envoy to the saudi nation.ing up, a little bit more discussion in terms of weaning the middle east off its addiction to oil. stay with us. this is "bloomberg markets: middle east." ♪ ♪ in dubai.is 8:24 here let's get back to our special guest, the king's personal envoy to saudi arabia, vice chair of arab bank in jordan. break, wewent to talked about structural change, social change. but there was a physical dimension to the middle east that really is important. saudi is pulling back, abu dhabi is pulling back, the imf has warned that abu dhabi could pull back on the list. how do you see this fiscal decelerate or in the region? it's a big risk, isn't it? guest: i think it's a big opportunity. these are collective measures that must be addressed in order to provide the correct pratt form for economic -- correct platform for economic growth. we will never be able to achieve the kind of objectives targeted in 20 30th public finance is in order. i think the central component -- public finance is not in order. that15

we started the trading week with news from saudi arabia.he top.f the imf was saying goodbye will indeed exhibit growth through 2020. the middle east and markets had a little bit of a time down one of base for the week. up one half of 1%. onse of the finishes thursday. egypt up 1/8. chicken on those benchmarks. iran was back at record production. canada is back online. the movie's story impacts the middle east. >> china's economy resumed its rise. way down by overcapacity in industries such as steel and cool. down 6% in april from a year earlier. retail sales also mr. the forecast. a rocky start. china's economy stabilized. a rebound in the housing market. a good week for sodastream international's. the company beat earnings estimates. the strong demand in europe helps lift earnings. the shares are down 15% over the past year. the french leader is planning to sell the banking assets to recover funds from $1.1 billion loan. they have the right to put it out under the asset deal. manus: downgraded middle east oil producers. what is this mean f

is it the execution by the saudi s?ey going to come as it were, spread the good news around, spread the goodwill around in terms of reaching it international companies coming into saudi in terms of military spending, in terms of the actual program? robin: it's a great opportunity for the saudis' neighbors to get involved in the program, and for international companies as well. bey the based in the -- will based in the uae. for me it is really about the diversification process, non-oil companies to get established. we hear noise about the ipo of story, butcinating maybe not so relevant for the small investor. but a critical strategic move. if you said that a year ago you would be booted out of riyadh, and now it is part of the plan. manus: robin, thank you for your insight and context. robin mills, ceo at qamar energy. a glimmer of hope for india after back-to-back damaging droughts. the forecast for the monsoon and fect on the economy is next. this is "bloomberg markets middle east." ♪ rishaad: back with "bluebird marke

and saudi arabia. say, despite what is in that 28 pages, that relationship would need to continue? >> fred, it's already -- >> it's already gone -- look, there's 55% of the world's oil reserves, it's in the gulf, under way way or another, saudi control, opec control. and we're worried about that. and also, the kingdom is very fragile. could it take a serious questioning right now by the united states or by the families? i don't know. the place is a mess right now. and the administration feels that we cannot take on saudi arabia on this today. you know, i just can't tell you. but for me, i would like to see lights shown on this. all right. bob baer, good to see you. thanks so much. >>> all right, coming up, airport lines around the u.s. just keep growing, and so does the frustration. look at those images right there. we'll take you live to lavorgna, right after this. differently look at paint question everything you know and what you don't know what if it's built with better ingredients given super powe

bin laden, of course, was a saudi.you read those pages, why doesn't the administration, for all of these 15 years, they've argued that there's sensitive information in dealing with sources and methods that would undermine u.s. national security, and that's why it's kept classified. >> i think it's a combination of reasons. yes, in part. there's a need to protect sources and methods, but that can cbe done. you can redact the information so the sources are protected. part of it is to avoid damage to the relationship between the u.s. and said rab whudi arabia. >> there will be speculation about what's in the 28 pages, even when released and i think there will be a lot of head scratching about how is this possible and people will certainly, many, lead to the conclusion that saudi officials had somehow been involved and that has not been corroborated and i think the american people can be entrusted to draw their own conclusions and get the information to have that balanced with what the 9/11 commission self did thereafter.

saudi leaders have repeatedly cited that conclusion as eliminating the possibility of any official saudie. >> if you look at the commission report, it deals specifically with saudi arabia's role that there was not a sod daudi role this situation. >> reporter: some 9/11 commission members do not dispute that defense. >> there is a substantial jump to suggest that somebody who had a job in a consulate is a representative of the saudi government. >> reporter: however, the conclusion intentionally left open the possibility that lower level government officials or employees may have played some role. even if they were not instructed by saudi leadership. and it is that lingering question that he hopes that the 28 pages release and further investigation will answer once and for all. the 9/11 investigation was terminated, lehman told cnn, before all of the relevant leads were able to be investigated. now, lehman said the fbi dropped the investigation of these individuals because they said they had insufficient evidence to indict. that is a pretty high legal bar. to be clear, though, i should say

you're going to see a more interventionist, a more active saudi arabia, a saudi arabia that carries its own water more and more in terms of the regional conflicts. what we've seen happening in yemen and what we've seen happening in syria this past year is a preview of what this new leadership intends on doing in the region. >> so a stronger, harder line against iran? >> for sure, tyler, for sure. and the point on that is going to be made in the oil market this summer when the saudis are going to ramp up their production to over 11 million barrels a day. people thought they couldn't do it, people thought they wouldn't do it. they're going to do it to supply their own direct crude burn to make electricity and make sure they don't ligs a single barrel of market share at the same time. >> high-stakes chess game. >> very much so. >> thanks, john. >>> despite the day's decline in oil prices they've been moving higher the past couple of months, up 70% since mid-february. that rise is being reflected in the price of gasoline, which over the past weeks alone, is up about 9 cents. the average pri

saudis.hat has been noteworthy is, since the failure of the delhomme record, you see a saudi moving more unilaterally outside the context of opec, talking 2030.an ipo and vision number ofw of a analysts, you can see opec playing a very marginal, irrelevant role. this vision of 2030 has been described as an opec obituary. rishaad: we get this all the time, and to quote mark twain, the death of opec has been greatly exaggerated many times. guest: but what role can they play now? when they sit down in june 2 indiana, i think -- in vienna, i think this will be the first naiming where minister 90 m will not be at the helm. it is unrealistic to think the iranians will agree to any kind of output cut, or that the saudis will curb any market strategy. the last event did not see us break $40. i said that to the kuwaiti oil minister and he said, there you go, and crew did not drop 40 bucks. let's say the iranians don't get on board, where does the price go? above $50 or below $40? would turn the clock

manus: abu dhabi is cutting spending more than saudi, 70% projected cut this year versus 14% in saudiat is outpacing your neighbors. guest: there is always room for maneuvering in saudi arabia. expendituresin during times of high oil prices were larger here than in saudi pressure to maintain spending is lower in uae dan in saudi arabia appeared here, you have a higher per capita income then saudi arabia. workmuch more expatriate days. manus: you have been talking --ut bahrain going silver in sovereign -- there is a rush to issue here at the moment. is that going to escalate, do you think jacob is that a constructive think the market code does it bring more liquidity? guest: there is definitely a liquidity squeeze in the region. we started 2015 with ample liquidity in the banking system domesticovernment has banks to finance their deficit, causing this green spirit going for it, if they want [indiscernible] governments will have to rely on external debt. is significance. if we take just saudi arabia as an example for the next five years with the financing requirements, about 50% of the

the saudi's have done the same thing.y are talking about diversifying the economy that is what we can help them do. talking about expanding the health care capabilities. we can help with that. human capital development. creating higher skilled labor force that can do different things these are all in our sweet spot as investors. they told us what is important. we now can align with that and that is the substance behind the commitment that we have seen. >> your oil and gas units. the whole industry is been suffering. down about 20%. operating profit down from 30%. you see opportunities? >> sure we do. we look at that all the time. we think that the low point of the cycle is ready past. there will be buying opportunities. in our world there has to be a willingness a cellar for us as a buyer to come together. we expect that there might be some of that. we are taking a cautious approach because we want to make sure that everything we do is that you created. recently spokelt about the unallocated capital at about $50 billion.

the revenue side of saudi arabia. of course, the goal is a lofty one. by 2020, we heard saudi arabia will raise $100 billion. this is a lofty goal to me. however, it is basically telling the world, listen. we will not just rely on oil. as we are doing this, we have appointed new people who are responsible to delivering at the same time. we will be going into tourism. we will be going into minerals. we will be doing the things that will help us leave this dependency on oil. it has been there for too long and now we will try to do it. anna: thank you for joining us. john sfakianakis. stays with us a little longer on the program. here are your highlights for the week ahead. an emergency meeting over austerity measures for greece . nebraska holds its republican primary. the house of congress will vote on the impeachment of president rousseff. andbank of england decision the inflation report. ending the week, consumer debt appeared coming up next, shanghai stocks slump as the trade date disappoints. ♪ back, anna: -- welcom

that the saudi's are selling everything. it is not inconsistent with the notion that the saudi's and oil was falling that they were divesting some of their global equities and putting some money into bonds. the question that raises is what are the treasuries that are owned by saudi's. not identified by saudi's. those that are held under the name of the hedge fund. manus: they place money with huge hedge fund. this is something that is got to be very complex. going back to the new york times article about congress found the liable. $750 billion worth of bonds. >> why wait for 42 years? the stabilization in u.s. bonds? the fear of the retaliation that may be taken the saudi's in case the reports may be arisen or not. i think this is a good start for the story. i would like to know how much saudi arabia has to sell in u.s. and non-us stocks. manus: the sovereign wealth funds were accused of divesting during that quarter of 2015. what about the complex in terms of typically countries having two thirds of their reserves in dollar

typically, on the saudi. prices have risen. >> we decided to start a review in march, following the drop in oil prices. we wanted to see how impacted public finances, and the fiscal reaction function of the government. and what we found is that saudi arabia, oman, and bahrain are more volatile to oil prices. thet was a double-digit next couple of years, and a substantial increase. yvonne: just a quick question for you. we have seen oil prices, they have stabilized, from january. is there a floor you look at, that could possibly push you to move again on the rating? acknowledgeah, we there was a liquid oil price recently. but that does not change our view that there is a fiscal change in the old market. and we have seen substantial change since last year, several factors mainly the price hike. manus: let us talk about the difference across the region. because that is something which comes to play, just set out your score in terms of differentiation and how you look of that between the producers and exporters.

rishaad: saudi arabia is now issuing ious.ncern would there were any problems on the financing side of the budget. there are still massive reserves and saudi arabia. assets are still 100% of gdp or more. that is not really a concern. it is more efficient cash management with what is happening now. that is still manageable. rishaad: let's have a look at what else is going on in the region. who is likely to have their ratings reaffirmed or even upgraded. >> we do have a positive outlook by the region. we have five negative outlooks. this kind of balance of one positive with five negatives is quite unusual. of course it also comes off this massive selloff in oil. the region may actually benefit from the decline in oil prices. they then face the political challenges as in tunisia and egypt. rishaad: on the other hand he the country that is so dependent on oil but you also that is diversifying its economy away from gas and oil. i would job he is heavily dependent on oil. in the dhabi category of seeking credit. they are generally s

saudi aramco's how cost is to increase the market share. but the saudi economy has to involve to become less dependent on oil. and i think this is part of the process that the deputy crown prince is doing to reengineer the economy to subsidy, for example, so the price of oil goes out to the consumer. it's all part of a wider process. and i think -- a new person at the helm will help in the process. >> what are your views with relations and iran going forward? it's no secret saudi is trying to prevent iran from increasing the market share coming on production line here, now there are readings saying the royal family is taking a greater role in the oil post. do you expect that to increase with iran? >> i think it is more of a political gain than it was before. i doubt whether saudi arabia can really stop iran increasing its oil production. i think what it can try and do is create enough room for iranian oil. the lower price environment will start to see it fall rapidly and hopefully there are room for both sides of oil and iranian barrels. >>

reporter: women aren't allowed to drive in saudi arabia.there has been a heated debate over this in recent years, and it's no longer dangerous to make art about the issue. zahid explains that he only wishes to depict saudi arabia positively. he shows islamic religious scholars eating ice cream or on fair rides. but zahid says it's not intended as irony. khalid zahid: there is a line, there is a red line for humor. if you go, you pass that red line, you lose your message. it is not an art piece anymore. reporter what does it mean if : something is no longer art? is this not self-censorship? we're heading to northeastern saudi arabia to meet our next artist. but it's not going to be easy. the ministry of culture and information is trying to block us, saying it's too dangerous for a western camera team. finally we're able to obtain permission to go to qatif, where the largest concentration of the shia muslim minority in saudi arabia lives. we meet hussein al-mohasen. he found fame by making prints of tanks on which he wrote words such as "ice

saudi arabia is getting ready for the twilight of oil.tically largest sovereign wealth fund for the most prized assets. the public investment fund will control $2 trillion. joining us again is his , two trillion dollars, this is going to be a beast. my question is this, the pif many said was a sleeping giant, it will not become a roaring tiger. that will set it up in competition with qatar, is it? as more of, i see it a company mentoring environment. each of the countries is trying to diversify their economies and create more efficient organizations. so, i think there is more complementary there than competition. manus: the other dynamic is the corp,ion for saudi iran is that other market in the middle east ready for an ipo of that size? inmood: that would be regional markets, but not for the global market. but yes, markets are ready for it. manus: when you read this, it has huge ramifications for the region. we caught up recently and said that i would dudley -- abu dhabi, it has ramifications for the region. how concerned are you about t

that is mostly held by saudi banks. the g-7 energy minister said they will promote investment and energy products to ensure a steady supply of the oil price drop. the pledge comes after meeting in japan. the u.s. energy secretary told bloomberg that the oil supply glut will ease over the next 12 months. >> that is no question that we have an oversupply relative to demand, but as was discussed with the international agency energy, they made a presentation over the analysis. there is a chance that the oversupply in roughly a year. will care more from the u.s. energy secretary later in the program. powered by over 2400 journalists in over 150 bureaus in the world. this is bloomberg news. manus: let's get up to speed. from thelis joins us touchscreen. another tough day in these ugly markets. -- in the equity markets. what are the markets making of the chinese news? david: this was one of the key areas of focus today. most markets in asia are trading for the first time at the pmi data. the economic is slightly better at the

and the same with saudi.the only place really curtailing production is the united states, where the bond market is basically said, don't sort of drill on economic wells anymore. the u.s. is basically shutting wells, but the rest of the world seems to continue to produce. so the supply and demand balance is a little bit better than before. but in order for oil to kind of hold a sustainable appreciation, weeding real growth in the emerging markets. if you look at demand growth in the emerging market, it is basically stagnant because of aging populations and efficiency. the real demand growth has to come from emerging markets. doesn't comeat through, you think we top out at $50? david: exactly. we don't think we will ever go back up to $100 unless there is a geopolitical issue, which no one hopes for, but basically with the demand and supply, we are within trading range. manus: caught in the corner, thank you very much for joining us. you come back in and see if. that is david pinkerton, chief investment officer

it's saudi funded mosques preach a message much like the saudi ideology of was hobism.hfeen malik, the san bernardino killer, is a product of radical islam globalized. up next, a crucial question. when we ask why they hate us, how many are there in the first place? >> 300 million people ready to strap bombs on their bodies. >> they say at most 100,000 people. >> getting the facts right when we return. here's the plan. you're a financial company that cares, but your logo is old and a little pointy. so you evolve. you simplify. you haven't changed. you still help people live their best lives. and finally your new logo is ready, and you decide the perfect time to show the world is right... now. or building the best houses in town. or becoming the next highly-unlikely dotcom superstar. and us, we'll be right there with you, helping with the questions you need answered to get your brand new business started. we're legalzoom and we've already partnered with over a million new business owners to do just that. check us out today to see how you can become one of them. legalzoom.

move have implications for the saudi after the doha nonfreeze, non-deal orchestrated by saudi arabia>> yes, i mean, i definitely don't think we should expect a radical departure. khalid al-falih is talking about it being left to the market to rebalance on its own. so the production freezes are definitely out. but that's the same as it was under ali al-naimi. there are a couple things that matter more, there's the backdrop of saudi arabia's vision 2030. this big strategy being championed by prince mohommad bin salman. we need to see more specific policies. but in the nearer term, we might start to see less oil burning during summer in the domestic power sector. that's traditionally driven a big increase in saudi crude production to feed the domestic power of demand. and i think with new gas production, with solar, with the alternatives they are trying to put more focus on, we could be in for a slightly smaller seasonal round which may catch the market a bit by surprise. >> richard, very quickly, on wti we found a sort of base for oil prices for the rest of 2016? >> not for the rest of

if that's going to happen, the saudis don't want the iranians to get much revenue out of it.they, this is an additional argument, why they want to keep the price of oil comparatively low. >> sreenivasan: sarah, how do they stay competitive here? iran wants to wake up out of these sanctions. they want to get their market going and find a lot of kuses meres. at the same time saudi arabia can pull more crude oil out of the ground faster than anybody else. but they need that mon for their society to function. >> it's a great question. i mean, i think when you look at what the saudis contribute to the oil market historically and currently it's about 10 million barrels a day and they have the lowest listing costs in the world and they have their capacity which means they can bring more on quickly. i think the real challenge for them is looking at this period long-term, is to try and insulate their economy from volatile oil markets, right? i mean part of what people see in their activity today is some of this sort of geo political rivalry. but if you look at it from an oil market pe

the saudis wouldn't do anything because the iranians wouldn't partake, and you hear saudi arabia saying we may consider taking iran co public, in an ipo, would you buy that deal? >> no. no. maria: why? >> i wouldn't buy it with stolen money. [ laughter ] >> why? >> well, do you think you're going to have stockholders' rights? maria: no. >> zero. how do you like that? anthony: what about a dividend? >> i'd rather buy pioneer. anthony: what are the top three names, boone? >> mine? anthony: yeah, top three. >> pioneer, enron, anadarko. anthony: if you had to pick a big oil, which is the best of the big oil? >> i'd probably pick chevron. anthony: chevron. >> but big oil, i don't know what they're going to do, i don't know what their future is. they now have turned their end decline on production, they have to acquire reserves, they probably aren't going to find it, and they missed the shale play. chevron is big in west texas. anthony: do you think any of the oil companies would cut their dividend near-term? >> it will be horrible if they do. i'd rather cut capex than i would -- but exxon is

she later moved to saudi arabia. >> so malik lived in saudi arabia and pakistan, and to what countryaudi arabia most lavishly and successfully exported its ideology? pakistan. its saudi-funded mosques preach a message much like the message of wahhabism. tashfeen malik, the san bernardino killer, is a product of radical islam globalized by saudi money. >>> up next, a crucial question. when we ask "why they hate us," how many are there in the first place? >> 300 million people ready to strap bombs on their bodies. >> they say at most 100,000 people. >> getting the facts right when we return. we stop arthritis pain, so you don't have to stop. tylenol® 8hr arthritis pain has two layers of pain relief. the first is fast. the second lasts all day. we give you your day back. what you do with it is up to you. tylenol®. >>> if you believed everything you heard about islam on certain cable news channels, you would have good reason to be afraid. >> we need to kill them. >> very afraid. >> how many numbers are we talking about. the world has 1.6 billion muslims. how many are we talking about? >>

the saudi oil minister committed to maintaining saudi output. oil prices are up.have to leave it there. we will come back here. we have a lot to talk about. a quick data check as we go to break. equity markets, futures up five. 56 on american. this is bloomberg surveillance. good morning. ♪ morning herenasty at bloomberg surveillance. .et's go right to john ryding .robability distributions a 50% chance of winning once in every 3500of thrones years, so less than to traders, fat tails. icester were put together at a cost of 57 million pounds. icester betting on le going forward? >> no. they were ridiculed. landbring this over to the and the idea of fat tails once every 3500 years. >> there was an article in the underdogsthat said are romantic, but in the end, you have bet on the winners. we have this no probability distribution. unlikely events are very small probabilities. capital was a classic example. swiss revaluation was another one. people use these risks models and calculate the risk model of recent distributions. all of a sudden, encourages people to take a

>>> saudi 9/11 connection?sion reveals new details of evidence that saudi citizens living in the united states were supposedly supporting al qaeda ahead of the terror attacks. what was their connection to the saudi government? we want to welcome our viewers in the united states and around the world. i'm wolf blitzer. you're in "the situation room." >>> he portrays himself as the ultimate outsider, but he is very much the insider behind closed doors with top congressional republicans in a series of important meetings, the most anticipated, a 45 minute sit down with house speaker paul ryan, who pointedly said he is not yet ready to endorse trump. tonight he is apparently still not ready. trump and ryan did issue a joint statement stressing unity and commitment, but all sides are also acknowledging the long road ahead, describing today as a first step in an on-going conversation. we are following new questions about 9/11. a former commissioner with the official congressional investigation tells cnn there's evidenc

the new guy has been at saudi aramco for years. he knows the saudi oil industry inside out. i would not expect radical changes in the short term. however, he is very much aligned with the new policy of saudi arabia. mohammed binose to salman, who is driving policy. there's a reason to think that saudi arabia will change its policy. i think they are hawkish. they are willing to let oil prices level, and that may be bearish. the final question, as we spin forward into the june opec meeting, through the chances of an output freeze diminished somewhat? will: i think that was off the table as soon as -- i do not think there is the time needed building blocks in place. kennedy, thank you very much. amanda? amanda: disappointing trade data sent shares in china sliding. let's go live to hong kong to get the very latest from enda curran. enda: good morning indeed. there was some tepid trade out of china this weekend, and there was not much in it for the bullish outlook. chinese economy stabilizing, but it is not really turning the corner. perhaps there is some weakness in demand as w

