New export orders continued to grow for its third consecutive month in June, according to last month’s reading in yesterday’s Emirates NBD Egypt PMI (pdf). The gauge came in 47.2 in June, broadly similar to last month’s reading 47.3. This growth in exports came on the back of greater interest from international markets and reports of new contract wins from overseas markets, as the weaker EGP continues to draw interest. “Egypt’s non-oil business continued to deteriorate during June — its 21st consecutive month — but at “a modest pace that was broadly in line with the trend observed throughout the 2Q2017,” said the report. Firms continued to cite weak domestic demand conditions as weighing on activity and new order growth, said the Head of MENA Research at Emirates NBD Khatija Haque. The overall downturn in non-oil business was led by a sharp fall in output, although the rate of contraction was only slightly below April’s nine-month low. There was a sharp rise in output charges was observed in June, although the rate of inflation eased to the weakest in 16 months. Firms signalled the passing on of higher cost burdens to clients where possible.

EFSA to draft new regs for Capital Markets Act once it passes the House: The Egyptian Financial Supervisory Authority (EFSA) will be drafting new executive regulations for the amended Capital Markets Act once the House of Representatives signs off on the bill, EFSA boss Sherif Samy said on Tuesday, according to Al Borsa. The Sherif Ismail cabinet had approved the amendments, which are currently before the House, and sent them to the Council of State for review in late May. Among other things the amended bill is expected to modify the regulations governing private placement, cover the issuance of sukuks, and give the EGX flexibility to set lower listing fees to attract smaller companies.

The EFSA is also waiting on the cabinet to approve the Leasing and Factoring Actso it can be sent to the House to be reviewed and issued, Samy added. The act is expected to include new clauses to regulate SME financing.

The refugee crisis topped the agenda during President Abdel Fattah El Sisi’s trip to Hungary for the Visegrád Group-Egypt Summit, which is getting us all excited about the prospect of Turkey-style agreement with the EU to help curb migration flows to Europe. El Sisi said that Egypt is engaged in meaningful discussions on avenues for cooperation to address the refugees crisis with both the EU and the Visegrád Four, according to an Ittihadiya statement. Hungarian Prime Minister Viktor Orbán said the countries recognized Egypt’s efforts to curb migration, according to a statement.

The statements as the EU is looking to dole out more cash to help countries get a grip with refugees. The European Commission announced EUR 35 mn in extra cash for Rome in response to Italian demands that its neighbors share more of the burden, according to Reuters. European officials maintained that better local rescue services would mean more migrants being taken back to Libya or perhaps to neighboring Tunisia or Egypt.

El Sisi discussed economic cooperation in investments, manufacturing with Czech Prime Minister Bohuslav Sobotka, according to an Ittihadiya statement. Separately, the Egyptian Businessmen Association delegates who attended the Egyptian-Hungarian business forum met Hungarian company representatives to discuss trade and investment cooperation, AMAY reports. The summit’s closing statement mandated the formation of an Egypt-EU cooperation council, according to Al Shorouk.

Russia’s UVZ looks into plans to assemble tanks in Egypt: Russian machine and defense manufacturing company Uralvagonzavod (UVZ) reportedly has plans to assemble its T-90S third generation battle tanks in Egypt, according to Russia’s Sputnik Arabic portal, which cites the company’s annual report 2017. The report apparently says that the company will help an undisclosed customer establish a company to assemble the tanks in Egypt. Reports had emerged in the local press citing then-CEO Oleg Sienko back in 2015 that Uralvagonzavod had successfully concluded negotiations with the Egyptian government on developing Russian military hardware production facilities. “We seek through negotiations with the Egyptian Ministry of Defence to modernise Russian weapons and military mechanisms present in Egypt since the 1960s, provided by the Soviet Union at that time,” Sienko had told Daily News Egypt back then.There was even talk of partnerships with the private sector to develop defense machinery and spare parts.

EMRA tender winners to invest USD 41.3 mn in Eastern Desert exploration: The winners of the Egyptian Mineral Resources Authority’s (EMRA) gold mining tender in the Eastern Desert and Sinai Peninsula will be investing around USD 41.3 mn collectively in exploration activities, sources close to the matter tell Youm7. The UK’s Veritas Mining Limited will spend USD 11 mn on its Omm Ras concession, while Ghassan Spain will invest USD 4 mn to explore the Dahab concession. Resolute Egypt plans to spend USD 18.5 mn at the Boukary and Omm Samra concession. Egypt’s East Gas Company will be allocating around USD 8.2 mn to exploration activities at the Omm Oud and Hangaliya concession.

Egypt’s economic recovery is driving hotel business up, as Cairo’s hotels witnessed a 42.4% year-on-year increase in profit per room during the month of May, despite an 8.9 bps drop in occupancy rates to 63.6%, HOTSTATS reveal in their latest Middle East and North Africa chain hotels review (pdf). The drop in occupancy rates was offset by a nearly 73% y-o-y increase in average room rates, which recorded USD 97.51 during May. “As a result of robust top line performance, profit conversion at Cairo hotels remains strong at 53.5% of total revenue,” well above the MENA region’s average 36.7%.

