{"id":624959,"date":"2018-09-24T04:31:56","date_gmt":"2018-09-24T04:31:56","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/24\/what-were-tracking-on-24-september-2018\/"},"modified":"2018-09-24T04:31:56","modified_gmt":"2018-09-24T04:31:56","slug":"what-were-tracking-on-24-september-2018","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/09\/24\/what-were-tracking-on-24-september-2018\/","title":{"rendered":"What we\u2019re tracking on 24 September 2018"},"content":{"rendered":"

Yields on EGP-denominated short-term treasuries continue to rise<\/strong>, central bank data showed, according to Reuters\u2019 Arabic service<\/a>. An auction yesterday saw yields on 91-day bills rise to 19.62% from 19.43%, while yields at the nine-month auction rose to 19.84% from 19.75% previously. The Finance Ministry has called off three treasury bond auctions this month as a result of soaring yields amid a wider emerging market sell-off.<\/p>\n

The higher yields have not put a damper on Egypt\u2019s sale of debt instruments<\/strong>, Finance Minister Mohamed Maait tells Al Mal<\/a>. The call-off of three auctions is an indication that the state is not being forced to accept investors\u2019 demands for yields beyond \u201clogical limits,\u201d the minister said.<\/p>\n

UK Trade Envoy Sir Jeffrey Donaldson is in Cairo <\/strong>with a delegation of unnamed British companies eyeing investments in the finance, technology, education, health, and other \u201cfuture-focused\u201d sectors, according to a statement from the British Embassy in Cairo<\/a>. It\u2019s Donaldson\u2019s eighth visit to Egypt in two years. Sir Jeffrey will meet with the ministers of finance, public enterprises, health, oil, planning, and electricity while in town.<\/p>\n

El Sisi discusses EU migration pact? <\/strong>President Abdel Fattah El Sisi, in New York for the UN General Assembly, met yesterday with European Council President Donald Tusk and Austrian Chancellor Sebastian Kurz to discuss Egypt\u2019s efforts to stem illegal migration, according to an Ittihadiya statement<\/a>. The sit-down comes just days after Kurz nudged his EU counterparts to begin formal talks with Egypt on expanding cooperation on migration and potentially reaching a Turkey-style assistance pact, as we noted yesterday<\/a>. El Sisi also met yesterday with the UAE\u2019s foreign minister, according to an Ittihadiya statement<\/a>.<\/p>\n

The president is expected to meet with US President Donald Trump this week. <\/strong>The sit-down will be the first between the two presidents since El Sisi won a second term \u2014 and since the Trump administration normalized annual military aid to Egypt<\/a>. El Sisi is also expected to meet with US business leaders and to hold talks on the sidelines with German Chancellor Angela Merkel and French President Emmanuel Macron as well as with the leaders of Israel, Britain, France, South Korea and Japan. Foreign Minister Sameh Shoukry is also in New York<\/a> and has met with UNDP administrator Achim Steiner as well as his counterparts<\/a> from Saudi Arabia, the UAE and Kuwait.<\/p>\n

<\/a> **#3<\/strong> You are forewarned: The House is due back in session next week.<\/strong> President Abdel Fattah El Sisi issued yesterday a decree calling the House of Representatives back into session for its fall term on Tuesday, 2 October at 10am, Ahram Gate reports<\/a>. The House is looking at a stacked legislative agenda for its fourth session, but will prioritize the Local Administration Act, Criminal Procedures Act, and the new Social Security and Pensions Act, spokesman Salah Hasaballah said yesterday, according to Al Shorouk<\/a>.<\/p>\n

House Speaker Ali Abdel Aal is celebrating his final days of freedom with a jaunt to Ireland<\/strong>,where he will meet with Irish legislators, reports Ahram Gate<\/a>.<\/p>\n

