{"id":570305,"date":"2020-03-26T04:11:50","date_gmt":"2020-03-26T04:11:50","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/03\/26\/what-were-tracking-on-26-march-2020\/"},"modified":"2020-03-26T04:11:50","modified_gmt":"2020-03-26T04:11:50","slug":"what-were-tracking-on-26-march-2020","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/03\/26\/what-were-tracking-on-26-march-2020\/","title":{"rendered":"What we\u2019re tracking on 26 March 2020"},"content":{"rendered":"

We are in the final minutes of the country\u2019s first nighttime curfew in some seven years<\/strong>, and the streets were eerily empty past dusk. Al Shorouk<\/a> and Ahram Online<\/a> carried pictures of the ghost town that was Cairo.<\/p>\n

Who\u2019s still working? <\/strong>For those still unclear on whose doors are still open during the curfew, the cabinet has posted a handy infographic<\/a> illustrating the sectors and services still operating and their working hours.<\/p>\n

Markets seem to be taking a breather this morning:<\/strong> In trading yesterday, US stocks had their first back-to-back gains since February and the EGX30 closed again in the green. Asian markets were largely trading sideways this morning, and US futures were marginally in the red at the time of dispatch. Look for them to surge today if we get word from Washington on a stimulus agreement.<\/p>\n

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COVID 19 IN EGYPT-<\/strong><\/p>\n

<\/a> The Health Ministry <\/strong>yesterday reported<\/a><\/strong> 54 new cases of covid-19<\/strong>, all Egyptian citizens, bringing the overall total to 456<\/strong>. The virus claimed another victim, a 63-year-old Monufia resident, bringing the death toll to 21. Ninety-five people have now made full recoveries after 11 Egyptians and four foreigners were discharged from hospital yesterday. There are now 113 people who have tested negative after treatment, suggesting they may have recovered.<\/p>\n

Outpatient clinics are now closed and there will be 19 state labs testing for the virus <\/strong>that causes covid-19 when two more labs start operation later today, Health Minister Hala Zayed said yesterday<\/a>. Zayed also said that the ministry will allow pharmacies to dispense three-month supplies of meds for beneficiaries of the public healthcare insurance program those with chronic illnesses. Mothers benefitting from programs to expand access to baby formula will also be allowed to stock up. Both measures are designed to encourage social distancing by reducing footfalls at pharmacies.<\/p>\n

The government is requiring construction companies to monitor their workers\u2019 <\/strong>temperatures and provide them with masks and disinfectants<\/strong> as precautions against covid-19, according to the local press<\/a>. Ambulances will also be required to remain on sites with more than 100 workers.<\/p>\n

The Financial Regulatory Authority has granted MSMEs a six-month grace period <\/strong>to pay insurance premiums<\/strong>, according to an official statement<\/a>. It alsoformed an emergency committee<\/a> to follow up on the impact of the outbreak and take the necessary actions to protect microfinance in particular.<\/p>\n

The Finance Ministry has issued a decree obliging VAT registrants to file their taxes<\/strong> despite the partial economic shutdown, the local press reports<\/a>.<\/p>\n

Some food and pharma producers want exemptions from curfew for their staff<\/strong>, saying the measure will make it difficult for them to keep shelves stocked, the local press reported<\/a>. Manufacturers will likely place their workforce on a rotation schedule, which head of the Sixth of October Investors Association Mohamed Khamis Shaaban claims would cause productivity to fall by 75%. The curfew-driven productivity loss could drive up prices, warns the Beni Suef association head Mohsen El Gebaly. Neither Shaaban nor El Gebaly explain the math here, particularly since the Federation of Investor Associations\u2019 food industries division said the curfew<\/a> would not reduce food manufacturers\u2019 productivity.<\/p>\n

Egyptian cotton exports have ground to a halt amid cratering global demand<\/strong>, Masrawy<\/a>reports<\/a>, citing sources at the Cotton Exporters Association. Countries across the world \u2014 including India, the biggest importer of Egyptian cotton, \u2014 have shuttered factories, effectively ending Egypt\u2019s exports. Times were already tough for the industry, having seen exports fall almost 40% during the first three months of the export season, which started in September.<\/p>\n

Nissan is halting operations at its Giza assembly plant for two weeks<\/strong>, according<\/a>to AP<\/a>. Factory work will also be suspended at the company\u2019s facilities in South Africa and India while office-based employees will continue working from home.<\/p>\n

Egypt\u2019s four mobile operators are reducing <\/strong>their store opening hour<\/strong>s <\/strong>to 8:30am - 4:30pm<\/strong> in light of the curfew, the National Telecommunications Regulatory Authority said yesterday, according to Ahram Online<\/a>.<\/p>\n

