South americas wealthiest nation is now taking in immigrants at a similar pace to the u. K. Relative to their populations. Is allowing all priests to absolve the faithful of what they call the grave sin of abortion. He is extending indefinitely be special permission he granted during the just ended only year of nursing. Officials describe the announcement as an extension of the churchs mercy. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. This is bloomberg and bloom berg. Where 30 minutes from the close of trading here in the u. S. Today,ocks on the rise while oil jumped on optimism that opec will reach top output. President elect donald trump is on the hunt for the next treasury secretary and his meeting suggests hes looking for a candidate with the wall street experience. We will take a closer look at the top contenders. All eyes on europe where the rising populist will italy or france the next shoe to drop . Top of mind as three to may begins to lay out her plans to leave year opinion. We will hear from Jeremy Corbyn later this hour. Lets kick things off with the major indexes and equities. If that they are all at record highs. Bloomberg Abigail Doolittle is standing by. Pretty amazing. We almost looking at quietly bullish trading. Theres not a lot of exuberance but very bullish because we have the three major averages all trading at record highs. Basis, a closing record high. Has happenede that since august 15. The Top Performing sector, energy being boosted by Marathon Petroleum along with chesapeake energy. Behind this we have a nice rally in oil. Isay up nearly 4 as opec saying there close to working on a supply cut deal. As for the top performer, Marathon Petroleum. We have a separate situation outside of oil. Elliott management has urged Marathon Petroleum to split into three different businesses. They could unlock up to 19 billion that his company after its been out for marathon, oil is severely undervalued. As for the macro driver behind all this, lets take a look at the chart of oil. This is a threeyear charge of oil. This year we see that chaerrt of oil. Typically this is bullish. It tells us that the buyers are in control. Perhaps this happens again. Plus we have what appears to be a bottoming action or perhaps bullish action over the medium to long term. Oil appears to be bullish at this time. Scarlet thank you so much. Some have described the selloff in the u. S. Bond market as a bloodbath and a seismic shift. Our rising guesses rising treasury yields can be exhibited to inflation expectations. Joining us now is Oppenheimer Fund senior client manager. Thank you very much for joining us. Certainly the defining characteristic of the post election landscape has been this treasury celebrates higher pretty much everywhere. Where is the connection between the election and this . Ira the missing piece from the recovery has not been low rates. Monetary policy has done everything they can. Now with the population movement, maybe not so much the u. K. But in the u. S. Might actually get some fiscal stimulus which could drive growth and inflation higher. I get asked all the time, have the markets gone too far . Yearhere around 2 10 inflation rate. It is probably about right and we are pretty close to that. The lee towards the top of yield range for 10 year treasuries. Scarlet we are not just looking at the u. S. But around the globe. It is a global phenomenon. Even if we have reason to push yield higher in the u. S. Are those reasons justified elsewhere . Ira in some cases. Like europe, maybe it is. Very stable growth, inflation is known to be modestly higher than what expectations were six months ago. But that does not mean it will necessarily be high. Should you have negative 10 year rates in germany, probably not. Japan is a different story. There you have a central bank that is saying if youll gets much above zero week will get if yield gets above zero it is not meaningfully away from zero enough to act. But if that threat is realized and they come in and buy 7 by several hundred thousand yen having risingp bond yields in a lot of the developed world. The emerging world is much more idiosyncratic. Get this fiscal stimulus in theory and then we get higher rates, higher inflation expectation. Lets talk about the fed. Do, how does a change their timetable, and how does it hurt the economy . First . Ppens after this effect . . Yields, another getting basis points close to 3 you can see a significant slowdown in the Housing Market and maybe purchase of things that could be interestrate rate sensitive. Automobiles, for example. If that were to happen you can see the Federal Reserve take a more cautious stance being reluctant to hike. Everything stays long in the state that it is, even with bond yields 100 basis points, 1 higher than they were a few months before. Then the Federal Reserve would likely continue to hike. Problem is we have a lot of uncertainty. The market is pricing in a lot of good news. We do not know. Do not know what any Infrastructure Spending out of washington will look like. We dont know if it will be inflationary because there are other global and domestic factors that are impacting inflation. At some point the market will find an equilibrium. Then we will wait for the actual news to be realized or not. Pensioners should not be too early in celebrating just yet because as the yields rise, they are finally getting some income. Income fromg treasuries plunged. It has been a slippery slope. Bond pricesep his down and yield higher you can see a turnaround. Ira you could. And if you have additional fiscal stimulus, which means higher deficits, you will have more bonds in the market. More volume to do that. One of the things this has helped is how it has health insurers. A lot of asset Liability Managers who need body yields 5 , you can find those now. That is one of the reasons it has been tricky for the 30 year yield to get above 3 . 