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tv   Bloombergs Studio 1.0  Bloomberg  March 2, 2019 11:00pm-11:30pm EST

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algeria's president to step aside and next month election, protests in the streets against the ruler. >> israel's attorney general says he plans to indict benjamin netanyahu on bribery charges. it could cost in the election. launches its dragon
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craft. the international space station, the rehearsal for the first manned space flight from u.s. soil since 2011. >> it is 8:00 p.m. across the emirates. i am yousef gamal el-din. >> i am manus cranny. the one-to-one conference right here in dubai. we have a cracking showed lined up. the group chief executive. there are ipos aplenty. where does he want to expand the business? we will have that conversation throughout the day.
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good morning. >> good morning. some interesting developments across asset classes. three-day losing streak broken friday in the united states. let's go through those highlights. a rally in tech companies propelling the benchmark to its fifth consecutive weekly again above 2800 for the first time. u.s. 10 year yields at 2.75%. u.s. drilling rig activity hitting a nine-month low last tradeeighing on the crude , wti down 2.9 for percent. hedge funds increase their ,agers on rising brent prices the longest streak since 2012. look out for the rand and the rupee, the most vulnerable to dollar strength due to weak domestic fundamentals according to woodman asset management. let's check in on first word
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headlines from around the world. good morning. >> thanks. the u.s. and south korea have agreed to and two of the biggest joint military exercises, a move which could act as an olive branch to kim jong-un after the failed meeting with president trump. he is facing new pressures up to the talks collapsed. summit,pite the failed president trump says the relationship is very good, but pyongyang's nuclear arsenal remains a sticking point. has anh korea incredible, brilliant economic future if they make a deal for but they don't have any economic future if they have nuclear weapons. it is really a bad thing for them, so we will see how it all goes among but i think it is going well and we have learned a lot over the last couple of days , and again, the relationship seems to be very strong, and that is important, especially when we are dealing with this kind of situation. file below schwarzman has
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stepped down temporarily as the largest ironrld's ore producer as it comes under scrutiny to prevent a second deadly burst to a dam in brazil. anwill be replaced by executive director of the interim ceo. mounting for the algerian president to step aside in the month selections. police word to cloyd and force as thousands of protesters marched on the algerian capital, some of the biggest demonstrations yet against the ruler who had a stroke in 2013. government officials have lm to preventca triggering unrest. in israel, prime minister netanyahu has slammed the attorney general's decision to indict him for bribery as an unprecedented witchhunt. the news came 40 days before the election. a new polls to just the charges could be enough to swing the
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folk to the centerleft opposition. elon musk and nasa scored a big win after space x launched its unmanned crew dragon craft. the rocket is slated to dock with the iss around 6:00 a.m. eastern on sunday. it is addressed rehearsal for the first manned space flight from u.s. soil since 2011, and also marks a milestone for elon musk's ambition of enabling humans to live on other planets. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you very much. president trump the u.s. dollar is too strong and taking a swipe at the fed chair as someone who likes raising interest rates. at a rally in maryland, the u.s. presidents of the economy is doing well in spite of the actions of the central bank,
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saying i want a strong dollar, but i want a dollar the does great for our country, not a dollar that is so makes it prohibitive for us to do business with other nations and take their business. on the trade front, president trump says he has asked china to immediately remove all tariffs on u.s. agriculture, including beef and pork, citing progress in talks between the two nations. quite a lot to consider, to weigh risks in the market. the managing director and head of microstrategy joins us now. this is the farthest away from shore i have been. good morning. president job owning the dollar again. it is too strong. i'm just wondering is the path of least resistance for the dollar gone, trade deal pension on pause. month becausecky
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you cut a strong recovery and markets this year. oil is up and emerging markets have had great performance. a lot of flow as well. three months ago, expectations on rates did 180 degree turn. everyone thought jerome powell would be raising. markets did well. he's looking at markets and u.s. growth. there are indications he should think about raising rates again. the u.s. economy is doing well, employment is doing well, and markets are healthier. manus: some people say we dodge the bullet growth on friday in terms of the gdp numbers. surveys, some of the we have this in the library, the atlanta and new york fed surveys, they aren't as if yousef. there is an interesting downturn in some of the recent data. you think about what happened at the end of last year, early this year when you had the business with the government shutdown, when you
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had the fed tightening, it is surprising that growth is so strong as you look in the employment data. it is not a disaster. tohink the fed still wants create as much room as possible to be able to cut when things do take a downturn. manus: do get the sense that powell has boxed himself in. it is a tricky game to play. he is really pushing the boundaries on what is acceptable to say, but he does have market supporting him. when you have markets the strong, unemployment this low, it does create a little room. he has to be careful. he has that to weigh risks. i'm prepared to walk away. he's not talking about north korea. he's talking about china.
