tv Bloomberg Markets Middle East Bloomberg April 24, 2017 12:00am-1:01am EDT
economy could we speak to the minister responsible for it isting visitors good 8:00 across the emirates, 5:00 in london. this is bloomberg markets middle east. let's get you an update in terms of what is moving. some very interesting lives. the market has arguably been prepped for. we are seeing a little bit of that release rally. i am pulling this out as we speak. that is how we like to operate. some of the major class is broken down all the way. you can see the euro up 1%. some of those gains. commodities were under pressure. there are some bright spots.
commodities 3.1%. the weaker u.s. dollar is feeding into this. >> a quick check on what is going on in the markets. 225, up.i the yen also getting a bout of euro bashing. looking at the shanghai composite, of course. this time it is more speculation .bout a leverage crackdown there could be restrictions put on changing. people are looking to get out of this market. well. to the upside, as and look att along
what is going on elsewhere. that is the u.s. 10 year yield. cold at the biggest fall within three months. we have recovered somewhat from that. 0.33%.k of that is from the following the election of the establishment parties not included in the final round of the french election. headlines. -- and outline of its tax plan this week. the specifics may not be ready until june. president trump tyler nase twitter follows that a tax reduction will be announced on wednesday. mick mulvaney says they will lay out the principles but it needed the plan will not be ready for a couple of months.
the ecb may be ready to move to exit faster than expected. no policy change is expected. survey responders say that mario draghi will provide guidance june. at the beginning of march he said it wasn't on the agenda. the strengthening economy season .hanging strategy malaysia in abu dhabi and the greater sediment related to billions of dollars funneled out of 1mbd. they will pay $2.5 million to abu dhabi. malaysia and abu dhabi have been in dispute over the responsibility allegedly stolen the pboc governor has a doctor to reassure intense that china's expected growth target is within reach in that financial risks are under control.
on the imf website, an official said they would maintain neutral monetary policies. we are confident of anything any threat. news 24 hours a day powered by more than 2600 journalists and analysts, this is bloomberg. >> we have france voting for change with establishment parties defeated. the final counts as emmanuel 23.8% of thelmost vote. his rival is marine le pen, taking 21.5%. surveys are suggesting that emmanuel macron will win. i would like to say that i realize with my responsibility is and i also know what it means
. i will carry on with optimism, enthusiasm, and faith in europe. the time has come to free our of americane politicians and policies. those who want to dictate our destiny. let's have a look the market implications. [speaking simultaneously] the clear risk markets today was a continuation of the theme from the weekend. don't heals coming up a little bit as well. in linee confirmation with what polls are expecting, we are seeing a surge this morning.
mina last few hours, we have seen a little bit of enthusiasm for short-term profit taking. that weall theme is have gotten past another geopolitical risk. risk seems to be something behind us. the start of the year, that was one of the biggest threats. >> you are writing about collapsing global property prices. i think that is important. we have been so focused on the french election. over nine, it is important to note how much commodity prices .ave come although prices have fallen sharply despite the fact that opec may extend the deal for
supply cuts. although prices are coming off hard. some prices are still falling heavily. iron ore is trading a little bit poorly today. it might actually be the key for sentiment. if that can finish today, maybe we bottomed out last week. that might provide a broader segment in the commodities index. at the movement, that is moving the opposite way. global bond yields cannot sustainably rise. you can follow that story on live blog. he can give commentary and analysis from experts.
applications which they will change with a more merit-based policy. top are one of the recipients of h-1b visas. >> a korean gaming company has priced its ipo at the top of its range, as much as $2.3 billion. he will be south korea's largest listing since 2010. told thatrg is being [indiscernible] a sleeping. -- is leaving. table announce the departure of eric olson. the payments were made before the french company merged in 2015. >> oil is rising in the first
time in six days with a committee backing extending supply curbs. the chairman of facts global energy was asked where oil stands at the moment and how u.s. shale production is affecting opec. optic form at an portion. there is increased. where does that pricing fundamental come from for you? opec, pricesas no would have gone lower and back down again. what opec is doing is -- opec is putting to bed.
the is defendable given compliance of opec which is more than 100% and compliance of non-opec. the russians are cutting back their commitment within the next 30 days. the demand is very strong. 1.6 billion barrels per day. with the demand growth, this is manageable. capping the oil saudi arabia will go up and down as need be. they are very committed to that price banning. there is no realistic scenario to the sink prices. there is no realistic scenario for the prices to spike.
