Hello, now the fact that the new POTUS Donald is quite passionate is known to the whole world. We saw him throughout his campaign, what he said, what he did, how he danced, etc. So, the fact that he sent Kimberly as a package for ambassador may be surprising, but it shouldn’t be, considering all of the above and the known friends and relatives he is gradually appointing in this new term of his. Now, substantively, my source was surprised by this decision since until the day before yesterday noon, a meeting was supposed to be held within Trump’s team about the position of the Greek embassy, meaning who would come here, where names like Bilirakis and other well-known Greek Americans were being discussed. But as we all know, the famous Kitchen Cabinet almost always prevails in this life, and we all know it or have suffered because of it.

In Turkey, however…

Now, let’s wait for the lady, to see her, get to know her politically, and then judge her because she might, you know, have a charm of her own. However, as my excellent source tells me, the counterpart appointed in Ankara, Tom Barrack, is a completely “different story.” According to the same information, he is a “heavyweight figure” with significant influence with President Donald himself. He picks up the phone and talks to him whenever he wants (so to speak), wealthy and well-connected with ties throughout the Middle East, hence his involvement in the UAE corruption case.

M.M’s frustration with ministers’ trips

It seems as though…the control over ministers has relaxed, and recently, multi-day trips of some have become more frequent, some of which are unrelated to their portfolio. Apparently, they find a way to make them relevant, but they burden the budget with unnecessary expenses. Maximos Mansion observed some such cases and realized that the “leash” had been loosened too much, so it decided to “pull some ears” to get things back in order. As I understand it, they requested detailed updates from ministers and deputy ministers on the purpose of their trips and the duration of their absences.

PASOK – Banks

Well, yesterday, through a friend, former PASOK minister Nikos Christodoulakis clarified to me that although he is “involved” with the economic team of Nikos A., he has no connection with PASOK’s recent amendment regarding banks, which, as known, proposes an administrative cleansing of lending rates. He himself explains, of course, that even this new amendment by our leader Nikos does not imply administrative interventions and that “the reduction of the spread can happen if interest rates are increased directly.” This, of course, is known even to the cats strolling on the rooftops, but we read PASOK’s amendment and understood otherwise. Anyway, let’s keep in mind that the former minister did not write the amendment, and let’s move on.

Banks: Measures totaling 200 million with two speeds

And I remain on the banks to relay what the dark room senses, with the reservation that events are evolving and because it is said that before the Prime Minister’s speech in Parliament, there will be a new meeting between K. Hatzidakis and the CEOs of the banks. The goal will be to explore goodwill steps to avoid legal and other restrictions. The information indicates that based on calculations made by the banks according to the information they have received, they will be burdened with approximately 200 million euros in total. Roughly 100 million of this will come from reductions in fees, charges, etc., while the remaining 100 million will constitute a one-off expense for the banks, which pertains to a form of their (possibly indirect) participation in the first-home leasing scheme for vulnerable borrowers. To be fair, the banks had taken steps before the “fees crisis” to contribute to the operation of the scheme for the vulnerable, so the procedures are mature. It is for such collaborations, complementing the package of measures, that the new meeting with the CEOs is scheduled, if it eventually takes place.

The sudden postponement and the rumors

Let me mention an interesting rumor that circulated last night in Athens. Today, the Ministry of National Defense had scheduled a Greek-French symposium on innovation in defense. The symposium was to be opened by Minister of Defense N. Dendias and French Defense Minister Sebastian Lecornu. At the last minute, Lecornu postponed his attendance, and he will be replaced by the French ambassador. The sudden change in the French minister’s schedule fueled rumors that he is a strong candidate to become the new Prime Minister following Barnier’s resignation. Such rumors cannot be confirmed, so take them with a grain of salt, and perhaps this speculation arose because of Lecornu’s close and good relations with President Macron.

The stock’s step and Attica Bank’s 9-month results

The stock of Attica Bank has slightly lost ground in recent sessions, having previously recorded a high (after the inclusion of shares arising from the warrants) at €0.7180. It appears that slightly below these levels, the stock has formed an initial step in anticipation of upcoming actions, which include, among other things, the widening of dispersion with the entry of new strategic investors. Nevertheless, based on yesterday’s closing price of €0.68, the return for investors who participated in the capital increase and exercised the rights from the warrants is particularly satisfactory. The market now awaits Attica Bank’s 9-month results, which are announced today, to assess whether the improvement seen in the 6-month period will continue, especially regarding net credit expansion, new disbursements, operational profitability, the progress of the operational merger with Pancretan Bank, and other developments.

Aegean, London, and the dividend

The positive impressions left by Aegean at the investment conference of the Athens Stock Exchange and Morgan Stanley in London were reflected on the stock market board. The stock traded as high as €10.20 after quite some time, with analysts and fund managers in London focusing on Aegean’s dividend play, which is expected this year to distribute a dividend at least equal to last year’s (€0.75 per share), unless there is a pleasant surprise and the dividend is higher, as cash flows remain strong. Aegean is closing an exceptional year, having already recorded in the 9-month period the highest historical performance in passenger traffic and revenue levels for the company, as well as the second-highest historical profitability. This is being achieved despite the challenges posed by the need for premature checks on Pratt & Whitney’s GTF engines and restrictions on flights to Tel Aviv and Beirut due to regional conflicts. Traffic is also increasing in the last quarter, and the company has announced it will offer 4.5 million seats, 7% more than last year, while new aircraft deliveries are being prepared.

