Economy

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.

A career in the world of money

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A career in the world of money

Cleopatra Kitti launched Queens of Money before Covid to empower women and improve financial literacy, drawing from her own experiences with money management. She comes from a background in the corporate and financial world, having worked abroad for two decades with various prestigious clients, including governments. Kitti has served on the board of Eurobank Cyprus and is a member of the Insead Independent Directors Network. She has been involved with the International Crisis Group as a philanthropist for peace. The seed money for Queens of Money came from the United Nations Development Programme (UNDP). Kitti’s professional journey includes working for the Bank of Cyprus, founding her own PR and public affairs firm, and being engaged in various projects like the Mediterranean Growth Initiative (MGI) and a podcast called Koumanto Stin Tsepi Sou. She has faced personal challenges, including overcoming impostor syndrome and navigating life through two divorces while raising a son. Kitti emphasizes the importance of understanding and managing money effectively, especially for women, and advocates for Cyprus to be more proactive and involved in shaping EU policies.

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.

Article 23: what you need to know about Hong Kong’s new national security laws

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Article 23: what you need to know about Hong Kong’s new national security laws

Hong Kong’s 90-seat legislature passed a new national security law, known as Article 23, which updates or introduces laws to prohibit treason, sabotage, sedition, the theft of state secrets, and espionage. It includes sentences of up to life imprisonment for several offenses and up to 20 years for espionage. The law aims to tighten control over foreign political bodies and organizations in the city and includes provisions against “external interference.” The need for these laws is stipulated in Article 23 of the Basic Law, which has guided Hong Kong’s relations with China since 1997. A previous attempt to enact Article 23 in 2003 was halted after significant public protest. The law also introduces a new offense related to endangering national security through the unlawful use of computers or electronic systems, with a penalty of up to 20 years in prison. Concerns have been raised about the broad definition of state secrets and the potential impact on research and information gathering. Hong Kong’s leader, John Lee, claims the laws meet international standards and protect rights and freedoms. Additionally, Beijing imposed a national security law on Hong Kong in 2020, addressing some offenses and allowing mainland national security officers to operate in the city. China updated its own state secrets laws in 2023, with Hong Kong’s legislation aiming to be compatible with the standards of British-based common law.

Hourly labour costs increase by 5.4%

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Hourly labour costs increase by 5.4%

– The hourly labor cost in Cyprus increased by 5.4% in the fourth quarter of 2023 compared to the same quarter of the previous year.
– The components of labor cost, wages and salaries per hour worked, increased by 5.6%, and non-wage costs per hour worked increased by 4.6% compared to the corresponding quarter of the previous year.
– Seasonally adjusted, the hourly labor cost increased by 1.2%, wages and salaries by 1.3%, and non-wage costs by 0.8% compared to the previous quarter.
– The Labor Cost Index is a major European economic indicator used to assess inflationary pressures from labor market developments.

Another pivotal week

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Another pivotal week

– This week is pivotal for investors and traders trying to gauge the Federal Reserve’s next move in terms of its monetary policy.
– Adjustments have been made in the Fed rate cut expectations by looking at the US equity markets or fixed income markets.
– Wall Street giants have scaled back their rate cut bets for this year while being more optimistic for 2025.
– Controlling inflation and navigating the economy post-COVID-19 crisis have been challenging tasks for the Fed.
– Recent data on producer prices and consumer prices raised concerns among investors and traders about inflation plateauing and becoming stickier than anticipated.
– The Fed Chairman indicated that the nature of inflation and its measurement have been permanently impacted by COVID, suggesting a reevaluation of the 2% inflation target.
– Consumer prices increased by 0.4% for the month and by 3.2% from a year ago, while producer prices jumped by 0.6% on the month, double the Dow Jones estimate.
– The Fed is expected to keep the rate at its current level of 5.50% in the upcoming monetary policy announcement.
– The sticky nature of inflation reduces the incentive for the Fed to take aggressive measures to lower interest rates.
– Goldman Sachs expects the Fed to cut rates three times this year, down from an earlier expectation of four times.
– The possibility of Donald Trump returning to office could influence the Fed’s rate cut decisions, as he favors lower interest rates.
– US stock indices have experienced volatility, partly due to sell-offs among some major stocks.
– Gold recorded its first negative week in over three weeks, with its current record high being about shy of ,200. The immediate support level for gold stands at 37, with the next support level at 87, and resistance at 95.

