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tv   Bloomberg Markets Middle East  Bloomberg  August 25, 2016 12:00am-1:01am EDT

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♪ holds a week long low. hurting china's energy giants. federal china profits fell by 98%. endures a wintry reception. >> > thailand's top energy compy looks for more opportunities
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abroad including a gas deal with qatar. >> it is 8:00 a.m. across the emirates. >> we're watching japanese shares swing between gains and losses. and itt janet yellen looks like the geopolitical risk and the of versions are back on if you take a look at the treasury market. yousef: absolutely. what has been happening as we have been getting mixed signals from the u.s. economy. we've had several members of defense come out and speak. have again given a bit of a confusing fixture. this tells us the story of a market that is increasingly getting tired of the mixed
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signals coming out of the fed. we are focusing on what janet yellen can show as per of the way forward. you are looking at the trading range. this is stuck in the narrowest range in a decade. since february 2006, it shows you the market is complacent, waiting for additional indicators. can it underscore it has the credibility the market wants it to have and gives it the direction investors are looking for? we are also seeing the probability for a september rate hike go up in the last -- next two weeks. ofinteresting event ahead friday. angie: credibility on the fed and central banks around the world. the market, play in mum by is trading for 20 minutes now, seeing gains ahead of 1%.
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we are seeing it pullback in tokyo as the speech by federal reserve chair janet yellen is highly anticipated. over in the middle east, it is --t under 200 -- two weeks let's take a look at the last close. $46 level. we are seeing interesting gains in qatar on a potential deal. checking in on the first word headlines around the world. let's take you to shery ahn. >> helicopter money will be japan's next big experiment and it couldn' could happen next month. measures, that
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combined with a stronger bank of appealo contemplate his to be bp really rejected. >> they will engage in a helicopter money with great care and great reluctance. if they do it to carefully it will have the desired effect. that is the dilemma they are facing. >> regulators are investigating a dutch trading firm in connection with a stock in the futures dealing. inquiriesreceived related to futures trading. china has been cracking down on high-speed traders. one of the world's longest running insurgencies is over after columbia reached a deal with the sparse rebels.
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it left many displays. it legitimizes their political wing allowing it to contest upcoming elections. columbia says the peace dividends will add a full percentage point to growth. joe biden has endured a wintry reception in turkey as he tries to smooth relations with a vital nato ally. officials met him at the airport. said turkey wasted time. global news 24 hours a day powered by 2600 journalists and analysts in 120 countries. this is bloomberg. angie: thank you. we will take a closer look at turkey's relations with western and nato allies.
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relations are strained over the migrant issue and with washington over the extradition bloombergt's bring in bureau chief. joe biden strip comes at a tough trip comes at a tough time. has he achieved anything here? guest: it is difficult to say. it started with a diplomatic snub when they sent to low ranking officials to greet him at the airport including the deputy mayor. it ended with a program in the newspaper declaring it a waste of turkey's time. the main issue here is the presence of a man who turkey blames for this coup that happened a month ago. turkey wants some sort of executive order to get him extradited to the u.s..
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biden spends a lot of his time saying that is not how the u.s. system works. that is not go well in turkey where he is presumed guilty. yousef: a major offensive into syria. signs of a more active role in the fight against the islamic state. what are the implications of this? guest: the implications are quite serious. the u.s. has been pushing turkey for a long time to get more active in the fight against the islamic state. we saw the turkish military in a matter of hours went and and with the syrian army behind them they took the city that have been held by the islamic state for more than three years. that is the significant development. there are underlying tensions as well with their long-time strategic objective, contradicting those of the u.s..
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a want to contain the expansion of the syrian kurdish fighters. yousef: the markets took a hit yesterday. financials taking quite a knock down 2.5%. concerns about the refunding cost. how are investors going to react for geopolitical risks as we're coming back on domestic political risks? >> if there is one thing we have seen in the past year, they are remarkably resilient. .he stock market did fall it was down by 1.6%. the leader was actually up and it continues to rise against the dollar. isertain degree of politics priced in in turkey.
