“Markets react to Germany’s surprise inflation climb to 11-month high…”                                                                                                     

Germany’s inflation surged to an 11-month high of 2.6% in December, exceeding market expectations of 2.4%.

Preliminary prints from the Federal Statistical Office, released on Monday by the Federal Statistical Office, saw consumer prices climb from November’s 2.2% increase and surpassing economists’ forecasts of 2.4%. Core inflation also ticked higher to 3.1%.

The data sparked a positive reaction in markets. Bond yields rose to 2.45%, while the euro strengthened by 1.3%. Equity indices also saw a boost, likely fueled by easing concerns over US tariffs.

Rising prices for services and food drove the December inflation surge. Service costs increased by 4.1% year-on-year, up from 4% in November. Food prices climbed to 2%, accelerating from 1.8% in the previous month. While energy prices continued to decline, the pace of the decrease slowed to 1.7% from 3.7% in November.

Market Reaction:

The unexpected inflation data sent shockwaves through financial markets, particularly in the bond and currency markets. German government bond yields surged, with the 10-year Bund yield climbing to its highest level since early November at 2.45%. The 2-year Schatz yield also jumped 3 basis points to 2.20%. Investors interpreted the higher-than-expected inflation as signaling that the European Central Bank (ECB) may not be as likely to aggressively cut interest rates in the near future.

The euro strengthened significantly, appreciating 1.3% against the US dollar to surpass $1.04. European equity markets also reacted positively to the news. The Euro Stoxx 50 index climbed 1.6%, while the French CAC 40 gained 1.5%. Luxury goods companies like Hermès, LVMH, and Kering saw strong gains of around 3.7%, likely driven by expectations of fewer trade disruptions.

Italy’s FTSE MIB index rose 1.2%, led by a 5% surge in Stellantis. This increase in the automotive sector was likely fueled by hopes for more measured US tariffs. Germany’s DAX index added 0.9%, with automotive stocks leading the charge. Porsche AG and Daimler Truck Holding AG saw impressive gains of over 6%, while other major automakers like BMW, Mercedes-Benz, and Volkswagen also experienced significant increases.

Together Gaming Solutions p.l.c – Issurance of €12,500,000 in unsecured callable bonds with a 6.25% interest rate

Together Gaming Solutions p.l.c. has announced the issuance of €12,500,000 in unsecured callable bonds with a 6.25% interest rate, maturing between 2030 and 2032. This issuance, guaranteed by its parent company Cherry with Friends AB, received approval from the Malta Financial Services Authority (MFSA) for listing on the Malta Stock Exchange.

The bonds will be available for subscription to specific categories of investors, including current bondholders and authorized intermediaries.

Detailed information about the bond offering, including terms and conditions, is available in a prospectus published on January 7, 2025, and can be accessed on the company’s website or in printed form from authorized intermediaries.

Shares in vaccine developers surged

Shares in vaccine developers surged on Tuesday following the US’s first human death from the H5 strain of bird flu. Moderna’s stock increased by 11.6%, Novavax by 10.8%, and CureVac by 5%, while Pfizer saw a nearly 1% rise.

The US Centers for Disease Control and Prevention (CDC) confirmed an elderly Louisiana patient with underlying conditions succumbed to the virus. Although 66 H5N1 bird flu cases have been reported in the US this year, the CDC maintains that the general public’s risk remains low, noting that there has been no identified person-to-person transmission. Most infections have been linked to animal exposure, with mild symptoms predominating. The US government has invested in bird flu vaccine development, awarding Moderna $176 million for a vaccine using messenger-RNA technology.

The UK government has contracted for over 5 million doses of the H5 flu vaccine.

Malta Company Announcements:

Medservregis plc

The Company announced that on the 19th of December 2024, it repurchased a total of USD1,000,000 5.75% 2026 (USD) Unsecured Bonds bearing ISIN MT0000311242 for USD100 per bond (nominal value). In terms of Clause 14.11 of the prospectus issued by the Company on the 21st December 2015, the said bonds have been cancelled due to the said repurchase.

Maltapost plc

A dividend will be paid on Thursday, 20 March 2025, to all shareholders at the close of trading on Friday, 17 January 2025, subject to shareholders’ approval at the upcoming Annual General Meeting scheduled for 20 February 2025.

Mizzi Organisation Finance plc

The board of directors of Mizzi Organisation Finance p.l.c. (C 29506) (the “Company”) hereby announces the acquisition of shares in Institute of English Language Studies Limited (C 7235) (“IELS”) by Mizzi Lease Limited (C 799) (“Mizzi Lease”), from FTI Holdings Malta Limited (C 9140) (“FTI”), pursuant to a share purchase agreement effective as of the date hereof. Mizzi Lease is a subsidiary of Mizzi Organisation Limited (C 813) (“MOL”), one of the guarantors of the €45,000,000 3.65% unsecured bonds 2028-2031 issued in terms of a prospectus dated 24 September, 2021.

IELS owns and operates an English language school in Sliema that has been teaching English as a foreign language for almost 40 years. The school features 55 classrooms and can accommodate 700 students. In addition, IELS owns and manages the Days Inn Hotel, a self-catering student residence offering excellent value accommodation close to the school. It consists of 54 hotel rooms and 45 studios.

Prior to the present transaction, Mizzi Lease held 50% of the issued share capital in IELS. As a result, save for one ordinary share held by a related company, Mizzi Lease is now the sole shareholder of IELS.

Hudson Malta plc

The Company refers to its announcement HDS80 of the 2nd July 2024 and hereby announces that Silvano Azzopardi has been appointed as Hudson Group Chief Financial Officer, with an effective commencement date of 9th January 2025.

Silvano has held various senior finance roles globally, and was instrumental in growing an international business in Asia from the ground up to a highly profitable operation. In his latest role, he was responsible for finance for a global business unit that generated over €1 billion in revenue.

Silvano’s expertise extends to setting up operations for various companies, businesses and manufacturing plants across China, Hong Kong, Vietnam, South Korea and Japan, as well as extensive experience in mergers and acquisitions, legal, compliance, HR, sourcing and administration.

Silvano holds a Master of Business Administration from the University of Warwick, as well as a Bachelor of Commerce and a B.A in Accountancy from the University of Malta. He has also completed an Executive Leadership Program by the University of Oxford.

There is no matter concerning Silvano Azzopardi which requires disclosure in terms of Capital Markets Rules 5.20.5 to 5.20.9 (both included).

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