PM — Man City could be kicked out of the Premier League

Happy Monday, friends. It’s relatively calm on the news front here at home so far, although it’s been a grim day for the region as thousands have been killed in Syria and Turkey with two massive earthquakes. We have the details below.

THE BIG STORY TODAY

Will 45% of Banque du Caire be up for grabs in 1H 2023? State-owned Banque du Caire (BdC) will offer a 45% stake in sales to strategic investors and an EGX offering in 1H 2023, Al Mal quotes House Planning and Budget Committee head and economist Fakhry El Fiky as saying. El Fiky did not specify the expected value of the stake. The stake sale, which has been postponed several times due to unfavorable market conditions, could be expedited as the government pushes through its privatization plans in the lead-up to the first IMF review of our USD 3 bn loan agreement in March, El Fiky suggested. BdC has until 31 March 2023 to wrap up IPO procedures.

THE BIG STORY ABROAD

Twin earthquakes in Turkey and Syria kill 1.4k people: Two earthquakes with magnitudes of 7.8 and 7.5 hit Southern Turkey and northwest Syria, killing at least 1.4k people and injuring thousands more. The first earthquake struck at 4:17 AM local time on Monday, destroying hundreds of buildings in several cities, triggering rescue searches for survivors trapped beneath the rubble on both sides of the Turkey-Syrian border. Strong aftershocks have been felt across the region, with tremors jolting residents out of their beds in Lebanon and effects felt as far away as Cairo.

News of the earthquake is everywhere in the foreign press: Reuters | Bloomberg | WSJ | CNBC | BBC | CNN | AP

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** CATCH UP QUICK on the top stories from today’s EnterpriseAM:

• Private sector starts the year with sharper contraction: Activity in Egypt’s non-oil private sector contracted for the 26th consecutive month in January as high inflation continued to weigh on businesses, according to S&P Global’s purchasing managers’ index.
• EGX investors could be in line for a fresh capital gains tax break: Proposed amendments to the Income Tax Act have been pulled from the House while policymakers consider amending capital gains tax rules in response to the current exchange-rate volatility, two government sources told Enterprise.
• Yesterday in M&A: Palm Hills’ second-largest shareholder could be about to sell its entire stake to an Emirati investor. Also yesterday, International Company for Medical Industries shareholders greenlit proposals to acquire a majority stake in a Mansoura-based textiles company.

COME TO OUR NEXT ENTERPRISE FORUM-

We’re excited to unveil our next C-level event: The Enterprise FDI + Exports Forum, where we will take a deep dive into two of the most critical topics affecting our community.

Exports and foreign direct investment (FDI) have never been more important to our economy — or our businesses — than in the wake of the float of the EGP. We think we have a once-in-a-lifetime chance to build an export-led economy that makes us a magnet for FDI and all the benefits that will come with it for our nation.

Want to join the conversation? Drop us a line on events@enterprisemea.com.

???? CIRCLE YOUR CALENDAR-

Palestine talks in Cairo: Hamas leader Ismail Haniyeh is expected to fly into Cairo this week to hold talks with Egyptian intelligence chief Abbas Kamel and other security officials, a Hamas spokesperson said in a statement picked up by the Jerusalem Post. The secretary of Palestinian Islamic Jihad was in Cairo yesterday for talks, the Israeli newspaper reported. The invite came days after Kamel visited Ramallah for talks with Palestinian President Mahmoud Abbas and other officials in a bid to end the recent violence in the West Bank and Jerusalem.

Inflation: The CBE and Capmas will publish inflation data for January in a few days.

Unis go back this week: The second semester of the 2022-2023 academic year begins for public universities on 11 February.

Petro-show next week: Oil and gas industry figures from Egypt and the region will congregate at the Egypt International Exhibition Center for the Egypt Petroleum Show (Egyps) starting next Monday. The three-day conference runs 13-15 February.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

⛅TOMORROW’S WEATHER- Expect temperatures to rise to 15°C during the day tomorrow before falling to 7°C at night, our favorite weather app tells us.

Beyoncé is now the most decorated Grammy artist in history. Beyoncé left the 65th annual Grammy Awards in Los Angeles last night with four awards, becoming the biggest Grammy laureate of all time with an unrivaled trophy collection of 32 golden gramophones, the Washington Post reports. Her awards included best R&B song for “Cuff It,” dance/electronic music recording for “Break My Soul,” traditional R&B performance for “Plastic Off the Sofa” and dance/electronic album for “Renaissance.”

But fans still think she was “robbed”: While Beyoncé has been nominated for album of the year several times — including for “Renaissance” last night — the top prize has never made it to her collection, sparking debates about the music industry’s failure to recognize black artists. “For the past 20 years and counting, the Recording Academy has routinely failed to recognize Black artists at their creative peaks,” writes the Post.

The night’s most coveted prize went to Harry Styles: It was “Harry’s House” by former One Direction heart-throb Harry Styles that earned album of the year.

Other noteworthy awards:

• Bonnie Raitt took home the Grammy for song of the year for Just Like That.
• Lizzo won record of the year for About Damn Time.
• The new artist of the year award went to Samara Joy.
• Adele won the award for best pop solo performance for Easy On Me.
• Kendrick Lamar won best rap album for Mr. Morale & The Big Steppers.
• Ozzy Osbourne won best rock album for Patient Number 9.

You can check out the full list of nominees and prizewinners on the Grammy website.

