M&A activity fell c.30% y-o-y to USD 3.5 tn in 2022 on the back of high interest rates, inflation, and geopolitical volatility, according to data compiled by Bloomberg. This year’s transactions were broadly aimed at expanding already existing businesses, entering new sectors, or restructuring operations against falling equity markets and antitrust enforcement. The beginning of 2022 started off strong, with Microsoft announcing its planned acquisition of video game publisher Activision Blizzard Inc. for USD 69 bn in January, but activity and sentiment took a massive hit with the breakout of the Russia-Ukraine war and have yet to recover.

Speaking of M&A:

• Saudi-based Hassana Investment Company is acquiring a 10.2% stake in three DP World assets in a USD 2.4 bn transaction. Hassana — which is the investment manager for Saudi’s General Organization for Social Ins. — is acquiring stakes in DP World’s Jebel Ali Port, Jebel Ali Freezone, and National Industries Park. The transaction “implies a total enterprise value of about USD 23 bn for the three assets.” (Statement | Bloomberg)
• Adnoc to acquire Mubadala’s stake in Austrian oil + gas group: Abu Dhabi National Oil Company (Adnoc) is acquiring Abu Dhabi wealth fund Mubadala’s entire 24.9% stake in Austrian oil and gas group OMV. Mubadala’s stake is worth around USD 4.1 bn, according to Refinitiv data. (Statement | Reuters)

Equities are going to get worse before they get (a little bit) better: Top Wall Street strategists have joined fund managers in predicting a rocky start for stocks in 2023, before they experience a muted rebound in the second half of the year, according to a Bloomberg survey. The average response sees the S&P 500 ending next year about 7% higher than current levels, while the most optimistic forecast pencils in a 24% increase and the most bearish view sees it falling 11%. Morgan Stanley is penciling in a 21% drop in the S&P 500 in 1Q 2023, as pressures like the European energy crisis and global monetary tightening wave persist, before recovering by the end of the year.

Also worth noting:

• Crypto contagion continues: Nasdaq-listed BTC miner Core Scientific has filed for Chapter 11 bankruptcy, saying in a filing (pdf) the move was “necessitated by a decline in the company’s operating performance and liquidity” as BTC prices have nosedived. The news comes as the crypto market comes under significant pressure following the collapse of FTX.
• Amazon dodges multi-bn USD fine, settles EU antitrust probes: Amazon has reached a settlement with the EU in three antitrust investigations, helping it avoid a fine of 10% of its global turnover. (Reuters)

	EGX30	14,542	+0.1% (YTD: +21.7%)
	USD (CBE)	Buy 24.68	Sell 24.77
	USD at CIB	Buy 24.68	Sell 24.75
	Interest rates CBE	13.25% deposit	14.25% lending
	Tadawul	10,277	0.0% (YTD: -8.9%)
	ADX	10,340	0.0% (YTD: +21.8%)
	DFM	3,340	-0.3% (YTD: +4.5%)
	S&P 500	3,878	+1.5% (YTD: -18.6%)
	FTSE 100	7,497	+1.7% (YTD: +1.5%)
	Euro Stoxx 50	3,872	+1.8% (YTD: -9.9%)
	Brent crude	USD 82.27	+2.9%
	Natural gas (Nymex)	USD 5.49	+3.0%
	Gold	USD 1,824.30	-0.1%
	BTC	USD 16,789	-0.5% (YTD: -63.7%)

THE CLOSING BELL-

The EGX30 rose 0.1% at yesterday’s close on turnover of EGP 1.74 bn (13.1% above the 90-day average). Foreign investors were net sellers. The index is up 21.7% YTD.

In the green: Juhayna (+7.8%), CIB (+2.0%) and Mopco (+1.9%).

In the red: Ibnsina Pharma (-3.3%), Ezz Steel (-3.1%) and Oriental Weavers (-3.1%).

Asian markets are solidly in the green this morning, fuelled by a strong rebound on Wall Street yesterday where markets rose on the back of promising consumer data and healthier-than-expected earnings. The US and European futures market is also green across the board this morning, indicating that the rally will continue for a third day.