Good afternoon, wonderful people. Pat yourselves on the back for making it through this week, which is going out with a bang with a rather busy Thursday afternoon news flow.

THE BIG STORIES TODAY

#1- Annual urban inflation accelerated to 13.5% in May, as rising global commodity prices and the recent EGP devaluation pushed consumer prices upwards for the sixth consecutive month. Annual urban inflation accelerated from 13.1% in April, according to figures (pdf) released today by statistics agency Capmas. While this is the highest level since May 2019, it falls short of analyst forecasts of a 14.2% median inflation rate.

#2- We’re getting closer to our first ever future flow issuance: EGX-listed private sector education outfit CIRA will issue EGP 2 bn worth of future flow securitized bonds over three years, the company confirmed in a statement to the EGX (pdf) this morning. The first issuance will be worth EGP 800 mn, with the bonds sold at EGP 100 a pop, the statement notes. The EGP 2 bn program will cover CIRA’s debt needs for the coming three years, funding its expansion plans for new universities and K-12 schools, CIRA CEO Mohamed El Kalla tells Enterprise. “This first future flow issuance is a really important step, and a reflection of how education is being seen more and more as a key industry in the country,” adds El Kalla.

Want a refresher on how exactly future flow securitization works? We’ve got you covered.

#3- Savola closes acquisition of Ole bakery: Saudi food conglomerate Savola has signed the EGP 622.40 mn asset purchase agreement to acquire 100% of the Egyptian Belgian Company, which is best known for its Ole-branded baked goods, according to a statement (pdf). “The transaction included the acquisition of all tangible and intangible assets of the Egyptian Belgian Company,” the statement reads. Al Ahly Pharos was exclusive buy-side advisor to Savola on the acquisition.

THE BIG STORY ABROAD-

The European Central Bank (ECB) left interest rates on hold at its monetary policy meeting today, but plans to raise rates in July and September, the bank said in a statement today. The ECB expects to enact a 25 bps hike when it next meets on 21 July and expects to raise rates again in September. The exact increment “will depend on the updated medium-term inflation outlook,” the ECB said, noting that a persistent or deteriorating inflation outlook would mean “a larger increment will be appropriate.” Interest rates in the eurozone are currently at -0.5%.

The ECB is also winding down its asset purchase program as of 1 July and “intends to continue reinvesting, in full, the principal payments from maturing securities purchased under the APP for an extended period of time past the date when it starts raising the key ECB interest rates.”

Market reaction: The ECB’s plans to raise interest rates drove down European equities and spurred a sell-off in eurozone sovereign bonds, but analysts say that the markets had already expected monetary tightening to be the order of the day, according to the Financial Times.

The Fed is coming up next: The US Federal Reserve is “all but certain” to hike interest rates by another 50 bps when it meets next week, Bloomberg writes, continuing the tightening cycle that the central bank embarked on in May with a 50-bps hike (its biggest since 2000).

The Central Bank of Egypt holds its policy meeting on Thursday, 23 June.

The situation with Ukraine’s grain exports is also still getting plenty of attention this afternoon, as Kremlin spokesperson Dmitry Peskov told reporters that there is still no agreement between Russia, Ukraine, and Turkey on a way to resume wheat exports through Ukrainian ports, according to Reuters.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• Could household electricity bills rise from 1 July? Households could see their electricity bills rise by as much as 21% from 1 July, according to the government’s 2020 schedule (pdf) to phase out subsidies by 2025.
• No staple food exports for another three months as we look to raise local harvests: The Trade Ministry has extended by three months its March ban on exports of wheat, flour, corn, lentils, pasta, fava beans, and vegetable oils. Meanwhile,the agriculture ministry is looking at new incentives to boost wheat production.
• We’ve officially been passed the COP baton: Foreign Minister COP27 President-Designate Sameh Shoukry signed the COP27 Host Country Agreement with UN climate executive secretary Patricia Espinosa while attending meetings with members of the Group of 77 developing countries and China at a UN climate conference in Bonn.

???? CIRCLE YOUR CALENDAR-

A handful of conferences coming up this month:

• The EU-Egypt Sustainable Food Value Chain conference, which will take place at Grand Nile Tower Hotel next Thursday.
• The Aswan Forum for Sustainable Peace and Development,will take place in Cairo later this month on 21-22 June (Tuesday-Wednesday).
• The Big 5 Construct Egypt (pdf) construction industry exhibition runs from 25-27 June at the Egypt International Exhibition Center (EIEC) in Cairo.

☀️ TOMORROW’S WEATHER- That sweltering summer heat really isn’t going anywhere. Expect highs of 41°C and 43°C tomorrow and Saturday, with the evening only offering a slight reprieve with lows of 26°C and 27°C, our favorite weather app tells us.