tv Bloomberg Markets Middle East Bloomberg May 25, 2016 12:00am-1:01am EDT
♪ manus: turkey enjoys a world topping rally for stocks and the currency as the administration completes a cabinet shuffle. rishaad: debt relief, the eurozone approving and saying the bailout program is firmly back on track. manus: apple faces a tricky passage to india as it chases some of the billion smartphone
buyeyers expected in the coming years. rishaad: and these early ridesharing apps are raising millions of dollars on the day. it makes a strategic investment into uber. it has gone 8 a.m. across the emirates. 5:00 a.m. in london. good morning, i am manus cranny in dubai. it has just gone midday. welcome to "bloomberg markets middle east." are talking about the price of oil. volatility is telling us something different. take a look at this. what you have is the price of wti. and ratcheting higher getting closer to 50. where breaking toward the next opec meeting but look at volatility. artillery is dropping like a stone. the question is this. we have the nearest range of races in six months. volatility is up 30, back at the
start of the year as you can see in february when we were in the eye of the global club storm, oil was at 28 but volatility was at the highest since february 2008. call before the storm? we saw him and tories drop and we get more data later today. this volatility may rise. rishaad: ahead of that maybe volatility will be on the way out. we had the norwegian oil saying that the oil market may be rebalancing supply and demand, maybe equalizing but it means nothing really because fundamentals have changed elsewhere as well. he is also saying it does not mean that norway is planning or hoping for prices to go back to where they were. that is the oil market. what is going on with the equity almost, mom by trading
20 minutes. this is a day when we see that warm glow from wall street. market is up. and just about two hours to go before the opening in the emirates. a lot of the buying coming online at 10 a.m. take a look at what happens in doha. this was a situation where the market was down point two of 1%. bahrain,bia, kuwait, let's look at what happened. it was just about flat. up by .8 of 1%. manus: let's see how they react. those were great closes. let's check out the headlines. tom mackenzie is here with us. tom cole and saudi arabia is finalizing plans for bonds but by the time it is ready you may have to pay more to attract attention. when the kingdom underwrites a
bond issue it was a other middle eastern states and companies that have raised $15 billion this year. and meeting investors this week about a possible $5 billion sale. abu dhabi had a similar transaction last month. raising $1.2 billion from a seven-year sale. sources say they received more than 2.5 billion in bids. it was intended to [indiscernible] 2017 group.ing being told that the second-largest lender has plans to 10 -- cut 10% of its workforce. it will eliminate 1000 positions in the first 12 months of the five-year program and 100 jobs each year thereafter. the lender has discussed the
proposal with the bank of israel which must have its approval. union must also agree. amnesty international says almost half of the 28 you member countries have ignored a ban on arms sales to egypt. saying 13 nations including the u k, france, and italy remain among egypt's main suppliers of weapons and equipment. the eu agreed to halt arms sales after security forces killed demonstrators protesting against the military's removal of president mohammed morsi. amnesty said there -- the situation is even worse. is numbered news. i am tom mackenzie. finance ministers have approved the recent reform efforts and will disburse $11.5 billion. the great bailout program is
fully back on track. to not justorward the successful completion of the first review but also of the intention of the imf and management to go to the board. we think it is an important in the long greek program, an important moment for all of us. since last summer, where we had a major crisis of confidence between us, that confidence has begun to recover. ishaad: bloomberg news [indiscernible] what was agreed at this meeting? two headlines. good disbursement of the bailout aid which is being sent to greece to see it through payments they have to make during the summer. also a pulmonary agreement on
debt relief. certainly nothing in that medium term or long term relief. just enough details to keep the imf on board and that is really crucial for the agreement for many of the hardline nations like germany and the netherlands. will [indiscernible] for the greek economy. >> things have settled down. they do not have to worry about repayment that it has to make to the european central bank in july. caneans the prime minister come down those within his party who are saying you are giving too much away to the europeans and not getting anything in return. it just means things can get back to normal. it does not mean that things are over completely. there is still a lot to be thrashed out particularly later this year and then next year on
what the debt relief could mean. in the short-term things are calming down. rishaad: you just mentioned it, it does not mean the crisis is over with. what happens next? median say it is the term debt relief that has to be sorted out. aftereans what happens 2018. that is when the bailout program is officially ending. they have to decide are they going to links of maturity or perioe giving grace extend theds or payments -- or extend the payments or go with what germany wants and how the any debt relief at all. somewhere down the line there is a clash between the imf and germany and that is the big row we have to look out for in the months to come. bloomberghat is our
politics editor in brussels. the turkish lira has had a rather heavy lift. the relief is there. i have inverted it for you. but look at this. there's confidence in the change in the equity market and currency market and in the bond markets. this is all to do with the shift in the overnight lending rates. that was cut by 50 basis points. and jumping by point -- 3.5%. he survived a cabinet reshuffle. and the salsa survivor of the team, credited with driving turkey's air of rapid growth.
