-Hello, a brief introductory note before we dive into today’s updates. SYRIZA has put forward a proposal for the preliminary investigation committee regarding the Tempi incident, implicating the Prime Minister among others. They appear to be strategizing for additional support from Kasselakis and other interested parties to ensure its passage. It’s perplexing how this party, responsible for the tragic events in Mati in 2018 that resulted in 104 deaths, continues to act with such audacity. On that fateful night, key figures including Tsipras and Famellos were in attendance at the Fire Service’s coordination center, displaying an apparent ignorance while authorities had already confirmed multiple fatalities. You might wonder, “Why are we surprised?” This is precisely why, six years later, SYRIZA finds itself languishing at 5%, teetering on the edge of irrelevance and political decline.
Delegation and Egyptian Relations
-Now to current affairs. After extensive discussions, the details of the meeting with Egyptian officials concerning the Monastery of Sinai were finalized yesterday. Initially, the plan was to dispatch a delegation today comprising ministry officials led by Giorgos Kalantzis, the long-serving Secretary General for Religious Affairs who has been in the role for over a decade. He is familiar with the complexities of the situation and the Egyptians—who often don’t share a common agenda. While they seek good relations with Greece, they also face internal challenges and financial motivations. In light of this, a visit from Gerapetritis was anticipated. Ultimately, the decision was made to elevate the visit’s status, bypassing a preliminary meeting with the local Sinai chief and positioning the Foreign Ministers as the main participants. This adds a political layer to what is fundamentally a procedural matter. However, any negotiations gaining such high visibility are rarely straightforward.
The Elusive Signature
-The matter concerning the Sinai Monastery is intricate, but the crux is that negotiations over its property issues have been ongoing for about a year. Alexandra Papadopoulou has been overseeing this from the Foreign Ministry, with Kalantzis managing the practical details. A draft agreement has been ready since late February, waiting for signatures from Egyptian authorities to allow the Monastery’s abbot, Archbishop Damianos, to sign as the “third party.” The Egyptians signed off on everything except one critical signature, which has been consistently postponed. The Monastery was informed that the agreement was on Al Sisi’s desk; however, this past Monday, they began to worry as they heard about an agreement but hadn’t actually seen it. Then, Wednesday’s ruling from the Ismailia Court of Appeals further complicated matters.
Ongoing Discussions on Spatial Planning
-June, which commenced yesterday, is set to be a month filled with discussions and initiatives regarding spatial planning. Just days after the decision to advance with the regulation on the Building Code (NOK), Papastavrou is presenting the Presidential Decree, proving pessimists wrong who predicted prolonged delays. New regulations for small settlements are also on the horizon. Today, the leadership from the Environment Ministry is reportedly holding an internal meeting at the Maximos Mansion to discuss progress on the Local Spatial Plans, which need to be prepared for completion by 2027.
OECD Conference and Trade Discussions
-These days, where economic officials gather, discussions inevitably lead to the topic of customs duties with the Americans. This pattern will continue today at the OECD Conference of Economy Ministers in Paris, where Pierrakakis is attending. Although the official agenda may differ, conversations will veer towards tariffs between Europe and the U.S., as well as global corporate taxation set at a minimum of 15%.
National Bank and Interamerican Developments
-Now shifting to market news. As previously mentioned, National Bank has been significantly impacted by recent developments concerning Ethniki Insurance, prompting them to devise a new strategy. The insurance sector appears to be a priority for the bank, as a solution for the future is necessary. While unofficial statements suggest that higher powers won’t interfere in the dispute between National and Piraeus, I remain skeptical. I doubt they will allow the banking system to deteriorate under current circumstances. It seems National Bank is aware of this and is exploring options, engaging in discussions with Interamerican. This relationship is progressing well, with both parties finding common ground. However, no agreements are yet finalized as National is also considering a smaller insurer. But my money’s on Interamerican. Typically, such relationships are denied until made public, and if negotiations don’t advance, it’s as if they never happened.
National Bank’s New Strategy for “Red” Loans
-Continuing with National Bank, P. Mylonas recently revealed at the General Assembly their intent to provide loans to “red” borrowers who have successfully transitioned to “green.” This initiative appears focused on restructured loans now handled by servicers. National’s management, which places a high priority on retail banking, aims to assist these customers in buying back their properties from servicers after cleaning up their credit histories. This strategy would foster National’s credit growth in retail while granting distressed borrowers a second chance. Naturally, this will require approval from the SSM.
