Vice President Biden is just six electoral votes away from the white house. Bloomberg chief washington correspondent Kevin Cirilli joins us for more. What is the vote count . What do we get over the next couple of hours . Kevin joe biden is just six electoral votes away from reaching the magic number of 270 electoral votes, which would put him at the threshold for the presidency. Within the next 30 minutes, georgias secretary of state is going to give a News Conference, and which they are going to provide an update on what is going on in the battleground state of georgia. 15 electoral votes, that would put him over it he is able to beat trump in georgia. In the noon hour, we are going to get an update from clark county, nevada, where the over and willing the overwhelming majority of electoral votes are cast in that state. This evening, not a clock eastern time, arizona, Maricopa County is going to provide an update. In terms of the dataflow on the president ial election front, we will have new information throughout the day. Meanwhile, cross over to the senate and the house. We should potentially also get some updates on what is going on in North Carolina. Remember, North Carolina senator thom tillis up for reelection there against cal cunningham. A tough reelection battle for the republican incumbent, but so far in the senate, Mitch Mcconnell has won reelection. Whether or not he is the majority or minority leader, we are going to be waiting to find out. But the key members of his coalition have also been reelected. Joni ernst, susan collins, as well as lindsey graham. Thank you very much, indeed. Kevin cirilli on the latest when it comes to the vote count, getting very close now. Joining us now is peter fisher, Dartmouth Tuck School clinical professor. Thank you for your time today. Equity markets are flying. People arent afraid, it seems, of divided government. What is your take . Peter clearly the equity market likes something it sees. Maybe it is just the election is going to be over sooner than later. I think it is likely to face up to a reality of how nervous the market was last spring when covid was surging and death rates were surging. We faced that here in north america and across europe. There is something hanging over the market it is not focused on, and the economy is certainly going to be paying attention to how much of a burden the rise in covid is for us all. Alix is there a possibility that the blue waves can still live . It might be a slight, small blue wave, but stimulus in the trillions might not yet be off the table. What do you think . Peter i dont know. I think congress is likely to want to do something, regardless of the constellation of blue and red, so i think you are right. But i think a blue wave doesnt seem to be there, so it is not going to be the original proposal the biden camp had. We are not going to look at that much stimulus. I think a deal will feel a little different. But i am quite focused on the problem of mortgage forbearance and rent forbearance. A lot of people are still unemployed, and the rules have been set up to let them not pay their rent and mortgages. Those are going to expire sometime, in all likelihood, in the next six months. The path of fiscal support for income is a huge sequencing problem, even if there werent political realities in congress that will make figuring that out hard. Guy do you think the virus will force politicians hands in washington . In the u. K. , we just extended our furlough scheme. Seeing a response to the virus as the second wave crashes over europe. There is a does a similar thing happen in the United States . Er down to happen sash something is bound to happen. That is Something Congress will have to enter. They are going to have to do something more to support the Health Care System, support state governments. Whether that flows to income support and the sort of furlough schemes you have in the u. K. And what we have done here, there will probably be some support, but the 1200 check, if that comes back again but i have to start paying my mortgage or my rent, it is still going to be a dampener for consumption. It is still going to mean a very slow recovery. Ifx i have to wonder then, the move in yields we have seen over the last few days, the story was they were pressing out this reflation thing. Is there a story to be made of a safe haven bid based on the indicators you were looking at . Will be dont know, i honest. I dont know whether it is a safe haven bid or not. I think it is the trades coming off in the election confusion of the story that is more compelling. The economy might not be as strong as people think. Aam still worried about stagflation economy. I dont know why we cant have high unemployment and prices pressing up. It looks to me that businesses are going to try to push through price increases where they can. This mornings papers talk about the Health Care System pushing through covid fees and cramming those down their customers thro ats. We may get a funny mix of price pressures and still low still high unemployment, excuse me, and i think that is going to be very difficult for the fed to navigate. Guy where does