Aramco Slashes Asia Oil Price, Saudi-Backed Forces Target Houthis, Super-Rich Leave UK

>> GOOD MORNING. OUR TOP STORIES THIS MORNING. SETTING UP A FIGHT TO RETAKE TERRITORY. WITH A FULL-SCALE MILITARY PUSH. THEY PRESIDENTIAL ELECTION RUNOFF IN BRAZIL. THIS IS AFTER BOLSONARO UNEXPECTEDLY FINISHED AHEAD OF THE PRESIDENT IN THE FIRST ROUND. ASIAN STOCKS ADVANCED AFTER SOFTER U.S. JOBS DATA EASED CONCERNS THAT THE FEDERAL RESERVE MAY NEED TO KEEP RAISING RATES. IT HAS JUST GONE 8:00 A.M. ACROSS THE EMIRATES. WE ALLUDED TO SOME OF THE PERFORMANCE WE ARE SEEING ACROSS THE EQUITIES PICTURE THIS MORNING. THE JOBS DATA CAME AT ON FRIDAY. REDUCING THOSE BETS THAT THE FEDERAL RESERVE WILL HIKE RATES. MARKETS ARE FACTORING AT 25% CHANCE OF THAT HAPPENING. RIGHT NOW YOU ARE LOOKING AT S&P FUTURES THAT ARE FLAT TO THE DOWNSIDE. NASDAQ FUTURES ARE ALSO FLAT. ABOUT 1% HIGHER. CHINA AND SOUTH KOREA ARE CLOSED TODAY FOR A PUBLIC HOLIDAY. WHILE PRICES ARE DROPPING THIS MORNING. STILL ABOVE $100 PER BARREL. SOME THINGS ARE HAPPENING. BLOOMBERG REPORTING THAT THE EAST-WEST PIPELINE IN SAUDI ARABIA IS RETURNING TO 80% CAPACITY. THERE IS THE STORY OF THE BENCHMARK. 10 YEAR YIELDS NOW AT 5.26%. DROPPING LESS THAN A BASIS POINT THIS MORNING. LOOK AT THIS STATISTIC. THE 10 YEAR YIELDS ROSE 12 BASIS POINTS LAST WEEK ALONE. MODERATION THIS MORNING. BUT LAST WEEK WAS THE FIFTH STRAIGHT WEEKLY INCREASE. IN THE LONGEST SUCH STREAK SINCE APRIL OF 202024. WE ARE SEEING THAT SIZE AND SCOPE ACROSS THE TWO YEAR YIELDS. MODERATION IN THE SHORTER TERM YIELDS. WE WILL DISCUSS THAT STORY IN JUST A FEW MINUTES AS WELL. LET'S RETURN TO THE GEOPOLITICAL PICTURE. THE YEMENI MILITARY HAS LAUNCHED AN OPERATION TO RECAPTURE AREAS. FIGHTING HAS ESCALATED SINCE EARLY LAST MONTH WHEN THE WHO THESE -- HOUTHIS TOOK OVER THE AREA. TELL US WHAT IS HAPPENING. THERE WERE SOME REPORTS ABOUT THE COALITION. SEEKING TO RETAKE THOSE DECEASED AREAS. CAN YOU TELL US MORE ABOUT WHAT HAS HAPPENED OVER THE WEEKEND. >> THEY HAVE BASICALLY DECLARED ALL-OUT WAR. NOT JUST TAKING BACK THE AREAS THAT HAVE LOST IN THE LAST SEVERAL WEEKS. THOSE KEY COASTAL AREAS. THEY WANT TO GET RID OF THEM ALTOGETHER. REUNIFIED YEMEN. IT IS A BOLD INTENTION. I WAS A HISTORY IS NOT NECESSARILY OTHER SIDE. WE SAW FIGHTING IN WHICH THE HOUTHIS GAINED CONTROL. THERE ARE LIMITS TO THEIR POWER. PAST PERFORMANCE IS NO INDICATION OF FUTURE RESULTS BUT YOU HAVE TO BE A LITTLE BIT SKEPTICAL GOING INTO THIS THAT THEY CAN MAKE ANY HEADWAY. I THINK IN THE NEW AREAS THEY HOLD MAYBE THERE IS A LITTLE BIT MORE CHANCE. THEY ARE THE OUTSKIRTS OF SOME OF THE MAJOR CITIES IN THE SOUTH. IT WILL BE AN UPHILL STRUGGLE. A LOT OF THIS WILL DEPEND WITH WET OUTSIDE HELP THEY GET. ABEER: THE HEART OF THIS REMAINS OIL AND ENERGY. BRENT CRUDE ONCE AGAIN ABOVE $100 A BARREL. WE ARE SEEING MODERATION IN THE PRICE ACTION. A LOT OF THIS IS RELEVANT. THE EAST-WEST PIPELINE. WE HEADED OPEC-PLUS'S DECISION MAINTAINING QUOTAS. WHAT IS HAPPENING IN THE ENERGY SPACE? >> I THINK TO SOME EXTENT THAT IS A SIDESHOW. IT IS IN SOME EXTENT IRRELEVANT. MORE IMPORTANTLY WHAT YOU CAN LOOK AT IS THE BIG DISCOUNT THAT SAUDI ARABIA IS NOW OFFERING CUSTOMERS. THIS IS THEIR INTENTION TO RECAPTURE MARKET SHARE IN ASIA. TO ME IT SIGNALS A CERTAIN AMOUNT OF BULLISHNESS ABOUT HOW MANY BARRELS THEY THINK THEY CAN GET OUT. YOU MENTIONED THAT EAST-WEST PIPELINE BEING BACK UP TO 40%. ALL OF THIS SPEAKS TO A DEGREE OF BULLISHNESS FROM SAUDI ARABIA. ABOUT HOW MUCH THE PLAYER CAN GET TO MARKET. ABOUT $100 A BARREL OR THERE ABOUT. THE ONGOING LOW-LEVEL HOSTILITY. THE FACT THAT WE DO NOT HAVE A RESOLUTION. YOU GET SIGNALS COMING FROM THE PERSIAN GULF PRODUCERS. ABEER: ANOTHER WEEK. THANK YOU FOR THIS MORNING. OUR EXECUTIVE EDITOR FOR THE MIDDLE EAST AND NORTH AFRICA. THE PENTAGON HAS REMOVED U.S. BOMBERS FROM A BASE THAT HAD ANY ATTEMPTED TERROR ATTACK. ALL THE BARBERRIES HAVE RETURNED TO THE UNITED STATES. THE NEW YORK TIMES