PM — Turning the tables on the influencer industry

Good afternoon, ladies and gentlemen. We’re having a (so-far) calm start to the week, but we’re expecting the pace to pick up as everyone shakes off the weekend cobwebs.

THE BIG STORY TODAY-

USD 2 bn for nine regional industrial projects: Government officials and private sector firms from Egypt, Jordan, the UAE, and Bahrain signed 12 agreements to set up nine new industrial partnerships in agriculture, meds, minerals, petrochemicals, and electric vehicles, with a total investment outlay of some USD 2 bn. The signing of the agreements wraps up a two-day meeting in Amman on our new USD 10 bn industrial partnership with our regional neighbors.

CORRECTION- We wrote in this morning’s EnterpriseAM that the industrial partnership meeting in Amman kicks off today and ends tomorrow. In fact, the meeting got underway yesterday and ends today. The story has been updated on our website.

THE BIG STORY ABROAD

The front pages of the international business press are split between the anniversary of the Ukraine War — which “changed Europe for good,” according to the New York Times — and how investors are preparing for an increase in market volatility. The stock market is starting to feel fear again with investors changing their minds about the likely course of future interest rate increases due to mounting evidence of persistent inflation, the Financial Times reports. Traders are acquiring hedges at the fastest rate since the onset of the pandemic to guard against a potential downturn, according to the Wall Street Journal.

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

• NGE to build Sokhna-Alexandria high-speed rail link: French construction firm NGE and its subsidiary TSO will construct half of the first phase of Egypt’s high-speed rail line. TSO will be responsible for laying the 330 km section of track connecting Ain Sokhna to Borg El Arab via Sixth of October.
• Dongfeng EVs land in Egypt: Chinese auto firm Dongfeng’s E70 500 Pro electric vehicles are now being sold in the Egyptian market, courtesy of distributor Misr Helwan Automotive.
• EKH to invest USD 170 mn in Egypt this year + reports record sales in 2022: Egypt Kuwait Holding plans to spend some USD 79 mn to up its stake in subsidiaries, and will invest USD 91 in existing projects.

*** 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: Our spinning and weaving industry is getting back on its feet. The Public Enterprise Ministry has developed a plan to revive several industries and create new ones through private-public partnerships, including the spinning and weaving industry.

???? CIRCLE YOUR CALENDAR-

The 4th edition of AUC Business Forum kicked off today and will run through Tuesday 28 February. The event features five roundtables on the changing role of business schools and how to remain relevant and impactful in society, with a lineup of distinguished scholars, practitioners, policymakers, and executives from Egypt and abroad. You can follow the forum as it unfolds in real time on the institution's Facebook page.

☀️ TOMORROW’S WEATHER- Expect a daytime high of 28°C tomorrow and a nighttime low of 14°C, according to our favorite weather app.

De-influencers are the new influencers: De-influencing social media followers not to buy certain products is a not-so-new trend that started picking up again in January, the Washington Post reports. Tiktok users are turning the tables on the influencer industry as content creators publish videos with honest reviews about products they think are not worth buying, for poor quality or overpricing. This seems to be gaining more follower traction than ever in light of the rising cost of living demonstrated by high inflation. “I think that the de-influencers are going to get such a following because negative information is believable,” said marketing professor at Georgetown University, Ronnie Goodstein. While some brands are asking de-influencers to give them another chance, others go as far as paying de-influencers not to talk about them, according to Goodstein.

Is China getting dethroned as king of the textile supply chain? Western fashion brands are veering away from a decades-long reliance on China for textile production as they navigate supply chain disruptions, higher labor and shipping costs, and labor laws, the Financial Times writes. UK-based shoemaker Doc Martens, for instance, outsourced just 12% of production for the 2022 autumn/winter collection to China, down from 27% in 2020, with plans to bring the figure down to 5% this year. Spanish clothing retailer Mango is on board with the shift. “What we’re looking at is the extent to which all this global sourcing, developed over many years, might become more local,” says CEO Tony Ruiz.

What’s driving the shift? Supply chain chaos kick-started by covid has ramped up freight costs and triggered shipping delays as the pandemic caught up with factory workers. The financial incentive to outsource to China has also been taken away by rising wages. The average factory wage doubled from CNY 46k per year in 2013 to CNY 92k per year in 2021. The US has also banned cotton goods from the Xinjiang region following its alleged use of forced labor in the production of cotton. And competition at home is taking off, with European clothing retailers rushing to cut delivery times in a bid to adapt to ever-changing fashion trends.

Turkey is gaining ground: Turkey has been propping itself up as a textile hub, a position advanced by its inclusion in the EU customs union, which facilitates trade between member states. “It is a popular destination and already used by the likes of Hugo Boss, Adidas, Nike, Zara,” procurement expert Simon Geale tells the FT.

