a lot of people overlook uae and qatar being under 2%.u are at five or 6%, you cannot ignore that. you could be at 3% and like it, but you could be at seven or 8% if you are bullish. reclaiming a permanent part in a global em portfolio is a game changer for this region. ali from the investment bank. please stick around because we want to continue that conversation. we will take a little bit deeper into the region's first quarter number. we will be back in two minutes. this is bloomberg. ♪ yousef: you are watching bloomberg, i am yousef in dubai. i am shery ahn in hong kong. a quick check of the latest business headlines. abu dhabi commercial bank's he estimates with an 8% jump in first-quarter profits. earnings were boosted by gains in islamic financing and tighter controls over spending. they set aside less to cover -- with the kleins of the uae economy in revival mode your it before results were released, abu dhabi commercial bank had of 11t recommendations buys, three holds and one sail. 5% afterrofits fell the logistics firm saw a ris

but how much she practically congealed with the saudi and uae on this issue simply is not clear. think the plans that are dx is, more precision and munitions. this basically means one basic criteria. if you don't give them those munitions, david is non-precision munitions and the end result will be higher collateral damage of a lot more civilian casualties. not every arms they'll just one that adds to the problem. some of them add to the solution. >> all right. but that we will call it a day. thank you for starting off your week sis. literature and boxes. we'll have the transcript probably by this afternoon. if for some reason you're not in a mailing list, come find me and i will make sure you are put on. once again, thanks for joining us. [inaudible conversations] [inaudible conversations] [inaudible conversations] >> present trends first foreign trip as president will take into saudi arabia, and israel, the vatican to brussels for a nato summit.

yousef: could it be a possible indicator about demands moderating or slowing down in the uae?rse, you can see that demand is less on tourism, on retail. yousef: it is a tale of two cities. you have companies that continue to sell and improve on their balance sheets, then you have arab tech and dsi that have a different story. which is it? nabil: i think there are two different stories. amar has a trusted bra. ar th and dsi are different. ijust a different story. am ia brand, people do trusted blindly. -- sompele do call t apple of this world. some people do trusted blindly. shery: we keep hearing rumors about consolidation in the uae. what are you hearing on the ground? nabil: there are so many rumors that more mergers will happen between banks and some companies. we have not had a great track record in this part of the world with mergers. we have not seen it actually working for so many people. usm&a at the moment in thi part of the world is more off a sequence, not an action. we need to wait and see how that is going to turn out. keeping in mind that many of the companies or

would like to see saudi arabia and the uae use air power more carefully with collateral damage. we would like to see that improved. there is a problem here that tends to get forgotten. there is exactly one country in the world that can actually conduct the kind of surgical airstrikes the u.s. conducts as part of its operations in afghanistan, iraq, and syria. that britainar can't do it -- they have highly sophisticated structures but not the next are of reconnaissance -- mixture of reconnaissance and communications to deal with it. russia can certainly do better, but it is not a country with its budget that can operate the level the united states can. countries like saudi arabia and the uae have capable combat units, but not the battle bow -- not the battle management that the u.s. does. to some extent we have created an expectation of air power. but how much you practically can deal with the saudi and uae on this issue simply is not clear. they will get, under the plans morealready exist, precision munitions. --s meets one basic criteria if you don't give them those munitions,

they've been joined by fellow uae club al ahli who were 2—0 winners over zob ahan of iran. amiri kurdi clinching the win with the second. in group d, saudi arabian champions al hilal needed a late goal to claim first place and a spot in the last 16. level at 3—3 with less than ten minutes remaining, it needed 0mar khribin‘s second goal of the match in the 84th minute to take them to a 4—3 win away to qatar's al rayyan. while a hatrick from iranian international mehdi taremi means persepolis are also into the knock out stage with an equally entertaining 4—2 win over al wahda. at the madrid 0pen eugenie bouchard is through to the last 16 after winning a much anticipated match against maria sharapova. the russian has recently returned from a is—month doping ban and bouchard has been a fierce critic of her opponent in the lead up to her recent return to the court referring to her as "a cheater". 0n the court the canadian prevailed 7—5, 2—6, 6—4 against the wildcard. i definitely had some extra motivation going into today. 0bviously, motivation going into today. obviously, i had

al ain of the uae are through to the asian champions league quarter finals after a 6—2 aggregate winghlal in their last 16 tie. despite trailing 1—0 from the opening match the home side made light work of their opponents with a 6—1 second leg victory, their brazilian winger kye—you picked up both goals in the first half, this one thanks to some dubious goalkeeping from seyed mehdi rahmati and the match was as good as over when 0mar abdulrahman also benefited from a goalkeeper misjudgementjust after half time to make it 3—0 helping send his side through to the last eight a bit of pitch cleaning was required in dubai before al ahli of the uae played their namesa kes from saudi arabia. but it was the saudis who progress to the last eight as taisir aljassim scored the opener as his side won 3—1 on the night and 11—2 on aggregate. now to the french open tennis where defending women's champion garbine murguruza beat 2010 winner francesca schiavone in straight sets on monday at rolland garros. reigning men's champion novak djokovic was playing his first match under the watching eyes of new