You know we just can’t get enough of our tourism recovery: Egypt and Greece are the top two destinations for German tourists this summer, with Turkey, Croatia and Portugal trailing closely behind, according to German tour operators, Tornos News reports. Demand for Egypt is up 30%, Thomas Cook’s Stefanie Berk says, “as German holidaymakers regain confidence in the destination.” With Greece overbooked as well, “German clients are booking summer holidays instead in Egypt, Tunisia and Turkey.”

Issues rolling out fuel smartcards? You don’t say: Fuel smartcards are ready to be rolled out, but there are still “some kinks” to iron out with tuk tuks and fishing boats, Oil Ministry official Khaled Othman tells Youm7, without providing details on what these problems are. However, these vehicles have yet to be incorporated into the system, he says — which gives us zero reassurances since we’ve heard this tuk-tuk song before. The government had said earlier this year that it plans to make using the smartcards mandatory in FY2017-18 as part of its plan to cut back on fuel subsidies.

Takaful and Karama to handout cash subsidies to children under six: Children under the age of six will be getting a monthly stipend of EGP 60 from the state’s Takaful and Karama cash subsidy programs for the first time starting August, Deputy Social Solidarity Minister Nivine El Kabbag tells AMAY. The programs, which used to extend only to school children, will cover up to three children per family, taking the youngest by default. Children in primary school will receive an EGP 80 stipend, up from EGP 60 before, while those in middle school will get EGP 100, and those in high school will get EGP 140 a month, El Kabbag added.

On a related note, the move to cash subsidies got a pat on the back from Parliament yesterday. Mohamed Elsewedy, leader of the Support Egypt Coalition (Parliament’s biggest bloc) publically endorsed the move, telling reporters the transition to cash was inevitable. Elsewedy also lauded the government’s recent move to lift fuel subsidies further, saying that the gradual phase-out of fuel and energy subsidies will allow the state to direct resources where they’re most needed, such as social welfare, healthcare, and transportation.

Media Production City pulls the plug on Al Hayat TV: Broadcasting of Al Hayat TV channels was halted on Monday after the Egyptian Media Production City’s (EMPC) management decided to cut off services provided to the network, including electricity, due to overdue payments. The EMPC said in a statement carried by Al Masry Al Youm that it had issued three warnings to the network. Al Hayat’s debts to the EMPC are reportedly north of EGP 20 mn, sources tell the newspaper. The network is currently broadcasting from abroad. The network issued a statement yesterday, carried by AMAY, alleging that it has already paid its bills and that the EMPC is actually indebted to the network to a tune of EGP 16 mn.The two sides are currently in a legal battle over a piece of land Al Hayat had purchased from the EMPC. In a funny case of the pot calling the kettle black, MP Mostafa Bakri issued a statement yesterday saying the EMPC’s decision sends a message that it curbs freedom of expression, according to Al Mal.

MOVES- Our good friend Menatalla Sadek will be resigning her post as Chief Investment Officer for Ghabbour Auto as of 1 August, according to bourse filing. The torch will be passed on to Andre Valavanis and Sarah Maged, who will be co-heading the company’s Investor Relations department. Ms. Sadek joined GB Auto six years ago in December 2011 following a career spanning over a decade in finance in both Egypt and Europe.

CORRECTION - We have a couple of Mia Culpas from yesterday’s issue. It was actually Tanmeyah Microfinance which would be receiving a EGP 500 mn facility from Banque Misr, not Tanmiya Capital Ventures (which currently goes by TCV) as we had noted. We had also misquoted supermarket chain Spinneys’ CEO Mohanad Adly as saying that they noted price increases on 1,100 items, when in fact he stated that they were monitoring these items for any hike. H/t MA.

We are seeing a flurry of activity heading towards Iran these days, as Volkswagen announced plans to sell cars in Iran for the first time in 17 years, taking advantage of easing sanctions to expand. Volkswagen has signed a contract with local importer Mammut Khodro to offer Tiguan compact SUVs and the Passat family car. This expansions comes amid concerns about stalling growth in Europe and China, Bloomberg notes. Peugeot-producer PSA Group was the first carmaker to re-enter after announcing last year to upgrade its Peugeot factory near Tehran and start building Citroen models in the country.

Meanwhile, Total and Iran have reached a preliminary agreement to build three petrochemical plants in an agreement potentially worth USD 2 bn, an Iranian oil industry official said on Tuesday, according to Reuters. Total and China National Petroleum Corporation signed a USD 4.8 bn agreement earlier this week to develop its share of the world’s biggest natural gas field.

In other rogue nation news: the world just apparently got a little less safer, after North Korea announced that it successfully launched an ICBM, with the potential to hit the continental US. US Secretary of State Rex Tillerson called the move a “new escalation of the threat” to the U.S. and its allies that the rogue nation would be brought before the United Nations Security Council.