Good morning, friends. Unlike many of us who are already falling behind on our New Year’s resolutions to get to the gym or eat a little healthier, it seems the government is getting off to a quick start on its resolution to ramp up privatization efforts. We’ve got important privatization updates, good news for exporters, and more from the private and public sectors for you to catch up on this morning.

PSA-

WEATHER- Be careful on your drive into work in Cairo today, with heavy fog forecast, along with a high of 22°C and a low of 12°C, according to our favorite weather app.

Fog is also forecast for Alexandria, along with a chance of heavy rain, a high of 22°C and a low of 12°C.

And over the weekend, expect to see daily highs in the capital and Alexandria dip a couple of degrees, before warming back up again starting Sunday.

** 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.

HAPPENING TODAY-

#1- Inflation to fall for a second consecutive month? Analysts, policymakers and the business community are eagerly awaiting inflation figures for December set to be released later today by state statistics agency Capmas.

Many will be hoping for a second consecutive month of easing inflationary pressures, following annual urban inflation dropping a full percentage point in November that beat analyst predictions of only a 0.1 percentage point drop. The most recent inflation data puts the headline figure at 25.5%, marking the lowest inflation reading since December 2022.

Analysts and economists seem to be in agreement that we may be in line for some good news, with a Reuters poll of 13 analysts forecasting inflation to dip 1.3 percentage points to 24.2% in its median forecast. HC Securities’ Heba Monir pointed to “relatively lower to stable vegetable and fruit prices due to seasonality” as a reason behind her forecast that inflation for the month will dip to 24.1% y-o-y.

#2- European Parliament President Roberta Metsola will meet with President Abdel Fattah El Sisi later today, with the discussion set to discuss the joint strategic and comprehensive partnership between the two countries, macro financial assistance, human rights, Israel’s war on Gaza, and Syria, according to a statement (pdf) from the bloc. During her two-day visit that wraps today, Metsola will also meet with Foreign Minister Badr Abdelatty after having spoken House speaker Hanafy Gebaly and Senate speaker Abdel Wahab Abdel Razeq the day before.

FROM THE RUMOR MILL-

Nassef Sawiris mulls leaving the UK amid tax hikes: Nassef Sawiris — currently the richest Egyptian, with an estimated fortune of some USD 8.8 bn — is considering leaving the UK due to the prospect of rising taxes on the wealthy, Bloomberg reports. Anonymous sources speaking to Bloomberg say that Sawiris, who has been residing in the UK for over a decade and has a sizable portfolio in the country, is considering moving to the US or EU — though plans remain in the early stages and could still change, they added.

THE BIG STORY ABROAD-

The foreign press has its attention squarely split between the raging wildfires in Los Angeles and minutes from the US Federal Reserve’s latest meeting — plus a global bond sell-off triggered by threats of tax cuts and tariffs from US president-elect Donald Trump.

#1- More than 100k people in Los Angeles have evacuated as wildfires swept across the area, killing at least five people. The fires were spurred further on by blowing winds that impacted firefighting operations and damaged some electric infrastructure, leaving mns of houses without power. (Reuters | Guardian | FT | WSJ)

#2- The Federal Reserve is looking more likely to slow down — or completely pause — interest rate cuts, with the minutes from its latest meeting showing growing concern over rising inflation in light of Trump’s plan for tariffs and tax cuts. (FT | Reuters | CNBC)

#3- Also a result of Trumponomics: Selloffs in the global bond market are pushing yields to new highs, with the 10-year US Treasury yield reaching close to the 5% peak hit in October 2023, Bloomberg reports. Emerging markets are also seeing the busiest start of year for bond sales on record, with some USD 26 bn in bond issuances in the first week of the year, as issuers look to lock in funds before Trump takes office and implements potentially damaging trade policies, Bloomberg reports separately.

#4- Also getting attention: The Lebanese parliament looks set to elect army chief Joseph Aoun as president when it meets today in the latest bid to end an over two-year presidential vacuum. Hezbollah’s preferred candidate, Suleiman Frangieh, pulled out of the race on Wednesday and endorsed Aoun. (AP | Reuters | NYT)

Tags: