The nasdaq. The trade continues tom the trade continues. Tom im looking for an entry point. They all sits, down. You couldnt trade. You are right. , 1. 05. Weaker yen today i just did the math on the surveillance. Is fine they are proposing the gdp of latvia. That is the story around big tex. Think big tech has a much bigger problem, given yesterdays session. Tom i agree totally. Jonathan maybe not latvian gdp. [laughter] yesterday was a case of buy stocks, ask questions later. There are questions being asked about this vaccine and development. The deployment, the distribution of it. They are questions we will pursue for the next couple of hours. Tom we will have some real experts on. It has got to be frozen. Theres issues. But as we heard from johns hopkins, there could be a lot more vaccines coming on. It is a stew of vaccines. Jonathan the show is just coming off the rails, which means one thing. Lisa is going to get it back on the rails. The data, lets focus on that. Lisa i could talk about the latvian gdp, but instead i am go to talk about jobs. When you talk about the soup of vaccines, the issue is the pandemic is getting worse. The question is how is it going to affect the labor market that is showing a leveling off in its recovery. Labor00 a. M. , we get survey turnover data. A key leading indicator about how robust the hiring scene is. Today at eight 30 a. M. And at noon, dallas feds Robert Kaplan speaking with bloomberg representatives. At noon, one thomas keene will be asking him for an interest point for an entry point. Yields rose to the highest levels yesterday since march 19. The question is, how much demand will there be for this debt at this moment, given how much uncertainty there is, given the sense that we dont have a sense of how high yields can go before reality steps in . Touch on theore i markets, just to clear things up, Michael Mckee interviews kaplan before tom, correct . Tom got that right. Jonathan mike goes first, then tom keene. Right . Tom i am just going to ask the same questions mike asks. [laughter] lisa classic. Jonathan heres the price action this Tuesday Morning. Mike mckee first, tom keene second. Thats how it should be. Going to play on that for the next couple of hours. That rotation continues, if youre looking in certain places. A huge theme yesterday with the white s p 500. Sarah ponczek telling us for the s p 500 eagle week the s p 500 equal weight, the biggest outperformance on a single day ever. Eurodollarrket, one dollar 18 cents. We pulled back by 0. 1 . I will mention the trading range of the last five or six months. Lets go from april through to november. The lowest was in early august. The highs, when we breached those levels yesterday, and then we pulled back a little bit. Now 96, 90he high is eight basis points or so. We are at the top end of the range of the last seven months, and it all comes off of one day in a huge repricing. Tom it is a real mystery about where we go from here. A lot of betting here. I would say the bears were vanquished yesterday, and they are going to have to readjust and readapt as well. Our audience in east anglia this morning, extraordinary. We are thrilled that dr. Valerie is in eastvalerian anglia. They do oysters or something. [laughter] lisa oyster farming . Tom i just started the new and follett book. Jonathan i am so confused. Last week it was guernsey and the u. S. Election. This week it is a great rotation, east anglia, and latvia. Our guest is wondering what is about to happen on the show. The section head of u. S. Rates letsgy, subadra rajappa, start with the move yesterday. Your first take, please. Adra basically, the bond market has been on the reflation trade after the election. Some keyken through Technical Levels yesterday, and i think that the selloff, like you said, with equities, the selloff in the bond market had legs as well. Theres just a lot of cash in the sidelines that needs to be put to work. If there is an opportunity, i think you will see a departure away from bonds into risky assets. Tom really important question. I did the math yesterday. J. P. Morgan is a giant financial success. It has come off the bottom, but nowhere back to the prevalentines day trend. 14 tos to go up another get back to trend. Dont quote me on that, folks. Did you see a catharsis , a catharsising up that speaks to a new bull market or a new leg of a bull market . Subadra im not an equity strategist, but from the bond side of the equation, i think one of the things that happened after the election was positioning was a lot cleaner. There were a lot of shorts coming into the election. Of surprisesort. Ews from pfizer i think Going Forward, what the market is going to be focused on is what you mentioned earlier about what happens on the vaccine side of the equation. Theres lots of logistical issues that need to be dealt with. It is a very large deployment for perhaps several different vaccine makers, and how that gets rolled out is going to be very key on how the bond market reacts and how equities react as well. I think for a change, you are going to see more correlation, even negative correlation between equities and bonds come over you see risk on days in equities and a selloff in bonds. Lisa i am losing the narrative here. Yesterday i was really confused because weve got yields shooting higher, breakeven rates, the expectation for longerterm inflation not doing that much, so this isnt necessarily a surge in longterm growth prospects. All of a sudden, junk bond yields at record lows even though weve gotten on the plymouth rate near historic highs in the recent era. What is the narrative . Subadra broadly speaking, real areds as well as breakevens heading in the right direction. In breakevens as well, you saw about a six or 7 rise in breakevens. It is heading in the right direction. That is what you want to see. Higher real yields and wider breakeven. The question is one of caution. It is really hard for the bond market to price in a lot of exuberance and a very short time given the fact that the fed is very much in play, and theres really no certainty on a lot of fronts. Clear we are going to