Good morning, folks. We’re kicking off the first day of the month with news that the decline in oil and gas production is set to stabilize in two months, according to Oil Minister Karim Badawi, fresh entrants to the privatization pipeline for the next fiscal year, and more.

PSA-

WEATHER- It’s another partly cloudy day in Cairo today, with a high of 31°C and a low of 20°C, according to our favorite weather app.

After a stormy weekend, it’s calming down in Alexandria, with a high of 25°C, a low of 19°C, and a chance of light rain.

It’s official — the public sector will take a five-day break from Thursday, 5 June through Monday, 9 June in observance of Eid Al Adha, Prime Minister Moustafa Madbouly announced late last week. The Labor Ministry and the central bank are yet to announce the dates for the private and the banking sectors. Exams, if any, will continue as scheduled according to the dates set by the relevant authorities.

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HAPPENING TODAY-

The Cruise Egypt Forum 2025 kicks off today at the Hilton Cairo Heliopolis, marking the country’s first event fully dedicated to the cruise industry. The two-day gathering brings together public and private sector stakeholders — including government ministries, port authorities, cruise lines, and tourism developers — to discuss how Egypt can position itself as a regional cruise hub and unlock investment openings in the sector.

NEWS TRIGGERS-

It’s the first day of June — here are the key news triggers to keep your eyes on this month:

  • Non-oil private sector activity to continue decline? Policymakers, private sector players, and economists are eagerly waiting S&P Global’s PMI figures for May that will be coming out on Tuesday this week. April’s reading saw non-oil private sector activity decline further to 48.5 amid weaker consumer spending — marking Egypt’s lowest PMI reading in 2025 so far.
  • Inflation to level out after two consecutive months of acceleration? Capmas and the CBE are expected to publish May’s inflation data on Tuesday, 10 June. Data for April saw annual headline urban inflation inch up for the second straight month on the back of rising energy costs, after having dropped a whole 11.2 percentage points in February.
  • Big privatization updates on the horizon? IFC President Makhtar Diop will touchdown in Egypt at some point this month and we expect our airport privatization push — which we have tapped the IFC to give a helping hand — to top the agenda of his trip. Watch this space.

THE BIG STORY ABROAD-

Hopes for an approaching ceasefire in Israel’s relentless and indiscriminate assault on Gaza became even more distant, after the US Special Envoy the Middle Easy Steve Witkoff attacked Hamas’ amendments to a US-backed proposal as “totally unacceptable” in a post on X. In addition to a 60-day truce, the exchange of 28 of the 58 hostages still held in Gaza for more than 1.2k Palestinian detainees, and the entry of humanitarian aid, Hamas is pushing for the inclusion of a road map to a permanent ceasefire and other amendments. (Reuters | Associated Press | New York Times | Financial Times | Guardian)

While over in the occupied West Bank, Israel blocked a planned visit to the West Bank by a group of Arab foreign ministers, including Egypt, Saudi Arabia, Jordan, and Bahrain. An Israeli official called the delegation’s meeting with the Palestinian Authority a “provocative move” aimed at promoting Palestinian statehood. The Jordanian Foreign Ministry called out Israel for its “clear breach of Israel’s obligations as an occupying force.” (New York Times | Reuters)

And over in the business papers, US President Donald Trump is making the headlines with yet another new tariff announcement, setting his sights on steel and aluminum imports with a planned 50% tariff starting 4 June. The doubling of the existing tariff will “secure the steel industry” and stop foreign competitors from “getting over the fence,” Trump said. (Financial Times | Bloomberg | Wall Street Journal)

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