Hello, big moments lie ahead with the Trump-Musk madness that has dawned upon us—it’s becoming increasingly clear. The ultra-wealthy American entrepreneur has completely lost it and seems to think he rules the world single-handedly. Just because you have a lot of money and power like Musk, it doesn’t mean you’re not a clown. That’s just my opinion, and Musk’s behavior certainly reflects that, no matter how much money or power he has. His conduct (such as with outgoing Canadian Prime Minister Trudeau) deeply tarnishes America’s global reputation as a democracy. I suspect that Trump will eventually have to rein him in. It’ll be interesting to see when that finally happens.

Simitis

Closer to home, today’s major event is the funeral of Kostas Simitis at noon, attended by Prime Minister Mitsotakis, who will deliver a eulogy, along with many other politicians, friends, and admirers of the late statesman. Over the past few days, a lot has been written and said about this man who just passed away, and I agree with Pierakakis that the most distasteful thing is exploiting the situation for a few moments of extreme public statements and cheap publicity. Even Musk hasn’t insulted the deceased—yet.

Kaklamanis or Plakiotakis, If…

As for Mitsotakis’s choice for the Presidency of the Republic, I don’t have fresh news other than a bit of information that the Prime Minister will announce his decision by the end of next week. If he ultimately appoints Tasoulas as Speaker of Parliament, it’s likely that the experienced MP Nikitas Kaklamanis will take the position. I’m told Yiannis Plakiotakis is also interested, but Nikitas is the more probable choice, which would finally settle things. As the days draw nearer, the same scenarios keep circulating. For example, yesterday, following PASOK’s “yes” to the re-election of current President Sakellaropoulou (as mentioned by MP Christidis and spokesperson Tsoukalas), her name has resurfaced in the discussion. Personally, I’m not betting on anything and await Mitsotakis’s decision.

Marin – Savvidis – Open TV

From a reliable source (as we used to say), I’ve learned that negotiations between Savvidis and Marin for the sale of Open TV are ongoing. Financial data for the channel are being requested—something akin to remote due diligence—and this is where things may get tricky. However, the same source told me yesterday, “There are no difficulties as long as the buyer writes down that he’s willing to pay the agreed amount and everything else falls to the seller. If the seller (Savvidis) agrees, then there’s no problem. Whatever’s written down is what stands.”

I’d remind you there’s a draft stock transfer agreement with a price of €37.5 million. It’s true that Open TV owes several million to various suppliers, but if both sides are willing, differences can be resolved. It’s worth noting that the Marin group is discreetly monitoring the discussions between the two parties, and so far, I’ve found no sign of outside intervention.

The Exclusive Economic Zone (EEZ) and the GREGY Project

Greece-Cyprus-Egypt alliance—this is the message conveyed to me by informed sources regarding discussions behind closed doors in Cairo. I’m told that Mitsotakis, Sisi, and Christodoulides did not explicitly discuss a potential Turkey-Syria EEZ agreement. However, Athens estimates that such a scenario is unlikely as long as Damascus remains under a transitional government. Overall, the sense is that while Turkey may “roar,” it is mostly testing the waters.

Today’s visit of Israeli Prime Minister Herzog to Cyprus is also significant. Meanwhile, the Egyptians are particularly interested in the electric interconnection cable project, GREGY, which requires a few years of development. Greece intends to support the project to secure European funding. Let me remind you that this project was included in the EU’s Projects of Common Interest last March, with the European Parliament’s endorsement.

Mystakidis and Aegean Baltic Bank’s Stock Market Plans

In October 2023, we saw the first bank listing on the stock market in 17 years. In September 2024, the Bank of Cyprus returned to the stock exchange after a 7-year absence. In 2025, we won’t be disappointed, as Aegean Baltic Bank (ABB) is next. The bank’s new major shareholder, Telis Mystakidis, having secured central bank approval, is now looking for a CEO to lead the specialized shipping finance bank to the Athens Stock Exchange.

Similar developments are happening in Ioannina, where the Cooperative Bank of Epirus, with the help of a currently unnamed strategic investor, appears set to pursue a nationwide banking license and a stock market listing.

DEI’s Data Center, Sajwani, and Trump

After Softbank announced a $100 billion (!) investment focus on artificial intelligence, the UAE-based DAMAC Group revealed plans to invest €20 billion in a series of data centers in the U.S. The announcement was made by Donald Trump himself during a press conference from his residence in Palm Beach, Florida, accompanied by DAMAC’s founder, Hussain Sajwani.