get any sort of fiscal stimulus at the end of the year. Even if we do, it is not going to be of the magnitude required by the economy to prevent nearterm damage in the jobs market. Jonathan for me, it is the recovery through 2021 we all hope for, when the fed reaction function will start to come into its own. When good news will be good news because the fed has said we will not step in. How do you think about that . Subadra i think the fed is doing exactly what they should be doing. Theres not much thats new on the Monetary Policy side to stimulate the economy. But the economy really needs now is on the fiscal side. If there is an unruly selloff in bonds, i could see the fed step in, but there is really no need for any sort of monetary stimulus. Funny be are extraordinarily easy. Highs. E at historic theres not much the fed can do to move the needle. Stimulus has to come on the fiscal side to stop the job losses. Jonathan i want to check in on the price action for you. Tuesday morning, good morning to you all. It is a trend from yesterday,. His was of rotation s p futures unchanged, but you start to see russell equity futures still up by another 1. 8 . Small helps small caps outperform again. In europe, you see the banks outperform. That was the story of yesterday. Squeezeerday just the for the start of a longer trend . Tom the idea here of a cathartic move. I am going to leave that up to Chris Verrone and chart guys like that. You are right that it was an abrupt move, but not back to trend. Theres a long way to go for all of these different categories to get back to trend. But betweenw this, Saint Edmonds and ipswich, ive never been there. I think next time we are in london, we have to do a road trip to stowe market. Jonathan i cant verify the whereabouts of Mohamed Elerian right now. It started with oysters in east anglia. Have you been . Tom no, ive got to go. Sounds good. Jonathan hes a really nice guy , another nice broadcaster you should meet, named Alan Partridge. I think you guys will get along. People in the u. K. Will get that reference. Google him. Hes really wellknown. Hes a radio broadcaster. I think you would have a lot in common. Tom keene, Lisa Abramowicz con lisa ferro on abramowicz, Jonathan Ferro on bloomberg surveillance. Im happy lisa is right here with me. [laughter] laterricks is coming up with eli lilly. Look out for that. This is bloomberg. Ritika with the first word news, im ritika gupta. Attorney general william barr will let the Justice Department investigate potential voting irregularities in the president ial election, but has acknowledged there is no conclusive evidence, and warned against what he called farfetched claims. The head of the departments election claims branch resigned. The u. S. Set to hit record hospitalizations for the coronavirus this week. Numbers are soaring in midwest states such as illinois and michigan. In texas, the city of el paso has more people hospitalized with the virus than in 29 states. Starting today, the European Union will impose tariffs on 4 billion worth of u. S. Goods, a titfortat escalation of a fight over illegal aid to aircraft many factors boeing and airbus. The eu says it would drop the tariffs if the u. S. Removes duties imposed by eu products last year. The European Union has filed antitrust charges against amazon. That escalates an investigation into how the Company Handled data from rival sellers on its massive online platform. The eu competition commissioner favorhe come but not its own says the retailer should not favor its own onvices over those listing the site. 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. Ka gupta. This is bloomberg. Sen. Mcconnell we have the system in place to consider concerns, and President Trump is 100 thin his rights to look into allegations of hisgularities and weigh legal options. Jonathan Senate Majority leader Mitch Mcconnell of kentucky weighing in on a contested election in the United States of america. Good morning. Alongside tom keene and Lisa Abramowicz, im Jonathan Ferro. Heres the price action. What a way to start the week with yesterdays huge move in equities. 0. 9 on the 10 year. Equity futures on the s p basically unchanged, but big tech underperforms. Small caps outperform. Crude, 40. 60. 1. 1818. Ar, barr,ttorney general bill this came from him yesterday, and it said the following. While serious allegations should be handled with great care, specious, fanciful, or farfetched claims should not be a basis for initiating federal inquiries. What did you make of that line . Tom i thought it was extremely carefully written, as was the statement by senator mcconnell. They are walking the knifes supporting the president , the court can situate for the present the core constituency for the president , and what the law says. Joining us now, our kevin cirilli. How farfetched is it that this story will continue, or will they be crushed by the courts . Kevin the story will continue so long as the judicial elements of the story continue. Journalistic, analytical approach to this, i would note that, based on the interviews i did yesterday and the conversations ive had over the past couple of days, there are two points i would make your. You mentioned the politics of this. There is a georgia runoff on january 5, salida mcconnell has leadership at stake, and the soate majority january 5, leader mcconnell has leadership at stake, and the Senate Majority at stake. That was a point that was made clear to me by sources that i spoke with yesterday. That is point number one. Secondly, there are still political implications in the short term beyond georgia. Thursday 2020 two midterms, and yes, the 2020 for open primary for the president ial run. If the president is weighing his future political options, he wants to keep those options on the table, whether to be another run, or whether it be playing a kingmaker role. Those are the political implications, divorced from the democratic implications of this. Tom clinton lost, and the Democratic Party weighed their future implications with a concession speech and a graceful exit. I dont think it is the same, is it . Kevin