Back to the complete issue
Sunday, 30 October 2022

Musk takes over at Twitter + US earnings face USD 10 bn hole in 3Q thanks to stronger greenback

Musk is now officially chief twit: Elon Musk has closed his USD 44 bn acquisition of Twitter after a six-month saga that almost hashed out in court in a high-profile trial. Following the acquisition, Musk ousted Twitter’s CEO and CFO, and sources told Reuters that he plans to become interim CEO. Musk had for months cast doubt over his intentions to buy the company, claiming it had failed to adequately disclose the number of spam bots and fake accounts on the platform, leading Twitter to sue the b’naire. (CNBC | Bloomberg | Financial Times | Associated Press | Washington Post)

The surging USD is weighing on US corporate earnings: The red-hot greenback is expected to erase more than USD 10 bn from US 3Q earnings, the Financial Times reports. Tightening financial conditions have sent the USD surging to 20-year highs this year, hurting US companies’ overseas sales. Each 8-10% rise in the USD index knocks one percentage point from S&P 500 earnings per share, according to Jonathan Golub, Credit Suisse’s head of US equity strategy.

Up EGX30 11,072 +4.9% (YTD: -7.3%)
Up USD (CBE) Buy 22.86 Sell 23.00
Up USD at CIB Buy 22.90 Sell 23.00
Up Interest rates CBE 13.25% deposit 14.25% lending
Down Tadawul 11,710 -0.8% (YTD: +3.8%)
Down ADX 10,287 -0.1% (YTD: +30.8%)
Down DFM 3,349 -0.5% (YTD: +4.8%)
Up S&P 500 3,901 +2.5% (YTD: -18.1%)
Down FTSE 100 7,048 -0.4% (YTD: -4.6%)
Up Euro Stoxx 50 3,613 +0.2% (YTD: -16.0%)
Down Brent crude USD 95.77 -1.2%
Down Natural gas (Nymex) USD 5.68 -3.3%
Down Gold USD 1,644.80 -1.3%
Up BTC USD 20,851 +1.2% (YTD: -54.8%)

THE CLOSING BELL-

The EGX30 rose 4.9% at Thursday’s close on turnover of EGP 2.3 bn (55.1% above the 90-day average). Local investors were net sellers. The index is down 7.3% YTD.

In the green: Egypt Kuwait Holding-EGP (+9.7%), QNB Al Ahly (+9.3%) and CIB (+9.2%).

In the red: Housing and Development Bank (-2.2%), Madinet Nasr Housing and Development (-1.5%) and Heliopolis Housing and Development (-1.3%).

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.