♪ yousef: welcome to the "best of bloomberg markets: middle east." i am yousef gamal el-din.ere are the major stories driving headlines. crude comes on and oil fixes. -- and oil takes a dip. why is the view of the market so different from opec's? airbus and boeing battle for supremacy. and the saudi arabia crackdown continues to reverberate. local retail investors keep selling as political risk rises. but first, abu dhabi's state own oil giant, 10% of the subsidiary could be sold off. plans to pay shareholders $400 million in 2018 and 2019. tracy alloway spoke exclusively to the ceo and asked for more details about the plan. >> the announcement said at least 10%. we might go a little higher, that will depend on how the market is over the next few weeks. tracy: is there particular valuation you are targeting? >> not really. a firstto demonstrate of its kind ipo in the region. what we are trying to achieve is a way to ensure an unprecedented [indiscernible] market and domestic and local investors to work alongside. tracy: there are of course rumors you might look to float other

yousef: welcome to "the best of bloomberg markets: middle east." i am yousef gamal el-din. major stories driving headlines this week. as saudi arabia's rush for foreign investment continues, we discuss whether higher oil prices could slow reforms. the king is pushing for extending beyond the current deadlines and may have managed to win over \key oil producers. our first guest is playing a long game when it comes to investing in the middle east and africa. bob diamond is known as an optimist and some of it seems to be paying off. bob: the original vision was to have position in key countries. we are in seven countries. we are continuing to invest in union bank of nigeria. i think our focus right now is completing the next stage of investment in ubn. we really like nigeria. we think it is in a better position with the collapse of the oil prices. we think the agricultural sector has grown very nicely. we have just made a second very large investment in ubn. yousef: are you on track to double your fiscal year profits? bob: yes, that's the statement we made and we expect to do

♪ yousef: welcome to "best of bloomberg markets: middle east," i am yousef gamal el-din.nd will fixes that as stock prices right and global demand estimates are cut your why are the views so different from opec's? airbus and boeing battle for supremacy. crackdownudi arabia continues to reverberate. dhabi 68 point -- 10% of theil giant, subsidiary could be sold off. tracy alloway spoke exclusively to the ceo and asked for more details about the plan geared -- the plan. >> at least 10%. higher, go a little that will depend on how the market is over the next few weeks. tracy: is there particular valuation you are targeting? >> not really. [indiscernible] -- a one-of-a-kind ipo in the region. ist we are trying to achieve a way to ensure an unprecedented [indiscernible] market and domestic and local investors to work alongside. tracy: there are of course rumors you might look to float other businesses. what else might be in the pipeline? >> were looking for ways to maximize value to shareholders while keeping it wholly owned. having said that, we are looking at exploring the w

i am yousef gamal el-din in dubai.avid: some markets entering a lunch frank here. -- lunch break here. nothing really happened this morning. nothing moving the markets. changes,-pacific, some but there we go. that tells this story. a very uneventful day for markets. copper a pickup overnight. a lot of big contracts. a little more upside now, 1%. have a look at my bloomberg chart. yields now-year bond crossing 4% for the first time in three years. andmber of brokerages analyst saying because we have crossed this psychological line, prepare for the bond rout to deepen. ,nflation might be picking up and this deepening deleveraging campaign is making its way through the system in the form of what we showed you there, higher yields on the mainland. yousef: some other asset classes, hedge funds now working on rising crude. take a look at what the trade is currently doing. fairly range bound. downside .3%. fairly steady as the greenback advanced earlier against most peers. the cable trade, fairly steady. off newdown .6% polit

yousef: thanks.breaking lines hitting the bloomberg on pmi's 43 companies. 55.9, versus 65.1 in september. slightly stronger. 48.4. arabia,comes to saudi -- 55.5 in 55 point the prior month. i would like to start with uae by virtue of the fact we are here, and we are seeing growing pressures a little bit in the uae figures. tracy: although the headline numbers are showing really strong growth -- khatija: although the headline of us are showing really strong growth in output sectors, we're seeing in the rest of the service, a squeeze on margins for companies in the uae in particular. if we look at last month, 8% surveyed said they cut their selling prices, that is a huge number, a record for the series. it does point to margins being squeezed, having to work harder for new sales. at the same time, they're fine -- facing higher input costs. it will have an impact in terms of their ability to boost employment, because they are obviously not willing to spend more when their margins are under pressure, an

