tv Bloomberg Markets Middle East Bloomberg June 6, 2016 12:00am-1:01am EDT
>> betting on a devaluation since march. often we should talk more . the chinese president calls for better communication with united states to build trust and develop respect. here.8:00 good morning. i am manus cranny. >> in hong kong, welcome to bloomberg markets. i think that we have to kick off though we with currencies and the dollar and i want to take you to the heart of the middle east with the turkish current account deficit and the drop in the lira, the rise of the dollar by
5%. the lira isstopping the locals and foreign exchange. they are buying it and it could be a lot worse. a bloomberg estimate out dollarf 3.1 against the and i should tell you that the deposits in turkey, 44 percent are oversee and the currencies are where the alpha is. overseas and the currency is where the alpha is. of 38,000the report jobs created in may. that is something that will put off a rate hike across the globe right now, with everybody digesting that and we are seeing
how the chinese currency has then under pressure. added witht being of repoy and the worth s, here is a check of the moment. it is flat. the hang seng flirted with .66%. of is theforget that this first day of robert don kicking kicking in andn trading. separat lack of capital risk and we expect this to remain sideways until early july.
this is the situation at the last close and we have the market with nearly 1%. we are looking at cairo and tel aviv. it is down flat there for israeli shares. manus: let's see what else is going on. we are here with the other headlines. >> hello. the oil exporter has raise prices to asia and the united states. by .335reased it cents. grade is at the highs level for asia since 2014. that was before the current markup share strategy. in recent memory.
toolkit inng the recent weeks. they have cracked down on the speculations in the first international bond sales. activityeration of the increases the urgency to shore up the finances. the prime minister has moved to boost in the national tour. more business in india am -- ising falling to the low and more are saying they will leave the european union.
that 45% ofound voters would choose to leave and 41% said they would choose to remain. brexer had favor for the it. some investors are betting that the remain camp will prevail. i am heidi. thank you very much. let's get back to the top story. the worst is over. exporters,ther oil there is capital cuts and the meantightening measures that they could afford a more and hisconsolidation excellency said that the growth
targets, the price of oil, and the challenges for the uae. challenge.r it was a -- last year, it was a challenge and it was dependent on energy. yes. there was a slowdown and we expect the economy to pick up this year. thate in this neighborhood is not far from -- down almost 80%. manus: the oil prices are down. let's take that. there is a discussion that you top the spending last year and
you are projected to cut the spending this year. there are many out there who are saying that you are cutting more aggressively. looking at an excess the oil sector was in the neighborhood of 5%. this year, they picked up the close todescribed it the budget, trying to find ways 2% ande growth rate of this is good.
we think that this is good. oil.u say they need $60 ofthere in the neighborhood $58. >> can you narrow that down? that,is good and i think from this point of view -- >> this is the agenda. where does this take us, in terms of the deficit for this year? gdp.'s is saying 14% of >> the economy has been are lookingand we this with the economy growing is 50% and the plan is
and the policy is working the past few years and they have done a great job. >> the chairman of the department of economic development. joining me is tim fox, the chief economist. this point we passed and should we pull back? >> the question about the cuts is a challenging one and you are seeing recovery coming through
it on thell see whole. what we are showing is performing well and there are cannds for optimism and it withstand the cuts in spending and they are going to be a challenge through the rest of the year. how diversified is it? sector and it is related to the manufacturing sector and they may get some boost out of the oil production that you are seeing. to have the strategy
maintain the shares and it is a positive influence with overall affect in it has the sectors. the oil sector is one of the dominant sectors and there are others with the high production of oil. >> you have the purchasing managers index for the reason -- for the region. this is add into that scenario? with thea nice chart uptick of the pmi. and theyk it picks up show a solid pace of growth and it also shows the output was 59.9strong and it rose to
and it illustrates 59.9 with the growth. reading goes to benefits ofith the the non-oil sector and it is running pretty strongly. think it will be with the economy, as a whole. lot more tove a come. we will go through the details. this is tim, the chief economist. there is more to come. in are the markets looking reaction to the fed? a little bit of doom and gloom. >> certainly, we have seen a negative position and that is with the yen at a one-month high. a disappointing payroll number
on friday and that will get back to the fed. we will see a rate hike, only 27%. they also show that there could be a brexit. we have that sentiment coming through. lunch break.on the there is weakness from the casinos today. there have been downgrades and we have seen good movement coming through in the property space. it is flat on the shanghai composite across asia and they had managed to support the index. and that isralia driven by movement coming through and we have seen the and thethe appetite equities are generally lower across the region.
main market for the oil in the region and they see the demand increase and they are interested in market share and competitiveness. they see the profit margins high enough that it will allow for the increase and they will keep their customers at a fair price. this spells, creeping prices. is this about taking advantage of market share? >> if you are a seller of anything, that is good news. i do not think it is so much squeezing the market share. this was census estimate and they looked at the demand and how much the product demanded and they may engage the idea of
keep thes and customers coming back in the there is a tone and it follows this release. gulf producershe and what do they do? >> they will follow suit, generally. tone of howthe people see the demand in the markets and the other producers will want to be competitive. they do not want to undersell the crude. the refiners will buy the crude and they want to make sure they get as good of a price as they can. we will see a trend continue
where there is an increase of differentials and a cut to europe. there is less growth and there is the increase to the united they have robust that is in demand there. >> thank you for the latest on the pricing. stay with us. and, every day, we talk about oil on the show. the rebalancing is coming. it is more quick than anticipated would you agree? what is the impact?
