Good afternoon all you wonderful people, and happy Tuesday. We have a packed issue for you today, with all the latest on Egypt’s most recent PMI report and the degradation of language in the digital age.

THE BIG STORY TODAY

Egypt’s non-oil business activity continued to grow for the second month running — but at a slower pace, “marking the first back-to-back improvement in business conditions in over four years,” according to S&P Global EgyptPMI(pdf). Egypt’s headline figure dipped to 50.1 in February from a 50-month-high of 50.7 in January. Last month’s figure represented the index’s highest level for Egypt since November 2020, and marked only the second time the country's non-oil activity has hit expansion territory during this period.

There’s been no better start to Egypt’s year: “Coupled with January's upturn, the data reflects the best opening two months of the year in the survey's history,” S&P Global Senior Economist David Owen said.

Input cost pressures “remained relatively soft” compared to what was seen in 2024, which indicates that “inflation is likely to continue its downward trend, in the near-term at least,” Owen said. While some respondents cited increased cost pressures to a stronger USD, this was partly offset by a decline in staff costs. However, cost pressures were felt more in the manufacturing and construction sectors. Meanwhile, selling prices rose at a gradual rate in February, as businesses looked to “limit the pass-through of higher cost burdens to clients.”

AND- The emergency Gaza-focused Arab League summit is taking place in Cairo later today, bringing together a long list of Arab leaders in an effort to unify the Arab stance against the calls for displacement of Gazans.

THE BIG STORY ABROAD

The int’l news cycle is back in full swing today, after US President Donald Trump impositionof tariffs on Mexico, Canada, and China and his decision to put a pause on US aid to Ukraine yesterday set off a spiral of tit-for-tat tariff escalations.

China hit back against Trumps’ doubling of tariffs on Chinese imports to 20% by imposingretaliatory tariffs on certain US food products, set to go in effect on 10 March. Beijing has also filed suit against the US at the World Trade Organization (WTO), saying that the tariffs violate the rules of WTO and undermine economic relations between the two parties.

Meanwhile, OPEC is making waves with its decision to finally implement the unwindingof oil production cuts beginning in April. The move comes after multiple delays since the bloc announced that it would be ending mandatory production cuts in June. “The change in the OPEC strategy looks like they are prioritizing politics over price,” chief commodities analyst at SEB Bjarne Schieldrop told Reuters. “Those politics are likely connected with the wheeling and dealing of Donald Trump,” who has called for lower oil prices, Schieldrop added.

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

• A look at SFE’s opening move for its state company takeover plan: The first phase of the Sovereign Fund of Egypt’s (SFE) plan to take over all public enterprises will target some 370 profitable firms — over half of the total 709 companies owned by the state.
• Egypt, EU explore future economic relations: Planning and International Cooperation Minister Rania Al Mashat met with Dubravka Šuica, the EU's new Commissioner for the Mediterranean, to discuss the future of economic relations between Egypt and the European Union.
• Another FDI-funded leather factory in Robbiki City in the pipeline: An unnamed Turkish leather company has requested the Industry Ministry allocate an 80k sqm land plot to establish a EGP 2 bn (c. USD 39.5 mn) leather factory in Robbiki Leather City.

☀️ TOMORROW’S WEATHER- Expect some thunderstorms in the capital tomorrow, with a high of 21°C, a chilly low of 12°C, and a 41% chance of rain according to our favorite weather app.