{"id":630546,"date":"2018-04-24T04:14:57","date_gmt":"2018-04-24T04:14:57","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/24\/what-were-tracking-on-24-april-2018\/"},"modified":"2018-04-24T04:14:57","modified_gmt":"2018-04-24T04:14:57","slug":"what-were-tracking-on-24-april-2018","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/24\/what-were-tracking-on-24-april-2018\/","title":{"rendered":"What we\u2019re tracking on 24 April 2018"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>The state of government finances, part I:<\/strong> Finance Minister Amr El Garhy is rightfully putting the onus on the Central Bank of Egypt to help reduce the cost of borrowing \u2014 not just for businesses, but for the state, possibly unlocking bns that today goes to debt service and that tomorrow could help provide more government services or reduce the budget deficit. That\u2019s the take-home message from <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2018-04-23\/falling-rates-prompt-egypt-debt-shift-with-bond-issues-to-jump\">an interview El Garhy gave Bloomberg<\/a> while in Washington, DC, for the IMF and World Bank spring meetings.<\/p>\n<p><strong>What\u2019s going on?<\/strong> \u201cEgypt is considering shifting away from costly short-term domestic debt towards longer-term borrowing, as falling interest rates provide cheaper options to finance its fiscal deficit, according to the nation\u2019s finance minister. It will increasingly rely on five- to seven-year bonds instead of Treasury bills that have shorter maturities and currently make up the bulk of local-currency borrowing.\u201d<\/p>\n<p><strong>Inflation (and CBE action) are the triggers to watch:<\/strong> \u201cWe\u2019re contemplating this but we\u2019re still waiting for better inflation figures and more action from the central bank.\u201d Inflation in the single digits next year, El Garhy said, should \u201cconvince the central bank of taking the interest expense down further.\u201d<\/p>\n<p><strong>The state of government finances, part II: <\/strong>As tempting as it is for journalists and analysts alike to keep hammering at the expenditure side of the government spending equation (what, with subsidy cuts and enhanced spending on health, education, welfare and infrastructure), the business community remains concerned that the Ismail government be tempted to squeeze blood from a stone. A common refrain among business leaders \u2014 from owners of SMEs to c-suite officers at large corporations \u2014 is that the state not just ensure compliance from existing taxpayers, but widen the tax base. The same applies for fees to access government services: Readers should not be alarmed to read that the government is looking to see <strong>revenue from port fees rise by as much as EGP 1.8 bn in the next budget year<\/strong>, as a senior government official told us yesterday. This is likely accounted for by running ports around the clock, fee agreements that bring back major shippers who had walked away from the table in the current year, and an expanded array value-added services, as we\u2019ve recently reported. The government is also raising (or looking to raise) fees for government services including passport issuance, residence visas, and vehicle and gun registration. Expect this to be a theme going forward.<\/p>\n<p><strong>Our friends at Renaissance Capital are holding their third annual Egypt Investor Conference in Cape Town today and tomorrow. <\/strong>Senior management from leading Egyptian companies will meet one-on-one with South Africa-based investors at the gathering. As part of our exclusive coverage of the conference, we interviewed Renaissance Capital MENA CEO Ahmed Badr on his take on Egypt, Saudi Arabia, and the finance industry post-Mifid II. Our talk with Ahmed appears in today\u2019s Spotlight section, below.<\/p>\n<p><strong>The subscription period for retail investors who want a piece of CI Capital\u2019s IPO ends today. <\/strong>The firm\u2019s Mahmoud Attalla was on TV last night talking up the offering. We have more in Last Night\u2019s Talk Shows, below.<\/p>\n<p><strong>Ten people were killed and at least 15 injured in an attack on pedestrians in Canada. <\/strong>A long suspect drove a white rental van across sidewalks in Toronto in an overnight attack that borrows from the terrorist playbook, but that police have so far said does not appear to have been directly related to Islamist terrorism. The home pages of the <a href=\"https:\/\/www.theglobeandmail.com\/canada\/toronto\/article-injuries-reported-after-van-hits-people-in-north-toronto\/\">Globe and Mail<\/a> and <a href=\"http:\/\/www.cbc.ca\/news\/canada\/toronto\/pedestrians-struck-white-van-1.4631564\">Canada\u2019s CBC<\/a> have more, and the story is front-page news in the business press globally (<a href=\"https:\/\/www.wsj.com\/articles\/van-strikes-pedestrians-in-toronto-1524508659\">Wall Street Journal<\/a> | <a href=\"https:\/\/www.ft.com\/content\/e1d68f44-4738-11e8-8ee8-cae73aab7ccb\">Financial Times<\/a> | <a href=\"https:\/\/www.cnbc.com\/2018\/04\/23\/van-hits-at-least-8-people-in-toronto-canadian-police-say.html\">CNBC<\/a> | <a href=\"https:\/\/www.reuters.com\/article\/us-canada-van\/driver-kills-10-injures-15-plowing-van-into-toronto-sidewalk-crowd-idUSKBN1HU2IY\">Reuters<\/a>).<\/p>\n<p><strong>It\u2019s earnings season in Amreeka: <\/strong>Facebook, Google, Boeing, and Chevron are among those expected to post this week \u201ctheir strongest first-quarter profit gains in seven years at around 20%,\u201d <a href=\"https:\/\/www.reuters.com\/article\/us-global-markets\/u-s-debt-deluge-lifts-bond-yields-to-four-year-high-asia-stocks-down-idUSKBN1HV01Z\">according to Reuters<\/a>, which notes that stock performance was muted yesterday ahead of the expected string of earnings reports.