inflation come from . You talk about stagflation. Where does the inflationary impulse come from . I appreciate what you are saying about pricing pressure, but i would be stunned to see if Companies Really do have pricing pressure, significant pricing pressure Going Forward from here. It strikes me that covid is changing the narrative on so many things at the moment, and most of that pressure is deflationary. Peter i think of it is the stop go economy. There are places where production can ramp up and beat demand. There are other places where it cant. I think it is just the reallocation of resources, both supply and demand in the economy is still going to be a transition. There will be a lot of noise. I am not worried about rampant inflation, but i think theres going to be some places where we see pockets of it, and that is going to be hard for the fed to fathom. Just catching up on the data, the way inflation is calculated, the basket that we consume has changed dramatically. The inflation calculators have not caught up with that. I think theres just a lot of noise in the system. Alix i wonder what using that means for the dollar. The bloomberg dollar index is the lowest we have seen since 2018. How can yields keep going lower and the dollar go lower at the same time . What do you think . Peter they can both go lower at the same time. Of course they can. I think there is something that has been missed, which is theres been noise in the last few days that has come down, but the spread from two to 10 year yields has been rather steep compared to any time the last few years. It is all at very low levels, but the yield curve has been steepening over the last several months. It is something people have to focus on, both the slope of the curve, even at these ridiculously low levels. I think there is still going to be a lot of noise in the dollar that we just have to be careful not to over interpret. Guy when does the government pivot from income support, consumption support, to figuring out that we need investment in the capital stock, that we need to figure out which jobs are going to work and which ones arent . When does that moment come . Dont i dont know, and i think congress knows. There is that first transition of income support and mortgage forbearance, and getting that sequence right. The next one is open support for consumption is just not Something Congress is going to be able to do. Tounderstand why we want support people who have lost their jobs, but we dont want to do that on an openended basis and keep borrowing longterm money to do that. Borrowing longterm to support current consumption isnt an make much sense. We got to make that transition at some point. It is going to be very hard for them to do that, and yet they are going to have to make it. Think about the company side of this, not the households. The only thing worse than the government picking winners and losers is openended support for losers. That is not a prescription to get the economy going again. They want to get productivity up. You want to grow the economy through investment. Perhaps we will finally get infrastructure. Maybe we will see it in the next four years, even with a biden government. But congress has got to make veterans us in, and it is going to be very hard even without politics. I dont know how to make veteransish and to make that transition. Alix lasted a whole 10 minutes without talking about the virus, but there is a thought that what we are seeing in europe is going to happen in the u. S. , that we will see rolling lockdowns. 2021 and 2022, how does congress and the white house combat Something Like that, when they are never going to be able to really pivot toward something more meaningful . Peter more lockdowns in our political culture, we see how closely divided the election was , so there will be parts of the country where a government ordered lockdown will be counterproductive. I am red across the river from vermont. They have done pretty well without a lockdown, but by encouraging businesses. So i think we have to be careful to make sure we just dont focus on lockdown yes or no, but on how we manage it. About the me nervous country is it seems we are too late for Contact Tracing and doing a lot of things we hoped we could do. The acceleration is just too great. We are desperately hoping to see some of the states reach a peak and come off of the peak so that maybe we can turn this around, but so far it is just rising, rising. Lockdown is not the only measure, but we will have to see a mix of measures. I think that is something that are big federal government and states will struggle to get right, even with a new administration, if that is what happens. Guy how do you see the next six months on folding months unfolding . Everyone seems very bullish today. Everyone is expecting things to get better from here. They like the idea of a government that isnt going to be able to do very much. Do you see the narrative improving in any shape or form over the next six months . Peter yes, i dont want to be too gloomy. Orn with divided government a closely divided senate, i think there are going to be some things that congress will want