EU signs €1bn financing deal for Egypt at investment forum | Canada News Media
Connect with us

Investment

EU signs €1bn financing deal for Egypt at investment forum

Published

 on

European Commission President Ursula von der Leyen announced Saturday a €42 billion ($45 billion) investment by European companies in Egypt as well as cash from Brussels to help the country’s troubled economy.

Von der Leyen told the Egypt-EU Investment Conference in Cairo that the firms had signed more than 20 new deals or memoranda of understanding (MOUs) with the Middle East country.

The European Union has promised Egypt €7.4 billion in financial support for its economic reforms. On Saturday, the two sides signed an agreement for the first €1 billion.

European officials say they want to help Egypt — which has suffered repeated economic shocks from the COVID-19 pandemic and high inflation — become more resilient by boosting investment and the private sector.

A strong Egypt important to EU

Writing about the investments on X, formerly Twitter, von der Leyen said EU states and Egypt want to create a partnership based on a “framework of trust and certainty.”

“The stability of Egypt is important for the region. In a world of turmoil, we have deepened our relations, building on our historical ties,” she added.

The EU chief said the two partners would keep working together in sectors including trade, energy, water, migration, skills and mobility.

Addressing the conference, von der Leyen told delegates that the investment would “accompany and incentivize Egypt’s reform agenda,” which she said would “foster a stronger business environment and attract more investment and create more good jobs.”

Egyptian President Abdel Fattah el-Sissi said in a speech that the conference “marks the first implementation steps in the course of elevating the relations and reflects [the[ commitment of Egypt and the EU to go beyond the phase of pledges to the phase of implementation.”

He said that during successive international and regional crises, “Egypt has proven to be a reliable partner in facing joint challenges in a way that achieves security and stability.”

 

Egypt wins EU, regional and international backing

As well as the EU, Egypt has received billions in foreign financing and pledges this year from the United Arab Emirates, the International Monetary Fund and the World Bank.

The cash injections have eased a long-running currency crisis at a time when Egypt was trying to manage the impact of wars in neighboring Gaza, and in Sudan, on its southern border.

Von der Leyen was accompanied by two other EU commissioners: Neighborhood Commissioner Olivér Várhelyi and Economy Commissioner Vladis Dombrovskis.

Dombrovskis signed an MOU for short-term financial assistance of up to €1 billion to support Egypt’s economic reform program, part of the larger €7.4 billion package announced by Brussels in March.

The money will be invested in sectors including clean energy, manufacturing, and food security, according to the Commission.

Rights groups want cash tied to rule of law demands

The deals have been criticized by human rights groups who say Egypt’s government does not respect the rule of law.

Thousands of people have been detained in recent years, including journalists, critics, opposition politicians, peaceful protesters, and human rights defenders.

“This deal is one of the most expensive financial assistance deals the EU has ever signed off on with a country outside the EU,” said Eve Geddie, Head of Amnesty International’s European Institutions Office, on Wednesday. “By failing to ensure the Egyptian authorities adopt clear benchmarks for human rights and rule of law as a pre-condition for funding, the EU is breaking its own rules.”

In a letter earlier this month, Human Rights Watch and Egyptian, regional, and international human rights groups called on Brussels to ensure the cash “secures concrete, measurable, structural, and timebound human rights progress and reforms in the country.”

mm/kb (AP, dpa, Reuters)

 

Source link

Continue Reading

Economy

S&P/TSX composite down more than 200 points, U.S. stock markets also fall

Published

 on

 

TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.

The S&P/TSX composite index was down 239.24 points at 22,749.04.

In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.

The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.

The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.

The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.

This report by The Canadian Press was first published Sept. 6, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Economy

S&P/TSX composite up more than 150 points, U.S. stock markets also higher

Published

 on

 

TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.

The S&P/TSX composite index was up 171.41 points at 23,298.39.

In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.

The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.

The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.

The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.

This report by The Canadian Press was first published Aug. 29, 2024.

Companies in this story: (TSX:GSPTSE, TSX:CADUSD)

The Canadian Press. All rights reserved.

Source link

Continue Reading

Investment

Crypto Market Bloodbath Amid Broader Economic Concerns

Published

 on

The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.

The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.

Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.

The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.

Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.

Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.

Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.

Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.

The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.

Continue Reading

Trending

Exit mobile version