Hellenic Bank, Cyprus’ second-largest bank, announced a net profit of €284 million for the nine months ending September 2024, reflecting an annual increase of 28%. The bank attributes this growth to robust organic capital generation and a favourable interest rate environment, resulting in a capital ratio boost of nearly four percentage points. However, quarterly, the bank noted a slight decline in net interest income in the third quarter, affected by recent ECB rate cuts.

As Hellenic Bank’s first financial report as a subsidiary of the Greek Eurobank Group, CEO Michalis Louis stated that this transition marks “a new chapter” for the bank. He emphasized that, despite global challenges, the Hellenic Bank maintains a strong capital base and surplus liquidity, enabling it to support economic growth and meet the needs of both individual and business clients. Over the nine months, net interest income (NII) reached €455.6 million, a 20% increase year-on-year, although it remained stable at €151 million between the second and third quarters. Non-interest income also rose by 15% to €98.1 million.

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The bank’s capital ratios improved significantly, with the CET1 capital ratio reaching 26.7% and the total capital ratio standing at 32.51% as of September 2024. Total expenses rose by 11% year-on-year to €216 million, with staff costs comprising 46% of these expenses. The cost-to-income ratio decreased slightly to 38.9%, compared to 41.7% for the same period last year, reflecting the bank’s efforts to optimize costs.

New lending for the nine months dropped by 22% year-on-year to €705 million, mainly due to high interest rates that dampened loan demand. Total loans by the end of September stood at €6 billion, down from €6.16 billion the previous year. Non-performing exposures (NPEs), as per the European Banking Authority directive, were €404 million, representing 6.7% of total loans; excluding loans covered by the Asset Protection Scheme (APS), NPEs amounted to €100 million, or 2.6% of loans.

Customer deposits stood at €14.9 billion at the end of September 2024, compared to €15.3 billion at the end of 2023. The bank’s Liquidity Coverage Ratio remained robust at 583%, bolstered by €5.3 billion in Eurosystem placements that benefited from current interest rates. Total assets were €17.61 billion at the end of September, reflecting a decrease due to ECB refinancing repayments under the Targeted Long-Term Refinancing Operations program.

Boeing workers in the United States have voted to approve the company’s latest pay offer, effectively ending a seven-week strike that significantly disrupted operations at the aerospace giant. 

The newly agreed contract will see workers receive a substantial 38% wage increase over the next four years, a victory for the International Association of Machinists and Aerospace Workers (IAM) union, which represents around 30,000 striking employees.

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With the agreement now in place, workers can begin returning to their jobs as early as Wednesday, but no later than November 12, according to the IAM. The strike, which started on September 13, had a considerable impact on Boeing’s factories, leading to a major slowdown in production and exacerbating ongoing challenges for the company.

The union confirmed that 59% of its members voted in favour of the new contract, which not only includes the pay raise but also offers a one-time $12,000 (£9,300) bonus and revisions to the workers’ retirement plans.

Jon Holden, the IAM leader, described the agreement as a win for the workers, saying, “Through this victory and the strike that made it possible, IAM members have taken a stand for respect and fair wages in the workplace.”

Initially, the union had demanded a 40% wage increase and rejected two earlier proposals from Boeing. Despite the difficult months leading to the agreement, Boeing’s CEO Kelly Ortberg expressed a unified sentiment, stating, “While the past few months have been difficult for all of us, we are all part of the same team,” and emphasized the company’s commitment to restoring its reputation for excellence.

The strike drew significant attention from the U.S. government, with acting U.S. Labor Secretary Julie Su visiting Seattle last month to assist in the negotiation process. The strike has cost Boeing nearly $10 billion, according to the Anderson Economic Group, contributing to Boeing’s financial challenges.

For the three months ending September, Boeing reported $4 billion in operating losses for its commercial aircraft business. In response, the company launched a $20 billion share sale and warned that prolonged disruptions could lead to credit rating downgrades, which would raise borrowing costs.

The company has also announced plans to lay off about 17,000 workers, with the first redundancy notices expected in mid-November. This marks the latest chapter in a difficult year for Boeing, which has already faced setbacks, including a mid-air failure involving one of its passenger planes and reputational damage to its space division following the aborted Starliner mission.

Starbucks’ new CEO, Brian Nicсol, has laid out an ambitious strategy to reverse declining sales over the past three quarters and revitalize the company’s growth. While a full recovery plan is underway, Nicсol is starting with key adjustments aimed at improving customer experience and operational efficiency in the U.S. market. 

