Good morning, all. We have a packed issue for you this morning, so let’s jump right in.

HAPPENING TODAY-

#1- Investors can subscribe to CMPE’s capital increase: Investors have between today and Thursday to subscribe to Impact investor Catalyst Partners’ SPAC, Catalyst Partners Middle East’ (CMPE) capital increase. The SPAC wants to raise its capital to EGP 235 mn by offering 22.5 mn shares — valued at EGP 10 per share. CPME is already gearing up for its first acquisition — we have the details in the news well below.

#2- It’s day one of the Debt Management Forum for Africa: The African Development Bank’s two-day Africa Debt Management Forum kicks off today in Abuja, Nigeria. The forum brings together Africa finance ministers, central bank governors, debt managers, and experts to discuss debt sustainability and economic productivity.

PSA-

WEATHER- It’s another chilly day in Cairo, with a high of 21°C and a low of 11°C, according to our favorite weather app.

It’s just as cold in Alexandria, with a high of 21°C and a low of 12°C.

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

** Were you forwarded this email? Tap or click here to get your own copy delivered every weekday before 7am Cairo time — without charge.

ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we looked at what the feeder industries need to strengthen local manufacturing. Check out the story here.

SOCIAL SECURITY-

More support for irregular workers: The Labor Ministry has doubled the bonuses disbursed to registered irregular workers to EGP 1k, starting with the bonus to be paid out for Coptic Christmas next month, according to a statement. These bonuses are paid out six times a year on religious holidays as well as Labor Day. This increase in bonuses will cost the state some EGP 1.5 bn annually.

IN THE HOUSE-

MPs approved a EUR 1 bn macro-financial assistance package from the EU, which marks the first phase of a EUR 5 bn set of concessional loans running through 2027 as part of a wider EUR 7.4 bn package from the EU announced in March. The funds will go towards alleviating external financing constraints, easing the government’s balance of payments and budget needs, and boosting FX reserves against the backdrop of regional geopolitical tensions. The package got the thumbs up from the cabinet in August.

ALSO APPROVED- House greenlit USD 500 mn financing program between GASC and the Abu Dhabi Exports Office to facilitate wheat supplies for the authority. The financing will be granted in the form of a revolving USD 100 mn program that will be renewed for five year’s time. “The agreement aims to shore up Egypt’s strategic wheat reserves,” Finance Minister Ahmed Kouchouk told MPs.

THE BIG STORY ABROAD-

It’s a mixed bag in the global press this morning, with major geopolitical shifts in the Middle East, a downbeat warning on the USD, and a once-in-a-century storm all getting ink.

Israel announced plans to expand its population in the Golan Heights, citing the strategic importance of the area. Israeli Prime Minister Benjamin Netanyahu reaffirmed Israel’s commitment to increase its presence in the occupied Golan Heights despite international backlash — “strengthening the Golan is strengthening the State of Israel, and it is especially important at this time. We will continue to hold onto it,” he said in a statement. (Reuters | BBC | Financial Times | Washington Post)

MEANWHILE - Cyclone Chido hits Mayotte: The most powerful storm to hit the French Indian Ocean area of Mayotte in over a century, Cyclone Chido hit the French archipelago last night leaving hundreds dead before heading to Mozambique. In Mayotte local officials fear the death toll could reach thousands as emergency crews struggle with destroyed infrastructure and disrupted communications. (Reuters | BBC | CNN | The Guardian | New York Times)

AND- German Chancellor Olaf Scholz is hoping to lose a confidence vote today in the Bundestag in a bid to trigger snap elections on 23 February.

IN BUSINESS NEWS- Trump policies will likely change how investors feel about the USD, Bloomberg writes, explaining that the greenback will likely face pressures next year on the back of president-elect Donald Trump’s policies and upcoming rate cuts. Major banks like Morgan Stanley and JPMorgan Chase see the USD peaking mid-2025 before falling.

PLUS- It’s interest rate week in the United States, with the Federal Reserve set to hold its final meeting of the year on Tuesday and Wednesday. The Bank of England and the Bank of Japan will follow suit on Thursday.

Expect the Fed to sound a note of caution. The expectation since Donald Trump cruised to victory last month is now for fewer rate cuts over a longer period of time. A quarter-point cut this week seems fairly likely (though less so than before US voters returned The Donald to office), but the swaps market is pricing in just 0.75 bps worth of cuts by next September, suggesting we could see as few as two 0.25 bps cuts next year. The FT has more on what to expect from the three meetings.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We dive into the government’s plan for national universities.

Tags: