♪ >> the yen strengthened on japan's third straight monthly trade surplus, exports the client at the lowest pace in september 2015. >> transpacific ties threatened by a stolen drone. donald trump china should just keep the thing. cutting jobs. >> raising money and saudi arabia, now valued at $1

billion. >> it is 8:00 a.m. across the emirates. i am yousef gamal el-din. i am haidi lun. we are entering the last full trading week before the christmas holidays. it is a soft start to the asian session, paring gains, declines from the chinese markets. we will kick it off with a look at what has been happening in .erms of this asian session keep in mind that japanese shares have gained six out of , so ast few weeks breather when it comes to japan. hong kong at its lowest close, so some worry as the markets play out. mumbai at the moment, trading

has just started their. an are taking a look at interesting chart at the moment. u.s. dollars strength taking a breather. get some context, get some perspective. 10 year u.s. treasuries. we are still close to those highs we saw, two year highs we saw last week. well on those rate differentials. in blue, theline cold chart, and again, under pressure. hedge funds cutting their bets. and thenramping up, also the worst streak in the year, dampened demand for gold. it is a non-interest-bearing asset. where all this will go is one of the key questions investors will be asking themselves through

this trading week. what you watching? haidi: we'll take a quick look at fed play. mumbai has been online for 20 minutes, lower by .3%. hong kong one of the biggest decliners in this part of the world. fixedhtly stronger yuan today, but lines at the conclusion of that three day economic workshop in beijing saying the focus will be on i stricter fiscal rules and a more neutral stance when it comes to monetary policy, weighing on concerns, particularly in a market where liquidity has been raising some fears. tokyo stocks up .25 percent, falling for the first time in three days there. how i think shaping up for trading in your part of the world? yousef: we will be watching the key risk events, the u.s. electoral college vote, and janet yellen speaking on the job

market.ere it we are to it has been a mixed picture across the board. --dubai aboveve the flat line. saudi stocks making up some ground as well, rebounding from what has been a weekly drop, first since october. we did have a public holiday in qatar. let's check in on first word headlines from around the world. here is sophie kamaruddin. overheated hoppity market cold again. prices gained from the previous month and 55 of 70 cities tracked. 62 in october.o prices dropped in 11 cities compared to seven a month

earlier. the government said it will reign in speculative homebuying. the existence of the united kingdom could be under threat with scotland indicating a new referendum on secession if it is forced out of the european union by brexit. the first minister warning adds to pressure on theresa may. she has promised to listen to the people of scotland, wales, and northern ireland before opening talks in brussels by march. the road surface on the bridge will be completed by the end of the year. theneers are covering pavement with asphalt and say 75% is finished. the bridge and tunnel project is 50 kilometers long and began seven years ago. than $10ost more billion when it opens 12 months late in december next year. uber's middle eastern rival, at $1, has in valued billion after receiving a $100 million investment from saudi telecom. was founded in 2012 and

raised $60 million last year to expand. it is working with credit squeeze to raise $500 million. raise $500uisse to million. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. haidi: the yen and stronger as the boj begins its last meeting of the year. economists are expecting no change. let's get over to kevin buckland in tokyo. what are you hearing from traders, no chance of a christmas surprise from governor kuroda? well, you never say never with governor kuroda. that is one thing i have heard. traders in particular don't want to get caught out, so there is some squaring of positions. that is part of what we are seeing today in terms of the yen action against the dollar.

lookingadly, people are for what governor kuroda says in the press conference afterwards. the thinking is there won't be any change in policy because if it isn't broke, don't fix it. he has the yields under control despite upward pressure globally stemming from the u.s., and the idea that he has been able to keep a lid on yields here while they are rising elsewhere, putting additional pressure for the yen to weaken against the dollar, so basically looking beyond the consolidation we are seeing right now, what he says about a rise in yields, the pressure from yields, as long as he sticks to the idea that he is not going anywhere on that 0% target for 10 year jgb yields that should put upward pressure on dollar-yen. at a notewas looking from ubs this morning, and they expect the dollar-again to rates and105 on real

u.s. deficit concerns. what else are we getting in terms of the outlook for the yen and 2017? >> this is what ubs wealth put out today, which is what we have been seeing from the yen bulls. there forecast was for 98, and they had to mitigate that to 105. just because the rally and dollar-yen has surprised a lot of people, how forceful it has been, but there is a split in the market. the bulls, the yen bulls still see things like donald trump's protectionist stance coming to the four, perhaps his promise of won't reform, stimulus, live up to what the market is pricing in now. perhaps two rate hikes next year from the fed, not three. we have seen time and time again where the fed has not lived up how fastomise of

it was raising rates, so all those things are in the yen bull camp. the yen bears, if we don't see that protectionism come on strongly, than the idea that u.s. treasury yields could keep rising while the boj keeps jgb yields anchored. that will continue to drive dollar-yen higher. people like for example short-term i think 120 among bears is seen as a risk. numbers closethe or the recent 13 year high that we saw for dollar-yen previously. yousef: thanks, kevin. let's stay with that. the central bank theme more in dan, bringing williams. great to have you on the program.

