Good morning, folks. In a very welcome distraction from recent geopolitical events that have been keeping us up at night, the bourse will kick off trading today by welcoming Valu to its ranks. And on top of that, the fintech giant is also poised to welcome Amazon as a direct shareholder during trading today. We’ve got a rundown of the listing, a one-on-one interview with Valu CEO Walid Hassouna, encouraging sukuk updates, not-so encouraging energy updates, and more in today’s issue.

PSA-

Banks will also be getting this Thursday and the next off, the Central Bank of Egypt said in a notice seen by EnterpriseAM. Banks — along with the rest of us — will be getting two long weekends in a row with Thursday, 26 June off in observance of Islamic New Year and Thursday, 3 July off to commemorate the twelfth anniversary of the 30 June Revolution.

And that includes us too at EnterpriseAM Egypt, who will be taking a break from your inboxes for the next two Thursdays.

WEATHER- It’s set to be a hot and humid day in Cairo, with a high of 35°C, a low of 23°C, and partly cloudy skies, according to our favorite weather app.

Alexandria is also in store for a humid day, accompanied by a high of 28°C, a low of 20°C, and partly cloudy skies.

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ICYMI- Missed this week’s Inside Industry? In our weekly vertical exploring all things industry and manufacturing, we dove into the Environment Ministry’s Green Sustainable Industries program. Check out the story here.

Sahel – what was once Egypt’s summer escape has become an economic hub, social ecosystem, and regional travel hotspot. And we’re going to help you decode its rapid evolution with EnterpriseAM Destination Sahel.

In a special four-part summer series we’re taking the insights you’ve come to expect of us seaside. Think everything from Ras El Hekma’s impact and investment opportunities to exclusive interviews with key players. And it wouldn’t be Sahel season without a sprinkling of what’s shaking up socially.

Expect us in your inbox tomorrow.

See you, Sahel-side.

EGP WATCH-

The EGP weakened against the greenback again yesterday, falling around EGP 0.13-0.15 by the end of trading. The USD was sold for around EGP 50.85-50.87 and bought for EGP 50.73-50.75 at state and private banks following trading. Local banks were surprised by a significant amount of outflows this morning at the start of trading amid growing fears of regional escalation following the US’ strike on key Iranian nuclear facilities the night before, a source in the banking sector told EnterpriseAM.

The surge in USD demand pushed Interbank USD transactions yesterday to an unprecedented level, after having already jumped to around USD 2.5 bn over the week — considerably higher than the weekly average of nearly USD 1 bn, the source said. Although foreign investors briefly returned to our debt market on Tuesday and Wednesday for speculative trading and securing gains, renewed fears over further escalation resulted in partial foreign investment outflows, the source noted.

DEBT WATCH-

The Central Bank of Egypt sold just 19.4% of its EGP 90.0 bn target for an auction yesterday of three- and nine-month EGP-denominated t-bills, according to data from the central bank. The bank sold EGP 15.0 bn worth of three-month t-bills at an average yield of 29.11% and EGP 2.5 bn worth of nine-month bills at an average yield of 27.18% as the bank couldn’t meet the high yields demanded by investors.

HAPPENING TODAY-

Investment Minister Hassan El Khatib is in China to talk trade and investment with senior officials, including Commerce Minister Wang Wentao, Chinese Development Bank Executive Vice President Wang Peng, and China-Africa Development Fund Chairman Wang Shao Dan, according to a statement from the ministry. The minister will also meet with representatives from Chinese water desalination, clothing, energy, fiberglass, automotive, and battery companies during his trip.

El Khatib will also join Planning and International Cooperation Minister Rania Al Mashat for the World Economic Forum’s annual New Champions meeting, which is set to kick off tomorrow in Tianjin. Also on El Khatib’s schedule is the Egyptian-Chinese Forum and a roundtable organized by the Egyptian Commercial Office in Beijing.

THE BIG STORY ABROAD-

With the world’s press still processing the US’ strikes on Iran the day before, the question everyone is trying to answer is: what happens next? Regional security and the global economic outlook now depend on how Tehran decides to respond, with the possibility of Iran choosing to close the Strait of Hormuz or target US assets and personnel already sending diplomatic efforts and energy markets into a spin — although not by as much as some had feared.

So far, Iran’s response has been limited to continuing to exchange missiles with Israel. Iranian Supreme Leader Ayatollah Ali Khamenei has allegedly decided not to retaliate against the US directly and “risk a harsher response that wreaks more destruction on the republic,” Iranian government insiders told the Financial Times .

But if Iran does decide to close the Strait of Hormuz, crude oil prices could soar past USD 130 per barrel, with the cutting off about 30% of the world’s daily oil supply and 20% of global LNG trade violently ramping up energy costs across the globe, according to Bloomberg analysts. In response to Iranian state TV reports that the country’s parliament had voted to approve the closing of the energy corridor, US Secretary of State Marco Rubio urged Beijing to pressure Iran to keep the passage open. (Bloomberg | Reuters | New York Times | Financial Times | Wall Street Journal | Guardian)

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.

In today’s issue: We look at the country’s summer training initiatives for students.

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