yousef: what?ssues from a regulatory perspective alreadyike noise is sensitive in some markets like the u.k. for instance. >> people are concerned about aircraft noise. concord was glad because it got a bad rap. today we can do a lot better. it is quite enough to land in london at night. yousef: what about funding and making sure you continue according to plan? any current strategy to raise additional funds? through firsted light come on our test program. one of the things we are doing in the middle east is talking about opportunities for the next steps. as we go into production, that is capital intensive and there is a lot of production to back that. yousef: private placements, bond issuance? >> there are different kinds of capital to come together to fund something very complex. yousef: how much would you like to have in your war chest? >> there is no such thing as too much money. yousef: $100 million? >> i would take that. yousef: how much are you aiming for really? >> in the short-term, we are

yousef: i am yousef gamal el-din in dubai. let's get you up to speed.ks deter traders. for an investors were largely absent. we will get more perspective later in the day. how is this story at likely to evolve as the market comes online with more global input later on? >> today we will be able to measure what exactly international foreign investors will see within this event. what we can tell is we don't expect a lot of outflow from the egyptian market right now. we have a very good story to tell. it has been a story of reforms investors have liked. and foreign money is betting a lot in egypt right now. 18%.rn tobacco is up it was one of the main names trading yesterday in cairo. there is expectation they've might be included in msci, which could lead to $90 million into that name in egypt. angie: let's talk about qatar. likelylooking at a positive reaction or decision by msci on the official fx rate. exchangethe stock response to msci's concern regarding the qatari riyal? >> that is also an important story in the region. we had the stock exchange sayin

yousef: it is 8:00 a.m. across the emirates. i am yousef gamal el-din in dubai.ere: markets in hong kong have gone into the lunch break. have a look at the broader picture across the asia-pacific. this gives you a simple look at how asia is doing. more red than green. india has just opened up. southeast asia feeling more of the pan. malaysia and singapore leading declines. there is not a lot of conviction to the upside here. yousef: some other assets showing downside pressure. brent crude extended declines. u.s. crude inventories probably shrank for a second week according to a bloomberg survey. gold, flirting heavily with $1300 an ounce. u.s. tenure paper, choppy trade, the curve steepening and dollar-lira there. u.s. equity futures showing a decline. we have been in the sideways grind for some time. let's check in on the first word headlines. japan has raised its alert level after getting indications north korea may be planning a new missile tests. kyoto news has said radio signals have been intercepted that suggest preparations for a possible launch. satellite

yousef: high and yousef gamal el-din. -- i am yousef gamal el-din. david: a big weekend for you.et the scene. what are we watching? you can feel this country is holding its breath. we also had a ballistic missile intercepted from yemen, a country looking for a crown prince who keeps surprising. sweep, key political and business figures, including the 50th richest man in the world, alwaleed bin talal. 22 judge us. -- plenty to digest. david: have a look at markets. the oil story is part of this. hey quick look across assets. the regional benchmark, the two-year yield is what we are watching, 1.61%. this is due to dovish remarks out of the boj. your january contract on brent crude. have a look at my bloomberg chart. the oil curve and what it signals about where we go from here. this is a measure of supply tightness. unless have pointed out that the oil price has decoupled from supply and demand dynamics and simply focuses on supply constraints. it essentially means we might be looking at the oil price moving higher from here. the path of least resistance is north. we will be fleshi

--yousef: there is barely any action on the stock.it time to go private or do will list in -- or dual list in another market? >> we are always looking at opportunities for us to do the right thing in terms of crystallizing shareholder value. that is absolutely true that our trade, veryt little. the ownership of the stock is no more than 350. if it makes sense further down the road to pursue either a cross listing elsewhere, we would look at that. we had a cross listing in the past. yousef: has anything changed on your view on the saudi story? a lot of investors i have been speaking to are struggling to digest all of this. has anything shifted from where you are sitting? >> we have the advantage of being long-term investors. as we look at the saudi story from a long-term lens, we continue to find the region attractive, not just from the perspective of being a provider of investment opportunities in the region, but also investing -- region,gion, but particularly saudi arabia. for the "bests it of bloomberg markets: middle east." we have

