templeton franklin expenses. >> with the big cuts in november, that weighted down on the occasions andwe really care about is the growth and what we see actually is there is an acceleration in the economy. let me ask you a more existential question. this fascinates me. we have a lot of people in the market are very positive on saudi arabia. yet we have these issues surrounding the economy, slowing economic growth. how are people squaring that tension? the markets are selected in saudi arabia is undergoing great transformation with government will see driving the response to different structures -- sectors play. -- sectors. there are those suffering from higher levies, removal of subsidies those areas the economy would be more honorable. -- vulnerable. we are getting these earnings and fast across the region. estimates, the first quarter also beating. what is your sense of the earnings season right now? >> i think this really goes to the heart of the matter in the equity markets. very encouraged by the long-term structural growth prospects of the region enhancing. in the medium term and

shery: an interesting note from templeton and mobius backing that call, markets currently trading at% discount to historical you wish and's, so what is the expectation for you when it comes to equity valuations this year for gulf markets? be where wet will are currently seeing it. they will be flat if not lower in best case scenarios. it is a challenging capital market environment from the equity side, but i don't see any market, otherg to than the one widely talked about out of saudi arabia. yousef: that is it for "best of bloomberg markets: middle east." we will be here for the start of the trading week in the gulf sunday morning at 8:00 a.m. on bloomberg television. i am yousef gamal el-din. do join me then. th ♪ >> coming up on "bloomberg best" the stories that shaped the week around the world. face-off, in france in the u.s., tougher these are rules, and jamie dimon's letter to shareholders. >> the bank is preparing for a hard brexit. >> we will find a way to improve and increase our commercial relations. >> jack lew speaks his mind and another exclusive.

pat mccabe was a partner with templeton and company and mike archibald is subbing and for -- mike is the former ceo of several or many public companies including gnc and talbots. welcome to all. jean taken away. >> thank you very much. thank you so much for coming. i love the name of the panel. we are going to tell you what reform is coming because apparently nobody knows you. we are still working on it and the class is ticking down. will we get anything done this year and was? i will let scott start off and then we'll go to q&a and then i will turn it over to the audience. >> are we okay? i guess the answer, and i will put a stake out here the answer is yes but not what you would expect. and so, just step back especially in the last couple of panels and think about what we have witnessed so far in washington with the trump administration. we have an isolationist president who has a redline. we have china now is a friend and not a currency manipulator. we have obamacare where people had run for seven years against it and we don't have repeal. and, we do not have a tax plan that anyon

templeton, franklin a star bond trader, but he is saying u.s.asuries are one of the biggest financial bubbles there is right now. take a listen to what he had to say. >> it is in our view one of the biggest financial bubbles out there. if you look at economic growth, inflation, foreign buyers starting to walk away, these numbers don't make sense. it is like walking on a lake in april, still frozen, but eventually it will crack. we see then how much bond trade in negative territory, is this a mini selloff is that search for yield continues? >> on government bonds specifically, the treasury, our view has been for a couple of quarters irrespective of trump, people underestimated inflation, at it now, they no longer do that. inflation has room to go up a bit, so we replaced some u.s. treasury positions, a couple of years potentially. we put that into inflation-protected treasuries. treasury yields have a little bit to go up. we targeted 2.5% by year end, but it is not something in my view that is to worrying, but within the bonds, if you look at wha

shery: an interesting note from templeton as mobile app backing that call.kets are currently trading at 50 to 20% discount to start -- 15% to 20% historical discount. >> i think it is going to be where we are currently seeing year-to-year comparisons. not lower in if best case scenarios. it is a challenging capital market environment from the anymoreide i don't see new ipos coming to the market other than the one that has been talked about out of saudi arabia. yousef: the latest commentor on the balance sheet shrinkage, how is is going to impact this part of the world? is it not going to be that second tool of monetary policy? closely toook very the minutes, they keep using very relevant terms -- editable, saving, shrinkage of the balance sheet. i think of be nice that that does not have an impact on the timing of the monetary. the question is what level of impact is it going to be? yousef: great to have you on the program. let's get you up to speed with what is still coming up. we have london. they what a piece of the aramco ipo action. theresa may made the

earl are today -- earlier today we spoke to frank when templeton about where he is shifting his money>> we have sold out of poland and hungary and ireland and really deployed those assets into other parts of the world. latin america, for example. mark: back with us, john rowe, head of multi-asset funds. we'll start with the chart. the white line is the emerging market currency index which has been heading upwards. blue line is the bloomberg commodity index, a gauge of 23 commodities. they mirror each other. what is going to give? >> on the way down, you've got two concurrent problems. a slowdown in commodity prices which was partially caused by the change in the opec stance on the oil side and the unexpected resilience of shale oil. you have a combination affect pretty much from the start of 2016, where you start to get the better news out of china. so the growth site is announcing its normal policy. for me that is one of the biggest things to change as well as the adjustment in those countries that needed to adjust to a term of trade shock like a big fall in the commodity price. when

joining us is a reporter from franklin templeton investments middle east. chief investment officer for a company. thank you for joining us. i want to start with saudi arabia. this is a function on the bloomberg. you can see that the ims projection for saudi arabia's economic growth in 2017 and 2018 is actually more pessimistic than what economists surveyed by bloomberg are forecasting. they are saying growth will increase by the .6% in 2017 and 1.8% in 2018. what does the imf see that the rest of the market has? the imf numbers reflect the adjustments made in the oil economy. let's not forget that most of the gdp of saudi arabia is oil production. the cuts that were enforced in november way down on growth expectations. what we care about is the nonoil growth. is that there is an acceleration of the nonoil growth in the economy. that is probably embedded in the bloomberg forecast that you mentioned. tracy: let me ask you in existential question. if things like we have people in the market who are positive on saudi arabia at the moment, yet we have issues sur

