i am oliver renick. carol: and i am carol massar. the destruction of reefs in the south china sea. oliver: how did you come across what was happening here? >> i used to be based in china, so i tend to follow developments and asia, but the south china sea is one of those conflicts i had not been following. i thought, what are they fighting over? in july, they had a tribunal ruling, the philippines had made a complaint under international all, very unusual, gone on for years, so i read the tribunal ruling about who had what rights in the south china sea and what was going on. there was so much about the environment, and i had not focused on that element. this man's name kept coming up, john mcmanus. unusual to bet this scientist thrown into the midst of geopolitics. to quantifythe one all this environmental damage that had happened to these reefs and the south china sea. i thought, ok, i want to talk to the sky and see how he ended up in the middle of this geopolitical debate. ofol: he is a professor marine biology and ecology at the u

i am oliver renick. carol: and i am carol massar. ntist is trying to stop the destruction of reefs in the south china sea. oliver: we spoke with one reporter. how did you come across what was happening here? >> i used to be based in china, so i tend to follow developments in asia but the south china sea , is one of those conflicts i had not been following. i thought, what are they fighting over? and then in they had a tribunal july, ruling, which is very unusual. the philippines had made a complaint under international unusual, it went on for years. and then i read the tribunal ruling about who had what rights in the south china sea and what was going on. what struck me is there was so much about the environment and i , had not focused on that element. this man's name kept coming up, john mcmanus. i thought how unusual to be this scientist thrown into the midst of geopolitics. here is your name type thing. and his name came up because he had been the one to go and quantify all this environmental damage that had happened to these reefs

oliver: i am oliver renick. carol: the long shadow that may follow president-elect trump for treasury sector. oliver: all that ahead on "bloomberg businessweek." ♪ carol: we are with megan murphy. editor-in-chief, you guys take a look at energy, looking at the social cost of carbon, something the obama administration had come up with. megan: this story is pegged off of looking at donald trump's. he has put a lot of climate skeptics into the. we looked at how they pegged the social cost of carbon, originally set at 24,000 per metric ton and has increased over time. we are tracing the development of that. what they wanted was an economic estimate of the cost of climate change to society. and whatould peg that people are questioning now is what can donald trump's administration do if they are going to advance policies that would roll back this clean power. what could they actually do? this number is one that many economists on both sides see as arbitrary, difficult to pay, and something he would not be able to undo,

i'm oliver renick. carol: and i'm carol massar. if you ever bought our work on a cruise ship, prepare to get sees it -- prepare to get seasick. carol: and tainted seafood. what's behind it and what is being done about it? ♪ oliver: another must-read. the cover story titled "bad scrap." -- bad shrimp. it caught me by surprise. what was the first thing that pops out at you? >> the first thing that pop down is the context we are talking about is china and where we are going in the global economy. just the chain it goes through and the problems and what is getting into the food supply. it tells a tale of the regulatory environment that leaves a lot to be desired. carol: here we have the u.s. regulators putting sanctions on chinese shrimp and they found ways to get around it. >> i don't know if you would call them loopholes, but the way they have evaded scrutiny. the very fact of wanting to get stuff done and having a robust environment. the contrary effect is that it seeks in and you don't know what is happening of where these things ar

i'm oliver renick. carol: and i'm carol massar. so listen to us on the radio. am 113.0 in new york. 960 in the bay area. oliver: volkswagen's emissions scandal leads to a reboot of the corporate culture. you chose to start your story with an anecdote that took place several years ago in 2014 in a gaudy setting, paints a picture of what volkswagen used to be like. tell us why you chose to start with that kind of imagery. christoph: yes, the new management that has been put in charge to steer the company through what is effectively the deepest crisis and the company's history is trying to more than just resolve the scandal or fix the cars, pay compensation to car buyers in the u.s. they are also trying to turn the company at the moment, rein in what is pretty much unrivaled and excessive spending compared to pretty much all other automakers, and they are trying to turn and make the company leaner and more flexible, because as you know, the entire auto industry is facing age or dramatic shift towards electric vehicles with features lik

i'm oliver renick. carol massar. erik: and icarol massar. ead, the men behind am gucci doubling down on being environmentally friendly. oliver: investors are lining up to get behind green infrastructure products. we will tell you about the man behind the trend. carol: also, the company making robot babies. oliver: all of that ahead on "bloomberg businessweek." we are here with the businessweek editor in chief, megan murphy to talk about some must reads in the magazine. let's start with the markets and finance section which is about litigating in germany. carol: not so easy, is it? >> this is quite common across western europe and the difficulty of pushing forward with what we have as class-action lawsuits. and it goes into the impediment that you face and run that kind of litigation in germany. it's talking about volkswagen, in terms of getting consumers and people who bought these cheat systems built in on the emissions. this guy who is running this case and trying to form a huge class action to get more money. one of the biggest impediments

i'm oliver renick.the "industry" section, make box retailers are finding a new way to lower corporate taxes. but it does come at a cost -- just not to them. >> you write about something called the "dark story theory." what is that? >> a new way that retailers are trying to argue their property taxes it should be appraised. the traditional method that cities and towns have used to figure out how much the big-box retailer is worth, you look at how much the land is worth and how much it cost to build it and then they mark off a little bit for depreciation over time. that is the way they've done it over time. so lowes would build a store for $10 million. for tax purposes, it is worth about $10 million. but with the retailers arguing, it is that the store should be valued at what it would be worth if it were sold. so if lowes closed that store and it sat they can, how much would that sell for? and with the comparable sales data, they say no, that store sell for $3on would million or $2 million. there are com

i'm oliver renick. carol: and i'm carol massar. ead, the men behind gucci doubling down on being environmentally friendly. oliver: investors are lining up to get behind green infrastructure products. we will tell you about the man behind the trend. carol also, the company making robot babies. oliver: all of that is ahead on "bloomberg businessweek." oliver: we are with businessweek editor-in-chief megan murphy to talk about some more important issues in the magazine. let's talk about the markets and the finance section, which is about litigating in germany. caroline: not so easy, is it? megan: not so easy. this is quite common across western europe and the difficulty of pushing forward class action lawsuits as a litigant. it goes into the impediment that you face and run that kind of litigation in germany. it is getting consumers and emissions. this guy running this case and trying to generate and form a huge class action to get more , one of the biggest impediments in germany. it is that the lawyers do not get a cut. so there is no

i'm oliver renick. elcome to "bloomberg markets." scarlet: we are live at bloomberg world headquarters in new york. here is what we are watching. withank of mexico governor an exclusive interview. why he's leaving the central bank to take a new position at the bank for international settlements trade he tells us how mr. partridge will impact mexico's economy. with an exclusive interview. opec delivered an early present. whether oil can build on its huge rally this week. hasident-elect donald trump named steve schwarzman s chairman of the advisory panel on jobs. joining it is jamie dimon and bob iger. how is business changed influence from his policy. u.s. markets close in two hour'' time. let's look at where equities are trading. i was surprised when i realized the s&p is holding up a two-week low. know that.ly don't the s&p 500 is on pace for a weekly decline to first and i've. that would probably make sense. offor the markets, a lot action. really flipping between small gains and losses. the dow down t

oliver: i'm oliver renick.s actually abigail doolittle. we are looking at the bloomberg. , in is a long-term chart orange, the s&p 500, in white, the conference board of whether or not stocks will rise. right now for the month we are looking at the biggest pop in the aspect tatian that stocks will continue to rise since all the way back to 1998. it's worth noting we had stocks climb into the peaks in 2000, and then that was preceded by a fall down. so this chart may address the question of whether stocks have gone too far too fast. the trump trade continue? it is worth noting that these gains you to be backed up by some of the fundamentals. we look at the consumer confidence. it is at the highest level since 2001. down a little bit from the peak but this is a massive climb off the bottom from 2009, up more than 300%. consumer confidence has really rebounded. not surprisingly, this has been great for the stock market. since the election of donald 1.6 trillion dollars has been added to the value of u.s. stocks. i

i am scarlet fu, along with oliver renick. e than 10% this year. .ike has fallen more than 18% analysts and investors worry about market share losses to adidas and under armour in the u.s., nike's largest region. let's take a look at the numbers in today's "numbers don't lie." nike has been rolling since the election even in the face of all of that competition. as you can see, 2016 has been an entirely different story. it has only gotten worse for the world's largest sports friend. the analysts average on the target price has fallen since the beginning of the year. bank of america downgraded the stock since halloween and it lost in a critical area, innovation. you can see this key indicator of demand just rose 1% in the fiscal first quarter. nike says orders aren't a proxy for revenue, and it remains confident that north america will continue to be a strong region. when you look at futures globally, you can see where north america stands compared to other regions for nike. china can which generates a quarter of the company's of

i am oliver renick.is time for the bloomberg business flash, a look at some of the biggest business stories. readrand has plans to franchise -- three friday -- read franchise. the company which also owns pizza hut and taco bell, has 98% of its restaurants around the world will be franchises by 2018. biogen says it will charge $375,000 a year for its rear muscle drug. the recently approved treatment most importants drug as they face slowing growth and greater competition. parkingying canadian payer pay by phone. of more thanfits $250 million in transactions this year. vonnie: oil is trading near a 17 month high. we will take a look at where prices are headed. ♪ ♪ >> live from bloomberg world headquarters, i am oliver renick. vonnie: and i am vonnie quinn. erik johnson has more from our london newsroom. erik: dylan ruth told the judge -- dylan ruth told a judge he will present no evidence to convince a jury to spare his life. roof told a judge at the hearing that he still plans to act as his own lawyer dur

i'm oliver renick. oliver: i'm scarlet fu. --scarlet: i'm scarlet fu.ning me today is jim stricker of mk m holdings. things were joining us. with you a terrific chart of implied correlations. talk us through the chart. >> lots of talk about a paradigm shift postelection. dispersion. the question is out there, what does that mean? this is a graph of s&p 500 implied correlation. it has moved to cycle load. this measures the forward-looking expectation of correlation among the top 50 components of the s&p 500 by market cap. historically, if correlation is low, the inverse of that is dispersion. individual stocks, sectors are flying all over the place, moving on their own idiosyncratic facts. that, over the course of time, has been a very healthy environment, particularly for active managers. that is one way to put context to put context around what's been happening after the election. thatd that is an indicator stocks are overbought right now, the data with an rsi above 25. but this suggest that they could go higher? have beenly we talking for the last sev

i am oliver renick. julie: and i am julie hyman. we are live from bloomberg world headquarters in new york for the next hour, plus, we're covering stories from los angeles, washington, and is simple. -- istanbul. ian bremmer joins us later in the hour. we will get his reaction to the shooting of the russian investor in turkey. stocks advance today. fed chair janet yellen says the job market is the strongest in nearly a decade. disney's world one dominates -- "rope one" dominates -- "rogue one" dominates the box office here we are one hour away from the close of trading. let's get to the markets with abigail doolittle. abigail: we're looking at gains. allmajor averages are higher. the dow and the nasdaq earlier at various points had been on pace for record closures. both of these have come off of those highs, though. is modestlyle it higher, it is not really robustly higher. investors are a little bit on pause, taking a breather. major averages, we are looking at microsoft and disney. microsoft is one of the top major averages, hittin

