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Tuesday, 12 April 2022

Earnings season will reveal who is most exposed to inflation

The coming earnings season — like so much these days — will be all about inflation, according to the Wall Street Journal, which writes that Q1 performance will depend heavily on the impact of price hikes on different sectors. Energy companies are likely to see their bottom lines skyrocket, while higher freight and logistics costs mean others won’t be so lucky. “This quarter we’re going to find out who can pass on costs and who can’t,” said one market strategist.


  • The UAE’s DeFi drive continues: Investcorp has launched the GCC’s first institutional blockchain fund in Abu Dhabi. The fund will be led by Investcorp’s Abu Dhabi office and will invest in early-stage companies specialized in blockchain infrastructure, platforms and exchanges, decentralized finance, and data analytics. UAE wealth fund Mubadala is InvestCorp’s largest shareholder. (Statement)
  • Elon Musk won’t be taking up his seat on Twitter’s board … but don’t expect him to keep his beak shut (or his thumbs idle). He’ll still have the right to weigh in on the company’s activities “without limitation,” both directly to board members and over social media, according to a regulatory filing (pdf)
  • Apple vs Spotify antitrust probe: The iPhone maker is set to face another antitrust charge in Europe in the coming weeks. The company is accused of distorting competition in the music streaming market in an investigation triggered by a complaint from Spotify. (Reuters)
Down EGX30 10,729 -1.6% (YTD: -10.2%)
Up USD (CBE) Buy 18.37 Sell 18.47
Up USD at CIB Buy 18.37 Sell 18.47
None Interest rates CBE 9.25% deposit 10.25% lending
Up Tadawul 13,483 +0.7% (YTD: +19.5%)
Up ADX 10,166 +0.7% (YTD: +19.8%)
Up DFM 3,588 +1.3% (YTD: +12.3%)
Down S&P 500 4,413 -1.7% (YTD: -7.4%)
Down FTSE 100 7,618 -0.7% (YTD: +3.2%)
Down Euro Stoxx 50 3,840 -0.5% (YTD: -10.7%)
Down Brent crude USD 98.48 -4.2%
Up Natural gas (Nymex) USD 6.64 +1.1%
Up Gold USD 1,957 +0.5%
Down BTC USD 39,335 -7.8% (as of midnight)


The EGX30 fell 1.6% at yesterday’s close on turnover of EGP 837 mn (13.3% below the 90-day average). Foreign investors were net sellers. The index is down 10.2% YTD.

In the green: Mopco (+2.1%), Cleopatra Hospital (+1.8%) and EFG Hermes (+1.1%).

In the red: Heliopolis Housing (-5.3%), CIRA (-4.8%) and Orascom Development Egypt (-4.7%).

Traders are feeling a bit jittery about what China’s covid lockdowns mean for global trade and it shows: Major Asian benchmarks are all in the red this morning (albeit a little less so than at this time yesterday) while futures again suggest that Paris’ CAC 40 will be the only major western benchmark to open in positive territory at the start of the trading day today in Europe and North America.

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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