central banks in focus on the back of the big breakout across asset classes off the back of the -- this chart, it tells the story of the balance sheets of the boj, the ecb, of the federal reserve. it looks like they will be hiking more in 2017. how many rate hikes are you looking for? >> the market is pricing in two and a half rate hikes at the moment. wait no the dots they have forecast are three next year. forecast four in 2016 and they only did one in december. what we have seen is janet yellen starting to shift to quite slowly and carefully less dovish. we are seeing a lot of commentators come out and say that you are going to see more changes. we saw asset prices moved quite a bit on the back of that, particularly u.s. treasuries, and now the spreads between the 10 year and the german bund, the

whitest it has been in a long time. youi: you still see what call silly behavior, high risk behavior, and the search for yield. you see that continuing as we get high rates and see this return to yield going into 2017? >> we have seen a lot of investors in the global hunt for yield off of low rates across europe, germany, even the u.s. recently to a certain extent. we have a lot of investors going , international investors going to european asset classes like danish mortgage backed securities, going into assets that really are not pricing the risk they have. is thethink we will see real change from monetary policy to fiscal stimulus, and seeing the u.s. probably the best place

in order to do that, but we are seeing changes in japan, europe in terms of their qe programs. japan bought half of the available bonds. by the end of the year, the ecb will have bought a third of, sorry half of the available eligible bonds, hence why they have changed things recently. haidi: dan, stay with us. we will pick up that conversation when it comes to that shift in terms of fiscal policy being the heavy lifting. let's check asian markets. it had been a tepid start to the trading week. yes, we are seeing a lot of asian markets underwater today. we have that yen story playing into the nikkei, down by .3% in afternoon trade. well,ong not doing

construction and insurance stocks under pressure, down .8%, listed ine stocks hong kong are on track for their worst close in a month. flat on the shanghai composite and the korean markets. mixed movement in southeast asia. new zealand also closed higher today, up by .4%, so it has been quite a diversion story on the market picture. in terms of currencies, the falling to its lowest level against the dollar since the 1998 asian financial crisis. it is pulling back a little. .t is down by .04% it did hit an earlier low. this is of course on this crackdown on currency speculators and we see a lot of investors out there ourselves down in these emerging-market assets. we have also seen the offshore

renminbi have a solid move against the dollar, up by .3%. sinces its highs level december 1, after the strengthening by the pboc of the fixed today. haidi: thanks for that. later on, there is renewed optimism when it comes to oil. things have not looked this good in more than two been years. drama on theext, high seas. donald trump ramps of the rhetoric avenue or china seizes a u.s. navy drone. we will have the details for you. this is bloomberg. ♪

haidi: welcome back. you're watching bloomberg. i'm haidi lun and hong kong. yousef: i am yousef gamal el-din. let's get you a check of the latest this is flash headlines. china's leading developer

blaming shareholder dissent for its decision to issue new fares to fund the purchase. vanke was ready to pay up to $8.6 billion. shareholders could not agree on the deal. nke has promised no major asset moves. haidi: nintendo took a tumble as super mario earned lukewarm reviews. are 8.4%. losses the title is only available on apple devices. it has had 50,000 reviews. an average rating of two and a half stars out of five. yousef: yousef: relations between washington and beijing remain strained tracy:. it wastagon said operating in international waters while china says it was near a disputed stretch of see

claimed by several countries. washington says the drone will be handed back. although president-elect donald trump tweeted that china should keep it. daniel williams is still with us. this back-and-forth between china and the u.s., this appears to be escalating. where will this go from here? >> it is concerning essentially. we have seen they've had good and bad relations in the past. what we would like to see is a bit more agreement. trump has said free-trade is good. understanding if they can get to some form of agreement by working together. yousef: we have concerns about what he will do in terms of foreign policy, protectionism, will he follow through on that. the other side of the equation is tax cuts, fiscal stimulus, especially that we have fiscal conservatives in congress. is he going to be able to

