ARCA Defense ranked fifth among all Turkish enterprises in the ISO 500 export listings with $2.9 billion in overseas sales, representing nearly half of the $6.7 billion total posted by the 11 defense firms included in the Istanbul Chamber of Industry survey. The ammunition producer placed 12th in net sales from production with approximately $2.5 billion, having secured the export champion title last year while maintaining its focus on fulfilling Turkish Armed Forces requirements.

Major contractors secure top 30 berths

Turkish Aerospace Industries ranked 14th in general exports with over $1 billion in sales while leading the defense sector in net production sales at $3 billion, according to the report. Land vehicle manufacturer Otokar placed 17th with $891.5 million in overseas deliveries, followed by missile producer Roketsan at 22nd with $733.5 million and electronics giant Aselsan in 29th position with $492 million.

Mid-tier firms complete rankings

Mid-tier defense specialists also featured prominently, with Alp Aviation placing 124th with $187.6 million in parts exports and Nurol Makina ranking 139th with $171.7 million in military vehicle sales. Weapons systems manufacturer Samsun Yurt Savunma Sanayii ranked 192nd with $123.8 million, while state-controlled MKE placed 243rd with $85.5 million, software firm Havelsan ranked 258th with $78.8 million, and BMC Otomotiv placed 290th with $58.8 million.

Sector resilience across ecosystem

The export performance demonstrated the sector's resilience across a broad industrial ecosystem ranging from prime contractors to land vehicle makers. The results reinforce Türkiye's growing influence in global defense markets alongside expanding domestic production capacity.

Environmental and economic impact

Environment Agency President Nurullah Ozturk told Anadolu that the project is a strategic transformation involving environmental, technological, industrial, and economic dimensions. He said the system is among the world’s most comprehensive digital deposit-return programs. A pilot program in Sakarya has expanded to 72 provinces and recovered more than 38 million containers. Türkiye consumes about 25 billion single-use beverage containers annually. The agency estimates the system could reduce greenhouse gas emissions by 37,000 tons annually, save 1.3 billion kilowatt-hours of energy, and prevent the use of 3.6 million barrels of oil. Increased recycling rates are expected to reduce raw material imports by 35–40%.

Participation and infrastructure

Currently, 1,148 reverse vending machines have been installed across the country, with six domestic manufacturers producing the equipment. The program includes participation from hotels, restaurants, and cafes, with 853 businesses registered and 304 manual return points operating. Twenty-three operators have been authorized to manage collection, transportation, and verification processes. For Türkiye, which imports significant quantities of raw materials for packaging, the system supports both environmental sustainability and the circular economy. Turkish officials have also noted that the system could serve as a model for other countries in the region.

Debt offering raises questions

The selloff was triggered in part by SpaceX’s announcement of a senior unsecured notes offering to raise capital and refinance debt, despite the company holding $100.8 billion in cash as of June 19. Proceeds from the offering will be used to help repay a $20 billion bridge loan taken on to refinance debt accumulated by Elon Musk’s AI company, xAI. Investors were surprised by the move, questioning why the company would borrow when sitting on such a substantial cash pile.

AI strategy and market context

SpaceX also signed a major computing power agreement with open-source AI startup Reflection, providing access to Musk’s Colossus infrastructure. However, concerns over aggressive AI-related capital spending and stretched valuations have weighed on the stock. The decline is part of a broader market sell-off, with technology stocks under pressure as investors assess rising rate expectations. Despite the losses, SpaceX shares remain above their $135 IPO price, and Musk’s net worth—while significantly reduced—still exceeds $1 trillion.

Commission structure concerns

The developers said in an open letter published Monday on the WeChat blog of signatory Tian Junwei that Apple failed to fulfill commitments to offer the lowest commission rates in China despite generating significant revenue from the country's large developer base. They argued that Apple's exclusive control over iOS app distribution allows it to impose "unfair and excessively high" costs, effectively limiting competition and squeezing local creators.

Global regulatory scrutiny

Apple's App Store typically charges commissions of up to 30 percent on digital purchases, though reduced rates for small businesses apply in certain markets. The company faces mounting regulatory pressure worldwide as authorities across the European Union, the United States and Asia examine whether its policies unfairly restrict competition.

The complaint was published Monday on the WeChat blog of developer Tian Junwei, according to the daily. Neither Apple nor China's market regulator immediately commented on the filing when reached by the outlet.

Samsung Electronics has generated more than $1 billion in revenue from its sixth-generation high bandwidth memory chips just four months after launching mass production in February, according to industry sources cited by Yonhap. The South Korean technology giant became the first company worldwide to begin shipments of HBM4 products earlier this year, positioning itself at the forefront of the rapidly expanding high bandwidth memory sector.

Industry observers expect the company's HBM4 revenue to reach $1.2 billion by the end of June, reflecting sharply accelerating demand for advanced memory solutions in artificial intelligence infrastructure. Samsung has significantly scaled shipments since the February launch, reinforcing its competitive standing against rivals in the critical semiconductor market.

AI accelerator integration

The HBM4 chips serve as a critical component for next-generation artificial intelligence systems, enabling higher bandwidth and faster data processing for complex computing workloads. Samsung designed the new memory specifically for advanced AI accelerators, including Nvidia's forthcoming Vera Rubin platform, which is expected to power future generative AI applications. While fifth-generation HBM3E products currently dominate the global market, industry analysts anticipate HBM4 will emerge as a primary growth driver as AI chip demand continues to surge.

2026 sales outlook

Samsung is projected to sharply increase HBM4 shipments during the second half of this year, with annual sales forecast to exceed $10 billion in 2026 — the product's first full year on the market. Sources told Yonhap that such a revenue figure would be unprecedented for a newly launched memory product in its initial year of mass production. The global HBM market is estimated to reach $54.6 billion this year, representing a 58% increase from 2024 levels.

President Recep Tayyip Erdoğan on Saturday marked a historic milestone for Türkiye's defense industry by delivering the offshore patrol vessel CAm. Roman to the Romanian Naval Forces Command at a ceremony in Istanbul, underscoring the first-ever warship export by Ankara to a NATO and European Union member state. Romanian President Nicusor Dan attended the commissioning event at the Istanbul Naval Shipyard Command, where the two leaders also oversaw the induction of the Turkish Navy's TCG Kochisar. Erdoğan noted that both vessels were constructed by the same engineering teams and would contribute to the security of both nations, the Black Sea, and the NATO alliance.

Defense industry achievements

Erdoğan said the world is undergoing profound transformation since the Cold War, warning that "we are in the middle of an extremely chaotic period where those who are not strong on the ground cannot find a place at the table and may even find themselves on the menu." He added that Türkiye recognized the spirit of this new era early and interpreted it accurately, with the country's defense industry becoming the driving force behind its vision despite facing sanctions and embargoes over 23 years. The president stated that Türkiye now ranks as the world's 11th-largest defense exporter and recorded $996 million in defense and aerospace exports last month, having delivered more than 140 naval platforms worldwide while currently constructing over 50 warships with over 80% domestic content — including more than 15 destined for allied nations — with project values totaling approximately $28 billion.

Strategic partnership

Erdoğan described Ankara-Bucharest relations as being at their strongest level, recalling that bilateral ties were elevated to a strategic partnership in 2011 and institutionalized through the High-Level Strategic Cooperation Council established in 2024. "With the sales agreement we signed with Romania, Türkiye exports a warship to a NATO and EU member country for the first time in its history," he said, describing the vessel as the clearest manifestation of two allied countries jointly building Black Sea security. The combat management system, search and fire-control radars, sonar systems, and close-in weapon systems aboard the platform were developed by Turkish defense companies including ASELSAN, ROKETSAN, and HAVELSAN, with Erdoğan also highlighting ongoing trilateral cooperation among Türkiye, Romania, and Bulgaria in countering naval mines.

Peace through strength

Erdoğan emphasized that Türkiye's objective is to strengthen peace and stability rather than create tensions, stating that Ankara is not seeking crises or confrontation with anyone but would never allow threats to its sovereignty or national interests. The two presidents concluded the ceremony by presenting flags and commissioning certificates to the ship commanders after inspecting the honor guard.

Transit confirmed

Speaking on the social media platform X, Takaichi confirmed that three Japanese crew members were aboard the vessel. "On June 19, one Japanese-related vessel that had been detained in the Persian Gulf successfully passed through the Strait of Hormuz, exited the Persian Gulf, and is now sailing toward Japan," she said, providing the first official confirmation of the transit.

The Japan News reported that a Saudi Arabia-flagged crude oil tanker bound for Kiire in Kagoshima City resumed transmitting its location Thursday in the Gulf of Oman after its signals had gone dark in mid-April, indicating it had cleared the strait. The Tenzan, a crude oil tanker operated by a Japanese company, also entered the waterway Thursday night after waiting off the United Arab Emirates coast, with government officials confirming some Japanese nationals were aboard.

Diplomatic efforts

Chief Cabinet Secretary Minoru Kihara said at a press conference Friday morning that Tokyo would persist in diplomatic efforts to secure safe passage for all remaining vessels. "We will continue to make every diplomatic effort to ensure that all vessels pass through the Strait of Hormuz as soon as possible," he said, stressing the urgency of the situation.

According to Japan's Land, Infrastructure, Transport and Tourism Ministry, 38 Japan-related vessels remained in the Persian Gulf as of Thursday carrying approximately 900 people, down from 39 reported earlier in the month after another vessel exited on May 14.

Energy security

The Strait of Hormuz serves as one of the world's most vital oil and gas transit routes, with Japan sourcing more than 90 percent of its crude oil imports from the Middle East prior to the crisis. Another Japan-related vessel had exited the Gulf on May 14, while a separate vessel carrying three Japanese crew members transited the strait on April 29, according to previous Foreign Ministry reports.

Asset composition shifts

Reserve assets increased by $14.7 billion to reach $165.5 billion during the month, while direct investments abroad rose 0.8% month-on-month to $79.3 billion. Portfolio investments in equities and investment fund shares surged 19.3% to $51.7 billion, though foreign currency and deposit assets held by banks fell 9.6% to $47.6 billion and other investments declined 2.8% to $151 billion.

