KEY FACTS

• Drugstore chain Walgreens was the worst-performing company in the S&P 500, a benchmark that tracks the share prices of the 500 largest U.S. companies. In the first six months of the year, Walgreens’ stock price halved to its lowest level since the mid-1990s, coinciding with the company’s plans to close up to a quarter of its locations as analysts predicted Walgreens’ worst annual profit since 2013.
• Lululemon, the high-end athletic apparel company, is the second-worst performing stock YTD on the S&P, as analysts expect the retailer to report its worst annual revenue growth since Lululemon went public in 2007 ., other than the fiscal year ending in January. 2021.
• Intel, the S&P’s third-worst performer, was perhaps the most surprising loser, given that rival Nvidia and other silicon chip companies have been among the best-returning investments this year amid the AI ​​frenzy. Intel’s stock has largely been a victim  of the company’s prolonged decline in business competition has intensified, with some analysts going so far as to declare Intel a “broken company.” Intel’s first-quarter earnings of $1.8 billion before interest, taxes, depreciation and amortization were the second worst first quarter since at least 2000, an improvement over last year’s EBITDA of $962 million. , but represents an 82% drop from $10.3 billion in the first quarter of 2020. For reference, Nvidia’s net profit for the spring quarter rose from $1.1 billion to $17.3 billion from 2020 to 2024
• Boeing, the 10th largest returner in the S&P, certainly wasn’t shockingly low. Its stock market woes came as the airline faced what has become a public relations nightmare after several of its commercial jets broke down. That led to a Justice Department investigation, a congressional hearing focused on its problems, and this spring its worst quarterly earnings in eight quarters. All of this has disappointed investors, and Boeing is on a five-year streak of negative earnings.
• For shares of entertainment giants Warner Bros. Discovery and Paramount Global, the fifth and twelfth biggest losers in the S&P, respectively, had a far from picture-perfect 2024 as both HBO parent WBD and CBS parent Paramount struggled with shaky balance sheets. WBD and Paramount reported net losses of $966 million and $563 million, respectively, in the first quarter — far worse than Wall Street’s Hollywood darling Netflix’s net income of $2.2 billion.
• Such negative headlines weighed on entertainment conglomerates, and the expected loss of WBD’s NBA rights led to a 10% one-day selloff on April 30, while Paramount shares tumbled 8% on June 11 after the company ended talks to sell Skydance Media, managed by the son of billionaire Larry Ellison – David Ellison.

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A recent study highlights a significant shift in Cypriots’ payment preferences, with a marked increase in contactless payments. This trend, driven by convenience and security, underscores the growing digitalisation of financial transactions in Cyprus.

Contactless payments have become the preferred method for many Cypriots, especially for everyday transactions like retail purchases and dining. The convenience of tapping a card or smartphone and the reduced physical contact, accelerated by the COVID-19 pandemic, are key factors.

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Cypriot banks have facilitated this transition by upgrading payment infrastructure and promoting contactless benefits. Many now offer contactless-enabled cards as standard, and there has been a rise in contactless payment terminals across the island. Enhanced security features, such as encryption and tokenisation, reduce fraud risks, adding to their appeal.

Digital wallets and mobile payment solutions like Apple Pay and Google Pay have further driven adoption. These platforms allow quick, secure payments via smartphones, resonating with tech-savvy consumers.

This shift reflects broader trends in digitalisation and financial innovation in Cyprus. As consumers seek more convenient and efficient services, businesses offering contactless payment options are likely to see increased satisfaction and loyalty.

However, ensuring accessibility for all, including the elderly and less tech-savvy, is essential. Financial institutions and businesses must provide education and support to help all consumers benefit from digital payments.

The Pre-Accelerator Programme at CYENS has officially begun, offering a unique opportunity designed specifically for researchers to bridge the gap between innovative ideas and market-ready solutions.

“Tailored for CYENS researchers and guided by esteemed professors from the University of Cyprus, this programme is a pivotal step for those aiming to transform groundbreaking research into viable, impactful startups,” the post noted.