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the bigger concern has turned to the outlook for the federal reserve's interest rates. yousef: we believe it there. hows take a closer look at a regional and global issues are impacting. he joins us from abu dhabi global markets. let's get to the meat of the matter if you will. how are you advocating assets at the moment? >> good morning. currently it is a long summer for regional markets. as we remain positive on the long-term prospects of the region, we are being cautious and we are increasingly allocating to companies with have the cash flow's and high-yield. an yield continues to be
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appeal for us. we believe these days it is easier to look for pokémon than to look for yields. where we can see yields we try and invest there. >> i have looked at the details of your allocations. you have some exposure in saudi arabia. in recent months, the enthusiasm has been limited. the capital inflows have not lived up to expectations. what keeps you interested in when is the turnaround going to come back into the conversation? so, our exposure is driven by valuation of fixed stocks. we are not too much of a top-down investor. we look at the usual companies
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and the evaluations and we decide to go in there. it is based on our valuations and how businesses cope with the recent challenges. advocation. driving to answer in the short-term we do see earnings headwinds. i don't say this goal consolidation being implemented will cause a hindrance to long-term growth. i think it will be a positive for long-term growth. we are trying to find out something which benefits for these reforms in the long run and looking into these companies. yousef: you are sticking around. plenty to get through. let's get some insight on how the markets are faring.
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>> one of our big stories the past 20 or so minutes has been what is going to happen in shanghai. this is how the shanghai composite fared. it is down 1%. you are looking at the decline here. property shares, the small caps. we are just learning it's a bloomberg exclusive here, shanghai is looking to clamp down further on surging property prices. we could be looking at perspectives for builders and prospectus for homebuyers. highest, 70% deposit if you are looking to take on a mortgage. it is a bit new.
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have a look at this graphic. it tells you no one wants to take these big risks. now at its lowest level since 2012. guys? angie: all right. thank you. later in the show australian miners that beat estimates. we will get estimates from the ceo. for middlelications east markets. this is bloomberg. ♪
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yousef: welcome back. you are watching bloomberg. angie: let's do a quick check of
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the latest business headlines. we have shares in hp tumbling. a quarterly growth forecast fell short of estimates. it tumbled in after hours. the projection struggles with demand for its products. it's lower than estimates of $.40 a share. recovery -- the worst profit for the publicly traded company. it to fall to $300 million. glencore has pledged to cut its debt and says it may resume advanced payments next year.
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and it is down more than 52%. and the biggest aluminum producer outside of china saw profit rose 10%. earnings beat estimates. alumina and climb 9% this year thanks to higher demand and tighter supply outside of china. yousef: the senior vice president for foreign investment is with us. let's continue our regional conversation. the volume is on these exchanges have been -- they have not lived up to expectations to say the least. what is going to drive these markets in terms of the way forward? what is going to be the catalyst to watch out for? opinion, it lacked short-term regional triggers.
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the qatarews of inclusion out of the way, the market is driven by internationally driven markets. speech, the indication that they get from global growth and other global events will be the primary driver for reasonable markets in the short term. over the next four or five , annual results of companies would take over. international events will be the primary driver for regional allocations as well. scarlet: looking at the u.s. dollar and the strength, what impact is that going to have on markets?
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guest: it has traditionally been on oil. pricevement in the oil does seem to have an impact on regional investor sentiment. correlationdirect that we could see having an impact on markets. the other negative of a strong and dollar is on tourism the uae. we could see some headwinds coming in from there. regional markets will be influenced by what is happening internationally. yousef: a good turn for allocations going to bank stocks. is that a temporary play or do you believe these banks have
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strong fundamentals that would make for a long-term rewarding trade? >> currently, we have a significant way to financials in general and to banks in particular. those stocks where we see robust and cash flow, yields are high, we are focused on banks which have the potential for yields. offer good value. there are a few banks in saudi we have indicated on the back of valuations. we have seen a massive correction in saudi banking stocks and we are looking at the stops there. let's get some breaking news.
