Category: Business

  • Turkey’s Central Bank Aims for Clarity and Achieves Confusion

    Turkey’s Central Bank Aims for Clarity and Achieves Confusion

    By EMRE PEKER

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    Which one to follow? Turkey uses a wide range of interest rates and even specialists are confused about which one to focus on. Agence France-Presse/Getty Images

    ISTANBUL–Turkey’s central bank has finally caved in. Having failed to convince critics that its “unorthodox” monetary policy can slow inflation, it opted for some transparency on the issue. The outcome? It sowed more confusion.

    At a regular policy meeting Wednesday, one day after its latest monetary policy decision, policymakers in Ankara split economists with their message. They garnered resounding praise for clarifying their stance from some, and something approaching exasperation from others.

    Economists at the gathering said officials acknowledged that annual inflation, at 7.7% in October, may be higher at the end of the year than the 6.8% forecast. Policymakers reiterated their commitment to fighting inflation, warning that consumer price increases may miss expectations by half a percentage point.

    The central bank has been tightening its policies to that end since May, effectively raising borrowing costs for banks from record lows by 3.5 percentage points to more than 7%, officials told attendees.

    But that’s not easy to see under a policy framework that governor Erdem Basci introduced in October 2011. With that, the central bank had been using the benchmark rate along with an interest-rate corridor that currently ranges from 3.5% to 7.75% to vary borrowing costs daily. Mr. Basci tries to manage a broad remit ranging from credit growth to volatile international capital flows, inflation, economic growth and currency stability by controlling the amount of cash in the financial system.

    But even true specialists have long been confused about which rate to focus on. On Wednesday, policymakers tried to answer that question, urging market participants to stop watching the central bank’s benchmark one-week repo rate and instead focus on the interbank overnight lending rate, according to economists who attended the meeting.

    That renders the 4.5% policy rate irrelevant and thrusts the interbank rate that’s currently at about 7.15% to the forefront as officials seek to anchor policy expectations. The central bankers also reaffirmed the Monetary Policy Committee’s decision on Tuesday that interbank borrowing costs will inch up to 7.75%.

    “[This is a] very clear system and eliminates the downward flexibility in the monetary policy,” Erste Securities Economist Nilufer Sezgin said in a note from the meeting. “The central bank of Turkey is tighter and more orthodox.”

    Policymakers’ expectation that Turkey’s $786 billion economy will expand by 4% this year–more than the government forecast that was revised down to 3.6% in October–is also giving Mr. Basci some wiggle room to tighten monetary policy and target inflation.

    But since the central bank’s highest interest rate is barely above current inflation levels, many economists are still puzzled about how policymakers can deliver additional tightening without raising rates in a more traditional manner. And that’s something the central bank is reluctant to do, especially with elections coming up.

    And policymakers didn’t provide any hints on what would be used as the reference rate if the central bank opts to further raise borrowing costs.

    “This meeting marks an end to the central bank of Turkey’s unorthodox policy experiment–or that is what the central bank is telling us at the meeting,” said Tim Ash, chief emerging-markets economist at Standard Bank Plc. “Again, participants here are struggling to figure out whether the new monetary policy mix is here for to stay, or we will see a new mix again further down the line. The central bank seems to be struggling to sell the move to orthodoxy.”

    via Turkey’s Central Bank Aims for Clarity and Achieves Confusion – MoneyBeat – WSJ.

  • Kate Moss lands ANOTHER spot in Vogue as she poses in Istanbul with Chiwetel Ejiofor

    Kate Moss lands ANOTHER spot in Vogue as she poses in Istanbul with Chiwetel Ejiofor

    By DAILY MAIL REPORTER

    PUBLISHED: 23:04 GMT, 18 November 2013 | UPDATED: 23:24 GMT, 18 November 2013

    Kate Moss appears in American Vogue’s newly-released December issue in a spread set in Istanbul’s lush landscape.

    The supermodel takes to the streets of Turkey’s much-visited city in an array of designer outfits, often accompanied by English actor and 12 Years a Slave star Chiwetel Ejiofor in a spread titled ‘The Silk Road.’

    In Istanbul: Kate Moss wears a dress by Proenza Schouler and a hat by Patricia Underwood in her new Vogue spread that was photographed in Turkey

    Moss looks every bit the seasoned supermodel in her newest Vogue spread.

