Clifford Chance optimistic on Egyptian M&A in 2017. The multinational law firm says it “expects the consumer goods and retail sector to be particularly active given the demographics of the Egyptian economy. Other sectors will also benefit from private equity and strategic investors as the [EGP] trends towards a ‘new norm’ in FX markets.” The resurgent interest in emerging market and the EGP float mean that “the time is ripe for an uptick in Egyptian M&A… The FX see-saw is reaching a balance, giving greater confidence to buyers and sellers,” Clifford Chance Africa M&A partner Jason Mendens said. Several “critical players” have already approached the firm for opportunities in Egypt’s power sector, particularly in the “renewable space,” said Mohamed Hamra-Krouha, the firm’s Africa projects and finance partner.

Eye-opener of the morning: Does China have troops in Afghanistan? “China’s defence ministry on Thursday dismissed reports Chinese military vehicles were patrolling inside Afghanistan, saying the two countries were only carrying out counter-terrorism operations along their common border,” Reuters reports. The Financial Times, citing an Indian media report and another piece by a thinktank, is running with the story on its front page (digital) this morning, writing, “The motivations for China to deepen its involvement in Afghanistan are several. Beijing fears contagion from Islamic extremism, while Chinese companies also hold key mining and hydrocarbons concessions across Afghanistan.” Security nerds: Read this alongside the FT’s “Chinese private security goes global” and then the Wall Street Journal’s recent “Afghanistan struggles to access China’s New Silk Road,” which tells us that “Trains from China arrive full but go back empty amid fears that terrorists could profit.”