One core goal in these changes is to serve a personalized drink to each customer in under four minutes—a standard that currently covers only half of Starbucks’ transactions. In addition, the company plans to reduce new store openings and renovations in fiscal 2025, redirecting those resources toward other growth initiatives, according to CFO Rachel Ruggeri.

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Here are the seven primary ways Nicсol is setting up Starbucks for success:

1. Streamlining Mobile Ordering and Payments
2. To tackle issues with mobile orders cluttering counters and causing delays, Niсcol aims to improve app accuracy, so customers know exactly when their orders are ready. He’s also looking to limit customization options, making mobile orders less complex and easier for baristas to fulfil.
3. Simplifying the Menu
4. To speed up service and improve quality, Nicсol plans to reduce menu complexity by focusing on fewer but better options. This will allow baristas to make drinks more consistently and limit the items that don’t meet the four-minute preparation goal.
5. Enhancing Coffee Shops’ Personal Touch
6. As part of a “Back to Starbucks” initiative, Nicсol wants to return to the brand’s roots as a “third place” where customers can relax, work, or socialize. This includes updating shop interiors with more comfortable seating, personal touches like serving drinks in ceramic mugs for in-cafe customers and adding warmth and layers to the design.
7. Reinstating Self-Serve Add-On Bars
8. Add-on bars with milk and sugar, which were moved behind the counter during the pandemic, will return to their original setup, freeing up barista time and improving customer convenience.
9. Ensuring Better Staffing
10. Starbucks is increasing average barista hours to reduce turnover and improve consistency. Niсcol also aims to better align staffing with demand by scheduling appropriately for peak and off-peak hours.
11. Redefining Marketing
12. Nicсol is broadening Starbucks’ marketing focus beyond Starbucks Rewards members to appeal to a wider customer base and showcase the brand’s high coffee quality. Promotions will be less discount-driven to ease the workload on baristas.
13. Removing Surcharge on Milk Alternatives
14. Starting November 7th, Starbucks will eliminate the surcharge on milk substitutes, allowing customers to save over 10% on some drinks—a change that has been long-requested by customers.
15. Through these targeted adjustments, Nicсol is working to bring Starbucks back on track, aiming for improved service times, better staff retention, and an enriched in-store experience. This recovery strategy promises to refine the brand’s offerings and build stronger connections with customers.

French and Dutch authorities recently conducted searches at Netflix’s offices in Paris and Amsterdam as part of a preliminary investigation into potential tax fraud and laundering allegations. The probe, led by France’s Parquet National Financier (PNF)—a specialized agency handling financial crimes involving large corporations—began in November 2022.

In a statement to Reuters, Netflix affirmed its cooperation with French authorities, emphasizing that the company strictly adheres to tax regulations in all countries where it operates. The PNF’s financial crime unit searched in Paris, while Dutch officials simultaneously inspected Netflix’s European headquarters in Amsterdam, according to a French judicial source. These operations are part of a coordinated, months-long effort between French and Dutch authorities, although neither country has disclosed specific details of the investigation’s scope.

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The PNF’s preliminary inquiry does not necessarily suggest criminal charges or guarantee a court case, and the exact triggers behind the investigation remain unknown. Cross-border tech firms such as Netflix frequently encounter challenges with European tax authorities as they provide digital services to users across multiple jurisdictions.

Netflix’s French operations first attracted attention in 2021 when the investigative news outlet La Lettre reported unusually low turnover in France, sparking tax authority scrutiny. According to La Lettre, Netflix routed revenues through a Dutch subsidiary, a strategy allegedly allowing the company to reduce its French tax obligations between 2019 and 2020. Corporate records indicate Netflix’s French revenue climbed to approximately 1.2 billion euros in 2021, up from 47 million euros the prior year, coinciding with the cessation of the revenue-routing practice.

Netflix has previously resolved tax disputes in Europe, including a 2022 settlement with Italy, where the company agreed to pay 55.8 million euros. Netflix’s Paris office, situated near the Opera Garnier, employs around 40 staff members and largely focuses on producing content in partnership with third-party contractors, including popular series like *Emily in Paris*.

Moniepoint, a Nigerian fintech company, has announced a successful $110 million funding round to scale its digital payment and banking services across Africa. Among the investors in this round are notable new supporters like Google’s Africa Investment Fund, as well as existing investors Development Partners International and Lightrock, a private equity firm. This investment reportedly places Moniepoint’s valuation above the $1 billion mark, officially granting it “unicorn” status, a prestigious milestone in the tech sector.

Founded in 2015, Moniepoint initially focused on building payment infrastructure for banks and financial institutions. However, it has since expanded its offerings to include personal banking services, which it introduced last year. Today, the company processes over 800 million transactions each month, with a transaction value exceeding $17 billion.

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The latest funding will enable Moniepoint to further its footprint across Africa, where digital banking and payment services remain essential for economic growth and financial inclusion. With plans to develop a comprehensive platform for businesses, Moniepoint aims to offer solutions spanning digital payments, banking, foreign exchange, credit, and business management tools. 

Nigeria, Africa’s largest fintech market with over 200 million people, represents a promising landscape for financial innovation. By expanding its services, Moniepoint hopes to bridge the gap for millions who still lack access to traditional banking, positioning itself as a major player in Africa’s digital finance ecosystem.

In a strategic move to stay competitive in the global tech landscape, the European Union (EU) is set to invest €1.4 billion ($1.5 billion) in deep tech research in 2025. This significant funding boost will come from the European Innovation Council (EIC) as part of Horizon Europe, the EU’s flagship research and innovation program. 

This marks a notable increase of €200 million compared to the previous year’s budget, underlining the EU’s commitment to strengthening its tech capabilities. With this investment, European policymakers aim to narrow the gap with technological heavyweights like the United States and China. 

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The deep tech sector, which encompasses advanced fields like artificial intelligence (AI), quantum computing, and biotechnology, has been identified as essential for Europe’s economic revitalization. “The European Innovation Council has emerged as a game-changer in EU support to breakthrough innovation,” stated EU Commissioner Iliana Ivanova. She highlighted the council’s expanded role in channelling resources toward pioneering advancements in technology that could shape the future of Europe’s economy.

As the global tech race accelerates, the EU’s increased funding for deep tech initiatives reflects its resolve to position Europe as a leading hub for innovation and technological progress.

Cyprus’ export sector is experiencing a strong growth trajectory, according to Minister of Energy, Commerce, and Industry George Papanastasiou, who highlighted a significant 38% annual increase in exports for 2023. Speaking at the Annual General Meeting of the Paphos Chamber of Commerce and Industry, Papanastasiou noted that total Cypriot exports reached €4.7 billion in 2023, a substantial rise from €3.4 billion in 2022.

This consistent upward trend from 2021 to 2023 points to a robust expansion in Cyprus’ export activities. Despite global trade challenges, Papanastasiou emphasized that Cypriot exports are maintaining their positive momentum into 2024. He attributed part of this progress to the growing competitiveness of Cypriot industries, noting that exports of locally produced goods surged by 63%, reaching €2.36 billion compared to €1.45 billion over the same period.

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The primary drivers of this growth are industrial products, particularly from the agricultural and manufacturing sectors. Greece, Lebanon, Israel, Germany, and the UK were identified as the top five destinations for Cypriot goods between 2021 and 2023.

The Commerce Minister further indicated that exports continued to rise in early 2024, with January-to-July figures showing a 4% year-on-year increase, bringing the export total to €1.22 billion. He emphasized that sustainable growth in exports relies on effective collaboration, open dialogue, and state support for business initiatives, which can foster economic benefits for both companies and the broader economy.

Papanastasiou also underscored the role of small and medium-sized enterprises (SMEs), which constitute the majority of businesses in Cyprus, as a fundamental part of the economy. In 2022, Cyprus had around 92,000 SMEs, with the manufacturing sector alone encompassing over 5,000 companies and employing more than 35,000 workers—about 8% of the country’s total employment.

Moreover, he recalled that the value of Cyprus’ industrial production amounts to €4.5 billion, with the sector contributing approximately 8.4% to Cyprus’ GDP, according to the 2023 statistics.

Novo Nordisk, the pharmaceutical company behind the popular diabetes and weight-loss drugs Ozempic and Wegovy, is actively working to limit compounded versions of these medications in the U.S. The company has petitioned the FDA to add semaglutide, Ozempic’s active ingredient, to the Demonstrably Difficult to Compound (DDC) list. If granted, this designation would bar compounding pharmacies from producing generic-like versions, effectively pushing patients toward FDA-approved products.

Novo Nordisk argues that the complexities involved in compounding semaglutide safely justify their request, citing patient safety concerns as the primary reason. Jamie Bennett, Novo Nordisk’s director of media relations, stressed that compounded versions of semaglutide carry risks of adverse effects due to dosing inconsistencies and quality issues. Although compounded drugs can legally bypass FDA approval when specific criteria are met—such as during drug shortages—the FDA has received reports of side effects associated with compounded semaglutide products.

