{"id":571431,"date":"2020-05-12T04:02:56","date_gmt":"2020-05-12T04:02:56","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/12\/what-were-tracking-on-12-may-2020\/"},"modified":"2020-05-12T04:02:56","modified_gmt":"2020-05-12T04:02:56","slug":"what-were-tracking-on-12-may-2020","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2020\/05\/12\/what-were-tracking-on-12-may-2020\/","title":{"rendered":"What we\u2019re tracking on 12 May 2020"},"content":{"rendered":"

Some good news to get us over the midweek hump: <\/strong>The International Monetary Fund <\/strong>has approved USD 2.77 bn in pandemic aid to Egypt <\/strong>as its executive board signed off yesterday on a short-term rapid financing (RFI) instrument.<\/p>\n

Talks with the fund will begin today over a separate stand-by arrangement<\/strong> that could see Egypt receive up to USD 5 bn in additional funding, Vice Finance Minister Ahmed Kouchouk told talk show host Lamees El Hadidi yesterday (watch, runtime: 14:30<\/a>). We have the full story in this morning\u2019s Speed Round, below.<\/p>\n

Meanwhile: We have a week and a bit left before the Eid holiday<\/strong>, but it\u2019s all our reptile brains can think of right now.<\/p>\n

(Yes, we know, reptile brain = breathing and other vital functions. And yes, we know \u2014 neuroanatomists have kind of refined MacLean\u2019s original triune concept of the brain from the 1960s, etc, etc. We nevertheless insist it is our brain\u2019s most primordial component that is keeping us squarely focused on some time off. Ramadan + pandemic = most anxiously anticipated Eid ever<\/strong>.)<\/p>\n

<\/a> The question of the morning: Will we have to go through a full lockdown to get there? <\/strong>The notion runs counter to the signals senior policymakers have sent in the past week, but it\u2019s hard to ignore the fact that the head of the state\u2019s covid-19 scientific committee told Al Kahera Alaan\u2019s Lamees El Hadidi last night (watch, runtime: 9:37)<\/a> that a 24-hour lockdown until the Eid should be an option on the table. The remarks came after both a top Medical Syndicate official and presidential health advisor Mohamed Awad Tageldin said a full lockdown could be in the works<\/a> in the run-up to the holiday.<\/p>\n

We\u2019re mentally on the beach right now<\/strong> \u2014 and Orascom Development Holding\u2019s announcement (pdf)<\/a> that it\u2019s going to start reopening hotels this coming Friday (15 May) hasn\u2019t helped. All hotels in the resort town are set to be open to domestic tourists under the government\u2019s guidelines<\/a> \u2014 including only operating at 25% capacity \u2014 by 21 May, the company said.<\/p>\n

But our Personal Prophet of Doom and Gloom\u2122 can\u2019t resist pouring cold water on the <\/strong>faint rays of sunshine: <\/strong>Soliman Wahdan, the deputy speaker of the House of Representatives, is calling for the state to close highways to traffic between governorates during the Eid holiday to prevent the spread of the virus, says, according to Youm7<\/a>.<\/p>\n

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Two international stories we\u2019re keeping an eye on this morning:<\/strong><\/p>\n

1- Are we looking at a \u201ctilde\u201d recovery?<\/strong> That\u2019s a ~ to those of you who don\u2019t geek out over<\/a>typography<\/a> because you\u2019re \u2026 well \u2026 more socially adept than we are. The notion that we\u2019re looking at a long, drawn-out recovery is gaining currency in the global business press, with some likening it to a tilde and others calling it a \u201cswoosh\u201d recovery (from Nike\u2019s iconic emblem). See analysis in both the Wall Street Journal<\/a> (where\u2019s it\u2019s the lead story on the web heading into deadline this morning) and the New York Times<\/a>.<\/p>\n

2. Are we seeing the first signs of a \u201csecond wave\u201d of covid infections in Asia? <\/strong>Wuhan has reported its first cluster<\/a> of infections since it ended its lockdown and South Korea is tying new cases to its easing of social distancing measures<\/a>.<\/p>\n

It\u2019s enough to make you ponder how pandemics end<\/strong> \u2014 and who decides we\u2019ve gotten<\/a>there<\/a>.<\/p>\n

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It\u2019s interest rate week, and 10 of the 12 analysts<\/strong> in <\/strong>our regular poll<\/a><\/strong> expect the central <\/strong>bank to leave rates on hold <\/strong>when its monetary policy committee meets this coming Thursday.<\/p>\n

** PSA- Every bank in the country is going to require you to wear a mask<\/strong> if you show up at a branch starting next Sunday (17 May), the Federation of Egyptian Banks said in a statement<\/a> yesterday.<\/p>\n

So, when do we eat? <\/strong>Maghrib prayers are at 6:40pm and you\u2019ll have until 3:24am to finish caffeinating. Fajr is coming one minute earlier every day through the end of the Holy Month.<\/p>\n

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TAKE OUR POLL- How is covid-19 impacting your business?<\/a><\/strong> We do an annual reader poll asking what you expect of business conditions and the economy in the year ahead. Covid-19 has us thinking that the results of this year\u2019s survey<\/a> need updating. Take a minute and tell us how covid-19 has impacted your business, whether it\u2019s changed your outlook on the economy, and what you think of WFH.<\/p>\n

You can take the survey here<\/a><\/strong> and we\u2019ll have the results for you immediately after the Eid holiday.<\/p>\n

enterprise<\/p>\n

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

<\/a> Egypt has now disclosed a total of 9,746 confirmed cases of covid-19<\/strong> after the Health Ministry reported 346 new infections yesterday. The ministry also said that another eight people had died from the virus, taking the death toll to 533. We now have a total of 2,655 confirmed cases that have since tested negative for the virus after being hospitalized or isolated, of whom 2,172 have fully recovered.<\/p>\n

QNB Al Ahly will be the first recipient in Egypt of pandemic aid from EBRD <\/strong>as the lender takes on USD 100 mn for on-lending to impacted businesses, a bank statement<\/a> said. The loan will be used to support businesses of all sizes, but will have a \u201cspecial focus\u201d on SMEs struggling with slowdown in activity and weaker profitability. The facility is part of EBRD\u2019s covid-19 solidarity package<\/a>. EBRD will also increase a finance limit for QNB Al Ahly under its trade facilitation programme by USD 100 mn to USD 250 mn to meet increased demand for imports and exports.<\/p>\n

Meanwhile, State-owned Banque du Caire signed up yesterday for a USD 100 mn credit <\/strong>line from the European Investment Bank (EIB), <\/strong>the bank said, according to Al Mal<\/a>. The credit line, which EIB approved last month<\/a>, will be used to on-lend SMEs.<\/p>\n

Egypt will soon have the capacity to make 1 mn medical masks per day<\/strong>, up from 750k currently, head of the Federation of Egyptian Industries\u2019 medical supplies division Sherif Ezzat said, according to the local press<\/a>.<\/p>\n

Lobby group wants to do away with development fee on mobile phones + accessories:<\/strong> The Federation of Egyptian Chambers of Commerce, which goes by the unfortunate acronym FEDCOC, is lobbying the government to scrap a 5% levy on mobile phones and accessories that could be imposed as part of a raft of new fees being introduced to help the state plug its budget deficit<\/a>, head of the Cairo chamber of commerce\u2019s digital economy division Karim Ghoneim tells Al Mal<\/a>. An additional tax will drive prices and slow the country\u2019s digital transformation, he said.<\/p>\n

Repatriation flights continue: <\/strong>The government has brought home 750 more Egyptians stranded in Kuwait and placed them under quarantine in accommodation at Cairo University campus, the Giza governorate said in a statement<\/a>. Repatriation flights start tomorrow to bring home workers stranded in the UAE, the Manpower Ministry said<\/a>. Also expected this week:<\/strong> Flights to bring back citizens from Sudan, the UK and the United States.<\/p>\n

The United States Agency for International Development\u2019s (USAID) Egypt director Sherry <\/strong>Carlin has pledged that the organization will continue to support Egypt through the pandemic<\/strong> in an interview with Ahram Online<\/a>. \u201cThis partnership is important to US foreign policy and to the American people and we will continue the forward movement of impactful programs that are fully in line with the Egyptian government\u2019s priorities,\u201d she said.<\/p>\n

DONATIONS-<\/strong><\/p>\n

CIB has donated USD 7 mn to the government\u2019s emergency fund<\/strong> to combat covid-19, and USD 250k to the African Union\u2019s Covid-19 Response Fund, a cabinet statement said<\/a>.<\/p>\n

Al-Mansour Holding Company has pledged EGP 51.5 mn <\/strong>to support government efforts to treat covid-19 infections and soften the economic impact of the pandemic on vulnerable families, according to a cabinet statement<\/a>. The funds will be split between the Health Ministry, the Tahya Misr fund, and paying for food for healthcare workers and the families of 10k day laborers.<\/p>\n

Souq is donating EGP 800k to the Egyptian Food Bank <\/strong>to provide food, disinfectant supplies, and informational pamphlets to 4k vulnerable families across the country, according to an emailed statement (pdf)<\/a>.<\/p>\n

Juhayna will provide ventilators to 300 general hospitals, 1k health facilities and<\/strong> 50 quarantine hospitals<\/strong> in coordination with the Health Ministry and UNICEF, Al Shorouk reports<\/a>.<\/p>\n

The Chinese government has donated 4 tonnes of medical supplies to Egypt<\/strong>, including covid-19 testing kits, N95 medical masks, and PPE kits, according to a Health Ministry statement<\/a>. The shipment is a gesture from China to \u201creturn the favor\u201d after Egypt had sent medical supplies to Beijing at the beginning of its outbreak, China\u2019s ambassador in Cairo took to twitter to say<\/a>. E-commerce giant Ali Baba has also pledged a separate 4.7-tonne medical equipment shipment to Egypt.1<\/p>\n

enterprise<\/p>\n

GLOBAL MACRO- <\/strong><\/p>\n

Lockdown measures are having a devastating impact on employment across the globe<\/strong>:<\/strong><\/p>\n