Its 8 00 a. M. Across the emirates, im jc humphrey into by. Angie im angie lau into by. Welcome to Bloomberg Markets middle east. There used to be a show in the u. S. , lets make a deal, deal or no deal. What is behind door number one when it comes to opec . Jc great question. All will be revealed tomorrow but it is all about oil this the major opec and nonopec players set to meet tomorrow. I want to revisit the current state of play for the oil markets. Purple and blue is where the current price of oil is at, and take a look at that white line are allalks in vienna. Round lowering that output we will talk more opec in just a moment. Angie for now, lets do a quick check of the state of play in the markets right now. Mumbai has been trading for almost 20 minutes, and we are seeing gains, although we are seeing a pullback when it comes to risk. We see it reflected in the hong thatand topix, thinking maybe today will not be lucky 13. In the middle east it is two hours away from the opening of the markets in emirates. Qatar closedabi, lower yesterday. Saudi was the only bright spot, gaining nearly. 9 . Checking in now and the first alert headlines from around the world, heres sophie. Sophie spending in japan fell for an eighth straight month underscoring weak consumption and the continuing struggle to revive the economy. The client in spending and retail sales have narrowed since august 24 whether her demand. Unemployment remains at its lowest in two decades, but there were no significant wage gains. The Prime Minister hopes it will drive a and spending higher. The oecd listed Global Growth forecasts for the next two years, predicting a boost from donald trump in china. Its gdp forecast is now 3. 3 in 2017, up from september predictions. They say growth will expand to 3. 6 as it sees trumps infrastructure plans raising output. A source has told bloomberg that india is set to clear the right Healing Services of uber and lyft. They will need to get software validated. A Court Affidavit will be filed in delhi. Theyre pouring hundreds of millions into india. The head of the middle easts largest listed Property Company with milanbased online retailer. Ecommerce in the region is still just a baby, making up 1. 5 of global retail. Global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. This is bloomberg. Delsey thanks. Opec ministers are gathering in vienna for wednesdays output despite signs that the cartel remains a split. Lets get the latest from singapore. Re any indication they can reach a deal . Well, its tough to say. We are getting down to the wire here. Bloomberg has a team of on monday, there was a 10 hourlong meeting with representatives from opec countries to hammer out their differences, and the main Sticking Point seems to be revolving around iran. Iran is producing 3. 7 Million Barrels per day, and saudi arabia wanted to stay there. Iran wants to be able to grow its production toward 4 Million Barrels per day, where it was before sanctions came down. Algeria, which has been the big peacemaker through this process, has put forward a compromise solution halfway in between, but it is unclear which if any of those proposals will get full opec support come wednesday. As you also know, algeria and Venezuelas Oil ministers will be heading to russia today to talk with nonopecs producers about how they might fit into anything. So a lot of balls in the air. We will spend a lot of time seeing how they land. Angie ok. And they may land with a crash. What is going to happen to the oil market if they do walk away from this meeting and to handed . Meeting emptyhanded . If they do, all of a sudden the markets will shift back from opec and onto the joyand they m. Giant overhang of crude oil in storage tanks over the world. There are more than 3 billion oil products in the developed world, even more in the underdeveloped world. All of a sudden, you look at the record opec production and it doesnt make any sense to pay a lot of money for oil. Analysts say it could fall back into the 30s or even the 20s if the ministers dont reach a deal. Angie dan murtaugh in singapore. Thanks. I want to bring attention to breaking news out of south korea, just crossing the terminal. The south korean president will address the nation at 2 30, in about an hour and a half. This, of course, follows the influence peddling scandal that has enraptured the nation and is also just negatively propelling this nations first female leader into a possible impeachment as early as this week, Approval Ratings sinking to an alltime low. Addressing, shes the nation of south korea at 2 30 local korean time. Well have the latest. Samsungt samsung now, electronics announcing sweeping changes to its structure as it adopts the changes proposed by activist investors italians management. Lets go to stephen chin. This is another big story ahead of south korea, as well. What did samsung announce . Indeed, it is another big story. A little overshadowed by the political developments, but its a big deal, because samsung is south koreas biggest company. It essentially announced a plan to step up its share, its cast returns to shareholders. Pressure fromder activist investors to do a few things. The problem is that they didnt give everything they wanted. Step up its, a, cash buybacks and dividends to about 50 of Free Cash Flow. 10t will amount to about trillion won. One going to look at adding outside director, and do a six month review of its corporate structure. Thats essentially the news that came out today. Reed, how does this compare with what the management asked for . Yes, well, you cant always get what you want. They wanted three directors on the board; samsung said it would appoint at least one outside, independent director. He had called for about 30 trillion won worth of cash returns instead samsung has committed to about a third of that. And of coarse they wanted two other key things. One was a separation, a split to a Holding Company and operating company, and it wanted the enterprise to list its shares on the u. S. Exchange. Samsungs response to that was that, give us six months, we will look at it, and it is also going to consider listing under international exchanges. So to some extent, yes it took an outside director to add pressure, to get samsung to move along, but it is obviously not as much as some investors we spoke to had actually called for. Delsey Reed Stevenson from tokyo, thanks. Lets get the latest from the market. Heres david ingles. David if you look at whats happening right now, to make a long story short, it is almost a reset we are seeing as people are squaring their positions as the focus shifts away from donald trump, pushing into things like opec. Asian stocks, china on the way up. Look at the other side of the spectrum in the asiapacific and you still have a number of indices, especially japan. We will dig deeper into japan and china later on. It started out with a very weak dollar story. That has obviously not flipped on its head across some currencies. The renminbi still on the rise against the dollar. Others, the rupiah, hong kong dollar, gaining. Everything else is falling against the greenbacks. Commodities, we are still seeing it fall. A rally across sovereign bonds continues. Let me zero in on the topix index. We were supposed to be going for 13 Straight Days and we could still get that. Two hours left in trade. Any gainscapping out of japan. Hopefully if you are along in japan you could get that longest gain since 2009. Seem like that will be the case because this market has been brought up quite substantially since thie election. Delsey david ingles, thanks very much. Later in the show, consolidation in asia is highly competitive wealth industry. Were back to our popup studio in singapore, and we are talking with dbs. Angie opecs meeting tomorrow. We will ask ubs asset managements jeffrey one how he sees oil playing out in 2017. This is bloomberg. Delsey welcome back. Were live on bloomberg tv and streaming on the radio. Angie delsey emergingmarket currencies posted their biggest advance in more than nine weeks on monday as investors pop the trunk trade was overdone. Shery ahn is live with a man who can tell us more. Shery, a mixed picture for equities, but positive signs for emerging markets . Shery yeah. We are hearing that this Growth Prospect is boosting Discretionary Spending and emergingmarket, combined with solid demographics, a longterm positive for emerging markets, according to jeffrey wong, the head of emerging markets and asiapacific equities at ubs asset management. Thank you so much for joining us. Lets look at the positives for emerging markets, but viewers will be scratching their heads going, we will still get rising rates, headwinds from a strong dollar. Can those positives offset the risks and emerging markets . You are absolutely right. Investors have been focusing almost exclusively on the negative, in addition to the things he mentioned, with the possibility of trade wars. But the positives are there as well. Theres been reflation, where Interest Rates have risen, but at the same time Economic Growth has accelerated. Equities in emerging markets have done fairly well. We arer, a lot of what seeing is really talking about infrastructure, and infrastructure means commodities. So i think there are enough positives of their, and at some point in time shery we have seen commodities stabilize. When investors are looking at the emerging markets, should they be focused solely on growth . What else should they be looking at . They should really look at whats happening within industries and how economies are transitioning. You look at china, Economic Growth is decelerating, but within the economy itself, theres a huge transition from manufacturing over to consumption and services. Thats a very powerful driver. Particular companies will benefit tremendously. The old economy is growing at 0 , roughly speaking. But things like retail sales are growing at high Single Digits to low double digits. Shery not surprising, given that we have people with more money, discretionary money they can go out and spend. Which sectors are going to see the most benefit . Within emerging markets, we still think consumption is a good deal. When incomes are below 5,000 per household, people tend to spend everything on food and clothing and health. But once you get a 10,000, it increases. It depends on the state of the country. In lower income countries, india and so forth, it is basic goods. But once you get a 10,000 you start looking at automobiles, perhaps even luxury automobiles. Shery all the focus this week, opec. We have the ministerial coming up. Do you expect a spike in oil prices anytime soon, if we got a deal for the supply curve . Shortterm oil prices are always extremely difficult to predict. We dont have a particular cause. We think oil prices are roughly where they are, upward slowly over time. But we dont have a specific forecast. Shery given that assumption, where are you investing . We tend to be investing in Southeast Asia. Demographice we see and consumption growth to be strong. In china itself, although the lines are always about tolerating growth, and we talked about the transition shery what about industry . Within china, i think the new economy, ecommerce, mobile shery when it comes to regions growing out of asia, how about emerging middle east . I think the middle east definitely faces some challenge, not the least of which is the lower oil price. But if we look at other Oil Exporting Countries the flexible this allows them to make adjustments in the economy. A lot of the middle Eastern Countries trade with the dollar but they dont have that flexibility. I think it is going to be challenging for investment for quite a while. Shery thank you so much for joining us. Of globalng, head emerging markets. Back to you. Delsey thank you. Coming up, opec members failed to work out a compromise on a deal to cut production. We will discuss the implications to the markets, next. This is bloomberg. Angie welcome back. You are watching bloomberg. Delsey back to our top story. Failedfalling after opec to work out a compromise on production cuts ahead of wednesdays meeting in vienna. Chances of the deal are said to be slim after saudi arabia said producers dont necessarily need to curb output. Lets bring in abu dhabi commercial banks chief economist, who joins us in abu dhabi. A warm welcome to you, monica. How certain are you of an agreement from tomorrows meeting . Its not certain that all. We have seen the recent comments coming out of the delegates, implying a deal hasnt been reached, and we are close to the final day of the meeting. There seems to be a couple Sticking Points. Wee already stressed have highlighted in our research t iran and iraq [no audio] angie i think we have lost our connection with monica. Well try to get back to her, and as we fix this technical glitch, we will try to get you back to monica, to talk about the latest on opec and whether or not they will get a deal. For now, lets get a quick check of the latest business flash headlines. Barranco and abu dhabi planted more than double petrochemical productions to cash in on growing demand. They are diverse sing to wean themselves off crude, particularly in asia. Oil says National Demand for petrochemicals is expected to double by 2030, presenting an unprecedented market opportunity. Abu dhabi Investment Company has reportedly signed an agreement with chinas agent a group. The company is looking for investment in aerospace, manufacturing, real estate hospitality, kent financial services. No details were given about the potential size. Growthl grew out of the of their Aviation Services company to h a earlier this year. And China Railway construction and qatar has been slated to build a stadium for the 2022 world cup. Was80,000 capacity venue designed by a british architect and will host both the opening matches in the final. Financial details were not disclosed, and qatar has faced consistent criticism for labor standards in construction projects. Delsey lets get back to monica malik from abu dhabi, the chief economist. Monica, where we left you, we were talking about how certain you are, or uncertain you are, of an agreement for tomorrows discussions. Andica, where we leftyou are ta iraq critically, and russia. How critical are the nonopec countries when it comes to opec deciding on a cut . Very important. For a number of key opec countries, including saudi arabia, russia would need to also cut back production. Russia has so far said they are willing to freeze production, but they havent gone as far as to say that they will cut production. Know, the meeting that would later be with russia and other nonopec countries was canceled at the last minute. I think the key stands for saudi arabia is that they dont want to cut and see other countries not cutting or having the ability to increase production. That is what we are seeing in the comments. They are implying that they are willing to negotiate hard, and if need be, walk away from a deal if it doesnt suit their purposes. Is said to offer iran 3. 7 Million Barrels per day. Tehran asking for 3. 97 million. Re talking a difference of 200,000 to 300,000 barrels. How successful do you think of jerry it will be in bridging the divide . Well, its difficult to tell. At the moment, iran is Still Holding out. Current production levels are at about 3. 7 million per day, and has been Holding Steady at this level. But even if we cut back to the top end, thats about 600,000 barrels they will have to take out of the market. 200,000 barrels of that is significant. Forill also be critical next year with the Global Demand scenario. Aret of nonopec producers expected to see rises next year, and demand is expected to be growing, but at a weaker rate. Angie thank you so much. Monica malik. More coming up, this is bloomberg. Angie 12 30 in hong kong. These are the first word headlines from around the world. Oil has given up gains as opec ministers had for vienna, showing signs of the cartel remains a split on output price after a 10 hour meeting. Sources tell us that iraq and iran angie continue to express objections by lowering output. Iran wants to raise up to presanctions levels, while nonmember russia says it is prepared to stop about cut. Samsung will allocate 50 of Free Cash Flow to shareholder returns and conduct a major buyback for the end of january. Also looking at creating a Holding Company structure and listing on international exchanges. Investor had been urging sansom to restructure and return more cash to shareholders. Lufthansa has lost its latest bid and was denied an injunction. They will stop work in the coming hours and all pilots will block out on wednesday. It is heading for its longest ever industrial action, with costs approaching 50 million. Lufthansa shares extended their decline for the year to 15 . The former cia director david the traders is the latest person up for secretary of state under donald trump. A top transition officials said the president elect is inclined to pick him, but is weighing the pros and cons of having the retired Senior Officers at both the state and the pentagon. General james mattis is under consideration to leave the defense department. Global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries. This is bloomberg. s strong chinese demand for Australian Properties has helped tries prices skyhigh in recent years, but the enthusiasm for real estate has been somewhat dampened by new restrictions, making it tougher to get money out of china. Lets go to our economy under,