a certainprovide level of support to the economy. That is how politicians usually like to spend money. That is going to be vital. What happens to the whole real estate industry, as ive said, is going to be very important and how that affects us. But i think we are going to have a slow recovery. We will see volatility in the stock market. It may be volatile down another day. I think we can put that noise aside when we try to think about the economy. But the pass of the economy is really going to have an effect on household consumption. The savings rate has stabilized around 14 . That has come off the ridiculous highs of last spring, but 14 is still pretty high compared to the 8 we had before covid. You can look at that is glass halffull, so households have some firepower if they want to go spend. You could also look at it as, with covid raging, who is going to go out and spend . Some of those who have savings are going to stay home, and those that have jobs are not going to be a will to spend much. That is where fiscal policy needs to come in to get the transition right. I think there is a good shot we will have congress do something that is helpful in this regard, but there is no guarantee. But then the question is how much does covid rage, and do we all go back to focusing on the death rate, which would be very bad for consumption. Alix i should point out that the u. S. 30 year fixed for Mortgage Loans dropped, so some support there if you are in refi. Peter fisher, you are going to stick with us. You can follow our election coverage on our live blog on your terminal. This is bloomberg. Alix in the middle of the election, it is also fed decision day. Bloombergs International Economics and policy correspondent Michael Mckee joins us now. What are we looking for . Michael we are not looking for a whole lot because the fed has two problems. One is we dont know who the president is going to be, but we have a pretty good idea it is going to be divided government. That raises the question of how much fiscal stimulus will you get. Would you get enough . Even though Mitch Mcconnell made some nice noses yesterday, that is still an unanswered question. The fed still has to figure out how much stimulus might we need, and expects jay powell to ask about that today. The second problem we have is the virus. Lost in all the election news yesterday, 100,000 new cases for the first time ever. An exponential rise in virus cases. A lot of warnings about what is going to happen. Doctors very concerned. That is going to determine how much we need in terms of fiscal stimulus because it will give us an idea of what we were talking about earlier with the number of rolling closures we might see for businesses out there. We are seeing a little bit of that now in the jobless claims numbers today. They were up 751,000. Here is what we are looking for tomorrow in terms of jobs. The interesting thing is the consensus is still 661,000, but look at where the distribution is, between 400000 and 500,000. We have a tail on the right side that keeps the number higher in the consensus, but wall street really things we have slowed down so far. If that is the case, what does the fed do about it . We heard from bill dudley a week ago, saying he doesnt think the fed has many tools left, and in truth, they dont. They raise and lower Interest Rates. These are the Interest Rates for homes, cars, mortgages and car loans. They are already very low, so can they get any more bang for the buck out of it . Youve got to figure they are going to stand back and see what we need, and they are going to ask congress again for help. Guy perfect set up. Thank you indeed. Lets bring back into the conversation peter fisher to get his take on this. Peter, i appreciate that maybe for now, the fed maybe wants to take a step back. But if fiscal is going to do less, can Monetary Policy still do more . Peter not really. They dont want to do that. A lot of mornings but a lot of voices are saying this. They are reaching the bottom of the barrel. Buying more assets is available to them. We saw the bank of england earlier. But that is not really going to change the pass of consumption and savings going ahead. The fed, they dont really want to talk about that they are reaching the end of their toolkit, and they were also caught between an uncertain election and tomorrows employment report. , the newsvid overhang overhang that mike referred to, is really what must have the fed most nervous. Normally, we have a slowdown in Economic Activity in the winter. That is why we have seasonal judgment factors. The slow down could really be dramatic this winter if we all have to stay indoors and worry about transmitting the disease. We can only we we can only order so stuff online. Yes, the fed wants to avoid political spotlight today with the election, but they also just know what corner of the economy might be an area that might rebound or need help. That uncertainty about the distribution of spending that Congress Might do, and as we talked in the earlier segment about the sequence of fiscal support, mortgage forbearance, and shifting to investment, that path is really uncertain, and that