Participating in the trial. We want to break it down more. What do we know . What are the questions . Reporter pfizer is telling us they have a vaccine that appears to be more than 90 effective. They studied this immunization in 43,000 people, and within about a week after the second dose, they found that more than 90 of people who got the vaccine were protected against the actual coronavirus. Know that it didnt take very long. We dont know the actual numbers of how we people were infected, but if we are looking at more than a 90 effectiveness rate, which was much higher than anyone expected, we are getting suggestions that this vaccine is quickly protective for many people. We still dont have news on how long it is going to last. We dont know whether or not there will be any safety signals. After that, they might be filing for emergency use authorization. Jonathan what kind of vaccine is this alix what kind of vaccine is this . Vaccine. It is an mrna theres nothing like this that exists in the world. This is some the gut pfizer went out and brought to Clinical Trials very quickly. The same approach is being used by moderna. It is actually using the genetics, getting the body to produce tiny particles of the virus that the immune system can then attack, so it is a completely novel approach. It is hopeful this can be used ,or a wide variety of pathogens even some we dont know about. , but still very early when we only talk about 94 cases were reported, most of them in the group that got placebos and did not get the vaccine. Hopefully that will hold up as we start learning more. None of the patients actually developed serious disease, so we are going to have to wait for that as well. Alix thank you very much. For more on the vaccine development, dr. William ffner joins us now. What is your take . I think it is extraordinary. None of us expected anything like that. I would have been delighted with 70 effectiveness. Here we have 90 . It is still early days. We dont exactly know how effective it is going to be in older persons. We dont know, as michelle said, with her at predict against severe disease. If it prevents infection, we expected also prevent serious disease. We have to watch it for a longer time regarding its safety. Once it starts to be used in the general population, the cdc actually has mechanisms to keep assessing its effectiveness and safety as we start to use it in the general population. That should be very reassuring to the general public and the medical professions. Thatguardedly optimistic maybe by december, we could start vaccinating the first people who are in the priority group, and they will be health care workers. Alix obviously that would be huge, and very welcome. Ablee companies would be to produce enough vaccines to vaccinate 10 of the world population, that is by the end of 2021. Dr. Schaffner certainly no one company can do it all immediately. That is why we hope there are going to be a number of different vaccines not only for our own population, but for the world population. Another little caution, this vaccine requires two doses, and vaccine. Is an ouch it hurts going in, and the second hurts more than the forced more than the first by and large. And you can feel kind of crummy for a day or so. So we will really have to let everybody know what to expect and persuade people to come in for that second dose. Alix that is interesting. Do you really feel like that is going to be an issue getting people to come in . Dr. Schaffner oh yes, because at the moment, the surveys would indicate about half of the population is going to stand back and watch the first group get vaccinated to be sure that everything is going alright. We are going to have to really provide a lot of reassurance and information to get people to, when it is appropriate for them, get in line and roll up their sleeves. Was a demand, if all of that was there, what are some logistical issues that Companies Like pfizer need to be addressing right now . Dr. Schaffner pfizer is in large control of its only just ask. They are doing it independently, and they have special issues in shipping and handling because this vaccine is fragile. It has to be kept very cold, and people have to be trained in how to give it so we dont waste vaccines because you go into a vial, you have to use those doses quickly. Otherwise the vaccine degrades. So we will have to organize how to give this vaccine. State Health Departments have been working on all of those plans for months. They are largely in place. Education is ongoing where this vaccine will be given. Remember, the first group are healthcare workers, so it will be given in the context of medical institutions who know how to handle these kind of fragile products. Alix before we go, this is obviously developed by pfizer, but there are other ones as well. Looking at regulators today. Where are the others . How are they stacking up . Dr. Schaffner they are all in line, one after the other, so we can anticipate over the next six months or so one vaccine after , ander coming to the fore this one gives us real optimism that the others likely will work also. We will see. Perhaps one vaccine works better in a subpopulation that another vaccine. We