Good morning, wonderful people, and happy THURSDAY. Power cuts continue to dominate the headlines in a morning that is otherwise moderately slow. Barring any new developments on the electricity fronts, you can expect today’s interest rate decision at the central bank to be the big news driver when the monetary policy committee announces its decision toward the end of the day.

Our best wishes to you all for a wonderful weekend — and a safe drive to the coast if you are Sahel-bound.

Late-night power cuts are a thing of the past: The Electricity Ministry will stop cutting the power in the 12-hour period between midnight and noon, the state-owned Middle East News Agency quotes an unnamed source at the Electricity Ministry as having said. This came less than two days after it introduced a new blackout schedule to let the public know the exact times they will be without power.

Remember:The state-owned Egyptian Electricity Holding Company (EEHC) was forced into starting rolling blackouts two weeks ago as soaring electricity demand due to the heatwave put pressure on the network and burned through fuel supplies. To reduce load, the government has ordered public-sector workers to work from home on Sundays and is trying to cut electricity consumption in public spaces. It is also importing additional supplies of heavy fuel oil to fire electricity generation amid a shortage of natural gas.

HAPPENING TODAY-

It’s interest rate day: The Central Bank of Egypt is expected to leave interest rates unchanged when it holds its policy meeting later today. That’s according to a consensus of analysts and economists we spoke to last week, who expect the central bank to hold fire.

PMI: S&P Global will publish its purchasing managers’ index for Egypt today. The non-oil private sector contracted at its slowest rate in 22 months in June amid signs at the time that inflationary pressures could be easing.

The Greek PM is in town: President Abdel Fattah El Sisi will hold talks this morning with Greek prime minister Kyriakos Mitsotakis in El Alamein, according to Mitsotakis’ office.

Dialogue Day: The National Dialogue will discuss a draft law establishing a new council for education and training, as instructed by President Abdel Fattah El Sisi earlier this week. The proposed legislation aims to empower the council to unify education policies and align them with the needs of the job market and improve scientific research. The council’s board would have 16 members including ministers and education experts, be chaired by the prime minister, and be affiliated to the president. Participants will also discuss post-divorce issues.

HAPPENING THIS WEEK-

OPEC+ to maintain supply levels: Oil cartel OPEC+ is expected to leave output at current levels when it meets tomorrow, Reuters reports, citing six OPEC+ sources.

Remember: Oil producers have embarked on a series of production cuts since November in a bid to lift prices, most recently in a surprise decision in April. The group last month agreed to extend the cuts into 2024, with Saudi Arabia, Russia and Algeria announcing additional voluntary cuts.

Oil had a good July: Brent and US crude reached three-month highs last month on the back of tightening supply and growing Asian demand.

THE BIG STORIES ABROAD-

Trump to appear in a DC court today: Former US President Donald Trump is due to appear in court today in DC after having been indicted for allegedly lying in an attempt to overturn the 2020 election results, as well as the events leading up to the attacks on the US Capitol in 2021. The Biden administration is trying to get this over and done with as soon as possible as the presidential race begins to heat up, much to the chagrin of Trump’s legal team, which called the idea of holding a trial in 90 days “absurd.” Trump has a commanding lead in the Republican primary polls and is the overwhelming favorite to be the party’s nominee to face Biden next year.

The story is all over the international press front pages:Associated Press | Reuters | Bloomberg | Financial Times | New York Times | Washington Post | Wall Street Journal.

Fitch US credit downgrade sparks market sell-off, consternation in Washington: Senior figures in the Biden administration and Wall Street yesterday criticized Fitch Ratings’ downgrading of the US’ credit rating, a decision which helped spark a sell-off in the financial markets. Treasury Secretary Janet Yellen said the move was “flawed” and “completely unwarranted” while JPMorgan Chase CEO Jamie Dimon called it “ridiculous” in an interview with CNBC.

ICYMI- The rating agency cut the country’s sovereign credit rating from AAA to AA+ on Tuesday, citing expectations for fiscal pressure over the coming three years and the repeated high-stakes congressional battles over raising the debt ceiling.

Fitch defends the move: The downgrade came as a result of concerns about the country’s fiscal situation, a “deterioration of governance,” and rising political polarization, a senior director at the rating agency said yesterday.

The markets didn’t like it: The downgrade combined with the Treasury’s plans to increase debt issuance and unexpectedly strong labor data to trigger a sell-off in the US equity and bonds markets yesterday. Following a weeks-long rally, stocks suffered their worst day since April, with the S&P 500 losing 1.4% and the tech-heavy Nasdaq falling 2.2%. A sell-off in US treasuries sent yields to new 2023 highs.

The sell-off is hitting Asia, where most markets are in the red this morning. European markets are expected to open lower while US stocks could stage a rebound, according to equity futures.

This is the biggest business story in the world this morning: Reuters | Bloomberg | Financial Times | Washington Post | Wall Street Journal | CNBC.

MORE NATURAL GAS FROM ISRAEL?

Could we see more natural gas production + exports from Israel? Israeli Energy Minister Israel Katz wants to send more of the country’s natural gas reserves abroad, as the country looks to ramp up its gas production and link up with new markets looking for replacements for Russian hydrocarbons, reports Reuters. Israel’s gas reserves are protected by government export limitations that ensure local market capacity, but without improving access to foreign buyers, companies are likely to avoid making investments needed to boost production. Greater gas exports would strengthen Israel’s position as a player in the region and the world, Katz said.

Egypt is pushing for more: Israeli business daily Globes reported last week that Egypt’s intelligence chief Abbas Kamel asked Israel’s national security head to increase gas exports in a recent meeting.

It would be a good time to get our hands on more Israeli gas as the country suffers through the first sustained bout of blackouts in a decade on the back of a shortage of gas supplies and soaring temperatures. Egypt is also hungry for more natural gas to liquefy and sell on the international market to shore up our foreign exchange position.

CIRCLE YOUR CALENDARS- The Enterprise Finance Forum is taking place on 18-19 September at the St. Regis Hotel in Cairo. This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy.

TAP OR CLICK HERE if you want to express interest in attending. We’ll be sending out the first batch of invitations soon.

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