>> GOOD MORNING, THIS IS "HORIZONS MIDDLE EAST AND

AFRICA." GLOBAL CHIP STOCKS STUMBLE AS

INVESTORS QUESTION THE LONGEVITY OF A.I.

BOOM WITH QUESTIONS OTHER DEBT AND DEMAND.

OIL EXTENDS A SHARP RETREAT AFTER PRESIDENT TRUMP SAYS

WASHINGTON AND TEHRAN ARE TALKING.

TRADERS WEIGH LOWER ESCALATION RISK AGAINST CONTINUED

UNCERTAINTY. AND SUBSIDIARY -- THEY JOIN US

TO DISCUSS EARNINGS AMID GEOPOLITICAL TENSIONS.

IT’S JUST GONE 8:00 A.M. IN THE EMIRATES, I’M ABEER ABU

OMAR IN DUBAI. GEOPOLITICS CONTINUE TO HAPPEN

IN THE REGION, A LOT IS HAPPENING IN MARKETS AS WELL

THIS MORNING. LET’S TAKE A QUICK LOOK AT

WHERE THINGS STAND AS OF THIS MORNING IN THE RED FOR EQUITIES.

S&P FUTURES, ONE TENTH OF EIGHT% LOWER.

THIS THEY ARE REPAIRING SOME LOSSES FROM EARLIER THAT THE

SESSION. ASIAN EQUITIES ARE TUMBLING

TODAY. 3% LOWER. KOSPI IN SOUTH KOREA A HALT IN

TRADING EARLIER IN THE SESSION. THIS IS ALL A.I., INVESTORS

QUESTIONING THE LONGEVITY OF THE A.I.

GAME, ESPECIALLY AHEAD OF EARNINGS COMING OUT OF THE

UNITED STATES WHEN IT COMES TO THOSE FOUR BIG MAG 7 COMPANIES

REPORTING OVER THE NEXT DAY OR SO.

WE’RE ALSO LOOKING AT PRESENT PRICES, LOWER THIS MORNING,

LOWER THAN 1%, BELOW THE $90 A BARREL HANDLE.

IS IT BECAUSE PRESIDENT TRUMP SAID A DEAL IS POSSIBLE WITH

IRAN? LET’S BEAR IN MIND HE’S SAID

THAT MULTIPLE TYPES OVER THE COURSE OF THIS WAR.

BUT YESTERDAY THAT NEWS OF HIM SAYING THAT A DEAL AND POSSIBLE

TALKS WITH IRANIAN COUNTERPARTS HAVE BROUGHT DOWN OIL PRICES BY

THE MOST IN THREE MONTHS. SO WE’RE SEEING 87 ON THE

BARREL FOR BRENT CRUDE PRICES. AND THE YIELD ON THE 10-YEAR

NOTES IN THE UNITED STATES THAT IS ALSO DROP TWO BASIS POINTS.

WE AWAIT THAT FOMC MEETING ON WEDNESDAY AND HAWKISH TILT,

WE’LL TALK MORE ON THE SHOW ABOUT THAT.

I WANT TO FLIP THE BOARD AND TAKE A LOOK AT A CHART THAT

WE’RE TAKING A LOOK AT THIS MORNING BY OUR MARKETS TEAMS.

AND LOOK AT WHAT IT’S TITLED. U.S. VOLATILITY STAYS ELEVATED.

THIS IS MULTIPLE MOVING PARTS. I WANT TO START WITH ASML, IT

TUMBLED BRINGING NVIDIA DOWN WITH IT.

S THE SENSUALLY BECAUSE OF A CHINESE STATE-BACKED FIRM

PRODUCING A CERTAIN CHIP MAKE MAG SHEEN THAT MAY THREATEN

ASML SALES AND SO WE’RE SEEING THE IMPACT OF THAT ON ASML BUT

ALSO ON THE VOLATILITY OF THAT SOX GAUGE THAT TRACKS THE

HARDWARE OR THE MEMORY CHIPS ESSENTIALLY.

SO FASCINATING CHART THERE WE WERE TAKING A LOOK AT EARLIER

THIS MORNING. BUT FOR A DEEPER LOOK IN WHAT

IS HAPPENING IN ASIAN MARKETS THIS MORNING, WE’VE GOT AVRIL

HONG IN OUR SINGAPORE STUDIO. AVRIL? AVRIL:

ASIA STOCKS TUMBLING TODAY. WE’RE SEEING THE ASIAN

BENCHMARK LOSING 3%. JUNE LOSSES NEARING 10%.

THE KOSPI IS IN THE SPOTLIGHT NOT JUST AS THE POSTER CHILD

FOR A.I. BUT THE POSTER CHILD FOR MARKET

VOLATILITY. AT ONE POINT TUMBLING 10.7%.

CIRCUIT BREAKERS ROLLED OUT A COUPLE OF TIMES ALREADY TODAY.

YOU’RE LOOKING AT IF THERE WERE THOSE LOSSES UPWARDS OF 10% ON

THE KOSPI THAT WOULD HAVE LEFT IT AS THIS WORST SESSION SINCE

THE MONTH OF MARCH. NOW THERE ARE TWO MAIN DRIVERS

FOR THE MARKET’S DECLINE TODAY. ONE AS YOU ALLUDED TO, THE

PROGRESS THAT CHINA SEEMS TO BE MAKING IN LITHOGRAPHY

MANUFACTURING. THE OTHER ELEMENT IS THE

CIRCULAR NATURE OF FINANCING AS WE HEAR REPORTING THAT NVIDIA

COULD BE GETTING $750 BILLION WORTH OF A.I.

SUPPLIED DEALS IS REALLY RAISING QUESTIONS.

HOW MUCH OF IT IS REAL DEMAND? AND AS WE SEE THAT, THIS IS

WHAT YOU’RE SEEING IN THE MARKET, THE CONCERNS AMONG

INVESTORS. I WOULD ALSO HIGHLIGHT THAT

WHEN IT COMES TO THE PROGRESS THAT CHINA IS MAKING ON

LITHOGRAPHY, IT COULD ALSO MEAN THAT THERE’S MORE CAPACITY

BEING CREATED THAT COULD COME PROSES VALUATIONS.

YOU’RE SEEING CHINESE CHIP-MAKING RELATED STOCKS

COMING UNDER PRESSURE TODAY AS WELL. ABEER:

AVRIL HONG IN SINGAPORE WITH THE LATEST ON THOSE MARKET

DETAILS. AT THE HEART OF ALL OF THIS IS

SEMICONDUCTOR, THEY ARE THE UP CENTER OF THE MARKET SELLOFF

TODAY AS RISKS COMPOUND. RISING LEVELS OF CORPORATE

LEVERAGE HAVE PUSHED THE COST OF NVIDIA’S DEBT HIGHER AFTER

IT ANNOUNCED FRESH DEALS. MULTIPLE TECH ADVANCES OUT OF

CHINA ARE THREATENING TO REJIG THE GLOBAL A.I.

