Hello, the week started off dynamically I would say and…the news came from the opposition camp. Just when we were saying we had no opposition, bam, we got a democratic stirring—at least that’s what a normal person might call the announcement of collaboration between little Zoitsa and Kasselakis. Of course, he himself called it a “democratic nightmare.” Now go figure why you’d call a joyful event a “nightmare,” what kind of inner turmoil is that… Anyway, I—as a fanatical supporter of Zoë—will be waiting to hear very carefully what She has to say, not Kasselakis, because already the leader started dropping…asterisks about the collaboration. Also, I’d like to politely remind everyone that the party has a leader and also, there’s only one vote. That’s all for now, but I declare myself from the start a fan of the move. Finally, something sexy in the opposition, for heaven’s sake!

Meloni – Trains

In his meeting today with Meloni in Rome, Mitsotakis will discuss, among other things, the issue of trains. It’s no coincidence that there were no leaks after the Kyranakis–Salvini meeting last week, but the logic of today’s positions will be as follows: the Italians will commit to new trains and we will commit to investments in safety and rail infrastructure.

Merz – USA

On Tuesday, K.M departs for Berlin, where he will be awarded by the Economic Council of the Christian Democrats, in the presence of Merz. The new chancellor will also be present at the event, and I consider it a given that there will be some meeting, even a brief one, with Mitsotakis. Then, after a stop on Wednesday at the ygeiamou conference, K.M departs Thursday for the USA, where he has family obligations with his children’s graduations and afterwards an obligation at the UN.

Advisory – Karamanlis

In the last few days, there’s been talk that the government is considering asking the Parliament’s advisory council for an opinion on the prosecution that is to be proposed against Kostas Karamanlis. I asked my source at M.M and they told me that while the idea was discussed, it won’t proceed. The government will wait for PASOK’s proposal, which is expected today or tomorrow, and then it will present its own proposal, which will likely suggest a misdemeanor charge for the former minister. However, it will clarify that if the Judicial Council deems it necessary, the charge can be upgraded to a felony.

The government meetings of Mrs. United

The CEO of Nova’s parent company, United Group, Victoriya Boklag, was in Greece last week for a series of meetings with Deputy Prime Minister Kostis Hatzidakis, Finance Minister Kyriakos Pierrakakis, Minister of State Akis Skertsos, and Digital Governance Minister Dimitris Papastergiou. I hear that V. Boklag discussed United Group’s investments in Greece, which are expected to increase soon with the addition of Alpha to the group’s portfolio. Among other things, they discussed the progress in expanding Nova’s fiber optic network, the matter of abolishing the subscription TV fee, and the need to reduce the regulated access prices to fiber infrastructure in telecommunications, in order to accelerate Greece’s transition from copper to fiber optics.

Hydra – Warning, danger

From time to time we’ve talked about various environmental issues—or even “crimes”—around Greece. Allow me, however, a more personal note about my place of origin. Hydra, then, has a uniqueness that has been preserved thanks to the efforts of its residents and its many prominent friends for decades now. No wheeled vehicles are allowed—except for one garbage truck—and this fact has granted it unparalleled beauty and authenticity. In recent months, unfortunately, tractors, graders, and other construction-related vehicles have started to appear, along with plenty of bicycles roaming all over the island. I remember the 1980s, that’s how it started in Spetses too: first came mopeds, then scooters, and eventually cars. On the 20th of the month, there will be a teleconference between Mendoni, Skertsos, and the mayor of Hydra, Koukoudakis, to address the issue legally, because… they say there’s a loophole—that only motorized vehicles are banned, not bicycles. Questions: first, we’re seeing motorized vehicles too; second, why haven’t there been bicycles all these years? How did they suddenly show up now and who’s allowing them? So, the meetings are nice and democratic, but since they usually don’t lead anywhere, I think the government can settle this. And the Hydriots might give a good scolding to whoever’s at fault, right?

