is egypt going to get its imf loan now? alaa: there are three main steps for the imf loan. we think they have gathered the financing already with the latest china swap deal. second was to move on the fx. third was to cut subsidies. they did that also on thursday. thomas there is some wrinkle that we don't know about -- unless there is some wrinkle that we don't know about, in the next few days they will go to the imf. look at that -- that is called drastic data egypt. [laughter] if you want a lesson on what not word thusmphasize the kh devalued their currency, argentina devalued the peso. manus: from investors that we talked to on this, if you interfere and say he will freely put the currency by intervention, then investors will start dumping your commitment. that is exactly when the black market comes back. a week later, it strengthened the pound. people would say, it goes up, down? that is the key test, if you will. people would be paying close attention to whether the central banks intervene, or decided by market factors. tracy: thank you so much, our economics editor fo

i think every player wants the imf in.een talking, since we arrived here, to a number of bank ceo's, to get a sense of thingsy think they see developing. they say the fifth is important but there is a possibility of further meetings. so, if we do not get a deal done on the fifth, we still have a few days? yannis: i think everything is ready for the fifth. but from my experience, even if there is something at the end, a small delay, it does not matter. the government here is very evaluation.sing the so i hope that the fifth is going to be quite small. guy: we have always had this kind of issue of the mathematics surrounding sustainability. yannis: yes. in september 20 15, mario draghi talked about the idea that maybe the ecb should look at the sustainability story. did that ever happen? if not, why not? yannis: as you know, the sustainability now is different. sustainability now relies on, every year, greece will pay not more than 15% of gdp in amortization of their interest payments. there are people who are very close to

we have the imf loan, devaluation. things we were waiting for for a long time. what are you watching for in the week ahead? mohamed: the key thing is the contained improvement in the foreign exchange flows, which has been showing is a very good indicators in the first week. the key thing here is these reforms start to pay off in terms of the pickup in the long growth and it dominates activity across the board. --s really looking forward all of these reforms are helping the state grow. manus: the risk to egypt is, of course hyperinflation -- and we are looking at core cpi. nearly 16%. what does that mean for the central bank? the egyptianisk central bank needs to raise rates again, more so on the inflation side than on the currency side? mohamed: 600 basis points -- actually markets have gone up from that. it has increased rates of further from that point. theres the key point is has to be proper tightening market policy, which from a rates prospective head of been already -- respective had been invested. the central bank says it has -- loss, you look at the they

. >> the internment and imf are connected, right? >> started here with the military intelligence service. >> that was all to prove their loyalty, right? >> incredible experiment that had to happen. >> what was that experiment? >> the u.s. army in anticipation with war against japan secretly japanese american soldiers already enlisted for war against japan. >> that was well before? >> this is actually one month before pearl harbor. >> did you and did the other imf members, did you feel accepted and feel like you were part of the rest of the military or did you always feel separate? >> i always felt separate. but when you're overseas at first feel like a foreigner and an enemy, but as the time went on, they see that i'm translating and interrogating and i'm working. >> sometimes i see these exhibit or i see i am an american and it was such a theme that the veterans wanted to come across and that's kind of what is important about thismuseum. >> absolutely. they were sworn to secrecy and they could not tell their family members. they had

imf director christine lagarde joins us in minutes.e? isn president-elect trump up scheduled to head to bedminster, new jersey, where he will be national golfmp's club this weekend. we had the latest. trump has started naming his cabinet. alabama senator jeff sessions as attorney general. and representative mike pompeo as cia director. democrats are voicing concerns about those selections. scarlet: we are one hour from the close of trading. we are going to check on markets. it feels very quiet today to but if we take a two-week view, there are tremendous moves. abigail we're looking at very -- abigail: we're looking at very tired trading. not a lot of action very small declines after opening slightly higher. we're now looking at small declines. but absolutely huge moves over the last two weeks. the dow, s&p 500, and nasdaq, look at all the green. the dow is up 5.5%. 2000 up 12.9% over the last week with small caps getting a boost from the auction of donald trump. some say small cap committees receive more revenue from the domestic fron

