It is just midday. Welcome to Bloomberg Markets. With resources and energy just some of those gains, Goldman Sachs reaffirming its bullish stats. Oil, feeling some downward pressure today. Oil in focus once again. Euphoria, saying this is aliance , on thewant to show you panel, it is now the highest since 2014. The bottom panel, that is your crude price. I want to point out that libya is exempt from this agreement. The thinking was that the two countries are facing unrest and as a result they dont have to take part in the production cut. If the libyan rebound continues it could possibly derail the ambitious plans g opec and nonopec have. Oil, we haveout bets from traders thinking that in new york and london it would converge at some point in december of 2018. sw with this talk of trump border tax that could diverge. Take a look. Those bets are falling. The end of this year. Given that we have a Republican Congress that could move in favor of u. S. Produced taxes, gaining over a brand when it comes to prices because of tariffs. Atare seeing the trading three dollars a barrel. Interesting tois keep an eye on, will prices converge or will they not . We are two hours away from the opening of trade. Yousef we will have plenty to look forward to and reflect on in this part of the world. It has been a fascinating trading day. The oil price playing into sentiment. The dow was up 1 . You have telcos, you have utilities. Also across to egypt, we saw quite a bit of movement, extending the gains we saw in earlier sessions. Whats happening with the turkish lira, a real Rate Decision feeding into the liquidity operations. We look forward to a decision by the bank. That is it 9 30 a. M. Im keeping an i on the japanese because it is strengthening again. The topics are regaining gains. Lets see how the market is training in the asiapacific. Says it is ais positive session here in asia. At that record high, we are seeing fluctuation in the yen. The nikkei is holding on strong. Not being biased but one marketer you should look at is the australian market. We have seen this strong surge come in. We are starting to see demand for these medals. One of the best gainers in the region today. This is a company that has a joint venture kicking things off in the u. S. Corporate earnings season impressing investors. We are watching the market very closely ahead of the new year break coming through over the course of next week. We have been seeing quite a lot of money going into banking stocks. The Hong Kong Market looking quite solid. Theirt front around coming through from some of those property stocks. You see these emerging markets on the back bidding of that rally we had in malaysia and jakarta. Have a quick look at currencies. Ground, thesome weakest since january 9. Down 2 10 of 1 against the dollar. Quickly having a check on the japanese yen, it is gaining some strength with that 113 hand. We could see it rally back. The all is under pressure. They were weaker than expected. 1 . Are off by a half of first world headlines from around the world. Runapan snapped a 14 month of exports, down to a global pickup in demand. Rising. Under pressure in tokyo, this is mishandled data. November. Overed in shares plunging by 6 after toshiba said they would confirm that. Reports in tokyo saying the company may spin off its Nuclear Operations or sell toshiba hospital. Donald trump has offered incentives to attract new plans to the u. S. Meeting the ceos of chrysler and ford. He said he would reduce taxes and regulations. They have not built in the u. S. Since 2006. Demanded a better deal for the government. Saudi arabia, containing iran while strengthening times with the united states. The country shares President Trumps view on making sure they abide by the nuclear deal that led to the lifting of sanctions a year ago. They are going to renegotiate the agreement that was opposed by riyadh. He spoke about containing iran and making sure that iran abides to the letter with the Nuclear Agreement that was signed. This is exactly our position. We look forward to working with him. We have the world covered for you. The u. K. Government may have to rethink its Brexit Strategy after failing to win its court appeal. Lost but thee brexit war goes on. The ramifications for britain and europe, it certainly complicates matters. It does. Eu theo doubt the u. K. Will exit the European Union. Maybe not as quickly as theresa may would like but the High Court Ruled she has to get a vote from the British Parliament to trigger article 50 of the lisbon treaty and leave the eu. She cannot just do it with a royal prerogative. She did win on one issue. The High Court Says scotland, wales and Northern Ireland can vote. That was something for her. To get this going there has to be a bill presented to parliament. It has to go through five stages. People are wondering if she can meet that brexit deadline. The u. K. Brexit secretary made it clear they are past the point of no report on of no return. X this government is determined to deliver on a decision taken in the referendum to leave the European Union. We will move swiftly to do just that. Its interesting that there was talk from the labor side of the aisle before the vote they want theresa may to spell out how she is going to do this transition. They dont want the hard brexit. Six members are joining them in a coalition to make things more complicated to get that brexit vote going. Are,en i look at how they it looks like they expect theresa may to get this done and not that parliament is going to block it. Exactly. The parliament doesnt go against the will against the people of the u. K. Very they are not going to go that far. The pound was up and down before the vote. They have realized this decision is no break on brexit. There is some question about prolonged uncertainty. It can hit business spending more than it hits consumers in the u. K. It is something to watch with the next dance, the next battle in the war on brexit. Ok. Our next guest expects the pound to weaken again. Thank you for coming on the program. Lets get to your views. More conservative, or at least you feel that it might strengthen before weakening. That is right. We are going to be in for volatility. The bottom line is that brexit will happen. It is a question of when. There is uncertainty about the timing and the impact on the british economy. We havent seen the impact as yet because the u. K. Has not actually pulled out yet. We are starting to see more stories. Going to have some negative impact. To hit that pound level once again. We just saw that chart that i had prepared. Dollar aroundhe mid august with the losses we have seen. This is following from your views on the pound. , the trendng a trade from u. S. Election day. Does this mean for the dollar, where the dollar is concerned, we are nearing the end of the rally for the trump trade . In terms of the dollar there is more life to go. We have seen a strong sense about october and november. A are starting to see consolidation now as the market is waiting for more details. Lets not forget there is too much focus on the truck policies. Not enough focused on defend the fed. The fed is important. They are preparing to hike three times this year. That is regardless of whatever comes policies might be. Baseline cases, we expect two or three hikes. The market hasnt factored in yet. They are going to see the dollar in the year stronger. Scarlet saying theyhey are are skeptical and that the Balance Sheets are not going to strength. We could see another 3 increase. A Wider Perspective against the emerging markets, that is where you will see further dollar strength. I have one quick question, Global Equities higher. The all falling right now . Fallenaussie dollar has in response to the cpi number that came out today. It is a shortened blip. They had a decent rally since the end of the year. I think we are starting to approach a level where a lot of people are keen to take profits given the strong run. They could sustain more upside the 88 sentterm but range, that is a good level to sell. Thank you for your insight. Later in the show, how European Partners may have cost his job. The first the story worlds biggest ipo. We get you the details. This is bloomberg. Yousef pushing ahead with plans for the Worlds Largest sales, seeking to access the major indices around the world are not trying to get a piece of the action. Matthew martin joins us on the phone. This is a sign they are starting to make Real Progress on those ipo promises. It was always expected they would move forward but this shows they are willing to move very quickly. Yes. Absolutely. This is the thing investors around the world have been pursuing over the last year. Now they are making concrete steps towards making an ipo happen. On the internal discussions and internal planning to now bringing the external, the people who are going to make the deal happen. The information that has been abouto the banks, talks next year. That fits in with the guidance the saudi officials have been saying on record. ,he interesting thing is looking at that, theres only a few months early in the Second Quarter or late in the third when a deal could happen. Theres going to be a lot of attention attention paid to the timing as well. What do we know about the list of advisors . How does this fit in with the advisors they are already working with . What we know is that j. P. Clyde, hishael boutique investment banker has been involved with strategic advice. In goldmannvited sachs, Morgan Stanley into the process. No matter which bank is picked from the list, we will be formulaten helping to exactly which markets to go to. There is a long list of exchanges that would love to have them listed on there. They talked about the u. S. , the u. K. , listing on the home market. At least three markets in asia as well. There is still work to be done. That is part of the work. Shery thank you for joining us. Our finance reporter on the road. Burning out. Moving to exiting the coal business. That is next. Yousef welcome back. You are watching bloomberg. Check, cisco is buying dynamics for 3. 7 billion. Chuck robbins has the software to fire up fiscal revenue growth. Scheduled to price its ipo in 2017, the first major tech offering. Entertainment shares have slumped after it announced plans to buy the maker of talking 1 billion. Year it was set to be exploring a sale with Goldman Sachs. The Consumer Protection agency wants Market Makers to step up battery safety after the issue with the samsung seven. They cited flawed industry standards. 1. 9 million phones were recalled in the u. S. Response rate. They have continued its investigation. Yousef an interesting set of numbers. Iron ore rose 9 . Lets crossover to Perry Williams in sydney. Give us some of the highlights. This feeds into a lot of the commodity trading. Yes. It has been a strong quarter. They still derive the bulk of their revenue from iron ore. They beat expectations for the quarter, 60 million tons. That has gone down pretty well with shareholders. Shares are up over 3 today. Petroleum was down a little bit. Investors were bored by the prospects of the annual guidance still being pretty healthy, starting to pour some more money into onshore shale in the u. S. And expiration in the gulf of mexico. One slightly off thing was copper. That was largely expected thanks to olympic dam here in australia. It was offline for some time. Overall pretty strong. Shery talk to us more about petroleum investments. Andrew mackenzie, the chief executive has described it as the cyclical bet if you will. Pouring a lot more money into expiration. In the mexico win bid round recently. They will be starting on that. They have also increased their spending in u. S. Shale. It is still modest levels. They are starting to ramp that up again. For joining us. We are seeing oil losing ground. Wti training 53 a barrel. Automakers bringing production home. This is bloomberg. Ive spent my life planting a sizesix, nonslip shoe into that door. On this side, i want my customers to relax and enjoy themselves. But these days its phones before forks. They want wifi out here. But behind that door, i need a private connection for my business. Wifi pro from comcast business. Public wifi for your customers. Private wifi for your business. Strong and secure. Good for a door. And a network. Comcast business. Built for security. Built for business. Anything with a screen is a tv. Stream 130 live channels, plus 40,000 on demand tv shows and movies, all on the go. You can even download from your x1 dvr and watch it offline. Only xfinity gives you more to stream to any screen. Download the xfinity tv app today. A look at the first word headlines. The British Government having to rethink it strategy for leaving the European Union after Parliament Must be consulted on the brexit. The Prime Minister argued she has the power to trigger it but the Supreme Court disagrees. It may delay the plan. Lawmakers to not need to be consulted. Microsoft battle over access to emails, that is after a lower to provide data in a drug investigation. Theyre considering an appeal because of ruling in favor of microsoft to be exploited by hackers. They sent out a request for proposal to rsp. They are targeting the second or Third Quarter of 2018 and expect to select banks later this year. To la land, dancing its way an oscar record. 14 nominations including best picture, equaling the most ever. It is the most nominated studio, lions gate my amazons sea caught a the first for an online distributors. Six black actors are nominated for awards. More than 120 countries, you are watching bloomberg. Months of attacking u. S. Carmakers for taking jobs overseas President Trump has offered the range of incentives to attract new american investment. Trumps fourth full words president he had and actions for two controversial Pipeline Projects. Automakers, even civility after weeks of donald trump making them more in country. Said he would reduce corporate taxes and reduce regulations. In particular he said environmental roles were out of control. Take a listen to more. Were going to make things more simple. Youre going to find this to be from very inhospitable to extremely hospitable. Trump support translated into investor confidence. Allford and Fiat Chrysler increased in trade. It will be the last thing the Auto Industry needs in terms of capacity. As for the Pipeline Projects he reversingmemoranda white house policies on the Keystone Pipeline and Dakota Access pipeline both blocks over the last few years. Dont greenlight the projects but they move forward on both. Take a listen. We are going to renegotiate the terms and if they would like , we would see if we can get the pipeline built. 28,000 jobs. Transcanada rose off of that news. Mr. Trump said he wanted all of the new pipes to be made in america. Commerce secretary nominee wilbur ross has attacked china on trade. He said he does not believe china is a market economy and accused chinese soa is of being prompted and dont need to profit. He accused china of the propensity to dunk and flood the markets with goods. Mr. Ross said this. China wouldemise, play by the rules. That premise was incorrect. To be director of the National Economic council was also in the news. He is goldmans former president and coo. Goldman lifted restrictions or accelerated delivery on 124 million and stock and cash awards. He gets 20 million in pay for all of 2016. Those are the major developments on day four of the new trump white house. The fallout from brexit creating volatility in the markets. Boosting onare treasury looking to emerging markets to benefit from a newly protectionist america. Thank you very much for coming on the program. You manage 5 billion. There is a showdown looming in the u. S. Treasury market. This tells the story that somebody out there is terribly wrong. What is the smart money betting on institutional buyers, seeing both positions. Of fast money, the likes which you oversee. High like never before. How is this going to play out . The hedge fund story is based on fundamentals. It is based on fundamental data. Wage growth with full employment , it takes up. U. S. Failed reserve announced Interest Rate hikes for 2017. This builds up a strong case for Interest Rates to remain high. Interest rates have gotten to a level higher rates would require data to come true. You have seen volatility was the best gift for a longterm investor. Where do you see quality right volatileis an environment . This is the best place for longterm investors to take it vantag advantage. We find strong valuations and good growth, emerging markets. They have adjusted in terms of Foreign Exchange valuation. Two of the levels, we believe the growth in emerging markets on the consumer side present a strong opportunity for investors to position for the future. There will be volatility. We will allow them to position strongly going forward. Talk to me about specific trading ideals in terms of capitalizing on volatility. Capitalizing on this major Inflection Point we find ourselves in. With the shockwaves being generated. How do you play this and how do you come out on top . Positions,he extreme oil. Oil we believe is a strong case to be made for hire Oil Prices Going forward. We have seen data coming down over the next 612 months. This will position oil prices higher. That is one position where we a contrary in view. When you say emerging markets, you seem bullish on middle east hedge funds. Because they are starting from a low base . Gcc in thely in the gulf region we see the same that we saw in asia. Managers hadets been investing overseas over the last 20 years. Represent a strong consumer opportunity. What we see in the gulf region, we are seeing local managers set up businesses locally. They know business is best and are able to take strong opportunities going into companies in the region. There is quite a bit of red tape for traditional locations. How are they going to deal with that . What needs to be addressed right away to help unlock a new level of growth . They need to take measures to unlock the red tape, to make it easier for smart managers to set up shop in the region. We have seen a number of managers set up in the region and we believe that is set to continue. Here on the set. The Goldman Sachs chief, march has shaped up to be the key month for american equities. Valuations are high. It is too early to say how the Trump Administration policies will play for investors. Most of the nearterm focus has been on what are the new policies going to be with respect to trade. There is an issue related to tax reform that is the underlying aspect of where companies are going to benefit or be heard. It is too early to say. The point of maximum optimism will take place in march. The reason march becomes a critical issue, all of the tax reduction that Portfolio Managers have about positive addressedthat will be and reconcile with congress, more inclined to a revenue neutral tax reform. That is a key part of identifying some winners and losers in the market. Forecast. Our it is 2280. In march, that is when you have maximum optimism. We are in a more fundamentally driven market. Years there has been no earnings growth. Flat earnings growth, all of the discussion is about higher pe multiples. Now we are in a different world. And thens are very high direction of the market will be a function of earnings divisions. That has come at a cost as well. That is the core of the discussions. The trump bump until march and then more uncertainty. To 2300. Ly fades but is the trajectory of profit growth. A preview of what is to come, the longtime chief executive. It is an investment spray. We will reflect on the Investment Strategy and look at what is ahead for the airline. Scarlet welcome back. You are watching bloomberg. Get you a quick check of the latest business headlines. The country is preparing to tap investors. It is egypts First Venture into Capital Markets since the pound was devalued. That slashed its value in half. That suffered from shrinking Business Activity over the past 15 months. Virus thatuter distorts business with one major Petrochemical Company affected. Suspicions fell on iran. They suggested 15 Government Agencies have been hit by the new virus including the labor ministry. Yousef Italian Airways has said it will review the web of holdings in other carriers he created. They struggle with mounting losses from mistakes and air berlin and air italian. In aansformed it remarkable career from a local operator from 22 planes into a global force with 122 strong fleets. Shery lets discuss this and the aviation industry. Thank you for talking to us. Lets discuss the departure of the ceo. We know, were you expecting this exit . What will his legacy be here . There have been a lot of rumors the last few months. The logical is conclusion of those rumors. He has been there for a long time in terms of ceo leadership. His legacy is an interesting one. To put it in perspective you have to recognize what a ridiculously have a regulated industry the Airline Business is. You cannot merge across boundaries. , instead of going for organic growth, went for a type of merger or partial acquisition of the number of airlines, intended to extrapolate. He has actually crashed through barrier globally. Is an interesting part of it. That is the key, isnt it . Strategy thated a was unconventional. Spanning around europe, it is perhaps a wall too high to climb. When you are doing something as highly disruptive as he has that is fair. It has actually benefited from what he had done. They got a partnership, its going to be an interesting part of this whole process to follow. Achieveen they want to the right size and right shape, what could the outcome of that be . For my money, that does mean a deeper relationship. It is going to be a cornerstone of the future. That is speculation. We dont know at this time. It has unless the unions are prepared to take the steps and drastic moves that are needed to keep that as a going concern, that is not part of the equation. It will be german focused in a lot of ways. India is a big market. Scarlet we saw emirates had a tough time. How is that going to interfere with the shakeup in executive management and the difficult climate . Guest i presume you are talking but the Trump Administration. Be difficult. There will be a recount calibration. But that model is so deeply ingrained, i dont think it will be drastically changed. We will leave it there. Still to come, why donald trump risks angering the gods with his latest development in bali. Shery President Trumps plans for a six star resort near bali may face some opposition. Than theing taller coconut trees will anger the gods they believe and have at the island. I love this story. Break this down for us. Double toil and trouble. Veryalinese are usually peaceful. This time they are shaking their heads saying dont do it. He wants to build a hotel and tower that will overlook a famous temple. The were talking about hotel they bought two years ago. They want to make it bigger and taller than the coconut trees, which they say may anger the hindu gods. Construction is viewed to start next year. It will be the biggest luxury hotel in bali. This is the partnership with trump. I hope this can become the only kind. Physically a destination. The hotel is one of two being built by trump in indonesia and if they dont want to jeopardize , they need to heed the sensibilities on the island. The issue with lands, hotel , that is going to be tricky. Pretty tricky. Land is a sensitive issue in a lot of countries. It has the potential to derail a project. Standing offer, the resort area will be expanded to 100 areas to 100 and six. We dont know what has to be acquired and we dont know how soon that can happen. Thank you for that. Later, an exclusive interview on the companys earnings. We are counting down to the market opening, what are you watching . We are keeping a close eye on , they posted a fourthquarter loss of 70. 7 million. With ang Morgan Stanley under rate rating. Those are some of the highlights. That is all we have for this edition of Bloomberg Markets middle east. Shery and me was the asias original benchmark gaining ground. This is bloomberg. It is 1 00 p. M. In hong kong. Donald trump may push ahead today with his promise to build a wall on the mexican border. The New York Times says he plans to sign an executive order to direct federal funds youd funds. He also has revived Controversial Oil pipelines youd toshiba has more mishandled data at a hydroelectric dam project. Shares are down 2. 8 . Y also conforms confirm in february