{"id":604024,"date":"2023-08-24T00:00:00","date_gmt":"2023-08-24T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/24\/brics-close-to-agreement-on-inviting-new-members-as-madbouly-lands-at-the-summit\/"},"modified":"2023-08-24T00:00:00","modified_gmt":"2023-08-24T00:00:00","slug":"brics-close-to-agreement-on-inviting-new-members-as-madbouly-lands-at-the-summit","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/08\/24\/brics-close-to-agreement-on-inviting-new-members-as-madbouly-lands-at-the-summit\/","title":{"rendered":"Brics close to agreement on inviting new members as Madbouly lands at the summit"},"content":{"rendered":"

Good morning, friends, and a very happy THURSDAY to you all. <\/strong>No single theme runs through today\u2019s issue, though we note with interest news that we might be able to import more Israeli gas \u2014 and that there is progress on the megaproject that is the redevelopment of the former NDP\u2019s downtown HQ. <\/p>\n

It\u2019s the next-to-last weekend of summer <\/strong>here in Egypt. With more private international schools set to open their doors next week and the week after, we expect to hit \u201cpeak Sahel\u201d this weekend. Leave early today if you can, and drive safely.<\/p>\n

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

<\/a> Madbouly in Joburg for the Brics summit: <\/strong>Prime Minister Moustafa Madbouly arrived in South Africa yesterday to attend the Brics summit on behalf of President Abdel Fattah El Sisi, according to a a cabinet statement<\/a>. Madbouly is expected to deliver remarks today as well as participate in a number of official events.<\/p>\n

A roadmap for expansion is close: <\/strong> The leaders of Brazil, Russia, India, China and South Africa are reportedly close to an agreement about inviting new member countries to join the bloc, according to Reuters<\/a>. The five countries were expected to sign a final pact yesterday after South Africa's foreign minister announced an agreement had been reached, but sources tell the newswire that Indian Prime Minister Narandra Modi made a last-minute demand to change the criteria for entry. Talks continue.<\/p>\n

This is potentially important for Egypt: <\/strong> Egypt is among the 20+ countries that have formally applied to join the organization<\/a>, a move that could \u2014 in the longer term \u2014 allow it to temper its reliance on the USD for trade and open the door to new sources of investment.<\/p>\n

The door to the NDB will remain closed \u2014 for now: <\/strong> The Brics\u2019 multilateral lender, the New Development Bank, will not be welcoming any new members during the summit, the bank\u2019sCFO, Leslie Maasdorp, told Reuters<\/a> yesterday. The bank\u2019s members are considering the entry of at least another 15 countries, including Saudi Arabia, Algeria, and Argentina, he said.<\/p>\n

SOUND SMART- <\/strong>The NDB is a multilateral development bank set up in 2014 by the Brics to fund infrastructure projects in its member countries. Egypt earlier this year became an NBD member country<\/a>.<\/p>\n

The EIB is concerned about the growing multipolarity: <\/strong> President of the European Investment Bank Werner Hoyer has voiced concern about developing nations\u2019 growing interest in non-Western lenders like the NDB and called on developed countries to do more to keep them in the orbit of Western financial institutions, according to Reuters<\/a>.<\/p>\n

\n

\n

<\/a> SMART POLICY- <\/strong> FRA invites applications for a new local credit <\/strong> rating agency: <\/strong>Companies have until 22 November to apply to set up a credit rating agency, with the Financial Regulatory Authority (FRA) set to award a license to just one of the firms, the regulator said<\/a> yesterday. The company that takes home the license will be scored on the basis of its involvement with or certification by international credit rating agencies, the makeup of its ownership structure, its level of compliance with international credit rating standards, and technical and feasibility studies. <\/p>\n

REMEMBER- The FRA wants more local rating agencies: <\/strong>The regulator last year made it<\/a> easier<\/a> for rating agencies to get operating licenses in Egypt by scrapping a requirement for them to be at least 10% owned by international firms. The country currently only has one credit rating agency, the Middle East Rating and Investors Service (MERIS).<\/p>\n