coming up, egypt prepares to finalize the $12 billion imf loan.yptian economy. this is "blommberg markets: middle east". ♪ manus: welcome back to "blommberg markets: middle east" . i am manus cranny. .e are live in abu dhabi angie: south korea's newspaper a a hotel will be project in saudi arabia. wins saudi hotel contract. shares trading higher in seoul, korea on monday. a u.s. law firm has filed a class-action on behalf of of investors. the law firm says they engaged in contact that could result in antitrust investigation. claim says u.s. prosecutors may file criminal charges against teva by the end of the year on price collusion. a 40% stake by the end of january, the ceo says the deal agreed in july depends on the ailing italian carrier meeting certain conditions. the italian government spent months trying to mediate between manus: oil is never far from our mind. since 2014.rally full risk coming down. the banks have been dead. are we in a sweet spot for saudi arabia? great to have you with me. in saudi?a sweet spot >> we have seen a big shift

the imf has said they are worried about protectionist policies.at we're the biggest risks for your project? >> 90% of global goods arches areded by marine -- transported by marine vessels. i think the world has to come up with its own social policies. there are different needs. part of this is the deputy prime minister's vision. and that is part of 2030. andcan you envision 2030 how that help you deliver more effectively? is there a code join a question workshop but definitely there is. it is focused on a nonoil economy. we have been doing that for the past 10 years. we have been missing on the red sea and the nonoil industries. so, this is a huge alignment and the biggest alignment yet is on tourists. projects.lding 40 we believe that saudi arabia can be huge for tourism. the other thing is this it get reallyn strong and wages, cutting the wages for ministry staff, etc., government employees. how does that close the gap for you? the reduction in state wages? does that help you? does that set a new tone in terms of saudi arabia? >> it is a restruc

us withld have you help the institution known as the imf, you have recently worked at the imf.rrently, can they come to the rescue of non-emerging markets like italy? are they prepared italy -- are they prepared mentally to do that? eswar: the more fundamental question is the imf coming into the country. and what can the imf do during a moment of crisis and force a good foro do what is the long-term? the most fun about the question is, why aren't these countries like italy undertaking the bonds? it is good for them in the long run. it goes to the heart of what we are seeing around the world, the fact that globalization, many of the forces of disruption -- technological changes and so forth -- are not working for the common people. there is a sense of the benefits of globalization, both trade and financial, all going to the political and economic elite. with that notion among the middle class, it is difficult to put in place -- getting the imf in is not a solution. the fundamental institutions need to be reformed. francine: the problem is also one of timeline. an economic advise

we speak with the head of the imf, christine lagarde, about the impact of the u.s. elections.s he been hit by another earthquake hours after a major quake killed two people. the quake had a magnitude of 6.2 with the epicenter just off christchurch on the south island. we have this report from christchurch. next roads and railways snapped out of shape. homes flattened to their foundations. this farm has collapsed, killing the man inside. miraculously, his wife and were foundd mother in the wreckage alive. every corner of the country has been touched in some way. zealand has grown familiar with the work current thosef earthquakes, hearsay the tremor was the longest eight ever experience. >> we look outside and see the cars moving around. the aftershocks have cap on coming, the strongest enough to kill -- clear this supermarket shelf in nelson. pledgede minister has support. the government estimates the repair bill will add up to hundreds of millions of pounds and it will be a slow process. here in christ's church -- christchurch, the workers rebuilding the city, say it is far fr

reporter: the government says the imf loan will enable the country to bring down its public debt and control inflation. worry it wills not be enough to revive growth and raise the country's foreign reserves. an important problem remains. egypt's private sector is heavily dependent on imports that are financed i dollars but on the black market. lu ofraise or lower the the dollar is not the question. what is important is to make sure that there are dollars in the national reserve and that investors are forced to go through the banks to get their money. have criticized the government for not passing the loan through parliament. it is said to have a important social impact in the country. slightly in the country. economists had been expecting the headline rate of price increases to rise last month. inflation is one of the big concerns in the u.k. after brexit. the weaker sterling has made imports more expensive. in germanyowth slowed down in the three months to the end of september. europe's largest economy grew by just 0.2% during the quarter. the slowest rate in a year. foreign exports

the measures move egypt closer to getting the $12 billion loan from the imf. federal reserve policy makers have telegraphed their intent to raise interest rates. the fed says it needs only some further evidence that employment is on track before hiking the rates. what they do not know is what impact next tuesday's election will have. our kids priced in an 80% chance of a fed move next month -- markets priced in an 80% chance of a fed move next month. the report has ordered an investigation into the dealings with the prominent family. in chicago they are partying like it is 1908. they won their first world series in 108 years, beating that cleveland indians in a decisive game that went 10 innings. the cubs are their first team in trailingo win after 3-1. global news 24 hours a day, powered by our 2600 journalists and analysts in more than 120 countries. i am taylor riggs. this is bloomberg. tom: we will do a little bit more on the cubs later that really quite extraordinary. we could talk about it on and on and on and francine would throw something at me. franci