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

The all-too-common tale of a failing relationship: Netflix’s Marriage Story documents the heartbreaking reality of a marriage falling apart, and although the plot may not sound particularly compelling at first glance, the lead performances from Scarlett Johansson, Adam Driver, and Laura Dern make this movie a must-watch. The film shows how the two protagonists work their way through divorce and custody battles over their son, battling through anger, sadness, and most importantly, their unwavering love for one another. The movie was praised by critics for its moving script and performances, and it was nominated for six awards at the 92nd Academy Awards. Be forewarned: This is not a film that shies away from the tough truths of life — it confronts them head-on, making for a poignant and powerful viewing experience (watch trailer, runtime 2:18).

⚽ Two major games will be played in England today, one in the league and one in the cup: Manchester United and Newcastle will face off in the Carabao Cup final at 6:30 pm, and the London derby between Chelsea and Tottenham has just kicked off at 3:30pm.

The competition for the top spot in the Enterprise Fantasy Premier League is heating up. Have you joined yet? If not, do not miss the action and the chance to win a prize from us. Hurry up and join by clicking here or entering this code: 8o4sut.

In the Egyptian Premier League: Smouha faces Haras El Hodood at 5pm.

In La Liga: Almeria hosts Barcelona at 7:30pm. Today's game is a chance for Barca to put more distance between themselves and their longtime rival Real Madrid, who is currently seven points behind after getting a hard draw against their neighbor Atletico yesterday.

And in the rest of the Spanish League matches:

Athletic Bilbao v Girona (3pm)

Celta Vigo v Valladolid (5:15pm)

Sevilla v Osasuna (10pm)

The Bundesliga title race heats up as three teams battle for first place: Don't miss the German League match between Bayern Munich and Union Berlin at 6:30pm. The two teams are in second and third place with the same number of points (43), but they played one fewer game than the team in first place, Borussia Dortmund (46 points).

Other notable European matches:

Milan v Atlanta (9:45pm)

Marseille v Paris Saint-Germain (9:45pm)

???? EAT THIS TONIGHT-

Tucked away in a shabby Zamalek mall is an unlikely gem—Thai restaurant Sabai Sabai: On first blush, El Masry Towers in Zamalek looks like a run-down, run-of-the-mill mall, but venture inside and you’ll unlock the treasured classic Sabai Sabai, an Asian restaurant that specializes in Thai cuisine. All of Sabai Sabai's locations are run by Thai chefs. It first opened in Zamalek in 2005 and has since spread to Nasr City and Sheikh Zayed, though the latter branch is on hiatus pending relocation. Take your pick from their hearty, ingredient-rich bowls of soup. We recommend the Tom Kha Kai, which is a mildly spicy but fully zesty chicken soup with coconut milk. And if heat is your weapon of choice, Tom Yam Koong tops the bill. The menu boasts a wide selection of entrees and noodles. Their succulent fried chicken fillet with cashew nuts is cooked to perfection. To end things on a sweet note, try their fried ice cream.

???? OUT AND ABOUT-
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Rock fans rejoice: 1984, Galab and Dabbet Namla are taking the stage at El Sawy Culturewheel’s Castle of Rock Festival on Tuesday 28 February at 7 pm.

Blues Rock band Foxxy takes the stage at Room Art Space Garden City, performing covers of several singers’ songs including Jimi Hendrix, Gary Moore and Stevie Ray on Thursday 2 March at 9pm.

Metallica and Linkin Park fans, you’re in luck: Tribute bands Vyrus and Figure09 will take the stage at El Sawy Culture Wheel on Friday 3 March at 6pm, performing the two bands’ hits.

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

???? UNDER THE LAMPLIGHT-

Has Slack taken over your life? Then you need to add Several People Are Typing to your reading list. Centered on the workplace-messaging tool, the humorous novel follows Gerald, an employee at a New York PR firm, whose consciousness has been uploaded into his company’s Slack channels. Gerald asks his coworker Pradeep for assistance in finding his body and getting out of his Slack hell. The novel examines office politics, the dynamics of working from home, and the pursuit of human connection. It also hits home for the diehard Slack users here at Enterprise HQ. “Humans are geniuses of communication, and we're going to find ways to connect with each other … There are also advantages for tremendous moments of grace and connections that you wouldn't have been able to make in person that you can make in this sort of more flat or more distant digital space,” author Calvin Kasulke said during an interview with NPR.

The EGX30 rose1.2% at today’s close on turnover of EGP 1.49 bn (25% below the 90-day average). Foreign investors were net sellers. The index is up 17.9% YTD.

In the green: Egypt Kuwait Holding- EGP (+4.3%), Telecom Egypt (+4.2%) and Juhayna (+3.0%).

In the red: Taleem Management Services (-2.5%), Rameda Pharma (-0.8%) and Fawry (-0.5%).