tv Bloomberg Markets Middle East Bloomberg December 9, 2017 11:00pm-12:00am EST
♪ >> more violent protesters the fallout continues over trump's decision to declare jerusalem israel's capital. mike pence is now set to be snubbed during his middle east visit later this month. starring between saudi and the white house as we take more assertive steps toward fears grow over mohammad bin salman's key actions. >> after voting to leave the eu,
that united kingdom finally finishes the divorce. but is a hard work about to begin for syriza may? bitcoins features set to lunch, is it the hottest market is 8 a.m. in, it the emirates. middle east, and tracy alloway. let us start out with a quick check on what was going on in the european markets on friday. we had some big news on a u.s. jobs and the brexit breakthrough as well. payroll for november was a headline number, rising by 228,000 for the month, above the forecast of 195,000. still no big improvement in wage gains, more of what we've seen over many months. the headlines were enough to give u.s. stocks a list however, the s&p 500 closing at an all-time high. strength flowed into the same
stocks, they had been in an area of concern early in the week. the bloomberg dollar index is on its way to its best weekly performance for the year, pretty amazing f. again, judged by what was happening early in the week. 10 year yields also notched up higher that trumps and a short terms ending bill, aborting a government shutdown. here's a look at what was going on in europe, britain and the you= -- the eu agreeing not to disagree. pounddget move sent the going up, and then that two-year yields also going on a roller coaster ride, rising sharply, to almost 57 basis points before closing down at 51 basis points. bank ofinder we have a england meeting next week, also an ecb meeting. the stocks 100 index climbed
bank to a one-month high on. . euro, basically unchanged. basically most of the action has to do with the dollar. let us check in on the headlines from around the world. >> iraq's prime minister has announced the end of the war against isis nearly four years after the group overran parts of the country. according to a state television, he also said iraqi forces are now in control of the entire border with syria. isis militants were dealt heavy blows this year in syria. cameron won't go boss thought to be one of the largest holders of bitcoins thinks the cryptocurrency's blazing gains this year are just the beginning. heap predicts they will rise 20 fold. meanwhile, bitcoin contract launched later tonight, it will make it easier to bet against
digital currency using those futures. one of the united kingdom governments leading racketeers says the british public will be verdict on the brexit plan at the next election. brian agreeing to pay 45 billion euros. but in the telegraph newspaper, one reporter said if the british people dislike the arrangement, they can change it. december 19 as the meeting to discuss the end state plans for brexit by the british parliament. china's factory inflation moderated in november and consumer rights gains remained tepid, which could ease the pressure to tighten monetary policy. cpi rose slower than expected, at 1.7% mainly due to a fall in for prices. has also expressed
pessimism about bringing the north korean stand off to a useful resolution. the foreign minister urged all sides to end what he called a vicious cycle of confrontation, despite north korea saying that -- the yuan delegation had agreed on easing tensions. those are your first word headlines, let us take a look at what is happening in the region. moody's with a stable outlook for banks in the gcc, feeling that the overall economy in the region will get a boost from increased government rendering. us get best increased government spending. we will speak to the moody's officer of the emir region, thank you for joining us. trump's decision to designate jerusalem the capital of israel, ended a gcc summit that
fairly poorly last week, and of course, the ongoing conflict in a yemen. how does ended fairly poorly it modi's factor raising joe political tensions in the rating? guest: i think we factor them and obviously we have for example, a number of banking systems and countries in the region who have a negative outlook. , for fiscaln, qatar reasons, fiscal changes and for geopolitical reasons. nevertheless, in a number of systems, and they are the largest, the uae, saudi and kuwait, resenting around 75% of the banking assets in the region, we believe the fundamental economics, especially the recovery in economic growth next year, after a most economic growth this year, will boost credit growth and be positive for banks. tracy: i would like to press you on the fundamentals.
this is the chart behind me, you can see the interbank funding costs kicking up for some of the players in the region, qatar especially getting a spike around the time the blockade was enacted in june. even saudi and them ever it's starting to take up a little bit. do you have concerns for funding pressure. paul: we do not have any at this stage. for two key reasons. first, although we expect a slightly upper growth of credit next year, about 5%, growth is very moderate in these economies compared to a few years back. so that it reduces in a way, the competition for funding. the other thing is that we requirements from the government to be quite significant in the next few years and force the government primarilye issuing
outside, and that in jack's liquidity in the region. tracy: so if you have a stable the gcc despite the political front, what are the issues which could cause that outlook to deteriorate? guest: i think obviously, first of all oil price expectations, which at the moment are at the band, if thathe was deteriorate, obviously that could have a negative impact on fiscal pressures and spending from the government. also, deterioration in geopolitical tensions. at the moment, the main impact is for qatar. but if the impact was to widen to the region, that could have a negative impact on the business confidence. tracy: right now you have a stable outlook for the banks but there are some where you have a
negative outlook, specifically as mentioned, qatar, but rain and omar. what are the differential factors between those banks and others in the region? guest: i would put qatar aside because -- >> is a special case? and it is more about geopolitical tensions and how those tensions could develop i think obviously two reasons -- confidence in the system has been impacted. trade flows as been impacted as you mentioned, i think the rain and, in ourbahrain different, the problem for them is more fist goal. failed twicece -- in meeting their fiscal targets and bahrain check out debt -- bahrain's that continues to grow.
tracy: i heard some people call bahrain the grease of the middle east. is that something you agree with? it is a harsh assessment, no? guest: i am not entirely familiar with greece and how we should compare both of them but from the banking perspective at that the banking system on its own is quite resilient. obviously, given that the bank's take on more and more government paper, you can imagine a link between -- the profitability has ton solid, they have managed improve their net interest liquidity in the system has been more or less stable as well so far. the banks are quite resilient, maybe compared to greece's. tracy: liquidity in the system has it is a low bar, is in it.
thank you so much for joining us this morning. still ahead, brexit breakthrough-theresa may striking a deal. does the hardest part now lie ahead for the united kingdom prime minister? and after months of a buddy relationship, our things now starting to sour between the u.s. and saudi arabia? we discussed that as well as trump's historic decision to overturn 70 years of u.s. foreign policy. this is bloomberg. ♪
the company aims to reduce expenses by up to $2 billion over the next two years. isivist investor bill ackman likely to face a jury trial next month over claims he engaged in insider trading. in conjunction with the hostile takeover did over the allergen in 2014, he is accused of planning to take their offer directly to allergen's shareholders rather than pursuing a negotiated merger. bitcoin futures contracts lunch or later today making it easier to bet against the digital currency. gary: told bloomberg he is keeping an eye on what is going on. >> we will see what effect that has. it will allow people the ability to short it, there has never been a transparent market of bitcoin. it is a revolving market, so we will seek what is going on.
tracy: intra-malan plans to sell 300 million euros in bonds, a move to raise funds a two months after a chinese company agreed to buy a majority share in the club. the bonds will apparently be used to finance that. debt.ance now let us go closer to the region. a plan to meet with the u.s. president mike pence will be when he visits the region next month. -- meanwhile, the arab league has blasted the decision to declare jerusalem the capital of israel. apparently there will be a seeking of a u. un security council resolution. we are joined by bloomberg view columnist and a director of
, jon, i feel like middle eastern politics were always complicated but it feels like they are getting work on the gated by the day. the is your take on significance on the jerusalem decision and what it means for the region's economic growth. him atuld not agree more tracy. it is bringing back all of the geopolitical concerns. politics is at the front page of all of the new newspapers in the and it is becoming a concern for all of those watching from the outside into the region. politics, jerusalem, regional affairs, gcc matters, stability it in the wider context is of concern and certainly, when there is instability, there is concern as used a correctly about economic growth. so i think investors will be looking at this and they will be wondering what happened.
my take is that markets are not going to be so disturbed. i think they are quite resilient and thick-skinned, especially egypt. recently over the last week we have seen saudi picking up a bit , so i am not really worried about the short-term impact, i am worried about what happens and what the image of the middle east to the rest of the world will be. tracy: john, you're absolutely right. so far markets have been inured to the time were -- to the turmoil. why do you think that is? i understand how domestic investors might be used to this uncertainty but how about foreign investors that saudi arabia are now trying to target. they might be thinking wait a second, i do not want to did my toes into the region? guest: yes, at first people will
be concerned about what is happening, the impact. but overall, people look into the stories that these countries resent, i will give the example of the saudi purge. the corruption purge. clearly people were over the short term concerned, the market dipped a little bit but it has been quite resilient. again, in the case of egypt, violence, what happened in sinai was horrible. the market was resilient. investorse noise, believe that people are not going to fight over this -- countries will not fight over this, it will be the usual statements but overall, markets in the middle east tend to be for more resilient than we believe. i think investors will look at this and say, let us see the opportunities, rather than the negativity. tracy: so either in terms of the
economy or the market, what would you suggest looking at to gauge whether or not we are seeing geopolitical tensions feed through? guest: first of all, i would look at oil markets. is good 62, 63, this news for oil producers, for saudi arabia and the gcc, but oil is not picking up. geopolitical concern seems not to be there. again, we have not seen a correction in the markets, today will be the first opening day, my guess is that they will not be disturbed. in egypt, the event that happened in sinai, that did not move, so a lot of fake skinned thch=sk is happeninginneness -- a lot of
fake skinned-ness is happening. how about bitcoin, for investors worried about investing in at the gcc. futures trading in the cryptocurrency is set to begin later today but a union of course remains divided. here is what some key names have had to say about the price of bitcoin recently. >> i could care less if it trades, how it trades, if you are stupid enough to buy it, you will pay the price one day. >> i am afraid it is irrational exuberance, this is as greenspan's famous phrase -- of course he later found the market kept on going up when he said it should stop. but this is a very unusual market, it shows you are not in a normal two-way trading market that would normally have. >> it is a scam for criminals around the world.
>> bitcoin shows you how much demand for money laundering there is in the world. >> if it was 20 years later and it worked out i could tell you why but based on everything i know, i am not guessing that it well work out. >> the bottom line is that it is a religion. you have to believe in it or not. >> i certainly do not think it is a fraud. is it a bubble? maybe. goneal currencies have through this, but you add a new plateau each time it goes up and comes back a little bit. tracy: well, those were some key finance figures weighing in on bitcoin. one thing for sure, everyone has an opinion. up next, brexit breakthrough talks after the united kingdom agrees to pay a $45 billion euro divorce bill. we will hear from nigel farage next. this is bloomberg.
♪ a most a year and a half after britain voted to leave the european union, both sides finally striking a deal to unlock negotiations. here is what key players had to say. >> the result is of course a compromise. intensee result of a discussion between negotiators. >> millions of jobs depend on the future trading relationship we will determine. >> it was a difficult negotiation for the european union as well as for the united kingdom. >> let us remember the most difficult challenge is still ahead. >> there is still work to be done and negotiation on a number of issues. >> i am optimistic about the discussion i had but in the meantime, reaching this agreement now ensures businesses will be able to make investment
decisions based on an implementation timeframe to welcomes certainty. >> we know that breaking up is hard but breaking up and building a new relation is much harder. tracy: as part of the deal britain has agreed to pay a 45 billion euro divorce bill, which did not go down well with the many was the face of the brexit campaign, nigel farage. he spoke to bloomberg francine lacqua. >> it is not a deal is it, more like a surrender. we allow foreign courts to have jurisdiction over our country, we're paying a huge sum of money and committing ourselves to regulatory similarity meaning we cannot become competitive. we have done all of this in return for nothing, they will now just talk to us about perhaps having a trade deal. for thevery much business community to think
about, we voted brexit because you wanted to be able to be more competitive than our european neighbors, to make our own laws in our own sectors. we wanted to be able to go global and the problem with the timeline we are on here is that at the very earliest, the first time we consent a trade deal with the usa or anyone else will be the end of 2021, a full six years after we voted brexit. >> you can also now argue though prepping for a trade deal. can you make the united kingdom competitive without a trade deal? yes, of course you can. there are tons of countries all over the world who do this with each other without trade deals, they become more competitive in other ways. obviously, given we are a massive net importer from the european union, a terrace-free trade deal is a logical deal for ff-free do -- a rtarri
trade deal is very easy for them to do. the eu is under massive strain, the growth of the rebel movements on the right, center and. left, all across europe. so rather than saying on a day one, let's have a trade deal, they have asked us to pay a lot of money for it. >> right, and you have always said that this was the money owed to them. was it more important to get a trade deal or focus on divorce money? sum of money we are agreeing to is very, very much more than we legally owed them. then we have a government that is undertaking brexit with deep reluctance because the truth is they do not actually believe in it. of course i want us to have a tariff-free trade deal with our e.u. neighbors but i do not want to eight and exorbitant rise for it. tracy: that was bloomberg's
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tracy: you are watching bloomberg markets: middle east. let's check in now on the first word headlines from around the world. there have been more violent clashes in jerusalem after president trump declared it to be the capital of israel. arab league has blasted the decision and an emergency meeting in cairo, foreign ministers they would seek a un security council resolution stating that the move violates international law. neither the palestinian authority president, nor the head of the coptic church in egypt plan to meet with u.s. vice president mike pence when he visits the middle east later month.
iraq's prime minister has announced the end of the war against the so-called islamic state nearly four years after the militant month. iraq group over rent parts of the country. according to state television, he also said iraqi forces are in control of the entire border with syria. cameron winkleboss, thought to be one of the biggest holders of bitcoin, thanks the cryptocurrencies blazing gains in this year are just the beginning. you think they will rise as much as 20 fold as people view it as an upgrade to gold. bitcoin futures contracts launch later tonight and will make it better to bet against the digital currency which has climbed more than 40% this week alone. one of the u.k. governments leading brexiteers says the british public will be given their say in theresa may's brexit plan of the next election. there was a deal to lovelock
negotiations with britain agreeing to pay a divorce bill but writing in the daily telegraph, if the british people dislike the arrangement, they can change it. reports suggest the cabinet will meet on december 19 to discuss its end of state plans for brexit. china has expressed pessimism about bringing the north korean standoff to a peaceful resolution. the foreign minister has urged all sides to end what he called a vicious cycle of confrontation. despite north korea saying a departing u.s. delegation at agreed to a communications to help ease tensions. those were your first word headlines. now after months of apparently good relations between the united states and saudi arabia, are things beginning to sour? with a series of rebukes this week, including criticism over its blockade of yemen, the trump administration seems to be taking an assertive stance
against a key middle east ally amidst a growing sense of alarm within the state department among the saudi prince, who is seen as young and inexperienced. thel with us is john, director of economics research. thank you for staying, being patient. it feels like u.s. foreign-policy is becoming increasingly unpredictable when it comes to this particular region. and historically, the u.s., whether people like it or not, has sort of been the guarantor of security in the middle east. how concerning is this latest development, this rising unpredictability for you? i'm not concerned about the overall foreign policy that the u.s. has and the relationship, the proximity of theare things beginning to sour? relationship that is defined
between the two countries. i don't think suddenly we are going to see an end to this special relationship. there are differences of of course and we have seen over the first leg of president trump's foreign-policy was more kind of radical for what we knew definin g u.s. foreign-policy now. it is shifting towards the tillerson camp. overall, in the overarching relationship, it is still one of very close relationship. i would not say that suddenly the u.s. is going to change and drive away from saudi arabia. there is the military component, of course, and president trump is very clear about what is good for the u.s. certainly, saudi arabia is very wantslear about what it from the u.s. i don't think we should believe and listen to the relationship w policy.
i think that's still a we are going to see all of these things happening. but shifting away a little bit or not a normal -- abnormal unexpected for what is happening in washington. tracy: elsewhere in the region, we also had a former yemeni president this week being assassinated by the iran rebels, just as he appeared to be switching sides over the saudi arabia. it seems the conflict has been escalating, more intense bombings from saudis. what sort of a drag is the yemen conflict going to be on the saudi finances going forward? john: i think as we see oil prices leveling off at the 60-plus area, and as we see supply being globally taken oil prices should continue their upward swing. that is good for saudi finances.
if anything, later this week, tracy, possibly next week, we are going to be hearing about the saudi state budget and definitely we are going to see the budget deficit around the 9% mark to gdp. very different outlook from what we had last year, which was a 17% deficit to gdp. in terms of saudi finances, saudi oil prices should continue their upward fiscal position isg far more healthier and stable than what we had a year and a year and a half ago. tracy: that improved budget outlook, does that come through all through the higher oil price or is that also some fiscal discipline on the part of the saudis? john: definitely coming as a result also, as you say quite correctly, from fiscal discipline. spending increased. what we have seen so far from the ministry of finance fiscal outlook, 5% additional year on spending. capital spending is not jumping a lot.
no oil revenues have increased quite a bit from what we used to know a year and a year and a half ago, to years ago. we will see the revenue increasing. what is now in issue is how will the economy kickstart, where is growth going to come from and what are the incentives the state will offer for the private sector to start energizing this economy. tracy: speaking of kickstarting the economy, we do have the federal reserve meeting next week. they are expected to raise rates. what impact will that have on the saudi economy given that you could argue that it is at a different position in the economic cycle? i know it has the dollar pegged, but certainly it does not want to be tightening monetary policy at this point in time. john: right, that is a very good question. i like the 2000 where at a certain point both economies were synchronized.
right now, the saudi economy does not want to have additional interest rates and that will be a drag on growth. that is why as wethat is why ast globally the fed to be doing in 2018 maybe three to four rate increases, saudi arabia has to follow suit, that will not be good for the economy. they have to think in 2018 will be the one or two things that will incentivize the economy in the higher interest rate economy which is not going to be all that good given that the two economies are out of sync from each other. john, directoru, of economics research at the gold's research foundation. blocking is through those interesting dynamics. up next, the outlook for oil is brightening. we did see the price of brent over $63 a barrel on friday.
tracy: this is bloomberg markets: middle east. i'm tracy alloway. let's take a quick check on the latest business headlines. the pharmaceutical is said to be cutting as many as 10,000 jobs. according to people with knowledge of the matter, it is ceo's attempts to pair costs. they were produced expenses by $2 billion over the next two years. activist investor bill ackman is likely to face a jury trial next month over claims he engaged in insider trading. this is in connection with the hostile takeover bid for ceo's attempts
to pa in 2014. ackman's management is accused of planning to take their offer directly to allergan's shareholders rather than pursue a negotiated merger. bitcoin futures in 2014. contract launched later today. it will make it easier to bet against the digital currency. gary cohn told bloomberg he is keeping an eye on what is going on. >> they have approved a couple of futures contracts. it will allow the people the ability to short it. there is never been a transparent market in bitcoin. we will see what goes on. it is an evolving market. the the italian soccer team inter milan plans to sell 300 million euros of bonds. comes 18 months after a chinese company agreed to buy a majority share in the club. according to a person familiar with the matter, it is to refinance debt. that is your bloomberg business flash. itlet's get over to the oil mart where prices have hedge tire
after near record chinese orders for foreign crude signal to stronger demand in the world's second-largest economy. shale next lower have suggested they are gearing up for a drilling surge in 2018. what could it mean for oil prices? joining us is robin mills. i have to start with the shale question. take a look at that chart behind me. it shows the wti calendared strip for 2018, the benchmark by which shale producers hedge their production. meanwhile, you have the rig count below it picking up slightly. are the shale guys going to come back? opec deliver them a massive christmas gift? robin: i think so. i think the decision reached was what the shale guys were expending, that they would expand their cuts. now that that is confirmed, you see strong futures prices that
gives them a chance to lock in prices well above the levels from which they are profitable for next year. we will see stronger support of the drilling. you have to bear in mind, this has been strong production growth despite the prices are very low. tracy: the other question i have for you is we have the agreement extended by nine months with a review in june. opec deliver them a massive christmashow seriously should we that review given the? hovering over russia's participation in the entire thing? robin:how seriously should we te that the nine-month thing has been a sleight-of-hand. there is always going to be a review in june anyway. russia wanted to get a three-month extension, with an option of nine months. opec wants to do nine months. both have been able to say they are happy with what is agreed. if the oil prices are significantly above $60, the
russians signaling they are happy with that, that keeps them profitable. they don't see a need to extend the opec deal if oil prices are above $60. i oil prices are still above, think there will be more pressure for russia to consider not walking th away but pushing for an exit. tracy: one of the other news was libya and nigeria agreeing to the 2017 production level, but we don't have details of what that means. it was not formalized in the press release either. how should we be interpreting that? robin: this is really like some secret annex. libya's production and nigeria, libya at 1.7. i think the production is so volatile. if they can produce above the limit, they will do so. i think libya in particular will
have particular producing one million barrels anyway because there is always problems at one or other field with blockades and protests and so on. there is been very little investment in the industry. a lot of damage in the fighting or the lack of investment in maintenance.if they don't get that, they will be declining anyway. i think eventually they might come under a camp but i don't think there is any practical investment. tracy: i want to move to the uae selling a have adnoc 10% stake in the retail gas distribution business. how much of a watershed moment is that for some of these national oil majors here in the middle east? robin: it is a huge moment for adnoc. orre are some possible ipos joint ventures coming up, nonstrategic units. it is a pretty significant move
for the middle east national or companies in general. any, which whole comp is the most interesting part. that has been going on for a time, moving slowly. a bit ahead of aramco and getting an ipo of one of its units away first. tracy: they won the race. robin: they had a good choice of picking a nonstrategic area for a straightforward ipo. tracy: we also cited energy ministers talking to his counterpart in the u.s., rick perry, saying there is a possibility of importing u.s. gas to make the region basically guess independent by the year 2030. is that kind of an odd one? you think middle east, you think drenched in oil, gas deposits in the region. but maybe the uae does not want to get them from qatar anymore.
