here is tracy alloway. tracy: good morning. toald trump has attempted clarify his controversial stance on immigration, saying it shouldn't be seen as "mass deportations.." he said he would focus on migrants in countries linked with terrorists. he said he would throw away the work done on the transpacific partnership and launch a new trade pact. to sell aas agreed stake in a key unit to china as president putin six to bolster ties to asia. ties to to bolster asia. the deal was signed in beijing in the presence of putin and chinese president zhejiang thing -- xi jinping. china's central bank says it plans to scrutinize alibaba's shadow banking. the bankgovernor says will try to ensure a fair environment for competition. from anhas evolved outsider into an online finance giant. china'sany runs alipay, biggest internet-paying service. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries, i am tracy alloway. this is bloomberg. anna: thank you, tracy alloway with the latest news. tw

tracy alloway is with us. tracy: good morning. oil has climbed the most in two months as a weaker dollar bolstered the appeal of commodities. meanwhile, iran is vowing to continue increasing production even if prices fall to $20 per barrel while the saudi oil minister says the kingdom wants moderate oil prices for producers and consumers. the russian oil minister told bloomberg that low crude prices may persist for 10-15 years. bank raised its benchmark interest rate to the highest in at least a decade in a bid to curb surging prices. policymakers raised the overnight deposit rate by 1% to 11.75% with the overnight lending rate raised by the same amount to 12.75%. the central bank says the raise is warranted to anchor inflation expectations over the medium-term. air crash investigators have retrieved the flight data recorder from egyptair flight 804, which crashed in the mediterranean a month ago, killing all 66 on board. the device, which records details of the plane's mechanical systems, was recovered by the searching that found

i'm tracy alloway. manus: thank you.ow, it was a much-anticipated meeting but in the end, the opec ministers decided not to impose any new talks. leading to a decline in crude on both sides of the atlantic, but there was a little bit of progress. a massive improvement in the relations between the opec members themselves. they have managed to reach an agreement on a new secretary-general, appointing nigeria's representative. with iran hoping for a return to individual country production quotas. >> we didn't discuss about this issue in opec, but it is very that without qatar, opec does have no meaning. has no meaning because when the controluntry, they can total production and monitor the situation in the market. in ourlet's bring reporter who joins us now on the line. good to have you with us. what exactly did iran want? he kept using the word quotas. do they want to set the stage for a future agreement? >> i think so. iran's position at the itsnt is it will not count own production because it is trying to regain market s

tracy alloway joining us from dubai.arlet: yes, there's a terrible may jobs report but job openings increase and a hope to match the highest point on record. ♪ alix: i'm alix steel. "what'd you miss?" after the may disappointing jobs report, there are lots of questions about what the labor market is doing an angel provided a little clarity and a little confusion. i'm looking at the overall number which was by and large the awesome. job openings rose to five point 78 million in april, the highest levels 2000. it basically points to strong demand in the labor market. trade, transportation, things like hospitality did not see a lot of openings. if you dig into the guts, it was a little less positive. people like to look at quits because when people are feeling good, they quit their job with confidence. tos is a chart going back 2007. last fewm in just the was downhat white line to 2.7% and this blue line is construction quits. the industry specific one is a lot noisier. not a terrible thing. but you want to watch these inte

rish: thanks a lot for that, tracy alloway in abu dhabi for us. discussoining us to this potential merger, we've got the managing director and head of equity research at our can capital. you are with me last week. we were talking about a variety of issues. what we've got is your fa function, the financial analytics function. we've got the market cap in yellow and the book equity value. , and this isad the rub and the issue. this is where value is created. chart, youok at the can see the price has fallen off a cliff over the last few years. it used to trade at a massive premium. it's actually lost the premium. you canck even further, see the price in 2009 and 2010. it's an historical low. manus: going back, this is a fg be. who is indone is on takin the driver's seat? it's going to be first gulf? >> ftb has overtaken the market capitalization. it's more or less in line with the size of the bank. it's not overtaken it. it's about 30% higher than that of nbad even though it's the bigger bank. manus: alex came in in the first week, and he struck me as

indeed, weapons buying rose across the middle east, and in asia, bloomberg markets executive editor tracy alloway has been looking at the story. what exactly is driving the growth in the arm sales? tracy: we have seen some stunning growth, really the biggest annual increase over the past decade. most of that growth is being driven in the region, the middle east, particularly by saudi arabia, which is working to counter its regional rival iran. they have been buying all sorts of high gear, like typhoon jets, apache helicopters, and elsewhere, we have seen quite a bit of growth in imports in asia. ihs says what is happening is basically as some of those countries become more wealthy, they are choosing to spend their money on more arms and defense spending. it's a classic macroeconomics guns versus butter decision. manus: i suppose when you talk about that middle income, the middle income countries and the gdp growth, that gives them the ability -- can this level of growth be maintained? if we moved to a more peaceful world, will that impact their spending? let's set aside the thorny issue of future

tracy alloway is there. oil is down for a third day. .urn in the rig count is it down to the u.s. numbers? is it to the iran story? good: it is a very question. on the demand side, things have been holding up well. we have seen the demand from china, india. we have seen u.s. driver's return to the highways and go on summer road trip vacation. on the supply side, we have two major forces. they are iran and u.s. shale. when it comes to iran, we have seen them restart production faster than a lot of people expected. they are making 3.8 million barrels a day. that is feeding into supply. i should note there is some debate over the accuracy of this figure. bear in mind, they come on board faster than a lot of people anticipated. when it comes to u.s. shale, with oil over $50 a barrel, as it has been, we have seen some of those rigs come back on board. this is a big test case for the theory of u.s. shale as the new swing producer. it seems like that very is -- based on the slight uptick in rigs. we have to see that continues. manus: tracy, than

tracy alloway in abu dhabi. let us move back to the european agenda, the u.k.ellor will warn in a speech later today that leaving the eu could spark a fiscal crisis. george osborne will say the reduced trade would leave of 30 billion pound black hole that will have to be filled by increased taxes and spending cuts. our next guest has been a conservative market manager, for 30 years, operating on many industries.rvices he says he is pro-brexit and will vote to leave in order to vote pensions. edi really good to see you on the program. as a sort of big macro drop to this question, saying that to leave would create a 30 billion pound black hole of finances. that is not great for the u.k. economy is it? edi: it absolutely would not be . but george is ignoring the economy risk to the eu. my topic is pensions. the eu, for the last six years, has been dissolving the solvency. but what does it mean? it means the eu is going to 400 billion pound hole onto british pensions. why is that? british pensions are about two thirds of all assets in the eu. so if they are being t

tracy alloway joins us from abu dhabi. do you think this might lead to another round of valuations? this is the question everyone is asking themselves right now and we saw some hint of it yesterday when china unveiled at the u.n., showing it was down since august of last year. we have had those safe haven inflows into currencies such as the u.s. dollar, the japanese yen and that puts pressure on emerging markets currencies and peggede on the currency to the u.s. dollar. it is really not good for emerging markets. we have seen talks of how the central bank will combat that, including potentially china using the brexit to widen the trading range of the u.n. and prepare for even a bigger devaluation going forward. rishaad: the winds of currency wars comes and go over the years. yusef: how tangible of an impact will this have on the markets? tracy: if you remember, one of the things that helped us escape the big selloff earlier this year was the idea of a new shanghai accord or gentleman's agreement between the world's central banks to maintain currency stability, especially the dollar

tracy alloway.have interviewed him many times -- he was considered the golden star, the golden child the central banks. what went wrong? >> the trade union of international centers lost one of their big guns today, and you can see that in a reaction on twitter from the likes of catherine mann. here's one of their own. a couple issues you can draw one is that independent central banks or perhaps under fire, certainly in the u.k. with mark carney and janet yellen, this idea that he might push back with too much pressure from politicians, that he felt he wasn't able to achieve it. secondly, the other thing that forose out here, a need central banks -- a lot of central banks have realized the need for an international vision within their offices. mark carney, a canadian, janet --len, stanley fischer throughout the world. saidere the indians have -- there was one point of the weekend where they talked about the indian mentality. francine: is this something that worries you, not only when you look at the

