The city of Larnaca faces significant delays in the execution of crucial infrastructure projects worth €30 million due to a licensing standoff with Kition Ocean Holdings Ltd. Local authorities demand that these mature projects be prioritised over the broader development of the port and marina, citing pending directives from Kition’s legal team.

Transport Minister Alexis Vafeades assured StockWatch that the government remains committed to executing these projects before the larger port and marina developments, pending a resolution with Kition. This includes paying the €800,000 owed by Kition for various planning and building permits.

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These mature projects include upgrading the deteriorating marina, repairing the pier, and developing essential facilities such as the yacht club, police and customs offices, and government buildings for passport control. Additionally, plans include creating retail spaces, restaurants, green areas, and sports facilities to enhance the marina’s attractiveness.

Mayor Andreas Vyras stressed the urgency of decoupling these projects from Kition to expedite their implementation using state funds. The President of Cyprus has pledged to find a solution to liberate these projects from the current impasse and ensure their swift execution.

Minister Vafeades is finalising a report outlining all potential development scenarios with their respective pros, cons, and timelines. This report will be reviewed by the President, who will decide the optimal path forward for the development of Larnaca’s port and marina.

In a significant boost to its pioneering cancer treatment research, Theramir has successfully raised €525,000 in a bridge funding round. This capital injection is poised to support the company’s operations through the latter half of 2025, targeting a critical milestone: the initiation of clinical trials for their innovative therapy, EVmiR.

EVmiR, now patented by the European Patent Office, represents a novel approach in cancer treatment. By utilising extracellular vesicles (EVs) to deliver microRNAs (miRNAs) directly into tumours, Theramir aims to target oncoproteins—key regulators of cancer cell growth. This precision method promises fewer side effects compared to traditional treatments such as chemotherapy. The company’s technology has demonstrated efficacy in treating metastatic breast cancer and is now being tested for pancreatic and bladder cancers.

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Theramir, co-founded by Marianna Prokopi-Demetriades and Costas Pitsillides in 2016, emerged from a passionate pursuit to find a cure for cancer. Their unique technology capitalises on EVs’ natural ability to transport biological information, essentially turning them into couriers that deliver tumour-suppressive messages via miRNAs. This method requires a detailed genetic profile of the patient to enhance the therapy’s precision and effectiveness, potentially offering prophylactic benefits by identifying genetic markers linked to high-risk conditions.

The latest funding round saw participation from notable investors, including Yannos Palate, a former executive at Eli Lilly, who will join Theramir’s advisory board. His extensive experience in life sciences and pharmaceutical engagement is expected to be instrumental in forging strategic partnerships with major pharmaceutical companies. Other investors include Nicosia-based family office Exerte Partners and finance and corporate lawyer Nancy Erotocritou.

Despite the challenges posed by the limited local life-sciences ecosystem in Cyprus, Theramir has managed to attract significant investor interest, raising €2.5 million in total, including €300,000 in grants. The company’s innovative approach and lower research costs compared to major biotech hubs like Boston or London have contributed to its success.

Looking ahead, Theramir is actively seeking a licensing deal with a major pharmaceutical firm to support the clinical trials, which could span up to seven years. The co-founders are optimistic about expediting the timeline through process efficiencies, projecting a market-ready therapy by 2030. In the interim, they are also exploring new revenue streams, such as using EVmiR to treat chronic malignant wounds through a project named MIRACULOUS, which has secured additional funding.

In a bold move to position itself as a leader in research and innovation (R&I), Cyprus has unveiled a comprehensive strategy aimed at transforming the nation into a regional hub by 2035. Presented by Chief Scientist Demetris Skourides at the Cyprus Rectors’ Conference, the strategy outlines a robust roadmap designed to elevate the country’s R&I ecosystem.

The roadmap, developed after extensive consultations with over 650 stakeholders including research organisations, startups, and established enterprises, is built on simplifying processes, enhancing customer experience, and ensuring transparency. Key initiatives include the introduction of a new grants management system by 2025, aimed at reducing administrative burdens and allowing researchers to focus on their scientific and commercial pursuits.

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Cyprus has already made significant strides in innovation, maintaining its 10th position on the European Innovation Scoreboard for three consecutive years. Public universities and institutions, such as the University of Cyprus and the Cyprus Institute, have been instrumental in securing prestigious European Research Council (ERC) grants. This success is underscored by 18 ERC awards and notable advanced grants achieved by leading researchers.

