drawings of hits to saudi aramco oil facilities triggering large explosions. yemen's hoofy rebels have claimed responsibility the attacks come just days after the kingdom said the state owned oil giant's much anticipated stop listing would happen very soon saudi arabia's interior ministry says one attack happened at the iran coast site at uptake in the country's eastern province the company says the processing plant is the largest crude oil stable is the stabilization plant in the world it's estimated it can process up to $7000000.00 barrels of crude oil a day and the other attack was that crisis about 150 kilometers northeast of the fires are said to be contained. well mark my colleague al-jazeera is correspondent of some of them services here with us now he's following the story for us we're getting some more information the who thinks that apparently saying there were 10 drones involved in this and also that they had some help from inside the kingdom what do we read into that and why is it so difficult for saudi arabia to be able to take down these drones wh

drones are fit to saudi aramco oil facilities triggering a large explosions just days after the kingdom said the oil giant's much anticipated stop listing would happen very soon yemen's who the rebels have claimed responsibility for the attacks saudi arabia's interior ministry says one attack happened at the site. in the country's eastern province the other attack was at about 150 kilometers northeast of riyadh. the company says the processing plant is the largest crude oil stabilization plant in the world it's estimated it can process up to 7000000 barrels of crude oil a day this is the latest attack on saudi oil facilities claimed by hooty rebels in recent months and august 19th drones attack the oil and gas field the drones carried explosives and caused a fire at a natural gas processing plant another drone attack on may 14th targeted a 1200 kilometer pipeline for saudi crude oil the country's energy minister said the drones hit to pump stations causing minor damage and a fire. some of binge of it has examined the strategic importance of the politics of saudi oil here's some of that

this is all just a with these of the top stories drones have hit to saudi aramco oil facilities turning large explosions yemen's huguely rebels have claimed responsibility the saudi interior ministry says one attack happened in the eastern province the other attack took place northeast of riyadh. saudi aramco is not an ordinary company it is a company which runs the country and this is one of the most important countries in the middle east so this is this is going to be a major blow you've seen the frequency and the intensity of the attacks that have been targeting will facilities in the past but what you see here and with the extent of the fine is that it looks like that they're getting better intelligence they're targeting specific areas african leaders are gathering in harare to pay tribute to the former president robert mugabe he died last week in singapore age 95 his burial will take place in zimbabwe in about a month's time after a mostly a men's build at national heroes acre in karate. west african leaders are attending an emergency meeting on terrorism in both keno faso the head

you're going to see it out of mind of our top stories this drones if it's to saudi aramco all facilities triggering large explosions yemen's who have claimed responsibility the saudi interior ministry says one attack happened in the eastern province and other attacks took place northeast of riyadh the fires are said to be contained. african leaders are gathering in hadi to pay tribute to form a zimbabwe president robert mugabe he died last week in singapore aged 95 his burial will take place in about a month's time. west african leaders are attending an emergency meeting on terrorism in book you know faso the heads of state are looking of ways to deal with a sharp rise in cross border attacks involving groups aligned with al qaida and deisel. fights a broken out between probation and i'm t. government protesters at a shopping. center in hong kong police made arrests after breaking up clashes between the 2 sides at the mall probation demonstrators chanted supports the police and waved chinese flags before being confronted by all those protesters sarah clarke is joining us live from hong k

to recap on headlines now yemen's hoofy rebels of claimed responsibility for drone attacks at 2 saudi aramco all facilities in retaliation the saudi led coalition carried out at least 6 airstrikes targeting if you military position north of the rebel stronghold inside the. reuters news agency is reporting saudi arabia's all production exports have been disrupted. african leaders have gathered in harare to pay tribute to form a zimbabwe president robert mugabe who died last week aged 95 his burial will take place in about a month's time. fights have broken out between pro beijing and anti-government protesters a shopping center in hong kong police made arrests after breaking up clashes between the 2 sides at the calhoun more. a new school year it started in the behind schedule because of the obvious difficulties getting kids to class in a country at war millions of children have been deprived of an education more than 300 schools have been damaged or destroyed since the war began and schools that are still standing the rebels are being accused of indoctrinating children as young as 6 with ple

pipelines doing really minor damage this this particular hit as i said straining at the heart of saudi aramco will send shock waves i think throughout the middle east of whom most particularly in saudi arabia because after all it's not just the infrastructure of saudi aramco that is potentially vulnerable it is also. desalination plants that could potentially be civilian targets really this this new technology that either the who these or those who are assisting the who these are suggestions these attacks may have come from iraq from the us to xabi the shia militias in retaliation for an israeli attack in august that that that this kind of situation can can rapidly escalate and and i think as as as the former prime minister said it could lead to something that could be potentially a war of enormous and really quite. horrible consequences so what we're seeing now analysts talking about and and governments also raising the issue of tapping into strategic struck by is to be able to mitigate the risks and also stop in a further spike in oil prices is this one i agree with that i just go is this b

