Good morning, all. The news flow has slowed down a tad as we inch closer to the end of what has been a very long week. We lead today’s issue with automotive news, following the announcement of a USD 123 mn assembly plant and an auto parts factory going live. We also dive into the CBE’s latest Monetary Policy Report and Morpho Investments’s latest moves.

PSA-

WEATHER- It’s a cool day in Cairo, with a high of 31°C and a low of 19°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 25°C and a low of 17°C.

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HAPPENING TOMORROW-

Could a second consecutive rate cut be in store? After the Central Bank of Egypt kicked off its long-awaited easing cycle in April with a 225 bps cut — its first since 2020 — attention now turns to the MPC’s third meeting of the year tomorrow. The committee is set to decide whether to continue cutting rates or hit pause as the central bank weighs the implications of a temporary US-China trade war truce, inflation creeping up in April, and more.

Most analysts polled by EnterpriseAM see the bank cutting rates, with five of eight respondents pencilling in a 100-200 bps cut this Thursday. Some analysts, including Zilla Capital head of research Aya Zoheir, argued that not cutting rates could “confuse markets and raise questions about the consistency of the monetary policy direction.” Others, like Ahly Pharos head of research Hany Genena pointed to the forecasted stability in inflation as a reason to continue monetary easing.

DATA POINT-

Local network operators have invested around USD 2.7 bn since 2019 to secure frequencies and licenses, ICT Minister Amr Talaat said.

THE BIG STORY ABROAD-

In a rare public rebuke by Israel’s allies, the British government announced it will not moveforward with discussions on free trade with Tel Aviv. The statement cited ‘egregious policies’ by PM Netanyahu, including the weeks-long blockade of aid and escalation of military offensive in the Gaza Strip, as well as the situation in the West Bank.

The EU followed with an announcement that it intends toreview its trade agreement withIsrael, a move supported by a majority of member states due to the “catastrophic” situation in Gaza. The looming famine in the sector has not yet been improved by Israel’s easing of the blockade, as the United Nations said yesterday no aid has been distributed yet despite some 100 trucks entering the enclave.

The global backlash is apparently not deterring Israel: US intelligence shows Tel Aviv is making preparations to strike Iranian nuclear facilities, unnamed US officials told CNN. The potential strike would be a huge break with US President Trump’s policy of negotiating an agreement with Tehran.

OVER IN THE US- Elon Musk — one of the biggest backers of the US Republican Party — signalled yesterday he will pull back from political spending and focus on Tesla. The EV maker saw a dip in sales amid a backlash to Musk’s close involvement in White House policymaking under President Trump.

Also worth reading this morning-

  • Google is adding “AI mode” to its search engine and Chrome browser for all US users. The new feature will offer a conversational chatbot — similar to ChatGPT and Copilot — rather than a list of links.
  • Turkey arrested 22 Istanbul municipality employees on corruption charges yesterday, the latest development after the arrest of mayor Ekrem İmamoğlu back in March.
  • Qatar’s PM Sheikh Mohammed bin Abdulrahman al-Thani denied that Doha’s USD 400 mn jet offered to Trump is an attempt to curry favor, calling it “a ministry of defense to department of defense transaction.”

*** It’s Hardhat day — your weekly briefing of all things infrastructure in Egypt: Enterprise’s industry vertical focuses each Wednesday on infrastructure, covering everything from energy, water, transportation, and urban development, as well as social infrastructure such as health and education.

In today’s issue: We take a look at activity in Cairo’s real estate market during the first quarter of the year.

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