will have to see all of that down the road. Alix really appreciate that. Thank you very much. Lets get back to the market action. Having a definite effect in the markets is your stayathome trade. Tech is underperforming. You have the recovery trade like airlines, hotels, etc. All doing really well. Record highs for the s p. That is filtering through the market. , firstpher wolff republic private Wealth Management, joins us now. Are you buying this trade today . Hristopher this is good this bendsgerterm, the mark towards Economic Growth in this country to reopening. To a faster reopening. We originally thought the middle or end of next year, but we are going to have to move that timeline up. I think longterm investors are buying. You are allocating in this market. I think if you are already fully invested, you can rebalance and look for ways that you can participate because most folks are coming from the very concentrated buy tech and nothing of position over the last year. Alix so when you have this reflationary, optimistic driven day . Christopher it is not that we sell stocks and go to cash. It could mean maybe look outside the u. S. This is a global problem. You could get stronger improvement potentially in places that have been closed down longer. That would be mostly in europe, but also in japan. Be an markets may interesting rebalancing point. Everybody is long equity beta, the stock market, but it could be bigger than just the stock market. It could be the whole economy. For that, weve got to look at more alternatives for clients that are qualified. Alix i want to get to the s p, off the highs of the session. A huge gap up. What are you looking for to make sure that this is really a rally that has followthrough . Christopher one, for the price action, one that is more fundamental. Theres a bit of a distraction relative to the election over the weekend, but one of the things that came out over the election data was the more divided congress leaves in place a very high probability that we dont see any changes in tax rules for corporations in 2021 and beyond. That is important for the profit story going into the end of this year and next year. That is a pretty critical who opponent of why would you stay invested, why would you be reallocating here. I think number two is you want to be focused on the longerterm message particularly around where opportunities are. I think a lot of folks looking at rotation want to be just a little bit more careful before going whole hog here. On the price signal, a lot of things are still dominated by machines, so there is likely to be some momentum out of this, and we want to be careful around using that to rebalance for folios to rebalance portfolios. Alix we are seeing stocks come off the highs, but we have not seen that in yields here. We are up 98 basis points on the tenure. This is a gigantic move. What is your take . Christopher the fed has been super accommodative, but bond yields rising here i think are a sign of two things. One is an economy that might recover faster on its own with a Covid Vaccine could see more inflationary pressures. Number two, with that cause the fed to react . They have said they will take a low and slow approach come about things with vaccines might happen on a much faster timeline. We will watch the bond yields carefully. 1 is a significant technical level, but i think you really have to go past nominal real yields. You have to get positive real yields, meaning yields after inflation. That is where the key is really going to be. One is more of a technical level. Fe a christopher j wol wolf public vijay Christopher J Wolfe of First Republic, thank you. You will be sticking with me. Coming up, Valdis Dombrovskis. This is bloomberg. Alix live from new york, im alix steel, with guy johnson in london. He should be here momentarily. This is bloomberg markets. European trade commissioner Valdis Dombrovskis is given the goahead for tariffs on american to issuesetaliation over boeing. He joins us now, along with maria tadeo in brussels. Thank you for joining us. I appreciate it. Due to the president elections in the u. S. , was there any conversation about delaying these tariffs . Valdis good afternoon. First of all, the decision isated to the boeing case not linked with the u. S. Elections. It is linked with the fact that given us the 4 billion linked with our aocedures that concluded in Foreign AffairsCouncil Ministerial meeting. The point is that the u. S. Is already imposing tariffs on the eu concerning the airbus case. There has been some delay in the in the debbie tio case in the wto case that came one year later. Our preference will be negotiated settlement, so we are ready to drop our tariffs the moment the u. S. Is ready to drop future, and to discuss discipline schemes. That ahe theory is President Biden is going to be much more multilateral and take a much more work with your approach. Some potential issei even a softer stance in some areas. So why not just wait . . It seems like germany and some officials there were of the mindset to kind of wait and see what it was going to be like once he took Office Rather than act now. ,aldis it must be emphasized and it has been emphasized also by the