needs a strong ram and vice versa as well the history of saudi aramco is the history of saudi arabia transforming itself from an isolated tribal society into your global presence when you can watch the full documentary saudi aramco a story of oil wealth and power on al-jazeera dot com it's also available on you tube channel. and in retaliation for the drone attacks on the saudi aramco plants the coalition says it's carried out at least 6 airstrikes targeting who the military positions north of their strong stronghold of side the camera was the is an economist and political analyst he joins us now live from beirut good to have you with us 1st of all let's talk about what this attack means for the around co i.p.o. . well obviously the ideal of the national public offering for this company is actually now probably is going to face a lot of tough tough. assumption if i ever come to the market here this it would have been trying for a very long time to try to say they can issue that i.p.o.'s they've been talking about different market different exchange talking to hong kong. japan the uni

to saudi aramco as i.p.o. has been in question following attacks on the oil fields in the middle east monarchy rule of u.s. what holdings is on hand to drill into oil prices in the future of the would be record setting i.p.o. we're back to full strength and ready to bring you all 'd the global business news news you need to end the week let's go. major tax cuts for the indian corporations leaves our global report today as a modi administration's finance minister announces an 8 percent cut in the base corporate tax rate the centex stock markets surge and close by more than 5 percent after minister some around the bend are now that $20000000000.00 policy package india's base corporate tax rate was cut 30 percent to $22.00 companies that do not seek tax exemptions will qualify for that base rate while those who do well pay a base rate of 25 percent down to. the previous 35 percent companies that start out between october of this year and march of 2023 will be offered an even lower base rate of 15 percent and whil

they are jumping after the attack on the saudi aramco facility in saudi arabia. bloomberg. ♪ anna: welcome back to the european open. let's check in on oil stocks and the aftermath of this attack on the saudi aramco facility. oil prices go higher, up 7.8% on wti, nearly 9% on brent right now. that's off the highs of the session. we were up more than that in the immediate aftermath. this is the oil names. london, acker bp, a host of names going higher. the garage of bad data -- barrage of bad data continues. 4.4%, below estimates of 5.2 estimates gain. this comes after the head of the policy meeting. investors expect a quarter-point rate cut, increasing divisions between the central bank cox and doves.- hawks and mark and bhanu are both still with us. mark, your thoughts. we saw this data out of china, clearly disappointing. it would have gotten more data. does this weakness in the data have implications on when we are assessing the gameplay around trade and how quickly we get any resolution run a big deal or middle deal? bhanu: china will continue to slow over ma

i'm fully back to go with the headlines on al-jazeera saudi arabia is shutting down about half of its oil output after drone attacks on 2 major aramco facilities that's according to the wall street journal yemen's who the rebels have claimed responsibility for the attacks and in what looks like retaliation the saudi led coalition has carried out at least 6 air strikes targeting who theme military positions north of the rebel stronghold sada al jazeera is correspondent osama bin javid has more on saudi arabia's ironical significance. this is a company which runs a country a country which is pivotal to what happens in the middle east it is one of the most important partners for various forces but the muslim world. is at the heart of not just politics but economy and life in saudi arabia as well it is one of the largest employers that saudi arabia has and it is also the crown jewel of the transformation program that saudi arabia's new crown prince wants to embark upon in order to change the country's trajectory from an oil dependent economy to a diverse economy zimbabwe's founding father robert mugabe has been honored at his statement

attack on oil facilities the recent developments highlighted the potential vulnerabilities of saudi aramco as key infrastructures and raise questions over the appropriate level of risk to be factored into the valuation to shore up its anchor investors saudi arabia is reportedly pressuring wealthy nations to take part in the saudi in the iran co i.p.o. helping to ensure a successful sale many of the families are being pursued in saudi arabia as investors are also part of were also victims of a crackdown in 2017 when members of the saudi royal family were imprisoned in the ritz carlton hotel ritz in riyadh is nervous about the deal of the century as the crown prince mohammed wants a state oil company to be valued at 2 trillion dollars but many doubt this target valuation aramco make take months to restore its oil output after about 5 percent of the world's oil supply was cut off by the attack. now to bring us the latest on the state of the world's oil market is rick will chairman of sprott us holdings so rick saudi aramco hopes to achieve a 2 trillion dollar valuation by analysts and bankers

