Intraday Market Thoughts

Archived IMT (2011.02.03)

by Ashraf Laidi
Feb 3, 2011 11:57

WHY THE MUBARAK SUPPORT? (part 1 of 2) The pro-Mubarak demonstrators complicate Egypt’s path towards democracy and fuel further civil unrest? Why would Mubarak supporters mount their biggest protests in weeks one day after he announced stepping down before the September presidential elections? These protests are coordinated throughout Cairo and Alexandria. Is Mubarak making a statement “the people want me to stay therefore I will stay”? Or, is it simply an intention to show that he will at least leave with head held high (unlike Tunisia’s Ben Ali). MARKETS ARE MOST CONCERNED with the fate of US aid to Egypt (most of which flows to the Military) and in the Military’s ability to safeguard civic order, security and maintain the functioning of commerce, banks and foreign investments. The subsequent question shall revolve around the true successor to Mubarak. ElBaradei may have credibility and respect but he lacks partisan support as long as he does not start his own party. (Part 2 of 2 in next IMT)


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