All anyone, anywhere, can talk about is Trump’s “not a Muslim ban” ban

The Pharaohs made it through to the Africa Cup of Nations semis yesterday. We have coverage in Speed Round and a tiny bit of snark about Amr Adib’s enthusiasm in Last Night’s Talk Shows, below.

The search for a new cabinet lineup is ongoing, Prime Minister Sherif Ismail said, without revealing any other details on the shuffle, according to Al Masry Al Youm. Cabinet spokesman Ambassador Ashraf Sultan had said on Saturday that the new ministers will be announced this week, adding that there remains a possibility that some ministries will be merged.

Key meeting with African leaders on politics, trade and Nile water: US President Donald Trump makes for more compelling headlines, but we’re keeping our eyes on a series of meetings President Abdel Fattah El Sisi is set to have on the sidelines of the African Union summit in Addis Ababa. Al Masry Al Youm reports that El Sisi is due to meet with Ethiopian Prime Minister Hailemariam Desalegn as well as the presidents of Kenya and Congo-Brazzaville. Relations between Egypt and Ethiopia have ‘recovered’ since Ethiopian officials falsely accused Egypt of supporting opposition forces, Egyptian ambassador to Ethiopia Abu Bakr Hefny is quoted as saying.

Beltone Financial starts off its four-day investment conference in Cairo today with the theme “Africa’s Era, Egypt’s Moment.” The conference will include meetings with company executives, members of government, and investors representing funds that collectively manage over USD 4 tn in assets under management.

The wave of cold weather isn’t quite over: Meteorologists are expecting chilly weather today with the possibility of light rain in some parts of the country, Egypt Independent tells us.

US President Donald Trump’s so-called Muslim ban is just about all the world is talking about this morning. Sitting in Cairo, here’s what you need to know:

Can you go to America? There’s widespread confusion as to who, exactly, may be exempt from US President Donald Trump’s ban on travel to the US by citizens of seven Muslim-majority countries, including Iran, Iraq, Sudan, Somalia, Syria, Yemen and Libya. Canada, for example, says it has been assured by the White House that “people can enter the U.S. provided they have a valid Canadian permanent resident card and a passport from one of the seven countries affected.” The same report notes, however, that the US State Department said the ban applies to dual nationals from the seven countries, while the UK has claimed that its nationals can freely travel to the US.

Green card holders will be admitted, at each individual US immigration officer’s discretion: US Homeland Security Secretary John Kelly issued a brief statement late yesterday reading in full: “In applying the provisions of the president’s executive order, I hereby deem the entry of lawful permanent residents to be in the national interest. Accordingly, absent the receipt of significant derogatory information indicating a serious threat to public safety and welfare, lawful permanent resident status will be a dispositive factor in our case-by-case determinations.”

What can green card holders expect? Per a CNN piece widely picked up by US television stations: “Here is the process for US green card holders from Iran, Iraq, Sudan, Syria, Somalia, Libya or Yemen as CNN understands it now: They are allowed to board their plane and fly to the United States. Once they land, their fingerprints and other information will be collected and they will be subject to a secondary interview, in part, to judge whether the traveler is a national security risk.”

Could Egypt make the list? It’s difficult to rule that out after comments yesterday from a senior Trump advisor (see Last Night’s Talk Shows for more).

Egypt is the inadvertent victim of fallout from the ban, with liberal media in the US noting that Trump has not banned immigration from Egypt and other countries with which the US president has in the past done business. “Among them are Saudi Arabia, the United Arab Emirates and Egypt. A vast majority of people living in these countries, like the people living in the seven subject to the immigration ban, are peaceful and law abiding. But these three countries have exported terror to the United States in the past,” an op-ed in the New York Times notes. The WSJ has also picked up the refrain in a piece headlined “Countries Under U.S. Entry Ban Aren’t Main Sources of Terror Attacks.”

Were airlines in Cairo asked to implement Trump’s travel ban? There are conflicting reports on whether or not Cairo airlines have been asked to help implement US President Donald Trump’s executive order barring citizens holding US immigration visas from seven countries from entering the US. EgyptAir official Hossam Hussein told Reuters that airlines have indeed received a request to bar citizens from these countries from boarding US-bound flights, while Al Mal reports that EgyptAir issued a statement denying the request had been received. Seven US-bound migrants — six from Iraq and one from Yemen — were reportedly prevented from boarding an EgyptAir flight to JFK on Saturday.