robin: it is interesting. u.s. liquefied natural gas has already arrived. cargoes have come to the uae. it is not a first suggestion. this region has a lot of gas, gas reserves. struggling to get them into production to meet demands which have been growing quickly over the past two years. they're reforming their markets, introducing more renewable energy, nuclear power in the uae. certainly, it is good for them to have the option of getting u.s. gas. it is showing the exports are changing the world market. even some smaller markets could have access to imports without having to look to the big traditional exporters of energy like qatar. tracy: all change in the oil world market. robin mills, thank you so much
tracy: it is the middle east's answer to uber, but now careem is branching out. the ride hailing company has launched a retail venture featuring entirely locally sourced products. i'm joined by the company's cofounder and ceo mudassir sheikha. i have to start with the obvious question. what is the point of a ride hailing company launching a retail business? mudassir: that is a good question and one i have been asked a few times the last few days. platform foronline the region's boldest leaders to
come onto our platform and showcase their products and their creative things. for us, it's mission aligned on three dimensions. what is the platform careem as created opportunities for a lot of people on the region to come onto the platform and earn a living. we want to give the same opportunity to the creators in the region were not the best recognized and paid in the region. that is one. it also gives us visible presence in the market. otherwise, now with careem you will start seeing things. that third one is we have built vast logistics network with people transport. careem will be in avenue for us to showcase our abilities of the transportation of things. we will start experiencing with on-demand logistics. tracy: is that of future business for you, logistics? mudassir: we said we always want
to be the largest people of things in the region. people has been the business for the five years. the movement of things will be a feature for the next five years. tracy: how does that feed into your actual revenue stream? when will you be profitable mar and when will you start disclosing some of your finances? mudassir: so, we are still a private markets company so we to keep that information closely guarded. is thee profitability court objective at the moment. we are still in the very early stages of this opportunity. the mobility opportunity in the region and the broader income opportunity in the region is worth hundreds of billions of dollars. we are still in the phase of landgrab, as they call it. get as many people on the platform as quickly as possible so they can start using mobility and overall internet products in the future. if i have to give you the
timeframe, would be 2019-2020, in terms of raw ability. tracy: i feel like it keeps getting pushed back but maybe i am wrong. let's talk about fundraising because we have seen so much interest i in the technology space. we have seen saudi arabia with a big softbank investment. abu dhabi was doing a similar thing. is now the time for you to raise more funds, you need more funds? mudassir: it has been a great last few years for technology businesses in the middle east. to give you an example of the opportunity, the region spends about $1.8 trillion. only 2% of that goes online today. that 2% becomes 10%, 20% -- we are looking at a half trillion dollar opportunity for online businesses. it is not a surprise more money is becoming available to technology companies in the region. we have had some successes in
the recent past so i think more people are becoming confident in investing in technology both locally and global businesses. tracy: very quickly, speaking of fundraising, one of your investors is prince alawite. we know he has been arrested. has been impacted you at all? have you heard from him? mudassir:people are becoming con business as usual in saudi. we continue to grow rapidly in saudi. things that are happening at those levels are not impacting any business on the ground. tracy: mudassir sheikha, thank you for joining us this morning. we are counting down to the market open in the emirates in over an hour. lipe.ng us is believfe we have some big news in abu dhabi. >> we have the final pricing of the distribution in unit of
adnoc. it came out in friday. the markets were closed year. million which is the equivalent of 10% off their state in adnoc distribution. that is equivalent to around 1 -- 25 billion shares./ in this what we are seeing, we see the volume of trade in abu dhabi. 2014, weee in 2013, were at levels much higher than we are standing today. with this operation from adnoc, we expect people in abu dhabi are hope all this could bring some liquidity to the market. it could attract more investors. it is a very big name. it is seen as a very good stock because it is unique. you don't have a lot of exposure to oil and abu dhabi maybe we could see pick up in volume
going forward from the level we are now. tracy: abu dhabi kind of killing two birds with one stone. they are trying to boost their own capital market and get adnoc into the market. aside from abu dhabi, what other stocks are you watching today? a very a name that is interesting story. we talked about this during the show. the company is going through a major shakeup. we had the announcement over the weekend, cutting up to 10,000 jobs globally. on friday, we saw the stock rising considerably in the u.s. tel aviv, while they were so trading on thursday. today, we could clearly see possibly a reaction in tel aviv. it should be the stock most traded in israel today. tracy: that has been a fascinating story, the development of teva
♪ jonathan: from new york city, i'm jonathan ferro with 30 minutes dedicated to fixed income. this is "bloomberg real yield." ♪ jonathan: coming up, payrolls beat expectations, but wage growth leaves economists disappointed. municipal bond issuance explodes for a record month as investors try to get ahead of a tax bill. and wall street pushes back, the first full junk-bond deal of december. we start with the big issue, payrolls deliver, wage growth disappoints. >> this is a solid report. the topline number is spot on.