Eid Mubarak, ladies and gentlemen. And after the year we all just had, We wish you and your loved ones a restful and enjoyable break. We’ll be back in your inboxes at the appointed hour on Sunday, 17 July.

And the news wants to send us off with a warm goodbye, with very positive plot twists in major talking points at home and abroad…

THE BIG STORIES TODAY-

#1- Annual urban inflation slowed for the first time since November 2021, recording 13.2% y-o-y in June, down from 13.5% the previous month, according todata(pdf) released this morning from state statistics agency Capmas. The drop was attributed to a decline in food and beverage prices.

Has inflation peaked? Analysts, including from Beltone, CI Capital, and Arqaam had all expected inflation to peak in summer, but had predicted we won’t see a decline until August, with estimates ranging from c.15-18%. That said, the inflation remains well above the Central Bank of Egypt’s target of 7% (±2%).

#2- A last pre-Eid M&A announcement: EGX-listed Paint and Chemical Industries Company (Pachin) received a non-binding acquisition offer from Saybad Industrial Investment for 100% of the company, according to a disclosure to the EGX (pdf). Saybad’s offer prices Pachin’s shares between EGP 16 and EGP 16.5 apiece, valuing the company at EGP 396 mn. The Pachin share rose 3.53% at the end of trading today.

THE BIG STORY ABROAD-

Boris Johnson admits defeat and resigns: UK Prime Minister Boris Johnson has finally stepped down, ending a political crisis over his future that had paralyzed the British government over the past 48 hours. In a televised speech (watch, runtime 6:27) Johnson said that it is "clearly now the will" of the Conservative party for there to be a new leader. This comes after a string of scandals plagued his tenure in office, prompting an unprecedented mass resignation of at least 50 members of his government, including Health Secretary Sajid Javid and Treasury chief Rishi Sunak. A delegation of ministers gathered at 10 Downing Street this morning to tell Johnson he has to go. The embattled leader said he will continue to serve as prime minister until a replacement is chosen.

And the markets rejoiced: Investors welcomed Johnson’s resignation, with the FTSE 100 stock index trading around 1.2% higher immediately following his speech. 10-year UK government bond yields went up, and the GBP inched up 0.37% against the USD, CNBCreported.

The story is front page news everywhere, including: Reuters | Financial Times | Wall StreetJournal | Washington Post

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • PMI hits new low: Activity in Egypt’s non-oil private sector recorded its worst performance in two years in June, as client demand dropped on supply-side pressures, rising inflation and the devaluation of the EGP.
  • EIB and Banque Misr to increase support for SMEs + covid-hit sectors: The European Investment Bank (EIB) and Banque Misr have launched two new technical assistance programs to increase support for SMEs and sectors hit by covid-19, the lender said in a statement yesterday.
  • The Fed is sharpening its beak: US Federal Reserve officials are prepared to raise interest rates at an even faster rate to avoid the “significant risk” that soaring inflation becomes entrenched, minutes from last month’s policy meeting showed yesterday.

? CIRCLE YOUR CALENDAR-

Officials from Egypt, the UAE and Jordan will hold talks in Cairo later this month to discuss the new industrial partnership agreed in May, cabinet said Tuesday. Abu Dhabi sovereign wealth fund ADQ will invest USD 10 bn in industrial projects under the initiative, which will see the three countries collaborate to boost manufacturing and exports. Egypt and the UAE will also sign an agreement to establish a huge 10 GW wind plant following the Eid Al Adha holiday, according to the statement.

Public consultations on the state ownership policy document that outlines its privatization plans will resume on Sunday, 17 July, with air transport industry players taking center stage. Every Sunday and Tuesday sees workshops on how privatization plans will affect specific industries. You can find more details on the schedule of the meetings here.

National Dialogue meetings to resume 19 July: The board overseeing the National Dialogue will hold its second meeting on 19 July, during which it will discuss the agenda and form subcommittees. Board members met for the first time yesterday.

Need a refresher on the national dialogue? We’ve got you covered.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- Expect a daytime high of 39°C tomorrow and a nighttime low of 22°C in the capital city, according to our favorite weather app.

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