{"id":571275,"date":"2020-05-06T04:02:18","date_gmt":"2020-05-06T04:02:18","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/06\/what-were-tracking-on-6-may-2020\/"},"modified":"2020-05-06T04:02:18","modified_gmt":"2020-05-06T04:02:18","slug":"what-were-tracking-on-6-may-2020","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/06\/what-were-tracking-on-6-may-2020\/","title":{"rendered":"What we\u2019re tracking on 6 May 2020"},"content":{"rendered":"

It\u2019s a relatively quiet morning in Egypt and around the world<\/strong>, with the biggest story on the home front being the breathtaking (if very much expected) plunge in the purchasing managers\u2019 index last month. We have the full story in this morning\u2019s Speed Round, below.<\/p>\n

<\/a> Still, we offer a sliver of sunshine on a (metaphorically) cloudy day: CEOs in Egypt are<\/strong> increasingly <\/strong>optimistic about the pace at which business could recover <\/strong>this year as the Madbouly government eases restrictions in place to slow the spread of covid-19. Here\u2019s what we\u2019re hearing after speaking with nearly a dozen CEOs and other top execs in the past week:<\/p>\n

It was all doom and gloom from mid-March until mid-April <\/strong>when measures were first imposed. Sales slowed sharply across industries and execs were in full-on crisis mode managing staff safety, bankers, investors, supply chains and distribution while re-working budgets and strategy for 2020.<\/p>\n

We\u2019re looking at a slow Ramadan. <\/strong>Dessert sales coming in 30-40% lower<\/a> this year compared to last? That\u2019s the canary in the coal mine \u2014 but much better than the picture looked in the first two weeks of April.<\/p>\n

Things have stabilized in the past two weeks <\/strong>as restrictions have eased somewhat. Execs have adapted to a \u201ccoexisting with covid\u201d way of life \u2014 and their customers have, too. CEOs say their customers are slowly starting to spend again. Consumer appetite is coming back faster than is appetite from other businesses, but there\u2019s a modest, across-the-board pickup (with all of the variation by industry that you\u2019d expect).<\/p>\n

Most CEOs we spoke with now expect 2Q to be their worst quarter this year. <\/strong>Only the last two weeks of the first quarter were hit when the state imposed covid-control measures in mid-March. April was hit from start to finish, and things have only started (slowly) stabilizing in the past 10-14 days.<\/p>\n

They see business conditions improving in 3Q <\/strong>\u2014 and a handful of the most optimistic corporate bosses expect they may be able to start making up lost ground in the fourth quarter.<\/p>\n

With the outlook for the rest of 2020 now seeming (a bit) clearer, execs should be asking<\/strong> what <\/strong>trends are going to (re?)shape their industries. <\/strong>We\u2019ve previously argued that the pandemic will accelerate pre-existing trends in most industries, including the drive toward digital. With their businesses stabilizing, CEOs need to raise their heads and look to 2021 and beyond.<\/strong><\/p>\n

\n

News triggers to keep your eye on<\/strong> over the coming days:<\/p>\n