there is a lot of change going on right now in saudi arabia.s a period of catch up after many years of slow movement. it is something that global investors and local investors have been struggling to wrap their hands around. our concern is that the old ,riole -- the old order is gone but there is some uncertainty about the combination of policies going forward. in particular, related to implementation of the ipo trajectory, but also of the economic plans. the plan announced two weeks ago had a lot of good ideas, but it was a little bit sketchy on how that would be implemented, so we are waiting to see which of the priorities gets the upper hand, and i would highlight that oil prices, where they are today, make some of the transition a bit easier, but this is still one in which difficult decisions have to be taken, and it remains to be seen whether the government is comfortable with foreign investors taking a more meaningful control over local access, which would -- local assets, which would be implied by ipo. manus: what fascinates me is some o

saudi shakeup. the nation has a new oil minister policy and market share is likely to stay the same. the newly appointed khaled a close ally of the deputy crown prince. tonn kerry -- he has vowed maintain policy. how meaningful is the change? he's maintaining oil policy as it is. it's a shift in personnel but not an policy. you have to see how that the saudi's react to global market conditions as we move forward from today. mark: how does this fit into the greater overhaul of saudi arabia? >> it does significantly. to us twice spoken and has indicated he would like to wean the country from oil and is taking steps to do that. he has discussed oil policy, he has a new cabinet in place and this is all moving forward and his idea of where it will be envision 20 30. what we need see now is how they address the economic issues confronting the country. >> it's not going to be a straightforward transition, is it? >> no. the transition and personnel is the easy part. it's the addressing of the slower economi

allegations the saudis have vehemently denied. but the u.s.e this week unanimously passed legislation that would allow 9/11 families to at that titake the kingdom td try to get answered. even if passed by the house, president obama has threatened to veto the legislation. >> this legislation doesn't say that any person, charity or governmental entity is libel. it only says they can't hide from the truth. >> reporter: why would the u.s. president oppose the wishes? the white house says the precedent set would be disastro disastrous. >> he continues to harbor serious concerns that this legislation would make the united states vulnerable in other court systems around the world. >> reporter: but advocates say that's not true, that the bill's language protects the u.s. from retaliatory suits. >> the administration does a very dangerous thing. and that is to suggest that our activities in fighting terrorism are the equivalent of the activities of other countries in financing it. >> reporter: back in 2004, the 9/11 commission says it found no evidence

originally when the saudis allowed the price of oil to fall, their target were u.s.le producers. and to an extent they made it uncomfortable for u.s. shale producers. but they have a renewed target now, which is iran. which which wants to expand its oil production. if that's going to happen, the saudis don't want the iranians to get much revenue out of it. so they, this is an additional argument, why they want to keep the price of oil comparatively low. >> sreenivasan: sarah, how do they stay competitive here? iran wants to wake up out of these sanctions. they want to get their market going and find a lot of kuses meres. at the same time saudi arabia can pull more crude oil out of the ground faster than anybody else. but they need that money for their society to function. >> it's a great question. i mean, i think when you look at what the saudis contribute to the oil market historically and currently it's about 10 million barrels a day and they have the lowest listing costs in the world and they have their capacity which means they can bring more on quickly. i think

/saudi discussions on a civil nuclear agreement. discussions have taken place on and off for a number of years, and they're stalemated at the moment. the saudis are prepared to meet all -- most of the critical requiremen requirements, u.s. requirements for a civil nuclear agreement, and it has incentives to conclude an agreement with the united states. the saudis have an ambitious nuclear energy plan. they want to have 16 big power reactors. they'd like to get started as soon as they can. but the u.s. has, at least for the time being, been adhering to the so-called gold standard. richard alluded to it before. the gold standard was reached in the u.s. and miradi civil nuclear agreement in which the uae agreed to foreswear all enrichment and reprocessing permanently, essentially, not just enrichment of u.s. origin material but throughout the country. it did so because it saw no need for it in its civil nuclear energy program and realized if it pursued enrichment reprocessing, this could stimulate others in the region to follow suit. w

