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tv   Bloomberg Markets Middle East  Bloomberg  June 13, 2016 12:00am-1:01am EDT

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help push in bind to sales. shopping lists of jumped 50% less two. >> new data shows the economy in china study last one -- month with consumers continuing to spend. >> canada national bank raised almost $3 billion in the single largest note issue the middle
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east and north africa has ever seen. >> an act of hate and terror. the worst mass killer in american history was born in the usa and once thought about joining the police. manus: it is 8:00 a.m. across the emirates. i am manus cranny in dubai. rish: i'm rishaad salon in hong kong. welcome to "bloomberg markets." manus: the world is almost russian for cover in the last ahead of that brexit pole. what does it mean for the uae and the middle east? u.k. tourists account for a proximately 9% of the overall tourist population in the uae. 14.3 million people visited dubai last year. billion.t $11 your pound is down. your pound is under risk, and that has considerable
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implications and where the traveling public go. when boris johnson joined the campaign, this is the blue tipping lower. it is the pound against the dollar. we had the pole over the weekend really skewing the brexit discussion. what is your risk and reward in terms of the pound? we have done a bloomberg poll. 9% downside, that would be the biggest on record. it would knock out the 2008 financial crisis if we wake up the morning after and go for brexit. you could trade down to $1.30. your reward? a paltry 5%, $1.50. rish: one commentor said come if you look at gains in the swiss franc, the sterling-swiss franc is the trade, according to this individual. he said we could get to $1.02 against the swiss franc in six months if britain votes to stay,
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saying we would get to that level in six minutes if we got a brexit. let's have a check on what is going on market wide, mum by opening -- mumbai opening. the hang seng, the losses are far steeper. there are concerns about the global economy, all playing out. japan just came back -- traders can back to their desks about a half hour ago, a nearly 3% fallback. two hours away from the open in dubai. we are having a look at what happened with study -- sunday trading. a quick snapshot of those losses with the dsm in dubai doing worse. trading daystough ahead of us. let's look at the other headlines on the agenda. rosalind chin is with us. is preparingantec
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to buy blue coat systems for $4.65 billion. the deal is expected to close around the third quarter of 2016. it comes with a new ceo, bluecoat's greg clark. symantec announced in april that ceo michael brown was stepping down as it reduced its sales and earnings forecasts. japan's favorite messaging app has pushed ahead with its ipo. cost it a pretty penny. the company is looking to raise about $1 billion. line's evaluation might be much lower than its rival as investors call on the tech sector. the final price will be set next month. chancellor angela merkel has called for foreign investors to have the same rights as local shareholders in china. meeting with lee could chain, she said the rule of law was
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crucial and important for relations between the countries. merkel said no one wanted a trade war between europe and china and germany support a stronger voice for china at the imf. president obama says the gunman who killed 50 people at a florida nightclub was filled with hatred and the massacre is being investigated as an act of terror. wounded.3 people were it's the worst mass shooting in u.s. history. the killer has been identified as omar mateen, a 29-year-old u.s. citizen born in new york to afghan parents. the fbi said he talked about the so-called islamic state in a 911 call before the attack. >> this massacre is therefore a for the reminder of how easy it is for someone to get their hands on a weapon that lets them shoot people in a school or house of worship or a movie theater or in a nightclub. we have to decide if that's the kind of country we want to be.
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to actively do nothing is a decision, as well. >> powered by over 2400 journalists in 150 bureaus around the world, this is bloomberg news. of china,ad data out china studying the ship in may. our correspondent tom mackenzie has got the details in beijing. pretty much bang in line. : you are right, and it's what bloomberg intelligence economists say points to this l-shaped recovery that policymakers have forecast. industrial output coming in plus-6%. that is in line with forecasts. retail sales were up 10% in may. retail sales were helped by a pickup in auto sales, more than 8%.