would like to see saudi arabia and the uae use air power more carefully with collateral damage. we would like to see that mproved. there is a problem here that tends to get forgotten. there is exactly one country in the world that can actually conduct the kind of surgical airstrikes the u.s. conducts as part of its operations in afghanistan, iraq, and syria. it became clear that britain and france can't do it. they have highly sophisticated structures but don't have the mixture of reconnaissance and communications to deal with this. russia can certainly do better, but it is not a country with its budget that can operate the air operations at the level of the united states can. countries like saudi arabia and the uae have capable combat units but don't have the battle management and i.s.r. assets the u.s. does. to some extent we have created an expectation of air power. which is demanding enough for the united states. but how much you practically can deal with the saudi and uae on this issue simply is not clear. they will get, under the plans that already exist, more precision mu

when it comes down to what you can do in kuwait or bahrain, what you can do in the uae with qatar, ihink you already have about as much a you can credibly get. and you need to realize that part of that is an immense backlog of interoperable munitions, equipment, spares, ability to operate u.s. forces in the event of a serious war with iran, and already a pledge to seek a common missile defense against iran. you are talking an absolutely immense potential investment. this is not something that the president can go to saudi arabia ,nd deal with, because remember you not only have the 60 days to talk about solutions in dealing with the war on isis, you have an executive order calling for conference of review of u.s. partegy in providing that submission.budget and here i read very cautious to ask for a really dramatic u.s. initiative before you have agreed on what you are doing in terms of budget submission in the first strategies that these are completed. might be a little premature. >> hi, ways of america. going back to the main issue, president trump has called night out and obsolete

dor is a brand, people trusted blindly. >> we keep hearing rumors about consolidation in the uae.hearing on the ground? >> there are so many rumors that more mergers will happen between banks are companies. we have not had a great track record in this part of the world with mergers. we have not seen it actually working for so many people. plus, m&a at the moment in this part of the world is more off a sequence been an action. we need to wait and see how that is going to turn out. keeping in mind that many of the companies or big banks are paly state-owned, so it must be state decides to move on with , ibetween companies don't think we are going to see much more happening in less it is a push from the upper authority. >> you were talking about , youech and esi, -- dsi said there would be more than the oil price, but the oil prices keep these economies and we are now hearing the all caps could be extended even further come even beyond the end of 2017. given that the price of oil is new the levels of november before the cuts, what is the point of extending thescu further? wouldn't th

a be the simple journalists because we do have these upgrades for kuwait but also for the uae.esearch saying the midi position to upgrade was premature -- moody position to upgrade was premature given the headwinds in the economy. we had the opec agreement to but that is going to weigh on gold ulf producers. >> for kuwait, oil prices are comfortable for that economy. we think we have a comfortable reserve position. if you take the uae, you have southern -- sovereign wealth close to $1 trillion and there is a lot of diversification in that economy. we do not think it was premature. we agreed that kuwait and the at will be the top in the gc the moment. kuwait has i think been one of the hottest spots in the region for stocks. we had a lot of questions, a lot of demands in terms of how the --companies are doing. i think they should continue to that's a veryot hot spot for investors. i was looking at my schedule of rating reviews, bahrain is a due to have its ratings reviewed by s&p by june 2. the outlook there is stable. i had one fund manager describe ce of thes the gree middle e

many people overlook the uae and qatar for being under 2%. you can ignore that.e you are at 5%, 6%, you can no longer ignore it. could also be at 7% or a percent if you're bullish. claiming a permanent part of the global em portfolio is a game changer for this region. yousef: coming up next on "best of bloomberg markets: middle european airlines is moving. what is next and what went wrong, and how it can savage its investment in air blend --this is bloomberg. ♪ yousef: welcome back to "best of bloomberg markets: middle east." the company plans to stand by our berlin after they report operating losses. this came after its other european partner went bankrupt. this is on top of president restrictions, making life tougher over the middle east. we talk to the director at frost and sullivan. >> over the years, there have investments.ity they were not in the best of situations financially, and operationally. apparently have not improved since then. >> one of the things that struck a laom last week's , they said that it had failed. why is there that sentiment in italy f

minister is uae unlikely to discuss an exit strategy anytime soon.een hints it is possible. betty: what has been interesting is what we have seen from the u.s., which we talked about quite a bit. part of the reason we are stuck in this range is, even though they may have been enacting, staying on cuts, shale production in the u.s. has not abated. that has undermined any impact from these cuts. it does not look like a u.s. shale producers will stop. even if prices go lower in this range. oil're looking at producing for the future and global demand. yvonne: we saw u.s. crude inventories shrank for seven straight months. we are still well above that five-year average around this time. still a lot to contend with when it comes to u.s. shale. betty: inventories are not falling fast enough. we will have plenty more opec coverage dropped the day, including an exclusive conversation with nigeria's oil minister. that is at 2:00 p.m. hong kong time, 7:00 a.m. in london. we will be listening in carefully on what he has to say about these cuts. yvonne: not just