deliver the kind of stimulus that's going to make a difference in these markets? >> he has promised higher spending, lower taxes and lower deficit. we know that the republicans don't like to grow spending. ofsaw that with the shutdown government under obama. it really points to how this will be funded. were talking about repatriation. will that the enough? at the moment, the market is pricing in that he will be successful. we have seen financials, materials, energy rally off the back of deregulation and a higher oil price, but it remains to be seen whether these policies will be successful, certainly from some of the fed comments, it is a wait and see mentality, but i think the markets could be in for a bit of a shock should the rhetoric change and you go back more towards his protectionism stance. that is the interesting

thing, isn't it? it feels like one of those things where the market comes up with a narrative and then the herd mentality runs with it. fortalk about the potential downside risk and an unraveling of this donald trump rally we have seen. a much does that play into the way you are positioning yourself for the first quarter of 2017? >> we have the another fed meeting before president trump actually comes in. essentially i think the markets will really look at various sectors. we have seen a change, financials up 20% over the last five weeks, but starting to give back some of those gains. of sectora bit rotation. if the markets are up ever since trump came in. i think you will see more selling off towards year-end, and people keeping themselves nimble for any changes that may come a foot. we've been talking about

black swan's not being black swans for 2016. what are you most concerned about for 2017? is it risk in europe? >> it is the populist movement. we saw in 2016 with brexit, trump coming in, recently the italian referendum. ,e have elections in holland potential a tie in elections come france, germany. if we start to see the populist movement come in one alone probably can cause a lot of problems, but if they all come across, then it could cause us issues. populism one fact. the other what will happen to the emerging markets space off the strength of the dollar. you can see right there how emerging stocks have gotten cheaper versus developed markets. what is your take on where emerging markets will go from here? >> we have seen them get cheaper

since the election. the emerging markets will have to deal with raising rates in the u.s. him a but that is quite a popular, crowded trade. close will come out of the u.s. -- sorry, out of emerging markets into the u.s. as rates rise. however if you historically look at the correlation, if the u.s. is growing and donald trump can deliver on his plans, that is quite good for emerging markets. we could actually see emerging markets do quite well next year. yousef: we will leave it there. joining us live. still to calm, let's give you a preview. middle eastern carriers under pressure to adapt to slowing growth. iswill see how etihad dealing with the challenge next. oil higher as we speak. more on that story as well. stay tuned. this is bloomberg. ♪

haidi: welcome back. you are watching bloomberg. i'm haidi lun in hong kong. yousef: i am yousef gamal el-din. cutting hundreds of jobs amid slowing growth after years of aggressive expansion. how difficult is the situation ?t etihad a surprise given that airlines have been exempt from some of the consolidation and cost-cutting. >> that's correct. in the recent months, it has been difficult times for the gulf airlines in general. they are no longer seeing the same pace of growth. told usof that, etihad that they are going to a process of restructuring. they are looking at ways in which they can cut costs and boost revenues, and part of that pain on the airline is that they are going to reduce their

headcount across parts of the business. come attention in a weaker global economy. yousef: give us a sense of the extent of these cuts. >> sources have told us that the total layoffs could be anywhere between 1000-3000 jobs, so that's quite a bit. it is a figure the airline itself would not confirm. if you put that into the context 20,000ad in employing core staff, and that goes up to 26,000 to include subsidiaries and staff they employ a broad, cut acrosse cuts i.t., hr, commercial sales. that is what we are hearing from sources. yousef: what is driving these cuts? seen pressurealso on revenues and net profit. is this part of a wider trend in

middle eastern airlines, saying we are way overextended and we need to rein in things a little bit? >> that's right. it's no longer the easy growth of days past that comes in a broader picture of slowdown in growth for the gulf airlines. we have seen a couple of months ago that emirates announced their first half profit dropped considerably. we have seen qatar airlines complain demand from the oil and gas industry has been softening. this comes within the general context and the bigger picture of the gulf economies facing slower growth because of the oil prices, and even here in the united arab emirates, we have seen a general trend of job cuts with banks. yousef: we will see how it plays

out. thanks a lot. still to come, china's property market continues to cool as authorities rollout fresh curbs. this is bloomberg. ♪