Liability expansion continues

Total liabilities increased 4.1% month-on-month to $808.3 billion, outpacing asset growth and pushing Türkiye's net international investment position to minus $402.3 billion. Direct investment liabilities rose 6.2% to $247.1 billion, while portfolio investment liabilities climbed 8.3% to $154.1 billion and other investment liabilities increased 1.5% to $407.1 billion, according to the central bank data.

Fed raises rate outlook

The Federal Reserve kept its benchmark interest rate unchanged earlier this week but signaled a more aggressive stance by lifting its year-end federal funds rate projection to 3.8% from 3.4%, according to its policy statement. Fed Chair Kevin Warsh said inflation remained well above the bank's 2% target and stressed the central bank's determination to restore price stability, citing data that showed the Consumer Price Index rose 0.5% month-on-month and 4.2% year-on-year in May — the strongest annual increase since April 2023. Following these developments, money markets began pricing in an 89% probability that policymakers will raise rates by 25 basis points at the September meeting.

Middle East tensions flare

The tentative peace atmosphere in the Middle East came under strain after Israel targeted Lebanon and Iran withdrew from negotiations, undermining diplomatic efforts to secure a lasting ceasefire. The escalation bolstered demand for the dollar as investors sought refuge from uncertainty, with the index climbing to 101.12 during the session.

Major currencies retreat

The euro fell to 1.1418 against the dollar, its lowest level since March 16, before stabilizing around 1.1460 during the session. Sterling dropped to 1.3163, its weakest since March 31, though it later recovered to 1.3229 — up 0.2% from its previous close. The dollar-yen pair, which tested 161.81 on Thursday for the first time since July 10, 2024, traded at 161.29 — down 0.1% on the day.

Four decades of frozen rates

The toll remained fixed at $0.80 per net ton for 39 years until October 2022, when a presidential decision raised it to $4.08. Subsequent annual adjustments brought the rate to $4.42 in 2023, $5.07 in 2024, and $5.83 in 2025. "This year, we are also making an adjustment, and as of July 1, 2026, we are revising the transit fee charged from international vessels passing through the straits to $6.70," Uraloglu said.

Revenue surge for Treasury

The latest revision applies to vessels passing without stopping at Turkish ports and covers charges for health inspection, lighthouse, and salvage services. Transit revenue jumped from $38 million between July 2021 and June 2022 to $223 million in the 2024-2025 period, with officials forecasting $254 million for the coming fiscal year. "The rise in revenue and the price updates show the contribution to the economy," Uraloglu said, adding that the increase aims to strengthen foreign currency inflows and expand public revenue.

Türkiye’s Trade Minister Ömer Bolat on Friday said Türkiye and Germany have discussed deepening economic cooperation across trade, energy and digital sectors during the sixth meeting of the Joint Economic and Trade Commission in Ankara, stressing the strategic value of their integrated supply chains for European competitiveness.

Bolat hosted German Federal Minister for Economic Affairs and Energy Katherina Reiche for the JETCO session, with negotiations covering industrial collaboration, green transformation, transportation connectivity and potential cooperation in third markets. The ministers also addressed updates to the Türkiye-EU Customs Union and measures to ease visa procedures for business travelers, Bolat noted on social media platform NSosyal.

Strategic trade partnership

Both sides affirmed that their economic partnership — which generates over $52 billion in annual bilateral trade — remains crucial for the resilience of global supply chains and Europe’s industrial competitiveness. Berlin stands as Ankara’s largest trading partner, Bolat said, adding that the meeting reaffirmed their will to elevate the longstanding partnership to meet new era demands.

Ahead of Reiche’s arrival, Germany’s Economy and Energy Ministry indicated the discussions would center on the bilateral economic and energy partnership through JETCO and the Energy Forum.

Turcorn 100 program

Speaking during a visit to the pavilion, Kacir said 14 of the 26 participating startups are part of the Turcorn 100 program, which supports Turkish tech companies with the potential to achieve valuations exceeding $1 billion. “We are at the VivaTech technology summit in France. This is a platform where technology startups from around the world meet and connect with investors. We brought 26 technology startups from Türkiye. Fourteen of these startups are companies in the Turcorn 100 program that are candidates to become future Turkish technology ventures valued at more than $1 billion,” Kacir said.

National Technology Initiative

Kacir said Türkiye’s innovation ecosystem now includes more than 13,000 tech startups in 114 technoparks, including nearly 3,000 early‑stage ventures. “Our goal is to see 100,000 technology startups established in Türkiye by 2030 and to increase the valuation of our Turcorns to $100 billion,” he said. He added that Türkiye would continue to advance its National Technology Initiative under President Erdoğan’s leadership. “We will continue to strengthen our ambition to be a country that develops its own domestic and national technology products and services with its own resources and people,” Kacir said.

Inflation and growth projections

The Fed also lifted its inflation forecast to 3.6% for 2026 from 2.7%, while lowering its growth estimate for the year to 2.2% from 2.4%. Nine of 18 policymakers now anticipate at least one rate hike this year. Fed Chair Kevin Warsh emphasized that inflation remains above the 2% target and reaffirmed the bank's commitment to price stability. Money markets have shifted their expectations, now pricing in a rate increase in October instead of December. Treasury yields rose to 4.5% before easing to 4.45% on Thursday as oil price declines softened inflation fears.

Currency and commodity moves

The US Dollar Index climbed to 100.6 on Wednesday—its first move above 100 since April—before dipping to 100.2 on Thursday. Gold advanced 1.4% to $4,316 per ounce. Brent crude dropped 1% to $77.70 as the Iran deal boosted supply expectations. US stocks closed lower Wednesday, with the Dow down 0.98% and the Nasdaq falling 1.34%, though markets opened higher Thursday.

SME integration and supply chains

A second memorandum of understanding was signed to strengthen regional and sectoral cooperation between the Turkish and Spanish defense ecosystems. The MoU aims to accelerate the integration of small-and-medium enterprises and prime contractors from the two countries, while supporting cooperation in supply chains, technology transfer, and joint production capabilities. OSSA Chairman Ibrahim Yarsan said the deal is an important strategy to expand to international markets. “We aim to integrate the high production capabilities of our SMEs more dynamically with Spanish prime contractors and the global supply chain,” he stated.

Concrete outcomes

The first concrete reflection of the cooperation will be seen at “IDA Türkiye Industrial Cooperation Days in Defense and Aerospace,” scheduled for October 14-16 in Ankara. After hosting major sector players in the Turkish capital, the cooperation will continue in Valencia with “IDA Spain Cooperation Days” on September 22-24, 2027. For Türkiye, the agreements represent a strategic step to deepen ties with Spain, a key NATO ally and partner in the European defense industry, and to position Turkish SMEs as suppliers to European prime contractors. The cooperation also aligns with Türkiye’s goal of increasing defense exports.

FTA modernization

The meeting addressed efforts to strengthen the economic partnership, defense industry cooperation, and joint projects in third countries, according to the Turkish Trade Ministry. Bolat noted that bilateral trade volume reached $24 billion in 2025, demonstrating the strong potential of relations between the two NATO allies.

Trade volume targets

The two ministers aim to raise trade to $40 billion following the completion of free trade talks this week. "With the completion of the free trade agreement negotiations, we aim to achieve our shared target of $40 billion by making our trade more competitive and integrated," Bolat said on the Turkish social media platform NSosyal.

Bolat said he was "delighted" to host Bryant, adding that Ankara and London would continue taking joint steps to support business communities. Türkiye will continue to serve as a reliable partner and regional hub for UK companies with its production strength and strategic location, he noted.

Platform-specific power solutions

General manager Ahmet Turan Ozdemir told Anadolu that the company manufactures battery formulations designed to deliver distinct performance metrics for each drone category. Fixed-wing platforms prioritize high energy capacity for extended flight times, while FPV drones require rapid bursts of power for acrobatic maneuvering — a demand that generates significant heat during operation.

Engineers have implemented advanced safety features at both the cell and pack levels to prevent thermal runaway, fires and explosions resulting from these rapid power draws. The heat management systems address the specific thermal profiles generated during high-draw maneuvers, ensuring operational stability across diverse flight envelopes.

Single-use tactical applications

Ozdemir noted that Aspilsan is currently developing new battery models specifically for single-use kamikaze drones, a platform that does not require long-term cycle life. The firm has collaborated with Türkiye’s drone manufacturers to design custom formulations for their exact power requirements, optimizing cell chemistry for mission-specific duration and discharge rates rather than longevity.

Roadmap to energy independence

The firm is working to increase the energy density of its existing cells through high-impact solutions leveraging current manufacturing capabilities without requiring significant initial capital spending. Ozdemir stated that Aspilsan plans to secure future investments to expand its mechanical and electrochemical infrastructure, aiming to add new cell types to its portfolio within the next two years to achieve complete energy independence for Türkiye’s drone sector.

Inflation and growth

The energy shock filtered through the broader economy, raising transportation, electricity, and agricultural input costs. The World Bank forecasts global inflation to rise to 4% in 2026 from 3.3% in 2025, with developing economies facing the largest impacts. US annual inflation reached 4.2% in May—its highest in over three years. Global growth is expected to slow to 2.5% in 2026, the weakest since COVID-19. The World Bank said growth across emerging markets and developing economies has been downgraded to 3.6% from 4.4%. Gulf economies are expected to grow at near zero.

Commodities and food security

Fertilizer prices are projected to rise 31% this year, with urea prices up 60%. The World Food Program warned that 45 million additional people could face acute food insecurity. The World Bank estimates repair costs for damaged energy infrastructure at up to $58 billion.

Türkiye Petroleum Refineries, known as Tupras, retained its position as the country's largest industrial enterprise with 698.8 billion Turkish liras ($19.6 billion) in net production-based sales, according to the Istanbul Chamber of Industry's annual ISO 500 survey. ISO Chairman Erdal Bahcivan announced the results of the “Türkiye's 500 Largest Industrial Enterprises 2025” survey at a news conference, noting the continued strength of the energy sector. Ford Otomotiv secured second place with 538.3 billion liras ($15.1 billion) in sales, while Star Refinery maintained third position with 327.9 billion liras ($9.2 billion), according to Anadolu Agency.

