Good morning, wonderful people, and happy hump day to you all. Global markets are feeling a bit choppy this morning, so we suggest you fasten your seatbelts as 3Q races to a close.

EGP WATCH- The EGP fell close to record lows against the greenback yesterday, continuing a slide that has seen the currency lose more than 24% of its value against the USD since March. The currency dipped another two piasters against the USD yesterday, reaching 19.5584. This is marginally higher than the record low of 19.5605 set in December 2016 in the wake of the EGP float.

This is a story of a rampaging greenback rather than a tanking EGP: The Central Bank of Egypt has allowed the currency to fall gradually against the USD in recent weeks, weakening almost 2% since Hassan Abdalla was made governor in mid-August. Over the same period, the EGP has performed better against other major currencies, gaining 3.5% against the EUR and 4.8% against the JPY, suggesting that this is more a story of a strengthening USD than a weaker EGP.

In fact, since the March 2022 devaluation, the EGP has been on something of a tear against major global currencies, which are dipping against the greenback. The EGP is:

• Up 17% against the GBP;
• Up 8% against the EUR;
• Up more than 13% against the JPY.

We’re not alone in this: Much of the world is coming under increasing pressure as tightening financial conditions in the US push the greenback ever higher. The USD Index (DXY) hit heights not seen since May 2002 yesterday as the currency continued a surge that has seen it gain around 5% in the past week alone. Its relentless rise is now putting increasing pressure on other major currencies, with analysts now warning of a potential currency crisis in Asia triggered by the JPY and CNY; the GBP plunging to record lows yesterday; and the EUR falling further below parity to new 20-year lows.

^^ We have more on the global selloff of everything that isn’t a greenback in this morning’s Planet Finance, below.

WHAT’S HAPPENING TODAY-

WATCH THIS SPACE #1- The Madbouly government’s economic conference doesn’t seem like it is taking place today. Senior government officials have said the gathering would take place as soon as this week, but have yet to publicly announce a date.

WATCH THIS SPACE #2- We’re also on the lookout for news that the state has formed a new council of economic advisors. Word on the street is that the council will see bold-name members of the business community provide meaningful advice to the Madbouly government as it and the central bank look to guide us through our current challenges.

MEANWHILE- Our friends at HSBC are hosting an energy transition webinar series today through Thursday (27-29 September). The series will look at the “latest climate analysis in relation to the global energy market and transition to net zero” in six different sessions covering energy security, what is required to ensure the success of COP27, financing and investment needs for the energy transition, and the scaling up of renewables in the region, among other topics. You can register for the series here.

A Spanish business delegation will be in town today and Wednesday (27-28 September) for the Egypt-Spain Multilateral Partnership Forum, organized by the Spanish Institute for Export and Investment, according to a press release (pdf). The two-day conference will include seminars and panel discussions on trade and investment in transport, energy, and water with Egyptian ministers and representatives from government bodies, alongside officials from international financing institutions and Spanish Secretary of State for Trade Xiana Méndez Bértolo. The agenda for the conference is available here (pdf).

Islamic fintech will take center stage at the Arab League HQ in Cairo today, as the Arab Administrative Development Organization, the Egyptian Islamic Finance Association, and Abu Dhabi Islamic Bank hold a conference on fintech’s role in developing the Islamic banking industry, according to a statement.

It’s the final day of the Africa Women Innovation and Entrepreneurship Forum at the Cairo Marriott Hotel.

PSA- Get into (almost) all museums for free today: The Tourism Ministry is celebrating World Tourism Day today by waiving entry fees to almost all museums. The National Museum of Egyptian Civilization and cultural museums aren’t participating.

SIGN OF THE TIMES #1- The UAE is bidding farewell to covid measures: The UAE is relaxing mandatory mask requirements in most public spaces and will now only require people to wear them in medical facilities, mosques and public transport, state news agency WAM said yesterday. This comes following 2.5 years of mandatory mask requirements in almost all indoor public spaces.

Canada is also ditching the last of its covid measures for travelers, including vaccination mandates and the requirement to mask on planes and trains. There will be no more pre- or on-arrival testing and travelers will no longer have to use the ArriveCAN app, CBC and the Globe and Mail report.

