{"id":564039,"date":"2021-08-04T13:39:44","date_gmt":"2021-08-04T13:39:44","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/04\/tonight-interest-rate-day-tomorrow-global-shares-hit-record-high-a-year-since-beirut-blast-wrestler-kicho-comes-through-with-bronze-medal-for-egypt-pirates-of-the-gulf\/"},"modified":"2021-08-04T13:39:44","modified_gmt":"2021-08-04T13:39:44","slug":"tonight-interest-rate-day-tomorrow-global-shares-hit-record-high-a-year-since-beirut-blast-wrestler-kicho-comes-through-with-bronze-medal-for-egypt-pirates-of-the-gulf","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2021\/08\/04\/tonight-interest-rate-day-tomorrow-global-shares-hit-record-high-a-year-since-beirut-blast-wrestler-kicho-comes-through-with-bronze-medal-for-egypt-pirates-of-the-gulf\/","title":{"rendered":"TONIGHT: Interest rate day tomorrow; Global shares hit record high; A year since Beirut blast; Wrestler Kicho comes through with bronze medal for Egypt; Pirates of the Gulf."},"content":{"rendered":"

Good afternoon, ladies and gents<\/strong>, and welcome to this week\u2019s penultimate PM edition. This time next week we\u2019ll be closing out a day early thanks to Islamic New Year.<\/p>\n

It\u2019s interest rate day tomorrow:<\/strong> It\u2019s the big day at CBE HQ tomorrow as the Monetary Policy Committee meets to review interest rates. Analysts we talked to last week<\/a> are convinced that our central bankers are going to play it safe and leave rates unchanged until at least next month. The potential for a pick-up in inflation in the coming months and a need to maintain Egypt\u2019s world-beating real rates will mean that the central bank\u2019s easing cycle remains on hold, according to our poll.<\/p>\n

THE BIG NEWS THIS AFTERNOON-<\/strong> Only regulatory approvals now separate Vodafone Egypt from getting its hands on 20% stakes in Ebtikar\u2019s e-payments platforms Bee and Masary after the telecoms giant wrapped up due diligence. Meanwhile, a EGP 1 bn bond issuance could help Mercedes\u2019 local partner enter the EV market, US manufacturing giant HB Fuller has announced a new facility in Sixth of October, and in the last hour we received July\u2019s foreign reserves figures courtesy of the central bank, showing that the nation\u2019s stockpile continued to inch up last month. All that and more in this afternoon\u2019s Speed Round section, below.<\/p>\n

HAPPENING NOW- <\/strong>It\u2019s the final day for the Africa Food Manufacturing<\/a> exhibition at the Egypt International Exhibition Center.<\/p>\n

DRIVING THE GLOBAL BUSINESS NEWS AGENDA THIS AFTERNOON-<\/strong><\/p>\n

<\/a> Global shares hit record highs in trading today<\/strong>, backed by strong corporate earnings that have buoyed equity markets, according to Reuters<\/a>. The MSCI World index was up 0.2%, while the equivalent index in Asia gained 0.9%, excluding Japan. Markets were also sunny in Europe, with the Stoxx Europe 600 and FTSE 100 both up 0.5%-0.6%.<\/p>\n

Markets in the world\u2019s biggest economy weren\u2019t quite so optimistic<\/strong>, however, as American investors wait on some big announcements, including employment data that could help determine when the Federal Reserve decides to turn off the liquidity taps. US equity futures were marginally in the green ahead of dispatch time while the USD hovered 0.1% up against a basket of currencies.<\/p>\n

Will Biden stick with Powell at the Fed? <\/strong>The majority of Fed watchers are expecting US President Joe Biden to stick with Jerome Powell as the Fed chair for another four years. Biden is expected to make a decision next month on whether Powell, whose first stint expires next February, will stay on for another term. Tradition \u2014 which Donald Trump broke with back when he nominated Powell in 2018 \u2014 dictates that an incoming president does not switch out a Fed head appointed by their predecessor, and if Biden bucks the trend for another pick, he risks scaring the markets, Bloomberg<\/a> suggests.<\/p>\n

Who\u2019s the most likely alternative?<\/strong> Lael Brainard, seven-year Fed board member and favored candidate of progressives, is reportedly the leader to replace Powell should Biden give him the boot. A Brainard pick, who this week drew a line in the sand<\/a> by coming out in favor of tighter regulations and a digital USD, wouldn\u2019t be greeted favorably by markets, who worry about greater market controls.<\/p>\n

The \u201cNasdaq Whale\u201d resurfaces: <\/strong>SoftBank has bought a USD 5 bn stake in Swiss pharma firm Roche, sources close to the transaction told the Financial Times<\/a>. The acquisition was led by Akshey Naheta, head of the SoftBank unit that was roundly criticized after it was revealed to be the \u201cNasdaq whale\u201d behind a series of huge derivatives trades<\/a> that stoked last year\u2019s tech rally and lost the company bns of USD.<\/p>\n

THE BIG STORIES IN THE REGION-<\/strong><\/p>\n

It's been a year since the tragic Beirut port blast<\/strong> that shook the country as it undergoes a devastating economic crisis.<\/p>\n

President Abdel Fattah El Sisi is joining a donor conference being organized by French President Emmanuel Macron<\/strong>, which is seeking toraise USD 350 mn<\/a> in aid for Lebanon. El Sisi said that Lebanon would \u201crise from the current setback\u201d and regain its standing as a beacon of culture, art, and thought, according to an Ittihadiya statement<\/a>.<\/p>\n

The story is getting a lot of attention in the foreign press<\/strong>: France 24<\/a> | AP<\/a> | New York Times<\/a> | CNN<\/a>.<\/p>\n

Another maritime incident is apparently unfolding in the Gulf<\/strong>, as a merchant vessel has<\/a>been reported safe<\/a> after it was boarded by suspected hijackers off the UAE coast yesterday. A British Royal Navy body that monitors Gulf maritime operations described the possible hijack as \u201ccomplete\u201d based on information from a third party, without giving further details.<\/p>\n

Plenty about this apparent attack remains murky, including the identity of the vessel and the hijackers<\/strong>. UK and US officials declined to confirm reports that the attack was carried out on the asphalt\/bitumen carrier Asphalt Princess<\/a>, and said investigations were at too early a stage to identify the \u201cboarders.\u201d The US Navy on Tuesday sent a ship to monitor the situation.<\/p>\n

While governments have so far held back on officially naming the culprits, fingers are <\/strong>inevitably pointing to Iran<\/a><\/strong>, afterit was blamed<\/a>for last week\u2019s drone strike on an Israeli-owned oil tanker in the Persian Gulf in which two people were killed. Iran\u2019s foreign ministry said it was \u201csuspicious\u201d about the recent spate of Gulf shipping incidents, while the Revolutionary Guards denied involvement. The escalating Gulf tensions come as Iran this week saw its new president sworn in, and the attempted revival of the US-Iran nuclear pact struggles on.<\/p>\n

YOUR DAILY DOSE OF COVID NEWS- <\/strong>The delta variant is continuing to cause problems in Asia:<\/strong><\/p>\n