And bogota. We begin in hong kong. Police fired tear gas in the after Central District the shooting of a protester increased tension. Chief executive carrie lam warned of violence leading to a point of no return, and to restore calm. Still anyf there is Wishful Thinking that by escalating violence, the Hong Kong Government will yield to pressure to satisfy the socalled political demands, violence is not going to give us any solution to the problems hong kong is facing. Alix 20 me on the phone from hong kong is joining the on the phone from hong kong is caringly is karen leigh. Walk us through what happened over the last when he four hours. We heard carrie lam warning that violence isnt going to help their goals, signaling that she will not bow to demands after five months. Of the most violent days weve seen one of the most violent days since protests started. There were clashes between protesters and police, a protester shot by a live round. That triggered a day of violence with these violent images we havent really seen so far. We saw a man set on fire, although the details about who he is and how that happened remained a bit unclear. We saw clouds of tear gas hovering over the Central Business district. Business people and tourists fleeing at lunchtime. Really taking on a new dimension. Business is sending people home midday. Theres a real theory since hovering over the city theres a real eerie sense hovering over the city. Alix thank you so much for your great reporting. Now i want to turn to what could be the biggest ipo ever. Saudi aramco unveiled some key risks in its 658 page perspective. They range from terrorism to government interference, Climate Change to global currency exchange. Global financeur reporter. What were some of the standouts to you . Reporter i think what we learned from this perspective is the ipo is going to start on december 17, but curiously on november 17, but curiously missing is what stakes are going to be up for grabs for investors. They will be looking at some of the risk factors highlighted by aramco. Key is Climate Change and how that will affect investor sentiment. Obviously, saudi arabias position within opec means that production is dictated by the government, so it doesnt have much ability to pull those levers itself. Theres also risks around just a around those able to file suit against sovereign entities which are linked to governments they accuse of sponsoring terrorism. This is obviously a risk for aramco. As it mentioned as well, there is this peak oil concern as well. Aramco is alluding to the fact that we could see Peak Oil Demand coming as soon as in the next 15 to 20 years, not necessarily a bad thing for aramco. Aramco sees its position as one of the low cost producers, may be able to grab market share in that scenario, but a concern for investors looking at investing in aramco. Alix great insight. Thank you so much. Staying on aramco, it was all of the talk at one of the biggest annual Energy Events in the middle east. The ceo onpoke to the idea. Everybody knows saudi aramco. I think that is a good story. Is an additional partner in the market. I think they are progressing very well. Not just in technology, but we know them very well. I think that leads to a very successful story. Alix join me from abu dhabis cranny. Anny is manus walk us through whats happening on theund area ground. [indiscernible] but what this comes down to is whether you believe that they have the capacity to really scale up this business. Hes got the cost advantages, but there is a credibility issue from the analysts. As for wall street, they are suffering a massive credibility gap. Ive got people saying to me its not worth more than 1. 5 trillion, and on the other side of the offer, people on the 2. 6 trillion dollars. The issue is this is a company which is the most profitable in the world. Return on capital employed in this country is up in the double digits. The question is, what will the appetite be to take on those additional well, to quote unknowns andwn unknown knowns. Baker hughes ceo did walk past me. He said youve got the gig in rome, not me. Disappointed this morning. Alix [laughter] all right. He is in florence. Now we want to head to spain, where there is a political deadlock yet again. Srime minister Pedro Sanchez plan looks to have backfired. Maria tadeo joins us with more from madrid. It was a gamble to begin with, but what are we left with . Maria that is the question today in madrid. This was supposed to be the election that would end the deadlock, the fourth in four yea rs, but it is probably only made it worst. The socialists won the election come about lost seats, and have no past to a majority. There is speculation the country could be headed to a grand coalition with the traditional rival, but if you listen to the words of the party leaders, they say they want to continue to stay in the opposition. Overall, when you look at the state of spanish politics today, it is a mess. You are seeing a lot of political fragmentation, nationalist forces entering the congress, and a very frustrated country. Alix thank you very much. Bolivia,we end in where south americas longestserving president avoid the violence after election irregularities led to weeks of clashes and eventual intervention from the armed forces. Morales claims he was the victim of a two. Joining us on the phone of a coup. Joining us on the phone is bloombergs latin american editor. What happened . Reporter as you said, morales quit yesterday. This came after early yesterday monitoring of the election said that the vote had been marked by serious irregularities. Morales originally agreed to hold a new vote, until the armed forces made him quit. Theres been violent clashes that continued last night. Saidlas said morales hed been the victim of a coup. He was an ally of cuba and the venezuelan government of nicolas maduro. Some other governments have said this, including mexico. It is unclear what comes next thebolivia best because Political Violence has been serious in recent weeks. There have been clashes between morales supporters and the opposition. They just want to bring peace in the short term. , thank youew bristow very much. One other story i am checking out this morning, alibabas singles day promotion setting a record, and there are still a few hours before it ends. Chinas Biggest Company broke through last years mark of 37 billion about 2 3 of the way through the day. It has really become an indicator the Chinese Consumer health and one day of shopping within china, basically worldwide, beats black friday, thanksgiving, all the way through cyber monday in the u. S. We are still about 31 billion. That number could ratchet up by the end of the day. Coming up, much more of you morning trade analysis on the markets in todays first take. This is bloomberg. Happy monday. Alix time for the bloomberg first take. We are to give you the news. You get betrayed and analysis of the markets. Joining us is Vincent Cignarella , voice of the bloomberg audio squawk, Damian Sassower our, Bloomberg Intelligence chief emergingmarket credits registered, and michael mckee, bloomberg chief policy correspondent. Do you buy into value . Do you buy into cyclicals . Do you buy into europe . Vincent you buy into the dollar, actually. We keep talking about how em should be bid, how latin america should be bid, and everyone who sells the dollar ins up with a bloody nose. You were talking about what is going on in bolivia, and spain, and hong kong. All of this consternation around the planet, and despite trump, we need to get into u. S. Assets, at least for now, until we settle on where things are Going Forward. Damian except for one, the china you on the china yuan. Its the only one that has appreciated against the dollar. Last nights data was way lower than you wouldve expected, even for the seasonal downturn, but if you just take last weeks you probably see more cuts in the triple prime rate through the end of the year. They are doing anything they can to stimulate their economy, but andyuan through seven 26. 90, i dont see it, either. Vincent nothing they do for Monetary Policy has ever worked. Nothing stimulates the economy. Michael it is a ground up economy, from the provinces up. Cutting the lending rate with the shadow Banking System in the way they finance things through lamb sales doesnt help all that much through land sales doesnt help all that much. But theyve tried to clamp down somewhat on debt accumulation, debt accumulation, so they are not stipulating the way they have in the past. China seems to be getting through all this, but the question is whether it creates a growth scare for the markets. They start worrying about china, and then worrying about other markets, and then we start to cut rates again. Damian if you just look at some of the ip data which just came india, we kind of expected this. To see the shift from growth to value, you need to see manufacturing bottom, and we are not seeing that globally. Alix on friday, we thought the whole world vincent on friday, vincent on friday, we thought the whole worldwide recession thing was over. [laughter] cant reallyy you do anything. Trump is speaking tomorrow. I dont think hes going to sit in front of the Economic Club and say the world is going to hell and a handbasket. Hes going to say once again china wants to make a deal. I expect it to be a little more upbeat than over the weekend. He may close with we dont have to do the deal if we dont want to, talk about it both ways. Thehow, navarro came out of closet. We hadnt heard from him in a while. When you dont hear from navarro, you feel good about the economy and trade. When he comes out, you feel the opposite. I was kind of wondering why he was even allowed to speak, to be perfectly honest. Things were going so fine, and that he comes out and pours water on everything. We will see whether or not trump can turn around tomorrow in his speech, and powell on wednesday. Michael not just powell, but wednesday is also the european car tariff day. To see how the president addresses that. Alix juncker is a fully informed man. He says there are no tariffs. Michael thats going to be an interesting question to see. We also get cpi on wednesday, so big day. U. S. Consumer prices, the president tomorrow probably giving us a hint where he goes with the car tariffs, as well as china, and then the Federal Reserve chairman. Theres 10 or 12 fed people speaking this week, and nobody is going to care about any of them after powells Opening Statement because he will probably say we are on hold. Alix a headline breaking here on brexit. Nigel farage says he wont contest 317 tory seats in the u. K. Election, which basically means the brexit party is not going to fight the tories. The cable rate is up by 0. 8 . We talk about the political whipsaw and it comes to brexit, but the idea is, what is and what is not priced in . When you have a head like a headline like this, and you have upside to cable . Vincent i think what is priced in a little too aggressively is a soft brexit, that the conservative party will win, will negotiate an exit with europe. What is not priced in is what takes place next. Theres a year before they physically leave the union, and theres a lot of issues that need to be a debated, a lot of trade that needs to be negotiated. That is going to weigh on the u. S. Economy on the u. K. Economy. That is not priced in. It is likely to be a bank of eglin rate cut if the economy slows down. This is all negative for sterling, so all of the negative i am seeing all of the upside i am seeing here, i would fade this. I think we see cable much in lower. Michael we will see cable up and down as we head towards the elections. This was never a political party. It was a oneman movement with an idea behind it. They didnt ever have a full slate of candidates coming to the ballot. It is really a question of does labour and the liberal democrats decide to hold their nose and splitogether, or do they and leave the conservatives with a narrow majority . The latest from the betting halls is that the conservatives win a narrow majority. We can talk about this as we get closer, but if you look at the polls for brexit, the polls were generally accurate. It was the bettors who were wrong, the interpretation of the betting that was wrong. It will be interesting to see how markets react to headlines about what they are doing. Alix it does take a second referendum off the table, but also brings us to how cable is an emerging market currency, basically, because it is hard to get a good read on it. What you do with emerging markets when you have all of this with the action, and looking at a dollar bull to my left . Damian the fact of the matter is, the stimulus, we have get to see evidence it has taken it out of a funk. You cant even look at the cpi because it is all pork prices. For me it is about the total social financing data. They cannot seem to stimulate their economy. If you look through the end of this week, weve got mexico, egypt, more Central Bank Stimulus coming, and this whole england, spain, bolivia, hong kong. Its not going to be like last year. Theres not election overhang in places like argentina and others, so that might be a relatively good thing for currency volatility. Vincent the one place it is not going to go away is brazil. Damian and developed market europe. Michael also in brazil this week, there are Countries Holding a summit. The idea is that bolsonaro is going to try to convince the russians and chinese to stop supporting maduro in venezuela, which would be a major developed if that were to happen, and have impacts on stability throughout latin america. That is something to keep an eye on. Alix will that actually happen . Michael it is hard to know at this point. What is the benefit to the russians and the chinese . If bolsonaro is somewhat synthetic to them and makes friends, maybe he can make the kind of progress that donald hasnt been able to make. Vincent that is a good point. It is beneficial for russia and china to see the maduro regime venezuela become a capitalist market they can take advantage of because it is wide open. Alix this is what we do on first take. We take you all the way, and end up in brazil, china. [laughter] alix thank you very much. Any charts we use throughout the next two hours, if you go to gtv on the terminal, you can browse them, check them out, and save them. Gtv. This is bloomberg. Reporter this is bloomberg daybreak. Its a milestone for tesla. Elon musks company has unveiled its first cars built in china. The first model three sedans came in blue and had the tesla name in chinese characters. They were built in the new factory in shanghai, starting price about 50,000. Chinas government is confident brazil will choose huawei to build its five tmobile network. Its 5g mobile network. Bolsonaro and xi jinping meet again this week in brasilia. The u. S. Has warned countries against relying on huawei for its 5g networks, saying it would make it easier for beijing to spy. Bloomberg has learned that xerox is willing to give hp four weeks for the companies to examine each others books. The cash and stock offer was worth 27 billion dollars before news broke on the potential deal. That is your Bloomberg Business flash. Alix thanks so much. Heres another story that caught my eye. A starling figure from the Federal Reserve about the wealth divide in america. The richest 1 of people in the u. S. Now hold almost as much wealth as the middle and upper classes combined, and this really shows, the white line if the sheriff wealth held by that 1 white line of the share of wealth held by that 1 , keeps going up. The others keep going down. They addressed this on 60 minutes yesterday. I think the wealthy are getting wealthier too much in many ways, so middleclass incomes have been flat for 15 years or so, and that is not particularly good in america. Alix in theory, he said he and his rich buddies what to do some thing about it. According to the latest irs data, you have to make at least 500,000 a year to be part of that 1 . Coming up on the program, the defensive strategy unwinding as investors rush to catch up with the equity rally. We talked to Christopher Zook, caz investments cio next. In the market, the bond markets are closed for today. The bond market in europe a little bit calm. Equity futures off by 0. 4 . 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. Alix this is bloomberg daybreak. Happy monday, everybody. Friday,d at a record on record for tech, record for industrials. Now we are coming off of that. European equities down by about 0. 3 . In other asset classes, im watching what is happening with the bond market in europe. The bond market is closed in the u. S. Spanish elections, but where you show peripheral risk tends to be in italy. The selloff continues there, yields off by about five basis points. As equities roll overcome a part of that could be a supply issue. Oman says they do not see deeper cuts in the next opec meeting. Investors should keep buying cyclical stocks because the latest rally is just the start of the defensive unwind, according to jp morgan strategists. The larger rotation i real Money Managers will likely happen only after the phase one trade deal is signed. The rotation should continue during the seasonal q1 value and small caps inflows. Joining the from houston is Christopher Zook, caz investments cio. Do you agree cio. Do you agree . Christopher good morning. Value is very cheap relative to growth, so we have seen some flows coming. That could continue for many different reasons, trade being one of them, so i would agree with the statement. Alix how much of that to give you is going to be real buying versus chasing performance to the end of the year . Credit suisse says hedge funds have to cover their