folkerts-landau said about the imf coming in.that they would do that. point, weto david's have been trying to reform the country for 10 or 15 years, and you could argue that the former political class was not that keen on reform. but since matteo renzi came into power, we expected more. i agree with david that if you look at the donald trump presidency, and the fact that he have 22%ed when we youth unemployment, you will see a lot of people heading for a protest vote and it is likely he loses the referendum. be palatable for the italians to get into an imf program? no, very difficult. i wouldn't expect that europeans would put together something to it domestically. they have european rules attached to it. .he imf sits at the center if the country has difficulties, that is where the reforms are supposed to come from. the outcome would not involve an imf, but that is where it should be going. tom: the heart of the debate going back more than 20 years is germany has the same currency as italy. and they are not the same economies, ar

have they lined up credit with the imf? shahab: right.ready has large foreign exchanges that could be used. as youre also, mentioned, lines of credit with the imf. clearly, the global community will be happy to help mexico in their situation as well. other financial officials around the world would be receptive to any thing on mexico's front as well. we believe x ago has the resources to calm things down after the initial shock we could see from a trump victory. but if trump really does try to move against nafta, there is not really enough in the bag in terms of the reserve. in fact, would mexico want to stop the peso falling under those circumstances? we have to differentiate a little between what to do on day one and what they may do over the course of a year, where perhaps they are happy to let the peso fall. jonathan: let's talk about the dollar specifically. typically, the dollar is strong. we have seen that again and again. what i am hearing from people like yourself is that is not what is going to happen this time around on the bac

it has foreign reserves lower than the imf recommends. you aboutet's tell what has been going on with the federal reserve. the minutes show policy makers are ready to raise rates in november, reinforcing the view that economists and traders think it is a done deal. kathleen hays joins us for more. tell us, i think it is one of the most clear minutes we have ever seen actually with some definitive key phrases there. right.are absolutely this is a fed divided, some focused on slack in the labor market, inflation below target, others saying it is time to move now. that from the minutes of the november meeting of the federal open market committee, that they are together on this hike in december. let's look at some of the key phrases. recent communications were consistent with the near-term rate hike. i guess they are talking about the speeches they made where they said the case for the rate hike has strengthened. "to preserve credibility" some members of the fed wanted to hike at the next meeting, december 14. they repeated they will be data

guy: what is happening with the world bank and the imf? how embarrassing is this? has been a tough road. downkeep kicking the can the road because the political capital that is lost a move like this is immense. there is concern that there could be unrest in egypt as well. as you pointed out, this is all part of an attempt to try to lock in that $12 billion agreement, the loan from the imf. as part of that agreement, the understanding is that they would move on subsidies and move to liberalize their currency. christine lagarde said it would be a matter of weeks. has lived up to her word. we saw the central bank moves finally after we heard whispers over and over again, then they kept extending it. now finally, it moves. investors reacting positively to that. we have to see whether this fixes the us..s. dollar shortage which has been crippling a lot of the companies there. guy: we will continue to wah what is happening in egypt with a great deal of care. caroline: credit suisse really down hard this morning, one of the worst performers. this as we saw it beat on the

china has been getting a lot with imf, but currency has been going down, there is no greater currencyate or than u.s. u.s. >> let's say, their is know impasse they get to 30% or something, we want american voter to see something in their backyard, in a' those jobs back, highwa how does he force their hand. >> you don't put pressure on china, you put pressure on the companies, trump has talked about that. you could have selective tariffs but you could target particular sectors saying put more jobs in the u.s. >> would you do that to apple, i read average worker on fox makes $4500 s -- 4500 a year. >> you can create jobs in u.s., there are a lot of other factors, beside wages, starting with import duties, transportation cost, energy costs, water, there are a lot of advantages, corporation, it is not just the wages, that is a part of it but there are a lot of things you could offer. they look at a lot of jobs >> no more inversions. so we heard corporate america also so far sound pragmatic and make nice. apple is one of key companies, because of their success and what they mean as a world

the imf recommended the central bank slow the pace of rate hikes. the co-president of teneo intelligence joins us. let's start with mexico. again, trade protectionism is something that is featured highly for mexico. will they struggle a lot more than what they currently are? what should one anticipate if you're investing in mexico? >> it's very early days. if we look on the protectionism side of the story, specifically about nafta, it cannot just be the president here in this case, president-elect trump, soon to be president trump making a huge difference. it needs to go through congress. let's be cautious about that. the other way around, it's clear if we look at the political outlook in mexico, it trajectory remains positive. there is significant ability to remonday respond to emerging market territory. in politics, it's a constructive story if we take the horizon of now and next year. >> you put out a report, what are some of the main findings of that report? >> it's mixed. we're looking at more than 20 emerging and frontier markets, looking at e

trump, that the imf will be raising their u.s. growth forecasts? in the next. the problem is they do not yet have the numbers to plug into their models. we will hear from them again in march or april, around the time of the spring meetings for the imf in terms of global growth. but it is an interesting dilemma for her because she has been calling for years for fiscal stimulus around the world. now she may get a big-time in the united states, and at the expense of the other side of the equation, free trade. francine: i wonder if she was -- i wonder what she will say about free trade and if there is any advice that she can give, given that she has seen the process of , told trump being elected european politicians, to bridge the barriers we are having between the people that vote who are angry and our politicians. directhe has been very with european politicians for a couple of years now, telling them they need to focus on stimulating growth or they are going to have political problems. i am going to ask her about that because, as you know, we have t

the imf made it a key requirement for a 12 billion dollar bailout loan. the move had been expected for some time. the currency was trading at record low levels on the black market. a cheaper pound. to boost exporters. >> there was some disappointment. >> the numbers from the social 166%rk profits jumped by from july to september. company shares tumbling in after-hours trading on wednesday. than $20knocked more billion off. the world's biggest social network keeps getting bigger and more profitable. and september facebook earned profits of $2.4 billion. that's up 166% from the same period last year. facebook took in over $7 billion in revenue. up over 50%. more and more of that is coming from mobiles. it accounts for 84% of advertising sales. helped bye being continued increase in the company's user base led by the asia-pacific market. there are now 1.8 billion active users. >> we are pleased that the growth. that's pretty exciting. >> there was some cause for caution. in a conference call with investors facebook's cfo said growth would slow mentally next

the imf said current monetary stands should be maintained and analysts warn it could even fall more. that is it from the business desk. christopher has the latest sports for you now. christopher: that is right. plenty of soccer action. in the bundesliga, the top game features a clash between the first-place team and the third-place team. when they last visited in munich , they were second to last, hoffenheim. things are very different now thanks to the 29-year-old coach. >> the man who brought success to hoffenheim. they have not last -- they have not lost in nine games. >> we are prepared. it may be more suspenseful than in recent years. we can be proud of going there in third-place instead of 15 or 16. >> in the first season in 2008, hoffenheim were the surprise table toppers when they played in munich. in that encounter, luca scored the match winner. the bavarians are favored to win this time as well. >> it can't be a voted that munich will get some chances. you have to focus on avoiding those chances. you can't let a lot if you want to be successful. >> and 16 clashes, hoffenheim

the imf has not begun to think about what they might do.et: and looking at china, on the one hand, you have traded disruption that could be upsetting for their currency, but internally, they could look toward other countries for growth. any other comments on china? mike: we talked about china, because the two big economies in the group are the u.s. and china. with that transpacific partnership, they were trying to drive the rules of trade across the pacific for the toy first century, but if we are withdrawing from that, then the president of china is stepping in and trying to present a plan to increase trade that they have put together. it does not include the united states. what will that mean for the global power going across the pacific ocean? the trump administration, or the campaign, argued that china is trading unfairly. she did not say that is true, but she is keeping a close eye on what china does and they do not think that the yuan is undervalued at the moment and they will follow along to see what happens as china perhaps assumes

the central bank is been under pressure to relinquish its deal thatn an imf made it a key requirement for a bailout loan. egypt's central bank also raised interest rates by 300 basis points. the egyptian stopped jumped more than 8% willhope the propellant help to boost exporters, and many have welcomed the move. >> it's a good decision. it will lead to a kind of stability in the markets instead of speculation on the foreign currency. on the everyday price by people who started the currency speculation business. on the black market. now it will only be possible to go through authorized outlets. it is good for people who have dollars to sell them at a suitable price and banks -- in banks. kate: lebanon's welcoming its new leaders after two poin2.5 y. the governor of the central bank says the new government will bring in a new eara of financial security. presidentction of the in lebanon, the election of president hariri, should allow the constitution, the institution in the country to resume normal activity. which is reassuring and will increase the confidence. the country is in need of

