Francine, went up 15 . That was the kind of move we saw. Last night, and a lot of people missed this in america, exhausted from the election, we nestor8 00 or 9 00 p. M. , barr making these statements. I would suggest this mr. Barr mr. Barr making these statements. He was extremely careful. Every word was chiseled out. For me the headline is the 20year veteran of this under election crimes, mr. Pilger, a herk to james moody, resigned. To me that is the real headline. Francine it is a huge deal and we are trying to figure out what this means for the Republican Party and the strategy possible there. Stephanie baker says it could have something to do with the Senate Election in georgia. We will have plenty more on that. Lets get to first word news with ritika gupta. Ritika President Trumps attorney general, william barr, will let the Justice Department investigate potential voting irregularities in the president ial election. But barr has acknowledged there is no conclusive evidence and warned against what he called fast acting claims after he announced a new policy. The head of the department election crimes ranch resigned. The u. S. Is set to hit record hospitalizations for the coronavirus this week. Cases are soaring in illinois and michigan. The city of el paso in texas has more people hospitalized with the virus than in 29 states. The European Union will impose 4. 5 billion of u. S. Goods, a titfortat escalation in a says it the e. U. Would drop the tariffs if the u. S. Removed duties imposed on e. U. Products last year. U. K. , the house of lords suggested government plans to break International Law over brexit, voting to remove the most controversial parts of the International Market bill for internal market bill. It gives ministers the power to rewrite parts of the brexit deal johnson signed with e. U. 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, im ritika gupta. This is bloomberg. Much. Hanks so how about a data check after what we saw yesterday . Extraordinary. Let me give you levels, much more than change. Spf, 35. 51, up eight points. Here, dell futures yesterday touched 30,000 for a splitsecond, and then came back foot dow futures yesterday touched 30,000 for a split second. Then came back. Off the rebound yesterday, thats not back, i should say. That snapback, i should say. 99. Crude 42 i would also note, japanese yen youve got to be attention, a weaker one, one of 5. 35. 105. 35. Francine we look at the hurdles, but partly just because of the euphoria we had and the last 72 hours. Treasuries study as investors are focusing on the risks that fresh u. S. Fiscal stimulus may now be expected. Andglobal rally is pausing, it is very telling that european stocks are getting 0. 5 percent. Joining us now, jim reid. We have a million and one questions after the last several days we had on the market. What is the market looking at right now . Is all the good news priced in . Are they looking at stimulus in the u. S. . Jim there is a lot to look at over the last week emma which is a bit conflicted. Obviously we dont know everything yet, so we reserve the right to change our minds, but i think the vaccine in a way should be seen as a global fiscal stimulus. We got word on the potential fiscal stimulus last week, but this potentially is a global fiscal stimulus. I think the story is positive and has room to run. Francine what do you do with u. S. Bonds right now . Bonds areof the junk probably most of the stressed bonds in highyield are probably in the cyclical areas, which probably are not going to be supported by any hopes of a vaccine. You have to look at Airline Hospitality stocks yesterday, and they soared. That is probably where the weight parts of the highyield market are. This potentially positive news for cyclical. Tom jim reid, we have had a recent in yield. Credit up near 1 . What is that significance . Is it a breakout . Is it a new higher range we are in . How do you frame that asko jim how do you frame that . Like ais is probably global fiscal stimulus. I probably would have a bit more confidence seeing nonu. S. Yields going higher than u. S. Fields, because this is a global thing. The story last week was very u. S. Centric, and the disappointment was u. S. Centric. I think this is more of a global push. Comeield markets might with uncertainties on the fiscal side. Tom the price of the yield is extraordinary. Are they coordinated with are they correlated with equities . Is it a tight market or is there a lot of dysfunction within . I mean, if you look at what has happened in the last nine months or so, treasuries have perhaps lagged the risk on elsewhere, so i would not say they are particularly tight with equities. If you believe they were, treasury yields would be a lot higher than this. Whether it is qe or other things, treasuries are definitely expensive relative to the risk on you have seen since the lows in march. Whatine jim, overall, happens under a Biden Administration to credit in the u. S. . I know it is difficult to know, because we still dont know if republicans come a whether they hold on to the senate, will do everything to not give him what he wants or whether they will play along. What is your feeling right now . Credit or in of terms of u. S. Treasuries . Francine lets start with u. S. Treasuries. Of a pushpull. You would not need such a big fiscal stimulus if they news on thevaccine was as good in early indication from pfizer yesterday. There is an offsetting to this now. There is still a lot of demand for fixed income out there, there is still a lot of qe. Most Central Banks are buying most of the issuance that governments bring. Absent a big rise in inflation that treasury yields will go out of control, that is why i think the best way to play this