SIGN OF THE TIMES #2- Apple has begun manufacturing the iPhone14 in India, accelerating its timeline to gradually move production out of China as the company looks to eliminate geopolitical risks — including US sanctions and covid-19 lockdowns — from its production process, the company said in an emailed statement yesterday. The move is a shift from Apple’s typical production cycle, which sees its production partners including Foxconn begin to produce the device in India several months after production begins in China. Bloomberg and CNBC have the story.

THE BIG STORIES ABROAD-

It’s a mixed picture in the global front pages this morning: The international business press are still digesting the madness in the markets yesterday (more on this in this morning’s Planet Finance, below), the New York Times is leading with the Biden administration’s plan to forgive student loans, while the Associated Press has the latest on Hurricane Ian. The Financial Times, meanwhile, notes that growth in China is about to fall behind the rest of Asia for the first time since 1990.

SOMEWHERE, BRUCE WILLIS IS SMILING- Nasa has slammed a small spacecraft into an asteroid for the first time in what Canada’s CBC is calling “an unprecedented dress rehearsal for the day a killer rock menaces Earth.” The test aimed to push the asteroid off course to see whether we could one day do the same if a space rock were about to do to us what one did to the dinosaurs. A mission control official later told reporters that “as far as we can tell, our first planetary defense test was a success. I think Earthlings should sleep better.” The story is getting ink everywhere from the Associated Press to CNN, the BBC and the New York Times.

A LOT CLOSER TO HOME- The government of Kuwait is shaking up the bureaucracy ahead of Thursday’s parliamentary elections, which some pundits — including Bloomberg — are suggesting could be the country’s “most democratic ever.”

MARKET WATCH-

OECD slashes global growth outlook for 2023: The global economy is in for an “extended period of subdued growth” as the fallout from the war in Ukraine threatens to tip the world’s major economies into recession, the Organisation for Economic Cooperation and Development (OECD) said yesterday. In its latest economic outlook, the organization cut its 2023 global growth outlook to 2.2% from its 2.8% forecast in June and warned that the global economy would suffer USD 2.8 tn in losses on the back of the war.

The outlook for Europe is particularly gloomy, with economic growth in the eurozone expected to slow to 0.3% in 2023, down from its earlier projection of 1.6% growth (indicating a strong possibility of the continent falling into recession) for at least part of the year.

Germany might be the first domino to fall: A gauge of business sentiment in Germany out yesterday suggested that the economy is heading into recession. The Munich-based Ifo Institute’s latest business climate index (pdf) saw business sentiment plunge in September ahead of the looming energy crunch this winter. The OECD also sees Germany’s economy contracting 0.7% next year, down from a June estimate for 1.7% growth.

MEANWHILE- Droughts in the US, Europe, and South America leading to smaller-than-expected harvests are tightening grain supplies worldwide, Reuters reports, citing data from the International Grains Council. The resumption of shipments from Ukraine through a UN-brokered agreement with Russia is providing some measure of relief, but the country’s corn harvest is expected to yield 56-68% less than 2021 levels. Several countries, particularly in Europe and South America, suffered serious heatwaves and droughts earlier this summer.

CIRCLE YOUR CALENDAR-

The Arab Pensions and Social Ins. Conference kicks off tomorrow in Sharm El Sheikh, bringing together pension and investment leaders to exchange expertise and experiences on reforming and developing pension systems in the Arab region, according to a cabinet statement. Finance Minister Mohamed Maait will be attending the two-day gathering.

The UN World Food Program and the International Cooperation Ministry are hosting a two-day conference on food security at the St. Regis Cairo Hotel on Wednesday and Thursday, according to a press release (pdf). The conference will mainly focus on the digitization of the agricultural sector, financial inclusion and social protection.

Women entrepreneurs: Are you looking for funding? The Facility Investing for Employment is looking to write co-financing tickets in the EUR 1-10 mn range for new projects at businesses that “contribute to sustainable job creation.” Its focus is on women entrepreneurs and women-led businesses, according to a press release (pdf). Entrants can apply starting 14 November.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We take a look at how industrial players and resort towns are turning to solar energy amid a challenging economic climate.