2018 will likely be the year of the saudi aramco ipo, msci market inclusion possibly over the summer, which could bring in major foreign inflows. a lot to consider, but definitely a valuation that is interesting to say the least. david: thank you so much. up, we will be talking india. too close for comfort, this election victory, but a tense moment for the narendra modi government. we will be live in mumbai next. this is bloomberg. ♪

that is taking your msci asia-pacific little bit lower.peaking of copper, it had its worst day in more than two years. this prospect of slower demand in china, dollar gains, and a rise pushed the metals down by three dollars a pound threshold. mark reynolds yield -- mark gran cranfield joins us. the phd of metals. and it isicked off, spreading. it is a little bit like a malware. mark: indeed. what we saw yesterday was people started worrying about the inventories building up in china. that is usually a negative sign. there was a survey about people talking about infrastructure spending that will be reduced quite a bit to what we have seen this year. that would affect the traditional industries that we see that he is copper, and now also, there is a very good gadfly which highlights a technical point about processing fees. there has been a lack of agreement on those pure that is undermining copper as well. all those things come together. copper has turned very negative, starting to affect other metals and other parts of the commodity comple

msci is a great example. msci has reinvented their business model. have the back offices, liquidity providers, you take all five and put them together and capture the growth of the industry. scarlet: it is a little meta for our liking. but we like it. thank you for being here. new etf's need patrons and money backing ideas. so enter the seed capital provider. how does an early investor decide which etf's to back? our guest shares his decision-making process. and one etf that caught our attention this week, this etf took in a record $40 million last week, the largest in inflows and it began trading in 2009. it has a double focus on ian's -- em's and tech. it is the best performing non-leverage etf in the united states. ♪ ♪ scarlet: this is "etfiq," a time for the etf lifecycle where we run through the three main stages of etf's. first, filing, vanguard registered seven factor funds to begin trading in the first quarter of 2018. the funds come with the firm's signature low fees, undercutting competition. a programming note, we will speak with vanguard

another good day for the regional index, holding onto gains, getting close to record highs on the msciindex, nearly every market tracking higher, new zealand higher, a good session in hong rebound on.8%, and a ensex after volatility yesterday. we are seeing some currencies in the region under pressure, and weakness in the commodities players come a steel and shanghai off by 1.5%, but the mood is still strong, not just in the fact that it looks like u.s. tax reforms will be pushed through a lot but the growing global momentum story. if you have a look at the dashboard index feature on the bloomberg, you can see what is moving the market, tech stocks looking good, health care under pressure. has clearance for one of its drugs and shares rising the most in three years. a malaysian stock rising after the stock was sent to climb on higher technicals, but a construction player in japan is where you are seeing weakness in some of these construction players in the japanese session. is ais on news that there probe linked to an $80 billion railway program project in that country. we are looking

over the last year or two, if you look at the msci all country world index versus the msci all country x u.s., they're the same but if you look long term, all equities are still below where they were in '07 the stock below 600 was still below what it was in 2000. >> these are long cycles emerging underperformed for 5 1/2 years before it's double bottomed in the last year. are you looking at the longer trend? because we're not talking about single stocks. we're talking about entire decisions. . >> emerging markets are still cheap relative to where they can go from here we're definitely betting emerging markets over the u.s. for 2018 >> that means robust growth. defense is saying, idiosyncratic tech will prevail or idiosyncratic i sell the best coffee, starbucks, unless you get a real robust economic cycle, are we late in the cycle or is it a new cycle >> we're late in the cycle global trade is expanding. global trade expanding, given how the u.s. has been negotiating, we'll be getting out of trade they'll have another good year next year because of that. global trade is massive. >> i ag

we had the msci asia-pacific session up.es on the nikkei and kospi, 20% lower than you might have expected on a regular day of trading. 20% lower than the 30 day average. the fed meets this week and a hike is expected. we have central-bank meetings. we have a better than estimated jobs number out on monday with the unemployment rate holding at a 17 year low any tax conversation as well. the dollar down by .1%. a spot price.is the futures started trading in chicago last night. futures began trading and at one point they were up by 20%. we have a number triggered by the volatility we have seen in this cryptocurrency. than 1500% this year. substantial volatility. we will talk about whether this is an asset people should be getting involved with. up .8%.zealand dollar they have named a new governor, and that seems to be going down well with the markets. we get data out this wealth this week -- out this week as well. emmanuel macron says donald trump's decision to recognize jerusalem as israel's capital is dangerous. his comments

guest: with the msci and the he ftse,ndex, -- and the kuwait has made a lot of the reforms that the indexre over the past year, and we will see it upgrade in the ftse next year which could bring in about $800 million. listing forechnical a power company which could bring in an extra 200 or $300 million and i think that kuwait could be on the watchlist for the msci e.m. index status as well. you have an economy that has always been robust, not the most exciting in the region, and you also have a lot of money coming into a market that is beginning to do the right things. and importantly, foreign investors and even original investors have never really looked at it seriously before. yousef: if you take a look at the wider emerging-market space, it has been a crazy year for politics. he e.m. and politics go hand-in-hand, but it was a little more than usual this year. turkey, south africa, the list goes on. the recovery in oil prices though, does it make you a bull when it comes to stop stories like nigeria, which was also in your research? guest: you have a slight overhang in nigeria. the pres

