SUPERCYCLE WATCH- Global prices of metals from copper to steel are likely to soar further as China cuts production to hit its ambitious carbon emissions targets, according to the Financial Times. China, which produces 56% of the world’s steel, plans to cut 236 mn tonnes of steel capacity in its 2021-2025 five-year plan to achieve carbon neutrality by 2060. China will have to balance its commitment to cut production with its goals to grow the economy, and prevent upward inflationary pressure. Meanwhile, steel prices in the US hit an all-time high this month due to higher housing demand.

There’s progress in US- China trade talks (even as Washington accuses Beijing of genocide): The US and China have agreed to push forward trade links during the first call between the countries’ commerce ministers under the Biden administration on Thursday, Bloomberg reports. The two sides “agreed to promote the healthy development of pragmatic cooperation in trade and investment”, while “[exchanging] views frankly and pragmatically on relevant issues and mutual concerns,” the Chinese government said.

Wall Street is continuing to warm to China: US investment management group BlackRock will become the first asset manager to tap the Chinese market — worth some USD 19 tn — after Chinese regulators approved on Friday its bid for a wholly-owned onshore mutual fund business, the Financial Times reports. The announcement comes weeks after BlackRock received a license to set up a wealth management venture with China Construction Bank, and reflects recent steps taken by the country to open up its financial markets.

Banks with significant exposure to crypto assets will face the toughest bank capital requirements, the Basel Committee on Banking Supervision said in a report on Thursday. The global regulatory body — part of the Bank of International Settlements — suggested crypto volatility should be mitigated with stricter capital requirements to reflect the higher risks. The committee is proposing a 1,250% risk weight be applied to a bank’s exposure to BTC and certain other cryptos, meaning that for every USD held in crypto, a USD should be held in capital. State Street and Citigroup are among the banks that have hinted at providing crypto services to clients. The story is all over the global business press: Financial Times | Bloomberg | Reuters.

The EGX30 fell 0.6% at Thursday’s close on turnover of EGP 1.33 bn (2.5% above the 90-day average). Foreign investors were net sellers. The index is down 8.0% YTD.

In the green: Pioneers Holding (+3.8%), MM Group (+3.5%) and Ibnsina Pharma (+3.3%).

In the red: CI Capital (-2.8%), Sidi Kerir Petrochem (-2.4%) and Emaar Misr (-1.8%).