yousef: it is 8:00 a.m. in dubai. i am yousef gamal el-din. >> i am david ingles in hong kong.ou are still on the ground. the talkingugh points and how the narrative has changed in the last 24 hours. yousef: we started with shock and awe, now commentary from president trump saying the saudi administration knows what they are doing. from thecement attorney general saying there could be more to come. there is a lot of rhetoric around tensions with iran. let me show you the currency forwards. this is 5114 on the bloomberg. the 12 month forwards come look at that spike above 200 points over spot, the highest it has been since summer. we will get more market reaction later in the program. what are you looking at? david: this time yesterday we did get an update following what is happening. in a share, you look at this rally. up with wordscome to describe how stretch to these markets are getting. and you look at earnings good macro data, it does underscore the need for this to go higher. 171.56, .5% short of an all-time record. decision 30n rba minutes back, no surprise, keeping it at

let's get over to yousef gamal el-din.t of news out of the emirates and airbus and now we will turn our conversation to bombardier. yousef: let's get straight into the conversation. thank you for joining us on bloomberg tv. talk to me little bit more about demands here and how that is shaping up. where do you expect this to go in 2018? >> we have a lot of positive momentum on the program. the entry into service with our two customers is going really well. the industry is starting to take note. so, the reputation of the aircraft is building as performance and is even better than our own specifications. we cannot be havoppier about coming here to dubai with this positive momentum behind us. yousef: what about at the dubai air show? will you announce any new deal, or is the atmosphere more muted? >> i think it is going quite well and it brings unique opportunities here to the region. the airplane itself has got a wide body of feel to it and creates opportunities. for us, i think we're pretty good. i'm not going to predict ord

yousef: there is a little bit of anxiety. the people have been speaking, there is a sense of trepidation, the scale of what has been done. the enormity of the implications and the influence of a lot of these key clinical figures have, these are top names across industries that have been arrested. it raises the question on whether this crown prince is changing too fast. here you are on the bullet train of reforms with everything from allowing women to drive to bring out the rule broke when it comes to foreign ownership to key stakes in saudi companies. kingdom holdings being the one key asset, that is the exception to the role it on to focus on what is going on in the rocket, a better -- in the market, a better indicator. jewel notice there was a bit of a spike nothing compared to a we saw in the standoff with qatar in the gulf crisis. you there ishowing a lot of volatility about what happens next. had dallas, we just in the desert -- davos in the desert trying to talk about saudi arabia. one of the most high-profile people ar

yousef: the absence is being felt.ok the gulf, we talk about the three big gulf carriers and the gulf carriers are facing very difficult times. qatar airways would be standoff with the prices and the fact that the book has been slow to fill. it -- we hadwhen wanted to $79 billion worth of deals. -- we had $179 billion worth of deals. guy: yousef gamal el-din joining us from the dubai show. you can watch the show using the tv function. i spun it back a little bit. you could factor in everything that is going on. here.t bios over you got a charting for the market. i should pop these charts out. use the sidebar in terms of falling along. up next, we are going to bring you the stoxx on the moves -- on the move. that is next. this is bloomberg. ♪ guy: 53 minutes into the session. you are watching the open. let's get some the stock movers. nejra: these are some of the bigger movers. i'm looking at tdc which works in the telecom space, up 2.8%. goldman sachs upgraded it. i am looking here at some of the -- sunopta -- the

yousef: that is the key thing, isn't it?rsationss you have outlined some of the reforms you are doing in terms of increasing capacity. where does the number go from 1.75? seenuel: poole probably capacity to do close to 2.3-2.5. we're not going to begin to look -- [indiscernible] that's where the margins are. what kind of price range would we be looking at for brent crude for 2018? give us a sense of where you see it. last year home we talked a said of forget route.es to 60, will be mid 50's, not too bad. is there a risk of adhesive to quickly that you will encourage the u.s. all industry to cut back faster, meaning you need to take additional measures to keep this in check? emmanuel: we must not get focused on shale. there is really -- we have to look at greater reduction to as low as 45. [indiscernible] will shale get up potentially? yes, as technology improves. there's not much you can do about it. productione cost of because then we can take the shocks as they come. theef: we've seen cease-fire with the avengers come to a

yousef. yousef: let's talk about what is going on with the aipac leaders.up deliberations and from that gave a renewed to back the wto. it sounds great in theory but here is the kicker. the u.s. president now continues his asian tour with a business trip to the philippines. stephen engle is in manila. has there been any real headway that has been made over the weekend on these issues? >> there is the transpacific partnership which the united states had promised to pull out of. the remaining apex members are trying to revise that deal. the 11 remaining members. after some wrangling and some delays, there was even a walkout by the vietnamese delegation at one point in frustration. it seems as though the 11 remaining parties in the transpacific partnership have come up with a framework agreement. they have years let it go to mail this one down in the united states. they were trying to find areas that they can all agree on to reduce certain areas that they are at agreed-upon with united states out. even the canadian delegation is calling this the comprehensive

yousef: there is no clarity at this point.ncement was, the anticorruption committee has been set up. the crown prince is chairing it. there's clarity about what or who will replace. we do know they have the power to trade assets. isnce alwaleed bin talal especially sensitive. again, there is no way of telling of where this goes from here. investors will say, i will wait to see how this plays out. tom: we watched this unfold over the weekend. thew it remarkable to see events, including the prime minister in fear for his live, the missile attack, the speculation about "a missile or missiles attack from yemen." wheere these linked? was the prime -- was the crown prince able to say, this was the last straw? yousef: there is no tangible evidence at this time. we are not hearing that at this point from investors. it was a ballistic missile that flew over the skies of riyadh and that is not something that happens often. it is significant that you point out the external challenges. this is not just a domestic situation. you have the g

yousef is smart and he is radicalized.ncle is khalid sheikh mohammed. a man who had later become a leader in an organization called al-qaeda. >> i have an office in that building. i will lead my people back into that office that will be our message to whoever did this. whatever you were trying to achieve, you failed. >> for the fbi, the lesson was that these guys, while dangerous, were not at the same level as the terrorists of the late '80s. they were wanna-be's. that of course would be a complete misunderstanding. >> for the first time since the bombing, tower 2 will reopen for business, two weeks ahead of schedule. and that, says new york's mayor, is a testament to a city that conquered the use of fear as a weapon. the only ones who should be fearful now, he says, are the terrorists themselves. usaa to me means peace of mind. we had a power outage for five days total. we lost a lot of food. we actually filed a claim with usaa to replace that spoiled food. and we really appreciated that. we're the webber family and we ar

those are live pictures coming in thanks to yousef gamal el-din.is one of the most exhilarating, but also tough jobs for any reporter. you have 50 or 60 reporters in a pretty small room. meetings, we look at the price of oil, but it is just a warm-up act for the non-opec meeting which will happen later this afternoon. will comeen russia and we will see whether they sign up or not. we did hear from the minister of saudi arabia that he won't sign anything until russia says it will cut production. a sense of to get whether they will extend production cuts. i think it has had an impact on the price of oil. let's get back to minouche shafik. we've been speaking about the welfare state. we were talking about productivity. one of the things -- i don't know if fixing is the right word, but stabilizing it. minouche: productivity is the most important thing. it is not just a u.k. problem. this is a problem in all advanced economies. the u.k. is perhaps more intractable. tospend a lot of time understand what is behind it. there are many different hypotheses.

send -- yousef, is here.the bondk market, it's fairly pronounced .n yields a big risk on session, yousef. as is coming back into the equity space. >> here are some other asset classes in focus. we had u.s. crude inventories out overnight again. climbing to the highest in more than three decades. talk piles unexpectedly rose. this is $57 per barrel. progress is stuttering on the u.s. tax reform plan. u.s. 10 year yield is about 33, the curb continues to flatten. dollar lira three spot 86. turkey is seeking new relations with the u.s., despite a dispute over visas. just a few hours away from the opening of the emirates markets in dubai-abu dhabi. government funds getting heavily involved in the saudi story. seeing greenu are here. 6/10 of 1%, and materials as well. stock side, symbol helping to continue this -- continue. overall, looking at a four-day losing streak. $6.8 billion have been wiped out in these equities markets. more details later on in the program. >> absolutely. we are waiting, of course. we migh

further down the road we find an abandoned house home to a group of moroccan migrants eighteen year old yousef invites us in to see how they live the hygiene it can dish ans are poor they have no running water to wash their clothes these cunto what they used to shower. we wonder why use estates here in these conditions he says life in morocco was as bad as it is here but after three years as an illegal alien he can get an official residence permit in spain. at night the spanish sea rescue service saves fifty four young men from sub-saharan africa. the dream of a better life is what brings them to europe and in this very moment everyone on board believes they're going to achieve exactly that. here in germany restrictions on reuniting refugee families proved to be a major sticking point in talks on forming a new coalition government a few weeks ago. this woman told us her story. we meet up with the same after her german lessons this is how our day starts here in berlin without her children or her husband. she tells us about her escape from syria it all happened in two thousand and fifteen she le

manus: yousef, there was some pretty dramatic moves yesterday.see how it opens today at 7:00 a.m. but the market reaction, you talked a little bit about the fx program. bucks poorer in terms of the day's trading, but from a market perspective, where do you think the dial turns to now? think thet's -- i fact that this is going to go to another stage, to another level, that there is plenty more to come on this front -- this is not a warning sign, there will be followed. investors will have to divest among implications, which is why you see a lot of selloff in markets like dubai and kuwait, companies that have exposure to thatcts in saudi arabia might be in jeopardy because someone related to it is being rounded up. that trickle down still needs to happen. anna: yousef gamal el-din, reporting from our bureau in riyadh. eoin murray is still with us in the studio. when you look at the commodities space, oil this morning, a strong rally yesterday, $57 per barrel. $64 on brent. the immediate focus is the saudi story. people drop a line between the clamp

yousef gamal el-din is live for us.eaction so far, the currency has reacted a little bit more than the equity markets p we are just opening in saudi arabia. seven minutes past 8:00. yousef: that is how things are shaping up. he goes back to the point that we were elucidating and what we have been hearing from a lot of investors, this is priced in. out,is important to point how they have been here many times, is that -- you found a capital holding its breath. coming off the back of the weekend with these big changes on the political front. you are seeing the ballistic missile that was intercepted or the skies of riyadh. these are unprecedented developments. he can see a little bit of anxiety -- you can see a little bit of anxiety. these are very influential figures. the question that begs is where do we go from here. are we going to fast? which is ironic. yousef, prince waleed has had a lot of holdings. we will focus on the hotel sites , from a european perspective, the technology very much in the limelight. he has been

yousef: william dudley announces his retirement, but says the transition

. ♪ yousef: welcome to "the best of bloomberg markets: middle east." i am yousef gamal el-din.'s rush for foreign investment continues, we discuss whether higher oil prices could flow reforms. pushing for extending beyond the current deadlines and may have managed to win over quarter -- key oil producers. life --lf and life -- a

two.row night, part ♪ ♪ yousef: welcome to "best of bloomberg markets: middle east," i am yousef gamalat as stock prices right and global demand estimates are cut your why are the views so different from opec's? airbus and boeing battle for supremacy. crackdownudi arabia continues to reverberate. but

. ♪ yousef: headlines from saudi arabia, the crown prince's power play as he goes away with anotanother accuss some of his ministers of corruption. >> and trumps four. the president begins his trip to asia. is it his biggest diplomatic test to date? >> meanwhile, the american later is urging saudi arabia to lift

was found in the task folder of an e-mail account belonging to you a bastard to the united states yousef otaiba and subsequently obtained by the interest that the economic warfare involved in attack and cutters currency using bond derivatives manipulation the plan laid out in the slide deck provided to intercept through the group global leaks was aimed at tanking cutter's economy according to documents drawn up by a bank outlining the strategy so we'll go through that strategy in a moment but it's a slide deck it's a powerpoint sort of presentation from the bank havilland which is owned by a very well connected financier to the tory party and it's very interesting. what we've been talking about the ability to derivatives and financial futures to wage war on another country and the fact that. the global economy has become financial ised we've we've moved beyond tangible assets as a measure of wealth we've moved beyond borders as a national boundaries we have large money center banks we have a hedge funds we have to rid of wielding kind of rogue traders operating without accountability the

yousef al abdulrazzaq won his second grand prix title of the year extending his lead at the top of the rivaljames bushell in the early stages. the kuwaiti rider made the telling pass on lap five of 17 before easing away for his second win of the weekend. you can get all the latest sports news at our website, that's bbc.com/sport. but from me and the rest of the sport team, goodbye. i'll be back with the business briefing in just a few moments. hello once again. after a fairly cool weekend we are going to see a change in british weather albeit a fleeting one. that comes to an area of low pressure throwing this shield of cloud down across the british isles. not many of you will be scraping your cars by any means at all and what snow there is will be confined to the highest ground across the north of britain. my concern is about how much rain there will be across the southern counties of england, just in time for the school run and the commute. quite windy at times as well, having been really wet and windy widely across the rest of the british isles. a lot of surface water around and more

yousef, explain.ic it is the key when it comes to the understanding of this global rebalancing process, and whether it is healthy. data, thek at the api bloomberg survey is looking at more conservative -- is looking more conservative. it will be the fifth time in six inks you see a decline inventories. it is something we can all get excited about when it comes to the fundamentals. dive into the bloomberg with me. futures for december 2018 are trading at the biggest premiums since early 2014. of tighteningy supply in the group market, trading at its most bullish in more than three years. this is something the bloomberg gadlfly called out. you are seeing more bullish in the brent contract than the u.s. contract. there is a possibility for the uti contract to play catch-up, and you could look at that spread be narrowed. -- you could look at that spread being narrowed. >> the middle east markets. >> 100%. >> we are all diving. watch bloomberg on your mobile device or listen on digital radio in the london

was found in the task folder of an e-mail account belonging to you a bastard to the united states yousef otaiba and subsequently obtained by the interest that the economic warfare involved in attack and cutters currency using bond derivatives manipulation the plan laid out in the slide deck provided to intercept through the group global leaks was aimed at tanking cutters economy according to documents drawn up by a bank outlining the strategy so will go through that strategy in a moment but it's a slide deck it's a powerpoint sort of presentation from the bank havilland which is owned by a very well connected financier to the tory party and it's very interesting. what we've been talking about the ability to derivatives and financial futures to wage war on another country and the fact that. the global economy has become financial ised we've we've moved beyond tangible assets as a measure of wealth we've moved beyond borders as a national boundaries we have large money center banks we have a hedge funds we have to rid of wielding kind of rogue traders operating without accountability they

. >> and islamic scholar and college president sheik hamza yousef wants all americans to know that isisng that moves from mercy to cruelty has nothing to do with islam. >> he is so outspoken, isis has made him a target. >> islam is not a cult of death. the koran says, answer god's call to life. >> but as we said, we learned over this year of reporting that isis can reach into any american home, that every state has an open investigation. so, what are parents to do about recruitment online? those big global tech companies insist that they are working on systems to help parents. >> so, someone types in, i want to join jihad. >> for instance, google is ruling out a new program so that when someone searches how to join isis, what pops up first is a video ad steering you away from isis propaganda and toward the reality of what isis is. but for right now, the most practical thing we heard from all the experts is that parents have to watch out for how many hours children are spending with technology and in isolation. again, former prosecutor mary mccord. >> a lot of time in front of a computer

yousef gamal el-din joins us.s the latest in terms -- is the country still be boolean and joyful that this demand? >> at present it seems it is called but it is the calm before the storm. moment mnangagwa is sworn in as president or interim leader of zimbabwe, it is about to spur up all over again. you saw earlier this week when robert mcculloch they officially resigned -- robert mugabe officially resigned. call --w it is a bit of calmb but a calm before the storm of jewish and. anna: people asking questions about those who were close to the magali administration will make a big difference for some way -- for zimbabwe. focus in south africa because what we expect later. take us through that story. reporter: that is quite true. the agency came a yesterday saying south africa would rather maintain its current rating and that keeps us with regards to our foreign investment grade. today, two big ones, moody's and s&p will release their ratings of south africa. quite important that the local currency debt remains one l

yousef gamal el-din is standing by at the dubai air show. a surprise upset. itsexpectation was him or would sign a deal with airbus. the head of commercial aviation from boeing announced a major deal for dreamliner's, 47 airliners, one of the biggest upsets in the dubai aviation show in recent history. we are looking ahead as to whether airbus can stage a comeback. they have done that in the past. we will be speaking to a lot of ceos throughout the day. david: looking forward to that. indiaion numbers out of due out. where are we headed question mark up or down? -- headed? up or down? likely to jump to 3.5 percent, a seven month high on the back of higher recovery in vegetable prices, which is seasonal, and higher rent allowances for government employees. havein mind this could been higher because of crude oil , but a cuting higher last month will get factored in. i on corewill keep an inflation, expected to be 4.5% to 4.6%, a little bit higher than the r.b.i. target of 4%. david: how does this change the math for the r.b.i.? >> that's right

by yousef with the latest. we have a guest coming on this is the equivalent of buffett-gates and colin powell being -- buffett, gates, and colin powell been arrested over the weekend. use of: -- yousef: coming into riyadh, you can feel and see the tension as well. the roundup of current and former officials without the political drama is over at the summer when the crown prince was cemented into his position. around 2, dozens of former and current officials getting rounded up on the basis of corruption charges. the markets are taking this in stride. you look at what the dollar is doing, but the question needs to be asked, what if there is too much of a centralization of power that raises the risk so maybe the markets missed pricing this a little bit. jonathan: we had a rocket come into -- from yemen into saudi arabia and we had a helicopter that came down and killed a prince on board and a prime minister that stepped down and aamed has below -- has been bollah in the region. the weekend around saudi arabia has

yousef gamal el-din is an riyadh. it was a massive weekend. what is happening now?ghter than usual. what is one of the most sweeping reforms and one of the most comprehensive political changes in the history of this country, it is incredible. this is the crown prince mohammed bin salman who keeps surprising a lot of people and skeptics out there. princes andof officials is unprecedented in scale. these are some of the biggest names in saudi business arrested and long associated with getting in major deals domestically or different parts of the world. this does raise key questions for this country going forward because of the pace of change, we have heard everything from allowing women to drive, to ripping up the rulebook when it comes to capital markets and allowing foreign investors into that trade. the question is whether the kingdom is moving too fast with some of this stuff. so far investors do not feel that is the case. they think this consolidation speaks to and necessary centralization to do the kind of transformation that they are setting out to do. absolute

yousef is back. one of the most read stories is on the internet today.market reaction, your assessment, you've been there for a couple of days now. give us your view on the reaction there. still digesting a lot of the moving pieces. part of it is the clarification that they're only looking at the private is not the company bank accounts of those businesses that have been picked up. they're saying it's business as usual when it comes to the broader banks. they could've cast a little wider net. comments from the u.s. administration saying they been given assurances that it will be a fair and transparent process. unknownils are still but it is rattling investor nerves. major losses with a lot of momentum in volume, take a look bady bloomberg, that's the over forward, 250 points credit default swaps in a similar range. the latest view on the markets. is james bevan. we have a couple of big topics to get through. this is the conundrum we started the show with. the yield curve since 2007, this happened back in 2004. is it the same, or were drawing incorrect pa

further down the road we find an abandoned house home to a group of moroccan migrants eighteen year old yousef invites us in to see how they live the hygiene it can dish ans are poor they have no running water to wash their clothes these counting or so what they used to shower. we wonder why use estates here in these conditions he says life in morocco was as bad as it is here but after three years as an illegal alien he can get an official residence permit in spain. oh. at night the spanish sea rescue service saves fifty four young men from sub-saharan africa. the dream of a better life is what brings them to europe and in this very moment everyone on board believes they're going to achieve exactly that. down look at some other stories making news around the world british police have said the final death toll from the plane fell tower fire seventy one including a stillborn baby official said investigators had pushed up the van trees of what was scientifically possible to identify the victims the blaze broke out overnight in june quickly spreading through the tower block and trapping people ins

. ♪ yousef: a burst of energy, the iea says shale will be the biggest room in history. implications for markets? asia: trump's trip to trials to a close, trade and security topping the agenda, but what progress will he be taking home? s state oilabu dhabi' giant eyes

if yousef praise in the first praise in thesef first part, then the audacious theft of intellectual partylking about we have not been treated fairly by the wto. he talks about product dumping, currency manipulation, jobs in factories leaving the united states of america. he didn't expressly talk about china, but he talked about the region. anna: he talked about china in some places, but he didn't mention china in specific places. chinard overnight that has been taking action to open up its financial services industry. we are getting comments coming through from big global banking players. moving foreign ownership limits on its banks, asset management companies. ubs says they continue to work towards the curse stakes in china ventures. j.p. morgan says it welcomes china financial sector liberalization. we heard from the asia ceo earlier. you can pick up all of the comments that trump made. let's get to haslinda. she has been listening into the summit. good to see you this morning. , butarted out with praise he went on to say that he blames previous administrations and he is not going to st

in the next hour, thrilled to bring yousef masters.ndon, new york, good morning. this is "bloomberg surveillance." ♪ taylor: this is "bloomberg surveillance." at&t's fight over the time for a deal is heading thanksgiving showdown. officials have told at&t to about theeir concerns merger before the november 23 holiday. the governor could -- the government could file suit to block the deal. uber has set the stage for --. firms will bether allowed to invest up to $1 billion in uber and by up to $9 billion in shares from existing investors. emirates has agreed to buy 40 boeing 787's. the deal is a blow to airbus, which had been counting on an emirates order. it is not dissimilar to the 359. over the shorter range, and has better economics. airbus may argue the opposite of that. they pulled out of the deal in 2014. that is your bloomberg business flash. francine: thank you. the pound continuing its slump this morning. theresa may faces fresh challenges to her leadership. as many as 40 conservative mps have agreed to file a letter of no conf

yousef gamal el-din in the by. >> we will look at the fed in the struggle to convince investors. up with crude oil. regional plays, strategies on how to make some good yield. that is all we have for this edition of bloomberg markets: asia. this is bloomberg. ♪ this is bloomberg. ♪ ♪ saudi arabia's biggest companies signs a deal to process oil and chemicals, ultimate could be worth $20 billion. >> the rally loses steam as investors turned their attention as the dollars rising against his peers. near two-year highs as opec and independent producers meet, production curbs on the agenda. >>

yousef gamal el-din is with us and by. >> we have quite a few key themes.d. looks like he will be defending the status quote. theut through all that with managing director of global markets for a pack. c. apa we widen out the currency conversation and get views on oil ahead of the opec meeting and some of the middle east strategy ideas. that is all we have. bloomberg markets: middle east is just ahead. this is bloomberg. ♪ bloomberg. ♪ ♪ jerome powell it defends the status quo and says he wants stability in fed policy, not a top-down shakeup. >> janet yellen is due on capitol hill, defending her record in the postcrisis recovery. arroyo is snoozing through middle east tensions ahead of the opec meeting. softbank plays hardball

ramzi yousef was the immigrant terrorist who blew up new york when clinton was president.ost: what do you think of that. guest: i am not sure that the -- what the question is. host: her comments were similar to the first caller. you know, we're in a very different -- difficult part of our history in the country. we are seeing lone wolf terrorist attacks all over the world and we are seeing lone wolf terrorist attacks in the united states. we sought in june of 2016 in orlando at the pulse nightclub. in san seen it bernardino. we saw it in new york recently. a lot of these things intermingle with the kinds of thenstrations and activities we see like in charlottesville, you know, like in berkeley for demonstrations. it is a matter of, we are getting overrun and arrived by these kinds of activities and in we are in a difficult and unique face in our history. we react to things just like homeland security policies that we put together, the united states has since 9/11. it is more reactive than proactive. have angs we have done in reaction to key events that have occurred. 9/11,

yousef: we are seeing a lot of these commodities drop, you look at what's happening with rubber, zinc, iron ore, steel rebar, copper, the list goes on and on. it is a broad-based selloff and thethe most part, it's off back of concerns that china will focus on the quality of domestic extension rather than quantity of that growth. quoting from a note, china trimming all the capacity upstream, higher value export oriented indexes are running hot. given europe's growth it should pick up u.s. strength, and demand for raw materials will be robust. the argument being this could be an excuse for some profit to lock in some of those gains but a lot of commodities had a tremendous rally over the last two or three months. this could be some of the traders taking a breather. iea: i wonder about the report, demand will be weaker than expected. let's drill down into the oil market. what is behind these moves? it's fascinating, the energy complex was driven by a few specific events. on one hand we had concerns over demand but the possible surprise in u.s. crude inventory. a report suggesting a built