Lagarde tells bloomberg of the ins is talking to china about the risks exposed by excessive debt. The superjumbo deal that the emirates is said to be negotiating. We are live at the dubai air show with the latest. It is 8 00 a. M. Here in dubai. I am yousef. This is Bloomberg Markets middle east. I hear there are some ancient tribal rivalries heating up in the middle east. Im not talking about any of this. I am talking about them versus boeing. You are live on the scene. The dubai air show is finally here. The last dubai airshow was 179 billion and recordbreaking deals. That is a high bar to live up to. In the time since a lot has shifted. The Competitive Landscape has shifted. We are talking about the visa bans. Numbers tell a story, middle east operations are growing at the slowest pace in eight years, the monthly growth. Lets look politically. The tensions are a lot higher with the standup up with qatar that has halted some key air routes. The economics have shifted as well. Have dropped, government have had to rationalize their spending. They will be a lot less appetite this time around for big deals. There is a close one that we are very closely watching and that additional for 36 8380. Tracy this is potentially tim clarks parting gift. Before we talk about more things aviation lets get a check of how the markets ended the week on friday. Anwe mentioned, we learned important fact, stocks can go down as well as up. Im being somewhat facetious. It was the first time we have seen u. S. Stocks post a weekly loss in about two months. That was said to be up because the republican tax reform wasnt coming along as quickly as some may have hoped. Bank stocks are getting squeezed by tax reform but also that yield curve in the u. S. Which continues to flatten. The downside in u. S. Equity all culminated in a little bit of index,ity we saw the vix the wall street gauge resurgence. It was going up higher than 11, i am tented him it a spinal tap joke but i want. Finally, take a look at the highyield bond. This is the junkbond. That had quite an interesting week at one point it felt very sharply. This is one of the things that helped the market on thursday and friday but it ended the week slightly up. Maybe some of the credit concerns for now are falling into the background. Lets check in on the headlines from around the world. Donald trump says he believes Vladimir Putins repeated denial of meddling in the u. S. President ial election came after the american president met him on the side of the apec summit in vietnam. Trump called the accusations about russia and artificial democratic hit job. Christine says they are talking to china about the risk posed to much credit. Speaking exquisitely to aremberg, they say chinese listening and taking action. We agree with china, the e of the very best our partners in china. Particular, the Treasury Department in china are listening. They are voting that growth that is filled predominantly by expensive credit. 40 members of parliament have agreed to sign a letter of confidence in theresa may. That is according to the sunday times. Short ofr is just a the amount required to force leadership challenges and they have been under increasing pressure since losing the parliament drink majority in a snap election earlier this year. Days shopping bonanza generated a record 20 53 25. 3 billion in sales. The brands nike were some of the big winners. They say alibaba wants to make the event more global in the future. Global news 20 for hours a day powered by more than 2700 journalists and analysts in more than 120 countries. Lets get back to one of our top stories. The bahraini foreign minister says iran was responsible for sabotaging an oily between saudi arabia. That willccusation inflame existing tensions. The rhetoric has been very sharp, lets get more contacts on the story. These edits are for the middle east. We are also being joined by john paul. He will be with us the lower. That me start with you. Another escalation with the potential for setting up another series of dominoes in what has been a real buildup between iran and saudi arabia. A real showdown ahead . It has been a real buildup. It has been another piece that is coming in with this. We had a resignation of the lebanese Prime Minister. We have the rockets coming from yemen. Andmore recently from iran the leader. We get the sense that there is a wrapping up of tensions and rhetoric that could lead to something that nobody is quite clear exactly what it is leading to. There is this nervousness about this, all the questioning of what exactly is going on. Lets get you into the conversation as well, lets get a look at what the next level of escalation would be. We have not seen direct confrontation between iran and saudi arabia. Andd we see more conflicts intensification of those conflicts . Seen a direct confrontation and i still think the chances are unlikely in the nearterm. Therens have escalated, is confrontation around the region, there is confrontation going on in yemen, confrontation in iraq and syria. Possibly in lebanon as well. I think the broader story is is on theical risk rise across the gcc and across the middle east and while investors in the middle east are used to some level of political risk, they are not used to that risk emanating from the gcc. I want to pick up on that point. When we see political risk, the investors backed away from those markets. In the case of saudi arabia, this anticorruption crackdown is indicationed as an that reform is coming and it will make it easier for reform to happen. That is the positive story that has been spun for some investors. Part ownership of saudi stocks has been trending down. On a net net basis, is this good or bad for foreign interest in the market . On the longterm, a positive. If everything goes in the right direction from here on out. Clamping down on corruption is a positive for any market. But it is not just about arresting people, it is the will of law, due process. We know to hundred individuals have been arrested, we dont know the names of those individuals the crimes, what they have been alleged to have committed. If you look at the industries, government, aviation, media, construction, this is wideranging. It is not just an isolated case, it highlights a structural institution. I want to bring you back on this notion of Foreign Investors potentially leaving saudi. What are we expecting interns of outflows of the market . Do we expect to see any reaction from the saudi authorities . Maybe even cap control if necessary . There is a lot of nervousness among the saudi wealthy right now. They are nervous about being seen to try to get money out of saudi arabia. They may be tempted to but they are probably saying i dont want to come into the crosshairs of this. But what we are hearing is that a lot of them are looking at their investments and their more liquid assets that they have overseas in the gulf in particular and trying to shift that out of the gulf countries fearing that they will be requested from the central bank and the saudis to the uae and the other gulf countries to free some of those assets as well. You see a lot of request and calls to Fund Managers saying help me out, how can i get the money out . What is the next step in terms of Saudi Foreign policy and the situation as it stands in lebanon . We dont understand where the ,ebanese Prime Minister is isnt that true . He is in riyadh and meeting i believe he met the russian ambassador. He has also traveled to the uae, meeting the conference at the uae. He seems to be out and about in a sense within the context of saudi arabia and allies but he is not returning to lebanon. That is kind of a big question and lebanon is resigned and saudi arabia they are asking why they are not coming back. They are being to accusations from some of the lebanese parties that he is being held against his will. Is theue is that it uncertainty which is what investors usually hate. The uncertainty is that nobody really understands what the next step is or what is going to happen. Or what the demands are. Saudi arabia is basically trying to draw a line in the sand against iranian influence but what are the steps that it is going to take to achieve that concretely . You, but gave a preview of what is going to come up on bloomberg magus middle east. We will continue with our aviation seen as we speak with the ceo of Dubai Airports and the region, this is the largest air show in this part of the world but can they even get remotely close to the big deal that were signed last time around, this is bloomberg. Welcome back to Bloomberg Markets middle east. Negotiating a deal for 30 additional airbus is. Executives are working to seal a deal with the goal of making a formal announcement at the dubai airshow later today in order for that number of planes, it would be valued at almost 16 million at current list prices and would help extend the embattled programs life. You can of course watch our interview with tim clark tomorrow right here on bloomberg tv. Meanwhile, boeing see saudi arabia as a promising market for a potential new family of aircraft targeting mid range lights. The companies hasnt or the middle eastern country says busy domestic groups be a good fit for a midsize plane. Boeing has discussed it embryonic middle of the market jetliner with saudi arabia and airlines as well as this version of the single 737. The u. S. Justice department has suggested to at t officials that they need to figure out to get the benefits they are seeking from the proposed merger with time warner without being able to on cnn, tbs and other turner channels. That is according to people familiar with the discussions, antitrust officials have suggested that at t is for alternatives such as selling turner and forming a joint venture with the newly separated companies. That is your Bloomberg Business flash. After heading historic highs on the back of solid earnings, Global Equities sold off sharply amid doubts about many things meaningful reform of the u. S. Tax system. They posted their first weekly loss in more than two months as the senate revealed is proposal would delay cuts to the corporate rate until 2019. There will be monday of markets this coming week, in particular brings coronaank and have them speak at a policy panel on tuesday. Lets bring back our guest john paul bhagat. He is the founder and chief economist at lighthouse rick white house research. But start