The regions are targeted by the gulf carrier estate. Acrosss 8 00 a. M. Emirates, 4 00 a. M. In london. I am shery ahn in hong kong. It, a sea of red. I dont know how else to describe this. Take a look at the function on bloomberg. You can see the red across the board. Japans nikkei down 2 , plunging. We have seen the yen strengthened for its seventh consecutive session. That is playing into the markets. 3 million leading the declines among asian currencies. We are also seeing sovereign bonds, the yields continuing to rise. Treasury yields falling in asia. The fourth executive session. A lot of people have tried to explain this coming from wall street. Look at this chart that i have for you, it shows that it might not really be. This slum may have very little to do with trump or washington at all. Investors have not been betting on potential changes. You are seeing multinational gaining around at the top panel. Stocks are underperforming the s p 500, and so on. This trade may be off right now, been on forave also quite a while. The seller could have a desk selloff could have a different meaning. Yuse been on for quite a while. The seller could havef that ise market. Could this be the end of the trump trade wealth . Take a listif you that the s p 500. Some of the key shares were bank shares. They were not technology shares. A look at this chart, i pull it out for you and it tells the story of the scale of that over 1 drop we saw. It has not happen in 110 days. Upper bound, lower down, this shows you the magnitude of 1 changes back to 2008 your it good thing here, historically, that is not necessarily a final doom and gloom to come. The index had positive returns and 3060 days after its nine longest running streaks were over. The only time it does not happen was in 1957. Arguably, food for thought there. Lets cross over to this part of the world. It is just under two hours away from the opening of the emirates market, dubai and abu dhabi. It was a quiet day, especially when it came to device stocks. Those were the lowest volumes of the year. Grinding to a paralysis. Still gains of half of 1 . Consumereing discretionary. Let me show you what is happening with kuwait, they are extending what has been the best performing index this year, almost 20 up there. Also passive inflow is helping boost qatar. Its a get desktop about what is happening with risk in some of those key asset classes. Just under 51 dollars a barrel. Down a 10th of 1 , extending of four been the run straight days. That is the longest rally since early february. The s p 500 future is there, caught lower. A quarter of 1 . From thets check in first word headlines from around the world. David chinas benchmark sevenday money market rate. Benchmark is falling 54 basis points. We are talking about two and a half percent, 2. 56. The biggest drop in more than three years. The Previous Year has been injecting hundreds of billions of revenue into the Financial System after smaller lenders failed to make debt repayments back in march. We are told these institutions missed payments for Rural Commercial banks. In china, they help drive japans exports to a high. Shipments jumped 11. 3 , while they left the trade surplus up 11. 3 billion. Exports to china up 28 . The shipment to the u. S. Crew is less than half of 1 . The trump places a lot of emphasis on deficit raised on the perspective of washington. For japan, it is a bit challenging because that trade deficit with the United States continues to be large. The japanese have to decide to they want to push on tpp, if they do, will that continue to antagonize washington . It is impossible for them to fix a 60 deficit overnight. Is to, the best outcome continue to lead on tpp. Sales in theebt middle east. Saudi arabia is trying to raise it and its on sale. To cap the market for 10 billion. Soldslamic bonds could be as early as the seventh quarter. Aramco is expected to also ipo,h its next anticipated which could be the biggest share sale in history. They aimrom geneva say to accelerate the Nuclear Missile program for the first strike capability. The north Korean Ambassador to the u. N. Said he is not afraid of possible u. S. Sanction. Reports this morning them tokyo say north korea may have textile missiles earlier today. Global news, 24 hours a day powered by more than 2600 analyst and analyst in more than 120 countries. I am david ingles and you are watching bloomberg. The u. K. Has joined the ,lectronic devices to ban them tablets, laptops and dvd players. The washington suggested terrorists are planning new attacks. Lets get more of the story on editor. S managing great to have you back on the program. , weere scrambling yesterday understand the impact. I will just quote the reaction around the newspapers. Gulf news quoting nicholas weaver, saying it is weird because it does not match a conventional threat model. If youre interested in turning a laptop into a bomb, it could work just as well in the cargo areas. U. N. Have perhaps thought that the airlines would be more aggressive or played the protectionist card. I have not seen any of that. Came out with a tongue and chief reaction saying on twitter, they put out a video saying we have 2500 channels you can watch. Who needs a laptops and computers . I think the reaction will be that we have to live with this. They might get together and see if they want to play the protection card. They have 96 hours to comply and they will have to comply. I just got back from tokyo and i had to defrost my bag. In terms of where this goes from here, now the u. K. Has joined the bandwagon, could this go further . It is not only the laptops being damage, but if you have Sensitive Information and proprietary information, probably dont want to put that in a cold where you can cease anybody access. Business traveler, nevermind that use of it. In terms of who is falling, the u. K. Followed very quickly, which could indicate they had some sort of heads up. Canada said they were going to mullet as well. I dont think anybody at this point can afford to not have the u. S. Market. I dont think everybody wants to be viewed as the week link. Everyone is looking to see if they want to follow this. A lot of airports, you dont ,ave separate security checks depending on where you are traveling to. Basically, if you are in dubai you say, it do we want to do this for everybody, or do we want to have separate areas if you are going to the u. S. To go through . There will be a lot of disruption in the days coming. I think a lot of people are planning with how they will come to terms with this. Shery especially the passengers that have to go through those airports. The reaction from airlines, airports, the private sector. What about the government reaction coming from Different Countries . Not been any government reaction. It may be the case that they are trying to get to the bottom of it, certainly, all of the reports that we saw come out overnight were that there was some sort of threat. Intel theytest picked up suggested that something may have been imminent. I think from that point of view, it is very difficult for government to take issue with it. At the thing time, they are probably strategizing is he how we can get together and have a reaction. The socalled super connectors, these airlines like emirates have a lot to lose. If you are in singapore, mumbai or nairobi, you have to come to mumbai. You can go to europe to go to the United States. There are vulnerable from that point of view. They are facing strong headwinds already. I suspect they are getting together and we will see reaction in the coming days. Out of the gate, everybody is towing the line on this. Shery thank you so much for coming on. Bloombergs manager and managing editor or it still to come on the show, opec suggest it is committed to a royal oil at 50 a barrel. Ocbc gives its gives us its take. First we look at the performing performance of the markets. Why some analysts a turkey has an outlet. His are not looking too good for china. This is bloomberg. Shery you are watching Bloomberg Markets middle east. Live on bloomberg tv and radio. I am shery ahn in hong kong. Yousef lets talk more about the fed. It has been eight big week. A lot of speakers continue. We have heard from new yorks and george rosen bag. She called to continue with gradual Interest Rate that is shrinking its foreign have to lean dollar Balance Sheet this year. Further removal of combinations will be needed. My Current Assessment is that the pace of removal will not call for it in each meeting, but it does mean more than the one increase seen in the past two years. Heard youterday we can support two or three rate hikes this year, while minneapolis is a loan defender in the march meaning march meeting spirit we have janet yelling speaking this week. Guests all of this playing into the market. Lets bring in strategist from bank of singapore. Thank you for joining us. But start with the dollar. We are now seen get a pro to a key seeing it approach a key and technical level. If you take a look at bloomberg, the bloomberg dollar index is now approaching the bloomberg 1220, 12 16at level. Right now at 1223, that would be 200 days moving average. It has not really reached that level since october. Bullish dollar positions have seemed to evaporate. Wink and the dollar find a bottom when can the dollar find a bottom . I think the initial dollar weakness we have seen was a response to a dovish act. That was until yesterday where the story for the dollar has changed somewhat. Even the concerns about trumps policy, possible policy delay as a result of not getting enough vote to repeal the obamacare. That would hold out the tax reforms. That has taken a hold on the reflation rate. What we have seen since yesterday has been much more narrow in nature. Think therterm, i story could be changing somewhat, but overall, we are the point where dollars will not be great, it will not be bad, it will be just good here it good. Shery you know it has happened with the dollar that has made the story compelling . It has come on the back of these gains of the euro. Even before all of this political election happened in france or germany, where can we see the dollar euro had now . It is still stuck with india, 106, but i am wary about the risk, given we are stuck. We are seeing divergence in the concerns in europe. U. S. , concerns about policy paralysis in washington. In europe they seem to be receiving concerns about the political risk. That its self could drive euro theer, plus the fact that also week in could eaken as a concern about trump policy. We could see it hit 105 or 110. Yousef just to quantify some of that risk, you should pull up on your bloomberg as well. I have put it with the French Election of 2017. Implied from the betting on. Three months with reversal. You can see how that has eased off based off the look latest poll figures. What will be the next catalyst for the euro . Next catalyst for the euro could be, provided the , i thinkor the euro the catalyst for euro could be the falling momentum that we are seeing in the economy. Ecb has been said about the , possibly even raise rates before ending qe. That itself could support it. There could be room for euro to , in terms if politics of the French Elections receives further. Need you to weigh in on something. We are seeing capital flows rush into the emerging benchmarks. The reality is there is still a lot of risk. Andare bearish on the ruble bullish on the indian rupee, why is that . Thatnk the ruble is has been a money chasing after kerry with low volatility environment, until yesterday. Not quite sure how volatile it will pan out in terms of how the concern over trump policy delays will pan out in light of this Obamacare Repeal vote today. Think, in terms of the ruble story, it is well understood and it is still a good story and wellpositioned. Honorable for the price of the kind. The ruble itself seems relative to the old price. The oil price would benefit the is all ine india part. Given what we are seen him terms of the particle picture in india itself, that should provide for the rupee. If you are looking