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entertainment -- coming in at $2.3 billion. more than estimates. dollars.on yo we will get more details as it comes but that story is huge in asia. long-term oil contracts are becoming rare. how are international companies bucking the trend? this is bloomberg. ♪
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yousef: welcome back.
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you are watching bloomberg in dubai. international oil company says the market is oversupplied with prices falling and new long-term profits more rare. have tony jordan asking kevin vonage about that and for his forecast on oil. >> for the rest of this year we think it will be between 40, to 50. we will be planning to see the price going from 50 to $60. plan.something we should >> where does the company see growth?
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is the growth outlaw somewhat mixed? >> we are only focusing on the area where we have the ability to put the reading opened and that is basically southeast asia. a few years ago, we went to mozambique. they have a big discovery. >> they ordered 24% more.
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>> they become one of our focuses throughout the group. this year we're looking at imports at 3 million tons. currently we have one contract at 2 million tons per year. we are thinking of adding another 3 million more. at the same time we are expanding our receiving terminal capacity.
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not including the factory part. >> you have a time frame where you think you may sign additional contracts? this bype to conclude the end of the year. >> are you looking to diversify sources of supply? >> currently a lot of people have been knocking on my door. we are talking to several actors. angie: coming up, australian
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angie: it is 1:30 in tokyo. down a fifth of 1% ahead of a speech by janet yellen. the top stories on bloomberg's market middle east. aclusion into syria may close gap with coalition that have helped keep the civil war waging.
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u.s. vice president joe biden got a cold reception through washington's call to extradite a cleric turkey blames for a failed coup. losses.oil is holding if the highest in three decades. iraq will confirm opec talks but iran has not made a decision. entered on signs of an output agreement by the cartel. angie: shares are lower in hong kong after the first net income plunged. it's one to loss but paid out a dividend. it produces 70% of chinese crude output.
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both have a cautious outlook on prices paid it is 12:30 in hong kong. yousef: it is a: 30 in dubai. >> it is 5:30 in london. counting you down to the start of european trading. good morning to you. the tragic earthquake we saw , theng central italy latest death toll is 169. eric wake -- the earthquake .estroyed small mountain towns the death toll continues to andb throughout yesterday the priority is searching through the rubble for any survivors. this starts to play into the political story. the latest challenge for the minister.ime
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the broader reform agenda, he faces uphill challenges. that affect the criticism he has been facing? what can the authorities learn? all of those key questions as we continue to monitor the latest developments? we are expecting some earnings from the parent company of shopping go. angie: stop & shop in the united states. through.umbers coming numbers will get the
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for the second quarter. it operates the chains you mentioned and has a sizable business. that could be interesting. ing talking about them being solid in the second quarter pointing to improving underlying sales trends in the united states and the netherlands. this is a company that is on track given the solid update we have already seen. the combined company seems well on track to meet their full year targets. yousef: thank you. announcing a heavy for your loss, all the details in sydney, how did the numbers bring up here? guest: not very well. lookedt of $1.23 billion
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ugly on the surface but it was good news on wednesday. it was a sour adventure for them, they offloaded those assets for $1.5 billion. once the jets have paid off that is 380 u.s. to the bottom line. it could have been worse than it looks. this is their first loss since 1993. the market responding very well to this because all of the bad news is out of the way. it is on a 3-5-year journey. it is stillresult going to be a $.33 dividend. how did they do? guest: let's take a look. this is a mineral producer.
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result.t a great a net loss of $28 million. currently off a little worse than 7%. the ceo was speaking on bloomberg a while ago. he has a cyclical approach. here is what he had to say. >> we are investing in traditional growth pathways where we are investing a lot in areas of technology and innovation, developing innovative alternative project development pathways which we think are extremely valuable for us in the future. serahe acquisition of limited. this is the world's largest manganese producer. that did beat estimates.
