Türkiye is waiting for Qatar to send it a sale contract and ​a draft training program as part of its deal with Britain ⁠to procure Eurofighter ⁠Typhoon jets, the Defense Ministry said Thursday.

NATO allies Türkiye and Britain ​signed the deal for 20 ​jets last ⁠year, in a move aimed at deepening bilateral ties and bolstering Turkish air defenses. Ankara has said it was also seeking 24 more jets from Qatar and Oman.

Under the deal with Britain, Qatar and Oman can supply Türkiye with some of its ⁠own ⁠Typhoons, though that requires a separate sales contract.

At its weekly press briefing, the ministry said that talks on the procurement were continuing and that Turkish and Qatari delegations discussed technical and logistical matters in August and September. These included the scope of jets and ⁠ammunition to be procured, training for pilots and maintenance teams.

“It is expected for Qatar to prepare the draft ​training program and the sales contract to be sent ​to our country,” it said.

Britain, a leading partner in the Eurofighter program, had been Türkiye’s most vocal supporter, and the agreement followed long negotiations to overcome a German objection to the sale.

Türkiye’s interest in the Typhoons was first reported in 2022, as Ankara grew frustrated with prolonged negotiations over the acquisition of F-16 fighter jets from the U.S.

Türkiye is scheduled to receive the first of the batch of jets from the U.K. in 2030. The deal provides the option for the sale of more jets in the future.

Türkiye meanwhile signed an accord with Qatar, Pakistan and ⁠Indonesia on ‌Wednesday to ‌boost defense cooperation and strengthen defensive ⁠capabilities, including through joint ‌development and production.

The ministry added that its defense budget ​was increased for 2027 ⁠due to ongoing domestic defense ⁠industry projects for air defenses and platforms, Türkiye’s ⁠indigenous Kaan fighter jet program, drone development and shipbuilding.

The homegrown fifth-generation warplane is sought to replace the Air Force Command’s aging F-16 fleet, which is planned to be phased out starting in the 2030s.

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The premium investors demand to hold French government debt over safe-haven German Bunds widened to its highest level in 15 years on Thursday, as concerns about France’s strained public finances and ongoing street protests weighed on sentiment.

French ministers have promised a significantly expanded security operation for further planned protests on Saturday, with troops expected to be deployed alongside additional police.

France’s ​benchmark 10-year yield was last up 6.5 basis points at 5.06%, after ​earlier ⁠touching 5.1415%, its highest level since July 2002.

The spread over German Bunds expanded to 177.7 bps, its widest since November 2011 during the eurozone debt crisis, underscoring investor unease about France’s fiscal outlook.

The key question is whether the European Central Bank (ECB) would intervene if market tensions intensify, Nomura senior European economist Andrzej Szczepaniak said.

“We believe the bar for the ECB to intervene is very high,” said Szczepaniak.

“Things would have to worsen a lot from a contagion perspective before the ECB believes that the moves are sufficiently unwarranted and disorderly that they result in a hampering of the ECB’s monetary policy transmission.”

The selloff in French bonds has been driven by political uncertainty ahead of next year’s presidential election and difficulties in passing a ⁠budget.

“There ⁠exists a consensus that Europe is better equipped today to deal with crises, and that European institutions are stronger today than they were 15 years ago, which should make a European response easier to put together,” Citi economist Giada Giani said, comparing France’s position with that of eurozone peripheral economies during the early 2010s debt crisis.

“But re-emerging euroscepticism is a constraint here,” she added.

French bonds continued to weaken despite data showing an improvement in industrial sentiment in October.

ING economist Charlotte de Montpellier said the rise in business confidence was a welcome surprise given concerns about the political and economic impact of ⁠the unrest.

Bunds rise on safe-haven bids

Borrowing costs have risen this year as higher energy prices fuel expectations of tighter monetary policy, increasing pressure on highly indebted countries such as France.

Market expectations for ECB rate increases have remained broadly stable in recent ​weeks, pointing to about three additional rate hikes by late 2027.

