i am tracy alloway in hong kong.tives countries will gather in paris on sunday for the latest round of middle east peace talks. benjamin yet now you is boycotting -- benjamin netanyahu is boycotting the conference. he is concerned in the decision will be rushed to the yuan security council -- to the united nations security council will be rushed through before trump takes office. yousef: egypt has cut its 017.cast for 2 economic growth is expected to remain muted. rose to 26% in december, the highest in 12 years. the central bank abandoned currency controls. governmentturkish kept up the pressure on the central bank. rate increases should not be policymakers first choice. the central bank finally gained traction in its efforts to prop up the currency. the currency surged in more than a year. banks were expected to borrow at 10%. has posted its biggest weekly decline as traders await proof. joining us now is our energy markets reporter. anthony, let's start with the main story. what is sowing doubts in the markets min

i am tracy alloway.sef: and im yousef gamal el-din, life from dubai. -- and i am yousef gamal el-din. tracy: i am so excited about turkey. yousef: go ahead, it's all yours. tracy: turkey's prime minister told francine lacqua what action the country is using to shore up the currency. >> it is a concern, even though we don't have a level target. are not indifferent to what is happening. we are taking measures to see if we could stabilize because volatilitye reason has been excessive, so we are watching very closely. how much impact does this have on the turkish corporate sector, but also your fx positions question mark >> it is sizable, but the short-term only $1.5 million. much of the corporate's will have x -- who have fx debt have exporters, and so some of it we have financial hedging. , we are looking at the corporate sector exposure and we are thinking about nonconfrontational measures going forward. consumers fromd consumers-- banned from borrowing in fx. that was a great decision. i think india has

i'm tracy alloway.ousef: we saw that record again in the yuan. here are the numbers as they came in. the line and white, that is your expectation.re in was in mind, $3 trillion the key level we were looking at. that is your line in red there. anything below that would have led to more capital outflows, and the consensus was policymakers would move to make go below they did not that redline. also highlighted in blue, that is your spread between onshore and offshore, which again, as you can see, take a look at that pop we saw last week. that, of course, is the focus on the global investment themes we discussed. tracy: i love this choice, because some a yousef, so far this year the chinese money markets have been then the story -- have been the story of 2017. yousef: we're looking at the u.s. economic data. talk us through the u.s. close, the market reaction. tracy: sure. we saw some fireworks friday. we have that jobs report. that propelled all of the big major indexes higher. the big stories, the dow jon

tracy alloway reporting from abu dhabi.d over to india, the country now expects growth to slow to a three-year low in the 12 months through march, expanding at 7.1%, down from 7.7% may be the crackdown on notes.nomination rupee do we know the impact of the cash ban on the economy? >> know, we don't. that is the problem. the latest data for the full , against year, 7.1% 7.7% earlier. lower than the last financial year. this does not however capture the impact of the de-monetization drive announced in december. to put this into context, prime minister modi announced the withdrawal of 500 and 1000 rupee notes, 86% of cash in circulation out of the system. the stated objective was to squeeze out fake currency, counterfeit notes, out of the the system to make more accountable and pull out black money. we do not know what the impact will be, but has resulted whether measures have been successful or not. ande have been job losses has impacted the economy, not to , soion the inconvenience long story short, the impact of the move ha

thank you for your patience, tracy alloway. up next, pound under pressure.ignals immigration control in her brexit priority. we will discuss that next. this is bloomberg. ♪ guy: london has a lot to deal with this morning, one of which is a strike, the other of which is a weaker sterling. theresa may has signaled she wants to gain control of integration and lawmaking, even if it means leaving the single market. the comments came in an interview, and analysts put the pound under pressure. sterling has weakened against the dollar for a second day. let's talk about this in detail. we're joined now from singapore. i have a chart up, the last few sections. you can see the 1.22 touches. what is going on here? what is moving the story? >> well, it's getting to look a bit like another winter of discontent for the u.k., for people with long memories. it's a terrible start to the year, and obviously theresa may wasn't too convincing in her tv interview. people are very concerned that hard brexit is back on the table, and at the same time you have industrial action goin

tracy alloway on the em fx pain trade. stay with us. up next is "surveillance."allo is going to be joining us. i'm going to deliver digital radio. this is bloomberg. ♪ francine: trumps lump. the president's first few days in office show little deals on plans. the u.k. prime minister will become the first european leader to visit president trump as she heads to washington on friday. how special will the relationship be? and socialist showdown. -- the party presidential candidate. does this change the electoral map in france? good morning, everyone. i'm francine lacqua in london. we have a great show for you. first things

it's crossed from wilmington now right over pilesgrove and alloway township. another area right at the long beach island now just north of ship bottom. toward barnegat light getting some heavier snow and there's more. this is coming tomorrow. that's what we're watching now along with the temperatures tonight. see if there are any icy spots. more on that snow and more perhaps for next weekend coming up. >> a delaware county school will be closed until at least friday after a boiler exploded this morning. around 7:00 this morning. >> the boiler explosion led to a gas leak and the building lost heat. there were no students inside at the time and no one was hurt. >> pennsylvania governor tom wolf says he's streamlining state government by combining four agencies into one. today the government announced the departments of ageing, health, drug and alcohol and human services will now be one department. golf wolf says this change will not lead to any program cuts and will deliver better service. this as the state faces a budget gap. the governor will release his budge

tracy alloway, thank you so much for joining us from abu dhabi on reaction.ravel ban was not the only news trump made over the weekend. he had his first formal phone call with russian president vladimir putin. gregory white joins us from moscow. greg, given all of trump's positive comments about putin over the campaign and the controversy over alleged russian hacking of the dnc, there was a lot of anticipation for this call. what do we know so far about how it went down? gregory: we don't have an awful a lot of detail about it. we have a short statement from the white house about what went on. rundown that the kremlin gave on saturday. the talk lasted about 45 minutes to one hour. both sides said the tone was very positive and they talks about a range of international issues and highlighted the importance of cooperating and fighting terrorism and the islamic state. those have been big themes for the kremlin going in. economic of cooperation seems to come up according to the kremlin statement that we don't have a whole lot of detail on that. we thank you. than

for more on the rally and how long it might go on for, let's go to tracy alloway in abu dhabi.e gains? that is right. i don't know about you, but if someone asked me what the best would be thisdex year, i wouldn't have thought about the kuwait stock exchange index. but here we are. what seems to have happened is, we had a perfect confluence of the area's factors and events that have combined to create a really positive environment for kuwaiti assets. one of those things is rising oil prices. that is more generally the case for the gulf. on the other hand, if you look at what saudi arabia and the uae are doing to make their markets more attractive, reducing trading cost, standardizing settlement times, reforming markets, you could think that kuwait will begin to do a similar thing this year. you also have the kuwaiti investment authority prominent saying -- promising to buy equities, and pakistan was one of the best performance stock last year. it will boost itself to emerging markets status, which leaves a big hole in front tier markets that kuwait could take advantage of. a la

for more on the rally and how long it might go on for, let's go to tracy alloway in abu dhabi .ving these gains? >> that's right. i don't know about you, but if someone asked me the best-performing stock market index, i would not have thought about the kuwait stock index, and yet here we are. have happen is this perfect confluence of factors events that have combined to create a positive environment for kuwaiti assets. one is the rising oil price, more generally the case for the gulf. on the other hand, if you look uaehat saudi arabia and the are doing, you could think away may begin to do a similar thing this year. you also have the kuwaiti investment authority, the sovereign wealth on promising to buy domestic equities. pakistan, one of the best-performing stock exchanges last year, boosting itself to emerging market status this year, and that leaves a hole in front tier markets that kuwait could fill, so a laundry list of things pushing up kuwaiti equities right now. yousef: i'm looking at some of these by you way should and's, and it is reminiscent of the moroccan stock mark

let's bring in tracy alloway with the middle east reaction to trumps travel ban.e know the travel ban applying to seven nations, for dominantly muslim nations. tracy: that's right. reaction weeresting have had from the middle east overnight is probably what has been coming out of iraq, iraqis parliament members urging the government to create a reciprocal and on u.s. citizens getting visas for the country. measure, butnding indicative of the emotions and controversy stirred up by trumps executive order last week. speaking of which, the other interesting thing overnight was one of trump's aides telling bloomberg television that saudi arabia could be under consideration for the travel ban to be included on that list of seven predominantly muslim nations. i don't need to tell you that if saudi arabia were included in that executive order, that has the potential to redraw the regions political lines and alienate one of the biggest allies in the region. tracy, this has caused quite a stir around the world. do we know what happens next in terms of any legal steps that c

for more on this rally and how long it might go on for let's go to tracy alloway.t is driving these gains? >> if someone had asked me what the best-performing stock market this year was i would not have necessarily thought about the kuwait stock exchange index and yet here we are. seem to have had this perfect confluence of various factors and events that have combined to take a positive environment for kuwaiti assets. one of those things is rising oil prices which is more .enerally the case for the gulf if you look at what saudi arabia and the uae are doing to make their markets more attractive, reducing trading costs, standardizing resettlement time, you could nationally -- naturally think that kuwait will begin to do a similar thing this year. promising to buy domestic equities and you have pakistan. they were one of the best-performing stock exchanges of last year. it will boost itself to emerging market status this year which leaves a big hole in frontier markets that kuwait could ostensibly phil. a laundry list of things pushing up kuwaiti equities right now.