haidi: it is 12:30 p.m. in hong kong, eight 30 a.m. in dubai. trade surplus for a third straight month in november as imports continue to fall faster than exports. >> shipments declined at their slowest pace since 2015. the finance ministry says exports fell .4% last month from a year earlier. exports had declined 10% in october. australia's treasurer is sticking to his forecast of a return to budget surplus by 2021 armed with a slightly narrower budget deficit, scott morrison hopes his midyear budget update will hold off a credit

downgrade. moody's says the current situation is consistent with australia's aaa rating. has retained lotte its duty-free shopping license. its parent is being investigated over allegations of paid money to a friend of the former north korean -- south korean president. slappeds reportedly a travel ban on leaders. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. yousef: thanks. two thirds of companies listed on saudi arabia's tadawul index are flashing sell signals. it is the highest percentage in the world. we did see gains driven by petrochemical shares in the last session. tracy alloway joins us live from

abu dhabi. walk us to the technical indicators here. outy: as you rightly point at 65%, this isn't only the highest proportion on the in years, it is the index with the greatest portion in the world. this chart illustrates it quite starkly. what sell signals are we talking about? moving average crossovers, gauging momentum in the stock. when the stock price to verges from these moving average crossovers, it usually signifies the end of the trend is coming. the trend so far in saudi stocks has been relatively good. since saudi arabia sold that $17.5 billion make a bond, the entire share index is up by a third info you. prices hasy in oil

helped somewhat, so the question is whether or not we should be paying attention to this technical analysis. a lot of people have strong feelings about technical analysis indicators, but that proportion, 65%, is a big number. it's not all bad news when it comes to gulf stocks, is it? that's right. if you look back to the beginning of the year, we had that big selloff in emerging-market stocks, especially here in the gulf. it looks like a few of the gulf indices will end up. , we are aroundbi 4500 points, 200 points better than where we started the year. again, the oil sentiment feeding into that optimism, but one word of caution remains trading for humans.

we saw a pronounced slumped beginning in the summer, and oddly enough we never saw activity pickup in the market and it remains a pervasive mystery right now. had morewe not activity given the turnaround in oil and oil-related sentiment? that is one we will have to watch in the new year to see if investors come back into the market. haidi: thank you for that. tracy alloway there for us. china's attempts to rein in soaring property prices appear to be taking hold as we have new ,ome prices rising in 55 cities fewer than the 52 the month before. types of multiple cooling measures finally having an effect? rosalind: definitely. this is the second month where we have seen new home prices falling, or growing by less than previously. fellshen, new home prices

month on month. shanghai, new home prices falling 0.1%. beijing remains unchanged month on month. cooling-offshenzhen slightly because of these measures put in place in september. then, more measures brought into cool off the market further. that leading to the slowdown. year on year figures, you can thethe reasons why government is worried, because shen jan is up by more than 28%. shanghai up by more than 34%. beijing up by 28.9 percent year on year. that is where authorities are concerned. the meeting on friday had official saying they want to control risk to avoid asset bubbles, and that's going to be

a key priority next year. property is one of the main focuses for them. steps on trying to deflate the real estate bubble includes limiting loans for speculative home purchases and eliminating the excess housing supply in third and fourth tier cities. they also said in a statement after the meeting that houses are to be inhabited, not for speculation, so perhaps a warning sign for those speculative hires in china that there could be further clampdown's next year. taxation, investment, and other instruments will be used to curb real estate bubbles. chinese policymakers have been trying to manage the currency weakness, trying to contain the outflows. what does this imply for the priorities as we go into 2017? one to the things that came out of this key policy meeting, as well as a clear

concern about asset bubbles and to try to work on those into the new year, was a slight change in wording in terms of monetary policy. they said they will pursue a prudent and neutral monetary policy, which some are taking to mean tightening. the royal bank of scotland saying the emphasis on tightening and saying policy will be marginally tighter. the fed signaling three rate hikes next year. china with this indicator that maybe it will, perhaps has already started tightening as well. two biggeste economies in the world tightening in 2017. however, china's monetary policy is undergoing somewhat of an overhaul now, so they don't see any change in interest rates next year. push predators include the

on the supply side reform. in general, president xi jinping saying they will meet its goals. yousef: thanks. let's talk ridesharing. i have ridesharing on my mind, and specifically companies that are giving uber a run for your money. at $1 has been valued billion after receiving an investment from saudi telecom. it would represent a 10% stake in the dubai-based company. estimated $1 billion, what does this mean for the wider fundraising plans for this company. >> we heard earlier on in the year that careem was looking for $500 million to fund the future growth strategy of the company. the first round could be closing any day now. announcement was the anchor investment. it is valuing careem at one

