It on the line for a bid for nationsf the finances. Well have more later on in the show. Im in dubai. David im in hong kong. Midweek session across equity markets. Very upside momentum. Recap what happened on wall street. Impressive rebound there. Is back from the 50 day moving average. Have a look at this, 1 gains in new zealand. Australia is close behind. 7 , a new record for that market as well. The ruby is on the way up. Across the commodity space in china, have a look at this third column, copper is on the way up. Steel is up. 26ve a look at this chart 72 hundred terminal. We are trading above 12. It has been the best three months for this index and chinese stocks in general going back to 2000 days. 2006. It is just two hours away from the opening of the emirates markets are 10 00 a. M. Local time. This is the state of play. Volumes quite light across the board. It is up up. 3 . Bear in mind we did see some notable weaknesses in property stocks. After losingped the bidding war with amazon. Com. For minorityncerns shareholders. They asked if online retailers synergy with by soup. Com was allocation optical of capital. Lets look at these key asset classes. Crude is hanging onto the gains. With the moving average. U. S. 10 years range bound. Look at what is happening at the 122. 14. Ade, at the last weekend over few days. David massive move there. You would think it would be back at 13. A few days back we were at 12. 5. A lot of things have been happening across the world. Heres the first word headlines. Reports from japan say toshiba has approved plans to file chapter 11 protection. The board gave the goahead in the face of a 6 billion writedown at westinghouse. The Companys Technology is found in half the worlds reactors, but westinghouse has been hit by delays and cost overruns. Data from the saudi Money Monetary agency suggests a germanic change in fortunes. The cuts as seen the deficit reported that 1. 2 billion at the end of the fourth quarter, down from 22 billion previously. To prune first spending. Revis budgets were based on a much higher price. Winon has won the race to soup. Com, and it off a late bid which was put at 800 million. Amazon and the company have yet to this scriber deal. Online shopping is picking up in countries like are rain, qatar, and the uae were people on smartphones. Qatar has part of its stake in brazilian units. Qatar Investment Authority holds 5. 5 of the bank. 40 of its to sell stake, valued around 900 million. Santander brazil has seen stock rise more than 75 in the past year. Libyas crude output the center is fallen 20 after a pipeline from the countrys biggest oilfield was shut off. It is not clear what caused the stoppage. Sources say the National Oil Company declared a measure of loadings of crude. Libya is reduction has dropped from 140,000 barrels from one week ago. Global news. 24 hours a day. Powered by more than 2600 journalists and analysts in more than 120 countries. Yousef thanks. Will start the clock later wednesday on to years of negotiations to leave the eu. Theresa may is set to begin the lengthy legal process. They will invoke article 50 of the lisbon treaty. What do we know exactly about the mechanics of this process . Off in 7. 5 hours time. Overll get the letter here. What we dont know is what is going to be in that letter. We have months of uncertainty. Brexit means brexit has been the mantra we have had from theresa may. Not getting too much insight into what the process will look like. We could get more clarity in that letter. The fear is that it could lay down hard lines that would spook investors. This is going to be a tough one for theresa may. She was moving people to the tradingl retaining relationship with the eu. That you is not going to allow that to happen. It is not in their interest to ride becauseuneasy other countries can get an idea about an Independence Movement of their own. They are demanding a the 50 billion pounds. That will be the first topic or one of the first topic separate negotiations. In the european side this is about cohesion, especially given it just celebrated 60 years since the signing. David fairly ominous. From the side of the u. K. , there been lots of talks about whether the nonnegotiable. Where are the interests that the u. K. Will be seeking to protect . Brexitgration, a hard getting out on a Single Market. There are hopes of retaining a trading relationship with the eu. The other issues will be scotland. She is talk about a global britain. She is talked about brexit for everybody. That would not be the case if scotland voted for independence. Its in the Scottish Parliament get its blessing for the start of an independent bid. That happened just yesterday. That will be an interest that three south may will be seeking to retain. Future ofsue is the london as a financial trading hub. Hopes are gone given the lack of Single Market of hard brexit. Rest on official recognition by the european commission. We will be looking at the future of britain and the euro clearing 32,000 jobs. That is with the London Stock Exchange that we could lose. Different from morgan stanley, deutsche bank, jpmorgan, city, all of these executives talking about moving staff abroad if access to the Single Market is hampered. Absolutely. It looks like you will be a busy man of the next few hours, and possibly the next few years. Coming up, we will be speaking to the philippine finance secretary. We will see what he have to say listed theountries track middle east investment. Says a Steve Bernstein tax rate could seize evaluation top 1 trillion. The details are next. This is bloomberg. Todays Energy Independence action calls for a reevaluation of the clean power plan. Aps [applause] perhaps no single regulation threatens our miners, energy workers, and companies more than this crushing attack on american industry. Second, we are lifting the ban on federal leasing for coal production. Third, we are lifting job killing restrictions on the production of