Germany’s 10-year Bund yield, the eurozone benchmark, ​fell 7 bps to 3.34%, supported by safe-haven demand despite rising oil prices.

Brent crude futures climbed more than $2 a barrel after further Houthi attacks on Saudi Arabia, while natural gas prices rose ⁠to their ‌highest level ‌since December 2022.

Yield gaps over Bunds widened across the eurozone, with Belgium’s ⁠spread widening 10 bps to 110 bps, its highest since ‌2012, Italy’s rising 10.5 bps to 123 bps, Spain’s widening 6 bps to 70 bps and Greece’s increasing 8.5 bps to 106 ​bps.

Germany’s two-year yield, which is more ⁠sensitive to interest rate expectations, fell 6 bps to 3.02%.

ECB chief Christine Lagarde said ⁠late last month, when markets were pricing in almost four rate hikes by late 2027, that a ⁠moderate policy response remained appropriate.

Money ​markets were last pricing the ECB deposit rate at 3.15% by the end of 2027, implying two quarter-point rate increases and an 80% chance of a third.

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Türkiye and Canada opened a new chapter in bilateral relations Thursday, elevating their ties to a strategic partnership aimed at expanding trade, strengthening defense cooperation and deepening energy ties, as the two NATO allies seek to capitalize on their growing economic and security potential.

President Recep Tayyip Erdoğan and Canadian Prime Minister Mark Carney announced the partnership at a joint news conference following talks in Ankara, where they agreed to pursue a free trade agreement and outlined ambitious plans to increase bilateral trade to $5 billion initially and eventually $10 billion, up from approximately $3 billion.

Speaking at the news conference, Erdoğan described the agreement as a historic step toward unlocking the full potential of relations between the two countries.

“Today, we have alleviated the long-standing Türkiye-Canada disconnect. Now, we are starting a new era between Türkiye and Canada,” Erdoğan said.

The partnership will focus on four key areas: trade and investment, defense and security, energy, and people-to-people relations. It will be supported by a three-year action plan designed to translate political commitments into concrete economic and strategic cooperation.

Carney said Canadian and Turkish negotiators would convene in Ankara next month for the first round of free trade talks, marking a significant step toward reducing barriers to bilateral commerce.

“We’ve planted the seeds of something new: a strategic partnership that will create new opportunities for our workers and businesses, and greater security and prosperity for both our peoples,” Carney said.

“With care and commitment, it will grow for generations to come,” he added.

The Canadian leader described Türkiye as an exceptional partner, emphasizing its growing diplomatic influence, military capabilities and strategic position at the crossroads of Europe, Asia and the Middle East.

Carney highlighted Türkiye’s central role in efforts to resolve some of the world’s most difficult conflicts, including those involving Palestine, Ukraine and Iran.

He also praised Türkiye’s defense capabilities, noting that the country possesses NATO’s second-largest standing military and one of the world’s most innovative defense industries.

The Canadian prime minister said Ottawa was pursuing greater collective resilience through international partnerships rather than seeking economic self-sufficiency.

Defense, energy cooperation

Defense and energy emerged as major pillars of the agreements, reflecting Türkiye’s expanding defense industry and Canada’s interest in developing new strategic partnerships.

Erdoğan expressed hope that Canada’s proposed Defense, Security and Resilience Bank initiative would provide additional support for bilateral defense industry cooperation.

Türkiye, which has developed a rapidly expanding domestic defense sector, is seeking greater international investment, technology partnerships and access to new markets.

The two countries have also taken steps to overcome previous restrictions affecting defense trade. In 2024, Canada lifted export controls on certain military technologies destined for Türkiye, including optical equipment used in Turkish-made drones.

During Thursday’s meetings, Turkish and Canadian ministers signed agreements covering energy, defense and air transport cooperation.

Carney said the countries’ energy ministers would work together on liquefied natural gas (LNG), nuclear energy and critical minerals, sectors considered increasingly important for energy security and industrial competitiveness.

Türkiye has been exploring international partnerships for its planned second and third nuclear power plants, including discussions with Canadian engineering company AtkinsRéalis, South Korea’s Korea Electric Power Corporation and China’s State Power Investment Corporation.

