Türkiye’s industrial output registered its fastest annual growth in nearly one and a half years in June on the back of strong manufacturing growth, official data showed on Monday.

The industrial production index expanded 8.3% on a yearly basis, following a 5% rise in May, the Turkish Statistical Institute (TurkStat) reported.

This was the fastest growth since February 2024, when output surged 11.2%.

Industry and Technology Mehmet Fatih Kacır said the highest increase in the industrial production index occurred in the high-tech product group.

Of the 12 sub-sectors measured, 10 posted annual rises, while two declined.

The high technology index soared 88.2%, capital goods climbed 20% and manufacturing rose 9.5% compared to June last year.

However, the durable consumer goods index declined by 1.4% annually, and the electricity, gas and steam index decreased by 1.1%.

Kacır said the data showed industrialists continued strong production.

“In June, the industrial production index rose by 8.3% annually. The monthly increase was recorded at 0.7%. The highest growth was seen in the high-tech product group,” he wrote on the social media platform X.

“With value-added production, employment-supporting measures and exports, we will continue to accelerate Türkiye’s development.”

Monthly, overall industrial production expanded 0.7% in June, the TurkStat said, slower than the 3.2% rebound in the previous month.

Of the 12 sub-sectors measured, six posted monthly rises, while the other six declined.

Among the monthly figures, high-technology production surged 38.1%, capital goods rose 4.8%, and the electricity, gas and steam index gained 1.9%.

Meanwhile, production in mining and quarrying declined 5% month-over-month, durable consumer goods fell 4.4% and medium-high technology was down 3.5% in June.

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From fast food giant McDonald’s to Coca-Cola, Amazon and Apple, major U.S.-based multinationals are facing calls for a boycott in India as business executives and Prime Minister Narendra Modi’s supporters raise anti-American sentiment to protest against U.S. tariffs.

India, the world’s most populous nation, is a key market for American brands that have rapidly expanded to target a growing base of affluent consumers, many of whom remain infatuated with international labels seen as symbols of moving up in life.

India, for example, is the biggest market by users for Meta’s WhatsApp and Domino’s has more restaurants than any other brand in the country. Beverages like Pepsi and Coca-Cola often dominate store shelves, and people still queue up when a new Apple store opens or a Starbucks cafe doles out discounts.

Although there was no immediate indication of sales being hit, there’s a growing chorus both on social media and offline to buy local and ditch American products after U.S. President Donald Trump imposed a 50% tariff on goods from India, rattling exporters and damaging ties between New Delhi and Washington.

McDonald’s, Coca-Cola, Amazon and Apple did not immediately respond to Reuters queries.

Manish Chowdhary, co-founder of India’s Wow Skin Science, took to LinkedIn with a video message urging support for farmers and startups to make “Made in India” a “global obsession,” and to learn from South Korea, whose food and beauty products are famous worldwide.

“We have lined up for products from thousands of miles away. We have proudly spent on brands that we don’t own, while our own makers fight for attention in their own country,” he said.

Rahm Shastry, CEO of India’s DriveU, which provides a car driver on call service, wrote on LinkedIn: “India should have its own home-grown Twitter/Google/YouTube/WhatsApp/FB – like China has.”

To be fair, Indian retail companies give foreign brands like Starbucks stiff competition in the domestic market, but going global has been a challenge. Indian IT services firms, however, have become deeply entrenched in the global economy, with the likes of TCS and Infosys providing software solutions to clients worldwide.

On Sunday, Modi made a “special appeal” for becoming self-reliant, telling a gathering in Bengaluru that Indian technology companies made products for the world but “now is the time for us to give more priority to India’s needs.”

He did not name any company.

Don’t drag my McPuff into it

Even as anti-American protests simmer, Tesla launched its second showroom in India in New Delhi, with Monday’s opening attended by Indian commerce ministry officials and U.S. embassy officials.

The Swadeshi Jagran Manch group, which is linked to Modi’s Bharatiya Janata Party (BJP), took out small public rallies across India on Sunday, urging people to boycott American brands.

“People are now looking at Indian products. It will take some time to fructify,” Ashwani Mahajan, the group’s co-convenor, told Reuters. “This is a call for nationalism, patriotism.”

He also shared with Reuters a table his group is circulating on WhatsApp, listing Indian brands of bath soaps, toothpaste and cold drinks that people could choose over foreign ones.

On social media, one of the group’s campaigns is a graphic titled “Boycott foreign food chains,” with logos of McDonald’s and many other restaurant brands.