that's the least we should expect from having these a major market like saudi in msci emerging marketsposition, by the whole index? >> not at all. we are focused on companies. we are high conviction and limit our portfolio to 20-25 names. i believe you should at least get one of these names. again, we would play the index in the company we like, so we try to get exposure to the whole idea. tracy: in a few minutes, we will speak to the ceo of egypt's second biggest pharmaceutical company. how are you feeling about egyptian stocks post-devaluation? >> egypt has been a major part of our strategy this year. we are almost 20% and are looking to increase more. what dictates our allocation is the number of companies and we are not restrained by country or sector, so this is how we see lot ofand we found a sound businesses in egypt this year. it has been very rewarding for us to be honest. tracy: thank you so much for joining us. always nice to have you on with your colorful charts. i should mention we have another headline, important one for the region. goldman sachs raising its 2018 outlook

msci index slightly higher. let's take a look at other assets keeping in mind.treasuries slighting for the 12 year yields to 2.43%. no change as of now. bitcoin back about $14,000 after being knocked below that following south korea's warning. oil, fairly flat. gold, creeping toward $1300 again. dollar speaking, weakness has been a boon for gold. 1595.an see that on g #btv as the dollar crumbles, its worst year since 2012. you have the year and balancing adding to the lows. the trade deficit not helping the mood, either. anticipating a 2% decline from current levels. this bodes well for asian equities because it boosts inflation expectations. let's see what is moving the dow on the nikkei 225. financials adding 0.2%. real estate leading the drag when it comes for laggards for the nikkei 225. zero point 5%s, higher, following uber agreeing to the deal that gives a soft bank the top shareholder role for the ridesharing company. betty: thank you so much. let's get the first word news with courtney collins. courtney: president trump is warning china about illicit de

least one of them but what's happened is now getting lots more attention so we'll see that ishares msci emerging market etf, eem off by more than 5% since thanksgiving so bill kelly, a lot of focus to see if that trend stays in place, despite the drop we've seen over the past week and a half, guys >> monster year. dom, thank you. >> so the markets meantime, just continue to churn and for the most part higher albeit at a moderate pace and dow has seen 64 record closes so far this year. >> which is amazing. >> we'll see if we get another one today. hit number 65. the s&p has seen seven so far. >> 57. >> oh, 57. pardon me. i'm -- just a second that's better. famed hedge fund manager howard mar mar mar martz. here's what he had to say. >> the s&p quadrupled off the bottom most assets are selling at the highest prices and highest valuation metrics and lowest prospective returns they ever have so it makes sense to me that one would want less risk today than three years ago or six years ago or nine years ago. >> has the easy money been made? joining our "closing bell" exchange we have sylvia a

msci is a great example. msci has reinvented their business model.the back offices, liquidity providers, you take all five and put them together and capture the growth of the industry. scarlet: it is a little meta for our liking. but we like it. thank you for being here. new etf's need patrons and money backing ideas. so enter the seed capital provider. how does an early investor decide which etf's to back? our guest shares his decision-making process. and one etf that caught our attention this week, this etf took in a record $40 million last week, the largest in inflows and it began trading in 2009. it has a double focus on ian's 's and tech. it is the best performing non-leverage etf in the united states. ♪ ♪ scarlet: this is "etfiq," if time for the etf lifecycle where we run through the three main stages of etf's. first, filing, vanguard registered three factor funds to begin trading in the first quarter of 2018. the funds come with the firm's signature low fees, undercutting competition. a programming note, we will speak with vanguard founder ne

msci's all world index tracks 47 stock markets. it's seen gains of 20%. emerging markets have been the big winners. chinese shares, leading the way. they are up 48%. the big story for many top companies of course has been president trump's corporate tax cuts. when they finally cleared congress this week there was surprisingly little fanfare on the markets. i think it'd been priced in for so long. people felt it was coming. it's clearly been a contributor to this great bull market that we've had this year. and ijust think you see a claming down now that the bill is passed. and also a calming down as we're getting into the end of the year. you know, people starting to go away for vacation, take the rest of the year off. and also harvest some gains that they've achieved this year. with me isjustin urquhart stewart, director, seven investment management. everything came together in a perfect moment. we are 10 years on from the crash we forget how bad it was a decade ago. since then, we have had huge quantitative easing. banks pumping money into the system and

overall, the peer group we ended up your to date underperforming the msci index.going into 2018, you will see greater divergence between msci and the asian automakers. if you look at the bigger market caps, and you mentioned a couple ,f them, you know, like toyota honda, nissan. if you look at the japanese, they are going to see increasing risk in the u.s.. u.s. sales are slowing down, and they are probably not going to get as big of an ethics benefit like they did in 2017 going into 2018. yvonne: we have seen auto sales growth slowdown. what is the potential risk it could drop next year as well? steve: the risk is high. in 2015, they lowered the sales tax for autos, for small cars, from 10% to 5%. they increase the back to 17 point -- 7.5%. pull has been a lot of forward demand that has occurred in the last two years. last year's sales were astronomical given the size of the market. this year, it is down slightly. i think next year, we will continue to see it slowdown. yvonne: there is a lot of prospects when it comes to the electric vehicle industry for china as

