Good morning, friends. We have another packed issue for you this morning as the news cycle shows no sign of slowing down. In today’s issue we have everything you need to know about Investment Minister Hassan El Khatib’s second day in Kuwait, fresh M&A news, and the latest on the capital gains tax.

PSA-

WEATHER- Cairo is in for another cool day, with a high of 21°C and a low of 12°C, according to our favorite weather app.

It’s just as cool in Alexandria, with a high of 20°C and a low of 12°C.

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WATCH THIS SPACE-

#1- Has the Trump administration sounded the death knell for USAID? All signs from the US’ Oval Office seem to indicate that the embattled US Agency for International Development (USAID) is rapidly approaching a reckoning, with US President Donald Trump describing USAID to reporters Sunday as “run by radical lunatics” and the head of the Department of Government Efficiency Elon Musk referring to it as a “criminal organization" and a “radical-left political psy op” in separate posts on X. Meanwhile, the agency’s website has gone down, with some of its top officials put on leave as doubt swirls about USAID — and its funding’s — future, the Financial Times reports.

One possible endgame could involve the US State Department absorbing USAID — a scenario that would likely cause hefty budget cuts that would slash funding for global assistance programs. “I would be absolutely for, if that’s the path we go down, removing USAID as a separate department, and having it fall under…other parts of the United States…because of its failure,” Republican Chair of the US House of Representatives’ foreign affairs committee Brian Mast told CBS’s Face the Nation (watch, runtime: 4:08).

What does this mean for Egypt? Although Trump’s 90-day halt on foreign aid exempted Egypt and Israel to allow them to continue to receive military aid, other programs that the US funds in Egypt — including USAID scholarships for Egyptians at home and abroad — were completely cut off by the order. A total of 1.1k Egyptian students on USAID-funded scholarships have been left without funding to continue their education, with some even facing housing insecurity. Universities and the Higher Education Ministry have stepped in by covering the tuition of 877 students, though students who had been about to enroll were not included in the support package.

#2- More vessels start passing through the Red Sea: The Liberian crude oil tanker Chrysalis passed through the Suez Canal yesterday for the first time since being targeted in a Houthi attack last July, according to a statement from the Suez Canal Authority. “The return of the tanker to transit through the Suez Canal is a strong message of reassurance regarding the positive developments towards the return of stability to the Red Sea region,” SCA head Osama Rabie said.

Remember, traffic is picking up through the canal, albeit very slowly, with reports out last week that six US- and UK-linked ships passed through the Red Sea safely since 19 January, after Yemen’s Houthis announced they would only target Israeli-linked vessels following the ceasefire agreement between Israel and Hamas. However, six ships is just a drop in the bucket when compared to traffic the canal was used to, with shipping giants such as Maersk, MSC, and Mitsui OSK still avoiding the Red Sea, citing security risks.

FROM THE DEBT MARKETS-

The central bank sold USD 1.06 bn worth of one-year USD-denominated T-bills yesterday, at an average yield of 4.25%, according to data on its website. The issuance coincides with a similar amount of T-bills set to mature next week, with a yield of 5.1%.

HAPPENING TODAY-

Foreign Minister Badr Abdelatty is in Turkey today to discuss bilateral relations with his Turkish counterpart Hakan Fidan, the Foreign Ministry said in a statement yesterday. The talks will cover cooperation across multiple areas as well as regional developments.

Abdelatty isn’t the only Arab official landing in Turkey today: Syria's new Interim President Ahmed Al Sharaa will be in Ankara today, where he will discuss the latest developments in Syria with Turkish President Recep Tayyip Erdogan, the head of comms at the Turkish presidency said on X.

Abdelatty has a busy week ahead: The minister is set to travel to India later this week — in what will be his first visit to the country since his appointment last year — to partake in the first Indian-Egyptian strategic dialogue, India’s Hindustan Times reports, citing people it says are familiar with the matter. The discussions will focus on regional developments and strengthening diplomatic ties.

AND- It’s the final days of the Cairo International Book Fair: Today and tomorrow are your last chance to bag a bargain at the book fair, which comes to a close on Wednesday after its two-week run at the Egypt International Exhibition and Convention Center in New Cairo. This year’s fair is hosting 1.2k publishers showcasing their latest publications and thousands of exhibitors for the event, with mns expected in attendance — last year’s visitor count reached near the 5 mn mark.

THE BIG STORY ABROAD-

Trump’s flurry of executive orders is still the primary focus of international news headlines this morning, from delaying tariffs to creating a new US sovereign fund, to latest updates on the campaign targeting US foreign aid.

Crisis averted (for now): North American leaders managed to reach last-minute agreements with Trump, postponing tariffs on Canada and Mexico for 30 days, pending negotiations. Canadian Prime Minister Justin Trudeau said his country will deploy technology and manpower to curb the flow of immigration and fentanyl across the border, while Mexico’s Sheinbaum is deploying 10k National Guard troops to “stop drug trafficking from Mexico.” Meanwhile, the US committed to curbing the flow of high-powered weaponry to Mexico.

China is still in the fray, however, as 10% tariffs are still set to take effect within a few hours. Trump is to speak with China’s Xi Jinping this week to reach an agreement, otherwise “tariffs are going to go substantially higher,” Trump said yesterday. (NYTimes | FT | Reuters | The Guardian)

Trump also signed an executive order yesterday to establish a sovereign wealth fund, with US Treasury Secretary Scott Bessent saying we could see the US fund created within a year. The proposed fund could strike partnerships with “very wealthy people” and help finance the purchase of TikTok from China’s ByteDance, with an eventual target to rival investments deployed by big players like Saudi Arabia. (Bloomberg | BBC | Associated Press)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: Enterprise’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We dive into Egypt’s blue economy, its potential, and what’s stopping it from flourishing.

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