tv Bloomberg Markets Middle East Bloomberg August 3, 2016 12:00am-1:01am EDT
isthe president of iran trying to fight against corruption. >> it is 8:00 here. around noon and here in hong kong. welcome to bloomberg markets. >> let me pick it up from here. we have a lot happening with equity markets. we have seen selloffs and let me put context on this for you. this is a function that you can easily pull up. equities are down at a four-week low and you see disappointment with a stimulus package that came out and concerns about global growth and there is anxiety with the oil front that entered the market. let's take a closer look at what
is happening with oil. market.ed the bear here is the contrary in view. from merrill lynch to citigroup, they do not think the bear market has much to go. take a look at this. it would tend to agree with this. you are seeing the smallest premiums and months to protect against the drop in prices. this has narrowed since early worstnd it indicates the of this could be over. >> the numbers are coming to us and we have results for the second quarter to see how this all compares to estimates. miss at this
point. billionexpecting $4.523 and this is a significant decline from the same time last year. take a look at other numbers and there getting this in second half of 2016 and this has been a key take away and we are obviously trying to address some of the concerns from investors. buyback missed the , according to analysts, withve been checking in 4.5 billion and we are getting some details through and investors will be looking to see how this bank plans to deal with
the fallout from the bread say -- the brexit scenario. 60% of the profits here and we are looking out for the details with the expansion plans and the greater chinese market with how they managed to gain more market shares and we will be looking to the details of the with $219ng exercises tolion and all of this going getting a return on equity's to above 10%. there are more details coming is more or less meeting the expectations for this metric. we are going to keep watching pretaxumbers and this
profit is a miss. let's check in with headlines around the world. >> good morning. are accusing each other of using toxic gas on civilians. they say people are being treated after a chemical attack. insurgentsys that were i responsible. there are concerns of breathing difficulties and the symptoms were connected to chlorine gas. say this was acquired on the open market.
mitsubishi motors has been slammed for a corporate culture and it goes back years. investigationt found systemic failure and it led to cheating. tore is a reluctance technology that the ambition target could not be met. >> it was a lack of communication between management and those in the field about what company they wanted to build, lacking the vision and we believe this could have been a reason for the scandal. mitsubishiblem for and the company. hondo was a standout and there are concerns the market may have peaked. gm, ford, and
toyota. powered byews is journalists and analysts. this is bloomberg. >> the turkish president has defended his government's to andg of the failed said that the westside it with his opponents and at the turkish economy is resilient. message he is trying to get across here. >> it was a defined speech and it was named at international investors. he spent most of his time lashing out at west and said they were supporting organizers of the failed troop attempt and that it was orchestrated from
abroad. theas been demanding u.s.-based cleric. it further anger the president and he did address the investors and said that turkey was stable and that the free market economy was safe and will not be interrupted. lira trading is holding steady and there does seem to the a hefty price tag on the coup attempt and the overall impact that it had. how much is the government saying that it cost the economy? >> according to the local media, attempt will be 100 billion u.s. dollars and
bloomberg spoke to the turkish development manager and they were fairly upbeat and said that the turkish economy still get 4.5% and growth was still achievable. financial markets are stabilizing over the last week and, since the failed coup attempt, it has dropped more than -- >> thank you for the up date. let's get you back -- thank you for the up date -- the update. let's get you back to hsbc. >> that is right. ec saying that profits fell in the second quarter and it missed analysts forecasts in the first place. they announced a share buyback will have been before the end of
the year. from a yearhey'll earlier and they said in a compared that it was to the average estimates. let's get you more details. volatility with the brexit vote and the prospects of a recession. to cut costs and redeployed $150 billion in asia. assets.l reduce we have more details when it comes to this. they have managed to further cut
billion and hsbc said that there was some concern in there remains some concern that they will not be able to continue with this love it progressive dividend. removedingly, they have a timetable for getting equities and they have been aiming for about 10% and this is a developing story. the topline number is a decline weakofit and it is a very picture, when it comes to the lenders. number waiting for that and it is a date myths here. time -- it is a
