Joe but the question is, whatd you miss . Scarlet some are wondering if President Trump will take on a more moderate taliban candidate trump. And wondering how to invest during the election, keeping growth high and the continued growth of populism in europe, Goldman Sachs outlining trade ideas going into the next year. And started to get a reality check with returns from hedge funds, why take risk if you can put retirement money into passive products. We will hear from the ceo of a billiondollar portfolio. To get a look at major averages. Abigail doolittle is a standing by. Abigail not a lot of action. The dow is at 6500. All are trading a little bit lower. Are back. Ekly gains as to what is helping with technology, microsoft a top percentage perform it. It is up on an upgrade. Nid the lady likes beli likes the business. And really on fire as google says they have added to their cloud platform. And our team spoke to them yesterday, saying it adds to legitimacy for amd. They are up on the year. It is a huge winner. And a top performer, we are looking at the financials, bank of america, citigroup, jpmorgan, and wells fargo are higher for the week. That is after the big rally last week. Jpmorgan earlier put in an alltime record high. And helping the banks with the rally in rates, helping the banks to lend and make more money that way. We are seeing strengths. And we are looking at the bloomberg. 4872, looking at this chart, this is provided from jonathan. It is a great chart. Laste the xlf over the three years. We see that it recently put in a new high, raking in about a 20 high. And the tremendous outperformance of the financial sector, relative to the s p 500, downtrend. Out a and we believe the rally will go into the end of the year. So that is for the financials. Name with thebig markets is not so much the financials club but the Dollar Strength. Scarlet unabated over the last couple of weeks. Looking at it compared to the mexican peso. Joe incredible. And we are looking at the long and end later on in the show, showing genetic showing how jim it has been. And a great story right now on the terminal on how the Goldman Sachs options, it looked like they made millions for the goldman shares surge at the last second. Scarlet looking at it right now. Donald trump making millions of dollars for those insiders. Joe congressional leaders from the left and right speaking out about the need to make washington work again. There is let Chuck Schumer told reporters after being elected the Senate Minority leader. We are ready to stand with republicans, working with soontobe President Trump on issues where we agree. But we will go toe to toe against the president elect whatever our values or the progress we have made is under assault. Of it is in the hands donald trump and the gop, can be conservatives and democrats by the Common Ground . We have a fellow from the roosevelt institute, mike, thank you for joining us. You heard him, it seems in theory that there could be room for democrats to find Common Ground with donald trump on infrastructure, do you buy it . Or is a trap . Mike it is a trap, there are big problems to see any kind of progress. Three big things to remember. One, the big priorities are some sort of weakening of health care legislation, either obamacare or medicare. And also a big reduction in tax cuts, the bigleague tax cuts. Paul ryan has engineered the caucus to move past this with 50 votes in the senate, budget reconciliation. And they knew they would do it when they had a friendly president. It will not require democratic votes. There has been a big fight over medicare and it is not going to involve getting them to sign up for something, so no give and take with democrats. The big proposal that could work between the progressives and the trumpet of ministers in, family leave or childcare, and then if a structure policy. And proposals that have been floating are not very good ones. Not really ones good for progressives. Tax cuts that would not do a good job stimulating the economy or providing security for families. And i think it is wishful thinking, it has only been about 1. 5 weeks since the election and people are taking this from trump and hoping there will be a policy. The jump campaign was built on, i will get stuff done. What will it take to get the democrats on board to get more initiatives . Done . Repeal forca instance, from what we have seen, they have not gone to the democrats and a set of kumal we have pullback this part of doddfrank and we will make the stronger. No give and take with that policy. And it was not in 2009, obama facing a similar situation with 60 votes in the senate, wanted republicans to come together. And it looks like mitt romneys plan, the heritage plan, the idea that it could be delivered to the private market. So i think in that sense it is problematic. And the structure inf rastructure, been in said he wants bannon once trump joe we have the quote. It says, with everythings related to jobs, the conservatives will go crazy. Im the guy pushing a trillion dollar plane with negative Interest Rates. It is the greatest opportunity to rebuild everything. Get them all jacked up. We will throw it against the wall and see if it sticks. It will be as exciting as the 1930s and greater than the reagan revolution. It will be an economic movement. It sounds like something you could have written. Mike if i thought there was going to be you know, i am d people like steve bannon if they had an inclusive vision it might work. I do not think they will deliver. They will do a big tax cut, putting trillions of dollars in for the next couple of years. It may or not break us out of stagnation and we may not get inflation up, which would be good for the economy, but a bad way of doing it. It is disproportionate. And things we are hearing our tax credits for private investment, things that will crowd out people. Basically Pay Companies to do what they are going to do anyway. And it is not rebuild infrastructure. If there was a trillion dollar kind of new deal, wpa hoover dam style thing, then that would be amazing. I think we will have a small, private tax cut and equity fund that will not think very much work. Scarlet you mentioned that donald trump does not really need anything from the democrats, but one thing conservatives were not ready, because they did not expect the election to result this way, was a replacement for obamacare. So what should progressives due to press an advantage of their . There . Mike it is interesting, they will have their own challenges. Doddfrank, the moment you pull out pieces of obamacare, it can collapse because it is kind of this agenda block jenga block of reform. And the parts reinforce each other, and you can weaken it and the whole thing would not implode with like the aca. What you will see is, what you may see is it is repealed, but the actual ending of it for the daytoday people will be kicked out maybe in two years. I think you will end up with a clunky situation where it is isr, but in practice it going along. Joe one thing from the profile that caught your eye was bannon slammed democrats for their association with those companies that have billiondollar caps, the unicorns, that the democrats talk about disruption and startups and you think he is right, that that is a misguided obsession with mainstream democrats. Mike the idea that we will be postindustrial workers and itself entrepreneurs, that is often in a lot of democratic knowledge, i think that is a lie. For a lot of people, you are in on jupiter because you are fired from your job and you are fired back as a contract worker. Most people work for a company with 500 employees or more, this is a big economy with a big scale. And i think Donald Trumps idea of bringing back a manufacturing economy from the 1950s is a lie. If it was not trade, it would be automation. The challenge is to make the Service Sector work for the middle class with secure jobs. And i am sad that he will not try to take that on. Scarlet when it comes down to it, we are talking about a revolution, but how far apart are the populists on the left and from the right . Wesease comes in for did see convergence on the way that wells fargo handled the false accounts. Mike and the electorate has been swinging, we went from bush, 20, now trump. The electorate is looking for an answer and it is swinging in different directions. Make him a donald trump people wanted a change. And clinton ran on a campaign of confidence, not what really excites people. I do not want to overlap the similarities. Steve bannon said that people from wall street should have gone to jail for things relating to the housing bubble and financial crisis, but they are likely to put in an attorney general that built a reputation on attacking voting rights, not bringing criminals to justice. We will see where it lands. That is another thing that will surprise democrats, they were hoping there would be overlap with appointments and transitions, but so far they are procorporate. Joe great topic, great insight. Thank you for joining us. Lix coming up, we heard from ms. Lagarde and we will have more highlights from that, next. 20 minutes away from the close, the s p 500 is down about 2. 2 points. It was a record week for the s p 500. Health care the biggest loser come off by 1 . This is bloomberg. Scarlet whatd you miss . Looking at the apec summit in lima. Moments ago, our correspondent talked to christine lagarde. Ms. Lagarde we have seen walls come down to the benefit of economies. I look at germany and when you look at china and when it was behind the great well, that is not what it was most successful. With theare stated by big question, what does she think about the u. S. And president elect donald trump . Trying to be diplomatic. Trying not to rock the boat, and pointing out that there is a case for adjusting the lives of those that have been affected by globalization. She said, she noted that growth has been slow and perhaps something needed to be done. Take a listen. Ms. Lagarde but we certainly know is trade be done on a different page, if you will, where it will also be inclusive and we will Pay Attention to those whose jobs are eliminated, whose jobs are displaced. Like nevertheless, she most leaders are nervous about what might happen if the United States withdraws from the World Economic stage, but she says it is too early to make a decision. The imf has not begun to think about what they might do. Scarlet and looking at china, on the one hand, you have traded disruption that could be upsetting for their currency, but internally, they could look toward other countries for growth. Any other comments on china . Mike we talked about china, because the two big economies in the group are the u. S. And china. With that transpacific partnership, they were trying to drive the rules of trade across the pacific for the toy first century, but if we are withdrawing from that, then the president of china is stepping in and trying to present a plan to increase trade that they have put together. It does not include the United States. What will that mean for the global power going across the Pacific Ocean . The trump administration, or the campaign, argued that china is trading unfairly. She did not say that is true, but she is keeping a close eye on what china does and they do not think that the yuan is undervalued at the moment and they will follow along to see what happens as china perhaps assumes a bigger role. Alix always a diplomat. Thank you for joining us. Scarlet time for the room glowed Bloomberg Business flash. Rivals, looking at dealing with products from emergingmarket currencies, rate and debt. The bank generated 2. 2 billion from macro trading in the first nine months of this year. And alaska air is close to reaching a settlement with the antitrust regulators in america so they can complete their acquisition of the virgin america. That is according to people familiar with the matter. And the settlement with the department of justice could be announced at the end of the month. Officials were concerned it could pose a risk to competition. And draft kings completing a merger, controlling more than 90 of the daily sports fantasy industry brady the consolidation could have antitrust concerns and regulators will need to look at the tire. They could close the deal next year. Terms were not provided. And if that is the Bloomberg Business flash update. Joe coming up, bonds going for their steepest twoweek loss in 26 years as donald trump cents Inflation Expectations is surging. We will take a look my next. This is bloomberg. Scarlet im scarlet fu. Whatd you miss . A massive repricing following the election victory of donald trump. And it is not saying more so than in bonds. Taking a look at the Bloomberg Barclays index, the measure of the global bond market, the high limitednd the route not to one profile. It is universal credit and you can see at the far right. These are two standard deviation movement, something we have not seen since 2015. Not something we see that is very common. And the inflation story was already taking place, but the victory of trump accelerated that and everybody is looking at different scenarios, tighter Monetary Policy included. Worseemarkable that it is than 2013 and the bond selloff. I am looking at something similar, the newer version. We are looking at treasury yields and the onemonth change on the u. S. Tenure. 10 year. It jumped over the last month. The biggest jump since the beginning of 2010. 5. 1 in the 31 up last month. Even more dramatic if you think about how much of that was done in the last couple of weeks. Think about inflation and higher rates and growth, but to what extent are the entire rates going to start impeding on the u. S. Economic recovery . We spoke earlier about the connection between higher rates and mortgage refinance is. Re finances. We have not really talked about what are the downsides of this . That could be a bigger story in the future, the negative side. Scarlet these go hand in hand because this is a drop of prices, being driven by the treasuries. Joe two ways of showing the same story, clearly the biggest market story of the moment. Scarlet and what it means for other areas of the world, think about donald trump, there will be borrowing joe we were talking about negative rates. Scarlet now you are paying 4 or 2 on what you want to borrow. Joe. This is for you i am bringing you a commodity chart, onemonth oil volatility. This will highlight what has happened, this spike in volatility, the range of 4350, all on the edge of opec. This is about opec and with a will or will not do on november 30. Every day, a new headline and this is a moving the oil prices. Saudi arabia mentioned to specifically a cut to 32. 5 Million Barrels a day. And that would imply a cut. The theme we are hearing is they might agree to a cut, but being able to have an actual cap will be elusive on november 30, so what will that mean for the market . There could be a downside for that. Scarlet that was a concern, following the last meeting, is a they have not figured out what country will do what. Alix when i spoke to the secretary general, he said we are all on board and i asked about assurances, and he said, we have them. But the market is not necessarily believe in it. Scarlet not just oil, we want to show you how the market is getting ready to close. Take a look at the index, we have the dow industrials closing down and it has been an up week over all. Down 37 points for the nasdaq. Barely changing. This is bloomberg. Away frome moments the closing bell. U. S. Stocks slip into, but it was the dollar that extended its rally. Scarlet it could pose risks following the u. S. Election. Scarlet im scarlet fu. Joe im joe weisenthal. Alix and im alix steel. Joe welcome to viewers who are coming in live from twitter, you can watch every day on weekdays. Scarlet we begin with the market minutes, u. S. Stocks closing lower on this friday, but the second straight week of gains for the s p 500. Groups,d within the there were seven that were lower. Scarlet it was to the downside. It is hard to call it a down week for the equities. Alix 31 billion injected into the u. S. Equities and in newer can ucs clearly when you look at s p financials. You can see the rally, the month since donald trump was elected president. Joe amazing. Alix a different story when you take a look at the mix vix. Twoe was a drop in just weeks, down 42. 5 and it shows how quickly the market rerated. We have 31 billion injected. Joe a look at bonds today, the yields are higher across the board. That is the theme of the postelection market. The 10 year yield right there. Take a look at the longer term chart. It is at the highest level in a little over a year, the last time we were here was early november 2015. So that is an incredible surge. Scarlet we saw Asian Central banks taken a back by how quickly the currency is where faltering. That is in malaysia and india as well, to support their currencies. And if you take a look at the yen, they had their biggest weekly decline since january, that was when you valuations triggered it. Alix i remember. Scarlet people were worried about recession and it is happening again. The situation has changed since january and donald trump calling china a currency manipulator, so factor that in there. And the peso extending a decline, even after they raised rates by half a percentage points. A sign that investors expected more from the Central Banks were they expect more rate hikes in the weeks to come. Alix looking at nickel and copper and lead, reversing the monster rally we saw. They are dropping. We have a strong dollar and the china Property Market cooling off, so that was hurting the industrial metals. I want to highlight gold and silver. The monster downside for gold and silver. Silver is in a bear market and gold is nearing a bear market. It is off over the last two weeks. A quick rerating that we have seen. If you are going into election day, you were burned. Commoditye miss the perspective. Those are the market minutes. Taking a deep dive into the bloomberg. Joe . Joe talking about the weird postelection action, this is what i have been following. This is a oneyear chart, the closeine is