>> well, we found over a period of time that these more diverse companies can outperform the msci world index and, again, it's another sign that investors need to look at these sustainable -- these esg factors as they start to invest because certainly the large market participants are taking note >> you use the model that when you're assessing investments, two women at the board level or 20% of women in executive management that model is hardly what you'd call gender equal. ubs has four out of 11 board members are female what's needed to make that diversity a guarantee of financial success, do you think? >> well, there are no guarantees in finance i think it's -- this is just merely one proxy for trying to adi mentions to investment analysis it's both a symbol and a kind of specific number because as we get better data, you can do these kinds of searches and very easily look through companies across these kinds of dimensions in terms of gender diversity or other kinds of diversity and what we're -- what we've been doing is trying to better use these databases of factors, both to look at

they have seen a 28% rally in 2017. 1.5% on msci on markets.ting its 100 day moving average. that tends to be a bearish signal. the rotation out of tech stocks make it a big part of the index. the aussie dollar is showing weakness for a second day. yesterday we saw it drop on the gdp data. it is dropping on a worse than expected trade balance data. the bloomberg dollar index hitting a two-week high. generally we see more risk on sentiment. testing its 55 moving day average. it has gained every day this week so far. not the politics in germany. social democrats are holding their convention in berlin hurt. -- in berlin. they also expected to vote. alberto gallo with algebris investments is here with me. 30% favor a grand coalition. 56 favor, not -- it is not stacking up well for the grand coalition, is it? alberto: fortunately, it does not matter. politics is not the driver. europe is changing. we have a political crisis in germany. sweden qualified for the world cup instead of italy. europe is changing. we have a political crisis in italy is gro

asia had sub gauge for more than a 20% weighting for the msci pacific index. this year. that is one of the main reasons with companies like tencent and having and samsung really good years this year. in the background as well there are other things going on. valuations for asian stocks. grade earnings. and global economic growth. well?d: japan, as blackrock. the recommendations going into next year. more of the same? what are the dynamics? off a littleted slow at the start of the year and then it took off in the second half. for the most part, it has to do with cheap valuations and blackrock is expecting stronger corporate earnings next year also. i would say those are the two main reasons for that. which cameso nomura out saying it expects a strong rally for japanese stocks citing the same reasons. rishaad: sticking with china. where at -- where has it in in all of this? shanghai composite. it has been a relative underperformer this year. big capital slides. china is an interesting market. this year and the year before and i think it will continue to be that

msci asia-pacific wins the award, or one of them.kamaruddin wins the award for me for business flash. sophie? sophie: thanks very much. they apologized for customers for software changes to prevent unexpected shutdowns. they said they had not intentionally set out to shorten the life of their products. apple said it is cutting the batteriesreplacement no longer covered by warranty. stopks plot intending to american tax companies to shifting plants abroad might hit the foreign banks with significant operations in the states. erosion, -- made by businesses to companies abroad must be counted when calculate tax liability. because global banks move money among units, requirements would amplify -- china aircraft has bought airliners for $5.4 billion. deliveries of the aircraft are expected in stages in 2023. the deal comes amid surging travel demand set to surpass the u.s. as the world's biggest. citigroup is being find $11.5 $11.5 millioned for displaying inaccurate research readings. cell.aid buy instead of -- sell. that's your bloomber

msci is adding a very specific definition, which is why almost four years ago, march, we listed kba onstock exchange. we want to skate to where the puck is going. scarlet: you also have a china environmental etf, which seems like an oxymoron considering how polluted chinese cities are. china is committed, but were talking about a 10, 20, 30 year investment. what kind of time horizon are people looking at when they invest in kgrn? kgrn is picking up steam. it is going to happen. president xi said environment more times than economy. we are long-term investors are willing to ride out bumps in the road. eric: back to mainland, this is a whole new frontier. if you think the equity side of the frontier, the bond side is bigger and there is less foreign ownership. is that a good place? brendan: the three longest fixed income indices, zero exposure to china's onshore bond market. we actually own those. with the appreciation, it is a sleeper trade of the year. who would think a chinese bond fund is one of the best bond funds listed in the u.s.? scarlet: you might still be getting ahead of the

not much more exciting, up by .2% on the msci.ery much about the tax story, about susan collins in the united states, republican coming into line in terms of the senate. the house will be voting later on today. the tax story still captivating markets, s&p futures suggesting we will be pretty flat at the start of the trading day. the south african currency, we have been talking quite a lot about what has been happening politically in south africa, the new party winning the leadership vote, which puts them in position to be the new president. that is something that has been driving the rand higher, although as we heard from johannesburg earlier on, there is so much expectation built up, we wonder if they can live up in terms of reform, corruption reform, two topics du jour. what do we see in the bond markets? matt: let's take a look. bond futures are probably more indicative as bond trading in the market just opened. you will see that the futures are down, which means investors may sell, pushing the yield higher. we will see the bun

msci asia-pacific down by .1%. the stocks got a boost on top story, going up by .4% on the s&p in the middle of the session, but we are treated -- have we already seen the big men up on this story? meeting in japan. no change, essentially, to policy. the big question is about governor kuroda and how long he plans to stay. be bringing you that in japan. the 10 year yields very much mattof the story, miller. it touched 2.5% in yesterday's session. we had lots of conversations about what was driving that. when is president trump going to sign the legislation? a little bit of january 3 speculation. could that counter the new you're going? put in the bitcoins spot. the big story is about redefining a bear market. to what extent is it causing us to redefine the bear market? the first bear market in bitcoins and last month. we have had three since august. this is all to do with rival springing up in various places. exchange.an plenty to talk about on the currency front. matt: there is a lot of crypto news. something is pl

msci asia-pacific there as well.are waiting for clues from a host of central banks to wear policies going to shift. those low as we wait for news to come through. aren't expected to move very far very quickly today. first day of the two-day meeting of the fed will hold. stocksght we saw u.s. touching new highs. technology and media stocks in the front line there. the commodities sector very interesting because we saw goldman sachs talking about this. they are talking about qualities over goldman's. energy will raise driven by oil. also, bitcoin is not taking demand away from gold. that is fascinating. in fact, we saw a big volume as bitcoin came to wall street in the form of cbo he futures -- cboe futures. take a look at the futures, i've got a pair. 3818 on the bloomberg. the top panel shows you the futures price. it's come down. 18,600.oint touching here you can see 70,720. the underlined price of bitcoin has come down about 5% this morning. 15,000 plus for bitcoin. at the bottom panel you see volume. we have had l

unchanged on the msci asia-pacific. indices u.s.bleeding over in tax politics, but asia is a little bit more circumvent. selloff int of a carmakers. holding back a little bit in the asian session. let's get juliette saly with your business flash. juliette: cbs help is buying , crating a healthier and retail giant. -- cvs is buying aetna, creating a health care and retail giant. named simons thompson as chairman, reinforcing an industrywide investor drive for higher returns and caution over project spending. and executivesly director at anglo american. do plus is stepping down. while disney has renewed partssions over acquiring of 21st century fox media assets. the discussions are said to include the 21st century fox some studio and fox's stake in sky. anna: juliette saly there for us. big going on the rise once again, up 5% today. -- bitcoin on the rise once again today, up 5% today. it is now more available -- it is now more valuable than the gdp of assorted countries. >> it is a. pure commodity -- it is a empty commodity. , if it

let's have a look at the msci asia-pacific, up by .8% right now. the markets are factoring in something more positive on a tax run. the republicans agreeing to their version of the tax plan that this is the penultimate trading week of 2017, reflecting what we saw on friday on wall street. i wanted to highlight what is happening in india. earlierhe sensex down on in today's session. it looks as if, he has come out victorious. we saw the sensex down by 2.6%, up by .7% in the indian session. by .2%. further to go on the tax bump story. we hit records on friday. could we see further gains in today's session in the middle of week? a vote in the house and senate, and all of this to do with reduced rates of corporation tax and all of the other changes that are encapsulating this tax legislation. how material is this for corporate in the profit? how material is this for the u.s. growth story? we will ask this to our guest. trump's want to sign the tax bill into law before christmas. we will see if he manages to achieve that. we pulled out the south african

msci china, emanated by internet names and tech hardware, has done well -- dominated by internet names and h hardware, has done well. tech is one of those spaces which always will be volatile. you just touched on one, we are looking at in terms of materials. in more handsets primarily from apple going forward. from a buying point of view, it is important to look at the fundamentals. technology space right now is absolutely fascinating, the different applications coming in. opponent of circuits, there are a lot of interesting spaces at the moment which have long-term plays. don't get shy with any tech fall back. >> what about dram? it was about a week and a half ago, once the price of dram peaks, get out of it. is the super cycle over? >> dram, samsung electronics, the dram margins are very healthy. consensus will say they will peak around second quarter if not first quarter. memory.viously, is we don't get shoo short-term. we are looking at applications like big data. as well.xample, if you can add computers or circuits which can essentially algos large l goes -- simultaneously, you wi

>> we're more looking at msci china, to be honest.a. you can almost make the argument that it is almost on purpose, what they are doing, to just sort of take some of the froth out of this, and a lot of the leverage that is taking place. the question is -- does that become disruptive? yields is clearly something we are also looking at , but as you rightly said, i think this is part of the government policy to continue with the deleveraging, something we have seen for the past 12 to 18 months. i think the market is much, much better than compared to two years ago. we think given how robust china's growth is, we do not think this will be a disruption to the market. still positive outlook on china. weid: virtually everyone have asked on what they thought is the biggest risk to the strata rally, their answer is always the same -- faster than inflation.- expected do usage guide to that view, and do you see that coming within the next quarter? >> not really. of course, china also benefited from the global trade recovery, like many other expo

