CBE will hold rates steady later today at its final policy meeting of the year due to uncertainty over foreign inflows and inflation
For our top talks today, it is expected that the CBE will hold rates steady later today at its final policy meeting of the year due to uncertainty over foreign inflows and inflation. The current account deficit widened by almost two thirds during FY 2020-2021 to 18.4 billion USD due to falling tourism revenues and rising imports. It is expecting it to narrow to 4.0% of GDP during the current FY from 4.8% in 2020-2021. (CBE)
- Having said so, we need to highlight the US Fed expected movements. An intense 24 hours of central bank news on tap started yesterday with the Federal Reserve and continuing tomorrow with the ECB and Bank of England and at a tricky time as inflation continues to go up and global growth concerns mount More to follow.
The Federal Reserve is expected to announce a more rapid transition away from its easy policies after its meeting Wednesday, as it sets the stage for the first interest rate hike next year. The Fed is also likely to provide a new description of how it views inflation, and acknowledge that it no longer views it as transitory. One wild card that market pros are watching closely is what the Fed says about its 8.7 trillion USD balance sheet and whether it tips when it might start to shrink it. (Reuters)
- It’s worthy to mention that according to Dr. Mohamed EL Arian’s post on LinkedIn, the US Federal Reserve is likely to do this week is: Double the rate of taper for its monthly asset purchases;
Stress this doesn’t translate automatically into immediate plans for rate hikes; Change the dots/forecasts including higher inflation and earlier/more rate hikes; and Package all this in Omicron uncertainty. Moreover, “I think getting out of the easing business is very much overdue,” said Rick Rieder, chief investment officer of global fixed income at BlackRock. Rieder said by ending the bond purchases sooner, the Fed is giving itself the option to raise interest rates. “I think they can hike rates in 2022. I don’t think there’s a rush,” Rieder said. He said the Fed could hike twice in 2022, and three to four times in 2023. (CNBC)
- In addition, the Egyptian Ministry of Water Resources and Irrigation has set a water resources management plan with total investments exceeding 50 billion USD until 2037,
the Minister of Water Resources and Irrigation, Mohamed Abdel Aty, announced on Wednesday. Abdel Aty said that the plan's investments could be increased to 100 billion USD to improve water quality, develop new water resources, and rationalize the use of available resources. The minister added that a national strategy 2050 was also developed to achieve sustainable management of water resources and meet the current and future water needs. (Mubasher)
- On the other hand, Nevine Gamea, Minister of Trade and Industry, revealed that the ministry is implementing a comprehensive strategy to deepen local manufacturing in the industrial sector and increase export rates.
The announcement took place on the sidelines of the third edition of Egypt Economic Summit (EES) that kicked off on Tuesday, December 14th. Gamea said that Egypt’s exports have increased by 24.5% in the previous ten months, and the local industrial sector accounts for 17% of GDP. (Arab Finance)
- Equally important, Egypt’s Minister of Petroleum and Mineral Resources, Tarek el Molla, and Matthews Rigas, Chairperson of EnerGen International, discussed the company’s plans to develop and increase natural gas production in its Mediterranean fields in Egypt during the coming period.
They reviewed the company’s plan of operating in the areas of Abu Qir, North Idku and North Amriya in the Mediterranean. The company aims to put the gas discoveries in North Idku and North Amriya on the production map by linking new wells with Abu Qir production facilities, adding about 150 million cubic feet per day of natural gas. (Arab Finance)
- And for our EGX & companies talks, Al Ahli Bank of Kuwait - Egypt (ABK-Egypt), one of the fastest-growing banks in Egypt, has entered into a strategic partnership with Mastercard to launch “ABK Pay Sticker” – a contactless payment solution.
