Remain just a point or so away from reaching record high levels, and on strike. General motors seeing its first worker strike since the financial crisis and could cost the Company Millions of dollars each day it is monday, september 16th and Worldwide Exchangeegins right now. Good morning im dominic chu in for Brian Sullivan today. Energy prices are soaring with brent coming off its biggest intraday move on record. Prices right now moving to the upside you can see here wti crude up 7. 5 brent crude up almost 8 by the way, it opened up nearly just around 20 at one point here as the saudis aim to restore at least one third of their lost output by early this week Yemens Houthi rebels claimed responsibility for the attack, saying it was one of their largest attacks ever inside of the kingdom. But the u. S. Is rejecting that notion saying the scope and precision of those attacks suggest the launch was not made by the houthis but in fact, originated from iran iran rejecting those claims, calling them, quote, baseless and unacceptable President Trump, of course, tweeting, quote, there is reason to believe that we know the culprit. Are locked and loaded depending on verification but waiting to hear from the kingdom as to who they believe was the cause of the attack and under what terms we would proceed exclamation point. The president also indicating he is ready to tap the u. S. Strategic oil reserves to supply Global Markets if needed we have Global Coverage of this major story right now hadley gamble live with us in riyadh. Hadley, please, bring us up to speed on what exactly happened and what the latest developments are in the kingdom. Good morning, dom essentially we have 48 hours on from these major terror attacks on two of saudi arabias biggest Oil Facilities is the kingdom still being very, very mute. At the end of the day, all we heard is a statement from saudi aramco saying that we will provide more information and more detailed assessment after a thorough investigation that should be sometime later today even in the coming hours, but at the same point they knocked out half of saudi arabias oil supply and able to take out 5. 7 Million Barrels. What we have heard from cnbc sources one of which is they have 35 to 45 day in terms of supply to meet their obligations so far we know, of course, that saudi arabia have million of barrels secured in sites in terms of meeting that demand, theyre not that worried theyre wored to calm the market in such a way that doesnt create further troubles down the line remember, this is coming just a week after they removed the longserving Energy Minister in the kingdom they moved him because he was at the helm of aramcos chairman and he wasnt behind pushing forward with the ipo. We see him calling it out and at the opec meeting last friday i asked the question, do you have a plan if saudi arabia is put on the back burner and President Trump goes ahead with the possibility of sanctions on iran well continue to be transparent. We are having these conversations but, no, they didnt have a plan this terror attack over the weekend up ending that and underscoring, dom, the vulnerability of the kingdom a major terror attack on Oil Facilities at a time directly ahead of a major ipo announcement this is supposed to be the biggest ipo in history and also at a time when you just switched out Energy Ministers a lot of things on the back burner now, but one question that i have and so many people are asking at this point, why havent we heard from the Saudi Foreign minister the uk foreign minister made clear he wants to hear from them the houthis claiming responsibility but the u. S. Really seeming to up end that claim and via satellite images saying theres no way this could be a houthi rebel attack a lot of questions about whats going to happen next but underscoring oil assets and underscoring the fact that saudi arabia is in a very, very difficult position dom . Hadley gamble, stick around for a second here. I want to bring in Brian Sullivan who is appropriately positioned right now at an Energy Trading facility out in houston, arguably Americas Energy capital brian, take us through the financial impacts here we did see at one point the biggest rise in brent crude futures ever on the heels of this particular move so how is the Energy Capital of america treating this particular crisis in saudi arabia well, dom, its the single biggest daily disruption ever in the history of recorded modern humanity 5. 7 Million Barrels being knocked off in one day, we have never had that kind of disruption i understand what hadley was saying there are plenty of barrels in storage. I get it thats the bear case okay theres plenty of oil out there. Weve got it thats the issue everyone knows that, but this is still a lot of barrels you put one third back on the market, 5. 7 million, put 2 million back on the market, okay, now you still have a short fall of 3. 7 illion opec has an extra capacity of 3 million. You still have a short fall of 700,000 barrels. Theres still a short fall out there and everything goes to the length of delay. The length of bringing that back on the market is going to be key. So the market clearly oil would not be up 8 if it were not for thatch many you still have the length of delay, the amount of storage, we get that from a market perspective, dom, it comes to the stocks this is a sector thats been ignored, cast aside. So you look at the names heavily shorted. All the energy names that have been just completely destroyed, heavily shorted, theyre heavily in debt, they have credit, bad junk, credit ratings, whatever, those are the names you have to watch today because everybody that were reading about over the last day or so is Energy Research analysts put together in their notes say there could be a violent snapback in these names. Do they expect it to last forever . No but if youre a heavily shortedd certainly be pushed back so look for the heavily indebted names. As a Second Derivative trade f you will, look for the airlines. Look for travel companies, guys. Those are the stocks that are going to react to this kind of news when you got brent crude, wti crude up 7, 8 overnight, look for the heavily indebted names, heavily shorted stocks, travel names, Airline Stocks as well, those are the ones that, dom, could react violently nobody is suggesting this is a significant permanent turn in this kind of a story, but for today, maybe tomorrow, its going to be kind of a violent move like weve already seen. All right, Brian Sullivan live for us in houston also to hadley gamble live in kingdom of saudi arabia, thank you both now to this mornings top corporate stories, rahel solomon joins us with those. Good morning. Good morning. Uaw has gone on strike at General Motors about workers he picket lines this is the First National strike at gm since 2007 after contract talks broke down. Those talks are set to resume at 10 00 a. M. Eastern on twitter, President Trump urging the two sides to get together and make a deal Purdue Pharma collapsing under the pressure of thousands of lawsuits alleging that the company helped fuel the opioid cry smichs just last week the oxycontin maker reached a tentative deal to settle 2,000 cases set to go on trial next month. Finally disney ceo bob iger resigned as the two companies both get set to launch their own Video Streaming Services last week apple, of course, announced its service will cost 5 a month, less than half of netflixs most popular plan. Disney plus meanwhile will cost 7 a month in a statement, apple calls ieger anexemplary board member dom, back to you. When we come back on the show, much more on those attacks inside saudi arabia and the impact on the global emergency markets. Rbcs helima croft is here and will break down all that we need to know, plus, wall street on record watch does fed chairman jay powell have what it takes to push us over the edge back towards records. More head winds for china. The worlds second largest economy hits new multiple year lows and violence once again overtakes hong kong in its 15th straight weekend of demonstrations a very busy hour still ahead when Worldwide Exchange returns after this commercial break. So servicenow put your workflows in the cloud, huh . Mmhm. Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. You should be mad at leaf blowers. [beep] you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Goad pricings and silver prices both catching a bid, perhaps a safety trade on the back of those attacks on Oil Facilities in saudi arabia gold comex up half a percent comex silver up about almost 2 at this stage. Futures also right now pointing to a lower open onwall street despite todays potential move the major averages remain just a stones throw away from record highs. All of this ahead of whats set to be a major week for the markets, including a twoday Federal Reserve policy meeting culminating in an Interest Rate decision so joining us now, james lieu, hoefd research, james, were a percent or so away from record highs. Sometimes less is what happened in saudi arabia and whats happening right now with oil prices and Energy Stocks enough to derail the move that weve seen towards record highs again . It could for a few days but longer term much bigger issues you look at the direct effect of basically the biggest supply shock weve seen in oil and does affect Energy Prices directly, of course. That generally is a tax on consumers and corporations, so we could see the hitting of the brakes in the economy because of that but really the bigger issue that you look at these supply shocks and they play into the larger Macro Economic turmoil were seeing the Federal Reserve are playing whack a mole with trade headlines and oil prices so that could play a major issue. The Silver Lining if there is any is that the Energy Stocks in the u. S. Are down 18 year over year anyone stands to benefit from oil prices is the Energy Sector. Over the course of the past month and a half or so at this stage, we have seen a seemingly bottoming out process in energy. Not necessarily an oil prices but certainly in Energy Stocks exploration in production companies, oil services companies, is this enough now to reinsert energy as one of the leadership parts of the next leg higher i talk about it because its the rotation everyone has been mentioning over the course of the past few weeks yeah. Really two factors here. One is just how much they lagged the Broader Market up 5. 