we have seen the shares of asian have underperformed, broadly speaking, when it comes to the msci asiaea that it will crowd them out, are we kind of getting ahead of ourselves a little bit? i think if you look at them as a group, asian automakers as a group, last year's performance, especially last quarter and this quarter, diverging from the msci index on the downside, there is increasing risk that it may continue. particularly if you look at the major automakers. we'll start with japan. you know, toyota, honda, as well as nissan, the three biggest japanese automakers basing slower sales in the u.s., as well as the yen may not benefit -- facing slower sales in the u.s., as well as the yen may not benefit as much. the last two years, zero, and the next year, we will likely see a lot of news related to mission standards, related to e. v., and that will cause these stocks to gyrate. , talking about china, it is hugely ambitious with the policymakers in terms of how e.v.'s and their role to play in environmental rebalancing. how much progress do you see being made in the next year in chin

the msci asia-pacific unchanged.hattors unimpressed after japanese data showing acceleration in inflation. the dollar-yen trade holding on to the six-week lows. interesting moves in chinese stocks, down .3%. stocks linked to apple among the worst performers, property firms a surging. u.s. futures pretty much unchanged. 2.49%, the highest level since march. a couple of things in the commodities space. unchanged after u.s. explores refrain from adding breaks for a second week you'd interesting what is happening with aluminum. the broader space lower after concerns about an inventory buildup in china. aluminum with the biggest fall in two weeks. the oil trade feeding into the dollar-ruble trade. rand firmingican up, extending the rally to a nine-month high probably drew and what investors are telling us. i will be back with another update in half an hour. this is bloomberg. ♪ david: is a big burden off your shoulders now? jeffery: i am starting to feel a little bit of decompression. david: you have succeeded a legendary

the msci asia-pacific down .1%.e have seen the toll reaction to japanese data that came out in the but some pressure on aftere stocks as well the apple story. s&p futures unchanged. n change in the reference back during back some gains. we did have u.s. explores refraining from adding rigs for beecond week here it i will back with another update in half an hour. this is bloomberg. ♪ david: did you ever think that one day that you would be chairman of the joint chiefs? colin: it was beyond any possible level of aspiration. david: people said this man should be president of the united states. colin: it had never occurred to me. david: any regrets about not having run? some people say it is a great job. [laughter] david: no? colin: prove it. [laughter] david: a new national security advisor came in and he wanted you as his deputy. thatsaid if it is important, why doesn't the president call me? hello, general powell. this is ronald reagan. yes, sir. >> would you fix your tie, please? david: well, people wouldn't recogni

seen so far, i have put together a little chart that shows emerging-market stocks as measured by the mscierging-market currencies and the bloomberg dollar-denominated an they are all u astounding amount, but the bond space is absolutely remarkable. i am old enough to remember two decades ago when a bunch of african decades were burned by their overseas borrowing. in terms of the sorts of liabilities, should we be worried about being able to pay it back, or are things different? >> that chart only tells part of the story. recovering from 2016 in 2015, m's were sold compared to develop market. the 2017 story is one about europe, which is growing again, and the story about em's. remember, in em's, what you have this china and asia and the ro ad. like china is doing in asia is nothing short of phenomenal. when you look at political uncertainty, egypt and much of africa, turkey, the real story of emerging markets is in asia, and asia is keeping up. look at all the countries which are strongly integrated into china's economy, they are doing extremely well. the debt side, of course, is perfectly

will we not pointed out in november we did see these record highs when it comes to the close for the msci index. on this chart. we are not seeing much in the way of equity markets gaining ground this morning. we have the taiex and the coffee higher.y text -- kospi sony optical is the best performer on the hang seng and i want to highlight the bank in jakarta, extending gains. the stock raised to equal weight at morgan stanley. in on shanghai, a stronger profit outlook and it june 2015 hi in hong kong. hyundai rising after its record plunge but on course for a slump this month. losses of nearly 39% this december. let's check in on chinese carmakers, they are broadly climbing. the top shareholder of bubble a be, earlier jumped nearly 9% after being raised to outperform at credit suisse. byd set for the first drop in three days. the time when he's dollar trading at the strongest level since the summer of 2014 -- the taiwanese dollar trading at the strongest level since the summer of 2014. the greenback booming on bond inflows and better tourism inflows. currencies, that's the trend. we just

this is the msci emerging markets index, below the 100 day moving average for the first time since januarythe move lower has been led by the general rotation out of technology stocks which makes up the biggest proportion of the index. we are talking about rotation once again. 90 minutes into the trading day in the u.s. abigail: it is looking a bit choppy. we are looking at gains right now, very small for the dow, s&p and the nasdaq. three major averages whipping between small gains and losses. major averages in recent sessions reversing lower at the end of the day. sometimes that is considered to be bearish. volatility tends to bring more volatility and where we continue to have volatility is for the chip factor. down about 3/10 of 1%. putting up a small gain, yesterday but still lots of uncertainty about those building blocks for technology. let's look at a longer-term chart of the stocks. it is a one year chart and we have the 100 day moving average in yellow, and over the last year, when the stocks have dropped below the support of the 50 day moving average, we have seen it drop to the