REPORTED THAT THE WITHDRAWAL WAS URGENT AFTER NEW THREATS EMERGE TO A PLOT. THE CAPTAIN OF THE FLIGHT HAD PREVIOUSLY BEEN DISMISSED FOR ENGAGING WITH RADICAL VIEWS. THIS COMES AFTER INVESTIGATORS IN THE UNITED ARAB EMIRATES SAID SHE TRIED TO CARRY OUT TERRORIST ATTACK BY ATTACKING HIS COLLEAGUE. THE PLANE MANAGED TO LAND SAFELY IN SAUDI ARABIA AFTER PASSENGERS AND CREW SUBDUE THE ATTACKER. BOND MARKET VOLATILITY HAS CLIMBED TO ITS HIGHEST LEVEL IN MORE THAN A YEAR. THIS HAS INVESTORS GRAPPLE WITH RISING TREASURY YIELDS HAVE UNCERTAINTY ABOUT THE PATH OF INTEREST RATES. JOINING US NOW TO CARRY OUT IS THE CIO. GOOD MORNING. HAPPY MONDAY. GOOD TO HAVE YOU WITH US THIS MORNING. LET'S START WITH SOMETHING YOU NOTE IN YOUR LATEST RESEARCH. 10 YEAR YIELDS BEING THE BIGGEST VARIABLE RIGHT NOW HEADING INTO THE FOURTH QUARTER. WHY IS THAT? >> GOOD MORNING. THERE IS A CORRELATION WITH OIL PRICES. THAT IS NOT SOMETHING THAT HAS HAPPENED HISTORICALLY THE PAST. IT IS MORE RECENTLY THAT WE ARE SEEING THIS CORRELATION. IF OIL PRICES GO UP WE WILL SEE YIELDS SPIKING. IF THEY ARE COMING DOWN FROM THE YIELDS ARE COMING DOWN. WHAT HAS HAPPENED IS INFLATION FLOWING THROUGH AND GOING INTO EXPECTATIONS FOR THE FED HIKING. WE HAVE ALREADY HAD THE BANK OF JAPAN HIKE. WE HAVE OTHER HAD EMERGENCY MARKETS. THERE IS ANOTHER HIKE PRICE TODAY AND IN DECEMBER OR OCTOBER. LET'S WATCH BECAUSE THE DATA IS VERY IMPORTANT AT THIS POINT. WHATEVER WAY YOU ARE LOOKING AT IT, YIELDS ARE HOLDING AT THIS LEVEL RIGHT NOW. IF OIL PRICES COME DOWN, I THINK THAT IS THE ONE HOPE THAT YIELDS WILL COME DOWN. ABEER: LET'S TALK ABOUT THE ESSENCE OF THIS ISSUE. IS THE BOND MARKET FACTORING IN GROWTH SCARE OR ARE THEY LOSING FAITH IN THE FED'S ABILITY TO MAINTAIN OR BRING DOWN INFLATION LEVELS? >> I DON'T THINK EITHER OF THOSE. I THINK WHAT THEY ARE FACTORING AT THIS POINT IS OF COURSE THERE IS A HUGE FISCAL IMBALANCE IN THE U.S. A LOT OF DEBT HAS BEEN ISSUED. ALSO THERE IS A LOT OF DEMAND FOR DEBT FROM HYPERSCALERS. SO THERE IS MORE AND MORE DEBT BEING ISSUED. THAT IS CAUSING YIELDS TO GO UP. IF YOU ARE LOOKING AT GROWTH IN THE U.S. IT IS VERY STRONG. IF YOU ARE LOOKING AT GDP GROWTH, IT IS NOT ALL BEING AFFECTED AT THIS POINT BY HIGHER INPUT PRICES. SO WHAT ARE WE REALLY WORRIED ABOUT? AT SOME POINT IS HYO OIL PRICE WILL START AFFECTING EMERGING MARKETS AND THE ECONOMY. THAT IS WHAT IS BEING PRICED IN. ABEER: LET'S TALK ABOUT THE IMPACT THIS WOULD HAVE ON EQUITIES. THE NASDAQ OF CREDIT CLOSED ONCE AGAIN AT A RECORD HIGH. WHY THAT DISCREPANCY? WHEN DOES THE BOND STORY STARTS CATCHING UP TO THE EQUITY STORY? OR DOES IT? >> IT USUALLY DOES. LOOKING AT THE HISTORIC PERSPECTIVE. THIS IS A VERY STRANGE ANOMALY. WHAT WE HAVE AT THIS POINT IS IN THE U.S. YOU HAVE RECORD EARNINGS GROWTH. IN QUARTER THREE THE EXPECTATIONS FOR 97% GROWTH. THEY CAN VERY WELL ABSORB THIS HIGHER BORROWING STORY. THAT IS VERY NARROW. BECAUSE WE KNOW IT IS ABOUT 10 COMPANIES IN THE S&P 500 THAT ARE DRIVING THIS RALLY. THIS IS ALL VERY REASONABLE. LOOKING AT THIS PICTURE AT THIS POINT THE NEXT CATALYST IS THE FED MEETING. AND THE THIRD QUARTER EARNINGS WHICH STARTED IN THE THIRD WEEK OF OCTOBER. WE WILL BE WATCHING THE SPACE. CLOSELY. ABEER: WE ARE GOING INTO THE FOURTH QUARTER ALREADY. WHAT DO YOU DO RIGHT NOW WITH GEOPOLITICAL SITUATION IN THE MIDDLE EAST VERY MUCH WHERE WAS A FEW MONTHS AGO. >> THAT IS THE THIRD FACTOR IN GEOPOLITICAL RELATIONS. IT AFFECTS OIL AND YIELDS IN THE ENTIRE WORLD. LOOKING AT HER ASSET ALLOCATION MODELS, WE ARE FULLY INVESTED. WE HAVE BEEN SLIGHTLY UNDERWEIGHT ON THE EMERGING MARKET DEBT. THAT IS THE ONE FIXED-INCOME CLASS THAT IS STILL POSITIVE YEAR TO DATE. WE ARE INVESTED IN EQUITIES. WE ARE STILL OVERWEIGHT ON THE U.S. IT IS A STORY A STORY OF VERY HIGH EARNINGS GROWTH. SUPERCONDUCTORS ARE STILL PERFORMING. WE STILL SAW THAT IN SEPTEMBER. ABEER: HEADING INTO THE EARNINGS SEASON, IT FEELS THAT WE JUST FINISHED ONE BUT NOW WE ARE HEADING INTO A NEW ONE. WE'LL BE LOOKING FOR AS GROWTH CATALYSTS? >> THE ANNOUNCEMENT FROM HYPERSCALERS. VERY MUCH EXPECTED TO GROW. MAYBE 100% OVER LAST YEAR. ABOUT 50% OF S&P COMPANIES ROTATE AROUND AI. THE MONETIZATION BENEFITS OF AI. CLOUD GROWTH WAS A VERY IMPORTANT FACTOR. I THINK WE WILL VERY CAREFULLY WATCH VERSUS MONETIZATION. ABEER: STILL STICKING WITHIN THE SAME TEAMS WE WERE LOOKING AT LAST QUARTER. THANK YOU AS ALWAYS FOR YOUR TIME THIS MORNING. COMING UP, THE BRAZILIAN PRESIDENTIAL ELECTION WILL BE DECIDED IN A RUNOFF IN THREE WEEKS. WE GO LIVE FOR THE LATEST DETAILS NEXT. THIS IS BLOOMBERG. ♪ ♪ ABEER: WELCOME BACK. THE BRAZILIAN PRESIDENTIAL ELECTION WILL BE DECIDED IN A RUNOFF VOTE ON OCTOBER 25. THIS IS AFTER BOLSONARO UNEXPECTEDLY FINISHED AHEAD OF THE PRESIDENT. IN THE FIRST ROUND. OUR BRAZIL COUNTRY CHIEF JOINS US NOW. TO DISCUSS THE DETAILS. IT IS A PLEASURE TO HAVE YOU ON THIS MORNING. CAN YOU TELL US HOW SURPRISING RESULT WAS? >> IT IS GREAT TO TALK TO YOU. AND TO TALK TO THE REGION. IT WAS A BIG SURPRISE. IT HAS BEEN A VERY LONG SUNDAY HERE. PEOPLE VOTED FOR THE LOWER HOUSE IN THE CONGRESS. AND THE SENATE FOR GOVERNORS. IT IS FAIR TO SAY THAT WE WERE EXPECTING THIS RACE FOR THE PRESIDENCY TO BE VERY TIGHT. ALL OF THE POLLS WE SAW OVER THE PAST THREE WEEKS OR SO WERE SHOWING THE PRESIDENT AHEAD OF BOLSONARO. AT THE END OF THE DAY ALL THE POLLS CLOSED AND WHAT WE SAW WAS BOLSONARO WITH A LEAD. MUCH BIGGER THAN ANYONE IN THE RIGHT WING MOVEMENT COULD HAVE EVER EXPECTED. THIS SHOULD SET THE TONE FOR THE CONVERSATION THAT WE ARE EXPECTING TO HAVE OVER THE NEXT THREE WEEKS AS YOU MENTIONED. WE WILL HAVE A RUNOFF FOR PRESIDENT ON OCTOBER 25. THE CONVERSATION RIGHT NOW WILL BE VERY DIFFERENT THAN THE ONE WE WERE EXPECTING. ABEER: WE TALK ABOUT THE RISE OF RIGHT-WING MOVEMENTS ACROSS THE BOARD REALLY. WHAT IS THE RESULT RIGHT NOW TELL US ABOUT THE STRENGTH OF BRAZIL'S PARTICULAR RIGHT WING MOVEMENT BEYOND BOLSONARO? >> THAT IS A MAJOR TOPIC OF DISCUSSION IN BRAZIL RIGHT NOW. IF YOU OPEN ANY MAJOR NEWS WEBSITE IN THE COUNTRY. IF YOU HEAR ANY POLITICAL ANALYST. YOU WILL NOTICE THAT THE FOCUS IS ACTUALLY ON THE FACT THAT THE SUPPORT THAT THE RIGHT WING AS A WHOLE RECEIVED TODAY IS WAY BEYOND WHAT ANYONE COULD EXPECT. THAT MEANS THEY EARNED MORE SEATS TO THE SENATE THAN ANYONE WAS ACTUALLY PREDICTING. INCLUDING IN MAJOR STATES. IF YOU LOOK AT THE GOVERNMENT OF THE STATE, BRAZIL HAS 27 DIFFERENT STATES. AND ONE DISTRICT. YOU SEE THE TENDENCY OF THE PARTIES THAT ARE BACKING BOLSONARO'S WHO WERE BEHIND TO THE FORMER PRESIDENT THAT HIS FATHER WHO WAS ACTUALLY IN JAIL BECAUSE HE WAS CONVICTED LAST YEAR OF TRYING A TO -- COUOP AGAINST HIS PREDECESSOR. AT THE END OF THE DAY, YOU SEE THIS GOING WAY TOWARD MORE SUPPORT FOR BOLSONARO IF HE EVENTUALLY BECOMES THE PRESIDENT. MORE THAN ANYONE WAS EXPECTING BEFORE. THE PRESIDENT HIMSELF AND THE LEFT-WING PARTIES. ABEER: FINALLY, HOW CAN INVESTORS REACT TO ALL OF THIS? I WAS NOTING THAT BRAZILIAN ETF IN JAPAN ROSE 7.6% AFTER THE RESULT WE SAW. TEACHERS ARE ALSO GAINING. CAN WE SEE MORE UPSIDE? >> YES. THAT IS CORRECT. IT IS THE FIRST WAY WE CAN TRACK THIS EXCITEMENT FOR A POTENTIAL BOLSONARO PRESIDENCY. MARKETS WERE EXPECTING TO GET TO BE NARROW. NOW THAT WE SEE THE OPPOSITE SCENARIO. WE ARE EXPECTING A VERY STRONG RALLY FOR BRAZILIAN ASSET STARTING TODAY. TOMORROW THE CURRENCIES COULD RISE UP TO 6% IN THE NEAR TERM. ACCORDING TO ESTIMATES BY JP MORGAN. WE HAVE STOCKS EXPECTED TO RISE 6% AS WELL. WE SHOULD SEE A VERY EXCITING MORNING TO SAY THE LEAST HERE IN SOUTH PAULA. -- SAO PAOLO. ABEER: JOINING US FROM SAO PA OLO. GOOD TO HAVE YOU HERE. TAIWAN'S AMBASSADOR TO THE UNITED STATES AS THE INVESTMENT AND CHIPS AND OTHER INDUSTRIES IS BOLSTERING RELATIONS WITH CHINA -- WASHINGTON. WE WILL HEAR MORE FROM HIM NEXT. THIS IS BLOOMBERG. ABEER: TAIWAN'S ENVOY TO THE U.S. SAYS HE IS CONFIDENT THAT THE ISLAND'S FUTURE WILL NOT BE ON THE MENU AND UPCOMING MEETINGS BETWEEN PRESIDENT TRUMP AND PRESIDENTS XI. HE SAYS TIES WITH THE U.S. ARE BEING IMPROVED THROUGH INVESTMENTS IN CHIPS AND OTHER INDUSTRIES. TAKE A LISTEN. >> ACTUALLY THAT IS THE STATE OF INCREASING U.S.