saudi aramco takes a 25% stake in sempra. i'm alix steel. welcome to bloomberg "commodities edge," 30 minutes focused on the companies, physical assets, and the trading behind the hottest commodities with the smartest voices in the business. first, we kick it off with spot on, the analyst and trader take on our big story. joining me is the chief commodities of economist for intel stone. ag and weather. the white house unveiling and a package which could be $16 billion in favor soybean farmers. is this going to be enough? >> i think it will be a big shot in the arm. whether it's enough depends on the details we get on the county payment rate. they were more creative than i expected. but certainly looks positive. the one question mark is what about the acres planted? looks to me like they can allow for cover crops to be in, since that is in the list of crops. it doesn't necessarily incentivize planting corn or soybeans, although farmers will do all they can to grow those crops. alix: the other question that is there, will it make up the losses

is vying for that business saudi aramco one hundred and eleven billion dollars in net income last year versus let's look at us shell producers negative six point six nine billion dollars now that's in a country with the reserve currency the u.s. dollar we can print as many much dollars as we want and give them as zero percent interest rate to investors to pension funds to invest in the shale producers in places like oklahoma texas with population at like twenty people per square mile versus in the united kingdom you have over two hundred people per square mile so i want to be clear fracking is a bit of a ponzi scheme and that their money you borrow to frack can never be paid back by what you're taking out of the ground as a frack or because it's cash flow negative in the u.s. we don't have environmental regulations so if they can't earn money with no environmental regulation. it's free money. in the united kingdom they won't make money so just on the pure money and maybe you want it on other reasons you know national security interests and not importing oil whatever but you know the un

saudi aramco takes a 25% stake in sempra. i'm alix steel.me to bloomberg "commodities edge," 30 minutes focused on thep

to good for good you have gotten back up on banging in saudi aramco to death tonight but the laughing had come out of. my head up and under 89 feet. where coming back let me 30. caught sending me after i got aggregate get caught south and said you had busted a deal getting money to. buy the grassroots model i get. got don't resent it depends. obvious. who. helped him. in denmark and said so just months but it got my. game. so this month. somebody got my hip. hop on have no deal here going to have been. sent by my socialist mind. that is that it deserves. because i get sad i'm bored didn't eat any but come here got sad one by to give a big hive in mumbai. if. if. we have a me to. recommend him and i come home and i'm going to eat i mean my lady that i had no clue who. had the move to get me and the last one to that must have been. good and dismiss me they hit him with an apple eco friendly and. i was and something that i knew that. i knew that particular i need and i see. now you've been traveling. and. getting i need i is receding when i thought he would have got home and work and tha

development of what experts in organizations call the world's worst humanitarian crisis officials and saudi aramco said that the east west pipeline was temporarily shut off after the attack but supplies of oil and gas were not affected this marks the 2nd incident in recent days of a confirmed or alleged attack on saudi oil infrastructure. and for a closer look at global oil prices in the wake of this attack we're happy to welcome david mccallum any of mcalary financial david welcome to the show. thank you daniel good to be with you now 1st david markets are absorbing the saudi claims of attacks in saudi.

development of what experts in organizations call the world's worst humanitarian crisis officials at saudi aramco said that the east west pipeline was temporarily shut off after the attack but supplies of oil and gas were not affected this marks the 2nd incident in recent days of a confirmed or alleged attack on saudi oil infrastructure. and for a closer look at global oil prices in the wake of just a tad we're happy to welcome david mccallum any new financial david welcome to the show. thank you daniel good to be with you now 1st david markets are absorbing the saudi claims of attacks and sabotage right now in the claim of responsibility from the rebels but before that there was the problem of the collapse of u.s. china trade talks what about the effect of that it's already having on the markets is that still resonating and should we expect more gyrations in markets as the u.s. and china jockey for position in the wake of that breakdown. i think the trade talks are a very significant contributor to volatility in the markets certainly you see some of that in the oil markets but the gold market th

with breaking news this half hour coming to us out of saudi arabia and the energy minister says saudi aramco has stopped pumping oil through a major pipeline after a drone attack the east west pipeline a 1000 kilometers north of yemen was reportedly struck by 2 drones saudi arabia says the strikes were carried out by who see rebels in yemen only other hoofy said they were responsible for 7 drone attacks on the border with saudi arabia. let's talk to experts and various craig who joins us on the line to put that into context for us and various welcome back to al-jazeera what's your reading of this. i'm going to reserve a very rare. serious escalation amid already very heightened tensions in the gulf particularly with the hawkish family and hearing in camber saudi arabia. and israel also trying to build a cactus belly for the last 6 couple months trying to stimulate or trying to trigger someone the white house to make a decision to escalate the situation with iran and in this conflict that with these operate as a surrogate i mean they are standalone entity but they operate as a surrogate of th

