PM — La Dolce Vita

Good afternoon, friends, and a very happy THURSDAY to us all. It’s relatively calm on the news front today — an ideal way to end a hectic workweek.

THE BIG STORY TODAY

EGP WATCH- The EGP slipped by nine piasters against the greenback today, with the USD changing hands at 30.7757 from 30.68 yesterday, after five days of relative stability, according to central bank data. Demand for USD is unlikely to decline significantly in the weeks leading up to Ramadan as traders complete stocking up on the imported necessities for the holy month (they’re doing so a bit later than usual this year thanks to the FX crunch).

Refresher: The currency hit the 30 mark at the end of January following a sharper devaluation and has lost nearly half its value against the greenback over the past year amid the fallout from the war in Ukraine and rising interest rates.

THE BIG STORY ABROAD

It’s a mixed bag in the international business press today, but one particularly noteworthy story comes from the Group of 20 (G20) meeting of foreign ministers in New Delhi today: US Secretary of State Antony Blinken implored Moscow to renew the expiring UN-brokered trade agreement that allows Ukrainian grain into global markets. “It is imperative the G20 speak up on behalf of extending and expanding the grain initiative to strengthen food security for the most vulnerable,” Blinken said. Last July, the UN and Turkey negotiated the Black Sea Grain Initiative, which has helped bring down the skyrocketing prices of food. Around 20 mn tons of grain have been exported thanks to the initiative. The story is getting attention from Reuters and AFP.

HAPPENING NOW-

Shoukry is also in New Delhi for the G-20 meetings: Foreign Minister Sameh Shoukry is in India for the second day of the meeting of G-20 foreign ministers. As this year’s G-20 president, India has invited Egypt to attend the summits as a guest nation.

The Corporate Social Responsibility Forum has kicked off in Somabay. The event will run until Sunday, 5 March and aims to further the discussions had at COP27 to boost private and public sector cooperation on climate action.

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

• Fuel prices jumped 7-11% last night: Fuel prices have risen by as much as 11% following a decision by the government’s fuel pricing committee that will drive inflation up in an economy already struggling with soaring prices.
• Auto sales fall 75% y-o-y in January: Distributors sold some 5.4k vehicles during the month, compared to almost 21.2k in January 2022, according to figures released by the Automotive Marketing Information Council (AMIC).
• Gov’t to miss deficit, debt targets on higher rates, import bill: The Finance Ministry now expects the budget deficit and debt-to-GDP ratio to increase during the current fiscal year as the impact of the EGP devaluation and rising borrowing costs squeeze public finances.

We are delighted to share with you that the Enterprise Exports & FDI Forum will be taking place on Monday, 15 May at the Four Seasons Hotel at Nile Plaza.

DO YOU WANT TO ATTEND? The first wave of invites is going out soon. If you’re a C-suite exec, exporter, investor, official, banker, or someone who should be part of the conversation, please TAP OR CLICK HERE to request a spot at this exclusive event.

What’s the Enterprise Exports & FDI Forum? It is the latest in our series of must-attend, invitation-only gatherings for C-suite-level business leaders. The Enterprise Exports & FDI Forum will discuss the critical topics of exports and foreign direct investment (FDI) in Egypt.

We will be taking an in-depth look into some of the most vital industry topics, including:

• How to effectively break into new export markets
• How to leverage domestic trends in order to create export opportunities
• What foreign investors are looking for
• What the government's role should be

Why now? 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.

Think of the Enterprise Exports & FDI Forum as a hands-on lab for how to turn the devaluation of the EGP into something that will turbocharge your company and our economy.

WANT TO ATTEND? Hit this link to let us know.

WANT TO SHARE YOUR STORY ON STAGE? Drop a note to Patrick here and let’s talk.

WANT TO BECOME A COMMERCIAL PARTNER? Ping a note to Moustafa, our head of commercial, here.

???? CIRCLE YOUR CALENDAR-

We have a date for CIFF: The Cairo International Film Festival (CIFF) will kick off at the Cairo Opera House on Wednesday 15 November and run through to Friday 24 November, the festival’s admins said in a statement yesterday.

Thanaweya Amma exam schedules are out: Thanaweya Amma exams are scheduled to take place between 12 June and 15 July, the Education Ministry said yesterday.

Check out our full business 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 sunny weekend, with the mercury hitting a daytime high of 28°C tomorrow and 32°C on Saturday, before dipping to 14°C tomorrow evening and 21°C on Saturday evening.