-TAIWAN BUSINESS PARTNERSHIP THAT IS GROWING DAY BY DAY. IT IS NOT ONLY JUST AFTER PRESIDENT TRUMP'S LIBERATION DAY ANNOUNCEMENTS LAST YEAR. TAIWANESE COMPANIES HAVE BEEN LANDING IN THE U.S. SINCE YEARS AGO. I SAY THIS VERY FREQUENTLY. 15 YEARS AGO, 85% OF OUR INVESTMENT WAS GOING TO CHINA. TWO YEARS AGO IT CAME DOWN TO 7%. NOW IT IS ONLY 1%. GOING TO CHINA. WHERE IS THE MONEY COMING FROM? IT IS COMING TO THE UNITED STATES. THERE IS A GROWING INTEREST IN TAIWANESE COMPANIES TO INVEST IN THE UNITED STATES. WHAT YOU JUST SAID. WITH THE COMMERCIAL DELEGATION OF TAIWANESE COMPANIES. TRY TO LOOK FORWARD OPPORTUNITIES TO INVEST. THAT IS THE DIFFERENCE BETWEEN TAIWAN AND OTHER COUNTRIES. WE NOT ONLY TALK THE TALK, WE WALKED THE WALK. WE ARE YOUR FOURTH LARGEST TRADING PARTNER. WE ARE INVESTING HEAVILY IN THE UNITED STATES. NOT ONLY IS THE TSMC PHOENIX PROJECT QUITE A REMARKABLE ACHIEVEMENT, JUST THIS YEAR TAIWANESE COMPANIES HAVE PUSHED TO INVEST IN THE U.S. SOMEWHERE AROUND 50 BILLION POTENTIALLY. THAT COMES WITH THE AGREEMENT ON RECIPROCAL TRADE. THAT WAS SIGNED EARLY IN FEBRUARY. WE HAVE CLOSE TO INVEST 20 $500,000. ALSO MAKING $50 BILLION. IT IS ALREADY TAKING PLACE. >> QUICKLY BEFORE WE LET YOU GO I WANT TO ASK, TRUMP AND XI HAVE ANNOUNCED THEY MIGHT NEED TO COUPLE MORE TIMES THIS YEAR. IT IS SOMETHING YOU WOULD LIKE TO SEE COME OUT OF THOSE MEETINGS EITHER FROM THE U.S. OR CHINA? >> THE FACT THAT THE U.S. AND THE PEOPLE'S REPUBLIC OF CHINA ARE TRYING TO ACHIEVE THIS CONSTRUCTIVE STRATEGIC STABILITY IS A GOOD THING FOR THE TWO SIDES TO BETTER KNOW EACH OTHER AND REDUCE ANY MISUNDERSTANDINGS. THAT IS IMPORTANT. WE WANT TO MAKE SURE THAT TAIWAN IS NOT ON THE MENU. I THINK THE U.S. MADE IT VERY CLEAR THIS TIME, CHINA WANTED TO TAKE THE ISSUE OF TAIWAN AGAIN BUT THERE WAS A RESPONSE FROM THE U.S. SIDE. ABEER: THAT WAS THE AMBASSADOR, TAIWAN'S REPRESENTATIVE TO THE U.S. NOW LOOK AT SOME OF THE STORIES WE ARE FOLLOWING. AND OPENAI SAFETY RESEARCHER HAS QUIT THE COMPANY WARNING THAT LEADING DEVELOPERS ARE NOT DOING MUCH TO MANAGE GROWING RISKS. HE WORKED ON TRANSPARENCY EFFORTS WITHIN THE OPENAI SAFETY TEAM. HE SAID THE COMPANY IS MOVING TOO QUICKLY BETWEEN LAUNCHES. HE WROTE AN ESSAY FOR THE ATLANTIC ARGUING THAT AI FIRMS SHOULD OPERATE MORE LIKE NUCLEAR PLANTS WITH EXTENSIVE SAFEGUARDS AND REDUNDANCY. ONE OF THE BIGGEST GLOBAL AI INVESTORS SAYS HE IS WORRIED ABOUT SAFETY RISKS AS MACHINES GATHER MORE CAPABILITIES. HE REPEATED HIS REJECTION -- PROJECTION THAT AI WILL COUNT FOR 20% OF GLOBAL GDP BY 2040. HE IS CAUSING -- CALLING FOR GLOBAL COOPERATION ON AI GUARDRAILS. >> I THINK WE DO NOT HAVE ANY MORE HUMANS FIGHTING AGAINST HUMANS. THERE WILL BE A BIGGER ISSUE OF HUMAN AGAINST SUPER INTELLIGENCE. IF THE SUPER INTELLIGENCE BECOMES SO SMART AND IF DATA USAGE BY BAD HUMAN USE THE WRONG USAGE. THIS CAN BECOME SUPER DANGEROUS. ABEER: COMING UP, HE IS THE NEWEST GLOBAL INVESTMENT FIRM TO SET UP SHOP IN ABU DHABI. WE WILL TELL YOU WHY, NEXT. THIS IS BLOOMBERG. ♪ ABEER: GOOD MORNING. THIS IS "HORIZONS: MIDDLE EAST AND AFRICA." OUR TOP STORIES THIS MORNING. THE YEMEN GOVERNMENT STEPS UP ITS ATTEMPT -- BRAZIL GOING TO AN ELECTION RUNOFF AFTER BOLSONARO FINISHED AHEAD OF LULA DA SILVA IN THE FIRST ROUND. AND ASIA STOCKS ADVANCE ACTORS AFTER U.S. JOB DATA USES CONCERNS THAT THE FEDERAL RESERVE MAY NEED TO KEEP RAISING RATES. IT HAS JUST GONE 8:30 AM ACROSS THE EMIRATES. I'M A ABEER ABU OMAR IN DUBAI WITH A LOOK AT WHERE MARKETS ARE SITTING FOR YOU. WE ARE LOOKING AT THE OVERALL PICTURE IN THE UNITED STATES, AND THERE'S A DROP IN S&P FUTURES. THE S&P DID CLOSE IN THE GREEN ON FRIDAY. THE NASDAQ CLOSED AT A RECORD HIGH ON FRIDAY. WE ARE SEEING SOME MODERATION IN THE NASDAQ FUTURES MOVEMENT THIS MORNING, COMPLETELY UNCHANGED AS OF NOW, SO WE HAVE TO WAIT AND SEE AFTERSHOCK TRIP -- SOFTER THAN EXPECTED JOBS DATA IS LEADING TO SOME POSITIVITY IN THE ASIAN SESSION. PEOPLE LOOK ON THE EURO. IT FELL TO A 17 MONTH LOW ON POLITICAL AND FISCAL CONCERNS THAT FRANCE IS THE FOCAL POINT OF THAT FISCAL AND POLITICAL CONCERN THAT WE ARE LOOKING AT IN THE EUROPEAN PICTURE. BRENT CRUDE DROPPING, 0.8% LOWER. BUT STILL ABOVE THAT $100 PER BARREL LEVEL. THE RETURN OF 80% CAPACITY TO THE EAST-WEST PIPELINE. IT IS NOW AT 80% CAPACITY. 