The expanded partnership could create additional opportunities for Canadian participation in Türkiye’s nuclear energy ambitions and critical mineral development.

Economic cooperation will also extend beyond the two countries’ borders.

Carney said Export Development Canada and Türk Eximbank would conclude an agreement aimed at helping Canadian and Turkish companies collaborate on projects in third countries.

He is also scheduled to meet leading Turkish business executives and investors in Istanbul on Friday as part of efforts to deepen commercial engagement.

Canada diversifies trade partnerships

The agreement comes as Canada accelerates efforts to diversify its international trade relationships amid mounting economic tensions with the U.S.

Carney has embarked on a broad diplomatic and commercial initiative to reduce Canada’s dependence on the U.S. market following sweeping tariffs imposed by President Donald Trump and repeated tensions over bilateral relations.

Nearly 70% of Canadian exports continue to go to the U.S., underscoring the challenge facing Ottawa as it seeks to expand alternative markets.

The Canadian government has pursued more than 20 trade agreements over the past year as part of Carney’s broader objective of doubling exports to markets outside the U.S. over the next decade.

Despite its relatively modest share of Canada’s overall international trade, Türkiye has emerged as a potentially important partner because of its manufacturing capabilities, defense industry, energy requirements and access to regional markets.

Bilateral trade has increased by nearly 50% over the past five years, although Türkiye still accounts for less than 0.3% of Canada’s merchandise trade, valued at approximately 4.34 billion Canadian dollars ($3.09 billion).

Canada primarily exports agricultural products such as lentils, along with aircraft and electronic equipment, to Türkiye. Turkish exports to Canada include medical devices, aircraft engines, vessels and jewelry.

Erdoğan said the two countries were determined to build on this momentum and substantially increase commercial exchanges.

The Turkish president also praised Carney’s approach to international affairs, describing him as a leader demonstrating common sense and political acumen amid growing global uncertainty.

Türkiye and Canada sign 3 agreements

Following one-on-one and delegation-level talks at the Presidential Complex in Ankara, Türkiye and Canada signed three agreements in the presence of Erdoğan and Carney.

A memorandum of understanding on defense sector partnerships was signed by Turkish Defense Industries Presidency (SSB) head Haluk Görgün and Canadian Foreign Minister Anita Anand.

An air transport agreement was signed by Transport and Infrastructure Minister Abdulkadir Uraloğlu and Anand.

Meanwhile, a joint declaration on energy cooperation was signed by Energy and Natural Resources Minister Alparslan Bayraktar and Canadian Energy Minister Tim Hodgson.

For Ankara, closer ties with Ottawa offer opportunities to attract investment, expand defense partnerships and secure additional cooperation in advanced technologies and energy.

For Canada, the agreement represents another step toward building a more diversified network of economic and security partners beyond its traditional reliance on the United States.

Both leaders emphasized that the new strategic partnership was intended to produce lasting economic benefits and strengthen cooperation on regional and global challenges.

Türkiye is in an “advantageous” position regarding global indebtedness, Treasury and Finance Minister Mehmet Şimşek said Thursday, noting that the country’s low total debt level enhances its resilience to economic shocks.

“The ratio of total debt to global output has exceeded 300% globally and 230% in emerging markets. Türkiye is in an advantageous position in this respect,” Şimşek told the 19th Verona Eurasian Economic Forum held in Istanbul.

“The low level of indebtedness in Türkiye enhances its resilience to economic shocks. Thanks to low indebtedness, the ability to respond to economic shocks and sustain growth is higher,” he added.

His remarks came amid growing concerns about high public debt in some countries, including France, which has recently been rocked by massive nationwide protests and riots.

Speaking at the opening of the forum, Şimşek also evaluated the importance of connectivity amid global supply shocks, also suggesting that protectionism has become the new normal for the world economy since the global financial crisis.

The 19th Verona Eurasian Economic Forum kicked off in Istanbul on Thursday, bringing together political, diplomatic, academic, and business representatives from more than 30 countries. It is organized with the support of the Independent Industrialists and Businessmen’s Association (MÜSIAD) and Ibn Haldun University.