and we have the msci announcing their decision regarding the use of the onshore or offshore fx rate for. tracy: the power of the benchmarks on display. we did have i am yousef gamal and david:--yousef: closed yesterday. topeople are still trying gather pace and try to play the market the way they can be joining the ipo are not. here we have recent news -- tracy: my favorite story. prideple tend to themselves. they can participate in all the , so it is athe u.k. very volatile stock and the , but is extremely complex we should see some activity for sure. adnoc, what is going on with the ipo? >> we hear there is a lot of interest and demand for the ipo am especially from uae nationals. it is a unique thing in the market and could be a successful case. mostly because it is characterized -- you cannot find a lot of exposure to the oil sector. even though it is a unit of , soc, it is the first time we expect a good outcome for that tracy: a huge thing -- for that. markets.huge thing for that was her middle east markets reporter and that is it for this edition of "bloomberg markets: middle eas

but international stocks or at least the msci world stock index that looks at global stocks outside ofhe u.s. is actually doing even better, that's up 24% this year thanks to a really, really synchronize growth story around the world from a pretty steady high-growth in china, cross merging markets as well as rallies in textures in hong kong, rise in commodity prices and in general sense that international stocks, compared to u.s. are still relatively cheap and that's made them attractive investment this year. >> copper, you are talking about metals, up 30% this year, speaking of 2018, what are the concerns that investors are looking at that can derail the rallies? >> i think the number one question is wage growth and broadly what that means for inflation, one of the reasons we've had such a fantastic year it's been that inflation hasn't picked up. even though the fed has been slowly raising interest rates, central banks around the world have still been providing market with a lot of liquidity, number one thing to watch is inflation, i think. lauren: riva gold thank you, we really appre

i would throw in the msci oil country world index, shattered them all, up 24%. take it and you are the winner. stay tuned, more markets ahead. this is bloomberg. ♪ shery: noon in new york at 5:00 p.m. in london. i am shery ahn. vonnie: i am vonnie quinn. welcome to bloomberg markets. ♪ shery: from bloomberg world headquarters in new york, here are the top stories. report november jobs reinforcing the possibility of a december rate hike next week as u.s. payrolls rose 228,000. bitcoin interest intensifies as traders prepare for futures sunday by demand for the cryptocurrency not just limited to the u.s. why bitcoin is getting love in latin america. the ceo of rbs does not see settlement with the u.s. over a mortgage investigation this month. part of our exclusive interview with ross mcewan later this hour. vonnie: julie hyman is with us, halfway into the friday trading session. what have we missed out on?

are you looking at saudi arabia, the next big horizon with the msci market inclusion and reforms? is my hometown. the opportunity happens in the region is where i will be focusing on. certain criteria's the team has. we have set up two companies for this. capital, to restructure our investments in the region. the other is a company i am personally focusing on. raw trying to find those injection.eed cash it is trying to find those types of businesses in this region without fear where things go to hell in a hand back tomorrow. yousef: do have more appetite for investments? >> yes. yousef: any sector you prefer? investor i prefer beaten-down sectors. yousef: as they come. criterias financial , then you have to look at the sector. there is always a situation when something happens and stocks you can see it quite clearly, there is a swing, and over buy and over sell. it if you'retell not operating that business. we look at those first. the others are opportunistic. they will pop up and i the you take advantage or someone else will. yousef: let's put meat on those plans. you have more i

msci is a great example. it has reinvented their business model.ffices,the back liquidity providers, you take all five and put them together and capture the growth of the industry. scarlet: it is a little meta for our liking. thank you for being here. patrons and money backing ideas. so enter the seed capital provider. how does an early investor decide which etf's to back? our guest shares his decision-making process. and one etf that caught our attention this week, this etf took in a record $40 million last week, the largest in inflows and it began trading in 2009. it has a double focus on ian's and tech. it is the best performing non-leverage etf in the united states. ♪ ♪ this is "etfiq," if time for the etf lifecycle where we run through the three main stages of etf speared first, filing, vanguard registered three factor funds to begin trading in the first quarter of 2018. the funds come with the firm's signature low fees, undercutting competition. a programming note, we will stick with vanguard founding -- founder next week. then you have the l

investors experiencing more than just a 31% return with .olatility staging a comeback price swings on the mscindex declined to a one-year high. turbulence in the development of equities has dropped. analysts warned that shares in the developing world do little more than tread water in a year as earnings growth set to slow as risk appetite will likely wane. saudi arabia, investors who watch austerity masters, growth over the last couple of years with saudi arabia 2018 expansion .e-budget yesterday a relief a group says it is a sign that crown prince reforms are going ahead. marcus will probably rally according to a company. -- markets will probably rally according to it a company. saudi arabia individuals that sellers of stocks every week since april of 2016. let's stick with emerging markets, the rand world beating rallied continues after losing steam earlier today. rand implied volatility has plummeted since its victory, expected swings over the next month still the highest among 23 em currencies, followed by bloomberg, making it a risky bet for kerry traders who borrow in low yield in curren

you compare that to the msci emerging market index of 38.1% .this is over a one-year horizon .is huge. arab stock markets have lagged. where is the bottom? >> you should invest when the headline flows have been difficult. this year was very tough. , chart tells a thousand words the performance has been huge, markets are cheap. the news flow is expected to in proof, and the good news is that it is full of opportunities. even though your chart shows flat performance for the year, some stocks are up 50% or 80%. theser one was up 40%, so markets are full of opportunities. that is key for active management. market ise bond arguably come especially government bonds, has outperformed equities. verse charts you can look at. in terms of the highlights they are -- various charts you can look at. in terms of the highlights, are you bullish on the egyptian fixed income story? >> fixed income leads equity markets usually. .t has been fantastic this year high interest rates have been attracting international investors. the development is shifting to equities. in egypteen building from 10% to