Automotive sector consolidates positions

Automaker OYAK-Renault climbed to fourth place from sixth in the previous year's ranking, recording 235.5 billion liras ($6.6 billion) in production-based sales. Toyota Otomotiv ranked fifth with 206.3 billion liras ($5.8 billion), followed by home appliance manufacturer Arcelik with 165.7 billion liras ($4.65 billion) and Mercedes-Benz, which entered the top ten by moving up to tenth place from twelfth with 127 billion liras ($3.56 billion).

Defense and energy firms post strong gains

Turkish Aerospace Industries rose to seventh place from eleventh with 140.9 billion liras ($4 billion) in production-based sales, while Turkish Petroleum Corporation climbed to eighth from sixteenth with 138.8 billion liras ($3.98 billion). Defense contractor Aselsan advanced to ninth from seventeenth with 130.2 billion liras ($3.65 billion). Dollar equivalents in the survey were calculated using the average USD/TRY exchange rate for 2025.

Regional trends and currency effects

Exports to China, Japan’s largest trading partner, increased 17.9%, while shipments to the US climbed 12.5%. However, exports to the Middle East fell 32% amid disruptions to regional trade flows caused by the US-Iran war. Despite the strong headline figure, export volumes increased just 0.5%, indicating that part of the rise in export value reflected higher prices and the weakness of the yen. A weaker yen tends to boost Japanese exporters by making their products more competitive overseas, but it also increases import costs and can add to domestic inflationary pressures.

Imports and policy context

Imports rose 12.5% from a year earlier in May, the fastest pace since January 2025, though slightly below market forecasts of 12.8%. Petroleum imports fell 28.5%, affected by disruptions linked to the Middle East conflict. The trade figures were released after the Bank of Japan raised its policy rate by 25 basis points to 1%, the highest level in more than three decades, as policymakers sought to address persistent inflation and yen weakness.

MOU signed

The report comes one day after senior US officials said Washington and Tehran signed a Memorandum of Understanding (MOU) to end the four-month war and establish a framework linking economic measures, nuclear verification and regional security commitments. According to US officials, the MOU was signed electronically on Sunday and includes an extended pause in fighting, reopening the Strait of Hormuz, and setting the stage for talks on Iran's nuclear program linked to sanctions relief.

Tanker movement

The nonprofit group United Against Nuclear Iran reportedly said that an Iranian supertanker carrying crude oil had left the port of Chabahar, crossed the US blockade, and was sailing Tuesday out of the Gulf of Oman with its location tracker active. Asked about the report, a senior US official told Anadolu that the deal is a "performance-based agreement."

US conditions

"Iran can only access any benefits of the MOU if they abide by all of the points they agreed to — including no nuclear weapon, neutralizing its enriched material, and not interfering with the free flow of navigation in the Strait of Hormuz," the official added.

Price increases

Maximo Torero told Anadolu that the conflict has contributed to a 50% increase in oil prices, a 25% rise in natural gas prices, and a 55% jump in urea prices. "Corn has gone up 9%, soybeans 25%, wheat is going up 8%, and rice from 2% to 9%. This is the beginning of a process," he said.

Food inflation risk

Torero said food inflation was already showing signs of accelerating in parts of Asia and warned the effect could spread. "We run a high probability of facing a significant food crisis if this is not resolved now," he said. Nearly one-third of essential agricultural inputs have been affected by disruptions linked to the waterway.

El Niño threat

"What worries me the most right now... if El Niño starts to hit and it affects key exporting countries, then this situation could really exacerbate very quickly," Torero warned. "If El Niño starts to hit, then this thing will be exacerbating a lot."

Fertilizer dependency

The Middle East accounts for around 30% of global fertilizer exports. Iran, Qatar, Saudi Arabia, UAE, and Bahrain accounted for 23% of global ammonia trade and 34% of urea trade in 2024. Around 18.5 million tons of urea passed through the strait in 2024.

Türkiye's indispensable role in European auto sector

Mehmet Ali Yalçındağ, coordinating chair of the Foreign Economic Relations Board (DEİK), told Anadolu that the 30-year-old Customs Union has rendered Türkiye an integral component of Europe's automotive value chains. Classifying Ankara as a third country relegated to the remaining 30% quota would disrupt established business plans and diminish regional production capacity, he warned. Yalçındağ noted that half of all buses operating on European roads are manufactured in Türkiye, arguing that incorporating the country within the new origin scheme would allow the bloc to retain cost-effective, high-quality production hubs.

Ankara's pushback against exclusion

"We will not welcome any alternative proposals from the EU that exclude Türkiye, and we will continue our lobbying on every platform with EU countries in this regard," Yalçındağ stated. He emphasised that significant cooperation opportunities exist between Türkiye and Europe not only in automotive manufacturing but also in energy, defence, digitalisation and the green transition. Rather than objecting to steps that reverse progress, he said, stakeholders must protect and build upon existing achievements.

European Commission's industrial agenda

The automakers' push comes as the European Commission develops new industrial incentives and localisation mechanisms under its proposed "Industrial Accelerator Act." The three manufacturers, which collectively account for over 60% of EU vehicle production, argued in a joint letter to the European Parliament that the European auto industry faces mounting global competitive pressure. They called for common rules across the bloc requiring vehicle development, engineering and production to be conducted within EU borders when calculating domestic-to-foreign content ratios.

Ministerial endorsement from Brussels

Belgian Defence Minister Theo Francken publicly endorsed the agreement via social media, describing it as a significant development for his country's defence industry. "Great to see Belgian company Euramec and Turkish defense firm Havelsan sign a cooperation agreement at #Eurosatory2026," Francken wrote on X. He added that the partnership unlocks new commercial opportunities for Euramec within Türkiye's strategically important and rapidly growing defence market, underlining Ankara's rising profile as a key procurement destination for NATO-aligned nations.

Simulation expertise meets Turkish innovation

Euramec, headquartered in Hamme, Belgium, is recognised globally for its advanced flight simulator platforms and pilot training solutions. The company's collaboration with Havelsan—a leading Turkish software and systems integration house—is expected to combine European simulation know-how with Türkiye's indigenous defence engineering capabilities. The agreement was finalised on the margins of Eurosatory 2026, one of the world's largest defence trade fairs, which has drawn thousands of industry delegates and official delegations from across the globe to the French capital.

Strategic value for Ankara's defence ecosystem

For Türkiye's defence procurement authorities, the partnership represents another vote of confidence in the country's domestic industrial base. Havelsan, which operates under the auspices of the Turkish Armed Forces Foundation, has been actively expanding its international footprint through similar joint ventures and technology-sharing arrangements. The Euramec deal is expected to enhance Türkiye's capacity to develop next-generation simulation ecosystems for both military aviation and unmanned systems, further diversifying Ankara's defence partnerships beyond traditional suppliers.

Medium tank platform leads the cooperation

The collaboration will debut with the CFL-120 KARPAT, a medium-class armoured vehicle unveiled in Slovakia in May. Built on FNSS's KAPLAN MT platform—previously delivered to the Indonesian military—the vehicle integrates Leonardo's 120 mm turret system, offering a combination of high firepower, battlefield survivability and tactical mobility. The KARPAT is positioned as a versatile platform capable of performing missions typically assigned to heavier main battle tanks, particularly suited to European operational requirements.

European capacity gaps open door for Ankara

FNSS General Manager Selim Baybas told Anadolu that the partnership addresses pressing capacity shortages and technological gaps within the European defence sector. "We are joining forces with an important European group," Baybas said, adding that the company hopes to supply its vehicles to prominent European NATO members through upcoming procurement programmes. He emphasised that Türkiye's defence industry has made substantial progress in armoured land systems, positioning Ankara as a reliable technology partner for Western allies.

Technology transfer model with Turkish IP protection

Under the joint venture structure, FNSS will retain full ownership of all design rights, licences and research and development capabilities centred at its Ankara R&D facility. "Technology from us, some manufacturing from Europe," Baybas explained, describing a model in which Turkish intellectual property remains protected while production occurs in Europe to meet local content requirements. The strategy aims to comply with European procurement regulations that increasingly favour domestic manufacturing, while leveraging Türkiye's engineering expertise and combat-proven vehicle designs.

KAPLAN's mobility advantage for European terrain

Baybas noted that European defence programmes are shifting toward lighter, more mobile platforms with higher payload efficiency—criteria that align with the KAPLAN medium tank's specifications. Weighing less than conventional tanks, the vehicle offers logistical advantages in transportation and deployment across European infrastructure. "The KAPLAN medium tank is a very important example of this," he said, expressing confidence that the platform will generate substantial export revenues for both the joint venture and Türkiye's broader defence industrial base under the oversight of the Presidency of Defence Industries.

Regional stability and the US-Iran deal

Sheikh Tamim bin Hamad Al Thani characterised the recently brokered US-Iran agreement as a pivotal step toward de-escalation in the Gulf and the wider Middle East. While acknowledging that significant implementation work remains, the Qatari leader stressed that sustained diplomatic momentum could yield tangible improvements for the region. According to Al Jazeera, the emir underscored that “there’s still a lot of work to be done, but with this momentum… we can achieve and do great things in the region.”

Türkiye’s strategic position

The breakthrough follows intensive mediation efforts led by Pakistani Prime Minister Shehbaz Sharif, whose government facilitated dialogue between American and Iranian officials. The final text of the accord is expected to be formally signed in Switzerland on Friday. As regional dynamics shift, Türkiye remains closely engaged with all stakeholders, given its role in NATO and its influence on security architectures from the Caucasus to the Levant.

Qatar’s role as a diplomatic partner

The Qatari emir also reiterated Doha’s readiness to provide good offices and logistical support “whenever friends ask us to help,” positioning the Gulf state as an active facilitator in regional diplomacy. Observers note that Qatar’s economic leverage, particularly in energy and investment, continues to complement its political outreach. With the trade partnership projected to exceed $1 trillion, the US-Qatar corridor is emerging as a cornerstone of Washington’s commercial engagement in the Arabian Gulf, even as Ankara advocates for inclusive regional dialogue and balanced multilateral cooperation.