is all the more reason for the fed to want to sit on its hands. So are they out of gas . Yes, they are mostly out of gas. Alix lets talk about some tweaks they can get to before they have to go to the gas station. They already reduced the minimum loan size for the main Street Lending program. Is there Something Else they could do their, or the municipal facility the Municipal Liquidity facility . Can they tweak these things to really help . Peter i dont think so. What the central bank could do in a crisis last march, or we think about 10 years ago, it can help liquefy the system when the system is under stress. But just getting people to borrow more and take up more debt when we have corporate debt at a historic high in america today, in macroeconomic terms, there may be some companies that want to borrow a little more. Maybe they can bridge. But the idea of pumping up debt to higher levels now, this doesnt make much sense if we are uncertain about the income stream that can pay for it. So yes, the fed is tweaking the main Street Program, but lets turn that around. The main Street Program hasnt amounted to much in quantity terms. A lot of Credit Demand from that. So yes, they try to make it that little more attractive. But powell has said they can only help lending. They cant help spending. That is really the fundamental problem here. With rates so low and the fed having done so much, getting people to borrow now isnt the most sensible thing. Guy there is one argument that says that qe is now serving a different role, and there is an argument being made here in the u. K. Regarding this, that the role of qe is now to calm orchids to allow governments to be able to borrow, to be able to fund the fiscal programs they are pushing through at the moment. Have we shifted the rationale for qe to that kind of argument, do you think . Peter that is the more cogent argument. If we go back to the Second World War in the 1950s, thats when the fed lost its independence, was managing the yield curve, and the only reason for doing that was to help keep our when costs down while the government was financing the Second World War and trying to pay that down in the years after the Second World War. Central bankers havent wanted to say that. They keep saying they are doing qe to stimulus growth. But it is hard to see the arguments. The fed has explained they dont think they are pumping up asset prices. They also dont think that growing their Balance Sheet will create inflation. But then the question is, why are you doing it if you dont think it is stimulating the economy or we are going to get inflation back closer to your target . What worries me is the fed is really controlling lots of prices. It is intervening in to many price markets. It is intervening in the terms structure. It has been for some time suppressing the mortgage spreads. Since last march, it has taken a hand at Investment Grade and highyield spreads. That is an awful lot of prices to try to be fixing. You can make the argument that by suppressing volatility and fixing all of those prices, they will encourage investors to take more risk. But it is really another step to see how that is going to stimulate the economy and get jobs up. Maybe the only rationale left is to help governments finance their debt, but that is not a role central bankers want to talk about. Alix what about the transmission mechanism for banks . We have seen in the ecb, for example, basically paying banks to loan money out, in essence. What about something along those lines here . That feels like it could be a lot of firepower, particularly as banks try to tighten their lending. Peter that really is a fiscal role, and the unique structure of the ecb is what lets it do that. There is no government that is leading over them. It is come located. To provide direct credit support, paying banks to lend, is really what we mean when we think about fiscal policy. The credit Loan Guarantee programs. 12 years ago, i helped author the Airline Stabilization program because the government set up a program to lend money to the airlines after 9 11. The fed could go there, but they are going to be tiptoeing, thinking about the separation of fiscal and Monetary Policy. So you could come up at that still assumes someone wants to borrow money. You can encourage banks to lend money, but you still have to think about whether there is a business out there that is constrained in its ability to borrow. Guy the pboc has been quite creative in the way that they have used Monetary Policy. It hasnt used the traditional levers that banks of the west have been using. Used Digital Currency to stimulate part of the economy. Do you think we ever get that far . Peter no, i dont think we do. It is possible. I think the command and control apparatus is more familiar to them. I think the fed directly turning on the credit spigots to Certain Industries and not to others is something the fed is sort of doing in a broad brush stroke now with their different programs. But to target at the way the pboc has would be very uncomfortable for the fed. Thats my thought. Alix peter, it has been so great to talk to you. Weve loved having you on for this halfhour. Thank you very much. Tune in for a special the fed decides at 2 00 p. M. In new york, 7 00 p. M. In london. As we had to break, a live shot from georgia, where ballots are being counted. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. I think what is happening today in the markets is an endorsement of divided government. The risk for investors not if there is risk return, you should be exposed. That actually may not be what is driving 2021. Donald trump is not the source of all the division in our country. We have been a deeply, increasingly deeply divided country on the partisan level going back several years now. Longerterm, we are going to see gridlock, and we think gridlock is good. We are not going to see higher taxes. The vshaped recovery is intact. Youve got a fed that, regardless of who wins, is going to have their foot on the gas pedal. There are things in the market to both cheer and to fear. I think the contention in washington is going to lead to slower stimulus, no matter what party wins the president ial election. Without any kind of clarity from congress, support for the economy is not going to come. We are just going to get a slower, grinding recovery in physical gridlock. The overall theme is that things continue to be incomplete, and we just have to wait, as hard as that may be. Alix you just heard how various market part is beens Market Participants view the markets. Joining us for more is leon kalvaria, city level markets chairman, and Bloomberg Citi Global Markets chairman, and bloombergs sonali basak. Market you make of the up on gridlock . Leon thank you for having me. I think from a market standpoint right now, we have ended up with some reasonable clarity at this point in time. The odds of a contested election appear lower, although not out of the question. It looks like the republicans will hold onto the senate, although obviously that is not yet finalized. From a market standpoint, the market wants clarity. As they look at this Going Forward, the tax increases at the corporate side go down if this outlook is finalized. Therefore, people can start to look and predict the future little bit better. The common nation of potential stability from a legislative standpoint, from a tech standpoint, plus the potential output for therapeutics coming in the near term horizon is allowing people to start to plan ahead in some reasonable fashion, and i think what youre seeing in the markets right now is a reflection of that, and obviously it has been a little big exuberant the last few days. Sonali one place you are not really seeing this exuberance yet is the finance market, with issuers Still Holding back. What are the uncertainties among Corporate America when it comes to borrowing more money to prepare for space i had for the space ahead . Leon a lot of financing has already occurred. Cant forget we have record issuance going back 3, 4, 5 months ago. There is some financing pipeline coming in the highyield market, and some lbo financing, but a lot of financing has taken place at this point. There is no necessary, pressing need for people to go to the market. That may adjust in the next few weeks, depend on the economic outlook. At the moment, it seems relatively muted, certainly on the investmentgrade side. On the highyield side, the markets have been relatively decent, and i think you will start to see some financing getting done here. That will provide the marketplace both with yield and with interesting product for where to put their money. Guy good morning. Who do you think the big winners of this kind of environment are likely to be . Leon it is such a difficult question to answer. Obviously, tech has been a major winner in this environment. I think all of us have seen the Massive Gains that pack has had. Ecommerce business has gone ahead and a fantastic passion. The pharmaceutical industry has pulled together in a way that i should be proud of. The ecommerce business has exploded. It is going to be there to stay right now. Online will continue to thrive in this kind of environment, no matter when people come back to work. That will continue on here. We have seen the big beggar, especially in technology. Theave seen m a in october strongest since 2016. But what kind of pushback do you think there would be in the next administration for some of this consolidation . Leon it is hard for me to comment because we need to see what the composition is of the administration, the potential cabinet Going Forward. Obviously there have been some conversations related to big tech, but at the moment, i am not certain you will see much of that nature. There are some significant m a deals that are sitting in the regulatory horizon, especially on the semiconductor side. My expectation is we may see a rigidly a relatively benign approach. Obviously with normal issuance that people look at, but at the moment, i think we need to see the composition of the potential cabinet and need to start to see how people are going to act in this environment before we get any real conclusions. I think you will see them get more comfort will projecting their look their outlook. Have veryses, they