Good morning, folks and happy hump day to you all. As has been the case every day this week, we have another brisk issue for you this morning, but we don’t expect things to stay quiet with a new EGX head appointed and Emirati President Sheikh Mohamed bin Zayed Al Nahyan in town for a few days.

A new EGX boss? Mabdouly has tapped Islam Abdel Azim Azzam as chairman of the EGX, marking the end of Ahmed El Sheikh’s run as EGX boss. We’ll be keeping an eye out today to see how the market reacts to Azzam’s appointment.

AND SOME GOOD NEWS TO START OFF YOUR DAY- We’re in for a four-day workweek: Prime Minister Moustafa Madbouly announced Thursday, 4 September as a holiday for the public sector in observance of Prophet Muhammad’s birthday. We’ll be on the lookout for similar statements from the Labor Ministry, EGX, and central bank.

In the fourth issue of our Destination Sahel series, we’re bringing you the latest updates on New Alamein City and a look at the best investments in Sahel today. We also investigate the growing issue of beach erosion and its impact on our shores.

Look for Destination Sahel, Issue IV, in your inbox this Wednesday, 3 September.

Missed the first three issues? Tap here to read the full series.

PSA-

WEATHER- It’s another sunny day in Cairo, with the capital in for a high of 34°C and a low of 25°C, according to our favorite weather app.

It’s more or less the same in Alexandria, which will be experiencing a high of 32°C and a low of 25°C.

POLL WATCH-

More analysts pencil in a rate cut: The Central Bank of Egypt is widely expected to resume its easing cycle when its Monetary Policy Committee meets on Thursday, with eight economists surveyed by Reuters forecasting a 100 bps cut on the back of cooling inflation.

The rationale: “Inflation has been declining while the EGP is strengthening against the USD, supported by government initiatives to lower commodity prices and the stability of energy prices,” Zilla Capital’s Aya Zoheir told the newswire, adding that expectations of a Fed cut in September also provide space for easing.

That seems to be the consensus: Eleven of the economists and banking experts we spoke to for our customary poll expect a rate cut between 100-300 bps this week.

WATCH THIS SPACE-

The Finance Ministry will settle EGP 11 bn in overdue payments to medical suppliers and pharma companies over the coming couple of days, sources with knowledge of the matter told Al Borsa. The payment will be made through the Unified Procurement Authority, which owes a total of EGP 43 bn to companies. The rest will be paid out in three equal installments over three months, the sources said.

We had an idea this was coming: We previously reported that the UPA had plans to settle some EGP 43 bn in overdue payments to pharma companies during the current fiscal year. This came after medical suppliers called on the government to step in to resolve the unpaid due.

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CIRCLE YOUR CALENDAR-

#1- El Gouna will host the launch of the 2025 Egyptian Entrepreneurial Sector Diagnostic Report between 24-26 September, according to a statement. Organized by Entlaq in partnership with El Gouna, the three-day summit will bring together government officials, investors, development partners, and startup founders to discuss the findings of the report on the country’s entrepreneurial community.

#2- Pharma manufacturing expo Pharmaconex will run between 1-3 September at the Egypt International Exhibition Center, according to a statement (pdf). The event will highlight recent public and private sectors’ efforts to localize drug manufacturing and strengthen supply chains under the National Health Strategy 2024-2030. The exhibition will host over 350 exhibitors from 40 countries, feature 70 conference sessions, and is expected to attract some 13.5k visitors.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

THE BIG STORY ABROAD-

The Federal Reserve is in The Donald’s crosshairs again, this time with the US president firing governor Lisa Cook on claims of mortgage fraud. The legally-dubious move — as presidents can’t fire Fed governors without “cause” — came after days of back-and-forth with Cook, who said earlier Trump’s “bullying” will not force her to resign.

Markets were not happy: The latest threat to the Fed’s independence stoked market fears, sending Wall Street futures into the red following a losing session on Monday.

MEANWHILE- A new coffee giant is coming: US-based Keurig Dr Pepper is taking over JDE Peet for USD 18 bn, in what is set to be the largest M&A transaction in Europe in more than two years. The price is a 20% premium to the Dutch company’s last closing price, with Keurig Dr Pepper aiming to merge with JDE and split coffee operations and other beverage products into two US-listed companies.

CLOSER TO HOME- Two back-to-back Israeli strikes on Nasser Hospital in Southern Gaza killed at least 20 people, including rescue workers and five journalists. Among the killed were Mariam Dagga, a visual journalist for the Associated Press, as well as Reuters contract photographer Hussam al-Masri, Al Jazeera cameraman Mohammed Salama, and freelance reporters Moaz Abu Taha and Ahmed Abu Aziz.

ALSO WORTH READING THIS MORNING-

  • Intel warns: Trump’s recently-acquired stake could harm international sales and future government grants, according to a securities filing. Trump is saying he wants more agreements with “healthy” US companies. (Reuters)
  • Elon Musk is suing Apple and OpenAI, claiming the agreement to integrate ChatGPT in Apple’s product is harmful to competitors like his startup xAI. (Financial Times)

*** It’s Going Green day — your weekly briefing of all things green in Egypt: EnterpriseAM’s green economy vertical focuses each Tuesday on the business of renewable energy and sustainable practices in Egypt, everything from solar and wind energy through to water, waste management, sustainable building practices and how you can make your business greener, whatever the sector.

In today’s issue: We take a look at why Egypt is lagging behind its regional peers when it comes to carbon capture projects.

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