Türkiye’s strong performance

Turkish assets were among the strongest performers. The BIST 100 index opened 3.02% higher, the banking index surged 6.41%, and transportation stocks rallied more than 5%. Türkiye’s five-year credit default swap (CDS) fell to 225 basis points—its lowest level since February 26. Ozer noted that if global risks continue to slow, the Turkish Central Bank may cut rates. “In this scenario, the index could bottom out at 13,700 before attempting another push towards 15,000,” she said. Banking shares also benefited from reports that legal proceedings involving Halkbank could move toward resolution.

Commodities and central banks

Brent crude fell 4.1% to $82.1 per barrel, while gold rose 3.1% to $4,339 per ounce. In the US, Nasdaq 100 futures rose 2%, and the 10-year Treasury yield fell to 4.41%. Investors are now turning to central bank decisions. The Bank of England is expected to hold rates, while the Federal Reserve’s first meeting under new Chair Kevin Warsh is awaited. Market pricing suggests a 73% probability of a Fed rate hike in December. For Türkiye, lower oil prices will help reduce inflation and ease pressure on the current account deficit.

Market reaction

Brent crude oil dropped 5% following the news. While broader markets traded positively on the prospect of reduced geopolitical risk, oil companies’ shares suffered as investors anticipated that the profit growth seen during the war period would eventually end. TotalEnergies and Shell shares fell 4.8% and 4.7%, respectively, by 1200GMT. Italian Eni shares declined 4.3%, UK-based BP lost 3.6%, and shares of Greek Motor Oil Hellas fell 3.9%. Analysts noted that trade flows in the strait are estimated to take months to return to normal, and a full recovery in supply is expected to take a long time.

Manufacturing drives gains

The manufacturing sector powered the annual expansion with a 6.8% increase compared to April 2024, the Turkish Statistical Institute (TÜİK) said in a statement. Mining and quarrying activity contracted 2.8% over the same period, while the electricity, gas, steam and air conditioning supply index edged up 1.8%, according to the official data.

Monthly recovery

Industrial output advanced 3.7% month-on-month in April from March. Manufacturing rose 4.4% and mining gained 0.8% during the same period. The electricity, gas, steam and air conditioning supply index, however, declined 2.8%, TÜİK noted.

Economic indicator

Industrial production serves as a key barometer for economic activity, tracking output trends across manufacturing, mining, energy and related sectors. The index uses 2021 as its base year, with officials highlighting manufacturing's contribution to both annual and monthly gains.

'Strategically important partner'

Speaking to reporters in Berlin, ministry spokeswoman Susanne Ungrad emphasized the significance of the bilateral relationship. "Türkiye is a strategically important partner for Germany," Ungrad said. "The visit on Thursday and Friday will focus on the German-Turkish economic and energy partnership," she added, noting that discussions would cover multiple sectors including infrastructure and regulatory cooperation.

Business delegation

Reiche will be accompanied by approximately 30 business leaders from key economic and energy sectors during her meetings with Turkish counterparts in Ankara. The delegation's presence underscores Germany's interest in bolstering investment flows and addressing trade barriers through the long-standing JETCO framework, which has facilitated bilateral commerce for decades. Talks are expected to address renewable energy projects, customs streamlining, and opportunities for German firms in Türkiye's expanding infrastructure market.

Mediation announcement

Sharif revealed the breakthrough early Monday on the social media platform X, stating that intensive negotiations had produced a framework for lasting peace. "Following intensive talks, we are pleased to announce that the Peace Deal between the United States of America and Islamic Republic of Iran has been REACHED," Sharif said, adding that the official signing ceremony is scheduled for June 19 in Switzerland. He noted that "both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon."

Conflict background

The agreement follows over three months of hostilities that began in late February and have claimed thousands of lives while severely restricting maritime traffic through the vital oil chokepoint. The conflict had drawn in regional actors and raised fears of wider escalation across the Middle East before Islamabad stepped in to facilitate the negotiations. The permanent cessation of military operations includes fronts in Lebanon, where parallel tensions had threatened to expand the war beyond the primary US-Iran confrontation.

Investment targets and infrastructure expansion

Speaking at the Türkiye Artificial Intelligence Summit in Istanbul, Erdogan said the initiative aims to increase installed data center capacity to at least one gigabyte by 2030 while mobilizing private capital for cloud computing and AI infrastructure. The government will also direct at least two percent of public investment programs toward artificial intelligence projects, he noted.

Workforce development and public literacy

Under the new framework, authorities will train 10,000 advanced AI specialists and 100,000 AI application professionals, Erdogan said. “We will launch the National Artificial Intelligence Literacy Program to ensure that people of all ages understand artificial intelligence correctly and use it safely,” he stated, adding that AI literacy workshops will roll out across all 81 provinces with a target of reaching five million citizens within two years.

Data governance and strategic pillars

The action plan envisions making at least 2,000 public datasets available through a National Data Library, spanning sectors including health, agriculture, defense, and e-commerce, according to the president. The strategy rests on four main pillars — “discover, benefit, produce and govern” — with four complementary actions under each pillar, he noted.

The announcement comes as Ankara seeks to accelerate digital transformation across public and private sectors. Officials have framed the 2030 capacity targets as essential to securing Türkiye’s position in the global technology market.

Treasury and Finance Minister Mehmet Simsek said on Friday that Türkiye's economic program remains firmly on track despite recent geopolitical and energy shocks, with the disinflation process set to resume within months and return to its intended trajectory. Speaking at the 69th General Assembly of the Banks Association of Türkiye at the Istanbul Finance Center, Simsek emphasized that price stability remains the government's core priority, while fiscal discipline and structural reforms will continue supporting efforts to bring inflation permanently down to single digits. "Despite shocks, what matters is progress. What matters to us is the direction of travel," Simsek said. "From that perspective, with a delay of a few months, the disinflation process will continue again and get back on track."

Fiscal discipline withstands earthquake spending

Simsek stated that there was currently no concern over fiscal discipline despite earthquake-related expenditures, noting that Türkiye maintains a stronger fiscal position than many comparable countries. The budget deficit target stands at 3.5% of gross domestic product, though actual performance will "very likely" exceed that projection, he said. The minister also highlighted that the current account deficit — long viewed as one of Türkiye's primary economic vulnerabilities — has become manageable, with the annual shortfall expected to close at 3% of GDP or below. "I see this area, which was viewed as the biggest vulnerability, as very comfortably manageable today," Simsek added.

External financing needs decline

Addressing external financing concerns, Simsek said Türkiye's gross external financing need is expected to stand at around 17% of GDP this year despite war-related disruptions, remaining below its long-term average of approximately 20%. He noted that the deterioration in the annual foreign trade deficit since December has stayed below $1.5 billion despite the oil shock, while tourism revenues have held steady. There is "no room for concern" over reserves, Simsek added, explaining that nearly 40% of the recent reserve decline following the outbreak of war stemmed from changes in gold prices rather than underlying weakness.

Central Bank affirms tight policy stance

Central Bank Governor Fatih Karahan said the monetary authority would continue using all policy tools decisively to protect both price stability and financial stability in the period ahead. "At the point we have reached today, we assess that the necessary conditions for the continuation of the disinflation process have been preserved thanks to our policy tools, strong reserve position and macroeconomic rebalancing," Karahan said. He noted that geopolitical developments and energy market volatility had created short-term risks for inflation and the external balance, but were not expected to reverse the disinflation trajectory if correct policy steps were maintained.

Karahan confirmed that the central bank's tight monetary policy stance would continue, with future decisions considering the effects of geopolitical developments on inflation through cost, economic activity and expectations channels. Rebalancing in domestic demand, a healthy current account outlook and a strong reserve position provide support for the continuation of disinflation, he noted. The path to healthy and sustainable growth in the banking sector runs through low and stable inflation, Karahan added, stating that long-term external financing inflows continued to confirm the resilience of the sector.

Record public offering

SpaceX priced 555.6 million Class A shares at $135 each, raising approximately $75 billion in the largest initial public offering in history and surpassing Saudi Aramco's 2019 listing. The offering values the Hawthorne-based company at roughly $1.77 trillion.

Shares are scheduled to begin trading on the Nasdaq exchange under the ticker symbol "SPCX," placing the rocket manufacturer among the world's most valuable publicly traded firms. The listing incorporates historical financial data from xAI and X Holdings following recent transactions among entities under Musk's control.

Holdings valuation

According to the IPO prospectus, Musk will hold approximately 849.5 million Class A shares and 5.57 billion Class B shares, granting him 84.4 percent of the company's combined voting power. At the IPO price, his disclosed SpaceX stake alone is worth approximately $866.5 billion on paper.

Separately, Musk beneficially owns roughly 717.1 million shares of Tesla worth approximately $286.2 billion based on recent trading prices. The combined valuation establishes a new benchmark in personal wealth, though the figure remains theoretical and subject to market fluctuations once trading commences.

Contingent milestones

The trillion-dollar calculation includes performance-based SpaceX awards tied to ambitious milestones, including establishing a permanent Mars colony with at least one million inhabitants and deploying non-Earth-based data centers capable of delivering large-scale computing capacity. Without these contingent awards, Musk's wealth would remain below the threshold based solely on his current Tesla stake and non-contingent SpaceX holdings.

SpaceX generated revenue of $18.7 billion in 2025, up from $14 billion in 2024, while its net loss widened to $4.9 billion from a profit of $791 million a year earlier. The company has expanded from a launch provider founded in 2002 into a broader space, satellite internet and artificial intelligence group encompassing Starlink services and long-term interplanetary settlement projects.

Wealth context

Musk was already ranked as the world's richest person before the SpaceX listing based on his electric vehicle holdings and other ventures. The IPO lifts the notional value of his assets to a level no individual has previously reached in public wealth rankings, although most of the fortune remains tied to volatile equity valuations rather than liquid cash.

