Economy
12 countries move to restrict trade with illegal Israeli settlements
Eleven European countries and Canada announced plans Tuesday to impose national restrictions on trade in goods with illegal Israeli settlements, French Foreign Minister Jean-Noel Barrot said, stepping up economic pressure over Israel’s unlawful settlement expansion.
“Today, France, the United Kingdom, Canada, Denmark, Spain, Finland, Ireland, Iceland, Norway, Poland, Portugal and Sweden confirm their intention to impose national restrictions on trade in goods with settlements that are illegal under international law and/or to support European restrictions to this effect,” said a joint declaration issued by Barrot.
The statement reaffirmed that the 12 countries are “seriously considering” adopting such restrictions or other measures in accordance with their national procedures.
“In this regard, France, the United Kingdom and Canada welcome the significant measures already taken by Ireland, Spain, the Netherlands, Norway and Belgium, and will propose national measures to prohibit trade in goods originating from settlements,” it added.
The declaration decried actions taken by the Israeli government in the West Bank that undermine the possibility of a two-state solution.
“The situation is rapidly deteriorating as settler violence and settlement expansion have reached unprecedented levels, including the unacceptable decision to issue tenders for the E1 settlement project,” it underscored.
They also stressed the need for protecting the possibility of a two-state solution and vowed their determination to work for a just and lasting peace.
“We firmly oppose any action resulting in the annexation of Palestinian land and the forced displacement of Palestinian populations,” the declaration said.
It further urged Israel to immediately halt the expansion of illegal settlements and civilian administrative powers while ensuring that settlers responsible for violence are held accountable for their actions and investigating allegations involving Israeli forces.
Britain, French and Canadian leaders said Tuesday that sanctions mark a “further turning” point in their approach to protecting the two-state solution, following penalties on illegal Israeli settlers in the occupied West Bank.
Andy Burnham, Emmanuel Macron and Mark Carney said in a joint statement that a two-state solution to the Israeli-Palestinian conflict is “critical” for peace, stability and security in the Middle East and beyond.
They noted that it is a “fundamental national interest” for the U.K., France and Canada to protect and secure that outcome.
“Systematic settlement expansion in the West Bank, including the Government of Israel’s latest decision to progress the E1 settlement, as well as the dramatic increase in settler violence, pose a direct and urgent threat to that vision for peace,” it said,
Noting that they recognized the state of Palestine one year ago, the leaders said the time has come to take further action to uphold their commitment to protect the two-state solution, their interests and to stand up for their values, “before it is too late.”
“Settlements are illegal under international law. The U.K., France and Canada will therefore take steps to ban the importation of goods from settlements and enforce targeted measures against settlements and those who facilitate them or profit from them.”
Referring to the move to impose a trade ban targeting illegal settlements in the occupied West Bank, the statement said Tuesday marks a “further turning point” in their approach to protecting the two-state solution.
“We will co-chair a meeting at the United Nations General Assembly later this month to advance our efforts and pursue peace,” it added.
Many people were too frightened to speak publicly about Elon Musk, director Alex Gibney said on Tuesday, as he unveiled his marathon documentary about the billionaire entrepreneur at the Venice Film Festival.
Gibney has made films about powerful people, corporations and organizations before: Enron, Elizabeth Holmes, Scientology and the U.S. military’s abuses at Bagram and Abu Ghraib are just a few. And yet, he said, nothing compares to the scope of power held by his latest subject.
With a nearly four-hour runtime, “Musk” is having its world premiere this week at the Venice Film Festival. It’s one of the most hotly anticipated of the festival and the year – Bleecker Street is releasing it in theaters in October.
The movie charts Musk’s rise from the dotcom era to become one of the world’s most influential figures, questioning how an unelected tech titan came to wield such sway over politics and public debate.
“There was a tremendous sense of fear of talking, really almost existential fear, both among people who were his critics, people who were his business colleagues and people who are his friends,” Gibney told Reuters.
“I talked to many, many, many, many people who, except for some of the brave people who are here, declined to speak.”
