5 Things You Need to Know to Start Your Day

Good morning. Yields on 10-year Treasuries hit 5% for the first time since 2007, there’s another megadeal in the oil and gas sector and dipl [View in browser]( [Bloomberg]( Good morning. Yields on 10-year Treasuries hit 5% for the first time since 2007, there’s another megadeal in the oil and gas sector and diplomatic efforts in Israel intensify. Here’s what’s moving markets. 5% yields Yields on 10-year Treasuries [crossed the 5% mark]( for the first time since 2007. Treasuries have been seeing some of the wildest swings in recent memory, fueled by a [surprisingly strong US economy]( and mixed signals on the rate path by the Federal Reserve, meaning [they have not lived up to the title of world’s safest asset](. Market watchers see that continuing amid geopolitical worries and a surge in debt supply. Mega deal Oil and gas giant Chevron has [agreed to buy peer Hess]( in a deal worth $60 billion including debt, marking the second large deal in the US oil industry in two weeks. Exxon Mobil [struck an agreement]( a fortnight ago to buy Pioneer Natural Resources for around $58 billion. Both underpin a bet by US majors that oil and gas will remain a key part of the energy mix for years to come. Diplomatic efforts US President Joe Biden has talked with leaders from Canada, France, Germany, Italy and the UK, [intensifying diplomatic coordination]( to try to prevent the Israel-Hamas conflict from spreading. Israel [supports diplomatic efforts]( to get Hamas to release hostages from Gaza quickly and in large numbers, a move that could delay and possibly alter its ground war, according to people familiar with the negotiations. Futures reverse US stock futures wiped out earlier gains as the milestone in Treasuries ripples through markets, with S&P 500 and Nasdaq 100 futures now sliding following falls in Asia and with losses extending in Europe. Gold and oil pared earlier declines. Elsewhere, Swiss drugmaker Roche will [buy irritable bowel treatment firm]( Televant for $7.1 billion, and German carmaker Volkswagen [cut its outlook](. Coming Up… There are no officials from the Federal Reserve due to speak on Monday, nor any major earnings reports. The latter will heat up later in the week with earnings season now underway. Republicans unveiled [nine candidates for House Speaker](, with a forum taking place among the contenders on Monday before the election process starts on Tuesday. Argentina’s election will [head to a run off next month]( between Economy Minister Sergio Massa and libertarian outsider Javier Milei. What We’ve Been Reading This is what’s caught our eye over the past 24 hours. - The IPO rebound crashes into [new world of risk](. - Bad news for the economy from a [shrinking CLO market](. - Money managers with $100 trillion [confront the end of the bull market](. - Apple’s plan to bring generative AI [to all its devices](. - Billionaires [in the crosshairs]( of global tax architects. - Uber to offer [hot air balloon rides]( in Turkey. - The music industry’s [first reckoning with AI](. And finally, here's what Joe’s interested in this morning Interest in nuclear power is on the rise, as a source of carbon-free, dependable electricity. Of course, there's a big gap between interest and actual building. You can find lots of people tweeting and posting YouTubes about the wonders of nuclear, while the construction of new plants is slow for various reasons. On today's episode of the Odd Lots podcast, we speak with [Mark Nelson](, a nuclear advocate and founder of the Radiant Energy Group, which provides consulting for the industry. The subject of our chat was this gap between advocating nuclear, and actually building more capacity. Two things really stood out from our conversation. The first is that, as is often the case, the muscle to build has atrophied. This is a story we see over and over again. We see it a lot on semiconductor production in the US for example. There's a perception, probably correctly, that we've paid a price for having outsourced so much semiconductor manufacturing, and that we're out of practice in building efficient fabs domestically. In other words, the idea that you can separate from design from construction is false. And so it's the same story with nuclear. There aren't a lot of entities in the US good at building nuclear, because there's been so little construction, and therefore that makes it harder to restart construction. The other thing that stood out is the false allure of "markets" as a way to effectively supply and distribute electricity. As Mark argues, a lot of nuclear capacity was taken offline, because the plants couldn't compete during periods of cheap natural gas... which is fine if natural gas is always going to be cheap. Or if we're comfortable with using gas forever. But obviously gas prices fluctuate and then they rise, and you no longer have the nuclear capacity anymore to go back to. Anyway. Obviously interest in nuclear is on the rise. Check out the [whole episode on Apple](, or elsewhere to get a sense of what it would take to convert interest into actual construction. Follow Bloomberg's Joe Weisenthal on Twitter [@TheStalwart]( Like Bloomberg's Five Things? [Subscribe for unlimited access]( to trusted, data-based journalism in 120 countries around the world and gain expert analysis from exclusive daily newsletters, The Bloomberg Open and The Bloomberg Close. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Before it’s here, it’s on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can’t find anywhere else. [Learn more](. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Five Things to Start Your Day: Americas Edition newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. 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