ORDER ACROSS THE VALUE CHAIN. A STATE-BACKED FIRM HAS BEGUN

PRODUCE MAG SHEENS THAT COULD RIVAL ASML’S DOMINANCE IN THE

SPACE. ON THE MEMORY SIDE WE’VE GOT

CXMT MAKING A SPLASH IN ITS MARK DEBUT AND FINALLY NO

CHINESE A.I. MODELS ARE BEING -- NEW A.I.

CHINESE MODELS ARE BEING RELEASE HEAD TO PUBLIC.

LET’S CROSS TO HONG KONG AND WINNIE HSU IS THERE FOR US.

GOOD TO HAVE YOU ON. CAN YOU EXPLAIN TO US, NVIDIA’S

CIRCULAR FINANCING PROBLEM? WINNIE:

YEAH, GOOD MORNING, ABEER. AS AVRIL MENTIONED WE WERE

TALKING ABOUT SUMS OF $150 BILLION OF COMMITMENT WITH

NVIDIA ALONGSIDE SOME OF THESE PARTNERS THAT THEY ARE WORKING

WITH. NOW THIS HAS ACTUALLY BEEN A

PROBLEM SINCE LAST YEAR BUT IT IS BECOMING MORE OF A PROBLEM

NOW THAT WE ARE SEEING FURTHER CONCERNS AROUND THESE MASSIVE

SPENDING OF THE U.S. HYPERSCALERS.

NOW ONE EXAMPLE WE HAVE HEARD RECENTLY IS THAT COLLABORATION

WITH S.K. GROUP WHICH IS TO ABOUT $500

BILLION U.S. SPENT BETWEEN THE TWO COMPANIES

SO THAT MEANS S.K.

GROUP IS BUYING SOME OF THESE SUPERCOMPUTERS FROM NVIDIA,

WHILE NVIDIA BUYS MEMORY CHIPS FROM S.K.

HIGH HYNIX AND THE LATE ZEST THE COMMITMENT OR TALKS THEY

HAVE WITH OPEN A.I. SAYING THEY ARE POTENTIALLY

GOING TO BACKSTOP AS MUCH AS $250 BILLION FOR THE COMPANY TO

LEASE THE $500 BILLION WORTH OF DATA CENTER THAT SOFTBANK IS

NOW BUILDING IN OHIO. THIS IS A BIT OF A MORE

COMPLICATED SITUATION BECAUSE YOU HAVE NVIDIA SPENDING THAT

$250 BILLION ON SUPPORTING THE BUILDOUT OF DATA CENTER OF

SOFTBANK. SOFTBANK IS HOLDING KEY STAKES

OF OPEN A.I. AND LEASING THAT DATA CENTER TO

OPEN A.I. OPEN A.I. A KEY CUSTOMER OF NVIDIA IS NOW

GOING TO BUY FURTHER FROM NVIDIA OF THESE ADVANCED CHIPS.

SO YOU SEE HOW THIS KIND OF MONEY CIRCULATING AMONG THESE

COMPANIES AND THAT IS RAISING FURTHER CONCERNS IF THE DEMAND

IS INFLATED. AND IF THIS IS ALSO CAUSING

FURTHER RISK WHENEVER THERE IS A FALLOUT IN THE A.I. BOOM.

ABEER: ALL RIGHT. WINNIE WITH THAT UPDATE ON

EVERYTHING HAPPENING IN MARKETS, BLOOMBERG’S ASIA

EQUITIES REPORTER, WINNIE HSU, THANK YOU AS ALWAYS.

MARKETS ARE ALSO LEADING THE FED DECISION LATE THEY ARE BOOK

AND CITADEL EXPECTS WARSH TO DELIVER A SURPRISE HIKE.

THEY SAY SUCH A MOVE WOULD STRENGTHEN WARSH’S CREDIBILITY

IN THE BATTLE WITH INFLATION. IT WOULD ALSO PUT AN EMPATHETIC

END ON THE FORWARD GUIDANCE ERA. THERE’S A 40% CHANCE OF A

QUARTER POINT INCREASE ON WEDNESDAY, AN UNUSUALLY HIGH

DEGREE OF UNCERTAINTY SO CLOSE TO A FED DECISION.

SO JOINING US NOW TO UNPACK ALL OF THIS IS THE HEAD OF MANAGED

SOLUTIONS ADVISORY IN DUE BUY MAY HAVISH, GOOD TO HAVE YOU ON

THIS MORNING. CITADEL PREDICTING KEVIN WARSH

WOULD HAVE A 25 -- A HIKE.

DO YOU THINK THIS IS HAWKISH PREDICTING? MEHVISH:

GOOD MORNING, ABEER, THANK YOU FOR HAVING ME ON.

THERE’S A HEIGHTENED SENSITIVITY AROUND WHAT’S

HAPPEN, OIL PRICE, INFLATION EXPECTATIONS.

THAT’S SHIFTING THE EXPECTATIONS FOR WEDNESDAY.

OUR VIEW IS IT WILL LIKELY STAY ON HOLD BUT WITH THE LIMBED

FORWARD GUIDANCE, THE FACT THAT IT’S FED VARE WARSH’S SECOND

MEETING, THE AMOUNT OF DISSENT AT THE LAST MEET, WHY YOU HAVE

SO MUCH UNCERTAINTY. I THINK THE STREET WILL BE

CALLING EITHER SIDE BUT THERE’S JUST A HEIGHTENED SENSITIVITY

WHICH COULD LEAD TO VOLATILITY IN RATES GOING FORWARD AND WE

HAVE SEEN THAT OVER THE LAST WEEK WITH THE U.S.

10-YEAR HITTING A HIGH OVER THE

LAST 18 MONTHS OF 4.7%. ABEER: MEHVISH: LET’S TALK ABOUT WHAT’S

HAPPENING WITH MARKETS. AVRIL, OUR COLLEAGUE, WAS

TALKING EARLIER ABOUT SOME GAUGES FALLING INTO CORRECTION

TERRITORY. WHEN IT COMES TO OVERALL

EQUITIES, DO YOU THINK WE’RE ABOUT TO SEE SIGNS OF RISK

ASSETS THERE HEADING INTO CORRECTION?

OR ARE WE STARTING TO SEE SOMETHING BIGGER, MAYBE SIGNS

OF A BUBBLE STARTING TO BURST? MEHVISH:

I DO THINK THE FUNDAMENTALS OF THE A.I.

TRADE AND EARNINGS WE HAVE SEEN SO FAR YEAR-TO-DATE ACROSS THE

U.S. AND EUROPE INDICATE THAT ESSENTIALLY THIS IS MORE LIKELY

TO BE A CORRECTION. BUT I THINK THE KEY THING TO

NOTE IS WHEN I LOOK AT THE HEADLINE NEWS, IS THIS FIGHT

ALL BEING LOWER AND DESPITE THERE BEING A RESPITE FROM THE

U.S.-IRAN WAR, THE STOCKS ARE LOWER, IT SEEMS TO BE

CONCENTRATED IN THE TECH SPACE BUT I THINK THERE’S MULTIPLE

DRIVERS AS TO WHAT’S HAPPENING IN MARKS.