is to diversify. If you wanted to be short, i would be short bond markets rather than the u. S. At this stage. Francine when you look at european yields and we were looking at the spanish 10year yield, the portuguese 10year yield how likely is it that these will continue going lower and go into negative territory . If it goes into negative territory, what does it tell us . Jim it is a supply and demand issue as much as Everything Else, because the ecb are effectively buying all of the new issuance this year and the next couple of years, and more probably. It is a bit of a pushpull. Spreads will tighten, and probably overpowers the other. Does the tightening of spreads overpower the overall rising yields . You have vaccine news that could make positive vaccine news could make negative yields less likely cause the board, but the old country which spreads the bunds might dip into it. Francine greatly of tom jim reid, thank you. We greatly appreciate it this morning. That is a long ways away from that we had range a week or so ago. Give me an update on the lockdown in the United Kingdom. We are seeing stunning statistics across all american in case growth and deaths rising, but what were focused on his hospitalization. What are they focused on in the continent and in the United Kingdom . It isne it is the same, hospitalization. It is really the big cities, the big metropolises, such as london, which have problems containing the virus. I think we are on today five of the national lockdown. The difference between london and paris, london and milan, is that we are in full lockdown here, but there are not many checks on the streets. If you go to the park for the we can come you could say its overcrowded. You are fine in lockdown, but if it is dont respect it, not effective. Tom well said. I dont think there is much difference here. Coming up, a simulcast, radio and tv. Joining us, robert kaplan, a busy day for the gentleman from texas. I will be speaking to him at at the council for relations. We will get ahead of that in the 8 00 hour with mr. Kaplan. Stay with us. Futures up 2. Dell futures up a mere 195 points. This is bloomberg. Good morning. Tom bloomberg surveillance. Good morning, everyone. We welcome all of you worldwide. Midmorning london, Early Morning of america, an america waking up to another resignation, this time at the department of justice, over a letter put out by the attorney general late last night. Stephanie baker joins our Senior Writer and truly expert on these affairs. Stephanie baker, Richard Pilger is out of nova dame, a 28 year distinguished bureaucrat out of notre dame, a 20 year in aished your cap, case of years ago. Why did this guy resign . Barrs move is, unprecedented, and it flies in the face of established Justice Department rules, which say that investigations are supposed to be conducted by the state and the doj does not get involved until after elections have been certified and confirmed by the state. Moreover, they are not supposed to openly announce these investigations. They do not want this to interfere with any election, ongoing election count, etc. I can see why he resigned. It is, again, another move by barr that flies in the face of established Justice Department rules, and it is somewhat comforting that he is saying that they should not be investigating claims that are farfetched, but it does, in the end, i think contribute to the narrative that there is some problem that undermines the integrity of the election results. Tom if we expect it at that the president and the attorney general were getting up front federal usurping of states rights, what would any court do on this . It seems that if any of this sees the light of day in court, somewhere in the judicial process they will say you cannot do this. Is that right . Yes, absolutely, and you have already seen the claims they have brought forward have gone nowhere, and none of the claims they have brought forward are likely to change the outcome of the election. For instance, in the botta, the Trump Campaign is challenging 3000 votes, they say in the votto, the Trump Campaign is even if that were to be proven, it would not change the outcome of the nevada results. Because biden is up by so many votes. Acrosstheboard, none of these recounts were legal challenges are going to, you know, put into question anywhere near the number of votes that they need to overturn the results, so as a legal strategy, it does not look like it will go anywhere. Ground to a to just halt. It is designed to encourage trumps narrative that the election has been stolen from them, and it is something hes likely to wish and continue to push for years. Republicansy are backing these claims . What is the strategy if there is one behind it . Stephanie you would think that they would want to retain control of the senate and that they would move on to try to not get distracted by these pointless recounts and legal challenges and throw every penny and all of their time at georgia, where there are runoffs for two Key Senate Seats that will determine control of the senate and whether or not emma kratz might control washington come jan of whether or not democrats might control washington come january. The strategy now seems to be to motivate trump voters to come out for those races in georgia by advancing this Conspiracy Theory that the presidency was stolen and that they need to turn out in huge numbers to make can that the republicans retain control of the senate. Francine what does this mean for the transition . Who gets hurt by this most . Does make the transition messy. You even have senator marco rubio saying that there is no reason why the General Services administration cannot ascertain the results, sign off on the election