3 you ask me in 2007, we see 30 year yields, i would say no way. But this backup in yields does help a lot of those managers. Joe people have been asking for fiscal stimulus for a long time cap time. We really could use more deficit spending to boost the economy. Now we are at 4. 9 unemployment. By some measures, wage growth up to 3. 9 . If there is a big infrastructure deficitlet stimulus and it ends up competing with other industries in the private sector labor construction, housing does that help the economy or does it have an effect of boozing prices without actually adding more boosting prices without adding more aggregate demand . Think that your point is well taken in that come are you going to push wages too high and will you wind up getting a price push on inflation . The answer is probably not. Morning, was said this one of the things he noted was the quality of jobs is not there. There is an issue where you wind up with Infrastructure Spending and more construction jobs overall, assuming there are places where unemployment is still high and underemployment is high, then that would help everyone and certainly help those people. Joe so there are places where it is still slacking. Ira thats right. Monetary policy cannot help that. Ofrlet there are a lot postelection narratives going on right now, most are straightforward. Which narratives do not make sense and therefore provide opportunity for an investor . Ira 10 get that you can wind up with trained body yields that wind up very high. What we have cold normal prior to 2007 called normal prior to 2007. The situation where you can get there is where the Federal Reserve makes changes to their Balance Sheet and they sell a lot. That is probably the only realistic way. Tendso, bond strategists to be famously bearish on bond. Every year there rate forecasts are usually too high or the consensus the race fall below expectations. Could we get into another situation where bond strategists , we do not see a bear market when it comes . Completelys possible. Everyone has been talking about the death of the 40 year bond rally. One of the issues one of the inputs to where yields are going to go is where the real economy goes. Forecasting that sometimes is tricky because you have shock spirit you have a European Crisis in 2011. Papernd up having the tantrum in 2013. You have a lot of different issues that wind up making your economic forecasts incorrect, so therefore your yield forecasts are incorrect. But that is a distinct possibility. Joe ira, thank you very much. Up, britishing Prime Minister theresa may says the u. K. Will be the eu by march 2019. We will have more on the transition with Jeremy Corbyn. This is bloomberg. Today bloomberg said that with u. K. Labor party leader Jeremy Corbyn and discussed trump. As well as donald at think state intervention alongside private capital can be very good. If you look at the history of states Industrial Developments in italy and germany, there has been a very substantial state roleplayed. There is an Important Role for that. Industryng the steel by nonintervention is a bad thing. Supporting the Steel Industry by intervention is a good thing because it revives the platform for our Manufacturing Industry to develop. Theresa may earlier a dow list calls to avoid what would you say in her shoes . Mr. Corbyn first of all, make it very clear we intend to make sure theres Market Access for British Companies to have trade and that the rights that have been through european membership will be defended and continued and we intend to work with europe in the future. Brexita of the hard it would be very damaging. Is is britain headed for a hard brexit . Every trade union i have met come every group of residents and workers i have met are concerned about it. Are we heading for it or not . The problem is the government will not set out a proper timetable for it or the for it. All the havoc all they have brexit meansis brexit. Would you support the u. K. Leaving the union . It is also about questions of the power of National Governments to invest in their own industries and also the power of National Government to take industries such as Oil Companies into public ownership. We do not wish to join an organization which restricts us from doing that. We wish to trade with the rest of the world also have a human sustainable agenda on trade policies as well as and im not convinced that will be possible. Im wondering how concerned with france. Is it a failure of the left that mores seem to be voting in rightwing candidates both in europe and in the u. S. . Mr. Corbyn there has been a fundamental change in politics. They have changed a lot over the past 10 years. The parties of the left that supported austerity in 2008 and 2009, then in the case of greece, implementing very severe forms of austerity lost quite badly. As in the United States. What is interesting is the anger of workingclass communities at the lack of investment, jobs come opportunities, and the underinvestment in housing and Health Services plays out two ways. They can either blame minorities, as with trump, as with the right all across europe. Or they can look to the the left arevices offering, such as a huge support Bernie Sanders achieved in the United States and the enormous increase in Labour Party Membership in this country. The u. K. Is considering inviting president elect donald trump to visit britain on an official state visit. Have you asked to meet the president elect . Mr. Corbyn i will meet the president elect and i will make it very clear that i absolutely and totally deplore the comments he made during