tracy alloway joining us from abu dhabi.for this edition of "bloomberg markets: middle east" . yousef: stay tuned for much more. this is bloomberg. ♪ >> 1 p.m. in hong kong, i have an update on the top stories. china's factory prices rose of the fastest pace in more than five years in december. up 5.5% from a year earlier. that means it is poised to become a global inflationary source. chinese consumer prices climbed in december below economist estimates. on department store operator news alibaba and others want to take it private. the statement says the deal will happen at 10 hong kong dollars per share which would value the company at $2.5 billion.

tracy alloway and other dobby. the cloudy sales outlook.uss bonds. ♪ ♪ rishaad: the worldwide [indiscernible] 2017 after weak prospects in key markets. let's find out more. the islamic bank deputy ceo. i can understand why weak demand at the end of the day affects, , demand pursuit, but are these not interest bearing supposedly? yeah, i do agree the difficult market [indiscernible] compared to the global market as a whole. we have seen the trend continuing from 2016 where in the early part of last year, 12 months ago, everyone was saying 2016 will be a tough, rough year for sukuk. globaln we saw in the sukuk market in 2016, we expect the momentum to continue. of 2017.ay to q2 we look at the sukuk market as a whole, the lines on malaysia and the middle east in the mirror to have basically come up with a prediction of 100 billion and get, which is close to -- ring ringgit.ht --rin -- and sukuk historically has 75% of that. in gcc last year we saw very good year, and based on what we have heard, this year will be another decent year in gcc as

let's go to tracy alloway in abu dhabi. just attack the debt markets last year?at's right. we had abu dhabi come to the market in april last year, selling $5 billion worth of bonds. int was its first bond sale seven years, so if they come back to the market now, it certainly seems the length of time one be nearly as long as it was the last time around. you will remember also last year that abu dhabi was the first gulf country that set off a weight of issuance. the marketr come to in may with a $9 billion sale, and others culminating in the $17.5 billion mega bond sale from saudi arabia, so we will have to see if abu dhabi is the start of another trend this year. so the timing probably because they are running out of time in terms of the fed hiking rates. is there any other driving factor plane into the equation? tracy: yeah, that's right. at have a number of factors work here. on the issuance side, you have the prospect of the fed tightening rates, so are a lot of countries want to get out ahead of that, but then you have all sorts of things happening on the dema

tracy alloway has the latest from abu dhabi. it seems to be a moving target, if you will?hat's exactly right. there is somede, renewed certainty around green card holders specifically, so we have homeland security secretary john kelly sang green card holders from the seven predominantly muslim countries will be exempt from the travel ban come us of that in some respects is good news. the bad news is we have major confusion on the ground at major airports around the world. we have border officials who say they will abide by the terms of the executive order, but also by seeingys that we are now several judges pass in their respective states, so a lot of confusion and disagreement about how the ban is actually thatmented, and in fact, confusion is exactly what we are seeing politicians in the u.s. take issue with, including trump's own party. we have republicans -- -- the weight it was effectively done with little consultation, still a point of disagreement, how much legal consultation was done before the order was signed into place. the reality is that after donald trump's i

tracy alloway has the story from abu dhabi. billionns for its 2 dollar private equity portfolio.s to be the latest extension of that. the idea is to put it into a new vehicle and then partner with some other investment firms and the french lender that you mentioned is one of those potential names. ala get frombad that? it is trying to expand abu dhabi's reach internationally. a vote of the global financial markets, the new offshore financial center. to partner with more international investors, then this brought it -- broadens out would be into the international financial community at a time when it is trying to build up its reputation as such. rishaad: what is the latest on the merger with ipic? that is the big news in abu dhabi. the merger between ipic and m ubadala. there was some talk that it could be completed by the end of 2016. we are talking an eventual entity that will have a $125 billion in assets, one of the biggest mergers of all time. that deadline was a bit unrealistic. we are still in the bit of implementation. the next news is likely to be the new name of the comb

i am tracy alloway. this is "bloomberg markets: middle east".e have to talk about donald trump's executive order. temporaryudges have block to the trump administration from enforcing that executive order that would have led to the deportation of refugees and visa holders. the order has led to people being detained at airports across the country and has raised anger across the globe. let me see if i can start with a chart i prepared for this segment. this is one of my favorite indexes. u.s. migration fear index, a count of certain words in news stories associated with fear around immigration. it is at a record high after trump won the election, so if we assume that text of this executive order has not been stringent enough to make people certain of what it allows and does not allow, it seems like it has been open to interpretation, and given that environment and the worries over migration, it seems like that is causing a lot of problems right now. >> that is exactly right. the issue is that the text focuses on the entry, mentioning the word alien