TikTok succumbs to the wrath of the mommies group: TikTok is working on parental control tools to protect teens from inappropriate videos, according to a statement. The popular video-sharing platform will also introduce screen time limits, with a one-hour daily limit for teens below 18. The younger users will be required to enter a passcode to continue watching videos if they want to binge beyond the limit. A 60-minute limit is also set for users under 13, with a parent needed to enter the passcode to allow access to 30 minutes of additional binge time. The new tools come amid growing criticism globally of content on the popular video-sharing platform and user data protection.

Psychedelic treatments could provide hope for anorexia sufferers, reports the Financial Times. Anorexics are often held captive by a powerful self-regulatory system in their prefrontal cortex which governs everything from social expectations to personal values. It leads to the reflex that makes some of us eat when we’re not hungry — because a co-worker brought cake into work for example — or in severe cases, not eat, because we’re afraid of putting on weight. It can be difficult for anorexics to distance themselves from the illness due to an overpowering system.

A journey to inner clarity? Clinical trials have integrated traditional therapy before dosings of psychedelic drugs, placing the patient in a session or “trip” that lasts six to eight hours. The trip provides successful patients with a “window of neuroplasticity,” a period of time in which they are given space from controlling thoughts that can be leveraged for behavioral change, says the FT. One patient said that following her experience, she had the mental capacity to ask herself, “Ok, now, you have a fresh start…Do you want to go back and live that way? Do you want to let that control you?”

Still, the clinical trials are not 100% successful: Why the “window” opens for some patients is currently unknown. And the results of the trials have been inconclusive, with little indication that they help patients put on weight and signs that patients may need repeat sessions. However, companies like biotech firm Compass Pathways have reported positive indicators during clinical tests for anorexia as well as depression and PTSD. Psychedelic drugs are “no magic solution” though, Compass Pathways' founder Ekaterina Malievskaia said. There is also a risk that the use of psychedelics as treatment will feed into a larger movement to “biologize” mental illnesses, ignoring cultural dynamics such as social media, which also contribute to the problem, according to Rebecca Lester, a psychological professor and anthropologist.

???? ON THE TUBE TONIGHT-
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A classic whodunit with a side of satire: Unwind after a long week with See How They Run. This laugh-out-loud satire takes Agatha Christie's The Mousetrap as its starting point, only to subvert expectations in an unpredictable story of murder and detection that will keep you on the edge of your seat. When a member of the play crew is murdered, the movie shifts its focus to a detective and his assistant as they work to hunt down the murderer. The 2022 whodunit mystery boasts stunning performances from Saoirse Ronan, Sam Rockwell, and Adrien Brody. Stream it now on Disney+ for all 98 minutes of thrilling suspense.

⚽It’s El Clasico day: At 10pm tonight, the first leg of the Copa Del Ray semifinal will pit Real Madrid against its longtime rival Barcelona. The second game will take place in April, and the team that wins overall will play the winner of the semifinal between Osasuna and Bilbao in the cup final in May.

On Friday, the Egyptian Premier League is heating up: Future FC and Ismaily will play at 5pm before the Pyramids v Zamalek clash kicks off at 7pm. Zamalek currently holds the league's fifth spot with 32 points, while Pyramids and Future are in second and third place with 38 points each.

Most of the major European leagues start new rounds on Friday as well:

• Bundesliga: Borussia Dortmund v RB Leipzig ( 9:30pm)
• Serie A: Napoli v Lazio (9:45pm)
• La Liga: Real Sociedad v Cadiz (10pm)

But the real action kicks off on Saturday, with several matches across different competitions: In the third round of the African Champions League group stage, Al-Ahly will take on Cameroonian Coton Sport FC at 6pm. For Red Devils supporters, the game is crucial because Al-Ahly has only one point from two games and is currently third in the standings behind South Africa’s Sundowns (7 points) and Sudan’s Al Hilal (6 points).