here we go. .he last man standing good news? >> it is certainly good news. the central bank will remain under political pressure. economic policy will be made by erdogan's advisors. will be [indiscernible] rather bullish economic policies. foolish economic policies. manus: perhaps markets will begin to dig a little bit
deeper. talk to me about the risks. with the presidential referendum which is set to come. >> i think the big elephant in the room is terror. both pkk and isis have put turkey in their crosshairs. communityting of the of the deputies, pkk will escalate terror. they killed six people yesterday. isis will escalate terror. very poor season. that may sit uneasy with investors. this is not over by any means. the first objective of the
interim government is to enact legislation to allow the president to be affiliated with his party. unfortunately yesterday the nationalist party said it will not support such an amendment. we really have to choices. either it they will cohabitate goil 2019 or he is going to to snap elections. before the end of the year turkey will have another set of earlier elections which is going to be destabilizing for the economy and investor sentiment. manus: you are right. that is a big warning sign in terms of the tourism, etc.. i want to get to the merkel- erdogan relationship. he has her head in a vice-like grip. correct.certainly
he did a huge favor to merkel by stepping -- stopping the flow of syrian refugees. the numbers are sharply down. i think down by 90%. america has somewhat recovered. and merkel will grant this waiver which is turkey's keeping syrian refugees at home. unfortunately she does not have the power to rule over the european parliament which has been antagonized wide turkey's rude comments. the european parliament will not ratify the waiver. merkel has told him there is no chance for a waiver by the end of june. policee would lose controls and syrian refugees
heidi: also seven-week closing lows. we saw the msci asia-pacific is gaining. this is what we are seeing. very strong coming through here. and these energy names bouncing off this $50 potential seen to hit $50 a barrel. -- petra china is up and sinopec rounding up the top three. we are seeing a very strong appetite when it comes to financials and banks. the rate hike coming through as early as next month. and strong gains coming through from sydney. chinese markets are up when it comes to the a shares.
surging the most in six weeks on the back of those -- that rally we saw in the refiners. weakerped along by that yen. manus: thank you. let's turn our attention to the health care sector. uae-basede first company to list on the london stock exchange. it is on the acquisition hunt. joining us is the deputy ceo. great to have you with me this morning. let's talk first of all for those who are tuning in, how big is this market, how big can it get? i am looking at numbers here up to $70 billion by 2018. how much of that are you going to own, do you agree with that number? see is excessive
the growth that has happened in the entire country. it is a predominantly [indiscernible] the market08 when has expanded. we believe the number that we -- most probably will be the right number considering the pharmaceutical industry is growing. the sector.sh we are seeing 30% of the country. we believe the numbers could be achievable. like 2: something billion people are likely to enter the middle classes in the asian pacific in the next two years. they will be looking at better health care and they will be
looking at better education. health care being your focus, where do you look to elsewhere out of the emirates and the gulf? the uae is the first country in the region who went into the mandatory issuance and that will expand. it will expand the health care network. the people especially coming from emerging markets who for generations would not have entered into the health care sector for their treatment or use over-the-counter prescriptions are going to enter into the health care sector mainly after they are covered. 80% being expatriates, we saw a change happen in the past five years. we believe the same trend should happen in the other countries especially as government health
care -- the government will reduce the health care spending and the population will be more aware of the health care systems . andre focusing on expanding looking closely into other emerging markets. other asia,cc and let's tie the down. saudi arabia is opening up. what are the plans there? will you see a big opportunity as it opens up, what are the plans for saudi? guest: it is one of the most haveesting markets, we seen the lowest levels of oil. the government will try not to spend more on the health care sector. at the same time the population is becoming older and the more healtheeds care systems. there is a big score for health care to enter into the market and we see areas where we can contribute. manus: is the saudi administration in discussions
about ppp? guest: what i believe as a provider is the licensing program. what we have seen in the last year is that the speed at which they're giving the licenses. i have been a witness for the past two years on this entire licensing program. i can see the clear change in the way in which the administration is looking on licensing. there are a lot of specific areas where we can invest. theave moved away from simple multispecialty hospital provider. manus: we will pick up how you are going to specialize and take this fwad. on health careme in the region. stay with us. ♪
manus: he is still here in the hot seat. you said the gcc is where you are going to focus so i want to know, are you going to do a deal, what sizes the deal going to be and where it -- what is it going to be in? guest: on the back of the [indiscernible] anthave created two import verticals. we believe these two verticals the same time is very much needed in the market. these two would be taken in saudi arabia in the next three to six months. manus: you will do a deal in those verticals. isst: it will be -- it difficult for me to guide it. i have a lot of restrictions. dominantn say is the administration has been
supportive and we're seeing huge market expectations considering we are the market leaders in the region. manus: there will be in one of those verticals. let's talk about hospitals and long-term care. diabetes is a huge issue here. really picking up due to the lifestyle disorders. is genetics. it the curate of and less on the preventive part. there are all those aspects so we created a new hospital by .pending $200 million
