Treasury yield target. Chancellor merkel looks to repair the transatlantic trade ties but bidens Irish Heritage threatens the u. K. s special relationship as his views around a hard border in ireland remains central to brexit talk. Welcome to the program, everybody. Just under one hour to go until the start of cash equities trading. Lets have a look at where users have us positioned. We saw a strong appetite for risk assets last week and that continues with the big news over the weekend about president elect biden. Point 21. 550 futures percent, echoed by ftse futures and dax futures. Buyave a sense of if not everything, buy risk and treasuries. We are not seeing full wholehearted embrace of the fixed income asset class this morning. This is what got on the global stocks outlook. Mastec futures outperforming. A lot of this had to do with hyden the optimism around what President Biden might do around stimulus although there is a senate conversation. What does this mean for reflation . We do need to focus in on what is happening with covid. The global fight against covid, the u. S. Fight against covid. We will continue to do that as we get to the program. Lets focus on the u. S. President ial election. Joe biden is preparing to take office as the 46th president of the united dates. States. Pres. Elect biden i pledge to be a president who seeks not to divide what unify, who does not see red dates and blue states, only sees the United States. Our work begins with getting covid under control. We cannot repair the economy, restore our vitality, relish ,ifes most precious moments days, weddings, graduations, all the moments that matter most to us, until we get it under control. Wanted tohe outset, i represent this campaign, to represent and look like america. We have done that. Who oflmost a view you who voted for President Trump, i understand that his appointment tonight. I have lost a couple times myself, but now, lets give each other a chance. The president elect will begin his transition by unveiling a Pandemic Task force today, signaling his policy irt after global infections top 50 million. Joining us now is ed ludlow. Good to see you once again. Hey busy week for everybody. Finally, we seem to have an outcome. Are we expecting Quick Movement on tackling the virus . The core ed this is policy priority for president elect biden and his team. That plan has been based around testing, tracing, and mass wearing. We expect him to name the 12 strong Coronavirus Task force that will include names like former fda commissioner david tesla, the former Surgeon General, and a source told bloomberg it will also include dr. Marcella nunez smith, a professor of Public Health at yale. We know as well that the biden team have been talking, according to sources, with executives from the pharmaceuticals industry, who are involved in operation warp speed, which is Americas Development plan for a vaccine. What is less clear is how much access the biden timo have for the Current Administration coronavirus given the President TrumpPresident Trumps position on the outcome of this election. Another cause for concern is the General Services administration has not yet confirmed biden as president elect and that is important because until the gsa does that, his Transition Team cannot access federal funding and federal agencies as part of the transition progress so we are wanting to hear more about that as well on monday. Anna we might have to wait until december or january given what is happening with the senate. He heard from certain members of the Republican Party although not a clear picture, i would say, from the Republican Party, as to where they are at this point. President bush suggesting saying he has phoned and spoken to president elect biden and others to congratulate them so have we heard anything from President Trump then aside from the tweet activity over the weekend . Ed aside from the tweet activity, no. Publicly, as it stands, President Trump does not accept the outcome of this election. He goes a step further, saying he believes he won the election by a lot. Sources told bloomberg that within President Trumps inner circle, there is recognition not just that these legal efforts at the Trump Campaign are trying to deploy to alter the outcome of this election, but recognition that the Election Results stand. Although, we are hearing advisers including President Trumps own soninlaw, jared kushner, are still pushing the president to pursue legal avenues. A number of publicans including george w. Bush, senator mitt romney, have come out on Television Shows on sunday and said, ok, the president has his right to pursue those legal courses, but the u. S. Electorate has spoken. At the same time, you have the likes of senator ted kruse and Lindsey Graham also going on the airwaves, supporting the president , who maintains that there has been fraught in this election, malfeasance. It is important to underline at this point that there is no evidence put forward by the Time Campaign that that is the case. They are seeking Legal Recourse to basically halt votes in states where they are ahead or prevent votes from being counted the vice versa. At the end of the day, he is trailing in the states that have yet to be declared and biden is set to receive Electoral College votes putting him comfortably in a position to be president elect. Anna thank you very much. Ed ludlow joining us from san francisco. Global equities had for a record high amid optimism about the outlook under a joe biden president. Lets get into the markets with laura cooper, bloomberg market live strategist. It seems President Trump is still taking the legal course, but i read some views which suggest markets are trading as if this is no longer a contested election. What do you make of the early response to president elect biden . Laura what we are seeing in the price action is that there has been some pentup demand coming from investors so the fact that we do have some election clarity with resident elect biden, we are seeing global stocks really take that in stride and we are seeing Global Equities climbed to new highs. I think that could potentially be a nearterm story. The narrative can shift quite quickly just given the fact that a number of uncertainties will remains so yes, beyond the senate race not being determined until early january, i think focus will turn back to this surging virus count that we are seeing in the u. S. And the potential for tighter restrictions, and that overlays with the fact that we are not still in this period of fiscal gridlock so we are not necessarily going to get that needed Government Support in a timely manner as Downside Risks now. Anna the biden bump is present in asia. And futures suggests we will live another day of that. When it comes to the gridlock and hopes for stimulus or expectations around stimulus, some suggest we might have to wait until january to get clarity. This will be something that fixed income markets, treasuries, will be really focused on. Laura absolutely. I think it does capture the uncertainty that lies ahead. Onot of that is predicated said monetary support. That has been a key pillar underpinning risk sentiment so on so expectations are still the fed to step in amid this fiscal gridlock, and ultimately, this does portend to potentially the end of the America First narrative at least in terms of equities because equities are quite strong in terms of valuation and if you do actually see a divided congress, that could temper some of bidens policies and ultimately, that could lead to unchanged tax policies which could be favorable to european equities. It could potentially be less combative foreign policy, more favorable global trade prospects. Ultimately, i think that this does portend to a rotation away from iraq, notably as the virus count and gridlock will come into view, notably more in the u. S. Anna interesting to see Risk Appetite listing all kinds of assets including oil. Laura cooper, thank you so much. Birds market live macro strategist. London. P to 7 10 in risk assets are bid higher as they look forward to joe bidens presidency. Will they stay that way for long . We will speak with a representative from aviva investors, next. This is bloomberg. Markets will probably show that election. The lay of the election is not there either. They will try and gain exposure to Chinese Markets rapidly and they have chosen to gain that exposure through the bank consensus names. Yes, it does feel like a very strong, euphoric rally. There is a genuine belief that the equity premium is being attached the markets which were u. S. Centric or u. S. Connected and has gone down. Biden will be a little more nuanced about this. His room to maneuver is limited because the washington republican democrat Business Community are fairly united around the fact that the united dates has to do something about china and it tough. On theill be focused deficit between the u. S. And china, the trade deficit. Renewing the trade war is unlikely. Which is generally positive for equity markets. Looking more broadly, more conciliatory relationship with other countries, there would be less rhetoric about the trade balances generally, we think of it as a net positive for asia. Anna risk assets became more enamored with projected president elect joe biden in asian trading. The Bloomberg Markets live team is asking how far the rally can go. We heard some of the responses to that question. Send us your responses if you would like to be part of the conversation. Ib tv if you would like to have your say. How high can biden push these assets . Market check for you. Asiapacific up i 1. 3 . Futures pointing to the upside. Nasdaq futures even more so. We are joined by the senior Portfolio Manager for fixed income at aviva investors. Lets start with the question of the day. To you as well. How high the you think risk assets can go on a president elect biden . Markets are treating this election outcome as somewhat of a goldilocks scenario. That can certainly continue in the short term. There is likely to be or have been significant cash on the sideline that was waiting for the uncertainty to clear. I think that is in large part one of the reasons why we are seeing such a melt up in risk assets. Which this can continue depends on policy support going forward. We are seeing a third wave of covid infections in the u. S. That will need some fiscal response. Once net position squaring has happened after the election, investors are going to focus back on the things that were happening preelection and it to ongoing economic recovery, covid dynamics and government court. Word you mentioned the goldilocks. Equate that with goldilocks. That works when things are good but when things are bad and when things require action such as the fight against covid19, that gridlock might not please markets for long. Jub thats right. It is an important point that what markets would ideally have in terms of a covert response is one that is very proactive and we would be more likely to get that under a democratically wave down under the biden government where any policy response is much more likely to be reactive. For does really matter parts of the risk assets back from so things like cyclical equities, highyield credit, etc. , but the goldilocks dynamic that does support markets for the gridlock dynamic that supports markets is the fact that we are not going to see a roll in things like from tax cuts. But that are likely to stay with a loose policy and also not likely to see a significant rise in u. S. Treasury yields. Those are the factors that do support markets in a gridlock scenario. Anna no rising yields or risks to the downside. Goldman sachs facing the risk of lower yields hated 2021 get fiscal delay. What do you expect to see on the treasuries . Jub we expect there to be not that much to see, to be quite frank, in the treasury market. It looks quite range bound. We have the new wave of covid infections and that will definitely bring the fed at least into play and they will possibly deliver more qe either with increased purchases or by extending the duration. But at the same time, we are likely to see some more modest fiscal responses from the u. S. Administration and we are also awaiting results from phase three trials for a number over the next couple of weeks, so there is this push and call factor and treasuries going on at the moment. Its going to be something quite range bound and its difficult to see big moves in either direction. Anna you are holding various long inflation positions. To wind backme some of those inflationary trade . A bit more interesting than the nominal treasury market at the moment. We know the fed are going to do as much as they can to keep nominal rate low and support the economic recovery in that sense but that does not mean the real yields cannot move significantly especially now that we have an explicit average inflation targeting regime. Get more of an economic recovery, at some point over the next two years to three years, it possible we will test the framework if we see inflation above that target. The fed says we are happy to let this economy run hot and you could see a massive move in breakevens at that point so we positioned long for a number of reasons. Anna stay with us. Jub hurren from aviva investors. We will get further thought in our next conversation. Lets get the bloomberg first word news update with laura wright. Laura Vice President elect Kamala Harris is giving america a number of firsts. She is the first woman, the first lack person, and the first indianamerican in the role. Her husband will be the first man in the first jewish question person to be spouse to a president or Vice President. Firstle i might be the woman in office, i will not be the last. Girlse every little watching tonight sees that this is a country of possibilities and to the children of our country, regardless of your youer, our country has sent a clear message. Anna a chaotic weekend in turkey. Soninlawrdogans unexpectedly resigns one day after the Central Bank Governor was fired. He cited unspecified Health Reasons for stepping aside. He was widely seen as being groomed as a potential successor for erdogan. Thailand, they used Water Cannons to disperse antigovernment protesters in bangkok. Demonstrators wanted to submit positions petitions. Two people and one officer were injured. Protesters demand into the march after the police action. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna. Anna laura wright in london. Back to the markets for you. A quick look at where we are as we finally fully digest president elect biden now and this is what got on the dollar, a continuation of the dollar weakness trend. The dollar against the chinese currency, 655 is where we trade. The s p futures to the upside. 1. 6 to the upside. Nasdaq futures up by more than 2 . The pandemic shows no sign of slowing down as global covid19 cases past this is bloomberg. 15 million. Anna welcome back to the European Market open. Under 40 minutes to go into the start of the equity trading session. Euro stock future for trees pointing to the upside. The dollar continues to downtrend that was very much a chair of last week. The latter part of last week after we got over the earlier turmoil. The pandemic shows no signs of slowing down. Past 50 million. We have europe as a hotspot after being the epicenter earlier this year. Jub hurren from aviva investors is still with us. Interesting to think about how we translate the fight against covid into your strategy. You are constructive on credit. We are in particular are you constructive at point . Jub the most attractive part is highyield. Well in anticularly ongoing economic recovery and while that is likely to look and be over the next couple of months, over a more mediumterm view, we think the right way to be positioned is for an ongoing recovery, but the dominant factor in the credit markets is the Technical Support as it has been for the past six months or so. We had significant qe sliding into the market now with both the fed and the ecb buying corporate directly. Example, there is a negative net supply as the ecb are bound to credit. That does filter through quite meaningfully into the highyield market. Spread keep a lid on any widening as a result of growth downside over the next couple of months. What is the significance of the second wave of lockdowns we are seeing . Tougher measures in many european countries. Can economies week havoc from the first law and through the second or do we risk a doubledip . Jub the clear risk is a doubledip and it is likely we will see significant hit to activity in q4 has a result of these fresh lockdowns. For markets, what matters is not just what is happening but also what is happening on the other side of things with policy support and that does remain in place in europe. The ongoing support via Job Retention schemes, that remains in place through 2021. I thinkets, has the the impact will be incrementally smaller. It is much more of a known entity. Government support is there to support markets. Anna where do you see the dollar heading . We have a headline across the bloomberg which says the turkish lira rises as much as 4. 