Been absolutely lights out. The best november since time began, and maybe that is what we have, whatever you view on the election. But with the bombshell from pfizer on a vaccine, the market goes straight up. The president radio salad for four days, and we get a tweet for fourdio silent days, and we get a tweet out this morning. In this moment, we continue to see i am going to call it a second surge of market performance. Jonathan this morning is not about the politics. It is about the science. You can take the narrative and put it in the shredder this morning. We hope at some point in the nottoodistant future, it is conclusive. That just brings the cyclicality back into this market in a huge way and breeds some life back into that rotation. The nasdaq still very much on top. It is very clear the nasdaq is not on top. The nasdaq is struggling versus the likes of the small caps. Tom we will do the data altogether this morning before we get to dr. Fazeli. The vix from 41 to 23, i have been looking for an entry point. Jon ferro, did i miss it . Jonathan you missed it two hours ago when that news from pfizer dropped. You. Thank you, thank [laughter] approaching 41, up almost 10 on the morning. The ive got to ask you money question for the deeper fixed income market. What is the significance of a 1 10 year yield . Lisa you are seeing that in the nasdaq, the fact that it is barely gaining, and at one point was negative on the morning. The rate sensitive stocks are going to potentially outperform if you are looking at the banks, and underperform if youre looking at big tech, which is been used as a proxy for safety. The king at this market, i really think the theme of the morning has to be what jon is talking about, bridging the gap between the near term and the long term. The pandemic will end, but right now it is still getting worse. Now, thet president elect talking about a covid panel as soon as today. We have wonderful guests this morning. We will continue with more data checks. Right now, dr. Fazeli checks in with a house call. He is with bloomberg intelligence, and is truly expert in pharmacology. Identify for us within this news what we need to know, away from the punditry. What is the medical fact we need to know from the good people at pfizer . Here is clear message the fact that they didnt stop at the early interim analysis of 32 or 62 people, and ended up with 94 cases. The bigger message is the fact thanthe vaccine was more 90 effective. Remember please come of the endpoint of this trial was essentially pretty mild disease. So the fact that it was that effective at that stage, one hopes it would be very effective in a more severe cases. Jonathan help us understand the process here. You are an expert on this. How much work is there still left to do . A bit. Ite they have to submit data for up to 20 do thousand individuals to the regulator in the third week of november, which would be next week, i think. The regulator has to go through the data without cutting any corners. So how safe is this, and how good was the efficacy . What kind of people did we have a net 94 cases to make sure it works in diabetics, obese people, older people . That is what they need to figure out. Lisa can you talk about the process of rolling out in the timeframe . Seems tos safe is it be based on the preliminary data, what is the rollout timeline, and you for you . Sam 50 million doses potentially this year, and that will likely go to either very severe at risk population, or, depending on what the data says, to frontline workers. Next year, of course, 1. 3 billion doses, divide that by 600 50 600 mint for million potential vaccinations. U. S. Andrs the european population. But where else does this vaccine go . Who else is going to be to get going to be able to get . How do you equitably distribute it . Jonathan have we got that set up, the logistics, the supply chains . Sam it is a critical question because this is a vaccine that requires 70 degrees celsius. Degreesquite a lot of to be kept. Until you really take the vaccine out to start giving to people, that is one hell of a logistical headache for a lot of countries, perhaps not so much for the u. S. And europe, but certainly for many other countries. Am surveillance is fahrenheit based program. We dont do celsius very well. I know fancy people. Sam multiply by two or three or something. Tom thats why i did so well. Eli,k you so much, sam faz the jewel of pharmacology in this moment that we are in. Weve got lots more coming up here. It is a good time, i think, to turn to the markets. Gene tannuzzo joins us now with columbia threadneedle, deputy head of fixed income. The same question i asked asa abramowitz. What does a 1 10 year yield signal . Sam i think it signals we are finally moving the on the election as the primary concern of the markets and on to what is next. What is next really has to be number one, the economy, and the most important thing to the economy is the evolution of this virus. Certainly todays news is very encouraging, and i think the move from 65 basis points where we were stuck all summer of 290 basis points now shows you where starting to look ahead and starting to but a better period of taxation into the 12 month thatok, but i think that bridge, as lisa referred to it we are nowhere and where we