Bad year for Boeing

Sunday, 17 Mar 2024

Bad year for Boeing

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Today at a glance

The Big Story Today

EU confirms we’re getting a EUR 7.4 bn aid package.

INSIDE INDUSTRY

Fresh investments could be flowing into Egypt’s spinning, weaving, and readymade garments industry.

FOR YOUR COMMUTE

The FAA isn’t happy with Boeing.

ON THE TUBE TONIGHT

Our favorite blended family is back, plus one more addition.

Sports

Atletico Madrid vs Barcelona tonight.

Ears to the Ground

Keep it light with The Unplanned.

WHAT WE’RE TRACKING TONIGHT

THIS EVENING: EU confirms it’s lining up a EUR 7.4 bn aid package for us

Good afternoon, folks, and happy Sunday. We hope that you’ve accustomed yourselves to the caffeine deprivation and are ready for the second workweek of Ramadan.

THE BIG STORY TODAY

The EU is set to provide us with a EUR 7.4 bn package of loans, grants, and investments through to 2027, according to a statement (pdf) by the bloc. The agreement takes Egypt’s relations with the EU “to the level of a strategic and comprehensive partnership,” the statement reads.

On the ground at Ittihadiya: President Abdel Fattah El Sisi met with European Commission President Ursula von der Leyen to discuss the agreement today, according to Ittihadeya statements (here and here). Von der Leyen is here with a delegation of EU officials — including the Greek, Belgian, and Italian prime ministers — who will talk at a presser at 5pm CLT today. You can catch the presser here.

Background: The figure concludes a bout of speculation on the size of the package since Prime Minister Moustafa Madbouly’s statement earlier this month that our expanded USD 8 bn IMF agreement will be followed by more funding from other international partners including the EU. The Financial Times was the first to report on the EUR 7.4 bn figure last week.

The breakdown: The package includes the following aid:

EUR 5 bn in concessional loans aimed at supporting the country’s macro- and socio-economic reforms alongside international partners (read: IMF).
EUR 1.8 bn of investments to support the green and digital transitions and “modernize the economy.” These include investments in renewable hydrogen and GREGY — one of Egypt’s planned electricity linkups with Greece — as well as funds to help set up the Investment Conference in Cairo.
EUR 600 mn in grants,including EUR 200 mn for migration management and EUR 35 mn for installing additional renewable energy capacities under the government’s Nexus for Food, Water, and Energy initiative.

THE BIG STORY ABROAD

The Russian presidential elections are the uncontested top story in the international press this afternoon. President Vladimir Putin is widely expected to secure a new six-year term in office by landslide when the country’s three-day presidential elections — in which there are no real competitors — draw to a close today. Russians crowded outside the polling stations today to protest the president’s authoritarian rule — which has extended for nearly a quarter century — in response to calls from opposition leader Alexei Navalny, who urged the protest before he died in prison last month. (Reuters | Associated Press | Washington Post | New York Times)

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

What does the Egyptian economy look like post float? Goldman Sachs, Standard Chartered, and Fitch all weighed in over the weekend on the future of the economy, updating their forecasts and predictions of where they see the EGP / USD exchange rate settling, FX inflows, and FX liquidity.
Fitch doesn’t see a credit rating upgrade in the cards just yet: Egypt’s recent string of positive economic developments — the USD 35 bn Ras El Hekma agreement, our expanded USD 8 bn IMF program, and the central bank’s decision to float the EGP that seems so far to be going to plan — are not enough for Fitch Ratings to upgrade the country’s sovereign credit rating or outlook.
Everyone wants a piece of Egypt: Foreign investors have poured over USD 3 bn into Egypt since the central bank floated the EGP and announced a jumbo 600 bps rate hike over a week ago — and the number is expected to jump to USD 30 bn before the end of the year.

*** It’s Inside Industry day —your weekly briefing of all things industrial in Egypt. Inside Industry focuses each Sunday on what it takes to turn Egypt into a manufacturing and export powerhouse, ranging from initial investment and planning to product distribution, through to land allocation to industrial processes, supply chain management, labor, automation and technology, inputs and exports, regulation and policy.

In today’s issue: Foreign investors — particularly from Turkey — are eyeing fresh investments in Egypt’s spinning, weaving, and readymade garments industry, particularly after the EGP float earlier this month made investments more attractive.

⛈️ TOMORROW’S WEATHER- Expect a cloudy day with a chance for rain, with a high of 24°C and a low of 13°C, according to our favorite weather app.

