkish economy will be the key to achieving the desired prosperity." Fiscal policies and structural reforms will support Turkey's central bank to help lowering inflation, Simsek also said.
Persons: Mehmet Simsek, Tayyip Erdogan, Simsek, Goldman Sachs, Huseyin Hayatsever, Hugh Lawson, Susan Fenton Organizations: Thomson Locations: ANKARA, Turkey
LONDON, June 4 (Reuters) - Goldman Sachs revised its Turkish lira forecast in the wake of President Tayyip Erdogan't cabinet revamp, saying it now expected the currency to weaken to 28 to the dollar in 12 months compared with a previous prediction of 22. The bank said it expected the lira to weaken to 23.00, 25.00 and 28.00 to the dollar in three, six and 12 months respectively. This compared to a previous forecast of 19.00, 21.00 and 22.00 respectively. Depending on events, the 28.00 to the dollar level could be reached in less than a year, the analysts said. Equally, a larger-than-expected rate adjustment could mean that the Lira may need to weaken by less than forecast, they added.
Persons: Goldman Sachs, Tayyip Erdogan't, Erdogan, Mehmet Simsek, Karin Strohecker, Emelia Sithole Organizations: Thomson
Turkey's longest serving leader, Erdogan garnered 52.2% support in the May 28 runoff vote. The new parliament convened on Friday and Erdogan will officially start his new term by taking his oath on Saturday at around 3 p.m. (1200 GMT) in the general assembly in Ankara. Simsek was highly regarded by investors when he served as finance minister and deputy prime minister between 2009 and 2018. Erdogan, 69, became prime minister in 2003 after his AK Party won an election in late 2002 following the worst economic crisis of Turkey since the 1970s. In his victory speech, Erdogan said inflation, which hit a 24-year peak of 85% last year before easing, was Turkey's most urgent issue.
Persons: Tayyip Erdogan, Erdogan, Jens Stoltenberg, Nicolas Maduro, Viktor Orban, Nikol Pashinyan, Mehmet Simsek, Simsek, Huseyin Hayatsever, Jonathan Spicer, Frances Kerry Organizations: NATO, Armenian, Anadolu Agency, Reuters, AK Party, Thomson Locations: ANKARA, Ankara, Hungarian, Turkey
Turkey's Erdogan appoints Mehmet Simsek as finance minister
  + stars: | 2023-06-03 | by ( ) www.reuters.com   time to read: 1 min
ISTANBUL, June 3 (Reuters) - Turkey's President Tayyip Erdogan on Saturday named former economy chief Mehmet Simsek as treasury and finance minister as he announced the cabinet for his new five-year term. Simsek was highly regarded by investors when he served as finance minister and deputy prime minister between 2009 and 2018. Reuters reported this week that Erdogan was viewed as almost certain to include Simsek in his new cabinet, either as finance minister or as a vice president responsible for the economy. His appointment could mark a departure from years of unorthodox economic policies under Erdogan, which have included sticking to low interest rates despite high inflation, and heavy state control of markets. Reporting by Ezgi Erkoyun and Huseyin Hayatsever, Editing by Angus MacSwanOur Standards: The Thomson Reuters Trust Principles.
Persons: Tayyip Erdogan, Mehmet Simsek, Simsek, Erdogan, Ezgi Erkoyun, Huseyin Hayatsever, Angus MacSwan Organizations: Saturday, Reuters, Thomson Locations: ISTANBUL
Following are descriptions of key figures in the cabinet:MEHMET SIMSEK - FINANCE MINISTERFormer economy chief Simsek has been appointed as treasury and finance minister. He was highly regarded by financial markets when he served as finance minister and deputy prime minister between 2009 and 2018. HAKAN FIDAN - FOREIGN MINISTERFidan was appointed as foreign minister, replacing Mevlut Cavusoglu, who was one of the longest serving top Turkish diplomats. ALI YERLIKAYA - INTERIOR MINISTERAli Yerlikaya was appointed as interior minister and replaced Suleyman Soylu, who kept his position since 2018. Yerlikaya, 55, served as governor of provinces of Gaziantep, Tekirdag, Agri and Sirnak before.
Persons: Tayyip Erdogan, MEHMET SIMSEK, Simsek, Merrill Lynch, HAKAN FIDAN, Fidan, Mevlut Cavusoglu, Erdogan, YASAR, Yasar Guler, Hulusi Akar, CEVDET YILMAZ, Cevdet Yilmaz, Ali Yerlikaya, Suleyman Soylu, Yerlikaya, Burcu Karakas, Huseyin Hayatsever, Jonathan Spicer Organizations: FINANCE, U.S, Embassy, National Intelligence Organisation, MIT, Turkish Army, Turkish Development and Cooperation Agency, Kurdistan Workers Party, AK, Turkish, Commission, ALI, Ece Toksabay, Thomson Locations: ANKARA, Ankara, Oslo, Syria, Iraq, Istanbul, Yerlikaya, Gaziantep, Tekirdag
Critics of the president’s economic approach were somewhat heartened by reports that Mr. Erdogan is expected this weekend to appoint Mehmet Simsek, a former finance minister and deputy prime minister, to the cabinet. Mr. Simsek is well thought of in financial circles and has previously supported a tighter monetary policy. Mr. Barkey argues that Mr. Erdogan will have no choice but to make a U-turn on policy by winter, when energy import costs rise and some debt payments are due. Others are more skeptical that Mr. Erdogan will back down from his insistence that high interest rates fuel inflation. To deal with the large external deficit and depleted central bank reserves, Mr. Erdogan has been relying on allies like Russia, Qatar and Saudi Arabia to help bolster its reserves by depositing dollars with the central bank or extending payment deadlines and discounts for imported goods like natural gas.
Persons: Mr, Erdogan, Mehmet Simsek, Simsek, , Henri Barkey, Simsek’s, Barkey, Kadri Tastan, didn’t, Organizations: Lehigh University ., German Marshall Fund, Capital Economics Locations: Turkey, Brussels, Russia, Qatar, Saudi Arabia
Simsek was highly regarded by financial markets when he served as finance minister and deputy prime minister between 2009 and 2018. After chairing a final meeting of his old cabinet on Wednesday, Erdogan will announce new ministerial roles by Saturday, officials said. The new cabinet is almost certain to include his spokesman Ibrahim Kalin and intelligence chief Hakan Fidan, they added. One of the sources, a senior official with knowledge of the subject, said Erdogan and Simsek had spoken for 2-1/2 hours. The same official said former minister Cevdet Yilmaz could take up the role of Treasury and Finance Minister if Simsek were to become a vice president.
Persons: Erdogan, Tayyip Erdogan, Mehmet Simsek, Simsek, Ibrahim Kalin, Hakan Fidan, Nureddin Nebati, Guillaume Tresca, Cevdet Yilmaz, Lutfi Elvan, Sahap Kavcioglu, Timothy Ash, Ash, Amruta Khandekar, Daren Butler, Jonathan Spicer, Toby Chopra, Catherine Evans Organizations: Intelligence, Lira, FX, Reuters, Treasury, Finance, Emerging, Generali Investments, AK, Simsek, BlueBay Asset Management, Thomson Locations: ANKARA
Lira hits record low as Turkey prepares for new cabinet
  + stars: | 2023-05-31 | by ( ) www.reuters.com   time to read: +2 min
ISTANBUL, May 31 (Reuters) - Turkey's lira tumbled on Wednesday to a fresh record low against the dollar as President Tayyip Erdogan prepared to decide the shape of his new cabinet and the direction of economic policy after an election triumph. In its third successive day of losses, the lira weakened nearly 1.5% to a record of 20.75 against the U.S. currency, taking its losses this year to nearly 10%. Investors have been concerned about the sustainability of Turkey's unorthodox economic policies as it followed a low-rate programme championed by Erdogan. A Reuters poll forecast the economy to have expanded 3.9% in the first quarter, with growth of 2.8% in 2023. Reporting by Ezgi Erkoyun; Additional reporting by Karin Strohecker; Editing by Tom Hogue and Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.
Persons: Tayyip Erdogan, Erdogan, Mehmet Simsek, Ezgi Erkoyun, Karin Strohecker, Tom Hogue, Clarence Fernandez Organizations: KNG Securities, Turkish Statistical, Reuters, Thomson Locations: ISTANBUL
People walking next to a Turkish national flag at the historical grand bazaar in Istanbul. The Turkish lira slumped to yet another all-time low Tuesday, extending its slide after the re-election of incumbent President Recep Tayyip Erdogan. The currency was last trading at 20.15 against the greenback at around 5 a.m. Tuesday morning local time, surpassing Monday's lows. Turkey's Election Board on Sunday confirmed that Erdogan won Turkey's 2023 presidential election with 52.14% of the votes, while his opponent Kemal Kilicdaroglu received 47.86%. He subsequently went on to become the country's deputy prime minister from 2015 to 2018.