Nvidia, ’s dizzying rally spurs rush into AI-themed ETFs

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Nvidia, ’s dizzying rally spurs rush into AI-themed ETFs

The excitement around artificial intelligence (AI) has led to a significant increase in investments in AI-themed Exchange-Traded Funds (ETFs) in the United States, with their total value rising from .55 billion to .88 billion from the previous year to the end of February, according to Morningstar data. This surge in interest is partly due to the impressive performance of companies like Nvidia, whose shares have seen substantial growth. Nvidia, recognized for its AI chips, recently introduced the Blackwell B200 chip, which is up to 30 times faster than its predecessor. The GraniteShares 2x Long NVDA Daily ETF, which aims to deliver twice the daily return of Nvidia’s shares, saw its assets double to billion. Other smaller AI-themed ETFs, such as the Themes Generative Artificial Intelligence ETF, have also seen significant growth in assets. Morningstar tracks 18 diversified AI-related ETFs, seven of which were launched in the last three years, and one was redesigned to focus more on AI. These funds collectively attracted .68 billion in inflows over the last 12 months. The interest in AI has contributed to a nearly 8% increase in the S&P 500 year-to-date, with significant gains in AI-related companies like Nvidia and Microsoft. Some ETFs, like the Global X Artificial Intelligence and Technology ETF, limit exposure to Nvidia to manage risk, while others, like the Robo Global Robotics & Automation ETF, include companies expected to benefit from AI technology. However, not all AI-themed ETFs have been successful, with the WisdomTree US AI Enhanced Value ETF experiencing outflows of .26 million in the last 12 months and underperforming compared to the S&P 500, possibly due to a lack of positions in Nvidia and other AI-related stocks.

Rich Americans keep high-end RV company rolling along

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Rich Americans keep high-end RV company rolling along

Most US recreational vehicles are produced in Elkhart, Indiana, while the Bowlus, a luxury travel trailer, is made in Oxnard, California. The Bowlus is designed to be towed by a Porsche sports car and features a 1930s design with a minimalist interior. Its top-end model costs 0,000. Demand for the Bowlus increased during the COVID-19 pandemic, and the company is now expanding by offering a lower-priced version and selling through dealerships. Bowlus trailers are handcrafted by 35 workers and the company plans to produce 100 trailers this year. The Bowlus was originally designed by a Los Angeles aerospace engineer during the Great Depression and uses a monocoque structural system, making it light but strong. Other companies are also developing luxury and battery-powered trailers, such as Aero Build and Pebble, with prices ranging from 9,000 to 9,900.

Adobe forecasts downbeat second-quarter revenue

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Adobe forecasts downbeat second-quarter revenue

Adobe forecasted its second-quarter revenue to be between .25 billion and .30 billion, which is below the analysts’ estimates of .31 billion. The company’s shares fell more than 10% after this announcement. Adobe has been incorporating AI features into its products like Acrobat, Photoshop, and Premiere Pro, and introduced a new AI assistant for Reader and Acrobat last month. However, it faces competition from startups such as Stability AI and Midjourney. For the first quarter, Adobe’s revenue increased by more than 11% to .18 billion, surpassing estimates of .14 billion. Adobe also announced a new billion stock repurchase program. The company expects second-quarter earnings per share to be between .35 and .40 on an adjusted basis. Adobe had to terminate its -billion deal for Figma in December due to regulatory issues, incurring a billion termination fee, which contributed to its first-quarter operating expenses of about .69 billion.

MiCA for cryptos by end of year, early-2025

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MiCA for cryptos by end of year, early-2025

Cyprus plans to implement the Markets in Crypto-Assets (MiCA) regulation by the end of this year or early 2025, aiming to protect investors and promote transformation in the crypto asset sector in the European Union. The MiCA framework, created by the European Commission, focuses on maintaining financial stability throughout the EU. Currently, there are no safeguards at the Union level for the crypto asset market, with only individual national legislation in place. The number of crypto-asset service providers increased from seven in 2022 to 11 by the end of that year, with a total of 16 applications pending so far this year. The Chairman of the Cyprus Securities and Exchange Commission (CySEC), Dr. George Theocharides, anticipates more CASP companies will emerge once MiCA is implemented. In 2023, CySEC conducted over 700 on-site and remote thematic inspections of supervised entities, assessed compliance with prudential supervision framework limits, and monitored Cypriot Investment Firms (CIFs) affected by Russia-Ukraine sanctions. CySEC also evaluated promotional material of over 35 CIFs, conducted investigations into CIFs, and imposed administrative sanctions totaling approximately EUR 2.2 million in 2023, with a total of EUR 6 million in administrative sanctions over the last three years. Additionally, 19 cases of CIFs had their operating licenses revoked or suspended. Dr. Theocharides highlighted the importance of the upcoming MiCA regulation for crypto-asset service providers, aimed at ensuring investor protection and market integrity. He urged investors to be cautious when investing in crypto-assets due to the associated risks. Despite challenges, the capital market in Cyprus remains of significant interest, with 82 entities receiving approval in 2023 and the number of supervised entities at 830 by the end of February 2024. CySEC also participated in events promoting financial literacy and issued warnings about entities posing as CySEC officials or imitating its website.