the move is to meet conditions for $12 billion loan from the imf. the government hopes to boost foreign investment as it tackles a budget deficit. years of unrest have caused high unemployment, inflation, and a drop in tourist numbers. capital ofenya's nairobi avenue fired at protesters. hundreds of people have gathered to demonstrate against what they claim is government corruption. officials of the ministry of health are accused of stealing $50 million from a maternity program. the leader of so-called islamic state has reportedly ordered iraqis in mosul to defend the city from advancing forces. in an unconfirmed audio message, abu bakr al-baghdadi called on his fighters to obey their leaders and stand their ground. iraqi special forces are tried and area of mosul they took from i.s. yesterday. our correspondent was with them when they broke through. reporter: we're headed to the first part of mosul city. to be honest, i'm a little bit nervous. so far this convoy has only gone through small towns and villages and the resistance has not been that mu

we have an then to results that is the epidemic but that is say exactly the same type of imf. and. >> it is like a city disappearing everytime. >> yes. the question is what should we do about that? was says misha and do nothing because it is in the second amendment and that is sent but government subscribes collaborative view to do something about this then you have to do the research as to why this happens this few will be an abuse and aged by uc it the -- it was treating dozens as hopeless but now they don't. >> my wish for those who don't want to do it, then tell me another way hopper, a meaningful way if you stop these children from dying. i don't argue about the second amendment but my kids are american. i don't want them taking these risks. and even if they want it is unacceptable. this is what you don't want to do? what do you quite. >> that brings me to us the enthusiastic need day better story that these arguments of my second amendment right there are so many that are not relevant so basically it comes down to marketing. you are a professional storyteller so if you a

imf fan of but maybe we are not having to look for the likely or the unlikely scenario.s been a very tough stress test with this double way me of a severe u.k. recession and the global recession as well with lots of stress in emerging markets and elsewhere. includes land [inaudible] and taking costs out of these costs basis. this looks like it will be amplified even further. all the measures they have to take to improve their capital adequacy ratios and some of the key measurement metrics that this test is using. this is an inflection point for u.k. banks even though you are saying the bar is high, perhaps way to hike impaired to the rest of the world, but it is still a point of change and it is going to bring on a lot of change. guest: what it highlights to my mind, particularly with rbs, is the debt book and what do they actually have on the book and those loans, how will performing are they and how well with a be performing under severe u.k. stress? i think that is white rbs despite it's very high, relatively high capital ratios, has come out so week. anna: that is wh

but in 2015, the imf said that the yuan is no longer undervalued. trump repeatedly has argued u.s.eaders hurt the american economy by borrowing too much from china, but he's--he himself has also turned to china repeatedly to raise capital for his business ventures. in fact, the bank of china was one of the entities that financed a $950 million trump building in new york city. val: cctv america's "world insight" program reveals a china with deep concerns about the u.s. election. woman: are we gonna see an electition dominated by thoughts and opinions of elites, or rather by opininions and choices made by either the e redneck or ththcommon folksks? davvid: wewell, you've asked a keyey question. the urban population in the ununited stats has becomeme separated fromm thehe interests of the rerest of the population i iincome terms or value terms and so forth. so the question really is s is how big is this disaffected group? that's s the key issueue. woman: is china's role now in the u.s. presidential e electio, has it evolved? david: if f you ask what reaealy motivates people to g go vo

budget, in terms of spending, the imf has given a report on saudi. , thee fiscal latitude ability tolance this slow to -- >> what we are looking at is a fiscal measures being brought in spirit spending is under pressure because of the oil pressures in terms of revenues. for the time being, the tendency will be to be relatively conservative. you might say that there needs to be some offset to try to boost growth. if oil prices continue to pick create the comfort to actually push out a little bit. >> i want to ask you about the markets right now. safety first. take a look at bonds. ahead ofall in demand the big day, november 8. how are you tabling that risk? doesn't come to the table with a deal, if the u.s. gives us a black swan event, what does this mean for the region? >> all of these things need to come together to construct a negative scenario. is noices -- if there opec deal, the impact could be significant. if the election goes to donald trump, that would also upset a lot of assumptions about how the year is going to end. events.e all black swan at the moment, we have to get bey

