Good afternoon, friends, and welcome to the start of a fresh new workweek. Besides the biting cold, kicking the week off is news that derivatives trading is finally within reach. Also today: Trump slaps tariffs on eight NATO members, we dig into why some F&B brands are ditching influencer marketing, and we explore how Egypt’s pharma sector is moving beyond fill-and-finish.

THE BIG STORY TODAY-

? Derivatives trading is finally (almost) here. The Financial Regulatory Authority officially granted the EGX a license to operate its futures exchange, clearing the way for trading to launch as early as March, according to a joint statement. This aligns with the exchange's latest guidance that a functional derivatives market would be live before the end of 1Q.

The rollout will be phased, debuting with futures contracts on the benchmark EGX30 index, before eventually expanding to the EGX70, single-stock futures, and options.

Seven brokerage firms have already applied for licenses to trade futures, and technical linkages between brokers and the clearinghouse are expected to be finalized within a month.

** Want the full story? Look out for our AM edition of EnterpriseAM in your inbox tomorrow morning for our complete rundown on the plan to launch derivatives trading on the EGX.

THE BIG STORY ABROAD-

? US President Donald Trump is set on buying Greenland, threatening eight NATO members with additional tariffs if the purchase isn’t greenlit. Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands, and Finland face a hike of 10% on 1 February, shooting up to 25% on 1 June “until such time as a deal is reached for the complete and total purchase of Greenland.” The tariff rollout on members of the EU threatens the EU-US trade agreement sealed in August.

^^Read more on: CNBC.

More from Trump land: The US president is demanding USD 1 bn for permanent seats on his “Board of Peace.” The board — which critics see as a potential UN rival (or attempt at one) — would become official once three nations sign on. Several European countries have been invited, though many strongly oppose the draft and are coordinating pushback, particularly over concerns that Trump would personally control the funds.

Trump would serve as inaugural chairman with authority over membership, agendas, and final approval of all decisions. Members contributing less than USD 1 bn would serve three-year terms subject to renewal at the chairman’s discretion.

^^Read more on: Bloomberg.

ALSO- Syrian government troops have captured the country's largest oil field and a key gas facility from Kurdish-led forces in the east, according to a developing story by Reuters. The military took control of the Omar oil field and the Conoco gas field as clashes intensified between government forces and the US-backed Syrian Democratic Forces, following stalled negotiations to integrate the Kurdish militia into the new government under President Ahmed Al-Sharaa.

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

  • It looks like our USD 35 bn natural gas import agreement with Israel is moving forward after all. Leviathan partner NewMed confirmed in a disclosure that as of Thursday, all conditions precedent for the agreement have been satisfied;
  • Egypt is moving to plug the biggest gap in its renewable energy strategy: storage. Local industrial services player Kemet and China’s energy storage batteries manufacturer Cornex inked a strategic cooperation agreement to establish a USD 200 mn energy storage battery cells factory in Egypt using local raw materials;
  • US President Donald Trump said he is “ready to restart US mediation between ⁠Egypt ‍and Ethiopia to responsibly resolve the ⁠question of ‘The Nile Water Sharing’ once ‌and for all” in a letter sent to President Abdel Fattah El Sisi. The letter signals a significant shift toward a US-led diplomatic track following years of stalled African Union-mediated talks over Addis Ababa’s filling and operation of the Grand Ethiopian Renaissance Dam (GERD).

enterprise

*** It’s Inside Industry day — your weekly Sunday briefing of all things industrial in Egypt. Inside Industry explores what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning through to product distribution, land allocation, industrial processes, supply chain management, labor, automation and technology, inputs and exports, and regulation and policy.

In today’s issue: We’re taking a deep dive into Egypt’s pharma industry amidst a localization push.

☀️ TOMORROW’S WEATHER- We’re in for a brisk day in Cairo tomorrow, with the mercury set to peak at a chilly high of 20°C before cooling down even further to 10°C, according to our favorite weather app.

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