in the saudi market. going: so where are you in asia exactly? says by the first of march -- and the third of march, we will be in hong kong. yousef: when i spoke to the head of the cma a few months ago, he said the more money comes in, the better. how much capital are you targeting or hoping to secure in the months and years ahead to diversify? know, it will follow the indices, so we're working closely with them as providers to give them that flow of liquidity. ist we have also been doing talking to also active investors to just educate them about the saudi market, about the changes, and momentum is very positive. yousef: you're not going to give me a number. 200 billion, 500 billion? >> [indiscernible] talking about the saudi aramco ipo and other changes to learn in foreign investors. this is bloomberg. ♪ tracy: welcome back. you are watching bloomberg markets: middle east. i'm tracy alloway. yousef: and i am yousef gamal el-din. we talking to the ceo of these saudi stock is trans. saudie talking about

so that said down a lot of in the saudi economy. ♪ >> saudi arabia in the first time in over a decade, thanks to the economic weakness brought on by lower oil prices and a stronger dollar. we spoke about the outlook. >> so what we see here is the soldoff of cracks in the saudi economy due to the low oil price. his could be a very brief fenn no, ma'am. we could see inflation picking up all over the place and that brought inflationnd focus o that. the saudi inflatithis has caused budgets and deficits need to be kept up. that will set down a lot of things in the saudi economy. war with about in terms this means across the income. the perform appears has converged with the equity space. and going for the dollar to look upward or downward. >> i think the fixed income market is a growing market and that is quite positive. we saw some issues last year and definitely, we will see more. up and coming is three and four big issuances and we should remember that you didn't have that as a class before. this is new that a whole region now continues issuing new bonds and from a very low to debt g.d.

saudi arabia and saudi arabia's role in any outcome for this challenge. >> sure. i actually wanted to talk about four days. -- things. a quick understanding on what the coalition has achieved on the ground and what i understand, saudi arabia's objectives are in yemen and how they play into a possible peace scenario, a little bit about the iranian role in yemen, and what the kingdom expects from the trump administration compared to what it expected from the obama administration. recently as we stand right now, 82% of yemen is controlled by coalition forces. a library is that have very high population density are not under control of the coalition, but that is the perspective of the landmass. it is important for international interests and u.s. maritime security interests. data next --ng to hudaida next. recently, special forces from the uae and saudi arabia illuminated 500 al qaeda operatives -- eliminted 500 al qaeda operatives. that was a very big advancement for the coalition. now moving to the saudi objective, that has been something that has really confused. y

yvonne: plus, investing in saudi arabia. they plan to attract more capital. the interview is next. ♪ yousef: you are watching "bloomberg markets: middle east" live on bloomberg tv and radio. i am yousef gamal el-din in riyadh. yvonne: i am yvonne man in hong kong. the container company that rose from the ashes of hanjin. initially workl with customers in thailand and vietnam, as well as korea. start work on the u.s. west coast in april and has secured 12 ships to provide those services. korean airlines talking to delta about a joint venture, but the president declined to offer details. the deal would strengthen existing ties, helping korean and raising delta's presence in a should. he wants sales of 10 $.16 this year, a rise of more than $340 million. dynamicmanufacturers of random access memory chips coming under pressure for moderating price increases. 2.1 percentquoted a increase and contract prices in february from a month earlier after they searched by 33%. hynix is extending its worst loss in 16 months. nomuf: saudi arabia's surge. a big part of the s

he works in the saudis. the reason they have failed to take the capital of yemen is not because of some sectoral group. it is because they have failed against the will of they have failed against the will of the yemeni people. and the many people are being sacrificed and murdered because western countries are on the side of the saudis, because of their money, because of their alliance with the saudi regime. the saudis are, by the way, just like in syria... i entered your question! that gentleman has...m is not that gentleman. a committee said that these missiles are being used in yemen. i said that there are up used in yemen. i said that there are up to the sources, western diplomat saying this. i don't know where the missiles come from, but i can say that whatever weapons being used by the yemeni army against the saudis is incomparable to the weapons that the saudis have been using with the help of your government, with the help of your government, with the help of your government, with the help of the unit

is that the saudi's? who is fighting? is that because the saudi's are there. the saudi's came tm and but the saudi's are are not making the war in yemen. we are. this is our nation and we will fight, day by day. if they say something very important they met him the first summit few years ago. they said without any support we will keep fighting we will do that. but we will not give up. >> this is the bottom line of the issue. >> the country is not by four so we cannot accept, i really believe in that discourse. thank you. >> very quickly, the situation, yemen has one of the oldest tribal mediation traditions in the world. and one which functions. tribal societies very much in yemen. the thing is these have not employed or empowered this tribal mediation screw and tradition in yemen. the company is fragmented now. to some extent war is preventing them in the fact that the company has fragmented. the state has failed. so whoever they do not employ this properly. it now they are not doing it either. whoever is trying to make peace may spring the main powers togeth

