Tuesday, March 22, 2011

Egypt stock market, Closed for Seven Weeks Amid Unrest, to Open March 23

Based on how the Egypt ETF has traded on the NYSE since January 27, it appears Egypt markets will open
up about 8%.

Allies in rift over control – the US has been coordinating the early stages of the Libyan air strikes
but plan on surrendering an increasing amount of control in the coming days. However, NATO members
met Mon and failed to agree on a post-US command structure. Italy and the UK would like to see control
shifted to NATO, but this is a move being blocked by France. – NYT
Bahrain – the country said it thwarted a plot to undermine security in the kingdom and
neighboring Gulf states. – FT
Yemen – embattled president under further pressure to leave office – the country’s senior military
officer, along w/four other top generals, on Mon threw their support behind protesters calling for the
administration’s ouster. Some think the tide within Yemen is turning and that president Saleh could be on
his way out of office (Saleh pledged to step down by year-end but vowed not to hand power to military
commanders who have joined the opposition). – NYT
Is the Government's Mortgage Mission Accomplished? “The Treasury is withdrawing its support
before the mortgage market has recovered fully, which is apparent in the existing-home sales report”
The Treasury's sales could be seen as a precursor for the liquidation of the Federal Reserve's holdings of
mortgage paper. – Barron’s
Japan quake cost – one forecast puts the total cost of the damage from the quake at $300B - On
Monday, disaster-modeling company Risk Management Solutions Inc. estimated the earthquake and
tsunami will lead to economic losses of $200 billion to $300 billion – WSJ
 US nuclear power – a top official w/the NRC (Nuclear Regulatory Commission) said Mon that
the Daiichi crisis in Japan didn’t warrant any immediate changes to America’s nuclear plants. NYT
Treasuries – Japanese investors will prob. retain their holdings of Treasuries following the quake
and won’t sell them to pay for reconstruction. “Treasuries still have a higher yield compared to the
Japanese bond market,” said Satoshi Okumoto, a general manager in Tokyo at Fukoku Mutual. “We have
a large yen-denominated portfolio. If we need funds, we can liquidate Japanese government bonds.
That’s the first priority.”