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8.6% in may, well above what we saw in april, perhaps being helped with tax cuts at the end of last year for some of the autos on sale in china. assethere was the fixed investment. there was a bit of concern. fixed asset investment in may came in around nine .6%, markedly below the forecast of 10.5 percent. we have seen more stable pmi services and manufacturing data. the deflationary pressures we have seen, those have started to ease somewhat. analysts like mcquarrie say these data points give policymakers a bit of room to breathe as they push through these supply-side reforms that they have been touting for quite some time. manus: does this mean that further stimulus is essentially ?ff the table some commentators are saying we will only get the full effect of the stimulus instituted a few months ago later on this summer. of: that is one line
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thought. bloomberg intelligence looks at this and says, what this data shows is that the effects of stimulus and the fiscal measures we have seen towards the end of last year and at the beginning of this year are actually losing their potency. they are able to support growth, but they are not able to push growth much further forward. they are saying, look, it shows that entrepreneurs are staying on the sidelines. if you look at the fixed asset investment we have seen, a lot of that is being supported by state-owned enterprises. private companies are holding back, which points to their concerns about the economic picture. bloomberg intelligent say that the data points to gdp coming in at 6.9%, which is comfortably within the governments range, and also our economists say that they expect the rate cuts are
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possible but unlikely. back to you. , our chinas, tom correspondent in beijing. sales roseal arms 10% last year. 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
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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 global conflicts. it's too early in the morning for geopolitical prognostication, at least for me. let's look purely on the markets and financial side. on that basis, ihs says, given lower oil prices, we are probably going to see a drop in imports in the coming years. all of that growth is being driven by the middle east.
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yes, we have some growth from asian countries, but the big chunk of it is coming from places like saudi arabia. with oil prices as low as they are, those countries will be shifting away from p croom it -- procurement. manus: we talked about the import side. what about the export? u.s.: the export side, the is still the top exporter for global arms, something like $23 billion last year, and almost $9 billion of that went here to the middle east. there's an interesting dynamic happening lower down the charts. russia is still the number two exporter of arms. ihs predicts it's going to be overtaken by france in 2018 and 2019. that is due to the mega submarine order from australia for $39 billion. we do have a shifting landscape on the export side. manus: thank you very much, tracy alloway, our bloomberg
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markets the expected of editor in other dobby. let's get in the markets and take a look at the prospects for the coming days. gary dugan is chief investment officer at emirates nbd. we've covered china, saudi spending money. the world is running for a little bit of cover. china has almost taken a second seat to brexit. much so.has very people talk about the debt problems. it is still chugging at about a 6% growth number. the kind of momentum of growth is gone. part of thearly year, we started on a downer. we went back up. we saw some momentum, and now it's just sideways. manus:manus: what about the imf warning on china's debt? this is one of the most salient issues. tom was just saying the bloomberg intelligence rate of growth in china, 6.9%, but they
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are losing their potency. this is a thorny detour that the imf or warning about. how pressing of an issue is it for you? gary: it's an enormous, but we don't think the dawn of it is happening. in a controlled economic environment, which is what china is, the authorities have the power in order to overcome this problem should problems occur overnight, should some companies get into trouble. we would expect the authorities to come running to help out. they do have stronger controls over the economy and the impact over the financial system. manus: at the top of the show, i discussed the brexit risk. i went through some of the numbers in terms of the uae. in terms of the uae, the u.k. makes up 9% of the tourism. 14 million people traveled to dubai in 2014. how big of a risk is this brexit in terms of you when you talk to clients?
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how are they reacting to it, and how are they taking to it? this is the pound, and this is the msci all world index. >> they are taking it seriously. if you look at the hospitality note,ry, it is on a soft and this would be another factor of the disappearance of the russians and chinese, of a group of potential customers who will have less money in their pockets. don't forget the europeans. although people keep talking the sterling down, it could bring the euro down, which puts less spending power in the pockets of european visitors. manus: we can get into that and dig into that more. you are going to stay with us, gary dugan. coming up later, picking up property. qatar is eyeing an important part of singapore's skyline. dayext, will it be another of declines in the gulf as investors brace for decisions from the fed to brexit?
