Retaliates declaring war and launching air strikes. Uncertainty creep into the European Equity markets. Shares in the oil majors and Defense Companies makes solid gains. Oil prices jump, but in an exclusive interview, Saudi Arabias Energy minister tells cnbc that opecs ability to stabilize prices should not be underestimated. I believe the best thing i can say is the cohesion of opec plus should not be challenged. We have been through the worst. I dont think we will have to go through any terrible situation at all. And global policymakers and central bankers descend on morocco a month after the deadly earthquake rocks the country. It is monitoring develop ments n israel and gaza, but it is too early to assess the economic fallout. Our top story is the Israel Defense force confirmed at least 700 israelis have been killed after a Palestinian Militant Group hamas launched an attack on the country. The idf warned the number is expected to rise with thousands injured. Israel has formally declared war and launched a series of air strikes. The Palestinian Ministry of health declared 493 people have been killed in the gaza strip. Speaking on saturday, israeli Prime MinisterBenjamin Netanyahu vowed a fierce res response. Translator what happened today has never been seen in israel. The government is behind this decision. The idf will use all its strength to destroy hamas. We will defeat them to death and more forward on the black day. Antony blinken spoke out about the actions. It is trying to derail these efforts to advance no normalization. The result would be, if we were able to get there, a different path for the region and for the future. A path of greater stability and integration and people working together to better their lives. Thats in stark contrast to the path that is offered by hamas. A path of violence and killing and terror. A path that offers nothing to the palestinian people. In fact, what it offers is more suffering, not less. It is a stark choice. Hamas and hezbollah and iran are lined up behind that vision speaks volumes. At the same time, as we pursue normalization, it is not a substitute for resolving the differences. This needs to be advancing that prospect. Like everyone, we are here trying to understand the im implications of the attacks. Joumanna is in marrakech as you see. You see she is there for the world bank meetings. Joumanna, i wonder to what extent the tattacks will dominat the meetings this week. How much will the conflict escalate . What other nations could be brought in . What do you do with exposure to the region at this stage . Reporter let me bring it back to the imf meetings. The reason were in marramarrak. They rotate the mieetings every three years. They were supposed to hold these meetings during the pandemic and now here we are. It is showcasing the region in a positive light and shed light on the challenging facing the middle east and north africa region. It is notable this is actually the first time the meeting has taken place on the north african continent in 50 years. Another 20 years within the middle east region. Notable we are in marrakech. As you say, joulianna, the evens are overshadowed by the actions over the weekend and that violence has been condemned on both sides. This is top of mind for many of the policymakers meeting this week. At the meetings, there is an opportunity to take stock of the Global Economy and look at the Current Situation and trajectory of growth and bear in mind the challenges we are facing. You have to add to that this dimension of the potential flaring up of geoPolitical Risk within the middle east region which is top of mind. With that, i want to bring in our first guest of the show. The associa sossociate fellow f chatham house. As julianna and i were discussing the immediate question for many people watching these events is what potential there is for the actions of the weekend to bring in a broader conflict . What is the potential for other actors to get involved as well . Thank you for having me on the show. I think it is early days and were not quite sure. We know that the head of the Iranian Forces is going to meet the head of hezbollah in lebanon today. Hezbollah is clearly the main threat to israel from the north and northeast. I think they will calculate very carefully how they will play this. I think it is unlikely there will be a serious attack from the north and maybe until israel is deep into gaza. Of course, there are many players. Iran has the proxies. Islamic jihad has declared they have more than 30 hostages and they are linked to iran. Hamas declared they have more than 1 o00. They are linked to iran. We know the planning and knowledge and money and arms have come from iran. In terms of the north . There is a question mark. They have various options and i think its going theres going to be clearly some attacks like we saw yesterday. They will be very careful about what they do knowing full well israel is going to retaliate in a forceful way that may be more than they would like to see. I think there is a very cautious note there. Theres no doubt whatsoever that were in this for the long haul and serious ramifications for the region. Firstly, the saudi deal is on hold and it will be on hold for a very, very long time. Secondly, the west bank is going to have to we are seeing 14 deaths there in the last 24 hours. They are not out of the game. It