saudi aramco tells bloomberg backthe plant should be to a pre-attack capacity by the end of the monthby anthony dipaolo there, according the ceo of aramco. we will court another ceo, euan munro, ceo of aviva investors joins their and myself at :00 a.m. to discuss the markets. it has been the worst monthly performance for the bond market since 2016. opportunity or threat? euan munro digs deep into the book of knowledge on bonds and shares it right here on daybreak: europe. this is bloomberg. ♪ nejra: good morning from bloomberg's european headquarters in the city of london. i'm nejra cehic. manus: i'm manus cranny. this is bloomberg daybreak: europe. these are today's top stories. the fed is expected to cut rates by a quarter-point today. jay powell's messaging may be the story. >> the effectiveness of monetary policy is not absolutely guaranteed. therefore, it needs to be consummated by other policy instruments. manus: the fed's meeting is overshadowed by the first move in some money markets for a decade. another $75,000 is on the docket today. ondi arabia attempts to move after the w

yes saudi aramco is no ordinary company it's the engine of saudi arabia's economy and a source of power for its rulers it's also the crown jewel of the saudi crown prince's ambitious plan to diversify the economy but with seemingly expanding strike capabilities from the war in yemen this would give investors a moment to pause some of the job it is their. correspondent a rebel is under joins us now live from washington d.c. gabriel some strong reaction from the white house and the state department now pointing the finger at talk us through the dynamics of all this. yeah you really saw the washington reaction to this come in 2 different forms really one form you saw president donald trump who did not speak publicly about it at all but calling up the crown prince of saudi arabia the white house confirming there was this conversation saying that the president trump offered his full support to saudi arabia and there's right to self-defense and also saying that this was attack was a a threat to the global economy so he saw trump signaling support for saudi arabia but then you also saw this re

saudi arabia -- saudi aramco is not optimistic of a rapid recovery. state energy supplier faces weeks or months before a majority is restored. saudi arabia also says in an initial investigation shows weapons used in the attack were iranian. .or more, richard still with us, peter schaffrik. thank you for sticking around. richard, there are a million angles we could explore given what we saw the last 72 hours but how quickly will output from saudi aramco come back online and how quickly can we be sure it stays online? we are having a couple of technical difficulties so we will get back to richard and a second. we were speaking to one of his colleagues, the main question of how quickly they can come back online and whether they can actually defend it. if you are jay powell and look at this, and you were telling me clearly, it does not have much of an impact on the market expectations because market expectations were already diversion from a be what the fed wants to do. if they cut further, are these insurance cuts or are they late to the game? peter: as f

yes saudi aramco is no ordinary company if the engine of saudi arabia's economy and a source of power for its rulers it's also the crown jewel of the saudi crown prince's and bishop's plan to diversify the economy but with seemingly expanding strike capability as from the war in yemen this would give investors a moment to pause some of it job it out is there more now from washington there that correspondent gabriel elizondo. the reaction from washington to this attack really took on 2 forms we never heard publicly from president donald trump on this on saturday but the white house confirming that he did speak to the crown prince of saudi arabia and really just trump was offering his full support to saudi arabia and the crown prince of saudi arabia self defense trump saying that the u.s. would support saudi arabia and also saying that this is attack was a threat to the global economy but then you saw a very strong statement again from mike pompei oh the secretary of state later on saturday if there be a twitter in this statement just really pointing the finger at iran directly so a dif

yes saudi aramco is no ordinary company it's the engine of saudi arabia's economy and a source of power for its rulers it's also the crown jewel of the saudi crown prince's embellishes plan to diversify the economy but with seemingly expanding strike capability as from the war in yemen this would give investors a moment to pause some of it job it out as their cable as under has more from washington d.c. . we have not heard directly from president donald trump on saturday or about these attacks on the saudi arabia oil infrastructure but of course the white house did put out a statement confirming that trump did speak to the saudi crown prince and that trump offered the u.s. as full support to saudi arabia and saudi arabia self defense saying that this is an attack on the global economy but the real strong statement here in the most clear statement i think really does come from the secretary of state might pompei o tweeted late saturday that he blamed iran specifically for this attack saying it was an unprecedented attack on the world's energy supply there is no evidence the attacks came

to saudi aramco is no ordinary company it's the engine of saudi arabia's economy and a source of power for its rulers it's also the crown jewel of the saudi crown prince's envisions plan to diversify the economy but with seemingly expanding strike capabilities from the war in yemen this would give investors a moment to pause some of a job it out as their al-jazeera store says about it brings us more from talk around. the reaction here has been that this pressure that's building against iran by the united states is continuing and there's no sign of it ending this maximum pressure campaign has now been switched over to maximum the seat as the officials here are calling it this is being seen as an attempt by the united states officials trying to force iran back to the negotiating table after the u.s. withdrew from this deal and they imposed a series of sanctions on iran of course the situation in yemen is very important for iran the fischel seer have said over and over again that they do support the who's the rebels in yemen politically and diplomatically but they do not have any military

claims iran for the drone attacks on saudi aramco despite claims of responsibility by yemen's truthy rebels. efforts to rehire him hundreds of people displaced after hurricane dorian hit the bahamas. and after 6 days at sea dozens of african migrants leave their. yes q ship to safety and actually. now u.s. secretary of state mike pompei o is accusing iran of direct involvement in saturday's drone attacks on some of saudi arabia's most important oil facilities he tweeted to saying tehran is behind nearly 100 attacks on saudi arabia while rouhani and zarif pretend to engage in diplomacy and made all the calls for deescalation iran has now launched an unprecedented attack on the world's energy supply there is no evidence the attacks came from yemen but who think rebels say they are behind the attacks on 2 saudi plants including the world's largest petroleum processing facility and add cake and an oil field in a court case and that's forced riyadh to temporarily scale back oil production by around 50 percent earlier u.s. president donald trump spoke to saudi crown prince mohammed bin sou

management is a -- for saudi aramco.ou know, immediately after doing the assessment overnight, we put our workforce. we have subject matter experts, engineers, professionals, operators, craftsmen. each train had a full team working to restore it. the manager of operations was given full authority to execute with all resources required for him 24/7. >> when will it be back at full capacity? >> abqaiq will be at full capacity by the end of september. >> you were able to meet your shipments to international customers? >> we are able to meet our shipments to international customers. when the supply was interrupted, we used our storage facility. anna: that was the ceo of saudi aramco speaking to our middle east energy markets reporter after the company's press conference in connection with those attacks over the weekend. s, ishiggins, cio at coutt still with us. i suppose one of the lessons of this, the market, investors are learning a lot from what has happened here. there's a danger we add a risk premium because we realize

the timeline for saudi aramco to get back in talk about a stretch, the bulk of output at the damaged plant could be off-line for weeks. saudi arabia has said an initial investigation has shown weapons used in the attacks were iranian. middle east anchor joins us now from re-a. riyadh.e -- restoring production will take a while, but we have not gotten a lot of facts about that. >> absolutely. the public discourse in the conversation have had so far in the capital of riyadh made it clear there is an absolute shock , sheer bewilderment, as to how an entity regardless of where it came from was able to hit the heart and soul of the saudi arabia and energy industry. there is pressure domestically to come up with a firm answer. that is where the public sentiment has been steered towards. globally, there will be? marks about saudi arabia's role. we had additional reaction from the foreign ministry as to what we can expect. i am pointing you directly to the statement. they are going to take all measures to ensure safety and security of the country, saying they are able to defend their land and

pipelines doing really minor damage this this particular hit as i said straining at the heart of saudi aramcowill send shock waves i think throughout the middle east for whom most particularly in saudi arabia because after all it's not just they have a structure of saudi aramco that is potentially vulnerable it is also. desalination plants that could potentially be civilian targets really this this new technology that either the who these or those who are assisting the who these are suggestions these attacks may have come from iraq from the us to xabi the shia militias in retaliation for an israeli attack in august that that that this kind of situation can can rapidly escalate and and i think as as as the former prime minister said it could lead to something that could be potentially a war of enormous and really quite. horrible consequences so what we're seeing now analysts talking about and and governments also raising the issue of tapping into cities ixtoc bias to be able to mitigate the risks and also stop in a further spike in oil prices is this one i agree with that i just go is this bec

amateur videos captured the fire and smoke at saudi aramco as uptake unit which was targeted by drones belonging to yemen's hooty rebels with a capacity to process nearly $7000000.00 barrels a day a big plays a pivotal role in iran because operations and the oil fields in her race which produces a 1000000 barrels a day also came under attack. aramco has not made clear the extent of the damage and its impact on saudi oil production but state media carried a statement from the interior ministry and said the fires were brought under control saudi arabia has been leading a coalition against the hutus in the war in yemen since 2015. the rebels say they want the world to see that they have a list of targets which they can hit in the kingdom of god some. attacks are our right and we warned the saudis that our targets will keep expanding we have the right to strike back in retaliation to the air strikes and the targeting of our civilians for the last 5 years saudi arabia accuses iran of backing the who these are charged tonight by the rebels some believe the saudi response to the drone attacks

alix: coming up, bank of america gets a piece of the saudi aramco ipo pie.have a bloomberg terminal, check out tv . you can watch us online, click on our charts, interact with us directly. go right to tv on the terminal. this is bloomberg. ♪ viviana: this is "bloomberg daybreak." coming up later today on "bloomberg markets," an exclusive interview with kkr health care strategic growth head. now to your bloomberg business flash. saudi aramco picking bank of america for a top role in what is likely to be the biggest ipo ever. bloomberg has learned be of a will look along -- has learned b banksill lurk along other that will be added to the deal. -- the san cisco bay deal --o bay broker's jp morgan has reduced the target it set for an annual interest income. citigroup and wells fargo did the same thing. longer-term rates have continued to fall. investors expect the fed to continue cuts it began in july. i'm viviana hurtado. that is your bloomberg business flash. alix: thanks so much. we turn now to wall street beat. we cover three things wall street is