Foreign investors have held talks with the government and opposition parties and public and private sector companies, one senior government official said. Erdogan has said former economic tsar Mehmet Simsek, well respected by international investors, was coordinating work on economic policies. While the UAE and Saudi Arabia were eyeing energy investments, Western investors were looking more at fintech and digital, he said. An Ankara consultancy company executive said expectations of economic policy changes were paving the way for investment. "In any case, the expectation is that Turkey will turn to more predictable and orthodox economic policies."
[1/4] Turkish President Tayyip Erdogan, accompanied by his wife Emine Erdogan, greets the audience during a meeting of his ruling AK Party to announce the party's election manifesto ahead of the May 14 elections, in Ankara, Turkey April 11, 2023. Erdogan is facing the biggest political challenge since his AK Party (AKP) came to power in 2002, with polls showing support sagging in recent years after unorthodox economic policies hobbled the lira currency and sent inflation surging. Erdogan said last week a team was working on strengthening economic policies under the coordination of former economic tsar Mehmet Simsek, who is well respected by international investors. In the presidential election next month, Erdogan will be up against the main opposition alliance candidate, Kemal Kilicdaroglu. On foreign policy, Erdogan said the AKP would continue normalizing relations in the region and aim to build an "axis of Turkey".
Separately, in a televised interview on Wednesday, Erdogan downplayed the significance of the meeting with Simsek, saying such meetings were ordinary. A senior government official told Reuters the AKP was somewhat divided with some members opposed to Simsek's return, and described the outcome of the Erdogan meeting as "undesirable". The party may now need to revise its economic platform ahead of the election campaign, he added. The AKP declined to comment on whether it was revising its economic strategy ahead of the vote. Two recent polls by MAK and Turkiye Raporu show the opposition presidential challenger Kemal Kilicdaroglu between 4 and 9 percentage points ahead of Erdogan.
ANKARA, March 16 (Reuters) - The draft election manifesto of Turkish President Tayyip Erdogan's AK Party marks a return to more orthodox, free market economic policies, four sources familiar with the matter told Reuters. According to the sources familiar with the draft, the AK's manifesto for the upcoming election will make no reference to Ankara's more recent economic policies but instead to return to his party's prior, more orthodox approach. "The approach to the economy is very similar to that of the 2002 AK Party election manifesto. He said Erdogan's final approval of the manifesto would be required and so far he had not conveyed any dissenting opinion. If he takes office, a radical change is inevitable in economic policies, the bureaucracy and cabinet members to work in harmony with him," the AKP official said.
ANKARA, March 16 (Reuters) - The draft election manifesto of Turkish President Tayyip Erdogan's AK Party marks a return to more orthodox, free market economic policies, four sources familiar with the matter told Reuters. According to the sources familiar with the draft, the AK's manifesto for the upcoming election will make no reference to Ankara's more recent economic policies but instead to return to his party's prior, more orthodox approach. "The approach to the economy is very similar to that of the 2002 AK Party election manifesto. He said Erdogan's final approval of the manifesto would be required and so far he had not conveyed any dissenting opinion. If he takes office, a radical change is inevitable in economic policies, the bureaucracy and cabinet members to work in harmony with him," the AKP official said.
Victor Sterpu a cucerit bronzul la Grand Slam-ul din Antalya
  + stars: | 2021-04-03 | by ( ) www.ipn.md   time to read: 1 min
Victor Sterpu a cucerit bronzul la Grand Slam-ul din AntalyaJudocanul Victor Sterpu a cucerit medalia de bronz la Grand Slam-ul din Antalya, care a reunit sportivi din 93 de țări, transmite IPN. El a debutat cu două victorii în categoria de greutate 73 kg, cu algerianul Fethi Nourine și mexicanul Gilberto Cardoso, dar apoi i-a cedat viitorului câștigător, italianul Fabio Basile, campion olimpic în 2016. Ajuns în recalificări, Victor, care este practic calificat la Jocurile Olimpice de la Tokyo, a obținut alte două victorii, cu belgianul Jeroen Casse și polonezul Adam Stodolski. La 81 kg, Dorin Goțonoagă l-a învins pe turcul Musa Simsek și i-a cedat rusului David Karapetyan, iar la 60 kg Nicolae Foca a pierdut în fața azerului Karamat Huseynov.
Persons: Victor Sterpu, Fabio Basile, Victor, Adam Stodolski, Dorin Goțonoagă, Musa Simsek, David Karapetyan Locations: Antalya, Tokyo
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