{"id":591826,"date":"2019-12-18T04:26:52","date_gmt":"2019-12-18T04:26:52","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/18\/what-were-tracking-on-18-december-2019\/"},"modified":"2019-12-18T04:26:52","modified_gmt":"2019-12-18T04:26:52","slug":"what-were-tracking-on-18-december-2019","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/18\/what-were-tracking-on-18-december-2019\/","title":{"rendered":"What we\u2019re tracking on 18 December 2019"},"content":{"rendered":"

<\/a> Talking point of the morning: The flu. At least one Cairo-area private school has <\/strong>closed early for the Christmas holiday<\/strong> and two others have sent updates to parents amid warnings that this year\u2019s flu season could be particularly nasty. New Cairo British International School (NCBIS) said it was sending students and staff on holiday early \u201con advice from the Ministry\u201d and would re-open as planned on 12 January 2020. The decision was made for \u201cthe health and safety of everyone,\u201d the note said. The American International School in Egypt (AIS) reportedly told parents earlier this week that it had found its first \u201creported case that tested positive for H1N1 virus\u201d<\/strong> (that\u2019s the so-called \u201cswine flu\u201d). Cairo American College (CAC) said last night that it doesn\u2019t currently see the need to close early, but urged everyone to \u201ctake everyday preventive actions to help stop the spread of the flu virus.\u201d<\/p>\n

Have more than a couple of people in your workplace? <\/strong>Take basic precautions, folks. Remind staff to cover their mouth and nose when they cough, to wash their hands often, and to stay home if they have flu-like symptoms.<\/p>\n

Should you be freaked out? Not yet.<\/strong> But you need to pay attention. The US Center for Disease Control warns that flu season could peak earlier this year, with the apex of the annual outbreak possibly coming this month. Kids and the elderly are particularly vulnerable to complications. WebMD has lots more about the flu<\/a> and Ars Technica<\/a> has a good rundown on CDC\u2019s warnings as well as on reports that this year\u2019s flu includes an \u201cunusual type\u201d that\u2019s dominating the early start to the season.<\/p>\n

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Look for the EGP\u2019s rally this week against the greenback to continue getting attention in<\/strong> the<\/strong> press<\/strong> as analysts line up to explain what the currency\u2019s improved performance means for the future. There are diverging opinions on where the EGP will be next year, with Naeem Brokerage\u2019s Allen Sandeep telling Reuters<\/a> the FX rate could hit EGP 15.75 \/ USD 1 in 1Q2020, while Renaissance Capital\u2019s Ahmed Hafez tells the newswire the currency could weaken in 2020. RenCap sees lower inflows from fixed income portfolios and reduced Egyptian treasury purchases, and expects the current account deficit to push a depreciation in the EGP, \u201cwhich is already trading at a premium to its long-term average REER [real effective exchange rate].\u201d<\/p>\n

*** Tell us what you think will happen in 2020 and maybe we\u2019ll send you an Enterprise mug and our very own coffee:<\/strong> Your view on where the EGP will be next year is one of the key questions in our 2020 Enterprise Reader Poll<\/strong>, which also asks you if your company is hiring, how optimistic you are about the economy in the new year, and other questions designed to take the pulse of our community. Tell us, and we\u2019ll share the results with the entire community in early January to help you shape your view of the year. The survey is quick, we promise.<\/p>\n

You can take the Enterprise Reader Poll here<\/a><\/strong>.<\/strong><\/p>\n

As a token of our thanks, we\u2019re going to send 40 readers their very own <\/strong>Enterprise mug and a bag of our special coffee blend<\/strong>, produced in association with our friends at 30 North<\/a>. Want a chance to get a mug of your own? Make sure you give us your name and complete contact information at the bottom of the survey.<\/p>\n

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<\/a> Finance nerds should keep their ear to the ground today: The market for <\/strong>corporate paper looks like it\u2019s about to get a shot in the arm. <\/strong>Word on the street is that EFG Hermes is about to take to market a short-term bond issuance for a high-profile real estate outfit in what could be the first offering of its kind under a new regulatory framework<\/a> introduced by the Financial Regulatory Authority (FRA) last year. The FRA said<\/a> yesterday that it had greenlit an offering, but did not name the issuer, saying only that EGP 2 bn-worth of short-term bonds would be issued, with the proceeds earmarked to finance working capital. If it goes through, it would be the first issuance of corporate paper in Egypt (other than securitized bonds) in almost a decade<\/a>.<\/p>\n

Sound smart:<\/strong> The new FRA rules allow joint-stock and limited liability companies, banks, financial institutions and SMEs to sell short-term debt instruments with maturities of less than two years to retail and institutional investors. Issuers must have two years\u2019 worth of financial statements audited by an FRA-approved auditor, be investment grade themselves (at least a BBB- credit rating), and appoint a FRA-approved lead manager.<\/p>\n

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Assistant secretary for the US State Department\u2019s Bureau of Near Eastern Affairs <\/strong>David Schenker arrived in Egypt yesterday<\/strong> for a trip that will see him meet unnamed \u201csenior Egyptian officials\u201d and officials from the Arab League, according to a State Department statement<\/a>. Schenker, who is in town until Friday, will also visit Sinai to visit the multinational force and observers in the peninsula.<\/p>\n

enterprise<\/a><\/p>\n

Oil prices eased from a three-month high on the back of a report that showed \u201csurprise<\/strong> builds\u201d in the US\u2019 crude inventories<\/strong>, Bloomberg reports<\/a>. \u201cOil futures ended Tuesday\u2019s session just 6 cents shy of the USD 61 mark, buoyed by rebounding U.S. factory production and progress between [the] world\u2019s two largest economies on trade,\u201d the business information services says.<\/p>\n

enterprise<\/a><\/p>\n

Fingers pointed at emerging markets as global consumption slows: <\/strong>UBS economists say that falling spending in emerging markets has been largely responsible for a slowdown in global consumption this year, the Financial Times says<\/a>. Growth of global consumer spending and GDP are on course to hit decade lows this year, with EMs accounting for around 80% of the slowdown.<\/p>\n

It has been a tough year to be a fintech unicorn:<\/strong> Amid the record equity prices and plunging bond yields, 2019 has seen many a fintech unicorn fall on its face. The Wall Street Journal<\/a> looks at the headwinds fintech companies face, including unreliable technology, small consumer bases and business models that focus more on finance and less on tech.<\/p>\n

Mideast-focused healthcare chain under fire from short seller: <\/strong>Shares of UAE-based NMC Health<\/a> tumbled 27%, the London-listed company\u2019s sharpest-ever decline, on the back of a report by short seller Muddy Waters<\/a> alleging that the company\u2019s \u201cfinancial statements hint at potential overpayment for assets, inflated cash balances and understated debt,\u201d according to Bloomberg<\/a>. Shares of LSE-listed Finablr, which shares a founder with NMC and which went public this year, fell yesterday on the NMC news, Bloomberg<\/a> reports.<\/p>\n

Other business and international news you should know:<\/p>\n