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It also listed the following key benefits of the programme:

• Structured Framework: The pre-accelerator provides a comprehensive framework, guiding researchers through crucial stages of commercialisation, from concept validation to business model development.
• Experienced Mentors: Participants will engage with seasoned mentors who have successfully transitioned from research to entrepreneurship, offering invaluable insights to refine ideas, avoid common pitfalls, and expedite market entry.
• Essential Resources: Researchers will gain access to funding opportunities, legal advice, and networking events—vital resources for turning research into successful ventures.
• Skill Development: The programme enhances entrepreneurial skills through intensive workshops and training sessions covering business planning, market analysis, intellectual property management, and more.
• Collaboration and Networking: Participants will connect with like-minded researchers and entrepreneurs, fostering collaborative projects, partnerships and co-founding opportunities to expand the impact of their research.
• Visibility and Exposure: Researchers will have the chance to showcase their projects to potential investors, industry leaders, and strategic partners, attracting the support and resources needed to bring their innovations to market.
• Industry Mentors: Starting in July, participants will be paired with industry experts who will guide them through the commercialisation process with real-life experiences and insights.

“This programme is essential for researchers looking to turn their innovative research into successful startups and is a testament to CYENS’ commitment to fostering entrepreneurship and innovation,” the post concluded.

Cypriot banks have reported a narrowing of the interest rate spread, signalling a shift in the nation’s financial landscape. This development, observed by key financial institutions, reflects changes in the economic environment and the banking sector’s response to evolving market conditions.

The interest rate spread, the difference between the interest rates charged on loans and the interest rates paid on deposits, is a critical indicator of a bank’s profitability and economic health. A narrowing spread suggests that banks are adjusting their strategies to balance competitive pressures with the need to maintain financial stability.

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Several factors contribute to this trend. Firstly, the ongoing low-interest-rate environment, influenced by the European Central Bank’s (ECB) monetary policies, has pressured banks to reduce lending rates to stimulate economic activity. While beneficial for borrowers, this compresses banks’ margins, necessitating adjustments in deposit rates to sustain profitability.

Secondly, increased competition within the banking sector has driven institutions to offer more attractive rates to both depositors and borrowers. This competitive dynamic is essential for attracting and retaining customers, particularly as digital banking and fintech solutions become more prevalent. Banks are compelled to innovate and provide better value propositions to remain competitive in this rapidly changing market.

Moreover, the narrowing spread reflects banks’ efforts to support economic recovery post-pandemic. By offering lower lending rates, banks aim to facilitate access to credit for businesses and consumers, thereby stimulating investment and consumption. This approach aligns with broader economic recovery strategies aimed at revitalising growth and employment.

However, the narrowing interest rate spread also poses challenges. Reduced margins can impact banks’ profitability and their ability to absorb financial shocks. As such, banks must carefully manage their risk profiles and operational efficiencies to sustain long-term stability.

The Cyprus government has submitted a bill to the House of Representatives plenary, aiming at meeting the necessary preconditions for the Republic of Cyprus to join the United States Visa Waiver Programme.

The bill which was approved by the Cabinet on 19 June, authorised the Minister of Justice and Public Order to present it to the House of Representatives for enactment.

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The primary objective of this bill is to ratify the agreement, following Article 169.2 of the Constitution, between Cyprus and the US governments on travel information cooperation. This agreement was signed in Washington D.C., on June 17, 2024.

The agreement establishes a framework for cooperation between the two countries in evaluating, reviewing, and exchanging travel information. It also aims to develop risk assessments to identify specific individuals travelling internationally, who may pose a security threat to either of the involved nations.

At present, Cyprus, Romania, and Bulgaria are the only EU member states whose nationals still need a visa to enter the US.

Cyprus’ Energy Minister has expressed significant concern regarding the potential withdrawal of a crucial €657 million subsidy from the European Union, earmarked for the EuroAsia Interconnector project. This development poses a substantial risk to Cyprus’ energy strategy, potentially undermining efforts to enhance energy security, diversify energy sources, and transition to a more sustainable energy future.

The EuroAsia Interconnector aims to link the electricity grids of Cyprus, Israel, and Greece through a subsea cable. This project is designed to end Cyprus’ energy isolation, integrate renewable energy sources, and provide a reliable energy supply. It is also strategically important for the EU, contributing to broader goals of energy security, market integration, and sustainability within the region.

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The Energy Minister’s concerns arise from indications that the European Commission might reconsider the funding due to delays and uncertainties surrounding the project’s implementation. The potential withdrawal of the subsidy would jeopardise the project’s viability and the benefits it promises. The minister emphasised the critical nature of the funding for overcoming the financial and logistical challenges inherent in such a large-scale infrastructure project.