yes saudi aramco is no ordinary company it's the engine of saudi arabia's economy and a source of power for its rulers it's also the crown jewel of the saudi crown prince's ambitious plan to diversify the economy but with seemingly expanding strike capability as from the war in yemen this would give investors a moment to pause some of the job it is there. let's get more now on the view from washington d.c. here's our correspondent gabriel elizondo. the reaction from washington to this attack really took on 2 forms we never heard publicly from president donald trump on this on saturday but the white house confirming that he did speak to the crown prince of saudi arabia and really just trump was offering his full support to saudi arabia and the crown prince saudi arabia self defense trump saying that the u.s. would support saudi arabia and also saying that this is attack was a threat to the global economy but then you saw a very strong statement again from mike pump aoe the secretary of state later on saturday if there be a twitter in this statement just really pointing the finger at iran

in the government to saudi aramco is no ordinary company it's the engine of saudi arabia's economy anda source of power for its rulers it's also the crown jewel of the saudi crown prince's ambitious plan to diversify the economy but with seemingly expanding strike capability as from the war in yemen this would give investors a moment to pause some of the job it out as their economist. says an attack will bring a lot of hard questions about the around coast stocking listing. the su would have been trying for a very long time to try to say they can issue about i.p.o.'s they've been talking about different market different exchange talk your hong kong. japan the united states but in the end have this actually idea was was was issued and it's listed on the market and trade in the market today would a so a big a drop on the prize a lot of people are going to be afraid of investing their money in a place where there is and stability and war any time now this this this resources can be at the act and actually what happened have and are mine the ability of this who would be to actually issue t

vonnie: does this signal the saudi aramco ipo is getting closer?> we are waiting for the banks to be named, we have seen numerous reports about where the ipo will be held. them talking to anchor investors is sort of part of the process, you want to have customers built in. talking to local families, it will be interesting to find out who are the actual investors that are chosen to be a part of this, what price they come in, and how that affects the ipo process. we still don't have timing on this ipo, and that is still the $2 trillion question. royal a knowns quantity, have we seen him before on the world stage? >> we describe it as the understudy taking over the lead role. he was a deputy for the prior minister, has been doing this for almost 30 years. he has been involved in brokering tensions with iran at various points. under million with the area, not somebody with no background on the issue. we reporting so far is expect him to make less public statements. obviously, the prior minister was keen to talk about the oil price as much as possible.

saudi aramco saudi arabia it needs a strong ram and vice versa as well history of saudi aramco is the history of saudi arabia transforming itself from an isolated tribal society into a global presence so listening in on increased attacks like this on facility is going to send a bit of a shockwave down the spine of not only saudi arabia but the world right absolutely you see saudi arabia has been stuck in this perpetual war with yemen since 2015 and we've seen the transformation of the who the rebels of saudi arabia says are backed by iran you've seen that they were launching rudimentary attacks by missiles in the beginning of which were quite easily wiped off by the saudi government as well as its allied forces now they've gone into a more metamorphosed into a more sophisticated fighting force so that's a nightmare on its border obviously this is all of its financial projections are dependent on international players pumping money into saudi arabia which unless you've got complete security and stability for an investor is a major deal absolutely thanks so much for salvage a very. now

. $70 after soared to an attack on a saudi aramco facility. president trump vows retaliation if iran was behind it. data misses from china underscore deepening concerns in the world's second-biggest economy as investors prepare for the fed on wednesday. borisg up a brexit deal, johnson prepares a hard-line approach with jean-claude juncker. we are in luxembourg. manus: a warm welcome to "daybreak: europe." we are waking up to 5 million barrels of oil being taken out of the system by saudi aramco. is it a four-week affair? how much of the 20% price rise that we saw at the open is geopolitics and how much of it is supply? good morning. nejra: yes, the biggest sudden disruption ever is what we have been waking up to this weekend. we have certainly been mispricing oil markets up until now. >> we have indeed. let me show you the single biggest daily move. i put it in the library. here we go. this is the kind of size and scope move we have seen on the oil market. we opened up on the biggest move since 1988. since 1990iggest when kuwait and iraq were

yes saudi aramco is no ordinary company it's the engine of saudi arabia's economy and a source of power for its rulers it's also the crown jewel of the saudi crown prince's ambitious plan to diversify the economy but with seemingly expanding strike capabilities from the war in yemen this would give investors a moment to pause some of the job it is there. or the saudi led coalition is investigating the attacks and also says it will take the necessary measures to safeguard national assets it's already carried out at least 6 as strikes targeting his the military positions north of the rebel stronghold sada well gabriel is on though is in washington and joins us live now and quite a few areas reaction from the white house to and the state department for that matter as well. yeah the big statement was from the state department 1st the white house we haven't heard directly from president donald trump on saturday but a spokesperson for the white house and trump put out a statement confirming of course that he did speak to the crown prince of saudi arabia in solomon in saying that the u.s. supp

output the saudi energy minister says they will offset part of that though by using stockpiles saudi aramco calls the like or processing facility the largest crude stabilization plant in the world as soon as i say it can produce nearly 3 quarters of saudi arabia's overall output for the or my kids haven't seen a shutdown on this scale since iraq invaded kuwait back in 1990 it's not clear when it will get back to full production we begin our coverage now with osama bin. amateur videos captured the fire and smoke at saudi aramco as uptake unit was targeted by drones belonging to yemen's hooty rebels with a capacity to process nearly 7000000 barrels a day a big plays a pivotal role in iraq because operations and in the oil field in her race which produces a 1000000 barrels a day also came under attack saudi arabia has been leading a coalition against the who is in the war in yemen since 2015. the rebels say they want the world to see that they have a list of targets which they can hit in the kingdom of god some. attacks are our right and we warned the saudis that our targets will keep expandin

i am thinking of saudi aramco. those issuesabout -- brian: we definitely need clarity. i expect we will continue to see the path they are on a week ago, we were talking about trade. for business investment, that is what you need to see. protectionism isn't a good but they just need to know the rules of the game. that is what businesses are looking for to bring forward investment. i think that investors should probably try -- this has been a year of policy uncertainty. what happened over the weekend -- i think we are in a secular bull market. stocks are still cheaper than bonds. growth is ok. to me, it doesn't feel like the end of the cycle. thank yourian levitt, so much. of course, our own sarah ponczek, who covers cross assets for us. coming up next, romaine bostick steps in for "what'd you miss?" this is bloomberg. ♪ caroline: live from new york, i am caroline hyde. romaine: i'm romaine bostick. joe: i am joe weisenthal. caroline: a slightly muted response to the crisis but energy was in outperform her. saudi fallout -- was an outperformer. saudi fallout continues. ip

we have seen the minister sank saudi oil supplies have returned to market, saying saudi aramco will overcome repercussions of the attacks and be ready for the ipo. we have seen questions over the valuation of the ipo given the attacks on the saudi facilities. the oil minister also saying he sees production at 11 million barrels a day or the end of september. this will be surpassing the level at which they were producing in august, which was only 9.8 million barrels a day. no wonder we are seeing the hit in oil prices. now brent falling to session lows. trading at 5458. you can continue watching the press conference. live go is your function on the bloomberg. let's come back here to the u.s. and talk about the overnight repo rates soaring in a rare midmonth surge. for the first time in decade, the federal reserve bank of new york is injecting $53.2 billion of funds into the banking system in an overnight repurchase agreement operation. joining us is alex harris. risk we had heard of the of this happening. the funding squeeze. this seems to be much more than analysts had expected. alex: that i

now the head of the public investment fund being appointed as the new chairman of saudi aramco that isajor step forward when it comes to essentially separating church and state. it is very important for potential investors. the other thing we spoke about is the time of questions he has been getting which encourage this i asked him about the conversations we had been having and the type of questions. here is how he responded >> investors will evaluate all of these things, they will look at our financial performance, safety and information when it comes to our carbon intensity, emissions and all of these things, technology it is a company that is global it is the biggest in the world, the most profitable. it has the most values when it comes to all the categories i highlighted. >> the company is ready to go public the big question, is the market ready? it is really a commitment to continue the current policy of the opec plus group and whether that will result in higher oil prices even though the business is opening up more and more, the bigger question will be where is this secondary lis

saudi aramco is optimistic about rapid recovery. e energy supplier faces weeks or months before the majority of output is restored to the world's largest processing plants. meanwhile, as saudi arabia says an initial investigation shows weapon used were iranian. give me a sense of the mood in riyadh. what is the likely response from the saudi's today? >> there is an aura of trepidation over riyadh as the rest of the country -- the conversations i have had make it clear much of the public in is trying to raise awareness on that front. the setback on the attack largely means there is quite a bit more pressure on the saudi government to come out with a firm response. the first step toward that we got overnight was a statement from the foreign ministry. this may be more important than chasing the oil price down a rabbit hole. take allom is going to measures to ensure safety and is capable offirm defending its land and it is going to respond strongly to this aggression. the first part of that is going to be bringing in investigators to fin

