{"id":553038,"date":"2022-10-17T13:25:38","date_gmt":"2022-10-17T13:25:38","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/17\/this-evening-govt-reintroduces-unsubsidized-bread-price-caps-were-missing-out-on-another-usd-75-mn-in-military-aid-from-washington\/"},"modified":"2022-10-17T13:25:38","modified_gmt":"2022-10-17T13:25:38","slug":"this-evening-govt-reintroduces-unsubsidized-bread-price-caps-were-missing-out-on-another-usd-75-mn-in-military-aid-from-washington","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/10\/17\/this-evening-govt-reintroduces-unsubsidized-bread-price-caps-were-missing-out-on-another-usd-75-mn-in-military-aid-from-washington\/","title":{"rendered":"THIS EVENING: Gov\u2019t reintroduces unsubsidized bread price caps + We\u2019re missing out on another USD 75 mn in military aid from Washington"},"content":{"rendered":"

Good afternoon, ladies and gentlemen.<\/strong> It\u2019s another reasonably brisk news afternoon here in Omm El Donia, with a little bit of everything from subsidy policy to diplomacy to keep us busy.<\/p>\n

THE BIG STORIES TODAY<\/strong><\/p>\n

<\/a> #1- Renewed price cap for unsubsidized bread from bakeries that use GASC flour: <\/strong>The government reintroduced a price cap for unsubsidized bread for a month in a ministerial decree<\/a> issued yesterday, for those bakeries that will take state grain buyer GASC up on its offer of flour amid reports that the private sector is struggling to get its wheat shipments through ports. The decision sets a higher price ceiling than the one first introduced in March<\/a>. A 75-gram loaf of baladi bread will now sell at EGP 1. Prices for fino bread are now set between EGP 0.75 and EGP 1.00 for loaves weighing 40-60 grams, according to the decision. Egypt first set a price cap for unsubsidized bread in March for three months in a bid to hold down local prices amid surging global inflation on the back of the crisis in Ukraine. The decision will come into effect once it\u2019s published in the Official Gazette.<\/p>\n

#2- Washington blocks another USD 75 mn in military aid:<\/strong> We won\u2019t be receiving another USD 75 mn of military aid from the US after Democratic Senator Patrick Leahy blocked the aid\u2019s disbursal, citing human rights concerns, Reuters<\/a> reports. Leahy, who heads the Senate Appropriations Committee, rejected an assessment by the State Department that the aid should be sent to Egypt in exchange for progress on releasing political detainees. Washington typically earmarks sp,e USD 1.3 bn in annual military aid for Egypt. The State Department withheld<\/a> USD 130 mn of military aid in September over human rights concerns.<\/p>\n

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

<\/a> UK hits CTRL-Z on tax plans to restore investor confidence + calm the markets:<\/strong> Newly-appointed UK Chancellor Jeremy Hunt is reversing the vast majority of his predecessor\u2019s proposed tax cuts and cutting energy subsidies, as the country looks to stymie a meltdown in its markets and currency. The announcement led to a market rally and a jump in the GBP against the USD. The story is on the front pages of the Financial Times<\/a>, Reuters<\/a>, CNBC<\/a>, and the Wall Street Journal<\/a>.<\/p>\n

HAPPENING NOW- <\/strong><\/p>\n

EGX boss Rami El Dokany is currently heading to the UAE to kick off a roadshow <\/strong> in Dubai and Abu Dhabi<\/strong> aimed<\/strong> at drumming up interest in EGX-listed companies<\/strong>, an EGX source told Enterprise. The bourse has tapped Al Ahly Pharos to help manage the roadshow, which is set to see El Dokany meet with as many as 100 regional and international financial institutions, the source said.<\/p>\n

Supreme Council for Vehicle Manufacturing gets preliminary House nod:<\/strong> The House of Representatives\u2019 general assembly gave preliminary approval to a draft bill<\/a> that would establish the Supreme Council for Vehicle Manufacturing, which would act as a regulatory body setting policies for EV assembly in Egypt, Al Mal<\/a> reports. The draft bill would, if passed, also set up a new EV finance fund in a bid to localize the industry.<\/p>\n

House speaker invites CBE, AgriMin to discuss poultry feed crisis:<\/strong> House Speaker Hanafi Gebali invited representatives from the Central Bank of Egypt, Agriculture Ministry, and other relevant ministries to attend a House Agriculture Committee meeting tomorrow on the poultry feed shortage<\/a>, according to Al Mal<\/a>.<\/p>\n

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** CATCH UP QUICK<\/strong> on the top stories from today\u2019s EnterpriseAM<\/strong>:<\/p>\n