In Uttar Pradesh, Rajat Gupta, 37, who was dining at a McDonald’s in Lucknow on Monday, said he wasn’t concerned about the tariff protests and simply enjoyed the 49-rupee ($0.55) coffee he considered good value for money.

“Tariffs are a matter of diplomacy and my McPuff, coffee should not be dragged into it,” he said.

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Japan’s mounting political uncertainty could extend policy paralysis, potentially affecting the drafting of next year’s budget and the timing of the central bank’s next interest rate hike, analysts warn, further clouding the outlook for the fragile economy.

Prime Minister Shigeru Ishiba is facing increased calls from within his ruling Liberal Democratic Party (LDP) to step down and take responsibility for the party’s huge defeat in an upper house election in July and a lower house poll last year.

While Ishiba has denied he has any plans to resign, his fading support has triggered inevitable questions about his political future, and analysts say a leadership change would likely have implications for the outlook for fiscal and monetary policy.

In a meeting on Friday, lawmakers decided to consider holding a rare leadership race even with the party head Ishiba still presiding. Under LDP rules, such a race would take place if the majority of the party’s lawmakers and regional heads agreed to hold one.

But it is uncertain how long it would take for the party to decide, according to lawmakers and government officials familiar with the procedure told Reuters.

That contest could happen in September at the earliest, they say, which would allow the new administration to compile a spending package to cushion the economic blow from U.S. tariffs.

But if the race does not take place in September, it may have to wait until early next year to avoid disrupting the government’s drafting of next fiscal year’s budget, they say.

“We would not be surprised if the LDP calls for a leadership election in September,” UBS analysts said in a research note. “It seems that uncertainties regarding politics are unlikely to resolve soon.”

In Japan, the Ministry of Finance collects spending requests from ministries in August and finalizes the government’s draft budget in late December. The budget must pass parliament in time to take effect from the April start of a new fiscal year.

Failure to pass the budget through parliament would force the government to compile a stopgap budget, which could hurt the economy by causing delays in expenditure.

Some ruling party lawmakers say there is no choice but for Ishiba to step down to resolve the deadlock.

Having lost control in both houses of parliament, the LDP-led ruling coalition needs opposition party support to pass legislation and the budget through parliament. Opposition parties have ruled out forming a coalition unless Ishiba steps down.

“Japan needs a stable coalition government. Otherwise, it’s impossible to pursue consistent policies,” LDP heavyweight Ken Saito told Reuters last week. “It’s best for the LDP to seek a coalition partner under a new leader.”

Complication for BOJ

Ishiba’s weak political standing and prolonged political uncertainty also complicate the Bank of Japan’s (BOJ) decision on how soon to resume interest rate hikes.

While few analysts expect the BOJ to hike rates at its next policy meeting in September, some see a good chance of action in October, December, or January next year when more data becomes available on the impact of U.S. tariffs on the economy.

Known as a fiscal hawk, Ishiba has endorsed the central bank’s efforts to gradually wean the economy off a decadelong, massive stimulus as inflation remains above its 2% target for well over three years.

But his bitter election defeat has made his administration vulnerable to calls for big spending and loose monetary policy.

Many opposition parties have urged the BOJ to hold off, or go slow, in raising rates and focus on supporting the economy.

If the LDP were to hold a leadership race, the event could put the spotlight on the views of candidates like Sanae Takaichi, a reflationist-minded lawmaker who in the past blasted the idea of interest rate hikes as “stupid.”

All this could discourage the BOJ from raising rates in the coming months to avoid drawing unwanted political attention.

“All we can say is that we would continue to take appropriate policies to sustainably and stably achieve our 2% inflation target,” Governor Kazuo Ueda told a news briefing earlier this month, when asked how the BOJ would respond if political changes lead to fresh demands on monetary policy.

“It’s impossible to predict how politics will unfold, which means for the BOJ it’s best to take a wait-and-see stance,” said a source familiar with the bank’s thinking.

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Music streaming giant Spotify has launched an internal investigation into its editors in Türkiye following allegations of bribery linked to the platform’s local charts, a report said Monday.

The move comes after mounting criticism from Turkish artists over the lack of transparency in how Spotify’s charts are compiled, as well as accusations of censorship, preferential treatment and artificial “bot” streams.

Spotify, with millions of users worldwide, plays a major role in helping artists reach audiences. However, in Türkiye, many musicians have voiced frustration over opaque ranking criteria and alleged misconduct.

