It’s all a mess in financial markets

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WHAT WE’RE TRACKING TONIGHT

THIS EVENING: EFG Corp-Solutions closes EGP 2 bn securitized bond issuance + “It’s all a bit of a mess” in financial markets + RIP Coolio

It’s finally the weekend, wonderful people — and nearly the end of the month, too. We hope you get to unplug before we jump into a new workweek with the start of a new month.

THE BIG STORY TODAY

EFG Hermes Corp-Solutions closed a EGP 2 bn securitized bond issuance backed by a receivables portfolio of c. EGP 2.9 bn, EFG Hermes’ investment banking division said in a press release (pdf). The issuance — the second for EFG Corp-Solutions — includes three tranches with ratings of AA+, AA, and A-.

THE BIG STORY ABROAD

A quote to summarize and end the week? “It’s all a bit of a mess,” as one analyst tells Reuters. The Stoxx Europe closed down 1.5%, while the GBP is down another 0.4% and the EUR slipped 0.2% against the greenback. The UK 10-year government bond yield, which drives borrowing costs, rose 15 bps to 4.16% after crashing almost 50 bps the day before thanks to the Bank of England intervening to buy long-dated bonds. The focus continues to be on how high central banks are willing to hike interest rates to keep up with the greenback crushing global currencies as the USD index rose back towards a 20-year high.

ALSO- Scale of Nord Stream damage widens: Swedish coastguards have discovered a fourth gas leak on the damaged Nord Stream pipelines today, Reuters reports, after three leaks were found earlier this week prompting suspicions of sabotage. While neither of the Russian-owned gas pipelines were in use at the time of the leaks, stored gas has been leaking to the surface of the Baltic sea prompting climate concerns. This is the second leak reported in Swedish waters, while another two were found in Danish waters.

Rapper Coolio (who is most widely known for his song, Gangsta’s Paradise), passed away yesterday at age 59, his manager confirmed to CNN. His cause of death remains unconfirmed, according to the Guardian.

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

The EGP closed at a record low against the greenback yesterday, breaking past the December 2016 low seen in the wake of what was (at the time) an historic float.
Is Saudi fintech Sanad Cash moving in on Capiter? Saudi fintech platform Sanad Cash reportedly wants to acquire 60% of crisis-stricken B2B e-commerce startup Capiter.
The government’s automotive committee held its first meeting yesterday headed by Prime Minister Mousatafa Madbouly.

🗓 CIRCLE YOUR CALENDAR-

The Egyptian Museum and the Manial Palace Museum are hosting a month-long book fair, coinciding with the 200th anniversary of the deciphering of the Rosetta Stone, Al Masry Al Youm reports. The book fair kicked off earlier this week and is running through 27 October.

PSA #1- Women entrepreneurs: Are you looking for funding? The Facility Investing for Employment is looking to write co-financing tickets in the EUR 1-10 mn range for new projects at businesses that “contribute to sustainable job creation.” Its focus is on women entrepreneurs and women-led businesses, according to a press release (pdf). Entrants can apply starting 14 November.

PSA #2- Nominations for the “Africa grows green awards” are now open through 10 October. The initiative, launched by Egyptian NGO Istidama, aims to celebrate stakeholders involved in climate change action among COMESA member states, according to a statement (pdf). The awards also seek to develop climate entrepreneurship by connecting companies with VCs. For more information and to apply, you can visit the initiative’s website.

Check out our full calendar on the web for a comprehensive listing of upcoming news events, national holidays and news triggers.

☀️ TOMORROW’S WEATHER- The national weather service is suggesting we’re in for some warm weather through to Monday, with daytime highs of 35-38°C in the capital city and overnight lows in the 23-26°C range, it said (pdf) yesterday.

The new hybrid work model: Flexetariats + ADQ’s Further Ventures is piling into tech investments

Meet the Flexetariat: Empowered employees with flexibility at core of their working identity. The pandemic has caused people to reevaluate their priorities, with work-life balance and well-being now standing at the top of employees’ list of priorities, nearly in line with pay, according to a 2022 Gallup survey. Major trends that have changed assumptions about the manner in which we go about working, include an increased demand for flexible work and changing attitudes about the daily commute, according to Bloomberg.

Demand for flexible working has soared, giving rise to various four-day workweek trialsacross the world and hybrid models. If given the chance to work flexibility, 87% of employees said they would take it, according to McKinsey’s American Opportunity Survey. Some in the global business community are staunchly opposed to the idea of working from home, including Elon Musk, who demanded that Tesla employees work from the office. His golden quote on productivity while working from home: “They should pretend to worksomewhere else.”

