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Sunday, 20 February 2022

Planet Finance: JPMorgan sees 9 consecutive Fed rate hikes + UAE to issue crypto licenses

JPMorgan expects the Fed to hike rates nine times: The US Federal Reserve will likely make nine consecutive quarter-point rate hikes starting March in a bid to curb soaring inflation, JPMorgan is predicting in a report seen by Bloomberg. US inflation hit a forty-year high in January, leading the investment bank to fear a “feedback loop” is taking hold between high growth, high prices, and private sector behavior that will require more radical action from the Fed to correct. The bank joins others upping their forecasts for Fed tightening this year, with Goldman Sachs now penciling in seven quarter-point increases, up from its last prediction for five rate hikes.

UAE crypto licensing in sight? The UAE is set to finish legislation that would allow it to issue federal licenses for virtual asset service providers (VASPs) by the end of the first quarter, as it looks to lure the world’s biggest crypto companies to the country, Bloomberg reports, citing an unnamed government official. Binance — the world’s largest crypto exchange by volume — has been considering setting up its global HQ in the country, as regulators race with counterparts in global finance hubs including SIngapore and Hong Kong to open up to the sector.

ALSO-

  • Amazon has reached an agreement with Visa to allow payments from its credit cards worldwide, ending the months-long dispute over high transaction fees which prompted the e-commerce giant in November to announce it would stop accepting Visa’s cards in the UK. (FT)
  • The UK will scrap investor visas as the government cracks down on Russian money laundering in response to the crisis in Ukraine. (FT)

Down

EGX30

11,535

-0.3% (YTD: -3.5%)

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

Down

Tadawul

12,477

-0.2% (YTD: +10.6%)

Down

ADX

9,155

-0.6% (YTD: +7.9%)

Down

DFM

3,327

-0.1% (YTD: +4.1%)

Down

S&P 500

4,349

-0.7% (YTD: -8.8%)

Down

FTSE 100

7,514

-0.3% (YTD: +1.8%)

Up

Brent crude

USD 93.54

+0.6%

Down

Natural gas (Nymex)

USD 4.43

-1.2%

Down

Gold

USD 1,900

-0.1%

Down

BTC

USD 39,940

-0.1% (as of midnight)

THE CLOSING BELL-

The EGX30 fell 0.3% at Thursday’s close on turnover of EGP 587 mn (43.2% below the 90-day average). Local investors were net buyers. The index is down 3.5% YTD.

In the green: Ibnsina Pharma (+2.3%), e-Finance (+2.0%) and Orascom Development Egypt (+1.7%).

In the red: MM Group (-1.6%), Heliopolis Housing (-1.5%) and TMG Holding (-1.4%).

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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