Good morning, all. We have another packed issue to close out one particularly hectic week. Over the past 24 hours we saw Madbouly give us a timeline for the anticipated package of wage and pension hikes, the CBE and AMIC announce December’s net foreign reserves and auto sales data, respectively, and Elsewedy Electric launch the region’s biggest telecom cables factory.

PSA-

WEATHER- It’s another cold day in Cairo, with a high of 17°C and a low of 11°C, according to our favorite weather app.

It’s just as cold in Alexandria, with a high of 17°C and a low of 12°C.

And over the weekend, expect to see a high of 18°C and a low of 10°C in the capital.

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WATCH THIS SPACE-

Aviation Minister talks investment with UK firms: Civil Aviation Minister Sameh Elhefny met with senior officials from British financial institutions, including HSBC UK, Standard Chartered, and UK Export Finance, to discuss cooperation and investments in Egypt’s aviation industry, according to a ministry statement. The talks focused on potential projects to enhance infrastructure, develop aircraft fleets, and expand airport capacity.

CAPITAL MARKETS-

The world’s largest sovereign wealth fund Norway’s Pension Fund Global held USD 100.3 mn worth of stocks in 11 EGX-listed companies as of 31 December 2024, according to our calculations based on the fund’s holdings of equities as of December 2024 report (pdf).

This marks a 26% drop in value from USD 134.7 mn on 31 December 2023 (pdf), likely due to the depreciation of the EGP. The fund’s biggest equity position in Egypt is in fintech outfit Fawry at 4.1%, followed by CIRA Education at 3.1%, and Taaleem Management Services at 3.0%.

HAPPENING TODAY-

Egypt International Boat Show, ahoy: Boat and yacht companies from across the globe are in Cairo for the first day of the Egypt International Boat Show at the Cairo International Convention Centre. With both boating enthusiasts and those in the industry in mind, the event, which wraps up on Sunday, will host discussions about the industry and showcase the latest luxury yachts. You can register to attend the event on its website.

DATA POINT-

Demand for gold bars and coins in Egypt fell 21% y-o-y in 2024, hitting 24 tons as savers increasingly looked away from the safe-haven asset, according to the World Gold Council’s gold demand trend report for last year. During the same period, Egyptian purchases of gold jewelry fell 2% y-o-y to 26.1 tons.

THE BIG STORY ABROAD-

For the second morning running, the foreign pages are all about Trump’s proposal for Gaza’s future, which was met with a strong stance from international leaders.

Calls of permanently displacing Gazans sparked a strong international outcry, with UN Secretary General Antonio Guterres calling for adherence to international law and avoiding “any form of ethnic cleansing.” Meanwhile, German Foreign Minister Annalena Baerbock warned the plan would “lead to new suffering and new hatred.”

Damage control: Trump’s aides scrambled to walk back the most controversial elements of his proposal, stating he did not commit to deploying US troops in Gaza and clarifying a resettlement would be temporary to pave the way for reconstruction efforts and that the US will not pay the bills. (Bloomberg | New York Times | FT)

AND IN THE BUSINESS PAGES- Beijing filed a World Trade Organization complaint against “protectionist” 10% tariffs on Chinese imports. Trump had said earlier he was in “no hurry” to speak with President Xi Jinping.

ALSO- It’s not looking good for Nissan + Honda: Negotiations over the USD 60 bn anticipated merger — that would have created the world’s third-biggest automaker — have reportedly hit a wall. One major sticking point was Honda wanting a bigger piece of the holding company, with Nissan becoming a subsidiary — a plan the latter rejected as it opted for a merger of equals. (Reuters | New York Times | WSJ)

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