6 MILLION BARRELS, FOUR POINT 5 MILLION IF YOU DISCOUNT THE BARRELS THAT GO TO REFINERIES IN THE KINGDOM. THE YIELD ON THE 10 YEAR TREASURIES ARE AT 5%, DROPPING LESS THAN A BASIS POINT. LAST WEEK, THE 10 YEAR YIELDS ROSE 12 BASIS POINTS, A FIFTH STRAIGHT WEEKLY INCREASE, THE LONGEST SUCH STREAK SINCE APRIL 2020 FOUR. THAT CONTINUES TO BE A STORY HEADED INTO THE FOURTH QUARTER OF THIS YEAR. FOR A LOOK AT WHAT IS HAPPENING IN ASIAN MARKETS, WE HAVE WINNIE HSU STANDING IN HONG KONG FOR US. HAPPY MONDAY. WHAT ARE YOU LOOKING AT? WINNIE: GOOD. A PRETTY POSITIVE DAY FOR ASIAN STOCKS TO START THE WEEK. WE HAVE INVESTORS TRIMMING THEIR BETS FOR THE FEDERAL RESERVE'S RATE HIKE THIS MONTH, SUPPORTED BY THE SOFTER U.S. JOBS DATA. THAT IS LIFTING SENTIMENT IN ASIA MARKET TODAY. WE ARE SEEING TECH STOCKS IN TAIWAN AND JAPAN LEADING GAINS, UP BY MORE THAN 2%, WHILE SOUTH KOREA IS ON A HOLIDAY. WHEN IT COMES TO TAIWANESE STOCK MARKET, WE ARE SEEING ANOTHER RECORD HIGH AND REALLY GETTING CLOSER TO THAT 50,000 KEY LEVEL THAT WE ARE WATCHING. IT IS ALSO BEING SUPPORTED BY THE GAINS IN TSMC, UP BY AS MUCH AS 40% EARLIER TODAY, HAVING ITS BEST DAY IN TWO MONTHS AFTER ELON MUSK CONFIRMED TSMC IS IN COLLABORATION OR IN DISCUSSION ON A POTENTIAL COLLABORATION WITH TERAFAB. THAT IS SUPPORTING THE NAMES IN TAIWAN ALONG THE AI SUPPLY CHAIN. WE TAKE A LOOK AT THE WEAKNESS IN THE REGION, WHICH IS IN SHARES IN HONG KONG, WITH THE LACK OF SUPPORT BECAUSE THE MAINLAND CHINA MARKET IS IN -- ON HOLIDAY. WE ARE SEEING SUBDUED NUMBERS WHEN IT COMES TO SPENDING AND TRAVEL DURING THE GOLDEN WEEK. THAT IS WHY WE ARE SEEING WEAKNESS WHEN IT COMES TO CONSUMER NAMES AND TRAVEL NAMES IN CHINA. BACK TO YOU. ABEER: THANK YOU AS ALWAYS FOR THAT MARKET UPDATE. LET'S RETURN TO THE ENERGY SPACE. SAUDI ARAMCO HAS SLASHED PRICES FOR ITS FLAGSHIP CRUDE TO ASIA TO THE LOWEST LEVEL IN SIX YEARS AS GULF PRODUCERS BATTLE FOR MARKET SHARE AMID RISING FLOWS THROUGH THE STRAIT OF HORMUZ. BLOOMBERG'S OIL TRADING REPORTER WITH MORE FROM SINGAPORE NOW. GOOD MORNING, GOOD TO HAVE YOU WITH US. WALK US THROUGH WHY THIS SIZE AND SCOPE, THE LOWEST IN SIX YEARS FOR SAUDI ARABIA. >> GOOD MORNING. WHAT HAS HAPPENED IN SAUDI ARABIA, THEY HAVE JUST LOWERED THE OIL PRICE THEY WILL SELL NEXT MONTH TO ASIA CUSTOMERS, DROPPING THE PRICE BY THREE DOLLARS A BARREL FOR NEXT MONTH. WHICH COMES DESPITE EVENT REFINERS AND TRADERS WERE EXPECTING. THEY WERE EXPECTING A SMALL RISE IN PRICES. THE WIDER STORY BEING PRODUCERS IN THE MIDDLE EAST AND PERSIAN GULF BROADLY TRYING TO RAISE THE SALE AND GET AS MANY FLOWS OUT OF THE HORMUZ AND FIND WILLING CUSTOMERS IN ASIA AND THE WORLD. ONE OF THE WAYS IT HAS BEEN DOING THAT IS EMPHASIZED BY WHAT SAUDI ARAMCO HAS JUST DONE. THEY ARE TRYING TO GET THE FLOWS UP AS MUCH AS THEY CAN. THIS DOES NOT MEAN THAT SUPPLY IN THE REGION IS RISK-FREE. THERE HAS STILL BEEN ATTACKS IN THE REGION. TRADERS AND ANALYSTS SAYING FLOWS THROUGH THE HORMUZ HAVE BEEN RAISING BY AS MUCH AS 12 MILLION BARRELS A DAY. SO, WE HAVE A LOT OF OIL THAT IS COMING AND ALL THAT OIL NEEDS CUSTOMERS. THAT IS WHAT IS HAPPENING WITH SAUDI'S PRICING THIS MORNING. ABEER: SAUDI HAS ALSO COMPENSATED OR BROUGHT BACK SOME OF THE FLOWS. GOLDMAN SACHS AND JP MORGAN LAST WEEK WORTH NOTING THE EXTRA BARRELS FROM SAUDI ARABIA HAVE HELPED THE MIDDLE EAST OVERALL, THE MIDDLE EASTERN BARREL MOVEMENT. 19% WAS ACTUALLY THE NUMBER PUT OUT BY JP MORGAN. BUT WE ARE STILL SEEING TARGETING OF SHIPS AND VESSELS THROUGH THE WEEKEND. CAN YOU TELL US WHAT IS HAPPENING THERE, THE PHYSICAL MOVEMENT, THE LACK THEREOF IN THE STRAIT OF HORMUZ? YONGCHANG: IT IS DEFINITELY A VERY MIXED PICTURE. FLOWS COMING UP THROUGH HORMUZ, THROUGH THE PIPELINE, THROUGH THE RED SEA. FLOWS ARE DEFINITELY GOING UP. THEY ARE RETURNING TOWARDS WHERE THEY WERE BEFORE THE WAR. IT IS NOT RISK-FREE. THERE ARE STILL ATTACKS. THE EXTENT TO WHICH WE WILL NEVER FULLY KNOW. A LOT OF IT IS MURKY. WE STILL HAVE VESSELS TURNING OFF THEIR SATELLITE TRACKING. IT HAS BEEN INCREASINGLY DIFFICULT TO SHOW WHERE THE FLOWS ARE, HOW MUCH IS GETTING OUT AND THE ROOTS. THIS INCREASING SUPPLY IS WHAT IS PUSHING PRICES DOWN SLIGHTLY. IT IS PARTLY WHY THE SAUDI'S HAVE CHOSEN TO LOWER THEIR PRICES, TO FOLLOW WHERE THE MARKET IS GOING. THE SENSE IS THAT PRODUCERS ARE TRYING TO GET MORE AND MORE MARKET SHARE AND GET BACK INTO THE MARKET, TO GET BACK INTO THE GAME. ABEER: THANK YOU FOR THAT IMPORTANT UPDATE. WE ARE LOOKING AT BRENT CRUDE PRICES PARING SOME OF THE LOSSES FROM EARLIER IN THE SESSION. EURAZEO HAS OPENED ITS FIRST MIDDLE EAST OFFICE IN ABU DHABI. THE EUROPEAN ASSET MANAGEMENT FIRM JOINS OTHER PRIVATE MARKET FIRMS SUCH AS PANTHEON, EXPANDING IN THE REGION DESPITE GEOPOLITICAL TENSIONS. MATHIEU TEISSEIRE JOINS US NOW. GOOD MORNING, GOOD TO HAVE YOU WITH US. I WILL START WITH A STRAIGHTFORWARD ONE. WHY ABU DHABI AND WHY NOW? MATHIEU: THANK YOU VERY MUCH, AND GOOD TO BE HERE WITH YOU THIS MORNING. WHY ABU DHABI AND WHY NOW? IT WAS A NATURAL NEXT STEP FOR US. WE BUILD LONG TRUSTED RELATIONSHIPS. WHY NOW? SOME WOULD SAY THE TIMING IS NOT A COINCIDENCE. IT IS COMING AT A MORMON -- MOMENT WHERE MORE AND MORE INVESTORS WANT TO INVEST IN EUROPE FOR THE SAKE OF THE STABILITY. WE WOULD LIKE TO THINK -- THAT IS WHAT EURAZEO IS PROMOTING ON THE GROUND IN ABU DHABI. ABEER: THIS MOVE TO COME TO ABU DHABI AT THIS TIME, IS IT TO ACCESS GULF CAPITAL OR DEPLOY IT, OR IS IT A MIXTURE OF BOTH ELEMENTS? MATHIEU: IT IS A MIXTURE OF THE TWO. WE HAVE BEEN ABLE EURAZEO TO POSITION -- WE HAVE BEEN ABLE TO POSITION EURAZEO FOR INVESTORS. POSITIONING THE REGION FOR INNOVATION AND GROWTH, VERY MUCH INTERESTED AT LOOKING AT WHAT IS HAPPENING ON THE GROUND. WE SEE GREAT COMPANIES FROM TIME TO TIME, TO MAKE SOME LOCAL ACQUISITIONS. I WOULD SAY IT IS BOTH WAYS. IT ALSO CAPTURES LOCAL COMPANIES. ABEER: CAN YOU WALK US THROUGH SOME OF THE THINGS THAT INVESTORS IN THE REGION ARE ASKING FOR THAT YOU COULDN'T NECESSARILY SERVE FROM ABROAD? MATHIEU: THE CURRENT THAT PROXIMITY TO MATT -- PROXIMITY MATTERS, ESPECIALLY IN DIFFICULT TIMES. PARTNERSHIP IS NOT A BAD WORD. THAT IS WHY THIS OPENING IS THERE. WILL THAT BE MUCH DIFFERENT THAN WHAT WE USED TO DO? NOT REALLY. BUT IT WILL ALLOW US TO BE MORE CONNECTED LOCALLY. ABEER: LET ME TALK ABOUT THE BIG ENTITIES THAT ARE PART OF THIS REGION. WE TALK ABOUT SOME OF THE WORLD'S LARGEST SOVEREIGN WEALTH FUNDS THAT EXISTS HERE, IN SAUDI ARABIA, QATAR, KUWAIT. WHAT OPPORTUNITIES DO YOU SEE TO INVEST HERE? WHAT SECTORS BRING ABOUT YOUR INTEREST, OR DO YOU SEE THE PROXIMITY TO THOSE LARGEST SOVEREIGN WEALTH FUNDS AS A PLUS, GIVEN WHAT IS HAPPENING RIGHT NOW IN THE REGION? MATHIEU: THANK YOU FOR THE QUESTION. IN TERMS OF SECTORS, EURAZEO HAS SPENT MOST OF HIS TIME IN FINANCE, HEALTH CARE, AND ENVIRONMENTAL SOLUTIONS. WE SEE A LOT OF DYNAMISM IN THE REGION. IN THE NEXT FEW DAYS, WE WILL SEE TRANSACTIONS. ENVIRONMENTAL SOLUTIONS, CYBERSECURITY HAS A STRONG EDGE. THE MIDDLE EAST OVERALL IS VERY INTERESTING. THAT IS ONE. THOSE ARE THE SECTORS WHERE WE SPEND MOST OF OUR TIME LOOKING AT LOCAL OPPORTUNITIES. ABEER: WE WILL BE ON THE LOOKOUT FOR THAT DISCLOSURE. FINALLY, WHAT WOULD THEORETICALLY DOUBLE THE SIZE OF YOUR OPERATION IN THE NEXT FIVE YEARS OR SO? MATHIEU: ONE OF COURSE, THE DEVELOPMENT OF A PARTNERSHIP IN THE REGION, WHICH HAS MORE