The two-day forum, held at the Çırağan Palace under the theme “Challenges of a Changing World and a Changing Economy,” was set to focus on major shifts in the global economy and geopolitical landscape.

The minister, as part of his remarks, also reiterated that Ankara’s approach regarding regional conflicts is to advocate for peace and stability, and he also underscored the importance of trade agreements and work on enhancing relations with more partners within the framework of “rules-based trade.”

On the question of debt, Şimşek noted that Türkiye’s budget deficit-to-GDP ratio is about half of the global average for emerging markets, and the public debt-to-GDP ratio is about one-third of that average.

Moreover, he mentioned that an aging population has become a significant global problem, stressing that the decline in fertility rates and the decrease in the working-age population pose new challenges for countries. However, he pointed out that Türkiye still, according to their calculations, has an 18-20 year window of opportunity in this respect, as its working-age population growth is still positive.

He also evaluated AI preparedness, noting that Türkiye is ahead of developing countries in terms of readiness for artificial intelligence, but not at the same level as advanced economies, and acknowledged that there is more to be done in this area.

On the broader macroeconomic picture, he reaffirmed the goal of taming inflation.

“We expect our national income to reach approximately $1.8 trillion this year at current exchange rates, and about $4 trillion based on purchasing power parity,” he said.

“(Despite our advantages), of course, we have challenges too. We are implementing holistic policies to overcome high inflation,” he said.

“As President Erdoğan and his team, we are business-friendly. If you choose to conduct all or part of your business in Türkiye, we want to assist you.”

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British banking giant Barclays said on Thursday it plans to cut around 5,000 jobs, or roughly 5% of its global workforce, by the end of the year in an AI efficiency drive.

The announcement came alongside an earnings update that showed Barclays’ net profit grew 13% in the third quarter, fuelled by surging income across its equities division.

Barclays said in an earnings presentation that it was implementing “organizational simplification and technology change efficiency driven by AI.”

“About 60% of the job losses relate to support functions, including fewer developers as AI makes our people more productive,” it added.

The bank’s profit after tax grew to 1.65 billion pounds ($2.2 billion) in the third quarter from 1.46 billion pounds in the July-September period a year earlier.

Barclays chief executive C. S. Venkatakrishnan noted “ongoing momentum of… operational and financial performance” and said the investment bank division “delivered strong equities performance.”

Revenue from equities jumped 47% year-over-year, while total group income for the quarter climbed three percent to 7.37 billion pounds.

Barclays’ share price was up slightly following the news updates.

The AI “announcement comes as the company failed to match expectations with its third-quarter performance – with the unveiling of a healthy share buyback failing to entirely ease investors’ disappointment,” noted AJ Bell investment director Russ Mould.

“Across the wider group, costs went up and Barclays shareholders are also having to contend with two major clouds over the business.

“The first being a widely expected increase in tax on the sector in next week’s (U.K.) budget and the other being a reported probe into possible misrepresentation of risks in its private credit portfolio.”

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Rising government borrowing costs across eurozone markets are reviving fears of a repeat of the debt crisis that rocked the bloc 15 years ago. Panic not, say analysts and investors: Banks are better prepared.

Shaky public finances in the past created a so-called doom loop. Losses on holdings of government debt hit lenders, in some instances forcing state-backed bailouts ⁠and a further drain on budgets.

Funding costs will rise, and market perceptions will ⁠matter, say analysts, as banks remain exposed to their countries’ fiscal fortunes. But capital buffers and tighter supervision should help banks weather the turmoil, according to investors, analysts and data collated by Reuters.

“There is a limit to which you can insulate yourself from the domestic credit,” said Simon Ainsworth, a senior banking analyst at Moody’s ​Ratings. “Banks come from a better starting point, but they are not immune.”

Since the 2010s crisis, the bloc has revamped banking supervision ​and ⁠armed the European Central Bank (ECB) with tools to intervene, while banks have improved their defences, helped by years of record profits.