1 versus the u. S. Dollar. Theres a lot of domestic political turmoil, a lot of people moving decision in the Turkish Administration but any move on that front is pushing against an open door when it comes to dollar weakness which seems to be the divide at the moment. How long does that last for you . Jub the trajectory for the dollar remains intact. We have domestically in the u. S. , very loose Monetary Policy with the fed pushing real yields down to very low levels, but really, the big story for the dollar is the ongoing growth recovery happening outside of the u. S. , particularly in places like china that have had a muted covid crisis and followed up with a significant policy response so the rest of the world is starting to accelerate and that is helping fuel asset flows out of the u. S. Into other markets. But thes idiosyncratic broader picture for dollar weakness means intact, we think. Anna jub hurren, senior Portfolio Manager at aviva investors ending with thoughts on the dollar. Up next on the program, a warm word from europe. The region leaders congratulate joe biden on his election victory. We will get further thoughts on the Transatlantic Relationship, next. This is bloomberg. You can go your own way its time you make the rules. So join the 2 Million People who have switched to xfinity mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with xfinity mobile. We delivered a clear message. And unity,ope decency, science, and yes, truth. [cheers and applause] biden as the next president of the United States of america. Anna that was Vice President elect Kamala Harris speaking in wilmington, delaware, on saturday. She makes history as the first woman, the first black person, and the first indianamerican to serve in that role. Joe bidens election as president is expected to help restore u. S. Relations with europe after years of tensions. Leadersons congratulated the president elect, saying they are ready to work together. Joining us from brussels is maria tadeo. What is the view from europe . We saw a lot of people congratulating president elect biden over the weekend. Maria they did, anna. It does tell you a lot about the new tone that has taken shape. European leaders a great incarnation to congratulate joe biden at 7 00 p. M. European time saturday, just as pennsylvania was called. It was very different to the tone a few weeks ago where President Trump caught coronavirus. The response was very timid at that point and there was no official communications. That does signal a change in tone. There is this idea that the relationship between the United States and the European Union could generally be rebooted under biden. There are many areas in which the two could work together, when you look at trade and iran, which has been a Sticking Point over the last few years. What i would signal too is over the longterm, the europeans have made clear that they believe in something they like to call strategic a tommy. This is something we hear all the time. If anything, the Trump Presidency does have a longlasting impact in which the europeans tell you, we want to have a Good Relationship with the United States, joe biden does give us that opportunity, but in the longer term we need to be more sovereign and have our own policy agenda. You cannot assume the United States will always be there for you. Anna thinking about weationships transatlantic, have heard from president elect biden a number of times. We hear about his irish back parent. Very clear what his thinking is around the good friday agreement. Does biden make a brexit deal more likely . Officially, no one here will say a lot on that, but behind the scenes here some european officials who say this does facilitate a deal. The u. K. Was counting on perhaps President Trumps promise of a very big, quick, amazing trade deal that was promised in the run to the election. The Biden Campaign has had a different tone, saying you do need to respect the irish. What i would say is it is her markable how much the Prime Minister has shifted his tone. Just a few minutes ago, he said, i am willing to walk out of a deal. The European Union is not negotiating in good faith. He repeated he does want to get a good deal and a deal is in favor and does work for the two sides. Whether this is coincidence, it is up to you to decide. Anna maria, thanks very much. Something we will keep a close eye on. Lets explore Transatlantic Relations further. Joins us now. Very good to speak with you. You hear from maria about the warm words. You hear from european leaders welcoming president elect biden. No doubt some of them are breathing a sigh of relief after tensions. On which front will we see things improving transatlantic ally . There is a sigh of relief in europe, but there is indications that trumpism will be here perhaps for the long haul. Over the past four years, it has become a movement that is evident because the president did better than expected. He did come up short, so europeans will expect a traditionalist roll from a Biden Administration, a belief in multilateralism and the u. S. Is dependable. Albeit with restraint because President Biden will have immense challenges. Anna is nato funding and area in which some of that pressure back home might exert itself . It seems we are likely to see president elect biden withdrawing President Trumps threat to remove 12,000 american troops from germany. That seems to be an expectation some people have. But on other fronts, will that remain contentious between the two . Think that was something that will be expected. It was made during the wells conference during the wales conference. I think president elect biden will expect europeans to keep that commitment. But because of the coronavirus, there will be some patientce getting to that goal. At the end of the day, look for President Biden to work with the again,ns on iran certainly to sign up for the paris climate accord, and the active again in the who. The europeans will see the americans back in a unilateral framework, but at the same time, President Biden will expect that the europeans play on the same team when it comes to china and the World Trading order, and also with russia in terms of having a unified stance in terms of sanctions. Anna some of those things you listed, the paris accord, iran, they unite the u. K. As well. If we could get to the brexit conversation because i think that will be very interesting how that develops with president elect biden and President Biden in the future. There was an interesting video from a few years back doing the rounds here in the u. K. , a bbc journalist saying to biden, do you have any words . He said half joking, the bbc . I am irish. But this is an underlying team. This is something his team has talked about. The good friday agreement is important to him. Mentioned, joe biden is a traditionalist when it comes to seeing the u. S. Role in the world, and i think he will look to Great Britain as a special partner, having that special relationship, but not at the expense of the eu because for joe biden as when he was Vice President with barack obama, it was clear that a strong europe is in the interest of the United States. Also talking about the strategic economy is good in the sense that europe should bolster its but in the world as well, work in concert with the United States on all the new challenges that will have to reset the Transatlantic Relationship. Anna what about the outlook for the relationship with russia . Clearly nord stream 2 and the pipeline has been a contentious issue. Biden was critical of nord stream 2 back in 2016 when he was previously in office. What do we expect now . Guest that critical tone will still remain. The interesting thing about u. S. Foreign policy, you may see a return to bipartisanship when it comes to this topic, although there is a tremendous amount of division back home. Republicans, democrats coming together on key u. S. Policy positions, whether that be how do we work with china that is involved in unfair trading practices . And a russia that has been disruptive to our democracy and our partners in europe . I think with nord stream 2, joe biden and his team is going to see this as a geopolitical challenge, whereas the germans are hanging onto the economic ones when it comes to nord stream 2. Anna how quickly do we see a u. S. Pivot on climate, or how thoroughly do we see a u. S. Pivot on climate, given the fact that we dont really know who will be in charge of the senate just yet so we will have to wait for that to settle to see how radical a move the u. S. Could make . Definitely hasn so much experience when it comes to congress. He was in the congress for decades himself. So he