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more analysis coming up on "bloomberg markets." ♪
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you are back with "bloomberg markets" as we get the latest from the market action. the asian-pacific, looking pretty much in the red at the moment. liette: not a great start to the trading week across asia. have a look at all of the selling we are seeing, japan leading those losses, down almost 3% on the nikkei 225. the flight to yen, the safe haven. there are only two plays on the nikkei 225 that are in the black . quite a lot of selling coming through in hong kong. one stock on the hang seng index is higher on its lunch break, down by 2.5%. we have seen a lot of negative reaction coming through with investors showing trepidation thed of the boj meeting,
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bank of england, the fmoc, and brexit, weighing on investor sentiment. shanghai, a fairly stable days trade on the back of the industrial production. the shanghai composite opened lower by around 8/10 of one remains atnt, and it that level. australia, closed for the queen's birthday holiday. no chance to react to that data out of china. i just want to show you quickly the chinese are monday -- rim and the. it fell to a two-month low. still down for tenths of one thing percent. 6.5850 against the dollar. rish: thanks for that. manus: gary dugan is the chief
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investment officer over at emirates nbd. he is still with us. let's get into these markets. what i've got here for you is the uae bond spread. they are widening out a little bit relative to benchmarks. this is the largest middle east tear one note offering on record. when you talk to clients, are whatecommending pickups? is your advice in this area? gary: we remain comfortable with local credit. gary:both on the sovereign side and corporate debt side. a couple points. first, you get a smith can premium on dollar debt. as long as you don't break into pegs breaking, this pays a good premium. if we have a preference, it is probably going to start to skew towards sovereigns. i think corporate debt not just here but globally is at risk. typically, corporate spreads go
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out when equity settles. rish: great to see you, by the way. where is the juice and all of this? that's the question. gary: i suppose there really isn't. talking about small numbers. a lot of our investors are sitting there with cash. premium on our cash deposit, but globally, you can't. investors are getting concerned with corporate debt. even though high is still paying around 5%, we have seen in the past that high-yield and investment grade could be down somewhere between 10% and 20% in terms of capital terms. you're not getting paid a lot of dues, but i think people are prepared to take a bigger bet on the bond markets, particularly sovereign debt, over the risk in the equity market. you rish: look at what has been happening with sovereign debt, particularly at the end of
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last week, with jgb's in japan going to record lows, there's huge rally taken place. what has been baked into the price? gary: firstly, it's liquidity coming from the central banks. they can only buy what they are mandated to buy, and that is typically their own sovereign debt. secondly, we have been seeing a lot of insurance companies .esperate to pick up any paper hence, these yields are being pushed into significant negative numbers. what we are seeing with the bond is incredible. in the back of investors' minds, zero is not the boundary. when you are looking at gains, you start to think, maybe they more -1, and maybe i make capital gain than a zero boundary would suggest. manus: i'm trying to benchmark as they come in. is it too soon to take the opportunity? we've seen an aggressive ramp up
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on the energy side, the real estate side. these are the lofty ambitions of the deputy crown prince. how do you look at saudi? gary: if the next 3-6 months, you worry about global events, but longer-term, within the region, people are buying into these plans. we have only had stage two of five stages to come out. there is a good framework to it. there is a lot of logic to it. if that logic plays out inconsistent gdp growth, irrespective of the ups and downs, it will drive valuations higher. manus: nobody is going to get withouthis show responding on the fed. we've got the fed tuesday and wednesday. we are going to talk about inflation expectations. if you're unsure of where to go for the future of interest rates, this is where you want to go. what you think of the emirates nbd?
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can they get one hike away, two hikes away, and are you join the global bond drop in terms of yield? gary: i think we are going to see a fed committed to wanting to increase interest rates twice. i think the dots are aligned with that view. that will drive bond yields down further. manus: where can we get to in bond yields in the u.s.? manus: i think we could be down to the -- gary: i think we could be down to the 150 level. manus: thank you very gary dugan, chief investor it -- investment officer at emirates nbd. coming up, some unwelcome attention for goldman sachs as regular tours question the relationship with malaysia's troubled one nbd fund. that is up next. ♪
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rish: new york's banking regulators are said to be look at goldman sachs over its fundraising activities. xiaomi madame is in singapore today. tell us more about this inquiry. xiaomi: the department of financial services wants goldman reviewrt on its internal and to its fundraising for 1mdb and provide a report by june 31. pinnie to look into banking laws that may have been violated. me, what is being flagged as unusual about these transactions? 2013, goldman made a
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dbries of bond sales for 1m and raised $69 for the fund. what was unusual, by putting its capital at risk, goldman got $593 million in fees and commission. that is above average. rish: very quickly, what else are you us investigate looking at in relation to 1mdb? 1mdb is being investigated globally. it's been investigated in at least 10 countries. in the u.s., one other investigation that has been going on was the new york fbi suspicious property transactions in new york and l.a. rish: great talking to you.
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adam, our kuala lumpur bureau chief in singapore today. manus: coming up, the orlando massacre sparked the latest emotio get ready for the rio olympic games by switching to xfinity x1. show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you?
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the last 90 minutes of .he trading day in tokyo dur ♪ rishaad: your top stories. ihs, saudi spending $93 million
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in armaments. rival,ing its regional iran. manus: china's economy steady in may head industrial production rising 6% from one year earlier. 10%.l sales climbed fixed percents of the 9.6% below forecasts. moderating factory gate deflation, the data suggests that fiscal support doing their job. killed: the gunman who 50 in a florida nightclub is the worst shooting. had been working as a security guard since 2007. the fbi had investigated him
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twice before him said he declared a to the so-called islamic state. presidential candidates reacted to the massacre with trump saying he is right on is on the extremism and clinton: for tighter gun laws. 12:30 here in hong kong. in dubai.0 here anna: 5:30 here in london. good morning. let's talk about what's coming up in the program. we are going to be talking a lot about the eu referendum in the u.k., the brexit debate. here are the betting odds surrounding the decision, data en from online. we have seen quite a lot of volatility coming in here.
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we have jumped a bit in a bit in the trading on this website to factor in some of the recent polling on friday. we saw a pool that put delete campaign 10 percentage points ahead of them remain campaign although even the leave campaign as board cold water on that particular poll. a couple of polls putting things once again to close to call but the currency markets have been reacting as we know a two-month low on the pound. the strength of the yen really the story there. today the focus switches to the midlands in england where brown, the x prime minister, will be giving a speech. the labor leader has been accused of being quiet on the subject of the referendum beauty says his party is having trouble cutting through the noise around the internal fallout within the government. it will be interesting to see what gordon brown -- bank of england also being preparations starting tomorrow. manus: possession probably
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aren't in the market that they are taking preparedness to the next step. the best line was mike cameron said, let's forget about the polls. you are in an interesting paradigm peerless talk about the election in spain. spain needs more of the same policy -- anna: david cameron was saying forget about the polls. that they don't understand the bosa they give you some idea about how uncertain the outcome is on the 23rd of june or the outcome will get on the 24th of of course. political not just in the eu referendum debate also this spanish election, the round of elections on june 26 just the weekend after the eu referendum after we got inconclusive elections in december. the acting economy minister for the party that has been in charge of the spanish economy in recent years defending reforms of the people's party and a live
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television debate last night. the number two in the polling calling for investments in spanish industry if they do better in this round of elections. a lot of the questions about what spain's attitude is toward .he euro and membership of it that was a hotly debated or avoided topic just another story that highlights political risk around here right now. manus: i will see you in 25 minutes, thank you. ashaad: it seems like barely week goes by without news of the bond offering from somewhere in the middle east. qa -- sois guitar let's get to all of this and find out what is going ontar. you tell me all about it. it seems like no only goes by what a new president isn't-- a new precedent
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sent. sales already at a record across the gulf. qatar is the one making the running here. we saw the sovereign issue, now it is the turn of qnb, their largest bank which is 52% owned by the government. they have placed the largest offering the middle east region $2.75er seen, some billion. the bond sales just keep on coming out here. tell me something, can we put all of this at the doorstep of this oil crisis which has gone down from 100 plus to where we are now? is certainly a major factor. the start of the year, most people were predicting that sales would jump. we have been a sovereigns who
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are coping with natural up in oil prices which is the main source of income for them at the same time, they are withdrawn their deposits in banking which accounts for a liquidity in the region. it is part of the same story that is leaving banks with a worse liquidity situation. qatar, the ratio is something like 130%, so the banks are having to fill that capital .lance and from somewhere that isq why has been the most active inn the market this year with multiple private placementsb . rishaad: this is another private -- it seems to be the norm in the gulf. well, as you observed, oil prices have pretty much have in the past two years and that has had an effect on the borrowing costs that borrowers are having to pay in that environment -- qatar is a
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regular-established issuer. they do not want to print in public bonds at a higher rate than historically they have been. they managed to achieve their borrowing, probably paying a little been more but it is not all that in the open so we are not sure, but we can assume that the open up and more -- they also guarantee they can his acute the transaction by dealing in aunderwriters who private placement situation normally guarantee the sale of the bond. rishaad: our middle eastern market -- manus: let's check in on the other stories making headlines. a powerful explosion in the root and destroys several cars and wounded one person compared the government confirmed the bomb was placed under a vehicle but did not say whether anyone has been delivered only targeted.