far it's the president of china or other individuals as you can see by the week we're week with the uae, turkey, colombia, the president s making it clear he's reestablishing relationships around the globe to protect and advance our national interests. one. s is a special >> they're all -- i mean, look, agree -- i understand. there's a lot of relationships that the president wants to this and for the good of country. john. >> thank you. first, reports may be confirmed that ms. calista gingrich will be the third ambassador to the -- announced. as been >> has her name been vetted with the vatican? but i'm not try going to -- the answer is we announcements.nel >> the other question is not related to personnel but process the fbi director. sarah spoke last week about an director of ting the fbi but with the interviews the you describe with president of justice, can we xpect that the name who is nominated for the position from that podium will be for director and promptly submitted to the senate? >> i believe that's the president's expectation. yes. you have an acting now until omeone is sel

king abdullah of jordan and the uae. they will be much more effective fighting isis. when you talk about going into sunni-arab parts of iraq iraq, they may not like isis, but if they see the united states groveling towards iran, they don't want to be dominated by a shiia power. judge jeanine: isn't historically, saudi arabia, aren't they historical enemies? >> saudi is basically the heart of sunni islam. iran is the heart of shiia islam than is fighting going on between them. judge jeanine: how do you look at the fact that the president has chosen saudi arabia for the first visit. >> the moderate arab countries work with israel. a lot of it is behind the scenes because they do that it unless their interests to join with israel, share intelligence, have military cooperation because they recognize the threat that iran pose. from israel's perspective they have to be very pleased with the monthsture this administration has taken. netanyahu came to congress, i was there, raising the dangers with the nuke deal. obama didn't listen to them. now they have a partner in this co

talks, he a working lunch with him and also worth noting that he is the deputy supreme commander of the uae armed forces. i want to bring my panel in to talk about this. let's touch upon that. this is a big week for donald trump to look outside of the u.s., which politically is a welcome idea for those around him. >> first of all, he'll have more meetings with international leaders here, but then the big one is at the end of the week when he himself will travel on a pretty big international trip. he's going to go to saudi arabia, israel, brussels and he's going to meet the pope at the vatican. and it's going to be a lengthy trip and probably a very nice reprieve from kind of rattling around inside the white house where he has had difficulty after difficulty a lot of self-imposed crises, i should say, but it's going to be a completely different ball game. you have seen him already today try to pivot not just with this important meeting that he had with the crown prince of abu dhabi, but on a completely different note speaking to police officers memorial looking and sounding so much more conv

we do know that arab gulf states like saudi arabia, the uae, have been drawing upa saudi arabia, the been drawing up a document in which, to use a phrase of the ministers, they wa nt to use a phrase of the ministers, they want to start bringing down the walls of hatred for israel and one said to me, why should there be such a ferrari when an israeli tennis player wants to play against arabs in an international tournament —— such a fuss. they want to normalise the relationship with israel in some limited technical and economic and cultural ways even before there is a successful peace process with the palestinians. that is very important. there have already been secret and not so secret contacts between senior saudi officials and israelis. they will make common cause when it comes to their shared animosity against iran and the battle against extremist forces and they are now ready to be part of a broader arab israeli peace deal and thatis broader arab israeli peace deal and that is one thing the palestinians and the arabs can give to israel in the give and take in any process. thank yo

about two weeks after this meeting with kislyak in question, the crown prince of abu dhabi in the uae, basically our most important arab ally, he sneaks into new york in order to meet with jared kushner, not at trump tower, at another location. you know, again, why did that have to be done so clandestinely? you know, the only reason the obama folks found out about that visit was because the name of the crown prince appeared on the flight manifest which was reviewed by border patrol in uae before the flight took off to go to new york. so, again, over and over there is this obsession with secrecy, which i think is basically coming back to bite them. whether it was intended to be nefarious or perfectly innocent and their goal was just to basically not have public scrunity, i don't know, but it just keeps coming back again and again to the same thing. >> we're not completely in the dark here. when you meet with a guy like sergey gorkov, you're talking to a guy that has something to do with sanctions relief, something to do with they want to get those sanctions gone. we know motive here. t

banks heren those and you could say more coming in the uae and across the region.here do you see the capital inflows going from here? ultimately the saudi stock market has been trying to open up to foreign investors. when you look at demand for the saudi bonds, there has been appetite. it has outweighed supply. when you look at the stock story, it is a different story because it has been very slow to gain momentum. is that going to change, what will be the catalyst? is it the ipo of aramco? what will light it on fire? ali: the inclusion of saudi arabia into the em index is a game changer, not only for sau di, but it will change the landscape of the equity markets in the region. and i think the big change would be if you look at saudi arabia, whatever way it comes, you need to make a some shows on the ipo and so forth, but at about 2% -- and thatut 6% weight, is when you begin to see the region claiming a permanent allocation or permit part in a global or em portfolio as opposed to being a traitor. this region has always been relative to em, but now they will be par

