WHAT WE’RE TRACKING TODAY

Saudi Arabia will open tomorrow to qualified foreign investors with assets under management of more than USD 5 bn. The long-awaited move comes amid the sharpest selloff of emerging markets shares since the global financial crisis, the first signs of which we noted last week. Asia led the downturn, with about USD 8 bn pulled out of the region’s equity markets in the week to last Thursday, according to data from the WSJ. The FT adds that EM lost a total of USD 9.3 bn in the same period. The sell-down of emerging markets equities comes as the USD continues to strengthen while yields on European debt rise.

The World Bank’s warning last week now seems particularly prescient: The bank issued on Wednesday its semi-annual Global Economic Prospects report, which notes that “developing countries face a series of tough challenges in 2015, including the looming prospect of higher borrowing costs as they adapt to a new era of low prices for oil and other key commodities, resulting in a fourth consecutive year of disappointing economic growth this year.” Check out the World Bank statement that accompanied the report for a solid summary, or head to the Global Economic Prospects landing page for a link to the pdf of the report itself, which notes that developed economies are expected to resume leading global growth.

ALSO: Prime Minister Ibrahim Mahlab is in South Africa for the African Union summit. See our Diplomacy section for more.

WHAT WE’RE TRACKING THIS WEEK

The final verdict in former president Mohamed Morsi’s trial for his role in the 2011 Wadi Natroun prison break is scheduled to be announced on Tuesday, 16 June.

The next session in the court case filed against the lifting of cotton subsidies is also scheduled for Tuesday.

Ramadan should begin on Thursday. Fajr will be at about 3:08am CLT; iftar at about 6:59pm CLT.

LAST NIGHT’S TALK SHOWS

Both of our talk show reviewers were off last night; we’ll be back with our customary coverage tomorrow until the talk shows go on hiatus during Ramadan.

** READ ENTERPRISE IN ARABIC: The beta edition of Enterprise Arabic is now available. Sign up herewithout charge.

SPEED ROUND

The Egyptian government approved a proposal to set up a sovereign wealth fund. “The fund, called Amlak, will be state-owned through the National Investment Bank. It will act as the state’s investment arm and aim to encourage diversification and support sustainable economic and social development, the cabinet said in a statement,” Reuters reports. The investments would not be managed directly by the state, the government said without giving further details.

As expected, the CBE’s Monetary Policy Committee kept its benchmark rates unchanged, according the statement released on Thursday. The overnight deposit rate stands at 8.75%, with the overnight lending rate at 9.75%, and the rate of the CBE’s main operation at 9.25%. The CBE notes that “while the widening trade deficit is stalling real GDP growth, investment remained positive for the fourth consecutive quarter. Looking ahead, while investments in domestic mega projects such as the Suez Canal are expected to contribute to economic growth, the downside risks that surround the global recovery on the back of challenges facing the Euro Area and the softening growth in emerging markets could pose downside risks to domestic GDP.” In our view, this is signals an expected rate reduction of at least 50 bps before the end of 2015.

You may not need a smart card to fill-up your car tomorrow. President Abdel Fattah El Sisi has ‘requested’ that the Mahlab government postpone its implementation of fuel smart cards for individual vehicles “until all sectors that do not have these cards are covered.” The fuel smart card system was scheduled to go into effect tomorrow. El Sisi made the remarks at a meeting of his Council of Economic Advisors, according to a meeting readout released by Ittihadiya, with coverage here in English or in Arabic. Somehow, this announcement was lost on Deputy Finance Minister Amr Badawy, the man in charge of rolling out the smart cards, who stated that he received no order to postpone rolling out the system and that it will proceed according to schedule. He added that those with no cards could obtain the same amount as those with cards due to provisions dubbed “emergency cards,” Al Borsa reports.

The New Suez Canal is set to open on 6 August, according to Suez Canal Authority chief Mohab Mameesh, who led a tour of the megaproject for foreign journalists. “The digging and dredging works will conclude on July 15.” Upon completion, the canal will reduce ship navigation time from about 22 hours to 11 hours. Work is about 85% complete at present. The Sisi administration says the opening of the new canal will see revenues rise to USD 13 bn in under 10 years from USD 5.5 bn last year. Reuters and the AP have more on the canal opening, while Al-Ahram notes that seven WPP-owned PR companies will organize the inauguration ceremony for the New Suez Canal. At the helm appears to be many of the fame people who brought us the EEDC in Sharm El Sheikh: Richard Attias and Associates, JWT, Ogilvy PR, Memac Ogilvy, Mindshare and Media Wave PR. Al-Mal threw a softball to JWT boss Hany Shoukry, asking him to outline which agency will do what.

“The Disappeared” making international headlines. The disappearance in recent weeks of activists — many of them university students, as we’ve previously reported — is fast becoming an international issue for Egypt. The story first made the jump to international media in the Telegraph (‘Growing toll of “the disappeared” after year of Sisi in Egypt‘), but is told with more passion and insight by Erin Cunningham in theWashington Post: “They have been taken from their homes, the streets, even from schools. Some have turned up dead, while others have just vanished. They are Egypt’s disappeared: dozens of students and activists kidnapped in what human rights advocates say is an escalation of the government’s campaign against dissent.”
The UAE’s Talas Group aims to establish an EGP 1 bn tea factory in Egypt within the next five years. The company hopes to increase its average monthly Egyptian sales from USD 1.5 mn to USD 2 mn during the current fiscal year and, in parallel, would look to expand its activities in Upper Egypt, the Delta, and the Suez Canal area provided there is further infrastructure improvement in those areas. (Read in Arabic)

Sparing us further international embarrassment, an Egyptian court acquitted Sainsbury’s CEO Mike Coupe of embezzlement charges relating to an historic business dispute from before he joined the company. Reuters notes that the initial charge was brought forward in absentia. The news has also been picked up by the FT.

Bank of England Deputy Governor Nemat ‘Minouche’ Shafik has received a damehood for services to public administration and the global economy. Shafik, who made the Queen of England’s list of birthday honors this weekend, was deputy director at the IMF from 2011 until summer 2014, when she joined the Bank of England. Read more here, here and here. It’s the second high-profile nod for Shafik in as many weeks, coming after she made Forbes magazine‘s list of the 100 most powerful women in the world.

“Nothing happening here, folks,” says Arabtec. After rumors of a breakthrough on its mn homes project in Egypt resulted in a share price rally, Arabtec told the Dubai Financial Market that nothing had taken place that would necessitate a disclosure.

MOVES- Journalist Maggie Fick has left Reuters and joined the FT to become the salmon-colored paper’s West Africa correspondent, where she will be based in Lagos.

Nissan wants its foreign component suppliers to establish factories in Egypt so that it can increase its local content component. “We have a plan to attract suppliers working abroad to establish factories in Egypt,” said the Deputy Chairman of Nissan Motor Corporation in Africa, the Middle East, India, and South Asia. In related news, Nissan’s aims to increase production at its factory in Egypt, established in 2005, from 21,000 vehicles in 2014 to 26,000 by the end of this year. (Read)

State-owned hospitals to be restructured, get budget bump: Health Minister Adel Adawy announced that hospitals under the National Health Insurance Program will undergo restructuring and see their budgets raised. At a visit to one of these hospitals, the minister added that the new health insurance law, which will expand coverage to mn of citizens, is ready and will be sent to a new parliament upon their election. (Read in Arabic) The news comes after a concerted social media campaign orchestrated by physicians appalled that Prime Minister Ibrahim Mahlab could express surprise at the poor condition of state-funded hospitals; we reported on the campaign in Thursday’s edition.

Prime Minister Mahlab is expected to meet with representatives of 40 French companies on Monday 15 June to discuss potential avenues for investments in Egypt. According to Foad Younis, the head of the French-Egyptian Business Council, the three day visit will include meetings with the three primary econ ministers in addition to the minister of electricity. The visit will also include a trip to the Suez Canal area. (Read in Arabic)

Switzerland is eager to cooperate with Egypt over the return of Mubarak-era officials’ funds to Cairo, Valentin Zellweger, the Director and Legal Adviser at Swiss Department of Foreign Affairs, has reportedly said. Switzerland had halted cooperation with Egypt in December 2012 after concerns about the Egyptian judiciary’s independence.

