By november. Here, im yousef gamal eldin. Tracy im Tracy Alloway in dubai. In doha, give us updates of the situation. Remarkable, been the last 24 hours ultimately we are seeing a flurry of diplomatic activity. We are seeing to keep things that i want to point out that are fundamental to the story. Number one is lack of diplomatic progress. There is confusion coming out of the united states, Rex Tillerson trying to balance the situation prevail, theneads having donald trump come in and come down hard on qatar, saying they are a funder of terrorism at a high level. She qatar reaching out to allies like turkey and russia. We understand they have had a meeting, the two foreign ministers, calling for more corporation. Thats one side of that. The other side is the ongoing fallout in terms of the economy and credit ratings. In terms of is this and movement of people, as well. Plenty there. Tracy . Yousef definitely plenty to keep us there. One of the things keeping us there is the u. S. Markets. Lets look at how they close on friday. The s p 500 down point o 8 , driven by a fall in tech stocks. Down 1. 8 , pretty amazing. Thats all on the back of the same stocks. If you think the u. S. Economic rally has been driven by outside ines and a handful of stocks particular, facebook, amazon, netflix, all of those fell on friday. Take a look at the board and you can see all of them in the red off the back of the news. Lot of analysts are scratching their heads trying to figure out whether this means something for the wider rally. Use of . A lot of analysts coming out and questioning more valuations of the companies. In this part of the world, we have had interesting moves. Before you get to these specific stocks and development, just a few highlights and key assets. Barely defending the 40 level mark. Recovering a little bit in front a trade after the huge its like when the u. S. Inventories came in that made expectations happening as fast as expected. Also gold holding relatively steady. The u. K. Story has been isolated. We have not seen anything reflected in the u. S. Dollar weighing on trade. For gcc bonds, this is their short of 220 points and south african rand holding at 12. 95 against the u. S. Dollar. I promised you a bit of an overview in terms of the imac function of the breakdown of the last five trading days. In terms of specific stocks that outperformed, yes is was a week dominated by qatari stocks given no they rebounded 3 in thursdays trade. But it was also important to note that we have a few stocks outperforming here, like the groupiant, savola ultimately more transactions here. Tracy . Tracy yes indeed. Lets check in on the first word headlines from around the world now. Courtney u. S. Attorney general Jeff Sessions will testify to that Intelligence Committee about a legend meddling in the russian in the president ial election. He agreed to switch subjects. Congress saying it wasnt important to address the issue of russia following testimony of fbi director james comey last week. Opinion polls say almost half of u. K. Voters say theresa may should resign after her poor election performance. She vowed to stay on with Northern IrelandUnionist Party agreeing to work with her. The strength of that deal will be tested when Parliament Resumes this week. There are reports that foreign secretary parsed johnson will challenge made for the leadership although he says that trike. France goes to the polls to elect a parliament to determine how much president Emmanuel Macron will actually have. To just hesurvey will win a comfortable majority in the 577 seat national assembly, allowing him to push through his find to loosen frances strict labor laws and simple fight the tax system. Second round of voting is next sunday. The develop her of the worlds tallest tower is asked acted to complete an ipo by november. The properties says the share of the real estate unit will be similar to the size of its 2004 all ipo, which raised 1. 6 million. It was the biggest share sale in the past nine years. They hired goldman to manage the offer and may consider spinning off other units. In the future, i think we should look at entertainment, maybe hospitality as well. But we are not in a rush. We are a young company, so we just need to make sure we organize these divisions well and i think it is going that way. Courtney and germany is warning that the isolation of qatar can lead to war. Sigmar gabriel is saying the situation could deteriorate, but there is still a chance for resolution. Turkey is pushing ahead with their military base in qatar, saying its for the security of the gulf, not one specific country. They also say it must be resolved by the end of ramadan. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. You have the latest for us in doha. Yousef absolutely. Thanks, tracy. Lets go back to our saudi alliance. Reaching are doing is out to their allies and also walking into services of some lobbyists in washington who promote their case at these accusations are meaningless, baseless. From get some more mohammed here in doha as well. Is this part of the wider agreement . What else do they have planned in terms of trying to plead their case . You artie mentioned the general outline. They are getting some food, support,litary commitment from its or support in turkey, now you have international diplomacy. Reaching out to germany, going john ashcrofting to lobby for them in the u. S. And get rid of this accusation that qatar is not doing enough to solve it Terrorism Financing problems. If they can fix that, maybe they can convince President Trump to help ease the situation a bit more here in qatar. Muhammad, there is also arbitration happening elsewhere. They are seeking reparations afford damages that have been caused by the latest drive to isolate. Breakdown the story for us. Give us some numbers. Guest this was late last night. Qatar has had allegations against itself for abusing workers. But they are on the forefront of trying to help saudis, but radiance that are affected by these drastic measures of forcing them to leave countries and leave their jobs. To try and hire an International Law firm and figure out how to get reparations. Its part of the escalation and counter escalation we have been seeing over the last couple weeks. Tracy thanks so much, mohammed. Joining us nowits is control rk middle east consultant allison would. Intoe less than a week this spat, if spat is the right word. If anything, it is excavating seeing escalating and we are seeing people choosing sides in this discriminate. Helen to think this is going to go on for . Its hard to sayi think right now. We saw the turkish president say they would like it to be sold by ramadan, but we are seeing that really neither side shows any indication of backing down. Todis have continued pressure qatar with the measures they put in place. Qatar has felt it in their sovereign interest and they are unwilling to compromise. It leads into my next question, if we get an old election, who would back down . The list of demands in qatar is pretty likely. We will see a lot of diplomatic activity and a lot of people trying to figure out how to compromise. The qatar is going to be unwilling to back down on some of these points because it would really sort of represent capitulation in terms of Foreign Policy and they want to maintain their presence in the region and have opportunity to pursue their own interest. Itll be interesting to see what happens in the coming days. Notef allison, again, tangible element progress as it stands. If anything, tensions have increased. What could further escalation look like . I think you busy escalation in terms of pressure points or sanctions, i guess you could say put on qatar. Its a movement in the Financial Sector and businesses reconsidering relationships and contracts they have in qatar. We are still a ways away from any military conflict like the German Foreign minister alluded to over the weekend, but i do think its possible to see a sort of increasing tensions in terms of rhetoric and also, like i was saying, measures put in qatar. They have not reacted too much, but obviously any sort of statement in that regard would be a sign of rising tensions, as well. In terms of broader fallout, you mentioned some of the economic effects. We are seeing gas prices hit substantially after the vessels goingd course instead of going to the suez canal, going around south africa to avoid any possible scenarios of disruptions. Have you changed your view as to the possible impact on the Global Energy market . This is certainly something we are watching closely in terms of the lng markets. Any sort of changes will have an impact on the economics of their product and so, would have impacts on the global market. Qataris wills hold their market share over the coming weeks regardless of measures put in place. The longer this lasts and the longer they bankrolled these shipments, that will change their calculus. That one of the things fascinates me is the fact that ashcroft tored john be its lobbyist in washington. You and i remember that he was the attorney general under bush, who was best known for helping push through the patriot act. Ashcroftdoes this mean qatar is expecting some specific legislation or executive orders against it . Guest i dont think we see any signs of it yet, but there was talk in washington several weeks ago before the scott started for people starting to push for sanctions because of Terrorism Financing. They want to make sure it doesnt happened and the conversation doesnt aim momentum in the u. S. Also, they start to try and change their views in regards to financing and the role they play in the region. Whats the base case here . Escalation before resolution, or are there any tangible scenario where they can be a relatively swift resolution to the problem . Think right now what we are seeing is a standoff and this could continue over several weeks. Lspquickest route to the relation could be capitulation on the part of the qataris