No legal basis to visit the sites. A man who was once one of the most powerful politicians in new york state has begun serving his prison sentence for corruption. Former Assembly SpeakerSheldon Silver reported to a prison in new york today. He was sentenced earlier this year to 6. 5 years behind bars. In 2015onvicted later but the appeals have kept him out of prison. Global news 24 hours a day on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am mark crumpton, this is bloomberg. It is 1 00 in new york in 1 00 a. M. In hong kong. Welcome to Bloomberg Markets. Here are the top stories that we are following today. The u. S. Housing search, prices rise as Mortgage Rates remain near record lows. We talk with tim mayopoulos, a former ceo of fannie mae. One thing that could hurt the bounce back in the economy, became laura. It is set to slam in the gulf coast as a category four storm. We have the latest. Plus, a conversation with the Dallas Mavericks owner about where investing opportunities are. First, a check of the markets. A new record high on the s p and nasdaq. Both climbing. Definitely the tech stocks waiting the way. The nasdaq up. You are also seeing a lift to 10 year yield head of a fiveyear auction that just occurred here. A record 51 billion. Coal is getting a lift and this is interesting. You are seeing real yields, the inflation adjusted rates remaining at near a record low of 1 . Those very low yields have been one of the drivers of one of this years biggest surprises which has been how strong the u. S. Housing market has remained throughout the recession. For example, numbers jumped to the highest level we have seen since 2006. Plus, stocks are reaching alltime highs. Many wonder how long this can continue. Joining us to discuss is tim mayopoulos, president of a lending platform used by many banks including wells fargo. He is also a ceo of fannie mae of the net last housing financial crisis. Thank you so much for being with us. Lets start with the resilience we have seen so far in the housing sector. Do you feel it is a little overdone or do you feel there is something really very real behind this momentum . Tim thanks for having me. I think housing has been strong and will continue to be strong. I think we will continue to have very low Interest Rates which will fuel refinancing activity. Those rates are increasing buying power among consumers. I think we will see a lot of activity in the Housing Market which will continue to drive prices up. One of the reasons for this is that first you have a lot of people looking to leave areas affected by the pandemic and move to other parts of the country. Second, you have a lot of people who are living and working and educating their children all in the same house and they feel like they need more space so they are searching for new homes. I think people have realized that they dont need to live where their employer is an so that is causing people to also think about where else they could move. All of these things are going to increase demand which will continue to drive up prices. The low Interest Rate environment will support that. It is exciting for those of us in the mortgage industry to help support this and for us to really help our lender customers make the change to allow them to meet consumer demand and allow lenders to get that all done. Lisa we are going to get to blend and the financing round. If i were talking and said lets rip up the script, i see you are talking about people moving away from where some of these companies are. Continuepect demand to in more of the suburban areas but continue in some of the big urban centers . Tim i think there is going to be demand for suburban homes. But i think it is too early to declare the death of american cities. I was living in new york city on 9 11. If you told me that 10 or 15 years later that new york would be even more vibrant than it was on september 12, 2001, i would not believe that. I do think that there is going to be continued push for people to seek homes in suburbans and rural areas. I think that will be a shortterm issue for cities that i dont think it is a longterm issue. Lisa lets talk about blend. You just raised more money for this company. Thewrote to become president last year. Can you talk about what role it serves seems it since it seems to be in more business to business type of platform . Tim sure. At blend what we are focused on is serving the major lenders in the country. Our customers represent over 250 lenders around the country. Our customers represent over one quarter of the u. S. Mortgage origination market and we are processing over 3. 5 billion of loans on the platform. I think the exciting thing for all of us working in technology and mortgage right now is that the change in Consumer Expectations around how quickly and easily they can get access to credit and the need to address that through technology is really quickly evolving. There is more change probably in the last few months in terms of driving technology then we probably would have expected in the last five years. Lisa people are stuck in a studio apartment and they want to get out of there and they want access to a mortgage so they can buy a suburban home with a backyard. How concerned are some of your clients about making sure some of the standards remain stringent enough to avoid what we saw in 2007 and 2008 . Tim having been at fannie mae i understand as well as anybody, probably better, the need to maintain credit standards. The great thing about technology income,all peoples assets, Employment Status can be verified visually. We are not relying on people submitting pieces of paper and having a lag in that data or some people mr. Presenting their situation. All of the data can be verified instantly. So it is really improving not