HAPPENING THIS WEEK- <\/strong><\/p>\n

<\/a> The financial markets will have their eyes on Wyoming today <\/strong> when global central bankers, economists and policymakers head to Jackson Hole for an annual meeting of central bank officials<\/a>. US Federal Reserve Chairman Jerome Powell\u2019s speech will be the headline event as investors try to gauge where interest rates are heading in the coming months. The event runs Thursday through Saturday. <\/p>\n

<\/a> Signs of stress in the US and European economies spark market rally: <\/strong> US and European stocks jumped yesterday on optimism that yesterday\u2019s disappointing economic data will push central banks to relent on their hawkish monetary policies. Stocks climbed their most since June and bond yields fell after flash PMI figures indicated that a contraction of private-sector activity in the eurozone intensified in August. In the US activity grew at its weakest rate since February. Investors hoping that a deterioration in economic activity will push the Federal Reserve and the European Central Bank to stop raising interest rates and bring forward plans to loosen policy.<\/p>\n

The rally is continuing in Asia this morning <\/strong> where it\u2019s a sea of green ahead of the Jackson Hole meet. Expect more of the same in the US and Europe later today.<\/p>\n

<\/p>\n

THE BIG STORIES ABROAD- <\/strong><\/p>\n

Putin\u2019s chef-turned-mutineer dies in plane crash: <\/strong> Yevgeny Prigozhin, the leader of the Wagner mercenary group who mounted a brief rebellion against the Russian defense ministry in June, has been presumed dead after a private jet he was on crashed outside of Moscow yesterday. (Associated Press<\/a> | Reuters<\/a> | Bloomberg<\/a> | Financial Times<\/a> | New York Times<\/a> | Washington Post<\/a> | Wall Street Journal<\/a> | CNBC<\/a>)<\/p>\n

US election 2024: <\/strong> US media has its eyes on the first debate in the Republican primary contest, which was just wrapping up as we prepped for dispatch. With Trump choosing to avoid the debate, the eight candidates will be vying to become the primary challenger to the former US president, who remains far ahead in the opinion polls. (Associated Press<\/a> | Reuters<\/a> | New York Times<\/a> | Washington Post<\/a> | Wall Street Journal<\/a>)<\/p>\n

Egyptian grain up in flames in Ukraine: <\/strong> Some 13k tons of grain headed to Egypt and Romania were destroyed in a Russian drone strike in the south of Ukraine yesterday, Ukraine\u2019s deputy prime minister, Oleksandr Kubrakov, said, according to Al Arabiya<\/a>. <\/p>\n

India\u2019s move to food protectionism continues: <\/strong>Indian government sources say thatNew Delhi will ban sugar exports in the upcoming season beginning October to cover local demand and tamp down on food inflation which is currently at a three year high 11.5%, according to Reuters<\/a>. This would be the latest food protectionist measure by India, which in recent weeks has banned the export of non-basmati white rice and a new tariff on onion exports.<\/p>\n

\n
\n
\n
\n

\n Get Enterprise<\/b> daily
\n <\/h4>\n<\/p><\/div>\n

The roundup of news and trends that move your markets and shape corporate agendas delivered straight to your inbox.<\/p>\n

Subscribe here<\/a>\n <\/div>\n<\/p><\/div>\n<\/div>\n

<\/a> <\/p>\n

CHECK OUT OUR AGENDA- <\/strong><\/p>\n

The Enterprise Finance Forum is taking place on 18-19 September at <\/strong> the St. Regis Hotel in Cairo. <\/strong> This flagship forum is the latest in our must-attend series of invitation-only, C-suite-level gatherings that allow senior members of our community to openly and frankly discuss critical issues in key sectors of the economy. <\/p>\n

This is our first two-day event<\/strong>,which should give us plenty of time to dive into the nitty gritty of this industry we love. Our panels will see CEOs, bankers, investors and founders gather to discuss the future and trends shaping banking, finance, fintech and NBFS. <\/p>\n

Our full agenda will be out at month\u2019s end. Among the topics we\u2019ll be discussing: <\/strong><\/p>\n