billion dollars, we have two companies in the middle east joining the hallowed chambers of being unicorns, tech stocks valued at $1 billion or more, which has been unheard of in the region which has been piggybacking off these tech startups treated elsewhere in the world. ,aidi: matthew, is this a trend a sign we will see more funding going into middle eastern tech companies developing these desert unicorns as you call them? exactly. this really has been the year where we have seen a lot more money starting to flood towards the tech startups in the region, and the two big cheerleaders of that are the chairman who has been creating his own e-commerce venture and has been creating his own technology investments, and he is able to marshall a lot of money behind him because of his reputation and the success

he has had in the past creating the dubai-based property company. saudi arabia's sovereign wealth seems to bereally picking technology as one of the horses it will back and trying to diversify the saudi economy away from oil, and it seems to be putting a lot of money towards technology in achieving that. some ofou have seen these tech valuations for so-called unicorns reach nosebleed levels, how far are we from sing that kind of thing happen in the middle east, where i am assuming that the situation is still pretty nascent. >> exactly. a lot of these companies are still very early days. is onlyy like careem formed in 2012, so it has been a very rapid growth. another e-commerce venture in the middle east, which is very similar to an amazon business model, that has also been valued

at $1 billion. , thee now starting to see transition is now starting to occur where we see investors start to really question these businesses and question whether they can transform the big user base they have got into profits, and that has always been the stumbling block for these startups. it is easy to go out and build a huge user base and attract customers, but can you monetize them? i think we will see that process start to happen over the next year or so as some of the tech companies in the middle east are to think more about listing on public markets and getting scrutiny from investors. haidi: thank you so much for that. matthew martin for us. are thep, investors most optimistic on oilsands since the slump began to and half years ago. we will find out, next. this is bloomberg. ♪

haidi: welcome back. you are watching bloomberg. i'm haidi lun in hong kong. yousef: i am yousef gamal el-din. let's get a quick check of the business flash headlines. airbus has suffered another blow to its troubled program with iran dropping the a380 dropping the plane. the revised contract will no longer include the super jumbo. airbus has cut production to one play in a month by 2018 as demand has lindor. emirates is the only carry to give the aircraft a major role in its fleet. haidi: job cuts across several after years ofd aggressive expansion. sources told bloomberg the layoffs started in the past few weeks and will affect between 1000-3000 people across units including i.t., human resources, and sales. etihad staffing has tripled over

the past eight years and employs 20,000 people. still: saudi arabia may decide to list aramco in new york despite the new u.s. up law that allows victims of the 9/11 attacks to sue the kingdom. reality is considering venues for what could be one of the biggest share sales ever. the decision is still "a work in progress." they dismissed speculation that saudi arabia would reduce u.s. investment because of the law. the trend in u.s. treasuries has been different. haidi: brent crude extending gains above $55 a barrel. let's get over to sydney. great to have you. are the most optimistic when it comes to crude sense the slump began. they are giving opec some doubt they will follow through. >> good morning.

they certainly are giving opec a reasonably long i guess view that they are going to implement, and that is something of opec has never done, but there is one difference between the decision that opec came to and the decision we have seen through the years from opec, and that is primarily that this time around they brought in some outside countries to actually help implement, and we do think by doing that that they will now probably take a much greater step towards actually complying with the strategy of cutting production. is it a catch 22 situation? upn you get prices that go high enough, you will see the return of u.s. shale into the market. look, yes, there's no doubt that will be one of the headwinds we see in 2017, and that is primarily why we kept our brent forecast for 2017

somewhat muted between about $65 and $77 a barrel for 2017. that is because we would expect to see, and we saw it marginally with the brent price hovering around the $53 or 54 dollar level. we saw in crude production just cominglevel. we saw in crude production just coming up to where it is now. if we see the price dry through beyond into this 60's, then we will see the return of u.s. crude, probably 9 million barrels, and that will keep a headwind, and hence we are not seeing oil prices in the 80's or the 90's. yousef: let's widen out the conversation to some other key commodities. gold in focus, dropping for six straight weeks, the worst streak in a year off the back of what we are seeing in terms of interest rate expectations. bottom? reached the

is this a buying opportunity? >> in the near term, you would have to expect the gold price to go a little lower, primarily because we are still going through as you said the interest rate expectation. we have had to bank quarter percent rises out of the fed, and were expecting further rises next year on the back of expectations of inflation being higher. we have to see if those inflation numbers are higher, and we have to see if the fed welows through, so we think will see those u.s. rates higher. that will put the u.s. dollar on a higher footing. it will be seen as a high interest rate currency, and that in the near term will do poorly for gold prices. longer term, we expect inflation may play in a return for the favor, and that we think will happen in the latter

part of 2017. had a lot ofve speculative euphoria off the back of donald trump's victory driving commodity prices. when it comes to iron ore, you are back to two week lows. concerns about stockpiles here. what is your outlook for the metal? a every time we have seen rally in the iron ore price, we do see the story of stock piles coming to the four. look, we are comfortable with 62% iron ore. anything less than that, then there may be some problems, and we do think that is what is constituted in most of the stock n 62%. less tha we think it will be able to sustain somewhere around the 80-85 price range. about,i want to talk

widen out to this metals rally, this metals party being driven by futures in china. given the two things we are expecting out of 2017, which is continuing to weaken and a property market clamped down on, the third being greater fiscal spending. do expect to see that metals rally continue? look, there is no doubt we will probably and 2017 going to see price pressures from two countries, not just china. borne thehina has commodity price pressure for some time. if we see donald trump implement israel u.s. infrastructure in 2017, and he implements the programming gets it started in 2017, then 3.5 trillion in u.s. spending has to be done to do that will

be welcome news for the commodities sector. china, if it does the same thing, then boy, we haven't had for a long time two price pressure points on commodities. we could see quite a good year for commodities. yousef: how optimistic and confident are you that u.s. will oniver or trump will deliver the promise for fiscal stimulus? trillion, that$5 is an estimate i have not heard before. is that sufficient to make a dent in global commodities market. you need more than that if you compare what we are seeing in terms of growth and investment in china. as i certainly think that said those two pressure points we can see building up here it yes, there are certain headwinds that will face donald trump in terms of getting that program implemented. firstly, how will he pay for it. we'll they lifted the debt ceiling to bring it in?

3.5 he moved towards a trillion dollar program or will it be implemented in stages. there are a lot of headwinds that face that implementation, but we do think that he has to do it primarily because if we see a stronger u.s. dollar, that economy, domestic u.s. and the one way to revive a domestic economy is to get infrastructure up and running, and we think he will concentrate on that, and that will bode well for commodities and we can't see any way around for the u.s.. yousef: always a pleasure having you on the so. come on the program, india's cash gambit may have been in vain. we will look at what some are calling a classic --. we will get you the very latest. that is next. this is bloomberg. ♪

haidi: welcome back.

you are watching bloomberg. i am haidi lun in hong kong. i am yousef gamal el-din. the thinking was this would be short-term pain for long-term gain. we have more from them by. yielded any ofn the expected results so far? do they have anything to show for it? >> no, it does not. to stated objective was squeeze out fake currency and put an end to terror funding. other aspect was to put an end or clamped down on untaxed, unaccounted wealth called black money. evidence to show these objectives have been met.

and that, the de-monetization has disrupted the life of the common man and affected businesses across the board. , most are forecast scaling down for the full financial year to 7.4%. reveals contraction in the services sector. that is not all. car sales are down to the slowest pace and nine months. job lossesbeen reported across informal sectors. very little evidence to say this actually worked, but we will have to wait to watch. haidi: how is narendra modi managing the messaging, if you will? >> not very well i'm afraid. modiiday, prime minister addressed the parliamentary party, defending the idea of

de-monetization and said this is stopped on the to a larger goal of combating corruption, indicating the government may have a few more moves up its sleeve that may be announced later. clearly you are seeing the government ship the goal posts. first, this was about fake currency and black money. now the government is talking about how this is a move towards a cashless economy that will empower the poor. in the recent parliament, you did see the opposition and the government trading charges against each other. done ins no business this session of parliament and nobody was willing to blink on the de-monetization. the action shifts to the next session of parliament in january with the budget session where the budget will be presented on february 1. also, watch out what this would st, the goods and

services tax which may inevitably be delayed. haidi: thank you so much for that. that doesn't for this edition of "blommberg markets: middle east" . yousef:

isaustralia's treasury sticking to a projected return to budget surplus by 2021. armed with a slightly narrower deficit, scott morrison hopes his update will hold off a credit ratings downgrade. moody's says the situation is persistent with australia's aaa rating. china's property market cooled again in november amid renewed curves to deflate a potential housing bubble. home prices gained in 55 of 70 cities tracked by the government. prices dropped in 11 cities. four remained unchanged.