shery ahn: the world's leading world exporter has begun dealing east.l in the middle saudi aramco hased operating as it moves further into its trading business. its expansion plan would push it of globalop tier traders. it has a branch in singapore and is considering opening an office in europe. shares fell the most in two years after a u.s. judge ruled the company violated by abusing its position in the markets. it could force qualcomm to renegotiate its licenses. how big of a blow with this be and how could affect qualcomm's bottom line? some kind of sideline where they get licensing revenue here and there. this is a fundamental business for qualcomm. this is multiple billions of dollars a year in licensing income. that is high-margin income. upheld,judgment is there could be lots of byegotiations, and concerns investors that qualcomm will be getting a lot less of this money. paul: qualcomm signaling strong they it disagrees -- strongly it disagrees and intends to appeal. how will that process work and what are the chances of getting a reversal of this decision? very strongly agains

saudi aramco takes a 25% stake in sempra. i'm alix steel. welcome to bloomberg "commodie e

it just inked a 20 year deal with saudi aramco, which will buy the liquid natural gas from sempra.t has a couple different lng names that you should be considered for your portfolio. great to have you. >> good to see you. liz: it would seem obvious, sempra, they're right there with the lng terminal. you say there are plays that you put ahead of that. >> that deal they inked with the saudis is phenomenal. after firmmation this is long-term play. we own sempra it is a great name. they are regulated utilities. they have the lng export element. if you want to focus on that, want a pure play exporting lng around the world it is probably cheneir which is a great stock. they let the saudis take equity interest in the deal. the saudis will own 25% of that new facility. but cheniere has three to four year lead on all the competition. their first boat with ln went out in 2016. they're wade ahead of the competition. they don't need equity interest because they're generating cash flow. liz: this is one year picture. you are kind of right where you started? >> you are but if you look at future

saudi aramco is taking a 25% stake in the plant.to me is there are a ton of lng jects waiting for a final investment decision. definitely -- there is definitely a cry from the hopefuls, pick me. saudi arabia is huge in that. david: our third story, brooke sutherland is going to tell us about qualcomm. there is a big patent ruling. brooke: the company has really been mired in antitrust litigation. of course, that lawsuit with apple over its royalty business. it charges royalties for its technology, which underlies most modern smartphones. it did settle with apple, which drove up qualcomm shares. it turns out a judge is siding with the ftc, saying that qualcomm unfairly competed and charged excessive royalties, and that it needs to change its ways. this is really interesting because the doj actually tried to intervene in this case and said we don't really want to harsh penalties on -- want too harsh penalties on qualcomm because the country is trying to hold up qualcomm as this harold d of 5g tohis heral get them to turn away from hua

will be a different kind of without aramco pumping stations were targeted in a limiting attack -- saudi aramco pumping stations were targeted in a limited attack. lastlast week --david: week we were told we were moving the aircraft carriers to the region. now it is time for the first take. we are joined by peggy collins kawa.ke last night, this is what president trump said. pres. trump: steve just got back from china. we'll let you know in about three to four weeks whether it was successful. right?er really know, but i have a feeling it is going to be very successful. david: what is successful? [laughter] peggy: i'm not sure from his perspective. a deal is what everyone is looking for because it is certainty. investors want certainty, and so do businesses in terms of trying to figure out what to spend in the year ahead for investors in terms of how to price risk. you trade thato headline that basically says nothing? i believe we had a story about a year ago saying that everything in trump's administration is two weeks away. the fact that this is getting traded probably tells you market sentime

on the pipeline near riyadh a 1000 kilometers north of yemen the pipeline is owned by the saudi oil giant aramco which says it's halted supply cornelia my as an economist specializing in the oil and gas industry she doesn't believe the drone attack will have a major impact on the saudi economy. it's not that significant because you know for the next few days they can happily you know load. in 2 ships but what is significant is that the at the east to west pipeline was actually built during the iran iraq war precisely to make sure that if things going got tough and arabian sea and the and on the in the gulf of gulf and the straits of hormuz they would have another evacuation route. through. the red sea so in that sense this is one of the main arteries but i'm course very competent and they will fix the issue quickly but it is certainly optimal and it will get it will have an adverse effect on the oil price oil will go up because of the current uncertainty. so we have to see how does develops what what what worries me is that we just from the grandstanding we've now come to to actually you know ac

