previously aramco was taxed with a royalty of 20%.ccording to the information we have been able to review, that has been replaced with a new system that increases the marginal rate with the price of oil. $70,l prices stay below that marginal rate is set at 20%. 100, thetween 70 and marginal rate goes to 40%. for prices above $100, a goes to 50%. if the system is still in place when the ipo takes place, it will probably limit the potential of gains for investors when prices go up because the saudi kingdom will take more money out of the company. david: that's fascinating. ,f i bought a share in aramco that means basically i do not participate in 100% of the upside of oil prices. javier: that is what it means. this is not a unique system. the u.k. has a very similar system in the north sea for oil and gas. russia applies a similar system for petroleum production for its companies. other companies like -- countries like australia considered this system of lesson a flexible royalty. it is a novelty for saudi arabia. alix: rapping about, w

aramco has no debt whatsoever. thing that people always expected, it is extremely cheap to drill oil in the saudi desert. by our calculations, the cause for each barrel they drill is about four dollars. that compares to a similar figure of $28 for exxon and shall. it really confirms that the reason that aramco has this real amount of cash is the fact that it is so cheap to get the barrels out of the ground. mark: the numbers highlight how dependent saudi arabia is on this company. will: yes. i think this is what the numbers and attacks regime really reveal -- that tax regime really reveal. a bit of tension between being place forive investors and the fact that the kingdom is so dependent on it, to make sure it is healthy this coolly and estate pay for all of thing that it pays for in terms of social spending, rising military spending, even some of the rising let's house of members in the royal family. mark: will kennedy, thank you. vonnie: let's get a quick check on the markets. we turned around a little bit. here

the ceo of saudi aramco is not concerned.nded plans for the ipo in an exclusive interview with bloomberg's jonathan ferro. >> i think a lot of the questions and the media coverage in the news about the ipo and when it will happen is a lot of demand for the listing of saudi aramco. the data will show when we go on our road show ultimately, we are the most efficient, the most reliable producer. this is a great company that the data will show their performance. >> when i speak to people, they are not talking about when it will happen, they are talking about if it will happen. perhaps the whole ipo will goes into the deep freeze and doesn't happen at all. >> the company and the government did all of the paperwork to make it a joint stock company effective january 2018. that is an indication that the ipo is ongoing. the preparation by saudi aramco never stopped. we should be as we always say a company ready for listing in the second half of 2018. we are doing a lot of work to prepare the company for listing. making sure that we ar

. >> plus, the ceo of aramco -- saudi aramco on his idea.s bloomberg businessweek. ♪ ♪ jason: welcome back to "bloomberg businessweek." carol: you can find us online. >> and on our mobile app. in the finance section, alex takes the pulse of the ipo market. carroll: in doing so, she kind of dispels the myth that no one is going public. here is alex. alex: the private funding cycle has changed so much. when you talk to people deep in the industry, they point to 2013, 2014, 2015 as when you saw a lot of cash, not just from the typical venture capitalist but from mutual funds, sovereign wealth funds, what we call tourists coming into the ecosystem. you have all of these people who post recession are dealing with an environment of low interest rates, there is not a ton of growth out there economic growth , globally is not very lovely. they are looking to private tech companies to get this strong growth. they are hoping they are betting on the next apple, google, or amazon. jason: how do spotify play into this discussion? >> spotify is doing somet

of course the saudi aramco ipo. . investors are data, jan stuart, the chief energy correspondent at cornerstone macro. banks have looked for this and it is the sheer evaluation of saudi aramco, more like $1 trillion rather than $2 trillion. your thoughts on the capacity. an incredible company, of course, and it is outsized corporate, of course, all growing in the state covers of the kingdom. how to value aramco is being debated now. holdsk the crown prince the real value in his head, and as for the interview, it is waiting for the right time to get that value. julia: what do they need to be at for them to say let's go ahead? jan: higher and higher. right now, we hear aramco itself as a report talking about $80, right? that oils talk about price in general, because it seems like obviously there is an is punctuated by whatever the geopolitical headline of the day is. let's say geopolitics aside, we are looking at fundamentals, we know saudi wants to push it higher, maybe toward that $80. can they get it? jan: $72 and ch