in receding to the demand saudis are making. But it will have a Lasting Impact on business. Businesses in the region will think more carefully about their , clausesain, contracts they have in place, who their shareholders are across lines, and reconsider their investment in qatar and gcc states. Tracy thank you so much for joining us, allison. Looking ahead on Bloomberg Markets middle east, catch our exclusive interview with the chairman of the heaviest weighted stock in dubai. Mohammed al of our discusses the companys upcoming ipo. But next, the latest from doha including the role played by iran in saudi arabia. We are joined by the Atlantic Councils amir have johnny. This is bloomberg. Tracy youre watching Bloomberg Markets middle east life from dubai, im Tracy Alloway. Yousef and im yousef gamal eldin in doha. Lets talk about geopolitical risk. We talked about qatar and the financial relations that are being tested to the core. Iran is another key player and the development out of their last week was the attack into iran that killed 17. Lets bring in our guest on the atlantic council. It morning. The bow fromf with iran to retaliate to avenge what happened in iran. What did you imagine it means for the winter gulf . Gulf wider gulf . What the attacks have done is given the government in iran a certain measure to convince their people what the e that their intervention in syria and iraq is necessary to prevent isis from coming and fighting this war within irans borders. Amir, in terms of support that iran is giving to qatar, is this an opportunity for them . Statements and reports from some of the News Agencies in iran for replacing food delivery stamps and cutting off saudi arabia. Reliable is this alliance between qatar and iran . Guest really, there is this talk about alliances is overblown. As your previous just mentioned the issue between the saudis and the, rotcs with qatar has less to do with iran and more to do with qatars relationship with other trend state actors in the gulf region and in the arab world. Irans relationship with qatar is primarily aced on the shared massive gas field which qatar qatarthe north doled, and calls subparts. Int relationship is measured that gas field. Iran will try to replace some of that relationship that saudi and the emirates is stepping back from and turkey will, as well. Took sent troops as you know. But i dont think that is sustainable longterm. This is not the divide thats between qatar and the uae and the emirates. Its not over iran. And kuwait has closer ties them qatar does. Saw President Trump doubling down on his criticism of qatar on friday, saying the country is a funder of terrorism at a very high level. How do you square the u. S. Qatari relationship right now, given that it is home to one of the u. S. Is biggest military bases . Guest President Trump has a tendency to be triggerhappy with his statements and he doesnt think through a lot of what he says. U. S. Position on qatar has always been complicated because as you mentioned, Central Command for many years is based out of qatar, and air base used for Forward Operations in syria and iraq, all over the region. 1020,000 servicemen and women serving in qatar. The u. S. Has always been careful of their criticism of qatar not to make it so publicly and to have it done to the state and defense department. Never has the president come out on twitter and criticized an ally. So many u. S. Troops are conducting operations. It doesnt really square. President trumps statements has put the u. S. Military and u. S. Diplomatic community in the gulf region in a bit of a bind. Tracy at a high level, how do you see this ultimately playing out . At the most dramatic end of the spectrum, i have seen some people trying an analogy to july of 1890, which was a month before iraq invaded kuwait. That seems like quite a dramatic analogy, but where do you see this going . Guest thats very dramatic and overblown. I dont see it involving and military operation. The military cant stomach that and the Energy Markets would be drastically profound. Uae and the saudis want is it hard to capitulate. Im not really sure what capitulation looks like it has qatar has made it very clear that it is not going to stop supporting islamist movements that they view as legitimate forms of resistance. U. S. Isther hand, the there, the u. S. Has this huge presence there in some ways, the u. S. Position is going to be awkward to. They want to make sure it doesnt get any bigger than it is. So i really view state like home on and kuwait quietly step in and diffuse this tension within the gcc. Staying up late for us in new york, thank you so much. Up in the show, losses are of course having up for qatari assets. We will take a look at economic consequences of thomas isolation and ask just how bad things could become. This is bloomberg. Yousef youre watching Bloomberg Markets middle east, im just a mugging in doha. Tracy and im Tracy Alloway in dubai. In stocks,n qatar bonds and currency forwards were blindsided with the unexpected Isolation Campaign by saudi arabia. What can we expect in the coming days . I want to start with the chart because a lot of people are speculating about whether we get some sort of financial sanctions right now, which could put pressure on qatari banks. If you look behind me, therefore and liabilities have been rising over the last year as well as Foreign Liabilities in terms of resident deposits. What kind of impact you expect to see on qatari banks . Guest the numbers tell us that you have about 150 of gdp in foreign debt, including the banks. Thats substantial. The other side is, you have to number we have a Sovereign Wealth Fund and foreign assets are well over 100 gdp. Shortterm what you see in the markets react is the immediate result of the sanctions. Theper you depreciation expected, you see outflows. The main question is, how long will these sanctions remain in place . Do you have a quick resolution or will it be extended . Spat,st time there was a it took eight months to resolve. This can be expensive for qatar because you have continuous outflows and potentially sovereign credit risk ratings will start declining. Thats a key point to pick up on. Its not just about qatar. There is rather spillover. What is the damage being done to sentiment for the gulf confirmation council. . To lock in for capital with the emerging market. Juneeview the decision on 20. Guest thats true. Lets put it this way. I dont think we will have qatari exit. Its not a qatari exit so far. We havent seen financial sanctions eating impose. But you are right to ask the question, will there be repercussions . The decision is an important one given the ipo. Saudi want to go in to the london lse and having a revision of msci and having a part of an emergency markets will be very positive for saudi aramco. A delay in that will be the not be helpful to the ipo. Tracy we will have to leave it there. We will have more coming up in a second, but next we will check the outlook for oil as crude ignores opecs fight for the market and we will also be discussing some of the latest news in terms of the ecb. Thats next. This is bloomberg. Alloway letscy take a look at the first word headlines. Saudi arabia reportedly doesnt see any need to tighten the crude oil degree. The minister thinks restrictions are not needed and that the market will stabilize in the next few months. The cartel and its allies agreed to extend the curb for the first three months of next year. South africa escape walltowall jump ratings with moodys downgrading the nation just one level to the lowest investment grade. Foreign and local currency great ratings stand with a negative outlook, meaning the next move would be to speculative grade. They cut their assessments of south africa to junk after the president fired finance minister. Police have arrested eight more people in connection with last weeks gun and bomb attacks in iran. They say they are supporters of the terror group that claims to be behind the attacks that killed 17 people. Guard has links to the terrorist who are claimed to be behind a wahhabi sect. The son of libyan dictator has been released after more than five years in jail. Of a pardonas part from authorities running the eastern part of libya. He was captured in late 2011 after his father was toppled and later killed. He is one of three competing authorities attending to impose control over the country. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Its been a dramatic we could crude oil, third weekly decline. We have the inventory fix figures. Huge numbers, they came in late on friday. Targeting crude, rising by 8741, the highest since april 2015. That means every week since late january, its been rising. 21st consecutive week. Minister, Russian Energy minister, both shrugging off the need for any changes or any meetings. Are they wrong on this one . Guest i think they are trying to get Forward Guidance to the oil markets. They are worried about the search and shout output in the united states. Clearly that will continue and it will not be held back. Opec is being optimistic. He will have to have other cuts in opec production, and giving the search in the u. S. And increased oil exports from the u. S. Thats clearly on the cards. The Downside Risks for oil prices are certainly there. The impact on opec will be substantial. In terms of what opec needs to do to resolve this situation, its no longer u. S. Production figures or crude, its a story of returning the supply from places like nigeria and libya and dwindling demand. How can they reconcile this . Do need to take oil out of the market . It clear that saudi will have to take the brunt of it. Qatar, and others are coming back into the market. The only country that has substantial production where it can cut back is saudi arabia. It will be a hard balancing act and continued to their budget commitments in terms of reduction and budget deficit for this year and on the other side, try to maintain their oil price. Expect more saudi cuts. Tracy when it comes to macroeconomic events, we have our choice. Let me pivot slightly to europe, where we had two major occurrences. The u. K. Election and the ecb meeting. Lets start with the meeting. It was interesting for markets. Ecb seems to be struggling a little bit. They have growth that is coming in and they want to eventually monetaryr extra very stimulus, but they dont want to roil markets. Right . Guest ecb is in a good position right now. Europe is recovering and it looks broadbased. Going all the way to greece. It is just germany as the main engine, all the countries in the eu seem to be improving and we have seen that affect in terms of equity markets as well as emerging markets. If you lookeeing, at relative valuations, very positive. The outlook is positive for the eu. That means the ecb is probably going to maintain its stance. Jockey has suggested it. They will continue their program in early 2018. Rates are certainly on hold, inflation rates have been close to the targets, but still below target. I dont think you will see any rates rise. The rate for the u. S. To raise its rates and therefore, we want to have a lower euro because that helps exports. From the ecb addition, making liquidity in the markets, let markets revived, hope that will lead to more investments by the you companies and let growth persist. If you look across on the investment side, a very positive outlook. I just came back from the u. K. Yesterday. Much of the discussion is on the eu revival and of course its linked to politics. Tracy they are going to get to the u. K. Election in one minute. First, one more question about central excrement it seems like we are entering a new stage in central bank policy. We dont have the ecb hiking rates, but they are not cutting anymore and the boj is talking about recalibrating its exit strategy, medication policy. If you look behind me, you can see the growth of the Central Bank Balance sheet. Over the past five or six years has been in our mislead important for the market in terms of providing abundant liquidity. Isnt that a headwind Going Forward . Guest if you look at the Central Bank Balance sheet, they will have to deleverage. The first thing to deleverage will be the fed. Its mainly treasuries which will be maturing toward the second half of this year and the last quarter. The amounts are very small comparatively. 2018ig events will be in and it will be in the later half of 2018. The markets will have to look at how diligent will take place. Will it be smooth tapering off and letting the market absorb it . The main question will become a where will the savings come from . Remember that we absorbed that liquidity into the bank Balance Sheet. If we do that, some of the has to be buying. It will mainly be covered by asian savings in china. The question is, will china have the same appetite to buy any of that . Most likely not. The big event is the second half of 2018, not egypt. Yousef i want to state with monetary policy, talk about what they might or might not do. Theerms of, again expectation for a rate hike, thats where it is right now. But in terms of what we might here for Balance Sheet reduction and outlook for future hikes, what do you expect exactly in light of the reflation story . Guest if you look at the u. S. Economy, its performing extremely well. ,ecovery across broad sectors the lowest unemployment we have had in nine years right now. Inflation close to the fed target. The fed will be constrained with its own commitments. Ony have to come through what they raised in terms of expectations. Most likely, you will see 25 basis point increase in fed rates in the coming week. Strong, i dont think pronouncements in terms of deleveraging at this stage. The recovery is there, but they will want to maintain it. They will want to maintain the course without shopping the markets in terms of deleveraging the large fed Balance Sheet at this stage. I think it will be soft in terms of deleveraging. As i said, when you look at the numbers, most of the maturities are coming in the latter half of 2018. Small amounts in 2017. The other major event has been the changes in the Political Landscape in the united kingdom. Disaster for the incumbent prime minister, how is that going to affect the brexit negotiations . What is your basic Case Scenario at this stage . Guest as people have commented, theresa may is still in office, but she has not in power. This has been a big failure for the qataris. If you look at the political chaos that you now have in the u k, its very much at the hands of the other conservatives. Yourthat means is that hand of hard brexit is no longer there. Theresa may did not get the mandate she wanted for a hard brexit. What you will look for is consensus toward a softer brexit. There is a big question mark. We are going to have a clean speech next week. Theresa may may not survive it. A struggle going on in the conservative party at the moment and she might not survive the queens speech. Whatever the outcome, the u. K. Is entering brexit negotiations with a much weaker hand that it had before. Exactly the contrary of what theresa may have been hoping for. On the other side, this is whats positive. The young people have now come into voting. If you look at what dissuaded the election, it is young people, 1824yearold registering in tremendous numbers and voting for labor because labor is promising them the end of fiscal austerity, t socialist press harrys, policies, and a softer brexit. It means you will now think of policies and policymaking with look at future generations. That means things like physical posse will be back on the table and i think that will be the case across europe. Climate change issues will also whathe environment and civil rights, human rights, womens rights, are all going to come to the fore. We cant talk about this without talking about the pound, down 1. 7 off the back of the immediate election results. But then it recovered a little bit. Is that about the recovery of a soft brexit or a continuation of this surprising resilience we have seen in sterling over the past year or so . Guest the 1. 5 is much less the 1. 5 is much less than the brexit, which was over 8 . Markets are pricing in greater policy uncertainty. Not just in respect to brexit, that domestic economic policy. Its no longer the mandate that is wanted for austerity aussie. That is out of the question. To budgetking forward deficits, major spending in the u. K. A. Are entering into of great policy uncertainty. Thats what markets are looking at. Tracy always a pleasure having you on the show. 1. 6ng up, they raised billion dollars by selling shares in a small unit a few years ago. Its looking to do something similar with another of its operations. We will hear from the chairman in a moment. This is bloomberg. Yousef you are watching Bloomberg Markets middle east. I am in doha come up where the country awaits and asks the question whether there will be progress on the diplomatic front to resolve the issue here. Tracy im Tracy Alloway in dubai. Lets take a quick round up of the main stories from around the middle east. Its Petroleum Says business as usual despite the countrys domestic isolation. The world leading lng supporters say its taking measures to prevent threats and provide Reliable Service to customers around the globe. Assured uninterrupted supplies. Reports from iran says iran has finalized a deal from 60 new planes from boeing and airlines will play a 5 of the eventual bill, with the remaining 95 financing coming from financing. Student News Agencies says they with the option of adding more later. Other details have yet to be released. To an Investment Holding is buy air berlins investment in making. Great demo released a joint statement with airborne, saying there trying to complete the transaction as soon as possible. It will continue until the deal is done. The developer of the worlds tallest skyscraper is looking to complete an ipo of a real estate unit by november. Besides will be similar to the share sale of a small unit which raised 1. 6 billion dollars back in 2014. I spoke to the chairman about the timing of the offer. Lets start with the numbers for the first five months at andt 3. 7 billion in sales 3 up compared to last time. This is the market, we had done a good job. We are making sure we have new people on the ground while controlling quality. Thewe can do better, but market is doing ok with us. Its still challenging. Timingwise, to be honest, we want to bring in value as soon as possible for our customers and better value for ever shares. Tracy shareholders are clearly happy. But why the need for a special event . Dividend . Guest i call it the mothership. It has zero debt. So if we are going to reward shareholders, its the right time to do that tracy . When giving the ipo might happen . Guest we hope to finish everything by november, maybe earlier. Of the year,he end we should finish the whole structure and close the door. Tracy its like you are quite far along already. With goldman is working us, so we had been at it for two months. A lot of work has been done actually. Idea of how much you actually expect to raise through this . Guest we tell people we are at it. We dont have the exact number yet, but we shouldnt be far off from the public offering. Tracy that was a big one. Guest i think its going to be around that. If you look at the total value of the currency and you cut it to pieces, you realize there is a zero value for all the Development Business, which is really massive. Our backlog is close to 11 billion in value. Annual will be about 5 billion on an annual basis. That will keep going into the development is is. , the land bake is massive and great value. Tracy that leads nicely to my next question. Why the Development Business specifically . Are there any other units you could look at spinning out . Guest in the future, maybe we should look at entertainment, maybe hospitality as well. But not in a rush. We are a young