{"id":596159,"date":"2019-08-20T04:00:44","date_gmt":"2019-08-20T04:00:44","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/08\/20\/what-were-tracking-on-20-august-2019\/"},"modified":"2019-08-20T04:00:44","modified_gmt":"2019-08-20T04:00:44","slug":"what-were-tracking-on-20-august-2019","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/08\/20\/what-were-tracking-on-20-august-2019\/","title":{"rendered":"What we\u2019re tracking on 20 August 2019"},"content":{"rendered":"<p><b>We\u2019re just two days away from the Central Bank of Egypt\u2019s Monetary Policy Committee meeting.<\/b> The general consensus among economists we polled in <a href=\"https:\/\/enterprise.press\/stories\/2019\/08\/18\/enterprise-poll-cbe-could-cut-interest-rates-on-thursday\/\">our survey this week<\/a> is that the MPC will push ahead with the first rate cut since February, with most anticipating a 100 bps cut.<\/p>\n<p><b>Naeem Holdings\u2019 Yara El Kahky is among those who see the MPC keeping rates on hold for now.<\/b> \u201cWe are adopting a conservative point of view that they want to assure that any inflationary pressures are contained in the August reading,\u201d she said. Naeem expects the MPC to make 100-300 bps worth of rate cuts between September and December.<\/p>\n<p><b>The Central Bank of Egypt sold EUR 610 mn worth of one-year euro-denominated treasury bills yesterday,<\/b> <a href=\"https:\/\/www.cbe.org.eg\/en\/Auctions\/Pages\/AuctionsEURTBills.aspx\">according to official data<\/a>. The t-bills were sold at an average yield of 1.49%.<\/p>\n<p><b>A delegation from the World Bank <\/b><a href=\"https:\/\/almalnews.com\/%d9%82%d8%b7%d8%a7%d8%b9-%d8%a7%d9%84%d9%86%d9%82%d9%84-%d8%a7%d9%84%d8%a8%d8%ad%d8%b1%d9%8a-%d9%8a%d8%b3%d8%aa%d9%82%d8%a8%d9%84-%d9%88%d9%81%d8%af-%d8%a7%d9%84%d8%a8%d9%86%d9%83-%d8%a7%d9%84%d8%af\/\"><b>is in town<\/b><\/a><b> today <\/b>to visit several Egyptian ports to take note of the ports\u2019 financing needs to improve infrastructure and its naval fleets.<\/p>\n<p><b>PSA-<\/b> The Financial Regulatory Authority <a href=\"https:\/\/ent.news\/2019\/8\/2294.pdf\">published a guide (pdf)<\/a> on the rules and regulations governing companies under the Capital Markets Act.<\/p>\n<p class=\"web-image\"><a href=\"https:\/\/www.wsj.com\/articles\/global-stocks-jump-to-start-the-week-11566201668\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2019\/8\/1477.png?ssl=1\"><\/a><\/p>\n<p><a class=\"content-anchor\" id=\"tldr-story-06\"><\/a> <b>US bank and tech stocks rose at the beginning of the trading week yesterday<\/b>, helping the Dow Jones, S&P 500, and Nasdaq recoup some of <a href=\"https:\/\/enterprise.press\/stories\/2019\/08\/15\/us-recession-indicator-flashes-red-as-weak-economic-data-triggers-global-stock-sell-off\/\">last week\u2019s losses<\/a>, according to <a href=\"https:\/\/www.wsj.com\/articles\/global-stocks-jump-to-start-the-week-11566201668\">the Wall Street Journal<\/a>. Shares breathed a sigh of relief as the Trump administration signaled it is working on a new round of trade talks with Beijing, and expectations grow for a rate cut at next month\u2019s Federal Reserve meeting. Bond yields also rebounded from recent lows. The yield on US 10-year bonds rose to 1.598% yesterday from 1.540% Friday.<\/p>\n<p><b>The continuing strength of the USD looks set to \u201cdeepen an emerging markets selloff\u201d<\/b> and send commodity prices soaring, <a href=\"https:\/\/www.wsj.com\/articles\/dollar-towers-above-rivals-posing-fresh-threats-to-financial-markets-11566126002\">the WSJ says<\/a>. The greenback is defying the odds and has kept rising this year, with <a href=\"https:\/\/www.theice.com\/products\/194\/US-Dollar-Index-Futures\">the USDX<\/a> up nearly 11% from its 2018 lows. This makes it more expensive for countries to service USD-denominated debt, which stood at USD 6.4 tn at the end of 1Q2019, compared to USD 2.7 tn a decade ago, according to the Institute of International Finance.<\/p>\n<p><b>German recession likely -Bundesbank:<\/b> Germany is likely to enter a recession in the third quarter amid a slump in exports and industrial output, the country\u2019s central bank <a href=\"https:\/\/www.bundesbank.de\/en\/tasks\/topics\/monthly-report-industry-and-exports-responsible-for-economic-slowdown-803942\">said yesterday<\/a>. Bundesbank economists wrote in the bank\u2019s monthly update that the economy could continue to decline for the second consecutive quarter in 3Q, warning that there are currently no signs of an end to the industrial slump. \u201cThis could also gradually start to weigh on a number of services sectors,\u201d they wrote. Data <a href=\"https:\/\/enterprise.press\/stories\/2019\/08\/15\/us-recession-indicator-flashes-red-as-weak-economic-data-triggers-global-stock-sell-off\/\">last week showed<\/a> that output fell by 0.1% in 2Q.