big miss her. -- here. we want to get the reactions to the story. david, bleak picture and we have been down and we have had a hit of a recovery and another blowback. things reopened here in the session. yen a look at the dollar and this is your level. it brings you very close to the this isit yesterday and the decline right here. it is 16,000 and you see the
move that we are seeing in the last 10 minutes or so. and a look at this graphic this shows you this retracement right at the crucial support and you run the function and it gets you all the way back to the start. there is a rise in the dollar and we had back to where we are at the 100 level. i and thes below 90 equities look like this with damage over two days. and you can have a look at the philippines with a sharp selloff. it ironic we started here and we
coming in and this is a slight rise from june. this division appears to be deteriorating. let's get some more perspective on this with the senior economist. there is strength in the numbers and it is a surprise, in light of other data. >> our takeaway was that it increases inwe saw output and growth. headlinesook at the and compared to other emerging markets, it shows a steady pace .f growth isyou can see that egypt
here and you have the overall trend appearing to be decelerating. and we arethe trend going to have to see the rest of the second half of the year to determine if it is just a blip. it is a useful reality check on the sentiment of the region. if you have spent any time in this region, you know sentiment to be volatile and extreme, at times. when good times are good, we are on top of the world stop would bad times are bad, it seems to go in the opposite direction. weob is to show people that are still seeing growth. it is more moderate. it is growth that is not that
bad. this pmi? oilmuch of this is the of -- is the oil component? >> it is a good question. do withy, anything to , that ishe industry not captured in these figures. it is the fiscal consolidation that we have seen and it is pronounced and not captured in this. it is a survey done by the market and the same around the world. those with thede oil price and the recent fall, how does that play in to the
numbers? see,e main story that we trend,ough there is a there is oil prices and fiscal consolidation with the liquidity that the nonoil private sector has held better than others anticipated. obviously, that is not the case what we sawrket and in july was export order growth. and i is a big concern would say that we are looking at the end women growth in the survey shows this. the job creation is a broader topic that should be looked at
in the region. everything is fundamentally a demand with population growth and the labor markets are you action. elastic.he -- our -- the labor markets are elastic. peoplet of euphoria and piling back in the egyptian stock market. what are you seeing in the numbers right now. >> i have been covering numbers its 2010 and i think this imf agreement would be the most positive thing we have seen in a long time. it is not just the cash that matters. it is the policy and the reform because this agreement will force them to pursue this and that is the big issue. if you think that, there was an agreement on the table and the
government decided to reverse the decision and hike the taxes. that sent a negative signal. we will consider the size of the program and what conditions are met and whether or not the administration is able to stick to any stringent policy forms. they are not in the business of lending countries money. from our perspective, this makes the prospects more likely. >> always a pleasure to have you on the program will stop thank you for stopping by. chances for more privatization in iran. the president says it will help with corruption. the details are next.
markets. the president says he is in favor of more privatization to fight corruption. bloomberg has been following this. first, the oil contract and now more talk of privatization. is the government needs the quiddity and needs to create jobs. the other thing is that there is a need to increase transparency for investment and some of the sectors of the economy are controlled by entities that are and,d to the government the shares of this company, individuals, tanks, it will help
create more reliable partners for foreign investors. >> it sounds interesting. in the past, privatization was attempted under previous presidency. economy wase controlled by the government. it started about a decade ago. back then, iran was under sanctions and the private sector is very small. things are different, with the comfort -- with the country opening up and there is more of a chance with regional investors. ,> how has investment evolved since sanctions have been lifted? >> you look at the figures and
this is the highest level we have seen in over a decade. it is below government -- ctations and >> what you watching with iran in the next few weeks? >> there pay and hide salaries paid to heads of state and companies in run and it has made the public very angry about the level of injustice. the government had promised to be morerruption and transparent. >> fascinating. thank you for coming on. fort and the imf and talks a bailout.
