What we’re tracking on 06 June 2018
Wait, did the Ismail Cabinet just resign? That’s the tenor of the clickbait headlines from the local press on what is a standard procedure after the inauguration of a president. Prime Minister Sherif Ismail has submitted his cabinet’s collective resignation to President Abdel Fattah El Sisi, who was sworn in for his second term on Saturday. El Sisi promptly appointed the cabinet to continue in a caretaker capacity until a new government is formed, according to a statement from Ittihadiya.
You can still expect the Council of Ministers to hold its weekly meeting today as the rest of us sit around and speculate about who will be in and who will be out when the new cabinet is formed.
New ambassadors coming? President El Sisi also held a meeting yesterday with newly appointed Egyptian ambassadors, according to Ittihadiya. El Sisi urged them to present an “accurate picture” of Egypt’s political and economic situation abroad. We have yet to hear the names of the ambassadors or their respective posts, but we’ll be keeping an eye out.
Separately, El Sisi said yesterday that Egypt will see “a number of great achievements that will be inaugurated” following the Eid El Fitr celebrations. He praised Egyptians for their patience during the economic reform measures, adding that in two years, he hopes people “will see Egypt in a different place,” according to Youm7.
Jordan’s King Abdullah tapped former World Bank economist Omar Al Razzaz with the task of forming a new government,Reuters reports. Al Razzaz’s appointment comes after protests against proposed tax increases and austerity measures led Prime Minister Hani Mulki to resign. The Harvard graduate had worked with the World Bank in Washington and the Middle East and was education minister in the outgoing government.
Wall Street doesn’t see the Emerging Markets Zombie Apocalypse spreading. “This year won’t see a re-run of nightmare on EM street. That’s the growing message from Wall Street, at least three of whose leading banks have been singing the praises of emerging markets, as well as more than a few money managers. And now, a former central banker has joined the chorus,” Bloomberg reports, name-checking Goldman Sachs, Morgan Stanley and Citigroup as among the optimists. This comes as emerging markets “suffered their biggest portfolio outflows in a year and a half in May,” according to data from the Institute of International Finance. Some USD 12.3 bn fled the asset class last month, “split roughly equally between EM bonds and equities.”
Think M&A is the way to grow? Ask yourself how easy it will be to put the pieces together post-acquisition. Facebook is determined to make more money off your use of WhatsApp, and the WSJ has the inside story of why its founders left bns on the table on the way out of the door in protest. The warning signs were there from the beginning, and played out in odd contract clauses and fights over office noise — and who got the better bathrooms. Read: Behind the messy, expensive split between Facebook and WhatsApp’s founders.
In miscellany this morning:
- Abu Dhabi has announced a USD 13.6 bn stimulus program to reignite economic growth over the coming three years.
- The Wall Street Journal has a new editor-in-chief. Newsroom veteran Matt Murray moves up as Gerry Baker becomes editor-at-large, where he will write, do television and host conferences and events.
- The iconic designer and entrepreneur Kate Spade is dead of an apparent suicide.
- If you’re still getting your head around what’s new in the beta of iOS 12, Macstories has your back.
Your Ramadan rundown for today:
Bank hours run 09:30 am to 01:30 pm for customers and from 09:00 am to 02:00 pm for employees.
The EGX is running shorter trading hours. The trading session kicks off at 10:00 am, but closes at 1:30 pm. Tap or click here for the full schedule.
PSA- Is it a heat wave, or just “summer”: Our favourite weather app shows the mercury rising to 37°C in Cairo today, hovering between that mark and 42°C through a week from Friday.