aramco may list on one or two foreign markets.business report. —— asia business report. the top stories to sour. western leaders have expressed outrage to suspected chemical attack in syria. the united nations security council will meet in an emergency session later today. hungry‘s white wing —— right—wing nationalist viktor 0rban has declared victory. stars of the british theatre have been on the red carpet at the prestigious 0livier awards. red carpet at the prestigious 0livierawards. hamilton, red carpet at the prestigious 0livier awards. hamilton, the us musical, was the big winner. for one night only, theatreland's finest are not treading the boards, they're walking a wet red carpet. the 2018 0livier awards. the 0liviers, of course, are all about celebrating british theatre, which has had a good year. ticket sales are up, box office is better, but actually, in reality, what everybody really is talking about is an american blockbuster, the musical, hamilton. # see if you can spy another immigrant coming... the rap musical abou

a do you think investors appetite appetite for the aramco i.p.o. is a certain thing they thrilled with the prospect of acquiring around stock. well i think there certainly is there certainly is interest on a global scale the question really is when will this happen we had an initial date for the i.p.o. that was delayed. and exactly what will be the details the devil is always in the details so i think we're still at this point we're waiting to see what will happen in terms of that i.p.o. where the deal you know what type of details will come out of it and really where will the value be and i think once a lot of those once a lot of those pieces become a bit clearer then we'll start to see a more firm interest from local investors as well as international investors. a democracy as we've heard there from both anastasia and robert there are very few details as to where the money is going to be coming from military expenditure inside jerry bates extremely high right now they're spending a lot of money in the war in yemen and there's even been talk this

be smallerofit would than aramco.lem is demand. >> you need big profits if you're company is supporting an entire country. it determines how much of their profits and up getting funneled to the government. the second thing is it determines what sort of risk premium investors put on a company like that. we have seen all the geopolitical action that pushed oil prices up. good for valuation for an oil company except most of that is happening in saudi arabia's neighborhood. if i were a western investor i a bigger risk premium on it. scarlet: the price is moving in the right direction but the conditions not so much. we used to say that the world was drowning in oil, is that still the case or is that an outdated perception? >> it depends on how you look at it. from opec's perspective they brought inventories down to the five-year average. it is sort of mission accomplished. the problem is less about how much we have above ground, the and i ams below ground talking about u.s. shale. we are looking at oil prices going above 7

in other business news, saudi aramco has signed a deal with a consortium of indian refiners to buildndia's west coast. the minister says that asia is still their biggest market, it comes 2a hours after saudi aramco saint agreement with a french oil company. saint agreement with a french oil com pa ny. toys saint agreement with a french oil company. toys "r" us are moving ahead with plans to sell some non—us assets and has received multiple bids of more than $1 billion for an 85% sta ke bids of more than $1 billion for an 85% stake in its asian business. a lawyer for the retailer says the company will try to focus on more profitable locations as it liquidate its us and uk operations. what used to be the world ‘s largest carmaker in the world, is now struggling to survive in south korea. general motors may need to shut down more factories there and ask for to government support if it union cannot agree to cut labour costs in the coming weeks. later today, wage negotiations are due to take waste between the carmaker and the union, which has 111,000 members. general motors into the korea

how do you keep taxing saudi aramco high enough to generate enough money for the government.ring in international investors. mark: what are the most eye-catching fax, free of debt, production cost at a fraction of the industry? >> two they were interested in, the balance sheet is almost free of debt, almost as much cash as debt, that was very important. we have been talking about how big the net income in 2017 it was. larger than samsung and apple and jpmorgan. the largest net income for a company. look at what will have happened, 2016, the first cap, oil prices billion,-bottom, $7.2 that is good, not the kind of size you would get with apple who can do that in a quarter. vonnie: fantastic story. that is our energy correspondent. time for the stock of the hour. is the top performer by the doubt by a wide margin and on pace for the best day in two weeks. abigail doolittle tells us why. blaireone from william joint tom keene on bloomberg radio and said that if you do not own this stock, you want to become a shareholder 40 couple of reasons, the dividend yield, 3.6%, they will g

guest: we always value our cooperation with saudi aramco.ry in southwest china by saudi aramco came into operation last year and our negotiation on investment trends has continued through the whole process. recently, aramco has been preparing for its ipo and we have been paying close attention and evaluating how to deepen our cooperation. no matter if we become a cornerstone investor, we wish nothing but success to saudi aramco's ipo. reporter: the you export russia to export through this pipeline and will the prices be competitive enough? guest: i can tell you that both china and russia are accelerating construction of the east pipeline project. end of planned but the 2019. china is a huge market with fast growing needs for natural gas sees great importance in the diversity vacation of guest imports. we have u.s. energy suppliers involved as well. as an importer, cnbc certainly once those imports to be great in quality and reasonable in price. it should offer us very competitive prices. reporter: china has just launched oil futures trading

alix: how about the saudi aramco ipo? how do you market for that?arge company that wants to touch large capital markets should be in the united states. i do not mean saudi specific. i mean any large company. we had the deepest, most liquid capital markets in the u.s. if you want to raise large amounts of capitals, this is the place to do it. david: the reporting is saudi aramco is somewhat hesitant because of the closures. as you talk or someone from the new york stock exchange talks with someone responsible in saudi aramco, is there any room to maneuver, to say we will change this a little bit, let you off the hook little bit, how does that work as a practical matter? jeffrey: i am a public company ceo. public companies have their own legal challenges. there is a lot of disclosure we make and there is challenge to what we do. that is part of being a public money. i do not think we will change for anyronment, per se, one company. it is good to have that dialogue. i think the trump administration is trying to roll back some regulation, even under the

the world's biggest oil company, saudi aramco, says it plans to trade as much as 6 million barrels ofatjump in volume would put it among the top byers and sellers of crude. if it reaches its target, aramco would rival the world's biggest biggest trader vitol group, which trades around 7 million barrels a day. the psa group, which owns peugeot and citroen, has reported a 42% rise in sales in the first three months of the year. revenues were boosted by the acquisition of the opel and vauxhall brands last year. european regulators will launch an in—depth investigation of apple's planned $400m purchase of shazam, the music recognition app developed in the uk. the european commission said an initial probe found apple may encourage shazam users to switch to its own music streaming service following a takeover. apple chip supplier sk hynix has seen a 54% jump apple chip supplier sk hynix has seen a 5a%jump in its profits, but shares have slipped almost 3%, and thatis shares have slipped almost 3%, and that is because it has warned that the global smartphone market is starting to stagnate. si

we had a lot of big french and total and aramco. they want to expand this.presents investments of several billions of dollars. total ceo is on the sidelines in paris. here is what he said about the new extension of the joint venture with the saudi's. investments of billions of dollars. jobs. it is quite a platform. toare deciding to launch prepare the project. ceoline: i tried to ask the in a bloomberg asked who said -- exclusive, the saudi's wanting $18 a barrel for oil. the ceo said he was not astonished that some people want higher prices for oil. $65 is a fair price. he does consider the surplus in disappearedas not and has not rebalanced quite yet. the saudi prince is also meeting with emmanuel macron later today. what can we expect out of the meeting. will syria be spoken about? leaders: the two young are actually just about to meet as we speak. they it will hold a press conference and less than one hour from now. be arench president will very difficult balancing act for him because he needs to make sure he condemns the saudi's for the city -- situatio