TECH, I THINK, SPECIFICALLY IS ASSOCIATED WITH THE COMPETITION

RISK YOU’RE SEEING FROM CHINA AND THE FACT THAT THE TRADE WAS

ACTUALLY A LITTLE BIT OVERDONE TO THE TOPSIDE. ABEER:

I WAS LOOKING AT YOUR NOTES FROM EARLIER YOU PREFER LOW

VOLATILITY STOCKS SO THAT TAKES OUT TECH AND WHAT WE’RE SEEING

THERE. SO DO YOU THINK THAT NOW A

ROTATION INTO GOOD OLD FINANCIALS WILL START HAPPEN,

FOR EXAMPLE? MEHVISH: THAT’S A REALLY GOOD POINT.

WHEN WE THINK ABOUT PORTFOLIO CONSTRUCTION, IF YOU THINK

ABOUT THE HEDGES YOU TRADITIONALLY HAVE IN THE

PORTFOLIO, YOU HAVE HEIGHTENED RATES VOLATILITY, GOLD HASN’T

PERFORMED EITHER. THEN WE’RE THINKING ABOUT HOW

TO GET DIVERSIFY CASE IN THE PORTFOLIO.

OUTSIDE OFALL TERNTIVE, ONE OF THE KEY AREAS IS HAVING THAT

DIVERSIFY CASE WITHIN YOUR EQUITY BUCKET.

LOW VOLATILITY STOCKS. QUALITY STOCKS.

WHICH TEND TO HAVE A LOW BEATER TO THE MARKET CAN HAD VALUABLE

DIVERSIFY CASE. THERE’S INTERESTING STATISTIC A

BLOOMBERG ARTICLE ABOUT THE DISPERSION OF RETURNS THAT

YOU’RE SEEING WITHIN SECTORS IN THE S&P.

THE S&P ITSELF IS NOT SHOWING MUCH MOVEMENT BUT THERE IS

INCREDIBLE DISPERSION WITHIN THE SECTOR.

SO FOR NOW YOU ARE SEEING VERY LOW CORRELATION AMONGST THE

SECTORS AND YOU’RE SEEING, YOU KNOW THAT ROTATION INTO MORE

DEFENSIVE SECTORS. ABEER: I WANT TO ALSO DISCUSS

SOMETHING THAT GETS BROUGHT UP EVERY NOW AND THEN THIS YEAR

BUT HAS THE POTENTIAL TO UPSEND MARKETS, PRIVATE CREDIT.

WE HAVE SEEN SIGN OF THE RISKS LOOMING THERE SINCE THE

BEGINNING OF THE YEAR. BUT WHEN IT COMES TO THE SECTOR

JUST GENERALLY, DO YOU THINK

THAT WE COULD SEE BIGGER RISKS EAMERICAING OVER THE NEXT SEVEN

TO 12 MONTHS? MEHVISH: THERE ARE A COUPLE OF IMPORTANT

FACTORS HERE. YOU’VE GOT TO CALL A GLOBAL

RECESSION AND SYSTEMIC RISK EVENT FOR YOU TO BE IMPACTING A

BOARD ASSET CLASS LIKE PRIVATE CREDIT.

STRUCTURALLY THE DEMAND REMAINS FOR THAT ASSET CLASS.

I THINK THE IMPORTANT THING TO NOTE IS THERE’S A LOT OF

NEGATIVE SENTIMENT AND HEADLINE RISK.

WHEN YOU TRANSLATE IT INTO THE FUNDAMENTALS OF CORE MANAGERS

OUT THERE AND PORTFOLIOS THEY HAVE, THEY ARE STILL

FUNDAMENTALLY VERY SOUND. IN TERMS OF WHAT WE HAVE ON OUR

PLATFORM IT REMAINS. THE IMPORTANT THING TO NOTE IS

THESE ARE ILL LIQUID ASSETS, BEING TOLD AS ILL LIQUID ASSETS.

SO IT’S IMPORTANT TO WEATHER THE STORM A BIT.

IF YOU LOOK AT THE VOLATILE I HAVE TO THE ASSET CLASS IT’S

STILL VERY LOW AND THE BROAD PRIVATE MARKET SPACE, NOT JUST

PRIVATE CREDIT INFRASTRUCTURE, PRIVATE EQUITY HAS VALUABLE

DIVERSIFY CASE BENEFITS IN CONTEXT OF A MULTIASSET

PORTFOLIO. ABEER: ALL RIGHT. MEHVISH, WE HAVE TO LEAVE IT

THERE WITH YOUR LAST THOUGHTS. MEHVISH ABUR OF BANK OF DUBAI.

COMING UP, THERE’S RENEWED OPTIMISM ON TALKS BETWEEN THE

U.S. AND IRAN. WE UNPACK THE LATEST THERE NEXT.

THIS IS BLOOMBERG. ♪

ABEER: WELCOME BACK TO "HORIZONS MIDDLE EAST & AFRICA."

OIL HAS EXTENDED ITS STEEP DECLINE AFTER PRESIDENT TRUMP

SAID THE U.S. AND IRAN WERE IN TALKS TO TRY

TO END THE MIDDLE EAST CONFLICT COME WITH BOTH SIDES CONTINUED

TO HOLD OFF ATTACKS. BRENT IS DIPPING TO $87 A

BARREL ALL WTI IS APPROACHING THE $80 HANDLE. PRES. TRUMP:

THEY WANT TO MEET, AND WE ARE MEETING.

WE WILL SEE WHAT HAPPENS. THERE'S A CHANCE WE COULD MAKE

A DEAL. WITHOUT WHAT WE DID THAT WOULDN'T BE TALKING TO US.

THEY REQUESTED A MEETING THROUGH THEIR SURROGATES AND

DIRECTLY. AND WE ARE MEETING AND GOOD

THINGS ARE GOING TO HAPPEN, I GUESS. ABEER:

NEGOTIATORS FROM IRAN AND OMAN ARE ALSO TRYING TO REACH A DEAL

TO RESTART SHIPPING FOR THE STRAIT OF HORMUZ.

AND PRESIDENT TRUMP IS SCHEDULED TO MEET ISRAELI PRIME

MINISTER BENJAMIN NETANYAHU LATER TODAY.

SO TO UNPACK EVERYTHING THAT'S HAPPENING IN THE REGION, JOIN

STEWART LIVING STONE WALLACE, BLOOMBERG'S EXECUTIVE EDITOR

FOR THE MIDDLE EAST, NORTH AFRICA, AND RUSSIA, AND DAN

WILLIAMS WHO IS IN WASHINGTON, D.C.

FOR NETANYAHU'S VISIT TODAY. I WANT TO START WITH THE LADIES

IN THE REGION, THIS BACK-AND-FORTH, WE SAW ATTACKS,

THEY STOPPED ON FRIDAY, FROM THE U.S. SIDE.

PRESIDENT TRUMP YESTERDAY SAYING THAT WE MIGHT SEE A

BREAKTHROUGH IN FACT, BUT MEANWHILE TRAFFIC IN THE STRAIT

OF HORMUZ IS STILL VERY MUCH PARALYZED.

CAN YOU WALK US THROUGH WHAT THE LATEST IS?