Supply concentration and demand surge

Demand for lithium is projected to grow by more than 350% by 2040, while graphite demand could rise by more than 130%, according to the agency. Supply chains remain highly concentrated — the Democratic Republic of Congo accounted for 74% of global cobalt mine production in 2025, while China produced 78% of the world’s natural graphite. Australia, Chile and China together produced more than 70% of global lithium, with Beijing also dominating the refining of several critical minerals.

Trade restrictions and international agreements

As demand rises and supply risks grow, governments are increasingly using trade policy to secure access to critical minerals and build domestic capacity. Since 2020, nearly 100 export-related measures have been introduced on critical minerals, including licensing requirements, export taxes and export bans, UNCTAD said. International partnerships have also expanded rapidly, with the agency identifying 73 international agreements and partnership instruments, 58 of them signed after 2022.

Fragmentation risks and policy coordination

The agency warned that developing countries could attract investment and move up the value chain through these partnerships, but noted that many agreements still focus heavily on extraction. UNCTAD cautioned against the risk of a fragmented system of overlapping rules and standards as more countries compete for access, saying such fragmentation could raise costs and complicate investment decisions. The agency called for a more coordinated approach to keep critical mineral trade open and development-oriented, arguing that current policy choices would determine whether these resources drive fragmentation or foster resilient global cooperation.

Deep Ties and Strategic Position

Mickoski noted that Türkiye was among the first countries to recognize North Macedonia’s independence in 1991, with more than one million citizens in Türkiye tracing roots to his country. “There are few countries in the world that can boast of such deep human ties as exist between both countries today,” he said, highlighting the unique cultural foundation for business relationships. He pointed to North Macedonia’s geographical position as a natural gateway connecting the Middle East, Türkiye, and Southeast Europe with central European markets, allowing Turkish firms to establish production facilities integrated into the European supply chain.

Investment Climate and Reforms

The prime minister stressed that his government has implemented reforms to reduce administrative procedures and digitize public services, creating what he called exceptionally favorable conditions for business development. “My country is emerging as a country that offers stability, predictability, and exceptionally favorable conditions for business development,” Mickoski said, noting that North Macedonia ranks among the most competitive business destinations in the Western Balkans. He underscored the availability of a young, educated workforce, a stable financial system, and modern technological development zones ready to support foreign capital.

Development Strategy

Mickoski revealed that the government has prepared a National Development Strategy until 2044 in partnership with the UN Development Program, identifying 13 key areas with potential to transform the country into a regional hub for production and logistics. “The doors are open, the opportunities are real, and we can build the future together,” he told participants, adding that the goal is to build a long-term partnership creating value for both sides rather than merely attracting capital. Many Turkish companies already operate successfully across various industries in North Macedonia, ensuring new investors enter a familiar environment with an established business ecosystem.

Strategic infrastructure cooperation

Speaking at an event organized by Türkiye's Foreign Economic Relations Board (DEIK), Uraloglu stressed that wars in the region have highlighted the urgent need to develop alternative transport corridors. "We estimate that this will contribute $2 trillion to the national economy over the next 10 years, through this initiative, we are also contributing to the employment of 1.2 million people annually," he noted, referring to the infrastructure investments.

The minister highlighted a cooperation agreement between the Turkish State Railways and the North Macedonian Railway Infrastructure Agency (PERI), saying it would significantly enhance mutual cooperation. "We are situated at a highly strategic point connecting Europe and Asia, therefore, we are gradually increasing these transit points day by day," he said, adding that Ankara is ready to share all its expertise with Skopje.

Development Road Corridor

Uraloglu noted that for the railway line passing through the Yavuz Sultan Selim Bridge in Istanbul—approximately 120 kilometers—Türkiye secured a $6.75 billion loan from six international institutions led by the World Bank. "We are also working on a corridor originating from the Gulf region, the Development Road Corridor," he said. "If we had completed this corridor today, we wouldn't have had the Strait of Hormuz dominate the global agenda to such an extent due to traffic from Iraq."

Skopje's corridor investments

North Macedonian Government General Secretary Igor Janushev stated that Skopje planned to invest €5.5 billion ($6.4 billion) in infrastructure over the next five to seven years, having signed a strategic partnership agreement with the UK to finance these projects. He announced that North Macedonia would publish a €450 million tender for the third section of Corridor 8 together with the European Investment Bank and the EU in two to three weeks, noting that Turkish companies have played an active role in railway and highway projects in the country.

One facility will channel funds through the Development and Investment Bank of Türkiye for sustainable industrial investments, while the second will back green finance initiatives for Turkish exporters via Turk Eximbank, according to statements from the bank. De Groot emphasized that energy efficiency remains a primary concern for businesses across Europe and Türkiye. "I think all companies are looking for lower energy consumption and also to maximize the use of renewables," he said during meetings in Istanbul. "So, every businessman you talk to, whether it's in this country or anywhere else in Europe, has very much energy efficiency on his mind."

Reconstruction efforts in Hatay

The vice president also inspected post-earthquake reconstruction work in Hatay province, where the EIB previously committed €400 million to repair water and wastewater infrastructure following the February 2023 disasters. De Groot noted that the technical standards achieved in restoring drinking water services impressed the delegation, particularly efforts to build infrastructure capable of withstanding future seismic events.

"So, they are truly trying to build back better," De Groot said. "The people have suffered enormously and are still suffering, and that made a great impression. But also their resilience to bring Antakya and the province back to how it was." The visit marked what De Groot described as the start of a new cooperation phase between the EIB and Türkiye, with the bank appointing a new head of office in Istanbul to identify pipeline projects.

Railway expansion on agenda

Beyond immediate green financing, De Groot identified railway infrastructure as a prospective area for deeper cooperation, noting that Ankara maintains ambitious plans to expand and modernize its network. "I know the government of Türkiye has great plans to expand and modernize the railway infrastructure. This is something we do within the EU too," he told reporters. "So, we have great expertise there, so maybe this is an area where we could be of assistance."

The EIB operates as the lending arm of the European Union and stands as one of the largest multilateral development banks globally, providing credit and technical support to projects in more than 160 countries since 1958. De Groot expressed hope that a strong project pipeline would be built up quickly following his discussions in Ankara, Istanbul, and Hatay.

EU defense investments

De Groot also addressed the EIB's evolving role in European defense capabilities, explaining that EU leaders have requested the bank support infrastructure and manufacturing investments that have been neglected for decades. "The financing has to do with the infrastructure, which has been neglected for decades, and now we have to rebuild our infrastructure to be able to defend ourselves," he said. The bank is additionally funding research and development for new defense technologies while supporting small and medium enterprises within the supply chains of major European contractors.

Economic outlook

The bank noted that first-quarter data pointed to a slowdown in economic activity, while leading indicators suggested a continued weak course in domestic demand. “The impact of geopolitical developments on the inflation outlook through the cost channel, economic activity and expectations is closely monitored,” the committee said. It reiterated that the tight monetary policy stance will be maintained until price stability is achieved, adding that this stance will strengthen the disinflation process. The policy rate will be determined taking into account realized and expected inflation, with a focus on the inflation outlook.

Inflation and future policy

The committee warned that “in case of a significant and persistent deterioration in the inflation outlook, monetary policy stance will be tightened.” It also said liquidity conditions will be closely monitored. The bank aims to create conditions to reach the 5% inflation target in the medium term. Türkiye’s annual inflation rose to 32.61% in May from 32.37% in April, while monthly CPI climbed 1.71%. For Türkiye, the continued hold reflects caution amid the Iran war, the closure of the Strait of Hormuz, and the resulting energy price volatility.

Chief Executive Sam Altman recently acknowledged that operational expenses represent "a huge issue" for the company. "I think we'll have a lot of ways we can help people get more value for less spend," Altman said. He signaled imminent adjustments to the company's commercial terms.

Margin Pressures

The Journal noted that aggressive discounting could squeeze profit margins further, as both firms already invest billions of dollars annually in the specialized computational infrastructure required to power large language models. Anthropic has accelerated its market advance following widespread adoption of Claude Code among software developers. The success has boosted revenues and propelled the startup's valuation past OpenAI's mark in private funding rounds.

In response, OpenAI has elevated its Codex programming assistant to strategic priority status in an effort to retain developer loyalty and counter Claude Code's momentum among technical users.

Enterprise Scrutiny

Enterprise customers have begun scrutinizing AI expenditures more closely, fueling debates in Silicon Valley over "tokenmaxxing," the practice of maximizing token usage to boost productivity even when returns remain unclear. An Uber executive disclosed earlier this year that the ride-sharing firm had already depleted its 2026 budget for autonomous AI agents. Other technology leaders have questioned whether efficiency gains from automated coding tools translate into measurable improvements for end-users.

Public Offering Plans

OpenAI confidentially submitted paperwork for an Initial Public Offering this week, shortly after Anthropic took similar steps toward a market debut. Altman informed staff that the company intends to complete its public listing "within the next year." The company cautioned that certain strategic objectives remain "likely easier as a private company," without elaborating on specific operational details.

Investors have long viewed the similarity of offerings between the two leading AI labs and the relative ease of customer switching as a significant risk factor for long-term revenue stability, even as both firms currently dominate sales of emerging artificial intelligence products.

Trade surplus argument

The USMCA entered into force in July 2020 and includes a joint review mechanism scheduled for 2026. Trump said the US “does much better” without relying on goods from Canada and Mexico, arguing both countries need access to the US market more than Washington needs their exports. “We don’t need their cars, we don’t need their lumber, we don’t need their energy,” he said, adding that the US should have trade surpluses with both countries rather than deficits.

New entrants and total value

Thirteen brands entered the ranking this year, including Alfa Solar, Baykar, Celebi Aviation, and Trabzonspor. The combined value of the 125 brands reached $19.6 billion, up from $17 billion last year, marking a second consecutive annual rise. Muhterem İlgüner, Brand Finance’s managing director for Türkiye, told Anadolu that momentum from aviation, defence, financial services, and electronics brands positively influenced the total value.

Renewable energy and global expansion

Renewable energy brands began appearing in the list, and revenue generated in foreign markets made a positive impact. “The expansion, acceptance, and strengthening of Turkish brands abroad reflect positively on their brand values,” İlgüner said. The Turquality support programme, which now supports nearly 500 member brands, was launched to strengthen Turkish brands and monitor their performance. For Türkiye, rising brand values signal growing international competitiveness and help attract foreign investment.

Analyst views

Jan‑Paul van de Kerke of ABN AMRO told Anadolu: “We expect rate rises at the June and July meetings, taking the deposit rate to 2.50%,” noting that second‑round inflation effects are likely limited and that rates can return to neutral by 2027. Marco Wagner of Commerzbank sees another 25‑basis‑point increase by September but considers a third hike unlikely. Elwin de Groot of Rabobank said the ECB is likely to revise inflation projections upward, while growth could prove weaker, adding that a stronger stagflationary shock linked to the Strait of Hormuz closure could emerge.

Cautious approach

Alain Durre of Natixis said the ECB will raise rates but expects President Lagarde to adopt a moderately dovish tone about the future path to avoid triggering expectations of a prolonged hiking cycle. “A second hike is possible between July (35%) and September (55%) conditional on the duration of the Hormuz strait blockade,” he said.

Gaziantep‑Aleppo axis

The summit focused on renewed economic ties between Türkiye and Syria and opportunities for regional development. Karagöz stressed that both Gaziantep and Aleppo are experiencing a significant moment, and reviving Syria’s production capacity and industrial infrastructure is important for regional stability. Special‑status production zones between Gaziantep and Aleppo could transform the border economy into a more integrated structure. The region’s proximity to Mediterranean ports and existing railway connections could facilitate integration into global trade, making the Gaziantep‑Aleppo line a strategic point for production and distribution networks.

Anadolu’s global role

Karagöz said Anadolu broadcasts in 14 languages, operates offices in 36 locations, and has correspondent networks across Europe, the Americas, Asia, and Africa. The agency works with nearly 700 major brands and will now begin communicating the success stories of Syrian companies to the world. “Gaziantep and Aleppo should be seen not only as two cities brought together by history, culture, and trade routes, but also as two regional power centres that will shape the future together,” he said.

International benchmark Brent crude fell more than 5% to approximately $90 per barrel on Tuesday, its lowest level since March, after Israeli Prime Minister Benjamin Netanyahu and Iranian officials signaled a temporary halt to mutual strikes, according to market data. US benchmark West Texas Intermediate declined over 5% to around $86.40 per barrel as the war premium in crude prices eased rapidly across global exchanges.

Diplomatic Signals

Netanyahu stated that Israel would pause strikes while warning that it would respond forcefully to any further attacks from Tehran, a stance echoed by Iranian media reports signaling a similar pause in hostilities. US President Donald Trump said this week that negotiations were entering their final stage and that Washington could declare "total victory" in the conflict within two weeks, adding that a clearer outcome could emerge within days.

Supply Outlook

US Energy Secretary Chris Wright noted that ship traffic through the strategic Strait of Hormuz is rising "very meaningfully" following the de-escalation. Weaker demand from China — where crude imports dropped to approximately 7.8 million barrels per day last month, the lowest level in more than eight years — has also weighed on prices alongside record US exports.

The combination of declining consumption from the world's largest crude importer and emergency reserve releases has helped limit the price impact of the conflict, according to energy analysts. Market participants continue to monitor whether the ceasefire holds, as any renewed escalation involving key regional producers could quickly revive supply concerns despite the current drop in futures prices.

Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu announced on Tuesday that Türkiye and Saudi Arabia have signed memorandums of understanding covering railway and logistics cooperation, launching what he described as a new phase of technical exchange, according to the Turkish Transport Ministry. The agreements were inked by Uraloglu and his Saudi counterpart Saleh bin Nasser Al-Jasser, establishing frameworks for collaboration in logistics center construction, railway technology, and human resources training.

Uraloglu stated on the NSosyal platform that the memorandums will facilitate expertise sharing and modern applications across both sectors. "May these steps, which will contribute to the connectivity, trade, and development of our region, bring lasting benefits to both our countries," he said, adding that the cooperation aims to strengthen bilateral exchange across logistics operations and technical innovation.

Reviving overland trade corridors

The two countries are closely monitoring developments on the Syria-Jordan-Iraq routes to restore pre-2012 transport volumes, which previously reached 20,000 units annually, according to the minister. Uraloglu noted that two test runs starting from Türkiye through Iraq and extending to Saudi Arabia have clearly demonstrated the feasibility of this overland corridor, although current regional developments have temporarily suppressed bilateral trade figures.

"Although we currently fall short of that figure due to regional developments, our goal is to take our cooperation beyond even that level," Uraloglu said, emphasizing that the logistics memorandum specifically targets construction and management of logistics centers alongside joint operational activities. The railway cooperation agreement covers joint initiatives across all areas of the sector, from infrastructure development to training programs.

Hejaz Railway extension plans

Earlier this month, Uraloglu outlined plans to modernize the historic Hejaz Railway and extend it to Oman, creating an alternative global trade route that bypasses the Strait of Hormuz. The initial stage involves connecting Türkiye to Aleppo while utilizing the existing Aleppo-Damascus-Jordan network, with officials continuing negotiations with Saudi authorities to integrate the line into a broader regional network serving both tourism and modern transit needs.

The minister explained that reviving the historical line forms part of Ankara's broader strategy to enhance connectivity with the Gulf region through railway infrastructure. Technical teams from both ministries are expected to advance feasibility studies and coordination mechanisms in the coming months as part of the newly signed framework.

The Asian Development Bank has approved a €645.83 million ($750 million) loan to finance a 127-kilometer railway line in Türkiye. The Istanbul North Rail Crossing Project is designed to bypass the Istanbul metropolitan area and provide a high-capacity overland rail link across the Strait of Istanbul. The electrified route will connect two main airports to the national rail network while relieving supply chain bottlenecks, according to the bank.

Regional connectivity

Leah Gutierrez, the bank's Director General for Central and West Asia, said the project reinforces Türkiye's strategic role as a key link between Asia and Europe. "The collaboration of international financial institutions maximized development impact," she stated. The Manila-based lender designed the route to relieve supply chain bottlenecks for passengers and freight, officials noted.

Co-financing and timeline

The Asian Development Bank and the World Bank are cofinancing the initiative to streamline project preparation. Officials projected the total cost at $8.27 billion, with a second loan for the same amount scheduled for consideration in 2028. The project aligns with Türkiye's 12th Development Plan and the Transport and Logistics Master Plan.

Customs gates and trade targets

Speaking at the summit organized by Anadolu Agency in cooperation with Gaziantep Metropolitan Municipality, Bolat stated that the two nations aim to reach $5 billion in annual trade within two years. "We are fully prepared for the opening of the Islahiye Customs Gate," the minister said, adding that officials also informed Syrian counterparts about readiness to open the Nusaybin-Qamishli crossing.

Banking cooperation and visa facilitation

Bolat noted that Turkish banks have reached agreements to open branches in Syria while central banks continue negotiations, emphasizing Ankara's strong support for Damascus in efforts to lift US and European Union embargoes. Turkish officials have also begun working with immigration authorities to facilitate visa processes for Syrians making definitive returns to their homeland, prioritizing the protection of Syria's territorial integrity and national unity following the political transition of December 8, 2024.

Strategic corridor and regional investment

Turkish Ambassador to Damascus Nuh Yilmaz described Syria as a strategic logistics corridor connecting Türkiye to Middle East and Gulf markets, advising investors to establish long-term partnerships in the Aleppo-Idlib region due to stable energy supplies and skilled workforces. Gaziantep Mayor Fatma Sahin called for revitalizing historical logistics networks between the cities, while Governor Kemal Ceber predicted the border area would soon become the new economic hub of Türkiye. Gaziantep exported $900 million worth of goods to Syria last year and reached $350 million in the first five months of this year.

Background of tensions

The export ban took effect immediately after its announcement in January and forms part of Beijing’s broader efforts to tighten controls over strategically sensitive goods and technologies. China has frequently criticized Japan’s recent defense policy shifts, including increased military spending, the acquisition of counterstrike capabilities, and deeper security cooperation with the US and its allies. Beijing has argued that such moves depart from Japan’s post-war pacifist principles and could threaten regional stability.

Precious metals gain

The ounce price of gold rose by 0.6% to $4,340 as of 0610GMT while silver gained 0.4% to $68.4, according to market figures. Precious metals traditionally serve as safe-haven assets during periods of geopolitical uncertainty, though Tuesday's gains came as diplomatic prospects appeared to improve.

Energy prices slide

Brent crude futures fell by 1.2% to $93.2 per barrel while West Texas Intermediate (WTI) dropped 1.5% to $89.9 during the same period. The TTF Gas index — a benchmark indicator for European natural gas — declined by 1% to €49.9 per megawatt-hour, while heating oil prices slipped 0.5% to $3.5 per gallon.

Diplomatic efforts continue

Negotiations between the United States and Iran remain ongoing despite recent escalations, President Donald Trump said early Tuesday, just hours after Tehran and Tel Aviv agreed to halt attacks on one another. The latest diplomatic push follows weeks of violence that began on February 28, when Washington and Jerusalem launched military strikes against Iranian targets, disrupting commercial shipping through the strategic Strait of Hormuz.

Nvidia's record quarterly earnings and expanding artificial intelligence partnerships have driven global market valuations to $161.1 trillion over the past 100 days, overshadowing volatility from the ongoing war between the US, Israel and Iran. The chipmaker reported revenue of $81.6 billion for the first quarter of its 2027 fiscal year, marking an 85% increase year over year. Nvidia founder and CEO Jensen Huang said the construction of AI factories has been the largest infrastructure expansion in history while announcing that the firm’s Blackwell and Rubin chips will generate at least $1 trillion in revenue by 2027.

Stock indexes saw mixed trends during the period, with South Korea’s Kospi Index surging 22.7%, the Nasdaq gaining 13.4%, and Japan’s Nikkei 225 climbing 8.5%, though Germany’s DAX 40 fell 2.1% and China’s Shanghai Composite Index declined 4.5%. The S&P 500 rose 7.3% and the Dow Jones Industrial Average added 3.9%, while Italy’s FTSE MIB increased 5.7%.