The ban is also affecting flight crews on US-bound flights, according to an International Air Transport Association (IATA) memo carried by Reuters.

Thousands of Americans protested against the ban at airports over the weekend, with the Associated Press documenting the turnout in this photo essay.

The US business community is stepping up to the plate, with Apple, Google and Facebook emailing their staffs to criticize both the Muslim ban and the ban on refugees, the FT reports.

Go drink some Starbucks this morning. We’ll always prefer locally owned and operated cafés, but we’ll be buying a cup of coffee from Starbucks this morning after Howard Schultz, the company’s founder and CEO (and a man long criticized in these parts for his unwavering support of Israel) announced the company will hire 10k refugees in 75 countries over the next five years in response to Trump’s bans. Schultz’s email to staff of yesterday is a master class in effective internal comms and PR at the same time — read it here.

Emirates NBD PMIs for Egypt, the UAE and Saudi Arabia are due to be released on Sunday, 5 February.

The Central Bank of Egypt’s Monetary Policy Committee will meet on Thursday, 16 February, to review interest rates.

Could Egypt and Saudi Arabia be added to Trump’s Muslim ban? Debate in the House over misappropriating cars? Pharmacists back on strike? All this and more coming up. But first, we’d like to take a chapter from The Official Amr Adib Playbook and abruptly interrupt your scheduled program to celebrate Egypt’s victory over Morocco in the Africa Cup of Nations. The win secures the Pharaohs a spot in the semi-finals. No one does an abrupt cut to yelling live on the air quite like you, Mr. Adib (watch, runtime: 1:46).

Hona Al Assema’s Lamees Al Hadidi quoted White House Chief of Staff Reince Priebus’ statement to NBC that Egypt and Saudi Arabia are among countries that could be included in Donald Trump’s not-Muslim (but coincidently Muslim) ban (watch, runtime: 1:35). Lamees spent almost half the episode discussing the ramifications of The Donald’s executive order, but she did find time to get Egypt’s victory out of her system (watch, runtime: 7:17).

Cabinet spokesperson Ashraf Sultan spoke at length on the Ismail cabinet’s decision to establish an authority to manage the Golden Triangle project (more on that in the Speed Round, below). Al Hayah Al Youm’s Lobna Assal, Sultan only said the long-awaited cabinet shuffle is still in the works. As we have previously noted, the shuffle has been plagued by a string of candidates reportedly refusing appointments to cabinet (watch, runtime: 5:35).

Has the House of Representative appropriated EGP 18 mn to buy three cars? Sherif Amer dove into the controversy on MBC last night after Rep. Mohamed Al Sadat stirred up the controversy in the House, pushing for an inquiry into the issue. Al Sadat asked House Speaker Ali Abdel Aal: “Considering all what was said by the President on saving and the nation’s economy, how can we spend EGP 18 bn on cars?” House Economics Committee Deputy Chair Yasser Omar said the House was investigating the issue, but noted the funding was earmarked for the purchase of up-armored cars.

Also on Amer’s show last night: The pharmacists strike is back on and scheduled for 12 February, said Pharmacists’ Syndicate treasurer Emad Mikail, who cried in his cups that his members were ‘snubbed’ by the government over their misgivings about the January med price increases. Boo [redacted] hoo. Meanwhile: The Interior Minister had sacked 45 policemen for conduct unbecoming.

When he wasn’t celebrating the match (watch, runtime: 10:56), Kol Youm’s Amr Adib spoke on the new agricultural subsidy cards, which would provide farmers with fertilizers, fuel and financing, with the Agriculture Ministry spokesperson Hamed Abdel Dayem (watch, runtime: 3:10).

