Exchange, we bring a market moving news from around the world. Kong ifus from hong enda curran, we have Annmarie Hordern and emma chandra, and Michael Mckee joining us in new york. I want to show the slowdown. Bloombergs enda curran has more. Enda . Enda i think it was quite weak across the board, alex. The worst single month meeting retail002, which saw the sales side of things confirming that even though a lot of it was due to the slowdown in the car market, the auto market, there is a feeling that consumers are starting to track as well. The activeixed, investors side of it, we saw that lacking, pretty soft reading, setting up the economy for a pretty slow in to the year. Putting pressure on the government to respond. Alix thanks so much, enda curran come in hong kong. Saudi Oil Facilities were attacked. Annmarie hordern have the latest. Tomarie that is right here 5 of global supply, 5. 7 Million Barrels a day, but half of the kingdoms net exports. The biggest infrastructure that d was theke facility that is the heart of the Saudi Oil Production and the heart of the exports. Most saudi oil goes through this is silly, and that is what you see prices jump today. Biggest intraday we are seeing on brent this morning, and it is moving equities as well. Oil and gas stocks are higher in europe and likely to be higher in the u. S. The big question now, alix, is when we will see saudi return to full capacity. The big question for the market and the kingdoms customers around the world is when will we be at full capacity . Alix and when will we see a strategic release of stockpiles . Here is what the head of opec had to say. This issue will be a of not onlyecision the opec realm but the opec plus. Moment toature at the begin to contemplate on what will be done in terms of volume and when. Alix annemarie, much more sanguine than what the markets are saying. Annmarie yes, and just last week, we were talking about when will opec have to cut deeper . The markets were so focused on china, the trade war, and what demand me and him and now the market is currently focused on well, does opec need to boost production . As he said, it is premature. Saturday, saudi and aramco said they would update. Hopefully we will hear from them today. But countries like nigeria, thatries like iraq, promise they will comply, will it be more lenient for them . What we have to see them possibly boost production . Joiningnmarie hordern us there. The biggest intraday gain ever when it comes to brent. Bloombergs emma chandra keeping everything in the markets. Emma . Emma you said it, the biggest intraday jump for brent, recently serving about 71 a barrel. Good 8 to 9 when we look at brent, the biggest intraday move in about three years. We have seen similar moves for wti as well. There is no surprise this is obviously having an impact on Energy Stocks, too. Here in europe, we are looking at a negative day overall. It is the oil and gas sector rising some 2. 7 , the biggest gain since earlier this year, and it is the emp companies within that posting the biggest gains. If you look at the premarket in the u. S. , we see similar moves there, oil and gas leading the way. Also oil and gas some of the best performers on a percentage basis. They are rising significantly this morning. Alix bloombergs emma chandra joining us from london. Thank you so much. The fed meets this week with other Central Banks like the boe and doj. Mckee hass michael that. Beginning with the surge in oil, what does it mean on an economic level . Michael you asked the same questions as the oil industry and stock analysts. How much oil will be taken off the market, and for how long . It is much less than we used to, because we use much less oil than we used to on a per capita basis. We are also worth watching inflation, because as you can see in this chart, oil does have a relationship to inflation, even core prices, because so much oil is used in the manufacture of goods and the transport of goods. Take a look at the right hand side there, the oil price moving, the big as it is on a day, barely registered. It will take some time and a bigger move than that to get into the economy. Alix in the meantime, we have the big three Central Banks meeting. Do they follow the ecb . Michael everyone will be following the fed at this point. On track for a quarterpoint cut. It is not what they say they will do but what they will do next. Everybody wants to know if these that is going to continue cutting rates Going Forward. The bank of japan has to follow the fed. Will the fed affect the markets . Bank of england, how can they move . They do not know what is going on with brexit at this point. No move forecast there. One of the biggest moves will be the Swiss National bank. Ecb. Have got to follow the it puts more pressure on ecb economy, swiss economy, alix. Alix thank you so much, Michael Mckee. British Prime MinisterBoris Johnson meeting with the own code younger with john carter loo Jeanclaude Juncker. Well, we are cautious, cautious. Stalled on have been the contentious issue of the irish border backstop. Johnson planning to tell juncker he will not talk if they are not productive. Their lunch, snail, famine, and shes. I just hope they are not salmon, and cheese. I just hope they are not all mashed together. This is bloomberg. This is bloomberg. Condo for bloomberg first take, time now for bloomberg first take. Arry and Tracy Alloway with benjamin cignarella. The news has been all morning. Ben, youre a traitor, and last night, we started trading futures. What you do today at 7 10 . One thing the traders are watching very carefully, talks are coming back down, but this is not the first time it happened. They are threatening to happen again to it i think the markets are way too complacent. They are trying to sort out where you stand on this, because, look, it