New capital requirements on Wall Street will rock the green finance boat: Basel 3 Endgame — the final stage of regulations imposed in the US after the 2008 financial crisis — is expected to significantly affect Wall Street’s biggest banks’ ability to finance green projects, Bloomberg wrote. The regulations will increase capital requirements, making it more expensive for banks to provide finance — “fundamentally alter[ing]” their approach to risk and affect their ability to allocate funds to green projects.

The US’ biggest banks aren’t happy: JP Morgan alleges that the new rules would “for sure” affect its green projects financing, while Goldman Sachs CEO David Solomon warned that the new regulations would push the capital requirements for some of its green energy products to “quadruple.” Citigroup Vice Chairman of Banking, Capital Markets and Advisory Jay Collins also chimed in on the topic in an interview cited by Bloomberg, claiming that “as long as there is so much policy noise and regulatory fog, the multifold increase in climate investment won’t happen.”

EGX30

24,792

+0.3% (YTD: +69.8%)

USD (CBE)

Buy 30.83

Sell 30.96

USD at CIB

Buy 30.85

Sell 30.95

Interest rates CBE

19.25% deposit

20.25% lending

Tadawul

11,601

+0.5% (YTD: +10.7%)

ADX

9,498

+0.2% (YTD: -7.0%)

DFM

4,001

+0.5% (YTD: +20.0%)

S&P 500

4,719

0.0% (YTD: +22.9%)

FTSE 100

7,576

-1.0% (YTD: +1.7%)

Euro Stoxx 50

4,549

+0.2% (YTD: +19.9%)

Brent crude

USD 76.92

+0.5%

Natural gas (Nymex)

USD 2.50

+0.3%

Gold

USD 2,036

0.0%

BTC

USD 40,956

-2.7% (YTD: +150.1%)

THE CLOSING BELL-

The EGX30 rose 0.3% at yesterday’s close on turnover of EGP 2.8 bn (11.9% below the 90-day average). Local investors were net buyers. The index is up 69.8% YTD.

In the green: ADIB (+7.8%), Juhayna (+5.9%) and Orascom Development (+4.2%).

In the red: Elsewedy Electric (-2.1%), E-Finance (-2.1%) and Sidpec (-1.9%).

Asian markets are in the red this morning in what CNBC says is traders “taking a breather” in the next-to-last trading week of 2023. Europe looks set to follow suit, while futures suggest Wall Street could build on last week’s rally by opening the week in the green.

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