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tv   Bloomberg Markets Middle East  Bloomberg  September 4, 2016 12:00am-1:01am EDT

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>> the latest lukewarm jobs numbers from the u.s. investors and optimizers on the fence intentions. -- fed's intentions. a smile and a handshake but tensions persist as obama visit china as a last time as president. vladimir putin throws his weight behind the deal to freeze oil production. but with an exception for iran. we haven't interview with the russian leader. -- have an interview with the
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russian leader. 8:00 a.m. in dubai and welcome to the program. globaldramatic end for markets off the back of several major developments. let me run you through what's happened in the last couple sessions. we had the was non-foreign payroll. global macro movers is the chart you should bring up. you can see the scale around the world on the equity front. 100 up over 2%. of course a lot of the games you are seeking, especially on the commodities front is coming from the fact that crude is catching expressed. you can see that on the bottom right -- up over 3%. 2.44 dollars per barrel.
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snapping a four-day streak of decline. the liberal bloomberg commodities index up over 1%. a lot of it getting traction from the exclusive comment we got from vladimir putin. he said he would like russia and opec to agree to a freeze, but that would exclude iran. we will break that down for you throughout the program. let's take a closer look at how u.s. markets closed. the tepid jones group was -- tepid jobs growth halted in equities slide. the s&p and the dow and nasdaq all in the green. a quick note on an interesting number, the s&p 500 has not seen a 1% move in either direction for 40 days. that is the longest streak in more than two years. in the middle east we are under two hours away from the opening of the emirate market in dubai. let's run you through how those markets closed.
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it is a mixed picture in dubai. abu dhabi gaining progress, about 1/5 of 1%. qatar down 1%. a lot of that driven by profit taking off the back of the emerging markets upgrade. we had signaled the substantial fory about 3% last week qatari stocks. keep an eye on what's happening in saudi arabia. foreign investors would relax regulation, that stock index coming under pressure off the back of lower oil prices. let's keep on the conversation with u.s. stocks data. anyone hoping for friday's nonfarm payrolls would've provided a clear signal as to what the fed will do later this month. they will have looked away disappointed. tracy, what did the lukewarm numbers tell you? >> lukewarm is exactly right. they were disappointing compared
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to expectations, but not disastrous. especially that we saw a bigger than expected revision for july data. there is a split on wall street. people are struggling to interpret what this number means for the fed and he was interest rate. economists at goldman and berkeley saying this bolsters a september hike case. city and deutsche saying that it doesn't support the move. if we look at market implied odds, we can get more of a clue. we saw the probability of a september hike. yousef: we have this chart you put together. tracy: that white line, that september hike came down to 32%. the blue line is the december hike probability. that's now at his highest level since left off last year. a hike this year are still on, it's just that we shifted from september to december.
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still, difficult to interpret expectorant that the fed said they could expect cooldown and job growth. i could put september on the table. yousef: technically the fed is supposed to focus on domestic issues. but the reality is in the globally connected financial marketplace we live in, they have to take external burials into consideration. how will be rate hike change things around the world? tracy: this gets back to the global detente idea. it's fed take the foot off the panel in order to ease pressures on emerging markets, specifically china? that is a huge debate playing out. yousef: a sensitive one as well. tracy: oh yes. they have a mandate, inflation, and that is supposed to be get. -- the problem the fed has
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it might be balancing these external interests with the west domestic economy. it doesn't want to risk overheating a u.s. domestic economy. we have comments from the fed president talking about the need for a rate hike. i think we have those if you want to listen to them. >> i have been on the early side in one need to raise rates. i am still in the camp, and have been this year. wouldk the last meeting to moven a good time rates up. the move -- the further without a rate increase, the father we are getting behind, and the greater the risks we are running. yousef: that is jeff lacker there. it's interesting we have a quite a diverse spectrum of input from
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different members. the+++ commentators. tracy: i think it underscores the certainty of u.s. monetary policy. the u.s. is certainly in a idiosyncratic position at the moment. it seems that no one quite knows how it will play out. yousef: thanks for the moment. that is tracy alloway. first word headlines from around the world, here is elliott. >> oklahoma has been struck by a five .6 magnitude earthquake. the strongest to hit the state since 2011. oil storage facilities and pipelines nearby were undamaged, but a number of waste disposal wells were shut down. oklahoma began experiencing earthquakes in 2009, the senior oil companies started using fracking to shatter rock layers to extract oil and gas. opec produced a record amount of oil last month, despite continued losses in nigeria and pushed the nations
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total to 33.6 9 million barrels a day. the surge comes ahead of informal talks later this month in algiers, where an output freeze is likely to be discussed. saudi arabia would welcome a deal, but only if oil producers would limit production. seeking reduction in order for the prices to go up. so that not just we, but within opec of course, iran and iraq are equally obliged to production. yousef: d is outgoing rbi governor -- india outgoing rbi governor called for a strong central bank. he says multiple levers of scrutiny that don't have technical understanding will only hurt the rbi decision-making. we saw the overhaul of the banks history. switching to a inflation targeting and pressuring lenders to reveal that debts.
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his successor takes over today and will have to grapple with accelerating inflation and slowing growth. global news 24 hours of eight, howard by more than the 600 journalists in more than 120 countries. -- powered by more than 2600 journalists in more than 120 countries. yousef: you can get more of that ews, plus whatn all of reports, interviews, and special content, only available online. straight arrest 4 months of export declines? we will show why the signs from korea are good. next, the lukewarm java numbers from the u.s. shed any light? jobs the lukewarm numbers from the u.s. shed any light? stay tuned, this is bloomberg. ♪
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yousef: welcome back -- you are watching "bloomberg markets: middle east." at the g-20 summit in china, concerns that economic growth was falling short of desired levels. urging countries to make use of a range of policy options to boost global growth. terry joins us live for the summit is being held. what issues are being raised? bloomberg obtained a draft of the g-20 communicate ahead of the summit. in it leaders are mentioning financial market volatility being a downside risk for growth . not to mention stability as well as fiscal policies to monetary ones. they also talk about the importance of brexit, and what implications they can have for
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local growth. the uk's theresa may arrived, and this would be a major global summit for her as prime minister. it's also worth noting that the g-20 draft communiique recognized a global issue, stating that subsidies can contribute to global excess capacity. the media center is starting to get crowded. journalists arrive together with world leaders. we have press conference is going on on the background about screen. yousef? yousef: so the global steel glut mentioned in the draft communique. what is the problem with that? shery: this is a contentious issue. that is been a lot of speculation on whether or not that would be mentioned. sources say that can still be changed. it's still a draft, but there has been a lot of tension over
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china flooding global markets with steel. lois -- u.s. lawmakers have asked president obama to bring it up at the g-20, which he did in bilateral talks with president xi jinping. he joined the progress claimant bement --joined the paris claimant agreement ahead of the g-20 summit. agreed to and obama move that forward as soon as possible. they discussed maritime tensions in the south china sea, not to mention north korea's nuclear emissions and cyber security issues. yousef: china is highlighting rising global protectionism during the summit. what are policymakers they're saying about the issue? any progress in sight? yousef, i spoke to the head of the secretary general in
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hangzhou and he mentioned this issue, saying that trade is growing at or below the rate of growth at the world economy. when it actually needs to grow at twice that rate. that is not good news. take a listen. >> trade is no longer a local motive of growth. trade is actually lagging like investment. no surprise why the world economy is a lingering at 3% even below the rate of growth precrisis. because when there is very low growth, or as there was after the crisis, negative growth, projection creeps in. we have identified and record through the g-20 that there have been 1400 acts protectionism since the crisis started. asry: that interview as well
