Good afternoon, folks, and happy Monday. The news cycle at home and abroad continues to be primarily led by macroeconomics and monetary policy, while everyone here in Om El Donia is keeping their eyes peeled for signs that our IMF agreement is signed, sealed, and delivered.

THE BIG STORY TODAY

Egypt’s non-oil private sector contracted in January for the 38th consecutive month as inflationary pressures continued to weigh down the headline figure, according to S&P Global’s PMI report (pdf). Egypt’s index dropped slightly to 48.1 last month from 48.5 in December. Firms’ output and new orders fell due to increased prices dampening client demand, with price pressures and geopolitical conflict also weighing down growth. While firms’ purchasing activity decreased, its trend moved closer to stabilization, as firms indicated stock levels were kept stable, and lead times only increased slightly.

Inflation continues to be a thorn in Egypt’s side: Inflationary pressures picked up in January, respondents noted, with input and output costs increasing to their highest levels in 12 months, on the back of increased purchasing costs. Prices of wood, iron, and fuel surged due to currency weakness and ongoing import problems leading firms to shift the greater share of their costs onto customers resulting in a sharp price increase.

THE BIG STORY ABROAD

The international business press is focused on monetary policy this afternoon: The US Federal Reserve could have room to cut interest rates within the next few months, the Financial Times says, as inflation is expected to cool to 2.2% this year and decelerate further to 2% in 2025, according to OECD projections. Meanwhile, although the UK is expected to have the highest inflation rate in the G7 (2.8% in 2024), the Bank of England could move ahead with monetary loosening in 3Q 2024, the OECD said.

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

  • More predictions on our IMF package roll in: Goldman Sachs and Morgan Stanley both had things to say about our IMF package, hinting that we’re moving closer to an agreement.
  • The long list of taxes may get shorter? The government has formed a committee to look into reducing the long list of taxes, customs, and fees imposed on goods and services.
  • Drugmakers will meet next week with the Egyptian Drug Authority (EDA) to request hiking their prices. Drugmakers want to increase prices by 30-50% in response to ongoing FX and raw materials shortages and higher shipping costs.

🌤️ TOMORROW’S WEATHER- Look out for a partly cloudy day with a high of 21°C and a low of 12°C, according to our favorite weather app.

Tags: