Julie hyman is here. More records. We have had many of them this year. Pretty remarkable. The down the s p close to records yesterday. Any gains today would represent more records on a closing basis here. Terms of gains, we have telecoms, financials, and health care leading the pack. Wavering between gains and losses. A pairing of out of the gate it appearsmorning, to be energy. Vonnie mentioned the surge of energy and now prices are going down. Nowave got a big leg lower and we saw so Similar Movement off one third of 1 . We have been looking around for what is going on exactly and we have the latest data on stockpiles in the u. S. Not the latest but rather reserves that showed a little balance from a 13 year low. It is not clear exactly what but we are seeing oil may be a little more delicate. Were taking a look at what is going on with media as we continue to get reports disney is getting ever closer to a deal with 21st century fox. Yesterday, it was no longer interested in those assets here generally green although disney and fox are really little changed. Also looking at boeing today, that stock is rising its in raising its buyback to 8 billion. That is more than the authorization it made last year. It made up a lot of the dallas gains in terms of the gains we have seen. Finally taking a look at the u. S. Dollar, we have seen quite the rally. It is up for seven straight winning, the longest streak since january of 2016. Quite a turn for the dollar though if you look at a longerterm chart, it does not look quite as impressive but still quite a rebound for the dollar. Mark we are up for a third day, oil and gas today, the explosion , and thetural gas pipeline rattling Energy Markets and boosting oil and gas companies. We will get to kevin in just a few moments. About k kevin has disappeared. Lets get on from our favorite function. A big day today. 3. 1 . It means the governor has to send a letter to philip, the chancellor, and that is what happens when information goes 1 , above the 2 limit. That is the level the bank of england is trying to keep inflation at. That will happen in february. 3. 1 driven by the cost of highest since march of 2012. Core inflation strips out food and energy, unchanged, 2. 7 . Later toorward speaking to andrew, the former bank of england policy maker, to hear what he has to say about inflation. Lets talk about europes biggest commercial landlord, for about 21 alien australian to 15. 8 which equates billion u. S. Dollars, an 18 premium to mondays close. Biggest Property Acquisition since 2013. Mounting the biggest takeover of a company in the asiapacific region this year. Seeking to contend with the relentless pressure and finally, shares jumping a record 35 today. ,ffering to acquire the company 4. 3 billion euros in cash seeking to create a european leader in cybersecurity, Digital Technology and payment, 4. 3 billion euros in cash seeking to create a european services, posing to pay 46 euros per share, a 36 percent premium to mondays close. The deal would be the biggest of the year between two europe in technology companies. Shares up by 35 . Where are you, kevin . Shares up by will go straight to him now lets hope because today in alabama, voters are going to the polls to elect a senator in the special election. Mooreican candidate roy will gt campaigned yesterday with steve bannon, seeking to overcome scandals that have dogged his campaign. Democrat doug jones facing. Leppo batter battle democrat has not been elected to the senate since 1992. Moorekevin is there now. Polls have roy moore a couple of points ahead but it is all about turnout here the weather looks good. Turnout. Is all about roy mooress campaign has been adamant that they are not trusting polls. Somewhat argue doug jones does have some momentum yesterday can campaigning with nba legend turnoutmarkley, urging from democrats in the africanamerican community, they hope it would feel an upsetting victory in a state that has not voted for a democratic governor or senator in decades. On the flipside, the judge Roy Moore Campaign going all in among ultraconservatives yesterday. Last night, he campaigned with steve bannon, President Trumps former chief campaign strategist. Both are trying to highlight this has become less about the two candidates and more about a cultural moment in american history. An american moment of reckoning from democrats perspective on allegations of Sexual Misconduct that have dogged roy moore, that he denies. Conservatives are pushing back meanwhile, saying these are outside forces outside of alabama trying to influence their special election. Alabamaare all lifelong republicans voting for roy moore or is this more complicated . Is there a malefemale split . It is so complicated and we have talked to voters for the past day and a lot of conservative conservative folks who have never vote for democrats in their lives are having to take a new look at what exactly this election will mean. Senator richard shelby, the warmer chairman of the Senate Ranking committee, a longstanding senator and votelican, says he did not vote for judge roy moore because of these allegations. Everyone from mitt romney, and a host of folks saying they could not do that. Ground, struggling to get a yes to roy moore, they are looking at President Trump has his endorsement of him as perhaps a sort of political cover. On the flipside, some other even i talked with think if roy moore is elected, he would ultimately be expelled by the senate once he gets to congress. Differenta lot of reasons for why folks are ultimately deciding to stay home today which would help the or ultimately may be on the fence. It is still undecided about this election. Kevin cirilli will be checking in all day in alabama. Lets check in on the first word news. Thank you. 2. 5the first time, in years, crude up 65 per barrel. Futures rose to a benchmark after a crack was discovered in one of the pipelines. The pipeline will be closed for two weeks for repairs. The Trump Administration is preparing to open the door to more oil drilling. President trump has ordered the interior department to develop the blueprint for oil and gas rights off the east coast. President obama had ruled that out in the past. Futures rose to a benchmarkcs after a crack was discovered host south host south korea may try to reduce tensions with north korea during the games. They may delay the annual drill until after the olympic spirit north korea regularly to. Nnounces the game in the u. K. , inflation has unexpectedly risen. 3. 1 from aces rose year ago and inflation has been driven higher following the brexit vote. Global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Up, we will get back after one of the most important pipelines in the world was shot because of a crack. Brent crude now down. Futures in focus is next. This is bloomberg. Mark i am mark barton. Im vonnie quinn in this is bloomberg markets. Lower for the First Time Since 2016 on the pipe closure. Futures extending their losses dollar is gaining. Lets start with brent crude. Is it having any impact on wti . We saw that it was up about . 60. Right on the open around 8 00, it backs off sharply. I was disappointed. I think the longterm to breakions would be through 59 and then shoot up from there. Trend traders are all looking for that is the way forward. The impact of this is 4006000 Barrels Per Day and you have caught their who output over to asia by 100,000 barrels as well. The reality is u. S. Production should continue to build upward and that should weigh in on prices. I like tactical shorts on that market, selling call options up in the 60s and using that money to finance on the downside. And really with the news coming out, if bullish news does not make the market rally significantly, it tells you there is a problem with the fundamental story there. Vonnie are you switching your calls substantially . It sounds like you had been bullish at a certain point but you are now giving up on that . Yes, we had been range bound, just a strong resistance than i do not see the crude oil justifying the move upward. I thought today would be more of an emotional play. It is still a little early. And the department of energy tomorrow. Some of that data could be quite supportive, and really get it going. Vonnie gold, although it down to 1240. Is this a bitcoin effect . How disappointing is that . They have switched out their money. They want to play a new safe haven asset. Bitcoin is the new party and it got a lot of hype. We started trading it sunday night. There is a lot of interest in the product that we can help you get involved but i think gold test theill probably july low and i think it could be a new spot to reassess on alongside. Vonnie he is open for business on the coin contract. Who todays futures in focus. Mark time for a look at some of the biggest business stories in the news right now. In one ofirline crack the worlds most important pipelines is having an impact on oil markets around the world. The Pipeline System is being shut off. It handles oil for more than 80 steals. It is too early to know what the closure will cost. We do not have a feel for the actual number because it depends on the alternative arrangements being made. What they are will depend on those arrangements and it will vary from one to the next in terms of what they do and how much that will cost. Mark unforeseeable circumstances that prevent a contract from being fulfilled. And bits it rose to fame after making the grief that to sub rise housing before the financial crisis. Burbank says it will focus on special opportunities in the share classed class. Europes largest commercial agreed to buy westfield for 15. 