the increase on the bloomberg billionaires index compares with an almost 20% index for the msci world and the s&p 500. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i'm taylor riggs and this is bloomberg. manus: thank you very much. investors are keeping an eye on the momentum of the euro ahead of the german cpi data. that is due friday. the currency is seen extending its run against the dollar next year even though the ecb is an expected to abandon the near zero rates until 2019. how does this feed into stocks? our next guest says he remains positive on equities with the eurozone and switzerland. joining us now from zurich is pierre bose, head of european strategy at credit suisse. menacing is alongside me for the ride. if i look at the euro, euro-dollar is up 13% in 2017. euro-sterling is up 3.6% in 2017. the market says that is unlikely to be the end of the story. we are up 8% on the stoxx 600. holding back the story in the equities for europe? pierre: we don't think so. we think it is more a story of fundamentals. there i

that is more than four times last year's gain. 20% increaseh a for the msci.lobal news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. thank you. some breaking news on volvo. it we have been looking at the ownership structure on the debt scream -- debt screen on my bloomberg. investing in new companies and that is how it is spending the money. but they will not invest money into full-blown. it will become the largest holder of share capital as a result. developmentsurther coming through on the bloomberg this morning. we will bring you share price reaction to that. and it .2% stake and private equity funds. will invest in existing businesses and into some new businesses as well. maybe some breaking news to what they are doing with the money. let's talk about what is happening in the commodities space. commodities are heading into's -- into 18 on something of a high. rallying to its highest in three years. goldmans is predicting a return on commodities. has been a tough few years for commodities.

ftse relative to the msci world index is the weakest since 1988.after the catalonia vote when the processor and one a majority in regional parliament, we would see the index fall between 1% and 2%. 0.25%.ex down about the big move is because of the result and catalonia. the lows of the day, we are seeing spanish yields rise. let's have a look at things from the sector perspective. this tells you all the industry groups that are moving today. -- stoxx 600 is down about pro-secessionist and catalonia won the majority in the parliament. that is pushing down european stocks. or is it a wider european event? at is what investors will be watching today, and what will happen next? what does the spanish prime minister do, who was hoping for a better outcome. you can see industrials, you can see energy, financials as well. the big event today in europe is that catalonia election result. absolutely. the catalonia election is what is driving the big drop in the ibex, down right now. i've got the stoxx 600 up here. you can see most stocks in europe are down. 3

we are flat on the msci. bloomberg is this flash. here's juliette.he last-minute late-night changes senate republicans made to the tax overhaul plan may mean higher taxes for corporations including technology firms. as amended, the senate tax you would preserve the exist in 20% alternative minimum tax but on the senate plan, it could prevent companies from making tax breaks relating to intellectual property and equipment. chinese -- hna, the conglomerate, is being probed to see if they have misreported there information. a spokeswoman declined to comment. starbucks sees china surpassing the u.s. as it largest market as it counts on the country's affluence vendors to offset the rest of the world. starbucks will open their biggest cafe in shanghai tomorrow. it is about half the size of a ball pitch. that is your bloomberg business flash. manus: thank you. is below $58 a barrel. u.s. crude is averaging about the war dollars a barrel in this allies as opec and its agreed to extend its outfit curve. curb. people are debating whether this a vindication of

msci ac asia-pacific up a little.f into the equities market in asia. ,he 10 year yield, unchanged 2.48%. not far from 2.5%, where we were this week and that did marc a substantial move in yields on 10 year treasuries. auction fascinating. you thism&a news for last trading day before the holiday. -- have reached an understanding. they are making an officer, the 3.2e values the business at billion pounds. details coming in on this. operator in business-to-business marketers and business to consumer. internet gaming, a move from ladbrokes, which was only put together. what are we seeing in the market? matt: the bond market just getting started now. forill look at the futures an indication into how the cash trades are going to turn out. the futuresup board, we can see the bund future's up slightly as those futures -- you could expect to see a little selloff and a slight rise in yields. we have seen a real rise in yields the last few days. 0.41%, from at low of 0.3 even a week ago. asd futures pointing down, our boat futur

the white line, em, solidly outperforming the msci world index. a little bit of underperformance. back to bed, em selling off. some in dev year stuff that does not change the fundamental story? atie: as people rebalance portfolios, you will see a little noise. coming into this year, i told claims to be positioned, and we think it will continue to outperform. with emerging-market equities, when you look out to 2018, you have the fed with the 20% count to the overall market. we think it is a very important thing for people to have in their portfolios. we want to emphasize again, we really doing courage clients to look outside their businesses -- we really do you encourage clients look outside their businesses. small and mid-cap companies that are much more geared to the secular growth story. scarlet: what is it usually? is 40% to 45% it invested in benchmark, and this year we are at 50%. scarlet: i want to go back to technology and this can be global tech as well. what is going to drive the next leg? innovation or consolidation? the major tech platf