saudi arabia state owned energy company aramco has stopped pumping oil through a major pipeline after a drone attack the government says 2 stations were targeted on the east west pipeline if you rebels in yemen say they launched strikes toward the kingdom to stop its aggression a rebel spokesman is threatening further attacks saying that he is a pro who the journalist he says the who 3 rebels are within their right to attack saudi civilian infrastructure. sometimes. forces inside i don't follow the road has conducted many at arkansas the idea without declaring attacks they waited till the saudi deny all the saudi did not release any information about it then they use this kind of statement there and i think this is a kind of a war that we are in you have to wait to see what damage you have done inside saudi arabia and i believe in the coming hour we will know all the information about the attack we've seen that they knighted nation itself has taken saudi arabia full my list for killing children twice because saudi has threatened that they will cut the money they give into the united n

saudi arabia. you are sitting on the board of aramco, but you are also dealing with the saudis. this is a country that has serious human rights issues. of course, "the washington post" columnist khashoggi was murdered. those people are very, very much related to the government and they just recently had a mass execution of people. how do you look at yourself in the mirror and still do business with them? >> well, i'm 43 years global business. i sat through the emergence of china under ping who -- not to diminish the khashoggi incident and its severity, i don't know anything about it other than what i read, i would tell you that it was tragic, it was terrible from a human rights point of view, not a good thing and i say that in saudi arabia like i say it to you, saying it publicly. but do you remember june 4th, 1989? tiananmen square? did we all keep doing business with china? did we all figure out that it's better to be on the right side of that conversation rather than the wrong side which is do we want saudi arabia to become iraq? do we really want to see the degradation of th

nejra: what could the percentage of saudi representation within the index of a ramco ipo? aramcothe other inclusion it will be 2.8. that will be the pro forma inclusion of both segments of the saudi market. if you think aramco is depending on the ipo, if it is a hundred billion dollars, a number tossed around, you will say the weight of saudi will more than double. it will go to almost 5% or above. manus: i want you to look at this chart. you shocked and rocked our markets yesterday. wasdid not included, it wildly expected to be included. they upped foreign ownership limit. what did they do wrong? why did they not make the cut? criteriaere are a few in our methodology about inclusion in an index. the float of a company in an index. our indices are flow weighted. only shares freely available for purchase are the ones that get included in our index. two of the criteria are ownership limit, so if there are shares that are blocked from ownership by foreign investors, that needs to be excluded from the index. the second criteria which is one investors do not pay a lot of attention to

saudi arabia's state owned energy company aramco has stopped pumping oil through a major pipeline after a drone attack the government says 2 stations were targeted on the east west pipeline hoofy rebels in yemen say they launched the strikes to warn the kingdom to stop its quote aggression at least 60 people have been arrested after a wave of attacks against muslims in sri lanka one person has died all this follows last month's bombings targeting churches and hotels during easter those are your headlines the news continues here on al-jazeera after the stream stay with us. hi anthony ok and this is the stream today did the united kingdom steal the check or silence we discuss britain's occupation of the indian ocean territory if you want to join the conversation tweet us and i will do my best to include you in the . british prime minister to the final united nations ruling that britain illegally obtained a child course islands and should return the archipelago to malicious this is our duty as the dean barber explain why we're telling the islands is not that easy. in 1965 britain split the

nations that do not threaten their neighbors or spread instability or terror saudi arabia's state owned energy company aramco has stopped pumping oil through a major pipeline after a drone attack the government says 2 stations were targeted on its east west pipeline who think rebels in yemen say they launched the strikes to warn the kingdom to stop what they call its aggression there's been slow growth in china's economy in april even before high u.s. trade tariffs took effect growth slowed to 5.4 percent last month. rewind returns with updates on the best of his documentary. the moving story of 2 young girls in afghanistan. at last able to get an education after pressing taliban occupation. what has become of their tree. rewind pencils and bullets. on al-jazeera. reporting. today with their only guy under the gun like quite a. lot. of exercise on t.v. none of them are like that's prime minister scott. hello i'm richard gilbert and you're at the listening post here are some of the stories we're covering this week in india's elections one party is definitely winning the media game the trump white house is tha