Eurobank’s Wealth Management Plan

Eurobank’s management has taken a series of steps that establish a new structure within the group for Wealth Management, a strategy clearly aimed at generating significant added value. The head of Eurobank Wealth Management, Th. Mylonas, has moved to Luxembourg, where he assumed the role of CEO at Eurobank Luxembourg. This bank is being transformed into the central hub under which all of the Group’s wealth management activities will be housed, with subsidiaries in Athens, Nicosia, and Sofia. In this way, the bank will acquire a subsidiary with asset management operations in different countries, enjoying the tax advantages of Luxembourg. This is an independent company that, at some point and with the right scale, could even be listed on the Athens Stock Exchange, creating new added value for the group. Th. Mylonas has the necessary experience, knows the Cypriot market well—which I believe has some involvement in asset management—and with certain agreements that the group has made—for example, with Italy’s Eurizon Capital SGR (of the Intesa San Paolo Group) and later with JP Morgan Asset Management—Eurobank Wealth Management manages several billion euros in assets, generating approximately 80 million euros in commissions.

What We Learned from the Banks’ Results

The systemic banks concluded their earnings announcements cycle with ALPHA BANK stealing the spotlight, as it managed to close the gap it had with the other banks. The €223.3 million (€239.3 million adjusted) is the strongest quarterly profit in the bank’s history, as CEO V. Psaltis noted, since its relatively large fixed-rate loan portfolio appears to have shielded its interest income. ALPHA BANK also managed to improve key indicators, such as return on tangible equity (15.4%), showed noteworthy performance like a +16% increase in recurring fee income, and at the same time leveraged the strong results to record in its first-quarter statements the entire cost from the implementation of Basel IV rules, which other banks are phasing into their balance sheets. Beyond that, this column notes the differing views expressed by bank managements regarding housing loans. Except for National Bank, the other bank executives were reserved about the sector’s performance, noting that the “My Home 2” program has high participation but few disbursements. Analysts focused their attention on what will happen to interest income, which is the narrative expected to dominate the coming period. A new headache emerged from the weakening dollar, which hit credit expansion at banks with significant dollar-denominated lending—e.g., to refineries, shipping companies, exporters, etc.—as happened with Eurobank and National Bank, which also had to adjust valuations of senior notes. Eurobank, by consolidating Hellenic Bank, effectively confirmed its strategy of increasing revenue from abroad, while Piraeus Bank is betting on the upcoming launch of Snappi and awaits final approvals for National Insurance. As expected, P. Mylonas did not reveal any details about National Bank’s planned moves.

It Got Stuck…

Remember the plans we talked about for a Trump Tower at Elliniko? I think it’s time to forget them. The Elliniko project is moving forward, property values are rising, and so it’s rather difficult to reach an agreement. So, when deals like this get stuck…