Just a few weeks ago, in early December, Sajwani was in Athens to meet with DEI (Public Power Corporation) CEO G. Stassis, Deputy CEO of Digital at DEI Alexandros Paterakis, and other executives to finalize a collaboration for a data center in Spata. The investment will be carried out through the joint venture Data In Scale, in which DAMAC’s EDGNEX Data Centers holds a 55% stake and DEI a 45% stake.

The initial phase of the data center’s development will have a capacity of 12.5 MW, with potential expansion to 25 MW in subsequent phases. The initial share capital of €4 million has already been paid into Data In Scale, with Alexandros Paterakis serving as the chairman of the board.

Here’s the English translation, preserving idioms, humor, and formatting as requested:

The Wave of Changes in the Insurance Market Has Begun

The new measures introduced by the government for mandatory insurance of businesses and households against natural disasters, its intervention in the Health Insurance sector—with the first episode being tomorrow’s meeting of the stakeholders—and, finally, the “maturation” of certain foreign investments are creating new dynamics in the Greek Insurance Market. Following the “marriage” of EUROPE with Intracom Holdings, yesterday the complete acquisition of the major reinsurance company Carpenter Turner by Guy Carpenter, a member of the Marsh McLennan Group, was finalized. On the same exact day, the acquisition of a major insurance broker in our country was also announced. GrECo, a significant independent risk manager and insurance broker headquartered in Vienna, acquired the majority of shares in Comergon, owned by George Zafeiriou—a prominent independent Insurance Broker by Greek standards specializing in corporate risks, Property & Casualty, and Health & Benefits, with activities in Greece and Cyprus. Similarly, Howden is preparing expansion moves in Greece, while decisions regarding the future of Ethniki Insurance remain pending…

Incentives for the Alternative Market of the Athens Stock Exchange

The Athens Stock Exchange has decided to turn its attention toward small and medium-sized businesses by utilizing the Alternative Market. The government will establish a package of tax incentives for companies that list their shares on EN.A. (e.g., super-deductions for listing expenses, tax reliefs for investors participating in IPOs on the Alternative Market, etc.). On its part, the Stock Exchange will reduce listing costs for EN.A., increase the threshold for mandatory publication of a Prospectus from 5 million euros to 8 million euros, and create a mechanism for reimbursing listing expenses to small businesses that list their shares on the Alternative Market. Additionally, the management of HELEX has decided—and will announce shortly—that fundraising up to 5 million euros on EN.A. will become cheaper and faster through the use of an Electronic Book Building system, providing access to the network of members of the Athens Stock Exchange, enabling small and medium-sized enterprises to boost their liquidity without resorting to bank loans.

Profile Expands into New Markets

Artificial intelligence is helping Greek IT companies gain market share abroad. Profile, led by B. Stasinopoulos, has stabilized its exports at 60% of its total revenue by securing major contracts in the UK, Denmark, Malta, and Africa. According to reliable sources, in 2024, with the aid of AI Adaptive, Profile increased its turnover to €40 million (compared to €30 million the previous year) and its profitability to €10 million (up from €7.5 million). In Greece, major IT projects, particularly those included in the Recovery and Resilience Fund, demand companies not only capable of implementing plans but also with a robust capital base. This is why we are seeing other small IT firms raising capital with bond loans that are multiples of their equity capital.

The Forestry Cooperative of… KINAL

Many years ago, during the early post-dictatorship period, the historic newspaper Estia—then under the ownership and management of the Kyrou family—commented in its archaic language and witty style on the appointment of George Souflias in 1977 as Deputy Minister of the Interior and later Coordination under the governments of Konstantinos Karamanlis and Georgios Rallis, saying, “We did not know there existed in the government a deputy minister answering to the euphonious name of ‘Souflias’.” Similarly, I must confess that until today, I did not know that KINAL has its own… Forestry Cooperative. And to make it clear I’m not joking, I refer to a decision by the Head of the Inspection of Forestry Policy Implementation of Macedonia-Thrace (under the General Secretariat of Forests of the Ministry of Environment and Energy), dated 31/12/2024, which provides for “the extension of the exploitation rights of cluster 78B of the Public Forest of Lykostomo Almopia to the Forestry Cooperatives of Theodorakeio ‘KINAL’ and IDAS ‘Three Firs’.” The extension lasts until 31/3/2025 “because the exploitation of the aforementioned cluster was not completed within the allocated time due to reasons beyond the will of the Forestry Cooperative of Theodorakeio ‘KINAL’ and IDAS ‘Three Firs.’“

Now, let me inform you that several of these cooperatives have imaginative names such as ‘The Macedonian Axes,’ ‘The Macedonian Chainsaws,’ ‘The Springs,’ ‘Alexander the Great,’ ‘New Generation,’ ‘New Strength,’ and ‘The Greek.’ So why not ‘KINAL,’ even if there’s no actual connection to the political party of the opposition?

