sentiment, concerned that the play out.ay notl i want shift your attention toward egypt. over 9%.stry stock up first word headlines from around the world. rishaad: the senate confirmed just sessions as attorney general after more than a day of contentious debate. they boarded 52-47 after 30 straight hours of debate. democrats say that the alabama senator was to close the president trump and would not protect civil rights. republican candidates say that sessions will enforce the law above politics. the white house says donald trump has looking forward to the construction relationship with the chinese, one that benefits both countries. he is not followed through to label beijing a currency manipulator or put tariffs on chinese imports. british prime minister theresa may closer to triggering brexit after the lower house of parliament gave approval to begin the formal process of leaving the european union. that bill in house of commons was approved. lawmakers promise a vote on the final deal to stave off the revolt from may's own conservative party. the final vote expected on march 7. is

sensing a theme in his conversation, all about the benchmarks. yousef: i want to cross over to egypt. i pulled up the start in which our viewers can do as well -- i pulled up this chart, in which our viewers can do as well. of egyptian stocks. what are you saying in terms of trends on the back of that circled area, which was a devaluation in november? egyptt we are seeing in is a huge increase in net foreign inflows. the currency has overshot. on the economic side, the reforms the egyptian government is doing. the rally in egypt is about 20% since the float and that is positive. we are buyers of financials in that market. real incomes have been hit really hard. if you look at the banks, you have about 30%. for the industrials, they are coming back from a very low base. there is more scope for the egyptian story. tracy: when it comes to egypt, we are expecting an update from ftse and that update could come when investors are still concerned about the ability to get money out of the country. >> last thursday night, they said they are removing the restrictions they have imposed on egypt be

growth around 2.5% here, so well below what we saw. does this lead egypt? we saw a lot of investors put money back to work in egyptian stocks. we see a lot of money in it just in government bonds as well. is he just going to be of the outperform or in the next six months? tracy: but the pmi was quite disappointing. yousef: it was, it was. great question. egypt has gone through a difficult time. they are in the middle of a balance of payments crisis, yousef, and that rebalancing of the economy will take time to basically unwind. we are optimistic on egypt over the long-term, but i think it's too early to say they will outperform in 2017. if you look at the pmi numbers, companies on the ground are struggling. consumers are also struggling as well. and that's the largest part of the economy. from my perspective, when i look at egypt's outlook, one thing i am looking at our ebbs and flows. is happeningf what in saudi arabia's nonoil economy, particularly the weakness in employment growth, which is important for a lot of egyptians, that's going to be a onative outlook, i dragged egyptian

. performingthe best sector. egypt up and .6 percent, finally bringing that series of losses to an end. and finally a quick note as well on what is happening in terms of the key currency indices. take a look at that will strengthening .3 percent. the egyptian pound is strengthening, the u.s. dollar line, and again also some interesting moves in the south african rand. tracy: we are going to be talking emergency market -- emerging markets currencies later in the show. let's check in on first word headlines around the globe. here is doubly humphrey. here is dudley humphrey. >> thank you, tracy. mike pence in his first foreign policy address since becoming vice president said the u.s. would be unwavering in its commitment to nato and president donald trump would stand with europe. he also said that the u.s. would demand russia honor a deal to end violence in eastern ukraine. the euro'sel said valuation is out of control and s are to blame for germany's trade issues with the u.s. these comments came ahead of her meeting with vice president mike pence, in which she said trade issues would t

over for egypt? and just afrom cairo moment. this is bloomberg. ♪ yousef: welcome back. you are watching bloomberg. we are taking a live look at asian markets. mostly in the green. take a look at the gm go function. groundanese yen gaining about a quarter of a percent. trading weodities are seeing base metals leading the decline, steel down one and half percent. when it comes to sovereign bonds you want to watch the 10 year yield. sale ofave that record bonds in australia. that went for 11 billion australian dollars. something to keep an eye out looking at the markets in asia. what are you watching? yousef: we are gearing up to a busy trading day. including earnings announcements from the commercial bank in qatar. -- stocks made marginal improvement. 2016, the estimate was 318 million. we have also got qatar islamic bank increasing the limit on the tier one to 7.5 billion euros. world. dp , that couldribunal see movement on the stock. global telecom holdings, that is your stock in egypt, one of the bigger ones, global telecom is to pay for iraq. that will be a key one to watch.

around the summer of last year -- before you head out, i wonder take on egypt. that is the very top of your radar. is certain to look more positive. there were two main catalysts on the egyptian pound november, combined with the signing of the three-year deal, a positive catalyst. they have to some extent renewed international investors-interest. theaw the latest on majority of investors, they were international investors. there were rumors that the egyptian government is also working its team to clear out the backlog for international investors that want to put in money. yousef: always great to have you on the program. he is the head of eem credit research for commerzbank. coming up, we will talk about president trump's new direction for the middle east. what it will mean? ♪ with x1 you get the best of the oscars. you're a funny guy. funny how? how am i funny? scorsese finally wins. could you double check the envelope? show me best picture. what's the difference? show me best actor. i do not take tonight for granted. thank you so very much. get all the greatest scripted and unscript

arabia, up low volumes, pressure, report sales were car weakening in egypt, the lowest 45-6 years. kuwait had been standing after the massive selloff and profit taking, 20% in less than 60 days. that market taking a break. shery: thank you. let's check in on first word headlines from around the world. francisco's court hearing on tuesday, considering the trump administration's appeal to reinstate the travel ban, saying that the decision to suspend the ban was "vastly overbroad." the european central bank president has criticized donald trump, saying rolling back financial rules would be worrisome. to the european parliament, mariota drug he hit germanyinst claims that is taking advantage of an undervalued euro. >> the european central bank has not intervened in the foreign currency market since 2011, and that as part of the intervention to stabilize the yen. rishaad: the aussie dollar reserve bank of australia cash rates on hold at 1.5%. the decision was foreseen by 27 of 28 economists. it eases the impact of slower economic growth. inflation remains below target range, but cutting rates

, for egypt, and oman. there are opportunities around this. we continue to look at these opportunities. but ua there is more certainty n the legal framework -- we continue to look with interest. yousef: up next, the u.s. immigration ban on several countries in this region sews plenty of confusion and bitterness. we recap the reaction next. this is bloomberg. ♪ yousef: welcome back to the best of bloomberg markets: middle east. donald trump's executive order banning immigration from seven countries so confusion around the world. airlines were scrambling to figure out what it actually meant for passengers. tracy alloway has mo. >> the most interesting reaction we have had from the middle east is probably what has been coming out of iraq. we have parliament members urging their government to create a reciprocal ban on u.s. citizens getting visas for the country. buts a nonbinding measure it is indicative of the emotions and controversy stirred up by trump's executive order last week. the other interesting thing overnight was one of trump's aids said saudi arabia could be included on the

allowances fell from almost 120 million. the board is promoting dividend of 45 to fill the share. >> egypt commercial international bank posted results that met expectations. the lender said the outlooks for 2017 remains ambiguous citing recent macroeconomic developments in the banking sector. >> russia and european officials have weighed in on iran's missile launch after the u.s. announced and amended in emergency meeting of the security council. iran dide confirmed have a missile launch testing on january 29. and we unacceptable wanted to bring that and do it urgently. iran looking at these missile launches? what is the legal framework of whether it is or is not allowed to do that. have a military program which is a solid defense program. what is happening now is looking at the legal framework around that. it is important to know iran's missile program was not part of the nuclear deal negotiated with european and u.s. countries. it is creating some issues. that is a resolution that calls on iran's and not be having activities relating to missiles that are able to carry nuclear weapons. i

late in new york for us. thank you very much. those are to this region, egypt's annualized urban price inflation jumped the most in a decade. prices soared after cairo abandoned its currency pegged to the dollar. yousef, this is a story very close to your heart. prettylation figures are astounding. we saw the egyptian central bank basis points. it's painful for people on the ground. you have a more positive take. it's a i would not say necessarily positive take. it's just putting it in context. a lot of the people we've been speaking to of been putting this out. you compare the inflation rate month, anvious increase of 5%. you've got people trade. grain bread up 9%, milk, cheese, and eggs up 11.5%. this is food and averages. theoff the back of devaluation, this is part of the wider agreement to secure the $12 billion bailout or support program from the imf and so far it has played into the inflation figures. it will test to be central bank. how will they tackle this problem? cut offn't want to any growth potential. it is a balance that a lot of central banks face every month. tracy: ri

♪ yousef: egypt's price shock, the prime minister said inflation should he can the first quarter after searching 28% in january. we speak to him exclusively. asian stocks extend 18 month highs, the yen weakening as japan's fourth-quarter growth disappoints. gains on opecse cuts, but she'll could mean that the honeymoon is over. jay y. lee faces prosecutors on bribery allegations. is 8:00 a.m. across the emirates. welcome to "bloomberg markets: middle east". , andyousef gamal el-din with me is shery and out of hong kong. shery: it looks like bat reflation trade may be far from over. we're talking about that shift from global lawns into equities continuing as inflation expectations rise. ,ook at the gmm go function markets following that global h-shares climbing again, the longest winning streak in two months. also, the japanese yen losing ground, .6%, helping the nikkei topix get a boost. copper leading the gains and metals, up 4.8%. stillopper mine in chile closed as bhp workers go on strike. you are looking at treasuries in the u.s.? yousef: yes, specifically foreign holdings of

the uae, saudi arabia, and egypt. are more certainty in the legal framework on how to do business, we continue to look with interest. >> up next on the best of bloomberg markets: middle east, the u.s. immigration ban on countries in this region caused plenty of confusion and bitterness. the key -- we recap the reaction. this is bloomberg. ♪ >> welcome back. donald trump's executive order banning immigration from seven countries caused confusion at airports around the world. bloombergs -- >> the most interesting reaction we have had from the middle east is probably what has been coming out of iraq/ . iraqi parliament members calling for a reciprocal ban from u.s. citizens getting visas for the country. it is indicative of the controversy stirred up by truck -- trump's executive order. what further stirred things up thatrump's aide telling saudi arabia could be included in that executive order that has the potential to redraw the regions political lines and alienate one of the u.s.'s biggest allies in the region. >> this has caused quite a stir around the world. do we know what ha

israel, which has had a long-standing conflict with arab nations nearby, not with egypt and jordan, but further a field with the arab countries in the persian gulf, primarily saudi arabia, which is the dominant power there. our story is about how over the last 5-8 years some israel he businesses led generally by former israeli intelligence people have done very well helping the gulf on security matters. the israelis excel at cyber security and other computer-related security defenses, and they have then extremely helpful to gulf-arab countries, including saudi arabia, and that is a shocker because very little has been documented in the way of israelis and arab countries working together, and we do so quite extensively in this business week issue. carol: talk to us about his company and what he is doing with some middle eastern countries. >> he runs a company which is a company, a data miner that finds things in the deep web. they have contracts with the nsa, cia, fbi and the united states. he got a call years ago from a saudi person -- oliver: he is probably not quite used to it? >

weakness in property stocks as well. egypt, we are seeing foreign investors taking profits, following the index down a little over 2%. headlinesow taken on from around the world. >> president donald trump delaying the release of his revamped immigration plan until next week. official terms said the new executive order would be announced this week. causedginal plan confusion or u.s. air force, triggered protests, and was blocked in the courts. treasury secretary steve mnuchin dollar jirga's confidence in the u.s. economy and its appreciation over the long-term is a good thing. gains in theent dollar to support for donald trump who said before winning the election that he favored a weaker currency. independent french president candidate emmanuel macron has agreed to an alliance with his rival. polls show marine le pen leading . >> i believe that if he wants to for french politics, he should abstain from being a candidate. he represents only for the time being 5% or 6%. alreadythe situation is complete and i don't believe it will be very positive to have another candidate. >> south korea

sentiment. egypt extending losses. quite a downturn, down 7/10 of 1%. with the turkish lira, we got a factorst the underlying faced geopolitical risks and rising global interest rates very much in place. all of this with turkish shares at a 20 month high. let's check with the first word headlines from around. >> the white house says it is putting everyone on notice for posting ballistic missiles. michael flynn says tehran's actions were in defiance of the security council resolution passed after the 20 team deal. -- the 2013 deal. that is disputed by the eu witnessedtrump has the swearing in of former exxon ceo rex tillerson as secretary of state. vote saul centers split among -- saw lawmakers split among party lines. some saying that tillerson's business connections allow him to make decisions abroad. president, id as served their interest and will always represent the interest of all of the american people at all times. >> the bill to take the u.k. out of the european union has passed its first test in parliament with lawmakers agree to allow the prime minister to start negotiations

banks performance and paid out as long as six years. -- mussina -- merging with egypt's two of asia's biggest technology companies are joining forces. with foxconn. identifyingwill be targets their investors, but not said what areas it will focus on. that is your bloomberg business flash. >> global tech leaders are gathering in barcelona for mobile world congress which kicks off today. the event will host panels on ai, 5g, the future of telecom. caroline hyde is there. she sent by with the guests. -- she is standing by with a guest. i'm joined by ceo of telenor. meetingwith the gsm a yesterday. 5g.e are thinking about 5g is probably three or four years into the future. the distributors taking our business. that is why we need to be prepared. how hard is it to monetize? you are having to invest more more in infrastructure. >> it is really hard. more spectrum, more investment into the data network and to monetize that is hard. we are trying to do to full. alsos good pricing, but introduced our own services so .e are trying our best servicesing to medical , trying to do our part to be pa