and it willake time take time to get to and stay at the 60 level. you may see times of weakness and we are emphasizing a gradual improvement, rather than a straight line up and i expect and it be more volatile is only a few months ago that we and therel at this will be concerns about the supplies coming from the united this will be coming back. and is atted about pmi
underpinning concerns the oil prices and legit issues. issues.udget >> we know about the gulf cooperation council and the saudi currency is the goto devaluation that in the region. it is definitely the second player on the scene and the second currency you look at. >> is this everybody who has been banned? were saw this and they out theng to stamp bets. manus: great reporting on these stories here. coming up, it will be a quiet
returning this year with the trade going faster than expected. the growth will accelerate next year. he says that the worst is over and that the budget is strong and projects include the guggenheim museum. there are plans to cut it further this year with the oil prices declining. currency -- there is increased speculation that the exchange rate may be moved. in hong kong and singapore, we
have rishaad. >> i am manus cranny. -- i am anna edwards. talk about the programming and the great deal on the debates. referendum and we had the overnight shaking of the they remainkets and on 41%. the increase is of the momentum there is the cautious polls at the moment and we know that will mean people going away on resultsand we know the
trying to persuade the electorate and this is coming polling andest exit it is not a conclusive result yet. the democratic party has done better and this is according to the exit polling and the local governments have become fertile we had the alternative for george land -- for deutsche land doing well. cities., they have big the biggest cities, in fact. across various parts of europe, we are confronted with a move
towards the anti-establishment party and we have the brexit abate rumbling and it is not u.k. story. manus: i will see you shortly. frisky for monday. we will be back to you in 25 minutes. >> something we can look forward to. we have that mixed start and a and we're looking n inactive 30 days. we are looking at the
effect and you sometimes stocks big pops in the and it will be interesting to see if we get the same this time around. we still have a federal reserve meeting and it does not seem likely to continue. could go ine it either direct and and, in theory, affect the household stocks for a quiet time in the markets. >> thank you. manus: we still have tim fox mean forwhat does this it is tearing away
possibly have the impact in the environment with the services and you could see a number of overturned inxit the region and, long-term, we marketsthink about the and the volatility with the policy and the capital. >> we heard from tracy and the -- le what impact does this have on the gulf? n slows activity and we have been building up to this.
there is the understanding of the slowing down and, in this there is strong outputs builduprs growth with a toexpectations in relations ramadan. we know it will bring slower activity across the region. it can also exhibit stronger growth around that occasion. >> i will bring a little bit of on hownversation in important this is. cautiously optimistic. we would like this to stay. -- >> so, that relationship
is important. issue is huge global the rating that we have and we this blowout.ring what to you make of this? situation seen this policymakersnal will remain. >> you say they will remain? >> we think that there is little benefit in this shift in the demand and there may be an advantage with the fiscal point of view. pegginge is that the
works better for the region, at the moment. >> thank you for joining us this morning. as the head of research and a chief economist. at raising markets with theroduction fell oil price down. and mohammed just completed his first year in office. how will this be summed up? challenging and he ticket ofd on a forying on economic growth
some years prior and it did not happen because of the decline in the oil prices and the oil aoduction is down by 30% to three decade low and it is having an impact on the fiscal situation. currency peg is below 200 and it is creating new stresses and strength. in talking about the gains the insurgency and we had the problems in the delta that reemerge and impact production again.
>> they are talking about the they suggest they can get this away. how much do they have to give away? performancer, the has been positive and the bar when cost averaging. if you like, the news that they would do this emerged before the payroll numbers of the u.s. and i expect they were thinking that this was a good time and the urgency may not be so pronounced. then again, they have this to declared theyave -- $5bout five dollars
the oil has recovered. week, there was the policy of unlimited output and they rally the supported optimism and he said that he received no negative comments with sanctions leveled. the prices may come under a renewed pressure. >> the sovereign wealth fund has agreed to buy the ages where tower and this will be the biggest office transaction-based with a building on the market since last year. land failed to go said that theyy could get around 3 billion for it. >> the iraqi army has secured
parts of falluja. support of:h the asian. falluja was a last stronghold. they now control less than half north and west. dealer is closer tolde ipo and they bloomberg that the paperwork is ise and all that remains revenue from a completed project on the resort and polo fields. they have bought hotels and they are considering further acquisitions. the most profitable division remains motors.
6% united arab emirates have of the oil reserves and we have more now from my exclusive conversation with the chairman. i asked him if he was disappointed that there was not a freeze agreed to at opec last weekend. >> i would rather have them decide on looking at freezing the oil production and i will tell you that the surpluses are coming to an end and this is a that could play a general, the oil out that itinting
seen track and we want to january. escapes the bloomberg chair. believe the oil price is it at an equilibrium and depends on the economic startup and china is recovering and the rickean it -- the european -- the european economy is recovering. there is demand that you want to see and supply a shrinking. will put the oil supplies between 55 and 60.
and's they are expressing desires for peaceful cooperation tones fromatory chinese state media. take a look at what the president has to say. tochina and the u.s. have andease the cooperation this should be a stage for the inclusive conversation. >> those comments come with and we haveensions the u.s. defense secretary
saying that china risks building a wall of isolation with the andh china seas policies ony have made progress and climate change with the economic issues. greater pushing they want to and and market removed economy status given to us. >> is in at dialogue in beijing. thee talked about all of projects. this is the latest update.
i will not be surprised if i see this before i get in. i will tell you that it is going well and we have the lights on. there is the tourism sector. guggenheim and the hotels. eight -- it was i the neighborhood of 13% and would assume it is 15%-18% and sustainable. be a major attraction and there are other areas that we really enjoyed.
anna: speculation of a rate hike june or july is crushed. japanese stocks fall. yellen speaks later today. sterling slumps to a three-week low with a new poll showing more britons favoring an eu exit. jack lew says china must be more adept at policy communication at the countries meet for talks. we are live in beijing. ♪ welcome to "countdown