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my talk with the head of the wto on monday. thanks. vladimir putin said he would like opec and russia to reach a deal to freeze oil supplies. the russian president was speaking in an exclusive interview with bloomberg's editor in chief. he said he also expects the dispute over iran's participation to be resolved, but that it can be resolved. pres. putin: understand that iran is starting from a very low level from well-known sections. it would be unfair to leave the tension level. -- the sanction level. i see this viewpoint of economic sense and logic, it would be
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good to find some sort of compromise. yousef: let's get more on this story with bloomberg news andrew live from moscow. what are your key takeaways from this conversation? takeaway is that this was a president talking to us who was sitting pretty. it was a two-hour interview, he was full of confidence throughout the interview when speaking about foreign relations, oil. just played to get. the domestic economy is doing quite well, despite sanctions. when he looks at europe with all of its woes and the u.s. election campaign, he's got to be thinking that his position isn't all bad. that was something throw the interview that struck me as whatever question we asked him, he came out quite confident in his replies. even sometimes striking a conciliatory and perhaps a
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diplomatic outreach with the exception of when he talked about the u.s. election, which he called "shocking." and he weighed in to the hacking scandal perhaps mischievously. us a senserew, give of how people have reacted to his comments. andrew: on japan, i talked about how he was conciliatory there. he discussed possibility of ending a long story inventory --lange standing territorial dispute. 2 hours within his comment, prime minister abe reacted to that and invited him to his prefecture home in japan. that was a quick and positive reaction. the u.s. was perhaps less thrilled. putin was talking about the
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hacking scandal and said, a, we didn't do it, and b, why should it surprise anybody that the dnc was favoring clinton? was noturprise, the dnc happy with his comments. they came out with a statement and accused him of meddling and other strong words. you mentioned the oil price reacting immediately to his comments. oil.was something noted on so it makes economic and logical sense to reach an agreement. putin has a meeting today with saudi deputy crown prince at 5:30 p.m. so we will be watching that closely to see if anything comes from it. i would say the interview is noted pretty well globally. yousef: what about the middle east? he touched on saudi arabia.
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we expect a new phase of reconciliation and engagement in this part of the world?? andrew: it is fair to say -- i think his sphere of influence in the middle east has grown. on saudi arabia, he was full of praise for the deputy crown prince mohammad bin salman, saying he was very reliable and someone he could do deals with. on iran, he said he would seek an exemption for them with opec. we will watch for that at the meeting later today. syria, he said they were close to a breakthrough with the u.s. in reaching a deal. remember the u.s. has offered a joint implementation group near iman so that the two countries can carry out airstrikes against terror groups. he said watch this space, something will come there.
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and erdogan, they are now on good terms. russia's sphere of influence is growing. yousef: still to come on the program, to the lukewarm job numbers from the west shed any shed any lights. on event rates? we will discuss that next. ♪
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yousef: traders that were looking to friday's u.s. jobs data so that the federal reserve has passed on interest rates came away as uncertain as before. ifi think ultimately monetary policy is played out, i think rates should be higher, not lower -- then fiscal spending, hopefully productive
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spending fills in some of the gap. yousef: joining us is gary dugan, chief investment offer for emirates ndb. the latest jobs data from the u.s. were you impressed? >> looking at the one-month number, came in the disappointment. taking the two together and you have something broadly aligned. i think we get too worked up against one individual figure. yousef: this irp function shows how sentiment shifted off the back of this report. we go, 42% of the probability of a hike. that's now down to 32%. how is not affected how you see the federal reserve going forward? gary: not very much at all. i think the fed should have already increased interest rates. they will before the end of the year. unfortunately the fed has told us today to watch, and that's what we do. but there are many things that go on in the economy that were
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you when interest rates are low. people are putting money into the wrong assets, bubbles are forming. something that is perhaps more concentrated on in his dialogue with the markets. piece writtens a by bloomberg intelligence on the latest data. policymakers are "eager, but not quite ready to hike interest rates. the significantly slower grace of gdp growth is a point of serious concern, and as a result, a hike could be dangerously premature." you disagree with that. gary: i disagree. looking at global data last two months, there is a surprise index that we all follow that shows that regularly across the world we see numbers above expectations. the broader global picture is stronger. the u.s. is bubbling event, but we have gdp numbers significantly better than six months ago. i think the u.s. should be responding to that better growth, and it should be increasing interest rates. yousef: how does that affect your asset allocation?
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gary: we remain quite cautious. you have to be careful about stepping into asset classes pushed higher, purely because of this bubble of liquidity. we have seen equities go to unreasonable levels. so what do we do? we have overweight bonds, more neutral equity areas, they favor europe and the emerging markets. yousef: another quote for different police, from bloomberg view, the coming storm of global financial markets is just around the corner. because of the world seeing capacity, wage depressing, labor surplus, corporate profits are shaky, the impotence of central banks, and get we are seeing country moves in the markets where you are not seeing increased demand for safe haven assets like u.s. treasuries, like a soaring dollar, like commodity prices. at the end of the day, would you agree with that? is a major correction imminent? gary: i have not as we don't
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want to live through another major disturbance of the world financial system. but the more the fed leaves interest rates at incredibly low levels, the more those bubbles form. and the only way these come down is with a loud pop and another financial crisis. yousef: what about when prices? -- oil prices? we are seeing tremendous volatility. bulls and bears really having quite the shakedown. where do you see oil moving from here? gary: we are more comparable with it because we are seeing it in a range of 40-50 dollars. rather than the lowest we saw in february-march. we still think the price will stick around these levels. i think it's cap around $50. will bethink opec sufficient to get the price higher than that. yousef: gary, we have plenty to get through. you are sticking around a bit more. could you limit output feedback on the table at opec? these are exclusively from the
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russian president. --we hear exclusively from the russian president. this is bloomberg. ♪
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♪ yousef: the top stories on "bloomberg markets: middle east" -- the u.s. and china have formally adopted the paris climate agreement, designed to cap the impact of climate change. presidents made the announcement on saturday ahead of the g-20 summit. they are also abiding by a recent ruling on south china's territorial claims in the south china sea.
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job marketigns the is cooling as the economy reaches full employment. lastlls climbed by 151,000 month, less than forecast. analysts were divided on whether it is makes the fed rate hike in september more or less likely. the uk's biggest is this lobby says there is still uncertainty for the economy, following the country's decision to leave the european union. the commissioner of british industry says it expects to see some deterioration in growth. the cost assessment comes as debates continue on how brexit might affect the u.k. economy. the manufacturing index has recovered. russian president vladimir putin sat down with bloomberg's editor-in-chief for an exclusive interview. challenged putin on his
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statement two years ago that crude fell below $80 -- that if crude fell below $80 a barrel, there will be a collapse in production. he asked whether his thinking had changed on production at all now that crude is still below $50. putin: if i said that the oil glut would end, then i was mistaken. remember i probably said that off the top of my head, but maybe i just don't remember. i said that new deposits would lead the commission to lower oil prices. strictly speaking, that's what's happened. but maybe even surprisingly [indiscernible]
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in the past years, the oil companies have had 1.5 trillion rubles. [indiscernible] ban the overall investment in energy is 3.5 trillion rubles in the past year. this is quite significant. our oil output production is increasing. reduction has declined a little, i think by about 1%. -- production has declined a little, i think by about 1%. by the way, we are the world's leader in terms of natural gas exports. in the export of liquid hydrocarbon, we also hold the leading position. we still hold first place in gas exports.
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[indiscernible] we are restructuring the situation in our domestic energy market. on the whole, it is in great shape due to arrangements with traditional partner countries. you are also going to talk to the deputy crown prince. would you still be in favor of a production freeze if the saudis want that? putin: as far as i am aware, mr. salmond is the deputy crown prince. salman is the deputy
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crown prince. we have struck up a great relationship. man who knows what he wants and knows how to achieve his goals. but at the same time, i think he is a very reliable partner with whom you can reach agreements, and can be certain those agreements will be honored. still, it was not the rejection of the idea of freezing out the level. it was our partners who at the last moment changed their to -- changed their view. but i want to repeat, our position has not changed. i will push forward our position again. this is thehat right decision for world energy, is the first thing.