i am oliver renick. carol: you can also look for us on radio. oliver: in london, and in asia.in the special new money section, how former inmates are getting a fresh start in the workforce. you set out how to discover how former inmates are finding ways to become entrepreneurs and prevent going back to prison. one creative solution to finding employment with a criminal record, which is a huge challenge because of stigma and formal barriers to employment that people get when they have a criminal record, so some people were choosing to become their own boss and start their own businesses. and i went to hartford, where youngwas an interesting incubator training former drug dealers to transfer those skills to the formal market. carol: tell us about this individual, background, and how he came to this idea that drug dealers could make good entrepreneurs? . >> shawn brown is interesting because he has always lived in multiple worlds. he has done some time in university before becoming a drug dealer, and clearly he is very intelligent. , andd a knack for business while he was incarce

oliver: and i am oliver renick.loomberg markets." ♪ we are at bloomberg world headquarters in new york. we will cover stories from illinois to france. u.s. stocks are on track for the best year since 2013 and the russian ruble on track for the strongest year ever against the u.s. dollar. we will take a look at the biggest stock and currency movers. donald trump has a tough choice after president obama imposed sanctions on russia for hacking emails related to the u.s. election. will he rivers course or jeopardize his -- will he reversed course or jeopardize his relationship with vladimir putin? we are halfway into the trading day. us.ail doolittle joins do not be too distracted by the wine. abigail: we have the dow, s&p 500an

oliver: and i am oliver renick.fund, which allocated money on among 11 portfolio managers. andier today, jason kelly our hedge fund reporter kathy burton spoke about what this means for the broader hedge fund industry. jason: blackstone has been fund ofuccessful in the hedge funds. finding managers and giving them money. they were going to start investing directly and there were high hopes and just didn't go that way. it is a pretty rare misstep to a degree in this market, especially because they had built this business essentially from nothing in 2004 so into by far the largest hedge fund. why did they get into it in the first place? kathy: they have $70 billion now to put to work and a lot of hedge funds, as we know them haven't been doing so well. they thought, well, this is a way we can get traders and house and give them $30 billion, maybe , and it would take a lot of capacity they needed to fill. jeffrey: and what it -- not jason: -- jason: and what is interesting, they weren't alone in doing this . carlisle,

oliver renick, thank you so much.talk about volatility, you really find it in europe and politics. the new year will dawn with a fair amount of uncertainty on the other side of the atlantic with major elections in france, germany and a netherlands. -- and the netherlands. what are the political forces at play? with us from denmark is jacob kirkegaard. thank you very much for taking time to join us. let's start with brexit because it does overhang so much of what is going on in europe. what are you anticipating? the first thing i expect is the british government to lose at the supreme court, probably a unanimous vote against it by the 11 judges. i would expect theresa may to push a short bill through the parliament that enables her to begin the negotiations at the end of march. in that sense, it is fairly smooth sailing for theresa may. from then onwards, i expect things to be difficult for her. it is clear that the european union negotiation tactic is to play hardball, basically saying we will not negotiate anything o

oliver: i am oliver renick.erg world headquarters in new york we will be covering stories from cleveland to london, jerusalem and the arctic circle. u.s. stocks retreat from record highs as the dollar trades at its highest level in decades. at itsr confidence is highest level since 2001. what does that mean for the retail sector and the u.s. economy as a whole? we ask that question to jack kleiman. the world's most famous pop up .otel, a behind-the-scenes look halfway into the trading day, avalanche -- abigail doolittle joins us. abigail: yesterday's rally has evaporated. stocks opened slightlhi

i am oliver renick. vonnie: and i am vonnie quinn.trump's energy advisors has an idea, combining the department of energy -- e and thepa. rebecca kern,n is she covers nuclear energy. she is with us from washington. what exactly is the proposal here? you just stick one energy agency, the epa and they will be synergies? rebecca: i spoke with representative kramer and he pitched this proposal to donald trump when they met earlier this month and he thinks there is synergy between the energy department and the epa by combining them into one agency. there are some critics of that who say that the missions of the two agencies do not really matchup. the energy department has a large responsibility with our nuclear arsenal and waste cleanup and that is not something the epa has a lot of expertise on. there is a bit of pushback from legal scholars and question as to whether there will be support for this on capitol hill. where with the overlap be with the epa? i was under the impression that it was the goto for the nuclear energy and policy. do

