Good afternoon, folks. We’re taking advantage of the slow news cycle today to dig into the AI bubble, what that has to do with gold prices, and what a burst may mean for the global economy.

THE BIG STORY TODAY-

? FRA blocks Sagas’ bid to take full control of Elsewedy Electric: The Financial Regulatory Authority rejected a mixed cash-and-share acquisition offer submitted by Abu Dhabi-listed holding company Sagas Investments to acquire 100% of EGX-listed industrial heavyweight Elsewedy Electric, citing governance, valuation, and minority rights concerns, the regulator said in a statement (pdf).

Sagas wanted to offer EGP 65 per share incash or via share swap through newly-issued Sagas stock to buy up all of Elsewedy Electric. The Abu Dhabi-based firm already holds an indirect 18.9% stake in Elsewedy Electric through its main subsidiary Electra Investment Holding.

The proposed structure violates market fairness and investor protection principles, according to the FRA. The regulator also pointed to the firm’s limited track record and lack of operating assets, saying its shares cannot form a credible valuation basis for a swap offer. The FRA also raised concerns over conflict of interest risks, given Sagas’ indirect stake and warned that private negotiations with major shareholders could undermine equal treatment of investors. The watchdog said the offer, if executed, could distort trading dynamics while Elsewedy remains listed on the EGX.

THE BIG STORY ABROAD-

? It’s a relatively calmer afternoon in the global press following the reinstatement of the ceasefire agreement in Gaza, after Israeli airstrikes killed 26 Palestinians since yesterday.

Among the stories getting plenty of ink today: A massive global internet outage has impacted a number of online services and websites, including Snapchat, Reddit, Facebook, Prime Video, Microsoft 365, Zoom, and Duolingo. Over 500 companies are facing issues, according to Downdetector, an internet disruption tracker. The outage has been attributed to a “glitch” at Amazon Web Services. “Significant signs of recovery” were being reported at the time of publication. (CNN | BBC | Financial Times | New York Times | Verge | Sky News | Independent | Guardian)

OVER IN FRANCE- You only need four men and less than 10 minutes to rob the Louvre: Investigations are still underway in Paris as the four perpetrators behind yesterday’s heist remain at large. Nine of France’s crown jewels were successfully removed within seven minutes from the museum’s Apollo gallery, with eight stolen and the ninth — Empress Eugenie’s crown — dropped as the thieves made their getaway. A special police unit has been assigned the case, according to French Interior Minister Laurent Nunez.

The heist has put pressure over an already-fragmented French government. “How far will the disintegration of the state go?” National Rally President Jordan Bardella asked. (Reuters | New York Times | Guardian)

☀️ TOMORROW’S WEATHER- We’re in for another warm day in the capital, with temperatures set to peak at a sunny 32°C before cooling down to 19°C, according to our favorite weather app.

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