The Ottoman fountains of Istanbul - At the beginning of the 20th century there were some 1,600 fountains in Istanbul and 100 years later there were only 400. Once their function was gone, neglect set in The Ottoman fountains of Istanbul At the head of a street in Cihangir is a small fountain. For years it was a decrepit, rundown, vine-clad ruin. Then one day there was a ribbon around it and workers busy cleaning it. Today it has returned to its original state although no water flows from it. It has a date of 1055 A.H. (1645-46) and the person who built it was named Ahmed Paşa. This must have been Tarhuncu Ahmed Paşa who served as a grand vizier under Sultan Mehmet IV. He is honored as a reformer for having done his best to put Ottoman finances on a better basis and his ability to “persuade” the wealthy to give up some properties and money they had taken illegally from the state. The repairs were carried out by the owner of a new apart-otel that was being constructed nearby out of an old apartment building and street front stores.>>

Turkey is one of the fastest growing economies in OECD, a manufacturing center and the energy hub of the region, in 2004 Turkey attracted approximately $3 billion FDI. In 2005, $10 billion, in 2006 $20 billion and in 2007, just under $22 billion. Last year, Turkey was 13th in the world in terms of FDI and fifth among emerging markets. The international image of Turkey in terms of a destination for investment is generally shaped by the diverse market opportunities, both domestic and export-oriented, that Turkey offers. At the end of 2006 Turkey had the world’s 17th-largest economy and the 6th-largest in the E.U., with continual GDP growth of 7.4% - one of the highest levels of growth on the continent. The potential of the markets covers over one billion consumers, including: a huge and growing domestic market (approx. 72 million); high-income European markets (approx. 600 million); emerging Russian, Caucasian and Central Asian markets (approx. 250 million); diverse and expanding Middle East and North Africa markets (approx. 160 million). >>

Monthly AT-A Glance : “ISE starts 2010 in the fast lane…”

Markets: Can Turkey avoid asset bubbles?
During January, the ISE is likely to test new highs with expectations of an IMF agreement and re-rating of Turkey by S&P following the Fitch and Moody’s upgrades. Yields are likely to stabilize at around 8% levels in January on the benchmark bond with IMF expectations and the re-rating of Turkey by rating agencies. Policy rates are expected to stabilize at current levels in 1H10 before the CBT starts to hike policy rates by 100-150 bps in 2H10. As a result, rates on the benchmark bond are likely to test 8% levels in 1H10 before rising to 10% levels by year-end. In the longer term, we are quite bullish on the markets. The only issue is that we've had such a huge rally since mid-March, and therefore worry about a pullback towards the end of 1H10 with higher political risks and rising US$ in international markets.

Which Sectors in 2010?
• Low interest rates should help the real estate market
• Building materials & autos will also benefit from low interest rates, but perhaps with a lag
• Privatization & M&As to revive again
• Positive medium term growth outlook for banks, but NIM compression is inevitable in the short term. Participation banks will have a relative advantage in
• Fertilizer sector is expected to improve operational profit >>