and it is likely that iran was behind the saudi aramco attacks. to the roller coaster trade headlines. trade groups from china and the u.s. have held constructive talks upgrading to the chinese industry of commerce. markets were stu on friday tooped on friday when president trump says he was looking for a complete trade deal on friday. nejra: and at the request of the u.s., there was discussion or a cancellation of a trip to the heartland. joining us now is carl tenenbaum, the chief economist at northern trust. how are you reading these mixed signals? pessimism and then optimism. carl: the base level -- they are not escalating things. things are at an even keel. better they are talking then raising new tariffs. the issues are many and buried. the chinese are insisting on a comprehensive deal which is a sticking point. the sanctions against the telik made -- telecommunications maker is what is making china uncomfortable. some of the tariff issues may seem simple by comparison. matt: how long do you think it will take before we find a solution to th

since saudi aramco is no ordinary company it's the engine of saudi arabia's economy and a source of power for its rulers it's also the crown jewel of the saudi crown prince's embellishes plan to diversify the economy but with seemingly expanding strike capability as from the war in yemen this would give investors a moment to pause some of it job it out is there more now on the view from washington from our correspondent gabriel elizondo. the reaction from washington to this attack really took on 2 forms we never heard publicly from president donald trump on this on saturday but the white house confirming that he did speak to the crown prince of saudi arabia and really just trump was offering his full support to saudi arabia and the crown prince of saudi arabia self defense trump saying that the u.s. would support saudi arabia and also saying that this is attack was a threat to the global economy but then you saw a very strong statement again from mike pompei oh the secretary of state later on saturday if there be a twitter in this statement just really pointing the finger at iran directly

following to follow from the saudi aramco attacks in the currency market.ing back earlier gains against the u.s. dollar. more ahead with the senior currency strategist. this is bloomberg. ♪ the yen and other commodity linked currencies have reacted to the drone strike in saudi arabia. this is the start of a busy week of decisions in japan and the u.k. and of course from the fed as well. let's go to the senior affect strategist with nav national australia bank. yen. off with the you expect to see this in the environment of geopolitical risk like we saw over the weekend. >> the first reaction for dollar-yen is to show strength is -- and particular for the yen to show strength. you'll control policy, and we saw it going significantly last weekend friday as well. supply -- what and it might mitigate someshing strength. paul: for the paul: yen, when will that become a concern? expecting any comment? we have seen intervention in the past. >> for now the bank of japan, similarly to qe stimulation is limited what it can do. they will wait and from the domestic side

saudi aramco facing weeks or months before the majority supply is restored after the devastating aerial attack. opec secretary-general says it is premature to talk about whether other opec plus nations should increase production. he talked exclusively to bloomberg. >> in order to remain dependent -- we haveies of oil to secure our facilities and operations. we have learned from the kingdom. we are going to use this unfortunate experience to ensure such an incident does not repeat itself. >> i does want to clarify, to other opec nations need to increase to make up for the lost production we are seeing out of the kingdom? >> whatever decision that will be taken will be a collective -- iton of not only opec is premature at the moment to begin to contemplate on what will be done in council forum and when. >> what about what that united states is doing, capping the spr? does that worry you and your partners at opec plus? news that read in the leaving is thinking of --m spr depending on the it is only if needed. wait.l continue to there is no need to panic at the moment. what we have seen in

. >> saudi aramco oil facilities hit by an airstrike. kes have cut saudi arabia's oil production in half. it hit the world's biggest will in theduction facility kingdom. rebels in yemen claimed credit for the attack. the u.s. is blaming iran directly. >> what we are hearing from saudi aramco so far is supplies are continuing. they are meeting customer commitments and are able to do that from oil in storage. >> no one expects saudi arabia to respond with a military attack against iran. >> president trump said they are locked and loaded based on who actually did that. saudis come out today and , they have not blamed anyone yet -- if they blame iran, that is basically the end of it. >> the press agency, speaking of iranian weapons being used. what is notable is what they did not say, direct blame on the islamic republic for instigating the attack. >> the trump administration wants to put the blame on iran and marshall international support to present a unified front. the international immunity, even u.s. allies, not willing to go that far. >

sonali: right now saudi aramco is dipping to their plan.t week. right now, we have a sticking to our reporting, they are continuing with the plan. november considering stock sales. dow jones also reporting they may consider a delay. what is not up for debate is what the valuation looks like. there is a huge range people are considering. over $2 trillion is what the crown prince had considered. it is what a lot of banks had considered. a lot of analysts weighing in at $1.5 trillion. we are sitting here with a question mark of maybe $300 billion of a haircut at play with these risks. alix: do you like a saudi aramco ipo? marc: i thought i did but the vulnerabilities underscore it. the cost of production, even though getting oil out is one thing, but now protecting these facilities and the prospect of getting different stories. sonali: if you look at an ipo perspective, this is a risk that was not there yesterday. alix: great point. let's get to our next story. christian no day opening up the font to external money. sonali: is concentrated nat