Ittihadiya denied that one of its vehicles was attacked en route back from Sharm El Sheikh,according to a statement. The real story, according to the presidency, was that a checkpoint stopped a car that did not have licence plates and was forced to fire warning shots before arresting the driver as he tried to drive away. The Interior Ministry is threatening to bring charges against the editor of Youm7 for having reported the story, which it said “disturbed public order.” On a tangential note, the Prosecutor General’s Office is backing assertions made on Wednesday night’s talkshows that it was a cab driver, not security forces, who first twigged that something was amiss with the terrorists who decided they were going to attack the Temple of Karnak.

Saudi is in the global spotlight as global investors anticipate the opening of its market for the first time to qualified foreign investors on Monday. QFIs need to have assets under management of at least USD 5 bn to be allowed to buy. In ‘Saudi Business Opening Drives Social Changes,’ the WSJ’s Ahmed Omranuses the National Commercial Bank — which IPO’ed last year — as a way into a story that dips its toes into how business is leading social change in the Kingdom, where only 20% of women above the age of 15 participate in the workforce. Before any of us get too smug, though: The figure for Egypt is 24%, compared with 47% in the UAE and 50% on average across the world.

Elsewhere in the Journal, Nicolas Parasie argues that Dubai could benefit more than Riyadh from Saudi’s opening, at least initially. Shearman & Sterling Middle East Managing Partner Marwan Elaraby is on point when he says, “A critical piece of doing business in Saudi Arabia is having an office in Dubai. This allows for connectivity to a key regional hub as well as simplifying logistics.” Parasie also quotes an unnamed fund manager who said “his firm will assess how the first months and even years of the market opening pan out before setting up a large office in the kingdom.” (Read)

You don’t have Dick Costolo to kick around anymore, because, gentlemen he’s out. Dick Costolois out as CEO of Twitter barely a week after Twitter anchor investor (and cowboy shirt aficionado) Chris Sacca penned a widely circulated blog post on titled ‘What Twitter can be‘. Twitter co-founder Jack Dorsey is taking over as interim CEO while the board looks for a leader who can figure out why Twitter’s growth is lagging analyst expectations. (With apologies to the late Richard Nixon for the purloined quote.

Turkey’s G20 presidency to focus on Islamic finance: Deputy Undersecretary of the Turkish Treasury Burhanettin Aktas announced on Wednesday that his country’s presidency of the G20 will focus on promoting Islamic finance. Speaking at a meeting of the Islamic Development Bank (IDB) in Mozambique, Aktas praised the role of shariah-compliant finance in the development of both infrastructure and SMEs, adding that the Turkish presidency will be working with the IMF and World Bank on this front. (Read in Arabic, Read inEnglish)

It seems as though Barack Obama’s attempts at a trade agreement is going considerably worse than the similar trade-promotion efforts President Abdel Fattah El-Sisi: The US House of Representatives overwhelmingly shot down the Trade Adjustment Assistance bill (TAA) on Friday, the Guardian reports. The bill was an attempt by the Obama administration to fast track approval for the Trans-Pacific Partnership (TPP) trade and foreign investment agreement. The agreement galvanized the opposition to it from much of Obama’s base such as labor unions, Senate Democrats, Silicon Valley big shots for good reason. Green Party leader, Ralph Nader discussed why the TPP not the ‘progressive’ trade agreement Obama claims it is.

***
A MESSAGE FROM PHAROS HOLDING

Technically speaking: Put your stops below the 8,600 mark.