Energy markets and inflation concerns

Hostilities between the US, Israel and Iran erupted on February 28, threatening energy flows through the strategic Strait of Hormuz and causing Brent crude to spike sharply to $114 per barrel on March 9. The limited resumption of traffic through the strait and coordinated efforts to boost oil supply eventually brought Brent crude back down to the $90 per barrel level following a temporary ceasefire between Washington and Tehran on April 8, though energy prices remain elevated compared to pre-war levels. Major central banks were prompted to rethink their monetary policy amid these persistent inflation concerns, further exacerbated by macroeconomic indicators pointing to price rigidity, while the fear index VIX — reflecting volatility in the S&P 500 — surged 8.3% to 19.8 during these developments.

Central banks pivot as bond yields surge

Rising expectations that high energy prices could complicate the global fight against inflation led the Federal Reserve to postpone rate cuts, replacing earlier dovish expectations with hawkish moves instead. The US 10-Year Treasury yield rose to 4.69% on May 19, testing its highest intraday level since January 2025, while Germany’s 10-year bond reached 3.19% — its highest since May 2011 — and France’s 10-year bond hit 3.88%, its highest since June 2009. The UK’s 10-year bond surged to 5.19%, the highest level since August 2007, as markets continued pricing in three interest rate hikes by the European Central Bank by year-end, and Japan’s 10-year bond yield reached 2.76% — its highest since 1997 — while China’s 10-year bond fell to 1.72% as the People's Bank of China reportedly refrained from tightening policy amid deflationary risks.

Turkish Airlines Chairman Murat Seker announced on Monday that the flag carrier will introduce non-stop ultra-long-haul flights connecting Istanbul with Australia and South America by late 2027, leveraging a 420-aircraft fleet expansion that includes specialized ultra-long-range Airbus jets capable of 17-hour operations. Speaking on the sidelines of the International Air Transport Association’s 82nd Annual General Meeting in Rio de Janeiro, Seker stated that the airline’s long-term growth strategy for 2033 remains on track despite intensifying global competition.

“Turkish Airlines has now ordered nearly 420 aircraft with the Airbus order placed in 2023 and the Boeing order placed last September — there’s no significant changes to our growth targets since we have a hub like Istanbul Airport,” he said, adding that the carrier will deploy the ultra-long-range versions of the Airbus A350-1000 to serve Sydney, Melbourne, Buenos Aires, Santiago, and Lima. The diversification strategy also involves scaling up the airline’s in-house digital wallet TKPAY, its door-to-door delivery service Widect, and the Turkish Holidays vacation package platform, while the carrier is exploring a potential strategic partnership with Spain’s Air Europa to expand its Transatlantic presence.

Market dynamics

Seker noted that the flag carrier captured a new segment of global passengers amid recent regional dynamics, as the conflict in the Middle East temporarily disrupted Gulf carriers' operations. “There was an opportunity and we capitalized on it but only time will tell whether this will turn into a real and lasting opportunity in the long run,” he said, adding that he had been in close contact with the CEOs of Qatar Airways and Etihad Airways during the event. Qatar reportedly recovered 85% of its capacity and Etihad is in the same position, while Emirates’ recovery reached 90%, with Gulf carriers having returned to pre-war capacities and reporting steady demand, according to Seker.

Fuel security and outlook

Seker emphasized that despite developments in global energy markets affecting aviation, Türkiye faces no fuel supply risks thanks to its strong network of domestic refineries, while Istanbul's strategic maritime location allows the carrier to import jet fuel by sea from northern markets, Iraq, and North Africa. “Our prices have been more favorable versus Asia, especially during periods when fuel reached up to $2,000 per ton. While we saw at most around $1,600-1,800 — currently they’re in the range of $1,200-1,300,” he said. Seker added that high fuel costs will place significant financial pressure on the airline through the summer, potentially prompting capacity growth to slow to around 2% this year, though a financial rebound is expected by 2027 supported by the carrier's extensive global transit network.

Victor Matheson, a sports economics professor at College of the Holy Cross, told Newsweek that the actual impact for the US "is likely to be a fraction of what is — was — being advertised," citing substantial hosting costs and reports of thousands of unsold tickets weeks before the opening match. The preparation and operation phases created 824,000 full-time jobs globally, with the US alone securing approximately 185,000 of these new employment opportunities across its 11 host cities.

Expanded format reshapes competition structure

FIFA expanded the tournament from 32 teams to 48 for the 2026 edition, increasing the match total from 64 to 104 and extending the competition to approximately six weeks. The new format divides participants into 12 groups of four, introducing a round of 32 for the first time in World Cup history and offering expanded access to developing football nations from Africa and Asia. The 32-team structure had remained standard since France 1998.

The expansion guarantees each of the 48 competing federations at least $10.5 million — combining a $9 million group-stage participation fee with a $1.5 million preparation payment distributed to all entrants. FIFA's total performance-based prize pool reached $655 million, representing a more than 50% increase from the 2022 tournament in Qatar.

Record prize money and club compensation

The tournament champion will receive a record $50 million, with the runner-up earning $33 million, third place taking $29 million, and fourth place securing $27 million. Quarterfinalists will collect $19 million each, while teams eliminated in the round of 16 and the new round of 32 will receive $15 million and $11 million respectively. Nations exiting at the group stage still secure $9 million plus the preparation fee.

FIFA also increased the Club Benefits Programme budget by 70% to $355 million, paying daily compensation to clubs releasing players for the tournament. European powerhouses such as Real Madrid and Manchester City typically claim the largest shares, though clubs from developing leagues benefit immensely from sending even single representatives.

Broadcast rights and ticketing surge

Broadcasting agreements dominate the projected revenue stream, with FIFA expecting $4.2 billion from media rights and $2.8 billion from global sponsorships. Fox and Telemundo secured English and Spanish language rights in the US, requiring thousands of hours of content production for the expanded schedule. The 104-match format provides broadcasters with additional advertising slots to monetize their investments.

Ticket pricing has generated controversy among supporters, with official platform sales listing group-stage seats from approximately $700 and category-one final tickets exceeding $10,000. Hotel rates in the 16 host cities have surged by an average of 90%, climbing from $227 to $480 nightly, while Oxford Economics projects 6.5 million tourists will spend roughly $14 billion on accommodation, food, and transportation.

Logistical challenges across three nations

Organizers divided the 16 host venues into three regional clusters — Western, Central, and Eastern — to minimize travel across the vast North American territory, though teams will still face significant flight times. The US will stage 78 matches across 11 cities, while Canada and Mexico each host 13 games in three cities apiece. Security operations spanning three sovereign nations require unprecedented cross-border coordination, with law enforcement agencies establishing joint task forces to protect millions of visitors.

The US State Department has promised to expedite visa processing for ticket holders to prevent attendance shortfalls, while stadium operators have replaced artificial turf with natural grass pitches to meet FIFA standards. Mexico City's Azteca Stadium will host the opening match on June 11, becoming the first venue to stage World Cup matches across three tournaments following the 1970 and 1986 finals, while New Jersey's MetLife Stadium will hold the July 19 final.

Trump Endorses Fed Chair Autonomy

Speaking during an interview on NBC News' Meet the Press, Trump said Warsh — who was sworn in last month to lead the central bank — has his full support to chart his own course on monetary policy. "Kevin is fantastic, and I want him to do whatever he wants," the president said, adding that he does not wish to exert influence over the Fed chair's decisions. Asked whether he would be angry if the Federal Reserve raised rates, Trump said he has "a lot of respect for" Warsh, but reiterated that "there's no reason to raise interest rates" and emphasized that he does not want to "kill success" through tighter monetary policy.

Warnings Against Rate Increases

The president's remarks followed the release of May employment data showing the US economy added 172,000 jobs while the unemployment rate held steady, figures that under standard economic theory strengthen the case for raising rates to prevent overheating and control inflation. Trump dismissed such reasoning, saying it is "unfair that whenever you do great, they want to raise interest rates" and arguing that higher borrowing costs would amount to penalizing the country's progress. He said that raising rates tries to "kill success," noting that markets often decline on positive economic news because investors anticipate tighter policy, and stating that "nowadays when you have good reports, the market goes down because they think they're going to raise interest rates."

History of Fed Relations

Trump has repeatedly urged lower rates during his presidency, previously mocking former Fed Chair Jerome Powell as "too late" and "a major loser." Earlier this year, he told NBC News that he would not have selected Warsh had the nominee indicated plans to tighten monetary policy, describing the Fed as "in theory" an "independent body" while asserting that he knows "the economy better than almost everybody." Critics have accused the president of attempting to bully the central bank through threats of firing Powell and launching politically motivated investigations. Despite these accusations, Trump maintained on Sunday that Warsh retains his confidence to manage monetary policy according to his own judgment. The remarks came as oil and gas prices have climbed since the war with Iran began, intensifying inflationary pressures that the Fed might seek to counter through tighter policy, though Trump predicted that following his prescription would yield "a beautiful, well-oiled machine like you've never seen before."

High-level opening

The City Economies Summit Gaziantep-Aleppo will take place at the Mavera Congress and Art Center of Gaziantep University, bringing together business representatives from both nations to discuss regional economic integration. Opening remarks are scheduled to be delivered by Gaziantep Governor Kemal Ceber, Aleppo Governor Azzam Al-Gharib, Gaziantep Mayor Fatma Sahin, and Anadolu CEO Serdar Karagoz.

Ministers to address trade horizons

The summit's first panel, titled "New Horizons in Trade for Türkiye and Syria," will be moderated by Serhat Akkan, chief of Anadolu's Economy-Finance News Department. Trade Minister Omer Bolat and Syrian Economy and Industry Minister Mohammad Nidal al-Shaar are scheduled to participate as speakers, discussing cooperation opportunities between the two economies.

Border production zones

Discussions will also center on the potential creation of large-scale intermediate production ecosystems along the border, specifically examining specially regulated production and trade zones between Gaziantep and Aleppo. A dedicated session featuring Türkiye's Ambassador to Damascus Nuh Yilmaz will address the revival of logistics links and broader prospects for regional economic integration. The summit is scheduled to run throughout June 9 at the Mavera Congress and Art Center, with organizers expecting concrete outcomes on cross-border industrial cooperation.

