Khamaseen season is here

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WHAT WE’RE TRACKING TONIGHT

THIS EVENING: Sumitomo Electric breaks ground on 10th Ramadan pigtails cable factory + Khamaseen season is fully upon us

Good afternoon, wonderful people, and welcome to the weekend. We write to you as many parts of the capital city appear to be in the midst of an apocalyptic-looking sandstorm. Here in the Republic of Maadi, we can definitely see and feel the dust, but it’s not looking as bad as elsewhere.

THE BIG STORY TODAY

Sumitomo Electric broke ground on the first phase of its new pigtails cable factory in 10th Ramadan City, according to a Trade and Industry Ministry statement. Sumitomo had planned to invest USD 100-150 mn in the project initially, Sumitomo Egypt Managing Director Ahmed Magdy previously told Enterprise. The factory is expected to produce cables for 1 mn cars per annum and provide 3.5k new jobs, according to the statement.

THE BIG STORY ABROAD

The debt ceiling bill passing Congress is still leading the conversation in the international business press. The bill was successfully passed days before anticipated and will be heading towards the Senate. This step tips the scales towards the US avoiding a default by 5 June, should they be able to pass the Senate and then have Biden give his signature as a seal of approval. Bloomberg | Financial Times | CNBC | BBC | Reuters | Wall Street Journal

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

An energy firm will soon make its debut on the EGX, according to EGX boss Ramy El Dokany, who didn’t name the firm.
A new pipeline project between Cyprus and our LNG plants: The developers of Cyprus’ Aphrodite field plan to build a subsea pipeline linking the offshore gas reservoir to an Egyptian LNG processing facility.
Aur Leasing closes second securitized bond issuance in as many months: The leasing arm of private equity outfit Aur Capital has closed a EGP 1.1 bn securitized bond issuance.

ENTERPRISE IS LOOKING FOR SMART, TALENTED PEOPLE of all backgrounds to help us build some very cool new things. Enterprise — the essential morning read on all the important news shaping business and the economy in Egypt and the region — is looking for writers, reporters and editors to help us build out new publications. Today, we run four daily Egypt and MENA-focused publications, five weekly industry verticals, and a weekend lifestyle edition designed to make our readers feel just a bit smarter.

We have tons more in the pipeline — come help us build new publications. We offer the chance to work in a fast-paced newsroom on a broad range of topics and in a variety of formats. Our goal is simple: To create value for our growing community of >250k daily readers by telling stories that matter.

Journalists looking to explore business, finance and economic stories are welcome. So are recent journalism school graduates.

That said, we're looking for gifted story-tellers from all walks of life and across all professions, as long as they show a keen interest in learning to write about the stories, topics, businesses, and figures moving markets. Egyptian and foreign nationals alike are welcome to apply. So are job-switchers: If you’re an equities analyst tired of the rat race, we’re a great place to come work.

NEVER WORKED IN A NEWSROOM BEFORE? We have the Enterprise Business Writing Development Program. Whether you are a recent graduate, an industry vet, or looking to switch careers, the Enterprise Business Writing Development Program will give you the tools you need to tell the most important stories to our audience of C-suite officials, government ministers, diplomats, financiers, investors and entrepreneurs.

During the program you will learn:

The key news stories and trends shaping business and the economy in Egypt and the region, across various sectors;
Business and finance for non-finance people: Whether it's industry jargon or key concepts or simply how to read a balance sheet;
How to construct an Enterprise story: From idea formulation down to the structure, style and tone of writing;
How to develop sources that will give you the key insights needed to tell a complete story;
How to communicate these stories with the confidence and language of an insider.

Not an internship program — a career: The three-month program will see full-time, paid participants take part in workshops and lectures from veteran business journalists, while also working on and filing stories that will run on any of our publications. Those who have successfully completed the program, will then be given long-term job offers.

Apply directly to jobs@enterprisemea.com and mention “writing development program” in your subject line.

☀️ TOMORROW’S WEATHER- We’re in for a sizzling weekend, with tomorrow bringing a daytime high of 43°C and a nighttime low of 23°C, while Saturday’s high will be at 36°C before cooling off to 21°C in the evening.

Meta rattles its saber over California bill to pay publishers for news content + Is your immunity actually weak?

Meta has threatened to remove news content from its California platforms if the state passes a bill that would oblige tech companies to pay publishers for content they post on their social media platforms, Reuters reports. The bill, known as the California Journalism Preservation Act, would require companies like Meta and Google to pay a fee to publishers based on advertising revenues from news content, to support newsrooms throughout the state. However, Facebook argues that the fees will instead go to out-of-state news organizations’ pockets at the expense of smaller, local publishers. Provided the bill is approved by the California State Assembly, it would be passed to the Senate.

