Not badly hurt by the note 7 fiasco. Yousef it is 8 00 a. M. Across the emirates. I am yousef gamal eldin. Shery i am shery on in hong kong. Asian currencies gaining ground on the back of a weaker dollar. Tromp withdrawing the u. S. From the tpp. We had the president and the treasury secretary nominee talking down the dollar, but i understand it is not all about these comments moving the dollar. Yousef again, you had Steven Mnuchin talking about an excessively strong dollar having a shortterm economic impact, but that is not what you should be looking at. There is a different and more accurate perspective, what is happening with 10 year treasury yields in the u. S. This chart. At that is your 10 year yield and the bloomberg dollar spot index. See, ive highlighted this for you. Take a look at how close these to move. Yields are leading the dollar, so extending the slide after Steven Mnuchins comments, then clawed back those losses. Thing we do have to keep in mind when looking at treasury yields, after they fell from last weeks peak, you need to breach the key technical level, the 50 day moving average. Take a look at my chart on the bloomberg. You can see we are still hanging but there has not been a breach of that level. That would be a key support level. Rising yields have been the main catalyst of their strength. Is gaining, yield at 2. 39. 0 year yield in this part of the world, two hours away from the opening of the emirates markets, dubai and abu dhabi. Next, earnings trickling in, dubai down. 3 . We have seen games driven by financials and utilities. In egypt, it gains they are, big moves in egypt. Aftera rebound speculation over the weekend about stamps and duty on key transactions in the stock market. We are on turkish lira watch with the Turkish Central Bank making an imminent decision. Shery right, lets get a check on the markets. Regional benchmark gaining ground, but a mixed picture as japan dragging down the index. Lets get the details from juliette saly. Thats, we are seeing weakness coming through in the nikkei, but elsewhere, looking better than they were when there was a lack of conviction coming through. We do have that dollar weakness weighing on markets following Steven Mnuchins comments, the dollar at its lowest level since december, so giving support to emerging market currencies and lifting some emerging markets as well, a good pickup from jakarta, up. 6 . India trading higher by. 3 . The shanghai composite firmer, up by. 1 . Pboc setting that fix the strongest since november. Some analysts giving it to donald trump as he talks more protectionism, and they are going the other way, even though analysts were calling for the yuan to weaken further against the dollar. The hang seng up by. 3 , some solid reports from energy players, and materials stocks lifting the asx 200. As you mentioned, we are still seeing weakness coming through from the nikkei as the yen fairly unchanged. A great map behind you, thank you for that. Lets check in on first word headlines. Sophie kamaruddin has the story. Rex tillerson is almost certain to become secretary of state as the Foreign RelationsCommittee Gave its approval and sent his nomination to the full senate. Marco rubio says he will now offer his backing despite questioning tillersons links to russia when he was exxon mobil ceo. The Senate Voting on mike pompeo as cia director. He has now been officially confirmed. Steven mnuchin says he will examine trade relations with china and assess the damage of chinas practice intervening in currency markets. He has promised to target unfair tactics, including the dumping of aluminum. Mnuchin said an excessively strong dollar could have a negative shortterm effect on the economy. Pay 29 million to settle u. S. Allegations of misleading mortgage bars between 20112015. The Consumer FinancialProtection Bureau says they failed to inform consumers and misled them about the impact of postponing payment deadlines. A spokesperson for the bank says they are relieved to resolve the matters. Russia surpasses saudi arabia as the main supplier of oil to china. China imported 62. 5 million tons of crude from russia, up 10 million from the year earlier. Saudi arabia should 51 million, falling to second place. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. Yousef all right, President Trump has delivered on one of his Biggest Campaign promises, pulling the u. S. Out of the tpp, hardly a surprise given the promises on the campaign trail. Tiltede ins decades of trade policy. Brian fowler joins us with more. , given thee context fact it was known that he would go through with this move, what implications are there now for your part of the world . It was known. It is not a huge shock, although there was hope that perhaps he might change his mind once he got into office. U. S. Is still japans biggest destination after china, so any deterioration of trait would have an impact on japan. Toyota still ships 40 of the cars from japan, so a big problem for toyota. The japanese would be quick to point out it goes up ways. Example, tpp was supposed to remove nontariff trade barriers that would have given u. S. Car Companies Better access to japan. They point out jobs created by these companies. If you look at whollyowned japanese affiliates in the u. S. , as of september, they employed 850,000 americans according to the bureau of Economic Analysis. A lot of those jobs are factories producing vehicles to be shipped elsewhere in the world, so i dont think anyone benefits from the breakdown in global trade. Shery Prime Minister abe talking to parliament and saying he will seek trumps understanding on the tpp. Does that even make sense at this point . An executive order was signed. Yeah, it could be a bit of Wishful Thinking there. Getaid he would try to President Trump to change his mind. The finance minister said the same thing. I think a lot of that is trying to reassure the japanese that things will be ok. A couple of weeks ago, we had a survey showing that a lot of japanese were pessimistic about the outlook for bilateral relations under a trump administration, so there is a lot of skepticism. A week ago, boj governor kuroda said none of japans developed a nation trading partners were worried about the level of the yen, and now overnight we have the treasury secretary nominee Steven Mnuchin talking about the excessively strong dollar, so that will be at big focus from here, what happens with currency policy, and we saw the dollar fall versus the yen in asia today. Shery thank you so much for your insights. Brian fowler joining us from tokyo. To discuss this and more, head of asiapacific Economic Analysis at citigroup. Thank you for coming in. We have to dissect this. I still remember living in japan a few years back and the tpp was huge. They had to lobby so badly to get everybody on board with this deal. How big of a losses this for japan . Youenerally of course when put some much effort, there are a lot of reforms in bedded in this. That is a big loss. At this point, there is nothing much japan can do. Thatsu. S. Pulls out, two thirds the size of nominal gdp, so without the u. S. , it becomes less economically significant. That is why people are focusing on regional trade deals, and one of them is rcep. Nowy a huge talking point that the tpp seems technically debt, so how much of a benefit is this for this deal . Could it mean even a more comprehensive deal . We know this does not compare to the tpp. For the tpp,rds labor standards, intellectual property, agricultural subsidies , which is why it took so long to get ratified. My understanding it will be less ambitious in terms of standards, so hopefully it can progress further. On the one hand you have a bigger population. Has half of the global population. In terms of per capita gdp or is aal gdp, there tradeoff, but this provides an opportunity to explore other multilateral arrangements, and this is one sitting there. I think people will pick it back to it. Yousef if we equated the withdrawal of the u. S. From tp to the withdrawal of u. S. Trade leadership, what does this mean in terms of who else stands to gain apart from the china story . Who comes out as a winner from the u. S. Withdrawing from the tpp . Is a blowg that against globalization does not have a lot of winners, but certainly since china was not part of tpp, it does provide an avenue and alternative for china to take leadership in terms of setting the arrangement for regional trade. However, there is a negative side. The fact that trump has pulled out of tpp gives a signal to the market that trump means what he says. If that is the case, the other campaign promises, three out of seven of his trade policies is actually against china, so you have to be cognizant of the risk to china. Key point inis the terms of what extent we can extrapolate from the first few days of this new u. S. Administration. In terms of other Campaign Rhetoric specifically labeling china as a currency manipulator, introducing rejectionist policy, what worries you the most and which one is he most likely to follow through on . The biggest negative is if he does make good on a 45 tariff on chinese imports. Is extremely punitive. I dont expect that to happen. I think a lot of that is a negotiating tactic. China could go after the currency, but when you look at the law, in reality, labeling a country a currency manipulator does not have much in terms of repercussions were trade policy. The other alternative is say for example china on unfair subsidies, and their under the obama administration, obama already win after china on a lot of things, so we could see aggressive more and create more headline rhetoric. There could be room for china to retaliate. Shery a key question for traders is that protectionism will take away the benefits. It was great talking to you. Thank you so much for that. Later in the show, the ceo of a Hotel Management group talks about room for growth. Yousef but first, the ceo of sees risingts protectionism and headwinds for the aviation industry. This is bloomberg. Shery welcome back to Bloomberg Markets middle east live on Bloomberg Television and radio. Im shery ahn in hong kong. I am yousef gamal eldin. Emirates Airlines Begins a new daily route linking dubai to athens. The u. S. Airlines lobbying group says emirates is throwing down the gauntlet. And that they look forward to working with President Donald Trump to protecting american jobs. The ceo of Dubai Airports joining us now, great to have you back on the show. To 2017,sting start the new administration of the u. S. , protectionist policies seem to be in full swing in the first few days and the Campaign Rhetoric from donald trump. You must be really worried. How can you sleep at night . Worried. Not that we know confidently that open skies policy such as the one we operate in dubai are good for youumers, and thus once have a free market globally, consumers can vote with their wallets and elected to choose the best and most convenient and best value way to complete their journeys, and that is what open skies is all about. Protectionism flies in the face of the concept of free market open skies. U. S. Canada particularly restrictive, australia the opposite end of the spectrum, and the best way you can see is that tourism has increased, the economy has increased. It has been good for the consumer and country. Yousef you have the u. S. Threatening to pull out of trade agreements, brexit breaking away from the european union, those cause serious directions to Global TradingGlobal Passenger flows. You are straight in the crossfire, arent you . We are in a way, but there are so many markets, 200 odd and theetween dubai rest of the world. If oneto markets are going through problems, but we are so well spread was so much of the World Population within a short flying distance from dubai, there are plenty of markets, and usually the market finds the way to react to these conditions because consumers are looking for value. They are looking for good service, and i believe we provide both of those in dubai. Shery you are currently the worlds number one airport for international passengers. Will that title be threatened in this era of protectionism . So, because we are now confidently ahead of heathrow, which is the number two for World International passengers, and seven. 5 million ahead, and we are increasing that lead every month. We have 7. 7 Million People through Dubai International through the course of 2016, and i think that lead is going to increase because our rate of growth is Something Like four times the rate of growth of other Major International airports. Shery where are all of these people coming from . Ofthey are coming from all the different markets around the globe, india, europe, the united states, south america, and of course big growth market, asia, so we have over 230 cities that are served direct from Dubai International. That number is increasing all the time. The number of airlines bringing capacity into the airport is also increasing, so the global air travel market is our market, so we are pretty well spread. We have very competitive airlines, highquality airlines from around the world, 100 flying into Dubai International, so we are definitely a Global Player very well spread. Shery we are getting your latest Growth Numbers as you speak, so we will discuss more on that. Do stick around with the ceo of Dubai Airports as we get reaction to the Dubai Airports 2016 Growth Numbers. This is bloomberg. Yousef welcome back. You are watching bloomberg. I am yousef gamal eldin. Shery i am shery and in hong kong. With us is paul griffiths, ceo of Dubai Airports, a gain of 7. 2 from last year with 83. 6 million travelers through the airport, solid growth, but those gains still slowing a little bit. Why is that . And what we you do to accelerate growth . Well actually the growth is very significant compared to other airports around the world, about three times the average rate of growth for our competitors, so the growth actually is still very significant. We recorded 7. 7 million passengers in december, and ask 2016,airing the course of passenger numbers reached over the 7 million mark, which is a High Water Mark for us. Another significant part is capacity restrictions and slot constraints, but we are now 224 people per every flight, which is by far a world record come up from 209 during 2016, so we are using that capacity more effectively and efficiently at the same time. Yousef i put this all in context. Our viewers and clients can pull this up on their bloomberg, btv 566 seven. Those of the passenger numbers that come in every month. At the bottom of the chart is the year on your changes. You can see how the growth is not as aggressive as it used to be. Thatwill help you unlock and make that next jump to get back to the kind of ambitious numbers that you have then keen on sticking with . Mostly it will be expansion of facilities, improvement of passenger flows through existing facilities, and improvements in levels of service. Competitive business, we areour traffic, so investing heavily, not just in capacity expansion, but and the quality of service our customers receive when they come through Dubai International, but long term obviously investments in airport expansion will be a major factor. By the end of q3 this year, we will have expanded the capacity from 7 million passengers at the moment to something around the there isn mark, so major had room for expansion there, and that is before we get to stage two by the next decade. Shery can you give us a break down of the spending . How much will be spent and how much will be funded by bonds . Do not release financial information. The government of dubai is responsible for raising debt, but all of that has to make sense commercially, so we are making sure our income and costs are carefully controlled and monitored. Boosting our commercial income, in fact, the majority of our income is now from commercial sources, the shops, restaurants, other sources of at theial revenue airport, so we keep our use of fees down to encourage airline growth and maximize the income from the concessions operated at the airport. Much. thank you very a pleasure having you on the program. Paul griffiths, ceo of Dubai Airports. We will get you all the details next. This is bloomberg. Shery it is 12 30 p. M. In hong kong, 8 30 a. M. In to buy. He willt trump says renegotiate the trade deal involving the u. S. , canada, and mexico at an appropriate time. Trump says stopping what he called ridiculous trade deals will put a lot of people back to work. He spoke after meeting labor leaders. The aflcio president called good firste tpp a step. The uks brexit plan becomes clear on tuesday when the Supreme Court rules on whether the process can start without parliaments approval. If the decision goes against the government, Prime Minister may intends to launch article 50 by herself. Most members of the two houses of parl