Debt, offeringedebt to buy that billions. Anchor plosser continue to watch president trumps first overseas tour. We will look at how his domestic agendas tracking while he is away overseas. This is daybreak asia, coming to you live. I am betty liu in new york, where it is just after 7 00 p. M. Anchor it is just after 7 00 a. M. In hong kong. I am yvonne man. Yvonne we were expecting a risk on feeling, but it seems to be shattered just a bit as we get more development out of Greater Manchester of fatalities at the Manchester Arena just a couple of minutes ago after reported explosions. A fluid situation, but we see the moves on dollaryen here this morning. Betty that is right. Dollaryen. Come into my terminal on the many futures on the s p mini futures on the s p. When the news broke, Greater Manchester police tweeting that there were a number of fatalities. A number of fatalities and injuries. About whereonfirmed the bush and from, what was involved, but they are confirmed right now. Fatalities and injuries in this area, so we are going to keep track of this and as you say, could easily be taking that risk , taking that away quite quickly. Learninglso, we are from witnesses, opening to sky news, that reporting allowed during a concert at the Manchester Arena we will continue to watch those headlines. Dollaryen holding a bit of a support good 111. 08 is where we stand. Pointing to decent gains, but remain unchanged on the index. 50, the kiwi. 1 gain ahead of thursdays budget, which may show us are. The kiwi at 70 u. S. Cents, along with the yen right now. Australia, a lot of excitement heading into that opec meeting in vienna this thursday. Oil stain branch above 50 per barrel, the highest we have seen in one month. We could be seeing a slight modest bounce at the open for stocks on the asx 200. 74. 73 u. S. Though, cents, flat right now. The dollar losing its grip against the yen. 111. 07. We have already seen. 5 down on dollar right now. Could be a tough day in tokyo if we continue to see more developments coming out of waster manchester, so that a look at what we expect in the region this morning. Betty, how does it all look on wall street . Betty before this news, it certainly was risk on an risk on. Stocks advancing to the third day after president trumps first foreign trip overshadowing this chaotic week we saw last week. I want to bring in su keenan with more on what happened today. Su we did see this doing well. We have gold up and oil up, which we will get to. Playerials were the star. We closed with a rise. Let us go into the big movers. A lot of what is coming out of saudi arabia, coming to an agreement worth hundreds of billions of dollars. A lot of companies benefiting from that. You see them on the screen. Also entering into a deal with a jet parts maker. Intraday dynamics. Blackstone dynamics with a big bump reflected in the stocks. Let us go over to the bloomberg. Hedge funds, a very interesting trends, have been selling the dip when it comes to commodity courtesies. You see the graph in the bloomberg chart, the white is the commodities. Dip, this isach being sold. Sort of counterintuitive, but it is where the hedge funds are placing their money right now. Anchor smart money. What about the big jump in industrial stocks . What was behind that . Su a lot of the focus is on president trumps meeting in the middle east, but there was a lot of huge Business Leaders over there. Lockheed martin came home with a deal. Raytheon arabia. They will be making armored workles at the saudis together with the u. S. Let us talk about the auto industry. Stocks were up on what is a big change in this. Let us go to the top ford for the word on that. To mark foreful everything you differ our company because he did amazing things. But we are in a different time now, and it requires the kind of leadership that jim will bring us. Su that is the chairman talking about mark fields, the ceo that is now out. The company concerned he was never able to do the turnaround, coming up to speed with the hightech they had hoped for. Well favored in silicon valley, which is where ford really sees itself with Driverless Cars and a lot of the new technology, so it will be interesting to see where the stock is from here. Anchor we have been talking about the oil prices as well. A lot of excitement leading to the opec meeting. Do you think the opec can actually succeed in driving the market higher even after vienna . Su a lot of the traders are saying the extension of the agreement, which is what we hearing, is already priced in. Let us go into the bloomberg chart to give us an Historical Perspective on what is in the past to change the price of oil in terms of the production cuts. Ends atoing back 2009. In 2008, they were making cuts of 5 Million Barrels per day, and if you look at what we are doing now, were talking about maybe more than one Million Barrels per day, but it is cutie in comparison. There are some traders in the what the believe that opec members may do now is come in with a surprise out of the vienna meeting. In other words, not only formalized the ninemonth extension on the output cut deal, but announced that they are going to make a larger commitment in terms of the cuts that they make as again, was successful in the past. Somehat that might push gains into the market, but again, this is the market that is very skittish and as we talk go homel, some days you in an ambulance or a limousine. These are the big swings that are possible in the months ahead. Anchor looking for some potential surprises out of vienna. Thank you. First word news now with nina melendez. Nina thank you, yvonne. The yen jumped after news of a fatal explosion in the Northern City of manchester. Early Police Reports say there was an explosion during a concert at the Manchester Arena and several people are said to have been killed. Thes not known what caused explosion, but the nearby Victoria Station is closed and all Train Service is canceled. Supply of iron ore has grown even bigger with the rise in stockpiles eclipsing that through the whole of 2016. For a fourthnded weekend have risen by a total of 22 million tons this year, easily surpassing the 20. 9 million tons added last year. The price of iron ore has stabilized in the 60 region. After speaking on concerned, writing Global Production will top demand. North koreas says it is ready to begin mass production of a , sayingum range missile sundays test proved its combat readiness. Capable of hitting u. S. Space. More launches will follow and scientists are continuing to work on nuclear warheads. Hong kong stocks rose to their highest in a most twoyear, led by a rally for insurers. The hang seng closed up almost 1 higher as chinese stocks moved by their mainland peers. The shanghai composite the client by. 5 while shenzhen fell 1. 5 . The hang seng has gained 15 . Shenzhen has accounted from us one third of that demand. Global news, powered by more than 2600 journalists and analysts in more than 120 countries. I am nina melendez. This is bloomberg. Betty donald trump now in israel says there is a rare opportunity for peace in the middle east while on the second leg of his first foreign trip as u. S. President. Ramy inocencio walking us through the event of the past when he four hours. It has been quite a trip so far. Is there for 28 hours and it will be a whirlwind. He has already met Prime MinisterBenjamin Netanyahu along with his wife ivanka trump. The Prime Minister and his wife were there to meet him. It is coming against the background in the context of one donald trump was full force for israel, and now in the past few months, walking back the promise or at least the pledge to move the u. S. Embassy from tel aviv to jerusalem, so it is interesting to see what may come out of this, if anything. Of course, mideast peace is the big goal, but this has also eluded president s ever since the whole entire issue started several decades ago. Let us take a listen to what donald trump did have to say in terms of trying to rally arab countries to the side of israel, and in pushing back one major country in the region. Pres. Trump what has happened with the ron has brought many of it with iran has brought many parts towards israel. If there is a benefit, that would be the benefit, because i have seen such a different feeling towards israel from countries that, as you know, were not feeling so well about israel not so long ago. Ramy so donald trump talking about trying to be in solidarity with the United States as well as with israel, trying to push back against iran. He also noted that other arab countries are in collaboration or are corroborating or thinking at least that this is something that should happen. Solomon said he would love to see peace between israel and the palestinians. Benjamin netanyahu also waited. The arab leaders who you met yesterday could help change the atmosphere, and they can help create the conditions for a realistic piece. Ramy so looking ahead, donald trump also meets with Prime Minister excuse me, Palestinian Authority president mahmoud abbas, where he is excepted to talk about the big vision for mideast peace. Yvonne. Yvonne yeah, i cannot help but wonder, i saw that they both went to the red carpet, but the welcoming ceremonies were very different in saudi arabia versus jerusalem. Idoes that kind of differ . As to anye is no word deals that have come out just right yet, but you know, this is definitely in stark contrast to the opulence we saw when donald trump arrived in saudi arabia and spoke to representatives from most if not all of the muslim world, along with 50 u. S. Euros, 40 saudi arabia and companies there. Companiesrabian there. In terms of whats potential boons there might be, it could be along those lines. Some stocks traded in the United States that are from israel have seen a bump ever since donald trump took office. Has risen byelbit a since november 8 and security company, physical Security Systems for airports and borders, has risen 23 and checkpoint, which is dealing with i. T. Security also, it was about that much in terms of the past several months or so. Very quickly, dive into the bloomberg terminal, because i want to show you how important as well israel is to the United States as well as china, interestingly. The United States is israels top trader at 30 billion in 2016, but china is in the number two position at 11. 1. Yvonne a lot of investment going into the tech sector in israel out of china as well. Facing things at home. His economic agenda with a northern economist. Investors seeing value and why is wall street rushing in to etf . This is bloomberg. Anchor i want to update you on breaking news out of Greater Manchester. Reports of an explosion at an Ariana Grande concert. There are a number of fatalities as well as a number of injuries. We do not know much more than that right now, but here is some video. There have been quite a few videos circulating on peoples twitter feeds and facebook showing the scene of chaos at the arena. Greater Manchester Police and Emergency Services are tending to those who have been injured, and a number of fatalities. We have been talking about the Market Reaction. We saw the dollar just tumbling againstthe 111 level the japanese yen, so people rushing in. Investors rushing in for a safe haven. We seem to be stabilizing right around as we are waiting for more confirmation on what exactly is happening, where this reported its motion, if it is even an explosion, and what is behind that. Yvonne that social media video showing the panic that happened shortly after the bang somewhere hearing, heard by a person living opposite the venue. Continue to watch those breaking News Headlines coming out of there. Meanwhile, let us talk more about the white house, set to issue the administrations formal budget request on tuesday. A proposal of 1. 7 trillion of cuts to spending, a social programs, is expected as well as a lowering of individual tax rates. Let us discuss that with Carl Tannenbaum, joining us in hong kong. We heard about the budget before. Is this going to be any different . The theme still seems to be the same. They will be cutting when it comes to domestic programs and beating up on defense. Carl there is a difference between skinny and anorexic. The cuts being proposer in the latter category. They are making room for an ambitious set of tax cuts without blowing up the american deficit, which is projected to grow quite a bit in the next 10 to 20 years. Some of the gymnastics necessary may prove to have too high a degree of difficulty. Many in our congress will want to preserve some of the tax preferences and spending programs that are on the docket for change. Anchor democrats were saying this is a proposal that will be dead on arrival. Given what we have seen the last week, with political turmoil regarding this russian investigation, do you think this will be more so a bump in the road or actually a barrier to trumps agenda . Carl the Ongoing Investigation is going to distract the congress to a certain degree, but i would point out that the road to the tax cut Program Proposed by the white house was already going to be a bumpy one, given the massive changes recommended and the reliance of some industries and countries on those preferences. There was going to be an alignment of lobbyists and their representatives against the outline as it was stated. Betty i was reading through your notes and you never bought into this whole trump bump that other investors expected, and certainly from last week, you kind of looked it looked like your crystal ball, you know, was correct. I want to point out this terminal chart here, guys. Up, 82300. G this it shows that the economic ,urprises interestingly enough are becoming more in the negatives and downside. When you look at the citigroup, economic surprise index, are we possibly going from trump bump to trump slump . While, betty, i appreciate your recognition. I am rarely correct, and i would have to say that my expectation was less based on mr. Trumps behavior, and more on the legislative realities. Tour through the budget rules, they are quite arcane. That said, the absence of the trump momentum probably is not going to change the odds all that much, as a mentioned earlier. The investigation will likely ever congresss attention, but they will have to get down to hard dollars and cents. Some of the fundamental changes they are proposing probably are not going to win enough support in our congress. Betty but outside of that, then what does this mean . We are listening to all these fed speakers. You bank into do more rate hikes here . Carl i do. One of the themes i want to stress is that the American Economy has performed really remarkably well in the midst of the turmoil we have seen from the white house. Growth is on a trajectory to reach another 2 year. We are going to have a very strong second quarter. Earnings growth has been very strong. Really remarkable, the resilience of both investors and ahead,s people, to move even though the political environment is highly uncertain. Betty thank you so much. Good to see you on the other side, Carl Tannenbaum, chief economist at more than trust in hong kong. Up next, a new ceo will drive ford into the future. Jim hackett. We will ask what we should accept from the new ceo. This is bloomberg. Anchor this is Bloomberg Markets european open. I am yvonne man in hong kong. In newi am betty liu york. Investors welcomed fords decision to announce a new ceo. Jim hackett will replace the retiring mark fields. Massiveon now is will job cuts at the automaker follow . Let us take a quick look at this chart. Guys, let us pull up this chart here. Hereave at your now . It now . This one shows the headcount at fort, which tracks the headcount ord, which tracks the share price since 2002. The different shaded areas mark the different ceos. Bill ford junior, alan mulally, and mark fields. Increased has seen an , iteadcount off the lows is still lower than the early to mid to thousands, so they have not built back up their headcount. Here is jamie butters in detroit. This was a surprise. Im not sure. Or not hiring, i mean, was that really what ousted mark fields . Jamie no, this is not like when bill ford had to make big cuts in the wake of the jack nasser area or Alan Mullally having to the greatring recession. This is still a profitable company. They are not losing billions of dollars because they have so many factories that he do not need like they did 10 years ago or 10 years before that. Company thats is a is doing fine, doing ok on its basic operations, but it does not seem to have a compelling vision for the future, and even its own operations, they are not to out of size, but they are not as sizzling as they could be or should be in a more perfect world, if they had a better lineup to fit the way the americans taste right now. Fords was this about shortcomings as a future Mobility Company or more about the failures of the existing auto business . Jamie it was a bit of both. Mark fields is having to carry out the decisions that alan mulally made five years ago, so he invested a lot in small and fuelefficient cars, taking weight out of the f150 to make it more fuelefficient, but in the meantime, the price of gasoline has fallen, and consumers just want more and more suvs, and ford has kind of ignored that segment. At the same time, they have not really inspired a lot of confidence in their vision of future mobility, and they put them together, and you see the stock market value that has fallen below gm, below tesla, and it just is not w