Good morning, friends. We hope this Friday treats you well. Our week’s business news cycle has been bearish as the updates from Gaza have been steering the international conversation every day. Nevertheless, there has been some new economic news, debt updates, and plenty of investment news to keep us moving.

In case you hit the hay early last night - We went back in time — just an hour — while you were asleep. If you haven’t adjusted your clocks, now is the time (no pun intended).

In times of financial crunches it may seem counterintuitive to spend, even on our homes.However, our guide this week shares brands that offer furniture and home decor at a price tag that can suit every pocket and every style.

Enterprise Weekend comes out each Friday at 9:00am CLT. We’ll be back on Sunday at 6am with EnterpriseAM. Until then: Enjoy the weekend.

LAST WEEK IN 3 MINS-

The siege on Gaza by the Israeli forces continues to drive the conversation in the local and international news as it extends into its third week. On the local front, we have had some economic updates and debt agreements that we will be keeping an eye on as they unfold in the coming week.

THE ISRAELI WAR ON GAZA CONTINUES TO BE THE BIG STORY OF THE WEEK-

Arab leaders condemned Israel’s war against Gaza during this week’s international summit in Cairo and accused Western countries of selectively applying international law to the conflict. Egypt organized the gathering as part of a drive to get an agreement on a ceasefire and a solution to the Palestinian issue.

Tens of thousands of Egyptians took to the streets to condemn Israel’s war on Gaza. Demonstrations took place last Friday at 27 state-approved locations around the country as well as downtown Cairo and Al Azhar.

As of yesterday morning, more than7k Palestinians have been killed in Gaza over the past 17 days, 2,913 of whom were children. Almost 17k people have been injured, according to Palestinian health ministry.

… and nearly two-thirds of Gaza’s population is now homeless: About 1.4 mn Gazans havebeen displaced by Israel’s devastating bombing campaign, the UN said Sunday. That’s more than 60% of Gaza’s total population. Almost 600k of these people are sheltering in 150 UNRWA facilities.

Limited number of trucks carrying vital supplies of aid have begun crossing the border at Rafah on Saturday, the first to do so since the 7th of October.

Still, the US is not willing to consider a ceasefire: We don’t believe that this is the time for a ceasefire,” White House spokesperson John Kirby said this week. Western countries have also shown little interest.

But a “humanitarian pause” might be in the works: Although the US remains firmly opposed to a ceasefire, there are signs it could be pushing Israel for a brief break or slowdown in the brutal bombardment to let more aid into Gaza.

For the first time, Guterres accused Israel of breaking international law: UN Secretary-General Antonio Guterres accused Israel of committing “clear violations” of international law. Guterres also acknowledged the occupation as the root cause of the recent escalation.

ECONOMY-

S&P Global Ratings downgraded our sovereign credit rating to B-from B on the back of the FX shortage and rising uncertainties about debt sustainability. This followed by another downgrade from S&P to State-owned lenders National Bank of Egypt and Banque du Caire as well as the country’s largest private-sector bank CIB.

BANKING-

Less restrictions on credit card use abroad:The Central Bank of Egypt will allow credit card users access to their usual FX transaction limits without having to submit proof of travel prior to their trips…

…however: We still have to provide proof that the card was used outside of Egypt within 90 days of returning, or it would risk being banned from using or receiving credit cards in the future. Proving travel can be done either through arrival and departure stamps on passports or by sending proof of continued residency abroad if the trip exceeds those 90 days. Also, customers will still need to tell their banks’ customer service departments their travel plans before they go.

DEBT-

Egypt inked a debt swap agreement with China: The International Cooperation Ministry signed a memorandum of understanding on a debt swap with the China International Development Cooperation Agency (CIDCA) at the Belt and Road Forum last week. Egypt owed USD 8.2 bn to China as of the end of March — about 5% of our total external debt.

PRIVATIZATION-

A unit from the privately held Al Safy Group reportedly expressed interest in acquiring military-owned bottled water company Safi. The Al Safy Group — which has no connection to the military-owned firm — was among the 30 companies that previously expressed their interest in the stake sale.

