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Thursday, 3 March 2022

THIS MORNING:UN General Assembly says no to Russia’s war + It’s PMI day

Well, friends, we’ve nearly made it through another workweek together — just a few more hours left. We hope your calendar of meetings is kind to you today and that traffic is bearable for folks who have external meetings.

THE BIG STORY here at home on this fine Thursday morning intersects with the BIG STORY ABROAD: Egypt sided with Ukraine at a rare emergency session of the UN General Assembly, where diplomats voted 141-5 to call on Russia to end fighting in Ukraine. Some 35 countries abstained, but Egypt and the GCC joined the vast majority of the international community in censuring Moscow despite traditionally good relations with Russia.

Two stories we love this morning: Gulf Capital said yesterday it will invest more in Egypt and open an office in Cairo from which to explore Africa. With a deep talent pool, unbeatable cost structure relative to the Gulf, and traffic perhaps set to get better as major infrastructure work wraps up (please, God), more countries need to look at Omm El Donia as a regional hub.

Meanwhile, Homzmart pulled a baller move and acquired a German studio — not in a bid for market share, but to add new functionality to its platform. It’s a foray reminiscent of Apple’s approach to M&A.

^^ We have more on all three stories in the news well, below.

PSA- The mercury plunged overnight, so you can look forward to a high today of 19°C and then 20°C tomorrow, according to our favourite weather app.

MUST-WATCH VIDEO OF THE MORNING- A couple of you were outraged yesterday that we suggested (by quoting Kareem Faheem) shatafa was a mark of an advanced civilization. We’re doubling down on that claim this morning and STRONGLY suggest that watching this quick, hilarious advertisement for the brilliant technology is the ultimate way to start your morning. Big love to director Mohamed El Zayat.

(Editor’s Note: The video is totally suitable for work and for little ears, but if you don’t like our potty humour, don’t tap / click.)

And to our underlying point in quoting Faheem yesterday: What’s happening in Ukraine is tragic. But there is unquestionably a double standard racism in the dichotomy between how Europe is embracing Ukrainians fleeing war and how it reacted when Arabs did the same.


HAPPENING TODAY- It’s PMI day: Purchasing managers’ index figures for February for Egypt, Saudi Arabia, the UAE, and Qatar will be released today at 6:15am CLT — you can find them all here when they’re out. Non-oil business activity in Egypt contracted for the fourteenth consecutive month in January on the back of weaker demand and inflationary pressure, recording the lowest reading since April 2021 and falling below the series average.

SMART POLICY- The interior and planning ministries have launched tech-equipped mobile traffic vans to issue licenses and inspect vehicles (watch, runtime: 4:57). Renewing your license costs EGP 400 at the units. Dial 15558 hotline to book an appointment to have them come to you. (Disclosure: We haven’t tried it yet). The service is rolling out in Cairo, Giza, Alexandria, Aswan and Matrouh in phase one.

ITIDA and the Software Engineering Competence Center are hosting a webinar on intellectual property management for entrepreneurs at 11am this morning. The event will look at the importance of patent mining for startups and talk attendees through how to file a patent. You can register to attend here.

SOME GOOD NEWS IN DARK DAYS- “Historic” plastic pollution treaty gets UN green light: Nearly 200 international leaders have agreed to create a legally binding treaty to end plastic pollution, in a UN resolution adopted yesterday, Reuters reports. The framework — due to be finalized by 2024 — is scant on details but could place restrictions on plastics production.

ATTENTION iSHEEP- A new, cheaper iPhone could be dropping next week: Apple announced an 8 March launch event promising only “Peek Performance,” but iSheep across the board are expecting new products including the new “more affordable” iPhone SE, a mid-range iPad Air, and possibly new Macs. You can catch the event at here at 8pm CLT.

MARKET WATCH-

US markets rebound as Fed head Powell says rate hikes will proceed with caution: Wall Street stocks gained on Wednesday, after US Federal Reserve chief Jay Powell signaled that he is not in favor of a drastic half-point rate hike when the central bank meets later this month. Powell said a “series” of more typical quarter-point hikes would likely be in order to get a handle on US prices, which are running at their highest in four decades, the Financial Times reports. “The bottom line is that we will proceed, but we will proceed carefully as we learn more about the implications of the Ukraine war for the economy,” Powell told Congress. US markets rose on Powell’s remarks, Bloomberg reports.

MEANWHILE, IN EUROPE- Eurozone inflation hit a record high in February, rising to 5.8% y-o-y, up from 5.1% in January and 0.4 percentage points higher than analysts had expected, according to the European Central Bank (ECB). The forecast adds to worries that war in Ukraine will pressure prices in the bloc still further — and may further entrench a split between hawkish and dovish ECB members on how best to proceed, the Financial Times reports. Some members are calling for the bank to hold its nerve and start tightening policy this year to bring inflation down, while others want to wait and see how badly the war impacts growth before making a move that could cause unintended damage.

OPEC+ is trying to look the other way as a war started by one of its leading members rages on, Bloomberg reports. Officials from the oil producing nations agreed yesterday to stick to their plans for a modest production increase of 400k barrels per day in April, ignoring the Ukraine crisis and wrapping up their meeting in just 13 minutes. Also not addressed: the soaring price of oil, which passed USD 112 per barrel yesterday as Russia’s invasion of Ukraine rattles the markets.

CIRCLE YOUR CALENDAR-

Key news triggers to keep your eye on over the next few weeks:

  • Foreign reserves: February’s foreign reserves figures will most likely be announced today or next week.
  • Inflation: Inflation figures for February will be released a week from today, on Thursday, 10 March.
  • Interest rates: The Central Bank of Egypt (CBE) will hold its next monetary policy meeting on Thursday, 24 March.

Contemporary art and culture center Darb1718 is hosting its 3031 Art Festival from tomorrow until next Saturday, 12 March on its premises in Fustat, Old Cairo. Unique collections of multidisciplinary art will be on display along with live music, dance, theater performances, and interactive workshops. Guest speakers Adsum Art Consultancy will be on hand to discuss investing in art. Catch a full day of activities from 1:00pm–9:30pm on weekends and weekdays from 4:00pm–10:00pm

The Diarna Handicrafts Fair kicked off last Thursday and runs through 7 March at Cairo Festival City from 10am until 10pm daily.

PodFest Cairo kicks off on Saturday at AUC’s Tahrir campus. The half-day podcasting conference runs from 2pm to 6pm. Admission is without charge and there’s no need to register.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

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