{"id":557563,"date":"2021-09-23T03:52:57","date_gmt":"2021-09-23T03:52:57","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/23\/this-morning-fed-taper-in-november-rate-hikes-in-2022-markets-rebound-biden-natsec-adviser-sullivan-to-visit-cairo-next-week-egypt-to-host-2022-ministerial-gas-forum\/"},"modified":"2021-09-23T03:52:57","modified_gmt":"2021-09-23T03:52:57","slug":"this-morning-fed-taper-in-november-rate-hikes-in-2022-markets-rebound-biden-natsec-adviser-sullivan-to-visit-cairo-next-week-egypt-to-host-2022-ministerial-gas-forum","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/23\/this-morning-fed-taper-in-november-rate-hikes-in-2022-markets-rebound-biden-natsec-adviser-sullivan-to-visit-cairo-next-week-egypt-to-host-2022-ministerial-gas-forum\/","title":{"rendered":"THIS MORNING: Fed taper in November + rate hikes in 2022; Markets rebound; Biden NatSec adviser Sullivan to visit Cairo next week; Egypt to host 2022 Ministerial Gas Forum."},"content":{"rendered":"

Well, friends, we\u2019ve nearly made it through another workweek together<\/strong>, and our reward is another very busy news morning, with everything from M&A to taxation in the spotlight \u2014 and the promise of very nice weekend weather ahead.<\/p>\n

Tax: <\/strong>Domestic investors in the EGX (international shareholders are exempt) will want to pay really close attention to our story on the capital gains tax \u2014 it\u2019s coming into effect on 1 January. Also big is news that the state is piloting its business-to-consumer e-invoicing system, which will eventually require all retailers to report sales in real-time to the taxman.<\/p>\n

M&A: <\/strong>A so-far unconfirmed report suggests Saudi\u2019s STC is lining up financing to make another run at Vodafone Egypt. Vodafone and (large) minority shareholder Telecom Egypt deny talks are back on.<\/p>\n

We have chapter and verse on all of this and more below.<\/p>\n

<\/a> Fed taper in November + rate hikes in 2022:<\/strong> Federal Reserve boss Jerome Powell said that the central bank could begin unwinding its huge bond-buying programme in November, while policymakers signalled that they could move to raise interest rates next year. Speaking at the end of the central bank\u2019s two-day policy meeting yesterday, Powell said that an announcement \u201ccould come as soon as the next meeting,\u201d which will take place on 2-3 November.<\/p>\n

This is what most economists were forecasting:<\/strong> Recent polls<\/a> have shown a majority of economists think the Fed will start to reduce its USD 120 bn a month in asset purchases before the end of the year, and start to raise interest rates next year.<\/p>\n

Any rate hikes will be gradual:<\/strong> With its benchmark overnight rate currently at near-zero, the Fed is not expected to raise rates to 1% until 2023 and then 1.8% in 2014.<\/p>\n

Markets celebrate:<\/strong> The Fed meeting boosted shares in the US, where all three major indexes saw gains following several days of Evergrande-fuelled volatility. The S&P 500, Nasdaq and Dow Jones all gained 1% during yesterday\u2019s trading session, despite the hawkish tone. \u201cGiven the recent volatility, it\u2019s likely that investors are viewing the taper projection and potential 2022 rate hikes as a vote of confidence that the recovery is on track,\u201d one strategist told Bloomberg<\/a>.<\/p>\n

And the good news over at Evergrande yesterday is fuelling a rebound in <\/strong>commodities:<\/strong> A Bloomberg index of 23 commodities ended four days of declines to rise 1.4% yesterday as investors\u2019 concerns about a default at China\u2019s second-largest real estate firm abated, Bloomberg<\/a> says.<\/p>\n

The story is everywhere in the global business press this morning:<\/strong> Reuters<\/a> | Bloomberg<\/a> | FT<\/a> | Wall Street Journal<\/a>.<\/p>\n

Evergrande avoided default yesterday<\/strong> after striking an agreement with its creditors to delay an interest payment, and its shares surged in trading earlier today as the company\u2019s chairman tried to reassure investors<\/a>. But the FT is warning that it\u2019s not done and dusted<\/strong>, writing that \u201cdeepening worries over Evergrande have ignited selling in a USD 428 bn corner of the Asian debt market, underscoring how the crisis at the Chinese property developer is spreading to other assets.\u201d The salmon-colored paper says to keep an eye on a \u201ccrucial payment deadline\u201d later today.<\/p>\n

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French envoy to return to Washington after Biden call smooths over submarine row: <\/strong>French President Emmanuel Macron will send his US ambassador back to Washington, according to a joint French-US statement<\/a>, after US President Joe Biden on Wednesday called to soothe French anger over the signing of the Indo-Pacific \u201cAukus\u201d pact between the US, Australia and the UK. Biden struck a conciliatory tone in the statement, appearing to admit that Paris should have been kept in the loop on the pact, which earlier this week saw Australia dump a longstanding agreement to buy French submarines in favor of new nuclear subs from the US and UK.<\/p>\n

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

Egypt will host the 2022 Ministerial Gas Forum: <\/strong>Organized by the International Energy Forum and the International Gas Union (IEF-IGU), the event will take place in Egypt during the second half of 2022, and will have on its agenda the post-covid economic recovery, the current surge in natgas prices, and climate change, the IEF said in a statement<\/a> yesterday.<\/p>\n

And we will also play host to the AfdDB\u2019s annual meeting in 2023:<\/strong> The African Development Bank\u2019s board has agreed that its five-day annual meeting will be held in Sharm El-Sheikh from 22 to 26 May 2023, the Central Bank of Egypt said in a statement (pdf)<\/a> yesterday<\/p>\n

It\u2019s Day 2 of the <\/strong>Cityscape real estate investment conference<\/a><\/strong> at the Egypt International <\/strong>Exhibition Center.<\/strong> The event runs until 25 September.<\/p>\n

** IN CASE YOU MISSED IT <\/strong>\u2014 top stories from yesterday\u2019s edition of EnterprisePM:<\/p>\n