Government commitment to R&I is evident with a substantial increase in competitive funding for 2021-2027, rising to €177.25 million—a 34% increase from the previous period. This funding is allocated across various sectors: 23% for research, 27% for collaboration and knowledge transfer, 21% for innovation, 15% for internationalisation, and 14% for infrastructure and skills.

Operational improvements at the Research and Innovation Foundation have drastically reduced the average time to pay from 275 days in 2019 to 61 days in 2023, and the average time to contract from 21 months to seven months in the same period. These improvements are part of a broader effort to enhance customer experience and ensure high-impact funding programmes.

A significant focus of the new strategy is bridging the gap between industry and research. Initiatives like Partner Innovation Day facilitate collaboration and knowledge transfer among research organisations, startups, and technology innovators. This collaborative approach is expected to support over 550 researchers and drive further advancements in thematic areas such as ICT, green transition, energy, and health.

Furthermore, Cyprus is fostering international collaborations, with recent engagements involving Japan’s Ambassador and the President of Japan Science and Technology Agency. These partnerships are aimed at expanding Cyprus’ global R&I footprint.

Chief Scientist Skourides emphasised the importance of competitive funding in sustaining the nation’s R&I momentum. With €22.1 million allocated for various funding calls in 2024 and an additional €4.1 million for post-doc and PhD programmes in 2025, Cyprus is well on its way to realising its vision of becoming a leading regional R&I hub.

While businesses in the US and Europe awoke on Friday to a global IT meltdown that shut down administrations, airports, and hotels, China entered its weekend largely unaffected.

KEY FACTS

• The problem turned out to have come from a software update from Texas-based cybersecurity company CrowdStrike, which generates more than half of its revenue from the United States. The company’s technology is used by many of the world’s largest banks, healthcare and energy companies.
• “The impact of Friday’s incident on China was very small, with almost no impact on local public life,” said Gao Feng, senior research director at Gartner. “Only some foreign companies in China were affected.”
• “The main reason is that domestic Chinese companies do not use CrowdStrike products, so they are not affected,” Gao said. “CrowdStrike’s customers are mainly concentrated in Europe and the United States.”
• Anecdotally, ride-hailing services, e-commerce and other internet-related systems in China were running smoothly on Friday. Chinese state media also said Friday evening that international flights at Beijing’s two airports were operating normally and that Air China, China Eastern Airlines and China Southern Airlines were not affected by large-scale technical system failures.
• One of the most notable impacts of the IT outage – including in China – was on Microsoft Windows devices trying to integrate an update to CrowdStrike’s Falcon product, resulting in a blue screen and computer reboot cycle.
• Microsoft products are widely used in China, with Windows accounting for about 87 percent of PC shipments on the mainland last year, according to Canalys. This is higher than the share of 79% for the rest of the world in the first quarter of this year.
• Microsoft Office 365 products and the Azure cloud service are operated in China by a local company called 21Vianet. It is not yet clear whether localization contributed to the limited impact of Friday’s crash.

WHY AREN’T CHINESE COMPANIES USING CROWDSTRIKE?

In recent years, the US and Chinese governments have forced domestic companies to use proprietary technology and store data locally for national security reasons.

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Canalys pointed out that the Chinese-made UOS, or Unity operating system, has seen growing adoption among state-owned enterprises and government sectors, although Windows still dominates the domestic PC market.

“There is very little impact because CrowdStrike is hardly used in China,” said Rich Bishop, CEO of AppInChina, which publishes international software in China.

“That’s partly because many of the security threats that CrowdStrike is designed to protect against come from China,” he said, adding that Chinese companies typically use products from Tencent, 360 and other businesses.

The quarterly earnings of major technology companies provide insight into the economic benefits of artificial intelligence (AI) and the long-term sustainability of significant investments in this technology. Analysts at Wedbush Securities predict that AI-driven transformations will accelerate profit growth for industry leaders like Microsoft and Google, expecting double-digit percentage increases. Conversely, Apple, which has been slower to embrace AI, is projected to see only a 3% rise in profits.

Apple recently introduced its Apple Intelligence system, but its impact is anticipated to be minimal until the release of the iPhone 16 in September, which will feature AI capabilities across all models. Analyst Angelo Zino of CRFA notes that while Apple’s AI advancements will take time to materialise fully, other tech giants are already reaping the rewards.

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Meta has significantly increased its AI investments, channelling billions into semiconductors, servers, and data centres necessary for developing generative AI technologies. However, CRFA predicts that Meta’s revenue growth may slow by year-end due to these substantial AI expenditures.