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it happened as locals set down to the meal breaking fast during ramadan. rent fell in dubai last month. lenders are finding it difficult it to attract tenants especially at the upper end of the scale. rent dropped by 1.2%. impactriencing a delayed from the collapse in oil prices that has led some companies to cut staffing. taiwan's new leader has blocked her predecessor for making a visit to hong kong. rejectede said it has the travel request because it needs more time to make security arrangements. made him the most distinguished guest to visit -- powered by over today 400
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journalists and 150 bureaus around the row, this is bloomberg news. now the killing of 50 people in a gay nightclub in orlando opening another emotional debate about guns in the united states could obama send a massacre was an attack on all americans and was an act of terrorism. donald trump slamming him for not using the words radical islam. even on is calling all of this -- following all of this. -- yvonne: that is right, the gunmen who was shot by police 20 omar mateen, a nine-year-old u.s. citizen born in new york to parents who have come from afghanistan. he lived in florida and those who do and say he was a bodybuilder, security guard, religious person, who, at one point, thought about when the police, so, you never pursued it -- the fbi says he made in a long call before the attack on the pulse nightclub in which he claimed allegiance to the so-called islamic state. he came to the beer's attention
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in 2013 when he allegedly made comments to coworkers about links to terrorist groups. the following year he was again investigated for possible ties to an american who became a suicide bomber in syria. nothing incriminating was found either time. he worked as a security guard since 2000 seven and despite official suspicion was able to lastly purchase guns just week. they in this statement, the company says it is fully cooperating with authorities and its thoughts are with the friends and family of those affected by this tragedy. rishaad: well, of course, in an election year, this is down to become somewhat political so what are the residential candidates responding with? yvonne: donald trump called it the worst attacks is that 11 and said that president obama should resign because he quote disgracefully refuse to even say the words radical islam in his remarks. he also accused hillary clinton
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of doing the same and said he predicted such attacks would happen 30 he tweeted, if we do not get smart real fast we're not going to have a country theire, appreciate congrats for being right on radical islamic terrorism. clinton says quote when you redouble our everest to pretend our country from pets at home and abroad, we need to keep guns like the ones used as an at at hands of terrorist or other violent criminals. and here is a president obama had to say. president obama: the fbi is appropriately investigating this as an act of terrorism. must have directed that we bear no evidence from and what if any inspiration or association this killer may have had with terrorist groups. is clear is that he was a person filled with hatred. over the coming days we will uncover why and how this happened and we will go wherever the facts lead us. yvonne: however, omar mateen's father told news that religion
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had nothing to do with the killings and his son may have been motivated by homophobia. his ex-wife says he was mentally ill. security has been stepped up at gay pride events that venues across the state. it is the worst mass shooting in modern u.s. history. a response to these tragic events in orlando. up, saudiing electricity's company wants overseas help to build new solar a look at the projects when bloomberg markets middle east returns. ♪
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you are back with bloomberg markets middle east. it has been a terrible start to the trading week across
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asia. the regional index has fallen the most in two months. we are seeing nowhere for investors to hide today. the japanese yen has broken through 106 to the dollar, .ending the nikkei off only two stocks that are actually in the black today. exports coming under significant pressure, and a big flow out of stocks in hong kong, the hang seng down. composite who went on his lunch break down 8/10 of 1%. 8/10 ofand also down 1%. you can see at the regional index, every sector in the black as investors play the waiting game, waiting for the fmo cbd, waiting for the bank of japan,
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waiting to see whether there is going to be a brexit this month. the end continuing to search, investors fleeing to save haven assets. this is actually a session low for the end. -- the yen. the british pound also a fall.uing to a lot of weakness coming through in the pound and commodity currencies. manus: thank you. let's focus on saudi arabia. the state electricity company is seeking bids to build two solar power plants. what kind of projects are these? give me a sense of the size and where they rate on the solar agenda? about they will each be
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50 megawatts maximum depending on what kind of dates they get. ipp, will be from independent power producer companies that build power prints and operate him. they will be paid back over 25 year contract lies pities plants are going to be in a north of saudi arabia, an area they have earmarked for industrial investment they want to develop the economy there and plants like this that it can integrate into the power grid are useful because they can be located remotely in an area that is maybe not as hooked up to the grid where saudi arabia wants to add some business. to or thes all adds grand plan, vision 2030, the national transformation program, weaning saudi arabia off the dependence on oil. where does this rank in terms of
