yousef: thank you.'s get back to our top story. asian equities have flipped into positive territory after president trump made a bullish comment about the trade deal with china -- >> i think that we will make a great deal with china. and it has to be great, because they have drained our country. we have really helped rebuild china. they have been taking out an average of $500 billion a year. not going to happen anymore. was after sources in washington said the u.s. was preparing to slap tariffs on all chinese imports if the talks between president trump and xi do not ease the trade war. china is considering a tax cut to revive the flagging auto market hit by the trade tensions. let's get more on the story with tom mackenzie. your initial reaction to the latest measures by the chinese government, is it too late for these kinds of drip-feed approaches? tom: they are truly taking measures to cushion the blow of the trade war, and there is a lot of focus on the talks in november. if those talks lead to a fr

yousef: we still have a lot to talk about. you are sticking around. let's get you a bit of a snapshot coming up this week. a busy week. the brazilian election is one thing. agencies completing the picture of the big lenders. rate decisions from the boj and bank of england. friday, the u.s. jobs report. up next.oming italy escapes another downgrade. standard & poor's does lower the y's creditr the countries outlook. ♪ manus: petrochemical giant of saudi arabia has delivered their quarterly report. is in the business petrochemicals. much justs pretty above the estimate, $6.1 billion. of course they are subject to the bid from aramco. is the jewel hands in the chemical crown. if you go by the ceo at aramco. getting one in in terms of sales and profit. >> you have the material sector, which is whe other stocksre sabic -- performing better. trading at about 50.7% written earnings per share, you compare that to 11.3 for comparable companies. to see how the market reacts to this latest move, 6.2% on high-volume. let's get back to another important story we a

yousef: absolutely not.t is worth a second look based on the information the saudi government got from the turkish government. it is not an admission of guilt. in the past, they were saying he had left the consulate. they are taking a closer look at it with consequences if evidence emerges. tom: what is the likelihood that the corporate davos in the desert event is canceled? are we there? a lot of people thinking about that now. tom, the story of recent months of saudi arabia is one of ambition and of not moving away from target. as far as officials will be concerned, it is to persevere. you look at foreign policy over the last few months, what happened with canada, what is going on with yemen, there is a level of insistence from the government. that you arene either on board or not but this event is going forward. the bigger picture at the beginning of this process was to diversify away from oil and bring in foreign capital. tom: thank you so much. with this important breaking news. companies, including blo

we go to react and yousef -- ri yadh and yousef. what would the president say?indication on the themes the crown prince will touch upon? if you were ever unsure that the speech from a turkish president was avail threat to the crown prince of saudi arabia, they followed up just moments ago with the senior adviser to the turkish president saying that the crown prince has blood on his hands. it will be a situation of two options for the crown prince.scenario a, is that he does not address the subject. the other option is that he finds a way to address not just what happened with the journalist, but also perhaps to send the message back to turkey and the rest of the world in terms of where the saudi position is on this. the two narratives still don't a line. francine: if we don't hear from the saudi crown prince addressing this, are we expecting briefings? the international community thinks this was very poorly handled. happen again back on track to at least explain what happened or give more details? yousef: you mentioned the international community, to seven, fore

yousef: another swipe at saudi arabia. and spending surge.myworld's largest plans to slash their cash next year. ♪ yousef: oil traders began chewing

yousef gamal el-din, cohost of "daybreak." middle east and jodi schneider -- "daybreak middle east," and jodi schneider. let's talk about some of the companies we are referring to. bloomberg is part of that group. we have pulled out of the future it investment initiative as a media partner. with all of that in mind, you above $72 perg barrel. u.s. and saudi arabia really -- pompeo is heading to saudi arabia. prices are creeping higher. $100 oil is being talked about. what impact does this have in the fx space? fx strategist at ing. lots of stories in terms of political risk and commodity risk. where does this play into the commodity complex? we will talk about the havens in a moment. >> oil is exactly what we are watching, one of the four risk factors we look at in this dystopian world. you mentioned $100 per barrel oil prices. the also have rising real rates in the u.s., selloffs in global risk aversion, and you have got basically political risks. onn we look at what is going in the trade war, all of that points to a pretty b

