PM — Optimism abounds

Good afternoon, friends. We have a rather busy issue for you to sink your teeth into at the start of the week, so let’s get right into it.

We’re looking at a short work week: The country’s banks will be closed this Thursday, 26 January in observance of Police Day and the 25 January revolution, the Central Bank of Egypt confirmed in a statement today, following announcements from Prime Minister Moustafa Madbouly and the Manpower Ministry. We expect the EGX to follow up with its own announcement later today or tomorrow.

THE BIG STORY TODAY

valU is gearing up for its second securitization program: EFG Hermes’ buy-now-pay-later platform valU is studying a new EGP 5 bn securitization program which it hopes to start later this year, CEO Walid Hassouna told us.

DRIVING THE CONVERSATION- The global financial press is banging the drum of optimism, post-Davos: In an about turn from the doom and gloom of the past 12 months, a string of positive PMI data, China’s re-opening, and growing evidence that the global economy has passed peak inflation has produced a mood shift among the Davos elite, financial markets, and the financial press alike. “The worst fears for global growth may be subsiding,” declares Bloomberg. “Things are looking up for the global economy,” says the Financial Times. Kristalina Georgieva, head of the IMF, summed up the newfound optimism at last week’s World Economic Forum: “it is less bad than we feared a couple of months ago.”

THE BIG STORY ABROAD-

Dominating the front pages of the international press this afternoon: 10 people were killed and at least 10 others were injured following a mass shooting in California’s Monterey Park last night, according to police reports. The attack came following Lunar New Year celebrations and forces are currently working to locate the suspected gunman. (Reuters | CNBC | BBC | NPR)

HAPPENING NOW- Water and Irrigation Minister Hany Sewilam is in Sudan to discuss cooperation on water resources between the two countries. Sewilam arrived in Khartoum yesterday for a two-day visit — his first since he assumed office as minister in August last year, according to a statement.

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.

The Enterprise FDI + Exports Forum asks a simple question: Where do we go from here?

The Enterprise FDI + Exports Forum is the latest in our series of must-attend, invitation-only gatherings for C-suite-level business leaders, where they can talk openly and honestly about important issues in key parts of the economy. The gathering, which will take place in May 2023, will focus on how to start making moves across continents, including:

• What do we have to sell to global markets, including products and services? What should our priority industries be?
• How can you break into an export market? How can you make your business a component of the global supply chain? Hear directly from potential partners and buyers about what they’re looking for.
• How to leverage big domestic trends — and turn them into even massive export opportunities.
• How to climb the value-add ladder in a way that matches up with trends in key export markets.
• How do you choose an export market? What countries should Egyptian businesses be looking at as export targets — and why?
• What are foreign investors looking for? How can you pitch them on a JV — or on investing in your business?

Think of the Enterprise FDI + Exports Forum as a hands-on lab for how to turn the float of the EGP into something that will turbocharge your company.

COMING IN MAY — stay tuned for updates.

Want to partner with us on the conference? Ping a note to Moustafa Taalab, our head of commercial, here.

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

• Higher yields + weaker EGP could bring foreign investors back to the market: Foreign investors who sold out of Egypt last year are once again looking at Egypt’s debt market on the back of a cheaper EGP and record yield.
• GB Capital sells a 45% stake in GB Lease to Chimera Investments: GB Capital has finalized an agreement to indirectly sell 45% of its leasing business, GB Lease, to our friends at Chimera Investments for EGP 855 mn.
• EGX-listed private equity firm B Investments intends to invest EGP 2 bn in the healthcare and food sectors in 2023, with plans to close an acquisition of a healthcare company in 1Q 2023, followed by a transaction in the food sector in 2Q 2023.

*** 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: A government decision to implement fresh 11% subsidized loans for industry and agriculture this week is giving manufacturers a sense of optimism amid a wave of turbulence for struggling industries.

???? CIRCLE YOUR CALENDAR-

The Cairo International Book Fair will open its doors to the public at the International Exhibition Center in New Cairo this Thursday, 26 January. The event runs until 6 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- Tomorrow’s going to be slightly warmer than today, with our favorite weather app telling us to expect a daytime high of 23°C and nighttime low of 14°C.

The space race: US v China edition: Six decades after the US and Soviet Union’s Cold War-era space race, it’s now Washington and Beijing who are scrambling to assert their dominance in outer space, the Washington Post writes. While the US and Soviet Union’s space race was predominantly about technology and resources, the contemporary version also has strong diplomatic and political implications, with the US pushing to create alliances with other major players, the Post says. These alliances — which are being formalized under the 2020 Artemis Accords that outline “a common set of principles to govern the civil exploration and use of outer space” — are meant to ensure that certain countries with which the US might not have strong diplomatic ties here on Earth are better aligned with Washington in outer space.

What’s the big concern when it comes to China? China successfully launched the Chang’e 4 explorer to the far side of the moon in January 2019, putting it in direct competition with the US as a space power — a position the US wants to continue leading with the advancements of its technology. But beyond maintaining its political capital, the US is also concerned about the exploitation of resources in outer space. The space industry could reach USD 1 tn in annual revenue, Citigroup analysts estimate, according to CNBC. Planets, including the moon, also hold precious resources that the US, China, and others want to mine and take advantage of, setting the stage for uncontrolled competition.

Can social media giants effectively moderate livestreams? Livestream video, which has grown in popularity as a communication medium, creates unique difficulties in moderating content that platforms are scrambling to overcome as they prepare for the possibility of strict new regulations throughout Europe, The Financial Times reports. Livestreaming “quickly balloons the sheer number of hours of content beyond the scope of what even a large company can do,” CEO of AI content moderation business Hive Kevin Guo tells the salmon-colored paper. Even large platforms like Facebook are unable to moderate the amount of content produced through the medium, he explains, and several businesses, including Guo’s, are vying to develop technologies that can keep up.

Livestreaming’s growth has raised questions on how to restrict harmful content without obstructing the vast majority of harmless content or violating users' privacy rights. These issues have reached a critical point in the UK, as the government aims to enact an online safety bill this year to compel internet companies to monitor both illegal content and information that is technically legal but considered detrimental to minors. The bill would, if passed, encourage social media platforms to adopt age-verification technology and impose fines on companies that fail to safeguard children on their platforms. The EU is preparing a broader piece of legislation that is also anticipated to have a substantial effect on the industry. Both aim to make age verification substantially more stringent, which is currently mostly assessed by platforms asking users to input their dates of birth to determine whether they are under 13.

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

The Witcher: Blood Origin tells the story of how the first Witcher was created. The plot takes place in an elven world, some 1.2k years before the events of the Witcher, a monster hunter. The tetralogy begins with events of war, death, deception and conquer, and illustrates how unity can triumph over any force. The show centers on three formidable soldiers who were the last of their clans to survive an evil conqueror’s purge of their race — seizing power over the entire continent. Despite being natural rivals, the three must band together in order to reclaim their lands. They encounter other survivors along the journey and convince them to join their small army and battle as one. The limited series is available to watch on Netflix.

⚽ In the 21st week of the English Premier League: The Arsenal v City race continues. The tense battle between Arsenal and Manchester City continues as City, in second place with 42 points, plays against Wolverhampton tonight at 4pm, while Arsenal, in first place with 47 points, faces Manchester United at 6:30pm. Leeds United and Brentford are also scheduled to play today at 4pm.

Happening in the Egyptian Premier League: El Dakahleya v Arab Contractors (5pm).

In LaLiga today: Villareal v Girona kicked off at 3pm, with the score currently at 0-0. Later tonight, Elche meets Osasuna at 5:15pm, Barcelona goes head-to-head with Getafe at 7:30pm, and Athletic Bilbao v Real Madrid is scheduled for 10pm.

The most important matches in Serie A and Bundesliga:

Borussia Dortmund v Augsburg (4:30pm)

Borussia Monchengladbach v Bayer Leverkusen (6:30pm)

Spezia v Rome (7pm)

Juventus v Atlanta (9:45pm)

REMEMBER- Juventus fell back to 10th place in the league standings, following a court’s decision to deduct 15 points from the Italian giant’s balance due to financial violations. Now, the gap between Juventus and leaders Napoli widened by 28 points. The Old Lady’s administration has decided to file a final appeal against the decision.

????EAT THIS TONIGHT-

Babel serves up both outstanding ambiance and delicious food at once. Originally founded as one of the finest restaurants in Dbayeh, Lebanon, Babel has implemented its remarkable concept in design across its branches, mimicking the outside architecture of a castle’s yard, and offering an unparalleled loft ceiling experience. Moreover, Babel stands out with a distinctive cuisine, giving popular Lebanese dishes — from mezzat to main courses — a fine-dining twist. We are especially fond of the Fattet Shrimps, and the tender and flavorful Ras Asfour. Babel Egypt is located in Waterway 5A, New Cairo.

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

Don’t miss out on The Comedy Bunch at Room New Cairo tonight at 9pm, hosting stand up comedians Ahmed Marzouk, Marwan Fares, Ahmed El Hareedy, Bernadette, and Ahmed Hassan.

Enjoy a night filled with the best jazz beats with The Gypsy Jazz Project, performing at Cairo Jazz Club in Agouza at 9pm.

???? UNDER THE LAMPLIGHT-

Five Minutes in the Morning: A Focus Journal that doesn’t take up too much of your time. Many of us waste time on unproductive habits, but are (or think we are) too busy for self-care. This book trims the fat of other wellness journals by directing the reader in simple ways to track their progress, stay motivated, and always plan ahead for their day. It’s divided into six parts, each of which focuses on a different theme that assists you in focusing on a niche aspect of life, such as focusing on priority areas and problem solving. The journal allows for writing and reflection, while providing prompts, insights, and actionable steps for introspection and self-appreciation.

MARKET NEWS-

Alexandria Containers and Cargo Handling will distribute EGP 1.67 bn worth of dividends, it said in an EGX disclosure (pdf). The company will pay out EGP 1.1127 per share on 13 February.

MARKET ROUNDUP-

The EGX30 rose 0.3% at today’s close on turnover of EGP 2.15 bn (26.4% above the 90-day average). Regional investors were net buyers. The index is up 10.4% YTD.

In the green: Housing and Development Bank (+10.3%), Juhayna Food Industries (+6.0%) and Palm Hills Development (+5.1%).

In the red: Alexandria Containers and Cargo Handling (-2.3%), Eastern Company (-1.9%) and Heliopolis Housing and Development (-1.7%).