MP and film director Khaled Youssef appeared on 90 Minutes last night to his arrest yesterday at Cairo International Airport for alleged possession of a well-known anti-anxiety medication. Youssef told host Moataz El Demerdash that the prosecution released him after his wife’s doctor confirmed that the meds were for her. She lives in Paris, which is why he was travelling with them in the first place, he added (watch, runtime: 11:58). The story was widely reported in the local press and among the talking heads. The 25-30 coalition, which counts Youssef as one of its members, said earlier in the day that the arrest was a smear in retaliation for its stance against the return of Tiran and Sanafir islands to Saudi Arabia.

Baker & McKenzie is expecting M&A activity in Egypt to be driven by foreign buyers in the wake of the float. The international law firm’s Global Transactions Forecast sees total M&A activity in Egypt this year rising nearly 23% to USD 2.5 bn in value, while the number of expected transactions is set to remain constant at 65. Notably, Baker sees lower appetite from Egyptian firms (with total transaction value set to decline to USD 835 mn from USD 1.5 bn last year) and rising appetite from international buyers (expected to engaged in 53 transactions worth 1.7 bn, up from 34 worth USD 563 mn last year). The law firm also sees Egypt being home to IPOs worth USD 431 mn this year against USD 202 mn last year in USD 645 mn in 2015. The landing page for Baker & McKenzie’s Global Transactions Forecast 2017 is here, or you can skip straight to the download on Egypt (pdf) or download the full report here (pdf).

The details of Egypt’s eurobond issuance are out: Egypt successfully priced a USD 4 bn multi-tranche international bond issuance consisting of USD 1.75 bn five-year, USD 1.0 bn 10-year, and USD 1.25 bn 30-year notes. BNP Paribas, the joint bookrunner and lead manager on the issuance, said the transaction was 3.1x oversubscribed with a total order book in excess of USD 12.25 bn. Investor distribution was balanced between investors in the Americas and Europe across tranches with the remainder going to Middle East and Asian investors. BNP Paribas also said the 10-year tranche was priced flat to Egypt’s existing curve with “negligible new issue premium.” The transaction is largest ever bond issuance out of Africa and also the continent’s first triple-tranche bond issuance.

The government is also considering issuing international bonds in currencies including the Japanese Yen and the Chinese Yuan, Finance Minister Amr El Garhy said at a joint press conference yesterday with Deputy Finance Minister Ahmed Kouchouk. He added that it was too early to say when Egypt might next go to the debt market or how much it would seek to borrow, Reuters reports. That said, senior ministry officials tell Al Borsa that the ministry has reached out to Japanese Bank for International Cooperation for a guarantee on Yen-denominated bonds. El Garhy added that the bond issue had covered the financing gap for the FY2016-17 fiscal year and portion of the FY2017-18 gap. El Garhy said that the success of the issue is a sign that the investing community has taken note of the Ismail government’s reform agenda.

Banks and investment firms bought 92% the issuance, with the rest being placed with hedge and pension funds, Kouchouk said, noting that the yields on the bonds are on par with comparable economies including Nigeria, Ghana and Ecuador.

** VAT executive regulations this week: Also at yesterday’s presser, El Garhy said the executive regulations for the value-added tax act would be issued this week. The finance minister also reiterated that the government will “thoroughly study” how to best impose a stamp tax on stock market transactions to avoid riling the market.

Investors are “rushing” to snap up structured notes tied to Egypt: Bloomberg’s Viren Vaghela says investors are “rushing” to hold structured notes tied to Egypt following the EGP float. Citigroup issued all of the recorded credit-linked notes this month, raising a total of EGP 2.3 bn, the most for a single month on record, according to data compiled by Bloomberg. Aberdeen Investment Management says it has returned to investing in Egypt with an investment manager saying “the country’s fundamentals remain challenging but we decided to start investing into local currency instruments again … Our investment strategy is very opportunistic and cautious as the market is very choppy and illiquid.” Bilal Khan, MENAP senior economist at Standard Chartered, was more bullish: “The staff report from the IMF suggests things are heading in the right direction for Egypt … Given the large recent depreciation of the pound coupled with high yields I would expect further flows to the domestic debt market this year.”

Still-sour relations with KSA could see Egypt returning USD 500 mn deposit, plus interest: Talks with Riyadh to have KSA extend the life of a USD 500 mn deposit that expired in the first half of the state’s current 2016-17 fiscal year appear not to be going well. Al Masry Al Youm cites unnamed government sources as suggesting that Riyadh may not agree to renew its deposit, prompting the CBE to return the USD 500 mn and pay out some USD 40 mn in interest. That meshes with our view on Egyptian-Saudi relations amid reports that Saudi is stalling on paying the second tranche of a USD 1.5 bn development loan.

