Greetings, then, the long weekend of four or five days was lovely, with full outings and perfect weather. Saying “back to work” in June in Greece sounds a bit utopian. Other than that, we’ve finished the… torment of basketball—we’ve said it before, let’s not repeat it—no government ever won by excessive shuffling. One side would win and the other would complain, so they should have applied the law from the start and be done with it. For your information and compliance, as they say.

The meetings and Skrekas’ election

Today will be a day of internal meetings at Maximos Mansion for K.M., since yesterday he was away in Nice, France, and starting tomorrow, he embarks on a marathon of trips to Ukraine, Moldova, and Sweden, where he’ll spend the weekend attending the Bilderberg Club session. Therefore, today he needs to have all the discussions with his close associates for the government’s weekly planning. Once he returns from abroad, the pending issue of the new secretary of ND, to replace Maria Syreggela who resigned, will be settled. I’m told that next Monday the (formal in nature) session of ND’s Political Committee will take place, to ratify the election of Kostas Skrekas. The other interested candidate for the post, ND’s general director Giannis Smyrlis, is logically headed for the ballot of Eastern Attica.

The discussion on the Preliminary Investigation Committee

At the end of this week, the Conference of Presidents of the Parliament will convene and set the date for the discussion on referring Karamanlis to the Preliminary Investigation Committee. The most likely dates are June 17 and 18, while the Parliament is also being equipped with extra ballot boxes, as 14 will be needed—one for each person based on party proposals. Given the 14 ballot boxes and 300 MPs, we’re looking at printing around 4,500 ballots, as in each box one votes on the offense attributed to the political figure based on the indictment. For comparison, in the Novartis case we had 10 boxes for political figures…

Alexis’ “Manifesto” and Famellos’ in-and-outs

Now, over at SYRIZA, a week begins that frankly feels like one from the past, as today at the Megaron Mousikis, Alexis Tsipras is reportedly taking his “new vision” for progressive forces one step further at the 2nd Conference of his Institute. Of course, Koumoundourou nearly headed for a second fiasco (after the Preliminary Committee case), as the current president of SYRIZA PS, Socrates Famellos, had informed Alexis’ staff that he would be absent from today’s event. He would have preferred the European Left Congress instead of Tsipras’ “manifesto”, even though the Left Congress is… tomorrow, Wednesday. So, once it became known that President Socrates would snub former President Alexis, the phones “caught fire” to find new tickets to Brussels. Because despite his pouting, how could Socrates withstand the group fire from Spirtzis to Polakis for such a high-profile absence? Not to mention that “all of SYRIZA” will be present at the Megaron, plus Charitsis.

Piraeus Bank: “Marathon” correspondence with the Competition Commission

Piraeus Bank is engaged in a “marathon” of correspondence and Q&As with the Competition Commission regarding the matter of Ethniki Asfalistiki. The bank’s assessment remains the same: the completion of the agreement to acquire the insurance company within the year. The legislative and technical details are many and thus the process is not easy, but it is estimated that the Piraeus Bank–CVC agreement will eventually face no obstacles.

Intracom: Analysts 0 – Journalists 2

Last Friday, Intracom Holdings held its customary annual briefing for analysts, in person and not via teleconference, at its offices on Kifisias Avenue. Although the purpose of these meetings is for analysts to be informed about each listed company’s plans, prospects, and upcoming actions, in the case of Intracom Holdings not a single analyst showed up—only two financial journalists attended. And we’re talking about a company with significant prospects, having just completed a complex corporate transformation, having entered the highly dynamic insurance sector by acquiring Europe Asfalistiki, with presence in real estate and tourism, total assets over €500 million and a capitalization on the Athens Stock Exchange of just €260 million. A full presentation was completely ignored by analysts and took place before two journalists. “And this number is sufficient” is the phrase by King Leonidas recorded by Plutarch, which Intracom Holdings seems to embrace, as Sotiris Bakagiannis, CEO of Europe Holdings, and the group’s executives were not discouraged by the guest shortage and went on with the presentation, from which some interesting elements about Intracom Holdings emerged. First, regarding Europe Asfalistiki, the group’s view is that it is the rising force of the Greek insurance market. It is the only listed company in the sector and there are high expectations for its current position in insurance sub-sectors with strong growth potential (financial, commercial, industrial risks, transport, etc.). Most importantly, it holds a license for issuing guarantee letters and intends to leverage this advantage by covering a large portion of this market, in which banks have a limited presence.

Intracom Holdings’ real estate and tourism

Beyond that, in real estate the company has acquired plots in Ano Mera, Mykonos, and plans to build a 340-bed unit to house workers, as the housing issue on the island is acute. The investment is at the building permit application phase, and the goal is to lease the unit long-term to companies operating on the island. Also, there’s a project for a hotel unit in Koufonisia, and through Intradevelopment, the company is involved in the Piraeus Bank–Dimand investment in Lavrio and the Voria investment—a €300 million project for a new entertainment and hotel hub in Marousi. Furthermore, it holds 33.3% of “Athens Beach Club S.A.” and, together with TEMES (Konstantakopoulos family) and Litti Enterprises (George Prokopiou), is participating in the over €15 million investment for the redevelopment and utilization of the Second Coast in Voula. Finally, there are shareholdings in Intralot, Aktor, Optima, etc., which alone are valued around €145 million, while shareholders will also receive a dividend for fiscal year 2024, the amount of which will be announced soon.

Is Galli Leaving or Staying? The Background at DESFA

Rumors about the departure of DESFA’s CEO, Maria Rita Galli, have been intensifying recently. The Italian manager has been at the helm of the company since 2021, with her term renewed in February 2024 for another two years, meaning it officially ends in February 2026. This is one of the highest-paid positions in Greece, with an annual compensation that many top-tier Greek managers would envy, as the CEO’s earnings at DESFA amount to €494,754 plus VAT, excluding additional expenses (travel, transportation, etc.), which are covered separately. DESFA executives, however, point out that the most likely development is the replacement of the chairman, a person appointed by the current Minister of Energy. Sources close to DESFA attribute the rumors to recent top-level management changes at Snam in Italy, clarifying, however, that so far no issue has been raised regarding the CEO’s replacement. After its privatization, DESFA is 66% owned by the company SENFLUGA, whose main shareholder is the Italian company Snam SpA. The consortium also includes Enagas Internacional SLU, Fluxys SA—three of the largest natural gas system operators in Europe—as well as the Greek Damco Energy of the Copelouzos group. The remaining 34% of the share capital remains with the Greek State through the HCAP (Hellenic Corporation of Assets and Participations).

New Ventures for M. Sallas (and Prokopiou’s Brother)

Among the newly established companies in recent days is one belonging to the Sallas family. It is “DSEducation Holding S.A.”, involved in investment services (in stocks, securities, real estate, etc.), business consulting services, and more. The initial share capital is €25,000, covered by the founding shareholders as follows: 1. Lyktos Holding S.A. (owned by the Sallas family), represented by Michalis Sallas’ son, Giorgos, contributed €12,250, corresponding to 12,250 shares (49% stake). 2. The company Uppercase Capital Partners S.A., represented by Evangelos Malesios, contributed €6,875, corresponding to 6,875 shares (27.5% stake). 3. The company named KSOLAR S.A., which deals with photovoltaic systems, based in Larissa and owned by Ioannis Katsikas, contributed €5,875, corresponding to 5,875 shares (23.5% stake). Katsikas also assumed the position of Chairman and CEO, while the other two shareholders occupy positions as board members. Last Friday, another company, Omnitrust S.A., was established, involved in building construction works, holiday accommodations, hotels, and even the wholesale trade of timber and construction materials. The company, based in Glyfada, is affiliated with the family of shipowner Dimitris Prokopiou, brother of George Prokopiou. The initial share capital is €25,000, and on the board of directors, Dimitris Prokopiou serves as chairman, his son Yiannis as vice-chairman—who also contributed the entire €25,000—while his daughter Eleni, the shipowner’s daughter, is also a board member.

Attica Bank Bonds at 103

Attica Bank’s two new bonds are currently trading at 103% of their nominal value on the Stock Exchange. Previously unknown to long-term investors, Attica Bank—which has repeatedly “burned” investors who took part in past capital increases—issued simultaneously an AT1 (Additional Tier 1) bond and a subordinated TIER II bond totaling €250 million. The interest rates were attractive, demand was strong, and this was immediately reflected in the secondary market. Both securities started positively—the very next day after the issuance.