what is the uae position, are you prepared to do whatever it takes to get an agreement?we need to talk about organization, not individual countries. whatever the organization is seeing, that this is the best for the markets, you will find us all supporting that decision. and we have been there marketing the stabilization from the beginning and i do not see it as a problem to do what it takes to create the market stability. .> i want to take you forward let's say we get an agreement and go forward to march of next year, 2018, the federal reserve had to give its strategy and the markets are demanding the ecb give us an exit strategy, or opec, if we extend to march of next year, your excellency, what happens, open the gates, what happens? what will be exit strategy the in march of next year? ,> i will give you analysis on first of all, will we discuss in a strategy in this meeting? i doubt it, it is premature as we need to get the market more time. there are fundamentals in the market. if you do not spend more on investments, you will not sustain your production. your produ

the uae telecoms the giant has big one, the big one for the region has to be oil prices. arabian energy minister saying opec will agree on a nether production cut agreement when it meets in the im vienna. benchmark will be the focus given the competition between opec and shale production. you said rouhani has managed this victory but now comes the hard part, yes the night a divided nation and convince everyone of the importance of opening up to the world. how is he planning on doing? >> yes a lot of ambitions. -- fact that 57% tracey: looks like we lost yousef in tehran. ceo of fimack to the partners. we were discussing in the previous segment about saudi arabia and the relation with the u.s.. looks like improving relations with the u.s. how do you suggest investors try to monetize what is going on there in terms of geopolitics? >> >> the current situation is improving as the closer ties with the u.s. makes it a market that will be much more stable and the perception of saudi within the region will mean it is safe for investment. in terms of how we can monetize it today,

there were no surprises as the uae's al ahli topped group a on goal difference after they thrashed lokomotiveghlal secure second spot and advance to the last 16. group b also panned out as expected, with qatar stars league champions lekhwiya emerging as the top team after a 4—1 victory over saudi arabia's al fateh. confirmation that japanese side kawasaki frontale finish top of group after they beat eastern sports club 4—0. south korea'sjeju united made sure of second spot in group h when they beat gamba osaka 2—0. hedvig lindahl made a name for herself at last year's olympics in rio. her penalty saves in the quarter—final win over the united states and the semi—final victory against brazil earned her recognition outside of the women's football world. she's a nominee for this year's bbc women's footballer of the year award. here's her story. i feel honoured to be chosen as one of five in the world. just let that sink in. five in the world. today, i would say she is the best. she cares a lot and she is working really hard for a lot of social important things in society. she asks so many quest

the united states and the uae recently conducted, concluded a defense cooperation agreement that will allow us to work closely together to address common security threats. the president hopes to work together even more closely to resolve regional conflicts that raced across the region for too long. this is the president and his highness first meeting and have a lot to discuss including bilateral trade and investment as well as regional security issues. at the conclusion of the meeting we will make sure to have a readout. later this afternoon the vice president will swear in robert lighthizer as interstate trade representative. ambassador leite heiser spent decades working advised levels of american trade policy including as debbie is trade rep is that under president reagan. the price it an unquestionably qualified individual in place as a fight for better trade deals that will put the american worker first. and now that he's officially onboard this afternoon, ambassador is constrained to work. tomorrow he will have a series of meetings on capitol hill at a thursday will travel to vie

a little bit of a cut in the uae , little bit in kuwait. they met the opec quota.igeria is going nowhere, iraq is going nowhere, iran is probably going down. maybe it may have been uncertain pop up. -- libya may have an uncertain pop up. and venezuela has been losing 25,000 to 30,000 barrels a day. if you add up the expected demand and supply there is an inventory. vonnie: that was ed morse. coming up, ibm. or warren buffett reveals he reduced his stake. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. warren buffett gave berkshire hathaway investors something to talk about at the annual meeting this weekend at has he has sold about one third of berkshire's investment in ibm. isning us with more bloomberg editor-at-large cory johnson. how has he done with his ibm investment -- not that he ever really lets at returns, right, because he typically holds something ever. but not this case. cory: this was a stock trade that did not work out for him. he talked about it glowingly in the annual letter every year. we can see the holders in berkshi

he's the crown prince of abdab by which is the capital of uae. he's next in the throne in the uae. "the washington post" reports and pictures confirm that mbz met multiple times with vladimir putin. he flew to the united states in december without notifying the obama administration. that's weird because national leaders would usually notify the u.s. government when they were coming in to this country for any reason. but in derks he flew into new york without telling the obama administration, without telling the u.s. government that he was coming. they later figured out he was here because his name turned up on a manifest. what he was coming to new york for was to take a meeting with mike flynn, steve bannon and jared kushner. he met with them in december and then the following month in january, he set up and hosted these two days of meetings between erik prince and a russian emissariry who was there on behalf of vladimir putin. that was the host of the organizer of that meeting, the crown prince of abdab by, better known as m b zblnchts guess where he turned up today. >> great hono