The Tesla and SpaceX chief has dismissed the film, writing on his social media platform X this month that Gibney was biased and was “obviously going to make the most convincingly terrible hit piece on me that he can possibly think of.”
Hooking up with Trump
Joined by journalist Zoe Schiffer and Ashley St. Clair, Musk’s former partner and the mother of one of his many children, Gibney said he began work on the project in 2023 and had originally planned a less ambitious movie.
“We intended to make a shorter film before Elon Musk became wrapped in the career of Donald Trump and the presidency of the United States,” Gibney said. He added that the first thing he did was to contact Musk, who declined to be interviewed.
Gibney, whose previous subjects have included the collapse of energy firm Enron and Scientology, said Musk’s ascent was “the story of the confidence man” whose empire was built on an ability to sell inflated visions and hyped-up promises.
Without necessarily presenting any new bombshells, the film links Musk’s takeover of Twitter, his government cost-cutting drive and his reliance on federal contracts to the creation of unprecedented power and wealth in the hands of just one man.
Global political agenda
The documentary uses an AI-generated version of Musk that speaks words he has uttered over the years. Asked whether he expected legal challenges, Gibney said: “We consulted our lawyers, and they gave us a sign-off to go forward.”
After embracing Trump’s MAGA movement, the film shows Musk’s growing support for far-right political causes internationally, including the surging Alternative for Germany (AfD) party.
“I think he’s pursuing a global right-wing agenda, both for ideological and for very practical and monetary reasons,” said Gibney, adding that Musk was “extremely” dangerous to world democracy.
He also offered an unflattering assessment of the billionaire’s character. “I would say he has a very difficult time with empathy,” the director said.
St. Clair, who revealed in the documentary that she had turned down a $40 million non-disclosure agreement after her relationship with Musk ended, echoed the criticism.
“His most complicated relationship is with the truth,” she said. In the film, she says simply: “Elon is a nuke.”
“Musk” is being shown out of competition at the Venice festival, which runs until Sept. 12.
Economic policymakers aim to continue implementing policies aimed at reducing the attractiveness of foreign-currency deposits, while increasing the share of Turkish lira and extending their maturities during the new Medium-Term Program (MTP) period.
Turkish officials unveiled on Sunday the new economic program covering the 2027-2029 period, seeking to curb inflation and ensure sustainable growth, while also supporting manufacturing, local agricultural development and boosting high-tech exports.
At the same time, the officials aim to maintain the attractiveness of the Turkish lira.
According to the MTP, Turkish-lira-denominated investment instruments will be encouraged, policies aligned with monetary policy regarding credit growth will be maintained and financing conditions for investment- and export-oriented activities will be improved, a report by Anadolu Agency (AA) indicated on Tuesday.
In 2026, when international financial markets experienced periods of excessive volatility due to global uncertainty and geopolitical risks, the Central Bank of the Republic of Türkiye (CBRT) encouraged a shift toward the Turkish lira through macroprudential policy measures used as a tool supporting the disinflation process and monetary policy, while ensuring that credit growth remained at levels consistent with inflation.
Within this framework, in January, the growth limit on FX loans was tightened, while a growth limit was also introduced for the limits on consumer overdraft accounts (KMH).
In March, the scope of loans exempted from the reserve requirement framework based on credit growth was narrowed. Moreover, at the end of May, growth limits were reduced for consumer loans and vehicle loans extended to individuals, KMH limits, and Turkish-lira commercial loans.
As a result of the reduction in the growth limit for FX loans, the annualized increase in FX commercial loans, adjusted for exchange-rate effects, declined to 11.2% as of Aug. 28.
In addition, in January, reserve requirement ratios were increased for funds obtained through Turkish-lira-denominated repo transactions with nonresidents and for loans obtained from abroad.
Macroprudential regulations also helped balance household indebtedness, while growth in individual credit cards and KMH slowed.
Accordingly, Turkish lira deposits became more prominent among household assets, while the rapid increase in precious metal prices led to a higher share of precious metal accounts within FX deposits.