Fancy a summer home in Cyprus? Naguib Sawiris has started marketing his EUR 220 mn Cypriot luxury real estate project, Ayia Napa Marina, to investors in the UAE, Zawya reported. The project will create Ayia Napa’s first “elite area,” Sawiris said. Sawiris and his Cypriot business partner Stavros Caramondanis said they are seeking to replicate the Dubai’s lavish property skyline on the Mediterranean with the project, explaining that Cyprus, like Dubai, offered a business-friendly and safe environment for investment. Less seriously, Sawiris says “if you don’t drink, you don’t like partying, music or tranquility and beauty and you don’t like boats, snorkeling, surfing…we would not want you.”

The Ismail cabinet approved the establishment of an authority to manage the Golden Triangle region. The new authority will be similar in structure and function to the Suez Canal Economic Zone, and will be charged with developing the economic prospects of the area, Al Shorouk reported. Trade Minister Tarek Kabil said that the project will focus mainly on mining activities, agricultural industries, and tourism. The government had completed a 15-month study on the project last December ahead of the move.

We made the Afcon semis. We made the Afcon semis. If the honking outside your window hadn’t clued you in: Egypt has made it back to the top four of the Africa Cup of Nations for the first time since 2010. Yesterday’s 1-0 victory over Morocco courtesy of Mahmoud Kahraba’s electritrifying (pun most definitely intended) goal (watch, runtime: 1:24) in literally the final seconds. Egypt’s victory over Morocco — the first since 1986 — will see the Pharaohs compete with Burkina Faso and heavy hitters Cameroon and Ghana for the top spot. Egypt play Burkina Faso on Wednesday at 9 pm CLT; Ghana and Cameroon are set to meet on Thursday.

Committee to govern building of churches formed: Prime Minister Sherif Ismail formed a committee to govern the issuance of permits to build churches, Al Masry Al Youm reports. The committee, mandated by a law on the construction of churches passed last year, includes representatives from the Christian community as well as military, security, housing, antiquities and local development officials, among others.

Emerging markets private equity giant Abraaj Group is planning to raise USD 5-8 bn from investors in 2017 to create its largest fund, sources told Bloomberg. Abraaj is planning to raise the money from a pool of regional and international investors by the end of 2017 the source said, adding that the plans are in early stages and the size of the fund could fluctuate. CEO Arif Naqvi had said Abraaj is “raising an investment fund this year that will have a global focus as the company seeks opportunities in defensive industries such as health care and education” but did not provide details.

Egypt’s win over Morocco last night (securing a semi-final berth at the African Cup of Nations) is far and away the biggest story on Egypt this morning as the international press focuses on the transgressions of The Donald rather than those of Egypt. See coverage from the Associated Press, ESPN, Eurosport, the Guardian, BBC Sport and the Daily Mail (the latter with tons of game photos), among dozens of others. Or check out our hometown favourite, King Fut. The Pharaohs will play Burkina Faso on Wednesday.

The top business story on Egypt this morning is Reuters’ piece on Finance Minister Amr El Garhy saying at presser yesterday that “Egypt is considering issuing international bonds in currencies such as the Japanese Yen and the Chinese Yuan.”

On caesarian sections and cabinet appointments (we kid you not): The light in which Egyptians view the opportunity to be a minister has changed, Abbas El Tarabily writes for Al Masry Al Youm, drawing what can only be described as an eyebrow-raising analogy between mothers opting for C-sections and individuals who have declined the opportunity to serve in cabinet. While the political scene used to be full of what Egyptians call “Abdo the Yearner” clamoring to secure a gig as a minister, most are now wary of joining cabinet as tensions are running high in the country, El Tarabily says.

