Ahead of his News Conference there later today. And samsung shares rise as the Company Beats on Quarterly Earnings. Memory chip prices finally begin to climb out of a persistent downturn. It is 8 00 a. M. Across the emirates, 12 00 midday in hong kong. This is bloomberg daybreak middle east. Im tracy alloway. The middle east never has a shortage of news that this morning with iran announcing a seriesf missile strikes on u. S. Bases in iraq, the First Response to the killing of general soleimani, as i mentioned. Reporters are on standby to walk us through the latest developments. What are we seeing in terms of the reaction from the u. S. . So far, u. S. Reaction has been muted. The u. S. Did not release numbers for casualties, and basically, they are still assessing. President trump says all is well. Basically saying so far all is good. Meantime, meanwhile, we are looking at a response from the iranians where the foreign minister kind of hinted there might be actually a deescalation because the u. S. Already because they already responded to the u. S. In a proportionate way, and he wanted to show that this was in many ways consistent with international law. Across the region, everyone is bracing for, you know, all the races are on high alert. There was a lot of bluster and discussions of revenge in other areas where everyone would be worried about the proxies of iran launching attacks we do not but so far know the deaths andasualties resultg from t attack, it seems maybe we are heading toward deescalation. Tracy i think that is key, the fact that so far, there have been no reports of casualties. Over to Juliette Saly to discuss what we are seeing in markets. Initially, we got that big sponsor, big drop in u. S. Equity futures, but it seems things are recovering this morning. Absolutely. See more of a kneejerk reaction downwards in the last hour or so when we heard the report that there had been a crashing of a boeing 737 jet, but you can see s p 500 futures paring some earlier losses. You still have gold at these april 2013 highs, but off that 1600 level we saw earlier today when it had climbed about 2. 4 in the early asian session. Tracy lets head to aaron for the latest in the oil market. Again, we saw a big reaction when these headlines first crossed the bloomberg. The Brent International benchmark up Something Like 5 . What are we seeing now . Oil has really paired those gains. Like you said, there was an initial kneejerk reaction in oil markets, brent jumping 5 . Right now, it is about 1. 4 up. Closer to 69. It seems like the situation may be deescalating. The concert is there could be a supply disruption in Energy Markets, particularly the strait of hormuz is something people are looking at. In the past, iran has threatened to disrupt shipping or halt shipping and the strait of hormuz. There is nothing to indicate theyre doing that this time, but it is something they have threatened. About 1 3 of the worlds seaborne oil passes through that street. Thats why oil and Energy Markets are looking at this very closely. So far, theres nothing to indicate there is a disruption in oil markets. Tracy mark cudmore, who heads our markets live blog, is with us. What have you heard in terms of investor reaction . Are they reconsidering the iranu. S. Tension threat this morning . If you walk in this morning and looked at markets, it seemed like the overall reaction has been quite subdued. Kneejerk reactions this morning have actually retraced. Looking much are more liquid than they were when we walked in. This shows these markets are very sensitive. The resilience from the start of the year is gone. We came into the new year with most investors looking very bullish, and now already, people are very nervous wondering how long this will last, if this will play out over several months, if this is just a headline story, and that means theres extra risk premium, and extra bid for implied volatility, so i think in the shortterm, that will remain until trump speaks tonight our time, tomorrow morning and u. S. Time. When he speaks and asks more clarity, the next stage of escalation is going to be soon or something on pause. That was the impetus for if we could calm down and get more relief in assets or if we again selloff later on tonight. You mentioned that risk premium in risk assets, but if you look at the s p 500, we are only 1 away from alltime highs. How sensitive is the market going to be to ongoing political tensions between the u. S. And iran is the year goes forward, or will we see investors continue to climb that line of worry . Its a valid question. Generally the theme throughout the years is geopolitics has not had sustained potential to the market. It helps the s p has climbed a wall of worry for some time. There are many worries because of the trade war but assets finished with a high. Means theres still a lot of cash waiting to come in from the sidelines which means the overall backdrop is still quite disruptive for further equity games, but i do think we will see a more sharp reaction and we havetained reaction not seen any direct supply disruption of oil, and i think that is quite important. That means this could become a bigger oil spike which could lead to a broader risk aversion story. Overall, i think this will add and flow for many months. It will not disappear completely from the radar, but we will temporarily forget about it when we move beyond the headlines. It is not dissimilar to how the u. S. China trade war played out where we seemed to move beyond it, seemed to get more optimistic, and suddenly it comes back under the radar. It might be the u. S. Iran escalation is a similar type of idea. A longterm story that suddenly comes to the forefront and 72 hours later is forgotten about again. Itcy we are going to leave there for now. Speaking of the oil market and potential supply disruption, our cost on the middle east show is in abu dhabi this morning and is at the Gulf Intelligence energy forum where he has been speaking to the uae energy minister. Lets get more now. You doing . I think really, given the conversations we have just had, it is important to put this oil market into context of the past 5, 6 months. Dealing with a variety of singular item attacks which caused a pop and the price and the reaction function of the market is quite stoic. To that end, the minister of oil here for the uae says he hopes for no escalation, that wisdom on both sides would prevail, but i think the important point is there is no shortage is in this markets according to him unless there is a catastrophic escalation, and he is not his base case as he walks into the Gulf Intelligence form is that they are not expecting a catastrophic escalation and herein lies the point. Goldman refers to that flexibility which mark touched on. If we look at Market Reaction this morning, it is the biggest Market Reaction since the aramco facilities were attacked back in september. The question is there is ampex apple supply within the opec plus line and just to remind everybody, there is a ,mall issued called america supply, and shale. Tracy yes indeed. It is certainly true we have yet to see a physical supply disruption in the strait of hormuz. We look forward to the conversation you will be having later today as well. Lets bring in the executive director for client investments at tourists wealth advisement at torus wealth advisement. Take a look at this chart, pull it up on the gdb function on your bloomberg if you have one. You can see that big drop in u. S. Equity futures followed by basically whiplash and a lot of those losses being pared back this morning. How should risk assets be pricing this type of geopolitical risk . Question. A very good pricing geopolitical risk is very difficult, but i think potentially geopolitical risk is still very much mispriced, and i think the escalation of the united statesiran tension is potentially leading to some rebalancing in portfolios. We had a very strong market rally in the u. S. , and increasingly, we could potentially see investors putting hedges into portfolios. Gold, as you know, has come out of a 10year bear market. It could be the winner out of this geopolitical risk situation, but we could see evan a bit of a riskoff scenario if gold continues to rise. Tracy you mentioned gold, which has been doing extremely well this morning, moving about 1600 an ounce for the First Time Since 2013, i think. However, theres rumblings about it starting to get overvalued given the strength in the u. S. Dollar as well. If you look at this particular chart, you can see on a technical basis, the relative strength indicator that it is firmly in what would be idered overbought territory. Are you still bullish on gold at these types of valuations . Technically, it could be overbought, but dont forget, this is about big picture game changer. Technical overbought levels do not mean much when people are potentially realizing they are wrongly positioned in global risk assets. The real risk is oil would go 80 plus, i think at 80 plus, it could have a meaningful impact on Global Growth and could potentially crash and affect the policy of potentially having too many rate cuts when we have a stagflation environment. That is the risk factor that is the possibility, that stagflation could become a concern Going Forward. To ask about the inflation risk and how it interacts with u. S. Monetary policy, but before we do, in terms of playing geopolitical tensions, aside from global, what do you do here . Move into safe haven assets like Treasury Bonds or cash or do Something Like by defense stocks, which we have certainly seen other investors doing . This chart shows Aerospace Defense equities have outperformed the broader index over the past two weeks or so. What would be your play on u. S. Iran tensions . It comes back to overall Asset Classes and asset allocation. Allocation to could be thels consensus view, but dont forget, just because it is consensus does not make it wrong. Equities are still supportive, but i think gold is potentially the clear winner of all this. Tracy yeah, the wisdom of crowds theory. Michael, you are staying with us. We will get more of your thoughts on that inflationary outlook on the Federal Reserve as well. Ghosn isad, carlos promising to name the people he says engineered a coup to destroy him at nissan. We are live to beirut this hour ahead of his News Conference scheduled for later today, but before that, as mentioned, policymakers around the world are closely monitoring the situation in the middle east. Central tensions force banks to adjust their stance . This is bloomberg. Tracy middle east markets were closed when news of the iran missile strike crossed the bloomberg today, but lets check in at the Qatar Financial Center in doha about what we have seen in tuesdays trading session and how markets might fair today. Good morning, tracy. It was a bit of a mixed picture for markets overall in the middle east and the region, but we are likely to see a big reaction today. That is why i want to focus today on our petrochemical stopped stocks in the middle east. If you jump into the gdb go with me, these are some of our largest publicly traded names. We can clearly see sort of this divergence between saudi oil. Tocks and Oil Companies clearly, saudi bearing the brunt of the impact. Potentially, this is an effect of the likelihood that iran u. S. Attackste for by attacking saudi oil installations. We are also closely watching the Credit Rating of the companies excuse me, of the countries in the region. Fits coming out with a note yesterday saying most of these geopolitical risks are priced in, pointing to a downgrade of saudi arabia in september. However, paying close attention to a rack, there are two things they said that are not in their outlook that could change that rating. One is u. S. Sanctions. The other is the withdrawal of a waiver on u. S. Sanctions. Make sure you are paying attention to lebanon. That also when they felt that would move significantly. Tracy thanks so much for that. Lets get more on how the iran situation might impact markets as well as monetary policy. Michael price is still with me from our singapore studio. You actually already brought this up, but i wanted to talk about the risk to inflation pricesy these higher oil. You can see we have seen a pickup in breakeven inflation rates. That is the fiveyear there is the price of crude oil has increased in recent days. Is inflation the big tail risk for markets now . Es. If you think there is a further risk of inflation, oil could potentially spike to 80 a barrel and, yes, there would be an effect on the economy. It eventually could add to the global slowdown or Global Growth concern story and that potentially would lead to repricing in risk assets. Tracy how would you expect the fed to react to this new threat, given they are still sort of dealing with u. S. China trade tensions as well. There seem to be quite a few unknowns for the central bank to. Andle here quickset to some extent further complicates an already complicated situation for the economy. While the economy is still strong, and oil spike could be something that needs to be repriced in analyst models, but otherwise, i think well diversified portfolios should be holding up. We might see some rebalancing. Value stocks, reduced growth and momentum stocks, and as i said previously, we potentially could see further increases in Precious Metals in both positions because the trend seems to be your friend. Just because it now becomes consensus does not make it wrong. Tracy right. Speaking of the growth versus value in equities debate, lets talk about the upcoming earnings season. We have seen investors worry about various points in time about a slowdown in earnings growth. What are you expecting and how big a deal will earnings before investors this time around . Become moret could of an important data point. Remember the Strong Equity value we saw last year was mostly driven by multiple expansions. I think what is important is to see if earnings could catch up, and that, of course, could come down to if we see stagflation and an oil strike, but that is very much in the cards and needs to be seen. We hope that these iran tensions do not escalate further because if they do, it could lead to and to somecing changing of assumptions Going Forward. Tracy hard to believe we are only in the first full trading week of january as well and already dealing with multiple types of geo risk events. We are going to leave it there. Thank you so much for your insights this morning. Dont forget, our interactive tv function tv. You can watch us live and catch up on past interviews as well as dive into any of the securities or bloomberg functions we talked about on the show. You can also become part of the conversation by sending us instant messages. If you are one of the investors who happens to be rebalancing this january, you can let us know. Check it out at tv. This is bloomberg. Tracy it is about 7 25 in the morning in riyadh, saudi arabia. Youre looking at live pictures of the kingdoms tower. Oil jumping off the back of that news of iran attacking two u. S. Es, brent searching at surgingt passed 71 at one point passed 71 a barrel. The u. S. Benchmark trading at 63. 