IDEAL Holdings

All CEOs of the companies that make up the IDEAL Holdings Group will attend today’s press conference of Lambros Papakonstantinou. An interesting surprise will be the off-program appearance of Alexis Atteslis, Co-Head of Europe and Partner at Oak Hill Advisors LLP, who will demonstrate his trust in IDEAL’s management and upcoming moves. The heads of Attica Department Stores, Byte, Adacom, Bluestream (“ICT”) and Barba Stathis will present their companies’ achievements, while L. Papakonstantinou will explain why a €48.8 million capital increase is needed and where future investments and acquisitions will be targeted, with about €100 million available. IDEAL’s management has so far recorded strong returns (2.2 times the initially invested capital) after two successful divestments, totaling €181.9 million (€136 million from Astir Vitogiannis S.A and €45.9 million from Three Cents). Combined with the upcoming capital return (€0.30/share), shareholders will have received a total of €45 million (i.e., €0.98 per share). Specifically for 2025, total shareholder rewards will amount to €0.40/share.

A Reading of Stability

Only 4 stock exchanges in Europe (Greece, Denmark, Norway, and Switzerland) honored the descent of the Holy Spirit with a pleasant summer three-day holiday. In the rest of the world’s markets, geopolitical imbalances, increased defense spending, and… whatever Donald Trump’s latest inspirations are, have created a climate of insecurity and cautious investment moves. While Americans and Chinese were starting new talks in London on mutual customs duties, Russians and Ukrainians were exchanging prisoners of war. Already, the euro-dollar exchange rate has climbed to 1.14, while the Russian ruble continues to appreciate, gaining +40% since the start of the year. American investors woke up yesterday anxiously awaiting Apple’s earnings results. The iPhone maker’s stock has dropped -19% this year and lost its crown as the most valuable company in the world, falling behind both Microsoft and Nvidia. In Athens, the General Index is “digesting” the highs of 1,877 points reached a few days ago and will start today from 1,842 points, showing more of a tendency to maintain current levels rather than break into new highs… The General Index’s small fluctuations reveal that the game is currently being played off the main stock market stage. News may emerge from the shareholders’ general meetings scheduled for tomorrow for GEK TERNA, Sarantis, Prodea, Euroxx, DotSoft, and on Thursday for HELEX, MOTODYNAMICS, and Eurosymvouloi.

Government Bonds Worth $18 Trillion Issued in 2024

Every day, on foreign television and media, we hear and read about the “explosive increase in government bond issuances.” Every day we learn that governments are forced to pay higher interest rates to finance public debt, even the U.S., which has the ability to issue its own currency. In 2024, global government bond issuances hit a record, reaching $18 trillion. Around $16 trillion of that debt was issued by developed countries and $2 trillion by emerging market economies. The pandemic is not solely to blame. Global government bond issuance has nearly doubled since 2019. In the past five years, governments have issued more debt than they did in the eight years before the 2020 pandemic. Historically high public spending on social programs and defense, new tax and spending policies, as well as increased interest rates, are behind this massive surge. The consequences of this situation are already visible: Government bond prices directly impact corporate borrowing costs and private bond yields. Increased public borrowing and expenditures to service public debt restrict private investment. Fewer investments mean slower growth and even greater difficulty in servicing public debt.

The “Shadow” U.S. Central Banker

In Washington, it’s an open secret; in New York, they’ve already begun speculating. President Trump will soon announce his pick for the next Chair of the Federal Reserve. The term of the current chair, Jerome Powell, ends in May 2026, but the President of the United States is preparing to announce a successor. The bets—and the inside information—point to Kevin Warsh, a unique figure with successive degrees from Stanford, MIT, and Harvard, who has already served at the Fed as the youngest central banker during the tenure of former Federal Reserve Chairman Ben Bernanke, now a Nobel laureate. If Trump truly announces the next central banker now, it will be the first time we have a “shadow,” a “designated” Fed chief, whose views could influence markets more than those of the current chairman. A whirlwind… On Wall Street today, there is an 85% probability priced in for a 25-basis-point interest rate cut by the Fed in September, while cumulative rate cuts of around 55 basis points are expected from the Fed by the end of the year.