oil, natural gas, clean coal, and shale energy. Finally, we are returning power to the states. That is where the power belongs. David this is Bloomberg Markets middle east. That was president Donald Trumps plans for the Energy Sector and the reason for dumping the clean power plant. Yousef this raises the question as to how popular or unpopular these latest measures are going to be . What, i i was the Great American disconnect. Pull it up on bloomberg, a fascinating read. He says 50 of americans are now concerned levers. The percentage was similar back in 2001. Youre looking at discrepancies. I will highlight these for you. It tells the story of uncertainty and why you might not see much of a reaction in the public domain. Youre looking at the does not disconnect between Public Opinion and executive action. Into the vagaries of the american electoral system. Most americans are not sure what to think about climate change. Levels of concern might be high right now, but that might be due to the partisan reaction for who is actually in the white house. Finally, the last couple of havees, 25 of americans consistently worried about climate change. 15 dismissed it. Climate change is not figuring highly in those gallup polls in terms of list of priorities. That is why we have yet to see a strong reaction from the public. David absolutely. Typically you do not get to see the problem until it scares you in the face. Absolutely, good piece there. The biggest names in u. S. Oil have been gathering for the annual energy conference. A bloomberg reporter was there talking oil prices. Listen in. Reporter the big question the oil market continues to think about is the opec and nonopec production cut. The answer appears to be in new orleans, yes, to a certain degree. I spoke with the ceo of Pioneer Natural Resources to see where he sees this going and how resistant resiliency is with lower prices. Dollarllarnine production cuts when it comes to taxes. And we are interests below 20 a barrel. Impressive, sounds but the real life prices of different story. A resources ceo said the industry is still losing capital around 50 a barrel. Continental resources is not scared. They are watching prices very carefully. I asked them what a 4040 dollar price would mean. The president of cap financial gave an answer. We would start rethinking the level of investment. We have so much option alley with our assets. I thought you about the uncompleted wells we are going to complete. We would probably continue on with completing those wells, we also might consider backing off on the rig cap at that time. Reporter the town is also been more conscious. It was moving higher in 2017. Companies are not as exuberant yet. Watching the price very carefully. Lets recap the energy. Whichthis chart together puts in context what is been happening with solar and cold and the s p 500. Pull it up on your bloomberg to get the extra perspective. You can see how coal has outperformed your white line, the s p 500. The purple line is your solar index. Fascinating alternative energy plays there in gains. Well see how those developed Going Forward. The other segment of the Global Energy story is the crude oil markets. The big tax cut that was handed topd see the ipo evaluation 1 trillion. Senior oile from our and gas analyst. The latest move in terms of a change in the taxation regime, that a significant, that is major, but it also has an impact on oil markets. Talk me through that. Reporter it is very significant. What it does is takes the possibility from an lowmargin company to one that is going to have margins on the barrel that is what we see on International Oil companies. That is what the saudi government are trying to do is aramco. The value from they will raise the value of the Country Company significantly. As we look toward the listing, the proceeds from that listing are going to be very important to the saudi government, certainly giving the deficits they are running at the moment. Mean forhat does it market bowls and market bears . The irony is there is a takeaway for both ends of this market. Reporter i think for the bowls what it means is that we are moving closer to the ipo. It reaffirms saudis intent to move forward with this. Is, saudi does not want to ipo is most stable asset in a 40 oil price environment. When it was to do is make sure the oil prices are as high as possible in moving to the ipo in 2018. But that means in terms of opec policies you will see a continuation of policy. One in which price maximization is emphasized over market share maximization. As a move into the opec meeting, i would expect saudi to be pushing for an extension. The way to look at it from the bears perspective is that the proceeds that come from the ipo, which could be 50 100 billion could be important in plugging saudi finances if we stay in the lower for longer world. Saudi is running at 50 billion budget deficit. Keep that to to gdp gdp below 30 . If Oil Prices Remain really are, the prices will remain important to ensure that they hit the financial targets. It is when i look at this reminiscent of what saudi is late 1990s and early 2000 with what beijing was doing with the big state owned companies. Gearing up for method ipos. I remember all investment banks were jumping for position for a piece of that deal. What is the next that. The next structural adjustment . Had adjustments that brought in line with global standards. Is anything else we should be excepting expecting saudi to do when it comes to aramco . Reporter this is about the 2030 vision. When you have a state owned enterprise that has a share price to worry about, what it does is drive efficiency. We see that with the chinese and russian oil companies. The listing of saudi aramco is going to drive productivity improvement which should be beneficial to society. In terms of what youre going to watch in the next steps, clearly we will have to wait until the end of the year and early next year before we see the