Geopolitical tensions are endangering the global growth outlook, Saudi Finance Minister Mohamed Al Jadaan said on Sunday at the World Economic Forum’s meetup in Riyadh. “Today, to me, geopolitical risks are possibly the number one risk as you look at the global economy,” he said, adding that “policymakers will need to be very agile in dealing with this,” as the threat of fragmentation and protectionism looms. “You need to make sure that you actually de-escalate,” he said, adding that the “region needs stability.”

The proof? Economies are growing at a rate that is “weak-by-historic standards,” IMF Managing Director Kristalina Georgieva said. She described a slowdown in global economic activities and “a significant divergence across the world” as two “very serious problems” that global decision makers ought to address. Georgieva said that while some countries are moving forward, others are “falling behind,” without providing further details. The IMF chief said states should implement reforms that are “mindful of the people,” as they become “transmission lines of prosperity,” when paired with health trade and financial flows.

On the other hand, artificial intelligence could potentially set the tone right for global growth: Saudi Economy and Planning Minister Faisal Alibrahim said that adopting AI technologies could see tns of USD poured into the global economy within the next decade as it ushers in new industries.

ALSO ON PLANET FINANCE- The rise of the reverse carry trade: The Federal Reserve’s tight grip on US interest rates has sent widely traded emerging market currencies into losses in 2024 — benchmark borrowing costs in several frontier and emerging markets currently sit below US policy rates. As a result, there has been a rise in the so-called reverse carry trade, with investors borrowing in EM currencies and buying USD, producing returns of as much as 9% this year, writes Bloomberg.

MARKETS THIS MORNING-

Asian shares are up this morning, led by the Nikkei as trading in Japan resumed after yesterday’s holiday. Major Asian benchmarks were following Wall Street up — the Dow and S&P 500 closed up slightly yesterday, while the Nasdaq was basically flat. US and European equities futures were little changed overnight.

EGX30

26,011

+5.6% (YTD: +4.5%)

USD (CBE)

Buy 47.85

Sell 47.99

USD (CIB)

Buy 47.85

Sell 47.95

Interest rates CBE

27.25% deposit

28.25% lending

Tadawul

12,369

+1.1% (YTD: +3.4%)

ADX

9.063

+0.2% (YTD: +-5.4%)

DFM

4,161

+0.3% (YTD: +2.5%)

S&P 500

5,116

+0.3% (YTD: +7.3%)

FTSE 100

8,147

+0.1% (YTD: +5.4%)

Euro Stoxx 50

4,981

-0.5% (YTD: +10.2%)

Brent crude

USD 88.52

-1.1%

Natural gas (Nymex)

USD 2.03

+5.6%

Gold

USD 2,357.70

+0.5%

BTC

USD 62,945.20

-1.1% (YTD: +48.8%)

THE CLOSING BELL-

The EGX30 jumped 5.6% at yesterday’s close on turnover of EGP 2.8 bn (43.6% below the 90-day average). Local investors were net sellers. The index is up 4.5% YTD.

In the green: TMG Holding (+13.7%), Orascom Construction (+12.8%) and GB Corp (+10.9%).

CORPORATE ACTIONS-

Talaat Moustafa Group Holding will buy back up to 10 mn treasury shares via the open market after its board greenlit the move, according to an EGX disclosure (pdf).

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