>> our top stories this morning. the coronavirus spreads further. there are more outbreaks than there were over the sars epidemic in 2003. hong kong stocks plunge as they come back online following the lunar new year. we have the latest. president trump announces his middle east plan for peace. the palestinians have rejected the proposal hear our interview with trump advisor jared kushner at this hour. apple beat on its latest earnings. surging sales of wearable devices.

this is bloomberg day break middle east. coming to you from dubai. good morning. let's get straight to the market action because you have a resounding end that is being brought to the u.s. stock story . you had the s&p 5 loon rising. the most since october. positive data showing u.s. consumers are in good shape. the coronavirus outbreak is going to be contained without too much damage. s&p futures .3% higher. look out for facebook, boeing and tesla hours to come out in coming hours. what a rebound it has been. n brent crude. this is partially as well because the initial report from the american petroleum

institute is suggesting a draw down in stockpiles in the u.s. which would be the biggest drop . t's gets too market action from juliette in singapore. hong kong trading again after the lunar new year but not looking pretty. a lot of catching up to do. juliette: yes, indeed . a lot of catching up. we have seen quite significant selling. dropping the most since mid december today when it resumed trade. you are starting to see a little bit of buying and reprieve in other asian markets and an uptick in u.s. future taos. you can see on the top part of my chart, that is the big drop we have been seeing. the china index also down by 1.4%. mainland chinese's markets won't reopen again until monday. they were supposed to come back

online on friday. that has been extended to stem the fallout of this coronavirus as the death death toll has climbed to 132. one stock on in hong kong track higher. that is tencent. >> let's get you in conversation as well. the indian markets just opened about 15 minutes ago. what is the feedback then from traders and investors? >> well, we were expecting more volatility considering the kind of pressure that we have seen over the past couple of days with the rise in the volatility index near a three-month high but that has come off. possibly a lot of shots being taken over the previous couple f days has been covered. for now, the -- advancing .6%. aided by banks. the rupee continues to be stable. 171.2. we continue to watch whether we

will see the strength stay. considering we have heading into a volatile period. >> thank you very much for that. let's check in on the first word headlines from around the world. a magnitude 7.7 earthquake struck south of cuba. evacuation warnings across the caribbean. the quake struck just after 2:00 p.m. eastern between cuba and jamaica. over the last 100 years, only five have occurred within 400 kilometers of today's epicenter. president trump has announced a plan for middle east peace he said provides a win-win solution to make israel and the whole region safer. he skirted complaints the palestinians rejected the proposal and didn't take part in drafting the actual plan.

it leaves jerusalem as israel's undivide capital but has been met with dissent from palestinian leaders. president trump: if you choose the path to peace, america and other countries will be there to help you in so many different ways. and we will be there every step of the way. >> european central banks say six out of 109 bankses evaluated last year had a level of financial strength below what it wanted to see for 2020. four of the banks remedied the shortfall at the end of december while the other two have been told to take action. the e.c.b. requires banks to hold a minimum capital amount and an additional nonbinding buffer as well. nike says its online store sold out of kobe bryant apparel in the two days after his death

contradicting a report the company pulled merchandise to thwart profiteers. nike declined to comment on the volume or the revenue. espn reported that nike removed all products to stop stockpiling from fans who would sell it later on secondary markets. the number of confirmed cases of coronavirus soaring. our china correspondent joins us from beijing. get us to speed with what's happening this very minute. >> the numbers continue to rise now. the official number of confirmed cases is nearly 6,000 ith the death rising past 132. it is in china, every province, asia, the united states, germany. the u.s. and u.k. are telling

residentses to avoid all nonessential trips to china. hong kong closing its boarders o mainland citizens. companies are shutting down their stores and evacuating workers from the infected area. you can feel it in beijing where people are choosing to stay at home. a lot of the festivities have been canceled. in terms of where the center of the outbreak is, you have essentially 50 million people that are on lockdown and they are dealing with the shortage of doctors, of medical surprise. you are seeing the government respond to this in terms of sending thousands of medical workers there. they are building two hospitals at record speed to contain this. this is becoming the priority of the chinese government. >> what that been the impact on the local economy and a little bit beyond that in the

