Locked and loaded for a response and hong kong protesters say that the government must do more. Lets get started with a quick check of u. S. Futures down. 4 after the saudi arabia drone attacks. , gaining ground by 11 . At one point, jumping 19 , which would be the biggest jump since 1991. That is 68 a barrel level. Gaining ground, seeing the biggest jump in a month. All of this a given that geoPolitical Risks are back again. We have seen oil prices under pressure lately, given the fact we have seen trade negotiations and tensions weighing on the demand. Some ofes paring back the earlier decline after President Trump said he would allow the release of Strategic Petroleum reserves. All of this playing into the market. Lets see how this will impact the open. Lets get over. Severe do we know how severe the damage is to this facility in saudi arabia . Analyst we have been talking to think that almost half of the lost supply could be tomorrow,as early as but in order to have the full supply back, you mentioned earlier in your comment that it could be several weeks before we had that. Shery did they have the Storage Capacity to meet demand in the meantime . What do we know about their supplies . Oil saved away. It will be able to meet supply shortterm, but if this takes place, there could be a saying that it will have to delay delivery. Initially, there is storage available. In the shortterm, there is not the risk of a shortage. We have heard from President Trump about his willingness to add oil supplied to the market. Was talk of an ipo. How will this affect plans . That is a great question. One of the issues was the pricing, will the ipo get the 2 trillion value that the conference was looking for . Now you have this uncertainty added to the mix, so it is simply not going to make the job easier. The banks are trying to convince investors to invest in aramco. In jason,s bring president of Prestige Economics and has been branded as one of the most accurate forecasters for oil prices. We are now seeing this jump in oil prices, but i wonder how long this will last. Could it be offset because of the demand picture not being that great . Expected a balance in the price. It is pretty much in the range we are in right now. Thatanalysts whisper numbers could go higher than this. I am skeptical of that because the demand side is not great. Last week, opec released its Market Report and lowered gdp growth expectations this year to 3 , which is pretty much what you get for population growth. Manufacturingn the sessions going on in china. Those things are dampening oil prices. Really note prices rising as much because we have a weaker demand. Shery we are seeing the repricing of geoPolitical Risk. If we continue to see tensions in yemen, what are we expecting longterm, in terms of the price level . Proxy wars have abounded in the region since the end of the second world war. Pricing wars are nothing new. Proxy wars are numerous in the region, so this kind of situation, i do not think we are seeing this bounce because of an , butased price risk because of an actual impact on supply. I think they will be more responsive to what happens to supply. You could see the price come back in. If it takes a couple weeks, it might slide back down. It is not just on this supply picture, but also because there could be a short squeeze. Price go higher because there have been such a high demand picture. Is a bearish time of year usually for demand. It could cause a bit more of a pop. Really those barrels being displaced and interrupted in the market. Like to explore that a little bit more. It is interesting. Very low cost. This is something that they will just have to start pricing in now. I talked about the subject in a book. The fact that drones can be used for these kinds of things. We think the cost of drones is relatively low. In aones were sent coordinated attack. It could have a very expensive, negative impact. This is what the future of conflict looks like. More, going to see a lot not just in the east and oil, but broadly speaking, this will be a problem in the future. Paul you did point out that proxy wars are a bit of a feature in that part of the world. The president tweeting today that the u. S. Is locked and loaded. Do you have any concern that this could escalate . Beenmen situation has going on for a while here. Beeneen beat there have various charges. Of g for some kind something that could disrupt drones and protect the airspace. That is probably what they are looking at. Rather than on the ground. Had oil prices rebounding slightly after President Trump also talked about releasing allowing the release from the petroleum reserve, if needed. The Global Supply is not an issue. Inventories are robust. Look, it is around 100 Million Barrels. At 5 milliong barrels being disrupted for a few days or a few we. It is not a small number, but it is not catastrophic. That is be something being announced, in order to comfort markets. We have had hurricane disruptions or other conflict earned. It just may not be necessary. Shery exactly when it comes to the shale market as well, how will that factor into rices the rest of the year sue myrick factor into the prices for the rest of the year . A pretty good price bump here. Maybe it will last and maybe it doesnt. Paul jason, is the consumer going to be sheltered from all of this . Some of theeen product prices on this as well, but the season is over. This is the critical time of year for consumption. I would be concerned about what we see for diesel prices, especially with some of the ones that we are seeing. Anybody looking to book flights for thanksgiving or christmas, this is the time to book those winter trips. Before we let you go, we had the open meeting last week. We did not see much of a change when it came to that committee meeting. Opec has had a pretty rough time. You have the slowing global economy. What will the latest incident do you for the december meeting . Thank goodness it is a few months away. Worse andensions get it the iranian proxy could make for a very problematic and volatile meeting. If the group cannot get along, itthese tensions get worse could curtail production. Conflict and all the countries decide shery always great talking to you. You can get more on this story and others that you need to know to get your day going in this edition of daybreak. It is also available on mobile. You can customize your settings to only get news on the asset that you care about. On the asianheck markets now. Already higher by 8 10 of 1 . We have futures for japan weaker by 1 . A Public Holiday there. Futures here in australia are a little weak. Well keep an eye on that. Lets check in on the first word news su keenan. A fresh sign that the economy is slowing. A monthly measure. 3 from a year ago. This is the ninth straight month of decline. They blame tariffs in the trade war the downturn. Presiding over perhaps the greatest economy in u. S. History. Reports from london say worse johnson is betty to defy a new law against a no deal brexit. Sources inside the government they he is taking an incredibly hard line as he prepares for talks later on monday. Warning that a hard split would create utter chaos that would last for years. To japan now. Bill at up to 7 billion. The storm forced the closure of sony and nissan factories and stranded thousands of people, including the England Rugby squad. They cut power along the east coast. Almost half a million customers were impacted. U. K. Financial Service Regulator said they have been through Hong Kong Exchanges and clearings and would face tough examinations with the u. K. And abroad. Helpedulator stance after the initial rejection. A Financial Conduct Authority has declined to con comment. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im su keenan this is bloomberg. Shery still ahead, more on the fallout with the founder and president. Paul next, the latest from hong kong after another weekend took another aggressive turn. This is bloomberg. Shery this is daybreak asia. Im paul allen in sydney. The 15th consecutive weekend of protests in hong kong. Water cannons were used to disperse the crowd. ,ens of thousands defied a been also gathering at the british consulate. The clashes appeared to be getting more aggressive. Heream at the station where we saw some of that aggression unfolding after 100 days of unrest. Even morem using aggressive tactics before it turned dark. Stations were closed, shops were closed as well as we saw small groups of demonstrators. Used incannon was also front of the government complex as a means to push back the demonstrators. Happening while the government continues to condemn the violent activity. I want to highlight the public remarks. He condemned the violent activity, also maintaining his confidence in hong kongs future. Weeks we had just two away from the anniversary of the republics peoples of china. Future rallies are planned, including october 1. They indicated their resilience and determination to carry on. Old, families were even involved in the mostly peaceful rally. Iss is happening while there speculation that the government may use government power last used in the leftist riots. Changing the on Property Developers in hong kong, slamming them for prioritizing unAffordable Housing. It is bringing out young people to the protests. Calling on carrie lams government which would allow the seizure of rural land that is being reported by the property development. Button issueis hot of Affordable Housing. That 100 billion hong kong dollars be set aside for Affordable Housing and urban expansion. Sophie kamaruddin, thank you for that update. The influential editorinchief said the military can still be sent into hong kong, but only as a last resort. Tom mackenzie joins us now from beijing. What exactly did he say . He has accurately predicted a number of different policy and actions, which is why we sat down to talk with him about trade and hong kong. One of the questions was whether one not the military would be deployed in hong kong. This option should not be ruled out. Our armed forces gathered, sending a warning. I think it is very obvious. The Central Government can only take this measure in a cautious way. Instead, they would like to see the problem resolved by hong kong itself. Tom saying that the military option should not be taken off the table. He is trying to ensure that the Hong Kong Government can deal with the protests that you are seeing in the city. We are going to be getting a lot of ecodata from china later today. What are we expecting . Point,number of key data including Industrial Production. The forecast for actually rise to 5. 2 in august, year on year. That was a number that we got in july, which was the lowest level in terms of Industrial Production for almost 17 years. Andoints to trade tariffs the demand, which is starting to weaken. The consumer in china has held up reasonably well. Almost to 7. 9 . Weakness in some the auto sales, which continue to hold in double digit numbers. Fixed Asset Investment is another key point. About 5. 7 . Not expecting a big pickup. We are expecting potentially for the state to set up with some of that fixed Asset Investment as local government issue more bonds. Tom mackenzie, thank you for joining us. We have plenty more to come on daybreak asia. This is bloomberg. Shery lets get started with a quick check on how commodities are trading. 13 after thatg drone strike on the key aramco facility. 8 . Futures are up we continues to see demand even after key political geoPolitical Risks. Crude prices pared back a little bit after President Trump said he would allow the release of the reserves. Ofl lets get a quick check the latest flash headlines. Doubts are growing that the boeing 737 max will be back in service soon. Regulators in the united emmrich united arab emirates. Seeking approval in the coming weeks. The uae authority does not until 2020. Ack struggling to buy a malaysian airline. The carriers have held highlevel talks. It is too early to speculate about investment. The Sovereign Wealth Fund is the sole shareholder of the airline. They will look at Strategic Options for the carrier. Still to come, much more on the fallout from the drone strikes in saudi arabia. Stay with us. This is bloomberg. Su this is daybreak asia. The u. K. Financial Services Regulator indicated the honk on exchanges including the London Stock Exchange with face tough examination in the u k and abroad. The Daily Telegraph cites sources inside the lse and said exchanges underpinned after initial rejection from the hong kong bid. The trade spat between south korea and japan will heat up eoul ready to exclude tokyo from its list of trusted export destinations. Japan will be bundled together with nations still part of koreas export regime but it has Broken Ground rules or adopted a new policy. Japan removed korea from its white list of favorite exportations last month. Hasprotest in hong kong taken a more aggressive turn with demonstrators setting fire to the subway station in one area and police hitting back with tear gas, pepper spray and Water Cannons. Months now in the fourth as the economy is increasingly under strain. The economy fell 12 from a year effects intion china china and taiwan. A lookh break index is at rails, and it fell 3 from a year earlier. It is the ninth straight decline. Monthly decline. They blame terrorists and the trade war for the downturn which did goes against President Trump saying he is presiding over the greatest economy in u. S. History. Global news 24 hours a day, on air and tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. I am su keenan. This is bloomberg. Shery lets get you another quick check of how oil prices are looking because we continue to see wti and print rallying with wti gaining ground and staying above 60 a barrel after prices fell 3 last week. All of this coming as we saw drone strikes on key Oil Facilities in saudi arabia, brent above 67 a barrel after falling 2 last week. The gains were pared back after President Trump allowed the relief of the strategic if needed. Eserves the rally is pretty clear. Look at asian markets. We are seeing Downside Pressure for futures. Kiwi stocks gaining. 9 . Futures, a little bit mixed with kospi futures up. 3 . The kospi coming back from a holiday. Perhaps there is a catch up rally not to mention sydney futures are down and japan, not trading today and on holiday but nikkei futures down. 7 after the nikkei gained for nine consecutive sessions so far, paul. Lets get more on what we should be watching as trading gets underway in asia with quote of Global Markets editor adam haigh. This attack is about markets pricing geoPolitical Risk, or is it fundamental concerns about High Energy Prices weighing on growth . Former. Looks like the you are seeing reasonable declines in the risk assets we use at this moment before equities get trading, s p 500 futures down but not by a huge amount. Treasury futures are up. 2 . Is people taking risk off of the table first thing as they react to this. It doesnt look like some of the really, the real fears around supply shock are as great as may be some expected. Part of it is because you did get that note from trump about the emergency reserves and that is clear. Risk assets, we are doing well on the last several weeks. We have had gains in Global Equities and that chart has had pickup in double bond yields. The question is whether the geoPolitical Risk we have seen rising over the weekend really sets the tone for a change in trend in yields, and with a dip in yields expected when treasuries start trading in london later on, we have the japanese holiday, so they wont trade until the london open. Not seeing any huge pullback but as we start, markets looking cautious. We have data dump in china later today, not to mention big centralbank decisions later this week. What is the risk we cant continue to see momentum given we are not sure what to expect . Weekenden before these developments around the oil price and implications of that you were setting up for a busy week. We are expecting to see the Federal Reserve cut rates at the meeting later on this week. There is a potential now even though bank of japan will make to policy but everything starts today with the data dump in china. It is priced in to market how things have been slowing in thea, some calling for Manufacturing Sector we will hear on the production side but also had consumers are reacting to the latest trade war implications. Retail sales will be keen. We do have the voices last week expecting moral stimulus from the chinese when the fourth Party Planning takes place in october. That could pave the way for more significant stimulus that will be enacted later on in the year. We move further into the week we will get down to centralbank policy action. Paul thank you for joining us. You can check out the gtv library. You will find it at gtv on the terminal. Our next guest says saudi arabia has enough domestic inventory to counter for almost a month and is not expecting a price shock as the market is fully supplied. Joining us from washington is svb and founder and president sara vakhshouri. We are seeing outsize moves in brent and outsize to moves in outsized moves in brent and wti, but you say calm down . But they will go higher not as expected. We dont expect shock because the market is fully supplied. If there is going to be a price rise we are expecting a gradual one. Paul it is still early days, damage still being looked at but how long do you anticipate this lasting and what is the last the worstcase scenario . According to saudi officials we have 5. 7 Million Barrels per day cut. 7 Million Barrels were produced, about half of saudi arabias production. It is huge. Saudi arabia has the hugest capacity in the market. We should expect it to help supply interruption which was out of the question now saudi itself is has been under attack. The key point is saudi arabia itself has currencies of nearly 188 Million Barrels of crude oil only and additional liquids. The crude oil is 188 Million Barrels. If you take that 5. 7 Million Barrels a day of suspended production away, saudi has about 30 days of supplying its outage from domestic inventory. Saudi aramco has inventories in europe, rotterdam, and it has inventories in japan and egypt. These are saudi inventories. We have u. S. Inventories, european union, and chinese. The market is pretty well supplied. The only price the only effect that pushes Prices Higher today are two major risk premiums we are is uncertainty because market is not sure for how long the production is going to be extended going to be suspended and the market is worried there will be additional tax for supply attacks for supply interruption in the region or supply interruption in the region. Shery are you worried about internal assets . Sara saudi arabia, despite its position, still has the highest reliable surprised reliable supply. It has a Huge Investment both inside its own kingdom and outside of the kingdom to secure the supply chain infrastructure from inventories. Obviously what has been attacked was very welldesigned, targeted because it is a processing unit that processes crude oil produced in different fields before the exports. We might expect for weeks this could be suspended. But what is important is saudi arabia is able because of investment on inventories, storage and other factors, to maintain these outage and still supply customers while repair has been done. Does that mean the u. S. Will not need to tap into the strategic are probably a reserve as trump offered . Rodrigo it is giving sara it is giving safety and comfort to the market because the market is a sure how fast these processing units, which are very significant, almost 50 of saudi arabias production every day, when is it going to come back online. Move ahead in the weeks to come and the inventories start running out, saudi inventories and the processing unit isnt online, we will wait and look strategyaps the u. S. Petroleum reserves to be released into the market. Paul a moment ago we were looking at a timeline that was attacks in saudi arabia. Months,he space of four culminating in this impressive attack with 10 drones. Facilities protected, and could we see a risk premium priced in . Sara i think it will be permanently priced, included. The geoPolitical Risk premium and the fear of war and attack has been slowly increased in the prices, from the moment that iran started to threatening the market back in november when u. S. Sanctions were implemented on iran. Iran officials on different occasions announcing if iran cant export oil they will not let any of their neighbors, neighboring countries to export. , if you look at it, the risk premium was very the market was barely showing any reaction to iranian threats. Then we had a tax on oil tankers, we didnt see a rise. But as the incidence are getting bigger incidents are getting bigger and more major, that risk premium will be more permanently settled in the prices and it will be bigger than previous times. Terms of the geoPolitical Risk spreading, iran has been accused but denies it, but they have motivation. Sara this is what they announced. They started threatening the market to begin with but what is obvious is one would help the Market Sentiment especially geoPolitical Risk is to engage or to startalogue easing the tension in the neighborhood. If you start running titfortat you will expect a much more more tensions in the market which will not benefit the prices. Shery President Trump saying it is incorrect to say his meet with iran with no conditions but we have seen the president make overtures to the president of iran, rossano money a sign rouhani. Does this raise the odds are increase the odds of a potential meeting between trump and rouhani on the sidelines of the human General Assembly . U. N. General assembly . Sara i dont see any increase of potential for special meeting the one man was removed from his position. Either the tensions are escalated to a point that there is a need for that meeting but at this point we dont expect an effective meeting to happen. Shery thank you so much for that. You can turn to your bloomberg for more on this story. To getliv commentary and analysis from bloombergs expert editors. This man officially ends his tenure of nissan today. Can the automaker turn over a new leaf with new leadership . This is bloomberg. Asia. This is a brick i am paul allen daybreak asia. I am paul allen. Shery nissan is losing another Top Executive today. To stepd told the ceo down amid a scandal about his pay. Nissan needs to find a leader to guide the company through a decade low profit and job cuts as the global auto market slows. Joining us from hong kong is a Research Partnership founder and managing partner. It is great to have you with us. We are hearing from sources from bloomberg that there are 10 candidates including people from nissan and renault to take this job. It would be the third person to take the helm in three years. What are the challenges the new ceo what race and what sort of people do we need to see in that position . They have got several challenges. Access capacity across the board and excess capacity of old engines rather than electric , lots of new people coming in. Excess old capacity, growing capacity on the new site of rolling demand. Very difficult backdrop. You have nissan who has got too much old capacity and the production and step undercut. Questions for a new prison getting in, probably a guy, where will those fall . Will they fall in japan or in france . It is a politically very different hot potato. No envy of his position. The new ceoe seeing would have to manage a compensated relationship between nissan, renault and mitsubishi. Tell us the problem as we continue to see shareholdings that are clear but not controlled. Alexander the difficulty is theoretically the wrench should be running the operation. It is a government renault is a government controlled company but the french government doesnt want to step up. When you look at carlos ghosn, he was looking to bring the company together and integrate and merge. Path. Y, took the opposite you have to assume some of his, the people that worked for him, would still be following that. We are left with who is really in charge and what will go on . One man said clean sweep, shuffled the management but the only two people that really changed was the american female lawyer that came in and the japanese x racing driver who was also female. Those were the two nonexecutive thectors who drove to get second key ceo the second ceo kicked out after he wants to get paid more. We even know the extent of what appears to be a fairly deep rocked in the Corporate Governance rot in the comfort governance . Corporate governance . Alexander they were reviewing the problems of mr. Carlos ghosn but also the other man. He apparently had said to some of the other board members, in particular mr. Kelly, can you make sure i get paid more without having to change my contract . It was anppear understanding internally if not externally that playing around with contracts, rules and money was a perfectly acceptable form of behavior in the company. Came out afterwards and there is no way outsiders would know that. Is there a lot of rot . Once you have those corrupt internal practices, it takes a lot of rooting out because there are people with a vested interest to maintain the status quo. Column Bloomberg Opinion pointed out carlos ghosn went to jail but this second person gets shoved out the door. If you were a ceo being headhunted, why would you take the job . , particularly if you dont have clear