manus: downgraded middle east oil producers.hat is this mean for saudi arabia and bahrain and oman? they are playing catch-up with the other companies. >> the big surprise for this is that it's taken so long. late october they moved to downgrade saudi arabia. movies was really playing catch-up. within the next two months were going to downgrade. that is what happened. feeling the force of that. we've got to put this downgrade in context. the second-highest investment-grade rating the debt to gdp is still extremely low. aboven reserves are still $500 billion. what kind of impact is going to have. given the scarcity of saudi arabian debt it increases the impact on cost of funding. it is just a bump is in it. i think it is a speed bump. the investors of these kinds of debt issuance often more than 50% of the debt goes to the middle east. they have their own rating announcements. level into junk to two levels and to john. supported by the saudi arabia and government. , the investment profile is still very strong. dhabi.alked about a

manus: to traveled up here.to me about political implications. >> the fact it has returned to libya has diffused the situation. the issue is about sovereignty. countries claiming legitimately to sell the oil. if you do not control the mineral wealth, you do not have government income. manus: a lot of people have been talking about the oil market and have talked about production being off-line in iran and iraq, near their maximum. here we are with the libyan story. how does that play in to the market story? >> libya is a vital missing point. they are down to a quarter of the production before the revolution. million barrels a day. they are down 400,000. manus: getting back is not just flicking a switch. there is a lot of infrastructure. stability is the key. >> of course. of western national oil company says they have a plan to get back to pre-revolution production. they can double production in a matter of months when the situation is resolved. that would bring production back online. that will be more oil than

manus?anus: rishaad, the question is this, who was the sharpest of them all -- the effects were trader, the fx equities trader, or the bond trader? take a look at this. what we've got is society reality under a bit of pressure, spiking higher. , mpeg at 3.75.e it ratcheted higher. asian is, a devalue highly spectrum -- a devaluation is highly speculative. we have the central bank governor, but 12 months, that's what you're seeing, ratcheting higher, jumping the most since january. this closed. we saw a spike yesterday as well at 50 bits on the market yesterday. it comes down to this. the fx traders are going to be pushing the agenda here in terms responsibility. we also see bartering rates at a three-year high. we see the highest level of bartering rates since 2011. the squeeze on in the market. rish? rishaad: absolutely. the strategies are there. goldman saying they are now seeing the bombing of the dollar happening. rallying, thehis greenback having its biggest advantage in six months last

manus: thank you for the latest details.ome ofk the other stories around the world >> good morning, donald trump was forced to exit his car and walked on a freeway to get to the california republican party convention on friday. hundreds of demonstrators ringed the hotel where he was scheduled to speak. they let him inside three rear entrance. once inside, he made light of the unorthodox entrance saying it was a little bit like crossing the border. he refuses tot says invest in most major financial because they're holding of derivatives is a potential timebomb. he made the remarks on saturday. he said he didn't even consider investing in 45 out of the 50 biggest banks in the world. meanwhile, berkshire hathaway's profit grew by more than 8%. that offset a slump in insurance and the railroad. the fiscal year that ended in march, according to the newspaper, the restructuring effort and sluggish sales of battery units are weighing on the company. they should get about 50% more than the operating loss that sharp had estimated. th

manus: the sovereigns are moving.ve the dubai-based investment fund, thank you very much for joining me. a very good morning to you. moody's, we had the moody's guide here early, saying that will keep the ratings for the much in check. do you get worried when you see these moves from moody's? >> not really, manus. cutslarge extent, moody's and negative outlook for the region. and it is vastly expected, and in the price. manus: it is already trading in the price. we have opted out a telling us this morning, this is the story, the chair of economic development, talking $70 oil. i have heard people talking, but this is optimism gone awry, isn't it? haidi: i think that is optimistic. our basis now is $30 for some time. we think that oil markets are driven mostly by the margin of producers in the u.s.. and developing today, the state, i think the uae is really well positioned for $50. manus: and if we just circle the wagon a bit, the imf report, growth in the u.s., knocking up to 5% by 2020, let's talk about what this mean

manus: thank you.et's check in with other stories making headlines around the world. stocks at ainese two-month low after data shows a deepening economic slowdown. the u.s. also showing those. commodities less in shanghai. trying tors are sustain growth while cutting overcapacity. lastly, apple put $1 billion into didi and that helped boost valuation. alibaba and hang seng are also key investors. the iraqi central bank chief has told us that a possible that from the imf could unlock aid this year. the finding could help opec's second-biggest producer with finances into one with the islamic state. iraq is expected to receive $10 billion in assistance from the world bank with a further $5 billion coming later. asia's biggest aircraft has rejected from an investment fund for an ipo in hong kong. towardwill be sound investors, taking up to 52% of the base offering. is 100 million u.s. dollars for private equity firms will invest. this is bloomberg news. manus: thank you. more companies in the middle east a

