Good morning, dear readers. Welcome to the beginning of a week that is likely to be full of important local and global economic news.
Heatwave takes off from today: Temperatures are expected to drop from 43 degrees Celsius yesterday to 35 degrees Celsius today in Cairo, according to the Meteorological Authority.
The big news this morning – domestic inflation has risen at its highest annual rate since May 2019, Once again driven by rising food prices. However, there is a silver lining, namely that the rise in consumer prices was not as much as analysts expected, but rather slowed on a monthly basis. Some analysts expect inflation to reach its highest levels in the summer.
Also – we may see the first issue of future financial rights securitization bonds in the local market next monthWhich will be issued by the Cairo Investment and Real Estate Development Company (Sira), which specializes in education. More in our post below.
There’s no big world news this morning While global developments still remain at the top of the economic newspapers. The news that US fuel prices had reached a record high of $ 5 per liter caught the attention of the Wall Street Journal and the Financial Times. We talk more about the rise in US inflation and monetary policymakers’ actions to counter it, and the impact it will have on the markets, below.
US President Joe Biden says he can visit Saudi Arabia later this summer, according to Bloomberg. Biden said during a press conference yesterday that the visit, in addition to oil, will also address the security file in the region.
What does the visit to Egypt mean? There is US mediation in an agreement between Egypt, Saudi Arabia and Israel to complete the process of transferring the islands of Tiran and Sanafir from Egypt to Saudi Arabia, according to the Axios website, which indicated that the agreement will pave the way for the normalization of relations between Riyadh and Tel Aviv.
happens today –
The subscription for the public offering of Ghazl Al-Mahalla Football Company starts today and lasts until Friday 1 July. The subscription may be closed at least ten days after the opening of the subscription if the full value of the increase is covered and the condition that the number of the company’s shareholders reaches one thousand is met, according to Thursday’s Public Offering (PDF) prospectus. The club is offering a 67.5% (98 million share) share at a price of £ 1.02 per share Natural and legal investors can subscribe to the company’s shares with a minimum of 1000 shares and a maximum of two million shares.
“Ghazl El-Mahalla Football” is seeking £ 135 million from the public and private offering: The club is hoping to raise £ 98m from the public offering, after raising £ 37m from institutional investors in the private placement tranche last November.
Happens this week –
This could be an important week for our ambitions to boost gas exports: There will be high hopes this week that Egypt will be able to sign an agreement to increase exports to the European Union when European Commission President Ursula von der Leyen visits Cairo for talks with President Abdel Fattah el-Sisi. According to a draft document that Bloomberg saw earlier this month, we are expected to see the European Union conclude a memorandum of understanding with Egypt and Israel under which more Israeli gas will be supplied to Egyptian liquefaction stations, where it will be exported again via the Mediterranean. The agency said the agreement could also see the three parties act to reduce methane emissions.
The EU can help fund new infrastructure: Reuters reported more details over the weekend on a possible Memorandum of Understanding, in which a draft document would be sent to European governments for approval. According to the plan, the EU can help finance new infrastructure, provided it does not violate its rules to end investment in fossil fuels. Reuters provided little detail other than what it said about the possibility of EU funding for projects that reduce emissions and decarbonize natural gas.
More details: The agreement between the three parties will last for nine years, enabling Egypt to buy additional gas supplied by Israel.
Also on the agenda: Von der Leyen said before European Parliament On Wednesday, member states’ support for combating food insecurity in the Middle East will also be one of the topics the two parties will discuss. The European Union is preparing to pay out € 100 million in funding to Egypt to improve wheat storage capacity and support small and medium-sized companies in the agricultural sector.
The European Union is not alone in ensuring that Egypt realizes its plans to become a regional energy playerThe British ambassador to Cairo, Gareth Bailey, described Egypt last week as an “emerging force in renewable energy”, according to Ahram Online. He also said there were more than ten British companies willing to take part in Egypt’s ambitious plans to produce green hydrogen.
Speaking of food security: This is also an important week for global efforts to prevent an escalation of the food crisis. Trade ministers are meeting in Geneva this week for a World Trade Organization conference that will focus on halting the recent spate of food protectionism that has caused more than two dozen countries to impose export restrictions on food and fertilizers, according to Bloomberg.
India threatens to block a proposal backed by more than 50 countries to limit restrictions if the World Trade Organization does not relax subsidy rules that prevent countries from … Using local food exclusively to feed poor citizens. In May, India imposed restrictions on wheat exports, which added pressure on food supply chains, causing prices to rise at all times.
Egypt supports the position of developing countries and imported only: Egypt submitted a draft resolution on behalf of African and Arab countries at the World Trade Organization meeting on strengthening the organization’s response to food security challenges in net food importing developing countries and less developed countries, according to a statement by the Foreign Ministry. This step comes with the aim of providing practical solutions to support farmers and producers and improve the production capacity of grain and grain in those countries.
US inflation data raises concerns over large rate hike … and equities fallUS equities showed their biggest weekly losses since January, after inflation unexpectedly accelerated to a 40-year high in May, prompting traders’ fears that the Federal Reserve at its scheduled meeting this week would be more false . The S&P 500 fell 2.9%, and the Nasdaq fell more than 3.6% after inflation data was released on Friday, showing consumer prices rising to 8.6% last month, their highest since November 1981.
All eyes are on the Federal Reserve: Traders expect there is a 50% chance that the Federal Reserve will raise interest rates by 75 basis points at its scheduled meetings on Tuesday and Wednesday of this week. Policymakers were widely expected to continue with a second 50 basis point increase, but the weak data raised the possibility that they would turn aggressively to try to curb the worst spurt of inflation in a generation.
In Europe, the European Central Bank brings back memories of the 2011 crisis: European equities fell as bond yields skyrocketed on Friday after the European Central Bank indicated it could raise interest rates next month, reviving memories of the eurozone debt crisis at the start of the past decade. Borrowing costs for Italy and Greece – two of the European Union’s most indebted economies – have risen in recent days as investors worry about the sustainability of their debt after the central bank began raising interest rates. More in the Financial Times.
in notebook –
Here are a number of other conferences that will be held this month:
You can view the full notebook at Our website, In which you will find a comprehensive list of upcoming news events, national holidays, conferences and everything that affects the business and financial community.
Welcome to a new issue of “What’s Next”: The first exclusive frontier market platform exploring the next generation of successful companies in Egypt, UAE and Saudi Arabia, and exploring investment trends and future growth journeys for the sectors.
In today’s issue: After talking in the previous two parts of our series about how Nigerian startups managed to attract $ 1.8 billion in funding in 2021, and what the next step is for beginners in Nigeria, we take you on a tour today from a number of start-ups in the country, whose representatives we either met in person Or, we heard about it during our trip to Lagos a few weeks ago.