Banking Interest in Crete
-Following visits from Piraeus and Eurobank management to Crete, Attica Bank has also ventured there. Having acquired Pancretan Bank, it now has substantial resources on the island. Crete is emerging as a promising target for credit expansion for all banks. The island’s extensive hotel infrastructure, coupled with the ongoing need for upgrades to meet environmental standards and various infrastructure projects, establishes it as fertile ground for credit growth. Bankers believe the Northern Road Axis of Crete (BOAK) will catalyze significant business activity, leading to a push for a robust credit portfolio originating from Crete.
Ongoing Bluehouse Controversy in Cyprus
-The situation in Cyprus remains tumultuous concerning Bluehouse, owned by Victor Pisante and Charis Pandis, whose license was revoked by the Cyprus Securities and Exchange Commission due to mismanagement and reputation concerns. The Bluehouse Accession Property fund is currently undergoing voluntary liquidation, with Remova Holdings acting as the liquidator—though there are complaints that holding companies shouldn’t serve in this capacity under Cypriot law. Eurobank Cyprus has come under fire for appointing this liquidator, but they maintain Remova wasn’t their choice; it was selected by 85% of the fund’s shareholders. Eurobank emphasizes that they did not officially appoint Remova, as critical conditions remain unmet. The saga of Bluehouse in Cyprus is far from over.
Approval Awaited for New Hotel Beneath the Acropolis
-A new seven-story hotel project on Robertou Galli Street, situated just below the Acropolis, awaits approval this week—barring unforeseen issues, which are common with the Ministry of Culture’s processes. The project involves the transformation of an old building with preserved façades and the addition of new floors. The Central Archaeological Council must review the plans due to the building’s significance and location. This initiative is set to create a seven-story hotel beneath the Acropolis.
The Upcoming New Customs Code
-This week, the government’s financial team will unveil the new Customs Code for public consultation, aiming to modernize (i.e., simplify and expedite) procedures, lower costs, and facilitate international trade after 23 years. The Ministry of Finance is not reinventing the wheel; rather, it is adopting EU legislation, integrating best international practices, and focusing on digitization, transparency, and ease of transactions. Complete digitization of procedures via ICISnet, eliminating paper usage, will be the initial step. Key provisions of the New Customs Code will include the use of digital signatures during customs inspections, electronic notifications for fines, and stricter penalties for product undervaluation, as well as extended customs office hours via electronic application.
What Greek Entrepreneurs Seek in Kyiv
-A high-level delegation from leading Greek companies focused on Infrastructure and Defense arrived yesterday in Ukraine’s capital after traveling through Moldova by road. This business mission, organized by the Ministry of Foreign Affairs in collaboration with Enterprise Greece, includes representatives from GEK TERNA, Metlen Energy & Metals, Onex Shipyards & Technologies Group, Steelmet-Viohalco, Elmon SA, EFA Ventures, Theon Sensors, and Fieldbox SA. The mission is spearheaded by Deputy Foreign Minister Tasos Chatzivasileiou and Secretary General for International Economic Affairs and Openness Dimitris Skalkos, along with Enterprise Greece officials. The opportunities for involvement in arming and rebuilding Ukraine are immense, especially with the EU committing €50 billion through the Ukraine Facility (2024–2027) and the recent SAFE program introducing €150 billion in defense loans, 65% of which are earmarked for EU, Norwegian, and Ukrainian companies…
Market Trends: Sell in May
-While profits are vital, securing them is essential. This sentiment led the Athens Stock Exchange (ASE) to conclude the week in the red, experiencing its worst performance in seven weeks with a loss of approximately 45 points (around 2.4%) from its 15-year peak of 1,876 points. Nonetheless, some stocks continued their impressive trajectories. Athens International Airport managed to surpass the €10 mark for the first time last Friday. Similarly, ADMIE reached a historic high of €3.25, experiencing five consecutive gains. Profile stock also shone brightly, reaching €6, spurred by a placement of 1.41% of its share capital and the general meeting’s approval for a €0.064 dividend per share. Profile’s gain positively influenced other tech stocks, with Ilida climbing above €2.80 for the first time, while Quality & Reliability, Performance Technologies, and CPI all saw notable increases.
MSCI Rebalancing Impact
-Additionally, the MSCI index rebalancing pushed the ASE’s total trading volume beyond €600 million. Piraeus Bank led the way with €143 million in trades, followed closely by Alpha Bank at €125 million. Other notable traded stocks included Metlen (€65 million), NBG (€54 million), OPAP (€51 million), Eurobank (€49 million), OTE (€28 million), Jumbo (€14 million), PPC (€12 million), and GEK TERNA (€10 million).