<\/p>\n<p><strong>Emerging markets assets are being pressured by rising borrowing costs in the US and the sustained performance of the USD against other currencies.<\/strong> \u201cEquities and currencies [are] down more than 1% and on track for their biggest one-day drops in at least weeks,\u201d Peter Wells <a href=\"https:\/\/www.ft.com\/content\/a50a1f92-471d-11e8-8ee8-cae73aab7ccb\">writes for the Financial Times<\/a>. \u201cHigher US yields also make EM assets less attractive for investors and often prompt investors to rotate some of their holdings back into USD-denominated assets.\u201d<\/p>\n<p><strong>Dress like a bn\u2019aire:<\/strong> Season three of Bns, one of our favourite TV shows and the best-ever about finance, \u201cmasterfully captures the changing dress code of the finance world.\u201d (<a href=\"https:\/\/www.wsj.com\/articles\/how-to-dress-like-a-billionaire-1524490019\">WSJ<\/a>)<\/p>\n<p><strong>Selfie-taking monkeys do not own the intellectual property rights to the images they take<\/strong>, a US appeals court has ruled. (<a href=\"https:\/\/www.wsj.com\/articles\/copyright-protection-for-monkey-selfie-rejected-by-u-s-appeals-court-1524526086\">WSJ<\/a>).<\/p>\n<p><strong>PSA- Expect stronger-than-usual winds and \u201cunstable weather\u201d today <\/strong>in Cairo, North Sinai and the northern cities of Upper Egypt, the <a href=\"http:\/\/english.ahram.org.eg\/NewsContent\/1\/64\/298213\/Egypt\/Politics-\/Rain,-unstable-weather-across-Egypt-on-Tuesday.aspx\">national weather service<\/a> warns.<\/p>\n<p><strong>PSA- YOU DON\u2019T NEED TO GO TO WORK TOMORROW.<\/strong> Pardon our shouting. Banks and <a href=\"http:\/\/www.egx.com.eg\/English\/trading_calendar.aspx\">the EGX<\/a>will be closed tomorrow in observance of Sinai Liberation Day. Enterprise is also taking the day off, and we\u2019ll be back on Thursday at our usual time.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The state of government finances, part I: Finance Minister Amr El Garhy is rightfully putting the onus on the Central Bank of Egypt to help reduce the cost of borrowing \u2014 not just for businesses, but for the state, possibly unlocking bns that today goes to debt service and that tomorrow could help provide more [&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":[72,74],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-630546","post","type-post","status-publish","format-standard","hentry","category-what-were-tracking-today","tag-enterpriseam","tag-what-were-tracking-today","wpautop","entry"],"acf":{"mongo_id":"b9c15b84-6144-4a9e-b781-43c00865d426","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[630544],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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El Garhy","author":"enterpriseam admin","date":"12 June 2018","format":false,"excerpt":"BUDGET WATCH- Overdraft won\u2019t blow budget deficit target, El Garhy says. Some EGP 70 bn in overdraft spending for the soon-to-close FY2017-18 budget will not impact Egypt\u2019s targeted budget deficit for the year, said Finance Minister Amr El Garhy. The budget deficit is still on track to fall to 9.8%\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":652520,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/01\/12\/what-were-tracking-on-12-january-2017\/","url_meta":{"origin":630546,"position":3},"title":"What we\u2019re tracking on 12 January 2017","author":"enterpriseam admin","date":"12 January 2017","format":false,"excerpt":"The government\u2019s eurobond roadshow planned for next week continues to drive the conversation this morning. A source told Al Mal the expectation is that Egypt would have to pay around 7%, \u201cfollowing the Fed\u2019s move to raise rates.\u201d This is higher than the 5.5-6% Deputy Finance Minister Ahmed Kouchouk had\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":630388,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/19\/how-the-economic-reforms-will-help-rein-in-debt\/","url_meta":{"origin":630546,"position":4},"title":"How the economic reforms will help rein in debt","author":"enterpriseam admin","date":"19 April 2018","format":false,"excerpt":"Egypt\u2019s fiscal reforms in general, and ongoing subsidy cuts in particular, will help keep rising debt from getting out of control, Finance Minister Amr El Garhy tells the Financial Times\u2019 Heba Saleh in an interview on Wednesday. \u201cThe reduction in the overall deficit will be accompanied by a primary surplus\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\/4\/1822.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":638550,"url":"https:\/\/enterpriseam.com\/egypt\/2017\/10\/09\/what-were-tracking-this-week-112\/","url_meta":{"origin":630546,"position":5},"title":"What we\u2019re tracking this week","author":"enterpriseam admin","date":"9 October 2017","format":false,"excerpt":"A large Egyptian delegation will start trickling into Washington, DC, today and tomorrow for the IMF and World Bank annual fall meetings. The gatherings kick off today and run until 15 October. Among those attending are Investment Minister Sahar Nasr, Finance Minister Amr El Garhy, EGX chief Mohamed Farid and\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":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/630546","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=630546"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/630546\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/630544"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=630546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=630546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=630546"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=630546"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=630546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}