At the same time, the banking sector’s nonperforming loan ratio rose from 2.2% to 2.9% as of July 2026 compared with the same period of the previous year, but it continued to remain below its historical average. The increase was driven by higher outstanding balances on loans to small and medium-sized enterprises (SMEs), consumer loans, and individual credit cards.
The banking sector’s stable profitability structure continued to be the most important factor supporting capital adequacy, while temporary flexibilities used in calculating the Capital Adequacy Ratio (CAR) were phased out as of 2026.
As part of the exit strategy from the KKM scheme, the opening and renewal of accounts for individuals were terminated as of Aug. 23, 2025. Following the decision, the balance of KKM accounts held by individuals, which stood at $9.6 billion, was completely eliminated by August 2026.
Within this framework, as the KKM balance – which had reached a 26.2% share of total deposits in August 2023 – was phased out, the share of Turkish lira deposits in total deposits increased to 61.5% as of Aug. 28, 2026.
On Sunday, Vice President Cevdet Yılmaz also pointed to the increase in Turkish lira deposits.
“Within the framework of the policies we have implemented, confidence in the Turkish lira has continued to increase,” he suggested.
“The rise in the share of TL deposits in total deposits from 31.6% to 61.5% as of Aug. 28 has been a concrete indication that the policies we have been pursuing are right,” he noted.
Türkiye’s national flag carrier announced Tuesday that it would become Liverpool’s main club partner starting next season, in a record deal reportedly worth more than $400 million.
Turkish Airlines (THY) will replace Standard Chartered, the Premier League club’s main club partner for about 17 years, on the front of men’s, women’s and academy match shirts from the start of the 2027-28 season, the sides said.
“From June 2027, Turkish Airlines will become Liverpool FC’s main club partner, bringing together two organizations with a shared international reach and a commitment to connecting people around the world,” the club said.
“LFC’s supporter base spans every continent, while Turkish Airlines connects east and west through the world’s most extensive international flight network, flying to more countries than any other airline from its Istanbul hub.”
The five-year agreement is worth more than 300 million pounds ($405 million), or over 60 million pounds per season, according to reports. That’s higher than the current deal with Standard Chartered said to be worth around 50 million pounds per season.
British media, including the BBC and the Guardian, said the agreement would be the most valuable front-of-shirt-only commercial deal in Premier League history.
“This is a milestone announcement for us and we are delighted to welcome Turkish Airlines as our main club partner from June 2027,” Liverpool Chief Commercial Officer Ben Latty said.
The club said the new partnership will also mark a significant moment in the history of the LFC shirt.
“The front of the shirt is one of the most recognizable positions in world sport and one that the club has historically reserved for long-term and meaningful partnerships,” said the statement.
Latty described Turkish Airlines as a globally recognized organization with an extensive international network, and said they “look forward to beginning our partnership and building a strong relationship together, with already strong foundations built from those special memories back in 2005.”
He was referring to Liverpool’s memorable UEFA Champions League triumph over AC Milan in Istanbul.
Turkish Airlines CEO Ahmet Olmuştur described Liverpool as “one of the world’s most recognized and respected football clubs, with an exceptional heritage and a truly global community of supporters.”
“We are very pleased that Turkish Airlines will become the club’s main club partner and that our name will take its place on one of the most iconic shirts in world sport,” he added.
Standard Chartered, Liverpool’s main club partner since 2010, will retain its current role through the 2026-27 season, and then move into a global partnership role the next year, the club said.
When new CEO John Ternus takes the stage Wednesday, Wall Street will be watching to see whether Apple can still produce game-changing hardware and turn virtual assistant Siri into a real contender in the AI race.
Analysts expect Apple to announce at its Cupertino, California, headquarters a new iPhone that folds open like a passport. They said it could quickly emerge as the category leader in the nascent folding phone market, despite an expected price of more than $2,500 and having cameras and processors that may not lead the market.
The company has already announced a deep overhaul of Siri – in part by tapping Google’s AI tech behind the scenes – and that may prove to be Ternus’ first big success after years of delays. A successful revamp by the end of this year could give Apple a good chance of pulling even with longtime rival Google’s Gemini assistant, analysts said.