ADMIE and the Shareholding Interest Scenarios from a European Operator

The electricity transmission system operator has recently found itself at the center of attention—and not by chance. The first and essential reason is the fate of the Crete-Cyprus electric cable, especially after the announcements last week by Israeli Prime Minister Netanyahu, who appeared to completely sideline the Crete-Cyprus section and focus on the second part of the electric interconnection (Israel-Cyprus), which he even incorporated into a broader geopolitical plan backed by the U.S. This plan envisions connecting India with the Middle East and Europe (IMEC project). The inactivity surrounding the project—on which ADMIE has declared a suspension of payments for the past two months—raises serious questions about the cable’s future, but more importantly, about the relationship with French company Nexans, the manufacturer that has signed a massive contract with the operator. The difficult path ahead is linked to what will happen in the event of a collapse of the electric interconnection, since, based on the interstate agreement signed last September between the two countries, failure to construct the project could burden Greece and Cyprus equally (50%-50%), but only if it is proven that the freeze is due to geopolitical reasons. At present, the Greek government has avoided any reference to the reasons behind the planning delay, even though it was one step away from issuing the Navtex. However, it seems that for some time now, scenarios are being worked on in case the Cypriot side refuses to pay its 50% share should the project’s failure be officially acknowledged for the reasons described above. And while the battle over the cable continues (and will likely concern us greatly in the near future), lately various scenarios are circulating in the market suggesting that ADMIE is at the center of shareholding interest from a major European operator. Since I looked into it further and asked a top government minister about it, I received a lukewarm response of claimed ignorance. Nevertheless, the information continues to make the rounds in the market and has been reignited by high-level meetings the Prime Minister is scheduled to have abroad in the coming days. The issue is quite complex, considering that ADMIE is 24% owned by China’s State Grid—with a strong say in the company—and 51% by the Greek state. A leading energy figure with knowledge of similar shareholding restructurings stated in recent days that there is a way to change the operator’s shareholding structure without affecting the interests of the Chinese company. In any case, we are talking about scenarios whose realism will be tested by time and developments. I will conclude my report on ADMIE by adding one more detail: ADMIE’s strongman, Manousakis, is packing his bags for a scheduled trip to China on May 20.

Five Years of Growth on the Stock Exchange

Let’s now turn to the Stock Exchange, where it may not be entirely obvious, but it has now recorded five consecutive years of growth, and generally, anyone who complains about market performance has probably bought the… wrong stocks. The Athens Stock Exchange’s return this year has already surpassed +19%, and the General Index has already reached the milestone of 1,750 points for the first time in 15 years, climbing to 1,752.25 points at the day’s high. The next target is the 1,777.55 points level of August 4, 2010. Banks have climbed aboard the rally with returns exceeding +29% in 2025 so far. Speaking of banks, Alpha Bank “soared” to a new 9-year high thanks to the strongest quarter in its history in terms of profitability. It has gained more than +50% this year, while the average price target set by analysts is around €2.70.

MSCI’s Turn

Since we started with the Stock Exchange, let me point out that tomorrow evening the restructuring of the MSCI indices, which also concerns the Athens Stock Exchange, will be announced. The changes will be implemented after the close of the session on May 30, 2025. Interest is focused on the TITAN share, which meets the required capitalization and free float thresholds, as well as on the share of the Bank of Cyprus, which does not meet the capitalization criterion but displays other interesting characteristics, especially in light of other significant developments, such as the assessment of Greece’s credit rating in May and the upgrade of the ASE to a developed market within 2026. The MSCI Greece Standard Index currently includes 9 shares (National Bank, Eurobank, Piraeus, Alpha, Metlen, OPAP, JUMBO, PPC, and OTE), while the last change was the removal of Motor Oil in August 2024.

The Bank of Cyprus Interest

This morning, before the start of the trading session, the Bank of Cyprus will announce its first-quarter results. Analysts expect net profit in the range of 110–115 million euros, compared to €120 million in the same period last year. Last year, however, was a leap year, February had one more day, and the European Central Bank’s interest rates were higher—facts that justify a difference of about 1.5% in interest income. The Bank of Cyprus returned to the Athens Stock Exchange last September, at a price of €4.78, and today the share is trading at €6, with a market capitalization above €2.6 billion.

Developments in the HCAP Ports

At the ports still remaining in the HCAP portfolio, there is a frenzy of activity. First, in Lavrio, during the tender process for the sale of 50% + 1 share of the Lavrio Port Authority, a one-month extension was decided upon—due to increased interest—until June 20, with the agreement of all bidders. At the Port of Volos, which remains under HCAP control after the cancellation of the tender for the sale of 67% of shares, €9 million in investments have begun for dredging that will allow the docking of cruise ships, while a consultant will be hired for the new business plan, and facilities in the land zone are gradually being handed over for use by the municipality. The ports in Katakolo, Patras, and Kavala (which the Prime Minister will visit on Thursday) will not be granted collectively but separately, one by one. For Alexandroupolis, a new plan seems to be “maturing,” which is still being kept strictly confidential…

