{"id":543457,"date":"2022-02-02T03:54:18","date_gmt":"2022-02-02T03:54:18","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/02\/this-morning-govt-to-privatize-as-many-state-companies-as-possible-its-gonna-get-windy-out-there\/"},"modified":"2022-02-02T03:54:18","modified_gmt":"2022-02-02T03:54:18","slug":"this-morning-govt-to-privatize-as-many-state-companies-as-possible-its-gonna-get-windy-out-there","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/02\/02\/this-morning-govt-to-privatize-as-many-state-companies-as-possible-its-gonna-get-windy-out-there\/","title":{"rendered":"THIS MORNING: Gov\u2019t to privatize \u201cas many state companies as possible\u201d + it\u2019s gonna get windy out there"},"content":{"rendered":"

Good morning, friends. We\u2019re drinking from a fire hose of news this morning<\/strong>, with tons of news on everything from privatization (hello, EGX) to an exclusive sit-down with the Finance Ministry\u2019s Ahmed Kouchouk \u2014 with stops at the green economy, Planet Startup and subsidy policy in between. Let\u2019s jump right in:<\/p>\n

<\/a> THE BIG STORY HERE AT HOME- The government is looking to list \u201cas many state <\/strong>companies as possible\u201d on the <\/strong>EGX in 2022<\/strong>, PM Moustafa Madbouly said yesterday during a follow-up meeting on the state privatization program, according to a cabinet statement<\/a>. The meeting looked at the list of companies that could debut before the end of June, as well as preparations for the IPOs of military-owned firms (think: Safi<\/a> and Wataniya<\/a>). The PM\u2019s remarks come after Finance Minister Mohamed Maait on Monday said<\/a> the privatization program would resume in March, and days after Planning Minister Hala El Said revealed<\/a> plans to sell stakes in state-owned companies every month or two<\/p>\n

Likely up to list or offer more shares this year:<\/strong> Heliopolis Housing and Development (which is eyeing a secondary offering) and state fertilizer producer Mopco. Misr Ins. Holding subsidiary Misr Life Ins. is looking at an IPO, and perennial candidate Banque du Caire could also make its EGX debut.<\/p>\n

The caveat: <\/strong>As always, IPO windows open and close with global market conditions \u2014 and things are looking a bit choppy globally this winter.<\/p>\n

ALSO FROM CABINET- <\/strong>Replacing bread subsidies with EGP handouts could add to <\/strong>inflationary <\/strong>pressures<\/strong>, Supply Minister Ali El Moselhy was quoted as saying in a Reuters<\/a> interview, adding that \"when inflation is stable, then you can introduce cash.\u201d Handouts ringfenced specifically for bread would be Moselhy\u2019s preferred option, he added. The ministry is discussing several scenarios to rework the expensive bread subsidy system and expects to announce<\/a> its plans by the end of March.<\/p>\n

WATCH THIS SPACE- <\/strong>The Finance Ministry is mulling whether to lower the mandatory 0.25%<\/strong> tithe on corporate revenues<\/strong> that funds (in part) the universal health ins. program, Al Borsa<\/a> quotes Finance Minister Mohamed Maait as having said.<\/p>\n

WHAT\u2019S HAPPENING TODAY-<\/strong>.<\/p>\n

The 6% fee hikes for most ships transiting the Suez Canal came into effect yesterday<\/strong> as scheduled, Suez Canal Authority head Osama Rabie said in a statement<\/a>. LNG carriers and cruise ships are exempt from the increase, which comes as the authority starts to wind down a range of pandemic-era incentives and reductions<\/p>\n

Suez Canal revenues rose 10% y-o-y in January to record USD 544.7 mn, <\/strong>Rabie added.<\/p>\n

Revenues have been on the up for some time \u2014 hitting a record USD 6.3 bn in 2021<\/a> \u2014 amid a global supply chain crunch that has seen shipping costs soar.<\/p>\n

PSA- We\u2019re in for a few days of wind + rain:<\/strong> Wind will pick up across Greater Cairo, Upper Egypt and the North Coast tomorrow and Friday, bringing light to moderate rainfall to parts of the country, the national weather service<\/a> forecasts<\/p>\n

THE BIG STORY ABROAD- <\/strong><\/p>\n

Putin speaks on Ukraine \u2014 and it\u2019s not what the West wanted to hear. <\/strong>Russian President Vladimir Putin has accused the US of trying to lure Russia into a war over Ukraine, breaking a near-six week silence on the escalating Ukrainian crisis. Putin claimed that the US was using Ukraine as a \u201ctool\u201d to impose sanctions that would dent Russia\u2019s development, while ignoring Russian demands for a promise that its neighbor would not become a NATO member.<\/p>\n

An alternative explanation for the rising tensions:<\/strong> Putin has sent more than 100k troops to the Russia-Ukraine border in recent weeks. US officials urged Russia to pull back from the border and return to diplomatic negotiations in response to his latest comments.<\/p>\n

Everyone and their mother had coverage of the developments<\/strong>, from Reuters<\/a> and the Financial Times<\/a>, to the Washington Post<\/a>, the New York Times<\/a>, and the Associated Press<\/a>.<\/p>\n

ON A RELATED NOTE- <\/strong>The Netherlands received its<\/strong>first ever LNG shipment<\/a><\/strong> from Egypt<\/strong> on <\/strong>Monday <\/strong>via the recently reopened<\/a> Damietta LNG Plant, as Europe continues to suffer from an energy crisis that sees it attempt to diversify<\/a> its gas imports. That bid for new supply will only get worse if Russia turns off the taps.<\/p>\n

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MARKET WATCH-<\/strong><\/p>\n

Swvl is now set to close its merger with blank-check firm <\/strong>Queen\u2019s Gambit<\/a><\/strong> in either<\/strong> February or March<\/strong>, company CFO Youssef Salem said, confirming a report in Al Mal<\/a>. The transaction is waiting on final approval from US regulators, he added. Streaming platform Anghami<\/a>, meanwhile, has a deadline to close its SPAC with Vistas Media Acquisition Company<\/a> by 11 February.<\/p>\n

OPEC+ is set to agree on more gradual production increases in its <\/strong>meeting today<\/a><\/strong>, Bloomberg<\/a> reports.<\/p>\n

Laughing all the way to the bank: <\/strong>ExxonMobil<\/strong> and Chevron, <\/strong>which saw earnings rise<\/a> to levels not seen in eight years in 2021 on the back of spiraling crude prices. Shell and BP are expected to follow suit when they reportlater this week, the Wall Street Journal<\/a> reports. Brent crude prices threaten to break the USD 100-per-barrel mark this year. The international benchmark settled just a touch under the USD 90 mark on Tuesday.<\/p>\n

CIRCLE YOUR CALENDAR-<\/strong><\/p>\n

Key news triggers to keep your eye on in the first days of this new month:<\/strong><\/p>\n