Not Meta’s first threat: In December 2022, Meta announced it would remove all news content from its platforms if the Congress passes a bill that resembles California’s act, and is currently doing the same in Canada. Google has also joined the battle, threatening to remove links to news articles from Canadian search results. Back in 2021, Meta also threatened to remove news content from its platforms in Australia if the government passed a similar bill, dubbed as the News Media Bargaining Code. Australia did end up passing that bill, forcing Facebook to reach an agreement with Australian publishers to pay for their content.

Amazon’s Ring doorbell camera unit gets a USD 5.8 mn slap on the wrist over privacy issues: The US Federal Trade Commission issued an order for Amazon to pay USD 5.8 mn and “implement a privacy and security program” over privacy violations in its Ring doorbell camera unit, according to a court filing yesterday. “Ring deceived its customers by failing to restrict employees’ and contractors’ access to its customers’ videos, using customer videos to train algorithms, among other purposes, without consent, and failing to implement security safeguards,” the filing said, with the FTC saying these violations resulted in “egregious violations of users’ privacy.” The violations were related to a former employee who spied on female customers for months in 2017 with cameras placed in bedrooms and bathrooms, Reuters reports.

Getting sick is a banal fact of life, but what are the limits of what a healthy immune system can stand? It’s a health red flag if your body requires more than 3-4 antibiotics courses per year — that is, enduring illnesses that are more than your average flu, sore throat, and other run-of-the-mill sicknesses, the Washington Post says in its Ask a Doctor column.

What can you do to help your immunity? A balanced lifestyle is key to boost white cell production and health. That includes all the obvious health tips we’ve all known for years: Good sleeping habits, reducing stress as much as possible, proper nutrition, regular physical activity, and avoiding smoking and alcohol are all important factors to boosting and supporting your body’s natural immunity. Opting for regular vaccines can also help ward off seasonal viruses, the WaPo’s doctor says.

Beyond the healthy lifestyle: But what if you’re still feeling unwell and falling sick often? In order to rule out any immunodeficiencies, you should consult your physician who will likely recommend running a number of tests. A general look at your antibody levels is typically the first step in addition to a white blood cell count. If more tests are necessary, an expert can examine your cells on a molecular level to identify any mutations that may be behind your complaints. Testing for chronic issues like kidney disease and infections from widespread viruses like covid-19 may also be useful. People with conditions or circumstances that are known to suppress immunity like pregnancy, chemotherapy, or old age should be more careful by avoiding crowded areas or wearing face masks if needed.

Aktris: Glamorous actress by day and deadly vigilante by night

? ON THE TUBE TONIGHT-
(all times CLT)

We’re not ones for Turkish series, but Aktris might change our minds: Yasemin Derin is a fan favorite by day. The actress is a popular Turkish star, loved and admired for her beauty and talent. But there is much more to her than meets the eye. Behind the glitz and the glamor, the photoshoots, the interviews, and exclusive gala dinners is something much darker. Yasemin is a dark soul who hides behind her fame to lead a double life she has managed to keep secret for many years. The show premiered in Turkey yesterday and can be watched with English dubbing on Disney+.

Manchester Derby in the FA Cup final on Saturday: Wembley Stadium in London will host the final of the FA Cup between Manchester City and Manchester United at 5pm on Saturday. Man City is entering the match fresh off earning the Premier League title and qualifying to the Champions League final, and now has its eyes on landing a historic treble by taking home titles from the three championships. The last team to secure the titles of the FA Cup, Premier League, and Champions League was Manchester United back in 1999. Meanwhile, Manchester United will be vying to block Manchester City from being able to land this historic achievement, and is also trying to avoid ending the season without a title after it exited the Europa League.

A Bundesliga final without Bayern or Dortmund: Leipzig and Eintracht Frankfurt will be playing in the final match of the German league at 9pm on Saturday. Leipzig is the defending champion, while Eintracht has lifted the cup five times in its history, the last of which was in 2018.

The most important matches in the last week of the major leagues, all on Saturday:

Paris Saint-Germain v Clermont (Ligue 1 — 10pm)
Torino v Inter Milan (Serie A — 7:30pm)
Empoli v Lazio (Serie A — 10pm)

? Tunisia’s Ons Jabeur is playing in the second round of the French Open at 4:35pm, when she hits the court to face off against France’s Océane Dodin. World no.1 Iga Świątek is currently playing against the US’ Claire Liu, in a match that began just a few minutes before we dispatched this afternoon’s edition.

Over in the men’s singles, we’ll be keeping an eye on world no.8 Taylor Fritz’s 5pm match against France’s Arthur Rinderknech, as well as Alexander Zverev v Alex Molcan at 9:15pm.

