PM — Are museums going to become a thing of the past?

Good afternoon, wonderful people. We have a relatively brisk start to this first full work week of February, with a little bit of everything happening.

THE BIG STORY TODAY

Private sector starts the year with sharper contraction: Activity in Egypt’s non-oil private sector contracted at a quicker pace in January, according to S&P Global’s purchasing managers’ index (pdf). January’s PMI reading fell to 45.5 in January from 47.2 a month earlier — marking the 26th consecutive month of contraction — as high inflation and the weakening EGP continue to weigh on businesses.

THE BIG STORY ABROAD

Picking up where we left off this morning, the international business press is still mostly leading with the US shooting down a suspected Chinese spy balloon. The story is on the front pages of the Financial Times, CNBC, Bloomberg, and the Wall Street Journal.

HAPPENING NOW-

Former Prime Minister Sherif Ismail’s military funeral is currently underway, with President Abdel Fattah El Sisi and several government officials in attendance, according to an Ittihadiya statement. Ismail passed away yesterday at the age of 67 following a battle with illness.

TAKE OUR JANUARY ENTERPRISE READER SURVEY and get a chance to break bread with us: Give us your thoughts on how 2022 panned out for your business and industry, and what you’re expecting in the year ahead in our Enterprise Reader Survey.

We’re asking you to share your expectations on the EGP / USD rate in 2023, how you’re managing expenses amid the rising cost of living, where you see your industry as a whole heading, and whether you expect to make fresh investments — among a few other questions we ask our community on a regular basis. As is our custom, we’ll be sharing the results with all of you in a few weeks’ time to help you shape your view of the year.

You can take the Reader Survey here — it won’t take more than a few minutes to complete.

Want to have a meal with us? Leave your name, email, mobile number, and where you work in the box for “Is there anything else you want to tell us.” We’ll be inviting eight participating readers to a meal at one of our favorite restaurants.

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

• CBE unexpectedly holds interest rates steady in its first meeting of the year: The Central Bank of Egypt (CBE) left interest rates unchanged on Thursday, defying expectations of a third consecutive hike.
• Egypt’s current account deficit narrowed by 20% to USD 3.2 bn in 1Q 2022-23 on the back of higher FDI, exports, and tourism revenues, according to CBE figures.
• Govt lays out the details of in-school tutoring scheme: The Education Ministry will launch an in-school tutoring scheme across all governorates at the start of the second semester of the academic year next week, Education Minister Reda Hegazy told reporters on Thursday

*** It’s Inside Industry day — your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

In today’s issue: After a bumper 2022, the fertilizer industry in Egypt is broadly expected to have another strong year in 2023 — albeit with a slight slowdown as market dynamics shift.

FOR TOMORROW-

Operation Save Lebanon: Egyptian officials are attending an international meeting in Paris called by France to discuss how to end a political impasse in crisis-hit Lebanon, AFP reported, citing statements by the French Foreign Ministry’s spokesperson. Officials from Saudi Arabia, Qatar and the US will also be in attendance.

???? 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.

The key remaining news triggers this month:

• Foreign reserves: The central bank will release January’s foreign reserves figures this week.
• Inflation: The CBE and Capmas will publish inflation data for January at the end of this week.

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- It’s getting chillier: Expect the mercury to dip to a high of 16°C during the day, with our favorite weather app bracing us for some strong winds. The temperature will drop to a nighttime low of 9°C.

Naguib Sawiris moves up the list of 500 wealthiest b’naires: After briefly dropping off the Bloomberg B’naires Index in 2021, Egyptian tycoon Naguib Sawiris made his comeback on the list in 2022, and is currently ranked at 472 on the daily ranking of the world’s 500 richest people. Naguib’s estimated total net worth is currently at USD 5.6 bn, as of today, up USD 502 mn since the beginning of the year. His brother Nassef sits ahead of him on the list, at 309, with an estimated total net worth of USD 7.56 bn, up USD 533 mn since the beginning of the year.

Bernault Arnault is at the top of the list, followed by Elon Musk and Jeff Bezos. Arnault — France’s richest person and chairman of LVMH, the world’s largest luxury goods maker, sits at the top of the list with a net worth of USD 196 bn, according to the index. Tesla and Twitter chief executive, Musk holds the second spot with a net worth of USD 175 bn, followed by Bezos with a net worth of USD 128 bn.

Dealmakers are getting creative to keep debt low when expanding their portfolios, whether through new companies, large stake acquisitions, or complete takeovers, reports the Financial Times. Private equity firms and buyers are leaving old loans on books, to prevent taking on large debts in a tough lending climate of rising interest rates and limited credit options — allowing them to take on new investments without straining their wallets.

Portable Capital Structures (PCSs) are becoming a go-to move for savvy corporate buyers looking to acquire businesses, as they provide a direct liquid investment option that eliminates the need (and headache) of raising additional funds. PCSs require buyers to have strong debt ratings. The powers-that-be are particularly suspicious of PCSs, knowing the acquisitions might result in them holding debt that becomes riskier than when they first agreed to buy it, according to the FT.

Keeping debt in place during a transfer is a real asset, an executive told the FT. It can pay to hang onto this debt as transfer mechanisms like change of control provisions (which force buyers to refinance and repay existing loans) won’t be triggered if dealt with in just the right way. Secondary transfers — wherein new investors become minority stakeholders without setting off alarm bells — offer one such solution for those wanting strong outcomes but hold weaker financial profiles.