is a closely tightknit region. We will see escalation. I think the players will be fairly cautious about what they do in the initial coming hours and days. Reporter so lots of potential implications that we can speak of. There has been speculation over the weekend of the extent of irans involvement and mobilization surprise attack. It is unclear if it can be pointed back to iran. If it is suggested that iran was implicated, how damning could that be . I wasnt suggesting that iran planned the entire attack. I was suggests that irans hand is in it. Iran works through the proxies and has close ties to the jihad and hamas. I think everybody will be cautious before pointing the finger at iran giving the regional ramifications. The u. S. Is bringing in these carriers and thats very, very serious deterrent, i suppose. It can be seen as a deter rrentr aggression or a serious commitment to israel. As i said, everybody is watching very, very carefully and cautiously. You note the Prime Ministers and officials who have spoken are clear that they are not invading gaza. I think israel does not want to occupy 2. 2 million palestinians in gaza. Thats not the aim. The aim is to try to neutralize the entire military installations and forced to govern and force the palestinians into the National Unity government or force the palestinians into some sort of government that israel can negotiate peacefully. Good morning. This is julianna from london. What motivated them to move in now . I think there are lots of provocation was with the israel government. They saw the weakness and they saw an opportunity there, but also clearly the saudi deal. I think they wanted to make it clear that the saudi deal and they and the palestinians should not be left out of any saudi deal. They were left out of the camp david deal in egypt. They were left out in 1994 and the abraham accord. They are saying enough is enough. We are here and we are here to stay. We cannot be ignored. As i said earlier, it is the question of the relationship with faqqah. I would not call the action in defense in any way. Im casting it in the words they use. What might we expect or hear from had a chance to speak to the saudi Energy Minister and we will have that sound in a moment. More broadly, the potential saudi involvement here. Whats on the cards . I think saudi will play the cards cautiously and not rush into any deal. I dont think they can leave the palestinians out. I dont think there can be a saudi deal without the inclusion of the palestinians at this stage. Lastly on iran, iran is suspected to have helped hamas pull off the attack on saturday according to some reports. Is iran likely to come out and say anything officially . Officially said they were not involved as far as i know. That was the official line. Unlikely to hear anything other than that in your view . I think were unlikely to hear anything. They work through proxies and they are unlikely to take responsibility. They work through proxies and they say that wasnt us. That was hamas and islamic gee jihad. I thank you for being with us. Associate fellow from the International Security program at chatham house. European equities faring here this morning with a down beat start as investors try to understand what these attacks mean for the region and for g geopolitics moving forward and the implications for specific stock exposure. By and large, we are seeing a down beat start. You see ftse 100 is trading up. 20 . Oil stocks are trading higher this morning. Lets break it down by sector. You see oil and gas with a wide margin up 2 this morning as we have seen a bounce in the price of oil as investors, of course, are concerned about what this may mean for supply. Utilities are defensive and food and beverage are holding up well with. You have the cyclical stocks under performing. Retail down 1. 6 . We are seeing a pull back in the airlines as Airlines Stop in and out of israel. Autos taking a hit down 1. 3 . Now, of course, theres been a strong reaction in israeli assets. The bank of israel is taking action to firm up the shekel. The Central Bank Says it will provide the necessary liquidity for markets. We have been keeping a close eye on the oil completion. For that effect, opec has raised its short and longterm oil demand forecast. It sees demand rising to 109 Million Barrels a day. Longer term, the Group ExpectsGlobal Demand to hit 116 Million Barrels a day by around 2045. 6 Million Barrels more than previously thought. Interesting in the context of the debate between the iaea and opec about peak oil demand. To opecs point, they see demand driven by growth in china, india and africa. Speaking more about oil, the saudi Energy Minister has told the situation in the oil market should not deteriorate despite the worst violence in israel and hamas in decades. The unity of opec plus should not be challenged. I think we have proven in all serious times and in all times that whenever we are challenged as opec plus regardless of the situation with covid and all sorts of issues. We dealt with the ups and we dealt with the downs. I think what is rewarding is we just finished the g20 and we are connected. I honestly we believe the best thing i could say is cohesion of opec plus should not be challenged. We have been through the worst and i dont think we will have to go through any terrible situations at all. In fact, i hope that within the