cracks in the global markets that we have been seeing, you highlighted hsi, we also saw, you know, msci, asia, japan at a two-month low, copper not doing well what does this all mean in the prism of, hey, look, the tax deal might go through? >> i could makie an argument tht it's bullish maybe they're leading us i think the german dax led us for three to six months at the beginning of this year we followed. if europe and china have been leading, it stands to reason they could lead us down. but the vix closed down today, despite the fact that the market is lower the vix is telling a different story. i can't get that overly concerned. i know tony dwyer has been on here at least a half dozen times saying i shouldn't be worried about it but the speed at which the yield curve continues to flatten is somewhat alarming. 52, 53 basis points at levels we haven't seen in a decade and a half i'm not an economist, i'm not funny enough and not humorless enough and smart to be an economist. that being said, it means something. >> that goes back to what you're saying about the bunds, essentially a weig

. >>> before the break, our data partners at kensho say put money in the msci world index this month. when it's up big in december the data shows it keeps running to the new year up an average of 3.22% in the final month of the year for more go to cnbc.com/kensho "halftime report" with scott wapner and the traders is back in two minutes ♪ feel that? that's the beat of global markets, the rhythm of the world. but to us, it's the pace of tomorrow. with ingenuity, technologies, and markets expertise we create the possible. and when you do that, you don't chase the pace of tomorrow. you set it. nasdaq. rewrite tomorrow. ♪ let out your inner child at the lexus december to remember sales event. lease the 2018 es 350 for $319 a month for 36 months. experience amazing at your lexus dealer. >>> the cnbc iq index beating the broader year on 19%. the laggards general mills, mattel and johnson controls. for more go to cnbc.com/iq100. >>> we're back and we're going to do the call of the day in just a second. but josh brown has some research results for us >> the percentage of things sold on amazon

msci is up 18%, 20% or so.hat makes you more cautious going into next year >> well, we think we have had really two years of one-way street for emerging markets, and now when i talk to clients, everybody already expects 2018 to be another great year now frankly, fundamentals are still pretty good and in equities, we expect 20% earnings growth, so we're not saying that 2018 will be terrible, but we have to prefecture for some bumps, because everybody expects it to be great so chances are, we'll have some risk to that one risk is clearly that the dollar rallies we think that in q-1, we could see euro/dollar at 1.10, and that's quite a bold call, but we think that's because we have lots of offshore profits that actually want to get home to the u.s. on the back of the u.s. tax reform second is china, where at this stage, no one's used to worry about everything, which is interesting, given that only two years ago people were very concerned about financial stability there. so we think that some return of financial st

you are looking at the msci inex, down 0.5% to 170.22, case you are following that closely.et's get the bloomberg business flash with juliette saly. juliette: thanks. airbus has confirmed it is preparing for a complete overhaul of the top management. tom enders plans to step down when his term ends in april of 2019, while coo fabrice bregier is set to leave in february of next year. the announcement comes as the european playmakers grapple with corruption allegations. have submitted prillaman are he bids -- submitted preliminary bids. according to people with theyedge of the matter, also participated in the first round of offers. they declined to comment, but did nottatives immediately respond for comment. walt disney's deal to purchase 21st century fox will need approval from u.s. antitrust officials. the acquisition would make disney the number one studio owner with more than 1/3 of the market and given control over the fox cable channel. it would put the sports networks for fox under the same roof as epsn. get a lotk this will of scrutiny from regulatory authorities world

stocks -- thisl is 4999, global stocks carried through to december, the 13th monthly gain, the msci allndex, the first time in the three decade history of that index that the gauge got yeargh an entire calendar without a monthly decline, so the longest winning streak as we get this momentum driven rally in global equities. let's get it over to sophie now. we are not seeing a lot of momentum. i reckon investors are looking forward to happy hour after the week we have had. we are seeing gains here out across the region. .1%, u.s. 225 losing futures pointing lower, and we are seeing that risk appetite as the dollar is 112.40, and gold on the up and gaining ground. chinese large caps under pressure, while the chinese islands are on the rise. the shanghai composite lower for a second session. energy players the biggest drag, energy stocks and materials losing ground after the latest private serve survey of pmi. .1% am a do have some gainers, komatsu in particular, leading advancers. morgan stanley with an overweight rating saying momentum is driven by china and other emerging markets. intere

manus: one of the things i started with was the msci asia pacific.t is still a performance that has been. part of that has been technology. something you want to lever into again in 2018? patrick: i don't think so. these are the ones at risks -- at risk. there is no real country in recession right now. i think you want to have old-fashioned industrial. i'm a banks. the most valued -- i want banks. we are short netflix, tesla. the enthusiasm and optimism are the good news in the price. if there is any disappointment, there is an -- there's air pockets. why wouldfor example, you buy tencent? tencent 30% cheaper if you buy in the south african listing. they want to on the direct asian stocks. these are the kind of things that happened when there is extremely enthusiasm when people don't care the price they are being for something. manus: heavy hit extreme enthusiasm -- have we hit extremely enthusiasm? 22% return in the united states of america, is perhaps extreme enthusiasm. do you think you are going to see -- do you remember we talked about a rotatio