Week in Review – Egypt´s New Capital, Turkey´s Currency and Corona Beer

New Capital City for Egypt

Ancient Cairo will be replaced as Egypt´s capital – a new city will be build east of Cairo, on the edge of the current capital. It will be a natural extension. The aim is to relieve Cairo and ease the overpopulation over the next 40 years, as the population is expected to double by then. The plan was announced at an investment conference and will be built by a private real estate investment fund.

The project is estimated to cost around € 40 bn and will take five to seven years. More than 1 million jobs will be created through the projects and the new city is supposed to house more than five million people, 2000 schools and colleges and 600 health care facilities. Important offices will move to the new capital, like the Egyptian parliament and its government and ministries, as well as the foreign offices.

The new capital is supposed to help with Egypt´s struggling economy. It will be situated between Cairo and the Red Sea, thus linking important shipping routes. If and when the city is finished it will be the size of Singapore with roughly 700 sq km and an airport larger than Heathrow. The name of the new city has not yet been revealed.

to replace (rɪˈpleɪs) – etw ersetzen
edge (eʤ) – der Rand, Kante
current (ˈkʌrənt) – jetzige, gegenwärtig, aktuell
extension (ɪkˈsten(t)ʃən) – die Ausdehnung, Erweiterung
aim ( eɪm) – das Ziel, die Absicht
to relieve (rɪˈli:v) – etw lindern, Abhilfe schaffen
to ease (i:z) – etw erleichtern, etw lindern
health care facility (helθ keəʳ fəˈsɪlɪti) – die Pflege- und Betreuungseinrichtung
foreign office (ˈfɒrɪn ˈɒfɪs) – das Auswärtige Amt
to struggle (ˈstrʌgl̩) – sich abmühen, abrackern
economy (ɪˈkɒnəmi) – die Wirtschaft
to be situated (ˈsɪtjueɪtɪd) – gelegen, platziert sein
thus (ðʌs) – folglich, so, auf diese Weise
size (saɪz) – die Größe
to reveal ([rɪˈvi:l) – etw enthüllen, preisgeben

Currency Crisis in Turkey

The crash of the Turkish lira is threatening to turn into a debt and liquidity crisis. The currency lost nearly 45% of its value since the beginning of the year. The crisis was caused by a combination of factors – excessive current account deficit, foreign currency debt, President Erdogan´s increasing authoritarianism and his unorthodox ideas about interest rate policy.

Another reason for the market turmoil in Turkey is the ongoing dispute with the US. Last week president Trump approved of the doubling of tariffs on Turkish steel and aluminum. Turkey on the other hand, refuses to set free an American pastor, who is suffering Turkish detention for almost two years now.

Erdogan spoke of a plot against the country and has vowed to do everything in his power to keep Turkey on track. As a start, 346 social media accounts are taken legal actions against for talking about the weakening lira in a provocative way. After the collapse of the lira Turkey´s central bank as well is ready to take all necessary measures to ensure financial stability.

debt (det) – Schulden
liquidity (lɪˈkwɪdəti) – die Zahlungsfähigkeit, Liquidität
currency (ˈkʌrən(t)si) – die Währung
value (ˈvælju:) – der Wert
excessive (ɪkˈsesɪv) – übermäßig
current account deficit (ˈkʌrənt əˈkaʊnt ˈdefɪsɪt) – das Leistungsbilanzdefizit
foreign currency debt (ˈfɒrɪn ˈkʌrən(t)si det) –Fremdwährungsschuld
interest rate policy (ˈɪntrəst reɪt ˈpɒləsi) – die Zinspolitik
turmoil (ˈtɜ:mɔɪl) – der Aufruhr, Chaos
tariff (ˈtærɪf) – die Zollgebühr, Zoll
to refuse (rɪˈfju:z) – etw verweigern, ablehnen
detention (dɪˈten(t)ʃən) – die Haft, Arrest
plot (plɒt) – die Verschwörung, der Plan
to vow (vaʊ) – etw schwören, versichern
weakening (ˈwi:kən ɪŋ) – schwächelnd, nachlassend
necessary (ˈnesəsəri) – notwendig, erforderlich
measure (ˈmeʒəʳ) – die Maßnahme

Corona Beer invests in Cannabis

In a deal marking the largest investment in the industry so far Corona Beer owner, Constellation Brands, is set to pour $4 bn into Canada´s top cannabis producer, Canopy Growth. The beer brand wants to profit from the growing legalisation of the drug. For Canopy, on the other hand, it’s a chance to expand their business reach. Nearly 30 countries so far are pursuing the medical cannabis programme.

Last year the two companies already worked together on a non-alcoholic cannabis-based beer. Canopy Growth has a range of products like cannabis-based oils and soft gel caps. With the money from Constellation they plan to produce edible bars, inhalers and pre-rolled items. Furthermore, they want to offer cannabinoid-based medicines for anxiety, pain and sleeplessness.

The Canadian government passed a bill in June earlier this year to legalise recreational cannabis, which is set to roll out in October. The deal between Constellation Brands and Canopy Growth is set to be closed not earlier than October. This will give Constellation 38% of ownership in Canopy Growth. Their stock market value surged 30%, while Constellation Brand´s value, on the other hand, fell 6%.

There is a change in attitude towards the legalisation of cannabis all over the world.

to pour (pɔ:ʳ) – in etw fließen lassen, pumpen
brand (brænd) – die Marke, Eigenname
to expand (ɪkˈspænd) – etw erweitern, ausdehnen
to pursue (pəˈsju:) – jdn/etw verfolgen, verwirklichen wollen
edible (ˈedɪbl̩) – essbar, genießbar
bar (bɑ:ʳ) –
anxiety (æŋˈzaɪəti) – die Angst, Panik
pain (peɪn) – Schmerz, Leiden
recreational (ˌrekriˈeɪʃənəl) – Freizeit-, Eholungs-
ownership (ˈəʊnəʳʃɪp) – das Eigentum, Besitz
to surge (sɜ:ʤ) – sich auftürmen, stark ansteigen
attitude (ˈætɪtju:d) – die Haltung, Einstellung