Daily commutes are now seen “as a passion killer for workers.” Employees are increasingly viewing commutes as an unproductive waste of time. In response, several offices are moving closer to where workers reside or are getting rid of excess space that has been freed by an increase in remote work.

ADQ-backed Further Ventures goes deeper in tech: Venture building and investment firm Further Ventures, which is backed by Abu Dhabi sovereign wealth fund ADQ, has set up a USD 200 mn fund to invest in early-stage startups, Bloomberg reports, citing a statement. The fund is planning to focus on investments in digital assets, fintech, and supply chain technology. The new venture will provide capital for startups throughout the growth process from pre-seed to market entry.

This is part of a concerted push from ADQ to jump on tech startups: Last month, the sovereign fund announced a partnership between its Abu Dhabi Growth Fund and AI firm G42 to launch a USD 10 bn fund focused on investing in tech in emerging markets. These funds and investments are all part of Abu Dhabi’s drive to diversify its economy.

Settle in for a football-packed weekend + Unpacking decades of fad diets, health myths, and food policies + The tech industry’s fundamental questions haven’t changed much

📺 ON THE TUBE TONIGHT-
(all times CLT)

Fate: The Winx Saga exemplifies why young adult fantasy shows are so addictive: The Netflix show is set in a magical universe with superpowers and is refreshingly lighthearted (watch trailer, runtime 2:14). From The Vampire Diaries producer Brian Young, the show centers on Bloom, a bright-eyed, red-haired American fairy with a mysterious past, who attends Alfea, a legendary fairy school in an undisclosed magical location (though everyone else’s British accents serve as a hint). Sky, the school’s most popular boy, falls head over heels for the feisty Bloom who, unlike her classmates, only recently discovered she possessed special abilities after accidentally setting fire to her family’s home. Nonetheless, her teachers agree in private that she has more potential than anyone else at the school. While there is plenty of danger and tension, the story is also about close friendships, romantic relationships, and boarding school, and it has a no-pressure chill vibe that makes it easy to binge-watch.

⚽ There’s no football today, but it’s going to be an action-packed weekend. On Friday, Gameweek 7 of Spain‘s La Liga kicks off with Athletic Bilbao and Almeriafacing off at 9pm.

Bayern Munich opens Gameweek 8 of the German Bundesliga, playing against Bayer Leverkusen at 8:30pm.

Saturday: The English Premier League returns with a bang, with seven matches:

Arsenal v Tottenham (1:30pm)

Liverpool v Brighton (4pm)

Crystal Palace v Chelsea (4pm)

Fulham v Newcastle (4 pm)

Southampton v Everton (4 pm)

Bournemouth v Brentford (4 pm)

West Ham v Wolverhampton (6:30pm)

Remember to sign up for the Enterprise Fantasy League via this link, or by using the code 8o4sut.

And in La Liga: Barcelona faces Real Mallorca at 9pm. Before that, Cadiz faces Villarreal at 2pm, followed by Getafe v Valladolid at 4:15 pm, and finally Sevilla v Atletico Madrid at 6:30pm.

In Italy’s Serie A, you don’t want to miss Inter v Roma, which kicks off at 6pm.

Also in Serie A: Naples v Turin (3pm), and Empoli v Milan (8:45pm)

In France’s Ligue 1, Paris Saint-Germain faces Nice at 9pm.

🥐 EAT THIS TONIGHT-

Your weekend brunch plans, sorted: European kitchen Bäxters brings some European favorites to Cairo: The cafe was founded by sisters inspired by their grandmother, who herself was a bäxter — Scottish for a woman baker — and their Finnish mother. The founders included specialties from across the continent on their menu. The spot, located in O1 Mall in New Cairo, has quite a lot of brunch options, from a 24-hour Dutch-style smoked brisket sandwich to a nordic salad that boasts all the traditional flavors, from pickled onions to smoked salmon. You can also find all sorts of eggs on their brunch menu, whether you prefer them poached or scrambled, and all are served with their crusty country loaves. The baked goods are where the cafe truly shines, with treats including German custard cake and Belgian chocolate chip cookies.

🎤 OUT AND ABOUT-
(all times CLT)

Funnation is taking over the stage at El Sawy Culturewheel for a stand up comedy show at 8pm tonight, featuring comedians Waleed Abo Almagd, Mohamed Morgan, Waleed Mostafa, Mahmoud Konafa, Islam Amin, Moaz Abdelsalam and Ghada Salah.

Singer, poet and composer Moustafa Hussien gives some old tunes a modern twist at Room Art Space Garden City at 9pm.

Want to try your hand at throwing out some punchlines? Komedy Koshk’s Comedy Open Mic Night starts at 8pm at Soul Lounge in Maadi tomorrow night.

Catch The Sinatra Show by Gaby Bishara at Room Art Space Garden City tomorrow night at 9pm.

Head toCairo Jazz Club 610 on Saturday at 2pm to enjoy some brunch with disco and funk beats, courtesy of Youssef Roushdy and STZ.

It’s a jam packed night at AUC Tahrir this Saturday: She Arts starts the night off with a Canaan Folklore Dance at 7pm, followed by an Iroko Trio concert at 7:30pm, a comedy set by Comedy Sett at 8:45pm, and the night concludes with a Tablet El Sitt concert at 10pm.

👂 EARS TO THE GROUND-

Debunking health fads: Maintenance Phase sets out to debunk the “junk science behind health fads, wellness scams and nonsensical nutrition advice.” Fad diets have been around for ages, and the trendy weight loss plans all promise the same thing: Fast, dramatic results. Several fad diets have emerged throughout the decades, from the downright dangerous cigarette diet in the 1920s to the bizarre baby food diet that had adults consuming jars of baby food in the early 2000s. Hosted by Aubrey Gordon and Michael Hobbes, each episode of the podcast tackles a wellness-industry-related health myth, policy, or topic. Episode topics range from the UK’s new law requiring large restaurants to disclose each dish’s calorie count on their menus, to the history of the body mass index and how scientific it really is.

💡 UNDER THE LAMPLIGHT-

What the markets are doing on 29 September, 2022

The EGX30 rose 1.3% at today’s close on turnover of EGP 1.19 bn (20.5% above the 90-day average). Local investors were net buyers. The index is down 17.8% YTD.

In the green: Qalaa Holdings (+6.1%), Eastern Company (+2.8%) and Telecom Egypt (+2.4%).

In the red: Juhayna (-1.4%), EFG Hermes (-1.1%) and Credit Agricole (-0.5%).

The future of supply chains: Shorter and greener

The supply chain renaissance: Supply chains as we once knew them are changing in response to the global turmoil of the past couple of years, which exposed the cracks in the outdated cycle that gave us most of our beloved products.

Supply chains are wishing the 2020s hadn’t happened: First came the pandemic. Then came the blocking of the Suez Canal. And now there’s the war in Ukraine. All three events have combined to put pressure on supply chains unlike anything experienced in the era of globalization. All of this has highlighted the vulnerability of globalized supply chains to disruptive events, forcing companies to rethink and reconfigure.

Could shorter supply chains be the answer? Companies are now looking into shorter supply chains, even if it comes at a higher cost. A shorter, safer but more expensive option is a trade-off some are willing to make, and this is likely to grow, according to Forbes. Shortening a supply chain means cutting down the number of those involved in the cycle and therefore limiting the supply chain’s vulnerability to issues and delays due to global disturbances. Usually a shorter supply chain will mainly rely on local products, avoiding overseas shipping and whatever issue it might bring along.

Some manufacturers have already taken the leap: After the pandemic and issues securing supplies from China — thanks to its zero-covid policy hindering operations — a number of European manufacturers have shortened their supply chains and are now using European suppliers, according to a survey done by the Supply Chain Movement magazine. And although it might cost a little more to source supplies locally or regionally, it is more agile and less risky that some manufacturers just bite the bullet and go for shorter supply chains.

Everything is pointing to shorter chains: As the entire world shifts its focus towards everything sustainable and green, supply chains are no different, recently being under scrutiny for their significant carbon footprint. It comes as no surprise that shipping materials from across the world is no good for the environment, seeing that international shipping accounts for around 3% of all global emissions, more than Germany — the world’s fourth-largest economy — produces in a year, and almost four times Egypt’s annual CO2 footprint. The solution? Shorter supply chains.

No employees, no problem: Warehouses all over have started using tech to automate the process of sorting through inventory and shipping out orders, helping companies overcome labor shortages seen over the past two years, according to the New York Times. This comes shortly after the so-called “Great Resignation” has seen record numbers of people quit their jobs over the past year, and with 11 mn job vacancies the number of applicants remains low. This is forcing companies in some sectors to aggressively up their salaries to attract and retain talent or in some cases, use robots.