Investors have largely looked past Apple’s slow start in generative AI because of the company’s billion-plus device installed base and loyal customer base. Ternus now faces pressure to convince consumers that Apple’s devices are the best way to use AI, which could determine whether he inherits former CEO Tim Cook’s momentum or plays catch-up.
New premium iPhones
Apple is expected to update its premium iPhone Pro and Pro Max devices but hold off on refreshing the iPhone Air and the base and budget lines until spring. The aim is to drive interest in the real star of this week’s show, the folding phone.
“Even with a $2,500 price tag, the Apple foldable is going to fly off the shelves, especially because Apple is excellent at creating an aura of exclusivity, luxury, and scarcity,” Nabila Popal, senior research director at IDC, told Reuters.
Popal expects the phone to generate more than $45 billion in revenue for Apple by the end of next year, even as foldables overall remain a single-digit share of the phone market.
The main appeal of a folding phone is the sheer newness after nearly two decades of candybar-style phones.
While Samsung, Google and China’s Huawei have sold folding phones since 2019, analysts expect Apple to benefit from entering late by solving key engineering challenges, such as a hinge that feels sturdy over thousands of uses and minimizing any crease in the screen when the device is open.
“They’ve seen what has worked and what hasn’t worked with their competitors,” said Anshel Sag, an analyst at Moor Insights & Strategy who has tested many folding devices.
New Siri’s big moment
Ternus’ key challenge will be persuading customers to adopt the new Siri and convincing them and third-party developers that Apple can keep pace with rivals such as OpenAI, which roll out big improvements every few weeks, while Apple has traditionally moved more slowly.
“If Siri still sucked, then he would have a much more difficult Wednesday,” said Carolina Milanesi of Creative Strategies. “Now they can comfortably say Siri is delivering and has value, but they need to just continue to work and make it better and keep up.”
Analysts say Ternus, who kept a low profile as hardware engineering chief for five years, is likely to focus on delivering powerful devices as a base to expand on-device AI.
But he faces a steep regulatory challenge, said Gene Munster of Deepwater Asset Management: Apple’s Siri update might take until 2028 to win approval in China and won’t initially be available in Europe due to a regulatory dispute.
“It matters a lot that they get the U.S. out in time because it builds the confidence that they can do something in Europe,” he said.
The Asian Infrastructure Investment Bank (AIIB) announced recently it would be providing up to $75 million in financing to establish an advanced green manufacturing facility in northwestern Türkiye, further expanding its support and portfolio in the country.
The AIIB made another investment as part of ongoing efforts to develop Türkiye’s advanced technology and green manufacturing capacity.
The advanced plant planned to be built in the northwestern province of Kırklareli will be established by Chinese manufacturer Great Rich Technology (GRT), marking the firm’s first production base outside China.
The facility will be co-financed by the World Bank Group’s International Finance Corporation (IFC), and it will produce energy-efficient window films, paint protection films, and specialized materials to absorb carbon dioxide and volatile organic compounds.
The investment aims to reduce industrial emissions, expand the availability of low-emission advanced materials in emerging markets, and help solidify Türkiye’s position as a manufacturing hub bridging Europe, Asia and other neighboring markets.
Ajay Bushan Pandey, vice president of the AIIB, told Anadolu Agency (AA) in remarks published on Tuesday that the bank made its second-largest investment among all its members in Türkiye over the past decade.
“$9 billion and about 40 projects we have invested in, and then there are many more projects in the pipeline,” he said.
“We have our second-largest investment in Türkiye, (and) the only country that is first is India, … but if you look at it per capita-wise, I think Türkiye will be the highest.”
Pandey stated that investments in Türkiye are carried out via public- and private-sector entities and local financial institutions, with the AIIB having a wide range of established partnerships with other development banks in the country.
He noted that Türkiye remains committed to contributing to infrastructure development in the public and private sectors, as there is massive potential to implement more projects and secure additional financing, while the bank provides funding for projects directly or organizes financing through collaboration with development banks or financial institutions within the country.