. >> it's going to give us name value in places in dubai, the uae, the middle east, and really all throughout the world. and we really see this as a catalyst for growth, because when businesses from all these countries come by, when they see our capabilities here, they're going to realize we can take care of their logistics needs. >> 180 countries are expected to participate in the expo which will attract millions of visitors. >>> and ups isn't the only package delivery company inking some partnerships. fedex is extending its sponsorship of the pga tour for another ten years, at a time when the sport has hit a bit of a rough patch. dominic chu reports from florida. >> reporter: one of america's biggest companies is making a big bet on the popularity of golf. shipping and transportation giant fedex just announced a deal to continue sponsoring the pga fedexcup playoffs for another ten years. fedex thinks any money is money well spent. >> it's a great deal for our employees. it's a great deal for our shareholders. and it's a great deal for our customers. it allianigns very much with ou social re

he is meeting with saudi arabia, kuwait, qatar, uae, these are american allies who on some level wanta stronger role from america. actually, we have no issue how america has handled israel, probably want to see them push back on an iran deal. everything that trump is trying to do. if i think of saudi arabia, he is trying to transition to a reformed economy. there is a massive firm set up for investment. a lot of deals to be cut. people are following the president over. this to me is the best thing he can be doing right now. >> i like this trip. >> a lot of things are going over there. boeing, lockheed. >> i don't agree. i don't think it's a tremendous rick to him. i think this other stuff is noise in the market, finishing flat basically on the week tells us it wasn't of major concern for him yet. >> right. all this political uncertainty has been good. bitcoins the digital currency soared to a record high today. let's go off the charts with b.k. to see the move. >> i don't talk about it often since the incident in 1979. we'll come back to that later. let's talk about bitcoin and what y

there are centers in the uaes that are doing work around the messaging. saudi arabia is a very important player in all of this because here the president is talking about a $fowrd billion economic -- $400 billion deal that he was delivering to saudi arabia and offering americans the opportunity to say that we are going to get jobs from that. but what i would like the president to also do is offer a deal to america and that means using his influence to make sure that saudi arabia doesn't insight hate around the world. and he could have offered that in a way that was more clear in this speech. so these centers that talk about financing, these centers that talk about messaging, are hollow, if there's no -- there are no teeth behind what is actually being said. >> we didn't hear a lot about human rights. there was a brief nod to women. why do you think these ideas were absent? >> i think that the audience in america is probably very shocked to see so little about democracy and freedom and human rights from this president. and i think for muslim communities ar

the united states and the uae recently concluded a defense cooperation agreement that will allow us to work more closely together to address common security threats. the president hopes to work together even more closely to resolve regional conflicts that raged across the region for too long. this is the president and his highness' first meeting. they have a lot to discuss including bilateral trade and investment as well as regional security issues. at the conclusion of the meeting, we will make sure to have a readout. later this afternoon the vice president will swear in robert lighthizer as the united states trade representative. the ambassador has spent decades working at the highest levels of american trade policy including as deputy u.s. trade representative under president reagan. the president is glad to finally have an unquestionably qualified individual in place as we fight for better trade deals that will put the american worker first. and now that he's officially onboard this afternoon, ambassador lighthizer is getting straight to work. tomorrow he will have a series of meet

. >> i think have seen the uae. we of same banks and corporate's tapping into the markets.hat is something to have been doing for some time. it is not a new thing for them. if you go to kuwait, i think it is a similar story. other one of the barriers was develop and that should progress them across the board. a egypt's inflation has had 30 year high, sitting at 1.5%. they are putting more pressure on the government as the tackle more politically sensitive economic reform. we are joined by john paul. >> let's kick off with the inflation part of the story. ultimately, as if it is coming out on friday. we build a chart to show what is happening with inflation. our viewers are inclined to pull it up on the bloomberg. panel, that is year-over-year inflation. the central bank is not an a difficult spot, the inflation has been moderated. are in a think they difficult spot in terms of monetary policy, you are reading all of this report and saying that the imf is pressuring them to raise interest rates because of the high inflation we have seen. egypt's inflation figures is being dr

that's happening in the war on yes, ma'am b where saudi arabia and the uae are working very closely together. .america can play a very important coordinating role because america has strong ties and operational ties with everybody. and it can bring, you know, the operational pieces together very effectively. the so i think the fact that the president has shown a lot of interest in that and general mattis as a former head of the central command. so he has an intimate knowledge of the issues there. i think america can make a difference and make that sort of bilateral effort to fight terrorism in yemen and in the rest of the arab world much more effective. so i think there's something substantive there. i wouldn't diminish the talk about, you know, putting together a group to fight terrorism in the region with american involved because i think it's come a long way in the last couple of years and i think america can make a difference and this administration has shown that it wants to make a difference at that. >> ali, you had mentioned earlier there is mistrust within the arab nations and we are