next few weeks we will have a better extrtrajectory to give u meaning. That was an interview with the saudi Energy Minister salman speaking to dan. Also sounding more moderate and cautious with his approach saying the oil market has seen a period of volatility before. He touched on what is next for opec plus. Unfortunately, you guys do believe the socalled forecasters and scaremongers here and there. You know me, dan, you have known me for a while now. Im a very subtle person and calm person. I only tend to read numbers. I said that in calgary. I was given all kinds of names and i was told by somebody you should look at forecasts. What kind of forecasts do you look at if they keep changing it every month with a yoyo anomaly to it . I maintain my composure of i will believe it when i see it. Yes, we may be delayed with the decision on what to do, but i will not forfeit the precaution approach. Even if it goes beyond the month or two or three or four months or five months. Do you think you will need to do more at the start of next year to maintain market stability particularly in light of the recent developments . Again, this is a state of mind. Thats why you are understanding the announcement today with my friends. We reiterating our commitment that you dont discard what with opec plus can do for the purpose of the market. Also coming up on street signs, growth is a big theme as policymakers descend for the Imf World Bank meetings. 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Join now and get 50 off any footlong. Welcome back to street signs. Global policymakers are gathering in marrakech for the Imf World Bank meetings with divergence in Global Growth set to be the themes this week. Sylvia will be with me the whole week as we piece together some of the take aways from the conference. Julianna and i were talking about the fact that it wasnt that frequent these are held outside washington, d. C. This was supposed to be held a couple of years ago and pushed back by the pandemic. We are in marrakech today which is significant because of the challenges the middle east region and kafrican continent facing, but the issues that they are facing here in middle east with the Economic Outlook and how regional shocks play into financing and coming at a time where higher Interest Rates are crippling the economy. All of this is wrapped together. Sylvia, i want to lean on your exper te expertise. What have leaders been saying . They want to avoid furthest can legisl escalation. This could be a wide range problem in the region. There have been several phone calls taking place. In fact, the Foreign Affairs chief made comments as well. His main concern is avoiding escalation. Lets see how this unfolds. There could be ramifications here for the russian invasion of ukraine. This is another concern in brussels. If washington starts focusing on the middle east and we have u. S. Concerns with the reduction of the spoupport prior to this weekend, that would be a bigger problem for europe. Ukraine was going to be a major topic of discussion at imf. They have 16 billion into programs over the years. The initiative taking place in kyiv on how the reform and loan process is going. Outlook for the economy is better, of course, than it was a year ago at the onset of the war. Again, the cohesion and topic of geo economic fragmentation is one you will hear throughout the course of the week. We spoke to Kristalina Georgieva after the fundraiser last week. She said there are two major themes they he aare focused on. The Global Growth and geo fragmentation. You have the breakdown of the financial ties that would bring the framework together. There are Global Economic issues. If i may return to the ukrainian point. You may be interested to hear from volodymyr zelenskyy. He is due to speak later this week. It will be important to hear what he has to say and the message from the imf toward ukraine. As i said, there is further concerns that ukraine will receive less support, not just from the united states, but also from europe. Lets not forget hungary is actually saying they want to send less money to ukraine. This is very important for them. They are focused on the counteroffensive and it is not going as fast as efficiently as some would have hoped. It is not international fragmentation, but within the eu block as well. Lots of things to pick up on. Jo julianna, there haveis more to this week. This is just the beginning. As we started off by saying, the regional instability in the middle east is top of mind for the policymakers coming here. Fantastic analysis already. I cant wait for the coverage throughout the next few days. Coming up on this show, we look at more of the Market Reaction following the deadly en ithmileast. Do stay with us. Meet the portable blender we can barely keep in stock. Blendjet 2 gives you icecrushing, big blender power onthego. So you can blend up a mouthwatering smoothie, protein shake, or latte wherever you are recharge quickly with any usb port. Best of all, it even cleans itself just blend water with a drop of soap. What are you waiting for . Order yours now from blendjet. Com before they sell out again im andrea, founder of a boutique handbag brand andi and this is why i switched to shopify. Its the challenges that we dont expect, like a site going down or the checkout wouldnt work. 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