Good morning, folks. It is a fairly quiet morning led by the launch of our carbon market — Africa’s first — and a lot of earnings.

DEBT WATCH-

CBE soaks up more liquidity: The Central Bank of Egypt (CBE) yesterday accepted 30 bids for EGP 938.8 bn in fixed-rate deposits at a rate of 27.75% during its weekly fixed-rate auction, according to data on its website.

SPEAKING OF CBE AUCTIONS- Yield on three-month t-bills hits five-month high: The Finance Ministry raised some EGP 50.3 bn worth of three-month t-bills earlier this week at an average yield of 28.3%, according to central bank data.

Remember: Last week, foreign investors sold some USD 600 mn — 7-8% of total foreign investment in the market, according to Prime Minister Moustafa Madbouly — worth of local debt instruments amid a global sell-off.

WATCH THIS SPACE-

#1- A bundle of tax incentives is in the works: The Finance Ministry is developing a comprehensive set of tax incentives to streamline services, enhance relations between investors and the Tax Authority, and modernize the tax system through new technologies, according to an Ittihadeya statement. The mechanisms were discussed during a meeting between President Abdel Fattah El Sisi, Prime Minister Moustafa Madbouly, and Finance Minister Ahmed Kouchouk held to follow up on budget targets.

#2- A new committee to oversee oil and gas production: The Oil Ministry has formed an advisory committee to manage oil reserves and boost production, the ministry said in a statement.

HAPPENING TODAY-

#1- A Thanaweya Amma overhaul? Prime Minister Moustafa Madbouly and Education Minister Mohamed Abdellatif will hold a presser later today to unveil a revamped Thanaweya Amma system, Al Masry Al Youm reports, citing unnamed sources from the ministry. The proposed changes include reducing the number of subjects and modifying evaluation and examination methods.

#2- Sudanese peace talks in Geneva today: US Special Envoy Tom Perriello confirmed that negotiations to end Sudan's 16-month civil war will proceed despite limited signs of commitment from either the Sudanese army or the Rapid Support Forces, Reuters writes. The Swiss-hosted talks, scheduled to start today and potentially extending to 24 August, will include observers from Egypt, the African Union, UAE, and the UN, with the location undisclosed for security reasons, Bloomberg reports.

PSA-

WEATHER- It’s still warm in Cairo today, with a high of 35°C and a low of 27°C, according to our favorite weather app.

It’s nearly the same in Alexandria, with a high of 33°C and a low of 25°C.

** DID YOU KNOW that we now cover Saudi Arabia and the UAE?

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CIRCLE YOUR CALENDAR-

IDH share buyback kicks off Sunday: Integrated Diagnostics Holding (IDH) shareholders can sell their shares under the company’s delisting buyback program next week, between 18 and 22 August, according to an EGX bulletin. The sales will be conducted via the special operations market (OPR). The company is paying EGP 20 per share after the initial price of EGP 18.62 was deemed too low.

Remember: IDH decided to delist its shares from the EGX due to “limited trading activity” and the “absence of any investment potential in maintaining the listing on the secondary market.”

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

THE BIG STORY ABROAD-

It’s a busy day in the international business press this morning, giving us a mix of business and political headlines.

FIRST UP- Starbucks has replaced its CEO, Laxman Narasimhan, a year and a half into his tenure after facing pressure to make changes in the business from activist investor Elliott Management and former CEO Howard Schultz. The coffee chain has tapped Brian Niccol — currently Chipotle’s chief executive — as its new CEO to execute a turnaround strategy after the business suffered falling sales this year and its shares have faltered. During his tenure at Chipotle since 2018, Niccol has helped lead the company’s revamped performance, driving sales up and leading its shares to rise more than threefold.

MARKET REAX- Starbucks’ shares closed up 24.5% yesterday, while Chipotle’s shares fell 7.5%. (Reuters | Financial Times | Wall Street Journal | Bloomberg)

Ukraine is pushing forward with a significant cross-border advance into Russia’s Kursk region, where it surprised Russia last week to land “its biggest battlefield gains since 2022.” Ukrainian soldiers have captured an unspecified number of Russian troops, which Kyiv says can be exchanged for Ukrainian prisoners. Russia has also reportedly withdrawn some of its forces from Ukraine, although it remains unclear how many or where they will be repositioned. (Washington Post | Reuters | Wall Street Journal | New York Times)

AND- Hamas may not participate in tomorrow’s ceasefire negotiations, brokered by Qatar and Egypt, with a senior official from the group saying that Israel’s approach to the talks is hampering progress. Benjamin Netanyahu has reportedly “quietly made new demands in recent weeks, additions his own negotiators fear have created extra obstacles to [an agreement],” according to the New York Times.

A lot is riding on this round of talks: Iran will be watching closely the ceasefire negotiations scheduled for tomorrow and only an agreement will stop it from retaliating against Israel, senior Iranian officials tell Reuters.

The US take: “Something could happen as soon as this week by Iran and its proxies … That is a US assessment as well as an Israel assessment,” White House spokesperson John Kirby said earlier this week.

Iran has its mind set, rejecting western calls not to retaliate against Israel for its assassination of Hamas’ Ismail Haniyeh in Tehran. “Such demands lack political logic, are entirely contrary to the principles and rules of international law, and represent an excessive request,” Iranian Foreign Ministry spokesperson said.

AND- Israeli officials storm Al Aqsa: Israel’s National Security Minister, accompanied by other cabinet members and supporters, stormed Al Aqsa Mosque yesterday, where they were heard reciting Jewish prayers.

Egypt condemns Israeli actions at Al Aqsa mosque: The Foreign Ministry condemned the Israeli officials’ actions and urged the international community to take action to end these transgressions.

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We take a look at three proposals to expand EV charging infrastructure, straight from the industry itself.

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