Impressed. The index at a threeyear high. Kong, 4 00 a. M. In london. By where it is 8 00 a. M. , welcome to Bloomberg Markets middle east. What are you looking at today . Asia, globale in investors taking a closer look at i it is weakening and there is a lot of volatility when it comes to the yuan. Jump into my bloomberg and see what i mean. Exchange, it stock has surged to a record in november. As you can recall, it has been a wild month for global markets, ofecially after the surprise some of president elect donald are lookingvestors for production. Check out what has been happening this month. Here asreally surging investors scurry for protection. We are just under two marketsay from emirates in dubai. Lets take a quick check of how they closed across the region yesterday. A mixed bag. Dubai, one of the biggest gainers,. 7. We are doing a quick check of markets open in asia. Mumbai trading for almost 20 minutes now. You can see, it is a mixed picture across the board. We are seeing gains in the hang seng index. A 12 day streak yesterday, we did not make it to lucky number 13. It does not look like it will snap back in terms of recovery. Lower. Lets check in with first word headlines. Here is haidi. Haidi Samsung Electronics has extended record highs after signaling a potential split as soon as next year. The plans to create a whole new structure was created to improve shareholder value and reduce criticism. The founding family would also see improvements. Up more than 30 this year. More evidence that a rate rises coming next month. The governor saying the case has strengthened. Speaking in indianapolis, he said unemployment and inflation were topics. Moving too slow, could trigger an abrupt decision. Policymakers meet on december 13. Janet yellen says she sees arise coming. We will find it on friday if she will be forced to resign when Lawmakers Debate her impeachment, making her a third public policy. Down ifd she will step they can agree to a civil transition of power. Samsung was also drive into the scandal. The european commissions chief negotiator says there will be a small window to seal a break the deal. Talks may begin in as little as 15 month. Because the European Parliament deals, that the will happen in the second half of 2018. The British Government says it wont talk about brexit negotiations at the end of march. Global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. I am haidi lun, this is bloomberg. Oil is trading near a twoweek low. Opec failed to agree wednesday to cut output to stabilize prices. At the vienna talks, saying it will refuse to lower production despite pressure from saudi arabia. All the options are on the table and they will be discussed. We need the rationale in any decision we make to be conclusive. Lets get the latest, we are on the phone now with a reporter from a vienna. Talks aboutil opec the deal. The details are shaky. What happened, if there is no deal . Good morning. It is up in the air, there is no deal. But anything could happen. They could agree not to meet for six months. It took months for them to meet again. If the price of oil drops, and many analysts are saying they could see oil in the 20s. Be sooner rather than later, if they are under pressure because of oil prices. Here . Anyone exempt there has been much internal strife and pressure, they cannot economically afford more cuts. Thisis and iranians is what the deal comes down to. The saudi arabia and say they will not accept the deal. If the iranians and iraqis agreed to cuts. Part ofw russia is not the talk here. Are you seeing any delegates from russia there in vienna . I am sure one of the delegates of russia has come. It is not an official meeting, but they should be attending before they go to the opec secretary. We are still trying to find out if any russian delegates are here. They are trying to figure out what is going on internally, before they confirm any news on production cuts. We are watching the latest on opec in vienna there. The clock is ticking in washington. Gore are just 50 days to until donald trump moves into the white house. Today we are hearing about three major cabinet picks, including a former foe. Ramy inocencio made his ok. Lets talk about the new team members. And very interesting names here, indeed. Definitely loyalty across the board, except when it comes to romney mitt romney. The commerceto secretary, the most recent name to have dropped in the past few hours. That would be wilbur ross. Win since donald trump did the election, but more about mr. Ross. He is a 78yearold billionaire and a former banker. He made his billions by restructuring a lot of industries in the u. S. , specifically, the u. S. Steel industry. It turns out he is also a former democrat, but in 2012 he decided ck that party and had to the gop. He backed romney. He stuck with the republicans and is now headed to the white house cabinet, as long as he gets approved by congress. If he does, he will be helping mr. Trump the Phil Campaign promises that include scrapping the transpacific partnership, which was mr. Obamas foreignpolicy cornerstone. He will also try to ring ago renegotiate nafta and call china a currency manipulator. Lets head over to the treasury secretary position. Mr. Trump wants Steve Mnuchin to take on that role. Insider and street has been criticized for that just a bit. He spent 17 years of goldman sachs. And donald trump on the campaign trail was lambasting wall street, that had a key role in the 2008 financial crisis. We still do not know his views on Interest Rates, fiscal policy, and dollar strategy. I also mentioned mitt romney quickly. Mitt romney and donald trump did have a dinner earlier today a couple hours ago in new york. Not sure what they talked about. But it probably ended up something about the secretary of state position because his name has been bandied about. Heard who he wants to have four health and transportation. With transportation, that is elaine chao. She is no stranger to the white house or the white house cabinet. That is because she was a former secretary of labor for the george w. Bush white house between 2001, as well as 2009. She is the first chineseamerican woman to ever serve in a u. S. White house cabinet. She is 53 years old and married to Senate Majority leader mitch mcconnell. If you take the position and she is widely expected to, she will be tasked with executing mr. Trillionrategy for 1 in terms of infrastructure to repair americas roads, rails, and bridges. We also talked about health and human services. Obamacareis having well within his a sites. Tom price is the man he is tapping for that. Inocencio there for us in new york. Thank you. Lets get the latest for the markets now. It is midweek, and midday here in hong kong. On theirasianpacific last leg this wednesday. It is very much the same picture we saw in new york, directionless trade, very mixed. It is very hard to make any clear direction. More importantly, when you look at the market, the volumes are quite light. That may have been the case for the most part. We did hit extreme levels because we entered december. One thing i want to point out, this third column we see on the right side of the screen. Very much red. Unwind we are seeing in china. A lot of contracts on the Commodities Exchange are down 5 just over the course of two days. That potentially can become messy. We will continue to follow that. As the moment at the moment, leading those declines. Steel not far behind, as is aluminum. Table, they of the are gaining at the moment. Let me shift to this quickly. At 2. 3 . Ear the dollar continues to weaken against most asian currencies, with the yuan leading those gains. Desley david, thank you very much. Later in the show, samsung. Hares hit a record high a sign company is heading for a split. Angie opecs deadlock over output. Independent Oil Market Expert joins us. This is bloomberg. Welcome back to Bloomberg Markets middle east, live on bloomberg tv and streaming on the radio. Lets get you a quick check of the headlines. Chancellor Angela Merkel has expressed opposition to further talks on turkeys suppression to the eu. She told her party the negotiations are effectively over. Last week, the European Parliament talked about secession talks. They accused erdogans government of a disproportionate crackdown following julys failed coup. France and International Institutions have stepped in with billions of dollars of aid for tunisia as the government tries to revive an economy from terrorist attacks. 1. 25 billion, while france said it would provide a quarter of a billion dollars annually for five years. They have barely rallied in the six years since the start of the arab spring. Appointed to a new term as head of his ruling party. Offer clues toy his successor. Select theto governing bodies. The Central Committee and the revolutionary council. Sinceved as president january 2005. Oil remains near twoweek lows on concerns opec leaders will fail to agree to production cuts in vienna later today. Lets bring in our expert who joins us from dallas via skype. Youre talking about opec and an agreement today, what is driving that pendulum . The challenges are too many. The unitedt money in states and are looking for market share is in the euro. We have the iraniraq issues, secondary data versus government data. We have a major increase in russian oil production. We have an increase in the value of the dollar. We have a new president elect, trump, with new energy policies. Some of them will affect opec members. We have all those issues that are very hard to deal with. They affect all parties. Desley do the opec nations have a choice of not presenting a deal . The legitimacy and importance of opec is constantly under criticism. What is your take about the fact that the group possibly may not have a deal at the end of the day . Most likely, just like everyone else, you have to have a deal. But my view is that opec was there a long time ago. There are an organization, people are beating the dead horse again and again, but the horse is dead. The horse is dead, you cannot beat a dead horse. But it boils down to this. Lets jump into my bloomberg now. Divide seems a small here. Iran proposing a cap of 3. 975 million a day. Todi saying, no, you have cap edit 3. 7 million a day. Algeria trying to play the middleman here. But it really is about the Global Economy and what that means for these two nations. Only the saudis are the saudi arabia is the only country in the world right now where they can compensate for lower prices by higher production. Cannot do that. They are the only ones that can survive a lower price by increasing production. Others will suffer. They are suffering right now, trying to diversify their economy. But i guess they are the richest player in the room. Correct. But if you tried to rank all opec members plus russia on who is likely to benefit from the deal the most and who the least, you will see russia, iran, and iraq will benefit the most. Saudis will benefit the least. So why go for the deal . Anas, how much downside you think the markets will be able to accept if there is no deal . In the market already priced no deal . Anas not all of it. If we end up with a deal where a stock opening 3000 barrels today, it will be mostly carried by saudi arabia. Then prices will fluctuate or go to 56. He level of 53 if we have no deal, prices will collapse to about 35, 36. Is, will theave saudis increase production than . If they do increase production, prices could go lower. Desley who is to blame if there is no deal . After all, it is the share they split opec into two halves and those two have cannot halves cannot agree at all. Angie thank you so much for your analysis, joining us live from dallas. Coming up, chinas old economy looks to be roaring back just as its new economy slumps. Is