How can robots help? As they would in any other profession, the use of robots in the supply chain movement improves the pace of work and the accuracy of operations, mainly in warehousing and manufacturing, according to research published by Deloitte. Using robots also increases the work efficiency of human employees and reduces their risk of injury. On the downside, the increase of automation brings along a faster work pace and a more repetitive routine, which results in a very high turnover and burnout for warehouse employees.

Where things currently stand: Supply chains are just starting to recover from the perfect storm of tribulations and shipping prices have almost halved, with the average cost of moving a 40-foot metal box dropping 45% from its peak last year.

Want more on supply chains? The Wall Street Journal documentary “Why Global Supply Chains May Never Be the Same” (watch, runtime: 54:42) takes us through the lifecycle of a product — from assembly to delivery — giving us a peek into how each link of supply chains have changed in the wake of the pandemic.

CALENDAR

OUR CALENDAR APPEARS in two sections:

Events with specific dates or months are right here up top
Events happening in a quarter or other range of time with no specific date / month appear at the bottom of the calendar.

SEPTEMBER

September: Central Bank of Egypt’s Innovation and Financial Technology Center to launch an incubator for 50 fintech startups.

September: Meeting of the Egyptian-German Joint Economic Committee.

September: A delegation from Germany’s Aldi will visit Egypt to look at potential investments.

September: Government to launch an international promotional campaign for Egyptian tourism.

25-29 September (Sunday-Thursday) FranEgypt will hold its first virtual expo on franchises in the country.

27-29 September (Tuesday-Thursday): Africa Renewables Investment Summit (ARIS), Cape Town, South Africa.

27-29 September (Tuesday-Thursday): HSBC Energy Transition Webinar series.

27-29 September (Tuesday-Thursday): The 14th edition of Creative Industry Summit, Cairo Business Park, New Cairo.

27 September-27 October (Tuesday-Thursday): The Egyptian Museum the Manial Palace Museum host a book fair.

28-29 September (Wednesday-Thursday): The sixth edition of Arab Pensions and Social Ins. Conference in Sharm El Sheikh.

28-29 September (Thursday-Friday): The first edition of the World Food Security Conference in Cairo.

30 September (Friday): Winter opening hours for shops and restaurants begin.

OCTOBER

October: Air Sphinx, EgyptAir’s low-cost subsidiary to commence operations.

October: Fuel pricing committee meets to decide quarterly fuel prices.

1 October (Saturday): Start of 2022-2023 public school year.

1 October (Saturday): House of Representatives reconvenes after summer recess.

1 October (Saturday): 2022- 2023 academic year begins for public universities.

4-8 October (Tuesday-Saturday): The Chemical and Fertilizers Export Council of the Trade and Industry Ministry is organizing a trade mission to Kenya.

6 October (Thursday): Armed Forces Day, national holiday.

8 October (Saturday): Prophet Muhammad’s birthday, national holiday.

10 October (Monday): The CEO Women Conference.

10-14 October (Monday-Friday): Gitex Global, Dubai International Convention and Exhibition Centre, Dubai, UAE.

10-16 October (Monday-Sunday): World Bank and IMF annual meetings, Washington, DC.

15 October (Saturday): Cairo Metro will launch a global tender for maintenance work on the power stations and overhead catenary system of Line 1.

16-19 October (Sunday-Wednesday): Cairo Water Week 2022, Nile Ritz Carlton, Cairo.

17 October (Monday): Fifth Egypt and UN-led regional climate roundtable ahead of COP27, Geneva, Switzerland.

18 October (Tuesday): The Egyptian-Swedish business forum, Stockholm, Sweden.

23-25 October (Sunday-Tuesday): Egypt’s economic conference, Cairo, Egypt.

24 October (Monday): Empowering Sustainable Trade Flows with Factoring conference, St. Regis Cairo.

27 October (Thursday): European Central Bank monetary policy meeting.

27-30 October (Thursday-Sunday): Cairo ICT, Egypt International Exhibition Center, New Cairo.

30 October - 1 November (Sunday - Tuesday): Egypt Energy, Egypt International Exhibition Centre (EIEC) in New Cairo.

Late October-14 November: 3Q2022 earnings season.

Late October: First Abu Dhabi Bank to complete full integration with Bank Audi’s Egyptian operations after merger.

NOVEMBER

1-2 November (Tuesday-Wednesday): Federal Reserve interest rate meeting.

1-2 November (Tuesday-Wednesday): Arab League annual summit, Algiers, Algeria.

3 November (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

3-5 November (Thursday-Saturday): Egypt Fashion Week.

4-6 November (Friday-Sunday): Autotech auto exhibition, Cairo International Exhibition and Convention Center.