    December issue: Jessica Chastain covers this month’s Vogue

    She and Ejiofor visit The Egyptian Bazaar and the Çinili Köşk, among other sites – creating a vivid scene for outfits by the likes of Dior, Ralph Lauren, and Proenza Schouler.

    Moss and Ejiofor even pose with whirling dervishes mid-dance and take a sail on the Bosphorus.

    Ejiofor’s film 12 Years a Slave was released last month in the United States to widespread acclaim. The film, which hits UK screens this January, also stars Brad Pitt and Steve McQueen. The movie won the People’s Choice award at the 2013 Toronto Film Festival.

    Moss also graces the cover of this month’s British Vogue – marking her 34th career Vogue cover. Inside the issue, Moss poses with friend and collaborator John Galliano, who maintains that he is attempting a fashion industry comeback.

    American Vogue’s December 2013 issue, starring Jessica Chastain on its cover, is now on newsstands.

    via Kate Moss lands ANOTHER spot in Vogue as she poses in Istanbul with Chiwetel Ejiofor | Mail Online.

  • SUPPORT TO AMERICAN INDIANS FROM TURKEY

    SUPPORT TO AMERICAN INDIANS FROM TURKEY

     

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    TIKA Awards $200,000 Grant to the Confederated Tribes of Warm Springs to Alleviate Water Needs

    November 15, 2013, Washington, D.C. – Officials from the Turkish International Cooperation and Development Agency (TIKA), representatives from Oregon’s Confederated Tribes of Warm Springs (CTWS) and tribal leaders gathered at the residence of the Turkish ambassador to the United States on Tuesday to celebrate a $200,000 grant from TIKA to CTWS. The grant was awarded after a yearlong collaboration between the Turkish Coalition of America (TCA), the National American Indian Housing Council (NAIHC), and TIKA.
    The grant, TIKA’s first-ever to an entity within the United States, will help build a water tank for an ongoing elementary school construction project that will help the people of CTWS meet their water needs for the next 10 years.  The Confederated Tribes of Warm Springs were selected after a panel of Native American judges reviewed each application to ensure the finalist would have the maximum community reach both in the short- and long-term.”This grant builds on years of growing economic and cultural ties between Turkey and Indian Country,” said G. Lincoln McCurdy, president of the Turkish Coalition of America. “We at TCA are proud to have helped deepen the important relationship between Turkey and Indian Country by facilitating this award in conjunction with NAIHC, TIKA, and the people of CTWS.”

    The event was hosted at the Turkish ambassador’s residence following the National Museum of the American Indian (NMAI) reception held in conjunction with the2013 White House Tribal Nations Conference. At the NMAI reception, TCA brought together Ambassador Tan and TIKA President Dr. Serdar Cam for brief meetings with Rep. Mark A. Takano (D-Calif.), Rep. Betty McCollum (D-Minn.), Rep. Derek Kilmer (D-Wash.), Rep. Markwayne Mullin (R-Okla.) and Steve Daines (R-Mont.).

    “Within the framework of U.S.-Turkey relations, TIKA is happy to make a contribution to the friendly people of American Indians,” stated Dr. Cam, president of TIKA.

    During the reception at his residence, Turkey’s ambassador to the United States, Namik Tan, said, “Make no mistake on our intentions, our aim is not to teach how things should be done or show off at the expense of our friends and allies. This grant is not an aid, it is a token of our solidarity with the Indian tribes and of our friendship with the US.”

    Cheryl Ann Causley, chairwoman of NAIHC stated, “ It has been an honor for NAIHC to work with TIKA. Our membership is grateful for their support of our native people and we look forward to working with them for many years.”

    Chief Joseph Moses of the Confederated Tribes of Warm Springs echoed Chairwoman Causley’s statement. “The Confederated Tribes of Warm Springs are deeply grateful to the people of the Republic of Turkey for their generosity in this grant.  The funding provided to our tribe will directly improve the health and well-being of our membership.”