yousef gamal el-din is on the ground in riyadh.est in terms of the president's take and it seems as if he is handed could -- to congress the responsibility for what action america takes? coffin from the united states, you have the turkish government applying pressure on the saudis. moments ago, a turkish aid said the saudi crown prince has blood on his hands. from the saudi side, they don't agree with that version. they are insisting an investigation is on the way and arrests have been made and those who have done the crimes will be held accountable. we heard from the u.s. secretary of state has waiting on the progress made from an american who -- intelligence point of view. we have identified at least some individuals responsible, including those in the intelligent services, the foreign court, the foreign court, the the royal foreign ministry, and others we expect were involved in mr. ashok he's death -- jamal khashoggi's death. we are revoking visas and other measures. we are also working with the treasury department to look at t

yousef: the dust storm in the background is a powerful symbol of the issue you have talked about.urkish narrative appears to be different and signals from the u.s. are mixed, jared downplayed theey roles of the government in the death. a lot of lack of detail by the turkish president blow this case wide open, the turkish government has been keen to get back into the regional power play so i say buckle up in the next few hours. anna: the future investment initiative is underway in riyadh with many of the a listers skipping the events. we have seen headline after headline crossing the bloomberg, names who have pulled out. what is the sentiment in regards to this event? yousef: the event is going forward as planned, organizers maintain they have enabled to draw together 100 20 speakers. you mentioned some of the business titans that have pulled to creditfrom hsbc suisse to siemens but there are some ceos who are going and that includes the ceo of total, we had some lines out from one of the most hour for in saudi arabia, speaking at a panel, and she clearly addressed the killing of t

abdul hamid yousef witnessed it. translation: i was very proud of having twins. i had them. here he was waiting for his milk bottle. this photo was about two weeks before the chemical attack. i heard the planes. i woke up. the first bomb was at 6:30am. abdul and his family left their house, unaware of what was about to unfold. translation: my wife and i were carrying our twins. this is where i left them. i ran to help people over there. abdul says he saw people dropping to the ground. translation: they were shivering and foaming at the mouth. it was terrifying. i knew then it was chemicals. sarin is 26 times more deadly than cyanide. it can kill within minutes. victims lose all control of their body and suffocate. translation: it was horrific — a day from hell. eight people died here, including my brother. a wife goes out to check on her husband and dies. then children go out to see what is happening. the whole family dies together, suffocating. more than 80 people were killed and almost 300 wounded in the attack. abdul was taken to hospital after losing consciou

yousef: that's a clear example. we talk about oil prices.are you using as an assumption for oil prices over the next year? make a lot ofi'd money. yousef: 80 - 90? >> no idea. manus: you set the numbers with bmi targets. taretwas a $100 million oget of 20 foot containers by 2020. will you make it? >> we have the capacity. manus: are you confident? >> we have the resources. i don't want to have ports empty due to a target. ports!no one wants empty the ceo of dp talking trade wars. it's not a war, anna. it's a discussion about fair trade. anna: a negotiation. he says he doesn't see a net reduction in trade on a trade war. let's remind everyone of the mliv question of the day. ther'es e's a link through the trade conversation. bcom gained yesterday despite china's selloff. we are asking you -- possiblye man who can answered that question is the portfolio manager of the natural resources team. we look at the bloomberg commodity index. warshina and trade dislocate the many runs be a pattern commodities 0-- we've had in commodities? beingre are co

yousef: oil traders began

syrian refugee children in lebanon forced out onto the streets to make a living we need omar and yousef to sell flowers just to get by there are two of the many refugee children facing abuse and violence as they struggle to help their families. i'm brian thomas thanks so much for being with us the number of people suffering from hunger worldwide is rising according to the world hunger index more than one hundred twenty four million people are currently suffering from hungary that's forty four million more than two years ago it is the african continent that suffers most the majority of the countries in africa are considered to. having serious ungar problems now there are just eight african countries where hunger and starvation are not an issue central african states are at the top of the less of countries with the highest ungar index. while outside of africa war torn yemen is one of the worst hit countries of its twenty eight million people more than eight million are on the brink of starvation and there is concern that figure could double by the end of this year. these other faces of a