Microsoft, expected to report its earnings on July 30, has invested $13 billion in OpenAI, the company behind ChatGPT, positioning itself well to capitalise on AI in content creation. Despite this, Jeremy Goldman of eMarketer emphasises that Microsoft needs to meet market expectations but believes it has the necessary time and support.

Amazon’s earnings, due on August 1, will be scrutinised for indications that its Q1 growth, driven by its cloud services arm AWS, can be sustained. Investors are keen to see whether AWS’s performance represents a consistent trend or a one-time spike.

Gold has surged past the $2,400 per ounce mark, driven by increasing demand from investors seeking safe havens amidst rising political uncertainty in the United States. The recent announcement by President Joe Biden that he will not seek re-election has intensified market volatility. Biden’s decision to endorse Vice President Kamala Harris for the Democratic nomination has added to the political unpredictability, with former President Donald Trump emerging as a strong contender in the polls.

This political turbulence has led investors to turn to gold, traditionally considered a secure asset during times of instability. Additionally, the weakening US dollar has further bolstered gold prices. As markets opened on Monday, the dollar’s decline provided additional momentum for gold, as a weaker dollar typically enhances the metal’s appeal by making it cheaper for holders of other currencies.

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The ongoing pre-election campaign in the US, coupled with recent events such as an assassination attempt on Trump in Pennsylvania, has created a climate of uncertainty. This has prompted investors to seek refuge in gold, driving its price to new highs.

Market analysts hold mixed views on the long-term impact of a potential Trump victory on gold prices. Some anticipate that Trump’s policies, which may include higher trade tariffs and increased US-China tensions, could strengthen the dollar and bond yields, traditionally inversely related to gold prices. However, expectations of looser fiscal policies under a Trump administration might counteract this effect, sustaining the demand for gold.

The recent performance of gold reflects heightened investor expectations that the Federal Reserve may shift towards monetary easing. Lower interest rates generally favour gold, as they reduce the opportunity cost of holding the non-yielding asset.

As autumn approaches, investors are focusing on the European Central Bank’s (ECB) possible rate cuts in September, a pivotal decision following a period of stabilised interest rates over the summer. The ECB’s policy actions are under scrutiny due to their significant impact on economic recovery and financial stability across the Eurozone.

In response to surging inflation last year, the ECB initiated a series of interest rate hikes to curb price increases. However, as inflationary pressures have started to subside, mainly due to a drop in energy prices, the financial community eagerly anticipates the ECB’s next steps. The central bank’s future policy decisions will hinge on various economic indicators, including inflation rates for July and August, wage growth, corporate profit margins, and labour productivity.

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Christine Lagarde, the ECB President, has maintained a cautious tone, suggesting that any decision to cut rates will depend on the alignment of inflation trends with the ECB’s target of 2% by mid-2025. Despite facing criticism for its delayed response to initial inflationary trends, the ECB has regained some credibility through more precise economic forecasting and strategic rate adjustments.

The September meeting is expected to be data-driven, with investors closely monitoring how the ECB interprets recent economic data and adjusts its monetary policies accordingly. The financial community’s focus on the ECB’s decisions underscores the broader economic narrative in Europe, balancing stringent monetary policies with the need for sustained economic growth and stability.

As the ECB navigates these complex economic dynamics, investors and market participants remain vigilant, aware that the central bank’s actions will significantly influence financial markets and economic trajectories across the Eurozone. The anticipation leading up to the September meeting highlights the critical role of the ECB in steering the Eurozone towards economic stability and growth amidst evolving global and regional economic conditions.

Cyprus is witnessing a significant boost in tourism from Poland, with growing numbers of Polish tourists bolstering the sector. The Tourism Development and Promotion Company of the Famagusta Region, in collaboration with local hotels, recently participated in a roadshow organized by the Deputy Ministry of Tourism. This event, held in Warsaw, Krakow, and Katowice, aimed to strengthen existing collaborations and showcase Cyprus as an attractive year-round destination.

The strategic focus on the Polish market has yielded positive results, thanks in part to the robust connectivity between Larnaca Airport and several Polish cities through direct flights. This ease of access has been crucial in attracting Polish tourists, enhancing both summer mass tourism and niche tourism throughout the year. The increased interest from Polish tour operators indicates a growing recognition of Cyprus as a prime holiday destination.

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George Kafkalias, an official from the Famagusta Tourism Board, emphasized the potential of the Polish market to become one of the most significant sources of tourists for Cyprus. He highlighted the importance of building on the positive trends observed in recent years and continuing to invest in this market. According to Kafkalias, the connectivity between Larnaca Airport and various Polish destinations is a pivotal factor in further developing this market segment.