-saudi alliance. so saudi intelligence has a very close working relationship with the fbi and with the cia, and i think that gave one of the reasons the trump administration the comfort, for example, not to include saudi arabia among the list of countries where it has concerns. i think that issue has been so aggressively handled and addressed by saudi arabia that any accusations that saudi arabia is funding terrorism or supporting terrorism are malicious. sharyl: how do you view relationship you are trying to develop with the u.s. and a relationship saudi arabia will have with america? shihabi: when president trump took office, funnily enough, you know the day of the inauguration, we felt that the persian gulf and arabian peninsula area became safer. the problem we had with the obama administration was that we felt the obama administration was very naive in its dealings with iran. and that iranian expansionism and trouble-making in the middle east, with hezbollah in lebanon, and syria and iraq, and pa

as you said, saudi arabia opened up to foreigners in 2015. they're looking to introduce t plus two, which in our view is the last remaining hurdle before they get included in emerging market end cease. we have two major end cease. we think given the precedence, ftse will happen early. while the other is a 2019 event but the decision could come in 2018 with inclusion this year. the size of that event will be one of the biggest upfwradse in emerging markets. saudi arabia, excluding aramco, is around 3% and you'll have more active. >> you made specific calls when it came to qatar are there specific calls about saudi arabia or specific sectors that stand to gain more in this new age of austerity-driven government policy in saudi arabia? because it is an inflection point a chance to make money in a completely different way, away from oil. >> looking over at the market in saudi arabia, we have a slight underweight. we're still concerned about what's good for the economy is not necessarily good for earnings and equity market. the government reforms

why does saudi aramco need to issue a bond? saudi aramco has a lot of thing on the cards. they are looking at doing at what will probably be the world's biggest ipo. the government is restructuring itself and trying to diversify away from oil, and aramco in itself is trying to diversify away from oil as well. the company is looking at investing $5 billion into renewable energy companies, so some of this money they are looking to raise could go towards that, and also going out to the bond market is part of saudi aramco opening itself up in preparing to be more transparent to investors and preparing to share more information about itself and its strategy. door to saudi aramco starting to open to international investors. that is part of the reason they are going through this process, getting themselves internally prepared for the sorts of questions they will be asked on an ipo roadshow. that toe are expecting happen next year. tell us more about how all of this would fit into that huge ipo we are expecting? matthew: saudi aramco in the last couple of weeks has been meeting wi

it's the saudi arabian oil company. it sits atop 1/5 of the global reserves and pumps or groups in the top four heavily traded oil companies combined. than $2 trillion. the profits are shrouded in secrecy. that they'll could soon be lifted. the title of the world's largest ipo belongs to alibaba, the chinese retailer. the sale of them would divorce that -- fourth that. proceeds would bulk up saudi arabia's sovereign wealth fund, a gold has gained urgency since droppede of crude has from $100 a barrel. they want to use the fund to create jobs for millions of unemployed saudi's in manufacturing, tourism, and other fields seen as crucial to the kingdom's political stability. exports from the rockefeller family first struck oil and saudi arabia in 1938. in 1980, the saudi government ought out the original shareholders and renamed the company. they fueled prosperity for saudi arabia. 90% of thes government's income and built the refineries and chemical plants and other infrastructure that formed the world's 15th largest econ

saudi arabia, as you know, is exporter,s a guest and saudi aramco will extend its long-standing strategy of demand for its crude. it has made the same move in the u.s., japan, and south korea. it has to, especially with shale producers fighting for global market share. there is also competition from russia and the rest of the opec members was so this deal and if it's both sides. both need a boost, a pretty symbiotic relationship. shery: exemplified without selfie, some calling it diplomacy. the relationship between saudi arabia and malaysia in the spotlight recently because of 1 mdb. has anything changed? the selfies says it all. nothing has changed. thing salman -- king salman brought a 600 person delegation. it also gave the king a 21 gun salute. the visit symbolizes stronger ties, bilateral ties were tested as saudi arabia was dragged into the 1mdb scandal. going forward, king salman also plans to visit the rest of asia, where he intends to discuss common issues, but no details have been given about the issues he will bring up. yousef: thank you. it is fascinating. it is where you see

you can see this is saudi arabia. in white.mirates you can see saudi arabia stabilize a little with the rebound in oil prices. it is still relatively high. what is going on? >> it is not just the rebound in oil prices. r, abu dhabi, had debt incidences. they tried to bring liquidity from outside into the systems. you had a real pressure building up. those bond issuance is help put cash back in the system. you saw anything of the pressure. the deficits really are here to stay. for the stronger countries you will look at less than maybe 5% of the coming year. for saudi, it is expected at 10%. the situation is still quite tight. but even if bond issuance is become a regular part of the funding situation first sovereigns in the region. >> the eye of the storm is the banking industry. how much will better margins from potentially higher rates help as these upset the challenges in flipping provisions and liquidity and so on? >> all banks everywhere are looking at higher rates. that is definitely a beneficial thing on the as

we are talking about saudi arabia. it is not just in saudi arabia, but we are seeing infrastructure spending continue in the region. does that mean that sector, the construction contractors, are expecting to gain? guest: the thing is, contractors have them facing huge problems in the past, especially in saudi and the uae. they have seen some slow down in payments. the infrastructure projects you are talking about are still there. in saudi, you have taken infrastructure mainly on the -- big infrastructure mainly on the big projects such as the metro and the airport. in kuwait, since last year, the government has been very and the fact that we have seen a big surge in , thattructure in kuwait has been a big driver in the markets, especially in long-term perspective in the banks. and the uae, the government has been, that has been a big driver in the spending, especially in dubai -- the focus is on tourism, and many of the projects being delivered or worked on in dubai are towers that size. yousef: that is it for this "be

the saudi's finally let me in. they would not let me in as a reporter so i got a job being a mentor to young newspapers to men in bin laden's hometown. it was a far better arrangement than being just a reporter. instead of being in the hotel, i was living in a middle class flat, i had a car and a job i had to go to every day, and i had these wonderful young reporters teaching me far more about their culture than i could have ever done on my own. and i learned things about saudi arabia that i think really helped me understand a lot about the culture. saudi arabia, for one thing, doesn't really have a civil society. what we are doing here couldn't be one. the idea of freedom of assembly is almost not unknown but rarely practice. just to give you an example. when i went there i was supposed to be mentoring young saudi arabian women journalists as well and i said where are they and they said you cannot see them. they are in an office under the stair well and i said i can't teach them if i can't see them. finally, it wa

for the saudis, this puts another crown jewel in their for the saudis, this puts another crownjewel in their or for the saudis, this puts another crown jewel in their or for you. the saudis will also get the right to supply up to 50% of the 300,000 barrel a day refining capacity. this is an outlet for some of their oil, for the saudis. for malaysia, joining an investor of this magnitude, after, this was a month ago that it was ended, it is a great save to buy it obviously, both sides see some benefit. but is one side benefiting more than the other? it will be hard to say. but when you see a deal go off and then a deal go on, i expect renegotiation and more favourable terms. who needed this deal more. look at the saudis, china andjapan, deal more. look at the saudis, china and japan, they will be stopping in indonesia where they are investing. they have a downstream empire in asia. they have been a big investor adhere. this adds to the portfolio. but i think the terms are ugly —— probably improved, which is why it is back one. the airline has 40% of the domestic market and is keen t

we have most of saudi arabia behind us. what other companies should we watch out for in giving beneficiaries off of the devaluation story? ahmed: look at companies that benefit from devaluation -- some have been doing well. we think there is more upside to that. those of the key benefits from evaluation. shery: how is egypt's devaluation different from what happened to asian exporters in the 1990 financial crisis? ahmed: you said yourself, exports. egypt is almost exporting everything. the story is different. there is not an industrial economy that will benefit from the export side. the only export argument we have is tourism. tourism is the key export. this is where egypt will be different, more on the tour is an story. has tourism recovers, that will be the main source of info. shery: i am curious. as someone who is watching the markets in egypt from afar, the cbe seems to have gained a lot of credibility for not intervening in selling off this far. is the egyptian pound being floated when it comes to the clearing rate? a

>> saudi arabia is the largest of thewith almost half production coming from saudi arabia. yousef: coming up next on "best of bloomberg markets: middle east," we look at the drivers behind egypt and stocks. this -- egyptian stocks. this is bloomberg. ♪ yousef: welcome back to "best of bloomberg markets: middle east." egyptian stocks saw a rally this week. is there a driver or a continuation of the positive momentum? ofthis is a good combination everything that is happening in egypt right now with some fresh and very recent numbers we have got to know that show exactly what is going on. for example, on sunday, we recognized $250 million entering the country for investments in egyptian assets and a good part of that is going to the equities market. the central bank released numbers. $4.6 billion entering the egyptian economy and most of that happened after the devaluation of the currency. we can see that egyptians are putting their money back in egypt and that is driving a surge in the stock market. >> let's talk about valuations. >> despite the fact the stock market, the m

still to come, what is driving changes in saudi arabia. kingdom wantsch to cut reliance on the national resource that has fueled its fortune. 300 pilot whales have died after becoming stranded on a remote beach in new zealand. there were discovered on the northwestern tip of the south island. conservation department staff and volunteers are trying to save another 100 whales still alive. a tragedy rarely seen on such an enormous scale on new zealand's shores. hundreds of volunteers pour water on the survivors while waiting for the high tide. part of pilot whales washed ashore. darkness forced rescuers to put off their efforts until friday morning to buy then, around three quarters of the pod had died. wethis is the third largest have recorded in our history. it is a very large one. it is a massive undertaking. reporter: of the more than 400 whales, now just over 100 are alive. some had successfully re-floated on a high tide, but most were quickly stuck again as the tide ebbed. the huge task is far from over. >> it is amazing, people from al

how about saudi arabia? is that of interest in terms of diversifying away from your overexposure in dubai or the emirates? >> we have a strong base in the uae. mainly in saudi arabia. in saudi arabia we have been there for the last 60 years. in.o have some factoring now, we are planning to have dubai investments alike. we have established the company and we are going to invest -- $250600 million million to start building very close to riyadh. we believe that this is going to give us an edge for the coming few years because that is something that we know we have done. we are going to repeat this in riyadh, angola. theoes this mean that market environment is now finally favorable for you to go ahead and push ahead with those ipos th you have been talking about for a few months? we are expanding, actually. 3 millionound activities, real estate, manufacturing and real estate. we are investing around 5.5 two or in the coming three years. also, we are spending roughly $1 billion on a new manufacturing activity. ba

in some saudis don't want women at concerts like this. it is too much and it is not good for the country. but the pace of change is picking up. dude bashing is one of the few thrills on offer at the weekend. there are not any saudi women here today. it is quite a ride, i am sure they would enjoy it. in this young country, two thirds of people are under 30. the bright lights of dubai oi’ under 30. the bright lights of dubai or london are all too tempting. now their rulers, including a 31—year—old deputy crown prince, are trying to encourage them to spend their time and money at home. we are changing fast but we have to do have the women driving festival and cinemas. the winds of change started blowing from her. —— here. this is the empty quarter. the world's richest oil fields. the empty quarter. the world's richest oilfields. no the empty quarter. the world's richest oil fields. no other industry provide so much cash to the kingdom, 90% of its revenues. but low world prices cut those earnings in half. and that means an end to th

saudi arabia and egypt, where the pilots on 9/11 came from. pakistan and afghanistan, two countries where extremist terrorism is deeply rooted and has been for a while. isn't there a strong argument this order in fact completely misses some of the most dangerous countries, and if anything could serve as a propaganda for recruiting jihadists? rieke: i think there is a good point saying saudi arabia is a close ally to the u.s.. you don't want to mess with that because it is an important player in that region. there are also economic reasons why mr. trump chose to include certain countries into this band. course, i don't know what he thinks if that was the reason behind it. clearlye serially -- some questions to be asked. melinda: what you make of these rather glaring exceptions? you told us why you think saudi arabia is off the list. egypt? pakistan? alan: are you saying come up with them on the list? are you saying he is not doing enough? melinda: i am asking you, is this ineffective order? naming the seven countries that happen to be those wor

i would prefer that -- saudi telecomf joining us. that is all we have time for on "bloomberg markets: middle east ." this is bloomberg. ♪ init is when :00 p.m. here hong kong. i'm shery ahn with an update of the top stories. the boj and fed are leaving things on hold.

i -- the saudis finally let me in after a year and a half. they went lead me as a reporter -- let me in as a report sore i got 0 job as an execs pat, and it was a far better arrangement than if i had been a reporter. instead of being in the hotel i had a live -- living in a middle class saudi flat, car and a job i had to go to every day and all these pullup reporters teaching me far more about their culture than i could ever have done on my own, and i learned things about saudi arabia that i think really helped me understand a lot about the culture. so one thing, saudi arabia doesn't really have a civil society. what we're doing here wouldn't be done. for one thing the women wouldn't be here but the idea of freedom of assembly is almost -- it's not unknown but it's rarely practiced. there's a perniciousness about the gender apartheid that is -- just to give you an example, when went there i was supposed to be mentoring young saudi women journalists as well, but i said, where are they? well, you can't see them. they're in an office under the s

the world's biggest oil producer, saudi arabia, is embarking on a plan to wea n saudi arabia, is embarking on a plan to wean itself off the dependence on the black stuff. the country's 31—year—old deputy crown prince says he also wants to boost the private sector and slowly open up this conservative kingdom where cinemas are banned and women are not allowed to drive. chief international correspondent, least is that, reports from saudi arabia. they call him the artist of arabs. mohammed two, allowed to sing live in his own country for the first time in years. it is the first of many concerts planned by a new ministry charged with bringing some fun toa ministry charged with bringing some fun to a conservative kingdom one step at a time. look at the crowd. all men. some saudis do not want women at concerts like this. yeah, it is too much and it is not good for the country. but the pace of change is picking up. the union bashing is one of the few thrills on offer at the weekend. —— dune bashing. there are not any saudi women here today. it is quite a ride. i am sure they would enjoy it

but all the cranes needed to off—load the ships have been bombed by the saudi—led coalition. and the port is barely functioning. the saudis have imposed an aerial and naval blockade, controlling all imports to the country. they say they are stopping arms from getting to the houthis and their allies. but that means that very little food is getting through. the world food programme has bought new cranes for hodeda's port but we have been told the saudi coalition has refused to allow them in for at least two months. these delays in bringing foodstuffs onshore, either commercially or humanitarian, means there's less available and therefore, the prices will go up. from what i've heard, the saudi argument is that firstly, the port is in control of the houthis, so they are handing over cranes to a port that is in control of the rebels. they also say that these cranes could be used to off—load arms for the rebels and therefore, fuel the fight. what would you say to that? those cranes are for wfp. those cranes are brought in and funded for wfp, who are the logistics cluster, to brin

israel and saudi arabia find common ground in cyberspace. trying to protect players in the nfl. oliver: all that ahead on "bloomberg businessweek". ♪ oliver: we are back with bloomberg businessweek editor in chief talking about must reads in this magazine. let's talk about the wall, arguably trump's biggest promise. let's talk about the hurdles he will run into with folks on the border there. megan: there are many hurdles to the wall. i love when we have a story that mentions eminent domain, one of my favorite legal terms. mostf the things that is interesting is that there are golf courses on the path of where this wall would be dealt. this has always been an issue. there is a structure in place to crossing,ople from but there are areas where it will be incredibly difficult from a pure geographic landscape , and you take property will have to use eminent domain. is a bigump said he fan of eminent domain. this is a large parcel you will have to stitch together. oliver: you have golf courses, immigration, he will have to pick one. megan: he is talking about financing the wall, i

, minister of foreign affairs of saudi arabia. of course, the third problem is their pattern of behavior to .reate proxy in every place in lebanon, we have has blocked -- we have hezbollah. we have the who do militias in yemen, shia militias in iraq, etc., etc. and, of course, all of this is under the umbrella of the biggest and most powerful and brutal and sophisticated terror organization in the world , the iranian revolutionary guard and their control of the terrorist number one in the world. but regardless of israel, if i tried to understand what we have since the signing of the nuclear deal between p5 plus one , it is a first of all competition organized in tehran denial cartoonst with a first prize of $50,000. there are hebrew inscriptions that say israel must be wiped out. we saw a state department report last august on global terrorism iran clearly stated that is the top state sponsor of terror in the world. just a few days ago, we saw a wild mob in downtown tehran, shouting death to america and death to israel. iran is de

iraq is the second-biggest producer after saudi arabia. closing at its highest since april after posting a 2% climb and profit. state group kuwait is expected to benefit from an extension to operate in saudi arabia. the government will be entitled to a percentage of the company's annual profit for the duration of the 15 your license. the second woman appointed to a top finance position in saudi arabia recent days. named her ceo. last week, another woman became the first woman to chair saudi arabia's stock exchange, the largest in the region. saudi arabia's foreign minister says the kingdom is making big strides in terms of gender equality. >> women's education, which was nonexistent in 1960, today, 55% of college students in my country are women. it is unheard of, and get the image of saudi arabia is one of an insular country, a country that lives in a different age, because women don't drive. this issue is an issue that is a cultural issue that our society will deal with on its own terms and in its own way. encouraging signs in a country

the says saudi aramco favors new york, london, or toronto for its planned ipo, while saudi officials have talked about changes in singapore -- exchanges in singapore, hong kong, but unlikely to list there. if 5% is offered to investors, the ipo could bring $100 billion of it the biggest ever. yousef: staying with the kingdom, saudi arabia kicking off a $50 billion renewable energy push as the world's top crude exporter turns to solar and wind power to meet growing energy demand. they will build 700 megawatts of clean energy plants, and contenders will have to tender. the new energy department will help to diversify its power mix and disturbed economic development. shery: agreeing to pay a penalty of almost $5.5 million to settle an antitrust probe in south africa. authorities say citigroup will also make assistance available to help prosecutors other banks. the south african investigation is the latest into alleged rigging by banks for products tied to the foreign exchange. yousef: yousef: still to come, a new man for the top job, the head of the kuwait investment authority steps dow

strategybout the beyond saudi arabia and the uae? any more exotic places? you have a very wide geographic footprint. >> our universe is about 21 countries. extends all the way from turkey down to south africa, from bahrain to morocco. >> any picks in that space? there is no particular pick. our investment process is quite rigorous and exhaustive. we're spending a lot of time right now in south africa, in turkey. there is a lot of distress. >> we will have to leave it there, and of course, we will have to follow up. thanks for joining us. still to come in the program, we will be talking to one of singapore's biggest property developers on why it has seen a plunge in profit. that's next. this is bloomberg. ♪ kong, 8:30 inng dubai. these are some of the headlines from around the world. nissan says the decision announced a short time ago was the recommendation and he'll seek a renewal in june. china's social security fund has started buying hong kong equities in a bid to achieve higher returns. the firm has been trading hong kong stocks for the fund. the benc

saudi arabia controls yemen's borders. nothing can enter without its approval, not even food, medicine, or fuel. >> this boy is very weak. he has lost all his hair due to severe malnutrition. his family has no money. they can't afford medicines or food. poor people here suffer terribly as a result of saudi arabia's blockades. reporter: yemen is no stranger to hunger. it's the poorest of the arab countries, but the war has made the situation much worse. officials haven't been paid for months, and there are hardly any other jobs. there's no such thing as free medical care. patients have to pay for everything themselves, including medicine and food. it's unclear what will happen to this boy if his family can't afford further treatment. >> sometimes we can afford medicine, sometimes we can't. he needs x-rays and other tests, but we don't have the money for them. we'll probably leave the hospital soon. reporter: the world food programme is helping as much as it can, but even that's not enough. young children are still suffering

this is been a hot war for two years, the saudis attacking the houthis. the navy has been patrolling. the rebels have pretty much got the western part of the country, which is the most strategic part. if they were over here, it wouldn't matter so much. this is aden, classic port. this is a former french possession. djibouti. there's always a french presence there. we do exercises there all the time. the chinese are starting to build. we will be able to wave at each other. this part has become pretty dji. there's always a hot. the first time, the who the rebels targeted united states navy ships. they shot surface to surface missiles. these are chinese-made missiles, very sophisticated missiles, the same thing that has below used in 2006 to hit an israeli gunboat. aaron: which is the first time these weapons were used against more advanced military by nonstate actors. chris: that attack in 2006 changed threats. you will hear u.s. officials often talk about nonstate actors , not just talking terrorism. weaponsalking about used by non-nationstates, like .ezbo

he got a call years ago from a saudi person -- oliver: he is probably not quite used to it? >> absolutely not. when you has spent 30 years in israeli intelligence, you have been tracking arabs, saudis, iranians, these are israel's adversaries, and that is what your job is come so first, it wasn't email that said we heard about your company and your technology and would love to talk to you about helping us. i think he was somewhat in disbelief, but then the up with a skype call, and sure enough this person at a high level in the saudi power structure said we need your help. we have a problem with islamic extremists and potential terrorists and we would like you to go in and figure out who these folks are, if they are living in saudi arabia, and help us track them down, and he did that. carol: that is the common ground, that fear of extremist terrorism. battling it and that is how they are kind of coming together. peter: this is not the lion lying down with the lamb. it is about mutual fears, both of the gulf arab countries, especially saudi arabia, and israel, have an existen

juliette: saudi arabia has said oil giant saudi aramco is worth more than $2 billion. but other analysts suggest it's worth no more than half or maybe a fifth of that amount. hat means the king tom would earn less than 5% of its valuation if it sells as planned. shareholders committed to 99.8% of its 13 billion euro offering. italy's biggest bank got funding for other a million new shares. it supplies the lender with a h funding pass part of turn around plan. vivendi forecasts less than analyst estimates. for this year, the media company, predicts a more than 5% increase in sales and said it will rise by about 25%. that would put it at about 905 million euro, compared to arch estimate of 968 million euro. high in a has appointed financial sector expert has the tissue as the new head of the banking register. the appointment as chairman and party sec retear of the china banking regulatory commission was announced internally to cbrc staff earlier today. credit suisse may need to find new ways to serve client whosen $750 s muches a 750 -- as million at its u.k. facilities

things inown a lot of the saudi economy. yousef: in terms of what this means for fixed income across dcc, the performance has converged together with the equity space. for somellar looks sort of direction upwards or downwards. , we willk that the gcc definitely see more. that classhave before. we have emerging markets. abilities in the portfolio. especially towards european bonds where people are careful right now. >> definitely. those european bonds, especially when it comes to french bonds , between the thech and german yields, widest since 2012 or so. >> exactly. some tensions in the european bond market. not only france but italy and is under some pressure. the election is coming up. when thediscussions on european central bank. the qe. that discussion is ongoing. well, strong numbers as inflationary. slide andkind of down upside. i don't think we have any opportunities in the european space yet. hand fromd a helping the ecb for some time which brought ecb down to artificially lower levels. what we see is a normalization

has said: saudi arabia saudi aramco has worked more than $2 trillion. it is worth no more than half. this means the kingdom would earn a fraction of the $100 billion implied by its valuation if it sells 5% to the public and 2018 ass -- planned. has said -- it secured 1.6 billion new shares and wealthy buyers for the rest of the shares. vital to the turnaround plan. revenue slumped and losses analned as cannot loose -- c plus predicts more than 5% in sales. that would put it at one hundred 5 million euros compared with the estimate of 960 million euros. a financialpointed expert as a new head of the banking sector. that is according to people familiar with the matter. he is replacing a man who is retiring. it was announced internally to the staff later today. credit suisse may need to find new ways to serve clients to generate 750 million dollars revenue at its u.k. subsidiaries in the event of a hard brexit. chief financial officer has warned losing access to european markets would endanger 10 to 15% whichome at the two units have a revenue base. banks

saudi arabia has always produced in response to market demand. even in the last two years, our market strategy was to sell to customers who requested shipments for the next month to be scheduled. so every barrel of oil that leaves saudi arabia's shores has been sent out at the request of a customer. so, come july, the assumption markets will be balanced. and if there is an agreement at that time to see the ceiling lifted, saudi arabia will be responsive, rather than constrained, in meeting those customers' demand. i would not expect an all out flood of the market in july. i would not expect an all out flood of the market injuly. what i would not expect an all out flood of the market in july. what we i would not expect an all out flood of the market injuly. what we want to see, in the first quarter is a lwa ys to see, in the first quarter is always tough, but over the six months, what we want to see is a large reduction in global infantry is to bring it back within the five—year range. —— inventories. if we can do that, we will allow the mar

this the offshore is controlled by the saudi led coalition. we just want the cranes to make sure the humanitarian pipeline is as strong as it can possibly be. reporter: the fight for control of the port has been going on for six months with neither side winning. is the most vulnerable that are left suffering. bbc news. laura: for more on the rapidly deteriorating situation i spoke with stephen seche who served as the u.s. ambassador to yemen. the u.s. wants to billion dollars to help the people of yemen. 10 million are estimated to be in dire need. will the world respond? >> there are a lot of issues beyond trying to get the money out of donor countries. there are mechanical and logistical issues in yemen. you can have the aide on ships waiting to get into port without the authority of the saudi coalition or the houthi coalition to allow them to move the a to where it is most useful. getting the money is one thing. getting the aid into yemen is another. that will be hugely difficult. laura: yemen is in the middle of this war. it is so complica

in saudi arabia? it is away from the tradition, making money a completely different way. mohamad: we're still concerned about what is good for the economy is not necessarily good for earnings in the equity market. government reforms are very positive in terms of sustainability, but for earnings growth in the short-term, that will not be very good for some of the sectors. however, having said that, we still like health care are. -- health care. we still like insurance. the banking sector will be a beneficiary of fed rate increases. and we let the government and the private sector take the lead role in investment bank spending. we think that they will fit in a year or two. we are also buyers of banks. for the inclusion story, you need to focus on the heavyweights. speaking, we like health care, insurance, and also supermarket. they will benefit from consolidation in that sector. tracy: you mentioned saudi aramco. we are getting a steady stream of headlines before this listing. how excited are you about

i gave saudi my cell phone. i didn't want to have it. these guys will call you in the middle of the night, at 2:00 in the morning, and they were stopped it he green zone because they forgot their badge. one time he told the op center to say they needed an ac-130 and they did and rescued the special forces that had saudi's cell phone number when we visited that day. he radio had gone out. so again, these individuals take on extraordinary importance in the lives of those leaders who are trying to interface with a host nation, with its citizens and community eaders, religious leaders, tribal elders and all the rest of that and again they have an immense responsibility. not only do they have to translate it correctly and not skew it one way or another, they have to pull you aside and say that guy was lying to you or that was not in line with what we think is the real message of that particular segment of society. paul: not something an american fluent in arabic could provide?

he is the sake of a role in saudi arabia taking up the head of referees. it will be local games as well. my understanding is that he has signed a one—year rolling contract was to be gave a press conference in saudi arabia earlier today. we spoke about the professionalisation of refereeing and that one thing he was keen to do was to work with a team there and the residents to create a structure in saudi arabia that is going to make referees successful. he is tapping into the shoes of howard webb who has gone over to the mls to read a video of refereeing development over there. he will start initially on a part—time basis while he fulfils some other commitments will be full—time by the of next season. manchester city have been fined 35 thousand pounds by the fa for an anti—doping rule violation. the club admitted a charge of failing to inform authorities of their ‘club whereabouts' information... which is used to help facilitate drug—testing. fifa president gianni infantino wants to encourage co—hosting for the 2026 world cup. the proposal coul

saudis have enjoyed cheap petrol, lavish perks, no taxes. the economic plan is ambitious, some say too ambitious. in the heart of riyadh, this is the world's biggest metro project. to change the way people live, create jobs, including some for women. and there is equal opportunities for men and women to work yet? definitely, definitely equal opportunities. we have the same working hours, the same loads, and betting is equal. the progress takes different times in different countries. maybe we are not as fast as people would like us to be going but we are going as good as our nation and our citizens. there have been plans to change this country before, so there is scepticism as well. to the outside world, saudi arabia has long been viewed as a closed and conservative kingdom. it still is. but some things are clearly starting to change here. that doesn't include public discussion of its human rights record, or any political reform. but, for the majority of saudis, other issues seem to matter far more. now with all the sport, at the bbc sport ce

but all the cranes needed to off—load the ships have been bombed by the saudi—led coalition. and the port is barely functioning. the saudis have imposed an aerial and naval blockade, controlling all imports to the country. they say they are stopping arms from getting to the houthis and their allies. but that means that very little food is getting through. the world food programme has bought new cranes for hodeda's port but we have been told the saudi coalition has refused to allow them in for at least two months. these delays in bringing foodstuffs onshore, either commercially or humanitarian, means there's less available and therefore, the prices will go up. from what i've heard, the saudi argument is that firstly, the port is in control of the houthis, so they are handing over cranes to a port that is in control of the rebels. they also say that these cranes could be used to off—load arms for the rebels and therefore, fuel the fight. what would you say to that? those cranes are for wfp. those cranes are brought in and funded for wfp, who are the logistics cluster, to brin

two powerhouses coming together, big investments by saudi arabia into malaysia. that is right, so big that it makes saudi arabia's state oil firm the single biggest investor into malaysia. 0f firm the single biggest investor into malaysia. of course, this deal is between them and the malaysian state—owned energy company petronas. they are investing in this huge refinery project in southern malaysia. what is interesting is that this marks a dramatic reversal from earlier this year when we heard from earlier this year when we heard from industry sources that the deal was off, that had planned to pull out of this deal at the time. —— aramco had planned. but petronas and aramco had planned. but petronas and aramco executives are now scheduled to sign the agreement today, and they are saying that petronas may have had to make some concessions in order to make this huge deal happen. thank you, good to see you. let's show you the financial markets, because once again they are making the lines. in the united states, a record close for the dowjones industrial averag