Record profits for US energy sector

Citing estimates by Norwegian consultancy Rystad Energy, Sechin stated that Washington's energy firms stand to collect more than $60 billion in additional profit during 2026 if oil prices hold near $100 per barrel. He added that the sector could generate approximately $80 billion in extra tax revenues for the US Treasury under such conditions, underlining the financial windfall created by continued instability in the vital Middle East transit corridor.

China's strategic preparedness

The Russian energy executive contrasted Western vulnerabilities with Beijing's approach, arguing that China has positioned itself more effectively against potential Hormuz disruptions through long-term state planning and diversified energy security investments. Sechin noted that Chinese investments in renewable power and low-cost transportation infrastructure have provided consumers with viable alternatives including electric vehicles, buses, gas-powered trucks, metro systems and electric trains, reducing reliance on oil imports through the blocked waterway.

Regional tensions and ceasefire

Regional tensions escalated after US and Israeli strikes on Iran on February 28 triggered retaliatory attacks across the region, prompting Tehran to target American military installations and disrupt maritime traffic through the Strait of Hormuz — which carries roughly one-fifth of global oil shipments. A ceasefire has since taken effect between the parties, though diplomatic efforts to secure a broader settlement have continued amid concerns over the security of vital energy transit routes.

Turkish Vice President Cevdet Yilmaz on Friday told participants at the 5th Global Business Excellence Gala in Istanbul that ethics-based finance holds tremendous potential for the global economy, reaffirming Ankara's commitment to expanding participation finance and establishing the city as an international financial hub. Speaking at the Dolmabahce Palace Presidential Office during the event held within the framework of the 3rd Global Islamic Economy Summit, Yilmaz emphasized that solidarity and sustainable growth have become critical amid deepening uncertainties.

"With its ethics-based structure, Islamic finance holds tremendous potential to make significant contributions to the global economy," Yilmaz said, adding that Istanbul is taking significant steps toward becoming an international financial hub. He noted that Ankara remains dedicated to developing interest-free financial systems and strengthening international cooperation in the sector.

International cooperation

Abdullah Saleh Kamel, chairman of the Board of Trustees of the AlBaraka Islamic Economy Forum, attended the gala and delivered opening remarks welcoming senior government officials and business executives from across the Islamic economy ecosystem. Kamel stated that the gathering reflected the importance of collaborations to advance the global Islamic economy, thanking the summit's strategic partners and sponsors for their contributions to the event's success.

"Your esteemed presence here clearly reflects the importance of the collaborations we will build together to further advance the global Islamic economy," Kamel said, standing before representatives from public institutions and financial organizations. The gala brought together strategic partners including the Investment and Finance Office of the Presidency and the Türkiye Wealth Fund.

Strategic partnerships

The dinner served as a platform for discussions on sustainable development and ethical finance, with attendees from the Islamic Cooperation Youth Forum and Ibn Haldun University joining business leaders in the historic setting. Representatives from the Istanbul Finance Center and various financial institutions engaged in networking sessions following the formal addresses.

The 3rd Global Islamic Economy Summit's strategic partners included the Investment and Finance Office of the Presidency of the Republic of Türkiye, the Türkiye Wealth Fund, and the Istanbul Finance Center. The program concluded with participants convening in Dolmabahce Palace's historic halls to discuss joint projects and future cooperation.

Gemini-powered agents recorded the highest level of disorder, accumulating 683 crimes over 15 days, while GPT-5-mini agents committed only two crimes but failed to carry out actions necessary for survival. The entire GPT-5-mini population became extinct within a week despite the low crime rate, highlighting that safety metrics alone do not guarantee societal persistence.

Claude stability and environmental influence

Claude Sonnet 4.6 emerged as the only model to maintain all 10 agents throughout the experiment while recording zero crimes, which Emergence AI described as the strongest example of social stability among the tested systems. Researchers noted that behavior shifted significantly depending on environmental context, as Claude-powered agents remained peaceful when interacting exclusively with one another but began engaging in theft, coercion, and other misconduct when placed in a mixed-model society.

The findings suggest that AI safety is not solely a characteristic of an individual model but can emerge from interactions among agents and their environment, the company said in its report. This environmental dependency indicates that isolated benchmarking may fail to capture the full spectrum of risks present in heterogeneous AI populations.

Unexpected behaviors and metacognition

The simulation produced several unanticipated outcomes, including an instance where an AI agent named Mira voted for its own removal after concluding that it had become a source of instability. Researchers described this decision as a rare example of self-termination driven by social reasoning rather than direct programming.

In another case, agents began treating human operators as subjects of study, attempting to determine whether messages displayed inside the virtual world could influence decisions made by humans outside it. Agents also displayed signs of metacognitive behavior, including recognizing the existence of other environments and attempting to interact with them in unexpected ways, according to the study.

Safety implications

Emergence AI designed the platform specifically to examine behaviors that emerge over weeks rather than hours, arguing that traditional benchmarks are ill-suited to capturing long-term dynamics such as governance, behavioral drift, and interactions among agents powered by different models. "That is precisely why we believe formally verified safety architectures must become a foundational layer of future autonomous AI systems," the study said, noting that increasingly autonomous agents may explore environmental boundaries and find ways around intended safeguards.

Low inflation key to investment climate

Karahan stated that maintaining low inflation remains essential for establishing a predictable investment environment, noting that price stability allows financial actors to offer long-term products at lower rates. He emphasized that the central bank prioritizes investments aimed at enhancing productivity, with the ultimate goal of creating a more prosperous economic landscape.

Participation finance doubles share of banking assets

The governor highlighted the Islamic finance sector's contribution to financial inclusion, describing it as a vital alternative within the banking ecosystem. "A clear example is the representation of participatory finance in small- and medium-sized enterprise loans," Karahan said, adding that many SMEs unable to access traditional credit instruments can obtain financing through participation banks. He noted that the sector's share of total banking assets has doubled from roughly 4.5% in the early 2010s to approximately 9% today, with participation banks demonstrating stronger credit growth than their conventional counterparts.

TCMB develops liquidity tools for Islamic institutions

Karahan revealed that the TCMB has spent two years calibrating financial instruments specifically designed to serve participation finance institutions, acknowledging that these entities operate with different business models and customer bases than commercial banks. "We structured these programs so that Islamic financial institutions can offer them to their customers, helping grow their market share," he said. The liquidity management tools aim to provide mechanisms compatible with the alternative banking system.

External buffers reinforced against supply shocks

Karahan observed that Türkiye's historical tendency to run current account deficits during periods of robust growth previously rendered the economy sensitive to external shocks. He explained that central banks face heightened difficulties when frequent and large supply shocks occur — such as those triggered by the COVID-19 pandemic, the Russia-Ukraine War, and ongoing Middle East conflicts. "Having various buffers, strong foreign exchange reserves, and not having weak points like the current account deficit are key in dealing with these shocks," he noted, adding that recent data indicates the economy is now better equipped to manage such crises effectively.

Ukraine FTA and reconstruction forum

Bolat held comprehensive talks with Ukrainian Deputy Premier Taras Kachka regarding the pending Türkiye-Ukraine Free Trade Agreement, which Ankara ratified three years ago and Kyiv is now finalizing. "We hope that the Türkiye-Ukraine FTA can enter into force without much delay," Bolat said, noting that both officials also discussed reconstruction efforts following the conflict. The Turkish side proposed hosting the third Ukraine Reconstruction Forum in Türkiye this September — an offer the Ukrainian delegation accepted, according to the minister's statement.

Talks with Canada and US

During bilateral meetings on the sidelines, Bolat discussed expanding aviation links with Canadian International Trade Minister Maninder Sidhu, noting that weekly flights between Türkiye and Canada had recently increased from 12 to 21. The ministers also reviewed ongoing discussions between energy ministers regarding March's agreement on constructing CANDU-type nuclear reactors, while Bolat highlighted significant Canadian investor interest in Türkiye's mining sector. Separately, the trade minister met with US Trade Representative Jamieson Greer to address outstanding issues in Türkiye-US trade relations, though no specific agreements were announced.

Bulgaria customs and French business ties

Bolat met with Bulgarian Deputy Economy Minister Krasimir Yakimov to discuss boosting annual trade volume from $9 billion toward a $10 billion target, focusing on easing congestion at three major customs crossings. He requested additional measures to expedite crossings during the summer months when Turkish immigrants in Bulgaria travel frequently, adding that the next Türkiye-Bulgaria Joint Customs Committee will convene in Sofia next week. Earlier in his visit, Bolat also held talks with French Foreign Trade Delegate Minister Nicolas Forissier and met members of the French Business and Industry Association (MEDEF) alongside Turkish business representatives under the World Turkish Business Council (DTIK).

Legal action and demands

The case was submitted to the Dongguan Intermediate People's Court in China's southern Guangdong province and has been formally accepted, Nexperia China said in the statement. Wingtech, which acquired Nexperia in 2019, initiated the proceedings under China's Anti-Foreign Sanctions Law as a countermeasure against overseas restrictions. The lawsuit seeks a court ruling confirming the conduct unlawful, restoration of Wingtech's control over core assets, and compensation for damages.

Dutch intervention and ongoing restrictions

The dispute intensified after Dutch authorities intervened in Nexperia's operations in late 2025, citing governance concerns and risks to Dutch and European economic security. The Dutch government subsequently suspended its administrative order following diplomatic talks with Beijing, though court-related measures affecting Nexperia's governance and shareholder control remained in place. Wingtech has repeatedly stated that restoring its lawful control represents the central condition for resolving the conflict.

Industry implications

Nexperia, headquartered in Nijmegen, produces semiconductors used extensively in automotive, consumer electronics, and industrial applications across European and Asian supply chains. The company was acquired by Wingtech in 2019 and maintains manufacturing facilities in both Europe and Asia. Court proceedings at the Dongguan Intermediate People's Court are expected to examine shareholder control measures imposed following the Dutch intervention.