Emirates, 5 00 a. M. In london. I am yousef gamal eldin. I am sherry and in hong kong. Welcome to Bloomberg Markets middle east. Risk off sentiment, the dollar gaining, the yen trading near onemonth highs, but the question comes to gold, now rowling for a seventh rallyingve session for a seventh consecutive session, but investors in a tricky position there. Is in thee excited he gold trade. They are not expecting that much. Gold has rebounded 6 since december lows. Let me show you the chart you should pull up on your bloomberg, the implied volatility for that gold trade, twoyear low, your line in white. We have added the 10 year breakeven rate, the key gauge for inflation. And the world,st but it is a decorrelation, the biggest of urgent sense december 2014. As the data shows, expectations relatively neutral given the talk we are seeing in this market. We are seeing markets a ia, confused across as trading all over the place, although the regional benchmark declining. 2 , hang seng gaining four point first gainingp. 2 , hang seng as well. Intohaven plays coming action. Everything has to do with that brexit speech from theresa may later on tuesday. Theresa may set to announce the u. K. Will pull out of the eu Single Market when she sets out her brexit plan later today. The british Prime Minister will say she has no interest and a half in, half out approach. Lets get more with sophie kamaruddin, so we are bracing ourselves for hard brexit. Sophie the pound has been moving ahead of this speech. Theresa may has kept her brexit cards close to her chest. The next tract released by the Prime Ministers office preference for a partial membership in the eu. Here are some excerpts from her speech. Do not seek to adopt a model already enjoyed by other countries and do not seek to hold onto bits of membership as we leave. Signal plans to quit the eu Single Market and take a new trading relationship lock. The bal bold 12 point plan is what will reportedly be announced. What do we know about this 12 points . Sophie the telegraph reported key objectives amount to one big goal, a new positive and Constructive Partnership between britain and the eu, gaining control over immigration, protecting rights of british expats, restoring power over lawmaking to the parliament, theng the u. K. Out of jurisdiction of european courts, and signing major freetrade deals. Deal foron was a big voters, and without free movement, the u. K. Cannot remain part of the Single Market. Todays speech is being billed as theresa mays complete and andl plan for negotiations is expected to be a disappointment for business groups hoping to maintain the classical ties. Jobs ande a shift in operations from london, so in a nutshell, theresa may is to make it clear that a watereddown version of brexit is not acceptable. Thanks, sophia. Lets add a few more elements and see whats happening with the markets. Juliette saly has all the details. Juliette im watching the pound, gaining back some of yesterdays losses, up. 2 against the dollar, but still handle, the level it felt to yesterday following that sunday times report which essentially leaked a lot of what to reason may is likely to say later today. This is the first time in the last couple of days that we have seen the pound at this level since that october flash crash. It has traded in a tight range and has been unable to push through a dollar 30. A lot of analysts saying that if we see more shockwaves from theresa may speech, you could see the pound get back to that 118 level we saw immediately following the october flash crash. Having a look at the euro against the yen, we have seen some strength coming through in the euros relationship with the yen. You are saying it stronger their against the dollar, up like. 2 . In terms of asian markets, a wasd picture as shery indicating, strength from hong kong, reversing losses from yesterday, and that index back to where it was on friday, but look at the shanghai composite, down. 5 . Session of sixth losses from chinese equity markets. Yesterday, that big plunge in shenzhen, falling 6 before theecting, the longest losing streak since 2013, concerns about the quiddity there. Of the in this part world, two hours from the opening of the emirates markets at 10 00 a. M. Local time. A mixed picture, earnings from bd, not giving reason to be positive. Downside pressure and saudi arabia, down almost 1. 6 , the biggest drag on major world gauges. Each of slightly lower from Turkeys Central Bank draining cheap funding to support the currency. It has reduced that cheap source offered banks and attempt to provide a floor at 3. 807. Lets check in with first word headlines from around the world. Rishaad the imf cutting its outlook for saudi arabia, expanding. 4 , lower than the october production, which was 2 , the imf pointing to challenges in the kingdom. The reserve bank of india has raced limits on withdraws from atm and currency accounts, 10,000 rupees per day from machines, 100,000 from accounts. Prime minister modis cash tockdown may lead tos stennis measures and next months budget. Vietnam to allow greater ownership in banks. An exclusive mentor view interview with the Prime Minister, he said the new team will be introduced this year, indicating the government may sell out completely from its more troubled lenders. He is expecting even higher growth beyond this year. The Economic Growth of 6. 7 for this year, and then and even higher growth rate for years to be able tot we will achieve an average growth rate of 7 for five years. Of course we see some sentiment and tendencies of protectionism around the world, however, that is not the major trend. I believe the main the trend and tendency is still economic integration. Investigations under way into the crash of a 747 cargo plane which killed 37 people. Operated by istanbul based company flying from hong kong and was attempting to land. The cause of the crash is not yet known. The company has had its aircraft in its fleet since december 2015. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Thanks. Lets get you a preview of what is coming up. We are live for the World Economic forum. For the worldos economic forum. We will hear what xi jinping is about to say on Climate Change, but first, the u. K. Likely to pull out of the eu Single Market. We will discuss the consequences and implications, up next. This is bloomberg. Yousef welcome back to Bloomberg Markets middle east live on bloomberg tv and radio. I am yousef gamal eldin. Shery i am shery ahn in hong kong. A sons wants to boost its stake in listed units to protect them from takeovers. Cementing control over the companies is said to be one of the incoming chairmans main priorities. Natarajan chandrasekharan takes over next month after heading Tata Consultancy since 2009. The former chairman was ousted in a boardroom coup. Yousef we will be watching reliance when trading kicks off in mumbai after earnings beat estimates. Third quarter profits, a nineyear high, jumping 10 to one point 2 billion thanks to higher petrochemical earnings and investment games. This comes as the countrys richest man invest billions in 4g mobile services and retail. Malaysia airlines ceo says he sees an opportunity to break even in the Fourth Quarter this year. Speaking exclusively to bloomberg, he says the worst is behind the airline and expects to post profit next year. Key rolexplained the he sees china playing in the carriers business plan. For us, there is massive opportunity in china. The government has targeted 150 million more people to have a passport. Them, 30 t country to of the population of malaysia speaks chinese. I think we have a massive opportunity to get another 4 million or five main people in the next 56 years. Yousef theresa may said to her announced her countrys plan for the exits from the European Union later today. Lets take a closer look at this story and what is ahead. Great to have you on the program. This speech, lots of anxiety in the market around what to expect , the prospect of a hard brexit keeping everyone on edge. Could this be an negotiating tactic to establish a strong position for the next two years . I think it makes a lot of sense to not give away too much before formal brexit negotiations have been started, so it does make sense from that perspective, but also make sense from the point of view of doing justice to the brexit decision that was made last year. The u. K. Population, the electorate there, wanted a clean break from the European Union, and a lot of the discussion about hard and soft brexit has made the situation, or the fromrance, of an exit europe look a lot less clear. The points it looks like theresa may will make regarding because somes and Single Market makes sense. Yousef the british pound has taken the brunt, becoming a political currency according to analysts we have spoken to. The state of play when it comes to analysts, showing you where analysts are at depending on the range, 1. 1 51 point 17, and tells you which banks are making those callss. You can switch it back to the First Quarter and see how that is slightly lower. What is the trajectory here for the pound, as difficult as it is to make a call ahead of the speech . Next three months will be difficult for the pound. We have a one point 18 forecast for sterling against the dollar. I think that reflects a sense that the pound can go lower. It may go lower still historically. It has fallen in the last 3040 years, the lowest point was 1. 05 in 1986 due to an extraordinary situation due to oil prices. This is equally uncharted territory in terms of the negotiations and the event risks occurring. Them threether for months, the grounds are there for the pound to recover. I dont think it will stay there for the whole of the year. As we go through the rest of the year, the realization will gone that the u. K. Position is not bad as perceived, and the boe may raise Interest Rates towards the back end of the year, giving the pound lift as well. Shery great thing you mentioned the boe. We are now hearing from mark carney talking or being worried about postbrexit growth. Take a listen to what he says about investment in the u. K. Are in a situation right now where for understandable reasons Business Investment has been dampened by uncertainty, not because, there is access to finance, but uncertainty about ultimately what our relationship will be with our largest trading partner, and that is weighing on Business Investment. Conundrum much of a is the boe in given that we are seeing Growth Prospects falling, but inflation continuing to rise . The inflation aspect is something the bank will have to consider as the inflation rate approaches the 2 target, so i suspect that they will be in a situation where an Interest Rate the looks quite probable further you go into the rest of the year. Growth outlook i think is less certain. Been caringou have is upgrading its forecast for the u. K. , the boe indicating got it wrong over brexit, and the imf is indicating the same thing, so the negative Growth Outlook being pushed further down the road for the u. K. Into 2018, having seen 2017 raised, i think that is still subject to uncertainty. I think it is a situation where organizations like the imf are underestimating the potential growth in the u. K. Shery we are also seeing euro area inflation gathering pace, the ecb policy decision this week. Markets not expecting much. When do you expect them to act and what will they be focusing on . A lot of the inflation in the energyne is coming from and commodity price increases, overall, be transitory so inflation going up a little bit at the moment because of those factors. Whether they become more entrenched will depend on whether growth picks up consistently. The upside for growth in the euro zone is limited, lower than perhaps some of the other developed world economies, so the european position or the ecbs position will certainly be to build policy steady at this weeks meeting him a but i imagine they will remain on hold with its qe program in tact through the rest of this year. Yousef briefly, how much is the risk from the fragile at tying Banking System . That has been a factor rumbling on for a number of months. It is one other area of vulnerability within the european patchwork you are seeing, greece still stumbling through its reform program, no real solution provided there. In terms of the italian Banking System similarly, that focus will likely remain until there is a deal that i suspect the impact will be felt. Yousef always a pleasure to have you on Bloomberg Markets middle east. Tim fox. Vietnams Prime Minister expect stronger growth in the coming years, but admits there are challenges. That exclusive interview, next. Stay tuned for it. Really worth it. This is bloomberg. Yousef welcome back. You are watching bloomberg. I am yousef gamal eldin shery . In hong kong. Vietnam to allow greater Foreign Ownership to quicken the overall of its financial system. In an exclusive interview, the Prime Minister says the new ceiling will be introduced as early as this year. Banks are among the biggest gainers on the benchmark index. Bank of Foreign Trade for , 4. 5 percent for vietnam joint stock commercial. While there are plans to open up the economy, the country still faces big challenges. , 4. 5 percent for vietnam joint stock commercial. Years of reform, the vietnamese government and vietnam has achieved a lot of accomplishments, however, we are still faced with many challenges , namely that our economy remains small in terms of scale, macroeconomic stability, restructuring of the economy, they are making slow progress, and that leads to low productivity, some issues with the income of the people and poverty, and all of these outstanding issues lay out the coals and the mandates for the government in this term. That requires us to improve the restructuring of the economy and all sectors, reduce corruption strongft, and develop a force of officials who are able to better integrate the vietnamese economy into the thed and implement commitments vietnam has made and all the free trade agreements we have signed. Haslinda as you have indicated, it is a challenging environment. What are the prospects for vietnam this year and next year given the slowdown in the Global Economy and rising antiglobalization sentiment . The Economic Growth of 6. 7 this year, and a higher growth rate for years to come, so that we would be able to achieve an average growth rate of 7 for five years. Sentimentse see some and tendencies of protectionism around the world, however, that is not the major trend. I believe the main tendency is still economic integration, especially in this region, and that also includes the united states, so thats why vietnam aims to capitalize on this tendency to ensure our economic expansion. Haslinda are you saying you are not concerned about the rising antiglobalization sentiment which has already derailed the tpp . Now there are reasons why i am not too much concerned about protectionism, because we have a growing Business Community that is reaching one million enterprises in 2020. Our people are very dynamic and love doing business, and we have more than 20,000 projects to be implemented with total capital of 300 billion, and those are the important foundations for building an independent economy. Its general term in definition is not against global trade for an independent economy. That was the announced Prime Minister talking to haslinda amin. Stay tuned this is what is coming up on Bloomberg Markets middle east. Saudi arabias master plan to and more on Oil Renewable energy. We will take a look at the blueprint, coming up. This is bloomberg. This is a look at the first word headlines. Theresa may set to announce the u. K. Will pull out of the eu Single Market tuesday. The british Prime Minister will say she has no interest in a half in, half out approach. Start shifting jobs from london to europe. Urging nations to join the tpp as soon as possible. Donald trump campaigned on opposition to the tpp. Speaking in hanoi, shinzo obvious that it should pave the way for partnerships. Achieving tpp as the Foundation Going forward, i should like to strive towards highquality and ambitious agreements such as rcep. Japan would like to be the standard bearer for the free trade regime at all times. Donald trump has met Martin Luther king jr. The third to discuss what king described as americas broken voting system. The son of the murdered civil rights leader said the talks on the holiday honoring his father focused on boosting voting rights. Boycottof congress will the inauguration after criticism by donald trump of senator john lewis. ,oble buying Clayton Williams the merger creating the secondbiggest operation by acreage in the southern Delaware Basin of the permian shale formation. Deal provideshe more than 4200 green locations with resources of more than 2 billion barrels of oil equivalent. This is bloomberg news. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Yousef welcome back. You are watching bloomberg. I am yousef gamal eldin. Shery and in hong kong. Breaking news out of japan, the final