Pharos Research released a report on Thursday, June 11th highlighting the short-term trend for the EGX 30 based on the development of technical analysis indicators. Pharos views that the recent break of the 8,800 support level, which represents a 62.8% Fibonacci retracement of the previous upward movement, could possibly signal a market rebound. However, we also note that with the MACD giving a sell signal and the Stochastic hovering in oversold territory, bears are in control of the market. Pharos thus advises those wishing to trade the market at the current levels to place their stops below the 8,600 mark. Click here to read more.
***

WHAT YOU CLICKED ON LAST WEEK

The most-clicked links in Enterprise in the week of 7 June 2015 were:

• State Department report to congress is critical of Egypt (original document in pdf)
• Emaar IPO early look presentation (original document in pdf)
• Ahmed Zayat’s Journey: Bankruptcy and Big Bets (New York Times)
• Egypt’s new desert capital: metropolis or mirage? (FT)
• One year on: Economic policy under El Sisi (Ahram Online)

EGYPT IN THE NEWS

International media coverage of Egypt is dominated this morning by fallout from last week’s abortive terror attack in Luxor, the early August opening of the New Suez Canal and Egypt opening the border with Rafah for the first time in months (see Diplomacy, below, for the latter). As we noted in the Speed Round, we’re also seeing signs that the international media is picking up on reports of the disappearance of student activists on which we’ve been reporting these past few weeks.

Luxor Fallout: Coverage is largely dominated by global media’s pickups of the Associated Press story ‘After Attack, Egypt’s Luxor Fears New Blow to Vital Tourism‘, a long take that notes, “Residents are in a panic in this Egyptian city of monumental pharaonic temples and ancient tombs, fearing that a foiled terrorist attack outside the famed Karnak Temple will kill the tourist industry on which most of the population depends for their livelihoods, just as it was starting to regain some footing after years of turmoil.”

New Suez Canal: The Suez Canal Authority’s blitz of foreign media is paying off, with coverage everywhere from Associated Press to ABC News (Australia), Fox News, Business Insider, RT and Reuters.

WORTH READING

Saudi Arabia watchers continue to speculate about King Salman’s next move. Bruce Riedel, director of the Intelligence Project at the Brookings Institution, analyses the New York Times’ assertion thatPrince Mutaib bin Abdullah, the minister for the Saudi Arabian National Guard (SANG), could be the next person to be axed. “SANG has been the private base for Abdullah’s branch of the royal family since Abdullah became its commander in 1962,” Abdullah writes for Al Monitor cautioning that “Removing Mutaib could alienate a powerful branch of the family, already disappointed that two of its sons have lost their governorships… Moreover, changing the command structure of SANG during wartime would signal a leadership failure that the king and his son might find counterproductive.”

No doubt about it, this man really is Tony Stark. Elon Musk has announced another world changing plan: launching 4,000 satellites to broadcasting internet to the entire globe His space cargo transport company, SpaceX, has officially asked for permission from the FCC to build a constellation of 4,000 satellites capable of beaming the Internet to the most remote regions of the earth. The plan would not only make him a hero to mns (probably bns) who lack access to internet, it would stand to make SpaceX on of the biggest internet providers in the world beating out the likes of Verizon and Comcast. Both Google and Facebook had given up on similar plans. (Read)

WORTH WATCHING

Just don’t do this when I’m aboard. For the AvGeeks among you, The Hill has a viral video of a Boeing 787-9 in Vietnam Airways colors standing on its tail after taking off, flying nearly vertical before it settles into level flight. For the non AvGeeks out there: The 787 is the next-generation long-haul airliner Boeing is pitting against the Airbus A380. EgyptAir flies both Boeing and Airbus aircraft and was said by Bloomberg in late 2013 to be considering both the 787 and the A380. (Read and watch; run time 3:06)

Airplanes not your cup of tea? Remind yourself how gorgeous the Egyptian desert really is by flipping through 15 stunning images of the White and Black Deserts by Reuters‘ Amr Abdallah Dalsh. Among them: Amazing night shots of the Milky Way and the planet Venus.

DIPLOMACY

NEPAD switch: Prime Minister Ibrahim Mahlab will stand-in for President Abdel Fattah El Sisi in South Africa, delivering the president’s speech to a gathering of the New Economic Partnership for African Development (NEPAD) and attending the annual African Union summit, according to the State Information Service. Ahram Online has more, and if your blood pressure needs a pre-Ramadan boost, check out thebraying of Ikhwani media, as the Middle East Monitor only hints that El Sisi’s cancellation is somehow related to a call by Islamist lawyers in South Africa for his arrest.