only the speed and convenience for consumers, but it is increasing the quality of the mortgage. Lisa when i start seeing things like homebuilder stocks rising to new record highs and i see this incredible strength amid a recession that is devastating the labor market, you have to wonder at what point things are getting a little over their feet. I think i guess the fact that rates are low. What signs are you looking for . Tim i do think there is a segment of the country that has really suffered substantially economically as a result of the pandemic and we are not through that yet. That pain will continue to be suffered. But we had now for more than one supply ofearth of new housing in the u. S. We are not creating enough housing to compensate for the increased demand. What we are really seeing here is an imbalance in supply and demand that has driven prices up for many years and will continue to do that because even if homebuilders build as many houses as they can build, they are still not going to be able to replace all of the housing that is becoming obsolete as well as the increase in population. I think the fundamentals will remain strong. It does not mean we will not have shortterm issues or problems. But over the next few years, i think we will consist you to see a healthy market. Lisa before i let you go, i want to ask about privatizing the organization. People have been talking about this. Thisrenewing the push year. Others say it will lead to higher Mortgage Rates and other headaches for borrowers. What are the prospects for a privatization . Tim i think privatizing the companies is a complicated thing to do. I think it is good people are focused on doing that. I think it would be good for the Housing Finance system. It would allow them to act more like private companies, to become more innovative than they have been under government control. But raising the capital and going through the process of making that happen is a very substantial undertaking. I dont think that will happen in the next few months. I think it will be another it will be at least into next year, maybe beyond that before that gets accomplished. Lisa thank you so much for being with us. , the former ceo of fannie mae. I do want to bring you this headline. The United Kingdom is said to be considering a curve on tiktok data, but not a block of the london headquarters. This follows the u. S. s efforts to ban u. S. Business with tiktoks Parent Company save for a sale to an american better. That lackng, still in time before it is put into effect. Coming up, a conversation with the Dallas Mavericks owner. Find out where he sees Investment Opportunity in the covid19 era. From new york, this is bloomberg. Marketsis is bloomberg time for our stock of the hour. It is definitely a monster quarter, taking care of 28 record high since 2004. Taking it shares to a record high. Incredible to discuss. Obviously having its best days since 2004. Since the ipo, up nearly 10,000 . As for that monster order that analysts love, they gave adjusted earnings by more than 100 and without Strong Revenue numbers above 5 billion over 5. 2 billion dollars of revenue on the quarter. Take a look at this really nice growth. 5 yearoveryear despite the pandemic environment. Clearly benefiting from the pandemic environment. Other stocks in the Software Space rallying in a big way on these results including adobe and slack. All of these stocks but more than 7 . A huge rally for Software Stocks on that monster quarter by salesforce. Com. Lisa i like how you put again in there. Salesforce has a history of being a good investor. Is that what has driven its success . Abigail there are two pieces to their investing on this quarter. One piece is the fact that they cashed cached back back some of their investments including zoom video that accounted for nearly 700 million in revenue. The biggest piece is they are wellknown by some and not so much by others for the fact that they have done so many acquisitions over the last few years. 26 billion worth of acquisition. One software being the largest. Many are saying that this diversification away from just quarterin this past into the cloud is what helped drive these record results. Lisa thank you so much, abigail doolittle. Meanwhile, lets turn to mark cuban. He told David Rubenstein about the Investment Opportunities in tech amid the pandemic and the latest episode of the David Rubenstein show, hed appear conversation. You have a big Investment Business and you have said probably your gigantic investor in netflix and amazon and other companies and you have advisors that help advise you or you make your own decisions . Mark i make my own decisions. I used to trade a lot. I used to be very active as a traitor. Trader. In the 90s and early 2000 there was a lot less money chasing more stocks and now there is a lot more money chasing fewer stock so i just stick to the companies i believe in. 50. Ned netflix since i was i actually bought some more amazon in the high thousands. I have some scattered things beyond that that i have owned over the years that ive held onto. I no longer trade. Fo is strong. H is strong. Covid has change the world. It has people but it has helped people entrepreneurial. You said it is a good time to figure out new businesses. Is that a fair statement . Mark it is so unfortunate, but it is true. Byheard Warren Buffett say one in the street. So many Small Businesses are closing. So many Retail Stores are closing. Walls are going bankrupt. Companies that are unable to transition to selling digitally or taking full advantage of ecommerce are struggling. These companies are not sure about how to protect businesses. That uncertainty creates a lot of opportunity and combine that with people becoming more comfortable with purchasing online