Good morning dear readers, Lots and lots of news this morning, from the societal ownership debate on the state ownership document, through the performance of the financial markets in the first quarter of the year, and ending with good news in the tourism sector.
The most prominent news today is the launch of the social dialogue on the state ownership documentwhich lays out a framework for the role of the state in the economy and ways to promote the participation of the private sector.
World Highlight – The US Federal Reserve launches today what may be its most important meeting since March 2020The rising inflation data in the United States released last week raised fears that the Federal Reserve would move to approve a significant increase in interest rates, leading to major turmoil in global markets. Speculation is growing that the Fed will raise interest rates by 75 basis points by the end of its meeting tomorrow, which also raises concerns that the decision will push the US economy into a recession and cause one of the worst days for financial markets since its inception. of the Covid pandemic in March 2020.
Here’s a look at the market’s performance yesterday:
- Bond yields seem to be stagnating: The sell-off in the US bond market pushed up yields to levels not seen since 2011 and reversed a significant part of the yield curve, which many analysts see as a reliable indicator of an impending recession. (Read a previous explanation we posted on the topic)
- US stock market bearish: The S&P 500 has fallen almost 4%, the worst four-day performance for the index since March 2020, and is therefore 22% lower since its last high.
- Bitcoin crash: Bitcoin has fallen by more than 18% and reached its lowest level since December 2020, prompting trading platform Binance and crypto-lender Celsias to halt withdrawals.
- And a similar collapse for the shares of the technology giants: The index of giant technology companies (such as Apple, Facebook and Alphabet) fell by 6.5% to its lowest level since September 2020, and the Nasdaq index focused on technology stocks rose to its lowest level in 21 months decreased, after falling by 4.7% during yesterday’s session. , to decline by 33% compared to its previous high.
- Global landing: World equities listed on the FTSE Global Index fell 3.7% to their lowest level since October 2020.
50 basis points is the minimum: A majority on Wall Street calculates a potential 75 basis point increase as they expect the Fed to take action to curb inflation, which unexpectedly jumped to a 40-year high last month. Everyone from Goldman Sachs to JPMorgan and Barclays are waiting for this, and the market is handling the assumption that the Fed will raise interest rates by an additional 175 points from today to next September, indicating that the expected increase will be 75 basis points. followed by two increases of 50 basis points each time, while Others expect the potential for an even larger increase.
How it affects us: All this will influence the decision of the Central Bank of Egypt, which meets next week to review interest rates. We will be talking to analysts in the coming days about what this means for monetary policy in Egypt in our regular interest rate survey, which we will publish ahead of the meeting scheduled for Thursday 23 June.
Of course, the Fed meeting made headlines this morning: Reuters | Associated Press | Bloomberg | Financial Times | The Wall Street Journal | CNBC.
The UAE sees a significant increase in cases of the viruscovid-19 “tansAccording to Taher Al-Amiri, the official spokesman for the National Authority for Emergency, Crisis and Disaster Management, he added that the government is currently tightening restrictions, according to the Emirates News Agency (WAM). The new rules require masks to be worn in closed places and fines imposed on offenders, and come in the wake of the high rate of hospitalizations due to the recent increase in cases, which “in less than a week with more than 100 % has increased. “
Saudi Arabia is doing the opposite. The Kingdom of Saudi Arabia has decided to lift the precautionary and preventive measures associated with the “Covid-19” pandemic, following the high rates of immunization and immunity against the virus, according to a statement issued yesterday by the Saudi Interior Ministry has been issued.
in notebook –
start annual meetings The African Export-Import Bank (Afrixim Bank) tomorrow Wednesday The St. Regis Al Masa Hotel in the New Capital. President Abdel-Fattah El-Sisi, Governor of the Central Bank of Egypt Tarek Amer, and President of the Bank of Africa Benedict Orama will deliver keynote speeches at the meetings, focusing mainly on the implementation of the African Free Trade Agreement. power in 2021.
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.
Our appointment today is with the “Green Economy”, your weekly portal to the sustainable economy in Egypt. Which every Tuesday focuses on sustainable economic activities, renewable resources and green development in the country. The scope of the “green economy” is very large and covers everything from solar and wind energy, through water and sanitation management projects to sustainable construction.
In today’s issue: The Middle East and North Africa lack climate-related business financing. The Middle East and North Africa region is one of the regions most vulnerable to the effects of climate change. However, when it comes to financing technology companies and initiatives that can help reduce the effects of climate change, or at least adapt better, the region lags far behind, according to a recent report.