meeting

Euro-Dollar weakens ahead of Fed, Lagarde cites lower inflation

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Euro-Dollar weakens ahead of Fed, Lagarde cites lower inflation

The EURUSD pair declined to the lower 1.0800s after European Central Bank (ECB) speakers, including President Christine Lagarde and Bank of Ireland Governor Gabriel Makhlouf, cited lower inflation. Lagarde mentioned a decrease in wage inflation and stated that the ECB is closely monitoring this before deciding on future policy moves. Lower inflation could lead to the ECB cutting interest rates, negatively affecting the Euro and the EURUSD pair. Lagarde noted that average wage growth for 2024 fell from 4.4% to 4.2% between the ECB’s January and March meetings. She mentioned the need for more evidence of receding inflation but suggested that rate hikes could be dialed back in June if data aligns with current expectations. The ECB is divided into two camps regarding the timing of interest rate decisions. ECB Vice President Luis de Guindos, preferring to wait until the June meeting, highlighted that services inflation remains too high. The Federal Reserve is expected to complete its March policy meeting without changing interest rates but may revise its quarterly forecasts and statement, potentially affecting the US Dollar valuation. Speculation exists that the Fed might adjust its economic forecasts in the Summary of Economic Projections (SEP) and the “dot plot,” possibly revising down the forecasted rate cuts in 2024 due to persistent inflationary pressures.

Christodoulides reaffirms Cyprus-Egypt partnership

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Christodoulides reaffirms Cyprus-Egypt partnership

President Nikos Christodoulides of Cyprus expressed strong support for the enhanced strategic partnership between the EU and Egypt before his departure for Belgium. In an interview, he emphasized Cyprus’ commitment to the Strategic Partnership Agreement between Egypt and the EU, highlighting the excellent and strategic partnership between Cyprus and Egypt. Christodoulides mentioned ongoing discussions for new agreements and joint projects, particularly in human resources, and noted the importance of the Eastern Mediterranean Gas Forum (EMGF) initiated by Egypt for regional energy cooperation. He also mentioned a 2019 agreement between Cyprus and Egypt for the construction of a submarine pipeline to transport natural gas from Cyprus to Egypt. Additionally, Christodoulides discussed the strategic alliance between Cyprus, Egypt, and Greece, aiming for peace and stability in the region, and reiterated Egypt’s role as a cornerstone of stability. Lastly, he addressed Cyprus’ efforts in managing the migration crisis, expressing concern over the large migration flows arriving from Syria.

Christodoulides to address college during official meetings in Belgium

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Christodoulides to address college during official meetings in Belgium

President Nikos Christodoulides of Cyprus is visiting Bruges, Belgium, to address the College of Europe on invitation by the Cypriot students association during the national week dedicated to Cyprus. This marks the first visit by a Cypriot President to the college. Christodoulides will be greeted by Rector Federica Mogherini, speak to students and academics, and meet with Vice-President of the European Commission, Margaritis Schinas. His agenda also includes participating in European People’s Party deliberations, discussing global issues with UN Secretary General Antonio Guterres and EU heads of state, and attending the 30th anniversary of the European Economic Area. Christodoulides will have another meeting with Guterres and will return to Cyprus on Friday evening.

Bank of Cyprus rewards shareholders with generous cash dividend

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Bank of Cyprus rewards shareholders with generous cash dividend

The Bank of Cyprus has received approval from the European Central Bank to pay a cash dividend and to conduct a share buyback programme. This decision reflects the bank’s strong financial performance and strategic progress. The total distribution amounts to €137 million, with a cash dividend of €112 million and a share buyback of up to €25 million. This represents a 30 per cent payout ratio for the full year 2023, a significant increase from the previous year’s 14 per cent. The cash dividend proposed is €0.25 per ordinary share for the year ended December 31, 2023, which is five times higher than the previous year’s dividend. The share buyback programme is intended to be conducted on both the London Stock Exchange and the Cyprus Stock Exchange. The bank’s CET1 ratio on a transitional basis was 17.4 per cent as of December 31, 2023.

NatWest seeks approval to buy more stock to speed privatisation

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NatWest seeks approval to buy more stock to speed privatisation

NatWest (NWG.L) plans to seek shareholder approval for a buyback of up to 15% of its stock from the UK government as part of its privatisation efforts. This request is an increase from the previous limit of 5% per year. The bank, which is about one-third owned by taxpayers following a bailout during the 2007-9 financial crisis, aims to accelerate the government’s exit, planned by 2026. The proposed buyback, based on current market capitalisation, would be worth around £3 billion. The UK government has been reducing its stake from a peak of 84% through sales to institutional investors and directly to NatWest. Finance Minister Jeremy Hunt announced plans to sell stock to retail investors to speed up the process. NatWest’s annual meeting will also include votes on the formal appointments of chairman Rick Haythornthwaite and CEO Paul Thwaite. The bank’s shares have increased by 9% year-to-date, following a report of its highest annual profit since the bailout. However, sales of government-owned stock have been at a loss compared to the bailout price of 502 pence.