has more on saturday's attacks on saudi aramco. who the rebels in yemen say they flew armed drones across the border deep into saudi arabia to attack 2 major oil facilities if confirmed its their most ambitious and devastating operation following dozens of smaller scale strikes in the kingdom in recent months but. we exploited vulnerabilities in the saudi defense system and we built our drones in order to avoid these systems therefore the saudi and m. iraqi airspace became open to us after their defense systems failed to even spot the drones. the u.s. secretary of state flames iran for saturday's attacks might pump a 0 says there's no evidence they were launched from yemen although he hasn't explained how iran is to blame or where the drones took off from secretary powell has made clear that the iranian regime is responsible for this attack on civilian areas and infrastructure right are vital to our global energy supply and we're not going to stand for that in fact our department of energy stands ready to tap into the strategic rese

saudi aramco is no ordinary company it's the engine of saudi arabia's economy and a source of power forits rulers it's also the crown jewel of the saudi crown prince's ambitious plan to diversify the economy but with seemingly expanding strike capabilities from the war in yemen this would give investors a moment to pause some of the job it does there. well the saudi led coalition is investigating these attacks it also says it will take the necessary measures to safeguard national assets it's already carried out at least 6 as strikes targeting goofy military positions north of the rebel stronghold. well gabriel is on though is in washington for us 1st tell us the u.s. reaction so far. yeah we'll start with the president donald trump we've not heard directly from president trump about this she's been golfing most of the day hasn't had any public statements about this but he has the white house has confirmed that he did have this call with the saudi crown prince wary offered his full u.s. support to saudi arabia saudi arabia self defense saying that he's monitoring the situation very close

saudi aramco has inventories in europe, rotterdam, and it has inventories in japan and egypt. are saudi inventories. we have u.s. inventories, european union, and chinese. the market is pretty well supplied. the only price -- the only effect that pushes prices higher today are two major risk premiums we are is uncertainty because market is not sure for how long the production is going to be extended -- going to be suspended and the market is worried there will be additional tax for supply -- attacks for supply interruption in the region -- or supply interruption in the region. shery: are you worried about internal assets? sara: saudi arabia, despite its position, still has the highest reliable surprised -- reliable supply. it has a huge investment both inside its own kingdom and outside of the kingdom to secure the supply chain infrastructure from inventories. obviously what has been attacked was very well-designed, targeted because it is a processing unit that processes crude oil produced in different fields before the exports. we might expect for weeks this could be suspended

. >>> welcome back oil jumping today as aramco gears up for its long-awaited ipo. the new saudiister discussing the massive deal, sitting down with cnbc contributor, halimacroft over the weekend, discussing fears of waning demand. >> with regard to slowing demands, the jury are out. i was just asked a few minutes ago, i think you were here, the question about the iea projections. and i told the respectable reporter that if i were to be concerned with iea projections, i would probably be in prozac all the time >> halima croft is with rbc capital markets and joins us now. great to have you with us. this is a first time a member of the ruling party has been appointed to this position what is the significance in relationship to the aramco ipo >> well, i think it's really important, first, to specify the fact that while prince abdula z abdulaziz, he is a long-standing politician he is the expert in the room in terms of the saudi aramco ipo, i think it's full steam ahead with the ipo i think there had been some question markets about the previous oil minister's commitment to the ipo.

i'm sammy's a dan and with a look at the headlines here now the sierra drones of hit to saudi aramco oil facilities triggering large explosions yemen's houthi rebels have claimed responsibility the saudi interior ministry says one attack happened in the eastern province the other attack took place northeast of riyadh authorities say they've contained the fires saudi aramco is not an ordinary company it is a company which runs the country and this is one of the most important countries in the middle east so this is this is going to be a major blow you've seen the frequency and the intensity of the attacks that have been targeting world facilities in the past but what you see here and with the extent of the fire is it it looks like that they're getting better intelligence they're targeting specific areas. they're here sorry a spokesman for the who says they use many drones in the attack and had help from inside saudi arabia. no further joel was our john unit carried out a massive attack with 10 drones it targeted to iran call facilities in the peak and east of saudi arabia early this mo

the state owned oil company saudi aramco says the fires started by the attacks knocked out more than half of its entire daily output close to $6000000.00 barrels of oil the saudi energy minister says stockpiles of oil will be used to offset the loss of production but oil markets haven't seen a shutdown on this scale since. iraqi troops invaded kuwait to start the 1st gulf war in 1990 and it's not clear how long repairs will take. the attacks may also undermine investor confidence in iran cause anticipated stock market debut the saudi government hopes it will raise up to $100000000000.00 based on a 2 trillion dollar valuation of the company i don't think it will. cause a global surprise 10 percent of the global supply come from and what the global economy and the global source of energy so the world won't accept the street. with no saying so that if you want all of the attacks have cut 6 percent of the world's oil output the impact will depend on how quickly the saudis can restore full production. for. and our correspondent also jabari has the view from tehran. iranian president hassan