have vaccination is really critical, and the fed is still going to be in play. We are moving towards 1 , but getting much beyond that is going to be a stretch at this stage. Lisa this sort of bridge we are talking about is getting more expensive as treasury yields go up. I am wondering what that threshold is for the fed to step in and suppress borrowing costs should it come to that in order to make it easier for some sort of fiscal support to get through. Gene it is a good question. We have to remember the fed is active. They continue to be active, and likely to become more active in december. Was justs meeting after the election. We still didnt have a final result. They really needed to not steal the stage from the event of the week. I think we will have the ecb becoming more active. I think is likely the fed is following suit. The fed is still looking at an elevated unemployment rate, and then economy that still needs a little but of we get a vaccinated population. Jonathan you mentioned qe from the ecb in the next couple of weeks. Last week from the rba on the bank of england as well. How much you think our ability to tolerate higher rates has diminished because of the last nine months . Gene its a good question. I think we have to realize that Central Banks are willing to be aggressively. Ly, we havent seen that quite yet in the u. S. I think the market will test the fed, and i think we will have a bit of a wrestling match here to the extent the data keeps getting better. Talk about strategic portfolios, weve got some allocation flexibility. Ive got equities at record highs essentially. Ive got yields at the zero bound. How do you get strategic. How do you allocate . Gene i think we are looking at equities now as a nasdaq class that are probably poised to benefit from the Better Outcomes of the vaccine. If you want to diversify that, i think you still leave fixed income in the portfolio. If you want to build a flexible fixed income portfolio, i dont you want to eliminate interest risk altogether, now that yields are a little higher, theres a little more cushion left. , put on the 12 month outlook and try to look at where we are a year from now, it is an economy that is probably getting better. We are starting to see more vaccination and looking at an expansion of that. And you want to have credit risk in your portfolio. You cant go all the way out i t think for the fridge you cant go all the way out, but if you look for example at the higherquality end of high or the consumer, which is doing remarkably well, the mortgagebacked Securities Market isaac is very attractive here. I think you want to diversify on the fixed income side and still hold some duration for insurance purposes. Lisa i am looking at junk bond lows. Headed to record is this a cry to go into emerging markets and other areas to bet against the dollar, or do you double down and suspect we could see further gains and new record lows on highyield bonds . Gene i think we can see even more record lows on highyield bonds, but we need to look at the spread above treasuries. The fed has already compressed the treasury yields to an extremely low level. They are low, but that is the world we are at the moment. Quality names, many of those, if we continue to see economic momentum, could be Investment Grade once again. There is price appreciation potential if we find those possibilities. Jonathan great to catch up, as always. The news this morning, good morning to you all, is a pandemic that has killed more than 1. 2 Million People. The good news this morning from pfizer. We are not there yet, but the path towards an effective vaccine gets a little bit clearer. I would expect this market to respond with a real cyclical buyer for the protection. The s p 500 up, a cash open at about an hour and 18 minutes. Yields higher to 0. 90 . The crude up about 10 to almost 41 a barrel on wti. Tom i think this is telling, folks. I believe that 8 14 wall street , this is the second leg up. We exploded on the pfizer news, had the obligatory pullback, and we come up a little bit here. Futures up 144. Right now in washington on the president elects day and the president s day, Kevin Cirilli joins us, our chief washington correspondent. We focused on President Trump. Lets get over to the president elect. What was the report card on the weekend festivities, the event that we all watched coasttocoast . Kevin there was one line that didnt get enough attention, based on the conversations ive been having over the weekend. That is that president elect joe biden said that he had a mandate to cooperate. Fromis what he is gleaning the results of the congressional races in the president ial race as well. A mandate to cooperate is without question going to be the task of Senate Majority leader Mitch Mcconnell with the president elect once he is sworn into office. We should note there is to georgia runoff race is set for theres t georgia race is set for january 5, but even if they were to both go democrat, there are moderate democrats, so a clear wall in the sense of just how far the president elect can go with the progressive agenda. Tom kevin, i have been reading all of the think pieces like you have this weekend. Wonderful work on the hispanic vote on the rio grande, florida and all of the rest of it. How do the liberals come out of this . They have no voice in a Biden Administration, dont they . Kevin i wouldnt go that far, simply because i think without world had to biden try to form a coalition, and part of that included the Bernie Sanders wing of the party. If there is one thing that was proven in the last election cycle, it is just the activation of the Grassroots Efforts on that are able to really penetrate and impact the dynamics of politics. Jonathan how do the democrats keep the left wing out of that race in georgia in january . Toin i think what is going be interesting, first and foremost, President Trump is still planning to pursue legal action. As i mentioned several weeks ago and has been reported earlier this morning, he might even be having rallies in states like georgia. Without question, he is deciding to continue to engage in politics over the next couple of weeks, despite the uneasiness behind the scenes, and i would expect that to grow louder over the next couple of weeks. I was struck by gary cohns hours,ver the past 24 and which he congratulated president elect biden. Gary tweeted out a congratulations to president elect biden. As it relates to the progressive circles, they have an opportunity to louver a Progressive Senate for current minority leader chuck schumer. You january 5 over time, if want to go at that, is going to be incredibly expensive, but also incredibly watchable. Aoc tweeted that out as well, that the progressives have the technology, as well as the fundraising capability to impact politics. Lisa we have a couple of months before a new president takes the helm. In addition to transition issues, there is a question about some sort of fiscal support package getting past to bridge this gap. What is the chance of something happening in the lameduck session in d. C. . Kevin the rise in covid cases are definitely going to serve as a background for the increase in in unofficial talks. The president himself quitting out a statement earlier this morning with regards to the positive developments of the market, as well as the vaccine. That would indicate he is still watching the markets. Thirdly, this is where i think it gets really interesting. President elect biden had his Coronavirus Task force, a team of officials from harvard to other medical they, i am told, are really going to be who the president elects listening to, and just a more targeted approach after the inauguration. Om the New York Times reporting that rick bright, who was so controversial for the. Resident, i believe fired the Biden Administration will pick up dr. Bright as one of their covid experts. Is that what we are going to see, a huge coalescence towards the president elects unity . Kevin yes, that is one thing that has jumped out. I would also note that dr. Anthony fauci will also continue to play a prominent about facing role in the Biden Administration. Early tot is a bit too tell. Everyone is waiting to see what President Trump will do in terms of whether he not whether or not he will fire certain individuals or whatnot, but the path forward is still moving. President elect is showing what type of tone his Coronavirus Task force will approach with. He is receiving regular briefings on the economy, as well as on the coronavirus. You sovin cirilli, thank much. A headline from the president elect, and i just look, and i believe it didnt come out on twitter. Jonathan jonathan a headline coming from the u. S. Well that i want to bring to our audience just quickly. Togiving the green light increase tariffs on the United States. This is an ongoing battle over a two boeing. ,t has gone back and forth something that goes back a long time. My question this morning is about how the relationship between the United States and the Biden White House concerns with europe. From the page of open but the times, of the yesterday was mothers day call, mr. President. Will you take it . That was the difference between bidens relationship with the european union. Tom we welcome all of you on Bloomberg Radio and television with an explosive market, a 4 move on s p 500. A 5 move. 29,007 hundred 39 on dow futures. The vix, 23. 9 months. Right now, some of the policy driving forward. Jaret seiberg joins us now policy analysis. Who won the election . Jaret this is a clear victory for the moderate side of the democratic party. You had a coalition really get behind joe biden. I think you had losses in the house that, over time, are going to be attributed to some of the associatedabeling radicale members of the party, and the pressure is still through the more moderate side. Lisa youre going to have a lot of monday morning quarterbacking for a very long time with respect to this race. Right now we are moving forward and looking toward a pandemic that is worsening. What will the transition between the Trump Administration and a Biden Administration look like . Will it be different than what we have seen in the past . Jaret 100 it is going to be different because we have a gsa, which is an obscure government nobodythat normally hears of, that officially gets to start the transition. Appointee. Y a trump by this morning, they still have not signaled that the transition is ready to start, and it may well be until middecember until that transition starts. At a time when we are perhaps in the greatest part of the covid19 crisis, with cases each day, this transition may be four to five weeks behind where it should be. Jonathan talk to me about the transition in a little bit more detail. Michael lewis of fits risk wrote beautifully in a short piece about how important it is. Can you communicate to our audience who might be familiar with how much work goes into that transition exactly what happens over the next three months . Jaret when you think about the transition from four years ago, theyre almost was no transition. It wasnt that obamas people were unwilling to engage. It is that trump didnt embrace the transition, and they were very late in getting people in. What you saw was it took almost a full year before team trump really got control of the regulatory agency. The fact that a former goldman , ironically well respected by the Progressive Side of the democratic party, he looks like he is going to lead the financial side of the transition. I think that should be widely embraced. He could have been treasury secretary if Hillary Clinton had won. He is somebody who understands the market. It is better to have people who understand our business leading the charge then people who dont. Tom did you see the bradley the obligatory republican cabinet appointee, do see something along that line . Jaret i wish i could be that optimistic to say that joe biden is going to go back to the way it was where your initial cabinet appointees always included one person from the other party. We are not that hopeful. I think there is still so much animosity that it would be difficult. There only are a few names that could even come to mind, like a mitt romney, and i am not sure he really would want to come inside at administration. In addition, theres a lot of democrats looking to come back to washington. I think they are going to have a hard time giving up a prominent enough job to a republican jonathan great to catch up. Appreciate your time. For those of you caps on been exclusively focused those of you who havent been exclusively focused on the election in the United States, covid cases have really been picking up. We sell restrictions in New Hampshire and utah overnight, and hinting that we might get some new rules and restrictions around bars and restaurants in the state of new jersey. Those could be announced later today. Tom try to deliver a little bit about this this morning, and to me, the restraint is hospitalization dynamics. Maybe they are not critical levels yet, but it seems to the are really up to a massive concern, getting about halfway to the duration. Jonathan and it speaks to the shortterm. Theres a lot of work still to do, not just on the backseat, but also on controlling the cyrus. This virus. Longterm, hope on the horizon that we are getting something out of pfizer. Equities on the bid this morning. Alongside tom keene and lisa abramowicz, im jonathan ferro. For our audience worldwide, with a beautiful new york city this morning, 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. Jonathan from new york and london for our audience worldwide, good morning. Alongside tom keene and lisa abramowicz, im jonathan ferro. One hour out from the opening getting a shotet of cyclical enthusiasm from pfizer. The market up on the s p 500 more than 4 . The direction is the same, is it about the shift in emphasis away from big tech the small caps. The nasdaq up just. 6 . Last week a huge bid in treasuries. We widen that a bit. Treasuries lower, yields higher, up 10 basis points on the 10 year. Nine basis points higher 2. 91 . Just capturing that improvement in Risk Appetite and foreignexchange. What you want to see on top . The aussie dollar. What you want to see on the bottom . The japanese yen. Does the proxy for global Risk Appetite and global growth. Dollarrning the aussie is nicely bid. Tom breaking out to new highs. Nevertheless up 4. 4 on the s p 500. The dow 29 773. The vix has not come in. We will watch that closely. 23. 7. Daniel alpert is someone we can talk to about the American Labor economy but we can also talk about his classic book the age of oversupply. Nations,ly, it is two we learned that on election day and election week, but it is one age of oversupply. Adaptes a president elect to your age of oversupply . Daniel the first thing is he has to recognize he was elected by a shift in what was a Bipolar Group of voters that elected trump the first time. Have futureters who prospects still dim. Job quality has come down during the Trump Administration, and im talking about prior to covid come in terms of the number of lowwage, low our jobs compared to higher income jobs. Families stillhe are looking for stable financial futures, for the ability to save for retirement, to do all of the things needed. Those voters, more of them voted for joe biden then donald trump this time, but they are both republicans and democrats. Tom breaking news along with pfizer, add another vaccine. Novavax and their Covid Vaccine candidate gets fda facts track fda fasttrack designation. This seems to be a different headline than what we see from pfizer. We see an immediate lift in the markets. Dow, i can now go on 30,000 watch on the dow. Daniel alpert, you and i have lived junk conditions. Is this a junk condition . Daniel heres an interesting thing. Dow 30,000, well before the