the independent centrist emmanuel macron to go most 23.8% of the vote. pen took marine le 21.5%. analysts say that emmanuel macron will win the election. talk to us about the results and have the french are taking the outcome. >> the independent emmanuel macron, first time for office, taking a clear the last night according to the final numbers from the interior ministry. emmanuel macron, 26% of the votes and marine le pen, 21.5% of the votes. mainstreamboth parties, the republicans and the socialists, were both eliminated last night as francois fillon
came in third. the socialist party really suffering from all the discomfort we have seen from the socialist government for the last five years. as you said, the first time in modern french medical history that the establishment parties are basically out of the race. .alk us through the next steps >> after that, we are going to have a running between emmanuel on mayand marine le pen 7. we had some pulling the for the taking this scenario into account and they are all showing that emmanuel macron would probably take advantage
with approximately 60% of the vote and marine le pen probably eliminated with 40%. however, we have to remember the voting rate. fillon -- there was a lot of passion among supporters about over they would support in the next round. the republican encourages people to vote for emmanuel macron. however, jean-luc melenchon font emmanuel macron for the run-up, trusting voters to make the right choice. if we have a retention rate higher than expected, that increases the chances of marine le pen in the runoff.
>> right. >> the battle over the repayment .f 1mbd maybe ending malaysia is to be paying abu dhabi $2.5 billion. the deal will be announced later today in london. haslinda amin has the background to all of this. it is almost over? haslinda: almost. i would say almost nude here is what we know from people familiar with the matter. to will pay $2.5 billion ipic. sediment.rtial negotiations are ongoing.
there will be no legal action taken before 2020. pay usingtable proceeds from one of their units . they will issue bond obligations. the default it in 2016 so here we are, both sides coming to a deal. that announcement is due later today. a long-standing scandal, 1mbd was supposed to attract foreign investment. instead, it piled on billions of dollars in debt. >> if the hurdle is cleared, the malaysian prime minister could call an election. dissents is that he will call an early election with 1mbd
almost out of the way to path is clear. all has been even made the 1mbd scandal for two reasons, he has been building support among rural malays and purging dissenters, putting him in a strong position. there is no credible opposition. it is in disarray. nobody can agree. -- he set up a new political party but even he is struggling to win support. there will likely be an early election. >> thank you for that. reactions from the markets in view of what happened in france overnight. we are seeing different action play into market
sentiment globally. we are looking at what is moving. led by this being gain. you are still seeing a lot of weakness in the chinese market. the biggest drop since december last year. the shanghai composite is holding at those we haven't seen since january. all of these on the back of what we are from chinese regulators last week. said they will be punished without mercy to leverage trading. you have seen weakness across the market. you have seen a lot of movement coming through out of safe havens. that is the biggest drop we have seen in seven weeks. elsewhere, a lot of other commodities are well supported.
i want to show you the third column which is actually showing that weakness in the japanese yen, as well. elsewhere, you are seeing the euro up the most in one month and they jumped to a five-month i earlier in the session on the back of the news that it looked like emmanuel macron would go into the next round and potentially win the french election. you have also seen a switch coming through in the sovereign market because you saw this jump the two yen. of course, we also saw a jump coming through in opinion though. if you have a look at equity futures, it is potentially going to be a very solid session in
europe. a lot of analysts in melbourne saying this is going to be risky for a couple of weeks. >> let's get a day more on what is going on with the court price in the moment. down 0.9%.l, moving to treasuries. having a look at the u.s. 10 year. it is probably the most reactive of all of the things. we have treasuries -- we are seeing a yield on the way down -- on the way up, i should say. winning theron first round of the french election. we have seen prices going up. geopolitical issues are ranging
from this election to north well and over in syria, as . you saw that with this recent upturn. .ight let's tell you about what else is going on out there because it is a situation with a cuties. you are seeing equities moving to the upside. chief among the exceptions is shanghai -- [indiscernible] [inaudible] we will come to that. [indiscernible] you can call it a bit of a relief. let's quickly check in with what is going on with us south korean shares. kirilenko. in hong kong, a bit of weakness. this is really as we have seen -- well -- he we go -- [indiscernible]
>> it is 12:30 in hong kong. these are the first world headlines. offiba says it is spinning four companies into separate units. it will also combine some energy operations with its nuclear unit . toshiba is looking to sell off its chip business to recover from losses. tension between the arab worlds most popular country appear to be easing. egypt and saudi arabia seems to have been sealed with president riyadh's visited
including that conflict in syria. they talked on the sidelines of the arab league summit in jordan in march. iran's deputy oil minister says it deal should be signed within one month. a news agency carried the comments about-face to of the deal. the group ended waiting for develops in washington to take shape. the trump administration flight a review of you on policy. india is set to overtake germany as the fourth largest economy in five years. growth will see india rising from its current position over taking the u.k. and germany. the u.s., china, japan, india, and germany will be the largest economies in that order. the u.k. is expected to drop out this year.