the world's biggest oil exporter, saudi aramco, says it plans to trade as much as 6 million barrels ofme would put it among the top buyers and sellers of the black stuff. if it reaches its target, it would rival the world's biggest bigestt trader, vitol group, which trades around 7 million barrels a day. european regulators will launch an in—depth investigation of apple's planned $400 million purchase of shazam, the music recognition app developed in the uk. the european commission said an initial probe found apple may encourage shazam users to switch to its own music streaming service following a takeover. apple music has about half as many paid subscribers as spotify, the world's biggest streaming platform. a quick assessment of the financial markets. i am told... no. a quick assessment of the financial markets. iam told... no. we a quick assessment of the financial markets. i am told... no. we have got the numbers for you. i think i have changed their mind. you can be things are higher across the board in asia will partly because we have a stronger dollar. most currencies are at dow

and the saudi arabia, the price higher with the possibility of a flotation of aramco. ipo will happen when the price is right. that sounds like a when the price is right. that sounds likea game when the price is right. that sounds like a game show. thank you so much for coming in. thanks for watching the briefing. from me, sally bundock, and the rest of the team, goodbye. hello there. well, wednesday brought us classic april weather. sunny spells, heavy showers and these cumulonimbus clouds built up widely across the country, bringing downpours, hail and thunder and is wonderful weather watch picture shows cumulonimbus clouds decaying in the sunset. showers have been coming in off the atlantic on a fairly stiff west, north—westerly breeze and will continue to stream entering the overnight period in the thursday morning. mainly across the north—west of the uk, elsewhere it will turn dry with clear spells. it will be a chilly start to thursday, temperatures and low to mid single figures. but although a chilly start it will be lovely and bright the thursday morning. lots

the most important things, just how heavy the new tax regime is that saudi arabia had imposed on aramco contemplating buying this company will look at how much they have to share this money with the saudi government. of the biggest shareholders of cbs has written to the companies saying they should only proceed for a deal with viacom if certain terms can be agreed on. help us with what is in the air. , thatis a scathing letter really gets this laundry list of things that are problematic with this potential cbs/viacom merger. at your peril, even though shareholders do not have huge voting power. have voting power across the two companies. shareholders are saying there are lots of interested economic shareholders who should be given some say in any transaction. owner of british airways, has bought a stake in -- and is considering a full offer. at his business which is struggling financially and looking at the model they put in place, a big part of it is the low cost -- model. norwegian is also struggling. >> how much? >> they are finding it incredibly tough at the moment. i think it also

on aramco and the run-up to the ipo. are contemplating buying this company will look at how much it will share with the saudi government. >> one of the biggest shareholders of cbs has written to the company's board to say they should only proceed with a deal with viacom if certain terms can be agreed on. tell us more about what is near -- what is up in the air here. >> it is a fairly scathing letter that showed a laundry list of things they think are problematic to a potential deal, and they really call out redstone. even though shareholders do not have huge voting power, this shareholder is saying you need to recognize that there are a lot of interested economic shareholders, and they should be given some say in any transaction. >> iag, the owner of british airways, has bought a stake in norwegian airways as they are considering a full offer, sending shares of the region soaring. why now? >> looking at this business, which is struggling financially, looking at the model in place -- a big part of that is the low cost, lo

thank you very much for that meantime, investors anxiously awaiting the initial public offering of aramcoe company is worth when that happens. financial information leaked to bloomberg shows they own 33.8 billion dollars in the first half of 2017, significantly bigger than apple at 28.9 billion. aramco disputes the report >> joining us now, rbc capital markets, of course, the size got your attention to begin with, and now even more so questionable to whether this is true and how big the profits are? >> it's something a big company basically guard ed with, you know, great secrecy, saying today they are not official reports. what we know about saudi arabia is it's a very, very low cost producer, and that was the key figures in the report today that basically $4 in terms of the listing cost i mean, that's one of the key reasons for the, you know, huge process, and there's specific stock analysts, and the numbers out there, if they are true, the company is nice, and if they are true, does that impress investors? >> $52 billion in cash, 16.2 billion during the last -- you know, during the quar

