{"id":651389,"date":"2017-02-12T04:11:28","date_gmt":"2017-02-12T04:11:28","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2017\/02\/12\/what-were-tracking-on-12-february-2017\/"},"modified":"2017-02-12T04:11:28","modified_gmt":"2017-02-12T04:11:28","slug":"what-were-tracking-on-12-february-2017","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2017\/02\/12\/what-were-tracking-on-12-february-2017\/","title":{"rendered":"What we\u2019re tracking on 12 February 2017"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-01\"><\/a> <strong>Is the EGP strengthening? <\/strong>From lows in the range of 19.50 to the greenback, the EGP has strengthened to an average sell rate of 17.99. But we\u2019re getting conflicting signals on <strong>what\u2019s behind the stronger EGP: Lower demand or better supply? <\/strong>A leading manufacturer tells us it\u2019s a drying up of demand as companies lack EGP liquidity to acquire USD, saying his company has declined offers of USD for non-essential imports. On the other hand, a top exporter says it\u2019s a combination of strong inflows into the formal banking system (including remittances) and early signs of better export receipts. We see continued pressure on the EGP through mid-to-late fall from the nexus of spending on energy imports ahead of and during summer, pre-Ramadan commodity imports, the hajj as well as summer travel and back-to-school demand. Demand should ease as Zohr comes online this fall. The wild card: A pickup in tourism if Russia makes a move this month as has been hinted. (More on the EGP in Last Night\u2019s Talk Shows, below.)<\/p>\n<p><strong>Either way, the CBE wants us to know that it has cleared an unspecified backlog of investors looking to repatriate funds<\/strong>, according to an unnamed CBE official speaking with <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-02-09\/egypt-said-to-clear-backlog-of-investors-repatriating-funds\">Bloomberg<\/a>. The source did not clarify the volume of funds cleared, and Bloomberg speculates the statement may only refer to investors in stock and bonds who had at least USD 100 mn awaiting repatriation as of mid-January, says senior economist at Arqaam Capital Reham ElDesoky. \u201cThis is a positive signal to the market. It should spur more investment in equities and debt going forward,\u201d she added.<\/p>\n<p><strong>NBE is still financing imports: <\/strong>Deputy Chairman of state-owned National Bank of Egypt (NBE) Yehia Aboul Fotouh denied the bank has stopped financing imports. He tells <a href=\"http:\/\/www.reuters.com\/article\/egypt-economy-nbe-idUSC6N1BK01Y\">Reuters<\/a> that NBE financed about USD 5 bn worth of imports since November and that the bank gathered around USD 2.8 bn from individuals since the EGP float.<\/p>\n<p><strong>The EGX is still \u201crelatively cheap,\u201d<\/strong> Ahmed Badr, MENA CEO at Renaissance Capital, tells <a href=\"https:\/\/www.bloomberg.com\/news\/videos\/2017-02-09\/renaissance-capital-dubai-sees-saudi-arabia-opportunities\">Bloomberg TV<\/a> (runtime 04:18). \u201cYou also have to look at why the market has been rallying \u2026 Investors realize that consumers are not doing that badly \u2026 were able to absorb inflation, so things are moving.<strong> You also have the EGP which started strengthening because you actually got a lot of inflows recently<\/strong>,\u201d Badr explains. \u201cThe story has just started,\u201d Badr says, \u201cand I think this is a catalyst that is going to continue.\u201d He says remittances are strong \u201cand this is just the start,\u201d adding that foreign currency inflows are going to continue to arrive. Another interest rate hike is \u201cnot unlikely,\u201d Badr suggests, but <strong>given that \u201cthe currency started strengthening a bit,\u201d he thinks the hike could be delayed<\/strong>. Badr says the informal economy has buoyed Egyptian consumers and helped them absorb the inflation shock.<\/p>\n<p><strong>Will the new cabinet be announced today? <\/strong>Prime Minister Sherif Ismail is due to present his new cabinet lineup to the House of Representatives on Monday, Mustafa Bakry tells <a href=\"http:\/\/www.almalnews.com\/Pages\/StoryDetails.aspx?ID=321973\">Al Mal<\/a>, while MP Mohamed Elsewedy says the lineup will be unveiled today, <a href=\"http:\/\/www.almasryalyoum.com\/news\/details\/1087447\">Al Masry Al Youm<\/a> reports. Other conflicting reports in <a href=\"http:\/\/www.shorouknews.com\/news\/view.aspx?cdate=11022017&id=3b427a2f-36f6-4a4d-a18a-f5bfa572a055\">Al Shorouk<\/a> and <a href=\"http:\/\/www.almasryalyoum.com\/news\/details\/1087644\">AMAY<\/a> \u2014 both citing unnamed \u201cgovernment sources\u201d \u2014 suggest we won\u2019t hear about the new cabinet until Tuesday, with the prime minister sending in the new list tomorrow. The House looks set to have just one day to deliberate and decide on the cabinet. Bakry claims the shuffle will include at least 10 ministers, among them members of the economic team that has been driving Egypt\u2019s reform program.