PM — Netflix really doesn’t want password sharing anymore

Good afternoon, ladies and gentlemen, and welcome to the last few hours of the work week. It’s been a busy 24 hours, to say the least, so we hope you are all able to disconnect over the weekend.

THE BIG STORIES TODAY

#1- Could we see more military-owned firms joining the state privatization program? The government is “ready” to offer up stakes in all military-owned firms as part of the state privatization program, or otherwise expand private sector partnerships with military-owned players, President Abdel Fattah El Sisi said today (watch, runtime: 3:02). El Sisi’s remarks come one day after Prime Minister Moustafa Madbouly unveiled the government’s plan to sell stakes in 32 state-owned companies through sales to strategic investors and offerings on the EGX over the next 13 months.

#2- Inflation inched up again in January, hitting a new five-year high on the back of the EGP devaluation, coupled with a shortage of foreign currency that led to delayed import arrivals. Annual urban inflation rose 25.8% y-o-y during the first month of the year, up from 21.3% in December, according to figures from state statistics agency Capmas. This is the highest rate since December 2017, and is up from just 8% in January 2022.

THE BIG STORY ABROAD

The aftermath of the earthquakes in Syria and Turkey continue to lead the conversation in the international press this afternoon. The death toll from Monday’s earthquake has now surpassed 17.5k across the two countries, with more than 14k of those deaths in Turkey, where public discontent over the government’s handling of rescue efforts continues to grow. (Reuters | Wall Street Journal | Bloomberg | CNBC)

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

• Foreign investors want higher rates before returning to Egypt: Would-be emerging market investors looking to return to Egypt after January’s devaluations were disappointed by the Central Bank of Egypt’s decision to leave interest rates on hold last week.
• Local mobile phone assemblers are going to pay one less tax: Cabinet approved exempting a 5% development fee on imported mobile phone components as part of the government’s efforts to localize the industry.
• Yesterday in M&A: A Sri Lankan financial services conglomerate that established a presence in Egypt last year wants to make new acquisitions, and Nilex-listed medical supplier ICMI has signed a purchase agreement to acquire a textile company.

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THE SURVEY CLOSES TODAY — so jump in now if you want to have a meal with us.

???? CIRCLE YOUR CALENDAR-

Universities back in session this weekend: The second semester of the 2022-2023 academic year begins for public universities on 11 February.

President Abdel Fattah El Sisi will be in Dubai to attend the World Government Summit, which runs 13-15 February. Twenty heads of state will be in town for the Davos-like gathering, which will see policymakers from around the world discuss global trends, according to Emirati state news agency WAM.

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.

MPs are back next week: The House will reconvene on Sunday, 12 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- We’re in for a mix of sun and clouds over the weekend. Tomorrow is set to be mostly sunny, with a daytime high of 19°C and a nighttime low of 9°C, while Saturday is expected to be a little more on the cloudy side as the daytime high cools to 18°C and the low will drop to 7°C, our favorite weather app says.

Qatari investors are expected to make a significant bid for Manchester United: The offer will likely be made in the coming days, before the mid-February deadline set by the club’s current owners, the Glazers, The Daily Mail reports. The group of high-wealth Qataris behind the bid wants to provide manager Erik ten Hag with the financial support he needs to improve his team's performance, according to the report. The Glazers are asking for over GBP 6 bn for the club, which they bought in 2005. There is also the question of whether Old Trafford will be redeveloped or torn down entirely with a brand-new “state-of-the-art facility” built in its place. A project of this magnitude could reportedly cost more than GBP 2 bn. According to insiders, the group is looking for a new project to capitalize on the Qataris’ World Cup hosting experience.

Apparently sharing is not caring: Netflix is clamping down on password sharing: Streaming giant Netflix will immediately roll out the first step in their plan to prevent multiple users from using the same account by way of sharing passwords, the company announced in a statement. Soon, Netflix users in New Zealand, Portugal, Spain, and Canada will have to choose a primary location and will only be able to add two extra sub-accounts for users who don’t live at the primary location, which will cost an extra USD 6 per month.

More than 100 mn households currently share accounts by using the same login credentials, according to data collected by Netflix. This friendly gesture is apparently limiting the company’s ability to invest in new movies and tv shows, they say. A Netflix account “is intended for one household,” the statement adds.

???? ON THE TUBE TONIGHT-
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A captivating drama that will leave you feeling inspired in Tallulah: The movie follows the journey of a young homeless woman named Tallulah who takes it upon herself to save a baby from an irresponsible mother. Along the way, she meets some unusual characters who help her on her quest and teach her life lessons in the process. The acting performances in the film are top-notch, with raw, captivating performances that will leave you moved. Even though Tallulah’s actions are sometimes morally questionable, we sympathize with her situation and understand why she chooses to take such drastic measures. With witty dialogue keeping viewers entertained throughout the film, Tallulah’s thought-provoking journey shows us what it means to make tough choices in life. The movie is available to stream on Netflix.