The efforts to tap into the Polish market are already showing promising results, with expectations that tourist arrivals from Poland in 2024 will surpass those of the previous year. This optimistic outlook is based on the increased interest from Polish tour operators and the positive feedback received during the roadshow.

The focus on promoting Cyprus’ diverse tourism offerings, including cultural experiences, natural attractions, and special interest tourism, has resonated well with Polish tourists. The emphasis on year-round tourism also aligns with the broader strategic goals of Cyprus’ tourism sector, aiming to reduce seasonality and promote sustainable tourism growth.

Cyprus is advancing its annual financing programme efficiently, aligning closely with its fiscal targets for 2024. The approved borrowing ceiling stands at €1.3 billion, predominantly sourced from European Medium-Term Notes (EMTN). So far, Cyprus has successfully raised nearly €1.2 billion, including a recent €1 billion, seven-year fixed-rate bond issued in June.

The financing strategy also includes public treasury bills and domestic bonds aimed at individual investors. To date, €87.5 million of the targeted €120 million in treasury bills and €6.4 million of the intended €40 million in domestic bonds have been issued. Furthermore, Cyprus has secured €92.75 million in loans from supranational organisations, progressing towards the €140 million goal.

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Public treasury bills, set to mature in October 2024, offer an annualised yield between 3.65% and 3.75%, presenting an attractive option for non-professional investors and businesses seeking secure liquidity management.

Sophic, a financial platform, plans to acquire a portion of the upcoming treasury bill issuance, replicating its strategy from June where it, alongside Athlos Capital, acquired over 80% of the €21.5 million issuance for client allocation.

Cyprus’ prudent financial management and structured approach towards funding reflect a robust fiscal framework aimed at maintaining economic stability and fostering investor confidence. This meticulous execution of the financing programme underscores Cyprus’ commitment to strategic fiscal governance and economic resilience, which are vital for sustaining long-term growth.

The ongoing success of Cyprus’ financing programme highlights the nation’s proactive fiscal planning and the effectiveness of its public debt management office. By securing diverse funding sources and maintaining investor engagement, Cyprus continues to bolster its financial stability and economic prospects.

As Cyprus progresses with its financing activities, the focus remains on sustaining fiscal discipline while leveraging favourable market conditions to optimise funding costs. This approach not only ensures the fulfilment of immediate financing needs but also lays a solid foundation for future economic resilience.

Recent geopolitical developments and policy decisions by former President Donald Trump and President Joe Biden have led to a significant decline in global semiconductor stocks. The Biden administration’s consideration of new export controls aimed at restricting the sale of critical chip-making equipment to China has particularly impacted industry giants such as ASML, Nvidia, and TSMC. These measures are part of broader efforts to curb China’s technological advancements and safeguard national security. In addition, Trump’s comments on Taiwan’s strategic importance in the semiconductor sector have further exacerbated market uncertainties.

Biden Administration’s Export Controls

The Biden administration’s potential sweeping restrictions on the export of advanced semiconductor manufacturing equipment to China have created significant ripples across the industry. Bloomberg reported that these controls could severely impact China’s ability to produce cutting-edge chips, a move seen as part of a strategic effort to maintain US technological superiority and protect national security interests. The impact of these policies is evident in the stock performance of key players in the semiconductor market. For instance, ASML, a leading supplier of photolithography machines essential for chip manufacturing, has seen a sharp decline in its stock value. Similar declines have been observed in other major firms like Tokyo Electron, which supplies critical equipment to semiconductor manufacturers globally.

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Trump’s Comments on Taiwan

Compounding these developments are recent comments from former President Donald Trump regarding Taiwan. Trump has underscored Taiwan’s pivotal role in the global semiconductor supply chain, given that it is home to TSMC, the world’s largest contract chipmaker. His remarks have heightened concerns over the geopolitical stability of the region and the security of the semiconductor supply chain. The potential for increased tensions between China and Taiwan, and the implications for global semiconductor production, have added to market volatility.

Market Reactions

The combined effect of these geopolitical and policy-related uncertainties has led to significant stock market reactions. Companies like Nvidia, which rely heavily on the global supply chain for semiconductors, have experienced marked declines in their stock prices. The broader semiconductor industry, which is already grappling with supply chain disruptions and fluctuating demand, faces additional pressures from these geopolitical dynamics. Investors are particularly wary of the long-term implications of restricted access to critical technologies and the potential for retaliatory measures from China.