Picasso, las mujeres que bailaron su vida (Picasso, the women who danced his life) will be showing tomorrow from 7-8pm at Instituto Cervantes El Cairo. Itis an extraordinary performance art piece that immortalizes the women who graced Picasso’s paintings and life. This performance is a collaboration between the Cairo Contemporary Dance Center and the Cervantes.

Have you checked out Zawya Cinema’s Cairo Cinema Days? The festival showcases the latest films from the Arab region, with this year’s edition including 16 documentaries and feature films from Egypt, Tunisia, Sudan, Morocco, Iraq, Palestine, Algeria, and Lebanon. Film screenings are ongoing through 10 June — you can check out the schedule and find more details here.

The annual Flower Exhibition — which is typically held at the Orman Gardens — is now open to the public at the Agricultural Museum in Dokki. The exhibition will run for one month until 27 June.

Dive into Egypt’s infinitely rich contemporary art world: The “Traces of Egypt” Exhibition began in late March and will continue until Thursday, 15 June, at the Grand Egyptian Museum. The exhibit is organized by Egyptian-German artist Susan Hefuna and celebrates the country’s Khayamiya tradition through 28 dresses celebrating local artisans and their craftsmanship.

Fancy a chuckle, or more? Watch Absurd & Beyond by ACT at Rawabet Art Space this Friday, 2 June and Saturday, 3 June starting from 8pm.

Start training for your next half marathon: The TriFactory is hosting another edition of itsMadinaty Half Marathon on Friday, 9 June at Madinaty. You can sign up for the event through the TriFactory website.

Hiba Tawaji is back with her first concert in Cairo after three years: The Lebanese singing sensation will be performing in the Cairo Opera house on Friday, 16 June starting from 8:30pm to celebrate the release of her new album, Ba’d Seneen. The performance will be conducted by Maestro Ahmed Aweida and under the supervision of Oussama El-Rahbani. Click here to reserve your tickets.

FOGO is the new FOMO: The fear of missing out — a theme that has been put on overdrive by being able to see what everyone is doing without being involved, thanks to the internet — has now been reversed to the extreme. Enter the Fear of Going Outside (FOGO): The outside world is a dark and overrated place — but, nonetheless, brave it we must. Show host Ivy Le is no Dora the Explorer: She’s a busy mom from Texas, and she has a number of allergies that don’t always make her outdoor experiences particularly pleasant. But she’s not letting that stop her from exploring nature. From meeting with survivalists who teach her how to hunt, to butchering a hog with a chef-hunter — beware, vegetarian “indoor besties,” Le warns at the beginning of the show — this podcast is quite a unique listen.

Gabriel’s Gift by Hanif Kureishi introduces us to the life of a 15-year-old London teenager who is coming to terms with his new reality after his mother kicks out his father, a lovable has-been rock musician, with whom Gabriel has a very close relationship. His mother, whom he admires but hardly sees, works nights in a pub to make ends meet and sleeps in the morning when Gabriel is at school. So, what does a teenager do when faced with these circumstances? He begins to forge unusual relationships — one with his deceased twin brother, Archie, and another with a superstar musician who knows his father, a character that Kureishi has crafted in the likeness of David Bowie. Gabriel does not stop there; he also discovers that he has a gift, one that the reader wonders is true or is it the outcome of a neglected teen with an overactive imagination. This novella weaves magical realism and post-1970s hippie-rock culture into a readable narrative that will appeal to anyone who grew up during the 70s-90s or who has an interest in the music or the era. Also, the themes of modern families, creativity, ambition and art all come together in this quick and quirky summer read.

What the markets are doing on 1 June, 2023

The EGX30 rose 0.2% at today’s close on turnover of EGP 2.14 bn. Regional investors were net buyers. The index is up 20.1% YTD.

In the green: Qalaa Holdings (+6.2%), Heliopolis Housing (+4.9%) and Ibnsina Pharma (+4.7%).

In the red: CIRA Education (-2.6%), Elsewedy Electric (-2.5%) and Abu Qir Fertilizers (-2.5%).

Surging borrowing costs are raising calls for sovereign debt relief

Global calls for debt relief reach a crescendo: The ongoing aggressive global monetary tightening cycle, led by the US Federal Reserve, has significantly increased the cost of borrowing and strained developing countries’ finances, raising calls of concern about the need for sovereign debt relief. Global debt surged to a near record high of USD 305 tn in 1Q 2023, according to the International Institute of Finance’s Global Debt Monitor. Egypt also has its own rising debt obligations to face, with Finance Minister Mohamed Maait telling the House of Representatives last month that our debt-to-GDP ratio is expected to widen to 96% of GDP in the current fiscal year, up from 87.6% in the previous year. The government is also expecting new borrowing to increase by 22% in FY 2023-2024.