surrounding area so far? >> wuhan of course has been hit the hardest. the center of the outbreak. a city of some 11 million people. the economy makes up about 1.6% of national g.d.p. this is auto and steel manufacturing. of course china has since the , it has become a part of the global economy and the local economy. you will see economies really be at risk. the composition of tourism in their overall g.d.p. we're seeing multinational companies get hit in china. starbucks is closing about 2,000 stores in mainland china. shanghai disneyland is shutting down. the s&p global saying spending

on transport entertainment, the impact could fall by 1.2%. >> thank you for that. let's bring in michael mccarthy from c & c markets. he joins us from our studio in sydney. let's get straight to it then. you have a swragse situation where the crux of the matter is with whether or not this causes sustained economic damage and distrouppings the chinese, the chinese man for 2020 and beyond. i look at the commodities markets and signal that i'm getting here at this very minute is that growth concerns are getting brushed aside. you see similar signs in equities and in fx. the market appears to be trying to move on from this a little bit. am i reading this directly and is it too soon to do that? >> nobody can say at this

stage. we simply don't know the answer to that. given that there was still extensive travel within china over the lunar new year, with an incubation period, it will be 10 days before we know what the personal knowledge impacts are. we can't say whether we're right roir wrong. i'm watching the commodity markets very closely. we're still seeing pressure on copper, nickel and aluminum. because at this stage, the fundamentals are in a state of flux, we turn to organic technical indicators because what we're looking at is crowd ehavior. it appears to be retracing at the moment. the key question is it the correction of the down move or the start of a new uptick. if oil continues to rise we'll be watching 55 in west texas very closely. that is 38% retracement of the

tumbling oil. that will be the clue. it will suggest what we have seen as a short-term correction. >> what i struggle with are the comparisons to the 2003 sars epidemic and the reality is china 2003 is not china in 2020. the world is a very different place. where can you find reliable indicators that might give you a bit of a sign how this could play out? >> i don't think we can. as we put it this morning , when you're saying this is what happened last time and you're looking at a set of one, you really don't have much to go on. i don't think it is a valid comparison. it is a very different world. the reaction thighs authorities this time has been very different. it is clear that authorities learned lessons from the sars incident. that means once again it is unlikely to provide us with a

guide to how this will unfold. >> what are you telling clients at the moment in terms of positioning specifically giving the lingering risk aversion despite the green shoots that we have? >> we are doubting the extremes of sentiment and so when the australian market hit a high alongside the u.s. markets and other markets across the region it was time to take the profits no matter what the cause and pullback would be. it is now in a very good position to wait and watch to see what unfolds here and from their point of view that a pullback could be useful. some clients have position themselves very well. the other key factor is the pickup in volatility. we're not seeing that flow through market. isometric exposures are very valuable. >> in the event that we have a drawn out scenario of an outbreak that is not contained as quickly as maybe the market anticipates at the moment,

where does that leave policy makers and i'm thinking specifically along the lines of central bankers. they have blown a lot of their ammunition here. they would not be able to help much. >> absolutely. the debate that is going on around the globe, especially in europe about the effectiveness of unconventional monetary policy is very important. the reality as you say, they are out of conventional tools wand a lot of people point ought unconventional policy is -- for markets in that it indicates an emergency situation means that it is unlikely i think central banks will move into that territory and instead if we do see a real impact on global growth from this potential epidemic the response will need to be fiscal rather than monetary. >> and too wrap things up then in terms of defensive positioning, are you adding to gold or bitcoin? where are you finding your crisis, crisis-proof positions?

>> gold has been very interesting. we have seen a pullback from the highs, close to 1580. a break at that level would suggest we're up, up and away. while that holds, it is harder to move into cold. crypto currency has been interesting. them moveing with safe haven assets. that unwound over the last week or so. crypto came under pressure. we could see damage across all asset klases if this continues all asset it -- classes if it continues to unfold as it does. >> the corona virus will continue to be our focus. we have an interview at 11:30 dubai time. plenty more on the program if the interim. this is bloomberg. ♪ ♪