will not rely on exec at of orders for certain things he will rely on executive orders for certain things. But i am sure he will try to work with congress to legislate as well. A total transformation, the green new deal, may not come to fruition as originally planned, but there will be things like having agencies reach certain climate goals, also further regulation when it comes to power plants that he will be able to do over executive order. I think he will look to congress to also initiate Climate Friendly policies, especially because the majority of americans now believe in climate change. Anna thanks so much. Sudha davidwilp joining us to discuss Transatlantic Relations. Giving usy much for her time. 20 minutes to go before the start of European Equity trading day. We are finally fully digesting president elect biden. And this is what it looks like for risk assets. To the upside. Nasdaq futures outperform, as we saw last week. The dollar continues the downtrend. The turkish lira making moves to the upside. There is extra motivations here, speculation that higher Interest Rates could come after the resignation and dismissal of the central bank chief. We will have that story for you next. A big risk to the rally. A stimulus bill could be passed before the year is out, but can it get through a split congress with a lameduck president . This is bloomberg. Once we get fiscal stimulus, which i expect to happen by the end of the year, i think mcconnell probably gets a limited Something Limited done in a lameduck. I expect that Small Business will begin to think about rallying sometime in 2021 as things get back to a more normal economic cycle. Solomonsite jeffrey positive hopes for stimulus by the end of the year, the house and senate remain far apart on agreements. Mitch mcconnell said friday that the fall in the jobless rate combined with recent evidence of Overall Economic growth Shows Congress should have a smaller stimulus package. That was quickly rejected by House Speaker nancy pelosi. Joining us is jodi schneider. Explore that a little further. What is likely in terms of stimulus . Is anything likely before biden takes office, during this socalled lameduck period . Jodi it is going to be hard to see that happening, anna. The two sides wanted to do it before the election. Negotiationswas in with steven mnuchin, the treasury secretary, to try to come up with something. Mitch mcconnell did not want to see it before the election. He did not want to see some of his members take tough votes before the election, and they were still far apart in terms of the amount. Several hundred billion dollars far apart. It is hard to see it happening, but there certainly is some hope that it could happen, and one of joe bidens top allies in the senate, a senator from delaware, said he would like to see it, but he would also like to see President Trump start to support it so even if they do not do it before the election, they can do it before the inauguration. They can do it in january when the new Congress Takes effect. Way interesting to see the that the republicans are relying on some of the recent data to justify their stance. Maybe that plays a role as well. How will joe bidens agenda be runoffd by a pair of elections in georgia . We dont know who will have control of the senate, do we . Jodi no, we dont. If both of those went the democrats way, which is unlikely, it would be 5050, which is a tie. At that point, the Vice President gets to break ties, and of course that would be Kamala Harris, a democrat. But it is highly unlikely that both of those seats would go the democrats way. It is probably going to be a 51 4852 to 49 or republicandemocrat split. The markets do not necessarily mind that, but at the same time it will be hard to do things. It will be harder for joe biden to get things through. Mitch mcconnell has already proved himself quite adept at blocking things when he wants to that come over from the house. I think it will have to be a negotiation. However, remember joe biden was in the senate for six terms before he became Vice President under barack obama. He and mitch mcconnell, they know each other. I would not expect it would be as hard for him perhaps to do things that someone else who did havingthe senate works, a republican majority, which is more likely than not, would make it somewhat tougher. A ton of money is likely to be dumped into those races between now and when they take effect, when the seats are up for that runoff in early january. Anna absolutely. A lot being talked about those already. A lot has been made of joe bidens ability to work across the aisle. We will see what that delivers. Thank you International Editor jodi schneider. Lets continue that thinking about where the fiscal conversation goes and where the markets are on this subject. Dani burger is with us. Government the market baseline . Is that where we are starting from this monday . Dani i think what markets are doing, at least looking at what bond yields have done, is one of pause. As jodi was talking about, we dont know what is going to happen in january. We did have a large aboutface in bond yields last week. We went from unprecedented short levels to buying out long dated bonds. But i take issuebut i take issue characterization that this is one of huge repositionings for the end of the reflation trade and a divided government. That is because sources i spoke with last month talked about bond debts that were to stop the pain. There were a lot of shorts being washed out. They were just trying to stem further losses. They were not necessarily repositioning for something new. We see that carrying today, where 10 year yields doing too much. But with the specter of divided government still there, we have a lot of calls saying that is what investors should prepare for. 10year gilts could hit 75 basis points by the end of the year. Anna what about volatility markets . How have volatility traders been pricing in all this . Dani volatility is pricing in the idea that we dont know. While goldman may be sure we are getting a divided government, volatility, specifically the vix curve, is saying that january 5 georgia runoff is a significant market event. That is where the curve has really heightened within the vix. In some ways, january has become the new november when it comes to voluntarily volatility risk premiums. Possiblebeen called a delayed blue wave scenario. That is getting priced in. That is what pilot volat markets are telling us. Anna we will watch out for january. January burger dani burger on get nature of whether we divided governments and the role the senate plays. Lets get a bloomberg first word news updates. Laura the pandemic is showing no signs of slowing with worldwide cases hitting 50 million. Cases in the u. S. Have top 100,000 for a fourth straight day. In melbourne, residents are emerging from a 16 week locked down after 10 days without new cases. A chaotic weekend in turkey. President erdogans soninlaw, the finance minister, unexcited lee resigned a day after the Central Bank Governor was fired. He cited unspecified Health Issues before stepping aside. He was not widely seen as being groomed as a potential process successor for erdogan. Prime minister Boris Johnson and European Commission president used a call to plot a trade deal. A deadline has been set bible sides, but key differences remain over a level Playing Field for businesses and fisheries. President elect joe biden has criticized the controversial bill. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna . Anna laura wright here in london. Onto the market check and this is what we have as we are 10 minutes away from the start of the European Equity trading day. It seems it will go higher. The first full day where we have more conviction around president elect biden. Euro stock futures up. How much of this is due to expectations of a divided government, rightly or wrongly as we discussed earlier . The dollar is weaker. Pay attention to what is going on with the turkish lira. Interesting to see the lira on the rise. There were senior changes at the central bank. We are minutes away from the market open. Next, we will get your stocks to watch. Offrman Company Board signs on a deal. This is bloomberg. Anna welcome back to the European Market open. Six minutes until the start of equity trading. Lets get our stocks to watch. Dani burger is back. What is the latest from infineon . Up three point 5 , coming out with earnings beating on its profit estimates, and for the full year coming in around 10. 