8 billion. Westfield owns and operates 35 miles in the u. S. And the u. K. Been trying to repurpose Shopping Centers struggling with the retail slump. That is your latest business flash. Still ahead, we will speak with the chief executive and how he keeps his business fresh amid competition from megaretailers like amazon and walmart. That is next. This is bloomberg. Mark this is bloomberg markets. I am mark barton here in the city of london. Vonnie i am vonnie quinn. Time now for a bloomberg exclusive as amazon moves into , cap a moreaisle traditional supermarkets maintain market share . Here to of the parent ceo company of stop and shop operating 6500 Supermarket Stores worldwide, including crozier peapod. Lets talk about amazon first because you guys were in front of everybody with peapod. Fallen behind had . No. We are ahead of the game. Enter very models delivery points, giant in food lion. We combine it into an easy Shopping Experience for customers. It makes it interesting for our shop as well in our stores as as online. Vonnie we have seen a massive amount of consolidation and mergers. How is that impacting plans to consolidate or do more business here . Our merger Just Announced last year 2016. To aombined the business business which is more than 2000 stores, morning more than 40 billionstores, morning more 0 billion u. S. Dollars. That makes us a strong competitor him on the east coast. It helps to get better deals and also for customers. Mark price competition has been a big team in the u. S. Is there no end in sight or can you tell me Something Different . Prices always a matter of growth in every market here you see it in the u. S. And europe. Because of our size and scale, we are able to make better deals but also from an efficiency point of view, the east coast divisions together, more than 40 billion as you just mentioned we can benefit in our own markets, that can fuel the investments we need to do. The merger gave us synergies. Deliver to 50 million synergies, and that is helping us to continue to be an attractive retailer for Investment Investors and also for ourselves to invest. Mark amazon has a presence everywhere, particularly in the netherlands. Are you worried if it steps up the general Merchandise Online retailer, are you concerned if it steps up operations in the netherlands and netherlands . It is a form formidable competitor in the world. Our stores and online proposition, which are far and away number one. We are a big player in the online field already. We certainly have a strong position from an online perspective. I believe the focus on stores together with Online Solutions for our customers, a great offer including Home Delivery is for the industry as we deliver for our business. Vonnie is it really that unique vonnie is it really that unique everyone is doing it. If you dont do it, you will lose customers. How do you continually approve it . Mprove upon i fully understand a lot of people are doing it . I fully understand a lot of people are doing it but Home Delivery is a different ball game. It is the number one Home Delivery online player. That is different. A lot of stores are offering pickup points. This is at your house and your home. We continue to see developments and the competition is there. Vonnie do you see more consolidations and mergers in the United States given how challenged retailers in general, do you expect to participate . We continue to try and strengthen our market share here. We still see opportunities to strengthen the position on the east coast. The u. S. Is such a big market. Vonnie can you be more detailed . Vonnie can you be more detailed . Do you have an eye on somebody . No. Just announced last week that we bring all of the brands together under one leadership in the United States. All of the supermarket brands and one leader where we focus on our proposition for the customer. That is most important thing we do today. Getting a merger done to sign a deal, to Just Announced last wet we bring all of integrate, we at more than halfway now. We are doing well and getting the savings out, which we need for being a better retailer. So we are doing the right things. Mark your Central European operation is growing strongly, is there anything you can do to make it a more meaningful part of your profit . The Central European business is doing very well p romania is growing fast. It is a developing market. Open hundreds of stores on a yearly basis. It makes us attractive there, the customerst in these markets, still very low. It gives us an opportunity. Vonnie still ahead, part of our exclusive interview today with the former president of france. What he sees following brexit. This is bloomberg. Cannot live without it. So if you cant live without it. Why arent you using this guy . It makes your wifi awesomely fast. No. Still nope. Now were talking it gets you wifi here, here, and here. It even lets you take a time out. No no yes yes, indeed. Amazing speed, coverage and control. All with an xfi gateway. Find your awesome, and change the way you wifi. Vonnie live from bloomberg World Headquarters in new york, im vonnie quinn. Mark mark barton, live from bloombergs new European Headquarters in the city of london. This is bloomberg markets. List check in with Evan Chandra Emma chandra. today, voters in alabama vote. Roy moore is accused of Sexual Misconduct with teenagers and is backed by President Trump. He is opposed by number of republicans, including alabamas a senior