>> IN SOME RESPECTS WITH GOING BACK TO THE PREWAR SITUATION

WHERE THE FIGHTERS HAVE DEVOLVED INTO ONCE BETWEEN

IRAN'S PROXIES , AND THINKING ABOUT THE HOUTHI WE HAD SOME

INCOMING FRONT -- FROM WHAT MAY

BE THE WE LUCIUS -- MILITIAA -- STRAIGHT UP INTO THE RED SEA.

FROM THE PERSPECTIVE OF THE GLOBAL OIL MARKETS, IT'S NOT

LIKE THERE'S A SUDDEN RUSH OF OIL INTO THE MARKET, WHICH IS

WHEN YOU LOOK AT THE PRICE AND THINK THERE'S SOMETHING OF A

DISCONNECT BETWEEN WHAT'S ACTUALLY HAPPENING ON THE

GROUND AND WHAT'S HAPPENING IN TERMS OF THE PRICE.

THOSE COMMENTS FROM TRUMP, AGAIN YOU NEED CAUTION AROUND

THEM BECAUSE IS NOT LIKE THE FIRST TIME HE'S SAID THAT.

BUT ON THE OTHER HAND THEY HAVE STOPPED FIRING DIRECTLY IN THE

MIDDLE EAST AND HAS TO BE SOME HOPE THAT YOU CAN GET SOME SORT

OF NEGOTIATIONS GOING AGAIN. ABEER:

JUST CROSSING OVER TO YOU DAN AND WHERE YOU ARE, THERE'S AN

EXPECTATION OF THE PRIME MINISTER VISITING THE U.S.

TO MEET WITH PRESIDENT TRUMP LATER TODAY, HE SAID HE WILL

ASK HIM TO KEEP A CONSTANT WATCH AND THE NUCLEAR PROGRAM

AND WILL DISCUSS IRAN GENERALLY. WHAT OTHER EXPECTATIONS ARE YOU

LOOKING AT WHEN IT COMES TO PRIME MINISTER NETANYAHU'S

VISIT?

>> IT'S A LOW-KEY VISIT SO FAR, THAT'S FORMALLY BECAUSE HIS

MAIN REASON COMING TO JUDGE BY HIS STATEMENTS AROUND HIS VISIT

IS TO PAY RESPECTS TO THE LATE U.S. SENATOR LINDSEY GRAHAM AT A

MEMORIAL SERVICE TUESDAY IN WASHINGTON, THAT WILL BE

ATTENDED BY NETANYAHU AS WELL AS BY TRUMP AND THEY ARE

EXPECTED TO MEET AT THE WHITE HOUSE POTENTIALLY WITHOUT

REPORTERS PRESENT. THIS IS THE FIFTH, THE FIVE

MONTH MARK OF THIS WAR, EXACTLY FIVE MONTHS SINCE THE ALLIES

LAUNCHED IT. I DOUBT EITHER OF THEM WOULD'VE

WANTED TO REACH THIS POINT WITH THE WAR ONGOING, NOT

NECESSARILY A HAPPY MEETING, THOUGH IT IS THEIR EIGHTH

MEETING DURING TRUMP'S CURRENT TERM, SOMETHING OF A RECORD IN

TERMS OF A FOREIGN DIGNITARIES GETTING THAT KIND OF AUDIENCE.

I IMAGINE HE WILL WANT TO CLOSE RANKS WITH TRUMP ON WHAT THE

FUTURE HOLDS FOR THEIR CAMPAIGNS AS WELL AS DOWNSTREAM

SECONDARY EFFECTS OF THIS WAR, PROXY WARS AND THE LIKE,

INDIVIDUAL POWERS IN THE REGION PERHAPS SENSING A SHIFTING IN

THE REGIONAL ORDER, GIVEN THE CHANGING FORTUNES OF THE U.S.

POSITION IN THE REGION AND TRYING TO MAKE THEIR OWN DEALS

WITH TRUMP, NOT ALWAYS WITH THE APPROVAL OR TO THE SATISFACTION

OF THE ISRAELIS.

HE HAS BEEN TO TURKEY AND SAUDI ARABIA. ABEER:

DAN, THANK YOU, AS ALWAYS, DAN WILLIAMS AND STUART LIVINGSTON

ON WALLACE, THANK YOU BOTH FOR YOUR TIME.

STILL AHEAD THIS HOUR, WE WILL DISCUSS THE OUTLOOK FOR THE OIL

MARKETS, COMING UP IN ABOUT 20 MINUTES OR SO. SO STAY TUNED.

THIS IS BLOOMBERG.

ABEER: WELCOME BACK TO "HORIZONS MIDDLE EAST & AFRICA."

IN THE UNITED STATES, FLIGHTS HAVE BEEN GROUNDED DUE TO

STORMS AND EXTREME HEAT. MORE THAN 160 5 MILLION PEOPLE

ACROSS THE MIDWEST AND EAST COAST WERE UNDER HEAT WARNING,

ACCORDING TO THE NATIONAL WEATHER SERVICE.

THE HEATWAVE WAS EXPECTED TO SHIFT, SENDING TEMPERATURES

ACROSS CALIFORNIA SOARING. MEANWHILE, FIRES IN FRANCE AND

SPAIN HAVE STABILIZED, BUT EUROPE IS PREPARING FOR A

FOURTH HEATWAVE. AUTHORITIES IN SPAIN AND FRANCE

SAY THERE HAVE BEEN NO SIGNIFICANT FLAREUPS OVERNIGHT,

BUT THE BLAZES ARE YET TO BE CONTAINED.

CLIMATE CHANGE IS INTENSIFYING PERIODS OF EXTREME HEAT IN

EUROPE. CHINA SAYS UNITED STATES HAS

STOPPED REPLACEMENT -- CAP REPLACEMENT TARPS ON CHINESE

GOODS AT 20%. REVEALING DETAILS OF RECENT

TRADE TALKS FOR THE FIRST TIME, A COMMERCE MINISTER STATEMENT

SAYS IT CURRENTLY STANDS AT 12.5%, GIVING WASHINGTON ROOM

TO RAISE DUTIES FURTHER BEFORE HITTING THAT CEILING.

CHINA ALSO SAYS ITS OWN TRADE COUNTERMEASURES MEN IN, URGING

THE U.S. TO ROLL BACK UNILATERAL TARIFFS.

BEFORE WE HAD INTO THE BREAK, LET'S TAKE A QUICK LOOK AT

WHERE EQUITIES ARE SITTING THIS MORNING.

WE ARE LOOKING AT S&P FUTURES, .2% LOWER AT THIS POINT.

THE S&P 500 DID CLOSE FLAT FOR A SECOND STRAIGHT SESSION

YESTERDAY. INVESTORS ARE CLEARLY NOT YET

READY TO BRUSH ASIDE CONCERNS OVER THE ARTIFICIAL

INTELLIGENCE SECTOR, WITH NAMES LIKE NVIDIA.

