{"id":615034,"date":"2024-02-12T00:00:00","date_gmt":"2024-02-12T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2024\/02\/12\/philip-morris-raises-cigarette-prices-by-up-to-18\/"},"modified":"2024-02-12T00:00:00","modified_gmt":"2024-02-12T00:00:00","slug":"philip-morris-raises-cigarette-prices-by-up-to-18","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2024\/02\/12\/philip-morris-raises-cigarette-prices-by-up-to-18\/","title":{"rendered":"Philip Morris raises cigarette prices by up to 18%"},"content":{"rendered":"

Good morning, everyone. <\/strong>We have a relatively compact issue for you this morning, led by IMF Managing Director Kristalina Georgieva\u2019s comments on our IMF program. <\/p>\n

No float here:<\/strong> Our talks with the Fund have been about a more flexible exchange rate, but not a float of the EGP, Georgieva said. <\/p>\n

^^ We have the full story in the news well, below. <\/p>\n

<\/a> PSA- <\/strong>Your smokes just got pricier: <\/strong>Cigarette manufacturer Philip Morris has hiked the price of cigarettes by up to 18%, the company said in a press release (pdf)<\/a>. The price of a pack of Merit has risen 15% to EGP 85, while the L&M brand will now go for EGP 59 a pack, up 18%. Marlboro prices have increased 14-17%, with a standard pack priced at EGP 79 and a pack of Crafted at EGP 69. <\/p>\n

IQOS smokers haven\u2019t been spared: <\/strong>The company has also raised the price of its HEETS Selections, HEETS Dimensions, and TEREA products 14% to EGP 64.<\/p>\n

EGP WATCH-<\/p>\n

<\/a> Deval, rate hike incoming? <\/strong>JP Morgan expects the government to devalue the EGP to 45-50 against the USD, alongside raising rates by 200 bps, the bank wrote in a note on Friday. \u201cWe think the CBE will be looking to secure some FX inflows and engineer a lowering of the parallel market FX rate before considering a move to a managed float FX regime,\u201d the report said. JP Morgan sees the central bank cutting rates in 4Q 2024 \u201cas inflation is likely to ease, largely helped by base effects and a converging parallel rate\u201d after unifying the official and parallel exchange rates.<\/p>\n

More optimistic than other estimates: <\/strong>Oxford Economics sees the EGP falling<\/a> to 55-60 to the USD in banks by the end of the year if the central bank moves to a flexible exchange rate regime, while Bloomberg\u2019s chief emerging markets economist Ziad Daoud sees<\/a> the greenback officially changing hands at EGP 50 or more by the end of the year. Capital Economics is even less optimistic, seeing the EGP falling further to sit at 65 against the greenback. <\/p>\n

And in line with one: <\/strong>Societe Generale sees the government devaluing to 40-45 against the greenback, up from the current official rate of EGP 30.9.<\/p>\n

WAR WATCH- <\/p>\n

Another caution from Biden against civilian harm in Rafah: <\/strong>An Israeli invasion of Rafah should not happen without a \u201ccredible and executable\u201d plan to ensure the safety and support of those living there, US President Joe Biden told Israeli Prime Minister Benjamin Netanyahu in a phone call last night, according to a White House readout<\/a>. Biden last week called Israel\u2019s attack on Gaza \u201c over the top<\/a>.\u201d <\/p>\n

Israel is supposedly \u201cworking out a detailed plan\u201d to evacuate Rafah\u2019s civilians<\/strong>, Netanyahu told ABC News<\/a> in a televised interview, without offering further information on the plan. \u201cWe're going to get the remaining Hamas terrorist battalions in Rafah \u2026 We're going to do it while providing safe passage for the civilian population.\u201d<\/p>\n

Mahmoud Abbas is in Qatar: <\/strong>Palestinian President Mahmoud Abbas is due to meet Qatari Emir Sheikh Tamim bin Hamad Al Thani in Doha today to look into ways to halt the Israeli aggression in Gaza, Palestinian news agency WAFA<\/a> reported last night. It was not clear if other parties would be present. <\/p>\n

Remember: Cairo is hosting another round of ceasefire talks tomorrow<\/strong>, featuring Mossad chief David Barnea, the head Shin Bet, Ronen Bar, intelligence chief Abbas Kamel, Qatari Prime Minister Mohamed Bin Abdul Rahman Al Thani, and CIA head William Burns, the Jerusalem Post and Axios reported on Saturday, citing what they said are Israeli and US officials.<\/p>\n

Egypt once again expressed its \u201ccomplete rejection\u201d <\/strong>of Israel\u2019s plans to enter Rafah in a statement<\/a> yesterday, urging for a coordinated international and regional response to stop the invasion from going ahead. <\/p>\n

RED SEA WATCH-<\/p>\n

Vessels continue to avoid the Suez Canal: <\/strong>Some 60% of the ships usually passing through the Suez Canal have been opting for the route around South Africa's Cape of Good Hope in response to ongoing Red Sea disruptions, Al Arabiya<\/a> quotes International Maritime Organization (IMO) secretary-general Arsenio Dominguez as saying. <\/p>\n

By other metrics:<\/strong> Some 12.8 mn tons of goods passed through the canal in the first six days of February, a 33% m-o-m drop, according to data from the IMF\u2019s PortWatch<\/a>. <\/p>\n

HAPPENING TODAY- <\/p>\n

<\/a> Madbouly, Maait are in Dubai for the <\/strong>World Governments Summit<\/a><\/strong>: <\/strong>Prime<\/a>Minister Moustafa Madbouly<\/a> and Finance Minister Mohamed Maait<\/a> will be joining a large number of world leaders and decision makers, including IMF Managing Director Kristalina Georgieva, in the UAE to partake in the three-day World Governments Summit. The summit \u201cexplores the agenda of the next generation of governments, focusing on harnessing innovation and technology to solve universal challenges facing humanity.\u201d The summit kicks off today and wraps up on Wednesday. <\/p>\n

Panels to watch out for today: <\/strong>On the first of the summit, a number of Egyptian officials will be taking the stage. <\/p>\n