franklin templeton calling u.s. treasury one of the world's biggest financial bubbles.ast five days have shown a little bit different picture but we will see if that continues. guess where else people are talking about bubbles? the u.s. stock market, of course. , the s&pq hit a record 500 and the dow not far off their all-time high. the s&p 500 and shanghai composite and not been is split since 2008. that was just before the collapse of lehman brothers. manus: it's a new edition of daybreak, it's not just us. this is this morning's top story. they taken this to a whole new level. the president wants to introduce a 10% tax on $2.6 trillion of u.s. earnings according to a white house official. is calling for a cut in the past through business to 39.6%. will have more details on the tax plan later today. we've heard from credit suisse already this morning which is holding on to its with brain -- banking unit and planning a rights issue instead. confirmation of something that's been talked about for a long time. the income beat analysts estimates. the ceo is sitting down wi

templeton and fidelity international are among those endorsing measures recently announced by regulatorso curb leverage. they want more transparency and speculation. they called on authorities to fight it falling to a three-month low. oils gradual recovery easing the pain of shipping outlook at china's -- output that china's companies. production had fallen more than 6% from a year ago. net income doubled even as output fell slightly. sina faces a drop in production. china is ahead of the u.s. as the world's top oil buyer. it is a rare case for an activist investor, targeting a private equity term -- firm. they own almost 5% of kkr. they are discussing the possibility of converting kkr from a partnership to a corporation. their shares as 5% overnight to a one year high. foriba said to favor kkr its memory chip operation. but the selling of the unit vettingce a prolonged process with the japanese government, desperate to avoid the technology going abroad. they are inclined toward assisting the capital investment and funding. global news 24 hours a day, powered by more than 2600 journalist

franklin templeton has called u.s. treasuries one of the biggest financial bubbles.shown where we are with this yield, but also where some of the forecast are. morgan stanley saying markets underestimating the fed. he's calling for 3%. scott at guggenheim saying the low yield camp will ultimately prevail. french presidential candidate marine le pen is softening her position on europe , speaking on the country's most-watched television station. downn refused to be pinned on whether she wanted to leave the euro, a position she's championed in her campaign. she also used the appearance to attack rival emmanuel macron. >> are they going to vote for someone that has the globalization of the society as a whole? the project of mr. macron is petra seidl. to rise upg communities against one another, to rise up employees against one another, especially with a directive on workers that he won't question. mark: emmanuel macron returns to the campaign trail after a criticism that a victory dinner he offered his team was premature. also speaking on french television, the centrist

joining us for more is david zahn, head of european fixed income at franklin templeton.een how this has played out in the bond market for european bonds. all this uncertainty has certainly spooked people a little bit. what would you be telling people to do at this moment? >> i think what we have to do is look at the fundamentals. and i think that theresa may calling an election will solidify her majority in parliament, which will make it much easier for her to negotiate, and get anything passed that she does negotiate. so i think that's positive. for the brexit outcome. and so we think that, you know, uk bond yields will continue to do well. conservative government tend to be very fiscally austere, and so therefore that should be beneficial, and the pound, i think, is seeing some optimism that yes, actually, there could be a good outcome. and i think that's important. >> so you would be telling people to go ahead and buy, that the risk is less than might be implied not only by the uk situation, but also by the french elections this weekend? >> well, i think we have to sp

.) >> good evening i'm sorry john william templeton the author of the black experience in san francisco also subject matter on african-american in the western park services the materials that the parents have asked for are there's evidence behind - and james taylor mentioned we have tested it with students in the district to we look forward to meeting with the board and the staff were already doing map training for the last 12 weeks we look forward to taking a large chunk out of 3, 5 of the african-american they're voting with their feet not given a reason to go to school we're asking for trouble and it's time to change that right now thank you very much. >> (clapping.) >> hello my name is twinkie it a student and 2k3w508d and here to speak on behalf of the mr. chaefdz i only recently visited burton high school but in the short time i've been here can say interests not ever been in my hive a teacher that is dedicated and pours the heart and soul into his work his time and energy to make sure we are the best we can be as individuals and as musicians and i think that very important that s

. >> it was just the three of us, the templetons.s the boss. and to a 7-year-old, they have taken over. and there is a limited amount of love. >> how great is alec baldwin? >> it's heaven. it's hilarious. it's -- he is hilarious. and it's just so perfect. it's perfect. you hear that voice coming out of a little suit with the baby and they made it the cutest baby. >> cookies are for closer. >> what's the process like for you? >> i think it's really hard because it's just alone with your voice. but i was lucky because i got to do one day with jimmy kimmel. >> don't be jealous, tim, he's just a baby. >> that was sort of like oh my god, i'm actually hearing. i'm just racking. because when you think about it, i didn't realize how easy acting was when there is another actor and you react. you just listen. >> how would you describe lisa cued cud degree a kudro as a bo. >> if they ask for it. i'm always offering advice even if they don't ask me for it because i'm older so i feel like i'm entitled. >> we have to convince them that we lo -- >>