JPMorgan: Foreign capital, investors to show interest in Turkey during no-election period

Published 03.07.2019 00:15

Now that the latest municipal elections have been left behind, Turkey is embarking on a journey of over four years without elections. During this election-free period, Turkey will be sought after by international investors and foreign capital, according to JP Morgan Securities Board Chairman Winfried Bischoff. Economic policies to follow will clearly affect the investment climate in the country in this period, Bischoff told Anadolu Agency (AA). "But at the end of the day, what we can use as an opportunity is the investment itself, not the policy. Politics is, of course, important, but not as much as investments and investment climate. Politics should eliminate the concerns regarding whether investments can be reimbursed, as well as the problems between the employer and the employee," he noted.

Emphasizing that the ongoing trade wars between the U.S. and China will not result in a very worrisome outcome after the G20 meeting last weekend, Bischoff stated that the U.S. and China are still engaged in trade and that the two economic giants are looking at the issue at a macro level. He also stressed that the end of this conflict will benefit both countries.

Bischoff pointed out that there are some uncertainties about when and how trade wars will take shape. "It is unpredictable when the two countries will find a common path," he said. "In the trade wars that have been going on for the last three years, we can say that the first one winking is a stage behind the other side. So far, China seems to be on the 'first winking' side."

He added that there is a liquidity surplus in global markets and interest rates are at low levels.

"Banks, insurance companies, savings owners, and pension funds are affected by these low interest rates. The use of interest rates does not cause much distress but may lead to several other problems in the long run," he said.

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