oliver: i am oliver renick. welcome to bloomberg markets.ive from bloomberg world headquarters in new york over the next hour, and ofre covering stories out washington abe -- and beijing. financial markets jolted as geopolitical tensions reared their heads following reports china's navy has seized the u.s. drone. of washingtonrisk assets are headir while havens like gold and yen catching a bit. president obama to host a news conference this hour. we will bring you that life and in full. against this backdrop, we will jed toith j.p. morgan -- get his outlook. let's check on where stocks are headed with abigail doolittle. it is a bit of a decline from what we saw earlier on. abigail: it certainly is. we are looking at a bearish trade for the major averages. this is after the major averages had all opened higher. the dow and the nasdaq had flirted with all-time record highs. now we do have stocks trading lower. in fact, the s&p 500 and the nasdaq are now flirting with weekly declines. a bit of a reversal there out of the big rally. one source o

am oliver renick. another disappointing sign in a disputed south china sea. "bloomberg businessweek". ♪ carol: we are with the editor in chief macon murphy of business week. china,

oliver: i am oliver renick. ong shadow that may follow president-elect trump for treasury sector. oliver: all that ahead on "bloomberg businessweek." ♪ carol: we are with megan murphy.

oliver: i'm oliver renick. are fallingstocks the most in two weeks.nergy, materials, weighing on the is hundred -- the s&p 500. joe: the question is what did you miss? >> the big moves are in currency and crude. dropping the highest level in more than a decade. bill films -- the phones may push the studio for 2017. yet another stumble in the rebirth of the nuclear power industry. >> we are looking at the clients for the u.s. major averages heading to the close. ,he nasdaq all trading lower trading more than 100 points at this point, putting down 20000 and record highs out of mind. this is the second worse selloff in u.s. stocks since the elections. on the intraday basis, looking at an intraday chart of the s&p 500, we see the end -- the index opened higher and steadily lower as the day has in progressing. 96% of members of the s&p 500 are trading lower in late 20 he higher here it is a broad-based selloff. all of 11 sectors as well. the s&p 500 is that it slows is 2008, a round-trip from the rally we have seen this month. on the day, we're looking at

i am oliver renick. scarlet: and i am scarlet fu. oliver: time for the bloomberg business flash.und $50 million for releasing pollution into the river. the company used mercury to manufacture rayon from 1920 92 1950. some of the toxic chemicals seeped out and spread downstream. scarlet: j.p. morgan chase is looking to sell structured notes online ad is looking at a website that will help brokers offer the securities according to people with knowledge of the matter. the bank will launch the site at the middle of next year and has hired ibm to help build it. facebook is changing its news feed in an effort to stamp out fake stories. the new feature has rolled out today and has options for readers with third-party fact checkers and tweak algorithms to provide more restrictions on advertising. a month ago, ceo mark zuckerberg said these changes were coming responding to extensive could assist in the wake of the u.s. presidential election. and that is your business flash update. oliver: now that we have a trump presidency and the fed did raise rates as was expected yesterday, many are

oliver: i am oliver renick. the question is, what did you miss? scarlet: risk assets -- julie: risk assets appear to be taking a breather. oil retreating from its highest close in 17 months. treasury is extending gains after a strong auction. sears ceo eddie lampert is opening his wallet yet again to help keep the struggle retailer in business. he is offering a $200 million lifeline, but that amount could grow to as much as half $1 billion. the u.s. retaliates against russian interference with the 2016 election. the obama administration announcing changes against russian officials and expelling 35 operatives from the u.s.. we will have the latest developments from washington, as well as from moscow. we're now getting some headlines from a russian conference call saying the russian reaction will create discomfort for the u.s., and that russia regrets over obama's decision on the sanctions. he also says -- the spokesperson there -- the kremlin spokesperson, the u.s. sanctions are an attempt to undermine the trust administration. looking at the marke