it is a dedicated facility for six super specialized needs. you're getting more specialized. you mentioned abu dhabi. i want to go to a slightly wider question. are your margins compressing, what is going on as a result of the oil turbulence? oil willbelieve continue to hold the same margins but over time you know [indiscernible] and we will have made up our strategies to reduce costs margins. we should expect it going forward over the next three to five years. manus: make sure you announce your deal here on bloomberg
3.5%.mping the central bank reducing its lending rate. it was the best performing major world currency. new loans.won they approved the recent reform efforts. seeing athens to the next month. the great a lot program is fully back on track. funders claimed -- they were kicked out of singapore. it will be dissolved. of grosshe worst case
misconduct that it has ever seen. 12:30 p.m. here. is 8:30 a.m. you downare counting to the start of the european trading day. it will be a feature of our conversation over the next few hours. we have an agreement among the finance ministers at the eurozone coming through from brussels. way to athens. the imf had to back down a little bit in terms of the timing of any debt restructuring for the greek economy. the imf said they wanted to see an agreement that they had to agree to put that at the end of the bailout program. european politics
getting in the way. see you -- this is six years, he was trying to increase capital. -- the stock has under performed. and the stock itself down 76%. a couple of things on the reader here in europe. there is still that moment of confidence or delusion, what do you think? anna: buyers are saying that they are confident that they will overcome all the hurdles that monsanto season the way, regulation and financing risks.
the other hurdle is the price. this would have created the number one seed and crop chemicals company. monsanto has left the door open and they have had their own challenges so they still -- they see some value area they look forward to further toxin people suggesting that will set the stage. we will see if we get one. but the questions remain here over the price. and around regulation. this will be 30% of the global crop input business and will face some serious regulatory scrutiny. this is a political hot potato.
if you want more you can go to daybreak and get the latest. i will see you under 20 minutes. rishaad: getting you back to one of our top stories. broke 24omething that hours ago. inc.atest seeing a swiss ordered closed in singapore. >> last time singapore cancel the liking lessons was in 1984. those were troubles related to deals. it was the first time that they closed as a bank because of money laundering accusations. they have slept people on the
wrist that that sends a strong message that singapore is serious about it. singapore has been on the white list of the oecd for long time. that iting a message does not mean they will be lacks about money laundering. or any sort of breach of international regulations. >> could this possibly get in the way of the web management business? -- is this a good news story or does it weaken their position? >> that is a good question. and they is number two place.ng for the first seriously ton very
the point that they do not allow any banks that have operations the, when they are audited auditors have to be from singapore so that the banking secrecy is guaranteed. i am sure that is what people who are in the wealth management business are looking at but at the same time, in this new world, wealth management does not mean that banks and -- it does not mean that you will keep withholding information from international regulators. the case here. singapore is sending a clear message that wealth management is welcome. they are investing in the business and want to overcome hong kong and they want to be the switzerland of asia. that does not mean that they will not allow fraud and money laundering. i do not think it helps -- hurts. banking secrecy is still very strong. punishmentere is a here. there any winners coming out
of all of this? >> i think people who work in compliance will be the biggest winners. one of the winners that no one is talking about is the brazilian bank which is seen as the biggest investment right -- bank in brazil. they had to sell bsi in a fire underecause their ceo was investigation for corruption charges. he has not been indicted. but they face a run on their assets and they have to sell the bank. the ownerst that would be facing corruption investigation into countries. and just by unloading this bank now efg is holding the bag.
rishaad: joining us from singapore. let's get up to speed with the stories that are making headlines around the world. >> a day after lifting a ban on arms sales president obama has criticized hanoi for making progress on human rights. while the u.s. expressed concern john kerry said the fact the meeting happened it all is remarkably significant. french police and prosecutors have rated googles offices in paris. they're looking at whether the failed to declare revenue by booking them through ireland where company taxes lower. they're calling on google to pay back taxes. google released a statement
saying it complies with french law and is cooperating with investors. -- investigators. the daughter of a hong kong publisher believed to be abducted has helped -- ask to help when his release. daughter told the congressional committee that she spoke to him on the phone months ago and still has no idea where he is. he was missing in october. he appeared on chinese state tv. this is bloomberg news. i am tom mackenzie. let's return to a tech story. been getting a little bit of cash, a helping hand from volkswagen as it expands in europe and new york.
talk to us about this fundraising. show, that over stamina and's is a foregone conclusion? how do you read it? there shows that perhaps will be more than one winner in this space. in terms of the fundraising bloomberg reported that they for $400he lookout million in financing and evaluation of 2 billion. -- $2 million. strategicom a investor. not a bad one to have. it is one that has had a few issues as of late. they said this is a terrific boost and brings the total fundraising to $520 million. manus: they still have a long way to go. up, haven't catch they?