The new payment system aims to enable the growth of Egypt’s digital economy, enhance financial inclusion and provide consumers with a seamless payment experience. The system is designed designed to make shopping simpler, faster and more secure for ABK-Egypt customers. Payments using the newly launched ABK Pay Sticker operate the same way as contactless payment cards - by simply tapping the sticker in front of the POS (point of sale) reader at the payment terminal to complete the transaction. (Arab Finance)
- Al-Tamimi & Co. has announced that it has assumed the role of legal advisor to TCI Sanmar Chemicals - a wholly owned Egyptian company of the Sanmar Group of Companies - in its representation of a dumping complaint against imports of PVC product from the US.
TCI Sanmar Chemicals has the largest production capacity of PVC in Egypt. The company highlights that the polyvinyl chloride (PVC) industry is the basis for many upstream and downstream industries, which will grow in Egypt due to the easy access and affordable cost of raw materials and markets. (Al-MAl)
- Furthermore, Misr Insurance concludes a protocol of cooperation with Valu to extend installment services on insurance policies.
The cooperation with Valu aims to extend installment services that allow customers to pay in installments over 6 months without interest, and would facilitate the purchase of insurance policies, which contributes to increasing the number of customers and helps the insurance company to reach more segments. (Al-Mal)
- EFG-Hermes announces the completion of the issuance of the third tranche of the brokerage arm's bonds, worth 550 million EGP.
This process represents the third issuance within the program of issuing short-term bonds with a total value of 2 billion EGP for a period of two years for the benefit of Hermes Securities Brokerage Company. The maturity of the third issuance of unsecured short-term bonds is 12 months with a fixed return to be paid at the end of the issue, and its proceeds are to be used to diversify the sources of funding for Hermes Securities Brokerage Company. It is worth noting that the Middle East Credit Rating Corporation (MERIS) has evaluated the issue’s credit rating “BBB+” with a stable outlook for long-term unsecured obligations at the local market level, and has also given it a credit rating of (Prime-2) for short-term obligations. (Al-Mal)
- Likewise, Alfa Ceramic is planning to pump around 600 million EGP investments to add three new production lines and increase exports to African countries.
The company aims to upgrade its current lines of production and ramp up production by 50% and wants to ramp up its exports by 30-50% to countries including Nigeria, Mauritania, Niger, South Africa, Tanzania and Kenya. The company also plans to modernize the current production lines of 10 lines, adding that the current capacity is 45,000 ceramic meters per day. (Al Borsa News)
- Also, Allord Manufacturing plans to inject 15 million USD investments in 2022 to add new production lines, according to the purchasing manager Gamal Hashem.
The company plans to ramp up production and increase exports to Gulf countries including Saudi Arabia, Kuwait, and Jordan, as well as Europe and the US. Hashem added that the company plans to increase its production by 70% and exports by 30%. (Al Borsa News)
- Al Arafa For Investment and Consultancies (AIVC) has incurred a consolidated net loss excluding minority interest of 10.64 million USD during the period ended October 31st, 2021, compared to a profit of 1.178 million USD in the year-ago period.
At the level of the standalone financial statement, the company achieved a standalone net profit of 269,567 USD in the period ended October 31st, 2021, compared to a profit of 977,675 USD in the same period last year. (EGX)
- Moreover, the board of directors of Ismailia National Food Industries (Foodico) (INFI) agreed to arrange for obtaining a loan worth 12 million EGP from one of the Egyptian banks.
The company aims at using the loan to finance its commercial operations over the coming period. Foodico is an Egypt-based public shareholding company engaged in the food industry. The company exports its products to UAE, Europe, US, Canada, and Australia. (EGX)
- And finally, the ordinary general meeting (OGM) of Palm Hills Development Company (PHDC) has approved to sign a netting contract with Telecom Egypt (ETEL).
Under the contract, Telecom Egypt will provide internal telecom networks as well as communication services to final customers at Palm Hills’ projects, including PK1. Last Monday, it has been announced that the two companies signed an agreement, under which Telecom Egypt will provide integrated telecommunication services to the city of Badya, located in the 6th of October city in West Cairo. (EGX)
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