Good afternoon, friends. The weather may be cooling down and the weekend may be fast-approaching, but that hasn’t stood in the way of the news cycle. Let’s dive in.

PSA-

Watch out for new phone hacking attempts: The National Telecom Regulatory Authority is warning that advanced cyberattacks are targeting smartphone users globally, including in Egypt, by exploiting newly discovered security flaws. The watchdog is urging people to update their phones and apps and enable advanced security features like lockdown mode on iPhones or enhanced protection on Android. It also called on people to not click suspicious links or messages, use secure browsers and ad blockers, and enable two-factor authentication on important accounts.

THE BIG STORY TODAY-

? Annual urban inflation eased 0.2 percentage points in November, going against what pretty much everyone expected to end the month at 12.3% y-o-y, according to data from state statistics agency Capmas seen by EnterpriseAM. A drop in food and beverage prices — down a whole 2.6% on a monthly basis — unexpectedly offset a rise in fuel prices.

There’s a reason why they say predictions are a fool’s game, with almost none of the analysts and economists we trust the most foreseeing the country’s headline figure dipping in November. Headline inflation had been expected to accelerate 0.6 percentage points to 13.1% y-o-y, according to a poll of 14 analysts by Reuters.

The news should bolster expectations of a coming interest rate cut this month, with the central bank’s Monetary Policy Committee set to meet on 25 December. The unexpected fall also bodes well for our combined fifth and sixth reviews of the country’s USD 8 bn extended fund facility program with the IMF, with government sources previously telling EnterpriseAM that the visiting Fund delegation would be closely watching the data.

THE BIG STORY ABROAD-

? Making headlines across all major news outlets today is US President Donald Trump escalating his criticism of European allies, describing them as “weak” and leading a “decaying” region. These remarks have deepened the growing rift between Washington and the continent as negotiations over Ukraine’s future continue.

The comments come a day after Ukrainian President Volodymyr Zelenskyy met with British, German, and French officials in London to discuss joint efforts to end the war and secure guarantees for Ukraine’s future security. Trump dismissed these diplomatic efforts and ridiculed the leaders, saying that they “talk too much” without producing results.

Trump also directed sharp criticism at Zelenskyy, suggesting that the Ukrainian leader needs to accept territorial concessions to Russia, arguing that Russia has the “upper hand” due to its size and strength and adding that “at some point, size will win.”

This has prompted strong reactions from European capitals. The Trump administration’s newly released national security strategy warned that Europe risked “civilizational erasure” within 20 years due to immigration, and questioned whether they could “remain reliable allies.” It also suggested that Washington should reestablish strategic stability with Russia. German Chancellor Friedrich Merz described elements of the new US security strategy as “unacceptable to us from a European perspective,” adding that European nations do not need US help to “save democracy” in Europe.

Analysts say the developments signal a seismic shift in US-European relations. Ian Bremmer, founder and president of Eurasia Group, noted that Trump’s worldview treats a “strong, united Europe” as a “threat, not an asset.” The widening divide has been characterized as a gift to Russian President Vladimir Putin, who has warned that Russia is “ready right now” for war with Europe if necessary. (CNBC | CNN | NYT)

☀️ TOMORROW’S WEATHER- Keep an umbrella on you, early birds. Tomorrow’s chilly weather will be accompanied by morning showers, which will then give way to a sunny day, according to our favorite weather app. The mercury is set to peak at 22°C and dip to 14°C at night.

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