Daily Bulletin

Good morning. The global markets are experiencing a shock with the rise of the Chinese AI assistant "DeepSeek." Challenging the throne of ChatGPT, developed by US-based OpenAI, DeepSeek has climbed to the top of the Apple Store charts, raising doubts about the US and chip manufacturer Nvidia’s leadership in this field. This development is particularly noteworthy as it coincides with a period when US tech companies are expected to announce their weakest earnings reports in two years. Reflecting these developments, US and European markets are weak, while Asian markets, except for Japan, are showing gains. Domestically, we start the week with disappointment following Moody’s decision on Friday evening to leave Turkey's credit rating unchanged. Moody’s maintained Turkey’s credit rating at four notches below investment grade with a positive outlook, while highlighting themes such as disinflation, fiscal stability, "Liralization," and improvements in growth in its evaluation note. We anticipate the Borsa Istanbul (BIST) to make a weak start to the week, with efforts to hold above the 10,000 level likely to continue. On today’s agenda, domestic highlights include real sector confidence and capacity utilization, while US housing sector data will take center stage abroad. Later in the week, decisions from the Federal Reserve (Fed) and the European Central Bank (ECB), as well as growth and inflation data, will be closely monitored. Meanwhile, Turkey’s 5-year credit default swap (CDS) premiums start the day at 259 basis points.