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Turkey Letter: 27 June 2016

Foreign Policy

  • TÜSİAD Statement on the United Kingdom’s Decision to Leave the EU
  • Israel and Turkey to Restore Full Diplomatic Ties
  • With Brexit Turkey Loses Its Biggest Champion in Europe
  • In Turkey’s tussle with the EU, Erdogan thinks he holds the cards
  • U.S. coalition says expects tough fight against IS near Turkish border
  • Turkish President Apologizes Over Downing of Russian Plane, Kremlin Says
  • Turkey okays German defence minister’s visit after uproar
  • Turkish jets strike PKK targets in northern Iraq, southeast Turkey
  • Erdogan Wants Istanbul Towers to Lose Trump Name

Economy & Energy

  • Energy Stocks Rally as End to Turkey-Israel Rift Spurs Deal Bets
  • Turkish Markets Fall on Brexit Rout While Rate-Cut Bets Unwind
  • Turkey Cuts Key Rate as Inflation Slows
  • Turkish Central Bank Signals Interest-Rate Cut Cycle Nearing End
  • Turkey ranks 20th most popular spot for FDI, rising two spots
  • Turkish consumer confidence up in June

Domestic Politics

  • Foreign capital in Turkey and the trustee law change
  • Turkey Boosts Military Powers in Fight Against Kurdish Militants
  • In Turkey’s judicial overhaul, Erdogan’s critics see payback time
  • Authorities block vote for new opposition challenger to Turkey’s Erdogan
  • Turkish police fire tear gas in Istanbul to disperse Gay Pride activists
  • Turkey arrests three prominent press-freedom campaigners

Foreign Policy

TÜSİAD Statement on the United Kingdom’s Decision to Leave the EU

A majority in the United Kingdom, which joined the European Community in 1973, has voted in a referendum to withdraw from the EU. Negotiations on separation will likely take several years and negotiators are expected to be deliberate and responsible in pursuing this process, while taking into account long term policies that maximize welfare.

TUSIAD US, TÜSİAD Statement on the United Kingdom’s Decision to Leave the EU, June 24, 2016


Israel and Turkey to Restore Full Diplomatic Ties

Israel and Turkey agreed to restore full diplomatic ties after more than six years of animosity, clearing the way for renewed cooperation between the U.S. allies and an easing of Israel’s blockade of the Hamas-ruled Gaza Strip.

Wall Street Journal, Israel and Turkey to Restore Full Diplomatic Ties, June 26, 2016


With Brexit Turkey Loses Its Biggest Champion in Europe

Turkey lost its biggest champion in the European Union as Britain voted to exit the bloc, leaving Ankara without a powerful sponsor in its moribund quest to join the EU and posing risks to the migration deal that helped curb Europe’s refugee crisis.

Wall Street Journal, With Brexit Turkey Loses Its Biggest Champion in Europe, June 24, 2016


In Turkey’s tussle with the EU, Erdogan thinks he holds the cards

Britain’s Brexit campaign and the rise of Europe’s populist right have further dented Turkish hopes of ever joining the EU, leaving President Tayyip Erdogan largely indifferent to its criticism and weakening an anchor of Turkish reform.

Reuters, In Turkey’s tussle with the EU, Erdogan thinks he holds the cards, June 22, 2016


U.S. coalition says expects tough fight against IS near Turkish border

The U.S.-led coalition fighting Islamic State in Syria and Iraq said on Wednesday it was tightening the noose around militants in the Syrian city of Manbij near the Turkish border but expected them to fight to the end to defend their stronghold.

Reuters, U.S. coalition says expects tough fight against IS near Turkish border, June 22, 2016


Turkish President Apologizes Over Downing of Russian Plane, Kremlin Says

Turkish President Recep Tayyip Erdogan apologized for downing a Russian warplane and called for the restoration of relations with Russia in a message to President Vladimir Putin, the Kremlin said Monday.

Wall Street Journal, Turkish President Apologizes Over Downing of Russian Plane, Kremlin Says, June 27, 2016


Turkey okays German defence minister’s visit after uproar

Turkey on Monday approved a visit by German Defence Minister Ursula von der Leyen to an air base in southern Turkey, reversing its position on an issue that drew angry responses in Germany and further strained tensions between the NATO allies.

Reuters, Turkey okays German defence minister’s visit after uproar, June 27, 2016


Turkish jets strike PKK targets in northern Iraq, southeast Turkey

Turkish warplanes struck Kurdish militant targets in northern Iraq and southeastern Turkey overnight on Wednesday, and authorities imposed new curfews in rural areas as the army and police continue to battle insurgents, security sources said.

Reuters, Turkish jets strike PKK targets in northern Iraq, southeast Turkey, June 22, 2016


Erdogan Wants Istanbul Towers to Lose Trump Name

Turkish President Recep Tayyip Erdogan called for Donald Trump’s name to be removed from a Turkish franchisee’s towers in Istanbul’s business district due to what Mr. Erdogan termed the presumptive Republican presidential nominee’s Islamophobia.

Wall Street Journal, Erdogan Wants Istanbul Towers to Lose Trump Name, June 25, 2016


Economy & Energy

Energy Stocks Rally as End to Turkey-Israel Rift Spurs Deal Bets

Energy-related stocks across Turkey and Israel advanced after officials said the two countries are mending diplomatic ties potentially paving the way for multi-billion dollar gas contracts.

Bloomberg, Energy Stocks Rally as End to Turkey-Israel Rift Spurs Deal Bets, June 27, 2016


Turkish Markets Fall on Brexit Rout While Rate-Cut Bets Unwind

Turkish assets slid after the U.K.’s vote to leave the European Union roiled world markets and threatened to undermine the confidence of the international investors it relies on to finance its current-account deficit.

Bloomberg, Turkish Markets Fall on Brexit Rout While Rate-Cut Bets Unwind, June 24, 2016


Turkey Cuts Key Rate as Inflation Slows

Turkish central bank continues to loosen monetary policy despite concerns U.K. referendum could weigh on the currency if Britain votes to leave EU

Wall Street Journal, Turkey Cuts Key Rate as Inflation Slows, June 21, 2016


Turkish Central Bank Signals Interest-Rate Cut Cycle Nearing End

Turkey’s cycle of interest rate cuts is nearing an end as the simpler monetary policy officials have been working toward is within reach, Abdullah Yavas, a member of the central bank’s rate-setting committee, told economists.

Bloomberg, Turkish Central Bank Signals Interest-Rate Cut Cycle Nearing End, June 22, 2016


Turkey ranks 20th most popular spot for FDI, rising two spots

Turkey became the 20th most popular destination for foreign direct investment (FDI) inflow in 2015, rising two spots from its 22nd ranking the previous year, a fresh report showed on June 21.

Hurriyet Daily News, Turkey ranks 20th most popular spot for FDI, rising two spots, June 22, 2016


Turkish consumer confidence up in June

Turkey’s consumer confidence index rose to 69.43 in June from 68.75 in May, ticking higher for the fourth straight month, data from the Turkish Statistics Institute (TÜİK) showed on June 22.

Hurriyet Daily News, Turkish consumer confidence up in June, June 22, 2016


Domestic Politics

Foreign capital in Turkey and the trustee law change

Together with the amendment to the law on the Supreme Court of Appeals submitted to parliament, the regulation on the appointment of caretakers to companies has drawn a huge reaction from the business world. Upon this reaction, the parliamentary commissions withdrew related articles, especially those concerning the Capital Market Law, thus relieving the business world. The prestigious Turkish Industry and Business Association (TÜSİAD) issued a statement saying “the regulation on the appointment of caretakers needs to be re-evaluated in terms of the significant risks it may cause, particularly in the fields of commercial life and the right to private property.”

Hurriyet Daily News, Foreign capital in Turkey and the trustee law change, June 22, 2016


Turkey Boosts Military Powers in Fight Against Kurdish Militants

Turkey’s parliament has made it harder to prosecute soldiers for alleged human rights abuses committed during counterterrorism operations, a move that strengthens the government’s hand in its fight against Kurdish insurgents.

Wall Street Journal, Turkey Boosts Military Powers in Fight Against Kurdish Militants, June 24, 2016


In Turkey’s judicial overhaul, Erdogan’s critics see payback time

Two days after calling for Turkey’s justice minister to resign on Facebook, prosecutor Menderes Arican received a letter reassigning him from a western province to a relative backwater in the east with immediate effect. The 49-year old, a prosecutor for two decades, has little doubt that his sudden self-described “exile”, seven months into a new posting, was punishment for his criticism of the government. His reassignment, part of a nationwide shake-up of thousands of judges and prosecutors, comes as the ruling AK Party pushes wider reforms within the higher judiciary.

Reuters, In Turkey’s judicial overhaul, Erdogan’s critics see payback time, June 23, 2016


Authorities block vote for new opposition challenger to Turkey’s Erdogan

A Turkish election body said on Monday it had barred opposition nationalists from holding a July 10 vote to replace their veteran leader, disrupting a process that lawmakers said could have picked a stronger challenger to President Tayyip Erdogan.

Reuters, Authorities block vote for new opposition challenger to Turkey’s Erdogan, June 27, 2016


Turkish police fire tear gas in Istanbul to disperse Gay Pride activists

Turkish police detained 19 people and fired tear gas in central Istanbul on Sunday to disperse dozens of activists attempting to gather to mark the annual Gay Pride week after authorities banned their march.

Reuters, Turkish police fire tear gas in Istanbul to disperse Gay Pride activists, June 26, 2016.


Turkey arrests three prominent press-freedom campaigners

Turkish authorities on Monday arrested three prominent campaigners for press freedom, including the local representative of Reporters Without Borders (RSF), on charges of spreading terrorist propaganda, human rights groups said.

Reuters, Turkey arrests three prominent press-freedom campaigners, June 21, 2016