on the pipeline near riyadh a 1000 kilometers north of yemen the pipeline is owned by the saudi oil giant aramco which says it's halted supply earlier i spoke to the military drone expert and u.s. army veteran bret's very covert i started by asking him who he thought was behind the attack. well barbara couldn't be more clear to me that the iranians are behind this and that they're sending a clear message in that they've basically asked their proxy group the who the rebels to step up attacks on saudi's energy infrastructure what we know from previous drone attacks from the who theses which we still at this point don't know the exact drone that was used in this attack but we can look at previous attacks where they have used basically a drone that the iranians built for them something that's known as a cost if $1.00 which they've used in at least 12 different attacks in yemen over the course of the last few years and this is a drone that has the capability of flying about 100 kilometers of range can fly up to about 200 kilometers as well but the iranians have built this drone specifically for who t

the oil tankers last month a brain bin sees a loss of also said the drone strikes on saudi state oil company aramco earlier this month were terrorist attacks him and the rebels said they were behind it they're locked in a battle with yemen with. a coalition that is facing alongside yemen's governments. we emphasize the need to exert more if it's to combat the subversive activities of extremist terrorist groups they must be addressed with all strength and firmness well the 5th of june will mark 2 years since the blockade of qatar began the booklet in countries include saudi arabia the united arab emirates by her in egypt's and others qatar of supporting what they called terrorism in the region and made a series of demands to end the crisis among them the cause and joan of al-jazeera qatar is leaders have strongly denied the accusations well lawrence wilkerson is a retired colonel he served as chief of staff for u.s. secretary of state colin powell he says the qatari prime ministers in the taishan to the summits is not a sign that the blockade will be lifted anytime soon. there is a real divide right

saudi arabia says drones attacked to pumping stations owned by aramco. the stations are linked to a giant pipeline transporting oil in the eastern sector of the country to the western coast. earlier, rebels from yemen said they used drones to attack the saudis. movey is considering a that easing tensions with the united states. bloomberg has learned that the erdogan government may delay the purchase of a missile-defense system into 2020. the u.s. is unhappy because the system was designed to shoot down american and allied aircraft. the delay could give the two countries time to work out that dispute. a powerful 7.5 magnitude earthquake struck up a new guinea -- papa new guinea. the morning center said waves could rise over six feet. global news 24 hours a day, online and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. crumpton. this is bloomberg. vonnie: it is 1:00 in washington, 6:00 in london, and 2:00 a.m. in hong kong. i'm vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters, h

saudi arabia says drones attacked two pumping stations owned by aramco. the stations are linked to a pipeline transporting oil in the eastern sector of the country to a port on the west coast. many -- yemeni officials say they used drones to attack the saudi's. has enteredgovernor the democratic primary race. there are now 22 democrats running for the white house. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. donohoe.ney this is bloomberg. vonnie: we are holding our own today. let's get a check of the markets. major indices are higher. the s&p 500 up .9%. the dow is up 1%. the nasdaq is up 1.1%. the s&p retelling index is an interesting one to look at. on the upside your ebay and expedia, amazon, all the digital players. on the downside you have target, gap, macy's, dollar tree, dollar general, all of the ones that indicate what is going on with the economy and the ones that may be hurt by china tariffs. this is bloomberg. ♪ vonnie: from new york, i am vonnie quinn. guy:

saudi arabia says drones attacked stations owned by aramco. they are linked to a giant pipeline transporting oil. rebels from yemen said they use drones. hasrnor steve bullock become the latest democratic to enter the president to raise. now 22 democrats running for president. global news, 24 hours a day, on air and on tic-toc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. leinz, this is bloomberg. . >> we've have been hearing new york fed president john williams saying tariffs are acting like a negative supply shot -- supply shock. our interview with him next. this is bloomberg. ♪ guy: live from london, i'm guy johnson. vonnie: this is bloomberg markets. let's see how they are faring after yesterday. here is abigail doolittle. >> we are seeing a bit of a rebound on this tuesday after the brutal selloff yesterday. last week, the worst week of the year. sellers in firmly control. buyers are trying to step back in. let's take a look at the s&p 500. solid gains come up six tent of 1%. not holding onto t

saudi arabia says drones attacked to pumping stations owned by aramco. ked to a giant pipeline transporting oil in the eastern sector of the country to the western coast. earlier, rebels from yemen said they used drones to attack the saudis. movey is considering a that easing tensions with the united states. bloomberg has learned that the erdogan government may delay the purchase of a missile-defense system into 2020. the u.s. is unhappy because the system was designed to shoot down american and allied aircraft. the delay could give the two countries time to work out that dispute.