For the record, under the legal framework, Forestry Cooperative Organizations (FCOs) are autonomous associations of individuals voluntarily formed to promote the economic, social, and cultural development of their members through equitable collaboration and mutual assistance. FCOs are private legal entities with commercial status but are not required to register with the country’s Commercial Chambers. They are divided into primary and secondary entities: Primary FCOs are Forestry Cooperative Enterprises (FCEs), and secondary entities are Unions of Forestry Cooperative Enterprises (UFCEs). These FCEs, such as the one named ‘KINAL,’ are engaged in forestry activities, as well as the distribution, marketing, processing, and transformation of forest products, under specific conditions set by relevant legislation.

Correcting Without Falling

Theoretically, the stock market “corrected” yesterday after the first three positive sessions, with the General Index dropping below 1,500 points at one point. However, it closed at the same levels, at 1,506.48 points (-0.01%), with transactions amounting to €166.2 million (€20 million in block trades). There is a clear inclination to pass the positive momentum from the “heavyweights” of the General Index to smaller capitalizations. We would have to go back several years—before 2015—to find PPC’s stock at €12.74 and its market value above €4.7 billion. ELVALHALCOR, Cenergy, and Athens International Airport attracted the interest of long-term investors, while ADMIE’s stock continues its steady rise, driven by interstate discussions about Europe’s electrical connection to Africa, as well as the news of Israeli President Isaac Herzog’s visit to Cyprus today, just one day after the high-level trilateral meeting between Egypt, Greece, and Cyprus.
Banks remain at the center of trading interest, with Alpha Bank and Piraeus Bank leading this year’s returns (8% and 7%, respectively). OTE held steady at €14.78 (+0.68%), while Coca-Cola remained indifferent at €33.38. Piraeus Port Authority regained its momentum with a +1.33% rise to €30.45, and Intralot surpassed €1 with a +0.95% increase.

The Dance of Bank Acquisitions and Mergers Starts in Italy

The first proposal for a “friendly acquisition” of a banking institution in Europe has come from Italy. Banca Ifis submitted an offer of shares and cash for 100% of the shares of the small bank illimity, aiming for their merger. Banca Ifis’s offer values each illimity share at around €3.55 (a 5.8% premium over the previous day’s closing price). The business rationale behind the proposal is interesting: the specialized Banca Ifis wants to expand its client base among small and medium-sized enterprises while maintaining its leadership in the management of non-performing loans. The deal is expected to generate synergies in both costs (approximately €50 million annually, pre-tax) and revenues (approximately €25 million annually, pre-tax). The main shareholder of Banca Ifis, La Scogliera (50.5%), is expected to retain control of the group, but for the first time, it will drop below the 50% threshold to facilitate the transaction’s completion.

Trump Uncertainty in Bond Markets

Theoretically, since September 18 of last year, the U.S. Federal Reserve began gradually reducing dollar interest rates, which largely fueled expectations in the stock market. However, since then, the yield on the 10-year U.S. Treasury bond has not decreased; instead, it has reached 4.7%, up by 110 basis points. Similarly, mortgage rates have surpassed 7% and are heading toward 8%. The bond market is not aligning with the FED’s rhetoric and goals. This might be because the market believes inflation has not been defeated and will return, forcing the Central Bank to keep borrowing costs high. Alternatively, the bond market might trust Trump more, who aims to maintain a strong dollar, counteracting the FED’s policy and keeping rates elevated.

Is a Yuan Devaluation Coming?

The communist government of China adopted all the techniques of capitalism, propelling its GDP beyond $18 trillion. But now it is also learning capitalism’s weaknesses. The severe crisis in the real estate market, coupled with a lack of trust from households and businesses in recovery prospects, has already led the giant nation into the longest deflationary period in its history. The yuan’s exchange rate has already surged to 7.35 against the dollar, its highest level since 2008. Despite the gradual and cautious devaluation of its national currency, the economy is not rebounding. All indicators point toward another “capitalist” maneuver: a sudden and significant devaluation to give the economy momentum and strength. Of course, the elite will grumble, as their favorite imported goods and services will become even more expensive.