tv Bloomberg Markets Middle East Bloomberg November 20, 2017 11:00pm-12:00am EST
♪ tracy: fed up, janet yellen confirmed she will leave once in, givenell is sworn president trump borescope to shape leadership for years to come. could germany be heading for a reelection rerun? angela merkel would rather face another vote rather than govern without a majority, the euro we can submit -- weakens amid
uncertainty. the corruption crackdown in saudi arabia, the details. new poll finds most britons bracing for a post-brexit tax hike. tracy: this is "bloomberg markets: middle east." angie: a quick assessment of the markets in asia. the msci asia-pacific regional .75%, closingbing in on levels we have not seen this high since november. what is really remarkable about the selloff that we saw in the areal equity space, we seeing that recovery in asian stocks and sentiment today. , 1%nikkei 225 climbing higher because of the weaker yen, also putting aside concerns
about u.s. tax reform. we also have the hang seng, 1.25% up, some big players, tencent higher. te.ck out z it is lifting higher, 9.25% higher, and one of the reasons could be massive money coming through stock connect changing large caps in hong kong. tracy, what is happening in your neck of the woods? tracy: it is nice to see green it?hat board, isn't some assets that mean a lot for this region, the u.s. dollar sliding a little bit. it rebounded yesterday alongside u.s. stocks, but that did mean we saw gold fall. gold posted its biggest drop in two months yesterday. it is rebounding this morning.
look at the brent crude price, up $.13, 14 since her barrel. we are waiting for u.s. stockpile data that is expected to show another reduction in inventories of crude, and meanwhile look at that dubai index. that is one area where we have not seen the relief rally feet in just yet. yesterday,i falling being dragged down by a big drop in the national property company emaar properties. first, let's get first word headlines from around the world. the german chancellor angela merkel says she would rather face a new election than try to run a maine already government. coalition negotiations broke down, differences with the greens could not be resolved. i have no plans for a minority government at the
moment, so we have to wait. a new election is one way, a minority government is another. and a country that has some much to do, that will be something that has to be thought of very carefully. i don't want to say never, but i am skeptical and i think new elections would be the better way. >> the u.s. designating north korea has a state sponsor of terrorism to it opens the door to additional sanctions and further isolates kim jong-un's regime. north korea joins iran, sudan, and syria on the u.s. terror lists. this designation will impose sanctions and penalties on north korea and related persons and supports our maximum pressure campaign to isolate the murderous regime. >> british voters expect taxes to rise up to the u.k. leaves the european union. that is according to a new poll published ahead of wednesday's budget. the survey found 69% expected a tax hike, compared with 31% who
think they cut is on its way. chancellor philip hammond is under pressure from members of his own conservative party as well as the labor opposition to increase spending when he outlines his plan. saudi arabia's super rich are said to be reassessing assets in case riyadh's corruption crackdown widens. told thathas been people who are currently implicated have been asking banks and legal firms on how to protect their wealth. those already detained include one whose holdings include stakes in citigroup, twitter, and other global businesses. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. tracy: thank you so much. has confirmed she will leave the fed once her successor jerome powell is sworn in.
yellen could have stayed because her term as governor does not end until january, but her decision leaves president trump with an additional spot to fill. angie: the ecb is likely to make small adjustments to policy guidance rather than any major change in language. that as it ins quantitative easing. we get the account of the most recent ecb meeting this thursday, a day after the minutes after the latest gathering. thinksour next guest tomorrow's fed minutes will be a sleeper and with thanksgiving in the u.s., activity will be muted. the senior market analyst joins us now from singapore. thank you for coming on. with the janet yellen news. the big question that markets are asking right now is how much
scope does this give president trump to reshape the fed in the way that sees fit? think there is a limited amount of leeway because the voting panel on the fomc is a rotating vote, so you have all these governments and they take turns that thing on the actual voting panel, so you can't be dovish, hawkish, or neutral at any one time. i think it is quite interesting that he has not actually given any indication yet as to who he is leaning to come it so my guess is he is not quite sure which way he wants to go. some probably looking for hawkish governors come up it may be is not quite up to having a panel made up of people like that at the moment. angie: it will be fascinating to watch, this fed entry. in terms of janet yellen, what
will her legacy be? she has managed to an bark on the progress of tightening, beginning the reduction of the balance sheet without roiling markets as much as some people had expected. in fact, she seems to have the opposite problem now. this is chart 8280. it shows that even though the fed has been raising benchmark rates, financial conditions continue to ease, but somewhat surprising given what we were talking about two years ago, isn't it? year, definitely is it i think her legacy will be how she has navigated all these potential twists and turns and holes in politics and cap to be fed on a steady course. i think she was given quite a shock by the taper tantrum a couple of years ago that made the fed rio says how they were going to slowly unwind, but i governor yellen's legacy
will be the actual navigating of the final part of quantitative easing and actually moving towards this normalization. the biggest frustration will be that the economy is firing on all cylinders, but wage growth has not appeared. it is the fed nirvana they were looking for to really start their tightening process in earnest, but overall i think she has not been high profile like ben bernanke, but she has actually done a very good job. wanted to get in this question. where do you chase yield? you take a look at the yield differential between two's and 30's, pretty incredible. and take a look here, this is 6951. i have it on my bloomberg terminal. junk bonds, these are the stocks that should be giving you the best yields and are just giving
5.8%, well below that to decade average. these are amongst the riskiest bonds, and even then just less than 6% for your risky bet. where do you chase it? is one of thes legacies of quantitative easing and why it does have to finish up and be consigned to the holes of history. it has caused so many distortions around the world, and in times past, quantitative haveg means central banks hoovered up every investment-grade bond, and that is pushing investors into more risky assets, such as junk bonds. you buy a lot of junk bonds, and in the yields go down, and this is causing distortions everywhere. in its heartis what the federal reserve and the ecb are looking to try to unwind at the moment.
we are starting to see some stress on the junk bond, high yield side, quite a few issues have been pulled in the last couple of weeks and the high-yield index has started creeping higher again. angie: jeff, you are staying with us. will segue over two stocks. we are going to discuss the latest on u.s. tax reform, why an early the center in the warning of reformn and how that will feed into u.s. equities. ♪ angie: reports that saudi billionaires are ring fencing their assets. we will discuss how far the corruption search could go with exotic capital. this is bloomberg. ♪
i am tracy alloway in dubai. angie: i am angie lau in hong kong. the latest business flash headlines. at&t insisting its takeover of time warner is a vertical merger that does not lessen competition . this after the justice department filed an antitrust suit to block the deal, saying it would greatly harm american consumers. at&t basra randall stephenson insists that selling this he in a news channel is not going to happen. >> there has been a lot of reporting and speculation whether this is all about cnn. frankly, i don't know. but nobody should be surprised that the question keeps coming such anuse we witnessed abrupt change in the application of antitrust law here. the bottom line is that we cannot and we will not be party to any agreement that would even give the perception of compromising the first amendment protections of the press, so any
agreement that results in less forfeiting control of cnn, directly or indirectly, is a nonstarter. tracy: france and the netherlands have won a contest to host european union agencies, the first concrete political victory in the battle for brexit spoils. the eu banking authority will move to paris, and the regulator will move to amsterdam by the time britain departs from the block in march 2019. the two cities emerged victorious after a series of secret ballots by a few governments in brussels. trans canada has won approval to build the keystone xl crude oil pipeline across nebraska. officials approved an alternative route that could be challenged by environmentalists and landowners. moody's says it does not provide certainty for the project's completion. construction of the $8 billion 1900 kilometer pipeline has been
on the drawing board since 2008. that is your bloomberg business flash. let's turn our attention to the united states and ron johnson, the first gop senator to voice his opposition to the current tax plan. he says he is encouraged that republican leaders have been discussing his concerns. the senate finance committee approved the package last weekend at schedule his head to the floor next week. many expect johnson to vote yes in the in. -- in the end. the center ofy obamacare before ultimately supporting the effort. let's bring back our guest, the senior market analyst. you look at the tax reform efforts and you look at the markets, i'm curious how much do think is priced in at this moment? how much is the rally we have
seen in u.s. equities for instance reliant on the administration being able to pass that reform package? think there is quite a lot priced into the equity market in particular, and to a certain extent the u.s. dollar as well. they are expecting some sort of to repatriate all these dollars that american corporations have stashed overseas. the danger is that the whole thing falls flat, and that would most certainly see quite a vicious correction in the u.s. dollar. for equities, it would be short-lived. we have seenelloff over the last two years in the u.s. equity markets has lasted about 24 hours, then the market starts making its way higher again, so it has been a noticeable trend, and i don't see anything to change that
outlook. i think it would be more dangerous for the u.s. dollar rather than equities in the longer term. tracy: i love that you brought up the u.s. dollar. it was about a simultaneous upward move in stock and treasury yields. 54 53.rt behind me is you can see the trump trade clearly in action around november-december last year, and it has lost a little bit of steam, especially the dollar portion. give us your thoughts on the greenback. why is a softer dollar now the story of markets? i think it is only a passing phase. i think we are seeing a lack of momentum in the senate and the house of representatives to get this tax bill over the line. i think market started off 2017 all guns blazing that we would see obamacare repealed, tax
reforms, etc., and it would all be great for the u.s. economy, but a year later we have basically got nothing done in the states. i think that undermines the entire u.s. dollar reflation trade from a very early phase. is trying to call the fed's bluff on their hiking cycle as well. lull, buto be in a the u.s. dollar will strengthen as rates go up. fact thatnger is in we get nothing done on this tax trade. next year, we have midterm elections in november. of the senate and house of representatives to put their next on the line in 2018 will be less than it is today. this time last year we were worried about whether 2017 would be a year of highs. how about 2018?