results, and allow security clearances to proceed. He says there is no reason why that cannot go ahead, while the various legal challenges proceed at the same time. We are in the middle of a pandemic. It is a national crisis. Security are serious concerns. Trump already fired the defense secretary, as per. That creates a vacuum there. There are real concerns about security and about pandemic to release refusing the transition funds and let the transition proceed. Tom you have done great work on money. Is this all about money . Are we looking about the president breaking the piggy bank and all the election is really about fundraising . Can i be that cynical . Stephanie i think money is probably a part of it. I think trumps concerns about his legal liabilities if he is no longer president is a huge part of this, and i think fundamentally this is all about the fact that trump, despite his loss, got 71 Million People to vote for him, and that gives him political power. Driveill continue to decisionmaking within the Republican Party going forward, as they are scared of getting on trumps up side. On trumps wrong side. Baker there,phanie and we will have more on u. S. Politics with stephanie throughout the day. Coming up on balance, dr. Mark mcclellan, former fda commissioner. A bit of breaking news out of amazon, this according to e. U. Sources. The e. U. May file former charges against amazon for anticompetitive business practices. We will see what that means for the share price for the internet giant. This is bloomberg. Ritika this is bloomberg surveillance. I am ritika gupta with your Bloomberg Business flash. Verse are warning that the Coronavirus Vaccine still has many hurdles to clear. Results from tests fueled optimism that the world will soon have a way out of the pandemic, though there are questions about the vaccine production and distribution and safety. Pfizer expects to have safety data for people in trial by next week. Bayer may face up to four trials next year over its round up weed killer. A judge in San Francisco says he is ready to resume putting cases in front of juries. Bayer announced a settlement plan in june. Still, there are thousands of lawsuits accusing round up of causing cancer that have not been resolved. For the first time ever, there are now five people on the planet worth more than 100 billion dollars, according to the bloomberg billionaires index. No joined the club yesterday. The Coronavirus Vaccine pushed stocks higher, including lvmh. Include jeffaires bezos, elon musk. Tom a contribution from the tom keene household. Lets get a data check. Opting off the amazon find, to give you an idea on the fine, if amazon had to do a 10 of global revenue fine, francine, that would clock in somewhere between estonia and lithuanias gdp per year. Which is how absurd that is. Check byish the data saying dollar fractionally stronger. Puts it that statistic in perspective, and one of the regulators was talking about how much these giants that we use everyday, how much money they make. We kind of forget the size and scope of some of that. That global rally that we saw yesterday, the one that we saw even to some extent on friday, has paused. There is concerned about the promising Coronavirus Vaccine, the fact that they have curdled script they have hurdles to clear. Coming up next, we look at the vaccine, we look at the vaccine with paul hunter. This is bloomberg. I must stress that these are very early days. It is clear that this vaccine, even if approved, will not be widely available for months to come. News cannot rely on this is a solution, and to the biggest mistake we can make now would be to slacken albert resolved. We are facing a dark winter. Tom the politics of the u. S. We welcome all of you. Francine lacqua in london, i am tom keene in new york. Eventfulng to be an day. Secretary of defense fired yesterday. There is an assumption we will see further firings from mr. Trump. Francine we need to look at that. We need to spend more time looking at the transition. It does not look like it is going to be peaceful. I understand more now about the papers ino signs what the transition. Which we have never thought about. Experts. Uddenly become investment, we have decided to speak to experts. It is wonderful to have with us two gentlemen who studied at the heath hospital in cardiff, wales. When is paul hunter, the acclaimed microbiologist. Right now, making repeat appearance, sam his alley. Learned inave you the last 24 hours about the miracle of the Pfizer Vaccine . Good morning. Again, a privilege to be joining you. I think we can talk more about the minutiae of what this 90 reduction means. Course, you come up with questions you still want answers tool answer sue. It is not a vaccine, bacterial, we will talk with paul hunter. In making the vaccine, do you just assume failure on the path to success, or can pfizer launch something that works they one . Inyou have to assume that most clinical trials, especially when using new technology and dealing with a virus we have controlied to get under , this 90 was an amazing start. I am happy we are starting from this point and not 50 or 60 . Francine what is the one thing you want to know about this trial . Everyone is very positive, i know you are positive. Is this a matter of timing . Distribution . What are the questions we need to ask . Them e we can get to if we can get to the moon and back, we can get this thing distributed. If you ask me for one question, i would like to know how durable the new protection is. That is what i want to know. Francine how long until we find out . Unfortunately, we will have to wait as time ticks by. I think six months to a year, we would know whether this vaccine and these people continue to be