Category: Business

Turkey must adopt euro if accepted as EU member

Turkey must accept the euro as its national currency if it joins the European Union, European Commissioner Stefan Füle says. PM Erdoğan said in October Turkey might establish a lira zone

A secene from European Commissioner for Enlargement and European Neighbourhood Policy Stefan Fule’s speaking during a news conference in Brussels last year. Füle says Turkey will adopt the euro as its national currency after joining the European Union. EPA photo

A secene from European Commissioner for Enlargement and European Neighbourhood Policy Stefan Fule’s speaking during a news conference in Brussels last year. Füle says Turkey will adopt the euro as its national currency after joining the European Union. EPA photo

Turkey will adopt the euro as its national currency if it becomes a member of the European Union after fulfilling the required conditions, European Commissioner Stefan Füle said Feb. 11.

Füle’s comments came in the wake of a written question from EU Parliament member Mario Borgezio following Turkish Prime Minister Recep Tayyip Erdoğan’s recent statement that Turkey planned to create a Turkish Lira-based monetary zone instead of accepting the euro as a national currency after joining the European Union.

Füle, the European commissioner for Enlargement and European Neighborhood Policy, noted in his answer Turkey’s obligation to accept the euro as part of the negotiations framework.

“After the EU Council approves the membership of Turkey [subject to its fulfilling the required conditions], Turkey will join the economic and monetary union and adopt the euro as its national currency,” he said.

British example

Füle also said the EU Council had never invited Turkey to present its own position in terms of economy and monetary policy negotiations – a chapter that has not yet been opened.

Erdoğan said some EU members had advised Turkey to stay out of the eurozone and establish a “Turkish Lira zone” instead amid the continuing accession talks.

“Securing political stability in Europe is critically important to maintain the confidence of European societies in the union and the euro,” Erdoğan said in October in Germany.

“I know that there are some EU member countries which say, ‘I am against the euro, I do not want to take part in the eurozone.’ For instance Britain… It is quite satisfied. They even say ‘You should stay away from the eurozone, you can establish a Turkish Lira zone.’ And I said I think the same way, too. The EU should check up on itself regarding the monetary system,” he said.

February/13/2013

via ECONOMICS – Turkey must adopt euro if accepted as EU member.

February 14, 2013
CEO Tim Cook Confirms First Store In Turkey Amidst Big International Retail Push

Toward the end of Apple CEO Tim Cook’s keynote appearance today at the Goldman Sachs Technology and Internet Conference, he dedicated a good-sized monologue to the state of Apple’s retail operation, where he confirmed a new store in Turkey and more international growth; he noted that stores have become so important in their communities that you can’t really call them stores anymore; and (joked?) that walking into one is akin to taking a Prozac.

Apple retail stores, he said, have gone beyond being sales hubs. A store “acts as a gathering place, which has an important role in the community” for youth groups, musicians and more. “I’m not even sure if ‘store’ is the right word any more,” he said. “They have taken on a much bigger role. They are the face of Apple. People don’t think about the Cupertino headquarters; they think of the Apple store.”

This is a message that’s important for Cook to get across, considering that last quarter, Q1 2013, the stores saw only an incremental increase in revenue per store compared to a year ago — $1.25 million per week compared to $1.22 million in Q1 2012. Overall, the stores pulled in $6.44 billion for the quarter. Cook noted that the average Apple store last year made over $50 million in revenue.

The message also comes on the same day that Apple lost out to Amazon as the most reputable brand in the U.S., according to a Harris poll out today. Part of the criteria polled included consumers’ perception of trust at the companies. Amazon, of course, is an online brand, while Apple offers a retail experience both online and offline.

Cook also noted that in the last quarter, the stores have seen some 120 million people pass through them, “almost 10 million people per week.” So many, in fact, that about 20 of Apple’s stores are being closed down and enlarged. “This is like the issue around cash. [Apple has $137 billion at the moment and is being pressured by shareholders to give up some more of it.] It’s a privilege to have this kind of issue.”

Cook noted that Apple will add 30 stores, “disproportionately outside the U.S.” In addition to adding “lots more” stores in China, he also confirmed that Apple will open its first store in Turkey this year. Apple had been hiring in both Rio de Janeiro and Istanbul but had only confirmed the Brazilian retail operation. “We still have a long way to go,” Cook said of the company’s plans to add more countries to its list. “We’ll never be in every one of them.”

Again, going back to the marketing role that the stores play for Apple (and again taking focus away from hard sales), he emphasized how important they are for launching new products. “One of the things that’s not understood that well about the stores is that I don’t think we would have been nearly as successful in the iPad as an example if it weren’t for our stores,” said Cook. He noted that people’s view of the tablet, prior to the iPad, “ingrained in their minds [was] a heavy thing that no one wanted.”