5 billion euros for its revenue. The real strength and what is keeper infineon on is the auto sector. Their target, especially automotives, have recovered better than expected since the summer. They have cut their dividend to . 22 a share as a result of the pandemic, but still forwardlooking optimism for a recovery that seems to be lifting these shares, at least in a premarket session. Anna some positive guidance. Dani this is positive guidance, more optimistic about what is to come, though specifically for the u. K. Housing sector. There ismpey saying underlying demand, which means their full year results will be to the upper end of their guidance. For 2021, they say there is really strong evidence that they will be profit for they will beat profit forecasts. Anna what about vw . Dani vw is signing off on their heavy truck unit, tratonnavistar deal. This gives a lot of exposure to the north america market. Really big there. They are giving a loan of about 3. 3 billion euros to fund this transaction. Asnwhile, trade itself is about 44. 50 a share. Overwhelmingly on commentary that has come out about this deal has praised the logic of it. Anna dani burger with your stocks to watch. Another couple names to throw afterep an eye on adidas assets gained strong guidance and sent shares in that sector moving strongly to the upside. Coming up, it is the market open, futures pointing to the upside. The first full day where we factor in a president elect joe biden. Futures point up by 1. 5 . European equity markets expected to move to the upside. How long will this biden bump last . 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. Anna a minute until the start of cash equities trading. Here are your headlines. U. S. Cases top 100,000 again. Boost, Global Equities head for records on optimism around a Biden Administration. European futures point to the upside. A management shakeup in turkey. Erdogans soninlaw quits as economy chief. The lira is on the rise. Good morning. Futures point to the upside. Ifanticipate the biden bump, that is what we saw, continues. Not the blue wave anticipated, at least not yet, but still moved to the upside. A firm featuresk of last week and this weeks early trading. Asia was positive, expecting that in the european trading session. Euro stoxx 50s pointing to the upside. The ftse 100 up. 3 . Markets, just to see what extent and for how long can the biden bump push stocks higher. The markets live team has been asking this question. Coming through increasingly, the ftse 100 up. 9 as we wait for other markets to open. U. S. Futures point to the upside. Futures up more than 1 , nasdaq up by more than 2 . Perhaps a divided government and ae impact that wont have on President Biden possibility to do things in the senate that is pushing the nasdaq up again. That was a feature last week. A few more markets opening in europe. The cac 40 up, the ibex up 1. 5 . To taken is preparing office as the 46th president of the United States in january. Hell start by readying a plan to tackle the coronavirus. Joining us is ed ludlow. Are we expecting Quick Movement on tackling the virus . It is clearly the priority policy. Ed president elect biden is making the task force to be order of his first business, though stating the obvious, with a dog duration january 20, it is difficult to see how much he will get done between now and then. We have some rains, starting with the former Surgeon General under president obama. We know David Kessler is on the shortlist for cochair. He owned that, bidens plan has been around testing tracing and mask wearing. Sources tell us representatives from his team have met with pharmaceutical industry affected to discuss operation warp speed. Operation warp speed is centered around Americas Development plan for a vaccine. Maybe we will hear more about sees asidentelect biden vaccine. We dont know how the Current Administration and its task toce will give data president elect biden. Does that, biden and his team cannot access federal funding to help the transition. We know biden and his team will reach out to members of congress on both sides to talk about a further stimulus bill. Anna lets have a moment to think about Vice President elect Kamala Harris and what impact she could have over the next four years. Firsts have been talked about over the weekend. What impact do we have her to have . Focuseres been a lot a on Kamala Harris in the bay area because she is from the bay area, born in oakland over the bay. A number of firsts, first black Vice President , first woman Vice President , first asianamerican Vice President , first child of an immigrant. A storied litigator, attorney general of california. I know democrats i have spoken to hope she will invigorate a support base. The democrats have long relied on black women voters, but there was hope that would translate to more representation in government and as you and i have discussed over the last few days, the senate will be a crucial thing to watch in the coming months. As it stands, republicans have a slight advantage in the senate. There are two runoff races in georgia that could tie things up. If there is a dead rubber in the senate, the Vice President will have the tiebreaking vote so you could see, the harris play a Critical Role in policy going forward. Anna ed ludlow joining us from california. Europeanmarkets, equity markets getting out of the gate strongly and the msci all country world index reaches record high. Y that is the impact from the , letsull day of trading get a market perspective. Good to speak with you, the first day we can fully priced in half of the biden story. How far can risk assets rally on president elect biden . Dont be surprised if we have over the next few weeks but having said that, as we go into yearend and the beginning of 2021, i think there are a number of positive factors. Stays exceptionally easy across all economies. Secondly, in most economies, we see further fiscal easing and one thing investors will be watching is to what extent we get a further fiscal package from the United States. One risk factor is that might be delayed as we go into january. Dont expect anything immediately in november or december. Another factor is investors are watching very closely what is happening on the coronavirus and when one looks at europe and the states and other economies such as india, and to some extent brazil, the numbers at the moment look bad, but as we go into yearend and the beginning of next year, there is a reasonable probability investors are assuming there will be vaccines, which will be successfully developed and made available, so all of those we take athink means two to three months of you, markets will move higher. Weve obviously had a very good weekend we could end up with a over theket pause coming weeks because for the rest of november and december, there is probably going to be quite fraught Political Tension between the democrats and the republicans and an outgoing trump administration. Anna we will look for that. What does a presidency for joe biden mean for the Energy Sector . I was interested to see oil prices the heading unlike other risk assets for some of last week. Some of that is the dollar effect, but oil prices really coming off last friday and up two point 4 on brent at 40. 41. 2. 4 on brent at 40. 41. What kind of change can they affect on the Energy Industry . Ed the u. S. Policy on the Energy Industry was clear. They wanted to increase regulation and push back the development of the shale industry. And conversely, they wanted to , state or government assets into alternative energy, whether it be solar, wind, or hydro. That was the clear policy. Investors today are assuming that we have clarity on the extent of bidens victory in the Electoral College, but the general assumption amongst investors is the republicans will still have, albeit a small majority in the senate. It is not surprising we have seen Energy Assets supported because the expectation now is regulation on the shale industry will either happen very slowly or from a republican senate. Anna what about asian currencies and asian equity markets . You talk about conviction there. Do you see a general increase in Risk Appetite good for global assets, or because you think life might be more predictable under a Biden Administration . Ed weve taken it bob weve taken a positive view and asianurrencies assets for the past two to three months and weve seen in chinese renminbi, appreciate from around 7. 15 to the u. S. Dollar to close to 6. 60 to the u. S. Dollar. Weve seen a number of other asian currencies such as the korean won and the taiwan dollar move up in tandem with the chinese renminbi. I would also say, focus on the yen because the den has broken through its yen has broken through its previous trading range at 1. 