THIS EVENING: Cement production quotas are sticking around + NUCA could make Egypt’s biggest-ever securitized bond sale. Plus: All eyes are on Taiwan amid Pelosi trip.
Happy hump day, wonderful people. It’s a bit of a news dump day here in Omm El Donia, while global eyes are fixed firmly on China and Taiwan as US House Speaker Nancy Pelosi is due to land in Taipei later today.
THE BIG STORIES TODAY
#1- Caps on cement production are staying in place for another year — though the industry is set to see some supply hikes: The Egyptian Competition Authority has agreed to cement companies’ calls to extend caps on production brought in last summer for another year, Ahmed Shereen Korayem, head of the cement division in the building materials chamber of the Federation of Egyptian Industries, told Enterprise.
#2- NUCA could make the local market’s biggest-ever securitized bond issuance: The Financial Regulatory Authority (FRA) is reviewing a request by the New Urban Communities Authority (NUCA) to issue EGP 20 bn in securitized bonds, the authority said in a statement (pdf). If approved, the issuance would be the largest in the history of the local market, and would bring total securitized bond issuances since the start of the year to EGP 30 bn, the FRA said.
THE BIG STORY ABROAD
The global business press in its entirety is fixated this afternoon on US House Speaker Nancy Pelosi’s trip to Taiwan. The Financial Times and Reuters are leading with China’s military activity near the Taiwan Strait, while the Wall Street Journal takes note of the market downturn ahead of Pelosi landing in Taipei this evening. The potential political, diplomatic, and military ramifications of the trip are the key points of interest for CNBC and Bloomberg.
** CATCH UP QUICK on the top stories from today’s EnterpriseAM:
- Maait shoots down talk of a USD 15 bn IMF loan: “That figure is completely inaccurate,” Finance Minister Mohamed Maait said when asked if Egypt is requesting a USD 15 bn loan from the international lender.
- Emirati real estate giant Aldar Properties still sees potential to invest another USD 1.5 bn in Egypt, Saudi Arabia and the UAE over the next 6-12 months despite a higher interest rate environment, CEO Talal Al Dhiyebi said.
- Homzmart just closed one of Egypt’s largest funding rounds this year: Furniture and home goods marketplace Homzmart has closed a USD 23 mn pre-series B round.
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FOR TOMORROW-
Our friends at Chimera should find out tomorrow how much of Beltone Financial they have acquired via a mandatory tender offer. Shareholders have until Wednesday, 3 August, to subscribe to Chimera Investment’s MTO for the financial services firm. The Abu Dhabi-based outfit has already locked in a 56% stake in Beltone after Orascom Financial last week agreed to sell its shares. Chimera is offering to pay EGP 1.485 per share for up to 90% of Beltone, valuing it at around EGP 690 mn.
PMI figures are out tomorrow: We’ll get an idea of how the private sector fared in July when S&P Global releases its latest purchasing managers’ index (PMI) tomorrow. The index fell to its lowest level in two years in June as surging inflation hit demand and output.
National Dialogue board will talk about the economy: The board of trustees overseeing preparations for the National Dialogue will meet tomorrow to discuss the economic agenda.
???? CIRCLE YOUR CALENDAR-
We’re on the lookout for a number of key macro figures this week and next:
- Foreign reserves figures for July will likely be released at the end of this week or the beginning of the next;
- Inflation data for July will land on Wednesday, 10 August.
The Central Bank of Egypt will meet to discuss interest rates on Thursday, 18 August.
☀️ TOMORROW’S WEATHER- The internet is going to be more or less the same tomorrow as it is today: Our favorite weather app tells us to expect a daytime high of 37°C and a nighttime low of 24°C.