Search

 

Cablegate: Turkey's Economy March 5 Cob

This record is a partial extract of the original cable. The full text of the original cable is not available.

UNCLAS ANKARA 001421

SIPDIS


SENSITIVE


STATE FOR E, P, EUR/SE AND EB
TREASURY FOR U/S TAYLOR AND OASIA - MILLS
NSC FOR QUANRUD AND BRYZA


E.O. 12958: N/A
TAGS: ECON PREL TU
SUBJECT: TURKEY'S ECONOMY MARCH 5 COB

REF: ANKARA 1406


Sensitive but unclassified, and not for internet
distribution.


Market - Rally Continuing
-------------------------


1. (U) All Turkish markets continued to strengthen in
afternoon trading on March 5, with expectations of the
rallies continuing into March 6.


-- The lira appreciated over 2 percent, to close at TL
1,609,000. According to several market participants (Yapi
Kredi Treasurer Imece, JP Morgan/Chase Treasurer Gumisdis),
Turks switching their lira back into dollars was the main
cause of the lira movement.


-- The benchmark lira-denominated T-bill (March 3, 2004
maturity) strengthened 4.5 percentage points to 58 percent
compounded, with trades at tomorrow settlement lower still at
56.5 percent compounded.


-- The Istanbul Stock Exchange 100 index closed up 2 percent
on the day, in moderate trading volume of TL 486 trillion
(about $300 million).


Comment
-------


2. (SBU) Both Turkish banks and London-based investment
banks tell us their investors are relying on a second
parliamentary resolution, which they see as unlocking a very
generous U.S. package. These investors see confirmation of
this scenario in the AK Chairman Erdogan and TGS Chief of
Staff Ozkok statements (reftel). There is an additional
element motivating Turkish investors, per the bankers who
serve them: Turks are already invested, want to be
optimistic to protect their own investments, and are likely
to stay in. Some foreign hedge funds are likely to sell on
the good news of the U.S. package's approval, should that
happen.
PEARSON

© Scoop Media

 
 
 
World Headlines

 



Save The Children: Ukraine: 21 Children Killed Or Injured In Horrific Week Of Violence

At least 21 children have been killed or injured in just a week in an uptick of violence across Ukraine, Save the Children said today... More>>


UN: Visionary ‘Blue Transformation’ Strategy To Enhance Underwater Food Systems

Record levels of fisheries and aquaculture production are making a critical contribution to global food security, the UN Ocean Conference under way in Lisbon, Portugal, heard on Wednesday...
More>>
Abu Akleh Shooting: Fatal Shot Came From Israeli Forces, Says OHCHR
Israeli forces were behind the fatal shooting of Al Jazeera journalist Shireen Abu Akleh in the West Bank - not indiscriminate Palestinian firing - the UN human rights office, OHCHR, alleged on Friday... More>>



UN Ocean Conference: Opens With Call For Urgent Action To Tackle Ocean Emergency
With climate change, biodiversity loss and pollution exacting a devastating toll on the world’s ocean — critical to food security, economic growth and the environment... More>>

World Vision: Deeply Concerned For Thousands Affected By Afghanistan Quake
World Vision is deeply concerned about the deteriorating humanitarian situation in Afghanistan in the wake of a powerful earthquake in the early hours of this morning... More>>



Malaysia: UN Experts Welcome Announcement To Abolish Mandatory Death Penalty

UN human rights experts* today commended an announcement made by the Malaysian government that it will abolish the country’s mandatory death penalty and encouraged Parliament to take concrete steps to pass the agreement into law... More>>