yousef: the latest statement from the foreign ministry said they would hit back at any sanctions thatdi arabia. there have been a series of concentrators -- commentators speculating if saudi arabia were to do something, why don't they do something with their oil? it brings back memories of the oil embargo of 1973, people at fuel in line stations in the united states. there is now a more integrated world are it americans don't buy most of the saudi oil. it is chinese. saudi arabia plays a big role managing this, so they have responsibilities to all the stakeholders across the board. there is no clear indication this even remotely translate into policies especially as it would hit back at saudi revenues which they need critically. yvonne: we see reaction not just in the oil price but markets selloff heavily in saudi. what should investors look out for? erik: yousef: you were talking about saudi stocks and the material sectors were hit hard, petrochemical, energy, some of the key names on the equities front. retail investors are mostly pulling out money. confidence affected domestically,

joining us from riyadh is yousef gamal el-din. thank you for joining us.ines coming up. there's something else going on today. speaking todogan parliament and having words about saudi arabia. was he as harsh as we expected? most observers were expecting a bombshell and that did not materialize. were that the turkish narrative differ from the saudi version of what happened that day. maintainsh government this was a killing, it was planned in advance. it was not an accident. the question that remains unanswered is, where is the body? we will wait for more details. david: we have this odd situation developing. we had siemens say they're going to put off signing that power deal in saudi arabia. what is that about? the ceo decided he was not going to go to the conference. yousef: the conference is underway. to make arying showing that it is business as usual. latest headlines from seamen show, it is not business as usual. the detail is going to go ahead. the timing has been postponed. the optics are off. understand asian companies might be signing agreements as

yousef: the middle east, europe, and africa, accounted for about 70% of revenues.xt opportunity in terms of expansion plans? you have a healthy cash flow. you can do a bit more. invested in line with the trade. we've invested a lot in deepwater. this would give us an advantage. we need to invest more in africa . >> can you name us a few countries? >> the pacific side of latin america has more potential than the atlantic side. india has growth. growth is high. we need to penetrate more in africa. chairman ands the ceo of dp world speaking exclusively with bloomberg. next, some of the stock movers this morning, including royal mail. this is bloomberg. ♪ anna: welcome back. this is the european open. we are 44 minutes into the trading day. let's look at some of the mid-cap stocks this morning. annemarie: oil is down more than 1%. two more downgrades from rbc. 2013ow the 10 ipo price for royal mail. the economy to the downside -- ceeconomy down almost 20%. pretty dramatic. not operationally explainable. antofagasta up 2%. one of the biggest gainers on the stoxx 600. ba

yousef: escalating trade tensions way on growth. .anus: bond market bloodbath almost a trillion dollarsof its banks amid strong u.s. data and tightening monetary policy. theef: crude connection, strongest link in 15 month spirit expectations that rising oil prices will boost the gulf's largest economy manus: area manus: and we speak exclusively of dp world the ceo about th

word yousef it would look at the market? neil: i don't know if it would be 30%.stion is why. if the markets are selling off because of rates are backing up, that is one thing. if the markets are selling off in falling at the same time, you have to think about it more holistic way. it is not a 30%, 50%. i don't think about it that way. today, there was interesting nuggets and there when we given not to lower narrative and not to productivity, and to the idea that -- i think it was pushing back on what they said last september. joe: caterpillar shares are down since october 3. that is the day jay powell said there was a long week to go until neutral. is theh, in your view, marker tour more oil that we see basically throughout october a function of people coming -- turmoil that we see basically through october a function of people coming. neil: i don't have a good answer for that. where the utility stocks outperforming? you would expensive -- expect the front end to be rallying but that is not what we see. in there. hung the short end of the curve has not moved all