Yet sovereign concerns contributed to a 10% drop in European bank stocks over the past six weeks – five times the wider market’s fall – a decline that follows a prolonged rally to 16-year highs.

For France’s top three lenders, the fall has been 17% over the same period.

With its debt costs hitting 25-year highs amid a large deficit, social unrest and a 2027 presidential election where far-right and far-left candidates lead opinion polls, the eurozone’s second-largest economy is in the eye of the storm.

Safe assets

Banks are allowed to treat government bonds as risk-free assets on their books. They count toward regulatory liquidity requirements and are used as collateral to borrow from central banks and other lenders.

Eurozone banks’ net sovereign bond holdings have doubled since the crisis, reaching 4.3 trillion euros ($4.8 trillion) at the end of June, a Reuters analysis of European Banking Authority (EBA) data showed.

However, banks’ capital buffers have risen even more, lowering the ratio of sovereign holdings to capital lenders keep to cover potential losses below 2.5 from 2.7 in 2013.

The lower the ratio, the greater the banks’ ability to sustain the hit from falling sovereign bond prices.

Both Axiom Alternative Investments Chief Investment Officer David Benamou ⁠and ⁠WisdomTree equity strategist Aneeka Gupta calculated that exposure to domestic debt for large French banks stands at roughly 15% to 30% of their best-quality capital.

That compares with more than 100% for banks in Italy in 2011-2012, the country at the forefront of the crisis then, Gupta said.

Still, falling government bond prices – which move inversely to yields – can saddle banks with losses if lenders need to align the book value of their bonds to market prices, or sell them to raise cash.

Proposals to strip government bonds of risk-free status or impose concentration limits have so far failed. But the European Commission has included further diversification of sovereign bond portfolios among steps needed to strengthen the banking sector, and will present its proposals in early 2027.

Holding to maturity

Even without formal rules, the ECB has prodded eurozone banks to reduce exposure to their home country’s debt.

Domestic government bond holdings accounted for 41% of the total in mid-2026, the Reuters analysis of the EBA data showed, compared with more than 50% in 2013.

Also, banks have tripled ⁠to 60% the proportion of their bonds they value at cost – an accounting rule that enables lenders not to record losses when market prices fall.

By classifying bonds as financial assets “held to maturity,” banks can avoid booking capital-depleting losses on their holdings, unless they are forced to sell, a risk which Moody’s Ainsworth said had shrunk because lenders rely less today on short-term funding.

Still, for Morningstar DBRS analyst Maria Rivas, the key question for ​banks is how investors view portfolios carrying unrealized losses regardless of the accounting considerations.

“If this is a temporary situation, it should not significantly affect investor sentiment. However, if it lasts over ​time, it could weigh on risk perception,” she told Reuters.

‘Battle-tested mechanisms’

Christos Megalou, CEO of Greek bank Piraeus, expects more volatility in government bonds but plays down the risk that it could snowball into a crisis.

Greece is now servicing its debts at average rates significantly below where Britain is borrowing today, he told Reuters, a ⁠sea change from a decade ‌ago, when the ‌country was recovering from a financial crisis and a string of bailouts.

France, now in the spotlight, is also in a ⁠different position than Greece was back then. “France is a very big economy and therefore has a lot of ‌triggers to pull,” Megalou said.

“The regulators, the policymakers, but also the banks, have battle-tested mechanisms to make sure that, most likely, we will not have a similar mega-problem again,” he added. “Obviously we are doing stress tests in our portfolio all ​the time.”

Yet higher sovereign bond yields can hurt banks ⁠more directly by raising their funding costs because they come at a premium to government borrowing rates.

French banks are the largest wholesale ⁠debt issuers in the EU, so a permanently higher yield would raise their “cost of money every time they refinance, and that compounds,” WisdomTree’s Gupta said.

A former senior banking supervisor, speaking on ⁠the condition of anonymity, agrees with that ​assessment.

Banks are competing more aggressively for deposits, a reflection of the funding pressures, and the outlook for the sector will ultimately depend, at least in part, on perceptions, the person said.