protected. , thank you very much. Microbiology,d paul hunter joints us right now. Fear weo talk about the saw yesterday in the United States. The ideaection news, you go in the hospital and you get sick because you are with other sick people. Is it legitimate . Can we get nosocomial illness . Absolutely. Nosocomial illness is a risk. Many infections, particularly in children in pediatric wards during certain times of year there are respiratory virus around that does spread easily between children. At that time, we try cohort patients, where people with the separatelyare nursed , in separate wards with patients who do not have the infection. Tom brief us on the season of the year. If it is waterbased, heatbased, there is meningitis. I think in october or november of any year. Do you by the idea of the weather shift . Absolutely. Absolutely. We have already seen that. Many people who are susceptible, but if you look at other related viruses, there are two others. Thats jumped into humans many decades ago. They tend to cause their through november february, and occasionally into march. We would expect as we build immunity in the population that this will spread more readily during the winter, primarily because people spend more time indoors. I do not think it is necessarily the weather per se, it is whether it is cold enough or rainy enough that you congregate indoors as opposed to outdoors. Francine back to the vaccine, how quickly do you think we will have it . Will people take it . It is a vax is that a vaccine you would have every year, every six months . Wewe do not know how long will be protected from the virus with a vaccine at the moment. With a virus, with natural infections, some people have been getting infected after one or two months. I expect with the vaccine, immunity will last longer than that. I hope and expect it will last about a year or two, maybe longer. We will have to wait and see. I expect it is likely we will be having to have this vaccine every year, as we do for influenza. It may well be that once we get there we find a vaccine is not necessary every year, we can do it every five years or whatever. We wont know that for another year or so. It isne how long until distributed widely . Thewe too optimistic about ability to, once we have the formula, make it, refrigerate it and send it . Our deputy chief medical hopedr yesterday said he we would have some vaccine ofilable before the end december. I think realistically, if everything goes ok and it passes regulations, we will be looking to scale up the vaccine next year. This is going to be a huge undertaking. Be vaccinating people for several months as we move into next year. Of we learned yesterday celsius and fahrenheit, 74 degrees fahrenheit 94 is the transfer of the vaccine. Maybe liquid nitrogen then all of that. Is that doable across our society . Can we move this precious cargo around the school . We certainly can because we already are moving large amounts of other materials around in those sorts of temperatures. Far intoculty is how the population you are able to distribute that. It is quite possible that this vaccine, what will happen is we central centers people go to rather than just the gp surgery or their Family Doctors surgery to have the vaccine. Ensured be difficult to the cold chain in small practices. Maybe bigger hubs for vaccination. That would be achievable and relatively easily manageable. Francine professor hunter, when you look at some of the great do we sometimes forget the treatments available . I caution everyone to wear masks, but am i safer to catch it now than it was in march . Undoubtedly. If you look at the death rates, they seem to be lower now than they were in the autumn. English a u. K. An study on intensive care units. If you go onto an intensive care unit now and you are under 70, you are about 40 less likely to die then you would have done had you gone on the same unit back in there has been a major improvement in survival. Francine thank you for joining us. Saying, much of that is because of the drug called dexamethasone. If it is given at the right time, it reduces the death rate substantially. Francine paul hunter, thank you. Lets get straight to the bloomberg first world news, here is ritika gupta. Mark Mitch Mcconnell has given President Trump cover for challenging election returns. He is well within his rights. Ritika the president has claimed there was widespread voter fraud. So far, those claims have been unsubstantiated. A warning from the federal reserve, asset prices in key markets could still take a hit if the pandemics Economic Impact gets worked desk its worse. They pointed to signs of weakness in commercial real estate. U. S. Regulators could give the boeing 737 max to resume commercial services as soon as next week. The faa is finalizing their review on fixes to the aircraft. The jet has been grounded since march 2019 following two fatal crashes. Peru, president has been booted from office. The countries Congress Overwhelmingly voted to impeach him over allegations of corruption. He says he wants challenge the e ahead of the peruvian the head of the Peruvian Congress will become the interim president. 