<\/p>\n<p><b>But the US may be off the hook this time: <\/b>Strong retail performance, monetary easing, and a robust services sector are all reasons why the US should avoid a recession next year despite the recent equity sell-off and the yield curve inverting, analysts have said, <a href=\"https:\/\/www.cnbc.com\/2019\/08\/19\/caution-is-warranted-but-us-should-avoid-a-recession-economists-say.html\">according to CNBC<\/a>. An inverted yield curve, coupled with slowing global growth, have increased market jitters over a possible recession. But economists note that the fundamentals remain strong, and have cast doubt on the reliability of the yield curve for predicting recessions. \u201cThe curve inversion might be more an indicator of extreme market nervousness at present, of increasing central banks action, skewed bond ownership, and of global search for yield, rather than a sure sign that US is about to enter a recession,\u201d JPMorgan equity strategist Mislav Matejka wrote in a note yesterday.<\/p>\n<p><b>Crude oil futures rose 2.2% to trade above USD 56 a barrel<\/b>, as a <a href=\"https:\/\/enterprise.press\/stories\/2019\/08\/18\/what-were-tracking-on-18-august-2019\/\">Houthi rebel drone attack<\/a> on Saudi Arabia\u2019s Shaybah oilfield tapped into market fears over supply risks. Meanwhile, a lull in US-China trade tensions is giving a push to oil and other risk assets, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-08-18\/oil-holds-gains-after-drone-attack-fails-to-disrupt-saudi-output?srnd=premium-middle-east\">Bloomberg reports<\/a>.<\/p>\n<hr class=\"grey-line\">\n<p><b>CEOs look to redefine the purpose of a corporation:<\/b> CEOs from almost 200 US companies have indicated that the emphasis on shareholder value may be a thing of the past. <a href=\"https:\/\/www.businessroundtable.org\/\">The Business Roundtable<\/a> \u2014 a pro-business lobbying group comprised of executives from some of the biggest US corporations \u2014 <a href=\"https:\/\/pbs.twimg.com\/media\/ECU-7_7WwAYRklV.png\">pledged in a statement<\/a> yesterday to \u201cdeliver value\u201d to all stakeholders, including employees, suppliers and wider society, rather than just shareholders. \u201cWhile each of our individual companies serves its own corporate purpose, we share a fundamental commitment to all our stakeholders,\u201d the group said, committing to invest in employees, fairly treat suppliers, and protect the environment.<\/p>\n<p class=\"web-image\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2019\/1\/1567.jpg?ssl=1\"><\/p>\n<p><b>Crypto giant plans to rival Zuck\u2019s Libra: <\/b>The world\u2019s largest cryptocurrency exchange Binance is planning to compete with Facebook\u2019s Libra by launching its own \u201cregional version of Libra,\u201d Venus, <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-08-19\/crypto-platform-behemoth-binance-plans-rival-to-facebook-s-libra?srnd=premium-middle-east\">Bloomberg reports<\/a>, citing a <a href=\"https:\/\/binance.zendesk.com\/hc\/zh-cn\/articles\/360032604131\">Chinese statement<\/a> on Binance\u2019s website. The Malta-based company is looking to partner with governments and other key players on its \u201copen blockchain project,\u201d which it says is intended to \u201cempower developed and developing countries to spur new currencies.\u201d<\/p>\n<p class=\"web-image\"><img data-recalc-dims=\"1\" decoding=\"async\" src=\"https:\/\/i0.wp.com\/ent.news\/2019\/8\/96.jpg?ssl=1\"><\/p>\n<p><b>Apple is upping its game in the streaming war: <\/b>Apple will spend USD 6 bn to produce original TV shows and movies as it looks to compete with Netflix, Amazon, HBO and Disney, <a href=\"https:\/\/www.ft.com\/content\/4f7f4326-c2bf-11e9-a8e9-296ca66511c9\">sources tell the FT<\/a>. This is a significant budget increase from the USD 1 bn initially allocated for the company\u2019s foray into TV, but still well below the USD 15 bn Netflix is spending this year. Apple\u2019s TV+ subscription service is set to launch in the next two months, but has not yet revealed details on pricing or content.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We\u2019re just two days away from the Central Bank of Egypt\u2019s Monetary Policy Committee meeting. The general consensus among economists we polled in our survey this week is that the MPC will push ahead with the first rate cut since February, with most anticipating a 100 bps cut. Naeem Holdings\u2019 Yara El Kahky is among [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7204],"tags":[271,344,72,647,119,76,183,2403,349,724,343,74,321],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-596159","post","type-post","status-publish","format-standard","hentry","category-what-were-tracking-today","tag-central-bank-of-egypt","tag-cryptocurrency","tag-enterpriseam","tag-facebook","tag-financial-markets","tag-financial-regulatory-authority","tag-fintech","tag-global-economy","tag-interest-rates","tag-monetary-policy","tag-regulation","tag-what-were-tracking-today","tag-world-bank","wpautop","entry"],"acf":{"mongo_id":"3aa33bba-c6b4-4628-b009-86bf05099b68","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[596157],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What we\u2019re tracking on 20 August 2019 - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2019\/08\/20\/what-were-tracking-on-20-august-2019\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What we\u2019re tracking on 20 August 2019\" \/>\n<meta property=\"og:description\" content=\"We\u2019re just two days away from the Central Bank of Egypt\u2019s Monetary Policy Committee meeting. 