senator. In washington, conservative activists are demanding washington hold the line on Corporate Tax cut to 20 . Some lawmakers proposed cutting the rate from 35 to 22 . The difference would be used to offset other tax cuts. Antitax activist say that would violate the intent of the framework republicans agreed to. The u. K. Wants a postbrexit trade relationship with the eu is virtually identical to the one in place now. The u. K. International trade secretary says that would ensure a smooth transition pweriod. They are members of the eu currently. The mayor of San Francisco died overnight. Edwin lee was 65 years old. His office has not disclose the cause of death. He had been in Office Almost seven years. Global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. Im a much chandra. This is bloomberg im in the andra. A im emma ch final are ups of more than 50 , they dropped 86 next week off a potential coming scandal. Abigail doolittle, extraordinary moves once again. Abigail i love this story of steinhoff. I would definitely be digging into this. Relative to the drop in the accounting scandal, what happened was, initially the company said they were not going to be releasing audited results. Then they said they were going be releasing results at all, doing anwould be investigation and they said there were 6 million in nonrecoverable assets that they arent able to quite account for right now. The ceo resigned all of that and the stock absolutely plunged. We talked about this last week, there was the tension between the stock plunging and the fact that banks were willing to put off a meeting from this monday saying its not as bad as this stock plunge was suggesting. The news just came out about a week ago, within the last hour, that some banks are supporting credit extension. Its not quite as bad. Its clear theres a problem, but not as bad as initially thought . Its very clear that something is amiss. Flags, but Charles Allen and i spent a lot of time in london and he is saying when he goes through the financials, that theres no huge Warning Signals and a way that happened in 2000 and the same thing with tesco, whether was very clear trails in the Balance Sheets and as here, its not quite the case that there is those sorts of off sheet Balance Sheet liabilities but what does worry Charles Allen is the fact that those 6 coming is ablets get to 2 billion of that. The other 4 billion, not quite as clear. Plus, this is a highly inquisitive company. Where the opportunity may lie even more so, if we take a look company has23, this all sorts of acquisitions, but shares ofhas various stock or classes of stock and it blew we are looking at the stock now down 81 mainly from the it ipo back in september is based on south the thatsailing reason the shares are down less and perhaps for investors who are sophisticated personal investors without the ability to go to the financials, the south african shares may be the way to go with a potential opportunity isthe degree of speculation too high as the facts emerge in the community. Vonnie Abigail Doolittle with the stock of the hour. Thank you. We stay with credit markets, joined by ken monahan from the monday pioneer. I pioneer. Junk investors were very loyal to junk bonds and nearly 10 return on the triple c. Is there a big selloff coming . Mr. Monaghan we had a retracement in november, but we quickly erased that. We were down midmonth about 1. 5 of the time the month ended it was only down about 25 basis points. Highyielding general has been a good place to be. If we look at the Bloomberg Barclays u. S. Highyield index, its up about 7. 25 . Vonnie depending on where you were, have your thoughts changed about what might be coming under pressure, retail, energy, didnt exactly perform the way we might have been anticipating . Mr. Monaghan it wasnt a straight line. Andad a lot of headwinds energy has done fairly well. Metals and mining was beaten up several years ago, but it did very well. Retail is that its ups and downs and then telecom has been a big question, which is one of the largest sectors of the highyield market. Vonnie i do want to ask you about the implications of this tax bill, should it come out of committee in the next few days and get signed. Will there be implications on the corporate highyield markets , given that Corporation Tax might come down substantially . Mr. Monaghan i think the reduction in Corporate Taxes is more likely to benefit Larger Companies the most highyield companies. There will be some benefit. Interestingly, the deductibility of interest is going to be a bigger question. Thats not finalized yet. Theres a lot of work to be done. The last several years, the amount of leverage the highyield companies have been able to employ, particularly for , has been limited by the fed, they prevented banks from lending too much. Now they like deductibility or the potential reduced amount of deductibility for interest expense is likely to provide the same governor on the system, which will be the highyield companies will be able to deleverage the same degree