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

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

that the united states helped contain the too dangerous regional powers in iraq and iran in the east while they are settling the tension in the court area of the middle east by promoting peace in israel and its immediate neighbors. with george bush it was different and his administration found a way of dealing with the arab issue and the famous letter to prime minister sharon. we will to some extent grow with the war and terror. israel was on the right side of the war of terrorism. 9/11 totally transformed the bush administration and certainly its foreign policy. so in addition to being able to settle these relationships, the value and strategy, in the two countries the president here in the prime minister in israel are key players. when they have the relationship, the whole relationship drives. it happened of course between clinton famously, but also with bush with sure ron and bandwidth haunted. they had a very gross relationship, almost daily talks between the chief of staff and the prime minister national security adviser. he came to an end of the obama administration came to power. two things happened both here and israel. when america went left

haslinda: the middle east and lingerie, they hardly go together. i mean, when you talk about it, the lingerie business, you do not think of the middle east. how has demand been? what are the women wanting? christopher: well, our -- the lingerie business -- our lingerie business is not what people think of. our number one color that we sell is nude and our number one bra that we sell is a pure, basic, everyday bra. so that is how lingerie, or our lingerie, works in the middle east. it is not the idea that people have that lingerie is only about fantasy and seductiveness. it is an every day basic need. that is the strength of k.lynn. we sell our bras as a basic eauty product. as women do their hair, or their makeup, they also must have the right bras to feel comfortable during the day. and that is how we are able to grow, despite having a little bit of a cultural difference when it comes to what you can say and you cannot say in the middle east. haslinda: isn't it fair to say that you were thrown into the deep end when you started the business in duba

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

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

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

but it shows you how the middle east has changed. rael doesn't see itself as a zero-sum game, that the u.s. can be both close to some of his pragmatic states as well as close to israel. you mentioned the idea by trilateral relationship and is one if you could expand on it israel would fit into that, whether it's through formal arrangements or informal understandings. >> thank you, david. the meeting is supposed to take place in february. hopefully it's going to be on december 26, that's my birthday. and i'm going to be 20 the third time, 20 years old. [laughter] the reason i want the prime minister not to come in before the 26th is he is supposed to be in australia, and it's the first visit of an israeli prime minister in australia since israel was established and it was postponed several times, because of the war in gaza in 2014 and then the president was supposed to be there and couldn't make it. so i was just an australian and i know how anxious they are to host the prime minister. hopefully he will get there on time. but whatever

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

are you helping bring peace and stability to europe, the middle east and asia? ad to be the land of milk and honey because the middle east has better days and worse days. we got that. but there is no expectation that everybody in the middle east can't be happy and there can be anybody shooting anywhere. but there is a potential for conflict and to stay out of control. i think that is important task for the president. >> i think that's right. that's an important point. and it kind of goes the point you made at the beginning of the show about legacy and survival in the future. i think that is, that is an interesting question in this context right now. i think it is a fair argument, fair to say that we just had probably the first presidential election in Ãfor decades that was in some ways a referendum on whether america should continue this project. continue the project that will have this strong nato, strong alliances, deter great power conflict in asia and stand by the allies there. japan was debated hotly. it is our alliances about neutral benefit or alliances in

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

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

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

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

saudi arabia's largest economy in the middle east. ue between 10 and $15 billion. that make it the largest on the issue from the middle east ever. on todi arabia is going sell. planning to raise $7.5 billion as a trust to shore up its battered finances after all that. this is according to people with knowledge of the offering. they are already receiving bids. basic argentina upon $16.5 billion out in april. >> this bond issuance is very much like an ipo. the economy itself is at least on oil. this is the press that and it is a very aggressive step into diversify outside of the oil space. the bonds themselves are really just a face for the ipo for sony ramco 57's will eventually go to to increase their capitalization or read cap -- recapitalization. >> up next on bloomberg best year and review. the complex task of steering the u.k. to an actual brexit. >> the time one would be very helpful. this is bloomberg. ♪ ♪ >> the european union to another big shot at google. the complaint is that google is restricting contracts with makers of tab

he's worried about the middle east is in flames. which i think we all agree the middle east is in a troubled area. that gets to something -- and another thing you canan grade oe obama and the next president as well is -- i think there are three parts of the world wherelarg the united e states does have a vital r interest, where a large-scale destabilizing regional conflict in thatpa partct thi of the wor be of such disruption that it would really impact us.pact vit maybe not directly, but certainly would impact our vitae interests and potentially could lead to a aeuro larger scale wa. those three parts of world are europe, the middle east and asia. i think whether you look see ban president obama and saying how well he did or whether you are looking forward to president t trump, one of the things you want to evaluate them on is, are you helping bring peace and stability to europe, the middlee east and to asia.use they not that they have to be land of milk and honey. the middle east has had better days andnd worst days.n that e got th

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

let's bring in tracy alloway with the middle east reaction to trumps travel ban. know the travel ban applying to seven nations, for dominantly muslim nations. tracy: that's right. reaction weeresting have had from the middle east overnight is probably what has been coming out of iraq, iraqis parliament members urging the government to create a reciprocal and on u.s. citizens getting visas for the country. measure, butnding indicative of the emotions and controversy stirred up by trumps executive order last week. speaking of which, the other interesting thing overnight was one of trump's aides telling bloomberg television that saudi arabia could be under consideration for the travel ban to be included on that list of seven predominantly muslim nations. i don't need to tell you that if saudi arabia were included in that executive order, that has the potential to redraw the regions political lines and alienate one of the biggest allies in the region. tracy, this has caused quite a stir around the world. do we know what happens next in terms of any legal steps that co

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

, what they did is sent james baker into the middle east, and he set up contracts throughout the middle east before 9/11, then they came and we had traces in t the twin towers with three times as much production now we scratch our heads and wonder w why. changing the topic above it. >> guest: we all agree that it is a troubled area. but that gets back to something that obama and the next president as well. there are three parts to the world where the united states does have a vital interest where the large-scale regional conflict is something that would be such a disruption that it would impact us. maybe not directly, but certainly it would impact thein interest and potentially could lead to a larger scale. looking back at president obama, what are the things you want to evaluate them on if are you helping to bring peace and stability not that they have to be the land of milk and honey because they have had better days but everybody has to be happy and there can't be anybody shooting anywhere. are you reducing the potential for a conflict and to spin out of control, i think that

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

its first foray into the international bond market. >> saudi arabia is the largest economy in the middle east come to market with what we are told will be an issue between $10 billion to $15 billion. that would make it the largest bond issue from the middle east ever, after qatar's $9 billion raised this year. mark: saudi arabia is going on a sales spree to raise $17.5 billion as it tries to shore up its battered finances after the slide in oil, that according to people with knowledge of the offering. saudi arabia already receiving bids for as much as $67 billion beating argentina's $60.5 billion in april. >> you have got to remember this bond issuance is very much like an ipo of saudi aramco because the economy itself is based on oil. this is the first step, and it is a very aggressive step into diversifying outside of the oil space, and the bonds themselves are really just sort sort of a feint for saudi aramco that they will go to in order to increase their capitalization or recapitalization of their oil asset. guy: up next on "bloomberg best: year in review," the thorny business of regulat

western world who always feel to understand what we face and that the main obstacle for peace in the middle eastany palestinians do not accept the right of the jewish people to preserve their own democracy in the middle east. we saw it in the un security council resolution, that instead of focusing on hatred and terrorism and the bloodshed in syria, in iraq, in libya, also here. terrorism as we saw today. they blamed israel for the situation. you are straying into many other areas now. can't we just come back to this attack. clearly, what will emerge in public about who this man was, what do you expect to happen now? what is the government response going to be? we are looking to see if there were only partners or people he knew about this or he could have prevented it and things like that, but generally speaking we are very experienced, unfortunately, with fighting terrorism. even when many attacks are being carried out bya many attacks are being carried out by a lone wolf, even in europe, in most cases we do manage to detect them in advance and to intercept them. unfortunately, with all our exp

there is no creative thinking whatsoever so that is why i was so fearful of people in the middle east. it's one thing to think constructively but not thinking construct a flea is also. >> let me open up the floor to questions. there is a microphone here if you please line up behind the microphone and starts taking questions from the floor. my name is ron thompson and i was lucky to catch you on the show with urine turkey with terry gross on the show and also with trevor nor. you made a couple points i thought were very good and replicated again. the you asked the question i think on page 22 if it was more ethical to have a islamic system and psychologically healthy in islamic society and i was going to ask how you answer that. the wording is very powerful. .. >> >> i would like your observation that i have read by a french philosopher that the right way to look at what is happening with isis is to analogize through the reformation that basically those that see religion used to benefit some people of the renaissance. maybe the earth moves. who knows? but the theory is the same forces a

quite fundamental understandings in his mind about what's possible and what's not possible in the middle easte first, i would say revolutionary breakthrough that he introduced, is that the middle east does not matter to american strategy as much as we think. >> reporter: that view colored the president's approach to making good on two campaign promises: ending the u.s. war in iraq, and investing more military resources to afghanistan, where the taliban was regaining ground. in afghanistan, the military reportedly wanted up to 80,000 more troops, on top of the tens of thousands already there, for an iraq-like counter-insurgency campaign. the president ordered a review of the entire approach. michele flournoy was the undersecretary for policy at the defense department. >> there was a tug-of-war between people who had very ambitious transformational goals in afghanistan, and those who argued for what was sort of a good-enough solution for afghanistan and for achieving our limited objectives. >> reporter: did the president come to that, as it was known, afghan good-enough objective? >> yes, i thi

and in iran specifically, it will lead to this country and our allies in the middle east losing the fight against hardliners who pose a threat to the united states, to stability in the middle east, and to our sacred ally of israel. in iran, there is a contest between moderates, and that's a relative term within the iranian political space, and hardliners who chant death to israel, who don't fear a world war or a conflict with the united states and with the signing of the iran nuclear agreement and the lifting of a handful of sanctions on iran, the moderates won a victory and the population of that country which is surprisingly pro-american and supported that nuclear agreement were ascended potentially foreshadowing a day in which that country would no longer be a provoke-- provocatur in the region and instead engage in conversations on how to bring stability to the middle east. now the hardliners have within hand -- have been handed a gift, a gift which proves that america is an enemy not just of the iranian state but of the iranian people because remember when we think of actions that we

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

the middle east market reaction. sterday the markets more or display, what is the thinking this morning? is actually difficult to find a direct market impact. barring stocks were standout markets in the region. none of those countries are directly affected by the fit trouble van and perhaps that is the secret. in fact the one market is directly affected as iranian stocks. those were actually up yesterday. the stock market is open 3.5 hours per day. difficult to draw a lot out from that. if you do have the dollar falling this morning, down .28%. that takes some additional pressure off of all of the gulf nations that have dollar eight. a mixed bag at the moment. unable to draw out the concrete theme. the latest on the markets. closed,the asian region pressure coming through in tokyo in sydney. after a weekend of chaos and confusion over the travel ban on seven muslim countries, white house staff has stopped to --manus: the initial band seemed to include people with the rights to live and work in the united states. but t

i also fear there are many contradictions and big holes in trump's pronouncements on the middle east is yet he lumps islams and muslims with radical islamism. it looks very bad from where i am sitting here in europe and the middle east as well. >> the trump-putin connection. you spend a lot of time in eastern europe. you have a house in poland. how do polls, for example, how much are they worried that in hoping for some kind of deal between trump and putin, poland and its security, you crane and its security, the baltic states and its security will be sacrificed? >> i think there's a palable fear of exactly what you've just described. the expression that people are using is will there be a flunew yelti. will putin convince trump to di vid t vied the world into spears of influence that impose his influence on one part of it and whatever remains of democracy or western civilization. people are very worried about it. this is part of the world you mentioned allies. poland, the baltic state, much of central europe, even georgia, these are countries that contributed soldiers and troops to u

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

not just the middle east. i think as you pointed out, there are large muslim population in southeast asia, indonesia, malaysia, other important countries in that part of the world where we have serious issues of common interest as well. >> again, there is much about our conversation privately i appreciate and much about your testimony i appreciate as well. one thing we discussed was how important usa id is when we were together. i have real concerns now having been around the globe, seeing the powerful impact, the usa id is making for really certain human dignity. i really worry that the budget has been cut -- the base international affairs budget which includes funding to state and usa id has been repeatedly cut 30% adjusted for inflation since fiscal year 2010, despite the fact that across multiple bipartisan administrations there's always been a broad agreement supporting usa id and the state department is a moral economic and strategic perspective. i just want to hope that you will be especially -- i've rea

jean—marc ayrault‘s comment follows the opening of a conference in paris to re—start the middle east joined by our correspondent hugh schofield, who is at the conference. hugh, what's been happening there? what hopes are there that this conference might make any difference to the middle east peace process? well, nothing substantial is going to happen here. to be fair to the french that was never the intention. the aim of the conference is to signalfrom the the aim of the conference is to signal from the international community that they are online and ready to back the two partners israel and the palestinians when it comes to, if it comes to books. but nothing concrete on the table, they are not talking about security or water. they are talking about the principle of the two state solution, which they save remains the only option on the table, still. but who's likely achievement is drifting into the future with dangerous consequences for the situation on the ground. this is really, simply to re—energise a peace process which is more or less dead. and to remind the world, and israel a

interests in the middle east right now. that means defeating isis. f solving the civil war in syria, stopping the creation of failed states like syria and getting the middle east peace process between israel and palestine back on track. this will not do any of those things. speed when i hear your argument but you could make an argument that the things that we have done to tiptoe around and hope we will get backing from all of these countries really has not yielded fruit. it does not moving in embassy really make a difference when you look at all of the things that we have done to build a successful coalition against an islamic extremism? >> it has no benefit to the u.s. it doesn't help us at all. it doesn't help us do our job better and is real doesn't help us do our job better in israel, doesn't help is real, either. if we want to make a statement about israel, do something to support israel. provide more military support. invite netanyahu here. thus two things that have an impact. this will incite violence in the middle east. >> i am surprised, davi

yousef: that is it for this edition of the best of " bloomberg markets: middle east." on the reaction in the meeting between opec and russia, and then continued analysis of countries around the middle east. will be here on bloomberg t >> it's 1:00 p.m. here in hong kong. donald trump has promised to unify america when he moves into the white house. on the eve of his inauguration, the president-elect said the country has voted for real vowed to carryas out all his campaign pledges. he told supporters he will secure american voters and build up the military. 6.8% from a year earlier, beating estimates. 6.7% was expansion of right in the official

the administration where he is going to be looking specifically at trade policy, at policy by the middle east. i think on the night before the inauguration at one of the balls, trump addressed jared kushner and said if jared can't fix peace in the middle east, nobody can. but, again, jared's role, senior administration officials think it is -- even though that's the stated areas he will have a role in, it's sort of like his role in the campaign. overseeing the social media accounts and it grew. this is an administration where the job titles don't necessarily tell you what role people are playing. i think that jared will have a very unique access to donald trump, to the president, in which he can be a top adviser in the west wing and also he will have access to the east wing, a realm of donald trump's life where chief of staff and steve bannon typically don't go into the private realm where jared kushner will be able to. but i think a lot of the -- jared kushner is an orthodox jew, his parents are holocaust suff survivors. i think this why donald trump thinks he can broker a deal in the middle