. >> the right honorable gentlemen, differentiating between the imf. >> your piece sitting there and my standing here. >> let me tell him what we are doing. let's think about those who find life difficult and struggling to get by and worry about their job security, have a home but worry about paying the mortgage and their children's education and whether their children will be able to buy a home. increasing national living wage, we introduced national living wage, increasing personal tax allowance taking more people out and increasing the number of affordable homes being built and we can only do this if we have a strong economy. >> wages have stagnated, homeownership is falling, homelessness have doubled and food banks rising every day. if the prime minister believes the economy is doing well, why is her government forcing 2 billion pounds in work support, cutting and comes of working people leaving many households over 2000 pounds a year. >> this question talking about home ownership, house building starts fell by 45% under labor in 12 years, increased by two thirds if the conservat

the imf talks about the propensity for this reason. they use the word tax. how is the gcc looking?sil prices fell t ago. when i look at the real economies of the region, they have just begun to adjust. trade policy is still playing catch-up. deficits the regions are facing is huge. there is a recognition of how daunting the challenge is. thisirates nbd brexit on show each month. -- breaks it odwn on the show each month. i don't think it was prophetic to wave the national flag. this feeds into a perspective. 2017 is going to be more difficult than this year. posterity and liquidity continues to pressure. global developments will not help the region either. a stronger dollar is that for the gcc. gcc. bad for the a pick up in oil prices will help, but it needs to be $60 a barrel before we see a turnaround. >> looking through your notes, it is disconcerting how bearish the tone is. both the economies that you cover in the middle east and africa, it is not just the prospect of slow growth, but also for equality growth. you touched on oil. also geopolitics, there is a perfect storm over

imf, you see the counter protectionist measures implemented this year.global financial crisis. that is how you can measure that we will see more protectionism going ahead. onthere is an over focus jobs being lost across the border i think. most of the trade we do we do within our own countries, then we trade more with our neighbors and so on. u.s. jobs, 5 million lost and created every year, a lot more than anything could us to could ostensibly be blamed on workers. i come from sweden, sweden used to have a steel industry, but that was a long time ago, so throwing money at declining industries cannot be a growth strategy. >> right, thank you so much. i think we could argue and talk and tell trump actually comes out with some policies. it was a pleasure to have you. safe travels. coming up next -- >> hitting a high, why weibo's revenue may rise to record when it reports later. this is bloomberg. ♪ >> welcome back. this is "bloomberg markets: asia". get some headlines from the tech sector. symantec buying lifelock four $24 a share. the deal has an enterpri

that is slower, of course, then we would wish that still equivalent to the imf forecast for germany,igher than the forecast for growth in many of our european neighbors including france and italy. a fact that will no doubt the a source of very considerable irritation to some. of the uncertainty diminishes the growth forecast recovers to 1.7% in 2018, 2.1% 202119 and 2020, and 2% in . while they are clear they cannot predict the deal the u.k. will strike with the e.u., their current view is that the referendum decision means potential growth over the forecast period will be likely to .4 percentage points lower than would otherwise have been the case. acknowledges there is a higher degree of uncertainty around these figures than usual. growth thew lobar u.k. market is expected to remain robust. shows the number jobsng every year, 500,000 created providing security for working people across the length and breadth of britain. mr. speaker, for those who claim that recovery is a southeast phenomenon i have some news. over the past year employment grew fastest in the northeast. pay grew mos

expectations of an official valuation ahead of the expected imf loan.0% in the black market alone. angie: the world's biggest operator of onshore oil rigs is growing its venture with saudi aramco. it will be an equal partner with the oil company. they own, manage and operate oil and gas rigs. the deal cements nabors is one of the industries biggest markets. saudi telecomith on its power portfolios are going. the tower says its extended a memorandum of understanding for 30 days. the companies are jointly exploring options for extracting value from the portfolios. mobily says the objective is to produce capital and operating expenditures. in dubai bysales nearly 7%. oil prices weighed on the economy in the region. there were signs of a revival. anding me now is the ceo deputy chair of emirate reis ret based right here in dubai. thank you for joining us. i read your numbers yesterday. a lot of people who run reit would be totally envious. you have year over year of 12.13%. the rental income is up nearly 20%. how sustainable is that in the region? >> i thin

we have seen hundreds of millions of dollars going into the country, not just from the imf, but privateey as well. and quite frankly in our own business of private wealth management, we are getting phone calls asking us about egypt. i hope they can do it before the end of the year. it will send a very positive signal to 2017. gary dugan, we will get back to you in just a little while. coming up, physical stores lost out to virtual ones. this is bloomberg. seeing is believing, and that's why we're opening more xfinity stores closer to you. visit us today and learn how to get the most out of all your services, like xfinity x1. we'll put the power in your hands, so you can see how x1 is changing the way you experience tv with features like voice remote, making it easier and more fun than ever. there's more in store than you imagine. visit an xfinity store today and see for yourself. xfinity, the future of awesome. desley: the top stories on bloomberg markets middle east. many americans took to the after newssaturday of fidel castro's death. the father of the cuban revolution that prompted