Many prominent Turkish artists have publicly questioned the integrity of the platform’s local operations.

Amid reports of bribery allegations in the formation of charts, Spotify’s headquarters has launched a probe into its editors in Türkiye, private broadcaster Habertürk reported Monday.

Spotify’s decision follows an investigation launched last month by the Turkish Competition Authority (RK) into claims that the Swedish company has unfairly disadvantaged rivals and discriminated against certain artists and content creators.

The watchdog is also examining allegations that Spotify has given some musicians greater visibility, engaged in unfair practices in the distribution of royalties, and potentially violated the Law on the Protection of Competition.

In a statement, Spotify, which launched in Türkiye in 2013, said its operations complied with “all applicable laws” but would cooperate with the investigation.

“We are cooperating with the investigation, are actively seeking to understand it, and will work toward a swift, constructive resolution with the Turkish Competition Authority,” the statement said, without mentioning the playlist allegations.

According to Spotify, the company paid over TL 2 billion (nearly $50 million) to the local music industry in 2024, calling its service “pivotal in growing Turkish artists’ royalties globally.”

Separately, Deputy Culture and Tourism Minister Batuhan Mumcu last month called for legal action against Spotify, citing its “refusal” to respond to requests to remove playlists with names deemed offensive.

“Spotify persistently refuses to take the necessary steps despite all our previous warnings,” Mumcu wrote on the social media platform X. “Content that targets our religious and national values and insults the beliefs of our society has not been corrected,” he added, saying Türkiye had been “closely monitoring content on Spotify for a long time.”

He pointed to content published “under the guise of ‘playlists’… that disregards our religious sensitivities toward our Prophet Mohammed, deliberately and unacceptably targeting the beliefs, sacred values, and spiritual world of our people.”

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Türkiye’s industrial output rose 8.3% yearly in June, according to official data from the Turkish Statistical Institute (TurkStat) released on Monday.

Of the 12 sub-sectors measured, 10 posted annual rises, while two declined.

The high technology index soared 88.2%, capital goods climbed 20% and manufacturing rose 9.5% compared to June last year.

However, the durable consumer goods index declined by 1.4% annually, and the electricity, gas and steam index decreased by 1.1%.

Monthly, overall industrial production expanded 0.7% in June.

Of the 12 sub-sectors measured, six posted monthly rises, while the other six declined.

Among the monthly figures, high-technology production surged 38.1%, capital goods rose 4.8%, and the electricity, gas and steam index gained 1.9%.

Meanwhile, production in mining and quarrying declined 5% month-over-month, durable consumer goods fell 4.4% and medium-high technology was down 3.5% in June.

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A recent U.S. employment report has shown “signs of fragility” in the labor market, a senior central bank official said Saturday, backing the idea of three interest rate cuts this year to guard against further weakening.

In prepared remarks to a summit in Colorado, Federal Reserve (Fed) Vice Chair for Supervision Michelle Bowman called for a “proactive approach” in lowering the benchmark lending rate.

Doing so “would help avoid a further unnecessary erosion in labor market conditions” and reduce the chance that the Fed’s rate-setting committee will need to make a larger cut if the jobs market worsened further, she said.

Bowman also made the case that price increases from U.S. President Donald Trump’s sweeping tariffs this year will likely represent “a one-time effect.”

She expects inflation will return to the Fed’s 2% target after the tariff effects dissipate.

“It is appropriate to look through temporarily elevated inflation readings and therefore remove some policy restraint to avoid weakening in the labor market,” she added in the remarks.

Bowman was one of two Fed governors to dissent at the central bank’s July policy meeting, a rare occurrence even as officials voted to hold rates steady for a fifth straight gathering.

Her latest remarks underscore growing divisions among Fed policymakers about when the independent central bank should begin slashing rates again.

The Fed has come under intense pressure from Trump recently, as the president repeatedly lambasts Fed Chair Jerome Powell for its decisions to keep rates unchanged.

Bowman, who was nominated by Trump in 2018 to the Fed’s board, also took aim at government data over its declining survey response rates and other issues, saying the monthly numbers have become increasingly tough to interpret.

Even as she acknowledged weakness in the labor market, she said that she remained “cautious about taking too much signal from data releases.”

On the day that the Labor Department released July’s jobs report, which showed cracks in the market with employment in May and June revised down significantly by 258,000 jobs, Trump ordered the firing of the commissioner of labor statistics.

Without providing evidence, he accused the commissioner, Erika McEntarfer, of manipulating data for political reasons.

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