<\/p>\n<p><strong>Are we cozying up to Lebanon? <\/strong>That\u2019s the first conclusion to which we jump after picking up on Lebanese President Michel Aoun\u2019s interview in Beirut with <a href=\"http:\/\/www.ahram.org.eg\/News\/202173\/76\/578628\/%D8%AD%D9%88%D8%A7%D8%B1%D8%A7%D8%AA\/%D8%A7%D9%84%D8%B1%D8%A6%D9%8A%D8%B3-%D8%A7%D9%84%D9%84%D8%A8%D9%86%D8%A7%D9%86%D9%89-%D9%85%D9%8A%D8%B4%D9%8A%D9%84-%D8%B9%D9%88%D9%86-%D9%81%D9%89-%D8%AD%D9%88%D8%A7%D8%B1-%D9%85%D8%B9-%D8%B1%D8%A6%D9%8A%D8%B3-%D8%A7%D9%84%D8%AA%D8%AD%D8%B1%D9%8A%D8%B1-.aspx\">Al Ahram<\/a>\u2019s editor-in-chief ahead of Aoun\u2019s visit to Egypt today. Also today, the Egyptian-Lebanese Business Forum kicks off in Cairo, <a href=\"http:\/\/www.youm7.com\/story\/2017\/2\/11\/%D8%BA%D8%AF%D8%A7%D9%8B-%D8%A7%D9%86%D8%B7%D9%84%D8%A7%D9%82-%D9%85%D9%84%D8%AA%D9%82%D9%89-%D8%A7%D9%84%D8%A3%D8%B9%D9%85%D8%A7%D9%84-%D8%A7%D9%84%D9%85%D8%B5%D8%B1%D9%89-%D8%A7%D9%84%D9%84%D8%A8%D9%86%D8%A7%D9%86%D9%89\/3096511\">Youm7<\/a> reports.<\/p>\n<p><strong>Egypt\u2019s future apparently belongs to Japanese green juice. <\/strong>The domain EgyptTheFuture.com, the once high-profile home of the Egypt Economic Development Conference, is now promoting \u201cgreen juice\u201d in Japanese. A behind-the-scenes blame game sees the government pointing fingers at various subsidiaries of WPP Group, while an unnamed organizer of the EEDC <a href=\"http:\/\/www.almasryalyoum.com\/news\/details\/1087257\">tells AMAY<\/a> the site was transferred to the International Cooperation Ministry, which allegedly failed to renew a one-year hosting agreement. The March 2015 EEDC was <a href=\"http:\/\/www.prnewswire.com\/news-releases\/richard-attias--associates-executive-produces-the-egypt-economic-development-conference-for-the-egyptian-government-296186551.html\">\u201cexecutive produced\u201d<\/a> by <a href=\"http:\/\/www.richardattiasassociates.com\/en\/home\">Richard Attias & Associates<\/a>, a WPP company.<\/p>\n<p><strong>Emerging markets \u201cwill suffer a fourth consecutive year of capital outflows in 2017, <\/strong>despite an upturn in the macroeconomic background and a surge in portfolio flows to EM equities and bonds in the early weeks of the year, the Institute of International Finance said on Thursday,\u201d according to the <a href=\"https:\/\/www.ft.com\/content\/8dd16c78-eebc-11e6-930f-061b01e23655\">Financial Times<\/a>. Outflows from China will lead the trend, <a href=\"http:\/\/www.reuters.com\/article\/emerging-flows-iif-idUSL1N1FU01H\">Reuters<\/a> adds in its coverage. Bloomberg\u2019s coverage of what the IFF is dubbing \u201c<strong>the Trumpstorm<\/strong>\u201d is <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2017-02-09\/-trumpstorm-threatens-emerging-market-growth-optimism-iif-says\">here<\/a>. The IIF report dropped the same day that <a href=\"http:\/\/www.ashmoregroup.com\/\">EM specialists Ashmore Group<\/a> said it is seeing rising demand for its products and a nearly 2x surge in net income, according to <a href=\"http:\/\/www.reuters.com\/article\/us-ashmore-results-breakingviews-idUSKBN15O1FG\">Reuters<\/a> and the <a href=\"https:\/\/www.ft.com\/content\/b9814ae4-ff20-3405-bac1-1a500c1772ce\">Financial Times<\/a>.<\/p>\n<p><strong>Wait, Greece? Again?<\/strong> \u201cGreek Prime Minister Alexis Tsipras warned international lenders on Saturday not to heap new burdens on his country but said he believed the drawn-out bailout review with them would end well,\u201d <a href=\"http:\/\/www.reuters.com\/article\/us-eurozone-greece-tsipras-idUSKBN15Q0CT\">Reuters reports<\/a>, putting a positive spin on comments headlined in the Financial Times as \u201c<a href=\"https:\/\/www.ft.com\/content\/37615178-f06a-11e6-95ee-f14e55513608\">Tsipras warns IMF and Germany over bailout talks<\/a>.\u201d The German press is taking a similar line. The talks roiled European markets last week and look set to take center stage again this week. <strong>At issue: <\/strong>The release of a tranche of funds from a EUR 86 bn bailout package that will allow Greece to make a EUR 7 bn debt paying in July.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Is the EGP strengthening? From lows in the range of 19.50 to the greenback, the EGP has strengthened to an average sell rate of 17.99. But we\u2019re getting conflicting signals on what\u2019s behind the stronger EGP: Lower demand or better supply? A leading manufacturer tells us it\u2019s a drying up of demand as companies lack [&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-651389","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":"6b90587d-7eba-42cf-b99e-79246e34856e","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[651387],"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 12 February 2017 - 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\/2017\/02\/12\/what-were-tracking-on-12-february-2017\/\" \/>\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 12 February 2017\" \/>\n<meta property=\"og:description\" content=\"Is the EGP strengthening? From lows in the range of 19.50 to the greenback, the EGP has strengthened to an average sell rate of 17.99. But we\u2019re getting conflicting signals on what\u2019s behind the stronger EGP: Lower demand or better supply? 