renewed interest from the studies to boost oil, is this because of the saudi aramco ipo?it's because of the saudi aramco ipo there was an epiphany in may of last year where they realized that by targeting u.s. flows, they could really provide bullish sentiment to the market by cutting deliveries. that's what we've seen over the last year we had comments signaling what saudi arabia will do in terms of those flows and they acted on it so they had a huge amount of credibility in terms of that going forward, everything we hear from saudi arabia about what they want to do with production cut deals we have to take heed from everything they said so far has played out so they're trying to support prices here. >> matthew, those energy prices could be supported by some of the geopolitical risk that is out there globally right now if you look at oil prices, they're reacting to those geopolitical risks where other markets may be shrugging them off. how important is tension in the middle east and elsewhere for those prices going forward >> it's a huge concern the reason it's having an

his counterpart from the saudi --egation, as well as that the saudi aramco ceo, they will be speakingween the kingdom and india. in newthank you so much, delhi, covering the energy forum for us. singapore's central bank forecasted by the majority of analysts, to tighten monetary policy this week. let's get to southeast asia where michelle has more out of singapore. u.s.-tradese skirmishes potentially flowing onto regional trade? how does it impact to them when they make their decision friday? u.s.-china trade skirmishes have stolen headlines over the past couple weeks. that is a concern for a small, open economy like singapore, trade reliant. they continue to watch this closely. --doubt the number correct number crunchers at mas are looking at this. different threats going back-and-forth. when we have also heard from singapore officials over the past couple weeks, including the board chairman, is that this could end in a positive way, maybe the global trade framework has evolved for the better. there is still a lot to be decided, a lot of the threats not borne out yet. really look at

among the most important things, how heavy this new tax regime is that saudi arabia has imposed on aramcowho are contemplating buying this company will look at how much they will have to share this gusher of money with the saudi government. >> one of the biggest shareholders of cbs has written to the company's board saying they should only proceed with a deal with viacom if certain terms can be agreed on. tell us a little more about what is up in the air here. >> it is a fairly scathing letter where they have a laundry list of things they think are problematic with this potential cbs/viacom merger. and specifically they say he will be a dictator here at your peril, even though the shareholders do not have huge voting power. they have 80% across the two companies. the shareholder is saying really you need to recognize there are a lot of very interested economic shareholders here who should be given some say in any transaction. >> ieg, the owner of british airways, has bought a stake in norwegian airways and is considering a full offer, sending shares into the region. why now? >> looking at

when we go back to the aramco ipo, which is a huge event coming up, how much easier will it be to getee the kind of price action that maybe we would get if we break north of $73? will: one thing that was clear from the aramco numbers published on friday, given the tax regime put on the company, they will need much higher oil prices. are's -- there are two things fundamental to the market. one is saudi policy. we think they are headed towards $80. it's interesting that on its current target, opec has done its job. you could see the market fundamentally tighten a lot for the second half of the year. the other thing people of the focused on is iran and american policy towards the country. venezuela as well, collapsing fast. there are lots of fundamental reasons why people might be bullish about crude right now. guy mentioned the rig count and i want to highlight this chart that shows the power of the bloomberg in a great way. this is available to any viewers who have a bloomberg. the blue line, the bars, show you the rig count change. the white line shows you the total. as you can see, w

saudi aramco surprising the market today, raising its crude pricing to market for asia to make.eff, how tight are we? jeff: demand. when you look at demand globally right now, it is tracking 1.9 million barrels per day. our expectations are 1.85 million. this is consistent with where we are in the economic cycle and you should we surprised by it. when we talk about commodities as an asset class, it goes to the cyclicality of where we are in the business cycle. alix: do you agree? john: i do. we are exiting a period that is normally one of the weakest for oil. we have seen inventories declining for the first few months of the year, supported in part by what jeff mentioned, demand in the china, u.s. areas in particular. and also some specific supply outages. venezuela is declining. iranian crude production dipped a bit. in normally what is a decently week. ak period. and you had a bullish outlook, you are at $82.50 for each months? and john -- it has been a busy day. john: it has. john: as an investor in this space, we are hesitant to assign a specific rice target. -- price target