crisis, right now we are seeing indices get to a level of butiples that are historic also only forecast on the restoration of the status quo. The question is what is going to happen after we recognize the fact that this crisis has pushed us off track. Markwill be a big question for the equity markets going forward. Lisa there is also a question of how do cfos and ceos plan their strategy around a world that is in flux. A number of headlines this morning. We cannot overemphasize. We came in thinking it was the election and out as the vaccine, and possibly early next year will be talking about fiscal support and may be higher taxes for corporations. What is the main narrative you would tell Corporate Executives to Pay Attention to in terms of how to plan their strategy. Aggregate demand, aggregate demand. The jobs picture was interesting. We picked up 900,000 private sector jobs, but 600,000 of those were lowwage, low our jobs. Quality, we lost 130,000 state and local jobs. The question is how does that translate into the demand . Keep in mind a lot of those workers returning to their lowwage jobs are actually making less than they were on the federal unemployment benefit supplements. That actually translates you have to look forward and calculate what this means in terms of restoration of aggregate demand. That is what drives business. Against that you have to look at the 750,000 or 800,000 weekly unemployment claims. There must be massive rotation going on of employees in and out of work in this economy. We will not know for several weeks or months, but at the end of the day the only thing that is important is how much demand there is, how much consumption there is. Csuite when a individual, cfo, ceo, talks about the labor market, the outlook for 2021, demand is the crucial issue. As they anticipate demand, do you think the vaccine news of this morning makes them more constructive about 2021 and maybe pushes them to hold off on additional firing and encourage the them to do hiring . Daniel i think is fabulous news. The faster the vaccine can be brought to bear, the better off everyone is in terms of making forward projections. There are certain sectors in this economy that will take a long time to come back. Hospitality particularly. Obviously the Restaurant Industry and everybody else associated with the hospitality sector. People are still going to be cautious. Companies and corporations will be cautious about putting people back on the road for travel, vacation travel will still be impacted, and i know for huge rally in airlines and cruise stocks. That is natural. Day, this willhe play out over a long time, it will take a while to get people vaccinated. This news, and hopefully more good news, will be a huge onetus to hold off additional expense control. Lookel jonathan you at the price action this morning, and it looks like we might have a vaccine on the horizon. Encouraging news. In the here and now, covid case is still north of 100,000 daily in the United States. Restrictions from massachusetts and utah and maybe new jersey later today. How much damage do you think we could do between now and then, that then being the optimistic point we get the vaccine . Daniel i think you mapped it very well. What we need right now is sufficient relief from congress to ensure we do not get a second deep dip. There is everything you are right. There is everything out there that points to a potential for another recessionary quarter. With some sanity reintroduced to washington after this election come and obviously the market rally not just on the vaccine but on the stability perceived to come from the Biden Administration, a lot of people say markets are rallying undivided government, i do not think that. Markets are rallying on stable government. From folks iny the Republican Party was naturally associated with an election season will subside and people will do the right thing in terms of relief. I am hoping what we need to do, which is exactly what you are going after, is we have a period of uncertainty and probably weakness because of the spike in covid. Can we plug that cap . The prospects are better than they were before. Daniel lisa we have a lot more certainty with respect to what the Administration May look like the beginning of next year as well as when we may have a vaccine. Given all of that and your background with restructuring, have we avoided the bankruptcy cycle many people had expected . Daniel i doubt that. Only in comparison with the great recession. Obviously there we had a lot of bailouts, few bankruptcies relatively speaking. Look at the large sector. Big companies that have been forced to file. I am seeing more of that going forward. There is going to be significant impetus for restructuring. Laws,ing about bankruptcy you can restructure businesses and keep them alive and have them there when this is behind us. That is the bottom line. We must make sure employers are still able to employ people at the end of this crisis, or at least when the vaccine controls the virus. Bankruptcy works very well for Large Businesses that are capable of restructuring. My concern is what are we doing with the small and mediumsized businesses that cannot go into chapter 11. I think that will require additional attention, as i wrote a column a couple of weeks