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EU WHAT WE’RE TRACKING TONIGHT

FOR YOUR COMMUTE

Boeing has had a tough start to 2024

2024 has really been a rough ride for Boeing so far. Last week, fifty passengers wereinjured in what the airline called a “technical event,” reportedly causing the plane to lose altitude suddenly, according to CNN (here and here). This incident comes after the Alaska Airlines 737 Max 9 that lost its door in taxi earlier this year.

ICYMI: Just over a week into the year, a Boeing 737 Max 9 lost a fuselage panel mid-flight. A month later, pilots flying the same plane model reported jammed flight controls during landing, and two weeks ago, the US Federal Aviation Administration (FAA) released a report that accused Boeing and Spirit AeroSystems (that make 70% of the Boeing 737) of a lack of safety awareness “at all levels of the organization” that caused the company to fail half of its safety audit. The FAA has given the industry giant 90 days as of March 4 to submit an outline to their action plan after their six-week audit revealed “multiple instances where these companies allegedly failed to comply with quality control requirements.”

Together, these events have weighed on Boeing’s shares, which are down 27% year-to-date, according to market data.Since the start of the year, the industrial giant has lost a whopping USD 35 bn in market cap, USD 30 bn of which is attributed to its fuselage incident in January. Their stock price has fallen from USD 251.8 at the start of the year to USD 182.53 as of today. Since 2018, Boeing has been found responsible for two fatal airplane crashes that killed 346 passengers and has paid USD bns in fines and settlements.

Boeing’s safety failures have triggered model groundings, production and delivery delays, and multiple federal investigations. Late last week, John Barnett, a former Boeing employee was found dead. He had been amid a deposition in his whistleblower retaliation case. Barnett, a quality manager who had been at Boeing for decades, had raised serious concerns about the company’s production standards.

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Boeing FOR YOUR COMMUTE

ENTERPRISE RECOMMENDS

Kamel El Adad is back with a new addition and new set of hurdles

? ON THE TUBE TONIGHT-
(all times CLT)

Your favorite blended family is back in Kamel El Adad +1, this time with a new addition to the family (trailer: runtime 2:13). After the drama in the first season, the large family has finally learned to exist in harmony — or in as much harmony as possible considering the eight children running around. This year, however, they face new struggles that threaten the home they’ve built for themselves.

The show paid tribute to the late Moustafa Darwish, who played Omar, the father of Layla’s twins. He was clearly referenced in the first episode and his on-screen kids struggle to cope with his death. Ahmed also has trouble moving on, as we see in a touching scene where he visits Omar’s grave. Badra, who plays Omar's wife, also faces difficulties raising their young children following his passing and seeks solace in Layla and her family.

New dynamics are established. It’s fun to see how the siblings’ routines line up to the point where you can’t tell who’s related by blood and who isn’t anymore. Since they all go to the same school, you see them look out for each other in heartwarming displays of family bonds and with Lina Ben Hammam’s character now older and in university comes a new set of parenting woes.

Of course, the show keeps it light. The laughs are frequent throughout, but this season tackles some heavier themes such as sickness, death, coming of age, and marital problems. While the main plot focuses on the family, the side plots get intense with one about forbidden love and betrayal.

You can watch it onShahid.

⚽ The showdown between Los Colchoneros and the Blaugrana: Atletico Madrid and Barcelona are meeting on the pitch tonight at 10pm as part of matchday 29 of La Liga. The Catalan team is in third place with 61 points, 11 points behind Real Madrid, who leads the pack. Atletico lags behind in fifth place with 55 points.

Today’s most important La Liga matches:

Sevilla vs Celta Vigo (3pm)
Villareal vs Valencia (5:15pm)

North West Derby in the FA Cup: Manchester United is hosting its old-time rival Liverpool in the FA Cup quarter finals at 5:30pm. The Red Devils qualified for this round after beating out Nottingham Forest in a clean victory. On the other hand, The Reds beat Southampton with a difference of three goals in the round of 16. United has taken home the FA Cup 12 times compared to Liverpool’s eight. Arsenal tops the pack with the most titles at fourteen.

Chelsea and Leicester City will also be going head to head for the FA Cup quarter-finals. The match started earlier at 2:45pm, and will still be in progress by the time this issue makes its way into your inbox.

In the English Premier League: West Ham’s match against Aston Villa starts at 4pm today, and will conclude the (very short) round 29 of the EPL.

