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Thursday, 17 November 2022

Crypto lenders halt withdrawals as FTX collapse shakes industry + Anghami cuts 22% of staff

FTX collapse carnage continues: Crypto lender Genesis and the bn’aire Winklevoss’ Gemini Trading have both halted withdrawals, BlockFi will file for bankruptcy in the coming days, and Singapore’s state investor Temasek has written off its entire USD 275 mn investment in FTX. In addition to multiple regulatory probes, FTX’s ex-bn’aire founder Sam Bankman-Fried is facing legal action from investors. As are FTX’s celebrity promoters, NFL quarterback Tom Brady and tennis player Naomi Osaka. Probably the best inside look at what was going on inside FTX in the days before its collapse is provided to us by Reuters, which has interviewed company executives and pored over dozens of documents.

This is still the biggest story in the global financial press (and we expect it’ll continue to be over the coming days): Financial Times | Bloomberg | WSJ | Washington Post | CNBC.

Anghami is the latest tech startup to announce mass layoffs amid a slowdown in the sector: The Nasdaq-listed, Abu Dhabi-based music streaming platform has laid off 22% of staff and slashed cloud computing costs in a bid to achieve profitability, it said in its earnings release yesterday. “Given the impact of challenging macroeconomic conditions, we had to take some cost disciplinary measures to improve our bottom-line performance," CEO and co-founder Eddy Maroun said.

A secondary share sale could value Elon Musk’s SpaceX at USD 150 bn: The spacecraft and satellite communications giant is mulling a sale offering that could value the company as much as USD 150 bn — a 20% increase on its most recent valuation, Reuters reports, citing sources close to the matter. The sale would help employees and other shareholders cashout, the sources said — contradicting earlier news that SpaceX was mulling a sale of fresh shares to raise as much as USD 1 bn.

MORE FROM THE SHTF DIGEST-

  • Inflation in the UK isn’t letting up: Soaring energy and grocery bills pushed UK inflation to a 41-year high of 11.1% in October. (ONS)
  • ECB sees some dark clouds gathering for eurozone banks: The European Central Bank (ECB) is warning of increased risks to financial stability amid an impending recession, rising inflation, surging financing costs, and relatively low liquidity. (ECB)
  • Russia’s in recession: Russia’s economy shrunk by 4% y-o-y in 3Q, the second consecutive quarter of contraction, as Western sanctions bite. (Financial Times)

Up

EGX30

12,341

+1.7% (YTD: +3.3%)

Up

USD (CBE)

Buy 24.44

Sell 24.53

Up

USD at CIB

Buy 24.46

Sell 24.51

None

Interest rates CBE

13.25% deposit

14.25% lending

Up

Tadawul

11,151

+0.5% (YTD: -1.2%)

Down

ADX

10,458

-0.4% (YTD: +23.5%)

Down

DFM

3,344

-0.9% (YTD: +4.6%)

Down

S&P 500

3,959

-0.8% (YTD: -16.9%)

Down

FTSE 100

7,351.2

-0.3% (YTD: -0.5%)

Down

Euro Stoxx 50

3,882.8

-0.8% (YTD: -9.7%)

Down

Brent crude

USD 92.62

-1.3%

Up

Natural gas (Nymex)

USD 6.22

+3.1%

Up

Gold

USD 1,777.70

+0.1%

Down

BTC

USD 16,538

-2.0% (YTD: -64.1%)

THE CLOSING BELL-

The EGX30 rose 1.7% at yesterday’s close on turnover of EGP 2.1 bn (45.5% above the 90-day average). Local investors were net buyers. The index is up 3.3% YTD.

In the green: Fawry (+7.8%), Rameda Pharma (+6.3%) and Alexandria Mineral Oils Company (+6.2%).

In the red: Egypt Kuwait Holding-USD (-2.6%) and Cleopatra Hospitals Group (-1.7%).

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