Financial Results for 2017. That is going to be critical for the evaluation of the come the company. The next thing is the reserve audit. A 60 since on over to billion barrels of oil reserves. Billion barrels of oil reserves. The disclosure we will see in aramco listing is going to be one of the most closely watched data points david where are we there . Yousef our senses that theres nothing to worry about. They doeeling is that have the reserves and it will back up those numbers. It became if it came in significantly below what they were reporting, that would be very bullish. If they came in larger, that would be a significant signal. I do not see many surprises in that number. It will be one of the most important data points. What other risks could derail a smooth start to this ipo . Reporter the biggest risk is the oil price. Tradedid see oil prices down into the 40s, it could mean that saudi willfully ipo. Will hold the ipo if the environment is not right. That is where the biggest risks at moving ahead at this stage. What you will see from opec is one in which you reinforce the production cuts that have already been made. Theng get crude prices into 60 range or higher. Int is where saudi once it advance of the ipo. David thank you for your time. Senior oil and gas analyst for bloomberg. So much to talk about. Uping up, amazon taking online retailer souq. This is bloomberg. Yousef youre watching bloomberg. Im in dubai. David im david ingles in hong kong. We have had a massive amount of deals coming through this week. Where you are, amazon won the race for souq. Com. Bid for 800rival million, but we still do not know the details of the deal. Yousef this is huge. It is huge for the region and dubai. You should have seen some of the fanfare in the last 24 hours off the back of this deal. Very rarely do you find the Homegrown Company that is able to tie up with a Global Company and close a deal of this size. Interesting the company that lost out in the bidding process. Investors are clearly relieved in terms of how the stock prices performed. How thet to point out amazon acquisition of souq. Com is credit positive for the company. A lot of questions, or. Experience ofout amazon. Com in india. What happens when they build everything from stats scratch. It is not worth the investment on that front. This chart tells the story and reminds us the scale of amazon. Two lines, alibaba and amazon. And alibaba. The First Company to reach a 1 trillion evaluation. David that is going to be amazing if it does happen. Since youto mind, brought up amazon, there is another deal we are following in between . 10 and tesla. People talk about reasons you would take a state in something or partner with somebody. Looking at this deal where 10 sent has taken a 5 stake in tesla, when you look at the incentives, and the example of alibaba and ebay. Ebay actually failed in china. Alibaba taking the ground there. They knew the market very well. Tesla,u look at . 10 and it is a good entry point for tesla. We have seen so many examples of Foreign Companies failing in china. One of the reasons that you can get around the is having local partners. Tencent and tesla of the deal we are following here. Yousef still to come, we have plenty to get through. The brexit lines are on. Director of the company of what lies ahead. This is bloomberg. It is a 30 in dubai. 12 30 in hong kong. Egyptian president is scheduled to meet President Trump next week. He will travel to washington on monday for his first president visit with the u. S. President. They are expected to discuss bilateral issues. Top of the agenda is had to defeat basis and pursues peace and stability in the region. Saudi arabias public investors are investing in jordanian assets. They will put 10 million into the newly formed saudi jordanian investment fund. The fund will be 90 owned by held ah the Remainder Group of local forms. It will state tourism projects in jordan. Saudi aramco has set the final price for its debut. Said to be selling at 25 basis points above saudi arabias interbank offered rate. The Biggest Oil Producer is looking to raise 2 million in his debut. They want to raise 10 billion or another attitude. Turkish government has criticized the arrest of a person at another bank. They have tried to evade sanctions from iran. He is accused of conspiring with an iranian turkish gold trader to launder hundreds of millions of dollars to the u. S. Financial system. North korea has launched a new flight to china, taking the number of foreign destinations to five. They added a service to a border city. The carrier also applies to beijing, shanghai, shenyang, and another place. They made headlines in 2015 when the agency earned just one star. The only carrier in the world to add that level. Global news. 24 hours a day. Powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg. David thank you. Lets get back to the markets. I am watching all of the action across asia. We are seeing very solid games coming through in doing ceiling in new zealand. Low comingn a through into that commodities space. New zealand looking strong. Numbers have been falling from the record highs of the last couple of sessions. What is not showing is the weakness across the nikkei. Was not on the broader topix index in japan. That is weighing on things along in currencytions markets. All in all, a pretty good session for asian equities taking that lead from wall street. Consumer confidence buoying investor sentiment. If we look at stocks we have been watching, toshiba is one to keep an eye on. Nikkei reporting the border of toshiba has approved a chapter 11 filing. China h shares rising for a second days. Agood pickup from cgn power got a broker upgrade from jpmorgan. Syrahesources resources up over 5 . Trading volume also tripling. Leading the gains. Ofittle bit of a dead out some of the Consumer Discretionary stocks though today. Lets get back to one of our top stories. The process of brexit will be formally launched