PROXIMITY. THAT IS WHAT WE ARE AIMING FOR. THE DEVELOPMENTS IN THE REGION IS A VERY STRONG ACCESS. AND WE SEE A NATURAL NEXT STEP FOR COMPANIES TO GROW INTERNATIONALLY. ABEER: THANK YOU SO MUCH FOR YOUR TIME. HOPEFULLY THE NEXT TIME WE SEE YOU HERE. FOR MORE OF THESE STORIES LOOKING INTO THE INTERSECTION OF POWER IN THE REGION, SIGN UP FOR OUR MIDEAST MONEY NEWSLETTER AT BLOOMBERG.COM. PAKISTAN SAYS FELLOW MEMBERS INCLUDING TURKEY AND SAUDI ARABIA WILL MEET IN RIYADH TODAY. THE FOREIGN DEFENSE MINISTERS AS WELL AS ARMY CHIEFS FROM THE THREE COUNTRIES ARE EXPECTED TO ATTEND TO DISCUSS THE CURRENT SITUATION IN SAUDI ARABIA. MEANWHILE, HUMANS INTERNATIONALLY RECOGNIZED GOVERNMENT HAS LAUNCHED A FULL-SCALE MILITARY CAMPAIGN TO RECAPTURE HOUTHI HELD TERRITORIES AFTER WEEKS OF ESCALATION BETWEEN THE IRAN BACKED GROUP AND SAUDI ARABIA. COMING UP, CRITICAL MINERALS AND DATA CENTERS REMAIN TOP INVESTMENT OPPORTUNITIES. THAT IS INCLUDING TWO THE LATEST INVESTOR'S GUIDE TO AFRICA. WE WILL BRING YOU THE DETAILS ON IT NEXT. THIS IS BLOOMBERG. ♪ ABEER: WELCOME BACK TO "HORIZONS: MIDDLE EAST AND AFRICA." BLOOMBERG BUSINESSWEEK IS OUT WITH ITS LATEST INVESTORS GUIDE TO AFRICA. CRITICAL MINERALS AND DATA CENTERS REMAIN TOP INVESTMENT OPPORTUNITIES ON THE CONTINENT. WE ARE JOINED BY BLOOMBERG'S AFRICA CORRESPONDENT JENNIFER ZABASAJJA TO TELL US EXACTLY WHY THAT WAS THE CASE. GOOD MORNING. CAN YOU TELL US MORE ABOUT WHY THE MAIN TAKEAWAY OF THIS GUIDE WAS THE FACT THAT THOSE REMAIN THE TOP INVESTMENT OPPORTUNITIES? JENNIFER: I THINK WE HAVE TO LOOK AT IT THROUGH THE LENS OF WHAT WE'VE SEEN OVER THE PAST FEW MONTHS. OF COURSE, THERE IS WHAT WE'VE SEEN IN THE MIDDLE EAST THAT HAS HAD AN IMPACT ON WHERE WE ARE SEEING CAPITAL FLOWS GLOBALLY, BUT ALSO ACROSS THE REGION. BUT ALSO WHAT THE DEMAND PICTURE LOOKS LIKE ACROSS THE CONTINENT HAS HAD AN IMPACT. YOU WERE POINTING OUT CRITICAL MINERALS. THAT HAS AGAIN PLAYED INTO THE THEME OF WHAT INVESTORS ARE FOCUSED ON. EVEN WHEN WE THINK ABOUT GLOBAL POWERS, THE U.S. AND CHINA, THAT HAS CONTINUED TO BE A THEME WE HAVE FOCUSED ON OVER THE PAST YEAR OR SO. WE ARE SEEING THAT IN INVESTMENT FLOWS AND THAT IS WHY THAT IS ONE OF THE MANY SECTORS THE FOCUS OF THIS INVESTORS GUIDE. $29.5 TRILLION IS THE NUMBER I WANT TO FOCUS ON BECAUSE THAT IS THE ESTIMATED MINERAL WEALTH THAT IS HELD ACROSS THE AFRICAN CONTINENT. MANY OF WHICH IS UNTAPPED. THE INVESTORS WE ARE SPEAKING WITH SEE IT AS A PRETTY CHILL -- AS A POTENTIAL OPPORTUNITY. DATA CENTERS IS ANOTHER OPPORTUNITY FOR INVESTMENT. THE PICTURES EXPECTED TO RISE OVER THE NEXT FEW YEARS FROM 0.4 GIGAWATTS TO 2.2 GIGAWATTS BY 2030, NEEDING ABOUT $20 BILLION IN CAPITAL. KEY MARKETS AND KEY SECTORS FOR DEMAND, FOR DATA CENTERS, IS OF COURSE GOING TO RISE OVER THE NEXT FEW YEARS. NEW TO THE GUIDE THIS YEAR, TWO NEW SECTORS WE FOCUSED ON OUR FERTILIZER AND TRANSPORT INFRASTRUCTURE BECAUSE THOSE HAVE PLAYED INTO THE PICTURE WE HAVE SEEN WITH THE MIDDLE EAST AND THE DEMAND PICTURE AND THE NEED FOR FERTILIZER. WHAT THIS GUIDE ACTUALLY DOES IS IMPORT SUBSTITUTION IS CURRENTLY -- 4% IS IMPORTED FOR FERTILIZER. WE ARE SEEING A NUMBER OF INVESTORS ON THE CONTINENT PRIORITIZING THAT, THE LIKES OF ELLIE GOOD GOTAY. WE ARE SEEING TRENDS. RENEWABLE ENERGY IS ANOTHER OPPORTUNITY. THIS IS A VERY NEW GUIDE, BUT A LOT OF IT IS SHAPED THROUGH THE LENS OF WHAT WE'VE SEEN THE PAST FEW MONTHS IN THE MIDDLE EAST, AND ALSO THROUGH GEOPOLITICAL REALIGNMENT. ABEER: THE NEW GUIDE FOR 2026, HOW IS IT DIFFERENT NOW FROM WHAT WE'VE SEEN IN PREVIOUS YEARS? JENNIFER: I POINTED OUT THE MIDDLE EAST CONFLICT AND HOW THAT IS FACTORING INTO HOW INVESTMENT FLOWS ARE FEEDING THROUGH ONTO THE CONTINENT. U.S. AND CHINA COMPETITION, WE ARE SEEING THAT THROUGH CRITICAL MINERALS AND A LOT OF DEALS THAT ARE BEING STRUCK AT THIS POINT IN TIME. WHAT HAS ALSO BEEN REALLY INTERESTING WITH THIS NEW SECTOR IS HOW WE HAVE SEEN THE DIFFERENT COUNTRIES MOVE AROUND ACROSS THIS