Good morning, friends. It’s another calm day in local and international business news — but calm doesn’t mean unimportant as we’ve got some important stories for you to read through this morning.
In today’s issue, we’ve got more encouraging news from the country’s central bank as FX researches an all-time yet again, reports that QIB may be out of the running for United Bank, and much, much more. Let’s jump right in.
BUT FIRST- Did you know that we now cover Saudi Arabia and the UAE?
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HAPPENING TODAY-
#1- Prime Minister Mostafa Madbouly will deliver his new government’s policy statement to the House of Representatives today, with all of the country’s 30 ministers present. After Madbouly delivers his policy statement, a parliamentary committee will then review and discuss the statement in detail, before putting it up for a vote by MPs within ten days.
#2- Electra’s Elsewedy Electric share purchase wraps up today after the Financial Regulatory Authority agreed to extend the purchase deadline by a day, according to a statement (pdf) from the authority. Elsewedy Electric shareholders will have until the end of trading today to respond to the Abu Dhabi-based electrical equipment manufacturer’s offer to acquire up to 24.5% of Elsewedy Electric at USD 1.05 a share. The buyer wants to acquire at least 15% of Elsewedy Electric — which is over 76% collectively owned by the Elsewedy family — to execute the offer.
HAPPENING TOMORROW-
Retail and institutional investors can start lining up for a piece of Act Financial starting tomorrow: The company is offering some 32% of its shares — 360 mn shares — in what will be the first IPO the EGX sees in a year. The subscription period for retail investors is set to take place between 9-23 July, while institutional investors will get a chance to subscribe between 9-18 July. The company aims to raise around EGP 1.04 bn through the offering.
Already lining up: Two Gulf-based banks and one local bank are looking to purchase an undisclosed stake in Act Financial during the subscription period, unnamed sources told Al Mal.
PSA-
The EGX is also getting a long weekend: The EGX will be off on Thursday, 11 July in observance of the Islamic New Year, according to a bulletin by the bourse. Banks and public and private sector workers will also be off for the day, the prime minister and the central bank announced last week.
WEATHER- It’s much the same in Cairo today, with a high of 36°C and a low of 26°C, according to our favorite weather app.
It’s heating up a little in Alexandria and the North Coast, with a high of 32°C and a low of 23°C.
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WATCH THIS SPACE-
#1- Nafeza operator says it is running “24/7” and has nothing to do with a reported buildup of passenger cars in the nation’s ports. Both the Nefeza digital customs window and the Advance Cargo Information (ACI) systems have been "fully operational and functioning 24/7" and are not responsible for what an industry group claims is a backlog of imported vehicles in the nation's ports, says Misr Technology Services Company (MTS), the firm that built and operates the systems.
MTS was reacting to an Al Arabiya interview with auto industry figure Alaa El Sabaa, who said a prolonged service outage at Nafeza was behind a buildup in inventory at ports. We picked up the Al Arabiya interview on 25 June and have since updated our story to reflect MTS’ statement to us.
#2- Fertilizer companies look to defer loan payments amid production cuts triggered by repeated halts in production due to unstable natural gas supplies amid nationwide shortages, a number of unnamed sources in the banking sector told Al Shorouk. An unnamed official from a state bank told the outlet that some banks may be open to pushing back loan payments.
It’s not only the fertilizer industry suffering from gas shortages: In our weekly vertical exploring all things industry and manufacturing, we looked at the ceramics sector — the latest casualty of the gas shortage. Check out the story here.
THE BIG STORY ABROAD-
There’s no sign that politics will leave the front pages of the global business press anytime soon:
France won’t have a far-right government: The country’s centrist and left-wing parties dealt a blow to the far-right Rassemblement National as the leftist Nouveau Front Populaire took the most seats in parliament in voting yesterday. Anti-RN parties got their act together and strategically withdrew candidates so as not to split the vote. They now start a delicate dance: figuring out how to put together a government, a process that could take weeks.
The state of play at dispatch time this morning:
- Nouveau Front — 180
- Ensemble — 159
- Rassemblement National — 143
- Others — 95
Want more? Bloomberg is liveblogging what the elections mean for business and markets, the New York Times is also covering it live, and French business daily Les Echos says President Emmanuel Macron will give himself plenty of time before deciding what to do next. His party came second behind the Nouveau Front Populaire.
What’s next? Le Monde has an explainer.
In the US: More senior Democrats are calling on Joe Biden to abandon his bid for re-election.
In Iran: President-elect Masoud Pezeshkian, a reformer and heart surgeon, will be eager to end Iran’s nuclear stalemate with the west, the Financial Times notes.
Get ready for a busy week packed with more politics — and the start of 2Q earnings season:
- New UK Prime Minister Keir Starmer will cross the Atlantic for a three-day meeting that starts tomorrow to mark Nato’s 75th birthday in Washington, DC;
- Also tomorrow: Fed boss Jay Powell will testify before the Senate Banking Committee;
- Oil market reports are due out on Wednesday (Opec) and Thursday (the IAE);
- BNY Mellon, JPMorgan Chase, Citigroup, and Wells Fargo all report earnings on Friday
And so much sports: Football’s Copa America semi-final is on Wednesday (we’re hoping for Canada to make it to the finals, obviously). Wimbledon will see the women’s final on Saturday and the men’s on Sunday. And the Euro 2024 final takes place Sunday.

*** It’s Blackboard day: We have our weekly look at the business of education in Egypt, from pre-K through the highest reaches of higher ed.
In today’s issue: We speak with officials from the UK’s British Council, Germany’s Goethe-Institut, and France’s Institut Français to learn more about their language programs.