Cyprus has been aligning its energy policies with EU directives, focusing on reducing greenhouse gas emissions, increasing renewable energy, and improving energy efficiency. The EuroAsia Interconnector is crucial for these efforts, expected to facilitate the integration of renewable energy, reduce reliance on fossil fuels, and lower electricity costs for consumers. Losing EU support would complicate these objectives, potentially delaying Cyprus’ energy transition.

The Cypriot government is likely to intensify diplomatic efforts to reassure the European Commission of its commitment to the project. This may involve presenting revised timelines, demonstrating progress, and addressing any concerns about project management. Ensuring transparency and effective communication with EU officials will be crucial.

The European Union will impose tariffs of up to 37.6% from July 5 on imports of electric vehicles made in China, EU officials said, raising tensions with Beijing in Brussels’ biggest trade case yet.

KEY FACTS

The tariffs are expected to be in effect for 4 months, during which the “intense” trade negotiations between the European Union and China are expected to continue.

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The European Commission’s provisional tariffs ranging from 17.4% to 37.6% are designed to prevent subsidized cheap Chinese electric cars from flooding the European market

The new duties will vary for different Chinese manufacturers. For example, a rate of 17.4 percent is foreseen for BYD, 19.9 percent for Geely, and 37.6 percent for SAIC.

The temporary trade defense measures are being imposed because Chinese companies are in a more privileged position than their competitors, benefiting from illegal state subsidies, the European Commission said in June.

ACCENT

China does not want to be drawn into another tariff war while it is still trying to cope with new import tariffs recently imposed by the US. Washington effectively ended duty-free imports of a number of goods worth $18 billion, including electric cars. Coming under the blows of the European Commission, Beijing promises to take all necessary measures to protect Chinese companies.

KEY STORY 

The EC’s actions are related to an investigation the commission launched at the beginning of October last year, aimed at checking the Chinese government’s subsidized imports of electric cars from Beijing. The EC concludes that such a state subsidy exists and it represents economic harm to European producers by undercutting prices.

Overcapacity in the Chinese industry (not just in the electric car market)  is seen as a major problem, including by businesses in Europe,  according to a survey.  Recently, EC President Ursula von der Leyen commented to the Financial Times that Beijing has a huge overcapacity that is flooding the EU market with artificially cheap goods and gave a clear signal of a response.

First steps as part of this broader economic stand-off were taken by the US by effectively ending zero tariffs on imports from China. Tariffs on a number of goods with a total value of 18 billion dollars were increased, with the minimum increase being 0.25%.

The EU has also said it will take similar measures in a bid to tackle subsidized imports from China that undercut European prices. Some of these measures will probably affect the import of solar panels, the parts of which are mainly Chinese. We go back even further to a US-EU meeting in Leuven in early April of this year where an agreement was reached to strengthen cooperation in clean energy markets. Shortly thereafter, the US imposed higher tariffs on imports of certain goods from China.

All these concerns about the electric car market in Europe are not unfounded. BYD, China’s largest electric car maker, unveiled its models in Europe last month. In December last year, BYD announced its plans to build a factory in Hungary. China’s Nio opened a new showroom in Amsterdam, and in April Chery entered into a joint venture with Spain’s Ebro-EV Motors to develop new electric vehicles.

The European Commission is considering the imposition of tariffs on popular online retail platforms Shein, Temu, and AliExpress. This move underscores the EU’s ongoing efforts to address competitive imbalances and protect local businesses from the rapid expansion of these Chinese e-commerce giants. The potential tariffs signal a significant shift in the EU’s approach to international trade and digital commerce, with broad implications for consumers and businesses alike.

Shein, Temu, and AliExpress have gained massive popularity in Europe, offering a wide range of products at highly competitive prices. Their business model leverages China’s extensive manufacturing capabilities and efficient logistics networks to provide fast and affordable shopping experiences. However, this rapid growth has raised concerns among European policymakers and business owners about the unfair advantages these platforms may possess, particularly in terms of regulatory compliance, labour standards, and tax obligations.

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The European Commission’s interest in imposing tariffs on these platforms is driven by a need to level the playing field for European businesses. Local retailers have long complained about the competitive pressures posed by these e-commerce giants, which often benefit from lower production costs and less stringent regulatory environments. By imposing tariffs, the EU aims to mitigate these disparities and support the viability of domestic businesses that adhere to higher standards of production and labour practices.