07 and we are about to test 103. It is a currency appreciation across the board. The first factor, investors have a degree of comfort that the coronavirus is being curtailed in a economies and the data is clear in which fatalities are low across the region. The one exception is india. The second factor is asian growth figures, whether it be manufacturing activity, export numbers, or more recently, the improvement in the consumer asia aswe have had for a region and uptrend in economic growth, demand inactivity since have beenthe laggards japan and until recently, india. The numbers are starting to improve again. Associated with that is capital flows from europe and the states and asian markets. Anna bob, thanks very much. Us thoughtsgiving on asian equities, currencies, and the response to u. S. Politics and the fight against covid19. The pandemic shows no signs of slowing down globally as global cases past 15 millions. We discuss the market implications of that next. This is bloomberg. Relief by thef nation that we have come through a difficult period, but most importantly, that the American People have spoken and thats what our democracy is all about. The president has every right to challenge, every right to ensure the votes were counted correctly. Once the decision has been made and once there are too many votes that have been cast and counted for him to catch up, it becomes the responsibility to accept the resultant to move on. The very first thing a President Biden not to do is wrap his arms around this pandemic. This pandemic has exposed a lot of faultlines in our system. Not just the virus. It is what the impact has been. The first order of business for 2021 should be an investment in infrastructure. Not just roads and bridges, but also broadband. Weve learned how important it is for businesses and families to be connected. The president elect comes in facing a horrible covid situation and an economy that is slowing down. He will have a divided government if not a divided country and most likely, and i hope that doesnt happen, he will have a complicated transfer of power. Number of guests speaking to bloomberg tv after joe biden was declared president elect of the United States over the weekend. Giving us their thoughts on the transition of power and the fight against the virus. Here is how markets are reacting. A new alltime high on the msci world index. They all country world index, up. 6 , an intraday high. The European Equity market up 1. 4 this hour. We see dollar weakness so a continuation of the trade of last week with dollar weakness and appetite for risk assets. We see dollar weakness and lira strength and a lot of this had to do with domestic politics in turkey. The moves, not as big as they were. After then higher dismissal of the central bank chief. Attention tog our the first item on the agenda for joe biden as president , the coronavirus pandemic shows no slime signs of slowing down. Worldwide cases have surpassed 50 million but the numbers are thought to be higher because of insufficient testing in many countries. More than 12. 5 million cases is a hotspot after being the first epicenter earlier this year. Bob parker is still with us. We talked about the success of. Sia in tackling the virus i wonder if when you look at the global economy, you think the recover fromy can lockdown one through lockdown two or do we risk a doubledip . Bob i think you have a diversions in the data between america and europe and recent data in the states, we have had a strong isn number, the manufacturing pmi has held up and surprisingly, the Service Sector pmi has held up and that thet have some effect from president ial election. Contrast, in europe, the manufacturing numbers still look strong. Particularly if you look at the in thepmi, german data Current Conditions index. Across the eurozone, manufacturing pmis are still well above 50. In contrast, i would argue this is highly correlated with restrictions we have at the moment. Our Service Sector activity due to the coronavirus. The Service Sectors pmi are weak in france and spain, where the outbreak of the coronavirus has been much more problematic than other countries. In terms of where we go from here, there is a consensus that fourthquarter growth in the eurozone could be negative quarter on quarter. I would actually challenge that contents us consensus. It is too pessimistic given the manufacturing numbers are holding up. The restrictions we are seeing from governments, i think there is a focus to try to maintain good manufacturing data, but accept the fact that sectors like leisure and hospitality are inevitably going to take a hit. If you look at what all of that if you look at what all of that means for policy, there will be pressure on the ecb to take further easing action at its meeting. Sorry, please. Anna what does that mean for the euro . That takes us on to my next question, about where the euro goes because it has been speculated long the single currency but conviction seems to be waning. Weve seen them cutting their bullish bets for the sixth consecutive week. Does that tell us something about the fighting against the virus or is it just a dollar story . Bob it remains a high correlation between a weak dollar and strong Global Equity markets. I dont see that correlation changing. The argument for cutting euro exposure lies really on the yield spread between 10year boones and 10 year treasuries bund and 10 year treasury. That spread is 140 basis points minus 60ear bunds basis points. The case for constraining the euro is based on the yield differential. 2021, i do think we will see a change in the underperformance of European Equity markets. I think isus, which probably right, is in 2021, european corporate Earnings Growth could be well above 40 and growth boosted by expansionary monetary and fiscal policies could outperform states. See the euroobably is not going to depreciate rapidly and the ecb certainly as we gowant that, but into january of 2021 and the euro in a range of 1. 21 and the likelihood of the euro breaking down below 1. 15 is unlikely. Anna bob parker, bob parker quilvest committee member. He will be joining me on Bloomberg Radio at 9 00 u. K. Time. Lets get a business flash laura Societe Generale plans to cut 640 jobs, mostly at the Investment Bank as part of a broader cost savings plan for the lender. It comes after socgen bounced back from its worst performance in a decade, reporting betterthanexpected profit in the third quarter. Chipmaker in finney on is cutting its dividend due to covid19. It is warning of a Significant Impact of the pandemic despite the firm posting better profit than expected. Homebuilder is forecasting better profit in 2021 than expected amid a robust assessment of the housing market. It made Good Progress in the second half of the year. Strong indicators give it confidence above expectation. That is your bloomberg is five business flash. Anna 21 minutes into the trading session, msci world all country index pushed to an intraday high today by the risk on move driven by the biden bump, which we see european stocks moved to the upside. The dollar is weaker overall. An interesting focus on the turkish lira. More details on that in a couple of minutes. Program, an the chaotic weekend in turkey after the nations finance minister unexpectedly resigns a day after the Central Bank Governor was fired. This is bloomberg. Anna welcome back to the European Market open, 20 four minutes into the European Equity session that has continued were friday left off in terms of Risk Appetite. European stocks moved to the upside. Nasdaq futures move higher. The msci all country world index, at a new intraday high. Turkey, president erdogans soninlaw, the finance minister resigned a day after the Central Bank Governor was fired. The lira jumped today on speculation a rate hike could be coming. Were joined from insme tanbul. Walk us through the events. A weekend of twists and turns. On saturday, president erdogan fired Central Bank Governor murat uysal. A series of rate hikes failed to stabilize the lira. It is currently down 30 against the dollar so far this year. His replacement is the former finance minister and he is considered to be market friendly and a technocrat, but of course, investors expect a decisive rate hike. Then, some 36 hours later came the biggest shock of all. Andeys finance minister president erdogans soninlaw announced he was stepping down on instagram, citing Health Reasons. This caused absolute chaos amid speculation of whether his account was hacked. Bloomberg