the concern is still the same. what about next year? than trying to pick the top of stock markets, and i think that is where it is at come it would be better to wait for a signal that the markets have topped. every time there is a selloff, i look like a genius for 24 hours after donald trump won the election because i predicted he would, but after that, i have been wrong for the rest of the year. up. sort of sums it all we have been to brexit, donald trump elected, but the stock markets keep going up, so until we have a firm signal that the markets have topped, any dip is there to be bought. there is still plenty of money on the sidelines looking for attractive prices. nice to have honest temporary geniuses on the show. you are staying with us. up next, that record da vinci art sale and whether it means we
♪ the united states is designating north korea as a state sponsor of terrorism. the move opens the door to sanctions and isolates kim jong-un's regime. i guess things the north korean situation is a storm in a teacup, but the situation in saudi arabia might not be. is also concerns that bitcoin is a bubble and someone paying $450 million for a da vinci last week screams peak liquidity. our guest is still with us from singapore. when you have that much discretionary dollars, cash on the sidelines, and you're going with a da vinci, what does that say about where we are at? >> i can probably qualify that.
it is the only da vinci available in the world in private hands and must be priceless. what was interesting were the other paintings and that auction, modern impressionist and such, $30 million, $40 million. one paid $30 million and the guy painted it with a brush on a broomstick, so we are all in the wrong jobs. i am worried that we are almost at the liquidity, with some parts of the global community, it is very much like the 1990's were the japanese were buying these impressionists at ridiculous prices and was a leading indicator the nikkei was about to crash in japan and go into 25 years of deflation. i know which
has only expense the cost of capital, and that is not how the world works. there will have to be a lot of adjustments. the fed will have to take it gently. we will actually see capital allocated on a more efficient basis rather than chasing high yield bonds we were talking about down to yields of 4%. allocatede capital more efficiently, but i do think it will lead to strengthen the u.s. dollar and actually put pressure on some over leveraged assets and some of those paintings bought last week won't be quite the magical investments that people thought. let's talk about the economic side of this equation. if liquidity is reducing, as long as we have a synchronized global recovery, you would think that provide some help for the markets. how much of a boost is that going to be? the federal reserve, the
first into quantitative easing, the ecb now making signals, the bank of england is basically done one hike and said we are not touching it for the foreseeable future. everybody is taking it very gently, but the fact is they want to put some money in the bank so to speak for the next recession or crisis so that they are able to cut rates. we need to bring the cost of capital back from zero or 1% to whatever it should naturally be, which is not where it is at the moment, so we will see a gradual process and as long as the world economy stays buoyant and china stays buoyant and asia and we don't have any problems with over leveraged economies with large amounts of u.s. dollar debt, then i think we can meander our way through 2018 >> safely. we will have to leave it there. we did not even get to bitcoin. coming up, we turn to the oil market. iraq is adding to opec's
tracy: it is a: 30 a.m. in sunny dubai. in sunny dubai. we had a positive session in asia overnight. the msci asia-pacific index up .7 5% come making up for losses we saw yesterday. we will have to wait to see whether that sentiment feeds through into the middle east market later today. one thing that might help, we still have oil holding onto gains, although they are shrinking as i look at my screen. with get over to debra mao first word headlines from around the world. the german chancellor
angela merkel says she would rather face a new election than try to run a minority government. before party coalition negotiations broke down, the pro-business free democrats said differences with the greens could not be resolved. i had no plans for a minority government at the moment, so we have to wait. a new election is one way, a minority government is another. and a country that has a much to do, that is something to be thought of very carefully. but it want to say never, am very skeptical and i think new elections would need the better way. the united states is designating north korea a state sponsor of terrorism, opening the door to additional sanctions and further isolates kim jong-un's regime. iran, sudan,oins and syria on the u.s. terror list. >> this designation will impose further sanctions and penalties on north korea and related persons and supports our maximum