50. The question, of course, is if eventuallytaliation goes to encompass physical supply disruption in hormuz. So far, we have not seen any indication of that. Goldman analysts warned they would not expect that to happen. Lets get the latest on business flash headlines. Annabelle samsungs Quarterly EarningsBeat Estimates after memory chip prices began to climb out of a rut. 1 3 at thencome well end of the year betterthanexpected. Demand for dram chips used in smartphones and Services Expected to rise with exports expected to be boosted by the easing of trade tensions between the u. S. And china. In 9 airlines took million in noncash charge to account for a steep drop in demand from supply to hong kong. United said the cost has been fully repaired. Visitor arrivals to hong kong fell 56 from a year earlier including a 43 decline from the u. S. Tesla shares extended their record run and elon musk was so happy about the prospect for his new factory in shanghai that he broke into a dance routine. He attended a ceremony to hand model threes to local customers. Tesla has surged since late october when it reported profit and said the model why will launch months ahead of schedule. Nike signed a multiyear deal to be the official kit provider for liverpool football club, winning a hardfought battle with current supplier new balance. Liverpool is the reigning european and world cup champions and looks set to when the European Championship this year. That is Bloomberg Business flash. Tracy . Tracy thanks so much. Still ahead, carlos ghosn is promising to name the people he says engineered a coup to destroy him. We are live to beirut ahead of this News Conference. This is bloomberg. Markets are paring losses after iran fired a series of missiles on u. S. Military bases in a wreck. How much is this a response to the killing of general soleimani and what kind of response from administration . So far, no reports of u. S. Casualties and iran says it does not want war with the u. S. Donald trump tweeting this morning that all is well after iranian attacks on u. S. Bases in iraq. Speaking of the markets, lets get more on how they are treating with Juliette Saly trading with Juliette Saly in singapore. Paring thosetainly earlier declines, once we saw that tweet from donald trump that all is well and heard from the white house that he wasnt going to be updating the nation tuesday night, you have seen u. S. Futures down by as much as 1. 7 . Asian stocks had been tracking on their biggest oneday fall since august last year, but already modest decline 6 10 of 1 . By 1. 3 in the afternoon session. The yen is pretty flat along with treasury. Lets have a look at commodities. We are still seeing the Oil Contracts did, but nothing like the gain we had seen in brent and wti oil earlier in the session, brent now up by. 4 . Gold had earlier touched 1600 an ounce for the first time in six years. It is Still Holding at six year highs but starting to see a little bit more of a pairing in that commodity run as well. Droppingup by 1. 1 and below the 1600 an ounce level. Tracy Juliette Saly with the latest and markets. I should mention we are getting more lines over the reported crash of a boeing 737 in tehran. This was reported by iranian media earlier today. Boeing is saying it is gathering more information on the situation with that particular 737. A boeing Spokesman Says in an emailed to bloomberg that it is aware of the media reports and is gathering more information. Reported 737 that was to be carrying 180 passengers and bound for the ukraine. State media in iran saying it crashed due to a technical issue. We will be bringing you more on that as we get it. Before, lets get more on the commodities market and the oil price reaction to the situation in the middle east. The founder and chairman of Global Energy joining us on the phone. Thank you so much for coming on this morning. Plenty for Oil Investors to digest this morning. What do you think about that initial reaction in the crude oil price . Is that enough of a reaction . Is there enough of a geopolitical risk premium built into the oil market or do you expect there to be further to go . To keepnk that you have in mind that the market is market is at ahe soft balance. Reactiona kneejerk and after a while, it subsides. It seems pretty apparent that the iranians today launched a measured attack, which was it seems there are either no