REFRESHER- Successive global economic headwinds — starting with the covid-19 pandemic, and through to Russia’s war in Ukraine — have put developing countries’ finances under pressure and forced them to take on more debt. These debt levels have become increasingly unsustainable as rising inflation has pushed central banks globally to raise interest rates, causing this debt to become increasingly expensive. “The debt crisis facing developing countries has intensified,” said World Bank Group President David Malpassin December. “A comprehensive approach is needed to reduce debt … Without it, many countries and their governments face a fiscal crisis and political instability, with mns of people falling into poverty.”

Let’s talk about debt relief programs: With these rising levels of debt, and increasing uncertainty about some countries’ ability to repay, some have been calling for debt relief programs to completely write off, reduce, or restructure some countries’ sovereign debts. These programs typically involve negotiations between the debtor country and its creditors, including international financial institutions, bilateral lenders, and private creditors. One of the earliest debt relief programs is the Heavily Indebted Poor Countries (HIPC) initiative launched in 1996 by the IMF and the World Bank aimed at providing debt relief to the world’s poorest countries. Chad, Zambia, Ethiopia, and Ghana have all sought to receive debt relief under the G20 framework and “four or five” additional African nations may soon join them on the back of rising rates and a stronger greenback, a UN official said earlier this year.

The most recent debt relief initiatives: The G20 launched the Debt Service Suspension Initiative (DSSI) in 2020 to provide timely financial support to countries heavily affected by the pandemic. By February 2020, 48 countries were eligible for the program and a total of USD 12.9 bn in debt service payments were suspended, according to World Bank figures. Paris Club creditors accounted for an estimated USD 4.6 bn of the total amount suspended. A few months later, the G20 launched the Common Framework for Debt Treatments beyond the DSSI to include debt restructuring and to also involve non-Paris Club member lenders along with private creditors in an effort to ensure debt burden is fairly shared between all creditors, according to S&P Global.

No or delayed debt relief could mean sovereign defaults for many developing countries:Countries facing delays in debt relief or that are unable to access debt relief run the risk of defaulting on their sovereign debt obligations, which happens when they are unable to make good on payments of both the principal and interest of their debt, according to the Corporate Finance Institute (CFI). Defaults result in lower credit ratings and higher cost of borrowing, making it very difficult for defaulters to access the international bond market, according to CFI. Such countries usually face increased borrowing costs, limited access to funds, and diminishing investor confidence.

Lebanon, Sri Lanka, Russia and Zambia have already recently defaulted on their debt, while Belarus is on the edge. Eighteen developing countries’ debt is currently trading at “distressed” levels, Bloomberg reported in May, with Lebanon leading the pack as its debt trades at a spread 20k bps above US Treasuries. With some USD 1.4 tn of outstanding sovereign external bonds, some 15% of which has a “real possibility” of default.

THE ENTERPRISE ENTERTAINMENT CALENDAR

MAY

17 May-10 June (Wednesday-Saturday): Cairo Cinema Days at Zawya Cinema, Downtown Cairo.

27 May-27 June (Saturday-Tuesday): Annual Flower Exhibition from 10am at the Agricultural Museum.

JUNE

1-10 June (Thursday-Saturday): Cairo Food Week.

1 June (Thursday): “Picasso, the women who danced his life” show, Instituto Cervantes del Cairo.

1-2 June (Thursday-Friday): “Womb” dance performance by Shaymaa Shoukry, Falaki Theater, Cairo.

2-3 June (Friday-Saturday): Absurd & Beyond by ACT, Rawabet Art Space, Cairo.

9 June (Friday): TriFactory Madinaty Half Marathon.

10 June (Saturday): Thanaweya Amma examinations begin.

15 June (Thursday): Last day of the Traces of Egypt Exhibition at the Grand Egyptian Museum.

28 June-2 July (Wednesday-Sunday): Eid El Adha (TBC).

30 June (Friday): June 30 Revolution Day.

JULY

18 July (Tuesday): Islamic New Year.

20 July (Thursday): National holiday in observance of Islamic New Year (TBC).

23 July (Sunday): Revolution Day.

27 July (Thursday): National holiday in observance of Revolution Day.

SEPTEMBER

26 September (Tuesday): Prophet Muhammad’s birthday (TBC).

28 September (Thursday): National holiday in observance of Prophet Muhammad’s birthday (TBC).

OCTOBER

6 October (Friday): Armed Forces Day.

13 October- 20 October (Friday-Friday): The sixth edition of El Gouna Film Festival (GFF).

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

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