Hello, before delving into the day’s news—focused, of course, on developments surrounding SYRIZA’s elections—I must admit I found Floridis’ new intervention on issues of justice, as revealed yesterday by Proto Thema, very intriguing. In an era when we read daily about particularly heinous crimes—murders, rapes within families or involving minors, terrorism, and severe criminality, mostly by underworld figures—I believe it is absolutely imperative to revisit, beyond legal provisions, the process of early prison release. This should include participation and a voice for victims or their relatives who have endured immeasurable suffering.
How many times have we read in the media about a criminal released from prison only to continue their “career in the underworld,” doing the exact same thing or killing out of revenge? How many cases of vengeful violence from unrehabilitated criminals exist but remain hidden because they don’t make the headlines? Of course, anyone who, under the new law, claims they feel endangered by the release of criminals bears the burden of proof—or at least must convince the court of a substantial reason.
It’s clear that the proposed provision—about how and why a court might decide to override the law allowing even a legally permissible early release—will be a “difficult judicial project.” However, as a nation, we must finally accept that justice is not served à la carte, even though we’ve been living for decades in an environment where institutions haven’t exactly been at their best.
Life, however, has shown that those who toy with justice—such as Pappas with his blatantly unconstitutional TV licensing law or later Papangelopoulos and the others with the Novartis scandal—end up paying the price. Let’s hope that in practice, this new provision will yield results and bring relief to countless anonymous individuals who live in fear of criminal retribution.
SYRIZA
Well, even for historical reasons, yesterday’s big topic was SYRIZA—or at least what’s left of it. Participation in the four-way split wasn’t too bad, and as for the result—well, it’s interesting. The intriguing part is that, according to my reliable SYRIZA source, “former members and many from the New Left came to vote,” which explains why Famellos came out ahead.
The next step is for the New Left to return—or at least 3-4 of its MPs—so SYRIZA can once again become the main opposition party and move back into Parliament!
Polls
Now, my source from the mass media tells me that, in a poll conducted in recent days, not only did New Democracy not suffer from the Samaras expulsion issue, but it even gained slightly. Adjusted figures put it at 31%-31.5%. As for PASOK, according to the same source, it’s hovering just below 20%, but apparently—it’s been noted—it has plateaued at that level.
Lower the VAT
The other day, I heard Nikos A., our new leader, declare that VAT should be reduced by 2%, costing the state roughly 3 billion euros. Then the spokesperson said, “We said we’d study it,” but I didn’t quite catch whether they’ll study a further reduction or just the 2%.
In the end, SYRIZA were misers, but our guy here is a real spendthrift! Go for it, Nikos, give it your all!
Karamanlis, Kasos, and Gerapetritis
Karamanlis’ speech (in Rafina) in Patras may have been considered mild compared to what Samaras says, but wait until December 8. That’s when he’ll speak in the Old Parliament, invited by the people of Kasos for the 80th anniversary of the Karpathos Revolution. It’s expected he’ll “spill everything” about national issues.
Interestingly, Foreign Minister Giorgos Gerapetritis, who hails from Olympos, Karpathos, will also be present. To make things even more interesting, I’m hearing there’s a good chance Samaras, who recently returned from the U.S. and is still dealing with his jet lag, might show up too.
Zannis-Monaco and Sami the Chef leave satisfied…
In other, perhaps more intriguing news, I hear that negotiations are moving swiftly between the Abu Dhabi-based ADMO Arab fund and the two founders of Nammos, Zannis Frantzesko and Sami Ibrahim. The goal? For the latter two to step away from the iconic Mykonos beach club, where they hold a 55% stake, and potentially from any other joint ventures with these investors, who are directly linked to the UAE royal family.
I don’t know the exact payout amount, but I estimate it’s between €30-40 million (I’ll find out, though), which means the duo will walk away well-fed and still have enough left over to pay off their €3 million tax fine from Mykonos (including penalties) and keep their businesses and lifestyles going. We wish them well in their future endeavors.
Skroutz ventures into… real estate
Moving on to market news, let’s start with the fairly cliché observation that real estate has become a magnet for nearly all major players across various industries. It’s no surprise, then, that Skroutz has made its own move in this direction.
According to information received, last Friday, November 22, a new company named “A18 Single-Member S.A.” was established, with an initial share capital of €5.5 million fully paid in cash by the sole shareholder, “Skroutz S.A. Internet Services.”
