THIS EVENING: Abu Dhabi Ports, Qatar’s Mwani are in talks over our ports, El Wazir confirms + The Bank of Japan just took a hawkish turn
Good afternoon, wonderful people. It’s a busy hump day here in Omm El Donia and elsewhere as we push through the middle of the workweek.
THE BIG STORY TODAY
El Wazir confirms Abu Dhabi Ports + Qatar’s Mwani have their eyes on Egypt: The government is currently in early-stage negotiations with Abu Dhabi Ports and the Qatar Ports Management Company (Mwani) to manage and operate ports in Egypt, especially in Ain Sokhna and Safaga, Transport Minister Kamel El Wazir told CNBC Arabia, confirming earlier reports that the Qatar Investment Authority was looking at port development and management.
THE BIG STORY ABROAD
The Bank of Japan unexpectedly changed its policy on bond yield control, allowing long-term bond yields to rise or fall by up to 0.5%, instead of 0.25% previously. The surprise shift in the Japanese central bank’s monetary policy stance led to a JPY rally and a jump in bond yields. The story is leading the conversation in the international business press this afternoon: Financial Times | Wall Street Journal | Reuters | CNBC.
HAPPENING NOW-
President Abdel Fattah El Sisi is in Amman for a Middle East summit to resolve regional issues, including the instability in Iraq, according to an Ittihadiya statement. The Baghdad II conference brings together regional and international players including representatives from Iran, Turkey, Saudi Arabia, France and the EU, AFP reports. The meeting is the second edition of the regional conference held in August 2021 in the Iraqi capital, initiated by French President Emmanuel Macron.
** CATCH UP QUICK on the top stories from today’s EnterpriseAM:
- At least two major banks have tightened foreign-currency purchase and withdrawal limits amid a continued shortage of FX in the financial system. CIB and HSBC have lowered monthly limits on withdrawals and purchases made using their debit and credit cards abroad.
- Chimera to acquire 45% of GB Lease: GB Capital has agreed to sell a 45% stake in GB Lease to our friends at Abu Dhabi-based investment firm Chimera Investments for EGP 855 mn.
- Another roadblock in the Capricorn-NewMed tie-up: One of Capricorn Energy biggest shareholders, Palliser Capital, is calling for a general meeting to vote on removing seven of the company’s directors — including CEO Simon Thompson and CFO James Smith.
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???? CIRCLE YOUR CALENDAR-
It’s the Central Bank of Egypt’s final policy meeting of the year on Thursday, and analysts we surveyed last week expect policymakers to close out 2022 with another king-size 200-bps rate hike to support the currency and tackle rising inflation. Seven of the nine analysts and economists are forecasting the central bank to raise rates, five of which see a 200-bps hike. This would take the policy rate to 15.25%, its highest level since early 2019.
☀️ TOMORROW’S WEATHER- Expect a sunny day tomorrow with temperatures peaking at 20°C during the day tomorrow before falling to a chilly 13°C at night, our favorite weather app tells us.