Africa Free Trade Zone talks to start in South Africa: After inking a nearly-continental free-trade agreement in Sharm El-Sheikh last week — which covers about 626 mn people and aggregate GDP north of USD 1.2 tn — trade negotiators will get down to brass tacks in South Africa as formal negotiations begin on the sidelines of the African Union summit. The COMESA / SADC / EAC pact is generally seen as a prelude to the so-called Continental Free-Trade Area the African Union hopes to establish by 2017. The New York Times has more.

What’s the Africa Free Trade Zone, anyway? And why does it matter to Egypt? Cairo’s N Gage consulting has released a 6pp overview of the proposed AFTZ, including Egypt’s position in the negotiating process, the economic repercussions of the agreement on intra-African trade and investment, and infrastructure development in Africa. (pdf download)

President Abdel Fattah El Sisi spoke on Friday by phone with Cypriot President Nicos Anastasiades, according to an emailed statement from Ittihadiya, which noted the two had discussed “ways to enhance bilateral relations both politically and economically.” Egypt is interested in opportunities to tap gas from offshore Cypriot fields.

Egypt opens Rafah crossing into Gaza in sign of easing tensions: The government permitted two directional flow across the Rafah border crossing with Gaza on Saturday after it ordered the opening of the crossing for three days, Reuters reports. In addition to regular passage of people and humanitarian aid, seven trucks with building materials for the private sector entered Gaza, the first time since 2007 that Egypt has allowed a commercial shipment via Rafah.. The move comes as tensions between Hamas and Egypt seem to be subsiding. The move follows an Egyptian court ruling, which recognizes Hamas as a legitimate organization and removing it from a list of terror-sponsoring organizations. Undoubtedly, both moves are cause for concern for Netanyahu’s government.

ENERGY, RENEWABLE ENERGY & SUBSIDY REFORM

EEHC looking to borrow over EGP 3.3 bn for power plant projects (revised figures)
Al Borsa | 11 June 2015
Al-Borsa has revised figures and clarified the funding breakdown in its story on the Egyptian Electricity Holding Company (EEHC) looking for an EGP 3.3 bn financing package for its 2.3 GW Kafr El-Sheikh power plant. The story quotes Bank Audi’s Mohamed Fayed as also saying EEHC wants to borrow USD 323 mn in foreign currency to finance the expansion of power generation facilities in Assiut and Damietta.

Ministry of Electricity ordered to implement MoU with ACWA Power
Al Borsa | 13 June 2015
President Abdel Fattah El-Sisi ordered the Ministry of Electricity to begin implementing the protocols of the MoU signed between the ministry and Saudi-based energy company, ACWA Power, which was signed at the EEDC. According to a source within the company’s offices in Egypt, the president wants to company’s projects fast tracked. These projects are expected to generate 6.2 GW with investments of USD 15 bn. (Read in Arabic)

OIL & GAS

Warning signal from EGPC, concerns about mounting debt
Egypt Independent | 11 June 2015
EGPC is facing “financial distress” as FY2014/15 ends, Oil Minister Sherif Ismail said. EGPC’s receivables from other government entities increased by 13% to EGP 95.5 bn in the first ten months of the fiscal year, he added, with bank and trade payables more than doubling to reach EGP 101 bn. “Ismail requested the support of the cabinet in order to save the finances of the EGPC,” Egypt Independent said. (Read)

BASIC MATERIALS & COMMODITIES

Centamin invested USD 607 mn to expand Sukari mine operations
Amwal Al Ghad | 11 June 2015
Centamin invested USD 607 mn to expand its operations at the Sukari gold mine, Chairman Joseph El Raghy said. Production from the gold mine reached 1.43 mn ounces. Commenting on the country’s production potential, El Raghy believes that Egypt holds a number of sites that could hold viable gold mines, some of which could be as big a Sukari. (Read in Arabic)