the trading partner before that was saudi arabia, three miles away.do these for court -- what do these poor countries hold? whether it is donald or hillary, just having a consistent platform policy about what we're doing in the region, we are becoming independent, which is great, but we should reward the energy producing middle east partners helping us to camp out terrorism abroad. >> when he says -- let's little while on the mexican border, ban muslims, are you saying he's just deliberately trying to be provocative in order to get people to recognize that it is an issue around which there has to be a different kind of discussion? tom: i'm certainly not all rights to steve for him. i think he says he's going to do it unless the muslims help him. i'm saying it is hyperbole. just like he is doing with paul ryan, saying -- i'm tough enough that i will really ban muslims. ?o, what has happened what does that mean? we had better really start figuring out ourselves. we are america. i promise you that the problem has been -- or good allies are all trying to

saudi's veteran oil minister is replaced. as australia heads to an election in july, it will be the longest campaign in decades with opinion polls saying it is no -- necl amk and neck. >> filipinos go to the polls today. for continuity or change from manila? ."gie: welcome to "first up i am angie lau. let's check in on the markets in the asia-pacific. new zealand, we are seeing losses of one third of 1%, but it's a stronger new zealand dollar at $.68 after china's exports show signs of stability. we're counting down to the open in australia and japan. futures in australia, pointing slower open.ally let's get over to japan, checking futures trading in chicago, pointing to a higher open, this after the nikkei 225 came back in the red after a three-day holiday. it was a -- it was one quarter of 1% down. we've got the japanese yen weakening. of course, no trading in the philippines because it is election day. the latest trade and foreign exchange data from china point to more stabilization, but signs are modest. we've got stephen

vonnie: we have our own saudi arabia assets? john: i do not think we have saudi arabia assets.ng is that the saudis are issuing bonds. they have not needed to issue bonds in the past because they collect so much dollar revenue from oil investments. they've started to issue on's recently. jon: the speculation has increased. last week the speculation from bloomberg was that saudi arabia was paying contractors with ious. are you shop? john: and you have aramco, and there is a general situation that saudi arabia is looking for tools to raise cash. they have a cache flow, a future cash flow that is robust in oil flows. they are trying to monetize that . it is an interesting space to watch. euro bond$9 billion sale. them.uge upscale for the story in the crude market and the derivatives around it. john bellows is sticking with us. we are 9 minutes away from the cache opened in new york city. dow futures up 35. , theax in europe rally continues. ♪ jon: this is bloomberg "" i'm jonathan ferro alongside david westin and vonnie quinn. the fed, minutes from the april meeting revealed

there were at least saudi officials, members of the saudi embassy and intelligence operatives who were working with the hijackers, getting them apartments, giving them money, meeting with them and enabling them to meld into society so a year later they could get on the planes and hijacked planes. now they are playing kind of a word game, the commission said there's no evidence that high-level officials were involved. well, rarely does the president of the country go into a foreign country with arms and do it himself. they are low-level officials but the saudi government is responsible for their action. jon: the saudi's have said if this bill passes they're going to go $750 billion of their investments out of the us economy. to that you say what? >> it's a silly lie they said when we started the case 14 years ago. they're never going to pull out their money. it would hurt them much more than us. they're doing everything they can to stop it from being law because they don't want to face the fact from the evidence that it will show americans and the world what they did. jon: the u.s. sena

the emails name saudis nationals in the u.s. with ties to the saudi government who assisted the 9/11 terrorist. trump foreign policy advisor walid phares is with me now. first and foremost, what is your take on that report? >> what that report mentioned already is not yet the 28 pages we're all waiting for but it shows that a number of the perpetrators had ties to people who had ties to the saudi government. now the questions are what level of the saudi government. were they officials, consumes, diplomats, military? no matter what is the case i'm sure many citizens would like to make the case we can now ask the saudis for reparations which defense of the saudis would say there was no political decision at the level of the government. so they're going to try legally but i'm not sure about the results. >> so the senate, walid, just passed a billeting 9/11 victims sue saudi arabia over the terror attacks. what does this mean for the relationship between the u.s. and saudi arabia and, what does this do to the u.s. potentially furthe

arabia, that will certainly bring it down for saudi substantially.us: what about the rest of the region? others are nowhere near. dr. melhem: some of the other qatar,es, like kuwait, the break is lower than saudi arabia. $45.t is estimated at the ones that are not our .ahrain and oman these are the ones that will have to take substantial measures. to break even. manus: let me circle back. 90 you spent time at the imf. dhabi is cutting more aggressively than sony. the imf says abu dhabi could step. should they? dr. melhem: they have the financial resources to step back but frankly, once the low oil prices have made the impetus for cutting and if the cutting is cutting some of us that it is not necessary for future growth, it is much easier to cut when things are down when things are really doing very well and oil is at 60 or 70. harder from amuch society standpoint to understand why you're cutting. manus: indeed. dr. melhem melhem, thank you very much for joining us. that is it from us, then to you. rishaad: coming up, years of political turmoil is tu