attractive start prices. I think the m a activity will start to pick up here. Alix just to highlight one sector that had a real binary outcome in the election is energy. We had seen m a start to cut. It doesnt look like the worst Case Scenario of abandoning fracking might come into the cards. The subsidies will still be there most likely. Do you think . What do you think . Leon i think the Energy Sector is going to have more and more consolidation. If you look inside places right now, i think the shale sector has had Many Companies growing in the last 10 years. A number of those companies will have trouble getting their cost of capital and being able to fund themselves, especially given where Energy Prices are right now. My view is you will see continued consolidation in terms now. E shale business right theyre access to capital is limited, so you will get more and more consolidation as people try to get their costs down in a lowenergy environment. That will continue. Guy the belief seems to be that taxes arent going up now. Do you think that is the correct story . We are facing a virus that is ripping through both europe and the United States. At some point, you would have thought some of these budget deficits are going to have to be brought under control. The way to do that in the mediumterm is potentially higher taxes. Is that some thing for tomorrow . Is that a worry right now, that we have to deal with it down the road . Is that how corporates are thinking . Corporatese moment, are viewing that the tax regime will remain largely intact. Therefore, the focus is really on growing the businesses, and therefore dealing with Economic Growth and ultimately driving down deficits and increasing employment, which in turn will increase Economic Activity. No one is planning on higher tax rates. Lets see what the administration looks like, and people will start to make their judgments. At the moment, they are looking at this and saying reasonable status quo here as far as the eye can see. Sonali another big thing that happened this year, and i know citigroup was on the deal, not necessarily answering to ant in particular, but i know people are looking at the relative advantages between u. S. Tech and china tech. The largest ipos we have seen in the last 12 months have come from china. How are investors looking at this . Leon obviously i cant comment on the ant situation, as you correctly pointed out. At the moment, the investors are very focused on the ipo market so youu. S. Right now, can see record ipos and specs that continue to be a number of winners coming out of the Technology Sector right now. In terms of what happens outside of the u. S. , at think it is simply going to be a waitandsee attitude. Lets understand how all of this gets resolved and with the investment horizon is, that people are going to sit and look at it. From a u. S. Standpoint right now , the ipo business, especially when you think about tech and health care right now, is continuing to be very robust. A number of winners deciding that this is the time to access the market, either directly through an ipo or through the process that has exploded in the last six month. To follow up a little bit, how do you think Institutional Investors should be viewing what has just happened . There is a need maybe for benchmarks to invest in china right now, but maybe there isnt the transparency that many investors normally expect. How do you square those two things . Leon i think you square those things when you understand what the facts are and what will be the investment horizon and the investment proposition. At the moment, people cant really make that decision because they dont exactly know what the feds are and what the outlook will be. Once there is clarity from that standpoint, china is a huge growth, and people will want to invest. Once you get reasonable outlook about what the investment proposition is, let people evaluate the how, the when, and what value they are going to invest. But i think it is going to be a little bit of a wait and see at. He moment guy we are going to leave it there. Really appreciate your time today. Thank you for sharing it with us. Kalvaria,ery leon thank you. Coming up, we will look at the impact of the pandemic on media companies. Iscovery communications cfo going to be joining us. This is bloomberg. Ritika this is bloomberg markets. Equityup, sam zell, Group Investment chairman and founder. This is bloomberg. You are looking at a live shot of secretary of state in georgia, in a News Conference in atlanta, updating on the Election Results and where they stand in terms of counting. The latest that we have is that georgia has 99 of the vote counted. Donald trump leading joe biden by just over 18,000 votes in georgia. That total is according to ap. Still not quite there, but almost. Lots of caveats going on in that key swing state. Afed decision really casting shadow over earnings, but there were tons of results today. Bloombergs Abigail Doolittle is looking up what is on the move. Abigail it is hard to believe there are earnings, but there are big names reporting this week. Gm shares are being rewarded after the cup and he put up a very strong quarter. They beat both top and bottom line estimates. We also have shares of Cardinal Health popping on the day. They put up a boost in the quarter. Bristolmyers is in the process of acquiring celgene, and another plant has to be inspected, so that stock is down a little bit less than 1 . Discovery communications put up a really nice quarter, beating adjusted earnings by 21 by 19 , excuse me, putting up 0. 81 in adjusted earnings. As for how this quarter is inparing to the previous 2019, it is pretty interesting. On an absolute basis, the numbers are down. Earnings and sales are down from putting 19, earnings by about 7 , sales by 3 , but beating estimates, so it tells you companies have done a good job in managing expectations. As for Discovery Communications in that great quarter they put up, net income grew by 15 . Also very strong with women, and tlc, the learning channel, is the number two cable channel in the 1849 age category. That stock is being rewarded the 18 to 49 age category. That stock is being rewarded. Guy lets talk about what is happening with discovery. Gunnar wiedenfels, Discovery Communications cfo, is joining us now. I want to back to the election and how that is affecting the media right now. One of the things we have seen coming into this election was a real pickup in ad rates. What happens to ed rates postelection to add rates postelection . Gunnar the most important way this has affected us is that very strongmed ratings over the past couple of months, and actually years now, and the increased manned for political advertising has certainly been a helper in october. We are not as big as many others with political advertising, but it has tightened the market to some extent, so that has certainly been a positive. But that is an overlay to an overall strongly recovering at market. Everything is relative right now in this macroeconomic environment, but we are very pleased with the trends we have seen coming off of a bad second quarter, and now month after month seeing some improvements. Alix what does recovery mean . You have a significant exposure in international as well. Give me a good idea of what is going on regionally as we see rolling lockdowns happening in europe. Gunnar there are a couple of things. Throughout this entire crisis, we have seen some correlation between advertising bookings, cancellations, and the overall news flow and sentiment. That has continued. Similarly as in the u. S. , internationally we have seen sequential improvement most month after month. It is still a little bit of a differentiated picture. America bottom in a little later than europe. Europe, as we said this morning, some of the key markets in europe have been positive for us in the third quarter. We are seeing some momentum into october and november as well. But i want to caveat that because we are closely monitoring the covid numbers in some european markets. We have seen increased countermeasures again. So we dont want to get carried away here, but it has been a pleasant Development Month after month. For one of the big things 2021 is you are moving into streaming. You are entering a very crowded market. How do you think youre going to do, and do you worry that maybe you are coming to this a little late . Gunnar first of all, we have been at this for a while. For the past two years, we have been working really hard to develop a central mobile Technology Stack that we have already been using for the product that we already have in the market in many european territories, but also some more vertical products in the u. S. And elsewhere. So we have been at this for a while. We are not worried about coming to a credible market because we are very differentiated. We own all of our content. We had a very specific content genre focus that we are very good at. We have been doing this for 35 years. We are in a very strong position. It is an efficient content category, so we dont have to spend 5 million our first scripted movies or series. We can operate much more efficiently. So between what we already have in terms of our footprint and content efficiency, i feel very good about our position to step into that market. Alix you have also made a big bet about sports. Sports has been the achilles heel for disney over the last year and a half or so, but on the flipside, youre really good at controlling your costs. What do you charge for your streaming services . How do you play up the low costs and capitalize on sports . Gunnar sports i think is an important component in the mix. It is not necessarily always a standalone proposition, but it has got a very strong role in making a combined offering more attractive, and in a way, working as a locomotive to drive an entire package. We have been enjoying these benefits from being in the sports space. The olympics, that we have owned since 2018, have been a big driver for our entire portfolio. We look forward to continuing to use sports as a big factor in driving more aggregated global offering. Guy how different will the olympics be as a business proposition when they finally happen, hopefully next year . Gunnar we will see. I dont want to speculate here. We