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the second thing is that everyone knows -- [indiscernible] the conditions were that if exports were to be frozen, then everyone should, including iran. [indiscernible] i think that from a viewpoint of economics and logic, it would be correct to find some sort of compromise. the issue is not economic, but political. very much like to hope that every market was interested in maintaining stable energy prices. a so you would be in favor of production freeze, but giving
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iran a little bit of leeway to do what they need to do? president putin: yes. yousef: that is russian president vladimir putin straight -- speaking exclusively to bloomberg. opec pop record amounts of oil last month, despite continued routes in nigeria. there is discussion of a possible freeze later this month. this.e been tracking anthony, what are the latest comments from putin telling us about the possibility of a freeze in oil production? putin was speaking to a point at which the previous freeze talks in april faltered, and that was over iran. iran did not come to those last talks. saudi arabia said unless everyone agrees, then there is no deal. that was be failing point of the april talk. now, addressing that saying iran should be able to continue their increase in order to get back to the level that
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they want to be yet. they mentioned a level of around 4 million barrels a day, saying that they are roughly 80% there. they are on their way, hoping to get there by the end of the year. i don't think a five for iran ofldn't necessarily help -- all those issues facing the freeze, because as you mentioned in our opec production survey, there were some increases, iran among them, but also some decreases. nigeria, libya, their production went down. those are other countries that also have a right once they sort out their situations to cut production. so this does not cut out all the stumbling points for a freeze this time yousef:. what kind of: impact what a freeze have at this point? everybody is pumping what they can. reporter: that is the key point. they are all at record levels,
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so a freeze at these elevated levels would not take more oil off the market, and that's what we need to see a fundamental change in the supply-demand balance. that is the issue motivating the price right now, rather that survived -- that supply and demand our meeting, and rather we are continuing to put more oil in the stockpiles. stockpiles are going to be going down over a sustained period in order for the market to balance out. level, as mosts analysts would tell us, want to do that, and potentially we also have shale coming back. gary was mentioning $50 as a cap that they see on the price. lot of the level that a people seashell coming back in and adding more supply in their market. yousef: i pulled up a chart on the bloomberg. you get a sense of the production increases over the last year. raising,ee they keep
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but this is collected opec output. you can also pull up the opec output function separately to go into the data for individual countries. what kind of a price level are opec members targeting? you can't really agree on one price, can you? reporter: i agree. opec has said in the past they don't want to target a price. that gives away too much information to the market, because they can go higher or lower than that. and if they can't keep that price, that would further erode credibility. countriesrse, the have an idea of where they all need to be. the algerian minister was in iran over the weekend, saying that $50 oil -- rather, we'll below $50 is not high enough, so it seems like $50 is a level they are focusing on. some comments from opec ministers have said that they would like a range between $50 and $60 a barrel.
