Good afternoon, friends. There are some interesting moves on logistics and infrastructure investments happening here on the home front, while the UK is still capturing the imagination of the international business press as PM Liz Truss’ government flip-flops on some very controversial policies. Oh, and it’s Nobel Prize week.

THE BIG STORY TODAY

Kuwait’s Agility Logistics plans to set up and operate two customs and logistics services hubs worth a combined USD 60 mn, as per an agreement the Boursa Kuwait-listed company signed with the Suez Canal Economic Zone (SCZone) today, according to an SCZone statement. Work on the hubs is expected to begin by 2H 2023, the statement says. The agreement was signed on the sidelines of the Egyptian-Kuwaiti Economic Forum, where Trade and Industry Minister Ahmed Samir is meeting with a delegation of Kuwaiti investors, according to a cabinet statement. The Kuwaiti delegation includes 48 investors interested in investing in several sectors of the Egyptian economy including real estate and telecoms.

THE BIG STORIES ABROAD

There are a few big stories vying for attention in the international business press this afternoon, but the turmoil in UK financial markets continues to take the lead. The UK is u-turning on its decision to slash the top rate of income tax for individuals earning over GBP 150k per year, Chancellor Kwasi Kwarteng said earlier today. The rollback of the decision comes after the GBP has tanked over the past couple of days and caused deep volatility in the UK’s bond markets (which we break down in further detail in this afternoon’s Macro Picture, below). The story is getting plenty of coverage from the Associated Press, BBC, NBC, CBS, The Guardian, and Bloomberg, among others.

ALSO GETTING INK- Ukrainian forces have recaptured several villages in the country’s south, Reuters reports citing Russian state television. Russian sources acknowledged a Ukrainian tank offensive had advanced dozens of kilometers along the Dnipro River, securing one of the fastest advances and the most rapid breakthrough in the south.

HAPPENING NOW-

Pre-COP27 is underway: Foreign Minister Sameh Shoukry is in Congo attending COP27’s preparatory conference along with climate ministers from around the world for a last consultative meeting ahead of next month’s COP27 in Sharm El Sheikh, according to a ministry statement.

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

• Saudi Arabia’s sovereign wealth fund has acquired a 34% stake in consumer electronics and household appliances retailer BTECH from Africa-focused investment firm DPI for an undisclosed sum.
• Tragedy strikes on the first day of the academic year: One schoolgirl died and 15 others were injured after a staircase collapsed at a secondary school in Kerdasa.
• Thanaweya amma students may soon get a second chance at improving their grades: The Education Ministry is looking into ways to allow students to repeat the entire academic year if they’re not happy with their grades.

FOR TOMORROW-

PMI: We’ll know how Egypt’s private sector fared in September when S&P Global drops its latest PMI release tomorrow (Tuesday, 4 October). The downturn in activity looked to be easing in August when businesses told the survey that demand and output were rising on the back of slowing inflation.

???? CIRCLE YOUR CALENDAR-

The IMF will release its latest economic outlook on Wednesday, and the chances are it’s not going to be pretty as tightening financial conditions, an energy crisis in Europe and rising geopolitical tensions over Ukraine weigh on the global economy. The Fund and the World Bank will hold their annual meetings in Washington, DC, next week, from 10-16 October.

UPCOMING NEWS TRIGGERS- Here are some data points and news triggers to be on the lookout for in this month:

• Foreign reserves: The Central Bank of Egypt (CBE) should be out with September’s foreign reserves figures later this week. Reserves remained flat at around USD 33.1 bn in August, having fallen 20% since March due to headwinds caused by the war in Ukraine and tightening financial conditions.
• Inflation to notch new highs? Analysts are expecting inflation to have continued rising in September due to the weakening EGP after reaching highs not seen since November 2018 in August. We’ll find out when Capmas and the CBE release the figures next week.

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

☀️ TOMORROW’S WEATHER- Expect the mercury to rise to a high of 32°C tomorrow in the capital city before cooling off to a low of 21°C in the evening, our favorite weather app tells us.