<\/a> **#2<\/strong> Actis has apparently landed the right to manage Abraaj\u2019s Africa funds<\/strong>, the Financial Times<\/a> claims, citing an email sent to Abraaj staff that reportedly says liquidators chose the EM private equity specialist<\/a> because of the \u201clevel of on the ground diligence undertaken, flexibility in their approach and immediate working capital support.\u201d Colony Capital<\/strong> is apparently in line to take over Abraaj\u2019s Latin American funds, while Canada\u2019s Brookfield Asset Management<\/strong> could take the Turkish fund and Abu Dhabi Financial Group <\/strong>is still gunning for \u201clegacy\u201d Mideast assets. \u201cThe liquidators\u2019 attempts to sell Abraaj Investment Management Limited, the group\u2019s funds platform, have floundered amid resistance from investors,\u201d the FT adds, noting that, \u201cActis could become a sub-manager for a broader range of Abraaj funds<\/strong> on behalf of investors pending the completion of due diligence, people aware of the matter said. Liquidators are finalising documentation before limited partners (LPs), the fund investors, are asked to approve the transfer of the management rights away from Abraaj.\u201d<\/p>\n

You know (of) Actis even if you\u2019re not in PE.<\/strong> The company\u2019s North African investments include LSE-traded, Cairo-headquartered consumer healthcare multinational IDH<\/strong>. Former portfolio companies include snackfoods giant Edita<\/strong>, fast-food chain Mo\u2019men<\/strong> and halawa and tahina maker Rashidi El Mizan<\/strong>. You can explore Actis\u2019 portfolio here<\/a>.<\/p>\n

\u201cNew\u201d OPIC could have USD 60 bn lending ceiling to counter Chinese \u201ceconomic warfare\u201d: <\/strong>Readers will recall we have previously noted<\/a> the Trump administration intends to beef up OPIC, the US Overseas Private Investment Corporation, a development finance agency it now sees as crucial to a \u201ccommercial diplomacy\u201d bid to outgun China. The Financial Times<\/a> is now back on the story, quoting OPIC\u2019s president and CEO as saying that the new agency will be able to \u201cinvest up to USD 60 bn in the developing world in an effort to counter what some in Washington describe as China\u2019s use of debt to wage \u2018economic warfare.\u2019\u201d Legislation to create the proposed International Development Finance Corporation <\/strong>has reportedly been \u201csold to the president.\u201d Backers hope the so-called Build Act (Better Utilization of Investments Leading to Development), which passed the US House of Representatives in August, will pass the Senate before midterm elections in November.<\/p>\n

Should you care?<\/strong> Only if you run a bank or need to close and infrastructure project and could use a few extra bn in financing. OPIC<\/a> has previously backed or proposed backing Qalaa Holdings (back in 2011)<\/a>, oil and gas player Apache<\/a>, CIB<\/a>, Carbon Holdings\u2019 Tahrir Petrochemicals Corporation<\/a> and microfinance players<\/a>, among others.<\/p>\n

Expect oil at around USD 80 for a while to come. <\/strong>Crude inched up again yesterday as Washington prepares to implement new sanctions on Iranian oil as early as next week, Reuters reports<\/a>. \u201cOPEC producers largely agree that oil prices above USD 80 a barrel would be too high<\/strong>. But there is widespread disagreement on how the cartel and its allies should contain crude prices,\u201d the Wall Street Journal<\/a> adds in its wrap-up of a meeting in Algiers yesterday between OPEC members and non-member producers. Producers were reportedly lukewarm<\/a> to The Donald\u2019s demand that they ramp up production to reduce prices.<\/p>\n

It\u2019s Domesday for US equities, and you have the tech sector to thank. <\/strong>There might just be hyperbole running through that statement, but it\u2019s not ours: It\u2019s the theme running through one end of the international business press, with both Business Insider<\/a> and CNBC<\/a> tipping suggestions that a \u201cperfect storm\u201d is brewing in stocks<\/strong>. What gives? An analyst\u2019s report noting that \u201c42% of the S&P 500's gains since the stock market's correction in early February\u201d is accounted for by tech and tech-led shares such as Apple, Amazon, Netflix, Facebook, Alphabet, Microsoft, Google, Visa, and Mastercard.<\/p>\n

It\u2019s only fitting that this kind of talk should surface on the second day of autumn \u2014 the Wall Street Journal reminds us that \u201cSome of the worst days in Wall Street\u2019s history<\/strong><\/a> have hit during September and October<\/strong>. But that\u2019s no reason to panic.\u201d<\/p>\n

In miscellany this morning:<\/strong><\/p>\n