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The backdrop of this move is a broader tension between pharmaceutical companies and the compounding industry, particularly as telehealth providers capitalize on the high demand for GLP-1 drugs like Ozempic. Telehealth clinics and pharmacies often offer compounded versions at a fraction of the price, sometimes as low as $100 monthly compared to the brand-name cost of around $1,000. This market competition has prompted Novo Nordisk to file numerous lawsuits against companies selling compounded alternatives, alleging unfair competition and trademark infringement.

Novo Nordisk is not alone in this push to limit compounded alternatives. Following a similar pattern, Eli Lilly, the producer of tirzepatide (marketed as Mounjaro and Zepbound), also took action recently when the FDA initially declared a resolution to the drug’s shortage, leading to a halt in compounded tirzepatide production. However, this decision was met with resistance, and the FDA is now reassessing tirzepatide’s shortage status, allowing limited compounding to resume.

With semaglutide still listed as in shortage, the compounding industry continues to offer compounded alternatives. However, should this shortage end, compounding pharmacies may find themselves barred from producing these high-demand drugs, heightening the battle between brand-name pharmaceutical giants and independent compounding businesses.

China has launched a legal dispute against the European Union (EU) at the World Trade Organization (WTO) in response to the EU’s decision to raise import tariffs on Chinese electric vehicles (EVs). The case comes on the heels of an EU investigation that concluded Chinese carmakers benefit from state subsidies, giving them an unfair edge in the European market.

Key Details:

1. WTO Complaint: China’s filing marks its second WTO challenge over higher tariffs, with the complaint aiming to address the EU’s determination that Chinese EV manufacturers benefit from unfair government support.
2. Impact on Chinese Car Makers: The new EU tariffs range from 17% for BYD, 18.8% for Geely (Volvo’s parent company), to a significant 35.3% for SAIC Motor Corp, making it one of the most heavily affected companies.
3. WTO Dispute Timeline: Under WTO dispute settlement rules, China and the EU have 60 days to negotiate a resolution. If unresolved, the case may proceed to a WTO panel ruling. However, the WTO’s highest appellate body remains inactive due to a shortage of judges, potentially complicating the resolution process.

The heightened tariffs, which took effect on November 1, reflect growing trade friction between Brussels and Beijing. EU officials argue that China’s subsidies and access to inexpensive raw materials have granted Chinese EV companies excessive leverage over European competitors. In response, Brussels is exploring solutions, such as adjusting price commitments, to address these market imbalances while upholding WTO principles.

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Negotiations between the EU and Chinese officials are expected to intensify in the coming weeks, with an EU delegation likely to travel to China to pursue a compromise. Both sides aim to foster fair market conditions while respecting WTO guidelines.

The Central Bank of Cyprus (CBC) has rolled out an ambitious 2025-2026 transformation strategy to bolster its role within the European financial landscape and adapt to modern economic, technological, and environmental challenges. Governor Christodoulos Patsalides emphasized the urgency of transformation, citing rapidly evolving global conditions and the need for the CBC to actively support both Cyprus and the broader European community.

The strategy introduces 76 targeted actions designed to foster long-term economic resilience and adaptability. Patsalides highlighted the need for a progressive approach that redefines the bank’s mission, strategic goals, and core values, envisioning a CBC that can meet the demands of today’s interconnected world.

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Key Pillars of the CBC Strategy:

1. Fix the Bank: This foundational pillar addresses internal reorganization, emphasizing a structure that enables robust risk management, strengthened internal controls, and improved operational continuity.
2. Run the Bank: Focused on developing supervisory strategies, this pillar targets core responsibilities across the CBC, with initiatives to manage staffing, establish climate resilience frameworks, and set up a procurement division.
3. Change the Bank: The final pillar aims at modernizing governance, advancing human resources, and leveraging IT innovation. It also plans to establish a Research and Policy Development Center, fostering deeper expertise and influence in the bank’s areas of responsibility.

Each action is assigned a project lead with clearly defined timelines. By the end of 2024, 33 actions are set for completion, with another 20 scheduled for mid-2025. Regular progress will be tracked through a monthly dashboard, ensuring accountability and steady advancement.

The CBC’s new strategy positions it as a dynamic, responsive institution, aligned with Cyprus’s evolving economic role within Europe and committed to excellence, innovation, and transparency.