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that happens to coincide with a lot of analysts' forecasts for the end of the year, so it is possible that we get there any way as this supply-demand balance titans, and also looking at the fundamentals of the market coming up. yousef: $50 a barrel, the median bloomberg estimate. thanks a lot for some of the insight. let's check in on the first word headline from around the world. here's elliott. kong has begun voting in election that will set politicalfor future fights over beijing's control over the city. it is the first election since the occupied protests two years ago and will test the appeal of a new wave of anti-china activists. it is critical for the chief executive as he is getting reelected -- as he hopes to get reelected in march. it will also determine the opposition's capacity to block
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bills. samsung has set a two-week deadline to start replacing galaxy phones with faulty batteries. the company recalled millions of note 7 smartphones due to the battery catching fire. it comes at a critical time for samsung, just one week before apple is set to introduce its new iphone. samsung hopes to maintain its lead in the market. >> it is difficult for me to specifically comment on the loss. i can say that it is a large amount that pains me as well. nevertheless, we have made this decision because our customer pause -- our customers' safety is important to us jury of -- important to us. yousef: whose pakistan has held has held -- usbekistan . funeral for its leader he was largely criticized as an
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authoritarian. he became leader in 1969. it is not certain who will succeed him. global news powered by more than 2600 journalists in over 120 countries. this is bloomberg. up, we will look at the likelihood of an oil freeze. we will also discuss saudi expected toit is relax restrictions on foreign investors in its stock markets. we will get you the details and what to expect on that front. stay tuned. this is bloomberg. ♪
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yousef: a quick up -- quick roundup of the main stories. turkish commander says his country's military intervention is aimed at ending the conflict there and keeping the war-torn nation intact. turkey's encouragement to pursue
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kurdish fighters has an criticized by the u.s. and russia. several hundred people are protesting against train closures in israel. -- crowds gathered outside tel aviv after the main line was closed, to avoid infrastructure work. the shutdown affected thousands of commuters. the prime minister -- the transport minister instigated the crisis with both parties. saudi arabia's energy minister says he will give close consideration to japan's proposal for saudi aramco's listing on the tokyo stock exchange. that is according to the nikkei newspaper. sources told bloomberg japan made the offer while the saudi deputy crown prince was visiting tokyo. let's continue our discussion with our cohost, the chief investment officer for emirates in bg. gary, freeze or no freeze, what
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are you putting your money on? guest: i think there can be an achievement of a freeze. there are enough major players who want to achieve something this round. this time, with saudi onside, i think the deal will be done. yousef: what extent does it matter whether they freeze or not? guestwe were going through the numbers with anthony. they are pumping at record levels. are, and those record levels probably mean we will not see a spike, even if they do get a deal. what it does do is provide stabilization to the market, and a price of $50 with increased confidence. yousef: panelists pointed out that even if they were to agree on the freeze, they still have execution issues and compliance. how do you control how much people are pumping? guest: it is very difficult, and we have seen the numbers where people have been shooting their way, 1.5 to 2 million barrels a day.
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it shows some cohesiveness at opec that was not there before. yousef: but countries have pushed them to instigate a series of reports. it seems saudi arabia with dispatch that transformation. part of that goal is to diversify the economy, bring in foreign capital as well. today, the exchange is supposed to bring in a new set of rules that relaxes restrictions on foreign investors. the last time they tried this, the expectation would be that there would be a gush of foreign capital. that did not materialize. it was underwhelming. this time around, is he going to work? are foreign investors going to buy with the limit at $1 billion? guest: something has to be attractive to them. fallen, of oil having the foreign money just did not come through, not because they didn't believe in the reforms, but the market did all look interesting to them. i think the current valuations
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-- with the current valuations, we could see a trickle of money from foreign investors coming back into the market. yousef: how much money are you to move into saudi arabia? could this be the beginning of a series of reforms? guest: give credit to the saudis . unlike some other countries, there is a total commitment to msci inclusion. the reforms they are putting forward bring about sufficient change such that quite soon, industry inclusion will happen, but it comes back to, will saudi be attractive at that point? a number of things need to be put in place. oil prices need to be higher, and we need to see reforms come through in reality. yousef: so the fundamental means of improvement -- saudi aramco, we had the news that it could be listing on the tokyo stock exchange. small,c exchange is too isn't it, to really absorb the
