Transcripts For BLOOMBERG Bloomberg Markets Middle East 20170426

Abu dhabis National Energy company, another m of prolonged resist and oil. Its 8 00 a. M. Across emirates, this is Bloomberg Markets middle east. Get you up to speed in terms of the melody, the rhythm, in terms of equity markets in this part of the world. We are two hours away from the open. This is how the gcc pans out. You can see Downside Pressure that oil price is putting significant risk into this equation. There is a lot more conviction in overall volumes. A 60 jump. Retailer is jumping a 10th of 1 . Of telco down 10 . Also more petrochemicals are expected to report earnings in the coming days. Saudi stocks of been the worst performers in the last trading day. Egypt and oman were close for public holiday. We are looking forward to some Inventory Data from that your iap we are seeing big moves on the gcc bond. Bits tightening a little further. As the optimism and equity rallies, the momentum continues 1060 4000. T turkish lira is in focus because we have the Central Bank Decision that is coming in today. Economists are expecting the bank to stay on hold. Lets check in with the first word headlines from around the world. Citigroup is back in saudi arabia after a 13 year absence and has received approval to provide a full range of financial services. Kingdomhe kingdom having lost its license in two dozen four. Saudi is becoming more attractive to Foreign Language as an overhauled its economy. The upcoming saudi aramco listing could be the largest ipo ever. Hsbc and rbs are in talks with potentially combining their ventures and saudi arabia. Owned andis 40 agreed to start initial discussions with saudi british bank, which is 40 owned by hsbc. A merger could give rbs a merger and assets that have been trying to sell for years. About 1. 3 billion. President trump is said to have intervened personally to toughen the language in a letter to congress on irans compliance with the nuclear deal. The president change the tone from what he considered too far. The letter says the administration will review whether to reimpose u. S. Nottions on iran, they may be in washingtons interest. Global news 24 hours a day powered by more than 2600 or no list and analyst in more than 120 countries. This is bloomberg. Release a set to broad outline of a tax plan later on. Bloomberg news has learned that a plan to propose a 10 tax, 10 on a more than 2 trillion earnings that u. S. Have stacked offshore. Chief economist told Bloomberg Television that he expects the president to lower taxes for corporations and individuals. We do expect something that is not neutral, that does increase the deficit relative to what would have in. It increases disposable income and delivers a modest boost to growth. Yousef lets get more on this story, in terms of how the markets could be reacting for the next few hours. Joining us is our macro strategist. Global equity rallying against positive. Treasury still at session lows. What directions will bes assets take . Mark at the moment, sentiment is very positive. We are really seeing that globally. China is the one exception. Assets it as u. S. Optimistic. It is important to note, from theons that come trump meeting are not very high. They expect a lot of ground state minutes, but without approval it does not mean much. Lets wait to see whether it will get through. What is interesting is, despite these expectations, there is a positiverisk for surprise, just because investors want to get involved again. , theythe French Election are seeing a market rally, so they will be looking to spin it any positive way, if they can. Yousef i am looking at the twoyear paper in the u. S. , the strongest demand in 2016 in some 11 months. What is the story on the fixed income side . Why is the paper showing some breakout signals . This we are really seeing across bond markets globally. Only a week ago we were wondering whether the fed rate hike cycle might be over, there was a panic more than a week ago. Suddenly there is a big change in sentiment. We got past the French Election and pass the north korea situation without having any major flare up, especially with the army day being celebrated yesterday. Data has continued to be good globally. U. S. Home sales were strong yesterday and they were getting strong earnings as well. It is positive for equities and parish for bonds. Yousef what about commodities. We are not seeing a lot of conviction. If the reflation trade was on, it would be represented and able to be identified in the commodity spectrum. Mark that is a very important observation. For the longer term global reflation ray, we see commodities pickup. We are not going to get inflation and less input prices are rising sustainably. I think we will need to see commodities turn higher in the weeks and months ahead. Longerterm to validate the inflation. There is no time for that. The sector is trading poorly and that is something to watch. Dont worry about that in the short term. We will leave it there, mark. Chiefoins us, the global economist. Great to have you on the program. Of the latest possible tax reforms, and the initial numbers that we are seeing, i they big enough to make a meaningful difference in the u. S. Economy . John if you are talking about the tax and has been proposed or announced to be propose, i think it will deliver some revenue that is barely needed to provide some of the stimulus that should come from the lower text. It will be relatively mild. We put this up in terms of where u. S. Growth. We have Additional Data coming out at the end of the week that will give us additional guidance. You could see the u. S. Economys First Quarters have fizzled to test results since 2014. How fizzled since 2014. How bullish are you about the numbers . John we are relatively optimistic about the u. S. Seeing a growth of 2. 2 over the year. We will have to gear up during the year, because when these because the First Quarter has been tepid. We have to gear up, but we are quite confident that the growth in number of that in the range of 2 , slightly higher with a little bit of stimulus coming from the administration. The fiscal policy will be achieved. Yousef we are seeing a euphoria and some of the equity markets. Devaluationk market of tax policy changes to , thatcompany earnings really has slipped. The traditional evaluation metrics no longer apply. He says he is making that counter argument. We do jump with him on that side of caution to say, these numbers, these figures, these metrics are getting stretched . Stretched are getting their it we have seen the French Market exuberance. The Economic Forecast has hardly changed since december. Share prices have gone up, definitely. Earnings forecast has been relatively stable since then. Based on these two arguments, you would argue that share prices has risen a little bit too high. A gradual collection may be coming up. Areef Global Markets breathing this collective sigh after the election in france. Forerms of what that does monetary policy, for the feds equity ecb, are we going to see any shifts and adjustments to reality on the ground . John not yet. I think inflation has indeed touched at 2 . Recently in february, indeed. But it has come up in march, it has come down in march again. It is not relative, not robust enough for at least the ecb to come up with firm measures. We do not expect at this moment to see change in policy or announcement in the european region. Yousef what is the biggest risk as you look at what is going on with the u. S. Administration . For the most part they talk a big game but investors are looking for tangible numbers. What is the risk . John there is a lot of talk about changes coming from the u. S. Administration. The trading is a little bit react relaxed about what is coming up. It will be very difficult for come upnistration to with real tangible, fiscal measures, or measures that stretch the fiscal deficit in the u. S. There will be a constraint from congress. The trade policy, there will be definite restraints coming from geopolitical conservation. As you could see from china and Interest Groups in the u. S. Who will not be pleased with trade policies. Yousef hold that thought, we still have plenty more to get through that is john. We will be joined by more on the program. The ceo of the middle east companies. Dubai aerospace enterprise. The abu dhabi National Energy company gets its credit raisings up. More on that any moment. This is bloomberg. Yousef lets talk about crude oil. They appear to be digging their way out of the gold run. I spent a quite a bit of time on these charts. Nonstate Oil Producers are seeing an increase by 67 last quarter. That is good news for some investors, partially due to the oil price recovery. It is not just because of that, it is because they have been cutting cost aggressively. , Abu Dhabi Oil company. S P Global Ratings to a minus. Based on a higher rate risk. It is lowered. They have written off assets. Sold business desk sold businesses and cut jobs. Has been losing money to acquisition the prolong oil prices. Its get back into the conversation. The global chief economist at after the us atradius global. What strikes you the most about how the Company Companies are reacting to the story . I think the most important thing here is, in the u. S. We have seen a slight increase of production since there was a slough in 2016. Very you see their reaction producing somewhat more oil to the market. , i amrrent prices convinced on that. The other part of the equation is how long the opec agreement will hold. Renewed in the middle of this year. The question is, where we see the oil prices. We do not see a lot of changes here. For this year, but over time. Yousef we built this chart on the basis of some of the important points ebita in your research. This is the one you are pulling up and bloomberg. I like to call this the reality check chart when it comes to crude oil. Inventory and. S. You could see your opec production line in yellow. How basically, u. S. Production and inventory have offset the efforts of opec and some of the nonopec countries. Do they need to raise their bar at the upcoming meeting in vna in may . Will it ever be enough to extend this agreement . Overtime, yes. We think the demand from the emerging economies will definitely drive up the oil price over time. In the rising of tradius we see a lot of volatility and that is what we see in this chart. Rbc reduced its 2017, 2018 gas Price Productions projections as well. In terms of where you see Oil Prices Going in 2017, what is your call if you had to pin down a number . John we see the range of 55 for u. S. Dollar for print. For brent. That, prices in the short term are very volatile. Yousef i want to go back to the corporate part of this story, in terms of what happened with exxon mobil, shell and chevron. They have canceled billions, billions of dollars worth of projects. They have dumped thousands of jobs and amassed towering debts to weather has been a difficult time when it comes to crude oil prices. It raises the risk that you could be looking at a ford edge. That is what the saudi minister is repeatedly saying. There is not enough investment in the sector and consumers will plate pay the price. If this one has to gear up. If you look at the charts from last year, investments have almost half in the year in the oil sector. A definite impact on supply. Investments have to go up over time. Therefore the oil price definitely has to rise. At this moment in time, the andly is still sufficient there are 6 sufficient stocks in the market to provide for the markets. Those stocks will be running slightly lower. Yousef speaking with the Kuwaiti Oil Minister a couple of weeks ago, he was saying that they are looking at expanding that agreement to include more nonopec countries. Is this perhaps the next catalyst that could really determine who is winning this tugofwar between u. S. Outputs and opec china rebalance the markets . John it is already difficult to control for production in the organization. If you go outside the organization, russia has been part of the agreement. The recent agreement in november is going to be a lot more difficult. For that score, i am not really optimistic. At the same time, we see that agreement at the moment reasonably holds. Yousef looking at what has been happening with natural gas, it is a fifth of 1 higher, but it does not tell the story of the tremendous volatility we have seen in the asset class. Price is oil specifically in the european markets, in the asian markets it is definitely the lng. It comes into the equation. We see a mild increase in gas prices on the back of slightly higher oil prices. We are not extremely excited about prices racing up, but increase is definitely on the ground. Yousef great having you on the program. Also a quick reminder that you can check out one of our key features. About this up on the bloomberg. This is tv. This is a fabulous function. It is easy to bring up and you can watch back some of the footage, some of the programming. I rewound it too much, but that was the beginning of the program what we talked about what is driving these markets off the back of trumps fiscal reforms, or the plans. On the right you have the key functions for the charts when we talked about u. S. Economic growth. Plenty to explore. You can message just if you agree or disagree with john or anyone else throughout the show. Tv. Thats give you a preview of what is still to come on the program. Taking them come back for citigroup. The lender is returning to saudi arabia, that is at a time when some banks are still looking to exit. We have the details on that story, next. This is bloomberg. Yousef lets get you a quick check of the latest business headlines, starting off with japans holdings. They will book a six point 3. 6 billion charge. Australias Company Turning a projected profit into a 360 million loss. 1400 more by next march. They paid him as 5 billion with full in 2015. The price was too high. Toll, given its significance in the asiapacific was a great buy. However, we miscalculated the state of the australian economy and ended up being a little too much after the economy slumped. Yousef they will bid to build a 300 megawatts Solar Energy Plant in australia. Part ofrt of this their plan to reduce the dependency on oil. It may require investment of up to 50 billion. A cw a power says it has considered bidding for solar products in iran and united arab emirates. Lets cross over to one of our top stories. Citigroup is back in saudi arabia after a 13 year absence. For have received a license Capital Markets and research services. Lets ring in bloombergs Tracy Alloway. Lets bring in bloombergs Tracy Alloway. This return was not entirely unexpected, was it . Cy that is exactly right. We saw city laying the groundwork for this license earlier this month when it announced that carmen would become the ceo for its saudi unit. She was widely expected to be the one task with expanding citigroups new presence in the Saudi Arabian market. Of course, this all comes hot on the heels of saudi arabia opening itself up to foreign investors. Ipo in the saudi aramco the works, that could be the biggest ipo on record. We have things like bond sales. We saw saudi arabia selling a mega 17. 5 billion worth of bonds back in october. We have msg i coming up. Lots of people competing in that market. City is coming to it slightly late. They already have competitors with Investment Banking licensors including hsbc a. Yousef giving the interest we are seeing in saudi banks and the saudi story. Is another element we are watching in terms of consolidation in that sector, right . Right, this time it is foreign consolidation. We have hsbc and rbs potentially in talks to combine their saudi ventures. This is a slightly different story than the Investment Banking one. This comes as concern about Retail Banking in saudi arabia heats up a little bit. Lots of things under pressure by lower oil prices. You might imagine their concerns about loans. We know rbs has been trying to it hasnt0 stake saudi banks. That has proven difficult. If you take one thing away from it, it is the dichotomy between what is going on with Investment Banking and cannibal Capital Market Capital Markets versus the retail operations. Us. Ef do stay with lets get you up just speed with what is up to come for Bloomberg Markets middle east. Short capital turns a profit for the first time in seven quarters. We speak to the chairman, next. This is bloomberg. In hong kong, 8 30 in dubai. These are the first word headlines from around the world. Chinas navy has launched its first domestic aircraft carrier. It was floating in the northeastern part of zahl yen. A former soviet care that china bought and refitted, putting it to see in 2012. The new president of xi jinping ahead of the communist Party Leadership reshuffle. Turkey has strained relations with its russia allies have been frayed after it was on the lossless. The agency said the turkish governments crackdown on its opponents compromised human rights and the rule of law. Turkey says that it is politically motivated. We are evaluating this decision as an and just extremely unfair decision. It is not a fair decision because none of the discussions made way and are corresponding to turkeys troops. Debra is really Prime Minister abruptly canceled talks with the foreign minister. Sparking a diplomatic few between the two. The lastminute move was the plan to meet a Whistleblower Group that is critical in the occupied west bank. He was surprised by the reaction. Alitalia shareholders meet on thursday after workers suggest the latest turnaround plan. A 2 billion recapitalization for job cuts. Now they are headed for bankruptcy for the second time in a dekeing. Etihad said the failure is deeply disappointing. Dayle news 24 hours a powered by more than 26 hundred journalists and analysts in more than 120 countries. This is bloomberg. Yousef u. S. Equity futures trading higher. Lets see what is happening elsewhere in markets in asia. E more than a few whiskers to be had here with a few highs. S trading at we do have shares leading the chart on the stocks. Slides the aussie dollar from the latest cbi data. Japanese shares eying a fifth day as the yen drops. The hot and saying is climbing to a 20 hang seng is climbing to a 20 month high. A jump of financial shares for helping to drive the advance. If you take a look at the conversation, a mixed sure. Hong kong dollar has a gap with u. S. Rates. That has gone a bit too far. The ringgit leading gains in the region here as but i wednesdays dollar is hovering around 8 30 level, which has reached earlier for the first time in 2014. In the commodity space we have copper timing to a twoweek high. This after they slashed output guidance from the impact mine strikes. Inum at its high shanghai. And curbt pollution output. The commodity story is not just about china. That takesreform shape and that could see the u. S. Provide an Additional Support to industrial metals. Commodities are lagging. Stocks are out of sync with a u. S. From this chart. I am tracking commodity on u. S. Yields. The treasury yields rising two point 2. 2 . Yousef lets talk a little bit more about a company that has seen some stronger surges over the past year. For the first time in seven quarters, a have returned profit. There are embarking on a path of acquisitions. Bloombergs Tracy Alloway is in abu dhabi. Havent no shortage of tracy we have no shortage of things to talk about. It seems to have paid off judging by the results they released yesterday returning to profit after seven quarters. Also one of the bestperforming stocks on the Dubai Exchange right now. Plenty to get through. Chairman, thank you for joining us today. I want to start out with the results that you announced yesterday, returning to profit after a long string of office. How did you manage to achieve that, and how much more work . Needs to be done needs to be done . The main issue is we focus significantly on collections and for thecy portfolio finance company. This has been improved tremendously and it has been one of the largest contributors. For the number wethis has been d tremendously and it has have opd the company as a group. Overall, all of this has proved to be a positive and q1 is the start. A stunninghave had run up 1 over the past few months. It is difficult to aggregate from some of the acquisition rumors that are currently swarming around the country. And you tell us youve you are still thinking about doing something with gf h, and if not what do you exactly have in mind . Strategy is of the to go through them any. Considered a merger with gfh and we always look for opportunities that will be beneficial for us. This is something we can look at , and i expect that in the next few weeks and months we will hear something regarding the new acquisition. Yousef great to have you on the , if an, in terms of gfh acquisition is not involved, what does a talk look like. What is included . Had a few have discussions in the past. We have stop those discussions at the moment. We are focusing as gfh on other aspects of the group. A lot of consolidations and a lot of acquisitions in the pipeline for gfh. We might revisit talks of mergers, but there is nothing certain at the moment. Abu dhabi financial groups have assets in the middle east and in europe. As you look at 2013 and going forward, giving some of the geopolitical risks in terms of rising populism and what is coming out in terms of trade restrictions and travel restrictions, where are you prioritizing your money . The past two years, since the start of the decline of the oil price, we have seen a great opportunity in asset repricing in the gcc specifically. This is the focus for us, currently. I believe over the next point for months, we see a lot of opportunity. Compared to anywhere else globally, this is the best at the moment. Yousef do you expect more progress activity, perhaps some ideas to move into asset management, since you are as bullish when it comes to saudi arabia and egypt . Shuaa has been a very good player in terms of banking and asset management. Our strategy for shuaa is to advise that. We have expansion plans for sure what shuaa. Yousef in terms of what will rekindle more transaction, what will be the catalyst. . Will it be this will it be the saudi aramco . Jassim we are very optimistic for 2017. I believe that it will be more active. The scene this year i believe will be mergers and conservations, for something that is important we talked about last year. We will see more of it this year and next