PM — EGX snaps its red streak

Happy THURSDAY, wonderful people. We’re never sure if the summer slowdown is real, but we’re almost certain that summer Thursdays can earn the “slowest day of the week” superlative.

THE BIG STORY TODAY

The EGX finally reversed a streak in the red, jumping 5.3% today on much higher turnover than we’ve become used to seeing from the bourse. Some EGP 2.03 bn worth of shares traded hands before the closing bell, which is 60.2% above the 90-day trailing average, with local investors accounting for the bulk of the activity. The index is still down 16% YTD, however.

ALSO- Chimera Investments’ EGP 384.8 mn acquisition of a majority stake in Beltone Financial is now official after Chimera’s mandatory tender offer for Beltone was executed today on the EGX. Chimera has acquired a 56% stake in the company, buying 259.1 mn shares of Beltone.

THE BIG STORY ABROAD

The Bank of England just delivered its steepest rate increase in 27 years, deciding today to raise interest rates by 50 bps to 1.75%, according to a statement from its monetary policy committee. The central bank pointed to spiraling inflation — which hit 9.4% in June, “well above” the bank’s 2% target — as the key reason for its decision, but warned that the UK is likely to fall into a recession over the next year. The story, which is topping coverage in the international business press this afternoon, is on the front pages of the Wall Street Journal, Reuters, Bloomberg, and CNBC.

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

• Activity in Egypt’s non-oil private sector continued to contract at a rapid pace in July as high inflation weighed on demand and output.
• The SCA still wants to take some of its companies public: The Suez Canal Authority (SCA) is considering listing three of its companies on the EGX by the end of 2022.
• Private sector partners can still get in on the new state EV charging company: Qualifying bidders looking to manage and operate the soon-to-be-established state company that will manage a network of electric vehicle charging stations now have until Wednesday, 31 August, to submit their offers.

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???? CIRCLE YOUR CALENDAR-

We’re on the lookout for a number of key macro figures this week and next:

• Foreign reserves figures for July are expected between today and early next week;
• Inflation data for July will land on Wednesday, 10 August.

The Central Bank of Egypt will meet to discuss interest rates on Thursday, 18 August.

The 19-member board of trustees of the National Dialogue will hold its next meeting on 27 August, where it will choose the rapporteurs for all of the committees and subcommittees of the social, political and economic tracks, and prepare the agenda and topics of discussion for the dialogue.

PSA- Startups have until Wednesday, 31 August to apply for the fall 2022 cycle of EGBank’s Mint Incubator. The incubator, backed by Cairo Angels, offers a three-month program for startups with existing products. Startups can apply for the program here.

☀️ TOMORROW’S WEATHER- It’s probably a good idea to head to the beach this weekend, as our favorite weather app tells us to expect the mercury to hit daytime highs of 37°C tomorrow and on Saturday. Expect the temperature to cool to 25°C tomorrow and 24°C on Saturday.

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WE’RE LOOKING FOR A SMART, TALENTED HEAD OF PEOPLE to help us develop and deliver a comprehensive people strategy to help grow Enterprise and our sister company, Inktank Communications. Attracting and retaining top talent is the lifeblood of our business — are you the right person to help us do it?

WHO YOU ARE- Our Head of People is responsible for aligning HR practices with business objectives and works alongside some very smart people, including our C-level and leadership teams, to design and develop HR strategies and monitor their effectiveness. Candidates should have at least 10 years of experience in human resources, with extensive knowledge of key HR disciplines including performance and talent. We are looking for someone who isn’t afraid to challenge, innovate, experiment, and move at a fast pace — not to mention creating some very cool new things to drive people engagement and improve a high-performance culture.

INTERESTED IN APPLYING? To apply for the Head of People, drop us a line at jobs@enterprisemea.com and mention “Noha” in your subject line — she’s our outgoing Head of People and the first person who’s going to be reading your application. Please send a solid cover letter telling us a bit about who you are and why you’re a good fit for our team. We want to see your CV, but the most important thing is a cover letter that makes us want to pick up the phone and give you a call.

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You may be used to having your streaming experience interrupted with ads, but Netflix is still getting its head around the ad world: The streaming giant is being forced to contend with an ad-supported subscription after weathering two consecutive quarters of subscriber losses and losing roughly two-thirds of its stock value this year, the Wall Street Journal reports. Netflix has always balked at running ads, but the change of heart comes amid a bloated landscape of competitors and the reality of growth challenges, bolstered by Netflix’s market research showing customer satisfaction hadn’t dipped for subscribers using Hulu and HBO Max’s ad-supported plans. The company’s historic disdain of ads means that it’s “pivoting from a position of weakness,” with a quick shift of gears requiring it to build a side of the business from scratch, the WSJ notes.

Luxury brands are diving further into the NFTs cryposphere despite the “crypto winter” slump. Gucci has expanded payment methods to include ApeCoin at some of its stores, while Tiffany & Co. launched NFTs as a way to create custom physical jewelry, Bloomberg reports. These moves coincide with a weakening NFT market alongside a wider crypto wipeout of USD 2 tn from the total sector value. However, luxury consumer companies continue to see NFTs (explainer) and Web3.0 (explainer) as a way to reach and engage with customers. In fact, a crypto startup head tells the business information service that brands may actually be pleased that price speculation has dropped. The recent launches would appear to show their belief in NFTs as a way to engage their consumers digitally, not just making a quick dime.

Did you have a kind pandemic boss? That “kind CEO” era may be fading away: After executives and management teams showed support and understanding for their employees during (trigger warning) unprecedented times, a downturning global economy is now forcing them to have tougher conversations amid tightening budgets, the Wall Street Journal says. Tech giants Google and Meta have been urging staff to work with greater intensity using fewer resources, and low performers are being weeded out. CEOs appear to be bracing for an incoming recession by adjusting strategy and policies for the economic downturn, ditching remote work and forcing staff back into the office to push sharper focus and prioritization of projects. However, executives warn the WSJ that bosses should tread the hard line carefully in a climate where unemployment remains low and great hires can jump ship if management policies are too strict. “Great leadership is as steady as possible, it’s not very efficient to hit the accelerator and slam on the brakes all the time,” Zillow’s CEO tells the WSJ.

???? ON THE TUBE TONIGHT-
(all times CLT)

Mon’ataf Khatar: The Arab version of Danish criminal drama series The Killing: Mon’ataf Khatar (Dangerous Turn) — Shahid’s Egypt-based remake of Nordic Noir series The Killing — follows detective Hisham Montasser (played by Syrian actor Bassel Khayat) as he works to solve the murder of TikTok influencer Salma (Salma Abu Deif). The stakes in the case are high, as Salma’s body is found in the trunk of a high-profile member of society, but as the investigation progresses, the case gets increasingly complicated as the different elements of the situation are unveiled. Other than having a pretty solid thriller storyline, Mon’ataf Khatar delivers some great acting from Khayat and actress Riham Abdel Ghaffour.

⚽ The countdown to the return of the European leagues has begun, with just a day and a few hours left until our favorite championships kick off. But first:

In the Egyptian Premier League tonight: Smouha meets Ceramica Cleopatra, while Eastern Company faces off against Enppi at 6:30pm, while Al Masry v Talae’ El Gaish is scheduled for 9pm.

The good stuff begins tomorrow-

Crystal Palace and Arsenal are cutting the metaphorical ribbon for the start of the English Premier League when they hit the field at 9pm for the sole match in the UK tomorrow.

Don’t forget to update your Premier League Fantasy — the cutoff is tomorrow at 7:30pm. You can also join the Enterprise Fantasy League here or by using the code 8o4sut.

The Bundesliga kicks off with Eintracht Frankfurt v Bayern Munich at 8:30pm, bringing together the Europa League champion and the Bundesliga title defender.

Over in France’s La Ligue, Lyon plays host to Ajaccio at 9pm.

The Egyptian Premier League also continues tomorrow, with El Gouna v Zamalek kicking off at 9pm. This match is a chance for the White Knights to widen its berth in its league standing: The club is currently in the lead with 66 points, ahead of Pyramids FC (59 points) and Al Ahly (56 points).

On Saturday: The English Premier League has six matches scheduled, starting with Fulham v Liverpool at 1:30pm. At 4pm, we have another four matches: Tottenham v Southampton, Bournemouth v Aston Villa, Leeds v Wolverhampton, and Newcastle v Nottingham Forest. The last showdown of the day between Everton and Chelsea FC begins at 6:30pm.

In the Bundesliga, we recommend tuning into Borussia Dortmund v Leverkusen at 6:30pm.

Here at home, Pyramids FC hosts Arab Contractors at 9pm as the former looks to play catch-up with Zamalek in the Egyptian Premier League. We also have Future v Ghazl El Mahalla and Pharco v Ismaily FC — both of which kick off at 6:30pm.

