Good afternoon, friends, and happy hump day. We’ve got a hefty issue for you, so let’s dive in.

THE BIG STORY TODAY-

📍 Egypt’s non-oil private sector contracted at a slower rate in October, in a sign of a potential recovery after a long period in the red territory, according to S&P Global’s latest Purchasing Managers Index report (pdf). The country’s headline figure improved 0.4 points to 49.2 from the month before.

Despite the improvement, the sector is still in red, having stayed below the 50.0 threshold that separates growth from contraction for the last eight months in a row. The sector has only pushed up into the green twice since November 2020 and has a series average of just 48.2.

Output volumes hit their slowest pace in eight months, which was driven by improvements in the manufacturing sector outweighing continuing downturns in the services, retail, and construction sectors.

New orders also saw mild improvement under improved market conditions, but again it was manufacturing driving the good news, being the only sector to register an increase in order volumes.

But ratcheting up the pressure on businesses were input costs rising at their fastest rate in five months, driven in no small part by the quickest jump in wages since October 2020.

Looking ahead, the business community is more upbeat — or at least less pessimistic — than they have been recently, expecting an uptick in demand and overall economic conditions.

** We will have a full rundown of the report in tomorrow’s EnterpriseAM, with input and insight from the analysts we trust the most. Stay tuned.

THE BIG STORY ABROAD-

🌐 It’s a busy afternoon in the global press, with a number of stories getting plenty of ink:

The first major elections of US President Donald Trump’s second term are underway. Alongside gubernatorial elections in both Virginia and New Jersey and congressional elections in California, the mayoral showdown in New York is getting the most attention. The race — which is seeing unprecedented voter turnout — between 34-year-old Democrat Zohran Mamdani and Trump-endorsed former New York Governor Andrew Cuomo is set to draw to a close later tonight at 9pm EST.

If Mamdani secures victory in the polls, he would become the city’s youngest — and first Muslim — mayor, yet his victory might see federal funding for New York City cut, Trump threatened earlier, endorsing his opponent, Cuomo. “It is my strong conviction that New York City will be a complete and total economic and social disaster,” the US president said on Truth Social, referring to Mamdani’s potential victory. (CNN | BBC | Reuters | Guardian | Associated Press | New York Times)

OVER IN THE BUSINESS PRESS- US multinational coffee chain Starbucks is set to give up control of its operations in China to Chinese private equity firm Boyu Capital in a USD 4 bn buyout. The agreement would see both companies form a joint venture in which Boyu Capital holds a 60% majority stake. The news follows a steep decline in Starbucks’ market share in China, which fell to 14% in 2024, down from 34% in 2019. Boyu Capital is currently in talks for a loan to facilitate the acquisition. (CNN | Bloomberg | Associated Press | BBC)

ALSO- Former US Vice President Dick Cheney has died at the age of 84. Cheney served as the 46th vice president alongside former US President George W. Bush, and was a central figure in Bush’s “war on terror” following 9/11, having advocated for the war on Iraq. (CNN | BBC)

☀️ TOMORROW’S WEATHER- We’re in for another warm but slightly cooler day in Cairo tomorrow, with a high of 30°C and a low of 22°C, according to our favorite weather app.

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