The Fed will likely go for another aggressive hike this week — but what if consumer spending proves too resilient? Economists are penciling in another jumbo 75-bps hike from the US central bank when it meets on Tuesday and Wednesday as it looks to tamp down on record high inflation. But pandemic-era stimulus measures have given businesses and households an unusually fat savings buffer, meaning higher rates may not deter them from spending as they head into tighter times, the Wall Street Journal reports. The Fed may have to raise rates higher and for longer in order to have the desired impact. “For now, the consumer is too strong for comfort,” the managing director of one market intelligence firm told the WSJ.

CLOSER TO HOME- IPO Watch: Our friends at EFG Hermes were appointed as bookrunner for Riyadh Cables Group Company’s IPO on the Saudi stock exchange. The company wants to raise around USD 400 mn by selling a 22% stake to investors. (Intent to float, pdf)

ALSO WORTH NOTING-

• Saudi Arabia is helping to bail out Credit Suisse: The Saudi National Bank is set to become Credit Suisse’s single biggest shareholder as it steps in to help rescue the teetering Swiss bank which is trying to raise CHF 4 bn as part of a restructure. (Financial Times | Bloomberg)
• Oil + gas windfall profits aren’t sitting well with Western politicians:
  Leading global oil and gas firms have spent USD 20 bn more on dividends and share buybacks than on capital spending, triggering criticism from politicians over the volume of windfall profits being passed on to investors. (Bloomberg)
• Qatar wants to explore for gas in Lebanese waters: Qatar Energy has its eyes on a 30% stake on an offshore gas exploration block in Lebanon, with Doha currently in talks with energy giants TotalEnergies and Eni over the stake. (Bloomberg)

THE CLOSING BELL-

The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 1.3 bn (9.2% above the 90-day average). Foreign investors were net buyers. The index is down 7.1% YTD.

In the green: Alexandria Containers and Cargo Handling (+7.7%), Egypt Kuwait Holding-EGP (+4.4%) and Juhayna (+4.1%).

In the red: Qalaa Holdings (-3.3%), Ezz Steel (-2.5%) and Housing and Development Bank (-2.3%).

Asian markets are mixed this morning, with Chinese shares in the red and most other bourses in the region in the green. The Nikkei (+1.6%), the Kospi (+1.0%) and the ASX (+0.6%) are all seeing gains this morning. European shares are expected to see early gains later this morning while Wall Street will open lower.