MANUFACTURING

Steel manufacturers halted operations for 100 days in the first five months of the year
Amwal Al Ghad | 10 June 2015
Steel manufacturers could not operate for 100 days during the first five months of the year, the Chairman of the Metallurgical Industries’ Chamber at the Federation of Egyptian Industries said. Operations were put on hold due to the producers’ inability to allocate hard currencies needed to pay for raw materials as well as the shortage in natural gas supplies. The Chamber estimates that the operational disruption led to foregone revenues of EGP 8 bn. (Read in Arabic)

Wipro mulls investing EGP 500 mn for Egyptian cosmetics factory
Al Mal 13 June 2015
Indian multinational Wipro is studying the possibility of investing EGP 500 mn to establish a cosmetics factory in Egypt, said the Hena Amil Samaan, the company’s General Manager in Egypt and the Middle East. Wipro, which has invested in a number of projects throughout the region, has witnessed its Egypt-based projects register the highest growth rates, at times reaching 40%,  added Samaan.(Read in Arabic)

REAL ESTATE & HOUSING

Court of Cassation upholds ‘not guilty’ verdict for Mubarak’s last housing minister
Ahram Online | 13 June 2015
The Court of Cassation rejected an appeal by Prosecutor General’s Office against an early acquittal verdict for Mubarak’s former housing minister, Ahmed El-Maghrabi, who was accused of squandering public funds and profiteering. El-Maghrabi was also acquitted of illegally allowing an investor to acquire a piece of land in New Cairo. (Read)

TOURISM

No tourist cancellations Luxor noted, Chamber of Tourism member says
Al Masry Al Youm | 11 June 2015
The thwarted attack on the Karnak Temple in Luxor did not lead to any significant cancellations of tourist arrivals in Luxor. A member of the Chamber of Tourism said. Tour operators and tourist groups are still on track to arrive to Luxor. He added that the Egyptian police’s ability to foil the attack sends a positive message to tourists across the world. (Read in Arabic)

Alexandria to inaugurate tourist tram on Tuesday
Al Mal | 11 June 2015
The Governor of Alexandria, Hani  El Messeiry inspected Alexandria’s tourist tram car on Thursday, in preparation for its inauguration on the Tuesday of this week. The total of the cost of the project is EGP 250,00. A ticket on the tourist tram will cost EGP 5. (Read in Arabic)

TRANSPORT & AUTOMOTIVE

EGP 60 mn allocated to develop platform, silo in Alexandria Port
Al Borsa | 11 June 2015
The Supplies Minister Khaled Hanafy said EGP 60 mn is going to be spent on refurbishing a platform and a wheat silo in the Port of Alexandria. EGP 20 mn will go towards the refurbishing the silo and adding two lines to receive grains. The rest will go towards increasing the capacity of platform 84 to be able to unload 600 tonnes per hour. (Read in Arabic)

BANKING & FINANCE

NBE on track to generate record profits
Al Borsa | 11 June 2015
National Bank of Egypt (NBE) is on track to generate over EGP 4 bn in profit this fiscal year, the bank’s Deputy Chairman, Mohamed Montasser, said. He added that the profits expected in FY2014/15 will be the largest the Egyptian sector has ever seen. Montasser said that NBE is about to issue EGP 500 mn in new credit facilities to companies operating in the building materials sector. (Read in Arabic)

OTHER BUSINESS NEWS OF NOTE

A/C prices climb 30% after heatwave
Al Borsa | 11 June 2015
Prices of air conditioning units have gone up by 30% y-o-y following a heatwaves and as the summer season approaches. The price increase is driven primarily due to a supply shortage, traders said. Part of the price decrease is blamed on the exchange rate as well as the shortage of hard currency domestically. (Read in Arabic)

Qalaa Holdings posts 42.5% rise in revenues, net loss narrows by more than 50% in 1Q2015 financials
Reuters, Company Disclosure | 11 June 2015
African investment company Qalaa Holdings reported a 42.5% surge in revenues to EGP 1.95 bn in the first quarter of 2015, according to a company statement (pdf download), which quotes Qalaa Chairman and Founder Ahmed Heikal as saying, “As was the case in FY14, where Qalaa swung to a positive EBITDA north of EGP 650 mn, up from a negative a year earlier, we are on track to meet our previously stated guidance of EBITDA of around EGP 1.2 bn by year’s end. At the same time, our bottom line losses continued to narrow in 1Q15. We are well on-track to return to profitability by the end of 2015.” Reuters also has coverage.