guidelines as to what you can do. Personally we think the thing that needs to do is they have to completely realign the business, start collecting far more capital towards the electric products and they have drifted that way. They came out with one of the earliest electric cars, but it is not done very well. This is nissans problem. Japanese car demand in china is slowing down in china, but top End Developers are doing well but nissan is not. Nissan has got a fleet model lineup that is between the best japanese and the sort of not so good koreans. It is in nowhere land. The problem with that is it is losing market share, it is never really generating high Profit Margins and it is certainly not at the moment. He doesnt have the resources to reinvest itself. It doesnt have the resources to reinvest itself. A company probably has to sack what a lot of people to clear corruption out, and it has a failure in product, not the easiest. Shery tell us about the broader industry picture, because we see this focus on leasing and nissan trying to build a car rental fleet. When i talk about Car Companies building a rental fleet, it is not actually building a rental fleet but what a lot of companies do is they manufacture a car, then they lease it to the customer rather than getting paid up front. When you look at the accounts, it is flattering because the cost of the lease portfolio, four below and sales keep going. Instead of a sales discount, it is an appreciation problem that gets below the line. I dont want to use the word naive investors look at this and sega sales are going up. Not realizing the cost of all of this leasing falls below that line. If you think about it in entirety, producing a car which they are buying themselves, and else, itut to somebody innocence becomes a car rental program. The problem nissan has got is it is not making any money when you put all of this in total. It is a self perpetual motion machine which keeps them alive, may or may not drive up car sales but it doesnt make excess money. From the time we have you, we are getting a headline on the bloomberg terminal the u. S. Is expected to agree not to hike tariffs on japan autos. It was a report from the tokyo shimbun, and there will be a joint statement. Sorry to put you on the spot but does that at least improve the backdrop a little . Not really because if you are making cars people dont want, it doesnt matter. Putting a tariff on it is a problem but if you are not making cars people want, you will not stimulate demand by not having a tariff on it. I dont see that this helps japanese cars. The reality is cars are not coming out of china being sold overseas into the u. S. So i dont think it makes a difference. When you look at nissan, the key thing is they need correct strategic direction. And then they have got to come up with a product people will buy at a price that allows them to make money. I dont think they have enough those capexd investments. If you look at bmw and the germans, there is no way nissan can keep up. They dont have the balance sheet. When you start falling behind with electronic cars, you will struggle to catch up. But nissan is a zombie on its way to death. Paul all right. Research partner founder and managing partner, thank you for joining us today with your explicit thoughts on nissan. Lets get a check of the business flash headlines. General motors staff have called their first strike in 12 years, halting work at thousands across europe. Ted auto workers want out walked out midnight sunday despite a last minute offer. Most of which would be new hires. The uaw said it falls short in several areas. Doubling itsnk is stake in a brazilian online lender that offers a zero fee fraud is. They did this in july for about 186 million and is now buying the same amount from the controlling family. Softbank is on a buying spree in south america and has spent 1 billion on Technology Companies in the region. Dairy has agreed to buy all of you Bellamy Australia to boost supplies for mainland consumers. It compared with fridays Closing Price at 8. 32. Bellamys board recommended the offer but will face scrutiny under australias Foreign Investment clause. Shery lets look at markets, seeing a rally continuing in wti and brent prices with wti above 61 a barrel. Oil futures gaining ground as we see safe haven demand. Checking on markets, kiwi stocks rallying after five sessions of losses and going towards the open of korea and australia. This is bloomberg. At comcast, we didnt build the nations largest gigspeed network just to make businesses run faster. We built it to help them go beyond. Because beyond risk. Welcome to the neighborhood, guys. There is reward. Beyond work and life. Who else could he be . There is the moment. Beyond technology. There is human ingenuity. Every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. Take your business beyond. Paul good morning im paul allen in sydney. Shery from bloombergs headquarters in new york, i am shery ahn. Welcome to daybreak asia paul our top stories this monday, oil soaring after attacks on a key aramco facility by a drone cuts saudi production by half. Out may take weeks to return to normal. Rebels in yemen claim response billy but washington plate pins blame on iran. President trump is locked and loaded for a response. Hong kong protesters say the government must do more Police Used Tear Gas and water cannon as violence flares again. Shery lets get a quick check of markets opening in sydney and so coming back from holidays. Gainingeeing a sx 100 three tens of 1 . As we continue to see Energy Stocks gaining ground as oil rises on the drone strikes on key aramco facilities. The kospi also gaining. 3 after coming back from holidays. The japanese market closed on holidays today. We are seeing the japanese yen trading and gaining ground and trading at 107 level. Strength as we continue to see some haven demand for japanese yen. But paring back some of the early gains as we have President Trump allowing the release from the Strategic Petroleum reserve. We are seeing brent above 68 debbie uti above 61 per barrel. As we continue to see demand concerns weighing on the markets up until last week. Paul i want to check on the stock in australia, bellamys soaring them open up by 50 . This after Mengniu Dairy offered to take over the company 13 25 a share. , values close of 832 bellamys at 1. 5 billion. The board unanimously backing that though it will face ray latoya approval in australian per it for now bellamy shares surging 50 at the open. Lets get to our next guest who says oil markets are not now going to be forced to price in more geoPolitical Risk. Paul since attacks and fourmonth on saudi facilities. This one was quite spectacular. Cost, hardlyow effective is this risk being priced in . This attack was different. If you look at the key focus of the attack, the cake processing facility, this is arguably the largest strategic piece of Oil Infrastructure globally, accounting for 5 of global oil supply. As he said targeted attack. We are waiting to hear more from the saudis regarding how long it will take for this to ramp up. There is an indication they could get a third of that supply back within the next 24 to 48 hours, it could still take weeks until we see a resumption of full Production Capacity from this facility. Paul are saudi facilities adequately defended . Us is becoming regular. This is becoming regular. Indeed. This is the largest single disruption we have seen oil supply on record past the disruption we saw when saddam husseins iraq invaded kuwait. And even the Islamic Revolution in iran and 79. The impact of this is so much in the heartland of saudi arabia. And the fact that this has been able to be attacked from a distance, and there is argument or conflicting reports of where the attack originated from. In vulnerability in one of the Worlds Largest oil supplies. Until recently the market have been focused on supply and demand fundamentals, weakening demand globally, looming oval supply next year and argued louis have not been factoring in enough this geoPolitical Risk which has now been brought back to the four and the market side we see in response in brent prices and wti prices. Dayy our question of the for mliv on bloomberg, which other assets could be most vulnerable to a oil shock . Shery it seems his not getting me now. So go ahead pollen asking your question. Was just asking their about the reaction we have seen in the price of brent and wti. Is that the end of it, was it overplayed . The key uncertainty and impact of markets is going to be the duration of the disruption. Short, saudis have said they would continue cells from inventory, months of inventory, 5 Million Barrels a. Ay output if it is a short disruption where likely to see prices rives as geoPolitical Risk is factored in, but only by a few dollars. However if the disruption is prolonged, we have a difference on reo. If you look at where we could make up for the shortfall, it is hard to find where it could come from. Trump authorize access to the Strategic Petroleum reserve in the u. S. We could see relaxing in countries like venezuela. Outside saudi arabia and iran, theres less than one Million Barrels of Spare Capacity across all of opec. You can see prices in the instance we have a prolonged disruption, prices rise to the point were we start seeing demand disruption demand destruction. That could result in more materializes in prices for the prolonged. Paul what else is deceiving most vulnerable . Their winners and losers from the scenario. One of the biggest risks obviously the saudi aramco ipo. It could be seen and a highrisk light as result of this. Global demand could be impacted if we start to see sustained or more volatile oil prices paid the winners are going to be oil producers. Across the world which are outside of saudi, particular outside of the straight of his, which the strait of hormuz which could be at risk. Brazil, guyana, australia could be winners from geopolitical event here. Paul lets talk about demand which has been weak in this glowing global growth. Slowing global growth. You have to put in perspective we have seen revisions down in demand over the last three months to six month. But we are talking about hundreds of thousands of Barrels Per Day in terms of scope. We have a supply outage on the order of magnitude larger at 5 Million Barrels per day it will take get revisions in demand before you can offset the supply disruption. And still supply disruptions of a geopolitical nature have a much more influential impact on oil prices in the near term then demand changes. Paul supply questions have been a hot potato at opec plus meetings. How much more difficult is the conversation going to be at the next meeting . Interesting to see what happens with opec now. There are indication reports that saudi radar talking with opec partners about making up for some of the shortfall. The problem there of slit still limits with only one Million Barrels of Spare Capacity outside saudi arabia limitmit iran, their only to which other opec measures are going to respond. The other opec members are argued lee going to be winners in the short term if they can increase production at the expense of saudi market share. That may be the focus of the initial conversations. We will still have to hit the heart of the decision the harder decision about extending cuts through the end of next year. Frankly even with the extension assuming everything returns to normal here and we seen extension in cuts, youre still looking at potential half million barrel a day build next year, what we saw weighing on prices to last week. Paul Credit Suisse head of Equities Research for oil and gas, thank you. Shery and you can turn to your bloomberg for more on the story, to get extra expert analysis. How the steady tech might play out in asia youre watching the kospi in particular appeared right now it seems pretty muted after coming back from a long weekend. Kospi has a few factors that are impacting edge. One as he said it is coming back for long weekend. The other is looking at some of the individual stocks there are some very big gains. From companies in the oil sector. Somethinging to be that will cloud the outlook for stockmarkets, any oil company is going to rise by i think a korean oil, he was up 30 . Samsung which is a wider bellwether for the korean economys outlook, it is down 1 or so. That highlights the underneath the surface might be concerns about what this is going to do an economy that is very reliant on exports, that has been slowing markedly and which might not appreciate the potential for an extra tax effectively that five dollars to 10 per barrel higher going forward. In crude oil that is going to deliver. What about china and secondorder effects there . These eventsys will take the focus off of china though argued late should increase the focus on it. China much like korea, the economy is in a tough state. The trade wars have not helped. But there a lot of internal drivers that were causing of problems. So than china, like asia is one of is the key buyer of saudi arabia crude. A disruption of saudi arabia and oils pleasant particular both debt hurts asia and hurts china peered what might also hurt china is it was expecting to be able to resume perhaps getting crude from iran if there is going to be a meeting between trump and rouhani. To, again, adds up another sock to the chinese economy that has had its philip shocks. Its fill of shocks. We are also watching for what the response might be from the pboc and chinese government. Onl you can follow more this story and all of the days trading at our markets live blog you can find that on the erg at mliv you can find out what is affecting your investments right now. Lets check in on the first word news with su keenan. We start with protest in hong kong. They have taken a much more aggressive tone with demonstrators setting fire to the mtr subway station in wong china and police heading back with tear gas, pepper spray and Water Cannons. Is entering its fourth month and the economy is increasing the under strain. Eric traffic slumped 12 last month from a year earlier with passenger numbers down in china, taiwan and southeast asia. To the u. S. Now a fresh sign they economy is slowing, the cash rate index is a monthly measurement of rail, trucking and air cargo volume and it fell free percent in august from a year ago. 3 . The ninth straight month of declines. The index lames tariffs and the trade war for the downturn which contradicts President Trumps claim that is presiding over quote perhaps the greatest economy in the u. S. Reports from london say u. K. Prime minister Boris Johnson is ready to just defied a new law against the deal brexit. And have to fight his case in court. Sources in the government say johnson is taking an increasingly hardline as he prepares for talks with the io Commission Later monday. President Jeanclaude Juncker is warning a heart split next month will create utter chaos that will last for years. Estimates of the damage caused by the typhoon in japan put the bill at up to 7 billion the storm forced the closure of sony and nissan factories in tokyo, and stranded thousands of people at narita airport including the England Rugby squad preparing for the world cup. Storm also cut power with half a million customers impacted. Global news 24 hours a day and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. I am su keenan. This is bloomberg. Come, we will be joined by Franklin Technology Fund Portfolio manager Jonathan Curtis to get his take. Next we will preview the latest ecodata from china. This is bloomberg. This is daybreak asia paul im paul allen in sydney. Shery i am shery ahn in new york. Later today retail production and Industrial Sales numbers. A rebound would raise questions over sustainability. Joining us now is Ubs Investment Bank head of asia economics and chiefs china economist. Great to have you. With Industrial Production. Growth in that segment fell to a 17 year low into life and what are the chances we will see stabilization in the month of august, especially when the rest of the world seems to be suffering from a manufactory downturn . The july number we think was very weak, 4. 9 . Payback from exceptionally strong june. There was disturbances with the car production and car sales. We think there should be some stabilization in august. We are looking for slightly above 5 growth. In august. It is still relatively weak compared to the recent past. But compared to july there should be some revival. Shery what about the consumption side, what are you expecting terms of retail sales . Come session we think in august consumption in august we think was relatively weak, dragged down by relatively weak car sales in august. With big it will be better than july because of julys payback. We are looking for around 8 growth in august. For retail sales. August, with the andlation of the trade war very bad car sales and car production, the number are going to be week. Looking forward, i think we should see some stabilization. The downward pressure from higher tariffs are still kicking in. Terms of the trade war escalation, what degree do you think a weaker yuan has been cushioning the impact, and where you see the currency heading from here . Yuan as the rmb has appreciated against the dollar, but the dollar has been quite strong. Has not really depreciated against other currencies so any cushioning factor is quite limited. And at the same time, the authorities are concerned that further depreciation could set in a protracted expectations of additional expectations for domestic residents. So they will continue to manage the currency tightly. We are only looking for 7. 2 this year and 7. 3 to share, although there should be volatilitys. The recent news of some delay of tariff hike has sent see ny stronger. Cny paul you also see policy easing on the way. What do you see in terms of magnitude and timing . Ourn the policy easing, view is that the government is going to do incremental easing, into the tariff hike and so on, to cushion the negative impact from export. Not any major new stimulus but incremental easing pair where looking for another 50 basis points of rrr cuts this year and another hundred rrr cut year. Where looking for the government increasing local special government bonds. More fiscal easing, more info structure, overall it is going to help growth to stabilize in our year around 5. 5 next year. Should still be able to achieve around 6 growth this year. It is really a stabilization rather than a reacceleration. From these kinds of easing. Examplelover effect for for australia or commodity countries will be limited. Shery how much have we seen already, in terms of the previous round of easings that were more targeted like rrr cuts or cuts for regional banks, not to mention the fiscal stimulus seen in terms of tax cuts per it how much of all of that has already been felt through the economy in china. And how much more could there be to come . The tax cut already into the system. The tree be us previous run is more targeted and focused on tax cut. There is also support of the financing for the private sector. In the current environment, when the economy is going down, corporate sentiment is weak. The tax cuts and even financing support for the private sector are going to have very limited multiplier effect. So it is not going to generate really very big shortterm growth. Going forward, i think the magnitude is smaller than previously what we have already seen. But it is going to be different, it will focus a bit more on info structure investment paid we are looking for Infrastructure Investment to rebound from 3 year to date to high Single Digits the rest of the year and to 10 next year. That is the main lever the government is going to have to use. Let me ask you about longterm issues china faces. We are headed for the 70th anniversary of the founding of the peoples republic of china. What will be beijings biggest challenge in the coming decade . In the coming decade, i think the government aspires to bring the country to the next level of development. Thevation and also improve social welfare system for the majority of the people including Migrant Workers and rural people , i think are some of the key challenges. In this process, how to move away from continue to move away from traditional investment led growth, and get and debt fueled growth is the challenge. Moving toward services, consumption and making debt sustainable. And keep property prices from rising too much. So in this transition. , that is the biggest challenge. Ryan you can get around up of the stories you need to know to get your day going in todays edition of daybreak, bloomberg subscriber. Dayb you can customize your settings so you only get news on the industries and assets you care about. This is bloomberg. Out. This is bloomberg. Paul this is daybreak asia i am paul allen in sydney. Shery i am shery ahn in new york. Bellamys jumped 50 in sydney after the Chinese Company agreed to by the company for the equivalent of a billion u. S. Dollars. Closing with fridays is beenhe offer recommended unanimously by bellamys board. It will face scrutiny under the Foreign Investment law of austria. Paul doubts are growing that the boeing 737 max will be back in service soon. The uae officials are contradicting boeing Officials Say may do not expect a plaintive fly before next year at the earliest. Boeing says it sees approval of the coming weeks. But the uae does not speck the max back before early 2020. Shery General Motors staff have called her first strike in 12 years, halting work at dozens of facilities across the u. S. And the dispute over jobs, pay and benefits. The United Auto Workers walked out at midnight sunday despite a lastminute offer for pay hikes and billions of dollars of investment and more than 5000 extra jobs, most of which would be new hires. The way debbie said the offer falls short in several areas. The uaw. Paul lets get a quick check of what is happening on the markets. We have south korea all the 2 weaker point by. 2 . In new zealand positive territory by. 25 . Plenty more to come here on day bric asia and we will have the latest Market Reaction to the saudi oilfield attacks as brent surges the most on record the yen and treasury futures trading higher as well. We will have an update on all of this in a moment. This is bloomberg. What the opec plus agreement has been taking up offline are medium and having grades. You have refiners that can only run these light crudes and now do not have a source for that crude. And there is no easy replacement out there, other than stories reserves, specific late aramco, theres not a quick way to put the supplies back into the market. That is going to cause a pain point. That is going to drive the brentwti spread. There have been manufacturing recessions going on in the euro zone, in china. Those things are dampening oil prices. That is why prices have been under pressure for a number of months here. We could see prices really not rising as much as one might expect because we have a weaker demand. Seene fact that we have already some dampening of the original reaction of the oil market, and the fact that there does seem to be a response from the u. S. With Strategic Petroleum reserve, i will think we will see a reaction, but i would not expect it to be huge. Maybe a percent or so. Some of ourare guest this morning reacting to some of the assaults on saudi arabias oil supply. If we take a look on how oil prices are right now, we saw big spikes at the open. The price seems to have settled now. 13 ,ve brent higher by debbie ti just a shade under 12 higher. Wti. A fairly muted response. Almostweaker by flat now. Bye new australia, weaker. 3 . The yen containing to show strength. Lets get over to our asia equity teen leader asia Equities Team leader. Reaction not a huge reaction on the markets. What have you been watching . Digestingrs are still the situation. We have been talking to a number of analysts and investors. They saying the situation is still quite fluid because a large part of the Oil Production facility in saudi arabia will be restored. But in the long term, this geoPolitical Risk, whether it is really important risk factor or a oneoff risk we are not to shorten we are not certain. There are markets that are not open yet but my to get hit, such as china, india, indonesia. Japan is on holiday. Those markets are oil importers. Especially india, we do expect the nifty and sensex to drop when the india market opens. In terms of sectors, honestly refiners and also Airlines Stocks that are not fully hedged to oil risks would take ahead as well. Investors are saying this might be a Good Opportunity for people to buy on the depth because once you look past event there still a lot of tailwinds for the market, such as the global easing trend. As well as the easing tensions between the u. S. And china. Shery to your point on sectors, we saw this massive rotation start to happen a few days back, where we went from Growth Stocks to value stocks peered what are we expecting in this trend . Yes there is a huge meltdown in momentum stocks last week and we see a rotation into something of value such a small stocks. Investors are saying this week the trend will likely continue. There are events that might disrupt the trend, such as the oil job as we saw. Sold offhe sectors such as gold and u. S. Treasuries are already getting a left. A left. This week a lift. We will also be looking at Central Bank Decisions such as boj and the fed and boe and indonesia. All of them will potentially change investors use in terms of investment. Also in japan, that is when market a lot of investors are focusing on because it has been sold off a lot and we are seeing a huge gain in the past week. The best week since 2016. Saynikkei s p see analysts is time to buy value stocks in japan now especially those that have been sold off a lot but still have solid earnings. Shery thank you so much. Our asia Equities Team it later. As she mentioned we are expecting those Central Bank Decisions for more on that lets bring our chief asia economics correspondent. Let me get started with the fed, the decision is expected wednesday. Markets seem to be pricing in a cut when it comes to those rates. What are the chances the markets will be disappointed . There is always a risk that the markets get it wrong. Holes d were the hold off easing, given that the , given that the narrative and guidance and expectation coming from the fed and markets has been toward at least another push toward easing in september being the most likely month, the bigger question will remain, what kind of signal chairman powell sends at the meeting. Just how dovish is he turning, just how negative is the fed becoming on the s economy and indeed on the World Economy and we are heading into the critical final too much of the year where they real impact of the trade war is expected to start having a big impact as tariffs go up at new tariffs arrive. A special as we head into the critical global season for consumption around the world. A key thing will be yes, the fed wouldpected to cut and i be expected the price if they dont. But how negative are they on the latest state of play on the World Economy will probably be the biggest take away. Paul we also the bank of japan meeting this week. There is feeling that today might cut sort term rates into negative territory. It is a tougher one than the fed. In many respects. Because the japanese economy remains somewhat under pressure. It is hurting with the strong yen. We know there is a manufacturing slump in japan and the rest of asia and europe. The export story is not where it was. There heading into the increase in consumption tax in japan. The thinking is that will be a weight on consumers. Is not clear what the boj will or can do. They are already in the middle of a massive stimulative program. That is having negative side effects according to the boj themselves peered they are concerned about the impact that negative rates has on for example bank and insurance sector profits and on regional banks. And there is a skewed effect in the Financial Markets because the boj such a big purchaser of securities. All that said, some economists say this one is in play peered we have reported ourselves that the boj are considering new measures in terms of what they can do to control or support a bond yields per that would be a new step. The expectations going to the boj are that yes, there options are summit limited but there is a feeling that there may be another surprise that governor kuroda could pull out of his Monetary Policy bag. Economicsasia correspondent. Thank you. Lets chicken on first word news with su keenan. Brent crude rose the most on record after drone strikes on saudi Oil Facilities removed 5 of Global Supplier sources say will take weeks to restore full output. Meanwhile washington blames iran for the attack and President Trump tweeted the u. S. Is quote locked and loaded for response. Tehran denies any responsibility. Rebel forces in yemen say they carried out the strike. To the u. K. The u. K. Financial services regular has indicated a bid from Hong Kong Exchanges and clearing for the long London Stock Exchange would face tough examination both in the u. K. And abroad. The Daily Telegraph cites sayses inside the lse and the regulators stance helps underpin the initial rejection of the hong kong bed. The Financial Conduct Authority has declined to comment. The hong kong bid. The trade spat between south korea and japan is set to heat ready to exclude tokyo from its list of trusted destinations. Japan will be bundled together with nations that are part of koreas export regime, but have adopted unsatisfactory policies. The pan removed korea last month from its own white list of favorite export nations. To the u. S. , theres another sign the economy is slowing. Is aass freight index monthly measure of rail, and air cargo molly volume. It fell for the ninth consecutive month of decline. It contradicts President Trumps claim that he is presiding over quote perhaps the greatest economy in u. S. History. Global news 24 hours a day and tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. Im su keenan. This is bloomberg. Shery thank you we have breaking news. We are hearing that blackstone will be buying the dream level units and assets for 6. 2 billion Canadian Dollars this be the real estate funds managed by blackstone. Theyre going to acquire dream level in an all cash transaction. According to their statement. Dream global unit holders will ofeive Cash Consideration 16 and . 79 canadian per dream global unit share. We are hearing this will be based on their Closing Price of september 13. And the offer would represent a the 18. 5 by 5 the copies board has unanimously approved the transaction. Td securities will been acting as their financial advisor. Dream global recommend unitholders to vote in favor of the deal. Once again, blackstone funds buying dream global units and assets for six type 6. 2 billion canadian. Lets turn to hong kong. We have seen the 16th week of protests and tear gas and Water Cannons used on crowds of demonstrators, tens of thousands the five demands on a mass rally tens of thousands if i abandon on a mass rally. Sophie kamaruddin is there. Tell us what to expect this week and what happened over the weekend. Thes quite surreal to see money money activity after what we saw on sunday. I am standing Near Government headquarters where the Legislative Council issued a red alert which requires a complete evacuation of the buildings here as a group of protesters broke away from the main column of that largely peaceful rally to target this complex. They use petrol bombs and right police and return used tear gas as well as rubber bullets, pepper spray, and a water cannon to push the protesters back. Train stations were also affected in this district and elsewhere. They were vandalized. One station had two entrances set on fire as more petrol bombs were used by protesters. The mtr has that legal action may be taken per the Hong Kong Government has condemned the violence. We are in month four of the unrest. Yet there are no signs of protesters slowing down even as the economy is being affected. On sunday, the hong kong airport reported a 12 drop in passenger traffic for the month of august. That is the biggest decline since june 2009. In on a are closing politically sick and day, october 1, the 70th anniversary of the founding of the peoples republic of china. Is there any sign that things might calm down or there might be in all before then . Ranch and olive . Anch before then echo there has yet to be Real Progress on dialogue. And change in tactics when it comes to beijings view on the situation. Chinese state run media leading into this weekend targeted property tycoons criticizing them of their vested interests. Have built a sideline including swire, the citys fifth largest developing by market cap. Daily, for thes sake of public interest, it is time the Developers Show their utmost sincerity instead of minding their own business, hoarding land for profit, and earning the last penny. Statement media also call them also called on carrie lam to use existing tools such as the lands resumption ordinance. That would allow the seizure of rural land being held by Property Developers. This also why there speculation the government could invoke Emergency Powers that were last used in 1957 during the leftist rising. And honghie kamaruddin kong. Thank you. Still to come, investing in technology is more than just apple. The mansion of the 3 billion Franklin Technology fund gives fromtour of his Portfolio Companies he sees best positioned for the digital transformation. This is bloomberg. Shery this is daybreak asia. I am shery ahn in new york. I am paul allen in sydney. Tensions have released somewhat on the prospect of trade talks in washington. Jonathan Curtis Franklin templeton companies llc, was a 3 billion technology fund. Some of the tech executives youre talking to actually approve of President Trumps approach to china even know they dont necessarily improve approve of the manner. Thats true. Many of