more saudi arabia state owned energy company aramco says it stopped pumping oil through the pipeline that was targeted these west pipeline is 1200 kilometers long it carries crude from the main oil fields in the east to a red sea port 2 days earlier saudi arabia said 2 of its oil tankers were attacked off the coast of the u.a.e. near the port of jeddah that attack happened just outside the strait of hormuz which links oil producers in the middle east to markets around the world and even brokered talks between the rebels and government representatives are taking place in jordan the u.n. says the rebels are withdrawing from 3 major ports partly as agreed by a cease fire signed last year the redeployment of fighters began on saturday this withdrawal as part of what is known as phase one of the peace efforts to end the 4 year civil war or let's try to unravel this so let's get to sami hamdi who is editor in chief of the international interest of current affairs analysis magazine with a particular focus on the middle east joins us now via skype from london and so i mean this pipeline atta

saudi. manus: in terms of the momentum and flow of money, they have said to me the next and most important thing is the active money coming in, and maybe this sets the stage for an aramco sets the table more robustly in saudi for that story. would you agree? jaap: i think we will see active inflows, probably. will take investors an underlying position, clearly. with the way that 1.4%, they are probably keeping a slightly underway position, but when we move in august when it hits almost 3%, definitely expect emerging-market guys to be heavily underweight in the market. phase two for the market to drastically underperform other markets. nejra: let me ask for your thoughts on qatar. what is your view on valuations there? done a massive update on the market a couple of weeks back. the upside of the equation is the 10 for one stock split that is helping the retail segment. but we have seen no inflows whatsoever in the last two days from our institutional investors, and i agree with that. i think the market will start to underperform. we have seen the latest inflows because of two stocks being included in the index. we have started to see already a selloff. particularly, qat

saudi arabia accusing iran of ordering the drone attacks on the aramco oil station. be in oil? mark: you have seen a lot priced in after the move lower and now we will continue to crime higher. i would say there is another two dollars to go, specifically in brent. when you're thinking of the floating market and where the risk is, the easiest way to see that is through the financial instrument of rent. -- of brent. alix: what is interesting to me is the time spread versus the flat price. the time spread is more extensive. the flat price has had a little bit of rally but not much. mark: people are not sure what to think about going forward in terms of where are these sanctions going to be? are there going to be sanctions that can be lifted from the u.s.? what is the chinese trade war going to do to product flows, and realistically, we are coming into the summer months and driving season and we have a low refinery utilization rate and you have products continuing to dry up. there is a misunderstanding in the market as to where things will shake out as we head into the e

more on that story on bbcdotcom saudi arabia says explosive—laden drones have attacked facilities belonging to the state oil company aramco might have been behind the drones? we have seen that they have claimed responsibility and this comes two days after another kind of attack and so, if you look at where these attacks came, they are pretty strategic in terms of how oil is taken out of the country and distributed. what has the stunt to the oil price? we have seen that the price of oil has gone up and although we are hearing from officials that really no damage has been done to the ability to output oil, it is still signalling a lot more concern and a lot more instability in the region when it comes to oil especially. a big week last week, further tensions on monday, it seems like china and the us may be cooling things down. what we hearing today? the president took to his favourite social media site, twitter, and said that when the time is right we will make a deal with china. he is expected to meet with him injune injapan, but who really has the upper hand and who is going to blink first? if you look, both sites think t

his opening remarks the saudi foreign minister condemning the attack on the oil tankers last month it britain been. also said the drone strikes on sight the state oil company aramco earlier this month were terrorist attacks yemen's who see rebels said they were behind them while they're locked in a battle in yemen with they say the m.r.c. coalition that is fighting alongside yemen's governments well lawrence focus it is a retired colonel who serves as chief of staff for the u.s. secretary of state colin powell joins us now live from richmond virginia and if we could 1st focus on the fact that prime minister will be attending these meetings do you think this could be a sign of reproach moments in qatar and saudi arabia the other blockading countries . i would certainly hope so but i don't expect that because there is a real divide right now between mom had been sold mine and cutter and its leadership and that divide does not seem span of will to me by sitting down and talking about it particularly when there is divide as cause as turkish troops to be encounter has caused iran to become an even more a close colleague of carter and has more or less operated directly