  • ISTANBUL’S TUNNEL ACROSS CONTINENTS

    ISTANBUL’S TUNNEL ACROSS CONTINENTS

    POSTED BY JENNA KRAJESKI

    On October 29th, the ninetieth anniversary of the founding of the Turkish Republic, Prime Minister Recep Tayyip Erdoğan celebrated in Üsküdar, a conservative neighborhood on the Asian side of Istanbul, where the construction of a new rail tunnel beneath the Bosporus had just been completed. Part of the Marmaray Project, which will connect the European and Asian sides of the city by train for the first time, the passage is the world’s deepest underwater “immersed tube” tunnel, built by lowering prefabricated sections into a trench dug into the seafloor. “We have also rebuilt the fraternity and solidarity of the city,” Erdoğan said, when he took the stage in the late afternoon. “Marmaray is not just joining continents. We have helped cities embrace.”

    Ground broke on the tunnel in 2004, but various challenges—the discovery of the remains of a Byzantine port, concerns about earthquakes—delayed its construction. The last stages were rushed so that the grand opening would fall on Republic Day. Across Istanbul, banners announcing the tunnel were almost as ubiquitous as Turkish flags, and much more grandiose. One billboard in Üsküdar, featuring a grainy closeup of Erdoğan test-driving a train through the tunnel, with President Abdullah Gül and a few international heads of state standing behind him, read, “The Leaders of the Century, the Project of the Century: The Marmaray Opens.”

    On Tuesday morning, while riot police arrived by bus at Istanbul’s Taksim Square—where protests in May, intended to halt the redevelopment of Gezi Park, sparked months of anti-government agitations across the country—Erdoğan and Gül were in Ankara, visiting the hilltop tomb of Mustafa Kemal Atatürk, who founded the Turkish Republic nine decades ago. By midday, the scene at Üsküdar was a zoo. Crowds pushed through metal detectors, trying to claim space near the stage where Erdoğan, Gül, and visiting dignitaries from Japan (a partner in the project), Somalia, and Romania were scheduled to speak. Attendees were given white baseball caps festooned with a Marmaray logo, which looks like the double barrel of a shotgun. One elderly man, to show his excitement, stacked two hats on his head.

    Behind the crowd, giant banners of Atatürk, Gül, and Erdoğan waved in the breeze; beyond that, more people gathered on the steep Üsküdar hills. Boats anchored just off the coast sprayed plumes of water into the air and sounded their horns when the Prime Minister took the stage. “Whether they like us or not, whether they vote for us or not, they will be proud of this project,” Erdoğan said to the cheering crowd. “We have given the Republic a much stronger structure by decorating it with brotherhood, unity, solidarity, justice, equality, and democracy.”

    Urban development, including record-breaking mega-projects like Marmaray, has been a consistent focus throughout Erdoğan’s political career, first as the mayor of Istanbul and then, for the past decade, as Prime Minister. Migration to Istanbul from the rest of Turkey, and the resulting construction boom, has transformed the city over the past two decades. Erdoğan uses development statistics as evidence of his party’s success. “We have added seventeen thousand kilometres of road in eleven years,” Erdoğan said on Tuesday. “When we came into power, there were twenty-six airports, and now there are more than fifty.”

    But these development projects were at the heart of the protest movement that grew in Gezi Park, and although Gezi itself is safe for now Erdoğan shows no sign of stopping. He has plans to build the world’s largest airport on the European side of Istanbul, as well as a third bridge over the Bosporus and another tunnel, for cars, beneath it. Critics say that the construction companies are overfed and too powerful, steering rather than accommodating development. Akif Burak Atlar, the secretary general of the Istanbul branch of the Chamber of Urban Planners, sees value in the Marmaray project—“Istanbul has a huge traffic problem, especially during rush hour,” he said—but not in Erdoğan’s larger vision. “The third bridge is not a necessary transportation project,” Atlar, who is also a member of Taksim Solidarity, the group of activists at the center of Gezi, said. “It’s more of a real-estate project.”

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    These urbanization projects have deep meaning in Turkey, to critics and supporters alike; it’s no coincidence that the opening of Marmaray took place on an important anniversary of the Republic itself. Erdoğan sees the projects as evidence that he is transforming Istanbul into a world capital. Opponents see them as another sign of his authoritarian tendencies. The plans for Gezi were a prime example. “We are living these shitty lives with two salaries,” said Umud Dalgıç, a sociologist and project coördinator at the Istanbul branch of the Heinrich Boll Foundation, “and now this little park we go to on the weekend” is going to be razed. He said, “There’s no innuendo. There’s a big shopping mall being built there. It’s very literal.”