and living a digital lifestyle, i think there is a lot of unique opportunities available to people who are creative, who have a vision for the future. Wehink in 10, 15, 20 years will look back and there will be 30 worldclass companies that were created by people who we probably think are crazy right about now. Lisa that was Dallas Mavericks owner mark cuban. For more of that conversation, tune into David Rubensteins show tonight at 9 00 p. M. Eastern time. Laura up, hurricane rapidly intensifying to a category four hurricane. We will discuss the impacts on Oil Production, next. This is bloomberg. Hurricane laura is set to slam into the u. S. Golf course gulf coast thursday unleashing storm surges and winds that could inflict as much as 25 billion dollars in damaging. Damages. Yawger. Us now is bob this is such a 2020 year. What next can they throw at us . What are we looking at in terms of damage and disruption to production in the gulf coast . The storm cannot pick a worse place to hit. Largest four of the refineries in the u. S. Directly in the storms path. These are big refineries. A lot of your viewers are on the east coast. Turnpike,ry of on the these refineries are all at least two times larger than that facility. These are monster refineries. There are 3 Million Barrels of gasoline production shut in right now. Also there is 1. 5 Million Barrels of crude Oil Production offshore. Plus, there is the Colonial Pipeline that brings as many as 3 Million Barrels a day as far north as the new york city harbor area. That is also in the storms path. A lot of infrastructure in the path of this storm and it is a monster. Lisa this is the confusing aspect. It seems pretty destructive. Fifth oflike nearly a all u. S. Production stems from the scene targeted by this and the marco storm that did diminished somewhat and yet we are not seeing a boost to oil prices. People are saying look, there is so much crude in storage that this will not make a dent. Do you think that is accurate . Degree, thatlarge is accurate. Are 80oday, there million more barrels of crude oil in the u. S. Than there were last year at this time. Crude oil storage is was about 507 Million Barrels. The alltime record is 540. There is a lot of crude oil in the u. S. Another phenomenon, when the refineries shut down, they dont need crude oil to make vaseline. They basically use crude oil for one thing, it gets boiled and it makes gasoline. When you shut down those refineries, you no longer need the crude oil to make gasoline. So that is a big issue. Gasoline prices will probably increase to a certain degree. Crude oil will get stuff into storage stuffed into because there will be 3 Million Barrels per day going into refineries. Lisa it seemed like a worst Case Scenario for producers in that region given the fact that you have both low oil prices as well as intentional disruption to supply and then damages they have to pay for. Is that kind of how you see things . Robert it is an very unfortunate situation. Not only is it hitting the worst place possible, it is really coming at the worst possible time also. Like i said, there is going to be more crude oil stuffed into storage. We are going to have an oversupply situation as a result. It is hard to imagine it coming back really quick. The production platforms in the gulf, they could come back quickly. They are engineering marvels. They could withstand the storm. The Producer Companies can get employees back to platforms and they can go live. The refineries on the other hand, they are also engineering marvels, but they are vulnerable to flooding. Not to mention the fact that the surrounding areas are going to be damaged also. The workers are going to have to deal with their own personal lives. There will be power outages, trees across the road, it takes a lot more people to run a refinery than it does to work a production platform. Getting those people to a refinery, getting them to work in the environment that will exist in the wake of a category four hurricane will be challenging at best. That alone will have a drag on how long it takes for a refinery to open. You also have to take into consideration the flooding damage. There is a lot going on here. Gasoline will probably be at a shortage after the storm moves through the area. That will probably be the Biggest Issue here is gasoline. We are about 7 Million Barrels above last years levels. We are 80 million above in crude oil. You can do the math and you can tell the gasoline market is much tighter than the crude oil market. Crude oil is in tango. Gasoline is in backwardation. Those are market structures of the price curve. Lisa thank you so much for the insight. It is really telling right now. We are looking at crude prices a little higher. Over 40 a barrel but not the surge you would expect with refineries getting hit hard. Coming up, the former governor of the bank of canada and england has a new gig. Details on that, next. From new york, this is bloomberg. Mark hurricane laura is rapidly gaining strength. Forecasters say it could come ashore as a category four storm with what they say would be an unsurvivable 20 foot surge that could sink entire communities in texas and louisiana. Authorities are urging coastal residents to flee before it is too late. It is on track to arrive as the most powerful hurricane to strike the United States this year. Tensions are running high in kenosha. Killedple were shot and following a night of protests following a Police Shooting of a black man sunday. Police say the gunman may have been a white man, who was caught on cellphone video opening fire on the street with a semiautomatic rifle. David beth says investigators have footage and is confident the suspect will be arrested soon. The city has seen multiple protests since jacob blake w