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big listings of the likes of saudi aramco? what makes sense? guest: foreign investors will likely be much more operable -- comfortable committing capital to such a large entity. this will be part of a plan to get aramco accepted internationally. yousef: where is the bright spot in the gcc? guest: i think it is saudi. i believe this deal is done on the oil price, and we will see a lot of money coming in, but from domestic investments as well as trickle money from international investments. yousef: we will still continue that conversation. be onugan will also central-bank watch. make sure that you are in tune with what is i had this week. this is bloomberg. ♪
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we have been talking about the u.s. payrolls report and what that means for interest rates at the fed and other central banks around the world. it seems the bank of japan should be at the top of our agenda. reporter: that's right. we were talking earlier in the show about the fed taking its put -- taking its foot off the pedal in terms of rate hikes could be good for emerging markets, but there is one place in the world where it is not good, and that is in japan, where the boj is dealing with strengthening yen and this idea of a limit of its monetary policy powers. on that note, we have to say that the yen has been appreciating quite significantly recently. if you take a look at the charge i brought you, a little bit of technical analysis, this is the death cross in the u.s. dollar-yen exchange rate. what we can see here it is usually when we get a death
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cross, it foreshadows an appreciation of the yen. if the dollar starts strengthening, or i should say, if the dollar starts wakening, then the yen starts strengthening. this is something we have seen over the past couple of days. yousef: what about other central banks? the ecb, perhaps? reporter: we have a big ecb meeting coming up this week. again, they are also dealing with limitations on their asset or just programs, and they will have to debate whether or not they want to extend that. markso have the boe's carney coming up, and we also have i.s. in manufacturing data coming up on tuesday. that will be interesting, given that we have seen persistent concerns over softer manufacturing data. yousef: as we look at the week ahead, what will keep you up at night? think the ecb meeting is important. also, i think we have the g-20, and rather's -- whether
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something comes out of that on fiscal policy being important. we know that monetary policy is fed. when we hear more governments talking about wanting to help on fiscal policy and reform, that would be a major change and be supportive of people's growth expectations. yousef: but the bar has been put a lot lower because past track records have shown that rarely does anything material come out of the g-20. guest: that's right, and if you go back to the previous situation we had, we really did not have any significant changes, and we are now talking about the same thing, that growth needs to be improved. it just isn't coming. reporter: gary, you mentioned the g-20. we were just talking about mark carney speaking. it feels like we have a jampacked month coming up in this part of the world. all eyes are on the opec meeting. we have the first presidential debates. the list goes on and on. how are you feeling with that,
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and you expect a potential return of volatility in light of those events? guest: it is easy to say volatility will pick up. it is so low, and yet we have major policy reviews. the ecb will be important, are they going to support the market? maybe something will have to dramatically shift. trump is ahead in some of the polls that were put out. there is a lot we have to absorb. i don't think it changes strategy. we still have to be very cautious and be careful about buying into weakness. of the ecb, how much more in terms of ammunition do they really have? you mentioned the need for the g-20 to come up with fiscal stimulus, but on the monetary side, they are running dry, hard day? guest: they do. the boj has two things left to do, one is helicopter money. this time, we think it will be funding local and -- local authorities to do infrastructure spending.
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the package could be significant, and it could maybe weaken the yen. we need to get it down to support the economy. otherwise, we will be facing a headwind of stronger currencies. look at these you potential headwinds coming up and offense coming up, what is the one thing you are most concerned about? tost: markets continuing push on without the support of policy. until we get growth back, we tonot have multiples of 20 25 in equity markets, which is where we are in the u.s. at the moment. unless we reestablish growth, we have a downside risk on risk assets. yousef: we have to leave it there, though i could go much further. thank you very much. thiss all we have for edition of "bloomberg markets: middle east." we will be live from the region at the same time again tomorrow. ♪
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♪ >> okay, leeza. we're ready for you on set. leeza: thanks, guys. >> i'm walking to set with our lady. >> we're going to do a last, final mic check. leeza: of course. all right. have a good show, everybody. female announcer: the following is a paid presentation for dr. denese skinscience. male announcer: and now, the exclusive premiere of "winning the wrinkle war," examining how powerful, age-renewing, and youth-building ingredients can actually deliver incredible results like these in just 14 days. female announcer: and transform your skin like this in only 60

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