his president ial campaign in respect to women, in respect to minorities and the way he saw to blame. Hardworking mexicans dropped the country and throughout the country and very hardworking muslims. And also the idea can run it, race the grotesque levels of inequality that will bring about is not a way forward. I want to live in a world where we do not all go to war or live in a world where we are dedicated to sustaining our environment and our economies so that we do not have these appalling left behind communities, as you find over the Great Lakes Region of the United States. As you find in many parts of europe, and in many parts of our own country. That was u. K. Labor party leader Jeremy Corbyn. Time for thes Bloomberg Business flash. Amazon is considering a Premium Sports package with primary worship according to a report from the wall street journal. They have reportedly been in talks with the nba, elevate mlb, and nfl. Also Even NationalLeague Soccer games. Insurance is buying countryt array into the of japan. A deal could be signed as early as this week. Walmart is kicking off cyber monday on black friday. Cyber monday is typically the busiest day of the year from my shopping. They say they will have 23 million items on sale online compared to 8 million last year. Kanye west is missing out on about 30 million in potential ticket sales after abruptly canceling the rest of his to her. Hadrding to live nation, he 21 days left on his to her. He has been taking in more than 1. 4 million a night on ticket sales alone, meaning he is leaving about 30. 2 million on the table. Joe up next, hedge fund donaldaire when long on trump when most of wall street went short. It look at how is that is paying off. This is bloomberg. Trumps election is pushing shares way higher. They look at that move over the last two weeks. It is parabolic. There the mortgage financing agencies at one point were private companies with implicit government backing for the government took them over. John paulson has been making big bets on these. Seeing both agencies their shares more than double in value since the election. Anald trump has not given specific plan coming to this but investors are betting that he will potentially make it so that their profits go back to shareholders and not just to the treasury. This is something we are keeping a close eye on, certainly something john paulson is benefiting from. There is a Bloomberg News story today that take a look at how john paulson over the years has been putting money into lobbying the government over a change in policy directly and indirectly so that the company and shareholders can benefit from the return and profitability to their bottom line. Joe during this limbo state where they are still public retreated but they get paid back. The courts ruled that the shareholders could get the money, the shares can be worth a lot more. Scarlet right now it is a paper game. Metals, mining, emerging markets usually move together. But there is a day virgins. Jpmorgan flag there is a divergence. The white line is the emerging market. Metals and mining has held up well the emerging markets have gotten clobbered afterdivergenc. Yields of these lines going together. Potentially that will need a lot of metals and raw material but they are not liking the emerging markets because of worries about high rates. It is creating an interesting divergence. The radically an opportunity for traders to bet on those lines. Scarlet i wonder how many have u. S. Debt. We should figure that out. Scarlet take a look at the major indexes. Four minutes ago before the close. We should figure that out. And highs for the dow jones, s p 500, alltime high for nasdaq. This is bloomberg. Scarlet we are moments away from the closing bell. Everything planning towards record highs. Day becausestraight of the demo trump election victory. Im scarlet fu. And i am joe weisenthal. Welcome to our viewers tuning in live on twitter. On twitterch everyday from 4 00 to 5 00 p. M. Eastern. Scarlet the thing you need to mention when we begin our market minutes is record highs for all major indexes. Joe green everywhere. You go inside in taking look at a look at the different sectors, what is interesting is it is only 10 out of 11 that is higher. Real estate has now turned negative. But the big winners were certainly the ones that got pounded over the last couple days. And is he shares up by more than 2 . Utilities higher. Technology, both of which has been punished in the days after the election. Utilities along with Real Estate Companies not doing well. Echnology seen as suffering joe interesting to see the tech stocks do well after underperforming. Scarlet shares falling as much as 16 . Shares falling as much as 16 . There was a change in leadership. Joe lets take a look at the bond market. First a look at the two and ten year yields. Not a ton of activity. Really looks like the december rate hike is a more a lot if markets are to be believed. 10 year yields down a little. I want to take a quick look at the french 10 year yield. Little lower on the day. They were lower earlier in the day. They had the first round of the republican primary. They have a next round weekend and but he is expected to win. Very conservative politician who would probably cut the government sector a lot. Bond markets lagging a little bit throughout the day. Scarlet it is a reminder that Political Risk is out there. The dollar takes a breather. The euro ending a 10 day losing streak in which it lost 5 of its volume. Value. The pound today saw a sudden spike in its movement. In am inute4 to 125 a minute. People wanted to credit that to theresa may but it came hours after she spoke. It seems implausible. It is a reminder that we going to see more of this. A quick ment