company. We just need to make sure we organize the divisions well and is going that way. Tracy if you spend more of these companies out, does that aar becomes an Investment Company for these . Guest we have to spend these organizations out make them more focused on their businesses. Let shareholders decide what shares they want to own. And the Holding Company with a focus on driving these entities and crating value. Tracy lets go back to the Property Market in general in the uae because it has been struggling in the face of lower oil prices, but now we have added uncertainty in the form of geopolitical tensions rising in the gcc. How do you expect that to play out in your business . Guest every time we take a hole, its five years or four years to do whatever we do, so in my business after 20 years living in the middle east and seeing the days and the night and the summers and the winters, these things do happen. And everfocus is there growth story is strong because the base is just an amazing city , which is in the central region. The growth is growing well. Here,e and go, weve been we need to move on and execute. The goode same time, news is that we announced and we see the markets reaction. I think we are on the right cap. Tracy whats next for you . It sounds like you are going to be very busy until november potentially. After that, whats next in the pipeline . Guest the whole real estate business in this region is still developing. We are growing in egypt, saudi arabia, here, we just took over operation and thats massive for us. Its an interesting point in time in history. Is just upping growth and in Development Infrastructure in the whole region, so we are seeing really well. We just have to focus on doing things right. We need to watch quality, delivery, how to hire the best people, and we have to stretch targets, but we have to take care of our customers. One thing i know about our people, we are passionate about this business. Thats why we do well. We are in love. Up we makeple come mistakes and we get up and learn from them. We have work to do. Was the chairman. This reminds me, there is an important feature we like to get your attention to. Its tv. Pull it up on your bloomberg. Its a place where you can watch slide, but also see previous interviews and dive into securities or bloomberg functions we talk about. Here is some key screenshots. Become part of the conversation by sending us information instant messages as well. Ask your producer. Where bloomberg subscribers only. Check it out, tv. Tracy this is Bloomberg Markets middle east, im Tracy Alloway. Yousef im yousef gamal eldin. A couple things that caught my attentio in the last couple of days, has been vehement pressure on the key Asset Classes in the dubai markets. It shows the the rising liquidity strengths. Include saudi arabia and united arab emirates. Those levels highest in seven years. We are also seeing pressure in opec in the 12 month qatari real forward. , capitalnted pressures economics are striving it all. What are you watching . Was inlast week extremely interesting week to watch the markets. You mentioned volatility and that is one of the main points that explains this market right now. Qatar is one of the most volatile markets in the road today, and that should not change this week. To 18, 1 stocks slip day when the news broke out that qatars index was down 7. 3 , which was the most in several regions. We hear from several investors. We dont see any development in terms of depomed decisions or anything that could indicate a better outcome for this decision. Stocks should be bouncing back and forth on a high level and a constant basis. Last week we did see gcc shareholders selling off their qatar exposure. As we entered the new week, what stopped eating is going to trait most heavily . We hear a lot about banking stocks in qatar. Thats one of the most important stocks. You have an index that is heavily composed and influenced right to of the biggest banks in the country, which are Qatar National bank. We have a decision in the uae which we just mentioned, here in the show, that brings more estrogen at the and sanctions. There are six names and the list of the uae decision. Of course we should seek an impasse of those stocks. They are liquid, the biggest stocks in the market. Those are the ones that will be on the focus of investors right now. Disruptiony briefly, of trade, which stocks are most exposed going into this week . Guest i would stick to Qatar National bank. The main focus right now, this is the biggest bank in the middle east and it is the biggest stock in doha. So thats it. Tracy thanks. Thats this weeks edition for Bloomberg Markets middle east. Yousef we will be back same time tomorrow. Jonathan this is bloomberg real yield. Jonathan political talk in the u. K. Prime minister may with the conservative party with the majority. The ecb is going nowhere fast. Jonathan a better eurozone econ. Contingent convertibles in spain. A european banks failed without thought