Good morning, all. We’re kicking off one of the last weeks of the year with a brisk issue, giving us reason to believe that we’re inching closer to the end-of-year slowdown in local business news.

EGP WATCH-

The EGP fell to EGP 50.90 against the greenback at some banks on Thursday, down from 50.58 the day before. This new low comes after six weeks of steady declines in the value of the EGP, as authorities move toward allowing for more exchange rate flexibility.

Maturing short-term treasuries are driving the decline, says Goldman: Goldman Sachs economist for MENA Farouk Soussa told Bloomberg that the EGP’s drop is largely a result of a “huge spike” in the redemption of short-term T-bills, which comes as investors opt to maximize their year-end profits rather than roll over their positions.

Don’t get too discouraged by our slowly eroding purchasing power, though: Soussa is penciling in a rebound for the EGP in the new year, with the economist predicting that Central Bank of Egypt rate cuts in 1Q 2025 will lead to further treasury issuances — particularly of long-term T-bonds — that will offer investors a solid opportunity to re-enter the market, thus bolstering the EGP.

HAPPENING TODAY-

#1- The House is back in session after a two-week break: MPs have a busy day ahead as they discuss and vote on a number of draft laws and agreements, most prominently the draft cash-based subsidies bill to establish a Takaful and Karama fund to provide cash-based payments – MPs previously greenlit 22 of the 44 articles in the draft bill.

Also on the agenda: They will also continue discussions of the draft Criminal Procedures Law and vote on a number of agreements — a USD 500 mn financing program between GASC and the Abu Dhabi Exports Office to facilitate the provision of wheat and essential commodities, a financial cooperation agreement with Germany, and a protocol agreement with Russia for the Al Dabaa Nuclear Power Plant.

MPs will meet on Monday to discuss and vote on more draft bills and on Tuesday to hear Investment Minister Hassan El Khatib’s statement on the ministry’s efforts to attract investors.

#2- It’s day one of NEBU: Egypt’s annual International Exhibition for Gold and Jewelry NEBU kicks off today at the Egypt International Exhibition Center, bringing together over 150 companies and over 15k visitors. The three-day event is “designed to highlight creativity and innovation with a focus on business and investment on a regional and international scale while offering exhibitors, trade buyers, and visitors new trading opportunities.” You can find the link to register to attend on the event’s official website.

HAPPENING THIS WEEK-

Iranian President Masoud Pezeshkian is coming to Cairo this week to attend the D-8 Organization for Economic Cooperation meeting, high-level Iranian sources told MD East News. Pezeshkian is expected to individually meet with several leaders on the sidelines, including Turkish president Recep Tayyip Erdogan.

Remember: Egypt took over the rotating presidency of the D-8 cooperation and is heading the group until the end of 2025. During its time as president, Egypt aims to set up several networks, including those of economic research centers and diplomatic training centers that will benefit all D-8 member states — Bangladesh, Indonesia, Iran, Malaysia, Nigeria, Pakistan, Turkey, and Egypt.

DATA POINT-

Some 19.7k people have applied to regularize the status of their vehicles that were imported taking advantage of facilities targeting those with disabilities, Finance Minister Ahmed Kouchouk said, adding that the Madbouly government has so far colled EGP 2.4 bn in dues from those who legalized the status of their vehicles.

Remember: The Madbouly government has been working to close a loophole that some have used to import cars without paying the necessary fees. Earlier this year, the cabinet approved a draft decision to amend the executive regulations of the law that governs the rights of people with disabilities, changing up the vehicle import system for those with disabilities, and making it more difficult for people to abuse.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 20°C and a low of 13°C, according to our favorite weather app.

It’s just as cold in Alexandria, with a high of 20°C and a low of 13°C.

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THE BIG STORY ABROAD-

Syria dominates the conversation on the global front pages this morning as business leaders the world over gird for the last really busy week ahead of what most hope will be a year-end slowdown.

IN SYRIA- Russia is backing out, but not completely, according to a Reuters exclusive, citing four Syrian officials. While the Russian military has been seen dismantling equipment at one of its Syrian bases, it will remain present at its two main bases with “no intention” of pulling out of the country.

The US is ready to recognize key opposition group Hayat Tahrir Al Sham as Syria’s government if it creates an inclusive government that represents the people of Syria, Secretary of State Antony Blinken said yesterday following his latest trip to the region.

AND- South Korea’s parliament impeached President Yoon Suk Yeol yesterday. Yoon narrowly avoided impeachment earlier this month for briefly imposing martial law. Prime Minister Han Duck-soo will serve as acting president, promising to "stabilize the situation” and “bring back normalcy for the people.” (AP | The Guardian | BBC | Financial Times)

ALSO- ABC News will pay USD 15 mn to Donald Trump’s foundation and museum as part of a settlement in a defamation lawsuit after one of its anchors claimed the president-elect had been found “liable for rape.” (Bloomberg | AP | BBC | CNN)

IN THE BUSINESS PAGES- Joe Biden looks set to block Nippon Steel’s USD 15 bn acquisition of US Steel. Tech CEOs are “bending the knee” to President-elect Donald Trump, the WSJ and CNBC note.

And the AI arms race continues to heat up, with OpenAI still set to unveil new features as part of what it had originally (and oh-so-badly) dubbed 12 Day of Shipmas while Google has unveiled a new look, additional features, and a corporate subscription to its hot NotebookLM.

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