6-18 November (Sunday-Friday): Egypt will host COP27 in Sharm El Sheikh.

7 November (Monday): The inauguration of the first line of the high-speed rail.

7-13 November (Mon-Sun): The International University Sports Federation (FISU) World University Squash Championships, New Giza.

21 November-18 December (Monday-Sunday): 2022 Fifa World Cup, Qatar.

DECEMBER

3 December (Saturday): Dior Men’s pre-fall collection show in Giza.

13-14 December (Tuesday-Wednesday): Federal Reserve interest rate meeting.

13-15 December (Tuesday-Thursday): US-Africa Leaders Summit.

15 December (Thursday): European Central Bank monetary policy meeting.

22 December (Thursday): Central Bank of Egypt’s Monetary Policy Committee meeting.

December: The Sixth of October dry port will begin operations.

December: Egypt to expand Sudan electricity link capacity to 300 MW.

JANUARY 2023

January: EGX-listed companies and non-bank lenders will submit ESG reports for the first time.

January: Fuel pricing committee meets to decide quarterly fuel prices.

1 January (Sunday): Use of Nafeza becomes compulsory for air freight.

1 January (Sunday): Residential electricity bills are set to rise as per the government’s six-year roadmap (pdf) to restructure electricity prices by 2025.

7 January (Saturday): Coptic Christmas.

24 January-6 February: The 54th Cairo International Book Fair, Egypt International Exhibition Center

25 January (Wednesday): 25 January revolution anniversary / Police Day.

26 January (Thursday): National holiday in observance of 25 January revolution anniversary / Police Day.

FEBRUARY 2023

11 February (Saturday): Second semester of 2022-2023 academic year begins for public universities.

13-15 February (Monday-Wednesday): The Egypt Petroleum Show (Egyps), Egypt International Exhibition Center, Cairo.

23-27 February (Thursday-Monday): The eighth annual Business Women of Egypt’s Women for Success conference.

MARCH 2023

March: 4Q2022 earnings season.

23 March (Wednesday) — First day of Ramadan (TBC). Maghreb will be at 6:08pm CLT.

APRIL 2023

17 April (Monday): Sham El Nessim.

22 April (Saturday): Eid El Fitr (TBC).

25 April (Tuesday): Sinai Liberation Day.

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

Late April – 15 May: 1Q2023 earnings season.

MAY 2023

1 May (Monday): Labor Day.

4 May (Thursday) National holiday in observance of Labor Day (TBC).

22-26 May (Monday-Friday): Egypt will host the African Development Bank (AfDB) annual meetings in Sharm El Sheikh.

JUNE 2023

19-21 June (Monday-Wednesday) Egypt Infrastructure and Water Expo debuts at the Egypt International Exhibition Center.

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

30 June (Friday): June 30 Revolution Day.

JULY 2023

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.

Late July-14 August: 2Q2023 earnings season.

SEPTEMBER 2023

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

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

OCTOBER 2023

6 October (Friday): Armed Forces Day.

Late October-14 November: 3Q2023 earnings season.

EVENTS WITH NO SET DATE

2H 2022: The inauguration of the Grand Egyptian Museum.

2H 2022: IEF-IGU Ministerial Gas Forum, Egypt. Date + location TBA.

2H 2022: The government will have vaccinated 70% of the population.

3Q 2022: Ayady’s consumer financing arm, The Egyptian Company for Consumer Finance Services, to release its first financing product.

3Q 2022: Swvl to close acquisition of Urbvan Mobility.

4Q 2022: Infinity + Africa Finance Corporation to close acquisition of Lekela Power.

4Q 2022: Electricity Ministry to tender six solar projects in Aswan Governorate.

4Q2022: Raya Holding subsidiary Aman and Qalaa Holdings’ Taqa Arabia to launch their fintech company.

4Q 2022: Saudi Jamjoom Pharma to inaugurate its EGP 1 bn pharma factory in El Obour.

End of 2022: Decent Life first phase scheduled for completion.

End of 2022: e-Aswaaq’s tourism platform will complete the roll out of its ticketing and online booking portal across Egypt.

2023: Egypt will host the Asian Infrastructure Investment Bank’s Annual Meeting of the Board of Governors in 2023.

1Q 2023: Adnoc Distribution’s acquisition of 50% of TotalEnergies Egypt to close.

**Note to readers: Some national holidays may appear twice above. Since 2020, Egypt has observed most mid-week holidays on Thursdays regardless of the day on which they fall and may also move those days to Sundays. We distinguish above between the actual holiday and its observance.

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