Hello, as we mentioned yesterday, the return of the Parthenon Marbles seems to be progressing well. However, Mitsotakis understandably doesn’t want to put Starmer in a difficult position, given the strong rapport they’ve developed since the British politician was in opposition. You’ve read the details about the PM’s meetings, but I believe this visit has opened a significant issue that will engage us for the next few days.

Banks

So, the other day in London, when K.M. was asked by investors whether he would tax the windfall profits of banks, he answered negatively, much to the markets’ delight. Yesterday, however, Androulakis proposed a bill (or perhaps an amendment) suggesting a 5% tax on the profits of the four systemic banks, aiming to collect about €200 million, considering each will post roughly €1 billion in profits this year.

This raises a political issue: why did K.M. reject taxing windfall bank profits, unlike his approach with refineries, which brought in around €300 million? K.M.’s response is tied to new EU regulations that prevent states from appropriating company profits to fund social group benefits, a practice allowed with energy companies’ windfall profits.

Nonetheless, sources suggest K.M. might soon announce measures costing banks more than the €200 million they’d lose to a 5% tax. He plans a legally compliant initiative forcing banks to reduce excessive fees charged to consumers for basic transactions, like buying coffee with a card, while maintaining some of the lowest deposit interest rates in Europe. My insider summed it up: “In the coming days, bankers will feel the pinch after their London jubilation.” Let’s wait and see.

Migration and Defense Retreat

As for the Parthenon Sculptures, there wasn’t much intrigue from Downing Street. The main concern was ensuring Starmer wouldn’t face backlash over a potential deal, potentially slated for 2025. British officials present at the talks emphasized their worries about migration, citing pressures from boat arrivals and their struggles to implement an effective management model—following the Rwanda plan fiasco.

Mitsotakis and Starmer may meet again in a few months if the British PM attends an informal leaders’ retreat organized by the new European Council president in early February, focused on defense. The trend leans toward shorter formal summits and more frequent, informal leader meetings.

From the FT to Androulakis

It wasn’t officially announced, but yesterday morning, K.M. had coffee with the Financial Times editorial board in London. Discussions spanned various topics, including the liquidity issues in the Eurozone, with the French government faltering and Germany heading for early elections. A dominant theme was Europe’s strategic defense initiatives post-Trump’s reelection.

Greek-Turkish Candidacy

A months-long diplomatic effort for the joint Greek-Turkish candidacy in the OSCE is nearing a successful conclusion. In Vienna, the package for four top OSCE positions has passed both the preparatory committee and the Permanent Council.

F. Sinirlioglu is set for Secretary General, M. Telalian for head of ODIHR, the Dutchman K. Kamp for High Commissioner on National Minorities (HENM), and the Norwegian for Media Freedom (RFOM). The decision is expected to be formally confirmed on Friday at the Ministerial Council, attended by Gerapetritis and Fidan, who led the campaign for this joint candidacy.

Given the OSCE’s complex dynamics, exacerbated by the Ukraine war, achieving consensus required significant diplomatic effort from both foreign ministers and Greece’s Permanent Delegation to the OSCE.

Embassy on the Atatürk Plot

A very positive atmosphere prevailed, as we’re told, during yesterday’s meeting of the Greece-Turkey Political Dialogue held in Athens, led by Deputy Foreign Minister Al. Papadopoulou and her counterpart M.K. Bozay. The major issues can wait for… better days, so the Dialogue focused on more “humble” but crucial topics.

Reportedly, the Greek side raised an issue pending not for one or two decades but almost a century. It concerns the permit for constructing the Greek embassy on a plot gifted by Kemal Atatürk to Eleftherios Venizelos in 1930! Naturally, there’s also the matter of a new building for the Greek Consulate General in Istanbul, which has outgrown its current premises and is now the largest Greek consulate worldwide.

Additionally, other issues related to the Greek minority in Istanbul were discussed. The Turkish side, meanwhile, raised their usual concerns about the Muslim minority in Greece, but responses were given, supported by data. What stood out, however, was the anxiety of Turkish diplomats over developments in Syria, which is becoming yet another hot front among Turkey’s many ongoing conflicts.

For Sale, Fully Furnished

The info comes from a solid and reliable source: the Ethniki Insurance building at the beginning of Syngrou Avenue is up for sale. It’s unclear if a formal assignment has been made, but there’s been discreet outreach to potential investors. A building of such specifications, after all, isn’t marketed to just anyone. So, if the scouting has begun…

Private School Acquisitions: More to Come

Platon Schools have become the fifth private school—following Moraitis, Kosteas-Geitonas, Doukas, and the International School of Athens—to undergo a change in ownership, now controlled by organizations managing numerous schools. With Platon Schools, a historic institution since 1969, the British ISP makes its debut in Greece, following other players like Inspired, Cognita, and Dukes.

Note that this wave of private school acquisitions isn’t over yet, as smaller schools, not necessarily in Athens, are next in line.

Every Port Has Its Sorrow… Even a Chinese One

A fascinating aspect revealed in Angela Merkel’s bestseller Freedom, concerning the Grexit discussions, is the intense pressure she faced… from China. The Chinese interest wasn’t driven by philhellenism but by the need to protect their largest investment in Greece—the Port of Piraeus.

Had Greece been expelled from the Eurozone, not only would it have caused massive disruptions in the port’s operations, but it would have also devalued their investment in the Piraeus Port Authority (OLP), undermining its role as a gateway to the EU for Asian goods.

Uncertainty Affected the ASE Conference

Bankers, lawyers, consultants, and even a… well-known headhunter were among the attendees at listed companies’ presentations during Morgan Stanley’s London conference. For most European fund managers, the key investment conundrum isn’t how much they can gain from the Greek Capital Market but how much they risk losing due to the political crisis in France and instability in Germany.

This climate of uncertainty, compounded by Donald Trump’s choices, has visibly affected sentiment at events related to the Athens Stock Exchange—not just in London but also at yesterday’s Wood event in Prague. Next week, the baton passes to New York for the Capital Link conference.

N. Stathopoulos in the “Pantheon”

Nikos Stathopoulos, synonymous with BC Partners—one of the world’s most successful investment funds, managing over €50 billion—has earned international recognition from Private Equity News, part of the Wall Street Journal group. Specifically, Private Equity News ranked Stathopoulos among the 50 most influential investors globally.

The list highlights the industry’s top players, reflecting the power and impact of those shaping the future and trends of the markets.

To Institutional Investors in London: Attica Holdings

Setting sail—so to speak—for London in early 2025, the management of Attica Holdings is gearing up. The company plans to hold presentations for international investors in the British capital this January, likely eyeing a placement when conditions allow. A key role in the upcoming roadshow will naturally be played by London-based fund Blantyre Capital, the main shareholder of Attica Holdings.

Attica is among the listed companies with limited free float, as STRIX Holdings, controlled by Blantyre, owns 86.7% of the share capital. It’s been suggested that various options are being explored to meet the Athens Exchange’s dispersion criteria and enhance stock liquidity.

Meanwhile, the group is executing an investment plan exceeding €1 billion, focusing on fleet renewal. Currently, under the brands Superfast Ferries, Blue Star Ferries, Hellenic Seaways, and ANEK, the fleet numbers 43 vessels. Attica has already agreed to the long-term charter, with a purchase option, for two new “green” technology ships to be delivered in 2027 and has acquired the high-speed vessel High Speed 3 (formerly Thunder).

The company has also expanded into the hotel sector, with properties on Naxos and Tinos. Following the integration of ANEK and its subsidiaries into Attica’s 2024 nine-month results, the group showed significant improvement in its financial performance. Revenue for this period increased by 27.4% (to €593 million from €465.6 million). However, EBITDA and net profits after tax decreased by 23% (to €93.5 million) and 24% (to €45.3 million) respectively, compared to the previous year’s nine-month period.

This decline was due to non-recurring expenses, such as voluntary exit programs and vessel upgrades, related to ANEK’s merger and operational integration, amounting to €18.5 million. Additionally, operating costs were impacted by a €14.1 million charge for carbon emissions rights.

The Market Wants to Rise. But Can It?

The day before yesterday’s upbeat and dynamic session resulted in a +2.21% rise for the General Index, the biggest increase of the year. However, yesterday made it clear that the Greek stock market couldn’t sustain more.

The session started optimistically, continuing the upward trend. The General Index reached 1,436 points (+0.79%), but then its momentum faltered, sliding to 1,429.22 points (+0.34%). Banks and JUMBO led the action. Of the 30 million shares traded, 23.4 million were banking stocks.

National Bank rose comfortably to €7.20 (+3.69%), with Alpha Bank and Eurobank following, albeit less enthusiastically, with gains of around 1.6%. Piraeus Bank, however, ran out of steam, closing up +0.3% at €3.64.

Jumbo stood out with +3.2% at €25.80, followed by Aegean at +1.80% and OTE at +0.93%. Elsewhere on the board, investors were eager to lock in profits from previous days’ gains. All in all, the session’s turnover rose to €137.16 million, with only a few block trades worth €5.6 million.

Germany Falls, Yet the DAX Rises

Among the many headaches for fund managers these days is the German stock market. Despite Germany’s economy recording negative growth for a second consecutive year, rising prices, frequent strikes, and major industrial threats to shut down factories, the DAX index reached a historic milestone yesterday, surpassing 20,000 points for the first time. Since the start of the year, it has risen nearly 20%.

The rise in the German market is not due to company profitability or economic growth but to investors’ willingness to pay more for the same shares. The DAX’s price-to-earnings (P/E) ratio has climbed from 12.3 in January to 15.2 now.

Interestingly, the DAX seems to gain strength from Wall Street’s successive rallies. The U.S. stock market’s capitalization now represents 74% of the MSCI World Index—a new all-time high. Since the 2008 financial crisis, this share has grown by about 25 percentage points. Conversely, Europe’s share has shrunk by roughly 15 points, and investors feel they need to bridge this gap.

The S&P 500 has returned +450% over the last 15 years, compared to just +70% for the Euro Stoxx 50.

Talking About France… To Forget About the U.S.

Analyses of the French debt crisis are now a daily occurrence—mainly from U.S. firms—pondering where France’s public debt, which has hit €2.8 trillion (112% of GDP), might lead.

Curiously, these analysts often omit mention of U.S. debt, which has reached $36 trillion—121% of GDP. Back in 2008, U.S. public debt was below 60% of GDP. Today, the U.S. government under President Trump needs to find $3.8 billion daily just to cover interest payments.

Even during World War II, U.S. public debt never surpassed 120% of GDP.