egypt. that is why we have taken decisions to grow our business in the middle east, and one of the new opportunities is iran. we are working with the iranian national oil company looking at two together fields, and we are presenting to them are proposals in terms of how we would develop those fields if we were awarded a contract, and what would be the economics for the a rainy inside and for lukoil, but iran is not the only country we are looking at. we are actively in discussions with the government in oman for opportunities that exist there could we are looking at opportunities here in the uae. as you know recently, we have extended the license of the onshore fields and we will be looking at finding new partners for the offshore fields in 2018. we are looking at opportunities in kuwait and other parts of the middle east as well. would you be interested in bidding for the next round of offshore oil concessions in double-double --abu dhabi? opportunitiesall being brought to the table at the moment are of interest to us. the number one priority is the economics need to make sense for bo

the opportunity to react to be fed minutes. egypt, we are thing downward pressure as well, qatar being pulled down. let's cross over to the first word headlines. >> thank you, yousef. warren buffett's richer halfway has posted a 15 sit rise in fourth-quarter -- berkshire hathaway has posted a $.15 rise in fourth-quarter profit. precision carand parts were acquired by buffett last year. -- duracell and precision car parts were acquired by buffett last year. this coincides with buffett's annual letter to shareholders. stated way from politics and focused on his critique of the investment space. $1.5 billionto being wasted due to the rich being swayed by that advice from wall street. over the inquiry of russian interference in the u.s. election. the u.s. election. associates in moscow. many are slamming the trump administration decision to outlets from a news briefing. outlets including senior times and cnn access. this comes after cnn reported chief of staff reince priebus had inappropriately discussed the russia investigation with the fbi. two newsled the organizations "fake news"

terrorist attacks of north africa, egypt and tunisia has prompted-- have capacity into portugal driving down yields for ryanair and lowering ticket prices. 13%-15% decline in ticket prices in the third quarter. it is already down 17%. it has been a tough winter. guy: michael o'leary usually talks about tough winters being good for his business. that is not always true. easyjet is not looking quite as good as ryanair's scenario. it is about unit costs. ryanair has upgraded the guidance for lowering costs down to 3%. easyjet will increase. they are forecasting flat costs. it will be interesting to see how the shares react. you could interpret today's results -- they could be well-positioned to benefit from here on out. they were 1% higher than brian air thought would be possible. phasing into their load strategy. an interesting time for the european carriers. matt: the load factor. on easyjet, 86.2%. even though they are doing better than the same reporting period from last year, they are nowhere near that this year. will they take capacity out or will they not need to do that as travel picks

the demand is, but there is also a range of new customers. i stand, the middle east, egypt. a whole range -- pakistan, the middle east, egypt. it is a tradable world commodity at the moment. there is a connection in pricing and supply around the world. i think that will encourage competition, especially from the u.s. pricingf reasonable gas will stimulate demand, and i am very encouraged by that scenario. haidi: the market in lng and in guinea, how much progress to anticipate making in 2017? guest: we've had a number of discussion with those parties over the last 12 months. discussions the have been delayed by clarity on is entering. mobil thee is a transaction and canadian court which approved the transaction to go ahead. that is the trigger to meaningful discussions on how the various project can cooperate and work together. the size of the economic price for that quiet operation is enormous. in these sorts of levels of resource pricing, i think private and big companies like exxon cannot ignore it. generation, a a crash in crude prices. is the worst over? guest: i think i've seen

players in the market right now, companies like egypt and pakistan, for example, and more recently in january, we have seen the 13th five-year plan come out of china, and china is committed to more gas in their energy over the next five years. the important part of that is the details, and what you are seeing is gas coming out of ofsia, less coming out unconventional in china itself. peter: that means it is bigger. haidi: there is two things at play here, put the case forward for developing the offshore -- entre rather than floating. do you think other venture owners, shell, exxon, are going to embrace that? will you see that cost-cutting come through? known in the upstream part of it, so the answer will be, whatever is the best commercial outcome, so what we're saying is, let's put the best competitive case forward weekend for the onshore and use the infrastructure and try to get the best out of the capital. if floating turns out to be the best case, that is simply because it is the best commercial outcome, so either way, woodside investors are winners in this. haidi: windy you expec

of ♪ yousef: egypt's price shock, the prime minister said inflation should he can the first quarter after searching 28% in january. we speak to him exclusively. asian stocks extend 18 month highs, the yen weakening as japan's fourth-quarter growth disappoints. gains on opecse cuts, but she'll could mean that the honeymoon is over. shery: