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Monday, 8 October 2018

What we’re tracking on 8 October 2018

Good morning, friends, and welcome back from our somewhat impromptu long weekend. And to those Canucks celebrating, Happy Thanksgiving.

Your next regularly scheduled holiday is the Prophet Muhammad’s Birthday on or about 20 or 21 November — conveniently just in time for US Thanksgiving.

That means Egyptian businesses are on track to have closed in observance of a record 18 national holidays this year, according to our faithful correspondent Davide C’s latest accounting, completed on Thursday when it was made clear that yesterday would be off. That’s one day more than in 2017 — and about 2x what Davide tells us is the long-term average of 8.6 days per calendar year in Italy, our nearest Mediterranean sibling. (And all of that is before you count days on which your staff “bridged” a holiday.)

Keep the faith: The EGX30 closed down 1.5% on Thursday. With the trading week set to start in a couple of hours, the words of EFG Hermes strategist Mohamed Al Hajj ring in our ears: “While the market could continue to trade sideways in the short term, we cannot justify a change in our view on Egyptian equities given current valuations, earnings per share growth, and the medium-term outlook for local interest rates.”

The IMF and World Bank Annual Meetings kick off today in Bali, Indonesia, with the talk of the town being the economic outlook for 2019. Expect the durability of the “ongoing recovery” from the financial crisis and prospects for the “next crisis” to be high on the minds of attendants. You can check out the landing page for the meetings, which go on until Sunday, 14 October, here.

Finance Minister Mohamed Maait and Vice Minister of Finance Ahmed Kouchouk are in Bali for the meetings.

Egypt is using the meetings to test appetite in Asia for an upcoming USD 5 bn eurobond offering. A nondeal roadshow kicked off in Seoul yesterday and is set to continue throughout the coming weeks, taking officials across Asia and also to Europe. We have more in today’s Speed Round, below.

The IMF’s World Economic Outlook report is set to be released tomorrow. That’s when the fund gives its view on the growth outlook for the global economy, emerging markets, MENA and Egypt. As is customary, two chapters are already out (Chapter 2, Chapter 3).

Trump administration could boost US funding for IMF? In a sign that the internationalism may not have completely flatlined in Washington, the Financial Times reports that “the Trump administration has left the door open for a US funding boost to the IMF, calling for a ‘careful evaluation’ of the global lender’s finances to make sure it has enough money to rescue struggling economies.”

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; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.