german presidency, that actually there is broad support of the eu Member States in moving ahead with tariffs. In any case, it will take several months, into early next year, when the Biden Administration will come into office. As i said, we are open to negotiating a solution and to drop our tariffs as soon the cann drop theres drop theirs. Maria so this is the question, what was the last time you had any communication with the Trump Administration . Actually, we are in very intense talks with the administration. I am in contact with trade representative lighthizer, and we will continue to look at this in the coming months, and to work on other things to future discipline schemes in the areas of innovation in the area of aviation. Maria right. But just to make it very clear, you are still on the phone but the trumpet ministration with the Trump Administration . Exactly because he is still in office for several more months. Maria very quickly, trump did say he was ready to strike back harder if the tariffs went into effect. Do you fear perhaps that he is going to go out with a bang, with more tariffs on europe . Valdis first of all, from the eu side, we are by no means escalating. Doing the same what the u. S. Did already a year ago. And also, in terms of rates and composition of our tariffs, we are basically mirroring what the u. S. Is doing, so also there avoiding any escalation. Guy commissioner, did you therefore build the tariff lif t that youre going to impose quotas upon for the administration . Do you think that list would be different if there was another administration in the white house . Valdis currently, that list is agreed and approved by eu Member States, and this is a list which is going to be published later tomorrow. Into once again, i can reiterate that we are ready to drop our tariffs the moment the u. S. Is ready to theirs. Res to drop guy is aided pull up is it a political list . Elicit list designed to a political with months . Valdis it was designed to the extent possible during the stance the u. S. Has taken, most in terms of the tariff rates. So 50 tariffs for airbus, 25 tariffs for other goods, agricultural goods, processed goods, industrial goods, and the composition is mirroring the composition of u. S. Tariffs as they are imposed on us. That is the main point. In a sense, it brings us a more level Playing Field in these discussions, but we continue to be committed and willing to find a negotiating solution and actually put this behind us. Alix can you walk me through what the process is . We get new government in the United States. They come to you and say lets talk about it. Is the goal you both go back to zero right away . How do you see this happening when you are renegotiating again, potentially with a new administration . Valdis of course, that is ideal solution, that both go to zero right away. This has been a solution which we have been offering to the u. S. Side on numerous occasions. Unfortunately, u. S. Currently keep their tariffs in place. But we are not making it a negotiate in this area, and we are already things withthose the current administration, and we will have to see how much progress we will be able to make in the coming months. Alix can you get some sense as to how Different Countries responded to this . Did all of the countries agree at the same time . There were some writing over the weekend that germany and france had some differences in thought. Thiss first of all, decision has been agreed in procedure by a majority of in a qualified majority. As we guide as regards france france has, reiterated its stance also today. They confirmed germanys support to the solution currently chosen. Maria and i want to switch gears to focus on the european budget. You know the Financial Markets were salivating for this good deal to go through. We have heard that a breakthrough could come through that could unblock the recovery fund. Will that be the case today or tomorrow . Valdis in any case, we hope that this agreement will be done really soon. It is now in the hands of eu legislators, not really in the hands of the european commission. But in the commission they are calling on the eu legislators to each this agreement as soon as possible, hopefully in the coming days. Can enter intond force as soon as possible in 2021. Guy commissioner, can i switch gears again . The Financial Markets around the world, stocks in particular, are surging today on news from pfizer on its vaccine. Can i ask you whether or not you successfule do get a and highly effective vaccine sooner rather than later, that that will change the calculation that the eu had to make, both in terms of fiscal stimulus and over at the ecb when it comes to monetary stimulus . Valdis first and foremost, we are currently dealing with a Health Crisis and the pandemic, so progress is actually important to the outcome of the pandemic, and also you know the eu has been investing heavily in vaccinesly supporting and treatments, and ensuring that those are widely available at an affordable price. Course, it is positive news for the economy because as the current economy regresses, it is the restrictive measures that countries are putting in place as a response to the coronavirus , so if we have a vaccine, if we have treatments, clearly sanctions can be eased and removed, and this will facilitate best economy facilitate faster economic and determine exact a what is needed for the economy. Guy it now looks as if we are going to see a bonded administration in washington. A Biden Administration in washington. What do you think that will mean for trans atlantic relations . Do you think that will be more stable . How big of a cyan relief was there in brussels a sigh of relief was there in brussels . Valdis first of all, i would like to congratulate vice President Biden. He has set himself on many occasions that he is committed to transatlantic relations, so to strengthen euu. S. Multilateralism and rulesbased international order, so we are looking forward to cooperate for our transatlantic relations, but also working , forher in multilateral example, in the wto. Alix thank you very much. We really do appreciate your time. Valdis dombrovskis, eu trade commissioner. This is bloomberg. Guy live from london, im guy johnson. Alix steel is a new york. This is bloomberg markets. Still with us, Christopher J Wolfe, First Republic private Wealth Management cio. Lets talk more about the impact the election is likely to have. Clearly we saw a double bump today. The first came first this morning, when european and asian markets priced in the election results. Then we got a second spike higher as a result of the news from pfizer. It is the latter that certainly is having the most effect. Lets ask christopher about what we do next. Just in terms of the way we should relate to the selection, you talked with alisx you talked with alix a moment ago about how you would price this in. Is this sustainable . Is this a sustainable repricing . Christopher you bring up a good point about time horizons. The repricing i think relates to confidence. Greater confidence that we are going to be going towards a trajectory of growth, reopening 2021conomy its had around , will stay high. You might say theres a lot of work to do between here in the middle of next year, but i wouldnt make any mistakes. Longerterm, this is good not just for the u. S. , but globally, to take covid out of the equation, and stimulus out of the equation, and get back to a more normal operating environment. That still may be a ways away, but i still think it is an opportunity for investors to reassess where they are. Understand, if we are not looking at a blue wave and 2 trillion stimulus, looking at Something Like 500 billion. We are not all going to get a shot of a vaccine in the next two months. Why is this suddenly amazingly good news that is going to justify 93, 95 basis points on the 10 year . Christopher the 10year has moved up a lot. The risks around inflation and broadening out is pretty narrow right now. The things that are going up are all related to stayathome, but inflation could broaden out quite a bit as we go into 2021 with a recovery in an economy fueled by vaccine and people getting back to normal. That is a little bit ahead of where we are today. There is still a lot to do, not the least of which is process a lot of the election results, logistics, and legalities that are still in place. We are not going to be certifying a new president until we get to later in december and even into january. Theres a lot that can happen between here and there. To the extent that investors need to be more cautious, that is important. Guy what do you do between now and then . Do you make any Big Decisions . It is been an incredibly volatile period. If you are an investor, you dont want that volatility. Christopher i dont think you do, but i think the point earlier about covid being less of an issue, keeping markets down because markets have been inflated by stimulus, the return to normal could be a return to high Profit Margins and a political environment that is more divided likely keeps the Corporate Tax rates relatively low. That is good for the profit story. You will see wall street strategists revise up their profit forecasts if the Congress Stays as it is. The chances of a Corporate Tax hike are going down. That means original earnings estimates for 2021 are likely to go up because they will have to compensate for that. There is some support around the fundamentals story to a certain degree. As i mentioned earlier, the idea broadly around the world is that the places that have seen the strongest lockdowns could see stronger rebounds. It is not just a u. S. Story focused on u. S. Markets. It is actually global markets. I think it is no surprise that european markets are the strongest on some of this news. Alix at jp morgan, a wellknown quant guy said that trump is going to lose his power to move the markets, and you will see a reduction in volatility. That could result in more inflows into risky assets and more exposure to stocks from hedge funds, and at the end of , posters have become quant guys. That is another thing. What do you think . Christopher theres a lot of event risk coming up. There is a continuing resolution deadline in december. By the time we get to july of next year, we are going to have discussions about the debt ceiling. We will get into the budget issues. They are all