EFG Hermes\u2019 installment payment app valU is giving Uber drivers a three-month <\/strong>grace period to pay their premiums.<\/strong> The decision comes a day after the government banned ride-share services<\/a> as a precautionary measure, according to the local press<\/a>.<\/p>\n

Speaking of Uber:<\/strong> The company has suspended its personal vehicle services from 6pm until 6am and its Uber Bus service between 5pm and 7am as of yesterday, according to an emailed statement.<\/p>\n

Swvl, meanwhile, is cutting back on its trips and is making them all available <\/strong>without charge <\/strong>to provide transport for individuals who are still going to work, according to the local press<\/a>. The ride-hailing app is halving the number of passengers allowed in each vehicle.<\/p>\n

The Cairo metro is running on an amended schedule<\/strong>, which you can find here in this cabinet<\/a>statement<\/a>.<\/p>\n

Saudi Arabia will extend the visas of Egyptians still stuck in the country<\/strong> and give pilgrims struggling to depart until 28 March to request an exemption to avoid paying fees associated with an extended stay, according to the local press<\/a>. Oman is working on arranging an exceptional flight to Egypt to repatriate citizens.<\/p>\n

On a lighter note, Red Sea governor Gen. Amr Hanafi quipped that the mayor of El Qusayr <\/strong>was detained for breaking curfew yesterday<\/strong>, in a chat with talk show host Ahmed Musa<\/a> on Sada El Balad, to illustrate how serious authorities are about enforcing it. He was released shortly after.<\/p>\n

\"enterprise\"<\/p>\n

ON THE GLOBAL FRONT-<\/strong><\/p>\n

Countries have \u201csquandered\u201d the first chance to contain the pandemic,<\/strong> the head of the<\/a>World Health Organization said yesterday<\/a> in a statement that criticized the slow roll out of measures to stem crisis. \u201cThe time to act was actually more than a month ago or two months ago,\u201d Director-General Tedros Adhanom Ghebreyesus said in a rare public criticism of the world\u2019s response to the pandemic.<\/p>\n

The situation in Spain is continuing to deteriorate:<\/strong> Spain\u2019s death toll has surpassed that of China after 738 new deaths were reported yesterday, Reuters reports<\/a>. Spain now has the second-highest number of deaths (more than 3.4k) after Italy, which has seen over 7.5k people die.<\/p>\n

Debt relief needed for poorest countries, <\/strong>say World<\/strong> Bank, IMF:<\/strong> The World Bank and the IMF have called on creditors<\/a> of vulnerable countries to suspend debt payments to help them cope with the economic fallout of the pandemic. International Development Association (IDA) countries are home to a quarter of the world\u2019s population and two-thirds of the world\u2019s population living in extreme poverty. Debt relief \u201cwill help with IDA countries\u2019 immediate liquidity needs to tackle challenges posed by the coronavirus outbreak and allow time for an assessment of the crisis impact and financing needs for each country,\" they said in a joint statement.<\/p>\n

The growing case for FX controls in emerging markets:<\/strong> Accelerating capital flight from emerging markets is calling into question the long-held wisdom of maintaining floating exchange rates, Reuters reports<\/a>. EM stocks and bonds have seen almost USD 80 bn in outflows since the beginning of February<\/strong>, according to Societe Generale data, making a return to currency controls more attractive to developing countries hard hit by the pandemic and the oil price collapse. \u201cThere is some early evidence of an unprecedented collapse in global capital mobility which, if sustained, will make it tempting for countries to conserve their FX resources by imposing restrictions on capital outflows,\u201d said David Lubin, head of EM economics at Citi.<\/p>\n

Focus on balance sheets not dividends, investors tell businesses:<\/strong> Companies should postpone dividend payouts and focus on supporting their balance sheets to survive the crisis, some of the world\u2019s largest investors told the Financial Times<\/a>. BNP Paribas, Legal & General and Fidelity International all said that companies need to rethink their dividend strategies as revenues plunge following widespread lockdowns.<\/p>\n

Is anticipated economic stimulus a chance to build a greener, more sustainable, more <\/strong>equitable economy?<\/strong> Yes, say environmentalists, but not necessarily right away. While some want to put clean energy at the front and center of any economic bailout \u2014 by requiring that airlines facing bankruptcy promise to lower emissions as a condition of financial support, for instance \u2014 others say the priority right now has to be mitigating economic pain that lies ahead, Bloomberg reports<\/a>.<\/p>\n

Other global covid-19 news:<\/strong><\/p>\n