In the English Premier League: One of the day’s most notable matches kicks off at 2:30pm and brings together defending champions Man City and fifth-placed Newcastle, while leaders Arsenal play Bournemouth at 5pm. And in the rest of the matches:

• Chelsea v Leeds (5pm)
• Aston Villa v Crystal Palace (5pm)
• Wolves v Tottenham (5pm)
• Brighton v West Ham (5pm)
• Southampton v Leicester (7:30pm)

And the most notable games in the major European leagues:

• Bundesliga: Stuttgart v Bayern (7:30 pm)
• Serie A: Fiorentina v Milan (9:45pm)
• La Liga: Atletico Madrid v Sevilla (10pm)
• Ligue 1: Paris Saint-Germain v Nantes (10 pm)

???? EAT THIS TONIGHT-

Experience the best of La Dolce Vita at Jade. Say ‘Buongiorno’ to Downtown’s newest woodfire pizzeria. Located in the revamped Cinema Radio passageway, the curated menus offer a little slice of Italy. For those who love the classics, choose from fresh bruschetta pomodoro, creamy burrata salads, the cheesiest of Quattro Formaggi pizzas or a Vegetariana pizza topped with smoky eggplant and kalamata olives. If you’re looking to be more adventurous, we recommend the Turkish sausage calzone or the Carbonara pizza for pure novelty points. Don’t forget to finish with a chocolatey tiramisu or espresso for the full Italian experience. Just drinks you’re after? The antipasti menu pairs nicely with the house cocktail, the Jade Club. While the current cold(er) nights might see you sip your sangria inside, come summer, Jade’s alfresco courtyard vibes will be the perfect place for an after-work apéritif and a slice of pizza.

???? OUT AND ABOUT-
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Cairokee fans, you don’t want to miss this: Attend an exclusive, one-on-one interview with musician Amir Eid, hosted by veteran journalist Mahmoud Saad, tomorrow at Al Falaki Theater at 7pm, followed by a special acoustic night with unique music from Eid’s playlist.

Be part of Film O’Clock International Festival screenings at Zawya Cinema, running through 4 March: The international festival connects audiences by screening films across several countries simultaneously. The festival will screen old and new films from across Lithuania, South Africa, Greece, Egypt, Ukraine, Romania and Bulgaria.

Metallica and Linkin Park tribute bands Vyrus and Figure09 will take the stage at El Sawy Culture Wheel this Friday at 6pm, performing the two bands’ hits.

Komedy Koshk takes over the stage ‎at Rawabet Art Space on Saturday from 8pm-11pm. Don’t miss this lineup: Mina Selim, Ahmed Hassan, Mohamed Farghaly, Alaa Yaseen, Paula Rizk, Ahmed Salem.

American standup comedian Maz Jobrani is serving up his funniest punchlines at the Marquee theater at Cairo Festival city this Saturday 4 March. Get your tickets at TicketsMarche.

Catch Cirque du Soleil’s OVO this 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-

Philosophy Bites dishes out easy-to-swallow lessons in philosophy. David Edmonds, a philosopher and documentary filmmaker, and Nigel Warburton, a freelance philosopher and writer, talk with leading philosophers about a wide range of complex philosophical topics. Although the subject matter discussed in the episodes — which ranges from AI and ethics to the metaphysics of nothing — may seem daunting at first, the podcast does a good job breaking them down so they’re accessible to all listeners, even those with minimal knowledge of philosophy. The show also does a good job of choosing timely topics to discuss. The ideas of a number of famous philosophers from the past are also woven into the discussion.

???? UNDER THE LAMPLIGHT-

Meet the French archaeologist who took up a struggle against Gamal Abdel Nasser and Charles de Gaulle to prevent the Aswan High Dam from destroying Egyptian antiquities. In Empress of the Nile, we’re introduced to Christiane Desroches Noblecourt, an archaeologist who shattered the glass ceiling of the male-dominated field of Egyptology. She spent her days as the curator at the Louvre during WWII and fought for freedom in the French Resistance by night. But that wasn't all; she went on to become a field archaeologist and led a UNESCO delegation to Egypt when President Gamal Abdel Nasser announced his plans to build the dam, which was the center of a huge modernization push in the 1950s. She then launched what she referred to as a ‘David and Goliath’' attempt to relocate the temples to higher ground, using her charm to persuade Nasser's government to approve the initiative and to get the Kennedy administration, the French government and UNESCO heads on board.

Ibnsina Pharma’s net income dropped 45.2% y-o-y to EGP 172.6 mn in 2022, according to the company’s earnings release (pdf). Revenues, meanwhile, inched up 2.4% to EGP 22.3 bn, driven by increases in the average selling price. On a 4Q basis, net income dipped 26.7% to EGP 53.2 mn, while revenues rose 7.9% to EGP 6.5 bn.