sorts of potential stopping events that can create volatility moments. To focus on the longerterm trends here. Less of a risk of increased big taxes. Interest rates and monetary stimulus. That is a pretty good environment. I think the longerterm trajectory is a little bit around if you get some big selloffs, youre going to want to add, to rebalance. You do want to do that rebalancing. We came from a place where we had a pretty big excess weight to u. S. Equities. This opportunity is to look a little more global along the points we discussed earlier. Guy who do you think is going to be treasury secretary, and what kind of impact do you think that person will have . Christopher theres a number of wonderful candidates. I think to the extent that that has any bearing on something that is probably more important, which will be Jerome Powells policies, which have anchored inflation and provided stimulus, that will be the most important thing. It is more important in my opinion that Jerome Powell stay in place rather than who the treasury secretary is, at least for the foreseeable future. Alix there was some good writing over the weekend that Lyle Brainard could be treasury secretary. That is well known to be the frontrunner. If that happens, there would be an even closer relationship between treasury and the federal reserve. What would that mean to u. S. And investor mean to you as an investor . Christopher it is symbiotic in some ways, particularly as it relates to policy developments. I think the second piece is more of a neutral, which is doesnt create more linkages politically to what should be an independent body, the fed . My expectation would be that any treasury secretary would leave in a place where the fed can still pursue its mandates of employment and low inflation, so is opportunity here then really along the continued pathway that the fed has to provide stimulus, keep rates low, and promote job growth through those low rates. What is your expectation on what the treasury secretary might ultimately deliver on tax . There is this perception that we will not see the more progressive, leftleaning tax agenda that some suggested this administration might deliver. Nevertheless, there are things like carried interest for the private sector which seem as if they may be on the table. How big of an impact in terms of sentiment will it be if those kinds of taxes were to change . Christopher those certainly could be on the table, to the extent there are opportunities to think about what they might look like. Lets get to the election results. Lets see how all of that plays out first before we make any big tax changes. That is a relatively small item in terms of helping the overall u. S. Economy. It is much more important to focus on stimulus for a Broader Group of folks, certainly for individuals. I think number three, even if those rules do change, the opportunities for private investment in the United States are still so large, it wouldnt dissuade us from thinking about how to allocate for clients across not just public markets, but private markets. So the tax is bearable. It is not great. But it is smaller litter to the other issues about getting the economy and a good place in 2021. Guy we are going to leave it , Christopher Wolfe of First Republic private Wealth Management. Rising. 10 year yield 0. 958. However, the virus news continues. New york coming dangerously close to a second wave. That is from mr. De blasio in the last few minutes. This is bloomberg. Ritika this is bloomberg markets. Coming up on balance of power, stern school of business professor of economics. This is bloomberg. With the first word news, im ritika gupta. There is a promising report on a Coronavirus Vaccine being developed by pfizer and biontech. It prevents more than 90 of its actions in a study of tens of volunteers. Further Research Shows the shot is safe. If further Research Shows the shot is safe, they could get emergency use authorization from regulators. President elect joe biden has named a task force whose goal is to bring the Coronavirus Crisis under control. He has called for increased testing, funding for schools and businesses to reopen safely, and eventually a free vaccine. President trump is vowing to go to court today to contest the election results. He is falsely claiming that he won and that there was widespread fraud in voting. The president has not offered up any evidence so far. 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. Im ritika gupta. This is bloomberg. Alix thank you so much. Bonds tumbling. Youve got the u. S. 10 year rising to the highest since march. The 30 year at 1. 76 percent. Equities rolling over just a touch as new york city mayor bill de blasio says we are looking at a potential second wave in new york city, but bonds not caring about those headlines. Joining us with more is mike schumacher. Good to talk to you. What is the talk here for you . Mike we have been looking at this from a variety of perspectives, and the idea of an incredibly strong vaccine does not necessarily feature in. We thought a vaccine of some sort. In the immediate term, which i would define as the next six months, i think youve got to find the vaccine plus the ultimate configuration in washington. Ke it say for arguments sa goes along a pretty good clip, you are looking at Something Like 1. 