manus? manus: david, thank you very much.ws, day two for the roundup of breaking banks. -- of european banks. is 920 4 million euros. the estimate was 765. international retail and financial services is a considerable lift versus last year at 300 million. in terms of a target, what are they going to do? they are targeting additional costs. first-quarter net income comes in at 6.2 billion. global banking and investor solutions comes in at 454, below last year's number. for commodities and currencies, this is the big one for a lot of multiplayer's. it is down -- it is up 17%. that is bucking the trend relative to some of their peers. it is a zero-sum game. there are winners and losers. ficc q1, stock up 17%. cost of risk, let's dig into this cost cut a little bit. next story.o my additional cost cuts, we will dig a little deeper and get that. the big number for this is ficc, up 17%. up 11%.rvice revenue let's move the agenda along and focus on fugitive indian tycoon vijay malia, who says he doubts he will face his debts. he sig

manus: great to have you with us.nne: coming up, everything can speak exclusively to bloomberg about china slowdown. the bank of japan's implementation of negative rates. you're watching bloomberg television. ♪ ♪ yvonne: larry think remains bullish on china. he says despite reforms china's debt remains high. larry: i would give the chinese leadership some of the best marks in terms of trying to transform their society. we in the fourth year of the plan. to reorient china wafer manufacturing, away from export dependency toward much more resilient domestic economy. a greater service economy. that is very hard thing to do. it takes many countries 50 years to do that. and they have recessions during the transition. the mac is saying -- the market is saying the china's dependency on debt and the rest of the balance sheet is a continuation of the unproductive state owned companies is not a good long-term solution. i would say is not a good time with long-term solution but hopefully it is a short-term remedy where we can get

manus: mckenzie today.om: india has agreed to invest half $1 billion in the stage and -- strategic force in iran. they're planning several other projects where hundreds of millions more will be invested in iran. it could be a symbol of cooperation between india and iran. it could pave the way to collaboration and other sectors. an egyptian aviation officials says egyptair flight a 04 did not lose altitude. that contradicts the greek defense minister who said the plane a graphical turns and dropped some 27,000 feet before falling off the radar. saysivil aviation ministry it made an emergency landing in 2013. after an engine overheated. ships and planes from six countries are searching for wreckage antibodies in the mediterranean area the united has changed is the way it calculates a key interest rate. what they need to pay to attract deposits. the changes already been implemented in many areas. the bank of israel has chosen to keep rates on hold at a record low. citing the strong shekel and falling consumer

i am manus cranny. one of the big themes we left last week, which opens the box of risk, where will the dollar goes? what are the most accurate forecasters is telling the market that this rally has left. we have the dollar marching higher, one of the most accurate forecasters out there is deutsche bank. the fed raising the specter of a june rate hike. june back on the table. butgreeing not to target, what you have here is the dollar rally beginning to turn. that is if japan is warning, still warning that the movements are one-sided and abruptly what does it mean? deutsche bank says it is just the beginning. they consider buying the dollar against the yuan, mexico, south korea. and there is movement in the markets as well in terms of positioning. we have gone from being net short for the first time a number of years to being net neutral. that leaves a lasting potential to turn higher. what if the fed really went into full engagement? here is the market. i want to take you back to egypt, the tragedy obvio

manus: thank you. let's talk about dubai.ouncing plans to boost tourism including waterfront homes, floating restaurants all here in the heart of the city. the development would cost $2.7 million -- 270 million dollars. let's take a look at this story. coming to the market. uni talk -- you and i talked about prices under pressure. do we need this? >> there are two schools of thought. dubai needs to create pretty much everything that has in terms of offerings to keep it fresh. and we do not have greenery like other countries. we do not have the huge mountains. we only have the beach and we have to create everything else from the world's largest tower and the biggest ferris will in the world. right now being built on a man-made island. they have to do it all. there seem to be too many ongoing projects. we also have them all of the world project and countless others. andhe mall of the world countless others. >> they are building the hotel rooms to come with it. they want to widen the appeal of dubai and make sure that dubai is o

manus: let's get back to rishaad.nning some vital breathing spaces after its middle eastern partners stumped up a new payment. the interest on these bonds on the due date when they didn't the last time? is this a sign that this dispute , this long drawnout dispute is over? not at all. they did make the payment yesterday. on the bonds. they didn't do it within the new. that doesn't mean the dispute is over. to indemnified for the payments before the next payments have been done. rishaad: how are they going to resolve this debt defaults. they will be speaking to bondholders later this month. moneyshould do have the to make the payments. they do haveit more payments due later this month. as well is in the months ahead. nomentioned they do have indication that there will be making those payments on bonds guaranteed by itv. rishaad: what is the investment community making of all this? >> they seem relieved about it. after the payment yesterday. you saw a big jump in those bonds. rishaad: thank you. manus: let's check in on

♪ ♪ manus: foil arises -- oil rises.di arabia says it will maintain near-record output and any freeze must include iran. rishaad: middle eastern governments are stepping back from remaining reserves by reopening access to bond markets. manus: and a glimmer of hope for india's rural economy. forecasters say the monsoon should be above normal this year. it is 8:00 a.m. across the emirates, 5:00 in london. i am manus cranny in dubai. salamat inam rishaad hong kong. welcome to "bloomberg markets middle east." manus: no-show would be complete without the news over the they have decided to change directions a little bit in what is happening to the oil markets. that's pretty much where we will kick off "bloomberg markets middle east." put it in context for you. what happens? a number of factors in play in deciding production. saudi arabian oil production is trending higher. will they go for more, as we go towards the next opec meeting? hale producers are rising, but it is on leverage and not profit. brent crude is rising. trade

manus. manus: thank you very much.the dollar rising, you've got the chinese involved in the yuan, but i want to show you something in the region. speculation -- the devaluation speculation is back on the agenda. what we've got here is the swap market. the difference between what the international market is telling you is on the red line. this is -- the international a move.is showing the differential between the two bank is -- between the two is the widest since january. that is when we had that other frenzy with the price of oil. the international differential is by 1.5%. let's have a conversation about the g-7, about saudi rial, and all the issues. cio joining us. welcome to bloomberg markets: middle east. guest: thank you. we heard juliet set up the g-7, but let's focus on the regional aspect. i have heard this speculated a gazillion times. the market could provoke some kind of reaction from the saudis. is a diwali ration and probable or just nonsense? evaluation is an probable or just nonsense? -devaluation probabl

manus: thank you.moment, angela merkel is on a mission, the chancellor has backed turkey day shirt support for the refugee accord. that is next on bloomberg markets middle east. ♪ rishaad: a quick round up of middle eastern stories. iran has no plans to join if reason oil production until the second half of the year or until -- or until exports returned to pre-sanction levels. iran is meeting opec partners in vienna next week. egypt is sending a submarine to search for the egyptair black box flight recorders. they have warned against jumping to conclusions about what happened. the egyptian president says all scenarios are still open. the flight crashed on thursday .n route from paris to cairo investigators said the plane sent messages that smoke in the cabin before losing contact. the energy minister spoke after meeting the saudi prince over the weekend. is interested in upgrading facilities. search the markets, here is heidi. someter: we are seeing issues, fourth straight weekly loss and seemingly sta

manus: good morning.at we have more money in our pockets because we are spending less on energy, that we have more disposable income. but there is this concern that the consumer is under pressure. you see us front and center at your till. talk to us about the british consumer. what are the trends? are we spending more? are we more reluctant? what are we doing in our baskets? john: i think the consumer has more money in their pockets than they did a year ago. on average, about 10 pounds more a month than they would have a year ago. i think all of the evidence points to them spending that money on some of the large ticket items. holidays, for example, and cars. unfortunately, not much of that money has come into the food retailing space. i do think consumers real more confident. i think they are catching up to the spend that they underwent during the recession. i think they are catching up on some of the big ticket items. let's hope, in the future, some of that filters down into the food retailers. anna: wi

manus: good morning to you. manus here. when i look at the performance in the emerging market currencies, to what extent -- i mean, it is about oil. you say it actually is not. there are other factors at play in canada, norway, but when i the ruble is oil. is still inextricably linked. it is a question of whether we can sustain these kinds of levels, isn't it? vasileios: sure. i think -- well, if we can't sustain these levels, it will depend to a large extent on valuations. at these levels, i don't see the valuations being stretched. as a matter of fact, and in line with pretty much what we have had since the second half of 2015, the dollar went simply too far. really extreme, over-valuation levels, mainly against the 210. atetheless, even when i look on the whole, although it is a bit of a dangerous game to treat emerging markets as if they were seven or 10 years ago, nonetheless, when i take a birds eye view, i don't see misp ricing and fundamental misalignment. anna: stay with us. we will pick up that conversation in jus

manus, back to you. manus: a bit of breaking news coming in.in tobacco industry assets worth approximately 1.8 billion euros, 1.6 billion pounds. that is probably somewhere around 180 million shares. this is a confirmation. o pull the ripcord. as we get more, we will bring that to you. anna, you have a very special guest. anna: ryanair has forecast earnings growth will slow this year, even as profit jumped last year. they expect earnings to rise by 13% this year after a 43% surge in the year three to march. airlines have cut ticket prices, depending on where you fly after recent terror attacks. let's talk with michael o'leary, the ceo at ryanair. tell us a little bit more about the year that is to come. michael, you are guiding the market lower, it seems. so, how weak is present going to be as the go through 2017? michael o'leary: the primary key driver will be lower oil. we were hedged at $90 a barrel. we are already hedged at $62 a barrel this year and oil prices are falling. i think the overall theme will pricing. we expect prices to fall by

manus?ink on what said, what an it be wonderful if china became the equivalent of what we can see in japan or in the west. 18 rebalancing story is an months story, or a five-month story and the confidence for you as the head of equities. had to take a long-term view of china. is it with cars, infrastructure, big engineering. is it rudimentary basic stuff, or do we get a little more sexy into the equities? >> i think we always need to tackle these markets with big policy shifts that need to be enacted, is not to focus on the top down view, but the bottom up. that is elegant unsuccessfully in europe over the last seven or eight years. europe is now only just emerging from crisis and recession. they are always the interesting companies within which to invest. china has about 3000 companies and you are going to find one or two winners in there. look at the world from the perspective of the companies. companies aren't the economy. sometimes, they are a difficult economic environment that spurs ec

manus, you got home turf? manus: we have indeed.ividend if you're a shareholder. 12.7 pence. -- ebitda,rofit of the top earnings. this is a growing business. this is in europe across the world. the ambitions of the ceo are well known. what are his next steps? that is a question will be putting to richard harpin. he is the ceo at home serve. we have that conversation. we have the swatch ex -- swatch exports. and little bit of german data. it is a tough day in asia. how is europe for the open? anna: it looks to be broadly in line with estimates. bring it all together is we are going to be -- the start of the european trading day, down .3% on the cac. down .3% -- .2%. -- .3%. we have a generally weak session come through in the asian market. the oil price is a little bit weak. .6% on the brent price. the index edging up ever so slightly as a result of these conversations that we have been having around when the fed decides to increase these interest rates. chancea more than a 50% that we get a hike from the fed in june or july. we are

♪ manus: you are welcome to "countdown." i am manus cranny. and edward. -- i am anna edwards. to the futures. manus: we are going to have a brisk open as far as european markets are concerned. in the u.s. equity markets, rallying the most in two months. we've got these features. london up .6%. oil near $50 a barrel. inventory is down by over 5 million barrels. the norwegians are saying that you are not going to see $100 oil anytime soon. dollar yen, goldman says keep face with kuroda. 125. treasuries, anna, you've got marks & spencer's. anna: we got the numbers from the u.k. retailer. implement and actions to recover and grow, closing at home. they will be reviewing their crawlspace. they are going to focus on shareholders returns. in terms of the numbers they are reporting, the four-year profit before tax, 600 million pounds. .4.8 tenths interesting to say they are going to focus on holder returns at one of the questions is if they are going to keep up efforts to reward shareholders yet go they brought back -- shareholders? that was one of th

manus? manus: let's check in on the other stories making headlines.lian president dilma rousseff has suffered a new blow as a senate committee recommended impeachment proceedings against her. there is evidence to try .ourself -- try rouseff there are no legal grounds for the senate committee will vote on friday with her to accept the report. the palestinian authority has suspended all cooperation with in protests that continued military operations in the west bank. rising tension along the border which saw gunfire on wednesday. the chief negotiators said the plo executive committee would redefine all relationships with israel including political, economic, and security. a state of emergency declared in alberta as a wildfire in canada forces more than 80,000 people to leave home. elise to 1600 buildings have been damaged or destroyed in fort mcmurray. will touch shell are among the companies reducing production in northern alberta. high temperatures are fueling the fire. officials fear a large portion of the town may be lost. injing has put a new weapo

manus is all over this one. ubs? manus: thank you very much.let's get into the numbers in terms of ubs. money is coming into the bank in the first quarter and america and they are taking additional responsibility to cut costs. this is what drives the heart of , $15.5 billion came in with a net income of 7.7 million swiss francs. wealth management, pretax profits. that is the wealth management number there in terms of that. they are taking responsibility for cost cuts. this is the big piece of news. the investment bank, pretax profit there up 253 million swiss francs. so, it is a myth on the net income numbers. the estimate was for 735 million swiss francs. the pretax profit was 178 million swiss francs. the wealth management pretax profit was expected to have a 20% drop. if you are a customer, the conversation is there on your top live, in terms of the rates. ubs says low rates and a strong franc continue to present headwins. -- headwinds. back to you. >> rba cutting. the ubs, as the trifecta of bank earnings. we hadof that earlier, the index s

manus: welcome. i am manus cranny in dubai. man.e: i am yvonne good see you. what do have today? manus: i will kick it off with oil but from a slightly different perspective.e. as i said to angie flirting with 50, it is a long dance and can it last that there is one market that has taken this rally to hurt. the intelligence valuation. it is rocking it. trading at $80 a barrel. that is what these valuations are saying. valuations have gone up by the legendary short sale -- much. -- that is way too relative to where oil is. flirting with that nifty 50, can it last? american oil and gas explorers, this is not popular when it was 80 or 100 and certainly not when it is at 40 bucks a barrel. when we talk out oil we see that this record amount of crude, this is the u.s. crude inventories. the data coming up from last week saw little bit of a pick downward. this is the first have seen in a month. this is the fourth drawdown this year. that he'se signal most of output that have been dropped in u.s. are sucking up some supply. let's take a look at it. how it is in the asia-pacific. thewn d

manus down in dubai.erstand you have written, laying of the details that brexit, in terms of economic shock would be. a lot of people might think it is all finger in the air in terms of the shock that might come. where do you stand on this? you would say that the brexiteers would be 4% bigger as an economy? how big a shock could it be? what is your estimate? mike: firstly, i'm not expecting any answer. actually, quite a number of the brexiteers are saying there is absolutely no doubt there will be a short term shock. some indicating quite clearly that what they indicate a short-term is roughly 10 years. that is something we a put on the table. there will be a shock. secondly, if you look at the overwhelmingly, every single independent review, whether it is the london stock exchange, every single one comes out saying there will be a shock not just to the united kingdom economy, but to the european economy, possibly beyond. and it will have short-term discussions on our growth. it is absolutely clear that w

manus: thank you. one of our managing editors there. what are the growth challenges here and around the world? our guest is visiting from new york. great to have you here. timely arrival. the imf is saying to buy is weathering things a little bit better than abu dhabi. give me your perspective in terms of the challenges for the region from a fiscal perspective. this region is tied to the oil cycle and we have seen oil prices come down and stay .own at pretty low levels having a little bit of a correction upwards but that is not a big driver of this region's economy. manus: the one thing we are seeing is vision 2020. it gives greater latitude for fiscal constraint. they could step up -- a step back a little bit. break the addiction to oil? >> the verdict is out and it will be for a while. this is a breaking development. people outside this region are still catching up on the story. what itng to understand means. it is a positive development. you to have -- you have heard about the diversified nature of

manus?ttention's turn our still to the part of the world. we will talk about china. consumer prices continue to rise. it was a healthy pace despite trading. narrowed morehat than expected. that go to stephen engle. i cut up with the chief global economist for s&p global and he said he didn't get some hard from these numbers. stephen: you have seen in the slowing economy, a firming of inflation. chinese officials, they hate and reflation. -- inflation. it is still well below the government target of 3% for the full year but it is at 3.3% for three straight months. coming from a low of 1.3% in october. now at 2.3% for three straight months. commodity prices have come up. the prices have gone up and food prices are up. food was up 7.3%. pork up 7% from a year ago levels. that might even be a concern. the government tapping already into its strategic port reserves to meet demands. there is an inflation. but, on the other side, of the factory gate -- deflation persists for three straight years. 5

manus: a softer dollar? >> possibly. manus: in terms of the oil story, you mentioned brazil.mpeachment rio, ising, the impeachment all priced in in brazil? >> no. i don't think it is fully priced. i believe that, however, we have seen a big rise from the low point. when you are at a low point, the percentage is great. but when you look at where we are headed to the previous highs, we have a long way to go. manus: how much more can we go in brazil? 100%, 200%? >> we can go up in brazil. manus: will you add money in brazil? >> yes. we are adding money in brazil. the other big opportunity is russia. close to us and many other investors, for the most part, because of sanctions. if sanctions are lifted, of course, this would depend on what happens in the u.s. in terms of the elections, then you could see a big surge in russian stocks. manus: you mentioned trump in the white house -- you mentioned shocks to me. trouble the white house. how much of a shock? >> at the end of the day, in spite of what he says, what he is able to do is out of the question because of the checks and bala

manus? manus: anna, let's get up to speed now with yvonne man.vonne: moore disciplining data out of china. the monthly gross domestic product tracker shows growth slowed to 6.88% in april, down from 7.11% in march. a drag on industrial production. meanwhile, retail investment ratings came in short of estimates. middle eastern oil producers, including saudi arabia and oman, had ratings lowered by moody's because of a collapse in crude prices. it is 40% lower than in november 2014, when saudi led a decision by opec to keep pumping and defend market share in the face of swelling global inventory. >> the fiscal reaction function of this government -- what we found, saudi arabia and oman and bahrain are more vulnerable to with a veryanges, high double-digit deficit in the next couple of years and a substantial increase in debt in those three countries. vonne: the norway will fund will attempt to join a class-action suit against volkswagen after the omissions cheating scandal. and they1.64% of vw, say they are acting to safeguard their holding in the c

manus: chris, i got a chart for you.rting point of you, you have to say looks like one could be on the way. the s&p rallied, we broke a trend. 18 session streak without a break above or below 1%. the longest stretches since 2014, do you want to reengage with u.s. equities in a significant way? chris: well, actually, for us we would rather be stuck with u.s. equities. we have reduced equities. u.s. equities are one of the ones which we think actually still a something going for them. a mentioned earlier, the u.s. has some quite favorable dynamics to get inflation back. they did have real negative interest rates, that is pretty good. big evaluation problem in u.s. equities. i think that is for a much in the shop window. i think it is important to watch the technicals. they're still gathering information. i take your point, i think it is still a bit early. we are still in the information gathering stage. we look at sentiment a lot as well. and maybe a bit too negative. anna: briefly, what a rate hike function of the bloombe

manus: we cover a broad range of subjects.hen it comes to opec the sense that i got from this particular minister is that what happened dohai it sets a very robust framework for going to opec in june. washe market share theory implemented by others coming down from 2014. this is happened already. now we see an uptick in the market. over 3 million barrels per day. you have to have strong investments. it seems that over the last two years 30% of these amounts have been never did. demand willou that be picking up. .he forecast we will see more stabilized markets in the future. the meeting of june 2 is coming for opec. determine our steps forward. some of the outages of production are a temporary thing. of course. .t helps i think that the forecast everyone has been talking about heading towards the end of 2016 should be the balancing of the markets between demand and supply. it came early only because of the fires in canada and the issues in nigeria and elsewhere. let's see the good side of the last meeting. -- i haven't seen tha

manus: there is push back. >> there is push back. manus: and the eu.s going to be a real challenge. >> i don't think so. look at the american situation as an example. they started a campaign against the gulf carriers in january 15. now in the middle of may, what has actually been achieved? we have increased our protection by son percentage into the u.s.; we got into orlando. we are increasing on the west coast, we doubled seattle, we increased in new york, and we have more coming. manus: is there a risk that they may push back more? point outching a where that pushback will kick in? >> if the track record so far is a measure, the answer is probably no. i think sense has prevailed. there are too many entities in the united states to support the gulf carriers -- particularly emirates. all the other people who have, as a result of this, stepped up and said this doesn't make any sense, we must let these people come in -- we're seeing the same for your. -- for europe. manus: you are saying that you are repaying bonds. the question on everybody's mind is why

manus: i am manus cranny, live in dubai. let us kick it off with what is going on. we are trying to absorb everything from janet yellen. the treasury market returned aggressively with pace yesterday. i want to show you the dollar. take a look back here over the years. go back to 2009, selling in mae and going away. that is not the case. the dollar has climbed 3.4%. best performance in may since 2012. this is relative to some of the other asset classes. the aussie and the yen are the biggest casualties to dollar strength. we are going to pick up on all of these greenback gains against the major currencies. i love the irony. except for the good old british pound. if history is anything to show itself by, selling in mae is not the trade of the day when it comes to the dollar. nejra: we are also going to talk about china. i have a chart that shows a little bit of jitters possibly. looking at csi 300 futures. we solve the stock index futures plunge. you saw the line drop for the daily limit. it snapped back in less than a minute. the second sudden swing to rattle traders

manus: would you shift it? to get a sense of the next move for kia. >> we are doing everything. kia is involved in so much with the market. we are doing it as per the book says. we don't buy an asset because it is a landmark. asset because it gives us our target returns. muchg said that, we are so -- we are available internationally. t of thosees, mos major cities, we have a good foothold. our interest now is within the infrastructure projects. -- iia has been actively think the last project, and it was publicly announced. the london city airport. and we have strategic partners looking for opportunities internationally. guy: manus cranny joins us now from kuwait. manus, what is the single biggest takeaways from this conversation? manus: the biggest take away is this. that man runs the oil ministry. he runs the economics of this country. my sense is doha was very constructive. we are underplaying the construction. he is optimistic about going to eopec in june. he is the chairman to the sovereign wealth fund. the

anna: manus> manus: david, question for you.eston is in the market is pricing of fed hike. the market is way behind what is happening with the fed. the market was seem to be way, way, way behind with the bank of england wants. that divergence, you think that will begin to close? i'm talking about specifically looking at what is priced in. the market is actually pricing in the probability, 40% from 2016.y, of a cut in david: we have a fork in the road coming up, as far as the referendum is concerned. under that scenario, you could be looking at policy back on the agenda again, spring next year maybe. late this year perhaps. your another scenario, could see an easing of policy. it is not surprising that the market is confused. the bank is confused. very hard to trade all that. very hard have a firm year right now. anna: david, what is going to be key? , you are looking at the vote split if there is any? are you looking for commentary from mark carney and company around brexit? what is going to happen to the market here? chris: the

manus, we have seen big reaction as she was saying. manus: we have. on the literate. -- lira. the lira dropping, after the political strife. back from the edge. you saw a record movement of money into turkey. days. drop 7% in four ba that is the story on the lira. let's talk about cars. tesla has revealed it can accelerate production. the founder wants to see a tenfold increase in the number of electric cars it makes by 2018. ryan chilcote has joined us in london to run us through the numbers. lofty ambitions. ryan: lofty. what he wanted to do already was effectively the sort of most aggressive if you will ramp up or ratcheting up production for a carmaker sense henry ford introduced the model t. that was the plan before which he moved up yesterday, by two years. the original was to get to 500,000 by 2020. good enough.is not a we are going to do it by 2018. to show you this chart, last year they produce 50,000. this year, they will do under 100. underear, to do just 300,000. 500,000 in 2018. the new goal for 2020 is one million. hurry?he in a he is an

manus: how much more can we go? mark: another 100%, 200%. manus: would you add money now to brazil? mark: yes. juliette: donald trump has repeated his claim that hillary clinton is using the woman's card to win the nomination for president. despite a backlash, the republican front-runner told fox news if she were not a woman, she wouldn't even be in the race. white househis last correspondents dinner, president obama made it clear who he thought was going to replace him. president obama: next year at this time, someone else will be anding here at this very spot and it is anyone's guess who she will be. [laughter] [applause] juliette: global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. find more stories on the bloomberg at top . guy: let's turn our attention to japan. bond yields slid to a record as the yen surged to an 18 month high. a lot going on. let's go straight to tokyo. kevin buckland is there with the yen pretty much under pressure. what are we watching next? we are watching very carefully the fact that maybe the tre

dubai,manus cranny in manus, think you so much.ea has its five-year economic plan to focus on energy and manufacturing. we have a look at how north korea has changed under kim's rule. the old economy still dominates in north korea. large factories churning out basic products like this copper cable maker in pyongyang. the company produces more commodities, but china has banned exports due to u.n. sections. it relies heavily on agriculture. ang, at least, new there have been notable changes. buildings have sprung up. there are more cars on the road. and there are growing choices of shops and restaurants. we got to ride in a city taxi operated by one of the country's government-controlled cab firms. even the public transport system even the public transport system has seen some minor upgrades. we are inside the pyongyang metro. it is big, it is grand, and many are reliant on it, but it isn't stillate, and they are -- are still relying on these old german trains. passengers can also now swipe in rather than relying on paper tickets. ba

let's go to manu raju and dana bash. manu, let's start with you.w many protesters exactly are there out there? >> reporter: probably about a dozen, maybe a dozen and a half protesters standing right behind me right here. folks actually mostly protesting over the issue of undocumented immigrants. of course, as we know, he wants to build a wall between the u.s. and mexico. he wants mexico to pay for it. and deport 11 million or so undocumented immigrants. what they're chanting is undocumented, unafraid, and you're hearing a pretty raucous, but peaceful protests i may add. a handful of pro trump supporters are here shouting back, creating a big you've raucous scene, which of course is commonplace in trump events these days. but you know, one of the interests things that republicans, one of the reasons why i should say republicans are somewhat nervous about donald trump at the top of the ticket is where ever he goes, these scenes are created. and for republicans who are up for reelection, they need the trump supporters to come out to the polls, but the

manus: would you agree that the market is rebalancing? hear what you are saying on demand and capital investment sides. would you use the phrase rebalancing? and by the end of this year, or the first quarter of next year -- outages ofme of the production are temporary of course. so, but it helps the price now. forecastink the everybody has been talking about, heading towards the end of 2016, should be the balancing of markets between demand and supply. it came only because of these, you know, the fires in canada and the issues and nigeria and elsewhere. manus: you say you are getting ready for the opec meeting. the world that we all thought there was good to be dramatic news, but never came to us. i must ask you, what is the probability, what you think is the proper ability, of the successful freeze of the june meeting? not readot -- i have sot before or seen a meeting much opec numbers. in the dialogue itself, i think it is a positive sign. it is a huge positive sign. this is why we started to see many people anticipating the drop of oil

>> manu raju speaking to senators on the hill. he's a fabulous reporter.idence and i know you know manu raju is a very good reporter. >> after 40 years in election, if you believe something, look in the camera and say it. don't do some anonymous, don't quote me. because that's wrong. if somebody has a problem, chapter, verse, what is it? i watched her handle a very difficult primary and one of the problems in life is everybody says, it's all this one's fault. it's that one's fault. or that one is contemptcontempt. we're all trying to make the best which is why, i know i have to stop, thank you. >> senator, thank you so much. appreciate it. >> thank you, senator. >> thank you also for joining us at this hour. >> "legal view with ashleigh banfield" starts now. >>> hello, everyone. i'm ashleigh banfield. welcome to "legal view." could a messy situation in new mexico lead to chaos in california? donald trump set to hold a rally in anaheim where protests are, again, expected. the police are hoping there won't be a repeat of the melee that was last night. and th

manu, what is the speaker trying to get out of this meeting with donald trump? what does he need to get from donald trump in order to go forward hand in hand? >> reporter: the house republican majority is his top priority this year and he does not want donald trump to make it harder. 30 seats need to foot. if not, democrats take the majority he wants. he said the party can unite behind shared conservative principles. he was asking in the press conference today whether or not they could get behind certain ideas given they disagree on a range of ideas from immigration to trade. he said it's not about policy ideas but getting behind principles. now, i was talking to a lot of house republicans who actually are concerned at paul ryan's approach saying he should get behind trump because that will lead to unify. >> i find it interesting with the statements made on cnn saying it's donald trump's job to unify the party. mr. speaker, you're arguably the highest ranking job in the nation. what's your job? >> reporter: now, when i asked paul ryan at this press conference, w

manus: a summary enjoys the hunt for egyptair flight recorders.

manu raju is live with me from washington. i see that smile on your face, manu.have been doing a lot of reporting about that senate race specifically. and for our viewers they should know that marco rubio, he spoke with jake tapper, this was before donald trump seemed to jump on the bandwagon with the tweet run, marco. what do you make of what rubio said? >> well, it's a shift, kate, and it's a notable shift. remember, he shut the door firmly when he was running for president saying he would be a private citizen if he lost the white house. but in recent days republicans have really started to panic about the florida senate seat. party leaders see their candidates there as flawed. they haven't been able to raise much money. it's a very, very expensive state. democrats are spending $20.5 million already. those candidates are not really well known. the republicans have to spend tens of millions in other states to keep the majority. so actually yesterday the pressure got really intense. majority leader mitch mcconnell told his senate republican colleagues at a privat

stand by, manu. in our e-mail box as you were talking, we got a joint statement from house speaker paul ryan and donald trump. that headline in itself is interesting. a joint speaker, it's long but i think i should read the whole thing. the united states cannot afford another four years of the obama white house which is what hillary clinton represents. that is why it's critical that republicans unite around our shared principles, advance a conservative agenda, and do all we can to win this fall. with that focus, we had a great conversation this morning. while we were honest about our few differences, we recognize there are also many important areas of common ground. we will be having additional discussions but remain confident there's a great opportunity to unify our party and win this fall, and we are totally committed to working together to achieve that goal. we are extremely proud of the fact that many of millions of new voters have entered the primary system, far more than ever before in the repu

manu, thanks very much. the bernie sanders campaign manager had rather tough words for the chair of the democratic national committee. debbie wasserman-schultz accusing him, of quote, throwing shade. in a few minutes, i speak with the dnc chair and talk about those comments and the rift inside the democratic party right now. also today, donald trump meets with one of the most respected elder statesmen when it comes to foreign policy. we're talking about the former secretary of state, henry kissinger. take a look at this. a live picture outside of henry kissinger's office in new york city. the meeting comes on controversial comments from trump about potentially meeting with kim jong-un. here's some of what trump had to say in an interview with reuters. >> i would speak to him. i would have no problem speaking to him. at the same time, i would put a lot of pressure on china. because economically, we have tremendous power over china. people don't realize that. i would speak to him. i have no problem with speaki

that's what manu and i were just talking about. it is certainly a hurdle but there is another big one that donald trump is going to have to overcome. follow the money, folks. because he's going to have to ask for it. how is he going to win over the gop's most powerful donors and then how is he going to share it with all those down ballot people that say they need it maybe more than he does? we've got that conversation coming next. try zyrtec® for powerful allergy relief. and zyrtec® is different than claritin®. because it starts working faster on the first day you take it. try zyrtec®. muddle no more®. i'm spending too muchs for time hiringnter. and not enough time in my kitchen. (announcer) need to hire fast? go to ziprecruiter.com and post your job to over 100 of the web's leading job boards with a single click. then simply select the best candidates from one easy to review list. you put up one post and the next day you have all these candidates. makes my job a lot easier. (announcer) over 400,000 businesses have already used zip

manus: we have one of the biggest telecom players in thailand.lln in, get to grips with what's going on with one of the most demanding markets in the middle east in terms of data, what's going on in that world, how does this man see vision 2030? ceo. the we also caught up with the uae , 50 was old and passe and 60 is the new 50 in terms of oil markets. the saudis have arrived in vienna. this opec meeting is one with a bit of slacker in change. there is a new man in town and he is going to put his stamp all over this meeting. we also catch up with the latest changes on netanyahu's government. what does it really mean for the middle east politics? that's a state of play. a lot of telecoms, oil, looking forward to it. angie: and we are, too, of course. thanks for that. we are watching for it. that's it for us on this edition of "asia edge." a lot more coming up in the middle east. ♪ juliet: -- manus: oil is headed for its longest stretch of monthly gains in five years driven by output from saudi arabia and canada. hsbc starting a debt management off

manus, it is good to see you.ou can looking at the oil markets, different points out into the future and they tell you different stories about how much we should buy into this rally in oil prices. manus: absolutely, if you think about what's driving that rally look at the dollar, back at level since june of last year. -- theyi's art reducing are just squeezing back but you're right i have a chart. anna i know that you love a chart, let's take a look at it. it's the front month price of oil which is the upper line. west texas intermediate, the front contract on this, up she goes, up she pops. it's a bit cliche but that is the road she is traveling. mario draghi likes a five-year five-year, this is the five-year forward. the price of oil five years forward. wti up 21% this year. five-year forward pricing is down nearly 3%. so the elongated part of the market is reflecting that lower for longer. suction said that the market -- socgen said that the markets got slightly ahead of themselves. this all comes back to the p

>> manu raju, thank you for jumping in on that last little moment. we appreciate your reporting too, mj. all sorts of new things to talk about and the best people with money, party, and principle. trump campaign advisor, kayleigh baumgardner and tara, i'll start with you. did you just hear what ted cruz just said? if that changes, is it possible there could be any kind of change that would affect what ted cruz is about to do? >> i don't think so. i mean, it would have to be pretty catastrophic and we have yet to see that come from donald trump at this point. probably said about two dozen things that should ended most people's presidential hopes but he seems to have moved forward on those things. so i think this is really more about ted cruz not releasing his delegates because the party platform is something that is really important and that still has yet to be decided as we move into the convention in july. and they want to make sure that there's still republican conservative principles inside the party platform based on the way donald trump flip-flo