⚽ We don’t have any important matches today, but consider it a breather before a jam-packed football weekend.

Zamalek kicks off matchday 1 at the CAF Champions League tomorrow, when it meets CR Belouizdad at 6pm. The White Knights and the Algerian champions are in Group D, which also includes Sudan’s Al Merrikh, Espérance Sportive de Tunis.

Al Ahly to battle it out for Club World Cup bronze: Al Ahly meets with Brazil’s Flamengo — the Copa Libertadores title holders — to secure third place in the FIFA Club World cup on Saturday at 5:30pm. The final match between Real Madrid and Saudi Arabia’s Al Hilal is scheduled for 9pm, also on Saturday.

In the Egyptian Premier League this weekend:

• Ghazl El Mahalla v Arab Contractors (Friday at 9pm)
• Pharco FC v National Bank (Saturday at 5pm)
• Al Gaish v El Dakhleya (Saturday at 7pm)

And the most important matches in the major European leagues:

• Milan v Torino (Serie A — Friday at 9:45pm)
• Bayern Munich v VfL Bochum (Bundesliga — Saturday at 4:30pm)
• Werder v Dortmund (Bundesliga — Saturday at 4:30pm)
• Leipzig v Union Berlin (Bundesliga — Saturday at 7:30pm)
• Monaco v Paris Saint-Germain (La Ligue — Saturday at 6pm)
• Sevilla v Mallorca (Copa del Rey — Saturday at 7:30pm)
• Roma v Lecce (Serie A — Saturday at 9:45pm)

It’s an exciting Saturday in the English Premier League:

• West Ham v Chelsea (2:30pm)
• Arsenal v Brentford (5pm)
• Leicester City v Tottenham (5pm)
• Crystal Palace v Brighton (5pm)
• Fulham v Nottingham Forest (5pm)
• Southampton v Wolverhampton (5pm)
• Bournemouth v Newcastle (7:30pm)

Have you joined the Enterprise Fantasy Premier League? It’s simple — all you have to do is hit this link or enter the code 8o4sut to compete with more than 150 Enterprise readers for a chance to earn a special prize.

???? EAT THIS TONIGHT-

JJ’s Burger Truck is the perfect destination for a delicious, no-nonsense meal. If you’re craving the classic taste of a juicy burger, then you should head to JJ’s Burger truck in Sheikh Zayed’s Arkan or Lake District Mivida. The Imported Black Angus Beef in their signature JJ’s Burger is succulent and cooked to perfection, complemented by fresh lettuce, tomato, American cheese and the truck's very own JJ's Sauce. The Dynamite Shrimp Rolls are a party for your mouth, with crispy fried shrimp enveloped in dynamite sauce inside warm brioche rolls. Even those who steer clear of beef can indulge in their Chxn Tenders — organic deep fried chicken strips served with honey mustard sauce, sure to satisfy even the pickiest eater. And be sure to save room for dessert — their Mini Nutella French Toast will put a smile on anyone’s face.

???? OUT AND ABOUT-
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“An Archive of Love”: Digitent’s Cairo Photo Week exhibition Middle East Archive is running from today until 18 February at The Hanger in Downtown Cairo. The curated collection of photographs is a “a sincere visual exploration and celebration of love in the Middle East and North Africa.” Get tickets to Cairo Photo Week here.

Amir Sharara, Benjemy and A.Salah take the stage at Cairo Jazz Club tomorrow 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 Friday, 11 February. Book a spot through their Instagram page here.

AUC’s Alumni Folklore Group is back with Reviving the Art Vol. III on Saturday 11 February at 7 pm at Ewart Memorial Hall in the Tahrir campus.

Art Cairo kicks off at the Grand Egyptian Museum on Saturday 11 February and runs through next Tuesday, 14 February. The art fair will feature more than 30 international galleries from around the Middle East.

Dust off your dancing shoes for an Afro Jazz Beginners Course with Mako Ruan at the ‎Cairo Contemporary Dance Center from 7-8 pm on Thursday 16 February.

Get in shape to participate in TriFactory’s Saqqara Pyramid Race on Friday 17 February. The race is part of their Race Through History series, and you can choose between two distances: 5 km and 10 km (both are one-lap race courses timed using the MyLaps timing system).

Fun Nation is taking over standup comedy night at Room Art Space New Cairo on Saturday 18 February at 9pm, with this lineup of local comedians, Waleed Al Tourky, Shehab Al Ashry, Ahmed Hossam, Waleed Mostafa and Waleed Abo Almagd.