The new company’s purpose is the purchase, sale, leasing, and management of real estate, as well as construction work for residential and non-residential buildings. It’s headquartered at Skroutz’s offices on Alekou Panagouli Street in Nea Ionia.
The first board of directors includes Giorgos Chatzigeorgiou as Chairman and CEO, Giorgos Avgoustidis as Deputy Chairman, and Konstantinos Kontogiannis as a member.
To recap, Skroutz, which last year surpassed €100 million in revenue for the first time, reaching €105.85 million (compared to €75.4 million in 2022), was founded in 2005 by Giorgos Chatzigeorgiou, Giorgos Avgoustidis, and Vasilis Dimou, and has been on an upward trajectory ever since.
Its success story attracted CVC Capital, which acquired a minority stake (reportedly 45%) in 2020, with control and management remaining in the hands of the founding team. For this fiscal year, Skroutz’s management reports that 2024 began with positive prospects and promising results, anticipating further sales growth.
Are they talking?
I’ll be completely honest: I haven’t confirmed this, so I remain cautious. However, I’m tempted to note that a tip has reached me suggesting discussions are underway between OPTIMA Bank of the Vardinogiannis Group and Aegean Baltic Bank, where billionaire Telis Mystakidis recently acquired 68% control.
If true, this is a business move that makes sense, as it would create synergies.
Barba Stathis acquisition by year-end
Since we’ve opened the topic of deals, let me mention that the management of Ideal Holdings suddenly decided to postpone its regular nine-month analyst briefing.
The results, which showed a 263% increase in operating profits (€37.7 million) and post-tax net profit growth of +661% (€90.4 million), were already impressive. However, the market speculates that the delay is due to an impending announcement about a new acquisition.
By year’s end—essentially within the next three weeks—Lambros Papakonstantinou is expected to make an announcement, with all signs pointing to Ideal acquiring Barba Stathis. Reports suggest the deal’s business value is around €180 million.
The unstoppable Antetokounbros!
The investment activities of the Antetokounmpo brothers continue unabated. After ventures in real estate, wine, film production, and more, sources inform me that on Saturday, November 23, a new company named “Original Vader Single-Member S.A.” received approval to enter the market.
Headquartered in Marousi, it has an initial share capital of €1.915 million, contributed by Dubuwisi Antetokounmpo (a.k.a. basketball player Kostas Antetokounmpo). Kostas serves as Chairman and CEO, with his brother Alex-Emeka Antetokounmpo and Pavlos Petridis as members of the board.
The company’s purpose includes holding services, the purchase and sale of owned real estate, and services for foreign companies participating in domestic firms.
It’s Decision Time for Manousakis
A veil of silence surrounds the successive meetings held last week between the Chinese State Grid, the government, and the Regulatory Authority for Energy (RAE). Accompanying the high-ranking Chinese delegation during their visit to the Minister of Environment and Energy, Theodoros Skylakakis, last Friday morning was CEO Manos Manousakis. Prior to this, the Chinese representatives had met with RAE, where Vice President and General Director of Technology and Development Ioannis Margaris, along with Regulatory Affairs Chief Nikos Boulaxis, were present. When asked, “How did the tête-à-tête with the regulator go?” sources described a positive atmosphere but noted there were unexpected moves and surprises!
Still, the focus—understandably—remains on whether the Chinese have given the green light to renew Mr. Manousakis’s term at the helm of ADMIE (Independent Power Transmission Operator) and the stance of the Greek government, which has worked closely with the Greek manager since 2019. This collaboration persisted even during periods when the State Grid had withdrawn its trust in him. Amid the frenzy of last Friday—when a meeting with the European Commission on electricity tariffs was scheduled—few paid attention to the Chinese delegation, even though their visit carried significance and substance.
This significance stems not so much from the company’s 20% stake in the project constructing the Crete-Attica interconnection cable but rather from the impending decision on who will steer ADMIE for the next three years. This marks a critical period in the Operator’s history, as the company prepares to undertake major electricity interconnection projects with investments totaling €5.5 billion, per the 2025-2034 ten-year development plan.
Citi’s Investment Banking on a Roll
Citi’s investment banking division in Greece is on a winning streak, with its latest achievement being the completion of the acquisition of Evryo Group’s renewable energy portfolio in Romania by PPC (Public Power Corporation). Citi acted as the financial advisor for PPC in the deal. This recent transaction places Citi at the top of Greek dealmaking for 2024, following its involvement in several major M&A activities this year, such as Kotsovolos, the acquisition of Hellenic Bank by Eurobank, and various placements.
