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Wednesday, 12 January 2022

Running start for global corporate debt + former NMC Health chair forced to pay USD 131 mn compensation claim + OECD inflation hits 25-yr high

The global corporate debt market is off to a running start this year, with companies raising over USD 100 bn in the first week of January as they rushed to lock in low borrowing costs before interest rates climb, the Financial Times reports. The bumper start comes as a close second to last year’s blockbuster USD 118 bn, which was a 19-year record. Analysts expect the barrage of issuances to continue in the early stages of this year, even as volatility caused by tightening monetary conditions begins to present a challenge to issuers.

The embattled former chairman of NMC Health was ordered by a London court to pay USD 131 mn to Barclays in compensation over a 2020 transaction agreement that was never fulfilled, the Times of London reports. The ruling relates to unpaid debts at B.R. Shetty’s foreign exchange business, Finablr, not NMC Health, which was forced into administration after a fraud scandal.

Inflation in advanced economies rose to a 25-year high of 5.8% in November, up from 1.2% in November 2020, according to data released by the fi-kasino-online.net. Inflation was largely driven by energy prices — which rose 28% y-o-y, up three percentage points from October — and food prices, which rose 5.5% y-o-y in November. Most major central banks in the nearly-40 OECD countries are still resisting interest rate hikes as they insist that inflation is transitory, the Financial Times notes.

Down

EGX30

12,002

-0.2% (YTD: +0.4%)

None

USD (CBE)

Buy 15.66

Sell 15.76

None

USD at CIB

Buy 15.66

Sell 15.76

None

Interest rates CBE

8.25% deposit

9.25% lending

Up

Tadawul

11,844

+1.5% (YTD: +5.0%)

Down

ADX

8,333

-0.3% (YTD: -1.8%)

Down

DFM

3,208

-0.7% (YTD: +0.4%)

Up

S&P 500

4,713

+0.9% (YTD: -1.1%)

Up

FTSE 100

7,491

+0.6% (YTD: +1.5%)

Up

Brent crude

USD 83.65

+3.4%

Up

Natural gas (Nymex)

USD 4.25

+4.2%

Up

Gold

USD 1,818

+1.1%

Up

BTC

USD 42,714

+2.3% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 0.2% at yesterday’s close on turnover of EGP 986 mn (19.3% below the 90-day average). Foreign investors were net sellers. The index is up 0.4% YTD.

In the green: MM Group (+3.1%), TMG Holding (+1.1%) and Abu Qir Fertilizers (+1.1%).

In the red: Speed Medical (-3.1%), GB Auto (-2.8%) and Mopco (-2.4%).

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.

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