When will management research transition from scholarly journals to actual offices? Management research costs upwards of USD 4 bn a year, according to estimates from the business school accreditation body AACSB, but very little seems to impact what happens in actual corporate offices and boardrooms, the Financial Times reports. “There is a lot of money and expertise in universities, but a lot of research is not going to market or takes too long,” one expert tells the salmon-colored paper, pointing out a “relevance gap” between academic researchers and real-world practitioners.

Case in point: Research published between 2015 and 2020 largely failed to anticipate the effects of the pandemic on the economy or management styles, a study published in the Social Science Research Network. Textbooks taught to business students also included a lot of praise for disgraced companies like Enron, before it collapsed on the back of fraudulent practices.

???? ON THE TUBE TONIGHT-
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This new Spanish crime-thriller will keep you on the edge of your seat: The Snow Girl is a six-part Spanish series based on the novel of the same name by Javier Castillo. It follows the story of Miren, a young journalist determined to help a family find their daughter, who mysteriously went missing at a parade in Malaga. The mystery jumps between different timelines and keeps you guessing as Miren goes on her own investigation, in parallel to the police. An intriguing and gripping watch, The Snow Girl breathes new life into the investigative genre we all know and love, with plenty of twists and turns. You can stream it on Netflix or watch the trailer here (runtime: 2:18).

⚽Less than a handful of noteworthy matches this evening: In the Egyptian Premier league, Pharco faces Zamalek at 5pm.

In La Liga action, Rayo Vallecano takes on Almeria at 10pm.

Man City charged with breaching the premier league’s financial fair play rules: Following a four-year investigation, the English Premier League has charged Manchester City with multiple violations of financial fair play regulations, the league said in a statement today. The league accused the club of failing to provide “accurate financial information that gives a true and fair view of the club's financial position” between 2009 and 2018, as required by league rules. This information included the club's revenue, including sponsorship revenue and operating costs. The reigning PL champions, who have won six titles since the club was bought by Abu Dhabi United group in 2008, were also charged with failing to cooperate with the investigation in 2018-19.

The club could face repercussions including points reduction, relegation from the league, financial penalties, bans from European championships, and a ban from the transfer market, according to EPL World. The club has been referred to an independent commission, which will review the case.

The club issued a statement in response to the allegations, saying that it is “surprised by the issuing of these alleged breaches of the Premier League Rules, particularly given the extensive engagement and vast amount of detailed materials that the EPL has been provided with.” It added: “The Club welcomes the review of this matter by an independent Commission, to impartially consider the comprehensive body of irrefutable evidence that exists in support of its position.”

???? OUT AND ABOUT-
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Don’t miss Cirque du Soleil’s OVO next month. The event features 100 performers taking the stage with their acrobatic acts. OVO will host 16 shows between 8-18 March at Cairo international Stadium Hall, courtesy of real estate developer Madinet Nasr for Housing and Development (pdf).

Irtigalia is bringing a new edition of the Maestro Improv Format by Keith Johnstone at The Tap West, tonight at 8pm.

Saad El Oud and his band take the stage at Room Art Space New Cairo, tonight at 9pm.

Safarkhan Art Gallery in Zamalek is hosting Zāt, an exhibition showcasing Karim Abd Elmalak’s work starting tomorrow through 1 March.

Jordanian singer, composer, and producer Aziz Maraka is performing at Cairo Jazz Club 610 alongside his band on Wednesday. Maraka is credited with creating Razz, an Arabic Rock-Jazz fusion music style.

An Archive of Love: Digitent’s Cairo Photo Week exhibition Middle East Archive is on display from 9-18 February at The Hanger in Downtown Cairo. The curated collection of photographs is “a sincere visual exploration and celebration of love in the Middle East and North Africa.” You can get tickets here.

Hit the dancefloor at Cairo Jazz Club on Friday when Amir Sharara, Benjemy and A.Salah take the stage starting at 9pm. Benjemy, a multi-instrumentalist and music producer, will make his CJC debut, alternating between classical and electronic music while fusing techno with poetry. Amir Sharara will kick off the evening with a diverse set and A.Salah’s signature sounds will keep the night going.

Do something new this weekend: Head over to L’Appart in Maadi for a candle-making workshop with The Melting Studio this Saturday. Book a spot through their Instagram page here.

Art Cairo kicks off at the Grand Egyptian Museum on Saturday and runs through next Tuesday, 14 February. The art fair will feature more than 30 international galleries from around the Middle East.

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A Bar on Adly Street transports you to 1970s Cairo: The 2022 memoir of retired structural engineer Medhat Ghabrial A Bar on Adly Street tells the story of a hopeless romantic navigating life through a rapidly changing Egypt. The story begins in the early 70s just as then-President Anwar El Sadat takes office and as vast changes to the country’s social and economic fabric begin to unfold. It is against this backdrop that Ghabrial copes with the challenges of being a young teaching assistant at a public university, pursuing a relationship with one of his students and being a Coptic Christian in an increasingly hostile social environment.

The EGX30 rose 2.0% at today’s close on turnover of EGP 1.6 bn (12% below the 90-day average). Regional investors were net buyers. The index is up 13.6% YTD.

In the green: Telecom Egypt (+6.2%), e-finance (+5.9%) and Sidi Kerir Petrochemicals (+5.4%).

In the red: Abu Qir Fertilizers (-1.9%), Credit Agricole (-1.1%) and EFG Hermes (-1.0%).