news 24 hours a day powered by more than 2600 journalists and analysts. this is bloomberg. tries to climb , --of several problems be ofe here to drum to egyptian tourism. we have put all of this into perspective right here. as you can see, there is some green shoots in december. on the top panel, you have got your visitors. you are still far away from where you are. the bottom panel, you can see you have got a bit of a green spot. is this going to continue? you
keep moving from setback to setback. >> we have to look at it in the right perspective. general is a global threat. it is not actually towards egypt only. we have seen what happened in paris last week, what happened on and on in all the different capitals of the world. with the efforts that the egyptian government has put all the to offset trials that have been in place, we have got a good job. that means that we really were thatred to make sure people are comfortable coming to egypt. >> you have ambitious plans. this chart tells us where we
are. where do you want to start to the? >> i am not sure how accurate is the last quarter. the 2017 first quarter seems to be very optimistic. in terms of the number of tourists, growing in the right way. the tourism income is growing, as well. the market sources that we are diversifieds well to catch up with the desired growth. at,inister, when we look indeed, these numbers, and, if 2003, fors go back to instance. the point is, how do you make
egypt attractive it can for people to visit. tourism and we all know this. we the to make sure that people understand where we position egypt in general. egypt has been well-positioned for the people to return back the traffic in the right way. we have seen quite a lot of positive media, as well. we have seen a lot of celebrities coming to egypt. that we need to grow all the different aspects of the economy but risen is one of such an important element on the egyptian economy. >> it is one of the cradles of
civilization, of course -- the legendary ones. what about -- of course -- going beyond that -- [indiscernible] -- the shooting down of that aircraft by militants? >> we would love to see the russia coming back very soon but we are also depending on the other markets and when we need to know is you need to grow the different markets to offset the markets that actually that have gone down. >> how is the tourism pie spread? is at the pyramids and the sphinx and cairo? ? >> iimpeached or is in think the mix of the cultural tourism, your ability to grow tourism.
we are seeing this growing. we are seeing this growing in the last quarter. this is an indication that people are coming back. this is also an indication that threat of the security, the global threat. then the past five years beach tourism was always performing slightly better than you are cultural tour is because .f security issues >> egyptian tourism is a diverse product. it basically depends on seasonality. therefore, when you talk about diversity of markets, we need to concentrate on where can we build up the volume again to where we want to see the volume
growing. limited ton is not the target goals. our ambition is to go more in more the business into the different market sectors. >> egypt has been popular with russia and the u.k. .t was a budget destination is there a shift to come are you opening up to new strategies yeah come >> we are certainly see you a change in that direction. is growing as a much larger areas destination than it was before. sectorseing other growing. you need to understand that you need to build tourism one step at a time.
we are seeing that basically we cannot depend on the resorts only. on culture.epend we also need to diversify. we are looking at adventures. ecotourism.ng at as we growing this season, i think you will see how these are going to produce little by little. >> when we just had a little bit of information coming up here is saying that 2010 annual income from tourism was $12 billion down to about $6 billion now. how much of that is currency >> you are right on this analysis. the $6 billion was short of the
number of tourists coming to egypt. growing,see his number you are going to build back the tourism revenue. will be ablehat we to catch up in 2017 to bring back the income to where it used to be before. -- you have, with to try and get them to spend as much money as possible. do you try to attract high-end said, we >> as i just are seeing this in cairo. we are seeing this, the egyptian product are also the luxurious products. you see luxurious product in sharm el-sheikh. start selling, to
it as well. so, egypt will see a recovery as a result of the increase in spending. >> you did not paint down any countries. he were trying to improve egypt as a destination. list?is on your priority >> actually number one country that we see a growing is germany . it is a market source that the german people know the egyptian product. they are excited about it. we see them on the diversified product market. they go to the culture. they go to the result. another market is the middle east in general. that is also how the spending. both terms of the german helping
to increase the length of stay in the saudi's increasing the inrage spending, i think both sides, we're building that momentum. markets are showing a volume, as. i think we are trying to hit in every direction ticket to return to larry used to be. >> it is not as much asia and the united states. .> we have growth in china we have growth in the japanese market. there is a lot of potential and i must say we are very optimistic betsy and business back. we are seeing is a rise of populist and around the world and restrictions on air travel. then must concern you that we are in a world where the flow of .ravel is no longer guaranteed
>> this is not limited to the egyptian product. this is a worldwide issue whereby you must understand that tourism is under attack by general unrest conditions. work globally as the world is to work together to make sure that we recover the worldwide the global tourism placets own proper because tourism is part of the human rights as well. it is the right to move. it is the right to enjoy. these things we have to offer to the entire world. >> thank you very much for joining us on the program. luck with some of those ambitious plans. mineace is on to