manus: tracy alloway with the very latest from abu dhabi, over at 80th securities. on the show, oil at its highest level since last july. the industry data shows u.s. stockpiles, trimming the global glut. we look at the prospects for all. ♪ manus: welcome back. watching bloomberg markets, middle east. anthony to apollo and i are discussing oil a 10 month high. u.s. data is declining in terms of the industry trimming the global glut. as i asked him, $50? the is live. anthony: that is a great question he. n. it looks like prices, the markets feel comfortable with prices at this level. the issue that i think is pushing them, as you said, that decline in production. inventories will likely remain, because people know that those have to be purchased and gotten rid of. but we are coming into the higher driving season. that is helping some of the demand we are seeing some good continued runs in the u.s. and some good margins and demand out of asia. that is helping prices. and you know, we have been of this $50 level for a week or so. it looks like markets are pretty comfor

tracy alloway in albany dobby. -- abu dhabi. manus: other headlines. rosalind 10 with us.sachs has announced another layoff, they are cutting jobs in new york, teddy -- cutting up to 250 this year. they say it is because of a chinese lung. they have cut division across several areas this year. and the world's biggest utility is in south america, and sources telling bloomberg that -- will be buying a stake in brazil. they are looking to buy the debt owned by -- it could be valued at about $1.5 billion. outgoing governor -- says that they owned banks are to blame for the slowdown in credit growth, not high interest rate. defending his record, he called for improved government. his departure has spurred rumors that the processing -- more than $100 billion of assets by next month. loans are at a 15 year high. and global news, 24 hours a day, powered by more than 2600 journalists in more than 120 countries. ♪ manus: thank you. one of africa's biggest energy developers has raised $180 million to expand. and we may see renewable power, where the use the money to finance a venture

tracy alloway for us in abu dhabi. let's get back to the eu referendum story. pound has fallen to a three-week low as new polls suggest more britons favor leaving the european union. votersy found 45% of would choose to leave and 41% would remain. another poll show the leave .ampaign ahead 43% to 41% the race has tightened spooking some investors who bet that the remaining camp what eventually win. meanwhile, the former british prime minister john major and former mayor of boris johnson have traded blows on the issue. they both spoke with andrew mott. is feedthey have done out to the british people a whole galaxy of an accurate and, frankly, untrue information. what they have not done is tell us what would be the position if we were to vote to leave. i think it would be chaotic and damaging. i think the people who would suffer most would see the ordinary, everyday man and woman on the street. invisibly, many aspects of our life are now controlled from the eu -- from brussels -- and a way that i think is anti-democratic. coming to the second big charge against u

caroline: tracy alloway in abu dhabi.ons of brexit, now european leaders begin their own brexit talks this morning. angela merkel is discussing this further. an advisor to the german economy ministry is joining us now. thank you very much indeed. give us a sense. what i am intrigued by, hollande was always meant to be meeting with merkel. should we interpret there is a concern with the access of france and germany? how strong is that relationship? >> i think we have seen this slightly different perspective between france and germany taking on how to react to brexit. france wants an immediate triggering of article 50, this exiting procedure. and merkel has made it very clear, let's staky calm. let's not trigger article 50 immediately and perhaps, the british people might stay. she would like to have a three-way negotiation. caroline: there is also some path of argument within germany itself. she had to almost reign back steinmeyer. . we also heard from schulz, the president of the eu as well. how much of an argument is the

our middle east executive editor tracy alloway joins us. driving the saudis to join the bond frenzy we have going on down here? will i think bond frenzy is one way to put it. it is interesting dynamic, where we generally see one gulf entity consolidate debt into the market. they're all looking to raise money, raise cash because of low oil prices that have caused wider than expected budget holes. dhabi,ed off with abu with $5 million worth of bonds. that was very well received by the market. then we saw just last week, they saw a record $9 million worth of bond, $23 million worth of orders. for the amazing. now we have saudi arabia eyeing a bond rate of $50 million worth of issuance. back a few years ago, when these are really rare in the middle east market, it has all changed over here. manus: tracy, you know, you qatar, abu dhabi. were really strong. i had a conversation with credit suisse, earlier saying this will get saturation. what is the risk? tracy: it is a good question at this point. there is clearly a lot of yield seeking cash out