Good afternoon, all. While the international pages remain hyperfixated on the fallout from the Trump tariffs, the big story at home is more optimistic — French President Emmanuel Macron is on day two of his official visit to Egypt, giving us reason to believe that we could be seeing big-ticket French investments coming our way.

THE BIG STORY TODAY-

Egypt and France raised their relations to a strategic partnership, according to an Ittihadiya statement. This follows a meeting between President Abdel Fattah El Sisi and French President Emmanuel Macron, during which they also oversaw the inking of a number of MoUs, the statement read without providing further details.

Before their meeting, the leaders attended the Egypt-France Business Forum, which should be winding down as we hit send. The forum brought together a number of officials and private players from both countries — including GAFI’s Hossam Heiba, SCZone’s Walid Gamal El Din, and Business France’s Didier Boulogne. The forum saw the two sides discuss cooperation in green hydrogen, renewables, healthcare, and AI.

And to wrap up the day: The two leaders, alongside Jordan’s King Abdullah, will hold a Gaza-focused summit.

AND- The EGP keeps on slipping against the greenback: The EGP continued to weaken against the USD today, slipping to fresh lows of 51.58-51.72 as foreign investors continue to exit the local debt market, though at a slower pace than yesterday. Banking sources EnterpriseAM spoke to believe there is no reason to worry and that the current level of outflows is normal and hot money will start flowing into Egypt once again after this wave of uncertainty comes to an end.

THE BIG STORY ABROAD-

All eyes remain fixed on Trump’s tariffs as they continue to rattle global markets: Markets across the Asia-Pacific opened today with sharp declines, extending losses triggered by the Trump administration’s new tariffs on nearly all US trading partners. Japan’s Nikkei 225 fell almost 8%, reaching its lowest level since October 2023, and Australia’s ASX200 dropped over 6%. Hong Kong’s Hang Seng saw a 13% decline, registering its biggest one-day drop since 1997, while China’s CSI 300 lost 7%, stabilizing only after reports that a Chinese sovereign fund stepped in.

Europe also also saw steep sell-offs: Germany’s DAX plunged 10% before paring losses, while the Stoxx 600 fell more than 5%, with Bloomberg estimating that the tariffs could put around 1% of Europe’s gross domestic product at risk.

The turmoil is boosting bets that the Fed will step up its rate cuts this year: Traders see the US Federal Reserve introducing an extra quarter-point rate cut this year and cutting interest rates as soon as next month as the risk of recession rises. This comes in spite of a statement from chair Jerome Powell on Friday indicating that the Fed is in no hurry to react to the tariffs by cutting rates.

** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

  • The EGP dropped to its lowest level since 2024 float after tariffs sparked foreign investor exit. The drop came amid global uncertainty after US President Donald Trump’s tariffs came into effect over the weekend, which sent shockwaves across global markets.
  • The EGX30 dropped 3.3% at yesterday’s close as global equity markets react to the Trump White House’s bid to reshape the post-Second World War economic order.
  • The Finance Ministry will begin issuing retail bonds through Egypt Post at what it describes as attractive interest rates. The move is designed to help middle-income Egyptians hedge against inflation and forms part of the government’s broader strategy to reduce the cost of debt.

☀️ TOMORROW’S WEATHER- Brace for scorching temperatures tomorrow in the capital, where the mercury is set to rise to 37°C, punctuated by hot gusts of wind. The weather will cool to 18°C by nightfall, according to our favorite weather app.

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