stockad of saudi arabia's index says it's almost ready for the aramco ipo.rg was told that it will be good to go on the listing, whether this year or next. >> the saudi market is ready. whether it will come this year or later, that is a decision by the government. the saudi stock exchange is making all necessary changes to be ready this year, by actually the beginning of the second half. regardless of when the decision that will be made. reporter: global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. find more stories on the bloomberg. checking in on the markets here in asia, it is pretty green when you look at the world map function. japan and australia closing out the session. the nikkei up by half of 1%. it really has been hong kong leading the gains in the region. a big rise coming through in health care players. hong kong stocks headed to their month.y in almost a investors are piling into a lot of stocks that have been beaten down over these tit-for-tat trade concerns. the cfitrade though, trade 300

this is strategic for saudi aramco.king to invest in refineries in asia to shore up their market share. it is a megaphone refinery here. -- it is a mega refinery here. billion.th $4 saudi aramco is taking half of that on. they're looking at a foreign investor to invest in this. they have edged out india's top supplier. it is key for them to maintain its relationship with india, which is the largest consumer in the world, imports about 80% of their oil. these two ministers were sitting side-by-side, and there was a great bloomberg exclusive saying how the saudi's are looking to target $80 per barrel. i spoke to the indian oil minister yesterday, and it is a $30 gap what he is looking for. >> we do not see any reason why it should be so high. i would be more than happy if the price is around 50 plus. annmarie: india is looking to get what they can, the cheapest arsenal price. right now, it is trading in the middle at 70. if: i'm curious to know you're hearing what is happening in the markets regarding the syria story. the

it is an important deal for aramco.ng to shore up refineries in asia as part of their market share strategy. in aare taking a 50% stake refinery on india's west coast that produces 1.2 million barrels per day. part of the 50% stake saudi to bring othered investors internationally. it is a key deal that is on the sidelines of the iif. the --modi spoke, in india is a huge driver, consumption in india is going to be 4% over the next 25 years. india brings in 80%. the import 80%, so they are a huge player on the consumer side. nejra: one of the reasons you are there, you spoke to the indian oil minister about the saudi's probably wanting $80 oil . what is the india target? he is looking for a price target $30 loader than 80. take a listen. >> it will be so high. i will be more than happy if the price is around 50 plus. will not i'm sure they talk about the price publicly, but it would not surprise me if the indian oil minister spoke to his counterpart about the fact that the opec deal has boosted global prices. what is next

what question do you get the ont from investors, isn't saudi aramco or opec related? excitement about the vision in 2030. leaders, investors, and the global community, and the media around us are excited. wherever we go, they are trying to understand the vision and destination and the way we are doing it. and the speed with which decisions are being made is also exhilarating to us within the government and their partners. so a lot of deals have been initiated. a lot of discussions have been fruitful in terms of realizing elements of vision 2030. like you say, aramco is the big elephant in the room, so wherever we go, it has come up and we assure people that we are and thatand on target company shares will be listed and will be listed international investors will be the biggest participants. francine: this is saudi arabia or elsewhere? >> saudi arabia for sure will be the anchor exchange, and we are actively considering a number of exchanges. we will let you know when we alsoe and the time it will our perspective because we want to make sure the markets are ready --bes

eighty three dollars a barrel to balance the budget and it wants to give a boost to its oil giant aramco before a widely anticipated public stock sale a deal between saudi arabia and russia to limit global supply to one point eight million barrels a day has worked the world is no longer drowning in oil but the fear among other producers is that high oil prices will slow off the delicate balance of supply and demand and drive up u.s. shale production or market watchers are also waiting to see if the u.s. will rip up the nuclear deal with iran and bring back sanctions next month and finally jordan is driving into the future german companies investing in charging stations for electric cars across the country and since jordan doesn't produce oil there's good reason to move away from fuel burning cars the touch of a name reports. the engine hardly makes a sound and that can mean hashim do saying often forgets to turn off the ignition he admits he's parked and walked off with the car still running but that quiet and not having to fill up are two of the reasons the college student loves driving

something the saudis will be chasing if a plan to list part of the world's biggest oil company saudi aramco goes ahead. and you may have seen some headlines this week about the world's biggest ever solar project saudi arabia and japan softbank signed up to a two hundred billion dollars solar mega plan it will feature the biggest battery ever made and networks of solar panels across the saudi arabian desert and several analysts are caution the current agreement is not binding and could be revised now anger is growing from some consumers in somalia over the rising cost of shopping and eating out and because of the first five percent sales tax in nearly thirty years the government says the levy is crucial for somalia's economic recovery mohamed atta reports from mogadishu. we're going to shoes leave the beach is a sign of somalia's growing sense of optimism at its coffers with shaded table sit clients mainly middle mogadishu's welfare elite sipping expensive coffee but these days they're having to pay more for their food and drinks the government has just introduced a five percent sales tax fo

named newi aramco has international board members as it moves toward a record public offering.hairman and tosses -- tops the list of directors. cornerstone is trying to aim it away from fossil feels. -- fossil fuels. half aia suspends billion aussie dollar's. it faces challenges from climate change, agricultural runoff, and coral eating starfish. --ding will improve quality water quality and encourage see management and coastal cleanup campaigns. avengers film has kicked off the summer movie season with the biggest local debut in history. $630ity war right in million worldwide, in which $250 million came in the u.s. and canada. it's notable because it has yet to open in china, the second-biggest docs office in the world. it will be in theaters there may 11. global news 24 hours a day on tv and tic-toc, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. zdv shrugged off its seven-year tech than in the u.s. and reported a surge in earnings. earnings butyed said it's too soon for an accurate and comprehensive assessmen

something the saudis will be chasing if a plan to list part of the world's biggest oil company saudi aramco goes ahead and you may have seen some headlines this week about the world's biggest ever solar project saudi arabia and japan softbank signed up to a two hundred billion dollars solar mega plan it will feature the biggest battery ever made and networks of solar panels across the saudi arabian desert and several analysts are cautioned the current agreement is not binding and could be revised now anger is growing from some consumers in somalia over the rising cost of shopping and eating out and because of the first five percent sales tax in nearly thirty years the government says the levy is crucial for somalia's economic recovery mohamed atta reports from mogadishu. we're going to shoes leave the beach is a sign of somalia's growing sense of optimism at its coffers with shaded table sit clients mainly middle mogadishu's welfare elite sipping expensive coffee but these days they're having to pay more for their food and drinks the government has just introduced a five percent sales tax f

aramco has made new international board members and -- in what could be a record international publicing. aramco ipo is the cornerstone of saudi arabia's planned a transformation away from reliance on fossil fuels. up next, t-mobile concludes a 26 of merger talks, with billion dollar deal. we will dive into that, next. this is bloomberg. ♪ ♪ yvonne: good morning, 7:30 in the city now in hong kong. pretty slow going. this is a holiday on tuesday, labor day, so some slowness with the market today. we are moments away from the open. doldrums i guess. for those you're not off today. 7:30 p.m. sunday in new york where markets on friday closed pretty much mixed, but you can see the s&p checking higher -- taking higher. i am betty lou in new york. yvonne: i am yvonne man. you are watching daybreak asia. let's get to first word news now. ramy: thank you and good morning. north korea says it will invite international observers to witness of the decommissioning of the nuclear test site. the statement comes after friday's historic summit and the head of an anticipated meeting between kim jong-un

the saudis the saudis need that eighty dollar a barrel level their government budget demands at the aramco i.p.o. really will require that but on the other side you've got say india's oil minister you've got your on's oil minister talking about seventy dollars a barrel so i think the saudis are going to do their best a job on its eighty and i think you're going to see iran in india trying to pull the reins back on that the india story is one that not enough people may be looking at and that is they're the third largest oil consumer the saudis have been have lost a lot of market share to russia providing china and india so i think the indiana oil minister's comments at seventy dollars could be a whole lot more have a whole lot more punch than people thought and raji do you think that the production cuts in place by opec and russia primarily but some others other than opec is going to are going to stay in place i know there's an opec meeting coming up in in june what do you anticipate. i think that the production cuts will likely still have high compliance and in that june meeting i think yo