pressure campaign to isolate the murderous regime. debra: british voters expect taxes to rise after the u.k. leaves the european union. that is according to a new poll published ahead of wednesday's budget. the survey found 69% expected tax hikes, compared with 31% who think a cut is on the way. isncellor philip hammond under pressure from some members of his own conservative party as well as the labor opposition to increase spending when he outlines his plans. a luxury apartment on the peak in hong kong has become asia's most expensive by area. $148dentified buyer paid million on monday for two adjacent flats at number eight mount nicholson. the record $17,000 per square foot was set by the smaller of the two flats. real estate index
says hong kong is set for a mild correction in his red-hot property market. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. do welle will have to in the markets to a for that property. for the latest, we have david ingles. >> it might take a while. your earlier that i was upset they brought a camera into the property. let's have a look at equities across the region. very strong rally across the asia-pacific. we are less than .5% from the all-time high on the benchmark. southeast asia under pressure. csi 300, thee, best day since august. hong kong hsi, 1.24%. to the other story
come a ton of money coming from china into hong kong. have a look at these trackers. these are the southbound tunnels from shanghai and shenzhen into hong kong. typically you see about one billion renminbi every day. ofyou can see, more and more the quota getting used up. tencent is the start today. this is our graphic. what you are looking at is a lot of headlines on hong kong. tencent is bigger than facebook as we speak. we are one day ahead of the u.s., but it has joined the group of $500 billion companies. you're looking at 4.93 consensus rating. five is a perfect score. that is despite violations at 41 times earnings. there is a lot of money coming into the stock at the moment. it is lifting the overall
market. earlier, toed illustrate the six biggest companies in the world, five in the u.s., one in hong kong, tencent. it could all change when u.s. markets open up a bit later on. it is a good day for equities in the region. very green and some very big round numbers. let's talk about the oil market. never far from our mind in the middle east. wild swings in iraqis oil production are clouding the policymaking picture for opec, trying to extend or decide how long to extend those cuts. iraq has consistently exceeded its quota all year. output plunged last month as fighting broke out. here is our managing editor for energy and commodities, will kennedy. walk us through why iraq has become a problem or a potential
problem for opec? >> good morning. traditionally iraq has exceeded of quota and has been one the more recalcitrant members as they apply to this new policy. the fighting has change the picture entirely. day,t 120,000 barrels a and they met their order for the first time, and for opec that paints a rosier picture than is real. it looks like they are doing a great job, where is the reality might not be so. looking at well production for libya, nigeria, and iraq. iraq does not look like the worst player. how much are the other two wildcards like libya and nigeria going to be a headache for the cartel? >> that shows you libya is a big problem. you never know what they will produce one month to the next, but the picture has improved markedly for libya.
you can see production rising, sort of stabilizing. people are fairly optimistic about the political situation at the moment. if that continues, the swings in iraq do matter at the margins. the grand seem big in scheme of things, but the global balance, they have consider the global balance next year. crucial timelarly in talks as the russians are now reluctant to play ball. tracy: so many factors we have to take into account. i don't envy their meeting later this month. let's bring in our other guests, the head of equity research at exotic's capital. oil is part of the emerging markets story, but another very big part of it is politics, and we saw that emerged yesterday. we had a couple of major political stories and some bob hile, and ofabwe, c
course we had the president of turkey fighting with his central bank and another selloff in that market. just on zimbabwe, you and your colleagues are saying the country now faces a constitutional impasse. marcus to the issue there. >> we have a situation where you have had a dominant one-party state since independence. supportedn strongly and a representative of liberation for veterans in the military. thatilitary has lost faith it is heading in the direction that suits its interest, and this is symbolized by the dismissal of the vice president last week, and that precipitated the actions the military took to rid itself of a rival faction. the reason why there is a constitutional impasse is that in order to be positioned as president, he needs to be reappointed as pfizer president.