i think most of you have been in washington following events in the middle east. t i rarely find a sense of realism and a real touch from the region that geneive abdo brings into the book. i think what i like about it is, it just paints a very good picture of what is happening in the middle east. it is no-nonsense, no wishy-washy talk about the future of the liberal democracies in the region. you do not get this. you really get what is happening in the region right now. a complex understanding of the dynamics that you, i am shocked that are always missing in the conversation on washington. how many of us have heard about Ãin the last year in the debate in washington? not many. and it is a major part of what is going on. i mean it took geneive for years to research and write this book. reading it i grew up near tripoli lebanon and she was there. she went to walk, she went to bharain and that is where Ãwhy i think this book is different. it is also refreshingly very honest and candid. over realities in the region. that we try to spend, we tried to censor in the city.

they want to demonstrate that iran is the dominant pour in the middle east and the united states is no longer the strongest regional power. that is in fact evidence to the case. i returned from the middle east and i can tell you, it is indisputable that our allies feel, believe that the united states let them down and they are truly look for much improved relationship with the new administration. and the iranians are very confident and self assured and wind fall of money as a result of the nuclear deal. they are flexing their muscle. the new administration will have to reset in the middle east and demonstrate that iranian aggression will not be tolerated. that's what the allies hope take place. >> heather: what do you tell the new administration to do about iran? >> iran is a threat to our national interest. they clearly want to dominant and control the middle east using proxy fighter and terrorist. they had success in lebanon, gaza and syria and iraq and now in yemen as a result of proxy fighter ares and terrorist achieving a measure of influence and control at the expense of our nati

the second is then the middle east. here i want to embrace a report to the atlantic council, hariri center has done, secretary albright and steve hadley, where they outline it's not a crisis of the middle east but a crisis from the middle east where you have extremism and migrants being exported, again undermining europe. we can't deal with that in the short term. that's to be dealt with in the long term with our allies. so redoubling and deepening our relationships with allies in the region. that means our traditional sunni allies. and then working over the long term to tap what secretary albright and steve hadley rightly saw as some very promising tendencies in the middle east as well. entrepreneurshi entrepreneurship, something that can point to prosperity. and finally china. if russia is the biggest threat short term to the global system, china could be a threat over time to the global system. but it's also a stakeholder now, and it has a huge amount at stake right now. we can't put ourselves into conflict with china

the second is the middle east. re i want to embrace a report that the atlantic council has done, secretary albright and steve hadley where the outline not a crisis of the middle east, but a crisis from the middle east where you have extremism and migrants exported, again undermining europe. we can deal with that in the short term. a has to be dealt with in the long term with our allies, redoubling and deepening our relationship with allies in the region. means our traditional sunni allies and then working over the long term to tap with secretary albright and steve hadley bradley's as a very promising tendencies in the middle east as well. finally, in the last point is china. if russia is the biggest threat short term to global system, china could be a threat over time to the global system, but it's also a stakeholder now and has this huge amount at stake right now. we can't put herself into conflict with china if we want the global system to be reinvigorated, to adjust and to survive. we have to do do it together wi

what about the middle east? m, they try to do something between israel and the palestinians. mrtrump between israel and the palestinians. mr trump says he wants to move the embassy from tel aviv to jerusalem which will be a huge step. also a rarn, president 0bama try to get on better with them. not president trump, one might think. one of the concerns about the middle east under trump is that his america first approach indicates a lack of interest in pursuing a multilateral agenda for solving the myriad of problems the. america is not going to ask for permission in the middle east and what we have heard is that his singular deep focus will be on eradicating terrorism and extremism which is a hard military security orientated approach. the reality is that the middle east, no matter where, confronts challenges about broader issues of development and governance and the military approach alone will not address those. he is quickly going to find as past presidents have that if you try to go it alone you are likely to