manus: we're waiting for moody's and s&p to come out. that is the focus.mportant is this rating they suggestm back be lowering the local debt. calls.rs desperately bearish calls. -- pretty bearish calls. approaching got it 50. in bit of it is in the price. emerging-market bond investors are not usually that trouble about a junk rating so s&p so we take the morse -- the key one is moody's. that soof sawtek and that would be a specific so the issue is, it was a member of the fragile five. there is no growth. for an emerging market economy, very low growth indeed. may the currency needs to the weaker to compensate. anna: the debt investors -- what do you mean? they sort of already prepared themselves to take the risk to the brush it off. alan: the tim: emerging-market, stressing bond investor, they buy everything they can disinvesting from venezuela come all the way to test the. south korea which is amazingly some people consider an emerging market. there's a wide range. the rating itself is less important and it is much more important for investment grade an

moody's is quite significant, as well as the s&p, with the world bond index.ake south africa out of those -- or take south africa out of investment grade on the local currency, which makes up around 90% of south africa's outflows, we're likely to see 100 billion rand in outflows. how does this affect south african politics? arabile: this will be a key -- a to be discussed will stu key issue to be discussed. they ask, how do we prop up the economy, an economy that is said to grow only 0.7%, according to the reserve bank, who also highlighted yesterday the key risks to south africa. the midterm budget just does not do enough. it is going to be a very critical factor. of course, the rand itself will play a key part. where it goes to from here will be quite significant. guy: arible gumede, joining us on the ratings story out of south africa. i could draw a line between what happens in south africa, the current i account deficit and turkey. we have just seen a record low from the turkish point of view, 4.6782. we have got an exclusive interview coming up with the f

after the s&p , it was the knee-jerk the reason for that at -- is in order to be a constituent of the world economic -- south africa needs investment rating on its local currency either from moody'ss&p. the concern was to lose both of those ratings so the moody's reprieve means they won't be forced to set of south african bonds and you will see massive outflows from the country. vonnie: is there anything about the succession race that might change that? rand, ifthink for the the leadership election with the ruling party which is happening in mid-december, think the market sees that as a contest between one candidate who is seen as a pro market candidate against one who is the candidate to leave the party. ingles -- it will be seen as a continuation of the party. up fromities open reformists in the party and the .overnment that could be seen as rand positive. vonnie: how liquid are these markets? who are the major players or how many major players are there? priya: one of the reasons -- robert: one of the reasons why the rand is such a volatile currency is the emerging markets. investors are willing to take on those risks because they know they can easily trade out of them. if sou

s&p. moody's gave a warning, but we might see more of a reaction later monday.racy: we're going to be talking about that later on in the show. you have lots of e.m. stuff together. >> definitely. let us look at the first word headlines from around the world picking up with abu dhabi. they may raise as much as $2 billion from an initial public offering. that is according to people with knowledge of the matter. they say the company will price the ipo in a range to two spot 35 22 spot 95. . they valued at between eight and nine. tracy: speaking of oil, markets are gearing up for thursday's crucial oil meeting in vienna. bloomberg learns that opec and russia have crafted an outline of a deal to extend the production cut to the end of next year, although both sides are still hammering out the details. moscow is said to want the extension to include new language that was linked to the side of the curve to the health of the oil market. >> pakistan has called in the army to patrol in the capital city. authorities say the military deployment is a preventative measure aft

s, the observatory was obsolete. and so what happened then was the actual, the family, the descendents of captain moody, who still owned the observatory, gave the observatory to portland as an historic site him as a tourist destination. and then it went through a major renovation in the 1930's in the works progress administration, and very recently there was a partnership with major important landmarks in portland in the late 1990's to also completely restore the building so that it can continue to be a center of historic significance in the city of portland. i think the portland observatory gives people a sense of what portland is about, which is that it is a seaport. it is very important, it's relationship with maritime chester tatian and land transportation that happened here. it is evidenced through the portland observatory because this was the main ship to shore to medication. it still has that role today. you can see this building from water from various sites over time, so it is a reminder that portland has a long and interesting history and you can experience it by coming to the observatory. >> today we are in

not getting the upgrade out of s&p following the move from moody's.hing closely when markets open up. we are on a seven-day run their on the sensex index. >> a nervous start to the then recovered and ended flat on most major indices in china. the index still up 24% year to date. goldman sachs favors china, india, as well as korea and have raised their 12 month target for -japan, alsocific ex upgrades on msci china. with chiefe on this asia-pacific strategist. is it too late to join the party? dancestill think we can farther. >> what is driving this?great earnings and then the underpinning of global growth as well? >> to a large degree, yes. the best of the party is behind this, but we think we have credible gains for 2018. of index is up 32% as friday, and we think we have to in u.s. dollar4% total return terms, including yield. to pick up on your point, earnings. we have a terrific global growth environment which we are operating in right now. indicatort activity is running close to 5%. that make moderate a little bit, but will stay strong. about 14%

s&p global ratings. service alsotor threatened to slash the rankings to the same level, risking a selloff. moody'sed to keep the their lowest grade, both of them on review for the of possible downgrade. iraq has set up plans to return to the global bond markets next year to raise $2 billion. the central bank governor made the comments in an exclusive interview with bloomberg. there is the 2018 budget, 2.2 $2 billion? >> $2 billion. juliette: global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thanks very much indeed. just mentioning what happened in south africa on friday. we are beginning to see a reaction in south africa. let's get more on the downgrade. have a credit analyst from s&p and he joins us on the phone. thank you for your time. why didn't you wait for the conference coming up? i didn't you wait for the budget before making this decision? watching theen fiscal and the growth story and south africa really deteriorate for quite a while, and having looked at the latest numbers, it was clear it was hard for them to

into friday, gains the s&p did not upgrade following what moody's did.e disappointed they did not get that upgrade. snapshot of your broader picture across the asia-pacific. have a look at the china currency. right, h aside to give you a sense of how things are moving in the market basically split in .etween 212 ine a look at this picture shanghai. most were actually down. not surprise, look at ppi. we will talk about that more in a moment. here is the split in shanghai. a better way to look at it is function. telcos down 1.7%. samsung pulling down everything in korea. our charts today, bitcoin. this is bitcoin against the world's best performing stocks, no match. that coin over 900%. 1360.art is rishaad: we will look at bitcoin in the second. breaking news, industrial profits in china. an idea of what is happening with nominal gdp. industrial profits up 23.3% year on year. we had a 27% gain in the previous month as well. to october,ary industrial profits up 23.3%. in october, companies profit rose 25.1%. news.get it to first word goldman sachs is wa

s&p 500 right now. the move is giving a lift to competitors like autozone and h o'ly >> i got a da vince. [ laughter ] >> moodyt out minutes ago with a new report detailing the state of automobile finance and the industry looking increasingly trouble as loser loan standards the last couple of years mixing in the auto joining us to break down the numbers and first on cnbc, will black, to author of the report release publicly two-minute ago, will, thank you very much for joining us on short notice >> my pleasure >> how big is the syndicated and structure finance market for the automobile industry? >> well, the autoindustry is about $1.1 trillion large, worth of auto loans outstanding today, that's the biggest it has ever been and the volume that is financed through the security market is approximately 14%. that's down from about 20% prior to the credit crisis so the rule of securitization has decreased some what but still quite important and it is more important for some in the industry than others >> you see we are still talking about roughly $150 billion that's syndicated out there. when i am looking at the re