    Erdoğan’s crackdown on the protests, which left hundreds injured and six dead, was seen as indisputable evidence of his authoritarianism. Along with the brutality came a measure of foolishness—miscalculations and a failure or unwillingness to understand the desires of the population that was also visible at Tuesday’s festivities. In a city of sixteen million people, the Marmaray project provides a much-needed addition to Istanbul’s public-transportation system, and the opening ceremony was a missed opportunity for the Prime Minister to advertise its benefits; instead, he lumped it in with other, more controversial projects, and played only to his base. In doing so, he reminded his opposition of why they fought against him in Gezi Park.

    “None of these projects are executed in a transparent way,” Dalgıç said. “The public doesn’t get any information about who the contractors are or what the schedule is.” He suspects that the rush on the Marmaray project has to do with the local and presidential elections, both of which are coming up in 2014. “Zillions of these projects will be announced before the elections,” he said, “and they will say that all of them will change your life.”

    Critics worry about the safety of the tunnel, which runs parallel to a major fault line, and the lack of transparency coupled with a cynicism about Erdoğan’s priorities turns worry into paranoia. “We are very much afraid that it was sped up because the Prime Minister wanted it opened on Republic Day,” Cihan Baysal, a member of the Urban Movements group and a leading housing-rights activist, said. “Experts say that signals aren’t working, that there aren’t enough checks and controls.” When a Marmaray train stalled because of an electrical failure the day after the opening—passengers had to evacuate through the tunnel on foot—it seemed to confirm Baysal’s fears. “I am very curious about the tunnel,” she told me, “but I’m afraid to use it. I don’t trust the politicians.”

    If Erdoğan felt at all deflated by these protests against his mega-projects, the ceremony in Üsküdar may have lifted his spirits. The Romanian Prime Minister, Victor Ponta, called the tunnel an “unbelievable achievement” and lavished praise on his Turkish counterpart. “Great projects can only be done by great people and great political leaders,” he said. “Erdoğan, you will begin to be again the center of these two worlds that you connect.”

    Shinzo Abe, the Prime Minister of Japan, joked about having competed with Turkey for the 2020 Olympic Games (Tokyo won) and said how pleased he was that Erdoğan embraced him after that announcement. “We know you have difficulties right now,” he said. “Hopefully you will be prosperous forever.”

    Between speeches, a man in the crowd shouted, “Thank God that you, the grandson of the ancestors, were destined to restore their legacy!” (The “legacy” he had in mind was that of the Ottoman sultans.)

    After the ceremony, I boarded a ferry to Taksim Square. Demonstrations on Republic Day tend to veer away from the mainstream opposition and toward the ultra-nationalistic, but in the wake of Gezi the city was braced for anything. Nationalists, after all, had been present in the park as well. I wondered if the announcement of such a major development project would inspire some protests, considering the concerns of the activists I interviewed. At least a dozen buses full of riot police lined the square, but the officers were huddled near them, giving directions to tourists. Others leaned on their shields, ready to block side streets at a moment’s notice but looking like they knew that moment was unlikely to come. It never did.

    Jenna Krajeski received support for the reporting in this post from the Pulitzer Center on Crisis Reporting.

    Top photograph: Oktay Cilesiz/Anadolu Agency/Getty. Middle photograph: Ozan Kose/AFP/Getty

  • Low-Cost Airline from Turkey Pushes Prices of Competition Lower

    Low-Cost Airline from Turkey Pushes Prices of Competition Lower

    Following the addition of Sochi and Moscow to its list of routes, Turkish Low-Coster Pegasus Airlines has compelled other competitors in the market to lower their fares. This was the statement issued by Guliz Ozturk the director of Pegasus Airlines.

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    Ozturk stated that tickets that were previously sold at $400 by the Turkish and Aeroflot airlines have dropped considerably to $300 on their Istanbul-Moscow flights. According to Ozturk, these commercial airlines are trying to curtail their prices to $233, which is Pegasus’ offer on Moscow-Istanbul flights. Pegasus also offers advance tickets from $83.99.

    Since Russia’s Air Code requires that passengers are treated to free luggage transportation services and meals, Pegasus does not burden its passengers by passing this cost on to them. Instead, they place such charges on other services such as insurance, extra luggage and seat selection. Operating on a model that is inexpensive to maintain, passengers who board Pegasus airplanes with luggage weighing up to 20kg face no additional costs. Therefore, the Air Code that other competitors had cited earlier as hindrance in the market does not bother Pegasus.