my discussions in the valley, many tech executives have said this is been long overdue. Certainly u. S. Companies want better access to china. What better protection of an electoral property. And want access of intellectual property, and want access to that massive market on equal terms. There happy with some of the initiatives the Trump Administration has been pursuing. Paul what is your attitude on the recent trade war deescalation and encouraging sounds we have been hearing ahead of this meeting in october. Do think any of the tech industrys concerns are going to be meaningfully addressed there . Certainly, that is the goal of the trump ministry should china has done a fantastic job over the last 20 years of building your own tech industry. They have amazing internet companies. Theyve done a great job of Building Network and telecom companies, opensource software. Where they have struggled is with semiconductors and the trump instruction has been leaning into the power the u. S. Companys have in semi conductors. And of course in response, the chinese have been aggressively trying to build their own semiconductor industry. So in our strategy, we are overweight in some of the semi cap equipping names that are going to help the chinese build their own semiconductor industries, names like kla, lam research and Applied Materials we think overall will benefit as the chinese seek to become more independent of the u. S. To connector companies. Shery is that how youre persisting your portfolios, given we continue to see more Political Risk around some of these tech names . Many ofell certainly the names we have the portfolio do relatively little business in china with the exception of alibaba and tencent which are both in the portfolio. In semiconductors, our view is that the demand environment has been volatile. But we do not think of a conductor demand is being destroyed while way is not able to build a smartphone or a base station, then samsung or apple or erickson will pick up that demand. But certainly, we are overweight in Semiconductor Equipment and we have been taking care of taking advantage of some of the more shortsightedness that has been going on in the semiconductor space, and increasing our set exposure there because ultimately we beloved those markets are, those companies are recently valued and some of the themes that we like in the Technology Space. Those tell us about themes be continued see focus on 5g or Cloud Computing or the internet of things. The bige think opportunity in the Technology Space is having called digital transformation. This notion that every Industry Needs to go on a Digital Journey to better understand their customers. And business processes. And then engage with their customers more deeply. We have already seen this happen in retail. We have seen this happen in media. And now it is in the early stages of happening in financial services, and transportation. Theme are that big subthemes like, artificial intelligence, Cloud Computing, internet of things, digital payments. So our portfolio is full of many exciting Growth Companies that are leveraged to the subthemes. Probably the most important and biggest overweight in the portfolio right now is Application Software appeared within that three names we really like a great deal are surface now which help digitized workflows, workday which helps businesses understand their employees and engage with them and they are moving into National Service software, and salesforce which House Companies better understand their customers, better market to their customers and automate their cells processes. Bigthen course we love the opportunity in public, cloud we think the market is underestimating how big the opportunity is. I think it is at least a trillion dollars in size. Today is under a hundred billion dollars. Copies like amazon, microsoft, google are all growing in excess of 40 . Alibaba and tencent are doing very, very well here and in asia without opportunity. As he get Market Opportunity that is still the earliest stages of its growth trajectory. Paul your point on the cloud, cloud floor had a very successful ipo last week. A rare success among a sea of recent letdowns. Where are you getting exposure to the cloud what you like there . Flare in thecloud portfolio. We owned it now for a while as a private copy. Which is helping carriers and enterprises express their business in a softer way on the commit occasions networks. Their opportunities with a wellknown public cloud companies. But than Smaller Companies that are helping fill the gaps. It is very broad market. Shery any time we talk about tech firms we cannot overlook the regulation headlines that we could see in the future. How much of this are you factoring in . It is certainly a factor. With that thought a lot about it and frankly we think the u. S. Government is going to struggle to adequately regulate these companies. These copies are still the most efficient place to deploy an advertising dollar relatives all the other alternatives, television, magazines, billboards. So we still think advertising dollars are going to flow into these big tech platforms. Because of how efficiently they help advertisers understand weather and out is been seen on weathers been acted upon, and really delivering up audiences for the advertisers to engage with their customers. Difficult forry the legacy models to get anywhere close to that. Even in the face of increased regulation, we still think these big platforms will see significant expansion in their activity with advertisers. Siu not to really worried about a disruption for the companies that are very data centric. There has been some talk about breaking up names like amazon and the like. But if you think about ecommerce in the u. S. , perhaps just 10 of u. S. Retail bedding, amazon is perhaps amazons preps half of that. A relatively small share of real overall retail activity in the u. S. On the cloud front, their second big business, the only thing that opportunity is at least a trillion dollars in size. Today amazon is just 30 blaine dollars in size, also singledigit percentage share of that market when you define it broadly. So we think the risk of real, meaningful regulation is low for these companies. Shery thank you for your insights. Technology Fund Portfolio manager joining us from shanghai. Lets get reaction to the saudi aramco attack. There are seeing Energy Stocks gaining ground. Woodside petroleum jumping most since december of 2016. This coming as we continue to see a mixed picture across asia. Energy stocks rallying. Since growing the most 2018. Sk innovation up three points, 3 . This is bloomberg. Shery schedule quick check of futures trading. We see continued pressure on u. S. Futures, down around six cents. 6 , this after attacks on the saudi aramco facilities. Right now youre take you look at Energy Stocks which are and brent wti continue to rise. Woodside petroleum gaining the most since december, 2016 and santos jumping most since 2018. This as we continue to see the rally on wti and brent prices. Wti trading above six dollars per barrel while brent is around ixia dollars per barrel. Barrelper. Paul marta, Bloomberg Markets china open. Saudi aramco the attack, plus former hkex chairman discusses the Hong Kong Exchanges bid to the London Stock Exchange. That is that is it from daybreak asia. Markets covered continues as we look ahead to the start of trade and hong kong and shanghai. Standby for this is bloomberg. Bloomberg markets china open. This is bloomberg. Here, it all starts with a simple. Hello hi how can i help . A data plan for everyone. Everyone . Everyone. Lets send to everyone [ camera clicking ] wifi up there . Ahhh. Sure, why not . Howd he get out . a camera might figure it out. That was easy glad i could help. At xfinity, were here to make life simple. Easy. Awesome. So come ask, shop, discover at your xfinity store today. It is 9 00 a. M. In beijing, shanghai and singapore. Welcome to Bloomberg Markets china open. Im tom mackenzie. Yvonne we are counting down to the open of trade in hong kong and mainland markets. David top stories this monday. Oil soars the most ever in dollar terms after an oil plant comes after attack. The strike got saudi production in half. Yvonne rebels in yemen claim responsibility, although washington pins the blame on iran. President trump says the u. S. Is locked and loaded for a response. Tom and the hong kong protesters say the government must do more. Police used tear gas and Water Cannons, as
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