year-long time span, and if things have not improved, america would have other options, like calling the imfse surveillance of china and shut down any ongoing or existing trade talks are close down channels where companies get financial aid in china, so it sounds dramatic. in practice, it probably does not mean that much. haidi: you are looking at where the yuan is sitting now, the weakest fixing since 2010. it is a dollar story, but it fits into that kind of rhetoric. of course, we know it is a dollar story. this is what america has been wanting china to do. there are concerns around china's exchange rate, the lack risk ofparency and the financial instability that it poses to global systems, especially of china wants to devalue significantly. however, i do think there is a that the narrative has moved on from the days of labeling china as a deliberately for manipulating currency. if donald trump was to follow up with trade tariffs on china , he spoke about 45%, the fact that he is talking about tariffs on the world's biggest exporting nation is something to be concerned about. whatever it i

do you worry that the world -- the imf has said they are worried about protectionist policies.at one of the biggest risks for your project? >> in trade, you will always have -- today, 90% is transported by marine vessels. i think the issues are more social. how do you protect those affected by trade? each country will have to come up with its own social policies. but trade will go up eventually. manus: heart of what we have the miskthe vision, foundation reaches out for technology. how can vision 2030 and the deputy crown prince help you deliver more effectively? is there a joint? >> the vision is really focused on the nonoil economy that diversifying away from oil,. we have been doing that for the past 10 years, focusing on the position of the kingdom on the red sea. we have been focusing on nonoil industry. there is a huge alignment, and the biggest is on tourism. we are building 40 projects on tourism, two theme parks, safaris, zoos. we believe saudi arabia can be huge. manus: the -- the other thing is this. we have seen the deputy crown prince get quite strong in terms of w

ever since they found at limitary agreement with imf for the $12 million loan in august.y preconditions has been a flexible exchange rate. the second has been lifting fuel subsidies. that one is yet to be met. it is unclear right now if they will take that step now, or when they might. egypt have? does at one point they would need to basically give out food to individuals in order to be able to buy food. what is the situation now? theight now, the concern is inflationary impact of this flotation. inflation at its highest level so far this decade, and the production -- prediction is that it could go 20% higher by the year's end. the real question is going to be thehere perhaps patience in population to see these kinds of price increases when you haven't seen wages go up anywhere near that kind of of a percentage. be done tot could mitigate the impact of inflation should we start to see it quickly? been talkingave about looking at some measures st terms of profits, co increases on the side of companies in terms of the prices there are marketing their goods at. the governmen

the imf pegged at 100,000,000,000%.c call for women to be able to drive in the conservative kingdom. the prince twitted the demand, stop the debate, time for women to drive. in arabic andted english. saudi arabia is the only country in the world that does not allow women to drive. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am christine harvey. this is bloomberg. it is after 7:30 a.m. in hong where1030 a.m. in sydney i am joined by paul allen for look at the markets. good morning. paul: good morning. off to a bright start after 35 minutes of trading, up two thirds of 1%. of the energyll stocks leading the gains, beach sandozand send us a -- up. ore's steepest decline since march. up tinto showing some gains two percent after announcing the plan to charge a premium. this is the world most traded iron ore product. data out of on china. growth.owing signs of bloomberg technology next. ♪ this is bloomberg technology. i am emily chang. technology is like -- t e

i would still stick to the 1% to 2% appropriate that the imf and others are suggesting for the u.s. i do not think the term victory will really do much -- tromp victory will really do much in terms of policies. erik: one of the places we might change, it ispate high-yield bonds, sector by sector and today we see spreads widening in health care. place that kind of you and the constraint fund will be processing. -- processing? is a sectork there in terms of obamacare and corporations. the attack on obamacare and republicans continues to attack on obamacare and that suggest there would be substantial in the entire program going forward. i would say that the former as opposed to the latter, that would take time, but health care is on the chopping block in ands of corporate spread corporate quality, so that would be the first place i would look. in terms of other corporate sectors, it would be a positive, so i the for the defense and corporate bonds that are high-quality but no down euro spread because of the defensive seed as a trump initiative. erik: what about emerging and sovereign s

they are trying to negotiate with the imf to have a huge loan.s is a huge deal. >> it's massive. education authorities -- egyptian authorities have been kicking the can down the road, this is the last piece of the puzzle to securing a $12 million loan from the international monetary fund. this last week they told us it was a matter of weeks more than a matter of months. carol: was it expected would have such a currency move? in the space of five minutes, it went from the the second most extensive emerging market currency to the 13th. >> it was expected that they would make a move like that. you can see with a 12 month non-deliverable forward is trading under the 17 mark. we already had his evaluation early in the year. that's your red circle right here. it's the second time they moved. this is the big one, the one they have been signaling whispers in the market. now it's finally come through and we see how investors continue to react in the stock exchange, which continues to be up quite a bit. ♪ juliette: welcome back to "bloomberg best." i'm jul