    Though Pegasus faced opposition from Russian authorities regarding its new routes, the food policy did not raise any problems. It was hard to convince them to allow Pegasus to land in Moscow. And eventually when they did agree to such routes, they insisted that Pegasus had to operate only three flights weekly even though it has been commissioned to operate 7.

    Ozturk urged the Russian government to liberalize its air sector to take advantage of the growing traffic between Russia and Turkey. Talking to Moscow Times, Ozturk added that greater freedom in this sector would help the airlines involved reach greater heights. Currently there are three flights that Turkish low-cost airline operates on a weekly basis between Russia’s Domodedovo and Istanbul’s Sabiha Gokcen airports with its maiden flight taking off on October 8th. Days later, Sochi-Trabzon flight was added with ticket prices starting at $27.

    Apart from Sochi and Moscow flights, Pegasus also operates other routes. Since August 31st 2009, Istanbul and Krasnodar flights have been in operation with 252,111 passengers ferried on this route. Omsk and Istanbul flights launched back in June 2012 average a seat capacity of 63%. This is 20% lower than Krasnodar’s seat occupancy rate.

    According to Ozturk, Pegasus did not really think much of Omsk and Krasnodar cities but only used them because the authorities assigned them. Altogether, he says that the future looks bright for Pegasus Airlines mostly because their Moscow seat occupancy rate is expected to hit 93%. On its Moscow-Istanbul flights, Pegasus hopes to hit the 50,000+ passenger mark per annum.

    Daniel Burkard the Domodedovo airport manager is pleased with Pegasus flights that land at the airport. He reiterates that since more and more Russians are taking vacations in Turkey, the Turkish market is growing faster than the Russia market. With 2.5 million Russian tourists heading to Turkey, the Federal Tourism Agency has cited such growth as stemming from the visa-free regulation the two countries have.

    via Low-Cost Airline from Turkey Pushes Prices of Competition Lower | .TR.

  • Koç University Seeks Entrepreneurs

    Koç University Seeks Entrepreneurs

    The Global Social Venture Competition (GSVC) has begun, and for the 3rd year, Koç University will host an Executive Summary round of the competition as an Outreach Partner within the GSVC global network. The competition provides an opportunity for graduate students from Turkey, the Caucasus, MENA to realize their impact-driven business ideas that target local and global societal challenges. Grand Prize and other winners at the Global Finals held in April 2014 at UC Berkeley team will be awarded up to 50.000 USD.

    On October 22nd, the Info Session series for Global Social Venture Competition (GSVC) began. GSVC aims to transform creative ideas into impact-driven businesses, which combine financial sustainability with positive societal impact at their core.

    GSVC seeks to reward projects that are both financially and socially sustainable, and have the highest levels of social impact potential. The competition is open to graduate students only. The team has to have at least one graduate student to apply. The competition encourages the social entrepreneurs to build a business plan with sustainable solutions to issues common to cities, society, environment or humanity.

    During the period that cover the Info Sessions and Executive Summary workshops, consulting services will be available from the GSVC team at Koç University; there will also be matchmaking events for team members to find each other and discuss their social venture ideas. The GSVC team at Koç University will select an experienced, diverse jury to select a shortlist of teams, and from that two will advance to the Regional Finals. Following the review of applications, mentors will be assigned to those teams selected to advance to the Regional Finals held in March 2014 in London.

    The submission deadline for Executive Summaries is: January 17, 2014. Detailed and up-to-date information regarding application guidelines, info sessions, special guests and the competition schedule you can visit or facebook page:

    The Three Stages of the Competition

    GSVC is composed of three stages. The first stage involves the preparation/submission of executive summaries by entrepreneurs. The second stage is the regional finals hosted in London, and the top projects participated the regional finals will compete at global finals in Berkeley. Social venture teams are expected to present the social, financial, and environmental impacts of their projects at all stages.

    For submission condition & eligibility please visit: http://gsvc.ku.edu.tr/application

    James Halliday, International Coordinator for Strategic Advancement, [email protected], Phone: +90-2123381812

    SOURCE Koc University

    via Koç University Seeks Entrepreneurs — ISTANBUL, October 28, 2013 /PRNewswire/ –.