Barcelona meets Mexico’s Pumas UNAM in the Joan Gamper friendly at 8pm.

Other friendlies: AC Milan v LR Vicenza at 7pm, while Inter plays against Spain’s Villareal at 8:30pm and Napoli takes on Espanyol, also at 8:30pm.

???? EAT THIS TONIGHT-

Luxury lifestyle brand Baky Hospitality, creators of fan favorites Sachi and Kazokou, bring us a brand new concept in Almaza Bay, Megumi. The Japanese bar serves sushi and all sorts of little bites, including edamame, salmon tacos, and truffled beef. The menu was curated by Chef Tarek Alameddine and has a few stand out items, in our humble opinion: The bao bites with short ribs and caramelized onion are super juicy, with the onions adding a sweet touch, and the shrimp gyozas are extremely flavorful without being overpowering. The restaurant was designed by Alchemy Studio to match Almaza Bay’s vibrant energy and the bar has a DJ that plays different music to suit each night’s mood.

???? OUT AND ABOUT-
(all times CLT)

You can watch Autostrad perform their latest single “Baghaybak” tonight at 8 pm at Zamalek Theater.

Get the weekend started with Egyptian Project’s performance of Egyptian folk fusion at Cairo jazz club tonight at 9 pm.

Okasha is taking over the stage at Kempinski Nile Hotel’s Jazz Bar for a night of blues, jazz and soul.

Want to be the one doing the singing? Karaoke Night at Room New Cairo starts at 8pm.

???? EARS TO THE GROUND-

EARNINGS WATCH-

Sidi Kerir Petrochemicals’ bottom line jumped 65.4% y-o-y in 1H2022 to EGP 468 mn, according to the company’s financial statements (pdf). The company’s sales increased 45.3% y-o-y during the period to EGP 3.88 bn.

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MARKET ROUNDUP-

The EGX30 rose 5.3% at today’s close on turnover of EGP 2.03 bn (60.2% above the 90-day average). Local investors were net buyers. The index is down 16% YTD.

In the green: e-Finance (+18.7%), Fawry (+18.6%) and EKH-EGP (+11.5%).

In the red: Juhayna (-0.3%), QNB Alahli (0%).

Global tourism has continued to rebound from its terrible start to the decade in this year despite the rising economic and geopolitical crises caused by the war in Ukraine, according to figures published this week by the UN World Tourism Organization (UNWTO). The number of international arrivals more than tripled during the first five months of the year, with almost 250 mn people traveling for overseas holidays against just 77 mn in the same period in 2021.

Putting this in perspective: Global tourism is still to fully recover from the impact of the covid-19 pandemic, two-and-a-half years after it began. Arrivals in the January-May period were less than half (46%) of levels in 2019 before the pandemic began.

Leading the recovery are Europe and Americas: Europe saw international arrivals more than quadruple during January-May 2022 thanks to growing regional demand and the lifting of covid-19 travel restrictions. Tourism numbers in the Americas more than doubled compared with the same period last year. Despite the pick-up in arrivals, figures remain well below pre-pandemic levels at 36% and 40%, respectively.

MENA + Africa tourism figures more than doubled: Similar to Europe and the Americas, MENA and Africa regions are also witnessing a growth in tourist arrivals, up 157% and 156% y-o-y, respectively. Again, both remain below 2019 levels.

Going forward: The UNWTO sees international arrivals climbing to between 55% and 70% of pre-pandemic levels this year, with arrivals depending on geopolitical and economic challenges, it said. “Results depend on evolving circumstances, mostly changing travel restrictions, ongoing inflation, including high energy prices, and overall economic conditions, the evolution of the war in Ukraine, as well as the health situation related to the pandemic,” it said. Disruptions caused by staff shortages, airports congestion and flight delays and cancellations could also have a negative impact on arrivals.

Europe and the Americas will consolidate their status further in top tourist-receiving countries this year, the UNWTO predicts. It sees tourist arrivals in Europe up to 65% or 80% of 2019 levels, with the Americas reaching 63% to 76% of pre-pandemic levels.

Africa, MENA get a share of optimism: International tourist arrivals in Africa and the Middle East could reach 50% to 70%, it said. The UN body isn’t very optimistic about Asia and the Pacific, saying that arrivals would remain at 30% of pre-pandemic levels as a best-case scenario due to harsher imposed policies and restrictions.