resigns,obert mugabe impeach, or forcibly removed, the only way to constitutionally succeed him is to be reinstalled as a vice president, and that's why robert mugabe realizes this is his last bargain and that is why the process is taking longer than expected. youe: as an investor, would -- is that just too messy to play into that space right now, or is it an opportunistic time? an equities,we for the last year, you have seen a tremendous run in equities for all the wrong reasons. it has been viewed as a proxy for cash in an economy where there is a shortage of dollars. when you see that cash scarcity premium edge off as it has been doing over the last few days because there is an expectation that these changes will start to bring in more foreign capital and more dollars into the
system, then you are looking at and in thing -- an interesting investment story. a country with better human and physical capital than the surrounding region and is a pretty diverse stock market. there are some strong companies that are clearly battle proof and are at reasonable valuations once you take that premium out here it the largest company on ,he market, delta corporation trading on a times forward earnings. when you take this cash scarcity premium out of its local equity share price. tracy: what about saudi arabia? angie: we are hearing stories about a lot of wealthy saudis trying to protect their assets here. i guess there is nervousness on the ground, but when it comes to a broader scale, should those nerves extend to foreign investors here? to be verywe have
clear about what is going on in saudi. we are seeing a massive transition in the economic model from one built around oil revenues, turning them into patronage for the elite part of the population, welfare for the mass part of the population, and a range of implicit subsidies running a significant business in saudi. what is needing to changes to move that to a more diversified economy driven by the private sector and an incentive-based economics. that probablys, also drives a change in the political model, so when we look at these changes in saudi, we are seeing a change in the political model from one bill to preserve the old economic model to one that needs to foster the new one, and that means moving away from slow consensus-driven decision-making and the reliance on the traditional alliance with the religious clerics. that is the context in which we need to understand what has been called a purge of some of the
elite members of saudi society. tracy: hold that thought. we will be talking a lot more about saudi in a few minutes. you are staying with us. up next, we discussed the saudi story, stashing the cash, the super rich reassessing assets amid the corruption crackdown. we will have the details on that next. this is bloomberg. ♪
angie: a quick check of the business flash headlines. at&t insisting its takeover of time warner is a classic vertical merger that does not threaten or lessen competition. the doj filed an antitrust suit to block the $85 billion deal, saying it would greatly harm american consumers. meanwhile, randall stephenson insists settling cnn is not going to happen.
>> there has been a lot of reporting and speculation whether this is all about cnn. and frankly, i don't know, but nobody should be surprised that the question keeps coming up, because we have witnessed such an abrupt change in the application of the antitrust law here. the bottom line is we cannot and will not be party to any givement that would even the perception of compromising the first amendment protections of the press. any agreement that results in us forfeiting control of cnn, whether directly or indirectly, is a nonstarter. and therance netherlands have won the contest to host european union agencies, the first political victory in the battle for brexit spoils. the banking authority will move to paris. the medicine regulator will relocate to amsterdam by the time britain departs in march
2019. the two cities emerge victorious after a series of secret ballots by eu governments in brussels. transcanada has won approval to build the keystone xl oil pipeline across the state of nebraska. approved anicials alternative route they could be challenged by environmentalists and land owners. moody's says it does not provide certainty for the project completion. of the 1900tion kilometer pipeline has been on the drawing board since 2008. that is your business flash. we have already been discussing the story a little bit. fencey saudis looking to in assets in case the authorities widen the crackdown on corruption. several families and businessmen who are not implicated in the purge are looking at options, including splitting holdings between more than one company. our middle east economics and
politics team leader joins us now. that me put you on the spot. what is the point of trying to ring fence assets in a kingdom with centralized of 30 and a huge question over the idea of due process? one of the people we were talking to is saying there are all these discussions, but we are not sure how successful this would be. a step in that direction. more importantly, it reflects the fear among some of the kingdom's richest families and businessmen that they might be next-door this probe might widen. the bulk of their assets are domestically held inside the kingdom, so they are scrambling to protect their wealth. tracy: that means the message is getting through. how much does this crackdown start to hurt investment activity in the kingdom at a
time when the saudi economy has been slowing? >> the other thing this tells you is the intention of these notanies and businessmen is on investing, but how can we protect what we have. we have seen a drop in private investment. we have seen the non-oil economy stagnant, and the expectation is this will extend in the fourth quarter and maybe into 2018. that is perhaps why the government is looking into a more expansionary budget in 2018 then previously thought to counter this. tracy: thank you for joining this and bringing us the latest on your story. our guest.ring back you were giving us your thoughts on this before. i want to put you on the spot as well. don't think you are getting away free. reform,that the saudi the corruption crackdown, is
open to binary interpretation. on the one hand, a step in the right direction, but you could also read that is a huge centralization of power. which side do you fall on? >> this is more about a centralization of power. there is a complete seachange underway and saudi politics, moving from decision-making where a consensus was established across a very large royal family to one where decision-making has been streamlined at the desk of one key man. meritsld argue that the of whether that is a long-term sustainable equilibrium, but if saudi is to implement the decisions it needs to to transform its economy, i would argue that centralization is a necessary if not efficient step. tracy: we were speaking about domestic investment activity. what do you think it means for investment?