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shares looking flat at the moment. unchanged guidance for fy 17. the big news is the first ofidend since being spun off one cents per share. angie: all right. paul allen, thanks for that. thehe line from perth is south32 ceo himself. you butn earnings for endingan earnings fall june 30 because of commodity prices. is the worst of the slump over? guest: it is a good question. if you look at our results we certainly had a negative impact at one point. i think more importantly you saw
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south 30 to perform in terms of the quality assets, reduction. we can generate cash through the cycle. when i think about where prices are, i think you know generally speaking you see the stimulus china subjected in its economy. some of that demand will waver in the third quarter. say whenhe fundamental they are changing the number of working days, capacity, we will have a long-term impact. it is a more realistic level. angie: one of the bright spots in commodities is the gain in silver. 34% this year. it is the largest contributor to the company's earnings. you have said a decision to
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not requiredfe is until the end of the decade. gain in silver prices. are you going to quicken the kenningtonre? guest: is the largest silver mine. it is an underground mine. we don't have to make a decision until 2020 about to expand the mind. it would always be an open pit. you need to get the timing right because if you start earlier to expand the you wouldn't have access to the hide grade -- high-grade soaks. silver itself is attracted to investors which is why we're seeing the increase in silver. we are working on reducing
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operating costs and increasing productivity making sure if we make a decision to expand or extend the life of the mind we're in a good decision to do that. yousef: credit squeeze has identified acquisition targets for you. the question he to you have the appetite and where would you find those opportunities -- and mark -- opportunities? guest: we have always said that m&a has opportunities. the balance sheet is even stronger. it has increased in strength. we are actually positive net cash. we have talked about m&a again through the opportunities. the most important thing we can do is grow cash flow for investors. we will always look through the value of trading through the lens of trading days because we
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need to be bigger. acquisitionsf the in the market. i find it hard to see how people are going to trade value for their investors. ceo of southis the search 32. here is more. has been finedey $2.5 million in hong kong for failures in its internal controls. the banks local security unit failed to avoid conflict of interest between 2013 and this year and failed to meet disclosure requirements related to shortselling. argan stanley agreed to review of its controls. foreign minister says the two good must create a
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atmosphere for such a meeting to happen. the g-20 comes amid tension in the east and south china seas and concerns about north korea's latest missile launch. north korea says the u.s. mainland is within a range of missiles after wednesday's testfiring. , the longest distance achieved by the north so far. that's the whole of south korea within range and parts of japan. -- i amnese experts shery ahn. this is bloomberg. yousef: saudi arabia has china's biggest oil supplier but russia is inching closer to that.
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we get you the details on those numbers. stay tuned. this is bloomberg. ♪
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yousef: let's get you some breaking numbers. let's get you those figures. revenue at 9 billion euros. yes that was for 8.9 billion euros. seeing third-quarter results on november 17. the free cash flow of 1.3 billion euros in 2016. those earnings will get you more details on those figures.
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two of the patents were invalidated in the u.s.. a multiple sclerosis coming up drug was challenged by two rivals who want to make generic versions of the drug. japan may be looking for its own oil company. japan is key to list some shares on the stock exchange when it goes public. saudi arabia will pay an official visit to japan at the end of the month where he will meet with the emperor and prime minister shinzo abe. the secretary-general may visit qatar next month. is touringl us he countries. to takeeen pushing
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action for revised prices. angie: chinese energy shares are falling after pretty awful first efforts from to oil giants. stephen engle taking a look at this. things are not so good for them. they combined 70% of china's output. they have been suffering with this downtrend. it has been a rebound but they are not necessarily forecasting to see much of a change. let's get to the results. the worst first half results for both of these companies since they were listed. 98%, they were saved from posting their first ever first-half loss by 25 billion yuan gain. that was a gain that help them
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save off the loss. they posted their first ever half-year loss at 7.7 billion yuan. they are headwinds for these companies. crude, they don't think it is going to be bullish in the second quarter. seen, theng we have forecast going forward on the international front, chinese oil exploration is high cost. they have aging steel. t has been a triple whammy for them. yes it is rallied. $47 a barrel.