>> you are back with bloomberg markets middle east. yousef gamal el-din in dubai. .et's talk about saudi arabia some fiscal amendments to the transformation program. also, major stakes in saudi banks are up for sale but they are struggling to find international buyers. let's take a look with our finance reporter. we have a huge economic transformation, the aramco ipo coming up. truly, that should be adding up to a buying signal. right. is exactly
they are trying to bring in foreign investment. in the short term, there is a lot of pain in the local economy making the retail banks and local banks going through a difficult time. valuations have been depressed. banks have been performing a lot of bad loans. things that he aramco ipo is going into international investment banks which can afford it. they can run banks without deploying billions of dollars of capital as if you are purchasing a stake in a local bank. >> the point being, what happens in terms of valuation? what we are seeing in the moment is that because of all of the problems going on in the
local economy, valuations have been depressed. in october, banks were trading on the stock market only just above the price to book value. banks only trading at the same level as their assets. they were very cheap by historical comparisons. ifthe moment, the story is you are going to do a deal, now is a good time to do it. grr have put up the function to give an overview of the banking sector relative to other sectors. on the tadawul, some significant losses strength retail in defense. who are likely buyers? >> the problem that the international banks that would perhaps be more natural acquirers is that they are struggling with problems
back home. they are struggling with regulation. the international banks are not going to be the acquirers at this time. we are probably going to see a local selection -- solution coming through. they will try to give a bit more stability. nobody wants shareholders are desperate to get out. indeed. you very much, space may be the final frontier. this region has announced and her tongue commodities on earth. the uae and saudi arabia are looking to leverage that advantage and space. our energy correspondent joins us from singapore. what we see here, these countries already have space
programs on earth. abu dhabi has invested in virgin galactic. there is a consultant here who sees the middle east as a really prime enter in investing in private companies that are going to be sending satellites to probe the asteroid belt for heavy metals and eventually water which has the low look at economy evolves people are saying is going to be the oil of space. look kind of resources are people trying to extract through space mining? >> a couple of things. at first, most people are platinumt things like which can be plentiful on some asteroids. ice tolong run, mining
not into water so that you do not have to spend extensive fuel shooting space shuttles that the space with earth water. finding that on the moon is going to be the biggest goal. >> this is all fanciful stuff. how do energy giants like the ones in saudi arabia play a role in developing resources in our space? >> that is a great question. one of the interesting things about this is it sound like science fiction but it is not far off. before theyears first satellite is launched to probe these asteroids. in eight years, a satellite that is field by solar panels and water and putting a grappling
hook onto parts of small asteroids in bringing them to earth or in the work that economy where you have 3-d printers converting metals into space shuttle extensions or into pieces of equipment that can be used. in some cases, none of it would be brought back to earth. >> thank you very much indeed. [inaudible] ie feature on the bloomberg would like to bring to your attention is our interactive television function. that is what it looks like. not able to watch as life the you can dive into many obscurities of bloomberg functions and you can become part of the conversation. this is for bloomberg subscribers. coming up, what is at stake
>> this is bloomberg markets middle east. i'm rishaad salamat in hong kong. >> and i'm yousef gamal el-din in dubai. let's put our attention towards europe where there is only one story. anna edwards joins us from bloomberg europe. what a genetic night. -- dramatic nice. >> politics is the story. in parise live throughout our programming today to bring you the latest reaction to the election results. manual macron goes up against -- emmanuel macron goes up against
marine le pen. we will all be focusing on that. emmanuel macron now a political independent against the national front marine le pen. and manual macron is said to be winning -- emmanuel macron is said to be winning in polling. this is very significant is what marine le pen stands for. no republicans and socialists making through to the second half of the first time in contemporary french history. >> what have we got here as well? and one day is this election in the u.k. >> it seems as if the conservative party increasing the gap against their rivals. it looks as if the vote in early june could be the conservative party set to lose.
the latest polling suggests they have more than 20 points lead. conservatives are looking to broaden support. we heard a lot of it how they might want to clamp down on the amount of money that utility companies are allowed to charge customers for energy supply. that was actually something in a rival party manifesto. they questions over taxes, as well. -- they questions over taxes, as well. >> counting down to the market opening in the emirates. we have never earnings trickling in. we will be keeping an eye on real estate developers purchasing a 2.1 million square meter plot. also on the tadawul, saudi arabia mining have announced plans to develop that kingdoms biggest project in mecca.