learned the resignation was actually true. The question remains, will president erdogan accept his resignation and if so, who will replace him . Thanks for the update. Important personnel changes, some drama in turkey and impact on the currency. Europe. Re words from the regions leaders congratulate joe biden on his victory. We will get live to brussels and recap what we heard from european leaders, think about global relationships under President Biden, as he will be by january. This is bloomberg. [announcer] imagine having fuller, thicker, more voluminous hair instantly. All it takes is just one session at hairclub. Introducing xtrands. Xtrands adds hundreds or even thousands of hair strands to your existing hair at the root. Theyre personalized to match your own natural hair color and texture, so theyll blend right in for a natural, effortless look. Call in the next five minutes and when you buy 500 strands, you get 500 strands free. Call right now. upbeat music welcome back to the European Market open, 30 minutes into the equity trading session. Broadly, we are higher across equity markets, across risk assets, and commodities as well. The stoxx 600 up. The first full day of pricing in president elect biden. The markets trading around that theme this morning. We see the dollar back to dollar weakness, but the dollar index is fairly flat this morning after the weakness we saw last week. Lets get to some lines coming out of russia. The russian president appointing a new deputy Prime Minister. Newill have a number of deputies this time around. Novakproposing deputy as deputy p. M. This is the russian Prime Minister, not the president , appointing a new deputy p. M. We will keep a night on russian assets. Laura joe biden preparing his Transition Team and a plan to curb the pandemic, despite President Trump refusing to concede the election and threatening legal challenges. Fill outexpected to his task force today. He is also going to discuss a new stimulus package. Vice president elect Kamala Harris is giving america a number of firsts. She is the first woman, the first black person, and the first indianamerican in the role. Her husband will be the first man as the first jewish person to be staffed to president or Vice President. But while ive may be the first woman in this office, i will not be the last. [cheering] because every little girl thising tonight sees that is a country of possibilities. Ourto the children of country, regardless of your gender, our country has sent you a clear message. Laura in thailand, police fired Water Cannons to disperse antigovernment protesters trying to approach the royal palace in bangkok. Demonstrators wanted to submit petitions calling on the king to accept changes to the monarchys power. Two people in one officer were injured. Protesters abandoned the march after police action. Global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Anna . Anna laura wright. In london with your first word news update. European leaders including Emmanuel Macron and Angela Merkel have congratulated joe biden on his victory. Theyre hoping to rebuild relations with the United States, which have been strained under Donald Trumps presidency. Joining us is maria tadeo. What is the view from europe over the weekend . Maria i would say there is a shortterm view and a longterm view. If you look at the shortterm, it is clear that on saturday there was a sense of relief where all the european leaders at the same time came out and congratulated the president elect. There is an idea we will see a return to traditional politics, no more politics by tweets, no more tariffs as negotiating tools. But over the longterm picture, something has changed when it comes to the European Union. The legacy of President Trump this idea that your to become much more selfreliant. There is a line we hear time after time in brussels, strategic a tana me. Europe has got to be a much bigger voice on the global picture. There is relief, there is a real push to rekindle the Transatlantic Relationship, but europe pushing for its own agenda. There are issues where the two worked together very clearly, but other issues they point to, such as china, tax reform when it comes to big america tech. Where it could get problematic, and we have seen trade at the forefront. There are a number of disputes that will need to be resolved, hoping it can get done without tariffs, but the trade tension to some extent continues. Anna yes indeed. The other thing that continues is brexit negotiations or the trade deal postbrexit, set to come into place or not on january 1 of next year. From what we have heard the biden camp about the good friday agreement and the u. K. s internal markets bill, it does raise questions about how biden approaches the brexit strategy. What is the expectation there . Two aren theory, the separate, but context matters. As you pointed out, the biden camp has had a different tone when it comes to brexit. President trump made it clear he was a fan of brexit, that he believed brexit was a good thing for the united kingdom. He repeated that the u. K. Would get a fast trade deal with the United States. With the biden camp, we have heard that the irish have to be respected, the International Law matters, and the good friday agreement has to be respected. This increases the pressure on the Prime Minister to cut a deal in the next you already asked. I would say the next few weeks. I would say it is or michael how much the tone has shifted. The Prime Minister went to saying the European Union is not negotiating in good faith to yesterday and over the weekend saying he wants a good trade deal with the eu and he believes in the best outcome out of the two. Whether this is happening out of coincidence, i guess it remains to be seen. Anna maria tadeo joining us from brussels. Lets continue to explore the International Implications of President Biden. And for European Reaction to the u. S. Election to china, beijings official reaction has so far been muted with no public congratulations from president xi jinping. They have noted bideds declared victory. Joining us is our guest, commenting on chinese matters. Very good to speak to you. What do you think beijing is thinking at this point as they watch the developments over the weekend . Thing actually, the first on xi jinpings mind is which administration or under which u. S. Administration will it be easier for china to unify with taiwan . I know it is an unusual place to start, but that is front and center of his mind. He is someone who sees himself as a man of history, and he wants to be the one who unifies china. The major decision, the most is his timecision at the helm of china, which looks like he is putting the groundwork to ensure he will be there just about until 2035, given his age. How can he unify with taiwan . Be withear it would not military means given the developments in taiwan, so he has to assess the risk of under which administration is it better to act . The biden one for the next 40 years or whoever comes next . Anna this is interesting. If that is his overriding ambition, what do we know about the biden team and staff on this matter so far . Isst what is interesting under a biden presidency, america will be a lot more ideological. It will pay much more attention to human rights, and from that couplingve, this great , which is the allencompassing confrontation between u. S. And set because it is ultimately an ideological confrontation, two different models, viewpoints in the economy and politics. If thisnot clear is administration will have, and that is the Risk Assessment that xi will need to make, whether they will come to taiwans rescue or not. Ambiguouss kept an position on that front, even though the latest arms sales suggest they are committed. The data by themselves is putting another if you like deadline on when all this could be achieved. Anna do you think taiwan is the area we should focus on in terms of the possibility for a flashpoint, perhaps even a military flashpoint, between the u. S. And china . What role does tech play because we have spent a lot of the last four years talking about trade and the other areas where china and the u. S. Are not on the same page, but tech seems to be an enduring point, tech and data . Guest absolutely. Ultimately, it is all about the tech work because whoever becomes the leader in the future will be the global leader. Here, a Biden Victory actually gives america a bigger chance of being able to compete effectively with china under the communist regime. Because china under the commonest regime is not going away anytime soon. Technologies, what matters in some ways, it is simplistic. It is computer power and the data. The u. S. Under trump was very isolationist, and over the longterm cutting itself from the sources of innovation, if youd like. First of all, if the u. S. Works effectively and pointedly on this front in particular with europe, they will have the scale of data to be able to compete more effectively with china. And of course, the Free Exchange of ideas and people, which is so important in innovation. But to a certain extent, less important now, when china has and edge in terms of scale Computing Power and money topping out sector. Anna thank you very much for your time this morning. Severinabannes diana choyleva. Hit 50 million of covid19. More on this next. This is bloomberg. Anna welcome back to the European Market open. 44 minutes into our trading session. European markets moving strongly to the upside, up by 1. 