Neoset’s Factory for Sale (61 Acres in Chalkida) for €5.3 Million
Over a decade after the official bankruptcy declaration of Neoset S.A., the once-dominant furniture company that thrived in the 1990s and early 2000s—even undertaking projects for the Athens Olympics—the company’s property in Vasiliko, Chalkida, is up for sale again. Based on a recent bankruptcy report, a 61-acre plot with a melamine factory will be auctioned off.
Originally, the total 120-acre property was seized in 2013, with its first auction offering price set at approximately €20 million. Now, the opening bid for the 61 acres with the old factory stands at €5.394 million.
The Stock Market’s Golden Five
The publication of nine-month financial results for listed companies is complete. Excluding banks, the top five most profitable listed companies (net profits) are:
Mytilineos with €482 million, Motor Oil with €420 million, OTE with €414.3 million, OPAP with €352 million, and Titan Cement rounding out the list with €224.6 million.
November’s Tech Sector Slump – Double-Digit Decline
Without a doubt, the Information Technology sector—aside from banks, of course—has been a standout performer in Greece’s stock market. Impressive financial results, successive business deals, acquisitions, mergers, and a long line of companies aiming to go public have marked this sector. However, a well-known secret among these companies is their focus on securing large projects, increasing turnover and backlogs, regardless of their capacity to fulfill these contracts.
This often leads to subcontracting projects to smaller firms, significantly reducing actual profitability. November has turned into a month of reckoning for IT companies, with all sector stocks experiencing significant double-digit declines. Analysts—especially during this period of heightened geopolitical uncertainty and interest rate volatility—are now focusing not on turnover or backlogs but on the “bottom line” of each company’s balance sheet, resulting in erratic stock movements.
Economy Debates in Parliament
The government’s new tax bill is being submitted to Parliament’s plenary session today, featuring all the known provisions. On property and rental taxation, there are no changes addressing the requests from the Greek Property Owners Association (POMIDA). However, behind the scenes, discussions have begun that could lead to a last-minute amendment.
It’s highly likely that the three-year tax exemption for rental income will also apply to owners who had previously used their properties for short-term rentals (e.g., Airbnb)—but for two years or even just one year instead of the three years specified in the bill. The outcome will depend on discussions in Parliament, starting with tomorrow’s speech by Minister Kostis Hatzidakis and the reactions-proposals from the new main opposition party.
On Wednesday, the 2025 state budget will also be submitted to Parliament, alongside the publication of a European Commission report. The report highlights that Greece reduced its VAT revenue loss from 30% in 2017 to 14.9% in 2024, aiming for 9% by 2027, if not sooner. These figures will underpin Hatzidakis’s case at next week’s Eurogroup meeting.
Germany Fears the Chill of Winter
Official data from the German government indicates that as winter sets in, natural gas storage levels have dropped to 93.4%. This is lower than the same period last year and in 2022. During harsh winters, Germany taps into its natural gas reserves to keep prices at reasonable levels. This year, however, reserves are depleting rapidly due to freezing temperatures, increased demand for heating, and lower wind output, which requires more gas for electricity production. Meanwhile, relations with Russia are far from their best at the moment.
When Will the Stock Market Bubble Burst in America?
What’s happening on Wall Street is nothing short of unprecedented. Since last September, the market capitalization of the Standard & Poor’s S&P 500 Index has been growing by $1 trillion per week (!). The P/E ratio of the U.S. stock market is 1.8 times higher than during the dot-com bubble of 2000.
In simple terms, investors on the American stock market today are paying double for U.S. stocks compared to stocks from the rest of the world for the same earnings. Since 2009, the S&P 500 and Nasdaq have delivered returns of 447% and 786%, respectively.
Every party, however, eventually comes to an end. The question is, under whose presidency will the bubble burst, and what other assets (e.g., bitcoin) might it drag down with it? Currently, 48% of American households depend on the rise of stock prices for their financial well-being. Many have also invested in cryptocurrencies.
At the moment, we only have signs, not concrete evidence, of the bubble bursting. Market fluctuations are growing by the day. The markets have become more volatile due to increased participation, faster access to information, and the rise of automated trading systems.
