{"id":595310,"date":"2019-09-23T04:27:49","date_gmt":"2019-09-23T04:27:49","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/23\/what-were-tracking-on-23-september-2019\/"},"modified":"2019-09-23T04:27:49","modified_gmt":"2019-09-23T04:27:49","slug":"what-were-tracking-on-23-september-2019","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/23\/what-were-tracking-on-23-september-2019\/","title":{"rendered":"What we\u2019re tracking on 23 September 2019"},"content":{"rendered":"

Let\u2019s get the bad news out of the way: It wasn\u2019t pretty on the EGX yesterday.<\/b> The EGX30 had its worst day since 2016, closing down 5.3% after tripping circuit breakers earlier in the day, as traders and investors reacted to protests over the weekend. The wider EGX100 fell nearly 5.7% during the day, its sharpest decline since 2012. We have chapter and verse in this morning\u2019s Speed Round, below.<\/p>\n

The protests also hit the radars of the talking heads<\/b> (see Last Night\u2019s Talk Shows, below) and continue to dominate coverage of Egypt in the international press (Egypt in the News, also below).<\/p>\n

The central bank\u2019s Monetary Policy Committee will meet on Thursday to review key interest rates.<\/b> Our poll showed on Sunday<\/a> that seven of the eight economists we surveyed expect the CBE will cut interest rates on the back of unexpectedly low inflation figures in August<\/a>. EFG Hermes expects a 50 bps cut, while Pharos, Beltone, HC, and Shuaa expect rates to go down by 100 bps. CI Capital sees room for a more aggressive 150 bps rate cut. Renaissance Capital was the sole dissenting voice, saying the CBE could hold off over a potential rise in September inflation figures. The MPC cut rates 150 bps at its last meeting in August, bringing the overnight deposit and lending rates to 14.25% and 15.25%, respectively.<\/p>\n

A handful of other emerging market central banks could also cut rates in the next few days<\/b>, including in the Philippines and Mexico, according to Bloomberg<\/a>. Brazil could also follow suit after its central bank suggested it could pursue \u201ca longer and deeper monetary easing cycle,\u201d while Colombia, Kenya, and Angola are not expected to join in on the global rate-cutting parade.<\/p>\n

EMs have fared well despite market volatility in recent weeks:<\/b> The outlook for emerging markets is looking good so far as \u201cglobal central bank accommodation\u201d is expected to override concerns that growth is lagging globally, says the news information service<\/a>. Developing nations have managed to more or less weather the storm over the past few weeks caused by trade tensions, soaring oil prices, and the \u201cthe US Federal Reserve having possibly reached the limits of its dovishness.\u201d<\/p>\n

President Abdel Fattah El Sisi is still in New York for the United Nations General Assembly high-level meetings<\/b>, which get underway tomorrow and wrap a week from today. We have a rundown the talks he has held so far in this morning\u2019s Diplomacy + Foreign Trade section, below.<\/p>\n

CIT Minister Amr Talaat is in Paris today<\/b>, where he will talk with French officials about cooperation on artificial intelligence, the ministry said in a statement<\/a>. The visit wraps up on Wednesday, 25 September.<\/p>\n

Conference season continues this week:<\/p>\n