Good afternoon, ladies and gentlemen. It’s another reasonably brisk news afternoon here in Omm El Donia, with a little bit of everything from subsidy policy to diplomacy to keep us busy.

THE BIG STORIES TODAY

#1- Renewed price cap for unsubsidized bread from bakeries that use GASC flour: The government reintroduced a price cap for unsubsidized bread for a month in a ministerial decree issued yesterday, for those bakeries that will take state grain buyer GASC up on its offer of flour amid reports that the private sector is struggling to get its wheat shipments through ports. The decision sets a higher price ceiling than the one first introduced in March. A 75-gram loaf of baladi bread will now sell at EGP 1. Prices for fino bread are now set between EGP 0.75 and EGP 1.00 for loaves weighing 40-60 grams, according to the decision. Egypt first set a price cap for unsubsidized bread in March for three months in a bid to hold down local prices amid surging global inflation on the back of the crisis in Ukraine. The decision will come into effect once it’s published in the Official Gazette.

#2- Washington blocks another USD 75 mn in military aid: We won’t be receiving another USD 75 mn of military aid from the US after Democratic Senator Patrick Leahy blocked the aid’s disbursal, citing human rights concerns, Reuters reports. Leahy, who heads the Senate Appropriations Committee, rejected an assessment by the State Department that the aid should be sent to Egypt in exchange for progress on releasing political detainees. Washington typically earmarks some USD 1.3 bn in annual military aid for Egypt. The State Department withheld USD 130 mn of military aid in September over human rights concerns.

THE BIG STORY ABROAD

UK hits CTRL-Z on tax plans to restore investor confidence + calm the markets: Newly-appointed UK Chancellor Jeremy Hunt is reversing the vast majority of his predecessor’s proposed tax cuts and cutting energy subsidies, as the country looks to stymie a meltdown in its markets and currency. The announcement led to a market rally and a jump in the GBP against the USD. The story is on the front pages of the Financial Times, Reuters, CNBC, and the Wall Street Journal.

HAPPENING NOW-

EGX boss Rami El Dokany is currently heading to the UAE to kick off a roadshow in Dubai and Abu Dhabi aimed at drumming up interest in EGX-listed companies, an EGX source told Enterprise. The bourse has tapped Al Ahly Pharos to help manage the roadshow, which is set to see El Dokany meet with as many as 100 regional and international financial institutions, the source said.

Supreme Council for Vehicle Manufacturing gets preliminary House nod: The House of Representatives’ general assembly gave preliminary approval to a draft bill that would establish the Supreme Council for Vehicle Manufacturing, which would act as a regulatory body setting policies for EV assembly in Egypt, Al Mal reports. The draft bill would, if passed, also set up a new EV finance fund in a bid to localize the industry.

House speaker invites CBE, AgriMin to discuss poultry feed crisis: House Speaker Hanafi Gebali invited representatives from the Central Bank of Egypt, Agriculture Ministry, and other relevant ministries to attend a House Agriculture Committee meeting tomorrow on the poultry feed shortage, according to Al Mal.

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

• Student lifeline Selah El Telmeez is going to have a new majority owner: EFG Hermes and the Sovereign Fund of Egypt’s education management firm Egypt Education Platform has inked an agreement to acquire an undisclosed majority stake in education platform Selah El Telmeez.
• Expats could send some EGP 50 bn (c. USD 2.5 bn) into Egypt under a cabinet program that will allow Egyptians living abroad to buy new cars in exchange for hard currency, Finance Minister Mohamed Maait said.
• The House yesterday approved in principle amendments to the Agriculture Act that would introduce harsher penalties for illegally building on agricultural land.

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???? CIRCLE YOUR CALENDAR-

The Suez Canal Economic Zone (SCZone) will launch a promotional campaign ahead of COP27 on potential investments in the zone next week, SCZone head Walid Gamal El Din said, according to a statement. The campaign will be launched domestically next Sunday, 23 October, before the international campaign kicks off on Monday, 24 October.

The Madbouly government’s economic conference takes place Sunday-Tuesday next week. We’re hoping for more details in the coming days.

Egypt and the UAE will host a two-day conference marking 50 years of bilateral ties. The gathering will take place next Wednesday-Friday, 26-28 October and is being produced in association with the two governments.

Fuel prices to rise this month? We’re expecting the government to hike fuel prices for the seventh consecutive quarter when the fuel pricing committee meets this month. Fuel prices have risen by as much as 28% over the past 18 months in response to heightened international oil prices, which surged earlier this year on the back of Russia’s invasion of Ukraine.

Part of our monorail will be launched during COP27, the cabinet said in a statement. Once completed, the project will span 22 stations over 56.5 km with 40 trains transporting people across Cairo. The Madbouly government plans to inaugurate the eastern segment of the monorail from the New Administrative Capital to Nasr City in time for COP27. The USD 4.5 bn project is designed, built, supplied and operated by a consortium of Alstom, Orascom Construction and Arab Contractors.

☀️ TOMORROW’S WEATHER- We’re in for another pleasantly sunny day here in the capital city. Our favorite weather app tells us to expect a daytime high of 29°C before the mercury drops to 19°C in the evening.

EDITOR’S NOTE: This story was amended  on 18 October, 2022, to reflect that price caps on unsubsidized bread are only applicable to private bakeries that purchase flour from state grain buyer GASC.