A NCIIAL MII ROR THIISS WEEK
Cement, Hellenic Bank, Louis, CTC.
An increasing number of private and listed companies are proceeding with layoffs ahead of Christmas as they drive to cut costs, with the number of unemployed rising sharply in November, rising higher than the official figure of 4.2%. Redundancies were reported at Laikon Kafekopteion, SFS, CIC and Arab Bank, Cyprus Airways ( had plans to sack 170 to 550 people as part of (yet another) strategic plan.
Bond investors decided to move into longer-term paper during the week’s multiplebond auction, shunning the short term bond and Treasury Bills as they attempted to lock in higher yields ahead of Cyprus’ entry into ERM-II and before yields converge with those of euro rates. No bids were
Bonds go long:
submitted for the 2-year bond with a coupon of 5%.
Standard & Poor’s lowered the Cyprus long-term currency rating to A from A+ on “sizeable fiscal deficits and a rapidly growing public debt burden.” (If only we had listened back then…)
Parliament approved to extend the partial tax amnesty of 6.5% for a further two months as the government had already collected CYP 50 mln from the 5% tax bracket, with Cypriots declaring CYP 1 bln in income and secret funds.
Bosses at the major supermarket chains are concerned over the anticipated arrival of the German discounter Lidl that is reported to be planning a network of 27 outlets.
Lukoil and Lefkaritis hiked petrol prices by 1 cent to 46.8c a litre for Unleaded 95, 48.6c for U98 and 45.2c for diesel. Oil had tumbled to a low of $45 a barrel, the biggest fall since September 2001.
Bracing for Lidl: