meaning, what takes place in the middle east never states and middle east. so i would keep that heavily in mind and i would then pose a question to each of you more specifically. tzachi, would you think a reaffirmation of the bush drawn letter be something that could be of interest to the prime minister when he comes? it would be an achievement but it also sent an important signal about and an understanding on the u.s. and israel as a relates to some activity, and that letter itself has implications for israel might approach the settlement issue. and itamar, given the interest that you have raised in the valley of the europe peace initiative in effect what to talk about with regard to kind of quit quiet understandings, possibly three-way understandings, where would the issue of the jerusalem embassy fit into that kind of conversation? >> the issue of? >> the jerusalem embassy. >> before you get into the details, for those who are listeners who are not as clear with the bush letter, was written in april 2004. it was at a time that prime minister sharon wanted

it is a very, very frightening year, when it comes to the middle east.ill flow to the sides of the middle east. it is difficult to tell. but at least in syria there is some progress, here. it could be we see less bloodshed in syria in 2017. but, as i said, islamic state is a monster, a huge monster. they managed for the last two or three years to recruit a lot of people. we can see what happened in germany, they declared responsibility for the attack on the christmas market, and also they declared responsibility for other atrocities. it seems, unfortunately, we will see a lot of terrorist acts somewhere in europe, but also in the middle east. it is sad to say that, but this is what we can see, 0k, what i can see in my crystal ball. 0k. well, in that case, i think we will leave 2016 behind and hope for a better 2017. that's it for dateline london's look ahead to 2017. you can contact the programme on twitter @gavinesler, and you can argue with our guests, if that's the way you want to go. we are back next week at the same time, please make a date with dat

most americans have forgotten that prior to 1980 the greater middle east wasn't on the military map and we didn't have the regional command to fight terror, we haven't made all the arrangements for bases. it's only after carter's statement the pentagon begins to move its priorities and is now prepared for the armed interventions in the region.n >> you also talk about the fact that prior to that, very few lives lost, american militarysti lives lost. after 1990, nearly all. >> sadly to someegree since the end of world war ii the military has been pretty darn busy. certainly since world war ii we've been prepared to fight for europe even today we still have substantial forces in europe. after world war ii we were prepared to fight in east asia and have fought before 1980 pretty substantial wars in asia one in korea and one in vietnam. we haven't been fighting that we are prepared to fight in the islamic world since 1990 strikingly virtually every american soldier who's been killed in combat has been killed in that part of the world and i believe it's something americans should be more atte

it takes place in the middle east, every state in the middle east so i would keep that emily in mindnd i would then pose the question to each of you more specifically, would you think a reaffirmation of the bush drawn b something that could be of interest to the prime minister when he comes? that would be an achievement but would also send an important signal about understanding on what israel's relationship is with activity and that letter itself has implications for how israel might approach the settlement issue. and given the interests that you have raised on the value of the european initiative, and in effect what you are talking about with regard to my understanding possibly a three-way understanding, where would the issue of the jerusalem embassy fit into that conversation? the jerusalem embassy. >> before you get into the details, for those of our listeners, who are familiar with the bush letter , that was written in april 2004 at a time that prime minister sharon wanted to drop back. he found he could get no pre-quid pro quo from the palestinians will be purchased president b

. -- >> takata bloomberg markets middle east. are seeing another gains of middle -- the nikkei not looking great in the morning session, not surprising given the strength of the japanese yen throughout the week as we see the dollar retreating for a second consecutive session, standing 100.42. hugee the trump trade, the trade that has been going on since the election on the yousef: line. yousef:it is about the u.s. dollar. it is about the incoming u.s. administration. let me show you the key u.s. asset classes. we have put up the u.s. dollar and added the benchmark 10 year treasury yields. i have highlighted this. this is what happened when the trump press conference started. that tells you the story about the amount of anxiety in the market. a lot of investors felt less down. they were hoping to see specific details. that did not materialize. we also had the 10 year treasury 2.5. with the operation of central banks accounting for 70%. that is the highest level since august. i love what the head of global strategy at td security a

it is a very, very frightening year, when it comes to the middle east. is it will flow to the sides of the middle east. it is difficult to tell. but at least in syria there is some progress, here. it could be we see less bloodshed in syria in 2017. but, as i said, islamic state is a monster, a huge monster. they managed for the last two or three years to recruit a lot of people. we can see what happened in germany, they declared responsibility for the attack on the christmas market, and also they declared responsibility for other atrocities. it seems, unfortunately, we will see a lot of terrorist acts somewhere in europe, but also in the middle east. it is sad to say that, but this is what we can see, 0k, what i can see in my crystal ball. 0k. well, in that case, i think we will leave 2016 behind and hope for a better 2017. that's it for dateline london's look ahead to 2017. you can contact the programme on twitter @gavinesler, and you can argue with our guests, if that's the way you want to go. we are back next week at the same time, please make a date

of course we have the opening of the markets in the middle east in recent -- middle east very soon.ake us through what we should expect. >> here in the middle east we have a mixed picture in terms of trading. we have the dubai stock index down over 1%. abu dhabi stocks were probably the biggest losers, down 5.5%. then if we move onto currencies, you were just mentioning the u.s. dollar, of a post important importance to those in the region. the dollar not gaining traction, trades come trump back. >> the dollar losing ground, the japanese yen strengthening. let's look at what this means for equity markets. we have details on that. >> it is on the back of that dow, isn't it? regional stocks higher for a second consecutive session. the asian pacific index is holding at levels we have not seen since july 2015 strong movements from japanese equities, led by mitsubishi on the broader topix index, which is also higher for a second consecutive session. hong kong is seen good financial news from retailers ahead of the lunar new year. noting, stocks in thailand up for a fifth consecutive sess

yousef: that is it for best of bloomberg markets: middle east.e covering earning season across the region and we will flesh out the conversation with the managing director at the national bank of abu dhabi securities. we will be right here for the start of the trading week in the gulf. sunday morning. on bloomberg television. . am yousef gamal el-din do join me them. this is bloomberg. >> it is 1:00 p.m. in hong kong. i am rishaad. the offshore yuan pairing its record weekly rally. the exchange rate dropped 0.5% in hong kong this morning after a 2.5% surge. clients itvising could be the time to bet against the yuan. china might step up scrutiny of u.s. companies with tensions against donald trump. if the tycoon takes punitive measures ast

in terms of the middle east, yes. one of the changes in the region during this century has been the decline in its importance. to a large extent because of the declining importance of middle eastern oil and the rise of opportunities. and part of the underlying reasons for the american people away from the region has to do precisely with this. >> thank you. about europe, i'm in charge of some of the context of the relationships between the israeli and europe. i represent israel in the discussions with european union. and i'm going to attend this special meeting dedicated to those relationship in brussels next month. i just came back from a meeting in barcelona with the higher representative in the european union. and we always emphasize our need and readiness and hope to have very close relations with europe. europe is our best trade partner. we have so many connections with so many countries in europe. and we would like to see the european approach to the middle east conflict in a more balanced, balanced way. automatic

middle east before 9/11.and we had traces of nano Ãin the twin towers. and it led into the heroin epidemic in this country with our soldiers in the heroin fields being guarded three times as much production now and we scratch our heads and wonder why. >> okay thank you mike. changing topic a bit. [indiscernable] >> he is worried about that the middle east ? >> i think we all agree it is a troubled area. in against is something that another thing you can grade president on, obama and the next president as well. there are three parts of the world where the united states does have a vital interest. where a large scale, the regional conflict in that part of the world actually is something that would be of such disruption that it would really impact us. maybe, maybe not directly but certainly would impact our vital interest and potentially lead to a larger scale war.in those three parts of the world a europe, the middle east and asia. and so i think when you're looking back to president obama and saying how well h

[indiscernible] guest: mike is worried about that the middle east is it trouble. that is another thing you can obama andidents on, the next presidents. there are three parts of the world with united states does have a vital interest, or a large scale, regional conflict in that part of the world, would be something of such disruption and the impact this, not directly but certainly would impact vital interest and could [indiscernible] in those three parts are, europe, the middle east and asia. when they look back at president obama and you see how will he did look forward, what are the things you want to evaluate and are you hoping three peace and stability to europe, middle east and asia question mark data on have to be the land of milk and honey because they have had is andays, but there expectation that everybody in the middle east has to be happy and there cannot be anyone shooting anybody anywhere, but are you reducing the potential for conflicts to spin out of control? that i think is an important task for the united states. guest: a really important point and

♪ >> welcome to the best of "bloomberg markets: middle east."e have just seen the first week of president donald's presidency and the protectionist tilt is rattling investors around the globe. is theming up, kuwait latest country from the gcc looking to tap the global bond market. we are from the finance minister about their expectations. expectingnces passenger growth to be the slowest in a decade. and, saudi arabia said it would work with the trump administration to contain iran and make sure it would stick to the nuclear agreement. we spoke to the head of middle east research for credit suisse about trumps impact on saudi arabia and the rest of the middle east. >> is trump going to deliver on the promises for fiscal reform and slashing taxes? if you look at the first 48 hours, all steam ahead. >> i think he will make good progress on some of the promises he made. the difficulty is knowing which are a priority in which he will really follow through. foring taxes, the potential allowing u.s. companies to repatriate cash, deregulation, these are

back then, it was the middle east. and the middle east has been known as an area of conflict and nobody really had their eye on it. that is how we were able to take the market quickly. haslinda: the middle east and lingerie, they hardly go together. i mean, when you talk about it, the lingerie business, you do not think of the middle east. how has demand been? what are the women wanting? christopher: well, our -- the lingerie business -- our lingerie business is not what people think of. our number one color that we sell is nude and our number one bra that we sell is a pure, basic, everyday bra. so that is how lingerie, or our lingerie, works in the middle east. it is not the idea that people have that lingerie is only about fantasy and seductiveness. it is an every day basic need. that is the strength of k.lynn. we sell our bras as a basic eauty product. as women do their hair, or their makeup, they also must have the right bras to feel comfortable during the day. and that is how we are able to grow, despite having a

morgan: they are talking about the middle east. what we have seen this administration do for the past eight years, don't -- for someone who lived in the middle east and saw chaos, don't lecture me on what this administration should do because i've seen what the past eight years didn't do, it caused this chaos and that's why we are in the situation. >> the u.s. government plumber has a butt so big it's never going to find the leak. you brought up angela merkel and the mistake that trump isn't making is of let people in. you didn't help anybody, be better off using your money, germany is rich, we are rich, help them there. that's a sustainable policy. dagen: that's actually part of trump's plan. thanks, guys. cashing in just over an hour from now. eric, what do you guys have coming pup r. >> president trump signing executive order to define sanctuary cities, would plan help stop i leg aim immigration? plus a new add shows liberals cursing at president trump, didn't they bash him for using crude language? more proof of liberal hypocri

you are watching "bloomberg markets: middle east." i am tracy alloway. i am yousef gamal el-din. we are looking at duty-free at the airports. how will a strengthening dollar and a more protectionist america affect this. joining us is the ceo of duty-free. thank you for coming. >> good morning. yousef: let's kick off with the big news, donald trump, how it will cloud the output of business. a more protectionist world that could derail the growth target that you and to buy has for more -- --ai has come up or more >> it depends on what mr. trump's policies do. for the moment and the past couple of years, the u.s. dollar andbeen strong and the euro sterling has been week in comparison to the dollar it has affected business. we would hope, whatever happens with the new presidency, that it regenerates the value of the euro and of sterling, because that is where a lot of our business comes from. what: on that new -- note, are the factors that will impact growth this year. given uncertainty around the global economy and various currencies. colin: the important t

welcome to the best of bloomberg markets middle east. you're the best of stories driving markets in the middle east. united arab emirates says oil around $50 a barrel will not cut it. we are in abu dhabi for the update on the mini opec meeting. there is no let off for turkey's beleaguered currency. we look at how the political quagmire, central bank in action, and higher than expected inflation have combined to make a lira the worst-performing currency of 2017. two of the world's biggest bond traders are warning that rising treasury yields good signal the end of the record three decade rally. we will go to the charts you can pull up on your bloomberg. what you are looking at here is your bloomberg trend. u.s. treasury total return and the s&p 500 total return index all the way back to 1988. that is the bottom panel. that is your positive and negative correlation. great to have you back on the program. debate a philosophical over whether we are seeing a great rotation out of equities and into bonds. they're saying 3% is the last line in t

the rest of the middle east. >>'s trumpet going to deliver on fiscal reform -- is trump going to deliver on fiscal reform? it seems like full steam ahead. >> re-think he will make good progress in some of the premises -- i think he will make good progress on some of the promises he has made,. the question is which will he make good on. deregulation, and others, these areas where we have high confidence. talking about foreign policy and trade, its art get g little more difficult. there is a lot of aggressive talk. we feel that what is more likely is for a more pragmatic outcome to come through. simply because, once you start engaging in trade restrictions, there is a big risk of retaliation. >> let's talk about saudi arabia. we just got their fiscal budget. saudi arabia is historically at how the saudi government has consistently overspent every year between 2000 and 2015. 2016 is the only exception because of low oil prices. given that we are seeing this rebound in the price of oil, do you think we will see anoth

. ♪ >> welcome to the best of "bloomberg markets: middle east." i am yousef.onald trump takes over as the 45th president of the united states. the greenback made a comeback over talks of another rate hike, foreshadowing optimism. the opec output cuts holds and u.s. supplies hold. saudi arabia promises to reduce the overall tax rate paid by its national oil company to make the upcoming ipo more attractive. said that the company was committed to a 2018 listing. no plans have changed since we talked last time. it is still the plan to list in 2018. >> in the second half? >> i would say in the second half. >> what do you need to do between now and then to make the flotation work? when will you announce the further flotation plans? guest: first we will be selecting the banks that will be helping us. comeully that will sometime soon. that will be followed by selecting which market that we will be listing in. we are lifting in different markets for listing. in addition, it will happen in saudi arabia. reporter: you mean, canada? london? guest: we are definitely lookin

our middle east reporter has more. presidency is going to be a big issue for 2017 for a lot of sectors. specifically for iran. in the campaign leading up his election he was critical of the iran deal the obama administration made just about a year ago. there is a lot of push in the u.s. for additional sanctions over things like terrorism financing. how that shapes up is going to be a big issue. is ancretary of state oilman. he has not been a fan of sanctions. we will have to see once he gets into office and has sanctions as a tool how he decides to use that. trump has been critical of the fact u.s. companies can invest in iran while foreigners are able to. asian companies, russian companies. there is going to be a lot of moving parts. bemp is not going to favorable to that deal and he won't encourage investment. there is a lot you can do without trashing the deal though make it harder for people to invest in iran. that is going to be a hurdle going forward. >> what is this list of names tells about the company? challen

the middle east before 9/11. then it came. then we had traces of nano fail might into those twin towers. led it led to the heroin epidemic in this country with on the soldiers, and guarding her fields over there, three times e as much production now. we scratch our heads and wonder why. >> okay. thanks, mike.e change the topic a bit. >> no, no. mike has a point. he's worried about the middle east is in flames. which i think we all agree the middle east is in a troubled area. that gets to something -- and another thing you canan grade oe obama and the next president as well is -- i think there are three parts of the world wherelarg the united e states does have a vital r interest, where a large-scale destabilizing regional conflict in thatpa partct thi of the wor be of such disruption that it would really impact us.pact vit maybe not directly, but certainly would impact our vitae interests and potentially could lead to a aeuro larger scale wa. those three parts of world are europe, the middle east and asia. i thin

yousef, what are things doing in the middle east?ousef: this part of the world is just under two hours away from the opening of the emirates market. time, moreal earnings are expected to trickle in. this is how the trading day shift up. outside pressure from blue-chip stocks. look at what is happening in abu of 1%.up 2/5 speculation around those bank stocks, possible mergers and acquisitions. owl -- tadawul bouncing back. egypt, record highs. warning investors to look out for the key currency crosses as well. the egyptian pound holding relatively steady. the u.s. dollar benchmark for down.art of the world, the turkish lira, a remarkable rebound after the comments we got from the turkish president and the south african ran there. let's check in on the world. kicking off with the "sunday times," the u.k. prime minister will outline lands for a hard brexit on london on tuesday. -- outline plans for hard brexit in london on tuesday. may's speech will be closely watched by markets and currency traders who could see her comments as a trigg

national interest in the middle east. sanctions have relatively had no impact on putin, nor will these sanctions either. >> okay. what about the u.n. resolution, not vetoing that u.n. resolution. you combine that with the sanctions and that action on the u.n., can you recall a transition, a presidential transition where an outgoing administration was taking such an active policy role that in a way complicates -- that certainly complicates things for the next administration? >> well, it certainly does. and i think it's disappointing i think to watch this behavior of an american president. this is his smallness involved in this. american presidents should have a global view and stature and get beyond personality. this is about his personality differences with netanyahu and indicate that -- to let that run into a major policy decision here where we're punishing the only democracy in the middle east, our number one ally in the middle east, and within 30 days of departing his administration, this is the outcome. it's absolutel

that is it for "bloomberg markets: middle east".from around the world next. this is bloomberg. ♪ >> women update of our top stories. the chinese economy further strengthening. of manufacturer up, ahead predictions of 50.9%. the highest in nearly three years. totrong and 2016 -- end 2016. of 2065 was in may halted due to abnormal fluctuations. this is

that is all we have for this edition of "bloomberg markets: middle east".ll be back with the headlines at the top of the hour. thank you for watching. this is bloomberg. ♪ of the topn update stories. the u.s. what an emergency meeting of the u.s. council claiming iran has tested elastic muscles. fox news reporting the launch. netanyahu says he will proposed renewing sanctions on tehran when he meets president trump next month. trump has fired the acting attorney general after she said she would not defend his travel plan and questions the legality. haswhite house says she betrayed the doj. the bank of japan kept stimulus

in the middle east.p byer, we give nothing testing whether or not this problem can be solved peacefully. , a worst-case scenario, iran violates the deal, the same options that are available to me today will be available to any u.s. president in the future. and have no doubt that 10 or 15 years and now, the person who holds this office will be in a stronger position with iran further away from a weapon and with the inspections of transparency that allow us to monitor the iranian program. host: we are asking you to share your thoughts when it comes to foreign policy, what his compliments or failures have it. from twitter, sigmund said we have two wars and additional six conflicts adding that everything the president has touched in the middle east has affected the islamic jihad. says that twitter and facebook had more influence on foreign policy. here is andrea. caller: i am an african american female. i feel that obama was the worst president we have ever had. the country is more divided. general,s attorne

let's focus now on the middle east. an with optimism that the oil market would rebalance by the middle of 2016, but early on, producers found themselves facing a supply glut and a price plunge. >> more than $100 billion wiped off the 61-company bloomberg world oil and gas index as it hits the lowest level in more than a decade. wti crude now at a 12-year low. mark: are investors close to throwing in the towel? i see hedge funds have cut their bullish bet to the lowest since 2010. i mean, are we close to that point or not? >> we are starting to see the conditions for a bottom. but we are not there yet. >> what kind of oil price do you need to break even? >> we -- at 60 we can balance the books effectively. >> if you had to put your money on a number -- >> which hopefully we don't. >> the price at the end of the year would be what? >> 48. you can come back and kill me because i'm sure i will be wrong. francine: the energy ministers of saudi arabia and russia agreed to freeze oil production in a meeting that ended less than

john: trump in the middle east is next.ll be right back. ♪ no area of the planet will test donald trump more and more quickly than the middle east, where the next leader of the free world will inherit the nuclear deal with iran, the civil war in syria, and the ongoing conflict in israel. joining us now are two people who know the middle east well. welcome to you both. i want to start talking about israel, where there has been a lot of activity during the transition. you were very concerned about donald trump's instincts. based on what he has done since he has one, how are you feeling about his policies towards a country you care a lot about? far, so good in terms of a real-time issue, managing the u.s. response, trying to shape to the resolution that the u.s. abstained on at the united nations security council. part of why some of the whytries pulled back, another country, the u.k. actually made a blistering criticism of what secretary kerry said about the middle east , this was all in response to trump and trying to maneuv

♪ welcome to the best of bloomberg markets: middle east.riving major stories headlines from the region this week. oil show some signs of life. the united arab emirates says oil is around $50 a barrel won't cut it. an update on the mini meeting. there is no let up inside turkey's beleaguered currency. we take a look at how the political quagmire and inflation have combined to make them the worst performing currency of 2017. to two of the world's biggest bond traders, a rising 10 year treasury yield could signal the end of the sectors three decade rally. in seniore will bring managing director. which are looking at is u.s. treasury. unhedged on u.s. dollars and s&p 500 total return index all the way back to 1988. great to have you back on the program. this philosophical debate 3% isr we are seeing -- the last. guest: i have been hearing a lot of this. we talking about the international markets. 2.6% healed. we see is whenever there is uncertainty people that to look more secure. i think what people are saying aboutple are uncertain where the

across europe, the middle east and africa. i guy johnson. guy: let's begin with the middle east.pledges is found himself facing a supply glut and a price plunge. >> within $100 billion has been went off the 61 company bloomberg world of oil and gas indexes you. withts the biggest low in nine a decade. >> pick-up throw-in in the towel. hedge funds have cut their best. would close to that point? twice we are seeing the conditions for a bottom. we are not there yet. >> look on oil first you need to break evening. >> at 60 we could balance the books effectively. >> the press at the end of the would be what? tortilla. you can come back and kill me because i try will be wrong. >> this meeting ended less than an hour ago. the market work of little disappointed because it would a cut? >> it was too much to ask for the first meeting of the two countries. at least publicly. producersit is -- oil agree at we are seeing crude tumbling this morning. >> what happened? was it fixation? i were going to have an agreement between the two countries? who is going to give it first? >> it requires a d

professor when you say greater middle east what do you mean? >> i'm talking abou >> i'm talking about a large swath of the islamic world. i could have called america's war in the middle east but it seems to me to use that narrow e term understates the expanse over which we have been involved and includes places like afghanistan which doesn't fall in what we think of as the middle east and frankly now it includes large parts of central and western africa. >> why was the year 1990s at? significant? >> 1980 is the year that the jimmy carter promulgated the carter doctrine that was a statement that said that the persian gulf is vital to the national security interest and more to the point equates the united states considers worth fighting for. we've been involved so long now most americans have forgotten that prior to 1980 the greater middle east wasn't on the military map and we didn't have the regional command to fight terror, we haven't made all the arrangements for bases. it's only after carter's statement the pentagon begins to move its priori

connection is for all the troubles in the middle east, people have missed the intersection of technologynd middle eastern contracts. oil makes money, money makes stability. revolution iting is making oil prices low. it is good here, but in the middle east and lets bad guys talk to each other. automation, robots, puts countries with young people -- unemployment is worse. technology will make the middle east more unstable. laura: where specifically in the middle east to you see that the worst? saudi arabia, there won't be jobs, creating fertile grounds for isis recruits and unhappiness. laura: thank you. now to a happier topic. a dinosaur on the move. if you have ever been to london's natural history museum you have seen dippy the diplodocus. she has been there since 2005. now she is going on a year-long tour. taking her place. -- blue whale is taking her place. reporter: for those queuing today, there is a good buy. the first sight of dippy has been a lasting memory for so many children. the natural history museum estimates 19 million people have stood here and looked up at dippy. it is n

welcome to "bloomberg markets: middle east".isk off sentiment, everyone crowding the dollar again with the index up .4% and the japanese yen strengthening for a session.secutive a different story for the british pound after breaching that 1.20 level for the first time since the flash crash. that happened during asian trading, so we have to keep an eye on that british currency. yousef: it is dead center in focus. that is what we can say. the british pound and the beating it got off reports that theresa may is seeking to leave the single currency union there to regain control of the borders for britain. this is the chart that puts it into perspective. this is a story that goes back to june 2016, every time theresa may spoke, the pound lower. vote, then theresa may takes power, then their reaction to the speech in october, reports they will seek a hard brexit, the latest number there, again to the downside. the kleins of 19% against the u.s. dollar since the decision to leave the eu. downside potential, but let's look at the market

welcome to "bloomberg markets: middle east".isk off sentiment, the dollar gaining, the yen trading near one-month highs, but the question comes to gold, now rowling for a seventh rallyingve session -- for a seventh consecutive session, but investors in a tricky position there. is in thee excited he gold trade. they are not expecting that much. gold has rebounded 6% since december lows. let me show you the chart you should pull up on your bloomberg, the implied volatility for that gold trade, two-year low, your line in white. we have added the 10 year breakeven rate, the key gauge for inflation. and the world,st but it is a de-correlation, the biggest of urgent sense december 2014. as the data shows, expectations relatively neutral given the talk we are seeing in this market. we are seeing markets a ia, confused across as trading all over the place, although the regional benchmark declining. .2%, hang seng gaining four point first -- gainingp .2%, hang seng as well. intohaven plays coming action. everything has to do with that br

let's go to the middle east. if you look at some of the reaction, are people still confused about who can travel and who cannot? is there still chaos at airports? reporter: i would not describe it as chaos, in a sense, francine. dubai, abu, and :00 are used as hubs to reach into the u.s. from some of these countries. it is not that with the kind of quantities that would disrupt air travel. as of things, no disruptions at airports. in terms of the broader reaction, uproar in the countries affected. we heard from the iranian news agency, describing this as an insult to muslims, saying they would take reciprocal action. this raises the specter for a possible tit-for-tat, with serious implications for the nuclear deal they just signed in 2015. but francine, for the rest of remarkablyt has been quiet. this is seen as a domestic security issue. these countries are already facing intense scrutiny. the citizens of these countries face intense security restrictions while coming to this part of the world. or the gulf leade

. >> doesn't bother you that he said somalia was in the middle east? >> somal geographically in the middle east but it is in the heart of the world that he is concerned about. and i think properly so. all the way through the northern parts of africa into the middle east and afghanistan and into asia, is a very broad problem that frankly is bigger than the geographic bounds >> is it difficult for you, as to constructively criticize him? >>you think as much as we wish him well, constructive criticism will make this man better and the people around him. i find it hard to see the president-elect somaliais in the lease. there's a certain discipline that is required here. for me, it's about the integrity of people watching . sometimes there is a need we have to be critical in a constructive way, and in a fair way. >> i don't think it's a big deal. i am perfectly i'm discernible . >> tell our audience why it's not a big deal. >> it's the kind of gaffe that can be made when you are talking about a problem in a larger sense. i think what he was saying as i unde

and what do you think the effect will be in the muslim middle east?i mean, it's very toxic, fareed. its very poisonous. i mean, if trump does act on his promises, in preventing muslims from as you said several countries from entering the united states. delivering syria on a silver platter to putin. this would inflame anti-american sentiments throughout the world, not just in the muslim world. anger u.s. allies and of course trigger a pilgrim to russia and would unleash tremendous anti-american storms in the middle east. >> conrad, let me ask you about this issue. i am fixated on iraq war one. the united states went into iraq. got tens of thousands of people to work and ally with the united states. i remember talking to you on previous occasions about how you felt that was dishonorable for the united states to have not done more for the south vietn vietnamese who are allies and we abandoned them. wouldn't that situation be comparable? thousands of iraqis who have worked for the americans and supported the american occupation and you're now saying to th

the middle east might have been fine because nothing was happening. it's a lot easier to have troops there and have nothing happen but have to go to a place. >> guest: first, thank you for your continuing service. i think that this is yes, u.s. troops deployed around the world under peaceful conditions with consent of the people that live where the troops are as a good thing. it's a lot easier to be there. that's what the u.s. legacy in europe has been and will continue to be.nd the popularity and foreign policy we can't forget one of presidg pieces of foreign-policy is the choice the president gets to make where they never wouldon have gone otherwise. that is a massive responsibility, and as we have come to rely on the national security we had the most professionalized force in the history of the world. i am concerned that it's further isolated but the american people are willing to buy into and sustain versus what the presidents want to do and these are tough for the country like the united states. t it's tough for an american family to have their s

inskeep: also ahead, president obama leaves office in a week, and we examine his legacy in the middle east. >> woodruff: and, it's friday. mark shields and david brooks are here to analyze the week's news. >> inskeep: plus, the director of "patriots day" tries to make a movie about the boston marathon bombing, the right way. making sure that we understand that these acts of terrorism don't achieve what the terrorists think they're going to achieve. they don't destroy us, they don't break us apart. >> woodruff: all that and more, on tonight's pbs newshour. >> major funding for the pbs newshour has been provided by: ♪ ♪ moving our economy for 160 years. bnsf, the engine that connects us. >> xq institute. >> lincoln financial-- committed to helping you take charge of your financial future. >> the ford foundation. working with visionaries on the frontlines of social change worldwide. >> and with the ongoing support of these institutions: and friends of the newshour. >> this program was made possible by the corporation for public broadcasting. and by contributions to your pbs station from viewe

this is bloomberg. >> welcome back to bloomberg markets: middle east. kong.ery ahn in hong >> let's cross over to the crude oil story. average volumes adds investors rising u.s. crude supply against the output cut's. will trade between a 50-50 five dollars. is it the rising supply with the eia revisions that we got or is it the production cut's from the opec side? i think both factors are impacting the moment. since the agreement we have had a lot of upside. the sentiment has definitely improved. the reality is that with higher non-opecou bring in producers were not a part of this agreement who will look to benefit. i would not be so optimistic to say that supplies will rise this year because the price impact is not there yet. if oil prices do manage to creat creep up we will see more supply coming out of the u.s. which will counteract the decline from opec. you say high compliance with opec cut's are expected in the first half of this year but not beyond. why is that? >> that is historically the case. once the oil price starts to see it movingwill back

a middle east peace conference but without the hostile parties.lking shop, but not the french organisers. for them it is more urgent than ever to push israel and the palestinians in the direction of face to face talks. translation: this conflict, and it was said by many speakers today, is highly symbolic. it goes way beyond its borders. it runs the risk of making this conflict worse as it would give a gift to extremists all over the world. the communique called on the parties to reaffirmed their commitment to a two state solution and not to take any unilateral steps that might endanger future talks. the implicit criticism was of israel and its policy of settlements in the palestinian west bank. and so predictably, israel's reaction was blunt. the conference, said prime minister netanyahu, was an attempt by france and the palestinians to build an anti—israel coalition, but the world he said was changing. soon it would look very different. indeed the real talking point in paris was the big change about to take place in washington. john kerry was the

maybe apart from middle east where syria is one thing but actually long—term middle east strategy fora and america are quite different. it was also said that there can't be real progress in syria without the americans, in other words, the possibility of some deal with a deal—maker. precisely. i guess this is exactly right about nato but i think even if america withdraws itself from different types of bodies, from world bank, imf, un, this is all actually positive, will be seen positive in moscow. i thought one of the first casualties of trump's vision for america is his hope for improved relationships with russia and putin and the fact that he's appointed, for example, as secretary of defence and he is not alone, amongst the cabinet nominees, somebody who takes a much tougher line on russia. it's indicative and it won't be very long before trump and putin fall out. you are right. that's why i think the current feeling in moscow is the feeling of let's wait and see what will happen because actually i wouldn't actually be surprised by hearing on the russian television moving forward tha