year, hopefully. This will really be the catalyst for the future activity in the region. Chairman chairman there is one more big thing happening in the market. That is the opening, especially in abu dhabi. Have those been successful. If not, what more can be done . Jassim i think the uae is a leader, not in the past 10 years, but in the past 20 or so years. Most attracting in the eye of the gcc. Taken by other gcc companies. In my opinion, this is going to work out very well. Attractiveis very for the foreign investor. A lot of changes have been made an frameworks to be more amenable to increase fdi. What is this opening up to more foreign capital and host your own turnaround. Foodies see as your main competitors in the region . Jassim very good question. I dont think we have a competition to date in the reason, that is the region we have reason we habits, because of the huge gap in the market here it we are going to be the first market. We are going to be the first players in this field. We are waiting for competition. Middle i want to put east for a side. Put middle east aside for a minute. If you could run me through the outside of the middle east investment spectrum. What are you looking at . When you look at what is happening in Continental Europe and in turkey. Know, the u. K. And london specifically is a very important focus for us. Brexit has caused the sterling to be much cheaper compared to the dollar. It has become extremely interesting for investors from country like a d. C. From countries like the gcc. We are focused on Real Estate Developments in london. This is something we will continue. It is something we really like and it is really working for us. You will see a lot of our focus in the u. K. Yousef does that mean additional acquisitions there are on the table or just more expansion . Have beensolutely, we looking at opportunities for the u. K. , specifically london. And realte companies estate developments, we are actively in discussion and seeking to consolidate and expand in the u. K. In termsou have of how much you can go out and save those expansion plans. . How many millions of dollars are ready to deploy . Notim we always say it is about the amount that we set aside, it is the opportunities that present themselves. Opportunities are there, we will be going after them. The right opportunities arise, we will definitely go after them. Opportunistic since inception and we will continue to do this. Tracy thank you so much for joining us today. That he isu can see a busy man in charge of a very busy company at the moment. The stock up 130 5 over the past 12 months. We will have to see if that run will continue. Clearly there are some things coming up for the company, including potential acquisitions. Get our clients and viewers a preview of what is to come. Dubai aerospace is buying out competitors to be one of the biggest in the aircraft industry. We speak to the ceo next. Take a look at what their strategy is for the next few years. This is bloomberg. Yousef the middle east biggest plane leasing company, the multibilliondollar deal propels the aerospace enterprise. Officer istive joining us. Thank you for coming on the program. Exciting times for you. Give us a sense of how transformational this is for your business. Also as to whether this is part of a wider trend we could be seeing with consolidation, with you muscling your way into the top three . For having us. This is a huge deal for us. We have gone from a company that had about 50 aircraft to having a line of sight of about 400 aircraft by the end of next year. A long with that, we get to be in a Different League in this business. And a business that allows us to build on a terrific that form that we are getting with this company. A plat from that will allow us, i think to become even more competitive in the future. About our business, there are 50 plus competitors in our business. We think that consolidation is just a natural offshoot of what we are likely to see. Rationalization is better not just for us but for our customers as well. Of financing,ms were you able to do that from standard arrow and could you give us some devaluations that were involved . Not disclosing the value, but we sold it two years ago for more than 2 billion. Some part of that will be used for this. As normal, there will be a pairing up with committed Debt Financing we have lined up for that. Yousef would you say you got a good deal on it . Firoz we think we have a price that is one of those rare combinations where we are happy and i think the seller is happy as well. The seller is a private equity seller that owned it for 10 years. I think they are happy that the business is in good hands with the longterm strategic owner with very ambitious lands. We are happy that we get the that form at the price that we get it. Yousef ultimately this is an opportunity to reduce costs as well. Aroz we approached it from Customer Perspective rather than a cost perspective. I think they have an Amazing Group of about 100 people. We have a very dedicated group of 40 people. If you look at the business together, we will need every single one of them to make sure our platform is growing and keeps on growing in the future. Is at thiss allow us new scale, we can price our products better, we can offer a broader range of products to our competitors. As we do that, we get ourselves more embedded with our customers. Ultimately, that means a better market position and better market share. That is the real play here, more than the cost elements. Twice for that pay twice for the same thing, but that is not what drives us at the moment. Lets tie that down a little bit more in terms of new aircraft customers and new airline types. What could be what could we be looking at here . Combined, the company will have 110 plus airline 55 countries. Bout that is huge, compared to where we are. To put our about how combined Strong Capital position to work, you will see us extending capital into all of products that are coming into the market. We are very focused on narrow body products from the new main atr. M. s, and you will see us concentrate on that. You will see yes keep our discipline. Because of our capital, we will be able to do bigger and stronger transactions, which will mean more choices and more flexibility for our clients. Yousef how much debt did do have to raise for this transaction . Firoz we are not disclosing the separation, but whatever we need that we cannot do from our own internal resources, that is what we will go to the market for. Yousef in terms of outbound investments, state own entities in dubai are now more content to put money to work outside of their border. I am not sure about the broader implications. I think our business is headquartered in dubai, but it is a global business. Competitors from anywhere compete with clients from around the world. And 55we had clients countries. For us, acquisitions at this platform, at this time with this at a segment came in the market. That is what we are focused on. Things,means broader that is fabulous. For us our focus is very singleminded. Our focus is bigger and better. Very interesting. One of our analyst on the Bloomberg Team is saying we are seeing the pressure that the u. S. Is putting on gulf carriers. Could best move by dae a way to teach carriers around the world, the u. S. Included, if the trump are deep in. This is a backdoor way of dealing with the situation, in terms of that pressure. Is that something that is on the cards for you . Firoz it is not something that we think about or is even part of our consideration. For us it is simple. We are a very focused player in the Aircraft Leasing business, along with our other businesses. In the aircraft business, it is a scale business. This opportunity for us is unique in two ways. It gives us scale and he gives us a platform that is a truly a best in class platform. When you put those three things together, scale, best in class platform and our capital, we create a winning combination without having to worry about secondary objectives to that. Yousef mitsubishi aircraft have completed production of five mrt airplanes. How do you what is your response to that . In thate do not play space. We do not lease emaar j or improvement aircraft, it simply because that is not a part of the space that we fully understand, or feel comfortable about. We will stay with the narrow bodies, run wide parties wide bodies. Given that ambitions and the fact that you are expanding and putting money to work, does that mean there could be additional moves in the next year or two as you try to pursue those goals . Listen. Es, but today recall it 80 plus two, which is announcement a plus do. Head down, blinders on, all we could see is the finish line. As long as we get there without thenent closing the deal, we will work on the next. What we end up doing will be calibrated to what we need for our clients. Yousef thank you for coming by on Bloomberg Markets Bloomberg Markets middle east. Still to come on the program, we have a discussion. Why a big objection from the airline has not been enough. Alitalia says it is heading for bankruptcy again. Thats very coming up from our european headquarters. This is bloomberg. Yousef lets get to through some key trades. Warm up for the opening in the middle east. Reports they have reported numbers. No income, First Quarter came in at 600a. 2 million saudi riau. Firstquarter revenue hitting 1. 7 6 billion riels, under expectations. Saying, while volumes are up, prices have also risen. It is a stock that has outperformed so far this year. Some of the at other companies that could be qataring today, including. The mark in dubai, interesting company. I was looking off the run off to strengthen, it could be indicating the stock is oversold. The companyst say has changed their price targets over the past month. On the watch for turkey because the central bank will make a decision on interest rates. The lira might have rallied, but analyst by bloomberg do not expect the Monetary Committee to make any changes. They are expected to hold ranks. They might do a move in their link desk late liquidity window. Lets cross over to anna edwards in london and see what is coming up in europe. At alitalia looking this morning. You mentioned the story before the break. Of alitalia footage against the cuts. Without the cost cuts, they cannot do the revitalization. This pushes them towards think rub see, the second time into administration into a decade. The big shareholder in your part inthe world has bought back 2014, 20 9 stake in this business. The government says it will not renationalize this carrier. We are looking at the numbers that express thinking is due to report numbers at any moment this morning. Firstquarter numbers for this business has been turning away from Investment Banking. My close friend with data on this morning. Yousef i will pick it up from here. That is it for this addition of Bloomberg Markets middle east. All of the top stories at the top of the hour. This is bloomberg. Anna markets roller. Nasdaq surged past 6000 for the first time yesterday. Manus Credit Suisse due to report firstquarter earnings this morning. Will speak with the banks top executive. Anna President Trump will propose a 10 repatriation tax on offshore corporate earth corporate earnings