Back to the complete issue
Sunday, 11 July 2021

US joins China in reining in Big Tech excesses

US tech companies to face stiff new competition rules under Biden exec order: President Joe Biden signed on Friday a sweeping executive order aimed at limiting the anti-competitive practices of giant technology companies. Among the order’s goals are preventing so-called “killer acquisitions” designed to shut down competition, creating new regulations to lessen internet surveillance and data harvesting, and rules to protect small businesses.

The tech industry isn’t thrilled: “Elements of this executive order threaten our global leadership and hard-won success,” said Gary Shapiro, CEO of the Consumer Technology Association that includes Apple, Facebook and Google.

Chinese firms face new tests before listing abroad: China’s government will conduct regulatory screening of firms with more than 1 mn users before they are allowed to IPO abroad, in a new blow to the Chinese tech industry, the Financial Times reports. The announcement, which may stymie some of the biggest listings in the global financial markets, comes days after China launched a security probe into ride-hailing giant Didi for alleged data security breaches, following the company's USD 4.4 bn IPO on the Nasdaq — the biggest Chinese IPO in the US since 2014. The probe triggered a sell-off of Didi’s shares which lost almost one-fifth of its market value.

Chinese fitness app Keep has already called off plans to file for an IPO in the US on the sweeping announcement and as Didi’s fallout spreads, the Financial Times reports. Alibaba-backed medical data group LinkDoc Technology has also suspended its Nasdaq IPO plans after it was due to price its shares on Thursday, three unnamed sources told Reuters. Chinese podcast platform Ximalaya has also scrapped plans to list on the US stock market, with one industry expert telling the FT that the pipeline of listings could soon grind to a halt.

Down

EGX30

10,185

-0.9% (YTD: -6.1%)

None

USD (CBE)

Buy 15.64

Sell 15.74

None

USD at CIB

Buy 15.64

Sell 15.74

None

Interest rates CBE

8.25% deposit

9.25% lending

Down

Tadawul

10,825

-1.2% (YTD: +24.6%)

Down

ADX

6,963

-0.1% (YTD: +38.0%)

Down

DFM

2,779

-0.1% (YTD: +11.6%)

Up

S&P 500

4,369

+1.1% (YTD: +16.3%)

Up

FTSE 100

7,121

+1.3% (YTD: +10.2%)

Up

Brent crude

USD 75.55

+1.9%

Down

Natural gas (Nymex)

USD 3.67

-0.4%

Up

Gold

USD 1,810.60

+0.6%

Down

BTC

USD 33,509

-1.35% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 0.9% on Thursday on turnover of EGP 1.23 bn (0% above the 90-day average). Regional investors were net sellers. The index is down 6.1% YTD.

In the green: Palm Hills Development (+3.1%), Sidi Kerir Petrochemicals (+1.4%) and CIB (+0.3%).

In the red: Fawry (-4.6%), Pioneers Holding (-2.6%) and Cleopatra Hospital (-2.5%).

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. © 2021 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of Commercial International Bank (tax ID: 204-891-949), the largest private-sector bank 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; and Act Financial (tax ID: 493-924-612), the leading activist investor in Egypt; and Abu Auf (tax ID: 584-628-846), the leading health foodmaker in Egypt and the region.