the united states and the uae recently concluded a defense cooperation agreement that will allow us to work closely together to address common security threats. the president helps to work together more closely to resolve regional conflicts. this is the president and his highnesses first meeting. they have a lot to discuss and clinton bilateral trade and investment and regional security issues. at the conclusion of the meeting will have a readout. later this afternoon, the vice president will swear robert light heiser as the united states trade representative. the investor has spent decades working at the highest levels of american trade policy including his deputy u.s. trade under president reagan. the president is happy to have a qualified individual in place as we fight for better trade deal that will put the american worker first. now that he's officially on board this afternoon, besser light heiser's getting to work. tomorrow will be series of meetings on capitol hill and on thursday he will travel to vietnam for meetings. with his swearing-in after historic show of obstructionism

what we did get was a coalescing of thinking from uae, saudi arabia, and the russians.hey are all prepared to do more and that is the message that the market possibly do not get. your not going to get to april next year. you are not going to have 1.8 million barrels dumped back on the market. that would take us back in time to 2014. that would take us back down a miserable road. opec and non-opec have a whole variety of issues on why they don't want to go back there. venezuela is fighting to feed themselves. qatar has the pay for the 2022 world cup. exit strategy -- they will review. that is the message that came out. vonnie: we would let to stay with you in the and all day, but unfortunately we have to leave it there. that is manus cranny covering the opec meeting. if you want to be that gadfly story he was referencing, check out the bloomberg. mark: sterling falling today and theresa may's party losing ground in the race less than two weeks away. joining us now is bloomberg london bureau chief is emma ross thomas. time. about squeaky bum this is not rude or not he in

if we can get moderate space, if we can get whether it's bahrain, the uae, jordan, egypt, saudi arabia to fight the common enemy and believe in us again, we all benefit it's a realignment of the middle east. ann: i think that's right. it's not this nato or the u.n. going in. it's the united states dealing with the arab countries again as separate sovereign nations and we'll have their back. but they should be the ones fighting the enemies in the their backyard like we should be fighting the enemies in our backyard which brings us back to the wall. what do you think of the fact that the president has taken melania, the appearance of a family going there. we haven't seen that much of melania. a significant message? ann: i'm not sure i like melania. i think she makes a great first lady. i'm glad she is not involved in policy like a few first ladies i could name. judge jeanine: that's your answer? ann: hillary clinton. judge jeanine: let's talk about the statement you made while you still have hope in the trump presidency, you are ready to jump ship. ann: not exactly. liberals have not got

there has been some lack of compliance from some such as the iraqis and uae, but they have had 102% compliance in the most recent period. so they think in the heavy demand period of the latter part of q2 and 3q and 4q. there are three big x factors. one, will compliance wane. two, will shale fill the gap. three, what will happen to demand? >> let's pick up these points with the head of commodities research from bank of america merrill lynch. let's pick up on compliance. if oil prices do move higher on the back of this nine-month extension, at what point do you think non-opec producers, like russia for example, drop off when it comes to compliance? >> it's true what steve said. compliance has been surprisingly strong. we have never seen an opec deal with such strong commitment, real commitment. the interesting thing is the market this time around doesn't want to listen to opec anymore. opec completely lost grip on the market in terms of rhetoric. they want to see action. it is true the actions have been positive. we do believe the market will go into a steep deficit especially in the third quar

. >> so you're bullish on egypt and bullish on the uae, abu dhabi in particular. where is the challenge coming from in the real estate sector? what's a tough sell. >> i think maybe i'm bullish in terms of our market because i know what we're doing and in terms of a research plat formfoe are trying to understand the trends, future trends. we look at the strategies taken by geniuses like elon musk of tesla, we believe in that way. so we have that research platform that we believe is going to enable us to be successful in the region. >> we have to leave it there. carolyn, back to you. >> thank you very much. >>> brussels has reportedly raised the brexit divorce bill to around 100 billion euros. yes. according to the financial times, eu leaders revised their calculations and are demanding more money from the uk to leave the union and cover up-front liabilities. the demand is driven by the germans and the french and is up from a previously suggested charge of 60 billion euros. so as some of you may or may not know, divorces can get messy. it's usually about who gets th

go further, especially when compliance has been shaky at best from the likes of the iraqis and the uae period of six months. those two countries only had about 60% compliance rates, even though the total compliance has been good. opec has been successful in getting a lot of countries on board, but have they got the price up? that answer is no, not really. libya and nigeria have had product shion increases. >> we have the head of strategy of europe from wisdom tree. steve made the point that nine months should really be the extension or else it won't make a difference. what else needs to happen from oil prices to get the prices up? >> they need a stronger message and they need to make sure they're adhering to the production cuts. getting a strong message out about where they want to see production, making sure they stick to those figures. take nothing account the countries like nigeria or libya. >> how important is it in this context of the hope for higher oil prices to give enough time to speculate to the investment community. they were crucial when it came to building up the long posi

