US weighs scaling back Middle East footprint as Houthis wound 73 in strikes on Saudi Arabia

Good afternoon, folks, and happy hump day. Today we look at what would happen to money market fund returns if rates were to come down — and whether the case for staying in one is still as clear as it was a year ago. We also stumbled into a Lanzhou noodle bar in Maadi that turned out to be exactly the kind of place you’re glad you walked into. Sports and a comedy night below.

First up, the news…

THE BIG STORY ABROAD-

🌐 It’s a busy afternoon in the global press, with plenty of stories vying for the top spot. Let’s dive in.

Yemen’s Houthis attacked four cities in southern and southwestern Saudi Arabia earlier today, leaving over 70 wounded — including women and children — after drones and missiles struck a Saudi airbase in Khamis Mushait and several Aramco targets in Abha, Najran, and Jazan. The attacks “temporarily halted some operations,” the Saudi Energy Ministry said, according to CNN. Egypt’s foreign ministry condemned the attacks, describing them as a “dangerous escalation.” Oil prices saw an uptick on the back of the attacks.

^^Read more on: The Guardian, CNN, and Reuters.

MEANWHILE- The US is reportedly mulling cutting the number of people and facilities stationed throughout the Middle East should the Trump administration prove successful in ending the Iran war, CNN reports, citing six sources with knowledge of the matter. This comes as the war with Iran reveals “deep vulnerability” in US infrastructure in the region, the American media giant says.

^^Read more on: CNN.

IN TRADE NEWS- Canada’s retaliatory tariffs on a slew of US goods went into effect today, applying to over USD 20 bn worth of US products — with some as high as 50%. Just yesterday, US President Donald Trump threatened to ban the sale of Canadian Bombardier jets if they’re not manufactured in the US, adding an additional layer to an already rapidly escalating trade dispute between both North American nations.

REFRESHER- The trade war’s current chapter began when the US imposed 50% tariffs on USD 20 bn worth of Canadian products late August, after last-ditch negotiations failed to resolve the latest strain in relations between the historic allies.

^^Read more on: CNN, BBC, and Associated Press.

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** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• Dutch investment company Value8 is asking the courts to freeze Cairo-born contractor Orascom Construction’s proposed merger with Dutch-listed OCI Global — both backed by Egyptian b’naire Nassef Sawiris. The petition, filed with the Enterprise Chamber of the Amsterdam Court of Appeal, includes keeping the transaction off the ballot at any OCI shareholders’ meeting and seeks an investigation into how OCI has been run;
• The government is preparing to launch a new drug pricing system in the coming days that keeps mandatory pricing but makes it more responsive to exchange-rate and cost swings — while handing locally manufactured products a structural price advantage over imports. The framework will be finalized after meetings with local and foreign manufacturers;
• Digital bill-payment platform Sahl is preparing to launch in the Dubai International Financial Center to serve Egyptian expatriates in the UAE. The planned expansion aims to allow Egyptians living in the UAE to directly pay utilities, municipal fees, and financial obligations for their families back home.

☀️ TOMORROW’S WEATHER- It’s going to be a warm but clear day in the capital tomorrow, with temperatures peaking at 36°C, before dropping to an overnight low of 24°C, according to our favorite weather app.