>> additional data shows the extent of the economic disruption from january 24-28. in this period the china visitor arrivals have fallen 79.2% on year. it comes on the back over the decision by china to stop issuing travel permits for mainland citizens to go to macau. it is very much front and center of trader radar as we speak. that is going to be important to watch in the coming hours. let's stay with corporate news. apple shares have risen in after market trading. quality a rebound on iphone demand and a surging sale of wearable device. a comeback from a year ago

where they missed their own target. >> our record performance was fueled by iphone. december quarter revenue was up 8% year over year and by our fifth consecutive quarter of double digit growth outside of iphone including a new all time record for services and a blowout record for wearables. u.s. consumer confidence grew more than expected. that adds to signs that americans are poised to keep supporting a record long expansion. let's get other views on this. mike mccarthy is still with us from sydney. how is this going to get factored into what we may hear from the fed in the coming hours? >> well, it is a very tough call. i'm sure we'll hear from the fed. it will express concern about the potential impact. i think it will stress we're

looking at a widened sea of price. the the same and the positioning of the -- will take the focus. at this stage, central banks are on alert but not ready to act on the coronavirus. >> michael, what do you do with u.s. equities? apple clearly surprising analysts again and again and tesla has surprised analysts again and again. it is almost like analysts need a fresh pace to restart some of the coverage. is the evaluation too rich for an entry point here? apple bets and those who have been calling for the share market to collapse the last five years. it is the fifth year in a row they have done so. it is a constant comparison to the and the black phone hasn't

played out. apple has been able to stay ahead and keep selling to consumer. while they continue to deliver, i think it is a tough call to stand in front of it. valuating looks strict. it came from a very low level. the rally from 11 times earnings to current levels. it played catch up. the big question is what is the forecast for growth for apple? if you think it is ok. valuations are also ok. >> let's talk about the question of the day and flesh that out a bit, michael. the markets is posting the argument around what happens to assets if central banks shift more neutral. want to keep this on u.s. assets in particular. if the fed strikes a more neutral tone, what are the

consequences going to be? >> i think they would have to be a moderation over the enthusiasm we have seen for u.s. in particular. at the moment market pricing reflects a further rate cut from the fed in june and if we see a shift in their stance at any of the upcoming meetings that would have to be priced in to equities. given the support the fed has provided to asset prices and the share market in particular, i suspect that would mean a moderation and flush in u.s. equities despite a moderate asset for the u.s. economy, it could reset for u.s. investors. >> maybe the focus is going to be as to how long the fed is going to continue to support the repo market. is that going to be the key? the key in the lock? >> the liquidity issue is one of the case. it is one of the few levers the fed can adjust easily. pulling back on the increase in

liquidity or withdrawing liquidity might be a key factor for the year despite focus on the interest rate question. >> it has been great catching up. thank you for stopping by. that is michael mccarthy. plenty more ahead then. this is bloomberg.

>> more leadership changes in the middle east. this time in qatar where the leader has -- as the country's new prime minister. let's gets more details on this. tell us a bit more about the new guy. >> good morning. he is not just the new prime minister. he is also the new interior minister and while this change was sudden, it wasn't entirely unexpected.

there had been some rumors recently that the former prime nister had maybe wanted to resign. he had been in government for quite sometime, not just as really the only prime minister who came into office in 2013 but also as a minister of state under his father. he is not the flashiest choice here. the energy minister, the foreign minister, the finance minister are all a bit more public figures than he is but he has held an incredibly important role in the government since 2014 because he has been chief of the -- the fice that sits between the emirate and everyone else deciding what they do and who he interact with. certainly someone who has had his ear for a long time and there is two things that

analysts are going to be watching for the new prime minister's views on. first off is his willingness to talk to saudi arabia and the u.a.e. and what he would be willing to accept to tend 2 1/2 year g.c.c. crisis. the second is iran. they are in a precarious position. every time the u.s. and iran tensions flare. the prime minister has a role in that. >> what kind of reaction have we seen -- might we see? just about in line with emerging markets. ette wasn't a major move. frankly this is someone who comes from very close to the emirate. it is not a wild choice. i don't know that we're going to see a huge reaction here. >> thank you for that.

we want to circle back to the market action. we have prices disruption. to the upscythe side, with the exception of the hang seng coming back online after the holiday down 2.36%. this is this many ways catching up. we were as low as 2.5%. u.s. equity futures picking up lake-effect. a senior trump administration official coming out saying the hite house did not call an airline and has not asked for a suspension of flight between u.s. and china. that contradicts an earlier report. you see a little risk on back to some of the earlier trade. brent crude up 1.3%. this is not a risk-on trade. part of it has been the speculation that we did get a major drawdown in u.s. crude inventory. we'll get a confirmation wednesday from the united states. coming up next on the program,

we'll talk with jared kushner. he is confident the president's newly released plan for peace will find support in the region. we'll hear from him next. this is bloomberg. ♪

yousef: it is 11:30 in the evening in new york. a live shot of midtown. you may be looking through apple earnings or you may yousef: be preparing for earnings from tesla later on in the day. either way, this is where the bloomberg dollar index is, currently right in the middle. highe near a seven-week with the fed review and focus. the policy decision that is due in the coming period. in terms of the risk-on rally, you have iron ore leading the charge in the commodities space, up as much as 2.6% as we speak. that's check in on the first word headlines for you around the world.

some of the key stories. chinese state media said 25 more people have died in the province , bringing the nationwide death toll to at least 132. hong kong is restricting travel from china. carrie lam has weighed in. she says air, rail, road, and see links to the mainland will be halted as health authorities try to contain the effects. the u.s. is selling travelers to avoid all nonessential trips to china. starbucks closed more than half of its mainland china locations because of the coronavirus outbreak. a shadow over what was an upbeat earnings report. sales rose in the fiscal first quarter through december. the average estimate, 4.6%. president trump's defense lawyers have wrapped up their arguments in the senate, insisting his actions in ukraine

do not warrant removal from office. white house counsel said his team has made its case, adding that the articles of impeachment fall far short of any constitutional standard. democrats are continuing to push for the former national security advisor, john bolton, to be called to testify. apple shares have risen in aftermarket trading after its revenue rebounded on iphone demand, surging sales of wearable devices. the results are remarkable comeback from a year ago when the most valuable technology company missed its own target. those were your first word headlines. let's check in on some of the market action with juliette saly in singapore. the msci we are seeing asia-pacific index pretty flat at the moment as you see a rebound coming through in a number of asian markets who have been heavily sold off earlier this week, the likes of korea, which fell significant yield -- significantly yesterday.

the hang seng index is lacking on the regional index as a whole as we have seen hong kong trade for the first time since the lunar new year break so playing a bit of a catch up to the selloff. also of course, casino players are under pressure as well as the terrorism stocks. the hang seng index on a lunch break, down by 2.4% but also noting the day. you are seeing a turnaround in some of these other markets. india is looking quite good after two sessions of losses. gains in thailand. in australia, up .6%. we have been watching a little bit of upward movement coming through in the offshore yuan as well. you can see the forwards up by around .2% for the china renminbi. the thai baht now back as one of asia's worst performers, down .25%, but there are signs that that currency has been hit a little bit too hard. technical indicators showing the weakness over the last week has

been a little bit excessive. the terrorism authority of thailand expecting a number of chinese visitors to fall by 2 million due to the coronavirus. yousef: you have had a chance to look at this profit warning that came out in the philippines. what stood out to you? yousef: -- juliette: we heard from the philippines artist ajit carrier. you also had of course the bushfires in australia, which impacted a lot of australian tourists coming to the philippines. the coronavirus impacting a lot of tourists in general. that is weighing on them in the manila session. watching some of the other players that have been hit by this coronavirus as well. it is the world's largest maker of gloves. it has been up some 26% since the outbreak, but a little bit of selling coming through in kuala lumpur, down by 6.5%. year ons sales surging year due to the virus. i mentioned weakness in the

casino players in hong kong. that's also on the back of the fact that we saw a big drop in the number of people heading to macau over the lunar new year. down 79.2% year on year from january 24 to january 28. yousef. yousef: thank you very much for that. juliette saly. let's get back to this part of the world. president trump has announced a plan for middle east peace that he says provides a win-win solution to make israel and the whole region safer. palestinians have already rejected the proposal. the proposal offers a way to a two state solution in theory that leaves jerusalem as israel's undivided capital but has been met with strong opposition from palestinian leaders. pres. trump: i want you to know that if you choose the path to peace, america and many other countries, we will be there. we will be there to help you in so many different ways, and we will be there every step of

the way. yousef: let's get more on this with our government reporter. has beennal reaction very much skeptical. >> the palestinians denounced the plan strongly. it was dead on arrival to them. they do not see how this plan does anything for the palestinians, and they said it strongly favors israel. the palestinian president denounced the plan, saying it is a conspiracy deal. let's listen to what he had to say. duo, trumpo tell the and netanyahu, that jerusalem is not for sale, and all our rights are not for sale, not for bargaining, and your plot will not pass. zainab: of course, president abbas is referring to the $50 billion promise that the u.s. and international donors are

promising to provide for the palestinians to help them revive their economy. this plan is supposedly going to create one million jobs and provide employment for thousands of palestinians, doubling the economy in palestine, but so far, the reaction in the region has been seen mostly as a deal. it gives the israelis everything they want and gives the palestinians the bare minimum. yousef: we are going to come back to this. zainab fattah, thank you for that. let's stay with that and talk about jared kushner. the son-in-law and senior advisor to president trump. he was part of the policy discussion. >> president trump has built the capital with israel. he has shown the israeli people he cares about their security and it was only because president trump has been such a good partner and they trust him that he has been able to get israel to make historic compromises. this creates a framework for the

palestinian leadership. i do not know if they will seize it or not. if they want to have a stake in all the things they have spoken about for years that they aspire for, it is time to come to the table. if you have issues, sit at the table, negotiate. if you do not like where the line is drawn, move the line. there is a lot of flexibility that can be had if they come to the table. >> a four-year implementation period for this plan? >> the palestinian people have been suffering for a long time, so the leadership calling for days of rage and doing all the things that they do, that's not helping their people live a better life. the palestinian leadership claims to want statehood but in order to have statehood, you have to show you are capable of statehood. there's not too many states that when they do not get what they want, they call for days of rage. if they want to do diplomacy, they get in a room, talk about their differences, and then find solutions. the palestinian leadership has had billions of dollars of aid.

a lot of the leaders are rich, their friends are rich, their families are rich, and the money has not trickled down to the people. over time, they created these illogical constructs hoping that they would never solve it, to keep it in place. we have made them the most real offer they will ever have and we will finally smoke out whether they are serious about peace or they like profiting from the status quo. >> is the united states trying to build a relation with his successor? >> we have a lot of relationships to the palestinian committee. >> in the sense that it would. appear that there is a new generation that potentially could take leadership? >> the policy of the administration is to deal with the leader who is the elected leader. i would not exactly say that he is in a position where it's a vibrant democracy in any way, shape, or form. there's no freedom of press. there's not even property rights or a fair judiciary. it is a complicated place.

and then to say that they are ready for statehood is a big leap. what we have done in this document is we have outlined the criteria that we think are necessary in order for there to be a date. wheree an economic plan $50 billion can be invested along with them making reforms necessary to calving property rights, and we have given them a pathway that they can take it if they want to become a viable state. the opportunity is available for them. by putting this idea out, this will show the rest of the world that israel -- it gets israel to make compromises that they have never made before, and in addition, it outlines something for all the palestinian people who may be have lost hope over the years by being lied to and seeing their leadership fail time and time again, to show that if -- there is a pathway to peace and they have a willing partner to do so.

>> i underlined this when i was in the white house covering the remarks by president trump and he mentioned boris johnson. he said he got a phone call from boris about this plan. it would appear that -- is the u.k. on board with this? who are some of the u.s. allies on board with this plan? > we kept this very quiet and that's been one of the token things. a lot of people are shocked that we are able to have a map, have such a detailed plan. the fact that we have had no leaks is great. with that being said, there are partners that we trust. we have had a lot of good discussions. i was dealing with boris johnson when he was the foreign minister. he had a great enthusiasm and understanding for this. a lot of people on his team, they have given us a lot of great feedback to make this better and i am hopeful that they will put out supportive statements to encourage both parties to negotiate on this basis. we have a lot of other countries in europe and the middle east who we have been talking with and a lot of the concepts in this plan are concepts that people have been pushing for for a very long time.