The EGX30 fell 1.6% at today’s close on turnover of EGP 2.1 bn (4.1% above the 90-day average). Foreign investors were net sellers. The index is up 15.4% YTD.

In the green: AMOC (+2.2%), Oriental Weavers (+2.2%) and Rameda Pharma (+1.7%).

In the red: Eastern Company (-4.7%), Fawry (-4.1%) and Credit Agricole Egypt (-2.7%).

The US wants to beat China on chips: Rising geopolitical tensions with China have the US scrambling to onshore the manufacture of more parts and products. Nowhere is that more apparent than with semiconductors, or chips, which are a key component of everything from cars to computers, smartphones, appliances, and medical equipment.

Asia dominates global supply chains: Some 75% of the world’s semiconductor manufacturing capacity is located in China and East Asia, with Taiwan alone accounting for 92% of advanced chipmaking. Conversely, the US has seen its share fall from 37% in 1990 to just 12% in 2020 while Europe accounts for 9%. Western economies are forecast to see their share further decline over the current decade, falling to 10% in the US and 8% in Europe. East Asian economies, meanwhile, are projected to hold 77% of global market share.

A few big players produce most of the world’s chips. Taiwan Semiconductor Manufacturing Company (TSMC) is the world’s biggest chipmaker with a market share of almost 54% of global semiconductor revenues, while Korea’s Samsung has 16.3%, according to Statista. TSMC makes 24% of the world’s chips and more than 90% of the most advanced 5 nanometer (nm) chips used in US fighter jets, iphones, supercomputers, automotive AI, and highest end processors, according to a CNBC documentary (watch, runtime: 56:38).

They’re the same names driving innovation: TSMC and Samsung are among the only producers of the smallest and fastest 5 nm chips. Samsung last summer beat its rivals to the punch to manufacture the world’s first 3 nm chip, which the company says upgrades computing performance by 23%, decreases power consumption by 45%, and is 16% smaller than the 5 nm chip. US-based Intel is still struggling to produce its first 5 nm chip, Insider Intelligence reported last year.

The US is a major chip buyer — and it’s worried about its supply chain. North America accounts for 65% of sales generated by TSMC, according to the Financial Times. That statistic is making US policymakers and businesses worried about escalating tensions between Washington and Beijing over the status of Taiwan, where the company is based. Beijing last year stepped up military drills around the island amid a war of words with the US that saw President Joe Biden twice issue the unusual warning that the US would militarily defend Taiwan against an attack. “If China would invade Taiwan, that would be the biggest impact we’ve seen to the global economy — possibly ever” thanks to disruptions to chip supply, Glenn O'Donnell, vice president at research and advisory firm Forrester, told Insider.

Now Amreeka is playing catch up: The Biden administration is encouraging major chip makers to invest bns of USDs to build chip fabrication plants on US soil in a bid to hedge against any future standoffs with China that could trouble supply chains, according to the CNBC documentary. TSMC is building a mega USD 40 bn chip plant in Phoenix, Arizona that is expected to go live by 2024, with more expansion to come. Samsung, meanwhile, is building a USD 17 bn chip plant in Texas, also expected to start operations in 2024. And Intel is investing USD 20 bn for its own giant chip plant in Ohio, which should begin producing by 2025.

The Biden administration is offering handouts to chipmakers: US legislators last summer passed the CHIPS Act, which will offer some USD 39 bn in incentives and a 25% tax credit on capex spending to local chipmakers, as well as another USD 13.2 bn for research and development, according to a White House statement. Micron, Qualcomm and GlobalFoundries announced plans to invest more than USD 44 bn in total to build memory chips and semiconductors in the US in tandem with the introduction of the act.

But some still doubt the business case for US chipmaking. TSMC’s Phoenix project is facing doubts over its viability, the New York Times reports. “TSMC’s investment in the US from a business perspective makes no sense at all,” said Kirk Yang, the head of PE firm Kirkland Capital, citing high costs and managerial problems. Others suggest the plant is being built as a concession to the US for political reasons alone.

And the US incentives come with restrictions against doing business in China: Chipmakers who receive help through the CHIPS Act must pledge not to expand operations in China for a decade under new rules imposed by the US Commerce Department just last week, the Financial Times reports.The Biden administration also imposed a ban on US chip companies selling semiconductors to China in September, elevating its tech war against Beijing.