Moreover, the proposed tariffs are part of a broader strategy by the European Commission to enhance digital sovereignty and ensure fair competition in the digital marketplace. This includes efforts to strengthen regulations on data protection, consumer rights, and market transparency. The imposition of tariffs on non-EU e-commerce platforms can be seen as an extension of these initiatives, aiming to ensure that all market participants play by the same rules.

For consumers, the introduction of tariffs could lead to higher prices for products purchased from Shein, Temu, and AliExpress. While these platforms are known for their low prices, the additional cost of tariffs could reduce their price advantage. This might prompt consumers to reconsider their shopping habits and potentially shift towards local retailers or other international platforms that comply with EU standards and regulations.

The potential tariffs also reflect the EU’s strategic economic interests in reducing dependency on non-EU suppliers and promoting local production. By creating a more balanced competitive environment, the EU hopes to stimulate domestic innovation and production, thereby strengthening its economic resilience. This move aligns with broader efforts to reduce the EU’s reliance on external suppliers for critical goods and services, a priority that has been amplified by recent global supply chain disruptions.

The reaction from Shein, Temu, and AliExpress to these potential tariffs remains to be seen. These platforms may seek to negotiate with EU regulators or adapt their business models to mitigate the impact of tariffs. Additionally, they might consider enhancing their compliance with EU regulations and improving their labour and environmental practices to align more closely with European standards.

In a significant development for Cyprus’ educational landscape, the historic American Academy in Paphos has been sold and will be transformed into a British-owned educational institution. This multi-million euro deal marks a pivotal moment for the local education sector, promising to elevate the standards and reputation of Paphos as a hub for high-quality international education.

The American Academy, a landmark institution in Paphos, has long been revered for its commitment to academic excellence and community service. Its transformation under British ownership is set to introduce a new era of educational innovation and international collaboration. The acquisition by British interests underscores the growing appeal of Cyprus as a destination for international education investment, driven by its strategic location, favourable climate, and robust educational framework.

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The new British educational institution will benefit from substantial investments aimed at upgrading and expanding the existing infrastructure. These enhancements will include state-of-the-art classrooms, modern science laboratories, advanced sports facilities, and comprehensive digital learning environments. The focus will be on creating a holistic educational experience that combines academic rigour with extracurricular development, ensuring that students are well-prepared for the challenges of the globalised world.

The institution will offer a diverse curriculum designed to meet international standards, providing students with opportunities to pursue the International Baccalaureate (IB), A-Levels, and other globally recognised qualifications. This curriculum will not only attract local students but also appeal to the expatriate community and international students seeking high-quality education in a supportive and multicultural environment.

One of the key aspects of this transformation is the emphasis on fostering strong ties between the educational institution and the local community. The British owners are committed to maintaining the legacy of the American Academy by continuing its tradition of community engagement and social responsibility. This includes partnerships with local businesses, cultural organisations, and government bodies to promote educational initiatives and community development projects.

The investment in the Paphos educational sector is expected to have a broader economic impact, generating employment opportunities for local educators, administrative staff, and support services. It will also attract families and professionals to the region, boosting the local economy and contributing to the socio-economic development of Paphos.

Furthermore, the presence of a high-calibre British educational institution in Paphos will enhance the city’s reputation as a centre for academic excellence and innovation. It will draw international attention, positioning Paphos as a competitive destination for educational tourism. This is particularly significant in the context of the global education market, where parents and students are increasingly seeking schools that offer a blend of rigorous academics, cultural exposure, and holistic development.

The transformation of the American Academy into a British-owned institution reflects the broader trends of globalisation and international collaboration in education. It signifies a commitment to providing students with a world-class education that equips them with the skills, knowledge, and values necessary to thrive in a rapidly changing world.

In June 2024, the number of bounced cheques stood at 12, with a total value of €13,048, according to the Central Bank of Cyprus which released on Thursday the statistics relating to the Central Information Register.

Ten individuals were registered in June 2024 in the preliminary CIR (6 legal entities and 4 natural persons).

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Furthermore, CBC statistics indicate that the number of entities listed in the CIR reached 7 in June 2024, including 2 legal entities and 1 natural person and 4 natural persons controlling legal entities.

According to preliminary records, the number of bounced cheques in the first six months of 2024 was 143, with a total value of €302,947. The registrations of persons (legal persons, natural persons and natural persons controlling legal entities) in the Central Information Register for issuers of bad checks reached 108.