“I don’t think it would have been nearly as successful without stores welcoming people at [a rate of] 10 million a week” to try them out… It gives Apple an incredible competitive advantage.”

Because of that, “We’re going to continue to invest like crazy in them.”

His waxing lyrical on the stores took a slightly surreal turn towards the end. “I don’t have very many bad days,” he said, “but if I ever feel like I’m dropping down from an excited level, I go into a store. It’s like a Prozac or something!”

[Image: Flickr]

Tags: Tim Cook, apple

via CEO Tim Cook Confirms First Store In Turkey Amidst Big International Retail Push | TechCrunch.

February 14, 2013
Turkey wants more Russian gas

Photo: EPA

Russia and Turkey are ready to begin talks about an increase in Russian export gas supplies. For the time being, under discussion are additional 3 billion cubic metres of gas annually. However, experts are sure that the consumption of fuel in Turkey as well as the demand for Russian gas will grow in the country in the coming few years.

Turkey has limited reserves of natural gas. Today Turkey is spending billions of dollars on prospecting for new gas deposits in the south-east of the country and in the Black Sea. 17 new oil and gas deposits have already been discovered. Some experts say that there are big reserves of shale hydrocarbons in Turkey. In any case, Turkey can effectively handle only the natural gas it imports. In compliance with the Russian-Turkish contract, the Russian gas giant Gazprom supplies nearly 26 billion cubic metres of gas to Turkey annually. In the future Turkey would like to receive from 29 to 30 cubic metres of gas per year. Gas consumption in the country is growing. Russian fuel is transported to Turkey through the Western Corridor and the Blue Stream gas pipelines. If Turkey wants, their capacity could be increased, Head of the Analytical Research Department at the URALSIB Company Alexander Golovtsov says.

“Turkey’s population is growing. Therefore, gas consumption in the country will grow too. Hence, unless the global situation with Iran is settled and torrential gas flows start coming from it to Turkey, the demand for Russian gas will grow, and with the existing growth rates another 5 years will be needed to fill the Blue Stream gas pipeline with gas.”

Russia is not the only supplier of natural gas to Turkey, the partner of the consulting RusEnergy Company Mikhail Krutikhin says.

“Another stage of the gas project leading to Azerbaijan will be launched by 2018, and the volume of the pumped Azeri gas to Turkey will increase as well. Besides, Turkey plans to receive gas from Iraqi Kurdistan, in addition to the liquefied natural gas (LNG). Although Russia is Turkey’s very important partner, it is not its only partner.”

Thus, Turkey is trying to receive the maximum benefit from its geographic position – between the countries involved in gas extraction. Besides, Turkey holds a monopoly on the transit of natural gas because it has established its control over the Black Sea’s outlet to the Mediterranean Sea, Mikhail Krutikhin said.

“Turkey does not let large gas carriers to enter the Black Sea. Thus, the capacity of the Bosporus Strait and the Dardanelles hamper Ukraine’s plans to build a terminal for the import of liquefied natural gas.”

In fact, Russia and Turkey have similar views regarding gas issues. Russia’s Gazprom is seeking to diversify its export flows and to sell its gas to various countries. The Turkish market, which is more dynamic than the European market, remains more attractive. And as regards Turkey, it is trying to develop its own system of gas import, buying gas from numerous buyers – a little at a time, aiming to become dependent on nobody. But even with the existing arrangement, Russian gas pipelines remain the most effective mechanism.

via Turkey wants more Russian gas: Voice of Russia.

February 14, 2013
German DIY chain Praktiker withdraws from Turkey

Feb 11 (Reuters) – German do-it-yourself chain Praktiker AG is closing its stores in Turkey and withdrawing from the country after failing to sell the nine stores its operates there.

The company, which is battling to return to profit, said on Monday its Turkish subsidiary filed for managed insolvency proceedings with an Istanbul court earlier in the day.

“We cannot afford a persistent loss-maker like Turkey. We made intensive efforts to sell our Turkish subsidiary but could not reach an agreement that was economically acceptable for us,” Praktiker Chief Executive Armin Burger said in a statement.

He said the company should manage to improve profitability in all other countries in which it runs stores by adjusting structures and processes and by further curbing costs. (Reporting by Maria Sheahan; Editing by David Holmes)

via German DIY chain Praktiker withdraws from Turkey | Reuters.

February 14, 2013
QFC, Turkey have best Islamic finance-friendly tax systems

DOHA: The Qatar Financial Centre (QFC) and Turkey have the most Islamic Finance-friendly tax systems out of eight countries in the Mena region.

The Phase-1 of a study, sponsored by QFC in partnership with the Washington DC-based International Tax and Investment Center,showed that while simpler Islamic finance transactions can be carried out in some countries without prohibitive tax costs, of the countries reviewed only Turkey and the QFC have a tax system that enables sukuk transactions to be carried out without excessive tax costs.

The study, conducted by three leading experts, Mohammed Amin, Salah Gueydi and Hafiz Choudhury, examined two alternative approaches a country can take to update its tax system to support Islamic finance transactions, and concludes by recommending the one that is adopted in Malaysia as being quicker and simpler to implement for Muslim majority countries.

The study reviewed the tax treatment of four common Islamic finance structures, commodity murabaha, sukuk, salaam and istisna in eight Mena region countries: Egypt, Jordan, Kuwait, Libya, Oman, Qatar, Saudi Arabia, Turkey, and also in the QFC.

The detailed research work was led by Mohammed Amin who is an experienced Islamic finance consultant and was previously UK Head of Islamic Finance at PricewaterhouseCoopers LLP, with the collaboration of Salah Gueydi, Senior Tax Advisor, Ministry of Economy & Finance, Qatar and Hafiz Choudhury, Tax Administration and Policy Advisor, International Tax and Investment Center. Ernst & Young’s Qatar office coordinated the distribution of questionnaires to Ernst & Young’s offices in the MENA region for completion and review by country tax authorities while PricewaterhouseCoopers Malaysia completed a questionnaire for Malaysia to provide a comparison from outside the MENA region. The United Kingdom provided a second non-MENA comparison, based upon Mohammed Amin’s knowledge as a UK tax advisor.

The report is the first of a series. The team intends to extend the work in future studies to cover, for example, the impact of consumption taxes such as Value Added Tax on Islamic finance transactions, the cross border treatment of Islamic finance transactions within international double tax treaty arrangements designed primarily with conventional finance in mind, the Zakat treatment of Islamic finance transactions and the Shariah governance framework for Islamic finance. Other countries in the Mena region may also be reviewed in subsequent reports.

Ian Anderson, Chief Finance and Tax Officer at the QFC Authority, commented: “The QFC Authority welcomes the findings and recommendations of this pioneering study into the tax treatment of cross-border Islamic finance transactions within the Mena region. Islamic finance is of growing importance within the Mena region, but the taxation systems of almost all Mena countries were developed in an environment of conventional finance. This too often means that Islamic finance suffers an additional and therefore unfair tax burden not borne by conventional finance. This report points out the best way forward to help level the playing field in the Mena region and potentially beyond. We are delighted to have sponsored this research, the first of its kind, and support the development of Islamic Finance worldwide.”

The Peninsula

via QFC, Turkey have best Islamic finance-friendly tax systems.

February 14, 2013
GE Increases Output of Wind Turbines in Turkey

Zorlu Enerji Group has selected GE’s WindBOOST service technology to enhance the output of 31 GE 2.5MW wind turbines at the Gokcedag Wind Farm in Turkey. The increased power supply will help meet Turkey’s growing demand for energy from cleaner, renewable resources.

GE recently installed its WindBOOST control software at the Gokcedag Wind Farm, located in the city of Osmaniye in the eastern Mediterranean region of Turkey. GE expects WindBOOST to increase the wind farm’s annual energy production up to 4%. WindBOOST is an ideal product for growing regions such as Turkey where increased development is creating energy demand in short time periods. GE made the announcement today at the EWEA trade conference in Vienna, Austria. Rotor Elektrik Uretim A.S., a subsidiary of Zorlu Enerji, owns the Gokcedag Wind Farm.

WindBOOST makes it possible for GE 2.5 wind turbines to increase their power curve to 2.75MW. Depending on wind speed and other site atmospheric conditions, the WindBOOST control automatically activates to increase the energy produced by each unit. Alternatively, WindBOOST can be turned on and off remotely, providing flexibility to ramp up power production.

“By upgrading GE 2.5MW wind turbines with WindBOOST software, Zorlu Enerji gets the benefit of increased energy production without additional equipment. The 31 wind turbines now operate at the same power curve as 2.75MW units, which is maximizing Zorlu Enerji’s return on investment,” says Andy Holt, general manager of wind services for GE’s renewable energy business. “Turkey has a target of reaching 20GW of renewable energy in 2023, and we are proud to help the region meet this goal.”

WindBOOST is one of many software and controls technologies in GE’s suite of wind service offerings that increase annual energy production. GE is harnessing the power of the “Industrial Internet” and using software and analytics to make its machines smarter and more efficient. WindBOOST is one of many services technologies providing between 2% to 4% additional power to GE wind turbine owners. If only 1% more power were produced from GE’s fleet of more than 20,000 turbines, there would be more than 875GW hours of power on the grid.

via GE Increases Output of Wind Turbines in Turkey – TES – Today’s Energy Solutions.

February 14, 2013