that some say may show ties to saudi arabia.oyal family, someone in saudi arabia financing at least one or several of the hijackers of 9/11. this, of course, almost 15 years after 9/11. five years to the day after usama bin laden has been killed. and the former chairman of the select committee on intelligence bob graham saying it is incredible that it would take over 13 years to review over 28 pages. back with the panel. charles? >> well, it depends on whether what john brennan said is true or not. if is a corroboration of material some true some not. all read by the 9/11 commission. and they decided that not be released. then it might injure us if it gets published. i think if that's not the case, we should obviously put it out even if it is going to hurt our relations. but, i mean recommendation the larger story is we have always known that saudi arabia is ultimately responsible for 9/11. the with a hab buy ideology spread all over the world, the that drosses, everything that has come out of it. this was a tiny minority sect o

we have always known that saudi charities and saudi individual have been very problematic in funding terrorism. we have to do more to crack down on the saudi government so they stop the individual and the charities. but at the end of the day, i don't think it's a good idea to allow individuals to sue a foreign government like the saudis because they are an ally. like the or not, they were the ones who were supposed to be blunting the iranians. and in this administration for the past 7 years the rape with the saudis is dismal. they are hitting back on them pretty hard. charles: rick, you are in a lonely position on that. morgan, last word. >> having lived in saudi arabia for almost two years working closely with their government, they are an important key ally on the war on terror. we have to have friend in this region. we can't go after al qaeda and isis alone. charles: i think they need us more than we need them. but be that as it maid. i'm happy for the families. if this goes the average americans, these guys have not been our friend and have abused our friendship. >> let americans

tashfeen malic. >> she later moved to saudi arabia -- >> so, she lived in both saudi arabia and pakistanhat country has saudi arabia most lavishly exported its ideology? pakistan. its pseusaudi funded mosques. tashfeen malic is a product of radical islam globalized by saudi money. up next, a crucial question. when we ask why they hate us, how many are there in the first place? >> 300 million people who are ready to strap bombs on their bodies. >> at most -- here's the plan. you're a financial company that cares, but your logo is old and a little pointy. so you evolve. you simplify. you haven't changed. you still help people live their best lives. and finally your new logo is ready, and you decide the perfect time to show the world is right... now. it's easy to love your laxative when that lax loves your body back. only miralax hydrates, eases and softens to unblock naturally, so you have peace of mind from start to finish. love your laxative. miralax. what backache? what sore wrist? what headache? advil makes pain a distant memory. nothing works faster stronger or longer what pain? advil

♪ ♪ the saudi exchange is said to raise 60% growth.ls for the good limits on what they can earn in transactions. is building in turkey with increasingly bearish signs of a $25 billion stock selloff. space ass troubled it's drew doughty partners stop payments. feeling the heat from the middle east. it is 8:00 across the emirates. 5:00 in the morning in london. rishaad: in hong kong. just around midday. welcome to bloomberg markets middle east. >> we started the week with oil. you think there is enough oil out there in the world you might be mistaken. predicting the price of oil over or 25 years, the eia says you're going to need another saudi arabia to question the thirst of global demand. see is what we're going to in demand to over the next 30 years. 20 million more than we currently have. what is going on with the members of opec? the saudis are continuing to pump. russia is just on the tip. usa production is dipping. output is dropping for the fourth month in a row. eiaou go according to the the bulls are going to love this story. r

how do these changes affect saudi policies? are two aspects, one is oil policy as it has been since 2014. their insistence on protecting market share rather than trying to protect the price level, that will remain unchanged. he was part of the teen the kimball that policy and if anything, he is present team they came up with the harder line which in this on iran joining any freeze in production which seems to more accepting of not including iran in that freeze. the other part is, the story -- the count -- the saudi economy away from this oil dependence the toward one that relies on return on investment. he was part of the furniture, was indeed, at opec? -- wasn't t, at opec -- wasn't opec?op -- he at how can we suddenly attain credibility among those who are involved in oil markets and policy? >> it will take time and i think people will want to hear more from him. quantity,an unknown he has been head of the world's biggest companies since 2009, so he is an expert in the oil industry, very much a technocrat. is also very softly