>> yeah, look. there is a lot of investing. we have seen lyft raising half a billion from gm. in certain places it is a leader in russia and over here in israel but it is chock and cheese in terms of sizes. there is a valuation around $2 billion. and they're aiming for half a billion. uber has more than doubled that. so very different in terms of size but particular jurisdictions, also competing in new york city. uber seems to be leading the pack but in certain areas it will not have the whole route to itself. manus: it certainly will not.
rishaad: you are back with "bloomberg markets middle east." when iran and global powers signed the deal they did not figure it would trigger billions in investment. the answer is not much. iran is frustrated and is calling for concessions including access to dollar denominated trade. the investigation into the -- no close to revealing what happened. and andicate smoke
compartment but give no idea why. that led to unspecified problems the windows onnd the copilot side. all 66 people are believed dead in the disaster. and the state has lifted a mandatory evacuation allowing thousands of workers to return. was severely damaged. they cut oil production by a million barrels a day. a quick market check when we are seeing advancing stocks. haidi.s todi: we are looking forward those comments from janet yellen.
risk appetite coming back in and crude is up. we are seeing this in a very positive session particularly when it comes to that session. is the bigup and it miners and the oil refiners are driving these gains. the crest down but 4.5%. and also trailing at that rally. 25ewhere the nikkei to benefiting from that weaker yen 1.7 of 1%. investors are looking in to the long term. those gainsdriving by 6.5%. in terms of the chinese market we're looking at strong gains.
and surging the most in six weeks. petro china up by 4.5 percent and sinopec is up. and we are seeing the kospi a lot ofand we had foreign investors getting out of korean bonds. mynghai a bit of weakness of point 3%. there is a lot of doubt about what we are saying. economists saying where -- we are seeing a short recovery. given that volume we are seeing a return of risk appetite especially when it comes to these chinese stocks. manus: thank you.
let's talk about dubai. and announcing plans to boost tourism including waterfront homes, floating restaurants all here in the heart of the city. the development would cost $2.7 million -- 270 million dollars. let's take a look at this story. coming to the market. uni talk -- you and i talked about prices under pressure. do we need this? >> there are two schools of thought. dubai needs to create pretty much everything that has in terms of offerings to keep it fresh. and we do not have greenery like other countries.
we do not have the huge mountains. we only have the beach and we have to create everything else from the world's largest tower and the biggest ferris will in the world. right now being built on a man-made island. they have to do it all. there seem to be too many ongoing projects. we also have them all of the world project and countless others. andhe mall of the world countless others. >> they are building the hotel rooms to come with it. they want to widen the appeal of dubai and make sure that dubai is open for people of middle income. it is geared up toward the higher income people and now they want to widen that field to bring more terrorists especially came the tourism market down and from other countries. manus: what i found interesting
is there is more of balance rather than residential. my question is who is going to buy this? -- this wasnot already built. this is bringing the water into the city center. you have the district ready and bill. what they are doing is creating retail for people to walk around and spaces to park your boat. manus: as if everyone comes in to dubai [indiscernible] great to get you singing the song for dubai and where to park my boat.
rishaad: apple's plans to chase the spice of the billion smartphone sales in india may have had a bit of a setback. is having to commit to sourcing parts locally. what does this mean for apple's program there? going to be a problem. the board has said you have to source 30% of components locally. this is heart of the stated government policy. clear.ernment has been
born investors need to be sourcing 30% locally from domestic manufacturers. problem that apple faces because most of the components are sourced in china. all that will cost a lot of money. for what apple was asking was a waiver. that.ejected but one caveat. that has not been ratified by the finance ministry. if it wants to set up shop. deniedapple was permission to sell refurbished iphones. are they getting the strategy right in india, they have challenges in china, they need spott the indian strategy
on, don't they? >> you're right. yet gotten india right. the cheapest iphone is $399. the cheapest smartphone is $135 comese bulk of the demand from the lower end of the market. that is not a market where apple is operating in. this is the fastest-growing market in the world and apple top not feature among the 10 smartphone players in india. apple has a brand-new management team. you're seeing very aggressive marketing and advertising. the plants that have been put in place. lessonolling out but the
right here is that you have to indiaing an investment in to get your plans right. you have to get a customized plan. this cannot be a global model that will be forced on india. government officials [indiscernible] it is a while away for them to get the distribution retailing right. for now they have to go with the franchising model for selling the product. .ishaad: great talking to you joining us with the latest on apple's designs on india. the big challenge. it is slightly miss cued. they're trying to leverage what will be one of the biggest mobile markets in the world.