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. This is bloomberg. Joiningnk you for bloomberg television. Investment,inance, and too much politics. All of that folds into the hydrocarbon markets. Here on thery tendency of oil off of supply and the mystery of Global Demand. Red and green on the screen. Futures at 12. This is bloomberg. Francine this is bloomberg surveillance. Since we found out about the Biden Administration saturday, there are a number of things that will change in the u. S. One is commitment to Climate Change, the other is energy security. ,o talk now about to demand biden presidency and renewables, we are joined by thank you for joining us. Administrationen mean for Energy Consumption in the u. S. . What does it mean for Climate Change and renewables . What we read and what we see is that the next administration put a strong emphasis on Climate Change. Turn pushingn in renewables, especially solar and wind stronger as well as other tohnologies ranging from nuclear power. I would expect that some regulations in terms of energy efficiency, admissions, will be put in place in order to reduce emissions. The big push i would expect first of all in the area of Renewable Energy is solar energy , for which the u. S. Has great potential. When you look at renewable power, how dependent is it on the price of fossil fuels . How dependent is it on oil . Is it independent, just the trend go no matter what, or do we need to look at Global Demand to give us an indication on oil . The dependence between oil prices and renewables are not as strong as a few years ago. Renewables have their own dynamics. Solar power today is the cheapest source of Electricity Generation in most parts of the world. Crownede reason i have solar as the new king of global markets. Year, about half of the power plants in the world are solar. The other 50 are Everything Else put together. Coal, gas,s nuclear. They are costeffective. States, there is potential for strong growth. Administrations policies could make this higher. Vaccine does a pfizer that we heard about yesterday change your outlook for 2021 oil demand . I should tell you that the day after tomorrow we are releasing a oil markets report. Important chance and one question mark. The second wave we are seeing in europe and elsewhere in terms of coronavirus, the lockdown measures, and in other countries as well, puts downward pressure on oil demand. Production isies, increasing from libya and the United States after the hurricanes are over. Them putting higher , givesion, lower demand more downward pressure on the crisis. Proves to be visible, and can be applied around the world, we may well see it gives a boost oil demand, including the bleeding aviation sector. If it proves to be a sustainable solution. Tom i want to go to your engineering degree from the university of east and bull. Can you explain to our audience with theirsurvives needs of oil . How does turkey handle devaluation of the lira . I left my home country four decades ago. What i see is that turkey is going through very difficult economics. Rms of the devaluation of the lira, and turkey plus current deficit is becoming a major issue turkeys current deficit is becoming a major issue. Met byturkish energy is imports. Oil and gas. It is a major challenge for the country. So much. K you greatly appreciated. Iea executive director on turkey and global supply. The 10 year yield is getting out. Teeth,k to yesterdays we do politics and continue with the impact of the pandemic. Weve gotten huge value over recent months. The Lieutenant Governor of new york state out of buffalo, she is living the actual, what do we do about this pandemic . Futures red and green on the screen. Dow futures screen. This is bloomberg. Bloomberghis is surveillance. Ritika the European Union is set to issue a formal antitrust complaint against amazon. Merck has learned eu suspects the company missed used data it gathered from rivals. Billionaire ray galli is doing better in china than the rest of the world. Bloomberg has learned that has raised for its second china fund. Ae china Strategy Fund posted 22 percent annualized return for its first 22 months. Plushile, bridgewater platform the nba will start its next season december 22, less than three months after the last one ended. Uniona and the players agreed on a shorter season. Francine thank you so much. Areok at what the markets doing. After two days of euphoria, the market easing off. Some of the on havens. If you look at colts, 817. European stocks gaining zero points. We see a lot there. After the huge day yesterday, truly an historic day yesterday. What a shift it was. I did a lot of mathematics on how it was made up and we made up of the standard deviation. We are by no means back to prepandemic on value. This is welltimed. We will address Climate Change with Jeffrey Sachs of the earth institute, columbia university. No one was more out front on the challenges of the middle class in america, we talked to jeff sachs about four years forward. Stay with us. This is bloomberg. When you switch to xfinity mobile, youre choosing to get connected to the most Reliable Network nationwide, now with 5g included. Discover how to save up to 400 a year with shared data starting at 15 a month, or get the lowest price for one line of unlimited. Come into your local xfinity store to make the most of your mobile experience. You can shop the latest phones, bring your own device, or trade in for extra savings. Thats simple, easy, awesome. Visit your local xfinity store today to ask, shop, discover the latest on xfinity mobile. Tom this morning, it was farfetched. That spectacular news on the vaccine that it would lift jp morgan shares, dow futures would for a brief second, print 30,000. It happened. Stocks stabilized this morning. The attorney general will not wait for voter certification. The department of justice will search for irregularities that are not specious, or farfetched. Fired, the secretary of defense. Good morning everybody. Tom keene in new york. Francine lacqua and london. I love what we did with the microbiologist and our wonderful sam fazeli. It is also about the selection. This election. Our american audience wakes up to an attorney general with something on his mind. Frne
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