SURGING BY THE MOST ON RECORD AFTER REPORTS THAT IT IS IN

TALKS FOR MORE THAN 750 BILLION DOLLARS OF AI INFRASTRUCTURE

DEALS. WE ARE ALSO KEEPING AN EYE ON

CAPEX THERE IN THOSE COMPANIES THAT ARE REPORTING OVER THE

NEXT COUPLE OF DAYS.

THE NASDAQ 100 FUTURES DROPPING .7, DOW FUTURES PRETTY MUCH

FLAT AND EURO STOXX 50 FUTURES UNCHANGED LATELY.

WE MOVE OVER TO THE OIL STORY AND WHAT BRENT CRUDE PRICES ARE

DOING THIS MORNING, THREE SESSIONS OF DECLINES EXTENDED

TODAY. $87.3 ON THE BARREL FOR BRENT

CRUDE. THIS IS THE DE-ESCALATION WE

ARE SEEING BETWEEN THE UNITED STATES AND IRAN.

PRESIDENT TRUMP SAYING THAT A DEAL AS POSSIBLE, YET ANOTHER

BREAKTHROUGH. WE ARE BEARING IN MIND THAT HE

HAS SAID THAT MULTIPLE TIMES OVER THE PAST FIVE MONTHS OR SO.

BUT RICK CRUDE AND IN MY CRUDE ARE ALSO DROPPING THIS MORNING

BECAUSE OF THAT DE-ESCALATION.

COMING UP, WE WILL DISCUSS TO DISCUSS SECOND-QUARTER EARNINGS

AMID GEOPOLITICAL TENSIONS. THIS IS BLOOMBERG.

JOUMANNA: GOOD -- ABEER: GOOD MORNING.

GLOBAL CHIP STOCKS STUMBLE AS INVESTORS QUESTION THE WRONG

JEVITY OF THE AI BOOM WITH CONCERNS OVER DEBT AND DEMAND.

ORIOLE EXTENDS A SHARP RETREAT AFTER PRESIDENT TRUMP SAYS

WASHINGTON AND TEHRAN ARE TALKING.

TRADERS WAY RISKS AGAINST CONTINUED UNCERTAINTY.

AND WE DISCUSSED SECOND-QUARTER EARNINGS AMID GEOPOLITICAL

TENSIONS. IT'S JUST GONE EIGHT: ACROSS

THE EMIRATES.

STILL A LOT TO GET THROUGH BUT BEFORE WE DO THAT, A QUICK LOOK

AT BENCHMARKS.

S&P FUTURES 3/10 LOWER.

WE DON'T KNOW IF THE MARKET IS SET FOR CORRECTION OR SOMETHING

BIGGER.

WE ARE KEEPING AN THE EARNINGS COMING OUT FROM FOUR OF THE MAG

7 COMPANIES OVER THE COURSE OF THE WEEK.

WE ARE LOOKING AT MORE THAN PROFIT BEATS, WE ARE LOOKING AT

WHETHER THE MONEY SPENT IS JUSTIFYING THE VALUATIONS.

ASIAN EQUITIES TUMBLING MORE AND MORE BY THE SECOND, 3.2%

LOWER, RED ACROSS THE SCREEN WHEN IT COMES TO THE MAJOR

BENCHMARKS IN ASIA. WE WILL HAVE A DEEPER DIVE INTO

THAT IN THE SECOND. BRENT CRUDE PRICES, $87 PER

BARREL, 1.2% LOWER THIS MORNING. DE-ESCALATION IN THE MIDDLE

EAST IS THE NAME OF THE GAME.

THE YIELD ON THE 10 YEAR YIELD, 4.63%.

FOMC MEETING TOMORROW, WHAT IS KEVIN MULLIN -- KEVIN WARSH

GOING TO DO?

WE HAVE TO WAIT AND SEE WHAT IT MEANS FOR MARKETS TOMORROW.

FOR A FLIP OF THE BOARD, WE ARE LOOKING AT A CHART TODAY THAT'S

QUITE INTERESTING AND THAT'S

ESSENTIALLY CHINESE INNOVATION KEEPING THE STOCK GAUGE OF

VOLATILITY QUITE HIGH.

I WANT TO FOCUS ON ONE NAME, THE DUTCH NAME, THE LOWEST

SINCE JUNE, ON THE NEWS THAT A CHINESE BACKED FIRM IS

PRODUCING MACHINES THAT COULD THREATEN ITS SALES.

THAT DRAGGED NVIDIA DOWN. THE MOST SUCCESSFUL ASPECT OF

U.S. TECHNOLOGY CURBS ON CHINA HAS

BEEN BANNING ASML FROM SELLING MACHINES TO CHINA BUT THAT

SEEMS TO BE AT RISK. WE ARE LOOKING AT THE

VOLATILITY, THE VIX INDEX VERSUS THE STOCKS GAUGE.

FOR MORE ON THE MOVES IN ASIA, WE HAVE AVRIL HONG FROM

SINGAPORE. AVRIL:

LOOKING BACK ON THE ASIA-PACIFIC BENCHMARK, LOOKING

AT THE MSCI AP DOWN 10% ROUGHLY. THAT'S CORRECTION TERRITORY.

I THINK ONE ANALYST PUT IT BEST, THE GREED HAS TURNED INTO

FEAR FOR AI INVESTORS. THE YEAR'S BIGGEST WINNERS HAVE

TURNED INTO THE BIGGEST LOSERS. YOU LOOK AT THE KOSPI AND HOW

IT'S HEADED FOR THE WORST SESSION SINCE MARCH.

SK SAMSUNG DECLINING UPWARDS OF 13% AND THE CONCERNS, NOT JUST

THE EXTENT IN WHICH CHINESE PLAYERS ARE MAKING PROGRESS ON

LITHOGRAPHY MANUFACTURING .

WITH THE SUPPLY DEALS IN MIND AND THE SELLING YOU ARE SEEING

IN THE TECH STOCKS ACROSS THE REGION, WE ARE SEEING THE

LITHOGRAPHY MAKERS AND CHINA, SOME OF THEM UP 20%, THAT'S

VERY INTERESTING. KEEP IN MIND THAT WITHIN CHINA,

THE PROGRESS COULD MEAN MORE CAPACITY CREATED THAT COULD

COMPRESS VALUATIONS. YOU ALSO SEEING A DOUBLE-EDGED

SWORD IN THE FORM OF CHINESE CHIPMAKERS COMING UNDER A LOT

OF PRESSURE IN TRADE TODAY. ABEER:

AVRIL HONG IN SINGAPORE, KEEPING AN EYE ON MASSIVE

DOWNWARD MOVES FOR US.

LET'S MOVE TO A REGIONAL STORY, A COMPANY HAS REPORTED $145

MILLION OF FIRST QUARTER PROFITS. THEY BEAT ESTIMATES.

THE FERTILIZER ARM POSTED RESULTS AMID TENSIONS IN THE

STRAIT OF HORMUZ WHICH IS HAD AN IMPACT ON OIL AND FERTILIZER

TRANSPORT. JOINING US TO DISCUSS IS THE

CEO. I WANT TO START WITH A SIMPLE

ONE EMMETT THE EARNINGS CAME OUT ABOUT 15 MINUTES OR SO, CAN

YOU WALK US THROUGH WHAT WE ARE SEEING?

>> SURE, THANKS FOR HAVING ME. WE ANNOUNCED EARNINGS OF

ADJUSTED EBIT TALK OF 370 $1 MILLION, BASICALLY DOUBLING OF

LAST YEAR. IT'S ABOUT A 12 X.

THE KEY DRIVER HAS BEEN THE INCREASE IN PRICES WITH

GEOPOLITICAL TENSIONS IN THE

MIDDLE EAST, ABOUT 30% OF WHAT WE PRODUCE COMES OUT OF THE

STRAIT OF HORMUZ. THE TEAM WAS ABLE TO WORK WELL

TO CAPITALIZE AND GET PRODUCT

OUT AND ALSO EGYPT AND ALGERIA, TO DELIVER TO GLOBAL CUSTOMERS.

PRICE IS THE MAIN DRIVER BUT THE ABILITY TO PRODUCE DURING

THIS DIFFICULT PERIOD HAS HELPED US ACHIEVE RESULTS.

ABEER: NOT TO IGNORE THE ELEPHANT IN

THE ROOM, THE GEOPOLITICAL SITUATION AND THE DAMAGES WE

ARE SEEING, HOW MUCH OF AN IMPACT DO YOU FORECAST FOR THAT

TO HAVE OVER THE NEXT COUPLE OF QUARTERS ESPECIALLY WITH THE

RED SEA COMING UNDER ATTACK. DO YOU THINK THAT WILL OFFSET

THE INCREASE IN PRICES YOU WERE ALLUDING TO?

AHMED: IT WAS THE PRICING RIGHT BEFORE

THE WAR, IT WAS AROUND $500 AND IT HIT $950 FOR UREA IN APRIL

AND CRASHED BACK DOWN IN JUNE. THE NORTH AMERICAN AND EUROPEAN

SEASONS HAD ENDED. THE MARKET FOUND ITS FOOTING IN

EARLY JUNE. WHAT WE'VE SEEN IN JULY IS A

RALLY IN CORN AND WHEAT PRICES DRIVEN BY GEOPOLITICAL

TENSIONS, EL NIÑO WEATHER PATTERNS.

IT'S RALLIED TO AROUND $550 PER TON IN JULY AND WE'VE SEEN

ELEVATED GAS PRICES GLOBALLY. THAT'S A MAJOR INPUT FOR

PRODUCERS PARTICULARLY IN EUROPE.

THEY'VE ALL CREATED A FLOOR ON THE PRICE.

IN TERMS OF THE PRODUCT, WITH THE RISING TENSIONS THE LAST

COUPLE OF WEEKS, IT'S COME ALMOST TO A HALT.

WE WILL SEE WHAT HAPPENS WITH THE NEGOTIATIONS AND HOW MUCH

CAN GET OUT THE NEXT SEVERAL MONTHS. ABEER:

THAT'S ON THE STRAIT OF HORMUZ BUT YOUR AND JERRY AND AND

EGYPTIAN EXPORTS GO THROUGH THE

RED SEA AND IT'S VERY FRESH SO I DON'T SUSPECT IT WOULD HAVE A

MARKET IMPACT YET OR TRANSLATE INTO THE NUMBERS BUT THAT'S THE

CASE, DO YOU PREDICT THAT TO BE A RISK GOING FORWARD?

AHMED: IN GENERAL IT'S A RISK FROM

WEST TO EAST AND EAST TO WEST IN THE RED SEA, IT'S GOING TO

BE A CHALLENGE. WE ARE IN A UNIQUE POSITION, IN

EGYPT WE CAN EXPORT FULLY FROM THE MEDITERRANEAN SEA AND WE

SIT AT THE MOUTH OF THE SUEZ CANAL.

GOING NORTH FROM EGYPT RATHER THAN EAST FROM EGYPT.

WE ARE ABLE TO CAPITALIZE ON CHANGES IN TRADE PATTERNS AND

TRADE FLOWS.

IT CREATES AN ISSUE GETTING THROUGH THE SUEZ CANAL IN

GENERAL.

WE ARE JUST SOUTH OF THE SUEZ CANAL AND ALGERIA IS UNAFFECTED.

ABEER: FINALLY, ON GEOGRAPHIES AND THE

DAMPENING DEMAND WE ARE SEEING, ESPECIALLY OUT OF CHINA, ARE

YOU LOOKING TO FURTHER DOUBLE DOWN ON GEOGRAPHIES IN THE

WEST, NAMELY EUROPE? AHMED: WE ARE CONSTANTLY LOOKING FOR

GROWTH OPPORTUNITIES. WE DID ANNOUNCE THAT OUR

DIVIDEND WILL GROW BY AT LEAST 20%, AT LEAST $150 MILLION AND

WE WILL FINALIZE THAT IN SEPTEMBER.

WE DO CONSTANTLY LOOK FOR GROWTH OPPORTUNITIES.

WE HAD AN ACQUISITION IN AUSTRALIA LAST YEAR, WE HAVE

STORAGE CAPABILITY AND WE WILL CONTINUE TO LOOK AT THE MARKETS

WHERE WE HAVE LOW FEEDSTOCK COSTS AND WAYS TO GROW THE

BUSINESS IN THE FUTURE IN ADDITION TO ORGANIC GROWTH

UNDER CONSTRUCTION IN THE UAE. ABEER:

ALL RIGHT, WE HAVE TO LEAVE IT THERE. THANK YOU FOR YOUR TIME.

COMING UP, OIL PRICES RETREAT

ON HOPES FOR A PAUSE IN STRIKES AND THE STRAIT OF HORMUZ COULD

REOPEN. WE WILL SPEAK WITH OUR GUEST

FOR HIS TAKE. THIS IS BLOOMBERG. ♪

ABEER: OIL PRICES CONTINUED TO SLIDE

THIS MORNING WITH BRENT FALLING THE MOST IN A THREE-MONTH

SPIRIT MARKETS RESPONDING TO STRIKES BY THE U.S. ON IRAN.

JOINING US NOW IS JORGE L EON. THANK YOU FOR JOINING.

OIL PRICES BELOW $90 PER BARREL, A MASSIVE

DECELERATION THE PAST THREE DAYS SINCE THE U.S.

STOPPED ATTACKING IRAN FRIDAY. IF THIS WERE TO GO ON INTO A

MORE PROTRACTED FIGHTING, THESE ESCALATIONS EVERY NOW AND THEN,

WHAT IS THE UPSIDE ON BRENT CRUDE PRICES. JORGE:

GOOD MORNING, THANK YOU FOR HAVING ME.

THAT'S THE QUESTION, WE DON'T KNOW WHAT'S GOING ON.

MILITARY INTERACTION HAS INCREASED IN THE LAST FEW WEEKS

IT REALLY DEPENDS ON WHAT HAPPENS FROM NOW ON.

WE HAVE DONE A LOT OF SCENARIO ANALYSIS IN THE LAST FEW DAYS

AND THERE ARE AREAS WHERE FIGHTING CONTINUES IN TRAFFIC

THIS -- THROUGH THE STRAIT OF HORMUZ REMAINS HALTED AND

BATTLES CONTINUE. IF THAT HAPPENS, THE SCENARIO

SAYS OIL PRICES COULD REACH 150 DOLLARS PER BARREL.

IT LOOKS LIKE THE LAST FEW HOURS THAT THE DIPLOMATIC

CHANNEL IS REOPENED, THE HOPES OF A NEW DEAL ARE STILL THERE

AND THAT'S WHY PRICES HAVE COME DOWN.

IN A VERY OPTIMISTIC SCENARIO WHERE THERE IS A DEAL TOMORROW,

LET'S SAY, PRICES SHOULD COME DOWN TO AROUND $75 PER BARREL.

ARE WE IN THE ESCALATION PHASE OR ARE WE REALLY LOOKING AT THE

DE-ESCALATION OUTLOOK GOING

FORWARD SO -- >> SO $75 AND $150 THE WORST-CASE SCENARIOS.

BUT THIS TIME AROUND IT'S NOT JUST THE STRAIT OF HORMUZ,

WE'RE SEEING THE RED SEA WHICH IS THE ALTERNATIVE ROUTE THAT

SAUDI HAS BEEN USING IN THE MIDST OF ALL OF THIS UNDER

ATTACK. WE ARE ALSO SEEING ACTION IN

RUSSIA SO WE ARE SEEING MULTIPLE ATTACKS HAPPEN AND

THAT MAKES IT A DIFFERENT TIME AROUND FROM WHAT WAS HAPPENING

IN MARCH. SO WHAT ARE THE IMPLICATIONS OF

THOSE DIFFERENT FRONTS BEING OPENED?

>> THAT IS A KEY ISSUE HERE, I THINK BACK IN MARCH, BACK IN

APRIL WE REACHED $120 PER BARREL.

THIS TIME AROUND, AS I'M AGENT, AND THE WORST CASE SCENARIO WE

COULD REACH 150 DOLLARS PER BARREL.

THERE ARE THREE ELEMENTS THAT EXPLAIN WHY THIS TIME AROUND

ESCALATION COULD BE POTENTIALLY MORE DANGEROUS FOR OIL PRICES.

THE FIRST ONE IS THAT THE IAEA COUNTRIES HAVE ALREADY USED 400

MILLION BARRELS OF SPR. THOSE BARRELS ARE ALREADY IN

THE MARKET, THAT MEANS WERE LESS PROTECTED, CALLING FOR

OTHER RELEASES OF SPR'S. U.S. SPR'S ARE AT THE LOWEST LEVEL

SINCE 1983. SO WE ARE A LITTLE LESS

PROTECTED THAN WE WERE BACK IN MARCH. THAT'S ONE ELEMENT.

THE SECOND ELEMENT AS YOU MENTIONED IS BACK IN MARCH WE

DID NOT HAVE ANY ACTION FROM THE HOUTHI NOW THERE'S THE

ACTUAL THREAT IN THE RED SEA THAT COULD LIMIT SAUDI CAPACITY.

AND LET'S NOT FORGET THAT DRONE ATTRACTS IN THE RUSSIAN

INFRASTRUCTURE HAVING AN IMPORTANT EFFECT ON RUSSIAN

CRUDE EXPORTS. IF YOU COMBINE THOSE THREE

ELEMENTS, THAT MEANS POTENTIALLY THE SITUATION COULD

BE MORE INFLATIONARY FOR OIL PRICES. ABEER:

ONE OF THE FIRST BREAKTHROUGHS WE SAW ABOUT THREE WEEKS AGO OR

SO, BIG BANKS WERE COMING ON SAYING WE MIGHT ASK WE SEE AN

OVERSUPPLY GLUT IN THE OIL MARKET BY THE END OF THIS YEAR.

DO YOU THINK THE PROSPECTS OF THAT ARE STILL VERY MUCH

PREVALENT WITH EVERYTHING THAT IS GOING ON? JORGE:

I THINK IT VERY MUCH DEPENDS IN WHAT HAPPENS WITH THE

NEGOTIATIONS. EITHER THERE IS A DEAL AND

TRAFFIC STRAIGHT UP OR MOODY'S RECOVERS, THERE'S NO TAX IN THE

RED SEA BY THE HOUTHI WE ARE LIKELY TO SEE AN OVERSUPPLY

MARKET. DON'T FORGET WE HAVE U.S.

SHALE REACTING TO HIGHER PRICES AND THE UAE COULD RAPIDLY RAMP

UP PRODUCTION. SO WE ARE LIKELY TO SEE AN

OVERSUPPLY MARKET AS SOON AS THE SITUATION IN THE MIDDLE

EAST NORMALIZES. ABEER:

JUST ONE MORE THING, WHEN IT COMES TO THOSE SHIPPING ROUTES

THAT SAUDI HAS BEEN USING, THE STRAIT OF HORMUZ OBVIOUSLY A

FIFTH OF THE WORLD'S ENERGY GOES THROUGH THERE.

THOSE ARE ALL HONOR RISK -- UNDER RISK RIGHT NOW.

WHAT ELSE COULD WE GO THROUGH IF WE CONTINUE TO SEE THIS

ESCALATION IN THE REGION? JORGE: IN THE SHORT-TERM, VERY LIMITED

OPTIONS TO BYPASS THE STRAIT OF HORMUZ. THERE ARE TWO IMPORTANT

BYPASSING OPTIONS WHICH IS THE EAST-WEST FROM SAUDI ARABIA BUT

THE PROBLEM THERE IS THAT FURTHER SOUTH, EXPORTS ARE

UNDER ATTACK AND WE ALSO HAVE THE UAE COME APART FROM THAT

THERE IS VERY LIMITED OPTIONS IN THE SHORT-TERM TO TRY TO

BYPASS THE STRAIT OF HORMUZ.

THAT'S WHY IT IS KEY TO UNDERSTAND AND TO FOLLOW THE

SITUATION IN THE MIDDLE EAST AND THE STRAIT OF HORMUZ, THAT

IS KEY TO UNDERSTAND HOW THE MARKET PRICES WILL REACT AND

WHETHER WERE GOING TO HAVE AN OVERSUPPLY OR NOT IN THE COMING

MONTHS. ABEER: ALL RIGHT, WE WILL HAVE TO

LEAVE IT THERE, BUT THANK YOU FOR YOUR TIME. JORGE LEON.

COMING UP, THE DEMOCRATIC REPUBLIC OF CONGO'S EBOLA

OUTBREAK IS POISED TO BECOME THE SECOND LARGEST ON RECORD

WITHIN DAYS. WE WILL HAVE THE LATEST ON THE

EPIDEMIC, NEXT. THIS IS BLOOMBERG.

ABEER: THE EBOLA OUTBREAK IN DEMOCRATIC REPUBLIC OF CONGO IS

POISED TO BECOME THE SECOND-LARGEST ON RECORD WITHIN

DAYS, AFTER MORE THAN EIGHT HUNDRED 50 CONFIRMED INFECTIONS

WERE REPORTED OVER THE PAST WEEK.

FOR MORE ON THIS STORY, LET'S BRING IN JENNIFER ZABASAJJA,

BLOOMBERG'S CHIEF AFRICA CORRESPONDENT IN JOHANNESBURG

FOR US. WE ARE SEEING A SPIKE IN CASES

OVER THE WEEKEND. WHAT CAN YOU TELL US ABOUT WHAT

IS HAPPENING THERE WHEN IT COMES TO THE EBOLA OUTBREAK?

JENNIFER: WE ARE SEEING THIS RECENT

OUTBREAK SPREADING FASTER THAN WE HAVE SEEN FROM PREVIOUS

OUTBREAKS. BY SOME ACCOUNTS IS SPREADING

ALMOST THREE TIMES AS FAST AS THE EBOLA OUTBREAK IN 2014-2016.

WE HAVE SEEN OVER THE PAST TWO WEEKS IS, WE SEEN THE DEATH

TOLL NEARLY DOUBLE, RIGHT NOW THE COUNT IT'S LIKE IF THE CASE

COUNT IS UP TO JUST ABOUT 3200 PEOPLE, THAT WAS ON SATURDAY,

WITH 856 NEW INFECTIONS REPORTED OVER THE PAST FEW DAYS.

THE DEATH TOLL HAS NEARLY DOUBLED IN THE LAST TWO WEEKS

TO JUST OVER 1400 PEOPLE. WHAT WE ARE HEARING FROM

OFFICIALS ON THE GROUND IS THAT SURELY THIS IS OF COURSE

HIGHLIGHTING THE SCALE OF THE EPIDEMIC AND THE SEVERITY FOR

MANY PEOPLE. BUT IT IS ALSO POINTING OUT

THAT WE HAVE BEEN ABLE TO TRACK INFECTIONS MORE CLEARLY.

STILL THERE ARE QUITE A LOT OF CHALLENGES ON THE GROUND WHICH

WE HAVE BEEN HEARING, CONTAINMENT EFFORTS ARE STILL

DIFFICULT. WE REPORTED ON THE FACT THAT

THIS AREA IS STILL VERY POROUS WITH PEOPLE GOING BACK AND

FORTH THROUGH THE BORDERS QUITE OFTEN.

THERE'S ARTISANAL MINING THAT HAS BECOME A DIFFICULTY AND

COURSE -- CROSS-BORDER TRADE. SO TRYING TO CONTAIN THIS HAS

BECOME DIFFICULT FOR PEOPLE ON THE GROUND.

WHILE PERHAPS WE ARE SEEING MORE INFECTIONS BEING ABLE TO

BE COUNTED, IT IS STILL QUITE SEVERE, ESPECIALLY AS WE SEE

THESE NUMBERS CONTINUE TO GO UP, ESPECIALLY CONSIDERING

THERE IS NO VACCINE AT THIS POINT IN TIME. ABEER:

BLOOMBERG'S CHIEF AFRICA CORRESPONDENT, JENNIFER

ZABASAJJA, KEEPING AN EYE OUT ON THE UNFORTUNATE SITUATION

THERE. WE ALSO ARE EXPECTING A BUSY

WEEK AHEAD FOR EUROPEAN BANKS. THEY ARE SET TO DELIVER

SECOND-QUARTER EARNINGS RESULTS. BARCLAYS WILL BE A KEY FOCUS AS

INVESTORS LOOK TO WHETHER THE U.K. LENDER WILL BENEFIT FROM

TRADING THAT BOOSTED WALL STREET BANKS.

LET'S BRING IN CHARLIE WELLS AND LONDON.

GOOD TO HAVE YOU ON THIS MORNING.

WHAT MORE CAN WE EXPECT FROM BARCLAYS RESULTS LATER TODAY

AND THE WIDER SPHERE OF THE LENDERS THERE?

>> ENVIRONMENT HAS BEEN PRETTY GOOD FOR A LOT OF THESE LARGE

LENDERS ACROSS THE GLOBE THAT WE BEEN SEEING, AS EARNINGS

HAVE BEEN COMING OUT. OVER THE PAST QUARTER IS THAT

GLOBAL VOLATILITY THAT IS REALLY BEEN BOOSTING A LOT OF

THESE TRADING DESKS ACROSS THE WORLD. BASICALLY GIVING A LOT OF

MOMENTUM TO SOME OF THESE FIRMS THAT HAVE BEEN ABLE TO BENEFIT

FROM THE VOLATILITY. WE ARE EXPECTING THAT FOR

BARCLAYS AS WELL. THERE TRADING DEFICIT IS

EXPECTED TO BRING IN NORTH OF $3.3 BILLION IN THAT QUARTER.

THAT IS A GREAT NUMBER AND WE WILL WATCH WHEN THESE RESULTS

BROUGHT. COMPARE THAT TO SOME OF THE U.S.

LENDERS, J.P. MORGAN, GOLDMAN SACHS, THEIR

TRADING DESKS BROUGHT IN SOME $12 BILLION EACH.

SO THE COMPARISONS THERE ARE REALLY TOUGH.

ANOTHER FACTOR BRINGING IN A BOOST FOR A LOT OF THESE BANKS

AND IT COULD FOR BARCLAYS AS WELL IS THE RATE ENVIRONMENT,

THE HIGHER FOR LONGER ENVIRONMENT THAT COULD HELP

BARCLAYS AS WELL IS KEY PROFITABILITY TARGETS.

THOSE TWO FACTORS COULD REALLY HELP BARCLAYS TODAY. ABEER:

BLOOMBERG'S CHARLIE WELLS, KEEPING ON TOP OF THOSE

EARNINGS WE ARE EXPECTING LATER TODAY.

NOW FOR A LOOK AT WHERE EQUITY BENCHMARK SO SITTING BEFORE WE

HEAD TOWARD THE END OF OUR SHOW, WE ARE TAKING A LOOK AT

S&P FUTURES, .3 LOWER, NASDAQ FUTURES ABOUT .8 LOWER, DOW

JONES FUTURES NOT DOING MUCH, AND EURO STOXX 50 FUTURES ALSO

NOT DOING MUCH. THIS MORNING WE ARE KEEPING AN

EYE ON THE AI STORY AND THE FOUR MAG 7 COMPANIES THAT ARE

SET TO REPORT. THE FOMC MEETING THAT'S

HAPPENING ALL WENT SAY, WE ARE ALSO EXPECTING OTHER CENTRAL

BANK DECISIONS INCLUDING THE BOE AND THE BOJ THIS WEEK AS

WELL. NO CHANGES ARE EXPECTED IN TERMS OF POLICY OR RATES THERE.

WE ARE ALSO KEEPING AN EYE ON OIL PRICES THAT ARE DROPPING

THIS MORNING BECAUSE OF THAT DE-ESCALATION IN THE MIDDLE

EAST. IN PRESIDENT TRUMP SAYING THAT A DEAL WITH IRAN IS STILL

VERY MUCH POSSIBLE. THAT IS IT FOR "HORIZONS MIDDLE

EAST & AFRICA."

STICK AROUND WITH US FOR DAYBREAK EUROPE.

THIS IS BLOOMBERG. ♪