Cairo Airport Company to offer land for investors
Al Borsa | 11 June 2015
The Cairo Airport Company (CAC) said it will offer one mn sqm for investment projects. The head of the CAC said he offered the land to businessman Mohamed Abou El Enein for him to implement a project on. The land will be available after it is cleared from waste. (Read in Arabic)

Canal Electricity Distribution Company receives 500,000 LED lightbulbs
Al Mal | 13 June 2015
The Canal Electricity Distribution Company (CEDC) has received an order of some of 500,000 LED lightbulbs from the government. To date, the company has distributed 140,000 of these lightbulbs to its users. In order to lessen the financial burden on its users, consumers will have the option of the paying for the EGP 25 lightbulb in monthly installments. By distributing the energy saving lightbulbs, CEDC aims to decrease its users’ overall energy consumption by approximately 25%. (Read in Arabic)

EGYPT POLITICS + ECONOMICS

Fitch rates Egypt’s ten-year bonds ‘B’
Reuters | 11 June 2015
Reuters reported that Fitch Ratings has assigned Egypt’s USD 1.5 bn ten-year bonds a ‘B’ rating. “The bonds have a coupon rate of 5.875%. The proceeds will be used for the general budgetary purposes of the government,” the newswire reported. (Read)

Deadline for EEDC MoUs extended
Al Borsa | 11 June 2015
The government will extend the MoUs signed at the EEDC to complete its assessment of the proposed projects, Investment Minister Ashraf Salman told Al Borsa. He added that the government is still negotiating agreement details with investors. According to the planned schedule, MoUs were supposed to be translated to actual agreements within a week – 90 days after the conference. Salman noted that no MoUs have been cancelled so far. (Read in Arabic)

ON YOUR WAY OUT

Cabinet grants powers of arrest to neighborhood leaders in Alexandria: Cabinet issued a decree that essentially deputizes civilian neighborhood leaders in Alexandria, giving them the power to make citizen’s arrests in cases where they suspect someone has violated building codes. The decision, which was discussed on Wednesday and reported in Enterprise, came as a result of a proposal by Alexandria’s governor, Hany El Messiry. What could ever go wrong? (Read in Arabic)

The Sadat metro station in Tahrir is due to open next Wednesday, announced Hany Dahy, Minister of Transportation, after meeting with the Interior Minister. This key metro hub had been shut down since the August 2013 crack-down on Islamist protesters in Nahda and Raba Adaweya squares. (Read in Arabic)

Rejoice, people, it is perfectly safe to eat donkey meat, the head of the Food Safety Authority saidcalming fears arising after the discovery of a large number of slaughtered donkeys being marketed as beef recently.

The trial of Al Jazeera English journalists Mohamed Fahmy and Baher Mohamed has been adjourned to 25 June for further closing statements from the defence team, Reuters reported.

Local development projects may get an EEDC-style boost as Investment Minister Ashraf Salman begins laying the groundwork for feasibility studies for regional development projects, Al-Ahram reports.

BY THE NUMBERS

USD CBE auction (Tuesday, 09 June): 7.5301 (unchanged since Monday, 02 Feb)
USD parallel market (Tuesday, 09 June): 7.67 (unchanged from Sunday, 07 June, Reuters)

EGX30 (Thursday): 8,626.5 (-0.2%)
Turnover: EGP 310.2 mn, 35% below the 90-day average

WTI: USD 59.96 (-1.33%)
Brent: USD 63.87 (-1.90%)

TASI: 9,518.4 (-0.2%)
ADX: 4,555.3 (-0.8%)
DFM: 4,072.8 (-2.7%)
KSE: 424.4 (-0.3%)
QE: 11,879.6 (0.4%)
MSM: 6,482.3 (0.1%)