Well, friends, we’ve made it through another week together — one of the most intense the markets have ever seen. But before we jump into the weekend we still have a slew of economic updates for you this afternoon, so let’s dive in.

THE BIG STORY TODAY-

Annual headline urban inflation reversed its downward trajectory to hit 13.6% in March, marking an 0.8 percentage point increase from the 12.8% recorded in February, according to data from state statistics agency Capmas. The March figure marks the nation's first increase in inflation reading since October 2024 when inflation recorded 26.5%. It also comes following a sharp dip in February on a favorable base effect. On a monthly basis, inflation edged up by 0.2 percentage points to 1.6%.

F&B price inflation saw an uptick: Food and beverage price inflation — the largest component of the basket of goods and services used to calculate headline inflation — went up by 2.9 percentage points to 6.6% in March, from 3.7% in February. “This came on the back of rises in bread and cereals, vegetables, and in particular fruits inflation which surged to a record high of 88.0% y-o-y,” Capital Economics’ James Swanston wrote in a note seen by EnterpriseAM. “In contrast, our measure of non-food inflation eased to a two-year low, of 17.0% y/y, as almost all categories recorded weaker inflation as the falls in the EGP last year continue to drop out of the annual price comparison,” Swanston added.

The EGP bounced back against the USD today, edging up to EGP 51.23-51.33, after slipping to 51.72-51.75 yesterday — its weakest level since the March 2024 float. The rebound follows improved investor sentiment after Trump announced a surprise 90-day pause on additional tariffs on most countries. The news eased pressure on the interbank market and attracted hot money back into the country.

AND- Palm Hills Developments elected a new board of directors for a three-year term after shareholders voted at the company's ordinary general assembly meeting this week, according to an EGX disclosure (pdf).

Those at the helm are retaining their roles — Yasseen Mansour is staying on board as the company’s chairman and managing director, while Mohamed Mansour has been reappointed as vice chairman.

New on board: UNODC Executive Director and former Social Solidarity Minister Ghada Waly (LinkedIn) has been appointed as an independent non-executive board member. Meanwhile, Ismail Mansour is joining as a board member representing El Mansour & El Maghraby Investment and Development.

The company is putting together fresh funds for Hacienda White with Banque Misr: The board greenlit a long-term syndicated loan of up to EGP 1.3 bn for its subsidiary Middle East for Real Estate and Tourism Investment to be co-financed with Banque Misr, according to a separate EGX disclosure (pdf). The funds will go into financing the addition of 200 rooms at the Casa Cook hotel in Hacienda White on the North Coast.

THE BIG STORY ABROAD

US-China trade war intensifies as tariffs force Chinese exporters to adapt: Sellers on platforms like Amazon, Shein, and Temu are raising prices to US consumers by up to 70%, canceling shipments, or planning to exit the US market entirely as trade becomes financially unsustainable following the Trump administration’s tariffs, the Financial Times reports. Some manufacturers are attempting to evade tariffs by relocating production to third countries, or rerouting goods through nations with US trade agreements. The sweeping supply chain disruptions follow US President Donald Trump’s decision to hike China’s tariff to 125%, up from 104%, after Beijing pushed ahead with a retaliatory tariff of 84% on US goods.

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

• The Sovereign Fund of Egypt (SFE) will begin restructuring five military-owned companies ahead of their planned listing under recently-signed cooperation agreements with the military’s National Service Projects Organization and a consortium of local and international advisors.
• Egypt is planning on issuing USD 2 bn in sukuk in 2025 through multiple offerings, with the government already having appointed banks for the issuance.
• France’s Airbus, Servier, Societe Generale, and other major French players discussed plans to invest in Egypt during a meeting with Industry and Transport Minister Kamel El Wazir yesterday.

☀️ TOMORROW’S WEATHER- We’ll be seeing similar weather in the capital tomorrow, with the mercury decreasing by just one degree this time to settle at a cloudy 22°C throughout the day, before reaching 13°C at night, according to our favorite weather app.