we are having communication errors with tracy alloway. we will gettion is, a rate rise.t is what is priced in but is it going to be big enough?' the range is enormous from 0-150 basis points. do whatat be enough to the central bank would like to happen? also, what kind of fight does this set up with strongmen an president erdogan. he is allotted more power since the two. if he does not want them to raise rates, how far can they go anyway? guy: i wonder whether as well if we are in a situation where he is saying something that is behind-the-scenes giving the central bank the room to maneuver. there is some evidence of that in communications we have had coming through. we're going to get a lot of coverage later on on bloomberg. let's talk about the italian financial sector. it is getting interesting. reviewing all the options that it has for a share bid for generali. according to reports in the --ublic, part of the basic there is expectation that generally is buying shares in intesa four defensive purposes. let's figure out exactly what is happening. let's talk to dan leaf

you're another of another of those detectives that chased poor alloway. you're no mechanic. your hound. she broke down crying, get out, get out, get out. as crone was pushed into the street he knew he had failed grace. her plan had worked beautifully until he got in that basement and have blown his cover. crone slouched inside in walked away from the store alongside the black cars. he was convinced, completely that he had missed something in that underground room. he understood now, he would stop at nothing to get back to that still space to find out what really happened to ruth kruger. thank you. [applause] i think we're going to do some questions if anybody has he. holly is walking around with a microphone but he has questions or comments. >> you mention that she disappeared. and any information at all about where she ended up in what happened? >> so this is a new book for me. it just came out two weeks ago and is starting to do these readings as such i'm trying to answer questions but at the same time, not giving out spoilers. because i know i don't like it, so hard nowad

tracy alloway, joining us from abu dhabi. very interesting take on the executive order.inutes into the trading day, let's see how things are shaping up in the markets. here in europe on the equities side, we are not seeing a lot of movement and hasx 600 opened up turned down. the ftse, the dax and the cap had very little change. deutsche bank popped at the open and came back down. let's get over to marriage age -- she has more top stories. we are seeing significant moves in individual stocks, .tarting with a cargo it beat analyst estimates. we are talking about the world's biggest online grocery. over mored sales profitable nonfood items. that is what fed into this before profit and we have seen shares advance as much as 8%. this better than could provide some cheer for investors after years of slim returns. the company then he has been trying to sign a partner for over three years. as ceo said today that the company is busier than we have ever been and is more confident of signing a deal. we are seeing the stock rise on all of that. h&m gaining, as well. fourth-quarter

let us get to tracy alloway in abu dhabi. it is anrest rate -- inevitability, is it?that is the question to be asking. the economists are looking at the cost of central bank funding. that has surged outside of the turkish central banks interest-rate quarter -- corridor in the last few weeks. the central bank has been introducing unconventional measures to tighten liquidity and financial conditions including forcing banks to use financial windows. these are all of the things that the deputy prime minister is calling that door measures to tighten liquidity. the thing that is not necessarily inevitable, the place that there is still some disagreement is over exactly how much they will hike rates. we have seen consensus for 50 basis point but some are calling for 100 basis points. a lot to watch out for. much withk you very the latest on turkey and the rate decision and the politics. coming up here on daybreak europe, we will talk about software and sap. towill speak exclusively bill mcdermott. that is coming up next on bloomberg daybreak europe. this is bloomberg. ♪ manu

we should not be in this position but what is important how we manoeuvre alloway out of it.l stop what is important now is to get someone new in position, not decided by people with one view of the leaving the european union issue or another but someone who will do a good job in behalf of the country, which is what sir ivan was doing. the suspicion is that he felt he had to go because there were those who felt his heart was not in it.|j don't know any more than what has been an e—mailand don't know any more than what has been an e—mail and it is not a question of whether the heart is in it its question of whether they're good at thejob. it its question of whether they're good at the job. he it its question of whether they're good at thejob. he knew it its question of whether they're good at the job. he knew the extent the eu very well, he represented britain throughout his career. he was independent minded and was doing hisjob. the warning signs of was independent minded and was doing his job. the warning signs of a was independent minded and was doing hisjob. the warning si

tracy alloway, tough was about, first of all, what this means for the mexicans, and then we will broadency: sure. you will recall the peso became basically a barometer of donald trump chances in the u.s. presidential elections. we saw it weaken whenever it looked like he was going to go into office and strength in my it looks like his chances were diminished. we seem to be entering a new front in terms of donald trump's impact on emerging markets. if you look at what happened yesterday, it was really quite significant. not only did we see the peso dropped to a fresh low, we also saw the cost of insuring against sovereign debt default, credit default swaps, surge to the highest in three weeks. not only is donald trump now affecting mexico's currency, he he also seems to be affecting perceptions of the country's actual credit worthiness. it is worth mentioning it is not even donald trump. it is the perception that ford might be attempting to curry favor with donald trump, so really quite extraordinary. ok, so let's figure out how we price this all in. i don't know whether you call this pre