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The data vendor arm of the ratings agency said that easing inflation and the two consecutive rate cuts in the US will encourage the\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":595490,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/29\/central-bank-of-egypt-cuts-rates-by-100-bps-in-line-with-expectations\/","url_meta":{"origin":596159,"position":1},"title":"Central Bank of Egypt cuts rates by 100 bps, in line with expectations","author":"enterpriseam admin","date":"29 September 2019","format":false,"excerpt":"In line with expectations, CBE cuts rates: The Central Bank of Egypt\u2019s Monetary Policy Committee (MPC) cut interest rates by 100 bps on Thursday, the CBE said in a statement (pdf). The central bank cited last month\u2019s inflation figures, which hit a six-year low, as well as declining unemployment and\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/11\/1115.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":632462,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/02\/12\/what-were-tracking-this-week-59\/","url_meta":{"origin":596159,"position":2},"title":"What we\u2019re tracking this week","author":"enterpriseam admin","date":"12 February 2018","format":false,"excerpt":"It\u2019s interest rate week, and the folks on the sell side aren\u2019t so certain we\u2019ll see a rate cut: The central bank\u2019s Monetary Policy Committee meets on Thursday to review rates.Our friends at Pharos think the MPC is most likely to maintain rates, but if a cut does come, it\u2026","rel":"","context":"In &quot;What We\u2019re Tracking This Week&quot;","block_context":{"text":"What We\u2019re Tracking This Week","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-this-week\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":548701,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/08\/18\/this-morning-what-will-happen-at-todays-monetary-policy-committee-meeting-now-that-amer-has-resigned\/","url_meta":{"origin":596159,"position":3},"title":"THIS MORNING: What will happen at today\u2019s Monetary Policy Committee meeting now that Amer has resigned?","author":"enterpriseam admin","date":"18 August 2022","format":false,"excerpt":"Good morning wonderful people, and welcome to a fantastic Thursday morning dominated by one big story: Who will be the next governor of the Central Bank of Egypt?Whoever it is, the odds are good we\u2019re going to be in safe hands: Egypt has a very deep bench of talented bankers\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":668262,"url":"https:\/\/enterpriseam.com\/egypt\/2025\/07\/13\/cbe-holds-interest-rates-steady-2\/","url_meta":{"origin":596159,"position":4},"title":"CBE holds interest rates steady","author":"enterpriseam admin","date":"13 July 2025","format":false,"excerpt":"The central bank will be monitoring inflation risks and the impact of recent VAT amendments","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2025\/5\/1944.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":628722,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/13\/headline-inflation-drops-as-core-inflation-inches-up-slightly-in-april\/","url_meta":{"origin":596159,"position":5},"title":"Headline inflation drops as core inflation inches up slightly in April","author":"enterpriseam admin","date":"13 May 2018","format":false,"excerpt":"It\u2019s also interest rate week, ladies and gentlemen. And in advance of that: Headline inflation drops, core inflation up fractionally in April. Annual headline inflation rates dropped to 13.1% in April from 13.3% the month before, the central bank announced yesterday. Core inflation for the month inchedwas up fractionally at\u2026","rel":"","context":"In &quot;What We're Tracking Today&quot;","block_context":{"text":"What We're Tracking Today","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-today\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2018\/5\/2978.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/596159","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=596159"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/596159\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/596157"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=596159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=596159"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=596159"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=596159"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=596159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}