goingind out what on, just ahead. This is bloomberg. Desley welcome back, you are watching bloomberg, i am Desley Humphrey in dubai. Angie the economy seems like it is coming back as it rose to a threeyear high. Bloomberg intelligence, the gauge of cargo volume, loans, withuse, and a weighted average. Those are the index is he looks at. Thisg a look closer into with our editor, malcom scott. He did not name this, this was back when he was a provincial official. He was asked what he looks for in the economy. He said, some of the gdp numbers may be there. Economye some of the was very different back then when he said this. It was very much an industrial economy. But people still question this index. It is roaring back to life. In september of last or it was down to 1 year on year growth. Now it is raising back in double figures. That is according to this aggregated proxy measure we put together here at bloomberg. Indicate goodt news or bad news for the economy . Malcolm it depends on your perspective. For the Overall Economic picture it is good news. Manyeconomy has defied since the start of the year. This is a stimulus on the monetary fund, the fiscal front, and that has fired up the market. It has the coal trucks flowing on the trains again, steel generators back at work pumping steel. That is good news for Economic Growth but bad news for the rebalancing story, which so many officials have put so much weight on. Tos shift to transition and green energy, to consumer services. That is taking a backseat right now. Angie why do you suppose . Do you have to go with the playbook . Malcolm it does work. Angie but at a cost of sometime in the future. Malcolm you just have to look to the skies to see what that cost is. The economy is growing again. But what about those reforms that have long been promised . We shift to those greener, leaner forms of Economic Growth. That seems to be on a backseat. Gaugeenergy or economy has stuff like come medical conception, clean energy production. It is falling back to its lowest growth. Still pretty robust. But at its lowest clip since it was put together in 10 years of history. Angie absolutely. And what will the next 10 years bring . That is the question there. Malcom scott, we look forward to telling us about this. Coming up, the most valuable company headed for a shakeup. That is coming up next. It is 12 30 in hong kong, a 30 in dubai, and youre the headlines from around the world. Failed opec members have to get their distance from production levels. Hinting saudi arabia should shoulder most of the reductions it is asking for. Is said to abandon the deal unless opec members agree unanimously to reduce production. More details of Donald Trumps cabinet. Mnuchin is is said to be the new u. S. Secretary. Bloomberg, the second bannonsowing steve choice as chief strategist. Name another wall street figure, wilbur ross, as his commerce secretary. Growing financial distress in china. Of they climbed a record 35 basis points this month. Has made chinas Financial System more vulnerable to systemic shock. One girl lender has one third of its loans overdue. North korea faces a sharp cut in cold reductions aimed at the regime for septembers nuclear test. Bloomberg has a copy of the resolution which Officials Say would deny on gang 1 million a year in hard currency. Gyang 1 million a year in hard currency. I am haidi lun, this is bloomberg. Middle east company that runs says it may file for an ipo. They are in talks with banks to sell shares in the next 18 months. We are fortunate enough to have the founder and managing. Irector of the group thank you very much for your time this morning. You have got lofty ambitions. You had a wonderful start raising 50 million when you first kicked off. Youre at the position now where you are looking at an ipo. Is through the ipo plan and what your strategy is. Back in 2013. Mena we wanted to capture the growing demand for Consumer Online regions. As ated to structure imena business that is large enough to have flexibilities napoli to build our own businesses but also to buy into existing highgrowth, online businesses. We had a very specific strategy to focus on Online Marketplaces that have already been Proven Winners in emerging markets around the world. We have been lucky enough to start at a time that enabled us to own some of the largest and best positioned Business Models in that region, such as horizontal classifieds, automotive marketplace, online restaurant reservations. A feel that evolving into Public Company brings value not only to our investors, but to the community at large because we can have a platform that allows for liquidity. Int we have noted is that other emerging markets, similar Business Models, have been successful in creating proxies from other regional and International Indexes to participate in their investing. Desley so youre not in the private equity model, youre looking at ipos. Tell us about the size of the ipo, the portion of the business you want to ipo, firstly. We are looking today in an International Market and doing a dual listing market. Mena Institutional Investors in International Markets value online businesses and are to participating in those online businesses for the longerterm. Taking that into consideration, the ipo will have to be significant to be able to attract such ipo investors from International Markets. So we are thinking a little more than 100 million. However, before the ipo in the next few months, we are going to do a preipo which will enable us to complete our plans and be ipoready. Desley what percent is that of the business . Khaldoon it is tough to say. We are growing very quickly. In the last 12 months, all of our businesses grew at least two to three times. The markets are changing quickly. We hope that it will be a very good market. It is very tough now, maybe in six to eight months. Six to eight months ahead of a 18 month ipo. A