ago. Ins, not bailouts, are probably the answer. Jonathan great to catch up with you. Daniel alpert of westwood capital. For your audience worldwide, not the program were expected to do. We thought there would be a massive focus on washington, d. C. And the ingredients for a contested election come and the new news from pfizer came out, encouraging on an effective vaccine that could be widely distributed. The reaction of the market, the direction is the same, the emphasis has shifted. That is the story. We get the equity market, we see it. The direction is the same from the emphasis is different. It is about the small caps, the russell, not about big tech. 40 on large barrels on wti. Yields are up nine basis points on the 10 year. We approach 92 basis points on the 10 year yield. A huge 180 from five days ago. Tom a little bit of a move in the last 20 minutes. We have put on a whole new light to the market. We are on a dow 30,000 watch. We are well within reach. This is off the second virus headline. I would suggest off a lot of people that have not enjoyed this rally. Thethan and get out of index level stuff and the sector level stuff. The airlines, the moves we have seen this morning off the back of the headline from pfizer. Lisa i was looking at american airlines. Well above 20 . Moving away from the airlines. Entertainment, people expecting to see the new james bond movie, shares of 80 . There is a question, it will everyone go rushing back . I will start looking to see where i can fly soonest. Jonathan it depends when the vaccine is approved and widely distributed, which could be a long time, and for the people who are not as honorable, it could be 12 months. Lisa who is Debbie Downer now . Jonathan what the market is pricing in is not the reality for people over the next couple of months. Tom it is a celebration. Jp morgan up 10 . Jonathan off the back of the bond market move. Much more still to come from london and new york. A better morning on the vaccine front and a better morning in this market. This is bloomberg. With the first word news, i am ritika gupta. A promising report on the Coronavirus Vaccine being dealt by pfizer. More than 90 ed of infections in a study of 10,000 volunteers. If further Research Shows it is safe, the company could get an emergency use authorization from regulators. Legalent trump plans more moves on the election stage. Bloomberg has learned recognition is growing among his inner circle that efforts to overturn joe bidens victory will be futile. The advisors have urged president to focus legal challenges. The president has falsely claimed victory and alleged widespread vote fraud. He has not offered any evidence. In the u. K. , the chancellor of the exchequer is said to announce the countrys first green guilt. The bonds would act like mortgages for businesses who want to pursue environmentally friendly projects. The latest round in the videogame consul fight between sony and microsoft kicks off this week. Microsoft is launching its new xbox while sony comes out with the latest playstation. Microsoft is making a serious attempt to attract fans in japan. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. I am ritika gupta. This is bloomberg. This is exactly the man to do it, exactly the administration for this moment in time, but it is not a light switch. Whether it is our domestic challenges, Foreign Policy challenges, we are all in this together. It took us a while to get here and will take a while to get out of this. Whether that is the pandemic, economic recovery, you name it. Tom the discussion of this election with the gentleman from new jersey. Nice headlines from him. He is battling the pandemic. Right now we move forward with a discussion of the election and we do it with someone deeply experienced in the process. David camp is at pwc tax policy services, but you know him for his Wonderful Service to the nation. The leader of our house ways and Means Committee and he does this from the very republican fourth Congressional District of michigan to the west of detroit. Dave camp, your thoughts as a former board of canvassers of how you run an election. What would you say to your president this morning about, we got it right in michigan, wisconsin, we got it right in arizona, georgia, and pennsylvania. ,hat should the president do experienced member of a board of canvassers . It is hard to know whether these allegations of voter fraud are accurate or not. I think the president has the right to have this issue looked at, as george w. Bush said when he congratulated joe biden, he said these issues have the right to be looked at. We had this in 2000 where it took a month before we resolved all of the issues. I cannot comment on whether they are valid, but i think he has a right to have them looked at. Filed. Had some lawsuits that is part of our process, to ensure those people who supported donald trump also know their vote counted and it is something we have resolved in the past. Tom many people talk, if you do. Youve actually done tax policy. Policy. Ou affect tax a democratic president , the senator from kentucky, the speaker of the house from san francisco. That is a mess, isnt it . Dave is. One of the things i would say come in a closely divided congress legislating on tax policy would be difficult. We do have an opportunity, whether with covid relief for funding the government for the remainder of the year, those could be the seeds of bipartisanship in the next session. 27re will be portions of the tax law that will be expiring next year or changing, whether it is full expensing or research development. There may be opportunities. Often what we have seen is president s do not often want to do the hard work of legislating and often fall back on the regulatory process. We know with treasury there were a lot of reservations regulations. Or executive orders. Sometimes in a closely divided congress that can happen. Joe biden has a lot of relationships from his long service in washington, d. C. When you are trying to craft legislation in a bipartisan way and have compromise, relationships do matter. That could be a strength going forward. Lisa a lot of this bipartisanship will be scrutinized in the lameduck session as people look for fiscal support. Based on your tenure in congress as well as your experience talking with current legislators , how likely do you think it is therell be some support passed in the next three months . Dave there is an opportunity in this lameduck, particularly with senator mcconnell signaling he is working on a covid relief bill and interested in a full spending bill for the remainder of the year. The possibility is there. It remains to be seen. They are just getting back to washington this week and whether they will have an opportunity to come together. There is a chance. I wouldve said before this result there would probably be a short length of session, but this lameduck could get interesting. Lisa the other aspect of this is when we spend, we run up the deficit and we will eventually have to tax, that is the theory. A lot of people are expecting higher taxes, particular for corporations next year, but possibly for many more. What is the outlook on that from your perspective given your experience with the house ways and Means Committee . In a i think tax increases closely divided congress will be difficult. We are waiting for the results in january of the two georgia seats. It looks like that could be slightly republican or slightly democrat, even 50 50. I think it makes it difficult. Ideas say once these tax are put in the Public Domain as joe biden did in the campaign, they remain on the table. Whether it is in the next congress or the congress after that, it will be important for businesses and employers to track where these matters are going on a policy basis so they can be prepared and project what policy might be. Tom dave camp, we have to leave it there, but we look forward to speaking to you again. Service from the fourth Congressional District of michigan and the house ways and means. An extraordinary market. I did not believe i was going to say this this morning. We are on the dow 30,000 watch. I find that remarkable. Lisa i think what jon was talking about, the rotation away from the haven stocks, the stayathome havens towards the airlines, towards amc entertainment, towards hospitality shares, the idea that a big weight has been lifted off the entire world that is been watching the pandemic stifle travel, stifle getting together, envisioning a world where we could do those things again. Will goe again, and i to yields, which is not moved. We have the equity markets moving, the dow up 6 , spx 4. 5 . Bonds, a nine basis point move in the benchmark 10 year yield. Still at. 9 . Not making the launch to 1 . Lisa but really, the junk condition move is important. The idea that 1 to treasury yields are insight for the 10 year. Last week, everyone was talking about the fed stepping in and providing the bulk of support. A massive shift in mentality. The question will be how much does bringing forward the vaccine news trigger longerterm growth expectations. We are not seeing that so far. If that is the case, how much do these yields get cap . , 40. 41. Oil market that is the west texas intermediate. Brent crude almost to 43. , 42. 67. De let me go through foreignexchange. We have ignored it because it has not moved like the equities. I am trying to talk as long as i can so we get a 30,000 print. The dollar index is stronger. It was weaker in the morning. The euro at 1. 19. That gets my attention. Yen from 103 to 104. Stronger euro. , 1. 3185. I cannot afford london. The renminbi is backed up. 6. 61 . It is an eventful day to say the least. Stay with us on Bloomberg Radio and bloomberg television. Good morning. 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. Jonathan from new york and london for our audience worldwide, good morning, good morning. Beautiful morning in new york city. 30 minutes away from the opening bell with equity futures flying. A vaccine breakthrough providing another shot in the arm to risk assets. Todays news is very encouraging. I would be really excited about a vaccine coming online right now. You can see this playing out in markets. A surge of derisking hedges. An enormous drop in the vix. Certainly a bright day for the globe. Power toccine has the drive risk assets higher, credit spreads higher come equity markets higher. If we get more data like pfizer and good results out of moderna, the markets will shift. Jonathan Sarah Ponczek joins us for more. We thought we would talk about one thing, we are talkin