are very committed. We are full speed ahead on the preparation, getting ready on in end for olympics in tokyo 2021, and i think everyone is committed as well. What exact lay that event is going to look like obviously is hard to say from todays perspective. Taking a step back from our Business Model perspective, we think there may even be some positives for us now from the situation in which we have two games back to back within a period of nine months. That may open up some sponsoring opportunities that otherwise wouldnt of been available to us. We are trying to make the best out of it. Alix do you have any visibility on hiring . We are going into jobs friday tomorrow. Do you have any idea in terms of wages under workforce . Gunnar i want to focus on discovery. I dont have a strong view on broader trends, but clearly for us, hiring has been a little bit on the back the back burner. We have slowed down hiring to make sure we are properly prepared for whatever outcome we might be facing. But that being said, we have a number of people specifically for the part of our organization driving the preparation of these direct to consumer offerings, and that is where we have been building out our workforce what significant. Alix thanks a lot, got our wheaton fells, discovery cfo. Thanks a lot, donor wheaton cells thank a lot, gunnar discovery cfo. This is bloomberg. O. This is bloomberg. Alix time now for futures in focus. Guy and i are taking a look at volatility, falling across all Asset Classes as you have joe biden on the brink of victory, and equities soar once the election was really underway. This is a oneday change in the march havent seen since earlier this year, around the crisis. Is it pricing in not just a delayed election, but what if you pricing a contested election . Does that make the story a little bit different in the futures market . Guy but you also see is a bump when it comes to the situation in december. I think that is worth paying attention to. Theres a couple of reasons behind that. What we could be pricing here in terms of the list we get with december contracts, and you can see that on this chart here in the blue line, is that maybe that is starting to price in that concern that we are going to get a contested election, but there is potentially another reason for it as well, which is slightly less exciting, and potentially a little bit more plausible. That is simply that we are coming into yearend. As a result of which, after the kind of year we have had, you could see a little bit of volatility, implied volatility and realize volatility, as people reposition their portfolio. But we are definitely potentially facing some electoral challenges, and bb that could stretch out. But december 14 looks like a key date, and obviously we had towards the inauguration of whoever that president will be towards the beginning of next year. In terms of what we have got coming up in the next hour for you as we move the on volatility , we are talking about what is happening on it comes to the european economy. Andrew bailey, governor of the bank of england, speaking to me a little bit earlier. Telogen ohlone, european commissioner for the economy, also joining me paolo gentiloni, european commissioner for the economy, also joining me in the next hour. Numbers likely to be even more to medically to the downside. We will speak to and hear from these gentlemen in the next hour. This is bloomberg. Are you frustrated with your weight and health . Its time for aerotrainer, a more effective total body fitness solution. announcer aerotrainers ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. Do the aerotrainer super crunch. The prestretch works your abs even harder, engaging the entire core. Then its the back extension, super rock, and lower back traction stretch to take the pressure off your spine and stretch muscles. Planks are the ultimate total body exercise. Build your upper body with pushups. Work your lower body with the aerosquat. The aerotrainer is tested to support over 500 pounds. It inflates and deflates in less than 30 seconds using the electric pump. Head to aerotrainer. Com now. Now its your turn to lose weight, look great, and be healthy. Get off the floor and get on the aerotrainer. Go to aerotrainer. Com, thats aerotrainer. Com. Guy live from london, im guy johnson. Alix steel is in new york. We are count you down to the european close on bloomberg markets. Eurozone unemployment likely to surge to 9. 4 next year, according to the latest forecasts out of brussels, and that is prelockdown. Economybe joined by the commissioner paolo gentiloni. The bank of england boosting its Bond Buying Program by 150 billion pounds. I spoke to governor andrew bailey. And new cases continue to hit records across europe. Greece becoming the latest country to impose a lockdown. The driver of markets continues to be the fallout from the u. S. Election. The market seems to love the narrative that we have divided government, and we are continuing to see equities moving higher. Volatility here in europe is down by 20 over the last two sessions. The stoxx 600 up by 1. 61
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