Turkish Press Digest - Oct 30, 2022

The Central Bank of the Republic of Turkey (CBRT) raised its year-end inflation forecast to 65.2% in the last inflation report of the year. In the previous report, the CBRT's year-end expectation was 60.4% – BloombergHT

According to the results of the Türk-İş Survey in October 2022, food inflation increased by 2.48% monthly, and 134.77% annually, breaking a record. [Türk-İş surveys measure the food inflation in Ankara and the basket tries to track the food consumption of a family of 4. – GC] - Dünya

Turkey experienced a historic day yesterday, the 99th anniversary of the Republic. The campus in Gemlik, where the domestic car Togg will be produced, was opened and the first electric car was unloaded. Erdoğan announced that pre-orders for the Togg will begin in February. Regarding the price of the car, "The price of Togg will also be announced in February when the pre-sale will start." he said – Hürriyet

With the revision made to tourism revenues, a drastic downward revision will take place in Turkey's current account deficit. This will automatically lead to a narrowing of the net error omission item –  BloombergHT

According to the foreign trade data of the Turkish Statistical Institute for September, the foreign trade deficit increased by 268.1% compared to the same month of the previous year, from $2.6 billion to $9.6 billion. Exports increased by 9.2% to $22.6 billion in September, while imports increased by 38.1% to $32.2 billion [almost entirely due to the energy price shocks. – GC] – Dünya

According to TUIK data, the seasonally adjusted confidence index increased by 0.9% in the services sector, 3.0% in the retail trade sector, and 2.8% in the construction sector in October compared to the previous month – BloombergHT

Foreign tourist arrivals to Turkey increased by 55.8% in September – BloombergHT

Culture and Tourism Minister Ersoy: Our year-end target is 50 million tourists, and 44 billion dollars revenue [This is roughly on par with the 2019 numbers in terms of the number of tourists, and above in revenue – GC] – BloombergHT

Turkey's natural gas imports decreased by 7.62% in August compared to the same month of the previous year and became approximately 3 billion 852 million cubic meters. [Demand seems to have been subdued in September and October as well, according to the EXIST data. – GC] – Dünya

The decision of corporations to be tax-exempt in converting their foreign currency into TRY accounts will also be valid for their 9-month balance sheets – Dünya

The used car market shrank by 20% in September compared to the same period of 2021 – BloombergHT

Publishing the summary of the Monetary Policy Committee meeting on October 20, in which the policy rate was lowered by 150 basis points above expectations, the CBRT stated that the recently-widened gap between policy rate-credit rates narrowed with the contribution of announced macroprudential measures – BloombergHT

Regarding the presidential candidacy debates, CHP Deputy Chairman Veli Ağbaba said, "Our organization and our party's candidate is Kemal Kılıçdaroğlu, but we say at every opportunity that we respect the will of the 6-table." [CHP is the main opposition, and 6-table is the alliance of 6 parties that is expected to nominate a single candidate in the presidential election next year, and they have yet to do so. – GC] – Dünya

İbrahim Erden, President of the Turkish Wind Energy Association, said that they expect a new field supply for wind and solar energy, which can be completed within 2 years. He also noted that they are waiting for legislation in the field of energy storage in Turkey – Dünya

According to the data of the Turkish White Goods Manufacturers Association (TÜRKBESD), white goods exports in 6 main product groups in the 9 months of 2022 were in line with the same period of the previous year, while domestic sales decreased by 5% – Anadolu Agency

Turkey's crude steel production decreased by 19.4% annually in September to 2.7 million tons – BloombergHT

Erdemir (EREGL) announced its third-quarter financial results. Erdemir's profitability declined significantly in that quarter. The company's EBITDA per ton decreased from 413 USD/ton in 3Q2021 to 124 USD/ton in 3Q2022 (it was 329 USD/ton in the second quarter) - BloombergHT

Tofaş (TOASO) announced its third-quarter financial results. The company achieved a net profit of 2.06 billion TRY in the third quarter of 2022, above the market expectation of 1.83 billion TRY, with the support of deferred tax income – BloombergHT

TAV Airports (TAVHL) achieved a net profit of 1 billion 574 million TRY in the third quarter of 2022, exceeding market expectations – BloombergHT

Türk Traktör (TTRAK) achieved a net profit of 652.7 million TRY in the third quarter of 2022, above the market expectation of 550 million TRY. Thus, the 9-month net profit of the company increased by 94% annually – BloombergHT

Akbank (AKBNK) achieved a net profit of 17.07 billion TRY in the third quarter of 2022, above the market expectation of 16.7 billion TRY - BloombergHT

Akbank (AKBNK) secured a $404 million syndicated loan from international markets. It amounted to $225 million and €177.5 million ($179 million) with SOFR +%4.25 and EURIBOR +%4 respectively. The roll-over ratio became 60%. Last year, Akbank secured a $460 million and €206.8 million syndication loan with Libor +2.15% and Euribor +1.75% respectively - BloombergHT