???? ON THE TUBE TONIGHT-
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Real-life Squid Game 2.0? Physical: 100 is a new Survivor-esque reality TV series that brings together 100 of South Korea’s greatest athletes and celebrities for a series of grueling physical challenges as they fight to become the last one standing and claim a prize of KRW 300 mn (about USD 240k). The show has drawn comparisons to the viral South Korean drama Squid Game for its ruthless premise and backbreaking challenges, one of which sees contestants hanging from metal bars on a ceiling until they drop off into the water below. Our two cents: It's entertaining to watch a diverse group of contestants — men, women, YouTube stars, K-pop dancers, and Olympic gold medalists — compete in this fight-to-the-death style. While there’s no ruthless killing a la Squid Game, the tensions run pretty high throughout the hour-long episodes. Episodes are out weekly on Netflix.

This is not to be confused with Netflix’s take on a real-life Squid Game show — set to be titled Squid Game: The Challenge — which garnered controversy before it even aired. Several contestants were recently reported to have collapsed on set due to what they called “inhumane conditions,” like working long hours in the UK’s freezing weather.

⚽ Today in the Egyptian Premier League:

• Dakhiliya faces Aswan at 2:45pm
• Ghazl El Mahalla plays Haras El Hodoud at 2:45pm
• Al-Ittihad faces Ismaili at 7pm
• Cermica Cleopatra plays Enppi at 7pm

In the English Premier League Tottenham faces Manchester City at 6:30pm. City will enter the match with no option but to come out on top if it hopes to stay in the competition. Current league leaders Arsenal are up 5 points, with one less match to play than City. Nottingham Forest’s match against Leeds kicks off at 4pm.

Don’t forget to subscribe to our Enterprise Fantasy Premier League. Follow this link or enter the code 8o4sut to join.

Barcelona and Real Madrid’s race for the top continues: Mallorca v Real Madrid kicked off at 3pm, and is still ongoing as we dispatch, with the score currently at 1-0 for Mallorca, while Barcelona plays against Sevilla at 10pm. Also in La Liga tonight:

Girona v Valencia (5:15pm)

Real Sociedad v Valladolid (7:30pm)

Bundesliga: Wolfsburg hosts German league leaders Bayern Munich at 6:30pm.

And in Italy’s Serie A: Spezia’s match against leaders Napoli kicked off at 1:30pm and is still continuing with a score of 2-0 for Napoli. Meanwhile, the Milan derby between Inter and AC Milan kicks off at 9:45pm.

???? EAT THIS TONIGHT-

Multicultural ambiance at Pink Blanket Mama: This new spot in New Cairo’s Garden 8 is a restaurant-library-gallery hybrid with a really impressive ambiance. Pink Blanket Mama's relaxed — yet superbly decorated — atmosphere puts it high on our list of favorite Cairo spots, and it's bound to become one of the city's most Instagrammable spots. The restaurant’s “Mama” comes from a multicultural background that has seen her move from Cairo to London, Taiwan, New York, and Tulum, and her menu reflects that — from Taiwanese bao to tacos and ramen; the menu has it all. We loved the beef buttery noodles and the pink cloud drink — it tasted great, and looked even better in our Instagram photos.

???? OUT AND ABOUT-
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Komedy Koshk is taking over Comedy Night at Room New Cairo tonight at 8pm, with must-see sets courtesy of this lineup of local comedians: Noha Kato, Mohamed Farghaly, Abdoul, Laila Khalid and Mohamed Nasr and an opening act by Seif Kamel.

Dust off your dancing shoes: Intro to swing dancing kicks off at 8pm tonight at Minglings Heliopolis.

Don’t miss Irtigalia performing the third edition of the Maestro Improv Format by Keith Johnstone at The Tap West tomorrow at 8pm.

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

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.

???? UNDER THE LAMPLIGHT-

Should museums as we know them today be canceled? Museums have recently come under fire for their imperial and colonial biases as well as their refusal to return foreign artifacts. In his new book, The Museum of Other People, visiting anthropology professor at the London School of Economics, Adam Kuper looks back at museums’ heyday in the Western world in the second half of the 19th century, when colonialism was thriving across Africa and Oceania. The purpose of museums at the time was to display “primitive” objects from various exotic locations to demonstrate how far Western civilization had progressed. He traces the evolution of these “museums of other people,” as he calls them, from Copenhagen to Washington, DC, but warns that in today’s drastically different climate, they may be on the verge of extinction. The aftermath of World War II saw a period of decolonization during which museums started to lose popularity. More recently, discussions about cultural appropriation and movements like Black Lives Matter have raised serious questions about the future of such institutions. Kuper outlines some of the changes that museums must make in order to adapt and survive.

The EGX30 rose 0.1% at today’s close on turnover of EGP 1.77 bn (2% below the 90-day average). Local investors were net sellers. The index is up 11.4% YTD.

In the green: Palm Hills Development (+10.3%), GB Auto (+9.2%) and Talaat Moustafa Group (+3.1%).

In the red: Taaleem (-4.1%), Qalaa Holdings (-4.0%) and Ibnsina Pharma (-3.1%).