Pandey suggested that the AIIB’s current portfolio is more concentrated in energy, transportation, waste management, urban development and climate resilience, while the bank has also approved a geothermal project for Türkiye.
“If you look at COP31 (or the U.N. Climate Change Conference), these are the themes: sustainable cities, electrification and zero waste – all those are already in our portfolio, and these are the portfolios where we would like to do more,” he said.
He noted that energy security has become a key area in the current geopolitical situation, with “every country looking for energy security.”
“And if you are talking about energy security, then renewable energy and electrification are a very, very integral part of your energy security policy, and this is precisely what Türkiye is currently focusing on,” he said.
Pandey stated that the bank aims to boost its portfolio in Türkiye, as “there is no limitation or target” when it comes to implementing projects in the country.
“If we are able to identify good projects along with the Turkish government, we can finance them; therefore, we do not have any such target or limitation – let’s say if we are able to identify 10 projects, we will try to finance all 10 over the next few years,” he said.
He noted that seeking solutions to climate issues is key to developing infrastructure.
“We have seen that there is a huge gap between what Asian infrastructure will require over the next few years and how much money is available, that is why the role of MDBs (multilateral development banks) can become very important,” he said.
“Because MDBs can actually help address the gap through their own balance sheet, or they can mobilize enough private capital through financial instruments to bridge that gap – MDBs can also actually help in identifying projects, structuring the projects, and making them bankable so that they are able to get financed from various sources.”
“The MDBs, or private capital, can flow in, or instruments like guarantees and credit enhancements,” he added.
Demand conditions in key export markets for Turkish manufacturers have improved at their fastest pace since May 2024, supported by robust activity in the U.S. and ongoing recovery in the Middle East, a survey showed Tuesday.
The Türkiye Manufacturing Export Climate Index, compiled by the Istanbul Chamber of Industry (ISO) and S&P Global, rose to 52.7 in August from 52.2 in July, marking the fourth consecutive month of increase.
Readings above 50 indicate improving business conditions in the main export destinations, while those below point to deterioration.
The index is calculated by weighting manufacturing Purchasing Managers’ Index indices from national PMI surveys according to each market’s share of Türkiye’s manufacturing exports.
Andrew Harker, economics director at S&P Global Market Intelligence, said global economic growth appeared to be strengthening as the third quarter progressed, potentially supporting Turkish manufacturers’ overseas business volumes.
The strong improvement in demand conditions is driven by two key regions, including the U.S., where output growth reached its highest level in around 4.5 years, and the Middle East, where the recovery trend has continued following the outbreak of the Iran war.
Growth across European markets remained more moderate, said Harker, but an acceleration in the region in the coming months could create further opportunities for Turkish manufacturers.
U.S. output hits 52-month high
Manufacturing output in the United States, which accounts for about 6% of Türkiye’s manufacturing export market, rose strongly in August, with the pace of growth reaching its highest level in 52 months.
Economic activity across Europe generally expanded at a more moderate pace. Germany and Britain recorded a second consecutive monthly increase in activity, with growth accelerating from July although remaining modest.
The Netherlands and Spain recorded marked increases in economic activity in August, while Italy saw strong expansion, with its growth rate reaching its highest level since November 2025.
Romania recorded its fastest increase in output in 27 months.
Among major export markets covered by the survey, France and Poland were the only countries where economic activity weakened. Output declines in both countries accelerated from July.
Middle East recovery
Economic activity generally improved across the Middle East in August.
Output growth in the United Arab Emirates (UAE) reached its highest level in six months, while Saudi Arabia recorded its strongest growth in seven months. Both countries posted output increases among the strongest globally.
Kuwait also recorded its strongest growth since before the war in the region began.
Output continued to decline in Qatar and Egypt, while economic activity in Lebanon was broadly unchanged.
Among all countries covered by the survey, Zambia recorded the steepest contraction in output in August, as economic activity slowed sharply during the election period.
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