ALSO- Agthia has reportedly withdrawn its own bid leaving newcomer Al Safy Group to compete with Mansour Group for the acquisition.

INVESTMENT-

#1- The Suez Canal Authority signed a USD 1.5 bn joint cooperation memorandum with Qatari dairy producer Baladna that will be geared towards developing the local dairy production and processing industry.

#2- We could be seeing a new Beni Suef dry port in the works: Samcrete Holding’s industrial arm, Industrial Development Group (IDG), is in the process of signing an MoU with Alexandria-based logistics company Star Shine Shipping & Logistics (SSSC) to develop and operate a new dry port in Kom Abu Radi in Beni Suef. The port could reportedly see USD 500 mn worth of investment.

#3- Xinxing Cathay International Group wants to invest USD 1.08 bn in two factories in the Suez Canal Economic Zone (SCZone). Xinxing initially proposed a USD 2 bn project in March, but the company now plans to build a plant half its original size.

#4-SBC could invest up to EGP 1 bn in industrial land development: Saudi engineering and construction contractor Saudi Bashayer Company (SBC) i s studying a project to develop industrial land in Egypt with an initial investment of up to EGP 1 bn.

TELECOMS-

5G licenses could soon be up for grabs: The National Telecommunications Regulatory Authority (NTRA) is planning to issue a tender for Egypt’s first licenses to provide 5G services as early as December.

WHAT’S HAPPENING NEXT WEEK-

The US Federal Reserve’s Open Market Committee meeting will take place on

31 October-1 November (Tuesday-Wednesday): The Fed is expected to keep its benchmark overnight interest rate unchanged at the conclusion of its policy meeting.

The Central Bank of Egypt’s Monetary Policy Committee meeting is on Thursday, 2 November with its own meeting to review interest rates. The rate review will follow shortly after inflation figures hit another all-time high of 38% in September and as a potential IMF review of our USD 3 bn loan program looms on the horizon.

Fitch is also expected to review Egypt’s sovereign credit rating on Friday, 3 November.Egypt has already seen two downgrades from S&P Global and Moody’s this month.

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

YOUR MOST CLICKED LINKS-

  • Reports on possible fresh funds coming in from the UAE and KSA were widely read. (Al Borsa)
  • Is an EU aid package on its way to us to offset a possible refugee crisis? The Financial Times speculates. (Financial Times)
  • The EGP 44-45 trading value to the USD in the parallel marketwas frequently clicked. (Al Borsa)
  • A post about Zamalek’s “Tower of Shame” that caught fire and covered most of the neighborhood in smoke received a lot of concerned clicks. (Blog post)
  • Planet Money’s The Indicator podcast was popular, but for the wrong reasons, as the program proposed an economic solution to persuade us to allow Palestinians into Sinai. (The Indicator: runtime: 9:00)

☀️ THE WEATHER THIS WEEKEND- Looks like today will be a hot one, with the mercury rising to a high 30°C and dropping to a cooler 22°C in the evening. Saturday will be cloudy with the temperature rising to 32°C and dropping to 19°C at night, according to our favorite weather app.

HAPPENING THIS WEEKEND-

Forever Is Now Exhibition is back again in its third edition at the Pyramids. The exhibition kicked off yesterday and will continue until 18 November. The working hours start from 9am until 4pm. You can book your ticket from here or upon arrival.

Music enthusiasts, this one’s for you:The annual Cairo International Jazz Festival is still rolling at AUC’s Tahrir campus and will continue until Friday, 3 November. For more information contact them on their page.

Pass by the second edition of the Cairo Vintage Souq at The Greek Campus tomorrow, where you will find a wealth of old treasures, from vintage appliances and tech, home decor, clothes, books, and accessories.

Looking for adventure? Why not get into the spooky spirit with some Night Hiking at Wadi Degla? The Egyptian Wild Animals Service (EWAS) is offering you the chance to discover the beauty of the valley under the stars tomorrow.

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