The New Yorker’s Louis Menand covered the “Photography and Discovery” show at the Clark Art Institute, in Williamstown, Massachusetts. The exhibition displayed around 30 photographs, mostly pre-1900, that Menand calls curatorially unpretentious and “well worth a visit.” One the of photographs on display is, the one pictured above, Francis Frith’s “The Pyramids of El-Geezdeh from the Southwest” (albumen print, circa 1860). Menand says it is “almost an early-photography cliché” as the Pyramids of Giza were professional favourites because: “(a) they’re not going anywhere, and so they tolerate long exposure times, (b) they offer excellent formal elements for contrast, such as, for example, when a side of the pyramid that reflects light abuts a side in shadow, and (c) they enable photography to do what early photography (and, later, early cinema) loved to do, and what vacation pictures the world over do today, which is to bring the exotic back home. The level of detail Frith was able to render is virtually high-def. Each individual stone can be made out on a pyramid that must be half a mile from the camera.”

GOAT: Ageless Roger Federer has shown the world why he is arguably the greatest tennis player of all time after beating Rafael Nadal in five sets yesterday to win the Australian Open. In yet another chapter of one of tennis’ greatest rivalries, Federer’s win was his first against Nadal in a Grand Slam since 2007 and gave him his 18th Grand Slam victory and his fifth Australian Open title. The match featured the spectacular tennis that has come to define the Federer-Nadal rivalry. You can watch the highlights here (runtime 07:27).

Terror funding cooperation with UAE: Egypt Money Laundering and Terror Financing Combat Unit inked a memorandum of understanding with the UAE that will see the two countries deepen cooperation in their clampdown on terrorist financing, Al Ahram reports.

The French Development Agency is prepared to contribute funding for the east Alexandria wastewater treatment plant project, the Alexandria tram development project, and a primary healthcare support project, Al Ahram reports.

Egypt will open the Rafah border crossing into the Gaza strip from Monday-Friday to allow critical cases and humanitarian aid through. The news comes after as the Deputy Head of Hamas Ismail Haniyeh concluded what The Associated Press is calling a “successful visit to Egypt.”

The Oil Ministry is studying refining Iraqi crude at the Middle East Oil Refinery (MIDOR), unnamed sources tell Al Mal. MIDOR is seen as the most capable of refining Iraqi crude, but the refinery is currently running at full capacity, the source added. If capacity is not freed at MIDOR, sources say other options include refining at the Amreya Petroleum Refining Company or the Alexandria Petroleum Company. Iraqi crude, which is scheduled to arrive between February and March, can provide 9-10% of domestic demand for refined petroleum products, the source added. Egypt is set to import 1 mn bbl of crude from Iraq each month.

The first phase of Siemens’ power stations in Beni Suef, Burullus, and the new administrative capital will be inaugurated by President Abdel Fattah El Sisi in March, sources at the Electricity Ministry told Al Borsa. The first phase will add generation capacity of 4,800 MW to the national grid. Siemens announced it expects the stations to be completed and connected to the grid by the end of October 2017.

The government has begun implementing the smart card system for heavy fuel oil and diesel supplied to factories and power plants, Oil Ministry representative Mohamed Othman told Al Borsa.

The Electricity Ministry will be presenting the Ismail cabinet with demands made by renewable energy companies in the second phase of the feed-in tariff program in two weeks, Al Borsa reported. The primary issue is the exchange rate at which FiT companies will be paid.

Six companies have reportedly filed papers to acquire cement production licenses from the Industrial Development Authority (IDA), unnamed sources tell Al Mal. The IDA tendered 14 cement licenses at the end of 2016, but only awarded three (to Egyptian Cement, South Valley Cement, and El Sewedy Cement). The IDA then opened tenders for the remaining 11 this month and has set no deadline for applications.

Royal Ceramica is planning on opening a new plant with a production capacity of 20k square meters per day within the next quarter and is looking to boost its exports by 5% this year, the company’s director of exports told Al Shorouk.

The Misr Italia Group is reportedly planning to sue the Tourism Development Authority (TDA) for ‘ignoring’ its request to amend the terms of an installment plan in light of the EGP float, Al Shorouk reported. The company had purchased 150k sqm of land in Ain Al Sokhna and another 2 mn sqm on the North Coast at USD 150 per meter and had asked the TDA to set an exchange rate for payments based on the USD’s average pre-float value.