dallas fed president, rob kaplan and stan fisher taking part in a panel discussion at the imf.athaway's third quarter results are out. that's the big one today. >>> starbucks fourth quarter beat revenue. they missed targets for the fourth straight period. they say the election is weighing on consumer spending. china was a bright spot something howard schultz talked a lot about. listen. >> china has record revenue and profits in q4 and fiscal 2016. there are countless examples over the last decade of western companies and consumer brands that have tried, but failed to achieve relevance in china. >> on a programming note, starbucks coo will be on "squawk box." this company, it's not the first time we have heard it highlighted consumer uncertainty, creating a huge environment and the green cups and a sign of unity. it's impacting results. when you wonder about the uncertainty weighing on consumer decisions and the economy. starbuc starbucks, i'm looking at the research notes. it is considered one of the best executers and fastest growers and been down on a series of same sales num

is the imf right in terms of collective bargaining rights? who will lead discharge? this charge? antithesisthe between the parties. essentially, it does not involve the business community which comprises of small and medium-sized enterprises. it is an issue that involves a large companies which unfortunately, are very few. sector, from the last information we have from the negotiation taking part andeen the greek government our lenders and partners, it looks like the layout percentage will be set at 10% per month. the massot involve business community in this country. you,f: how concerned are as we look to elections, italy in terms and others, of the rising tide of populism and how that could feed back into a dissatisfied electorate? >> the dissatisfaction of the electorate in a number of countries is giving the push toward nationalist movements. referendum in italy, the fourth of november. on the same day, the second reelection for austria. is quite worrying. we have another election early next year in april in france. should all be alerted that austerity upon a steroid he does

the imf has delayed the report on brexit until tonight. couple of polls due today are pushed into tomorrow. francine: the pound surges and campaigning resumes as we enter the final days ahead of the referendum. >> the bookies and forecasters have been more confident the remain will be the case than the polls but the last 48 hours the remain camp does seem to have turned back a bit of momentum against them last week. francine: on june 23 the u.k. voted to leave the european union and shocked some and thrilled others and rattled currency and financial markets. here is a look at how bloomberg television covered this landmark event in global business. >> we are waking up to a whole new reality. it is brexit. >> these guys have been trading since 8:00 p.m. last night and they started to see ticks down in cable and futures and ticks down in u.s. futures. at midnight it accelerated at 2:00 a.m. after it started coming out that the leave camp was getting more than the remain. >> financials will be absolutely front and center this morning. >> david

and in this context as greece continues reform, the imf has said that debt relief is crucial.continue to urge creditors to take the steps needed to put greece on a path towards a durable economic recovery because it's in all of our interests that greece succeeds. we all want the greek people to prosper, to be able to provide a good life for their families and their children. that would be good for greece. it would be good for the european union. good for the united states. and ultimately good for the world. beyond economic issues, we discussed the pressing security challenges that we face as nato allies. i want to take this opportunity to comment greece for being one of the five nato allies that spends 2% of gdp on defense, a goal that we have consistently set but not everybody has met. greece has done this even during difficult economic times. if greece can meet this nato commitment, all our allies should be able to do so. we also discussed the need to continue sharing intelligence, to help prevent terrorist attacks, the importance of keeping sanctions, including e.u. sanctio

>> it is one thing to sign the imf agreement, something else to follow through on other areas. trust him. around the holidays. i made a list of everyone we need to get gifts for this year. but thanks to fingerhut.com, we can shop over 700,000 items from brands like samsung, kitchenaid and lego. all with low monthly payments. just click on over to fingerhut.com for the credit you deserve to get all kinds of great gifts. [ drums playing ] let's wrap this one last. ♪ p is for permission to indulge. o is for out of this world. l is for loving the seasonal cuisine. a is for access to everything, including the aisle. r is for reclining in tailor-made bedding. and i, must be dreaming. s... so long, jet lag. polaris, from united. my new beer, stella artois, hey cois finished. the people will love it. the party's starting! ♪ ♪ ♪ originally brewed for the holidays. enjoyed ever since. stella artois. host one to remember this is your daughter. and she just got this. ooh boy. but, you've got hum. so you can set this. and if she drives like this, you can tell her to drive more like this. be