5 , as is the case with nasdaq futures. Dollar index fairly flat, unwinding some of the earlier dollar weakness we saw. The dollar weakness was in the trade at the end of last week. Lets get a Bloomberg Business flash. Laura a stalled ipo could cut value by as much as 140 billion, or about 50 . That is according to new analysis from morningstar and others. They say new regulations could force the fintech giant to seek new licenses. It may mean ant is worth less than it was two years ago when it raised big funds. Warren Buffetts Berkshire hathaway looks to have found its latest megadeal, buying back its own stock. It spent 60 million scooping up the shares in the first nine months of the year. That is triple the previous annual record that it spent on financing deals, more than it spent in a single year on apple stocks. Societe generale plans to cut 640 jobs, mostly at the Investment Bank. Is part of it is part of a broader costsaving player. Socgen bounceback from its worst performance in a decade, performing better than expected in the fourth quarter. That is your Bloomberg Business flash. Anna laura wright in london with your business flash. Lets turn to the first item on the agenda for joe biden as president , the coronavirus pandemic shows no sign of slowing down. Worldwide cases have surpassed 50 million despite successful efforts. But the numbers are thought to be higher because of insufficient testing in many countries. Europe with more than 12. 5 million cases is a hotspot after being the first epicenter of the pandemic earlier this year. Joining us is the director of research at bloomberg intelligence. Good morning. How are european governments reacting to the latest figures . Lockdown two not the same as lockdown one. What kind of reaction i have we seen . Reporter obviously people are fed up with being told to inyathome, so the reaction general is not particularly positive. S think if you look at the case were positivity and cases rapidly rising in a Straight Line almost upwards and they have really quickly turned it around, it does show you that if people comply with this. And the winter is the problem with that, but it is people interacting that gives the virus the opportunity to jump around. I am optimistic these lockdowns could help significantly reduce the case spread. Anna what do we know about what is going on in denmark . This sub story seems to have crept up on us in a scary fashion. The Danish Government does not have the political backing to go ahead with this from a human perspective. What is the significance of this mutation being discovered . Reporter basically, it is the same kind of story that has happened in china at the beginning of the year. Animals when they are kept in high concentration and high density obviously just like humans have a much higher probability or propensity to pass the virus to each other. 17 million is more than the cases in europe, so the opportunity for the virus to do all kinds of stuff like mutate is much higher when it is allowed to rampage through a colony like that. It because asit we pass it on from each other to each other, you increase the rate of mutation and that causes potential headaches for the future of vaccines and therapeutics. Anna thanks so much. Us through theng latest on the danish story. And a check on the markets for you. An allshare index on intraday basis touching a new alltime high today, such is the optimism in markets and relief in the markets of having passed the agenda item that was the u. S. Election. Stocks are up by 1. 5 . The euro fairy flat fairly flat against the dollar. New triggers, perhaps new developments on the virus fight. Nymex crude interesting to watch. A big selloff, now a rebound by about 2 . Coming up, how high can biden euphoria take equities . We will put that question to eddie vanderbilt. This is bloomberg. The markets will probably even though the election result is not there either. They will try to get exposure to the Chinese Markets rapidly and have gamed that exposure through the big cap names. It does feel like a very strong, euphoric rally. I think there is a genuine belief that the equity premium being attached to markets, which were u. S. Centric or u. S. Connected, has actually gone down. Biden will be more nuanced about this. But his room for maneuver is limited because the republicans, democrats, the Business Community are fairly united around the fact that the United States has to do something about china and it has to be tough. There will be something on the deficit, but renewing the trade war is unlikely, which is generally positive for equity markets. Looking more broadly, we think more consolatory relationships with other countries. Generally, we think of it as a net positive for asia. Anna risk assets only became more enamored with projected president elect joe biden in asian trainings. The mliv team is asking, how far can the rally go . Lets discuss with eddie vanderbilt. Good to speak with you. Bump,gh can this biden this biden euphoria push equities . Eddie good morning, anna. We consensus view is that see this tremendous risk off move on the back of the biden rally. We have seen lots of optimism priced in prior to the election. There is still a lot of uncertainty. I think what happens now is people come out of the election and Start Talking what is he going to do to curb the coronavirus . How will he get things moving again . If wed not be surprised are close to the deal. Do Market Participants know enough about how a President Biden will tackle the coronavirus, what that will mean to the economy . A lot of this will be done at the state level, as it has been, but we can expect big change from the top. What do investors need to focus on in terms of his strategy . Eddie right. There is a lot of uncertainty about his strategy. What is definitely sure is it is high on the agenda. In his first speech, even before he knew he was going to be , he hadd the winner been talking about the coronavirus. What we saw from the trump years is whether or not the president has the power to do things, the fact that he can shape the narrative, not just in america, but globally, it gives him power to put pressure on states and qualities he otherwise may not be able to. I think the power of coercion is big, and i think biden is good at wielding it. There is reason for caution. Anna we think tough lockdown measures are being introduced, not as tough in the spring, but not like normal. We read into the u. S. Winter on that front . Do you think a doubledip recession is possible for the u. S. , and if so, is that priced in at this point . Eddie what you just said, the doubledip recession is really shifting higher in peoples consciousness at the moment. This is something people are worried about. It is interesting that what we have seen their so far, the u. S. Has been a hind the curve in terms of resurgence in the coronavirus. Seen caseswe have pickup. Winter, deeper into the it remains to be seen. Shifts toe narrative lockdown and all of those things. Thanks, eddie. Der walt. N the biden bump is in place today. This is the all country and world index, a high for that index. Stocks in europe doing well, up by 1. 5 . The euro is fairly flat. The dollar also fairly flat. We have seen dollar weakness, a continuation of last week, but that seems to be fairly flat as we wait for the next twist in terms. I pledge to be a president who seeks not to divide, but unified. Who does not see red states or blue states, only sees the United States. President elect joe biden urging america to put away divisions and promises swift action against the coronavirus. He will unveil a task force today. Global stocks had for record highs amid optimist outlooks over the new president and divided congress