u. S. Casualties, or very few. And that donald trump seems to this. Sitive about this means theres room for him to sees that things are deescalating so it will be back to normal in a short while. The actual about cost to the Energy Industry . For instance, would you expect pinker operators to pay higher insurance premiums as they go through the strait of hormuz . People whothe only would be directly impacted would operators, but even the increase of insurance rates, they jumped fast at the beginning, but now there is a feeling right or wrong that things are deescalating and that would perhaps not be such a big burden. So far, the oil markets are concerned, if the markets are very tight, these kinds of things could raise the price. If the markets are soft balance, a four dollar or five dollar increase in price, and then in another day or two, it should subside back. You expect saudi arabia to may be ramp up its production in response to the higher oil prices, or are they going to be constricted by the opec Production Cut agreement . No, i think they will be constricted. Actually when you look at the not much has happened. If the price is 88 a barrel, they may have increased, but this is a fear factory. It is not a supply demand issue. Even if the saudis increase production, it wont have a big impact on the price. It is based on fear. At the movement, everything should be back to normal. Unfortunately until donald trump says next week, we dont know whether the market is going to be more exciting or not. Tracy i certainly feel like ive had enough excitement for one morning. We are going to leave it there. The founder and chairman of facts Global Energy. Thank you so much. Lets stick with the middle east markets and bring in our equities reporter philippe a petrenko. Acheco. Should we be ready for a reversal from the positive performance to a negative performance, considering the attacks in iraq . Tracy. R good morning, as you mentioned, there are plenty for investors in the region to digest as they get back to their trading desks today. Yes, we should brace for a much weaker session in general. We have seen the past two days, mostly showing a recovery in markets around here. The badple, after performance on sunday, and yesterday, dubai was up close to 2 . Abu dhabi was up 1 . Saudi was basically trading last. Ys in the two sessions sunday was the Immediate Reaction to all the news over the weekend. Days showed a much more of a balance according to the news we had coming mostly from the u. S. And iran. Now that we had this reaction in major assets such as oil, u. S. Futures showing an Immediate Reaction to the attacks to the , a loss inin iraq the u. S. Futures for example, considering what came from the u. S. , from trump and from iran, there should be a muted reaction open here, and it wouldnt be surprising to see for example dubai, which is a market that tends to react more directly to geopolitical headlines, to star in the negative territory. Tracy i wanted to ask you about egypt as well. That has been the hardest hit by these escalated tensions between the u. S. And iran. Delicateat in a more situation than others in the gulf . And egyptthat is true was actually off yesterday due to a local holiday, so they did not enjoy this recovery we just spoke about. Why is this happening there in a much more pronounced way than in the other markets . We spoke to a few sources and they mentioned for example that there could be outflows or not as many inflows to egyptian treasury, which could actually pressure the pound. The weaker pound could lead to higher inflation. We had Inflation Numbers out of egypt this week. They were higher than the previous amount and that is not good for overall the egyptian stocks. Then of course, with oil prices climbing, egypt is a importer of oil. That tends to have a negative reaction overall in the economy. Even though the egyptian economy has said that fuel prices will not increase until march. At the end of the day, this is a much more delicate scenario for egypt when you compare the markets here in the gulf, for emergingor other major markets. Tracy on an entirely different note, i want to ask about the situation with nmc health and for nagler, under fire from a short seller. What should we watch during european hours today . Reporter it would be interesting to watch, because yesterday late at european time after markets were closed, there was a statement basically saying that two of its shareholders, which are based here in the uae, are selling about 490 million in shares and another 75 million in other shares. Pretty much because those shareholders want to reduce the indebtedness that they have. This is all according to official statements. But its very important to remember, nmc is being directly targeted by several shortsellers, especially after a report about close to a month ago by muddy waters, pointing to several elements within the accounting