rate is going to drop, but with the governments are doing very well are diversifying, so you take the uae-year's ago, it was 40%. saudi as well. them introducing taxation, doing the things necessary to balance the budget and keep on the growth coming. tracy: if we assume gulf countries, gulf markets are become really an investment destination thanks to this evolution, this opening up, where do you see the biggest opportunities, and could you start new funds to take advantage of the opportunities? karim: a huge opportunity today in the gulf as a consumer. we have the youngest population in the world and a very high gdp per capita. these consumers are spending a lot of money, so we follow the consumer. anything that has to do with food, health care, education, these are very exciting sectors. e-commerce. early days. we have the highest penetration in the world, very high internet penetration, social media adoption, yet e-commerce is one of the lowest in the world. i think e-commerce account to only 0.7% of gdp versus 3% for global outreach. there is going to be an explosion in e-commerce an

have laptops would not be allowed on flights from 10 airports including those in the uae, saudi arabia turkey because of fears they could be used to hide a bomb. global news 24 hours a day, powered by more than 2600 journalists and analysts in over 120 countries. this is bloomberg. david: we want to recap some of the headlines out of nbc's headlines with resident -- with president trump. he said regardless of the recommendation he got, he was going to fire james comey. he said the james comey told him personally he was not under investigation and that i know that i'm not -- i am not under investigation, personally. reaction toto get his decision to fire fbi director james comey. walter isaacson gave his take. he is the president of the aspen institute. walter: donald trump is a disruptor, meaning he is just going to even with his staff not fully focusing on it, just fire people and do various things without thinking through the consequences. to fire comey in the middle of a russian investigation and invite russian photographers in when you meet with the russian foreign minister's and p

decided those airplanes would not be allowed from the uae and turkey. prospect of a lower return. that is according to kkr. fall from 9.3% to 5.3%, historically. they are finding new ways to seeess that if they want to indices in the next five years. trump says he may release his tax returns but not until he is out of office. in it and to be economist, the president says no one cares about his tax returns except for reporters but he may make them public because they showed the -- they show he did a good job. global news, 24 hours a day. powered by our more than 2600 journalists and analysts, in more than 120 countries. i am taylor riggs. this is bloomberg. a guy: 28 minutes until the bank of england releases its latest decision on interest rates. we do have a busy morning. we get a super -- we get a press conference from mark carney. the number of dissenters will be part of the conversation. the mathematics are little bit different this time around. i'd they? -- around. arnot aren't they? ra: the inflation forecast is expected to be raised. the market a

saudis wrote the memo and passed it to the uae and translated it into russian.sage. there is an aspect that we will get a little variance in the market at the moment. you have to look through the eye of the storm. i had briefings from other ministers who did not manage to make it onto camera, they said it is about creating homoginaity. it is all about the exports of the usa. francine: the one thing people are concerned about is if you have saudi arabia and russia, how long will it hold? we don't know if they will be this friendly eight or nine months from now. manus: a symbiotic relationship that is mutually self-serving usually lasts a long time. 2004 whenime was there was a fracturing of that relationship. agot a sense that this is mutual interest. they will formalize their relationship. this was the language that novak they will have a much more formal relationship. you have the issue of shale. manus cranny, thank you so much, in vienna. have three interviews telling me that vienna doesn't matter. when does oil matter for opec? when do we have to get to the p

they took $25 million from saudi arabia, i believe in the uae. million, imagine brian fallon announcementing to the senior -- >> i agree that the double standard is there, and it is what it is. i like the fact that the president went to saudi arabia, i like the fact that the president stood up there and laid out very much late in his speech, the changes that meet to happen to create more opportunity for women and for might have been norths, for other faiths. he laid that out very, very clearly. to me that's a positive thing. could he and should he have been tougher? yes, but he wasn't and i'll take what i can get. >> the speech was very measured, very careful. he said we're going to fight the financing, everybody with applaud to that, but is he going to tell saudi arabia stop funding mofund ing mosques around the world. start funding education? he tips his hat to the cultural and the historic piece of the world that we're looking at, yet he doesn't say anything about saudi's destroying cultural heritage sites around the world. so there was a mism

of course, countries like saudi arabia and the uae have long opposed israel and in support of the palestiniansflict here. but in recent years, israel and these gulf arab states have begun to share intelligence information about iran, particularly in places like yemen and syria, much of it came about as iran was gaining a foothold in syria and as the obama administration was pursuing the nuclear talks, this angered sunni arab countries and obviously israel as well. sunni arab states are now proposing better relations with israel and prime minister benjamin netanyahu will make a significant effort to restart the middle east peace process. one of the things that they are potentially offering is a new relationship and a willingness to allow israel to use sunni arab airspace if they were to launch air strikes on iran's nuclear facilities. but it should be pointed out that as this growing relationship is starting to develop, it is still a very frosty relationship. the government here in israel and across the middle east, they do not really talk about this publicly, certainly do not in their own nati