BIOTER on the Brink of Delisting
-With a market cap hovering just above €3.6 million and shares priced over 20 cents—26% lower than six months ago—BIOTER has long been classified in the “Surveillance” category. Last Friday, the ASE management suspended its trading. Under new regulations, failure to resume trading within a year will result in permanent delisting. BIOTER’s management is contesting this decision, claiming to have settled with creditors and expecting a substantial interest reversal that could significantly enhance its financial standing. However, after similar claims made last year, pressure is mounting on BIOTER’s management.
TOYOTA Teams with Motodynamics
-TOYOTA continues to hold its position as the leading car manufacturer in Greece. The brand has developed its own extensive network, showing strong performance. However, it chose ASE-listed Motodynamics, led by Paris Kyriakopoulos, for exclusive representation in the Cyclades, including a full-service unit in Syros. A similar exclusive arrangement exists for the Achaia region. The key to these agreements likely lies in efficient service departments and after-sales support. Given the current shortage of skilled labor, multinational companies are finding it challenging to secure reliable partners and service shops willing to comply with stringent corporate demands. Motodynamics has demonstrated its ability to meet these needs, making further collaboration likely.
Stock Market Resilience Amid Challenges
-On Friday, as the session was concluding at 5 p.m., trading volume on the Athens Stock Exchange reached over €200 million. By 5:15 p.m., it surged past €600 million due to MSCI rebalancing and heightened interest from international investors—primarily benefiting HELEX’s revenue fund. In the first five months of the year, the ASE has already achieved its full-year targets, with the market capitalization of listed companies (€125 billion) exceeding 50% of Greece’s Gross National Income (€240 billion). ELSTAT is expected to announce Q1 GDP this coming Friday. Ahead of that, the European Central Bank is anticipated to reveal its eighth consecutive euro rate cut, while the Public Debt auction is expected to affirm the country’s improved credit rating. In a global economy marked by volatility and uncertainty, the Athens Stock Exchange has seen remarkable growth, with the General Index up 7 months consecutively. Since November 2024, the Index has increased by +33%, the Bank Index by +61.8%, the large-cap index by +38%, and the mid-cap index by +20.42%. While many predict a looming “correction” or “consolidation phase,” investors are driven by FOMO (Fear of Missing Out), eager to take part in the ongoing momentum. Even in Germany, despite two years of recession, the DAX index rose +6.67% in May, marking its strongest performance for the month since 2020. Anticipation is high for the upcoming meeting between Chancellor Friedrich Merz and U.S. President Donald Trump on June 5, just days before the 90-day tariff ultimatum expires.
Wall Street Signals
-Last week marked another good week—and an overall positive month—for U.S. stock markets. Wall Street is witnessing a rise without the usual market pros, absent institutional players. The S&P 500 concluded May up +6.2%, while the Nasdaq rose +9.6%, marking their strongest month since November 2023. Currently, the U.S. and India are the most expensive stock markets globally, with a P/E ratio of 22 times forward earnings, outpacing major markets in Europe and Japan, which trade at ratios of 14.3 and 13.7, respectively. This disparity raises caution among professional fund managers. Institutional investors have been steering clear of Wall Street, while retail investors continue to boldly participate, seemingly unshakeable. Short positions on the S&P 500 have reached 2.3%, the highest in seven years, with hedge funds’ shorting of Nasdaq stocks hitting a four-year peak at 41%.
Lessons from Builder.ai
-In California’s famed Silicon Valley, a popular saying is: “fake it till you make it.” In the high-tech investment space, this often indicates pretending everything is fine until a real market-winning innovation surfaces. Builder.ai, a London-based startup established in 2016, aimed to simplify app development through its AI platform, Builder Studio. It raised over $445 million from investors like Microsoft and SoftBank, achieving a valuation of $1.5 billion in 2023. However, it was later revealed that the platform heavily depended on human developers rather than AI. By 2023, its inflated revenues were exposed, sinking from $180 million to just $45 million in real sales, with the remainder comprised of dubious transactions within subsidiaries. Recently, the company filed for bankruptcy, owing $85 million to Amazon and $30 million to Microsoft. Founder Dev Dugal resigned amid a U.S. fraud investigation and allegations of money laundering in India, leaving a trail of chaos and debt for employees and customers alike. Builder.ai’s tale serves as a cautionary reminder of the pitfalls in high-stakes innovation.
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