Activity at the Port of Thessaloniki

The regular General Meeting of shareholders of the Thessaloniki Port Authority will be held the day after tomorrow at noon, regarding the €2/share dividend. At the same time, expansion into the… hotel sector will be discussed, starting with the historic building of the old customs house of the port (its ground floor currently serves as a passenger terminal), considered one of Thessaloniki’s landmarks. The management’s goal is to obtain permission to renovate the building so it can operate as a hotel. This iconic listed neoclassical building was designed by architect Alexander Vallaury—with supervising engineer Eli Modiano. The Thessaloniki Port Authority is preparing for the second phase of the tender for the development of a Business Park with a logistics center on the site of the former Gonou military camp. Interest in the project has been expressed not only by the Thessaloniki Port Authority but also by Goldair Cargo with the AKTOR Group, a consortium led by Trade Logistics (a subsidiary of the Fourlis Group), Noval Property (a Viohalco Group subsidiary), and Interkat. The tender concerns the concession of the Gonou camp for at least 30 years—from licensing through to maintenance and full exploitation of the entire 672-stremma (67.2-hectare) area. The Thessaloniki Port Authority’s stock has risen 22% in the last month, and its market capitalization has exceeded €340 million.

Spiros Theodoropoulos Calls for Unity

At the Annual Open General Assembly of the Federation of Thessaly Industries (STHEV), held on Friday evening in Larissa, the president of the Hellenic Federation of Enterprises (SEV), Spiros Theodoropoulos, was present. He has been intensifying his contact with all regional business entities as part of SEV’s new “customer-centric” policy. Theodoropoulos discreetly reiterated his call for the reunification of the two business associations—STHEV (based in Larissa) and SBTHSE (based in Volos): “I understand the reasons for the split back then, but today Thessaly’s business community cannot remain divided between two organizations.” For Thessaly, support amounting to €300 million is planned to back investments expected to exceed €1 billion. At the same time, 44 investment projects have been approved under the development law with financial support of €50 million. Theodoropoulos emphasized the need for Greece to boost its productivity and increase investment. In his remarks, he referenced a motto by the late businessman Spyros Metaxas (1935–2025) of the famed cognac family: “You can win anything you desire, as long as you become passionate about it.”

The Armenia Model

While we’re still figuring out how to deal with vandals and implement student ID systems at Greek universities, faraway Armenia—scarred by decades of conflict—has decided to invest in the future by launching an educational revolution focused on technology. Ten years ago, through a public-private partnership, Armenia launched the Armath educational program, which teaches schoolchildren programming, robotics, 3D modeling, and other skills from a young age. Today, there are 650 labs operating in schools across the country, serving 17,000 active students, with the goal of guiding 5,000 young people each year toward careers in technology. And this is not just talk: Armenia already has 4,000 tech companies, turning the country into a mini Silicon Valley of the Caucasus.

The U.S. President’s “Sensitivity” and Wall Street

Before Sino-American negotiations on tariffs even began—between U.S. Treasury Secretary Scott Bessent, Trade Representative Jamison Greer, and Chinese Vice Premier He Lifeng—Donald Trump rushed to “soften” his stance by lowering the proposed tariffs from 145% to 80% as a negotiating baseline. The move by the U.S. President was no accident. It stemmed from the realization that S&P 500 companies have generated $1.2 trillion in revenue from Chinese consumers over the past 12 months. That figure is four times the total U.S. trade deficit with China. In simple terms, the Chinese market must remain open for American exporters in the S&P 500 index, who expect at least 7% of their annual revenue to come from sales in China. If that door shuts suddenly, the market consequences will be obvious. The bad news—according to American analysts—is that reducing tariffs to 80% might still not be enough to unfreeze U.S.-China trade. Analysts suggest tariffs need to fall below 60% for commerce with China to truly restart.