Qatari Diar’s hold up with the City Gate project is reportedly having an impact on its other projects. State-owned Al Montazah for Tourism and Investment issued a warning to Diar that it would file a lawsuit against the company if it fails to meet delivery on its 300K sqm resort in Sharm El Sheikh, Al Shorouk reports. Diar had asked for a one-year extension last month for the project, stating that the troubles in its City Gate project in New Cairo had kept it from meeting deadlines on other projects. The City Gate project in New Cairo has been on an indefinite hiatus since last year, when Diar claimed that armed men had taken control of the compound.

Amer Group and Travco are among five companies that intend to bid for the rights to develop what is being billed as a tourism mega project in the Suez Canal area, sources tell Al Shorouk. The Suez Canal Economic Zone will formally begin the tender process within days, according to authority chief Ahmed Darwish.

The Tourism Development Authority (TDA) is targeting 8 mn tourists this year, a 50% increase over 2016, regardless of whether Russia and Italy restore flights to Egyptian resorts, said Ahmed Shokry, head of the TDA’s international tourism department. He said that the ministry will target non-European markets and ratchet-up promotional campaigns. He tells Al Shorouk that should Russia decide to allow flights, the target will expand to 10 mn tourists.

Travco plans to invest EGP 3 bn between 2017-18, Chairman Hamed El Chiaty told Al Borsa. The company aims to expand with resorts and hotels in Marsa Alam, Hurghada, and Cairo, as well as attract 750k tourists during 2017, he added.

The CIT Ministry will provide mobile network operators with 4G spectrum in April, unnamed sources tell Al Borsa. The MNOs will receive their allotted 4G spectrum according to a predetermined schedule set with the NTRA, the source added.

The General Authority for Roads and Bridges has imposed a USD 500 toll fee on transiting trucks carrying goods from one country to another by crossing through Egypt. The fee was imposed as a protectionist measure to help local trucking companies, the authority’s vice president told Al Borsa. On a related note, Jordan is looking to renew an agreement which allows its trucks to load up on goods in Nuweiba and return to Jordan without paying toll fees. The agreement is set to expire in April.

The Port of Alexandria has backed out of signing a contract with Sesco Trans to construct a drydock, two years after having awarded the company the contract. The stated reason: the company’s insistence on including a non-compete prohibiting the construction of another drydock at the port for 25 years, Alex Port head Medhat Attia told Al Shorouk. An unnamed source from Sesco Trans told the newspaper that the clause in question would only give the company priority in future tenders on drydock works at the port.

Attijariwafa Bank is set to complete its payment for the acquisition of Barclays Egypt in full “within days,” unnamed sources tell Al Mal. Completing the payment was delayed as Attijariwafa awaited regulatory approvals in Morocco. Sources said the acquisition will be finalized within weeks of the transaction.

Contractors falling behind on their projects will not be reimbursed for FX losses incurred after the EGP float under the Contractor’s Compensation Act, according to amendments introduced by the House of Representatives, Al Shorouk reported. The Council of State (Maglis Al Dowla) is currently reviewing the amendments before sending the legislation back to the House for a vote.

The House of Representatives is reportedly waiting on President Abdel Fattah El Sisi to sign off on the USD 12 bn IMF loan and send it to parliament for discussion, according to Al Borsa. MPs said the House would likely discuss the loan in two weeks, we presume, because neither them or their aides appear to be able to download the report. On a related note, parliament is also set to vote on the USD 1.5 bn AfDB loan today, Al Mal reports.

A Cairo court sentenced Salafist politician and onetime presidential candidate Hazem Salah Abu Ismail to five years in prison on Sunday, for urging his supporters to violently “besiege” a courthouse in 2014, Ahram Online reports. Abu Ismail has been serving a seven-year sentence since 2014 on charges of forging documents during the 2012 presidential elections.

Women-run organizations are growing to make up larger portions of businesses in the Middle East, according to Wamda. However, there is still a long way to go as the proportion of female-led businesses in the region is still below the global average of 30% and growing at a slower rate comparatively.

Fast food chain Cook Door is looking to grow its footprint in Assiut, Fayoum, Luxor, South Sinai, Hurghada, Alexandria and Greater Cairo, according to Al Borsa.