oliver: time oliver renick. welcome to "bloomberg markets."y in bloomberg world headquarters for the next hour and covering stories in brazil and frankfurt. will 2017 be the year we see fundamental shift in the market? the next big challenge for investors. oil is on the rebound once again, snapping a losing streak, while natural gas is building on gains. why this month could prove critical for natural gas prices going forward. and president-elect donald trump is heading to ohio and iowa today. he may be close to nominating andy puzder as the next head of labor. two hours andin extending this record highs. julie: it has gotten stronger and stronger as the day has gone on. interestingly, even though the main catalyst was in the morning, the ecb decision and commentary coming from mario draghi, it was that commentary that clarified the dovish stance on the part of the ecb, and that send stocks significantly higher. all three major averages are hired. we have been watching outperformance. one of the ways to measure that is a ratio of the russell 2

oliver renick says maybe a small hands guy is a small cap guy and that is what he is referring to.ike that because as we look into 2017 and the fact that article 50 is expected to be triggered, that would affect negotiations between the u.k. and the u.s. you havel cap -- difficult negotiations with the e.u. let me bring you to my bloomberg terminal. this is the baker hughes united states account and white. this is the price of crude and the price of blend. you can see the range. this is a trick. we have talked about opec and the fact that they will start cutting production come january. for the moment they have not, which is why you see oil rigs actually going up in terms of numbers. i wonder whether that reverses the trend. michael: let's go to michael holland of michael holland and company, the chairman and founder. dutta also toyed by neil -- we are also joined by neil dutta. we begin the hour talking about markets around the world. you are on record as noting that the handoff from barack obama to donald trump is one of the strongest economies we have seen in presidential transi

for more, we are joined by oliver renick. good for stocks, not so good for bonds.t is causing this? it's tending say it's all about donald trump. but the started before donald trump was elected. taken: the election has the spotlight in terms of the lens through which we view the bond rout. this started happening around the midpoint of the year. if you look back to around july or so, that is when you can see the bond replacement trade in the stock market turning over. trump, we have to think about what is going on than. me and staples to dividends getting to very high valuations, in the 20's in some cases. no, they are in the bottom tier of the stock market. valuations were a big part of it. a lot of people put in money and then trump was the icing on the cake where you are talking inflationary policy. david: at what point do you talk about the reverse here? at some point, if yields go up, s back around. when you have the s&p earnings yields now yielding less, it causes a shift. all of her: that big chunk of green is what we've been used to for the last six months o

oliver renick, our colleague, getting the biggest rush of cash.position. how do you communicate when the stock market keeps ripping higher? >> we have not had another -- what we want to take account is areas where there are undiscounted risks, including currency, and a good deal is outside of the united states. the eurozone, you can see some gains. what you get that in u.s. dollars? parts of asia? parts of the emerging market for we are seeing depreciation? by and large, stay invested and mitigate risks with a bit of cash when we see the opportunity and do it in a variety of other ways. this is very much the opposite of last year's market where investors wanted to sell everything at the turn of the year and not invest. look at the goodyear who have had. year we havee good had. david: where are the opportunities. to global fixed income, u.s. equities are a great value. , ifink credit investments you count the lower volatility in some of the potential returns, like loans and high-yield bonds, you get a good deal on that. you have to keep in mind tha

i'm oliver renick. scarlet: i'm scarlet fu.loomberg business flash. liberty mutual is lying iron chair. the move will allow the insurance company to expand in the specialty commercial market in bermuda. liberty mutual will pay $3 billion. ford plans to issue $2 billion in debt as the carmaker boosts spending on self driving cars and electric vehicles. according to a regulatory filing, they are taking on an unspecified amount of debt in 10 and 30 year notes. in a bid to fight fraud, 70's is buying an art forensics firm after a number of art forgeries, including a painting that sold for $10 million in 2011. in march, the auction house declared the painting was a fake and issued a refund. that is your business flash update. oliver: president-elect donald trump met in new york today with al gore to discuss an issue he has long scoffed at, global warming. here's how gore categorized the meeting. of the time was with president-elect donald trump. i found it an extremely interesting conversation. and to be continued. i'm just going to