of the company that basically led to a selloff with nmc, which is trading close to 30 lower than before this report. It should be a quite intense and quite interesting session for both stocks today. Felipe pacheco, our middle east equities and markets you. Ter, thank i should mention we are getting more breaking news regarding that boeing 737 reported to have crashed in iran. 180 passengers reported to be on board that plane heading to the ukraine. We are hearing a report from the Iranian State news agency that all the passengers and crew are dead. We will of course bring you more if we get it this morning. Lets turn now to a Corporate News stories. Toppled nissan boss carlos ghosn expected to hold a News Conference in beirut where hes promising to name the people he says engineered a coup to destroy him. Lets cross to the city now and our coanchor, yousef gamal eldin. What should we expect from the press conference . Lots of expectations going into it. Reporter absolutely. We come to you from a cold and rainy beirut, in high anticipation of the hours that are going to perhaps shed fresh light on the whole story. Remember that overnight we already got a bit of an indication about the scale, the intended scale of this conversation. Carlos ghosn issuing a statement to. His team. Basically he laid out that the nissan characterization that came through earlier in the week was a gross perversion of truth, that what is happening is a scapegoating of him to block the integration with renault, and the former business luminarias really setting the foundation here for a press conference scheduled later in the afternoon. Our understanding is from the many conversations we have had is they will use this as an opportunity to speak freely and potentially name names, not just at the corporate level, but potentially as well on a Government Official level. Nissan says they will take legal action. As far as they are concerned on a diplomatic level, the pressure is still very real on local authorities here in lebanon. Tracy lets talk about the Company Situation with renault and nissan. How are these Development Going to help the Company Actually attempt to fix those ties . It seems like they will just create more noise. It is certainly making things more difficult. Reporter the timing of this could not have been any worse. Renault has been trying to patch things up with nissan, next thing you know carlos ghosn is able to get out of japan, and now hes going to speak freely in the next few hours, potentially revealing more explosive information about what exactly happened. That is the last thing the automaker needs. Officials have been speaking to bloomberg and they are concerned about the wider corporate fallout that will distract from their ongoing efforts. It is crucial for them to firm up for this relationship, because they are now in a time where they are facing trade wars. They are also trying to handle an expensive shift through electric vehicles through self driving cars. That kind of mistrust and uncertainty has hit the stock valuations. You look at renaults seven year low, and for nissan, its even worse. We are at a 10 year low for that particular stock. Plenty for investors to digest in the momentum momentous day that lays ahead. Tracy plenty of challenges to go around. Yousef gamal eldin in beirut, thank you. Up next, samsung is up despite a Broader Market slump after posting better than expected profit in the fourth quarter. We will break down those results next. This is bloomberg. Is 1 47 in the afternoon in tokyo. You are looking at live pictures of a foggy imperial palace. Checking in on the japanese yen, treating at 108. 35 against the dollar. We are seeing a little bit of a bid, but of course we have had negative data from japan earlier this morning. Japanese wages out of the country disappointing yet again with cash or earnings flipping a fifth of a percentage from the year earlier. That means tightness from the labor market is not translating into higher salaries and inflation. Lets check in on the india markets now. Good to see you this morning. As always, good to see you and good afternoon to you. I dont have a chart today because i think its important to look at what the markets are doing compared to what they were doing at the start. It was down about 150 points one point in time which is an indication of what it would dupe your look at the nifty right now, 34 odd points. It has been a smart recovery. Forink everybody is waiting a statement from donald trump. Until then, i must say, that im a bit surprised that despite the crude thing moving up, the markets have not reacted too adversely. But they may be waiting for the event to happen. No major gyrations here. Back to you. Interestingitely an move. Thank you so much for the update. 2. 5 percent after posting better than expected operating profit in the fourth quarter. Our asia tech reporter. Run us through the latest results. Somewhat surprising given all the handwringing we have seen over chipmakers in recent months. Reporter it was a surprising result considering there were some conservative views on the chip recovery. After the results came out, some analysts assumed there might have been a gain, but we would not know the exact details until samsung reports the full earnings later this month. But i believe this result means the worst is over. There are increasing memory demands for mobile and clients. Samsung smartphone seems to have had a good quarter ranks to the premium flagship note 10 and galaxy fold that launched last year. That boosted the average selling price of the overall smartphone business. This trend is likely to continue this year as they are planning to launch more 5g and foldable mobile phones. Im looking at a chart of the Philadelphia Semiconductor index, up Something Like 18 . So far this year, what is the outlook for the memory chip market now . Had a goodamsung year in terms of Market Performance there is a stock price that rose more than 40 . This supports the idea that the chip markets would recover fully this year. So we are seeing some clear dram isat demands for rising and prices are stabilizing. Are more than expected while the spot prices are increasing in december. The recent issues with the power outage and the plant fire are also positive for the market, so sentiment for then. Investors are clearly counting andhe wider adoption of 5g Accounting Services expenses this year. Tracy our asia tech reporter walking us through the latest for samsung and the Wider Semiconductor space. Thank you. Getting more breaking news out of the oil market and abu dhabi specifically for the gulf Energy Intelligence forum is taking place. Oil minister says there is no risk to oil in the strait of hormuz and is not concerned about oil supply and demand, so further lines out from the oil market to digest this morning. Coming up, bloomberg size and scope. Todays number is 19 . Find out exactly what that is in a few ma few minutes. This is bloomberg. I tracy it is time now for bloomberg size and scope. Every day, we break down one superlative from our coverage and todays number is 19 . Here to explain what that is is our across asset editor joanne also injured joanna. Reporter thats right. 19 is the 2019 gain at the Wellington Fund from griffins citadel. They had a pretty decent year this time around, gaining more than 19 . Tracy so how does that actually compare with how other hedge funds affairs last year . Funds fared last year . Reporter they did pretty well. Hedge funds over all only gained about 9 pure this is with the s p 500 index adding 29 over the year. Ray dalios bridgewater did even worse. It actually suffered its first loss since 2000. We lost about. 5 . It lost about. 5 . Tracy what is the outlook for hedge funds Going Forward . Reporter it looks like they would have an interesting year if we see volatility increasing again, that might benefit them because sometimes they can do well, but it might mean theres more dispersion if there are some that do really well and some that do really poorly. Tracy our across asset editor er bringing you the latest size and scope. Lets get back to the situation in iran. We take you back to the footage earlier this morning when they claimed responsibility for firing a series of missiles at two u. S. Iraqi air bases response to the killing of its top general, qasem soleimani, by the Trump Administration last week. The question for investors is going to be how much of a response is this judged to be . Is it as the Iranian Foreign minister says, a proportional response . So far, the u. S. Reports no casualties from this military strike and donald trump is also tweeting this morning that all is well following that initial reaction. Lets take a look at how the markets have been trading against that news. Investors digesting a series of news flow coming out of the middle east this morning. We did see a relatively big reaction in u. S. Futures. U. S. Equity futures dropped Something Like 1. 7 , but they paired those losses, now trading at a little more than one third of a percent down. The asiapacific index a little more than two thirds of a percent down. Crude oil also spiking, shooting up above 31 a barrel for the brent benchmark, but that is coming down a touch, around 69 a barrel. The 10 year yields on the benchmark u. S. Treasury currently at 1. 7 eight. Demand for safe havens is out there, but investors seem to be slightly calmer than they were earlier this mor earlier this morning. Plenty more to come on bloomberg daybreak middle. St, the following is a paid program. The opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. This program is a paid presentation for dr. Hos circulation promoter. Many feel pain and they dont get the treatment they need. They dont have the time or the money or the insurance has run out