5 in six months. If instead it is the more likely scenario with joe biden in the white house, republicans controlling the senate, you are probably looking at something more like 1. 10 , 1. 15 . Guy is the fed going to be comfortable with those numbers . Mike i think it has always been a case of wide yields go up. We are in this crisis because youve got this enormous health problem, and that is why the fed is throwing so much accommodation at the markets. I expect them to look at it and say if we get a vaccine that is highly effect, that is a great thing. Therefore it is fine and dandy if yields go up. Alix is it the absolute level, or the speed with which we we rated we rated here . Having a move of 12 or 13 basis points in a day must be very different than a slower sloping curve higher as we wound up Getting Better growth and reopening the economy. Mike it is a good point, and i suspect the policymakers would generally prefer the slow move upward. A few basis points here, a few basis points there. When you get a headline like we saw this morning, we typically move all of those moves into one big, dramatic upswing. I will take your point that the and others at the ecb certainly would be happier with a more gradual move, but to this point, being up 13, 14 basis points, is it uncomfortable . Probably not. If we had another couple of moves like that, would we get there . Maybe. Mike the bank of england last week guy the bank of england last week announced additional qe. The ecb is expected to do the same come december on an even greater scale. Do you think there will be recalculations taking place at those Central Banks saying, maybe we did get a vaccine early on next year . Yes, the economy will take a while to get going again, but nevertheless, do we need to stoke additional asset Price Inflation at this point . Do we need to deliver more qe, or wait and see what happens . Ake Central Banks may take more measured approach. It is interesting to think about the situation in the u. K. In particular, where Central Banks and the government seem to be working hand in glove. I suspect the letdowns to continue, so if the government were to relax the letdowns early, perhaps the bank of england would take a more moderate approach. , i expectthe fed goes they are looking at these results very closely and trying to assess just how quickly it will impact the real economy. Alix based on that, how much risk do you want to be taking on right now . Do you want to take on risk, or is it duration . What is the best strategy . Mike in the bond market, we have been telling people to avoid duration for some time. It seems to us the potential for a huge move down in yields was fairly small. The scenario without that was most plausible was the extended delay of the u. S. Election results. That seems largely off the table. Instead, we thought there was a lot more potential for yield to go up. On top of that, the fed is more or less anchoring the front end of the curve, so we have been telling people to stay very short duration with respect to most of the g10 bond markets, and we think that still remains the case. As far as the equity call, i will refer to chris harvey and team, but certainly to move today has been spectacular guy has been spectacular. Guy dollar has started to catch a bid today. I would have thought this would be exactly the opposite. The dollar should continue to go down. Why are we starting to see a spike higher in the dollar . How does this publish and change your view of the currency . Mike frankly, it doesnt change our view very much read when you look at the dollar, you have to look at it pair by pair. The dollar that the almost 2 against the yen. That is an extraordinary move. About 1. 3 against the swiss franc. Why are these numbers interesting . Traditionally if you think about safe haven currencies, and has been the dollar plus those two at the top of the heap. This year we think the dollar has probably been a little more study than the other two, but part of the election trade is going away, and simply put, those two say havens those two safe havens are getting hit badly. If you look across g10 or emerging market space, the dollar is doing quite poorly, so i think it is more an artifact of the yen and the swiss franc losing some of their luster today. Guy i got the 1. 18 on eurodollar, down a little bit, so maybe some of the bleeding through into that currency as well. Mike, always appreciate your time. Mike schumacher, wells fargo macroties senior strategist. This is bloomberg. Ritika it is time for the Bloomberg Business flash. Im ritika gupta. In japan, Softbanks Vision Fund posted a record six point 6 billion profit posted a record 2. 