is not going to happen again tonight, but it will happen again, and how do you prepare for this Going Forward . It will be a big sea change in the shift when you look at emerging markets and developed countries. Is one of myat takeaways third there has to be massive defensive on all the defenses and saudi arabia, particularly, the ones that are hit. Is it a blip in the missiledefense system, or this is a very sophisticated attack, which leads to more issues. Note, real that quick a my buddy of mine said the same thing, when you travel to saudi arabia, you think wellcrafted, wellprepared, it is just not that. It is easier than you think. Tracy for sure. The sophistication of the attacks will be under scrutiny, but i think at a minimum, this changes the longterm potential for saudi arabia. Saudi arabia was always the worlds swing producer, and even though we talk about geopolitical instability in that region, Saudi Arabia Oil assets were always considered stable. All of this changes as of today, and you will get geopolitical intopremiums built back the market, but from a saudi arabia perspective, what could disastrous as this of us aspire start thinking, oh, we need to ramp up our own means and source from elsewhere. Alix iran . Like, where are they going to source it from. Barry what is your take on all the news, . Shale well, first of all, fundamentally changed the elasticity of supply, right . I mean, saudi arabias ability to be a swing producer has been mitigated, to a large extent, by all of that. Oilwhen you think about an price supply chart like this, it is actually disinflationary, and i have been writing a lot about how actually you had a changing mix of growth this year away from investment, toward consumption, you are finally starting to see what chair powell called the fake heartbeat of the phillips curve, ppi has been picking up, so you start to get this cost push inflation. This actually works in the other direction could although it looks inflationary, it actually is disinflationary, just like tariffs are. I think it gives the fed a little more room to cut this week, but i have been arguing that you probably should get a rally in Energy Stocks due to some cooling of the trade tension. It kind of works in the same direction, so while i think the tendency is going to be to say no, do not chase the energy stop today, if the trade tensions fall further, and they really do need to, at this point, if President Trump goes much further with that, he is going to lose the election, right . I think there is a recognition that the economy is vulnerable. Energy stocks have been absolutely funneled humble. Mmeled. Wo that opu alix to that point, Energy Stocks, they will look somewhere else. Hopefully they will come online. Tracy the irony is the market, when it is trying to ascertain how tightly oil market actually is is of course relying on saudi arabias own published figures, and saudi arabia has been quite keen on saying it is in full compliance with the opec agreement. Now we will see is the published figures about stockpiles are actually true. Are they as low as they claim them to be . Or are we suddenly going to discover a bunch of extra barrels out in the desert . Demand i do not think has been soft as the market has been discounting, either. Some softeningad of growth in demand in china, but not really hit the demand. By the way, the same thing happened in 1998, in 2014 through 2016. You slowed the growth demand. You had those precipitous declines in the price of oil was because of, you know, the supply check. Building up 4 million, 5 Million Barrels over the course of a few years, and market got worried about demand. Prices came off. I do not think demand is that weak. Demand numbers for china in august were pretty ok. Vincent you brought up a good point earlier about politics and the elections, and when the president comes out and says locked and loaded, i am concerned about, with the complacency of markets, are we going to pin this on iran . Does russia have something to do with this, being an ally of iranians . Unitedreaction of the states and International Community i think is going to be very significant in assets Going Forward. Alix it is so hard to hedge, right . If you hedge any political risk, you did not get paid. Vincent no. Alix as a traitor, how do you look at that . Barry you do not hedge the political risks. You hedge the assets. Last week, i was starting to get the sense that the rally in the dollar was over could you could look at emergingmarket currencies, perhaps capture some yield there, as you saw u. S. Rates coming down. When u. S. Rates pop back up again, you see a situation like this. Maybe emerging markets are attractive once again. It is a very confusing mix. Barry here is something for you to think about is the west dollar becoming a petrol currency. Vincent a petrol currency. Barry that would change a lot of relationships with emerging markets in particular. If you look at the 1970s, 1980s, 1990s, the 2000s, 2010s, the strong oil decades were the weaker dollar decades. That was the biggest source of our current account deficits. That is no longer the case, so if you switch that on its head, think about places like india, that run a current account deficits, and if the dollar were to rise when Oil Prices Went up vincent india is one of the economies right. That is it was disrupt a whole series of correlations and relationships. Alix so is it . Barry it could very well be we are moving that direction for sure. The history of this is pretty profound, right . Because the single factor that drove our current account deficit from 1 , where it was from world war ii all the way through the middle 1960s, was when we started Running Energy trade deficit. And then we had the big deficits in the 1970s when the dollar was decidedly weak. That was finding