5 . So just on a beta basis should reverse itself if theres any catalyst for helping out the sector the second point is to what youre saying, essentially Higher Oil Prices could be that catalyst and we could see that across the board across Energy Stocks this is very much similar to reversal of what we saw back in 2014, 2015 when Energy Prices plunged if Energy Prices increase from here, it could bring love back to that sector. From a Macro Economic sector globally speaking theres been a concern about slowing demand, slowing Economic Growth, especially in places like the emerging markets is it fair to say that if oil prices do sustain these gains and trend higher those emerging markets will be disproportionately hit because of this particular move in oil its hard to judge emerging markets as a whole, latin america, south america those countries with emerging markets there could be a more mixed benefit. We generally look at those as oil exporting countries, although that composite has shifted over time, but i think thats more of a mixed bag in asia, however, those are generally oil consuming countries and to the extent that oil prices do spike up significantly you could see emerging markets there this does have an effect on the demand side as well. As you look towards what clients are asking you in terms of how they should be positioned, looking at all the Asset Classes and different types of moves and markets that we have seen, how exactly would you position given the fact that were near record highs in stocks and we have some of these j geopolitical risks at play to the typical diversified investor we like u. S. And abroad the challenge is its been around Central Banks so both the fed and the ecb action last week have basically created this renewed enthusiasm within equities across the board and we think thats a challenge. The fed cant solve all the worlds issues even if they do and they probably will cut by 25 bases points this week, that probably has very little impact on the actual underlying drivers of the economy. The fact is that the economy is slowing down, were seeing that across the board, but were not at a point where we think a recession will happen just yet, especially not within the next 12 months. Risks but no recession. Thank you very much, james liu. Thanks dom. Still on deck for the show, nearly 50,000 General Motors employees hitting the picket lines this morning in a strike that could cost the auto maker hundreds of millions of dollars overall. Plus, the one sector our next guest says investors may want to stay away from as the great rotation nears is end. Worldwide exchange is back right after this as a principal i can tell you this. When one student gets left behind, we all get left behind. This is a problem that affects each and every one of us. Together with ibm, we created a whole new kind of School Called ptech. Within six years, students can graduate with a high school diploma, a college degree, and a pathway to a competitive job. You know whats going up today . My poster. Today, there are more than a hundred thousand ptech students around the world. Its a game changer. Welcome back a life shot of hong kong, just about 5 20 hong kong time p. M. They finish up their day clashes continue there 15th straight weekend of demonstrations protesters yesterday set fires at a subway station less than an hour after police fired tear gas and water cannon at protests who lobbed molotov cocktails. A lot going on there violence appear to flair up aphthouses of pro democracy supporters march downtown in defiance of a police ban much more on this story as it develops. To china where a trade war is hitting yet another part of the worlds second economy it seems generally kind of mixed, but the overall trend for that data in china is certainly lower. Certainly to the downside the data continuing to show how the on going effect, dom, of the bruising trade war on chinas economy industrial output from chinese factories fell to 4. 4 in august, a 17 1 2 year low well below forecasts and 4. 8 in july retail sales a gauge of the Chinese Consumer slowed to 7. 5 below the 7. 9 estimate and comes as premier li told reporters it will be difficult for china to maintain an Economic Growth rate of 6 or more because of a rise in protectionism even if we get some type of deal or progress in the october trade talks the lingering effect of tariffs and trade war will continue to show up in chinas economic data. Capital economics says with a strong rebound unlikely any time soon, their team is anticipating policymakers will ease monetary conditions further in the coming months and next month, they will hold a key meeting where the expectation is that some type of economic reform could be unveiled there so, i mean, the government is the key. Obviously the governments are key to all of these fiscal and monetary policies around the world. With china, its interesting, right, because with china youre talking about a commanding control centrally planned economy. Right. What is it that they will be doing to try to remedy this . If the Economic Impact from the trade war really is hitting them as hard as the data would suggest . As we have seen in recent months, china has been in stimulus mode, just recently cutting fifth time since october of last year they have other tools in their tool box, so they certainly seem like other things the chinese could use to soften the blow of this bruising trade war. Is there a worry that the chinese situation weve often talked about emerging markets and used the word con ta general. Is there a fear that the slow down in china would really affect a lot of those other economies in asia and elsewhere . Thats what the data is showing us trade data from south korea, philippines and india, all these economies are intertwined with chinas economy. Seema, thank you very much. Still to come on the