Good morning, all. We lead today’s issue with the latest on the network disruptions following the Ramses data center fire, June’s inflation reading, and Madbouly’s explanation as to why we’re behind on our privatization targets.

PSA-

WEATHER- It’s another hot day in Cairo, with a high of 37°C and a low of 25°C, according to our favorite weather app.

It’s a little cooler in Alexandria, with a high of 32°C and a low of 23°C.

WATCH THIS SPACE-

#1- Egypt, Qatar discuss boosting investments: Prime Minister Moustafa Madbouly met with his Qatari counterpart Sheikh Mohammed bin Abdulrahman Al Thani in Doha to discuss strengthening joint investments — particularly in tourism — and enhancing cooperation, according to a cabinet statement. The two also reviewed ongoing efforts with the US to reach a Gaza ceasefire and reaffirmed support for Palestinian statehood.

#2- Gov’t to launch public consultation on freezone overhaul: The General Authority for Investment and Freezones will hold a community dialogue to explore ways to develop the country’s freezones and maximize their contribution to the economy, Investment Minister Hassan El Khatib said during a meeting with Prime Minister Moustafa Madbouly and other cabinet members.

For decades, Sahel has been synonymous with summer's embrace: clear waters, crisp breezes, and vibrant nights. But last year, Ras El-Hekma cast a spotlight on its potential as a regional investment and tourism engine.

In the second issue of our Destination Sahel series, we’re digging deep into the infrastructure needed to support this evolution and whether Sahel has a spot on the global tourism stage..

Look for Destination Sahel, Issue II, in your inbox this Tuesday, 15 July.

Missed the first issue? Tap here to read the full series.

EGX WATCH-

Trading resumed on the EGX yesterday after a full-day suspension on Tuesday, prompted by internet disruptions in Cairo following the fire at Ramses Central late Monday.

The benchmark EGX30 index opened slightly higher (a gap up in industry-speak), a reassuring sign that investors are staying calm. The market seems to be quietly catching up on what was missed during the downtime, with no signs of panic. The modest gain reflects a sense of relief, and things now appear to be running smoothly again.

DATA POINT- The EGX30 ranged between an intraday high of 33.4k and a low of 32.9k points before closing the session 0.35% higher at 33.2k and adding 11.5% YTD.

HAPPENING TODAY-

#1- It’s interest rate day: All eyes are on the Central Bank of Egypt’s Monetary Policy Committee’s (MPC) meeting later today, where the committee will decide on whether or not to cut interest rates. Five of the experts we spoke to see the committee pausing its easing cycle, while three others expect a cut between 100-175 bps.

#2- It’s day two of Chinese Premier Li Qiang’s two-day visit. The first day of the Premier’s visit, saw him meet with Prime Minister Moustafa Madbouly and House speaker Hanafy Gebaly. During his meeting with Gebaly, Li said that China and Egypt should “strengthen industrial alignment and market connectivity, and push for a higher level of win-win cooperation.”

Egypt is looking to up local Chinese investments to USD 16 bn within four years, up from around USD 8 bn at the moment, Egyptian Commercial Service head Abdel Aziz El Sherif told Asharq Business. El Sherif added that Egypt is targeting USD 15 bn in total FDI by the end of 2025, up from last year’s USD 10.3 bn.

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THE BIG STORY ABROAD-

Another day, another tariff headline is dominating front pages. The US has now said it will hit Brazil with a 50% tariff — a large hike compared to the 10% reciprocal tariff announced earlier in April — as US President Donald Trump protested what he calls a “witch hunt” against former Brazilian President Jair Bolsonaro in his letter to the country. He criticized the current trial and charges against Bolsonaro and demanded that he be allowed to run in the next election. Not stopping there, he also ordered an unfair trade practices probe into Brazil’s policies that could lead to further tariffs later. (Bloomberg | Reuters | Wall Street Journal | Guardian | Financial Times)

Meanwhile, Trump says a Gaza ceasefire agreement is “very close,” as Israeli Prime Minister Benjamin Netanyahu continues talks with Trump in Washington and US, Qatari, and Israeli officials reportedly meet to discuss the agreement. (Bloomberg | Axios)

ALSO- Chipmaker Nvidia has just became the first company ever to hit a market cap of USD 4 tn, beating its rivals Apple and Microsoft to the milestone during trading yesterday. (Bloomberg | FT | WSJ | CNBC)

ALSO- X CEO Linda Yaccarino has stepped down from her position at the Elon Musk-owned platform after two years. The resignation comes just a day after X’s chatbot, Grok, went off on a tangent, praising Adolf Hitler and spewing anti-semitic comments. (Reuters | WSJ | FT)

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