with u. S. Tax reform, how much of the markets optimism do you think is predicated on getting some sort of tax reform . We have been hearing that line of argument since november of last year and not a lot has happened. I think the market rally shows that the market is confident that Central Banks in the u. S. And around the world are not in a hurry to raise Interest Rates anytime soon. Key factor that has been underpinning the Global Market rally that we have seen over the past year. It has also been the fact that that has underpinned the rising u. S. Consumer confidence. I would not be overly surprised they will be shocked if tax reform in the u. S. Gets delayed. You brought in my chart because it is so good that you could not wait. It shows marketbased expectations of inflation and shunned by the fiveyear tips versus wti oil and the point i was trying to make was that we have not seen Inflation Expectations or Higher Oil Prices go to Inflation Expectations. Yield curved has been really flat. The yield has undershot expectations for several years so i dont see it having heading drastically higher anytime soon. This seems to be driven by this region and an uptick in geopolitical risks and anytime that you hear in the media in the front page of headlines and newspapers that tensions between saudi arabia and iran have picked up you see a kneejerk reaction in oil prices and the impact on this region will be quite interesting because normally an uptick in oil prices is quite positive and filters through to the higher Consumer Confidence but at this point it might also be counterbalanced by l what we are seeing in saudi arabia which is probably the biggest concern for this region from a market perspective over the next couple of months. You say that investors are not going to be shocked by the lack of any tangible progress when it comes to tax reform but the reality is that the rally we have seen across a lot of these asets has been factoring in big change on the physical side of the United States. Does that mean we will see more of a selloff off the back of that . I would not be the one to call this the start of the selloff in u. S. Equities. I think the rally probably has a lot longer to run. What i am saying is that i think it is quite difficult to put the rally and markets that we have seen over the past year down to Investor Expectations that congress would actually pass some overhaul is of the tax system. U. S. Politicians have a history of disappointing so the fact that this will be delayed into 28 2019, i dont see that as a major catalyst for the sort of a downtrend. I think what we saw was volatility and markets taking a breather. Hold that thought, we have pointed to get through. Program weme on the will take a closer look at what the impact of some of the new taxes that have been gradually been introduced into the market, what impact they are having on some of the biggest travel reach a operators, we will be live at a dubai airshow. That is next, dont go away. This is bloomberg. Offhe dubai airshow kicks and the expectations are a little bit contained compared to the 179 billion that were signed at the last airshow. Lets see what we figure out of the liberation over the next few days. Ill be here is common laughlin. Coal Mclaughlin Cole mclaughlin. What are you looking forward to at this airshow . i love that so many visitors come to dubai. It reflects favorably on the future by visitors coming here in order to buy. It stood out compared to its peers because at the beginning of the show we were talking how the economics have shifted, the politics have been a lot different, would you say that everything is, relatively good . Dubai is doing really well. Year our business thising very good, converted into 19 million terms. We are very happy with the performance of dubai this year. What kind of growth are you targeting . Three or five years with the development that we are to billion 2 billion. We can have 3 billion saved over the next five years. We spent to have close to 10,000 people employed. In terms of the key Source Markets for a lot of your growth, which country has been fundamental to that story and will continue to be Going Forward . The asian civic is very good. Chinese traffic is doing terrifically. Traffic through dubai airport, the chinese basin. They cap a percent of our business. That is continuing to grow. We honor the china union. With ctripagreement in china. That is one of the Largest Companies in the world. They are sending toys to dubai. They are visiting dubai. Awayw do you diversified from your concentration to the divide growth story . In Turbulent Times it would be good to have some of that a little bit, managing services at other airports around the world. We have been asked on a number of occasions to go to other airports because we have been growing here consistently for the past 30 years and we do do other things. We on the dubai stadium for example. We want a very successful tennis tournament there. We just finished year 2035 of that. We now own a hotel of our own. Recently we opened a new irish village and a new service shop at the resort which was opened last year and that is beginning to grow very well and we are very happy with it. What would you say is to be the catalyst or a catalyst for you to really accelerate toward your growth target . Is it the rebound we are seeing in oil prices . Can you pinpoint one factor that is critical . Growth in the chinese economy is very important to us. Some traffic at the moment is four or 5 . Many on theting visitors to dubai. Dubai is in the top 10 most visited cities in the world. Yearmillion visitors last and were looking for in excess of 20 million. Will have the biggest travel reach operators. Thank you very much. I was wondering how long we can make it in the show until someone made the Turbulent Times pun. It was about 25 minutes. Trumpt we will be talking heading to the philippines after the weekend. We are live to manila next. This is bloomberg. We are in dubai. It is 90 minutes before trading kicks off. There is a ton going on in the region. Including the dubai air show. That is where yousef is. We are watching the local markets for continued fallout from saudis corruption crackdown. Before we move onto that lets check in on the first word headlines from around the world. Bahrains foreign minister says iran was responsible for sabotaging and oil link between the island state and saudi arabia yesterday. It is in a key session that will likely only increase powers and it comes after we have accused iran of thing involved in a foreign Missile Launch by many rebels last weekend. The recent drama has spurred hedge fund bets. Believes by says he mccubbins repeated denials of meddling in the 2016 u. S. President ial election that came after the american president briefly met putin on the sidelines of the apec summit in vietnam. Trump called the accusations about russia and artificial democratic it job. War of words between President Trump and north Koreas Kim Jongun goes on with the president tweeting on sunday why would kim jongun insult me by calling me old when i would never call him short and fat . In recent days, north korean staterun media has taken to referring to trumps age and it has been 60 days since the Missile Launch from the north and south koreas foreign minister told bloomberg that the current strategy is working. Sanctions are working. That may be causing them to recalculate, it could also mean that they are finetuning some technical aspect of what of further provocations that may have an effect. It is good that we have this. Of no provocation. 40 conservative members of parliament are saying to have agreed to sign a letter of noconfidence in theresa may. That is according to the sunday Times Newspaper citing people with knowledge of the matter. The number is eight short of the people requiring to force leadership challenge has been under increasing pressure since losing the parliamentary majority in a snap election earlier this year. Day shopping shopping bonanza generated a record 25. 3 billion in sales 839 increase on last year. That is as the companys investment overseas and efforts to a traditional retailers with the internet are paying off. Nike was one of the big winners. Daniel shanks as alibaba once to make the event more global in the future. Global news, 20 hours a day, powered by moment with 700 journalists and analysts in within 120 countries. Yousef. Yousef lets talk about what is going on with the aipac leaders. They wrapped up deliberations and from that gave a renewed to back the wto. It sounds great in theory but here is the kicker. The u. S. President now continues his asian tour with a business trip to the philippines. Stephen engle is in manila. Has there been any real headway that has been made over the weekend on these issues . There is the Transpacific Partnership which the United States had promised to pull out of. The remaining apex members are trying to revise that deal. The 11 remaining members. After some wrangling and some delays, there was even a walkout by the vietnamese delegation at one point in frustration. It seems as though the 11 remaining parties in the Transpacific Partnership have come up with a Framework Agreement. They have years let it go to mail this one down in the United States. They were trying to find areas that they can all agree on to reduce certain areas that they are at agreedupon with United States out. Even the canadian delegation is calling this the comprehensive tpp. At least they have a Framework Agreement on a regional trade block without the United States and speaking of the multilateral approach, one you just mentioned. Donald trump slammed the World Trade Organization as he was leaving the door in vietnam. We have not been treated fairly by the wto says donald trump. He called that multilateral approach, that body a disaster. Speaking of another multilateral body, the ins, my colleague spoke with Christine Lagarde in vietnam and this is what she had to say about asia being the motor of growth. The Global Economy is recovering. We are moving from 3. 2 last year to 3. 6 this year. 3. 7 next year and catching up with prefinancial crisis levels. This region, asia is going to continue to be the big Global Growth engine that it has been. Compared with this average of 3. 6 asia will be generating 5. 5 . That tells you a lot about the ine played by the region Global Economic development. Quite element of inflation in this part of the world . There is a balanced situation. We are countries that are currently at low inflation levels. We believe that Monetary Policy has continued to support recovery and have an impact on price levels. There are countries were at quite is still sensible and good levels. Do you see banks in asia tightening in 2018 . Monetary policy will be tightened in those countries where the economy is picking up sufficiently fast and where inflation is rising. This is going to be the case in the u. S. , it is happening very gradually, very smoothly and we hope it continues. Without any Capital Movement as a result. The u. K. Has just recently raise Interest Rates again. In this part of the world i am much or that i am seeing it right away. Fore saw a big bag moment china yesterday as it opened up its financial sector. Is it more significant or is it more symbolic . House telling you earlier that services have to be better integrated and more open to trade and two exchanges. That is one indication. Werecial services in china fairly constrained and restricted with quite a lot of barriers for direct investment. It is considering to remove at least partially those barriers and to move above the threshold of 50 and to gradually with an eight those threshold. That is an indication of two things, openness and also better strength and confidence in their own system. Very often, barriers and protections are established when there is not enough competence, when the sector is just developing and not grown enough and mature enough to take external competition. It is a very good development. It is clearly phased in over the course of time, we dont have an exact timeline of when it is going to start. It is a very positive development. The ins recently upgraded its forecast for china. Why are they more critical of china when it is taking the past that could lead to financial crisis . We have raised with china the issue of the very fast to velvet and our partners in bboc arebo see listening. They are taking action in order to rein in credit and avoid that growth be held for donnelly by expanses credit to the economy. Hopefully they are going to continue doing that input to avoid financial crisis. It is tracy hit in dubai, we know President Trump is due to the vietnam but of this afternoon, what are we expecting from that visit . He should be arriving early evening, he will be attending a gala dinner. We are not affecting anymore comments from donald trump today. There will be a full day tomorrow, geopolitics and trade will be fun and center, a continuation of the themes that he has been addressing from japan to south korea, to china come to to vietnam and his final stop in the philippines here at the summit. There are 20 world leaders. Put in will not be here, is Prime Minister will be here instead. Hisinping will not be here, premier will be here to talk about the economy and other issues with United States and china. Donald trump will be here and of course you mentioned early on in the show about this comments in north korea that there will be a war of words going back and forth between kim jongun and donald trump. Andstate media in pyongyang also the twitter sphere with donald trump, we will see if there is some more comments between donald trump and Rodrigo Duterte tape. It should shape of to be a very interesting couple of days. The South China Sea also on the agenda. Narrowing downes those trade deficits it has with all five of the nations, donald trump is visiting. Quite interesting is definitely one way of putting it. That is our chief north asia correspondent Stephen Engle in manila. Lets head over a little closer to this region, south africa has limited space to boost the economy by cutting rates. In an interview with bloomberg the balance of risks has shifted since the banks july rate washen the key unexpected a cut after the economy fell into recession. At the time we also indicated that the price might be on the downside with respect to inflation. The situation changed by the time we got to the september meeting it was clear to us that the balance of risk for the inflation outlook is going to be on the outside. Despite him claiming his hands are tied when it comes to Monetary Policy he said south africas economy is in a much better place than it was three years ago. He also said there will be more policy after the ruling leadership vote next month. Lets talk more about south africa and other emerging markets with john paul. He is the founder and chief economist of lighthouse research. He is still with us and we are joined by dana. She is our emergent emerging markets team leader. The startup with south africa. We are expecting the Deputy President to give a speech on the South African economy. What are we expecting there and what are investors going to be looking out for . Investors want to know how they will take policies lowered in order to deal with some of the Economic Issues that they outlined a few weeks ago. Most local assets have taken a big hit since that report came out. Want to know how theyre going to take us forward, especially given the fact that they are not willing to cut rates. It is really important that they be very clear with how theyre going to take this forward and there in mind that south africa is at a very big risk of losing its Investment Grade when it comes to local currency debt. To onent to jump over more idiosyncratic risk in emerging markets. On ins what is going venezuela. We are supposed to have a meeting between bondholders and pdd essay this week. His is a meeting that most bondholders are not allowed to attend, what are we expecting there . Very curious situation, especially given the fact that venezuela made a payment last week. This makes people feel a little more confident that they will make more payments throughout the year. We saw the bond rallies three days in a row. There is some positivity. There was another state related company that declared people on fatah. Theres a lot of negativity in the market, we will be looking out for all of these in these meetings. Investors are talking about prostate false and those sorts of things. Lets bring in john paul. We have been talking about their specific risks but more broadly we cem as a class take a hit. Was that a seethrough with the u. S. Equities and a credit market or are people specifically worried about emerging markets . No, i think they will follow Global Markets and it is a market breather. It is not the start of a downtrend. In terms of this region if you look at relative performance over the past couple of years, the gcc has actually lagged behind a lot of the broader em rallies. Christine lagarde is talking about growth in the asiapacific region around 5. 5 . If you look at the gcc, that is a must the lowest in the world. At 1 may even be less than that if saudi arabia posts april your recession like i expect them to do. The gcc has been a sore spot in this region, there are bright spots, turkey despite all of the political risks that are going on, investors dont really care about that. It is the economic story that is attracting them. Be as high asould around 10 . Then closer to home, in places like egypt they are slowly recovering from their payment crisis is as well. Rally, investors are the more confident that momentum is on track. We got a nice encouraging statement out of the lineup over the weekend saying they have been making progress on their imf programs. It is actually eluded more of an optimistic outlook as we head into 2018. Italic people may be differentiating element more than they were before. We have to leave it there. They keep her joining us today. The founder and chief economist for s research and of course always nice to see you. Bring us the latest in em. Yousef still to come on the show, as the dubai air show takes to the sky, we see the ceo of dubai airport and we get a sense of where they are where their growth targets are headed. This is bloomberg. The dubai air show is getting underway and we got a bit of a sense of where to buy is with their growth outlook. The other part of the story will be coming from the air force side and what we can see in terms of Capacity Growth and now we have the ceo of Dubai Airports. Thank you for coming back to the program. The two have you, a very special day for dubai in the region. Yourt to start off with expansion strategy. How quickly are you going to transition to the new space and i look new capacity that comes putting we are expansions on the capacity terminal building here. That will give us the capacity of that from the current 7 million to about 26 million. Plenty of expansion to grow. Valveill give us a safety which is very busy. Most of the growth for the immediate future will continue to be at our existing Airport Dubai International where we are anticipating by 2023 to be able to accommodate 118 billion passengers. Thatis another 28 million we are expecting by the closing 2017. Passenger growth has been growing at a speedy clip to say the least. You are now one of the busiest airports in the world. How sustainable are those growths . Are you going to begin by niche of the markets of supply and demand . I think moderation is in our vocabulary. We are in a situation where we absolutely 16 million per head and that is where we have been for the last four years. The Largest International airport in the world. Actually, if you look at the two in absolute numbers, beijing international and atlantic, they are growing at a rate of one third of the rate of growth that dubai is. Will continue we this upward trend in growth for the future. How successful are you to retain lot of the fruit that comes through Dubai Airports . It has been a struggle to get people to actually spend the night in dubai. You are counting all International Passengers but how much promise. Getting them to stay and spend in the Dubai Economy . One of the remarkable statistics that has surprised us is that growth of people who come and stay in dubai has been at a fairly constant level compared with the overall growth of transit passengers. Have been able to extend the growth of the point market largely because of the growth that the accommodation options that have been in set with growth of the airport. There is a coordinated strategy and thethe city capacity of all the various elements that are needed to bring everyone in increasing numbers to dubai. The cardinal story has been slightly weaker or less exciting than the passenger growth story. Why is that . Result of an economy that is not as strong as it was two years ago . What has been the achilles heel . If you look at the recent cargo growth, it has actually passenger growth and of the good thing about the cargo growth is that it is in three major sectors, first of all, a lot of cargo, the vast majority of it travels in the hold of passenger aircraft and of course as the passenger numbers expanded, so does the cargo. Secondly, the development at twc dedicate facilities and means we have attracted more traffic and dedicated traffic passing through the facilities. Thirdly, we are hosting a major hub for the integrated market which is the small freight business. The sectors are actually growing very well and we are creating capacity to comment them for the future. We see a rally in crude oil prices. I love the belttightening in the gulf that came as a result of the fall. Now with oil around 60 per barrel, did that for you in a positive mood . Prices are a fairly doubleedged sword for the aviation business. Within the uae as a whole, the oil price has a direct bearing on part of the economy although petrochemicals only accounts for about 50 of gdp in dubai. For the aviation business, obviously and oil price being lower means for operating costs and a more Sustainable Growth story because obviously profits are better when costs are low. What worries you the most when you look at the competition in other super connectors . What could be an issue for you going down the road . One of the things we are meeting the challenge is how you maintain Service Quality when you have such fantastic growth and limited geographic facilities to expand gsp. We are investing very heavily in technology which will actually make the Customer Experience much better as we experience ongoing growth. It is really the investment in quality that i think will be the key to the future in terms of our competitive product versus other hubs. In terms of the passenger growth, what is the priority right now . What is the highlight . Is it the chinese story, the european story . Where they coming from . We have the 240 destinations worldwide connected directly to gsp and what we are seeing in the future is incredible growth particularly in the Chinese Market by 2034. Something like 1. 3 billion additional passenger journeys will originate or terminate in the Southeast Asian region. Hughes Growth Opportunity and dubai is properly positioned geographically to be able to exploit that opportunity. Always good to have you on the program. We will continue our coverage from the ground of the dubai air show. Tracy . Tracy we are at the start of a new trading week here in the quitees, last week was eventful, lets bring in our middle east markets reportedly paper shack up to talk about what we might expect to see in the week ahead. Lite, you brought us a charge the sums up one thing you are watching. Lets take a look at the 7058. It looks like it will be. This is a big name in dubai. We have the company, that is there in the possible in the process of the ipo. 20 of their uae developing units, this is the biggest ipo in dubai in a wild. It is closing this week. We have Retail Investors tomorrow and investors have until thursday wednesday to subscribe to the opera. You know the books were fully subscribed before the whole saudi crisis started last week. In terms of the saudi crisis, what names will you be watching . We have a few names tied to those. Specially kingdom holding. They are a very liquid stock. Can them holding not as much but they are down 20 so it would be good to see cemetery there. Ugly charts. Some a good thing you did not bring them for us. You are going to be at the dubai air show again tomorrow. I will be in aphrodite where we are having the big annual Oil Conference known as at a pack and they will be speaking to plenty of Oil Executives and hopefully some opec members as well. We will be looking ahead to some of the bigger possible deals of airbus and boeing. We will flash that out. Emirates will be in focus, especially around what our reporting suggests could be a major 60 million deal but it all comes against the backs and you have remember what the benchmark is here. 179 billion of deals in the last by air show, willie even theely match that . A lot of fact is that we have been talking about, the Competitive Landscape, the politics that have shifted so aggressively and the economic realities make for a very complicated decisionmaking process especially for deals of this size. We have oil, we haveand of course we have plenty of geopolitics, well be discussing all of that live at the same time tomorrow. This is bloomberg. Jonathan from new york city, i am Jonathan Ferro with 30 minutes dedicated to fixed income. This is bloomberg real yield. Jonathan coming up, republicans take another step towards cutting taxes. Corporations may have to wait until 2019 for 20 . Cracks appear in credit. Investors get indigestion. Bonds fall the most since august. Is there a message in the treasury market . The yield curve is in the flattest level in a decade. We begin with the big issue, junkbond pain. High yields at the moment anyway