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And worth up to USD 5 bn?!_StoryHedWeb_! Egypt to issue its maiden sovereign sukuk as soon as next week?","author":"enterpriseam admin","date":"16 February 2023","format":false,"excerpt":"Final timing of the issuance dependent on market conditions","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\/2020\/11\/sukuk-1600px.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":578863,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/01\/17\/this-morning-usd-inflows-rise-to-our-local-fx-market\/","url_meta":{"origin":651389,"position":1},"title":"THIS MORNING: USD inflows rise to our local FX market","author":"enterpriseam admin","date":"17 January 2023","format":false,"excerpt":"Good morning, wonderful people, and a very happy hump day. THE BIG STORY here at home this morning is the central bank\u2019s announcement of an upswing in foreign inflows to local banks through the local foreign exchange market and other sources in recent days, helping to clear the imports backlog\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\/2023\/1\/270.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":567092,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/01\/13\/what-were-tracking-on-13-january-2020\/","url_meta":{"origin":651389,"position":2},"title":"What we\u2019re tracking on 13 January 2020","author":"enterpriseam admin","date":"13 January 2020","format":false,"excerpt":"The holiday news lull (such as it was this year) is officially over, as we have a packed issue for you this morning. The big stories are still on the international front (Libya, Ethiopia and Iran), but M&A news is back in the headlines and the CBE is shaping up\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":584764,"url":"https:\/\/enterpriseam.com\/egypt\/2023\/04\/05\/economic-reform-a-must-to-avoid-depreciation-inflation-cycle-goldman\/","url_meta":{"origin":651389,"position":3},"title":"Economic reform a must to avoid \u201cdepreciation-inflation cycle\u201d -Goldman","author":"enterpriseam admin","date":"5 April 2023","format":false,"excerpt":"Our problem is exports, not imports","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\/2023\/4\/208.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":550613,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/04\/11\/this-evening-the-eu-could-be-looking-at-a-russian-oil-embargo-soon-aail-plans-egp-500-600-mn-securitized-bond-issuance-by-2023\/","url_meta":{"origin":651389,"position":4},"title":"THIS EVENING: The EU could be looking at a Russian oil embargo soon + AAIL plans EGP 500-600 mn securitized bond issuance by 2023","author":"enterpriseam admin","date":"11 April 2022","format":false,"excerpt":"It\u2019s unfortunately only Monday, ladies and gentlemen, but we\u2019re hoping the rest of the week will go by a bit faster than the first two days have. Not helping matters: It\u2019s a rather slow afternoon on the homefront so far, with no massive news stories to bring your attention to.\u2026","rel":"","context":"In &quot;WHAT WE\u2019RE TRACKING TONIGHT&quot;","block_context":{"text":"WHAT WE\u2019RE TRACKING TONIGHT","link":"https:\/\/enterpriseam.com\/egypt\/category\/what-were-tracking-tonight\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":597709,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/05\/02\/what-were-tracking-on-2-may-2019\/","url_meta":{"origin":651389,"position":5},"title":"What we\u2019re tracking on 2 May 2019","author":"enterpriseam admin","date":"2 May 2019","format":false,"excerpt":"\u2026And we\u2019re back, ladies and gentlemen. Bright eyed and fresh faced from a wonderful extended weekend. What did we do over the break? Exactly nothing \u2014 and we have the New York Times on our side on that front.Lest you need a reminder: Ramadan looks set to begin on Monday.\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":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/651389","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=651389"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/651389\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/651387"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=651389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=651389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=651389"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=651389"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=651389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}