yousef: yeah.derway, and there are trying to make a showing that it is business as usual, here. but, as the latest headlines from siemens show, it's not business as usual at all. its $20 billion deal is going ahead here it is just the timing that has been postponed. the optics are completely off on this particular occasion, and the ceo of total is present as well, and we understand that he signed an agreement with the saudis for the asian companies represented. they might as well be signing some agreements as well. what is clear is that the european and american presence is much, much less than it was last year. you can feel that. that is what some of our colleagues have been telling us in the halls and corridors. ♪ >> china's greater bay area received a huge infrastructure boost on tuesday. the world's longest sea bridge is set to connect the former european bastions of hong kong and macau to juhai on the mainland, and it should solidify xi jingping's vision of a high-tech megalopolis. what does t

yousef: these are today's top stories. the u.s. avoids labeling china a currency manipulator. chinese stocks head deeper into a bear market. delaying the divorce. theresa may considering along brexit exit.er fed officials debate hiking into restrictive territory. yields on the 10 year creek near 2011 highs. manus: warm welcome. earning season, thursdays are busy. third-quarter sales, 3.4 2 billion. that's a nice beef there. the full-year organic growth will be at the top of the range. a proposed merger is progressing satisfactorily. ,he third-quarter intake order up 10%. 3.1 4 billion. you walk away with a very healthy perspective of what's going on, growth is going to be on the up. progress on that deal is critically important. you have a little bit of nevada's. the red headline coming through here. third quarter core eps, the number you want to look at coming in at one dollar 32. we are beating on the third quarter core eps. seeing 2018 net sales growing in the mid-single digits , before it was seeing the low mid. guidance could be lifted giving the performance in the first

yousef, bring us up-to-date with the latest. the heat is being turned to the saudi's.issued a joint statement calling for more details, saying the issue needs to be resolved. interesting to see that the turkish president is taking a bit of the lead in terms of pressing on the saudis, what a changing world we live in. >> we have identified some of the responsible -- agents responsible, who we suspect to be have -- to be involved in his death. we're taking appropriate actions, which include revoking visas and other measures. working with the treasury department to review the applicable only of these sanctions to those individuals. >> we are likely to go through a future medic in what has been a roller coaster. the first point on the agenda is going to be a briefing. officials --nce and then the crown prince is going to take the podium at the investment summit. what message does you want to's send in the world? looking, expecting to get real proof yesterday from president erdogan. though he had some strong rhetoric to share, he did not offer the solid proof that he could

yousef will be on the run in riyadh.everal companies, including bloomberg, i pulled out of the future investment initiative event being held in riyadh as media partners. bank of america and merrill lynch say we should not get too excited about this rally we saw in chinese stocks. the banks head of china strategy, who also predicted the ,quities would crash and 2015 said the recent gains were a sentiment driven short rebound that are unlikely to be sustained. continuesai composite to be one of the worst performers. joining us now to make sense of it all is stephen gallo, head of fx strategy at bm oh capital markets -- bmo capital markets. what do you make of the most recent pboc moves? what do you make of the levers that they have pulled thus far? sense,: in a very short given the space of time i have had, they are managing the economy, china to backstop growth -- trying to backstop growth. at the same time, they have also encouraged a weaker r&d. part of it -- rmb. part of the response has been to steer the rmb lower. th

yousef? this for the conference for the three days.ation and regional representation is strong. a lot of big business types from europe and the u.s. might have event, this particular and as a result, we understand from our colleagues that it is much quieter in the halls of this conference center, a lot less activity. what will be the real benchmark for investors for the success or failure in the shadow of the killing will be how many deals can be signed. tom: thank you so much. kevin cirilli is in washington. formu expect to see some of response from secretary mnuchin and sergei pompeo and the president? kevin: i would. the speech is demanding some type of white house response. it comes at a time in which there are questions in which we will takeaction against saudi individuals. he president has said that has been at odds with the senators with regards to whether that would be specific targeting with sanctions against those in saudi arabia. i was on a conference call with senator rand paul, who essentially said and really speaking out