. : and i am oliver renick. markets." ♪ we are live at bloomberg world headquarters in new york over the next hour, plus, where covering stories out of denver, indianapolis, london, and vienna. president-elect donald trump said to give his first major speech since being elected. he is in indiana along with his vice president-elect mike pence to ensure that terrier is keeping jobs in the state. we will look at trump and health care. companies are saying that trump will be more vicious on drug pricing than hillary clinton. we are tracking a major trend in the market, oil extending, opec rallies to bonds, one of the worse months on record. wherecheck a look at stocks are trading. abigail: we're looking at mixed trading. the dow is trading higher, on par for a record closing high. s&p and nasdaq are both trading lower. the clear laggard is the nasdaq. right now, the nasdaq is on pace for its worst two-day's license september 9. one thing that -- two-day slide since september 9. one thing is that the tech utilities s

. ♪ oliver: i oliver renick. i am scarlet fu.bloomberg world headquarters in new york for the next hour. here's what we're watching. u.s. stocks are edging toward of the session. tell comment financial stocks are leaving the game. after that we will get more market perspective. globalization could eat into profits for years. we are trading apple. our shares ready to go higher? tim cook says the apple -- apple watches set for its highest sale in a quarter. we're just a half hour away from global trading. julie: stocks continue to move to the highs of the session. we are near record low are getting closer. potential m&a news has been moving things up into today'session. deregulation under the trump administration. at&t is more likely to get his approval to buy time warner. centers for data $3.6 billion. at clinics is higher. off by 1/10 of 1%. we have been following a developing story about softbank saying he will be investing $60 billion in the -- in the it i've trump tower. majority it will get approved -- buying virgin america c

. -- i'm oliver renick. welcome to bloomberg markets. bloomberg world headquarters in new york. we're covering striatum -- stories and iowa, washington and shanghai. president-elect donald trump plus latest target is drug companies. if has nominated the governor of iowa to be ambassador to china. as the fed gets ready to raise rates, will that hurt momentum in the housing market? truly a has news on housing market in the year ahead. and how iron ore defied expectations. the iron -- the or sword despite overwhelmingly bearish protections. the u.s. markets close in two hours time. let's check on how stocks are trading with julie hyman. julie: all of the son, today became a big rallying day. bed nasdaq, not quite a record level, but the russell 2000 is. rally that has resumed today and even taken legs higher. climb been a slow, steady all day and there was a germanic leg higher that sent the s&p 500 up toward its highs of the day. we are again in record territory for most of these major averages that we track. a lot of that having to do wit

. ♪ ♪ >> i'm oliver renick. scarlet: i'm scarlet fu. welcome to "bloomberg markets."monte dei paschi says it is built to raise sufficient funds from its anchor investors opening the door to nationalization. writerring in a senior for bloomberg news who has been following the story is the bank has been struggling. coming?something we saw >> this was expected. we weren't sure if the bank was going to throw in the towel first or the government was going to come out and say we are nationalizing the bank. it looks like the bank made the announcement first. it's any moment we would probably hear from the government of italy, the new government saying we are buying x percentage of steak. in the bank,e because they cannot get the money from the market. they need the support, they need to clear up these fed loans. the government is coming in. scarlet: the government has been preparing for this in many ways because it has proposed raising about 20 billion euros. end, what does that mean in terms of the italian taxpayer? how much are they going to be kicking in here? >> the prob