to $2.5and we're up billion. $3.6 billion. short of the estimates. and they willwer resume trading in under half an hour. areasia-pacific stocks concerned with global growth. with the fiscal stimulus package failing to fire up investors, the yield is strengthening to 100 territory. declines halted the ahead of inventories. >> the turkish president has defended of his handling of a failed to. he says markets will not be hampered by the state of emergency civil servants were
removed. i am rishaad salamat. here.is 5:30 good morning to you. let's talk about the banking sector. we are getting numbers from the french bank and the second is upr net profit numbers stable.ooks pretty the focus is on the french banking story and with the low interest rates are doing to the bread and butter and european programming. down andnk profits are that will remain a focus for us
at the top of the next hour. we are looking at how much money they managed to make from the sale and what the low interest rate environment is doing to banking. we have had a focus on banking and you have been covering the numbers and the complex work that is involved in doing a trade deal with the u.k. and the rest of the eu. all of this will be a continued focus. andill look at the numbers this is a really weak performance with the stress test failing around the italian investors. >> there is trepidation with that health of european lenders. aret from that, what else
you watching? speaking to the ceo in waiting on countdown and how is france coping with the low interest rates and the return on equities. we have heard from the man who took over as the new ceo from now to 2020. there is a lot to talk to the andgement there about that we will be joining francine a little later with the net profit being down. this was better than the estimates. testdid well on the stress . ceoks are down and the joins us later and the ceo of
rio tinto will be on the programming. this is the number two mining company. how are the commodity prices taking a toll on the businesses. >> egyptian officials are toding talks in cairo finance the economic program. they have had a tumultuous relationship with the previous loan falling through. what do we expect with reforms? do we have a clear idea? >> we asked a bunch of economists with the major steps are that they think egypt will take and there is the expectation of a devaluation. spread withs you a
the rates and the currency front is an area where we could see the reforms. bank seese central reserves are entering the safety area, it will deliver a flexible exchange rate regime and it will allow them to move within a trading band. there are other measures promised and parliament is discussing this and expecting it to pass. there are other measures being discussed. >> the government is looking to have an agreement at the end of the talks. what will the execution look like? >> there is a time with executive board approval and
there is uncertainty and we have two staff twice with level agreements and egypt with true the request. meet the egypt commitments for the reforms and you have the executive board review and egypt says that it helps they will get to billion dollars within two months of the executive board approval. this is a program that will be sequenced and it is not clear what is next. you expect parliament to execute this within the fiscal year and a deputy finance minister told start capitalill gains tax and these are some of
the measures that will be implemented. >> the egyptian stocks are up. it is good to have you on the program. let's check in on the headlines from around the world. military says that north korea fired ballistic missiles today. another landed in the city. it was 250 kilometers from a japanese city. thnewsomes after chung yang was angered by a missile the sense -- missile defense system by the end of next year. a series of exercises in the east china sea are heightening the tensions with the neighbors. they said that the discussions are aimed at at improving the speed of modern warfare. ruling thater a
invalidated the claim to most of the south china sea. singapore has warned the united states that credibility is on the line over the transpacific partnership. they say the reputation and asia could be an risk -- at risk. >> this has yet to be ratified by most of them. been a welcoming of the decision to focus more on the pacific. >> it is good for the region and it benefits the united states tremendously. it guarantees stability in asia pacific, which would otherwise be a troubled part of the world. more than 120 and countries. i am only got 10 with bloomberg.
emirates say arab they are close to unlocking a bond sale worth $27 million. claudia, what is the latest with the deadlock? >> it has been under discussion for a long time. it seems like there is light at the end of the tunnel and we have been told that the law has been finalized by the end of the year. there is a remaining article under discussion and it is about debt ceilings and debt servicing. >> why is the debt so important? .his is the issue >> i could not hear you. >> why is the credit rating important? >> we do not have one. we are not issuing debt and
cannot issue any. we have seen some emirates issue debt and they have issued billions of dollars. ,he second largest arab economy they are having the credit and they could issue it. this lawll waiting for . >> there is a's red between the five-year spreads. does this have something to do with pursuing and pushing for the law to bring similar territory? >> these economies are different and abu dhabi has a lot of oil
and they had to diversify away and they took on a lot of debt. we saw the crisis they had in 2009 when they were not able to is whyhe debt and that this spread has always been there and been pronounced. >> thank you for that perspective. let's cross over. you what is coming up. fiscal results with financial consulting. stay tuned. this is bloomberg.
