Oil costs soared as a lot as 20 per cent to above $71 a barrel — probably the most in almost three a long time — when markets reopened after an assault this weekend on Saudi Arabia’s oil infrastructure greater than halved the nation’s manufacturing.

The dramatic rally, together with the most important proportion spike within the value of Brent crude since Saddam Hussein invaded Kuwait in 1990, units oil heading in the right direction for certainly one of its greatest one-day positive aspects.

The assault on Saturday, which was claimed by Houthi militias in Yemen however the US blamed on Iran, sharply elevated dangers in world power markets, which misplaced greater than 5 per cent of world crude manufacturing. It additionally dented Saudi Arabia’s fame as probably the most dependable provider of final resort.

The dominion, the world’s largest oil exporter, now faces weeks of restoration to full manufacturing capability. Fears of additional assaults — or retaliation — may additional destabilise power markets.

Saudi Arabia was ill-equipped to cope with the disruption amid new management at Saudi Aramco and the power ministry and a looming IPO, Nick Butler writes. (FT)

Within the information

Purdue claims chapter
Purdue Pharma, the opioid maker owned by members of the Sackler household, has filed for Chapter 11 chapter because it hopes to pressure holdout states to settle litigation. The New York attorney-general’s workplace mentioned it uncovered about $1bn of wire transfers from the Sacklers, together with into Swiss financial institution accounts, suggesting makes an attempt to protect the household’s wealth. (FT, NYT)

Brexit standstill
Steve Barclay conceded that the UK may stay in a transitional association with the EU by 2022 as Boris Johnson prepares to fulfill Jean-Claude Juncker in Luxembourg on Monday to debate a doable deal. The Lib Dems had been buoyant at a celebration assembly in Bournemouth, the place the occasion voted to revoke Brexit. Wolfgang Münchau writes that Italy’s current upheaval holds classes for Britain. (FT)

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Banks in PPI stand-off
A number of the UK’s largest banks are in a stand-off with the federal government over whether or not they need to hand over hundreds of thousands of kilos to compensate the collectors of people that purchased fee safety insurance coverage and later went bankrupt, in one of many world’s costliest banking scandals. (FT)

HKEX appeal offensive
Hong Kong’s bourse will step up efforts this week to purchase the London Inventory Trade Group by interesting on to shareholders, following the rejection on Friday of its £32bn supply. Our Large Learn delves into the unsolicited bid, which is testing the LSE’s post-Brexit loyalties amid tensions with China. (FT)

Frankfurt Motor Present stalls
The way forward for the world’s greatest motor present is unsure after a weekend of environmental protests introduced components of Frankfurt, which has hosted the motorshow since 1951, to a standstill. In the meantime, BMW is not going to renew the i3, its main electrical automobile. (FT)

China’s slowdown
Development in industrial output from Chinese language factories fell to a contemporary low in August, one other sign that the commerce warfare and slowing financial exercise are weighing on the world’s second-biggest economic system. Chinese language corporations have additionally grow to be internet sellers of world property this yr for the primary time in a decade. (FT)

Havoc in Hong Kong 
Professional-democracy protesters left a path of destruction throughout Hong Kong on Sunday, marching in defiance of a police ban and vandalising authorities buildings and subway stations. The anti-government demonstrations have now lasted greater than 100 days — and have a brand new anthem. (FT, Bloomberg)

French lodge group returns to Syria
Louvre Lodge Group will handle two luxurious lodges opening subsequent yr in Damascus, the primary western firm to return to Syria’s vacationer business since civil warfare broke out in 2011. (FT)

The day forward

Fb faces Libra questions
Fb will be quizzed on Monday by officers from 26 central banks, together with the Federal Reserve and the Financial institution of England, over its deliberate Libra digital forex. (FT)

Cobham takeover vote
Shareholders in UK aerospace firm Cobham will vote on the deliberate £4bn takeover by US personal fairness group Introduction Worldwide on Monday, which faces opposition from Sanderson Asset Administration, Cobham’s 11th-largest shareholder. (FT)

GM strike
Hundreds of Normal Motors employees are set to strike from midnight ET on Sunday within the first auto business walkout in additional than a decade, after talks broke down over pay and healthcare advantages on the firm’s US factories. (FT, WSJ)

What else we’re studying

Israel’s election kingmaker
As Israel goes to the polls on Tuesday for the second time in a yr, former defence minister Avigdor Lieberman is wooing secular safety hawks in a bid to fracture the rightwing vote — giving him energy over the destiny of Israel’s prime minister since 2009, Benjamin Netanyahu, who additionally faces a united Arab opposition. (FT)

Hidden M&A victims: employees
Many company mergers take no account of the acute prices in disruption and anxiousness, which in the end impacts productiveness. If executives devoted extra effort to addressing uncertainty, M&A offers may see a rise in success, Andrew Hill argues. (FT)

Notre-Dame’s poisonous fallout
When flames engulfed the Notre-Dame in April, 460 tons of lead within the roof and spire had been incinerated, scattering poisonous mud on to the streets, colleges and parks of Paris. 5 months later, French authorities haven’t disclosed contamination testing outcomes. Listed below are precautions to contemplate earlier than visiting with youngsters. (NYT)

Lunch with the FT
Pierre Lagrange, the 57-year-old Belgian maverick “hedgie” is a monetary nerd: an engineer who made a fortune main as much as the monetary crash after which in its aftermath. However his back-story is moderately edgier: innovator, fashionista, iconoclast, Harley rider and extra. And secretive his HQ actually is. (FT)

Ambani’s telecoms drive
Three years in the past, Asia’s richest man launched an Indian cell operator that sparked an overhaul of the world’s second-largest telecoms market. A number of hundred million subscribers later, Mukesh Ambani’s Reliance Industries is embarking on the following part of its plan to grow to be a tech big: promoting broadband. (FT)

Africa’s urbanisation ills
Urbanisation typically conjures pictures of younger professionals crammed into megacities, residing in pods in ever-taller skyscrapers. However some 10m persons are projected to flood into Lagos, Nigeria between 2020 and 2025, roughly 10 occasions the quantity of people that will grow to be Londoners. Learn extra in regards to the metropolis’s response in our Particular Report: How will we dwell in 2050? (FT)

Britain’s pupil housing bubble
Pupil lodging has grow to be an vital a part of Britain’s property sector, triggering a property growth in post-industrial cities. However there may be rising proof that the market is affected by oversupply. (FT)

Sexist jokes are sadly not outliers
An unlucky missive from CLSA’s Damian Kestel bolstered tedious, sexist clichés, nevertheless it was a reminder that whereas sensitivity to company sexism is bettering, we nonetheless have a protracted solution to go, Pilita Clark writes. (FT)

The grandmaster food regimen
Coaching for high chess gamers now consists of strict dietary and health regimens to keep away from extreme weight reduction throughout tournaments, when their stress responses mirror different elite athletes’: final yr, 21-year-old Russian grandmaster Mikhail Antipov was estimated to have burnt 560 energy in two hours of competitors — roughly the identical as Roger Federer in an hour of tennis. (ESPN)

Signal-up to Ethical Cash

This week our moral investing publication asks whether or not London can create a brand new inexperienced mortgage market? It additionally appears to be like on the dangers and rewards affect buyers can count on from frontier markets and Walmart’s new weapons coverage. Join right here.

Video of the day

Why sterling is on the rebound
The FT’s capital markets editor Katie Martin sees fading no-deal Brexit fears driving the pound’s restoration this week. (FT)

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