Don’t miss Omar Khairat’s concerts at 8pm on 20 and 21 February in the Main Hall of the Cairo Opera House.

We’re two weeks away from Kevin Hart’s standup comedy show in Cairo on Tuesday, 21 February. Some ticket categories are still available here.

Cirque du Soleil’s OVO is in town 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).

???? EARS TO THE GROUND-

Crime Junkie is a podcast made for the true-murder obsessed folks. This weekly podcast, which comes out every Monday, tackles a new gruesome story about a murder case. The host, Ashley Flowers, does an impeccable job at maintaining a distinctive story-telling tone that gives the chills. Without going down rabbit holes, each episode is easy to follow, giving out descriptive suspenseful details. Apart from the narrative, Flowers also attributes her podcast to helping the victims’ families, by giving them a voice, and supporting organizations that advocate for those who were abused. You can stream it on Apple or Google Podcasts.

???? UNDER THE LAMPLIGHT-

How to lose a country written by Turkish journalist Ece Temelkuran is centered around the concepts of populism and nationalism, and how they can eventually seep into established governments. Temelkuran points to examples such as the UK, US, and Turkey, where governments believed “it couldn’t happen here” — but these concepts did end up taking root, wreaking havoc on their economies and political standing. This book serves as a highly readable warning, explaining previous political missteps and the dangers they bring, as well as ways to avoid downturns.

The EGX30 rose 3.9% at today’s close on turnover of EGP 2.5 bn (35% above the 90-day average). Foreign investors were net sellers. The index is up 20.7% YTD.

In the green: Sidi Kerir Petrochemicals (+10.6%), EFG Hermes (+8.2%) and CIB (+6.2%).

In the red: CIRA Education (-1.5%), Oriental Weavers (-0.4%) and Ibnsina Pharma (-0.3%).

2022: A tough year for startups globally as the CVC funding river dries up. The amount of money deployed in startups by corporate venture capital firms (CVCs) fell 43% to USD 98.9 bn in 2022, as investors scaled back activity on rising borrowing costs and fears of an oncoming recession, according to data gathered by business analytics platform CB Insights.

On the bright side: More money into funding rounds. Although the amount of funding disbursed almost halved last year, the number of funding rounds remained more or less the same y-o-y at around 4.9k — the second-highest year for CVC-funded transactions.

IN PERSPECTIVE- 2021 set the bar high: Funding deployed in 2022 was still comfortably above the pre-pandemic norm which saw USD 60-70 bn in annual investment between 2018 and 2020. 2021 was an anomaly year, which saw the huge amounts of monetary and fiscal stimulus deployed in response to the pandemic push CVC investment to a record USD 173.8 bn.

US startups got the biggest chunk of funding, with around USD 7.6 bn spanning across 310 funding rounds. Africa saw only 13 funding rounds, raising just USD 100 mn.

Funding fell across the board: No sector was spared from the funding drought: fintech, retail tech and digital health startups all saw significant drops in funding. Fintech funding dipped 48% y-o-y to USD 18.6 bn while retail tech and digital health both saw investments fall 54%.

VC vs. CVC: VCs obtain funds from institutional investors (or “limited partners”), while CVCs involve companies directly investing their own capital into startups.

It has been a rocky year: Recession fears pushed everyone to cut down on their spending and VCs were no exception. Investors are faced with “geopolitical instability, inflation being more endemic, and having rising interest rates and recessionary fears,” Jeff Grabow, a VC expert at EY, told CNBC.

And the unstable stock market didn’t help: Tech valuations came under severe pressure last year as share prices fell, making it more difficult for startups to raise funds and forcing them to make cutbacks.

Locally, it was a different story. Total funding raised by Egyptian startups grew 35.7% y-o-y in 2022 to reach USD 506.8 mn, despite the economic turmoil of several currency devaluations, rising borrowing costs, and uncertain global conditions.

That doesn’t mean that everything was rosy: StartupLand was met with rising interest rates, falling valuations and the demise of one high-profile startup, which together pushed VCs to ration their investments and adopt more selective positions. Startups had a hard time navigating the economic challenges, with many having to cut costs and restructure their operations.

A better 2023 ahead? Investors are expecting current market challenges to ease off during the second half of the year as VCs face pressure to deploy their capital. Startups are also expected to use up their funds more efficiently, prioritizing steady growth in efforts to avoid the cash crunch many startups struggled with last year.

Not everyone is that optimistic: Grabow tells CNBC that many VCs are bracing for a two-year down period and that startups should not hold their breaths for a lifeline before then. “The hope is in two years, we’ll be through the uncertainty … and you can come out on the other side and catch an uptick,” Grabow said.