These are the most important matches to follow today in Europe’s major leagues:

Verona vs Milan (Serie A, 4pm)
Roma vs Sassuolo (Serie A, 7pm)
Inter Milan vs Napoli (Serie A, 9:45pm)
Freiburg vs Bayer Leverkusen (Bundesliga, 4:30pm)
Dortmund vs Frankfurt (Bundesliga, 6:30pm)
Montpellier vs Paris Saint-Germain (Ligue 1, 9:45pm)

? OUT AND ABOUT-
(all times CLT)

EVENTS-

Celebrate Mother’s Day uniquely this year with the Society of Play by bringing your mom to a special adult playdate. This Wednesday, 20 March mothers and their (adult) children will gather for a day of fun and games through interactive group activities for a chance to bond, laugh, and create lasting memories together. For reservations click on this link.

Nurture your connection with our cultural heritage with Megawra. Their three-day Spend the Day in Khalifa event is on its eleventh edition, taking place this year on Friday and Saturday, 22-23 March, and Friday, 29 March. The event focuses on connecting space, place, and people at al-Khalifa Park and al-Khalifa Community Center.

RAMADANIYAT-

The iconic Taghmisa experience is back. If you missed it last year (or the last eight years), there’s no reason to worry. This unconventional Ramadan tent features experimental Middle Eastern cuisine (we’ve been craving their sobya latte since last year) and continuous live performances that will keep you entertained all night long. You can reserve a table here, picking between suhoor from 10:30pm-1am if you’re an early bird or 1-3am if you intend to head home at dawn.

Have iftar and suhoor beneath the night sky at the Citadel of Salah El Din.Sawa is curating a must-try experience at this historic site with culinary expertise from Carlo’s and Le Pacha. You can choose between having iftar from 5:30-8:30pm and suhoor from 10pm-2am starting tomorrow night. Tickets are selling out fast despite the steep price of EGP 2.4k per person (excluding taxes), so grab yours while you can.

Qahwet WOC is back this year for your Ramadan nights out.Walk of Cairo is teaming up with Topaz Restaurant to fill every night with live performances throughout the Holy Month, including a Mawlaweya show, a tanoura show, board games, and a traveling Mesaharaty. You can head down there any time during Ramadan from 8pm to 2am.

Layalina is also going to East Cairo. Layalina has extended their stay at El Baron Palace adding four additional dates to choose — up until this Wednesday, 20 March — bringing you a night of tradition and entertainment under the stars. The menu will be the same as our West-siders, but those attending at El Baron have a larger selection of seating. You can choose between lounges, tables, and high table seats here.

Can’t keep track of which suhoor tent is up when? Layaly HydeOut is making it easy for you — they’re open all month with Hekaytna Helwa at Hyde Park. In addition to a set Suhoor menu, weekdays feature oud and takht sharqi music, and weekends will host superstar performers who are yet to be identified. Tickets from 17-20 March are available now, retailing for EGP 800 per seat.

Skip the reservations and take a walk after iftar at Mamsha Ahl Misr’s ‘QahwetElMamsha’ where every Thursday and Friday you get to immerse yourself in the festive spirit with board games and a lively entertainment schedule throughout the holy month.

Footloose brings the magic of Ramadan at Wadi Campwhere the desert comes alive with traditional festivities and cherished traditions under the starry night sky. From mesmerizing Tanoura shows to sumptuous iftar feasts and late-night suhoor meals, immerse yourself in the spirit of the season. Enjoy movie nights under the open sky, engage in a variety of activities including volleyball and card games, and gather around the bonfire for shared stories and laughter. Reserve your spot through their number on their Facebook page.

Qahrawya are back again with their Ramadan ‘Iftours’ where you get to stroll through the bustling streets and ancient wonders of Cairo iconic landmarks as well as indulge in its delicious dishes. The Salah al-Din Citadel and the labyrinthine alleys of Khan el-Khalili will be included in the tour. Their dates are Wednesday, 20 March in Downtown and Thursday, 28 March for the Mounira x Garden City tour. Saturday, 30 March will be in Zamalek and Thursday, 4 April will be in City of the Dead. To book your spot, message them on their Facebook page.

MUSIC-

Witness some of the last remaining Zar practitioners in Egypt. The Mazaher ensemble shares their tradition with audiences with two concerts every Wednesday at Makan. Reach out by the email or Whatsapp number provided on the page to experience the spiritual poly-rhythmic drumming and vocals practiced in Upper Egypt. Note that taking photos and/or videos is prohibited during the performance.

ENTERTAINMENT-

Comedy Stuff is taking the stage at ROOM New Cairo tonight. Five comedians are armed with their best material for a hilarious night that starts at 8:30pm. Unfortunately tickets are no longer available but for those who were able to snag one, treat yourself to some suhoor while you’re there.

Missed it? No problem, there’s no shortage of comedy at ROOM. Six more comedians are laying it all on the table this Thursday, 21 March at the space’s Garden City branch for The Mad Day. Like the previous event, doors also open at 8:30pm, and the same ticket and minimum order regulations apply.

Drop the sobia and face your phobias at Rawabet Arts Space’s Mesh Mawgood LivePodcast: Fobia Elsobia event. This Tuesday, 19 March from 9pm the event will help you confront and understand your fears, or phobias, such as potatoes, car headlights resembling human faces, associating even numbers with good and odd numbers with evil, having a fear of cheese, or feeling uneasy about the Ring Road. Get your tickets here.

? EARS TO THE GROUND-

Parenthood is a never ending rollercoaster ride — whether we are looking for answers and guidance or just need a relatable voice The Unplanned podcast with Matt and Abby are here for the ride.

Matt and Abby are a couple that explore and share the wild world of the unexpected, such as pregnancy and parenting — giving you all the unedited, unfiltered, honest, juicy details that will have you laughing, cringing, and nodding in solidarity.

The coupleleave no stone unturned. Their candid storytelling and relatable anecdotes make you feel like you're chatting with old friends over a cup of coffee (or a well-deserved pint of ice cream).

So if you're a parent, soon-to-be parent, or just curious about the wild ride of parenthood, this podcast will make you feel that you’re part of a community — maybe you’ll get a laugh out of it or learn a thing or two.

You can listen to it on Apple Podcasts, iHeart, Podtail and Audible.

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Enterprise Recommends On The Tube Tonight

GO WITH THE FLOW

What the markets are doing on 17 March 2024

The EGX30 fell 0.8% at today’s close on turnover of EGP 3.4 bn (30.1% below the 90-day average). Local investors were net sellers. The index is up 24.8% YTD.

In the green: Fawry (+6.1%), Egypt Kuwait Holding (+4.4%), and Oriental Weavers (+4.0%).

In the red: E-finance (-5.6%), Eastern Company (-5.5%), and Qalaa Holdings (-5.0%).

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EGX Go with the Flow

Our weekly look at the issues, trends, and policies that are shaping Egypt's manufacturing industries.

Published every Sunday in EnterprisePM.

Read Inside Industry

INSIDE INDUSTRY

Egypt’s clothing + textile industry is getting a boost in investments

The local clothing and textile industry is set to see a boom in investments after the EGP float, with investors that were previously sitting on the sidelines now looking to unlock planned investments. The sector has brought in several investment offers to set up specialized factories in Egypt, in addition to a push to bring idle spinning and weaving factories back online as the country works to slash our import bill and work on ramping up Egyptian exports of clothing and textile products.

A lay of the land: There are currently 4.2k spinning and weaving factories in Egypt that are registered with the Federation of Egyptian Industries’ Textile Industries division. A large number of these factories were severely affected by macroeconomic conditions over the past two years, including our FX crunch and the resulting shortage of raw materials and other necessary production inputs due to difficulties funding imports, according to industry sources. Local players have also been facing heated competition from Syrian companies in industrial zones, our sources said.

Reviving a major industrial cornerstone: Since 2020, the government has been working on a EGP 20 bn program to revive the spinning and weaving industry in Kafr El Dawwar and Beheira, a source in the Public Enterprises Ministry told Enterprise. Alongside spinning and weaving companies, the government decided to renovate a major silk and polyester factory in Kafr El Dawar, according to our source.

Since the EGP float earlier this month, the government has “received a large number of offers” from investors looking to become partners in the factory, our source said. “The investments will help significantly boost exports from the sector while saving USD 600-800 mn from state coffers that would have been spent on importing silk and industrial polyester,” according to our source. Bringing the factory back online will cost less than the returns it will generate, particularly as its output will be used partially for the local market and partially for exports, the source said.

We’re getting attention from Turkish investors in particular: Local private sector investors have expressed interest to the government in investing in the Kafr El Dawwar factory — which dates back to the 1950s — and the government has already met with several of the investors that have submitted investment offers for the factory, our ministry source said. However, the government’s current strategy is focused on drawing in foreign direct investment and shoring up exports, meaning it is currently prioritizing investments from foreign partners. The government is working on operating two other factories with new production lines to produce textile fibers that meet international quality standards, making it viable for exports.

Foreign investors are going to partner with local manufacturers, but they plan to set up their own projects to take advantage of a favorable business environment in Egypt, according to International Textiles Chairman Sayed El Barhamtoshy, who is also a member of the 10 Ramadan Investors Association. Foreign investors now see plenty of attractive points in the Egyptian market, including a now-flexible exchange rate, the end of the parallel market, and a weakened official currency which means more exports at lower costs, El Barhamtoshy told Enterprise. “Since the EGP float, we’ve received several calls from major Turkish yarn production companies that are now looking at either brownfield or greenfield investments in Egypt,” he said.

Part of our appeal to Turkish investors is that they have their own economic woes, El Barhamtoshy pointed out, noting that Turkey has been grappling with soaring inflation and a weakening currency, which has pushed local manufacturers to look at taking their business offshore.

Your top industrial development stories for the week:

Egyptian insulin to land in Cuba: Arab Company for Drug Industries and Medical Appliances (ACDIMA) will begin exporting Egyptian-made insulin to Cuba.
ADQ-owned Emirati F&B company Agthia plans to set up an export facility in Egypt to serve markets in the Gulf and North Africa.
Elsewedy Electric to set up a USD 50 mn Saudi factory? Elsewedy Electric subsidiary Elsewedy Electric for Electrical Products wants to establish a USD 50 mn power transformers factory in Saudi Arabia in partnership with an unnamed Saudi partner.

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INSIDE INDUSTRY Manufacturing

THE ENTERPRISE ENTERTAINMENT CALENDAR

16-20 March (Saturday-Wednesday): Hekayatna Helwa suhoor at HydeOut.

17 March (Sunday): Comedy Stuff’s Ramadan Night standup at ROOM New Cairo.

18 March (Sunday): ROKN X ROOM Ramadan Night at ROOM New Cairo.

18 March (Sunday): EgyptianMawlaweyaperformance at Cairo Opera House.

19 March (Tuesday): MeshMawgoodLive Podcast: Fobia Elsobia at Rawabet.

20 March (Wednesday): Mother's Day with Society of Play.

20-23 March (Wednesday-Saturday): Advertising Workshop: Presenting and Pitching for Creatives at SYNC School.

21 March (Thursday): The Mad Day standup show at ROOM Garden City.

21 March (Thursday): Komedy Koshk open mic at Eden Spaces.

22 March (Friday): WTFun standup show at ROOM Garden City.

22 March (Friday): Al Hadra concert at Cairo Opera House.

22-29 March (Friday-Friday): Spend the Day in Khalifa event by Megawra.

23 March (Saturday): Ramadan Comedy Night at ROOM New Cairo.

23 March (Saturday): Dina El Wedidi Saharat Ramadan concert at Cairo Opera House.

25 March (Monday): Connect Four Live standup comedy show at Rawabet Art Space.

31 March (Sunday): Medhat Salah concert at Cairo Opera House.

APRIL

5 April (Friday): Iftar at Wadi Degla with VAMOS.

5 April (Friday): Sufi Dance Performance at Dawar Arts.

5-6 April (Friday-Saturday): Mevlevi Night at Royal Park.

9 April (Tuesday): Eid El Fitr (TBC).

10 April (Wednesday): Amr Diab concert at Cubix El Gouna.

19 April (Friday): Keinmusik at the Giza Pyramids by Panorama 2.

20 April-June 8 (Saturday-Saturday): Sketching Course at Art Square Academy.

23-24 April (Tuesday-Wednesday): Omar Khairat concert at Cairo Opera House.

25 April (Thursday): National holiday in observance of Sinai Liberation Day (TBC).

25-27 April (Thursday-Saturday): Insomnia Egypt Gaming Festival at the International Exhibitions Center.

MAY

1 May (Wednesday): National holiday in observance of Labor Day (TBC).

3 May (Friday): Youth to Business (Y2B) event at The GrEEK Campus.

5 May (Sunday): Coptic Easter.

6 May (Monday): Sham El Nessim (TBC).

23-25 May (Thursday-Saturday): The Design Show at Cairo International Conventions Center.

25 May (Saturday): Techne Summit at the Cairo International Stadium.

JUNE

15-19 June (Saturday-Wednesday): Eid El Adha (TBC).

30 June (Sunday): June 30 Revolution Day (TBC).

JULY

7 July (Sunday): National holiday in observance of Islamic New Year (TBC).

23 July (Tuesday): Revolution Day (TBC).

SEPTEMBER

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

OCTOBER

6 October (Sunday): Armed Forces Day.

EVENTS WITH NO SET DATE

2023: The inauguration of the Grand Egyptian Museum.

Q1 2024: Opening of the newly developed Pyramids Plateau in Giza.

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