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their plan to build renewable , they have have said been many ambitious plans and promises and quite often they have not been delivered. this a more manageable target? the current target is to get to 3.5 thousand megawatts by 2020. we are looking at 100 megawatts. they are going into the process bidders tolified this process could take through the end of the year before they assigned a winner for this project and they get building. timef you look at that frame, that is a lot of work to do in four years. of course, you have to start somewhere so this is the first project thatst ipp saudi electricity is starting here in the country. saudi ramco has about 10 megawatts of solar panels on a
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parking garage in their offices. manus: i think that about sums it up. thank you very much. looking at royal -- looking at royal. -- looking at oil. wayne is the executive director of commodities at ubs in singapore. is the recent rally we have seen evaporating? guest: i think it was always going to soften in the third quarter. we saw a lot of disruptions across the world during the second quarter. in may, as data comes in, it looks as if the market was in
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,alance in the second quarter at least in april and may. the prices are reflecting that. from here, we are starting to see some activity and the u.s. picking up. some of the producers are now talking in some of these prices going forward in slightly above the $50 mark range and we are starting to see that activity likely to push oil back onto the market in the third quarter so i guess from a structural point of view, we still see a step that but structurally we are moving closer to that balance situation that we have all been looking for by the end of the year. oil ministeruae was talking about it on this program a couple of weeks ago. this is now a market where demand is outstripping supply. it takes time before we actually see that in the price itself?
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look, i guess the speculators are really there. we have seen noncommercial positions at very high levels. if we do start to see some of these outages which are primarily behind the balance in moreil market coming quickly than what otherwise the capital expenditure and other cuts would indicate which are broadly showing at the end of the year that he's outages have brought it forward a little bit. we have also seen strong product demand in the u.s. up a has also been soaking lot of the oil floating around literally. it is a matter of not just on the supply side but also the demand side continuing to remain strong as it has been the first part of the year. if you look at growth, growth globally looks like it is disappointing a bit so it is hard to imagine we don't see a
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step back in the short-term. thank you. please stick around with us. ♪ more when we return. ♪
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we are back with wayne gordon, executive director for commodities management at ubs in singapore. a balanced supply situation when it comes to oil, where do we go? it seems like opec is low to do anything without causing a political fisher. could not agree more, i think the opec meeting shows that saudi arabia was bound mending fences at that particular being joined to keep the group together. i guess what is fairly clear from the way the oil price has been trading is saudi arabia is bumping up against capacity
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constraints so once again, although there was a lot of discussion at the start of the year in saudi arabia relevant anymore, is opec relevant anymore? it is clear that it is because saudi has been increasing production and has these outages have been coming onto the market and it looks as if they are going to increase production again over the next six months or so and so i think, and iran --we will continue to have opec in the headlines. the volatility in oil prices will only pick up. good morning from dubai. we have a gravitational to our reviewers. before -- too far, too 100 and we have rented up 40 days and a rope you i have
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talked to so many people down here -- it is just not there. we have at a colossal rally. saudi is producing more. give on is ambitious. surely this market has run out? guest: we think it has at least in the short term. find that very relevant in the middle of next year. largely because this is not like 2015. 2015 we had a lot of capacity cuts to be made. we saw the shale oil sector lending forward in the u.s. they have also pulled that a lot of capital expenditure over the last 12 months. so, we are further down the road of supply tightness. even with this current run-up, we do not think it delays the supply side tightness like it did last year. we still see that in the first part of next year as having
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supply tightness. rishaad: great to see you. ?c+sv
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♪ study,hina sakata may but investment growth slows. push, david cameron says he is confident that the campaign is working, but the latest polls say opinion is too close to call. a nation in mourning following the deadliest mass shooting in u.s. history. it is being investigated as an act of terrorism. the presidential candidates spar over gun control. ♪ anna:


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