It’s hump day, ladies and gentlemen, but it’s far from news dump day on the local front as all eyes are fixed firmly abroad on the developing situation between Ukraine and Russia. We have chapter and verse on all the latest, below, but first…

THE BIG STORY TODAY-

#1- Planning Ministry upgrades growth forecast: Egypt’s GDP is expected to grow between 6.2% and 6.5% in FY2021-2022, Planning Minister Hala El Said said today. The new forecast is an upgrade from El Said’s most recent expectation that our economy would grow at a 5.6% clip this fiscal year. This comes after Prime Minister Moustafa Madbouly announced earlier this month that our 2Q2021-2022 growth came in at 8.3%, marking a significant increase from previous expectations.

#2- House signs off on several pieces of legislation: The House of Representatives’ general assembly gave its final approval today to the “old rent” law, amendments to the Real Estate Registry Act, and amendments to the Capital Markets Act.

^^We’ll have more on this story and other stories in tomorrow’s EnterpriseAM.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• Elevate PE to establish cancer treatment facility in Cairo: Elevate Private Equity is investing at least EGP 500 mn to establish a dedicated cancer treatment facility in Egypt, a company spokesperson told Enterprise yesterday. This came on the same day that Elevate announced (pdf) the signing of an MoU with the France-based Gustave Roussy Institute, one of Europe’s leading cancer hospitals, to collaborate on the facility.
• Egypt, US launch climate working group ahead of COP27: Foreign Minister Sameh Shoukry and US Presidential Climate Envoy John Kerry met for the inaugural session of a working group that will set priorities for COP27 in Sharm El Sheikh this November, according to a Foreign Ministry statement.
• Schneider eyes EUR 500-600 mn contract for 10 control centers: Schneider Electric Systems is in talks with the Electricity Ministry for the contract to build 10 energy control centers, which are expected to cost EUR 500-600 mn.

HAPPENING NOW-

El Sisi talks regional tensions + security with Kuwait’s emir, crown prince: President Abdel Fattah El Sisi discussed increasing economic and political cooperation with Kuwait in two separate meetings in Kuwait with Emir Sheikh Nawaf Al Ahmed Al Jaber Al Sabah and Crown Prince Mishal Al Ahmad Al Jaber Al Sabah, Ittihadiya said. The president discussed with the emir and crown prince a handful of regional political and security developments, according to the Ittihadiya readouts.

THE BIG STORY ABROAD-

The unfolding events in Ukraine is all anyone can talk about today as the world responds to Russia’s decision to move “peacekeeping” troops into separatist-held areas in the east of the country and formally recognize them as independent territories.

Nordstream 2 is all but dead: German Chancellor Olaf Scholz has suspended the approval process for the controversial Nordsteam 2 pipeline that would have shipped Russian natural gas directly to Germany.

But European nations are divided on sanctions: Diplomatic sources tell the Guardian that there are “worrying signals” that countries are not on the same page as governments decide on how to respond to the incursion. One diplomat said that Austria, Germany and Italy are favoring an incremental approach, while others want to immediately hit Moscow where it hurts.

The UK’s sanctions response hasn’t yet lived up to the “barrage” promised by PM Boris Johnson: In an address to parliament an hour before dispatch, the prime minister announced that the government would place sanctions on five, minor Russian banks and three oligarchs with close ties to the Kremlin who were already under US sanctions.

We’re still waiting for the response from Washington: After initial sanctions were imposed on the separatist administrations in the early hours of this morning, the US is yet to reveal how they plan to sanction Russia itself. Expect a response later today, Reuters reports.

European banks are bracing for impact: European banks are preparing for blowback ahead of potentially severe financial sanctions placed on Russian financial institutions, according to Reuters. Banks on the continent are highly exposed to Russia, particularly those in Austria, France and Italy. The share price of Austrian bank RBI suffered heavy losses today as the bank said it was readying “crisis plans” ahead of sanctions.

The key question right now: Whether Russia recognises territory held by the separatists or territory claimed by the separatists is crucial. Currently, the self-proclaimed republics only hold parts of the Donetsk and Luhansk provinces, potentially setting us up for a Russian invasion of Ukraine-held territory should Moscow recognize lands outside of these borders.

The oil market reacted exactly as you’d expect, surging closer to the USD 100 per barrel mark in early trading. The price of Brent has since pared gains and was up 1.7% to USD 94.60 a barrel shortly before dispatch.

European stocks are recovering from the initial shock: After suffering losses early in the session, shares in Europe are now slightly in the green. On the other side of the Atlantic, Wall Street is expected to open slightly lower. The S&P 500 is currently down 9.3% YTD and further losses today would put it in danger of falling into correction territory.

A dead cat bounce? The head of HSBC warned today of the threat of “wider contagion” for global financial markets should the situation continue to deteriorate. "It's clear that there is a likelihood of contagion or some second-order effect, but it will depend on the severity of the conflict and the severity of the retaliation if there is a conflict," Noel Quinn told Reuters.

Stay up-to-date here: Bloomberg | FT | BBC | Washington Post.

FOR TOMORROW-

Two Egyptian startups will pitch their businesses to leading tech investors at the pan-African Africa Tech Summit in Nairobi, which kicks off tomorrow. Blockchain-based communications platform Pravica and agritech startup Visual and AI Solutions (VAIS) are among the nine startups that have been selected for the two-day event, which will bring together African startups, VC and private equity investors, lenders, and global tech leaders.

???? CIRCLE YOUR CALENDAR-

A call for tech startups: The Information Technology Industry Development Agency (ITIDA) and US-based VC firm Plug and Play have launched an incubator and accelerator program for digital transformation-focused startups in partnership with our friends at USAID. The newly launched “Smart Cities” innovation hub will select 20-30 Egypt-based companies for its inaugural three-month program, which starts in March. Startups can apply here before applications close on 28 February.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- A bout of warm weather: The mercury will rise to a daytime high of 25°C tomorrow, marking the warmest day these past few weeks, our favorite weather app indicates. The temperature will fall to 11°C at night ahead of a cold front on Thursday and Friday.