Ambrosios and the sacred debts of Toplou

A surreal case involving the abbot of Toplou Monastery, Ambrosios, and the organic farmers of Sitia is unfolding recently in Crete. The catalyst is a lawsuit filed by farmers in the region with the Prosecutor of Lasithi over a debt of €500,000 owed to olive oil producers by what was once the monastery’s gem, the “Organic Farmers of Sitia.” The company, founded in 1999 and once a Cretan success story achieving significant export activity to countries such as China, Germany, France, and England, is now on the brink of bankruptcy following the assumption of new management. This management upheaval led to the collapse of the successful cooperative, with the monastery as the major shareholder and the abbot Ambrosios—also the protopresbyter of the Metropolis of Ierapetra and Sitia—as its president. The culmination of this saga is the bankruptcy petition filed this summer by Organic Farmers S.A., which is set to be heard on January 15 following the postponement of the trial on November 12. Producers fear that if the company goes bankrupt, they will lose all prospects of recovering what they are owed, prompting them to take all legal measures, including lawsuits, and submit testimonies as part of a preliminary investigation ordered by the Prosecutor. The company’s financial distress is also evidenced by its significant tax debt, amounting to €1.2 million. Organic Farmers of Sitia once formed a strong core of olive oil producers in Crete, with a turnover of €16.5 million and operating profits of €500,000 in 2017. Today, the company is teetering on the edge of collapse.

The difficult Christmas for Folli Follie

Desperate efforts are being made by the current administration of Folli Follie, under George Samios, to find a strategic investor willing to invest in the future of this much-troubled company. The judicial decision prohibiting access to assets worth at least €23 million, combined with credit difficulties due to its burdened past, leads to the conclusion that the company is heading towards closure. During these festive shopping days, there is increased movement in products such as Jack & Jones, FF jewelry, Links of London, and Cosmetics, but the company’s viability remains at risk. Some ill-wishers believe that from the demise of Folli Follie, a new FF could emerge under the shadowy guidance of its convicted former owners.

The special envoy of OSE

Yesterday, a bill on the “Restructuring of the railway sector and strengthening of transport regulatory bodies” was submitted to Parliament by the Ministry of Infrastructure and Transport. Public consultation has begun, and from the initial observations, it seems that some intend to “change everything” while keeping everything the same. Suddenly, it emerged that below the CEO, there will be a “Special Envoy.” Not a deputy, but a “Special Envoy.” The difference is significant because a “Special Envoy” entails specific responsibilities without being controlled by the CEO. For example, they could take over the infrastructure projects of the new Railway Organization without being supervised by the CEO, continuing the not-so-successful track record of the past. Of course, this could change during public consultation.

Complete stagnation on the Stock Exchange

If it weren’t for the 8 blocks of GEK shares totaling €50 million, which involved a specific pre-arranged transaction, yesterday’s stock market session would have easily fallen into oblivion. The General Index remained stationary at 1,467 points (-0.08%), and the total transaction value reached €141.4 million. All market sub-indices hovered around 0%, and the positive sentiment in major international capital markets had no impact on Athens Avenue. Metlen (+1.1%) at €33.08, Coca-Cola (+0.6%) at €33.7, and obviously GEK TERNA (+0.98%) at €18.58 set the positive tone for the day, supported by Lamda (+1.82%) at €7.26, EYDAP (+1.57%) at €5.84, and Athens Airport (+1%) at €8.1.

Lagarde’s hour

Since yesterday, European Central Bankers have been meeting in Frankfurt, not only for today’s market-expected announcement of a euro interest rate reduction to 3% but -mainly- for the continuation and duration of the path. Reports indicate that the initial goal is to reduce the base euro interest rate to 2% by June. The aim is to stimulate growth in the European economy, but mainly to address inflation caused by the “strong dollar” policy apparently chosen by the new U.S. administration. Yesterday’s discussions focused on the high inflation in services and growth estimates in the Eurozone at a time when the economies of Germany, France, and Italy are stagnant. In any case, we have entered an era where money will have value, and the so-called “neutral rate” will fluctuate depending on developments in the real economy and employment.

Jerome Powell’s problem

The American Central Banker has to face more complex and “political” problems. On the one hand, he must preserve the FED’s independence; on the other, he must not obstruct the aggressive policy the elected U.S. President wants to implement. The actual data of the American economy leaves little room for flexibility. U.S. public debt has reached a record $36.17 trillion. In the last quarter alone, it increased by $1 trillion, an average of $9.5 billion per day. The first conclusion is that U.S. debt is growing faster than the economy. The Debt-to-GDP ratio stands today at 121%, the highest in 3 years and close to the recent record high. The debt crisis is not exclusive to the U.S. Most G7 countries face serious problems: Japan: 255% Debt-to-GDP, Italy: 139%, United States: 121%, France: 112%, Canada: 105%, United Kingdom: 104%. Germany stands out with 64%.

Tesla’s boat sails with favorable winds

While Tesla’s profitability announcements may not fully satisfy shareholders, the automaker (or rather technology company) of Elon Musk has been gaining momentum following Trump’s election victory. Tesla’s stock, which plummeted by almost -50% at the start of the year, now seems poised to close 2024 with gains exceeding +60%. Tesla is now valued at $1.3 trillion, making it the 8th most valuable company in the world. Just six months ago, it struggled to rank among the top twenty companies on Wall Street. Today, it sails with favorable winds.