LIST. WE SAW THE TOP COUNTRY THAT MADE THIS 2020 SIX AFRICA INVESTORS GUIDE IS MAURITIUS THIS YEAR. THERE'S A NUMBER OF RANKINGS THAT OUR COLLEAGUES WERE ABLE TO FACTOR INTO WHY WE ARE SEEING MORE INVESTMENT FLOWS INTO MAURITIUS. ALSO AS A RESULT OF THAT, WE ARE SEEING COUNTRIES LIKE SOUTH AFRICA DROPPING A FEW POINTS. WE ARE SEEING NIGERIA, WHICH WE HAVE REPORTED ON, RISING A FEW SPOTS BECAUSE OF HOW THEY HAVE DONE FROM AN INVESTMENT PERSPECTIVE. WE HAVE SEEN THE STOCK EXCHANGE DOING WELL. IT IS INTERESTING TO TAKE A LOOK AT IT FROM A REGIONAL PERSPECTIVE, A SECTOR PERSPECTIVE, AND A COUNTRY PERSPECTIVE. ABEER: THANK YOU FOR THAT UPDATE. BLOOMBERG STEVE AFRICA CORRESPONDENT JENNIFER ZABASAJJA. COMING UP, YOU CASE SUPERRICH ARE HEADING FOR THE EXIT. WE WILL DIG INTO THE REASONS NEXT. THIS IS BLOOMBERG. ♪ ABEER: WELCOME BACK TO "HORIZONS: MIDDLE EAST AND AFRICA." AN EXODUS OF THE SUPER RICH FROM THE U.K. APPEARS TO BE UNDERWAY AS CHANGES INTRODUCED BY THE RULING LABOUR PARTY BEGIN TO BITE. MISSED FIGURES WORTH BILLIONS ART LEAVING THE COUNTRY FOR TERRITORIES LIKE MONACO, SWITZERLAND, AND THE UAE. WE ARE JOINED BY OUR REPORTER FOR EXACTLY WHAT HE HAS FOUND OUT. GOOD TO HAVE YOU WITH US ON THE LATEST BIG TAKE. YOU HAVE BEEN CRUNCHING THE NUMBERS USING THE BLOOMBERG BILLIONAIRES INDEX. CAN YOU TELL US WHAT YOU'VE FOUND IN THIS FASCINATING NEW PIECE? >> GOOD MORNING. WE TRACKED ON THE BLOOMBERG BILLIONAIRES INDEX A RANKING OF THE WORLD'S BIGGEST FORTUNES. WE FOUND THAT THE TOP TIER OF NET WORTH IN THE U.K. WERE INCREASINGLY LEAVING. IT IS VERY INTERESTING BECAUSE IT IS NATIVES AND ULTRAHIGH NET WORTH FROM OVERSEAS. THE REASON WE ARE WRITING THIS NOW IS BECAUSE WE ARE AT A POTENTIAL TIPPING POINT. THE LATEST HIGH-PROFILE EXIT WE HAVE FOUND IS ONE OF OUR HOMEGROWN TALENTS, A FINANCE BILL IN THEIR -- BILLIONAIRE. THAT RAISES THE QUESTION, IF HE IS GOING, MAYBE WE REALLY DO HAVE A PROBLEM. IT HAS BEEN AN OPEN-ENDED QUESTION THE LAST TWO YEARS WHETHER THERE IS A WEALTH DRAIN GOING ON IN BRITAIN. WE ARE NOW WEEKS AWAY FROM THE NEXT BUDGET, SO IT IS AN INTERESTING TIME TO BE POSING THAT QUESTION, AND WHETHER TRYING TO ANSWER THE QUESTION WHETHER BRITAIN HAS A WEALTH DRAIN. ABEER: JUST DISCOUNTING THE FACT THAT WE ARE ALSO WAITING FOR THE BUDGET YOU JUST MENTIONED, FROM WHAT YOU ARE LOOKING AT RIGHT NOW, IS THIS EXODUS LIKELY TO CONTINUE, AND WHAT IMPACT WOULD THAT HAVE ON THE U.K. WITH EVERYTHING HAPPENING IN THE MACRO PICTURE? >> EXACTLY. THEY ARE VERY CONCERNED ABOUT TAX HIKES, SPECIFICALLY FOR CAPITAL GAINS. WEALTH THEY HAVE HAD TIED UP IN THEIR BUSINESSES. ANY CHANGES TO THAT, THEY ARE VERY SENSITIVE TO THAT. WHAT THAT WOULD LIKELY TRIGGER IS A CONTINUATION OF WHAT WE'VE SEEN THE LAST FEW YEARS OF ULTRAHIGH NET WORTH'S SAYING LONDON IS GREAT, I MAY BE BRITISH, BUT IT MAY MAKE SENSE FOR ME TO BE LIVING SOMEWHERE ELSE. IT IS NOT JUST AN INTERNAL ISSUE IN THE U.K.. THERE'S A GROWING NUMBER OF COUNTRIES OFFERING TAX INCENTIVES, FROM THE UAE TO WITHIN EUROPE, OFFERING INCENTIVES TO BE A RESIDENT IN THAT COUNTRY. THE LATEST EXAMPLE WE HAD, HE WENT TO GREECE. NOT THAT FAR AT ALL FROM THE U.K. IF WE HAVE ANY FURTHER TAX CHANGES, IT WILL LIKELY BE A CONTINUATION AND DEEPENING OF THE WEALTH DRAIN. ABEER: SOMETHING TO KEEP AN EYE ON. YOU HAVE BEEN DOING JUST THAT. THE LATEST ON THAT EXPOSE OF BILLIONAIRES. NOW A QUICK LOOK AT EQUITY SPACES BEFORE WE HEAD TO THE END OF OUR SHOW. WE ARE LOOKING AT A FLAT PICTURE FOR NASDAQ FUTURES BUT A SLIGHT DOWNSIDE MOVEMENT FOR THE OVERALL S&P GAUGE. S&P FUTURES TURNING 0.1% LOWER. DESPITE WHAT WE ARE SEEING IN THE OVERALL POLITICAL AND FISCAL PICTURE, EUROPE IS FLAT. THIS IS AS OIL PRICES DROP. WE KEEP AN EYE ON THE FLOWS OF ENERGY THROUGH THE STRAIT OF HORMUZ. WE ARE LOOKING AT BRENT CRUDE, 0.8%, STILL UNDER $100 A BARREL. BRENT CRUDE AROUND $90 A BARREL. THAT IS IT FOR HORIZONS MIDDLE EAST & AFRICA. STAY WITH US FOR "DAYBREAK: EUROPE." THIS IS BLOOMBERG.