Our View: Finally something positive to say about LNG plant

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Our View: Finally something positive to say about LNG plant

The government and the CPP-Metron Consortium Ltd (CMC), contracted for the construction and operation of the Vasiliko LNG terminal, have mended their relationship after previously heading towards a costly separation. Energy Minister George Papanastasiou had considered terminating the contract with CMC due to their work stoppage at Vasiliko since the end of January and a €200 million claim against Cyprus at a London arbitration court for higher costs and alleged failure by the project manager, Etyfa, to fulfill its obligations. A meeting between CMC representatives and Papanastasiou resolved differences, and President Nikos Christodoulides subsequently inspected the project site. CMC expressed gratitude for the meeting, highlighting prior unaddressed meeting requests with Etyfa. The energy ministry will now directly manage the project, sidelining Etyfa due to its inadequate response and unclear project instructions, and will establish a body for project monitoring and a group for dispute resolution. The financial disputes remain unresolved but will be addressed by Defa and Etyfa, who had signed the contracts with CMC. The project is set to proceed, with CMC bringing in 120 workers from China with the necessary expertise, aiming for completion by the end of the year.

Cyprus lifts final Covid restriction, masks in hospitals

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Cyprus lifts final Covid restriction, masks in hospitals

Cyprus has lifted the last COVID-19 restriction, which was mandatory testing for visits to hospitals and care homes, on the fourth anniversary of the coronavirus reaching the island. The decision was announced by Health Minister Michalis Damianou after a Cabinet meeting. The change will take effect on Friday, with the amended decree to be published in the government’s Official Gazette. However, wearing a mask will still be required in hospitals, care homes, and other closed structures. This decision comes as the positive test results were a few hundred out of 80,000 samples, and hospitalizations were minimal. The coronavirus has taken 1,365 lives in Cyprus to date.

MPs hear LNG grant could be lost

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MPs hear LNG grant could be lost

Cyprus risks losing part or all of an EU grant for the liquefied natural gas (LNG) terminal in Vasiliko due to not meeting certain requirements. The LNG terminal project is 80% complete, with the floating, storage, and regasification unit at 97% and the land-based infrastructures at 50%. Cyprus has received two extensions from the European Commission for the project, with the latest extension expiring at the end of 2024. To receive the remaining €28.9 million of the €101 million grant, Cyprus must have €253 million in recognized expenditures for the terminal by the end of 2023 and complete the project with the necessary certification by the end of 2024. Failure to meet these conditions could result in losing 20% of the remaining EU grant or more.

AKEL, Greens voice concerns over Akamas

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AKEL, Greens voice concerns over Akamas

AKEL and the Green Party have expressed concerns regarding the Cyprus government’s handling of the Akamas peninsula issue. The parties met to discuss a memorandum sent by the Green Party to the government. They criticized the government for not complying with European directives concerning habitats, leading to severe criticism from the European Parliament and legal proceedings initiated by the European Commission against Cyprus. AKEL and the Green Party have raised the issue in Parliament and are monitoring the situation in cooperation with environmental organizations. The Green Party submitted memoranda to the President of the Republic and the Minister of Agriculture, expressing dissatisfaction with the government’s response and calling for upgraded protection of the Akamas area to establish a real national park. They criticized the government’s handling of administrative investigations related to Akamas, with ongoing investigations into the projects deemed destructive to the habitat. The parties are concerned about the government’s actions and the potential legal consequences from the EU.

Methane to become key criteria for future EU energy imports, official says

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Methane to become key criteria for future EU energy imports, official says

– The European Union plans to use methane emissions as a criterion for deciding its energy suppliers in the future.
– A U.N. methane conference took place in Geneva from March 18-21, with over 1,000 participants from 100 countries.
– Methane is the second-biggest cause of climate change after carbon dioxide and has a higher warming effect in the short term.
– The EU will focus on the environmental impact and carbon intensity of its energy purchases.
– In November, the EU agreed to impose methane emissions limits on its oil and gas imports from 2030.
– The EU will create “methane performance profiles” for countries and companies, favoring those that reduce emissions.
– The Geneva forum aims to advance methane emissions reduction efforts ahead of the COP29 climate summit in Azerbaijan.