they 2007, which, 2006, arguably helped lead to the recession. Mark i keep seeing the words credit armageddon. Is it coming . Mr. Monaghan not yet. I think we saw that question, in november. We didnt think it was happening at that time and we advocated that clients should increase exposure to the highyield market at that point. It did very well and rallied from the bottom of the market, around the middle of november. Mark if you are a highyield watcher, what are the signs of credit armageddon . Mr. Monaghan the things we look out for or are concerned about is when we see too much issuance of triples the debt. When we see too much leverage in the system from lbos. When we see a lot of bonds, zerocoupon bonds and kind bonds issued, which allow a company to defer interest on their debt. We havent seen much of that at all. From a fundamental perspective, we would say the market is in pretty good shape right now. We would expect the defaults would remain to present a little higher through 2018. Mark what about the european highyield market . Happens,demise, if it of the ecbs Corporate Bond buying program does not have a knock on effect to the highyield market next year . Mr. Monaghan you bring up a good point. Its one of the things we have been concerned about. You look at the fundamentals, the good news is, the ecb is continuing to provide stimulation to the economy. That should mean default should remain low. The thing we are concerned about is when the ecb stops that or reduces their Corporate BondPurchase Program and eventually starts to ease and go the other way. Who recently have been buying highyield debt in europe go back to buying investmentgrade bonds . . What does that mean for spreads and european highyield . Its an issue i cant tell about going forward. Our crystal ball is very cloudy and at the moment looks more like a snow globe. Its very difficult to discern whats going to happen in 2018, particularly once we get to the back half of the year. Vonnie does that mean you are keeping some powder dry to take advantage, or you are you placing a bet and not telling us . Were keeping some powder dry. We can be in europe where the emerging markets are in leveraged loans, in addition to u. S. Highyield. Being an active manager as well, rather than a passive one, toows us mark to a bloomberg exclusive, former french president franz lalonde Francois Hollande says the u. K. Cant accept this expect to keep the trade deal in the single market. [speaking in french] iso the United Kingdom would have to pay and that the deal has been found, we were incurred a what we referred to was general countries by the british and generally we were able to find an agreement on the question of european citizens. Be a second phase that will deal with the place of the United Kingdom in the internal market due to an internal market if the trade agreement was made. Europes attitude is one of respect, but also one of certain demands. We now have to connect to europe of 27. As it is a reversible and its aim is not to punish the british, its aim is to clarify as best as possible future relations between the European Union and the United Kingdom. And also, with france, i was keep a special relationship with the u. K. , especially on questions around defense, and this will be up cap. The International Trade secretary today said we hope for a virtually identical trade agreement with europe. Is this realistic . [speaking in french] agreement is always possible, but it has to be clear it cant happen at any cost. Theres been discussions held over the past years and they continued, and theres certain points of europe that remain extremely resolute, for example, agriculture and what would call cultural exception. Hes a very important issues. I think that all trumps position on trade agreements is not very encouraging going into discussions with europe. Services are incredibly important part of mr. Davis talks about a plus plus plus agreement. Services must be included. With france, do you think, tolerate a generous Financial Services components to postbrexit deals . French]king on the trade agreement, he will necessarily need to differ from the conditions of the internal market. In the internal market, there is Free Movement of trade and passporting, which also applies to the british activities today in the internal markets. Theres no way of accepting the movement of goods and movement of goods and services, there will be a trade agreement, and with that, britain will lose access to parliament. [no audio] even through brexit, france and the United Kingdom will always be together and we need to work towards that goal. Mark Francois Hollande, former resident of france speaking with us a little earlier and divide. Vonnie fascinating stuff. Of justead, the ceo capital. We discussed the most just of 2017. Companies you may be surprised to comes. Ut on top thats next. This is bloomberg. Mark live from bloombergs new European Headquarters in the city of london, im mark barton. Vonnie in new york city, im vonnie quinn. Bloomberg markets. This is bloomberg markets. The ranking of the russell 1000 companies according to their justness. , itsing to just capital not enough for companies to do well, it was also do good for their workers and their public. The list of the most Just Companies of 2017 out today. Eres the top five joining us with more, martin , andaker of just capital Impact Investing firm. The survey is fascinating. Its based on 10,000 american respondents in more than 72,000 over the past few years. We put together a polling and survey platform that goes straight to Mainstreet America and announced what their priorities are when it comes to corporate behavior. How do they define what just even means . That provides a framework for what we measure, and an analyst Team Announces the 1000 traded companies. Vonnie there is whispering on why should main street america get to say what is just are not under my leadership . Mr. Whittaker i cant think of anyone better to decide what just should mean. We need a more just marketplace if we are going to sell some of our major social, Environmental Health challenges today. We believe in capitalism, we think that businesses can and should be a force for good. We think it absolutely is aligned with being more successful as a business. And one of the things we try to do just be totally unbiased about how we are ranking companies. What are the questions you are asking a what are you prioritizing . Mr. Whittaker we start with focus groups in polling around the country to get a representative point of view. Several majors a drivers of just behavior. The most important being how a company treats its workforce, but also is how they treat customers, products, job creation, communities, the environment, and making money for shareholders. Vonnie is there evidence that these companies that are doing better on the just rankings serve shareholders better, or is it purely just being just for justness sake . Mr. Whittaker we watched a live index, north of the benchmark. Theelieve not in just portfolio level analysis, the case for just missed come were justness, but we talk to companies all the time and we see the connections between a company that treats its broadest stakeholders, not just shareholders, but including shareholders very well. They tend to do better over the long term. Loyalty asbrand well, enduring Customer Loyalty of a have a great reputation for being fair. Is there anything that is changing under the Trump Administration . This year is the first year of the 100 thats been going out with forbes. It you have been looking at this for three years. We whittaker one thing found consistent is the relationship between a company and its workforce is always been the most important. The fact that the cavity can pay a living wage is crucial. Jobs rise in the strength of communities in the u. S. I think that emphasis in our rankings has increased. Vonnie i want to read something you wrote recently, paying your fair share, in one sense, these are acts of moral responsibility. We should paysay higher taxes, the recognition that there is a line in the sand beyond which behavior is simply not, well, just. This presents another moral balancing act. Do we go backwards, like Robert Shiller suggests . Do we said do we decide what level of taxation we need to ensure inequality is not too concentrated in the society . Mr. Whittaker we are not saying that. That a from our Polling Company needs to pay its fair share of taxes, and we analyze ax payments on a very level Playing Field basis. The big question is what does the company do around that issue . In particular with the tax bill. What does the company do with the windfall cash infusion it will gain from the tax bill, potentially. We are saying that a company should prioritize other stakeholders, and in doing so, it will be more successful over the long term. Companies, top five they are all tech companies. They pay their people well, they do well across all the things we measure. Come across our rankings, their companies from all industries that do well. Vonnie thanks to martin whittaker, it is a fantastic list of there will be an etf eventually available you can process from these Just Companies. We will let you know when that happens. Coming up, stocks are rising today, less than 35 minutes until the end of the tuesday session. The ecb this meet this week, its a heavy week. Mark it is 11 00 a. M. In new york, midnight in hong kong. There are 30 minutes left in the trading day in europe today. From europes brandnew bloombergs brand new headquarters in london, i am mark barton. Vonnie and i am vonnie quinn. This is the european close on bloomberg markets. Mark here are the top stories we are covering around the world. Bank of England Governor Mark carneys job a little harder ahead of this weeks policy decision. Headline inflation coming in at 3. 1 , the highest level since march 2012. Markets are rattled for a second day, an explosion at a guess of in austria gas hub in austria. Climate change challenge. World leaders are in paris for the one planets on it planet summit