for a routed value. It could be the one. Yousef we will see how that plays out. Thanks for joining us on the program. Lets get a few lines hitting bloomberg. From China Overseas land, nets coming in at 37 billion hong kong dollars. We have a few notes in terms of development. They are saying they are cautiously optimistic on china property. They also see Stable Development in hong kong. Stocks trading lower and a broadly negative market. We will keep up the story for you. Dont miss some of the big guess we have for you on bloomberg tv. Chairman michael who will join us live from our London Bureau at 2 30 this afternoon in hong kong. In bloomberg surveillance we will speak to Andrew Wilson at 5 00 p. M. Hong kong. 8 00 p. M. If you are watching late at night in sydney. Tells us where he sees room for growth, and whether trumps travel ban is a sour point for business. This is bloomberg. Marriott sees global hold tell growth being fairly anemic. He was speaking at the companys Investor Base in new york. He was asked about the outlook for the Hotel Industry and the potential impacts of president trumps travel ban. You think about how difficult it is to predict the next quarter or year, we try to say here is how we think our business will perform over the next three years. What we are laying out has fairly anemic store growth, plus 123 . Essentially this means, how much is the revenue line growing. No great thing. On the other hand, we are talking about opening a hotel ever 14 hours for three years. 300,000 more rooms. Record forry much a the company. Part of that is because we have acquired starwood so we have a bigger platform. A lot of that is where we are. That tends to lag a little bit to travel cycle itself. Of those 300,000 are already baked in the cake. You know you will have rooms and how many have yet to be contracted . 90 of those rooms are identified. Some may not be definitive contracts signed, but we are talking to partners about specific hotels for 90 of those rooms. This is a fairly predictable hit of our model motto. Lets talk about that macro backdrop. You rose you raise some concerns about the immigration and trade policies of the trump administration, then preand inauguration might impose. We have a much better idea of what those policies might look like. Doing . Do we . Yes, we have seen restrictions on Electronic Devices for 10 predominately muslim nations. Do feels concerned . . Yes. We get the that the market continues to be optimistic. The market has some wisdom. It does not always get things right, but it is a great collective source of wisdom. The market is saying, we think the economy should perform better in the quarters ahead, maybe the years ahead. Then we thought six months ago. The fact that that continues to be the case, i think is a positive sign. On the negative side, we still i stayed do we really still have that much clarity . Trade at large, we are not engage with negotiations with the mexican government, the chinese government. As far as i can tell just by the way i am not in the middle of any of this. Do we get a sense of intentions . Sometimes those intentions are we want to deal and we want to get a deal. Rattlingentions are the papers and we are not sure we want a deal. The travel bans are their own particular issues. That impact travel more. Defector factor those things into your mediumterm outlook . Know it we are looking at granular data every day. The travel ban decisions have not yet had a profound impact on travel. Of those 285,000300,000 rooms, where are we going to see most of that . Thehe u. S. Will still be disproportionate shares. About half the rooms may be in the United States. China would be the next big place. In china we have about 300 hotels open, 500 hotels in the pipeline. Yousef that was president and ceo of marriott international. Oil sentiment is slipping as u. S. Stockpiles rise. We will ask what opec and its friends can do now. Wti holding a 48 and . 12 a barrel. This is bloomberg. Livestream your favorite sport at the airport. Binge dvrd shows while painting your toes. On demand laughs during long bubble baths. Tv everywhere is awesome. The allnew Xfinity Stream app. Xfinity. The future of awesome. Its 12 30 here in hong kong. These are your first word headlines from around the world. She expects more rate hikes this year, but not every meeting called on to centralbank to continue its gradual rate increases. She sees the economy spending above 2 . Shrinking thes fed Balance Sheets in 2017. U. S. Supreme Court Nominee neil gorsuch says that he would not hesitate to rule against donald trump if the lot required it. He also refused to say whether for the on travel muslim nations. He did say that the constitution has many protection from religious minorities. Made no such promises about how he would rule on any decisions. No one in the process, from with an i was contacted expression of interest for a potential interview, to the time i was nominated, no one in that process, mr. Chairman asked me for any commitments, promises about how i would rule in any kind of case. Israel is asking china to in companiesions after meeting the president. Beijing seems willing to live currency controls for those who want to invest in is really tech. Last year one third of israels tech came from china. The controls were in post to stop the outflows. Over to egypt, the country has approved plans for a tax on the acquisition of local companies. It has to be 3 10 of 1 . Also in cases where 33 or more of the local form is sold. From is sold. They have agreed to delay the implementation of the Capital Gains in the last three years next to three years. Local news, 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. I am david inglis, this is bloomberg. See one cannot really market that is in the green right now. For truly markets falling. Lets get the latest. The correction that we had to have that a lot of analysts are saying. We do have to remember that the regional index has been trucking at 21 months high. Emerging stocks have been higher for eight consecutive sessi