>> what about the jordanians? >> i think the jordanians would greatly benefit from seeing this plan through. right now, their street gets riled up by all the extremists who are trying to take advantage of instability, and i think that their economy would greatly benefit from the stability and infusion of capital that would come from this and create a ton of jobs in jordan. i will say this. if you look at this conflict, you have two separate conflicts that have been completed together. you have a conflict between the israelis and palestinians, which is a territorial dispute. you have to figure out how you draw the line and that's a fairly arbitrary exercise because you need to figure out where you draw the line. the next dispute is between israel and the islamic world and that is something based on that. one thing we have also accomplished today is israel is informing the role of the king muslim holyth the sites. in addition to that, we have made it that any muslim

throughout the world who wants to come and pray at the mosque and can do so in a peaceful manner. inple in indonesia, people saudi arabia, people in dubai, if they want to come and pray at the mosque, there's no flights, no ability for them to do so, and israel is to welcome them. trump'sered president first foreign trip to saudi arabia, and we flew from saudi arabia to israel. itselfrabia has proven to be an incredibly important ally in the middle east for the united states regardless of who is in the white house. i am curious what role you foresee playing here. they have been very strong supporters of the palestinian cause and the palestinian people for a very long time. they supported them financially. holyare a custodian of the

sites. they have been a big leader throughout the muslim world to support the palestinian people. they pushed us very hard to say it is critical that there is a state for the palestinian people. they understand security threats. they have their own threats from the -- from iran. in gaza, they have a rogue terror group firing rockets into the country. the saudi's don't have any issue with the israelis. there is no israelis who have killed any saudi's. they have a common enemy. the palestinian issue is a big issue with the leadership in saudi arabia, and they have been very, very supportive of trying to create a palestinian state and also making sure the mosque is safeguarded and that muslims have the ability to go to the mosque. see it is inthey saudi arabia's interest to have this conflict ended because it is held onto by a lot of the radicals.

saudi is fighting against extremism. the existence of this conflict is distorted by extremists to write i -- radicalize people. is that impacted at all in these negotiations? >> as always distractions and governments with all different things. we focus on what are america's interests, what are the objectives we are trying to accomplish, and then we stay focused on what are the actions and relationships necessary in order to do that? view, weur point of know what america's priorities are and we work hard every day to try and bring them forward and again, there are things, different topics or subjects that come up every day, but president trump was elected by the people to make our economy strong and make our country safe , and he's going to work through any issues that come up in order to accomplish it. understand.

obviously, in the foreign policy circles why this is so important. the folks outside of the beltway, outside of the washington bubble, why should they care about peace in the middle east? why is that important for americans? >> asked the question president trump asked in the beginning. what he has done very strategically over the last couple of years is he's increased america's energy production tremendously so the historic reliance on the middle east for america had to do with it being an oil and gas supply to america. america is energy independence thanks to president trump's policies which give a lot of strategic flexibility and prosperity. some of the plans people are proposing to eliminate fossil fuels would be very detrimental to america, especially if we stop the production in america, but that's a big opportunity. america's big interest in the middle east right now is to stop extremism. 9/11 happened because you had radicals who wanted to kill

americans and we had this all over the world. the big fight we have been doing is how do we win the long-term ideological battle against extremism? you will never have a stable at least -- middle east that will allow people to focus on how they improve their lives if you don't resolve this issue. what we see continuously in the 1920's, they had a cleric who was the custodian of the mosque and what he would do is he would always use it to saber rattle, to say the mosque is in trouble, in danger, and he would use it to stoke anti-semitism and all different issues. if we can established that jerusalem is an open city, anyone from the world, if you are christian, muslim, jew, if you want to come to roussell him and pray, you are welcome. you can come safely. i think that will be the greatest thing for humanity. it will stop a lot of the radicalize is from doing what they do. fromf: breaking lines

saudi basic industries. the largest listed company in the middle east, so let's break those figures down for you. the fiscal year profit line, which is the red headline, 5.6 3 billion saudi -- on the profit. coming in at 139 point seven 4 billion saudi riyals. 139.74 billion saudi riyals. let see if we can get additional detail. the last 12 months, material stock has been to the downside to the tune of 27.6%. analysts divided on the stock. potential limited as far as coverage goes. about 12.6%. it has been dealing with a period of transition with the aramco transaction and then also with general upheaval and