the foreign minister from the uae and saudi arabia, salman and al jubeir talking about terrorism onlineon twitter. i think it has entirely been reset, the u.s. saudi relationship at this event here has been dealing with the efforts on social media to fight terrorism around the world and it's been going on for about five hours. i started several panels dealing with this. it has been interesting to see the reaction to the president's speech because obviously it was forceful and strong, but most importantly to the saudi it was a refocus, geopolitical switch in the u.s. thought about a man and while they are talking about writing extremism and signing agreements to do that and if that machine a bigger military cooperation with funding from a $350 billion in purchases the next 10 years, a different u.s. when it comes to a grand push the president mentioned in his speech today is all the difference to them. leland: certainly seems as though when we listen to what the saudi foreign minister yesterday that the focus on iran is a very, very welcome change. keeping on this forum and the folks tal

we'll see what's in the lang uae later on. what are we expegting? is there a risk in anything?think the fed is on the periphery of the dialogue. i think the real center is on trumpo nomics and the fed will likely at some point substitute balance sheet reduction for fed tightenin tightenings. i think yellen prior to her exit will want to start to norm aliz and start reducing the balance sheet. >>> coming up, a trade update on john's bet and the energy stock options traders think is ready for a pop. double dose of unusual activity is just ahead. >>> doc, you told us about the activity just ahead of the earnings. call buying, right? earnings were good. >> call buying, buying them yesterday, judge, just ahead of the earnings. i liked ed the way he pronounce it. mondelez, the voice over guy. very significant pop this morning. $2, so the calls when they were at 40 cents went to about 60, 70 cents on the highs today. i put on this 45, 47 call spread even though they were buying i think 46s yesterday and took it off this morning, rang the register. i've moved on after this one. >> you

and the other countries like the uae and the gulf that have worked very closely with america.having assumed responsibilities of office and come to realize that and recognize that, which i think is very brave for him to have come outnd made this gesture. i think it's preciated. >> all right. we'll see. ali shihabi, thank you for your time. appreciate it. >> thank you. >> we'll be right back. >>> i think the shock to the body is now considered a criminal investigation. and congress' ability to conduct veinvestigations of all things russia has been severely limited. probably in an appropriate fashion. >> that was senator lindsey graham on the russia investigation, which is now in hands of a special counsel. robert muller. joining me now, a former federal prosecutor and attorney in california. thank you so much for your time today on a saturday. >> you're welcome. how's it going? >> not bad. tell me about the powers of special counsel. how do things change you? >> well, this is not the same independent counsel statute you may remember ken starr's white water investigation, so, mul

not including saudi arabia or the uae by the way.ve been fairly supportive of those kinds of bans on the basis that immigrants from those countries are not properly vetted by the local authorities. so i think there's some nuance here to it. but clearly, president trump was trying to make it clear that he is not against all muslims and hopefully by implication not against the immigration of muslims from other states as well. >> all right. thank you so much, mr. ambassador. both of you on your reflections. >>> still time to answer the first pulse question. agree or disagree, president trump's islam speech will inspire muslims to unite against extremism? >>> up next, a new provocation from north korea. the response that it brought from the white house. before fibromyalgia, i was a doer. i was active. then the chronic, widespread pain drained my energy. my doctor said moving more helps ease fibromyalgia pain. she also prescribed lyrica. fibromyalgia is thought to be the result of overactive nerves. lyrica is believed to calm these nerves

there was just a package announced for the uae. he wants to really not just the sunni arrabs, but the rest of the islamic world against terrorism. he's going to be going to all the marria the major religions making the argument that we're all in this together. we need to fight terrorism as one civilized world. and then i think he wants to try and get some transaction on restarting the peace process. you're not going to see those kind of formal talks just yet, but you saw he's met with prime minister netanyahu. welcomed the president to the white house. his aides have been out there. i think he wants to see if there is some momentum. he's really going to get a big education when he goes to bethlehem and sees, you know, all of this from the palestinian side. he's really only seen this from his whole life through the israeli lens. he's going to see the conflict up close. i think he's going to see what it really means to try and negotiate the ultimate deal. he said he doesn't think it's that hard. he's really in for an education. >> he

and that axis of good is functional and composed of saudi arabia, the uae, egypt, jordan and the israelisraelisguys very much. have a good weekend. coming up for us, will james comey testify in public? that is the $64,000 question. soon it is the house's turn for a briefing on the former fbi direct director's firing. we will talk to a congressman who will be in the room for that. stay with us. ♪ you might not ever just stand there, looking at it. you may never even sit in the back seat. yeah, but maybe you should. ♪ (laughter) ♪ time's up, insufficient we're on prenatal care.es. and administrative paperwork... your days of drowning people are numbered. same goes for you, budget overruns. and rising costs, wipe that smile off your face. we're coming for you, too. for those who won't rest until the world is healthier, neither will we. optum. how well gets done. a lower a1c is a lot witabout choices.tes but it can be hard sometimes, 'cause different sides of you struggle with which ones to make. well, what if you kept making good ones? then? you could love your numbers. discover once-daily invokan