will foreign investors to come into the country on the promise of that economic transformation? >> there are two types of foreign investment. there is foreign direct investment. certainly there is nothing in this recent set of events that suggests that conditions for that sort of foreign multi-and national investor have changed. it is hard to abandon the atmosphere that was projected during davos, because that was very much focused on foreign investment. i don't think that and an outlook has changed. if you look at foreign investors in the stock market, this is still coming off a very small base, and part of the decision for foreign institutional investment is to look at the fact that they will have to. sooner or later, this will be part of msci emerging markets. overweighty are not in saudi, it will be a market that is big enough as part of an index that they will have to take a view.
remember, saudi as an equity market is 20% cheaper than the last five years. it's trading volumes are a third of the last five years, so this issue of fear and uncertainty and change is not new. this is reflected in the market already in my view. tracy: what about the bond market. angie: if you're going to go to markets for yield, one thing, but if you are going to ask for confidence in your economy, in the face of the reforms, especially zimbabwe, saudi arabia, where would for an look for yield to rise? >> first of all, there is a complete the disingenuous pairing of zimbabwe and saudi in the same segment. we wereaid that, talking about bond offerings, dollar bond offerings for in saudi.vestors,
all the actions in the last couple of weeks have been focused on an elite group of domestic businessmen. this in thet view differently to how you view for example the application of windfall taxes in developed economies. retraction of wealth transferred from oil revenues to the elite part of the private sector. that has nothing to do with saudi willingness to make good on its commitments to foreign investors in sovereign dollar bonds. a pleasure getting your thoughts on this slightly complex issue. thatxt, we continue on saudi theme with the kingdoms stocks under the microscope. they areook at how coping with the anticorruption shakeup. that is next. this is bloomberg. ♪
toie: we are counting down the market open in the emirates one hour from now. eastng us is our middle week markets reporter. about we were talking whether domestic and foreign investors would be snapping of saudi assets, and you have a chart that explains it. >> this is a conversation that is ongoing in saudi right now. we have numbers from the tadawul yesterday regarding last week's trade. we notice that individual investors keep selling stocks in the saudi market, the white bar. institutions are buying. while we don't see a germanic or sharp decline in the tadawul index, we know individuals are selling the most since june this year when we have the msci decision, which is natural for institutions to step in at such a moment, so we can say a mid
all of this pessimism that we have been talking about regarding saudi, that we just mentioned here in the last block, individuals are getting more and more skeptical about the local market, while institutions are stepping in and buying. tracy: it smells a little bit like state directed support. leaving that thorny issue aside, what stocks are you watching? .> we have vodafone qatar we have not been talking a lot about qatar recently because we have not seen a lot of activity. we have an upgrade by hsbc to come so it might be a good buy opportunity for some investors. we also have emaar in the uae. of tradehe last day before its unit starts trading in dubai, and it is down quite a bit this week. tracy: tough times for emaar.
eastloomberg middle markets reporter, thank you for joining us. and she come are you watching? angie: well, we are watching this. everyone should stay tuned bloomberg. coming up 11:00 a.m. to buy time, we speak to the outgoing easyjet ceo as the budget airline reports its full year results. that is definitely one to watch. as we take a look across the region, we are seeing the msci asia-pacific regional benchmark closing in on another record high. hopefully that will translate to gains in your neck of the woods. and we still have brent barely in the green, up three cents a barrel. we will see how middle east markets interpret that. that is it for this edition of "bloomberg markets: middle east." ♪
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near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. ♪ >> it is 1 p.m. here in hong kong, i'm angie lau with the first world news. germany chancellor angela merkel says she prefers to go to the electorate. coalition party negotiations down with the christian democrats saying that things cannot be resolved. in france and netherlands, they will host the first battle for post-brexit spoils. the banking authority will move to paris and the regulator will head to amsterdam by the time the that britain lease in march, 2019.