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Sunday, 21 May 2017

What we’re tracking on 21 May 2017

The Central Bank of Egypt’s Monetary Policy Committee will hold a rare Sunday meeting today to discuss interest rates. Analysts see the Central Bank leaving rates unchanged, despite the IMF suggesting that they’re an “appropriate tool” to cool inflation. Standard Chartered agrees, according to the Wall Street Journal’s weekly frontier column, which notes, “Standard Chartered this week voiced concern about Egypt’s inflation rate … urging the country’s central bank to raise interest rates to 15.25% to choke off inflation, the bank said private credit has grown rapidly as banks have acquired more liquidity.”

Six of seven economists surveyed by Bloomberg argue against a rate hike, saying to do so would be “counterproductive because the price gains are not being driven by excess demand.” An analyst at Standard Chartered argues that “while inflation is being driven by cost factors, other indicators — including rising domestic credit — suggest the economy still faces excess liquidity.” The roundup of views, by the business information service’s Ahmed Feteha, is absolutely worth reading this morning: Why Rate Increase Is No Answer to 30 Percent Inflation in Egypt.

President Abdel Fattah El Sisi flew to Riyadh yesterday to attend the Arab-Islamic-American summit, alongside US President Donald Trump and other world leaders, says a statement from the presidency picked up by Al Mal. El Sisi, who is expected to give a speech today about Egypt’s counterterrorism strategy, will also be holding one-on-one meetings with a number of his regional and global counterparts during his two-day stay. Sudanese President Omar Al Bashir will not be among them, as Al Shorouk reports he informed Saudi’s King Salman he would not be joining the gathering for “personal reasons.” Al Bashir is sending Minister of State Taha Al Hussein to attend the summit on his behalf.

Trump-mania sweeps the Gulf: Judging from media coverage to date, The Donald is to the GCC what Elvis was to teenage girls in about, say, 1957. The US president was accorded a remarkable welcome when he touched down in Riyadh yesterday, and Trump’s first visit abroad is leading newspapers around the world. The regional enthusiasm will continue today as he makes what is expected to be a landmark speech on Islam. Trump is also expected to meet the leaders of the GCC countries as well as President Abdel Fattah El Sisi.

For good measure, the official Saudis Must Have Fun Organization put together a celebratory Harley ride and a car race pitting four US drivers against four Saudis. “After the biker rally, thousands of men filled a stadium at the university to watch a car race also timed to coincide with Mr. Trump’s visit. Three food trucks, another American import, did brisk business, selling burritos and hamburgers, and the ceremony opened with the Saudi national anthem and the Star Spangled Banner.” Read With Harleys and Hamburgers, Saudis Salute U.S. on Trump’s Visit, then head down to Speed Round for more coverage.

Meeting with Trump? “Keep it short and give him a win,” advises the New York Times, boiling down the collected wisdom of the global diplomatic community.

Trump is in Israel tomorrow for a two-day visit, then heading to Italy, the Vatican and Brussels.

Cairo American College wins first place in Injaz Egypt’s 2017 Company Competition: The CAC Injaz team will now go on to represent Egypt at the regional inter-school competition, which will be hosted in the fall here in Cairo. Their Zip & Flip beach bag-towel combo has made more than EGP 40K in sales since the company first launched one month ago. The team did an excellent job yesterday presenting their business and answering questions in front of a panel of judges from the Egyptian business community. Injaz Egypt was established in 2003 and is the regional operating center of Junior Achievement (JA — check out the worldwide, US or Canadian sites). The first stage of the competition is over but the bags are still available for order on Facebook and Instagram. The CAC Injaz team was advised by Hassan Abdou, a longtime friend of Enterprise and fixture of the business community.

Longtime readers know we love a good redemption story, and the New York Times’ Dealbook serves up a great one with a look at Jon Corzine, a former boss at Goldman Sachs, ex US senator and former governor of New Jersey who is bidding to write the final chapter in a storied career after suffering the death by suicide of his 31-year-old son and the meltdown of MF Global on his watch as CEO. His swan song: A hedge fund “designed to take advantage of the turmoil in the Trump era.” Read In Tumult of Trump, Jon Corzine Seeks a Wall Street Comeback.

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