6 billion profit in the quarter. A blockbuster ipo i a chinese real estate startup. The vision fund is recovering from a record loss last year. Warren buffett knowing all in on his own stock. Berkshire hathaway spent 16 billion buying back its stock in the first nine months of 2020, more than triple his previous annual record. Buffett has been looking for a socalled elephant sized deal to but huge sums of capital to work, but has not been able to find large acquisitions in recent years. The latest round in the videogame console 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. Meanwhile, sony has built the u. S. Into its largest single market. That is your latest business flash. Alix time now for futures in focus. Going us now is katie stockton, fairleads strategies founder. The technical breakouts are amazing. Can we do oil for a second here . What is the resistance level we need to watch out for . Katie it is amazing, the december wti futures are above their 200 Day Moving Average decisively, and that is what differentiates this action from midoctober, when it was actually at current levels. We are really just retracing the losses we saw in late october, and yet this time around, it is decisively about that 200 Day Moving Average. A coupley want to see of strong days above the resistance level like the 200 Day Moving Average to suggest breake have a lasting out, but of course there is improved momentum behind this move, and certainly the rally. We are seeing 10 to 15 gains on average in Energy Stocks that are leveraged to these Wti Crude Oil prices, so that is promising. Those stocks were set up for an oversold bounce, just given how deeply beleaguered they were relative to the s p 500. Is thehat is interesting s p is losing some steam. 2. 7 , 36. 06. Nly as crude stays firm, dollar is losing some of its downside, and equities rollover just a touch. Katie it was a big move off of the open, and we did see some signs of upside exhaustion in the s p futures, so it is only natural we see some kind of intraday pullback here. The more important take away is that the s p 500 is at a new alltime high. A breakout there would be confirmed by a couple of daily closes above 35. 88, so even what they pullback off of this mornings high, we have a breakout pending confirmation this week. That would be very promising. It would negate any loss of momentum we saw between december and october. We tend to give more weight to breakouts and breakdowns than our indicators, and if we see this confirmed, that would be a bullish development. It is nice to have a catalyst for that. Alix i am also looking at small caps. The already white index is a smallcap value location the rty is a smallcap value rotation story. Can small caps and value be enough to offset weakness in tech . Katie i think so, and i think today is proof of that. Faang stocks are holding up ok, not breaking down. They are losing reps of strength losing relative strength, but i dont think they are essential to the uptrend continuing here for the s p 500. Even the nasdaq 100 has some exposure to other sectors than technology. To see some broadening out of the rally with this, some movement from growth into value. It is too early to say whether it is meaningful and lasting. We have some stabilization in the ratios of our growth versus value benchmarks. We use etfs to arrive at that. The s p 500 ratios have certainly stabilized, and the 50 Day Moving Average has flattened, so it could be an early stage reversal, but we dont have a breakout yet for value versus growth. It is something that i think could help keep footing under the broader market. Alix cap let you go without talking about yields. The tenure doesnt show any sign of slowing. What is the top technically . Katie here we have a proving grounds. 10 year treasury yields are now decisively above their own moving average, backup into resistance from the june highs. This is a proving ground for many reasons, psychological being one of them. That 1 level a lotf folks are focused on, reasonably so. If we were to see a couple of strong weeks about that 1 , we would have a major reversal for 10 year treasury yields based on the downtrend going back to late 2018. That is something to watch very closely. Obviously it would have implications for a lot of Asset Classes and sectors. Alix no kidding. It will be interesting to see what the revocations are for that. What the ramifications are for that. Katie stockton, thank you. Lets get to the fundamentals. Coming up in the next hour, andrew sheets, Morgan Stanley chief process at strategist, will be joining us. Haefele says it will be about smallcap where you get the pickup. We will see if andrew sheets agrees. This is bloomberg. Guy live from london, im guy johnson. Alix steel is a new york. We are counting you down to the european close on this incredibly busy monday. What do you need to know from europe this hour . Value stocks absolutely soaring as pfizer and biontech deliver vaccine results Anthony Fauci describes as extraordinary. Billion inunces 4 transatlantic trade tariffs despite the expected change in the white house. We were hearing from Valdis Dombrovskis a little earlier. The u. K. Chancellor expected to make a statement in the house of commons, addressing the future and announcing the first green gilts. We will give you that live from the house of commons. Its talk about the markets. Two real big up legs. The first coming first thing this morning off the back of the news that it looks like we are going to see a biden presidency. The second and musick if it can coming on the back of the news we have from pfizer and