The US Federal Reserve is expected to leave its benchmark interest rate unchanged at 5.25-5.5% during a two-day meeting that starts later today, the Financial Times reports.

Watch this space: Analysts think the Fed will signal on Wednesday (or in meeting minutes released later) that it is ready to start cutting rates by September. Recent data shows inflation is under control and the labor market is cooling off, with fewer job gains and rising layoffs.

The central bank of Japan and England will also meet this week, as we noted yesterday. Japan could go for a rate hike (its two-day meeting begins today), while the Bank of England looks set to make a cut when it meets on Thursday.

MEANWHILE- China targets bonuses + compensation for fund managers, bankers: China is intensifying its crackdown on financial sector compensation, extending its reach to mutual fund managers and bankers.

What’s happening? Managers at some state-owned funds have been ordered to return bonuses, as are Hong Kong-based executives at Citi and Everbright. Pundits see the clawbacks happening in the context of Xi Jinping emphasis that “new quality productive forces” (read: tech and manufacturing) should be prioritized as finance gets downplayed.

MARKETS THIS MORNING-

It’s red as far as the eye can see in Asia this morning. All five of the major equities benchmarks we follow are in the red, signaling a “meh” day for investors in Australia, Japan, South Korea, Hong Kong, and China. US and European stock futures are down in overnight trading.

EGX30

28,851

-0.6% (YTD: +15.9%)

USD (CBE)

Buy 48.26

Sell 48.40

USD (CIB)

Buy 48.27

Sell 48.37

Interest rates (CBE)

27.25% deposit

28.25% lending

Tadawul

12,121

-0.4% (YTD: +1.3%)

ADX

9,395

+0.8% (YTD: -1.9%)

DFM

4,308

+0.7% (YTD: +6.1%)

S&P 500

5,464

+0.1% (YTD: +14.5%)

FTSE 100

8,292

+0.1% (YTD: +7.2%)

Euro Stoxx 50

4,815

-1.0% (YTD: +6.5%)

Brent crude

USD 79.84

-1.8%

Natural gas (Nymex)

USD 1.91

-4.9%

Gold

USD 2,426

-0.1%

BTC

USD 67,444

-0.9% (YTD: +59.6%)

THE CLOSING BELL-

The EGX30 fell 0.6% at yesterday’s close on turnover of EGP 3.4 bn (11.4% below the 90-day average). Local investors were net buyers. The index is up 15.9% YTD.

In the green: Telecom Egypt (+2.1%), Abu Qir Fertilizers (+1.0%), and Sidpec (+1.0%).

In the red: E-finance (-2.7%), Talaat Moustafa Group (-2.6%), and Qalaa Holdings (-2.6%).

CORPORATE ACTIONS-

EBank’s capital increase gets the greenlight: The bank’s extraordinary general assembly earlier this month approved a decision to raise its issued and paid-up capital by EGP 2.5 bn to EGP 9.9 bn and double its authorized capital to EGP 20 bn, according to an EGX disclosure (pdf). The Financial Regulatory Authority approved the increase back in May.

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