the acquisition brings in businesses and it is a stronger and more competitive company. favorable report second-quarter earnings on monday. you look at them out a year to they are down 20% or thereabouts. israeli lawmakers disgusted -- discussed trading on a monday through friday basis, instead of saturday through thursday. exchange to turn the into a profit entity to make it more profitable for those seeking to raise capital. is --
and evaluation is being carried havend sources say they the advisory role at around 40 $200t will be valued at million. we will get to what is going on with bitcoin. we will have a look at what is going on in the market. there is fear of a global and we see this enter is noarkets and there tailwind coming through. we had a headwinds coming through. it is up 1.6% in hong kong will get underway again. stimulus ban is not
currying favor with investors. that is the fallback we are seeing and these are both higher with the market at 16 of 1%. bitcoin is tumbling after one of the exchanges said they had been hacked with $65 million stolen from them. how serious is this? and, in pretty large significance,rice there is 120,000 coins stolen. at this point, the exchange says they have shut down all of the exchange trading.
>> what do we know about how this happened? >> it does not engender much confidence. >> the company is still looking into how the hackers were able to do this. they use at multi-signature security method and all the corn -- all the points were stored. biglly, exchanges store the points offline. bitcoins offline. in terms of how they moved the coins, they are working with law agencies toand track where the coins have been moved. repeato not want another
and what is the company doing about this? been communicating in the company is shutting down working with law enforcement agencies and updating us with the latest findings. >> thank you for that look at bitcoin and the fall and the region. we have the results from hsbc they came out and we will have an in-depth look at them.
announced the shares buyback at the end of the year with the founder and the president of the asian bank. first of all, what is your take of the figures? well, i think the market was guided correctly and there are no surprises. to the fallributed in the income and it is not surprising. this is the most important aspect in this. the number of potential unknown factors that could have cropped up but didn't, basically, home andets are not doing well china is not doing well on the trading front and that also
contributed to the softer performance. basis, theystrategy have enough ammunition to continue doing what they are today,nd, as announced toc is doing a share buyback do what they want to achieve. >> you talk about strategic or action and it is going in the right way and it remains clear. at the same time, they point to uncertainties with equities and, is that abandonment going to do well with the lack of uncertainty? should they not have had returns on the equity positions? many bankers say that this was a poisonous challenge. >> that is correct. bank gave recent equity
guidance and the reasons why book value is still depressed around the world, it is not just a single bank. it has to do with more than this. it is the markets and it provides guidance and it is not the right focus. strengthening the balance sheets and reducing to keep costs down, these are important priorities for the next two years. i tend to look at this from a two-year perspective, rather than a half year performance basis and i think that we are in uncharted waters at the moment. ec, asia,e of a just
and retail banking, please will balance out, basically. operations in over 70 countries, what do the numbers tell you about the broader health of the global banks? difference between banks with global in the business models and the income streams that they derive from the global business. swiss banks do more and the other banks, the anglo-saxon banks, they tend to do more with investment banking and finance. moment.an area for that as long as this bank has several legs to stand on, we need to see how they are doing on all
fronts. the problem with the banks and the franchises in the trouble with a strong retail presence and it is a competitive market with the retail business there and it is highly unexposed, in this way. are limitede opportunities. it is not traditional transactional basis -- business. going forward, they will need to redefine what they mean with the investment banking and, if you barclays, it has changed the model to focus on the anglo-saxon investment banking
front. this is an untested strategy with high risk and potential for high reward. >> the latest numbers in mind, what is the biggest risk for the road ahead? >> the one thing i was looking charge onital regulatory requirements. it did not play out. it is transparent what they are putting up with regulatory issues they raise and other stand anda taking a they are more exposed to china. softened and that cost size did not show up. >> the asian banker and looking at a just ec for the second
profitsbc quarterly plummets 45%. the bank contends with slowing growth in china and a prospect of a recession in the u.k. deputy ceo tells bloomberg the french bank is feeling the brunt of the brexit. >> the risks are still very high. the brexit decision from the british population creates additional uncertainty in the alignment. anna: stock losses in asia as crude remains bew