of work i did black rock back in 2010, what does the shale revolution mean . At that point commitment of the dollar was going to have a big rally when oil prices collapse, but i no longer think that is the case as we go to Energy Balance and net energy surplus, we become somewhat of a petrodollar currency, and that is a sea change. Tracy but it almost does not matter if the dollar is a petrol or not. Safe haven balance of risk off. We have seen that continuously over the past couple of years where if something happens in current market, we see that with trade, and what is interesting now is we see a bunch of people in the Global Markets and among Central Banks talking about how to shift the currency away from the dollar so thiswe start to decrease barry that was the best thing at jackson hole, christian paper, how he went through the dollar making of the safe assets world, the Global Financial crisis, so it has become even more of a safe haven currency. I suspect that some point there will be a currency regime agreement with the europeans and the eu such that there is a pseudopeg between the two, which would allow the euro to become a bit more and take some of the pressure off the u. S. Vincent i think the euro needs to find his legs first. Barry i agree. Vincent theres a lot of political risk. What is going to happen with the u. K. , italy . I would not look at the euro as a safe haven e. M. I agree. I was not barry i agree. I was not implying when we get to the next significant Global Financial crisis, the dollar will have such a move that there will have to be some sort of an agreement to mitigate some of the pressure. It cannot be the only source. When those countries run a current account, surplus, you think about the ecb buying more than 100 of government securities, there is only one place for the money to go. Vincent when you talk about Central Banks, i think this is the biggest risk for central bankers, to get the kind of inflation they dont want. It is not controllable, it is out of their reach. All they could do is try to raise rates to push up against it, but it is the wrong kind of inflation. It is not that demand pull that they like to see that shows really good, strong, economic growth. It is the kind of underlying pangs that we did see in the 1970s, the beta the existence of central bankers. Alix all right, we have to leave it there, Tracy Alloway and vincent cignarella, thank you, guys, barry knapp of ironsides is staying with us. Run the chart that bloomberg gtb go. This is bloomberg. This is bloomberg. Viviana this is bloomberg daybreak. I am Viviana Hurtado with your Bloomberg Business flash. Charges against j. P. Morgan officials after an investigation into rigging Precious Metals markets. Bloomberg has learned the government is looking to charge people higher up the chain at the bank, getting help from at least two jpmorgan traders who pleaded guilty. Another setback for the Hong Kong Exchanges unsolicited in the billion dollars takeover for the London Stock Exchange group. Praisingfficial daily the rejection of the bed. One of the reasons, it says, current protests are prompting persistent worries about hong kong. China controls about half of the forces on the hong kong exchange. Purdue pharma filing for bankruptcy to protect itself from more than 2000 lawsuits accusing it of fueling the opioid epidemic. The painkiller oxycontin, valued at more than 10 billion, purdues owners are the Sackler Family. They would hand over the company to a trust controlled by the state, cities, and counties that have sued the company. That is your Bloomberg Business flash. Alix . Alix thank you. What was your take away from the headlines yesterday . Guest i think we know this coming for a long time here we have seen the sacklers in talks for a wild. What is the right amount, how much it should the sacklers pay, how much of this should come from the company, or was somebody going to try to drive the company into something more dramatic it appears to be heading toward a resolution. Weo not think this filing have seen is by any stretch of the imagination the end of this discussion, and it will probably be a long discussion in Bankruptcy Court over what exactly happens with these assets, if the proposal goes ahead. Alix and what is the point for the other players . Drew i think there is a lot of discussion right now about how much you can extrapolate. I think purdue holds a special place in the popular and legal imagination of a lot of people who say these are the guys who helped create the Opioid Crisis, and the sacklers are, in particular for some people, kind of the family village behind this, and so on family villains behind us, and so on and so forth it is difficult to read through what this means. Clearly some would like to see the company disappear. Obviously they will have to rely , continue to operate on generous cash to repay the settlement for years and years. I would say it is a little tough to extrapolate exactly what it means. Proceedings,. T central bankruptcy, everyone is negotiating. Each company will be assigned a different amount of liability. If it is before, maybe the 10 billion number is scary for a lot of folks. I am sure we will see some reactions to that in the market today, but i think it is tough to get an exact read on what this means. Alix j j, they sold the least, right . But they are getting penalized, in some ways, the most. Were they did, but they also responsible for manufacturing a lot of raw ingredients in opioid spirit that is the oklahoma opioids. That is the case in the oklahoma case that we saw a wrap up. It is going to be a lot to figure out in the coming weeks and months. Alix definitely watching as we head into the open. Bloombergs drew armstrong, thank you so much good our top story of the day, oil jumping the most in one day. With a