uncertainty in the industry. pricing pressure in petrochemicals was likely to be a factor as well but at the moment, we are waiting for additional color from saudi basic industries that came in with a significant mists on the fiscal year profit line. $5.63 billion was what came through, what the market was looking for. saudi riyals. middle east stocks were mixed. dubai and abu dhabi bu cked the wider concerns. bloomberg'sre with -- what are some of the technical signals telling us? >> it fell below its 50 day moving average for the first time in july. inre was a minor miss december where it fell below that technical indicator but it was very minor. it was there less than a day and then it flipped back up. in july, when it happened

before, the index went on to lose about 15% of its index points in less than three months, so that should be a concern for investors in saudi stocks. two things we are looking at in the saudi market, and those are valuations and earnings. valuations are higher -- the higher end of the historic range. earnings are coming and not very appealing. .e just saw 5.6% estimated 8.6%. that is pretty low and that compares to about 21 billion last year. we will have to look more into the picture and come back to update you. saying lowerare average selling prices in addition to recording a 2.8 billion saudi real impairment provision. the share amounted to 1.3 billion, directly from the statement. what about some of the other likely movers or names that are

going to be going to investors as we get to the open? >> in saudi arabia this week, we are looking at two's. 2.7% -- up 1.2% for the year, but the expected earnings are supposed to be 2.7 billion for the full year 2019, while the other is the lowest bank trading in saudi arabia, down -10% for the full year, so it's a huge name to be looking at in saudi arabia as the market opens, and for dubai, we are looking at cid, which finished its acquisition of another bank earlier this month so we are looking at how financials are going to be when it comes to it. yousef: thank you very much for that. the equities round up. coming up on the program, we will stay with some of the news. tesla reports earnings later on. will that be able to repeat last quarters bumper performance? we will take a closer look, next.

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yousef: 3:53 in sydney. a shot of the opera house area. 0.6 770. we are up about .1%. a little bit of risk on definitely coming back into some of these traits, but also, we had some important cpi figures out for australia. the fourth quarter getting trimmed. you have cpi rising 1.6% year on year, beating estimates for 1.5% gain. that pretty much dampened the case for further policy easing by the reserve bank of australia. let's talk about tesla because the company reports earnings later. the electric carmakers shares have been on an unprecedented dissent since elon musk crammed his release with positive updates. >> revisions, revisions, revisions. analysts spent the first part of 2020 revising models and raising

targets when it comes to tesla after the companies shares surged above $500 for the first time following a record 112,000 vehicle deliveries last quarter. add that to tesla's new shanghai gigafactory where deliveries are rolling out less than one year after breaking ground. it all has the ceo dancing. >> they did in the year, which is remarkable. >> earlier this month, he said he expects tesla shares to keep pushing upward. the stock has more than doubled since the third quarter earnings report. among those who raise their price targets, he has the $612 price target. jeffrey's analysts have a $600 price target. but no one comes near long time -- his $800 target is based on what he says is the company's ability to execute. skeptical ofhas -- his pledges months ago.

picking anyitted to an opportune time to downgrade the stock in early october. >> i downgraded the stock on some concerns about demand earlier. i wish i had not done it. >> can the recent rally last? some say the massive market cap is the new norm while others pose caution. >> my valuation is below where the stock is now, to be honest. the company's competitive position continues to improve and it is really the only way to play right now but i am not sure i want to buy it at the current valuation. >> difficult to compete with them. i think they will continue to make fast tracks towards the vehicles. >> taylor riggs, bloomberg news, san francisco. yousef: i want to stay with earnings season. let's circle back to the saudi basic industry story. s on theicant mis fiscal year profit line. it is down 70% year on year, but

it's also far from the estimate. 8.6 6 billion. the fiscal year sales were more in line. remember that topic has already been struggling to come to terms with the strategy for the path forward, but also the aramco transaction has added a level of additional housekeeping for what is the largest listed because many -- company in the middle east. down about 27.6%. as we keep that in mind, we also keep the rest of the world markets on the other hand because we are looking at quite a bit of risk on returning here with the exception of the hang seng. bear that in mind. down coming out of the holiday. brent crude breaking past $60 a barrel yet again, up 1.3%. but of that is due to speculation that we had a big inventory drawdown in the united states. futuresthe many

called higher -- s&p e-minis called higher. plenty of more coverage ahead. this is bloomberg. ♪

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