aramco will be based on maintaining the so-called obsession -- recessions.clear how the country will preserve its historic role in the world oil markets and how much influence the saudi royal family will continue to exert over its most prized asset. on the read more bloomberg. time for the bloomberg business flash. a look at the business stories in the news now. tim cook is meeting with president trump in the oval office. cook has urged china and the u.s. to settle their trade differences. the decision to impose tariffs on chinese goods has led to tension which could affect apple's business and asia. and better times in the grasp of energy companies. since 2014.tire that is an indication of what companies reported this week. amazon is promising to entertain more children. plus they will have an echo. speaker control for children. they will encourage children to say please when asking alexa questions. that is the bloomberg business flash. vonnie: time of the stock of the hour. twitter. shares have reversed and are no sharply lower after reporting first-quarte

launched a drone strike on one of saudi arabia's oil facilities the target was the oil giant saudi aramco space in just an province the company though says its facilities they're operating normally and safely. me and mars army has sentenced seven soldiers to ten years each for their involvement in the killing of ten men during a military crackdown on revenge of muslims the military says the soldiers joined police and buddhist villages in the killings in hind state last september the animals army has been accused of carrying out ethnic cleansing i mean while a court in myanmar has refused to drop a case against two reuters journalists accused of obtaining secret government papers on the crackdown while alone and chore suit who were arrested in december they could face charges under me and miles official secrets which carry a prison sentence of up to fourteen years. he was out of that i'm not happy at all the men who carried out the killings were only sentenced to ten years do you think that's fair to them in any yellow i would like to ask the government does the syncing of the murder is fi

aramco lifted the official price by $.10 a barrel.k said refiners and traders were anticipating a $.60 a barrel decrease. former head of sales for bitcoin exchange says he is no longer a believer. the technology is here to stay, but bitcoin may have trouble you evolving and keeping up. he says he does not own any bitcoin anti-think its main untested.reum is too he filed for bankruptcy after millions of bitcoins meant -- went missing. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney collins. this is bloomberg. ♪ betty: we are getting samsung earnings. for the first quarter, operating profit at 15.6 won. almost double what we saw in the first quarter of last year. a huge rise. the sale ofng memory chips. demand for memory chips has juiced its profits. won, below0 trillion what analysts estimated. that signals samsung has not only been doing well in terms of its memory chip business, but also doing well at cost-cutting. it appears they continue to company andt of the

want the higher price to taper government spending and support the valuation of oil jim -- oil giant aramco the two russians portion by a nerve agent -- poisoned by a nerve agent has been released from the hospital. her father remains hospitalized. that -- proving improving rapidly. russia has been accused of being behind the attack. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz. --s is bloomberg very bloomberg. raided the agents presidents private lawyer. he lashed out. he said "it is a disgraceful situation. italy which can't and an attack on our country and an attack on what we all stand for." we are joined by kevin cirilli, bloomberg's chief correspondent on washington -- in washington. with a keyoke senator before the mark zuckerberg testimony. kevin: i just spoke with senator kennedy on what type of regulation potentially could be in the pipeline for facebook as well as other big tech companies. he is a republican and is on the committee that will hear from mark zuckerberg later the second. i will let you li

on one of saudi arabia's oil facilities according to the group the target was the oil giant saudi aramco is based in the province the company later said is facilities there were operating normally and safely. least twenty people have been killed during an attempted prison break in northern brazil it began when gunmen attacked the perimeter wall of the jail in the lane they tried to help inmates escape while exchanging fire with police and guards many of those who died were part of the group that stage the attack. argentina's congress has started public hearings on whether to legalize abortion a growing demand for changes in the law has led the conservative president maurice your mockery to soften his anti abortion stance washings are currently legal if the mother's life or health is a risk and when the pregnancy is the result of rape there is a ball reports from one of cyrus. it's a debate that divides this country deeply and that's why on tuesday hundreds of people took to the streets to make their voices heard will not join an obvious says that abortion needs to be legalized argentina