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remain and still prices face headwinds. angie: thank you for that. saudi arabia has kept it spot is china's biggest oil supplier for the first seven months of the year but it is facing a challenge from russia. here is anthony dipaolo. how is rising competition in the market affecting saudi arabia and its share of imports in china? >> we have seen the share of saudi arabia in the chinese market decreasing. they remain the biggest seller into china over this seven-month. we have seen increased competition from across the hase as this crude glut pushed crude from all corners of the globe to asia where the
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biggest demand is. the real challenge for saudi arabia has been russia which has been gaining market share just as saudi arabia's has been coming down because of their additional capacity to ship into asia. it is important for saudi arabia to maintain their exports as china has been growing and jumping ahead and demand. saudi arabia has been incremental increases. they have been making field enhancements to keep that supply and that level of exports. >> saudi arabia and russia could not get more of a heavyweight if they asked for it. tot are the saudi's doing ensure they could protect if not grow that market share? >> they are trying to react more in this changing market. china is a major market. they have been affecting the
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market in the last 10 years. when china started growing in the last decade saudi arabia brought more capacity on. seenhis slope faces we've has influenced by new supply but by slowing demand in china. this year china smaller refineries, not owned by those giants we were talking about, they have been allowed to import crude on their own and that has created a new market. russia has been selling into that. the state oil giant usually sells on long-term contracts. we have seen them do one cell and they may a doubt more of that to adapt more to the changing market and be more number and move more quickly. yousef: fascinating data. us for did paulo joining some perspective on what is happening with chinese oil. staying with crude, philip crowe
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is recommending shorting crude at $50. let me bring out this chart. it began when the new ceo came in at the beginning of the year. he came in and came in at the right time. he came in right when oil bottomed out. purchased --he that is when he purchased the company. thinko said he doesn't that opec members will cut output. he thinks the fundamentals remain bearish. they would rather sell than by this. south africa's finance minister refuses to report to policing he has done nothing wrong. this is bloomberg. ♪
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angie: south africa's finance minister will not report to police. he says he did nothing wrong. he is setting up a special unit. >> i do not intend to present myself for many manipulations. i have a job to do in a specific economic environment. let me do my job. angie: let's get the latest on this from johannesburg. -- he will not
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hand himself over. what happens next? >> good morning. he is refusing to hand himself over saying he has done nothing wrong. in the implementation of that unit that was used to find certain companies, they are just wanting to question him. two other officials that were called in said they would not percent themselves to the police unit. we have yet to see what is going to happen but we do know the finance minister did make an adjustment highlighting the economy is at the forefront and that he does not anticipate the economy will grow beyond 0% this year. market the south african is getting a battering. lasts lost 4.8% in the
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three trading sessions. how will investors react to this latest move? guest: what we did see is when the finance minister released his statement last night we saw an immediate reaction furthering decline when initial reports came through. going to the dollar mark which is a psychological level people have been happy that it has been below. that was the biggest drop since december. >> they are joining us live from johannesburg. that is it for this edition of
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bloomberg markets, middle east. angie: all these top stories from london. countdown is next. ♪
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awaiting wyoming, the jackson hole symposium is kicking off as investors seek clarity from the fed amidst mixed messages from officials. ready to drop, templeton investment says helicopter money in japan could come as soon as next month. and -- citizen,as an american i would not vote for hillary clinton if you paid me. in fact, i would not vote for hillary clinton if she paid me. farrage joinsel donald trump on state a rally in mississippi, urging supporters to voga


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