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i have never been afraid to walk away from a deal, and i would do it with china. this is the same rhetoric we saw on friday. this is pure art of the deal, which is about two-way risks. willingness toes compromise on the chinese side, so why not push further and ask for the agricultural tariffs to be relaxed? he does see an opportunity, but also has a close eye on his election timetable. he needs to be able to results and people benefit. china is back in bull territory. shanghai of 20%. i see the msci is set to boost the weighting. this has spillover effects. buying.ion of net china? tempted by are we fools rushing into an open door? >> this is fairly well
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telegraphed. have a lot of expectations built in recently on another chinese stimulus. i we not getting a little ahead of the game question mark? emerging markets up 10% year to date come a so some strong flows into emerging market funds. it's a time to be cautious? is rates, butng my favorite is the nasdaq. the longest winning streak since 2012. one thing that has been pervasive with many fund managers has been those battered pockets. tech has really had a relief rally. if you look at the markets am a china is on fire, americans are dancing to new highs. which area of the market has the ability to run higher if are going to get one more hike this year? >> i am skeptical on tech.
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has beenbeen positive the sorting out of the wheat from the chaff. some of those results stronger than they were guiding initially. that is a positive sign. he may want to be looking again at energy. i think the oil price rally has come through, but the price performance is not come through a strong. manus: we will get to that in just a second. we will catch up with our guest at the summit. yousef: let's get you a preview of what else is ahead. we will look at uber's latest plan to expand in the middle east. up next, digging into regional markets, including the crown jewel in the crown for emerging market bond buyers. this is bloomberg. ♪ this is bloomberg. ♪
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yousef: let's get a quick check of the business flash headlines. talks to buy a
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dubai-based rival. the companies may announce a cash and stock transaction in the coming weeks the device the company at $3 billion. it would expand ride-hailing operations in the middle east. lyft has filed for an ipo. lookrospectus is giving a at the company's finances with revenue of $2.2 billion, but a $911 million loss. bloomberg has learned that the banks working with the company have narrowed the valuation between $20 -- $20 billion and $25 billion. mclaren ceo says he does not see the company filing for an ipo in the two, but it will become an option. the ceo of the bahrain sovereign wealth fund says it was open to the idea. an investor in the british
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maker of supercars. >> we want to communicate this is not an emotional investment, despite what maclaren is all about. it will relies value, an ipo is one of the options. >> do you need the money? >> we don't need the money. we are well finance for what we're doing. >> that is your bloomberg business flash. manus: thank you very much. good to have you back in dubai. let's talk about what is going on with the company selling a portion that has been oversubscribed. 100company plans offers million ordinary shares on the egyptian stock exchange, representing 4.5% of the issued share count of backers. my guest host this morning's managing director and head of
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microstrategy at efg. you know about eastern tobacco. how is it going? >> the market has been looking for new issue in egypt for some time. last year was at disappointment. this year, local institutional money has been coming back. manus: is local institutional money changing this deal or international? >> i don't know. there is a lot of interest in egypt from all directions. manus: let's dig deeper. the bond market with something which really captured our imagination. we returned 5% in local terms. let's look at this graphic. it is one of the strongest in the region. that is where we can get a flow of money. this is foreign instance of to show money chasing yield, or local money? >> this is a lot of fenster national money. the carry trade is back on. that fed pause, strong
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performance from e.m. markets, and a real carry trade flow. you've even seen movement in the egyptian pound am a very steady last year, and getting stronger this year in response to that flow. manus: when i get stronger again on the back of australia. >> it will be more volatile and respond more to capital flow in and out. in egypt, you have an underlying current account that is getting better, energy coming through, tourism coming through in exports better, so a positive basis in egypt. manus: ok. talk to me. we did a story on thursday. there seems to be a pivotal turning point in our domestic market here. what is it that has grabbed the consciousness of the investor? >> i think it is valuations. after performance the last couple of years, the markets,
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the divide market in particular, are looking very cheap. it is surprising because it is a well owned market and has been a favorite for foreign institutions for years. let's see how long this lasts. what you have also got his saudi as a big story still in play. that is a relatively sure thing. that is something they can get on board with. what is deathly value, but is the catalyst for a big re-rating when it is well-down? , buts been a great month i'm not convinced it will lasted the rest of the year. manus: in terms of flow of money, this perennial story, every fund manager tells us, the foreign ownership story is the diversityk is the that the stocks really need. that uae is ahing
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laggard on that. you seen what saudi has done, the kuwaitis have done. manus: you think we are behind. time, the uae was the most docile market. it is still the most owned market come of been in terms of changing how easy it is to get in, uae is a laggard. there is catching up to be done. nbd opening up, but there is more to be done. there is $3 billion plus that is there. manus: thank you very much. i have had a good on that. i have to say the food is very good. we are on the palm, living at large. i am missing out again. i will have to follow up later in the program. an excellent conversation there. let's get a snapshot of what is up next. bill gross takes off into
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retirement, but not before his thoughts on the u.s. debt situation and barring outlook. her interview is next. this is bloomberg. ♪
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yousef: the bond kenya's down now. bill gross was the biggest name in fixed income. , he has a fewres more surprises up his sleeve. he gave us his thoughts on death, global deflation, and why u.s. government borrowing could go much higher. builds up in interest, it becomes a burden and deflationary ultimately if rates rise, even if they don't demographics are depressed, deflationary. for older people like myself,
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even in their 60's, you know, don't spend as much. they don't need another house, another car. they need more health care. that is about it. technology is very deflationary from the standpoint of computers, but also amazon. amazon is deflationary. the prices are low. those are three substantial structural situations which are changing. death is not going to change. technologys, we know will continue, so that is deflation. the central banks are fighting it. with quantitative easing and low interest rates, they are saying we cannot deflate because the burden of debt is too large. if we deflate, then companies will go under in the great
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like a funill look the world'ssed to largest roller coaster. it is this battle between central banks, low interest rates, and the deflationary forces the continue to exist. the question is can central banks inflate? it is a toss up, point click. >> let's toss fiscal policy in the mix and let me ask you about modern monetary theory. think in terms of monetary and fiscal policy that they are co-joined, are becoming more and more the same, one in the same. the fed and central banks are their own separate thing, and
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yes they accommodated the it atry by buying to keep a certain load, but in japan, the doj buys everything that the government issues. they are the same. , in thease of europe last five years, it has been 30% of 40%. in the united states, 20% or so for a while, no longer. so they are almost one in the same. the bubbleost like in a way. fiscal policyd thetogether, then why can't government have a $2 trillion deficit if the fed is going to buy it, like they do in japan? some would say it would be
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inflationary, but it hasn't been because of these deflationary forces. , i would say trump or the next president whoever he or she is could go to $2 trillion that the fed is willing to accommodated. yousef: fascinating thoughts from the cofounder of pimco. that is bill gross speaking to erik schatzker. a crucial of 11 days for china's economy begins this week when leaders gather to thrash out year, ass for the policymakers try to stabilize growth amid concerns with trade and debt. our china correspondent tom mackenzie has more. >> china's national people's congress is the biggest political event of the year. officials including leaders, provincial cheeks, military officers, and company executives will be in beijing to rubberstamp the parties policy
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goals. the premier will kick off event tuesday, unveiling a work report outlining this year's priorities. annual growthe target. economist expected to be lowered to a range of 6% to 6.5%. investors will be listening for lines on the fiscal balance, inflation, money supply coming credit growth. officials will review a draft law protecting property of foreign investors and banning forced tech transfers. both are key u.s. demands in his trade tussle with china, and will be closely watched. china's economic growth, debt, and trade in focus as this major meeting gets underway. tom mackenzie, our new anchor of our china program. will happen at the trade talks at the national people's congress this week?
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who is prepared to walk away from the deal? we know donald trump did with north korea. there is huge sentiment in the markets. we will talk with one ceo here. he is here. that is next. ♪ this isn't just any moving day.
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yousef: a live shot in dubai. roger federer became the second tourplayer to win 100 level tournaments in the present era. let's look at headlines from around the world. president trump says the u.s. dollar is too strong and has taken a swipe at jay powell is someone who "likes raising interest rates." the president said the u.s. economy is doing well in spite of the actions of the central bank, saying i want a

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