kevin obviously it is not the same. And again, i am reporting, tom. Ed upon my reporting tom i think thats a surveillance lecture from kevin. Reporting,d upon my it is in stark contrast to republicans like governor larry hogan from maryland, senator mitt romney, as well as gary cohn, who have come out to congratulate the president elect joe biden for his win last week. Jonathan i dont want to draw equivalents, but maybe in london i have more space to say this. I am not sure what was graceful about the for your blame game that Hillary Clinton went on the four year blame game that Hillary Clinton went on. Was that graceful . Tom no, but in the last 24 hours, there has been a partition of republicans, including the Vice President on a beach in florida. Jonathan who is going to work through a process, and lets work through that process with you right now. I understand you cant say too much. Help me understand the dates that youve got in mind. I understand the states have to certify the results by, when, december 8 . Kevin precisely. I would argue january 20, the date of the inauguration. In addition to that, there is beinga transition that is implemented by sources i spoke with yesterday at the various agencies. They have been working on those transition binders, as is customary, for several weeks, in andt this and preparation for a transition of power. The Supreme Court taking up aca today. Beyond that, leader mcconnell spoke yesterday on the floor with results to with respect to fiscal stimulus, the results from pfizer. He says a standalone fiscal stimulus should happen because of the vaccination front. The uptick in case is now forcing the issue of fiscal stimulus to the forefront of the lameduck session. Lisa just in terms of other changes that have come as a result of the election, mark esper, secretary of defense, hired by President Trump yesterday, leading to some concern about who is next and whether the military could end up being politicized. What are you hearing on that . Kevin yesterday i spoke with guy snodgrass, the ceo of defense analytics, the former chief speechwriter for former secretary of defense ma ttis. He sputtered at issue of politicization of the military, which has military personnel of all political stripes concerned. This is definitely an unusual develop it. I asked him pointblank if it would lead to chaos or a headache. He said the latter within the defense community, but this is unusual. That said, this is not a surprise. It is unusual in the broader american historical context. It is not unusual for the trump era. Jonathan , great to catch up jonathan kevin, great to catch up as always. This market, you do wonder when the story in bc creeps onto the creeps onto the agenda. They are pretty comfortable with this tension between the two campaigns. Tom i think there is a comfort about the politics separate from the markets, and certainly the recovery you are seeing, but to be honest, everyone else its back to the stimulus debate. I dont hear much about that. What i hear about is weve got to drive the conversation forward with a lot of good guests. On your show, what do you have up today at 9 00 . Jonathan this is an Alan Partridge reference. I feel like we should actually explain to our audience outside of the u. K. Who Alan Partridge is. Would you like me to do that . Tom midmorning matters is just important. Jonathan steve coogan is the actor. He played the role of a failed broadcaster in east anglia. The description of him on wikipedia is as follows. Let me get it up. Partridge is an inept broadcaster whose inflated sense of celebrity drives him to treachery and shameless self promotion, which is why i thought you might get along. [laughter] you go out there, get a drink, and talk about broadcast. Tom on radio and television worldwide, i am shocked you brought that up, jon. Lisa didnt bring that up. Lisa i am watching the latvian gdp. Tom it is equal to the amazon fine. Lisa you dont say . Jonathan we are only 25 minutes into the show. Alongside tom keene and Lisa Abramowicz, im Jonathan Ferro. His is bloomberg surveillance the equity market with a list yesterday. That fades again, down 1. 6 . 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, this is bloomberg surveillance. The s p 500 pretty much unchanged this morning. The nasdaq underperforming, the small caps outperforming. The nasdaq down 1. 6 , and russell futures advancing by 1. 8 . Keep an eye on that right there. Switch of the board again to the bond market. A treasury market that has been whipsawed by different narratives. Think about the range on the 10 year and the steepness that comes back into the curve as well. 30 year yields are higher, 10 year yields are higher, and the twoyear creeping a little bit higher, but anchored by the Federal Reserve. That is going to be important in the months to come. If we get a bit more optimism, that is when the reaction function of the Federal Reserve starts to kick in, and maybe has some room to steepen. Eurodollarrket, 1. 18. If we get close to 1. 20, when does the ecb step back and . 1. 19, 1. 20 . I imagine this is not what the ecb wants to see. Theres two phases to this. The ecb will take 1. 18. We know it hates 1. 20. The next three months in europe are going to be really difficult, and it is the two phases to this. Upfront winter, tough. On the horizon, a vaccine maybe . Better. Tom and the pros are way far apart from where that talk is, euro dollar,. 20 and even higher. Theia scio knock us oslia scio knock us vasilei gkionakis of Banque Lombard Odier joins us now. Yesterday was a massive catharsis out to weak yen. Does it signal the breaking of a trend, or reaffirm strong in into the weeks and months n strong yen into the weeks and months ahead . Vasileios i think it rather shows that we may be in for a period of some consolidation, or even more gradual decline. Dollaryen had a 2 move, the biggest daily move since midmarch. Driven by the vaccine the same time, we had the finance minister in japan who actually said they are with bigfx moves urgency. General, we go on a fundamental basis lower from here, but i think as we go lower , the voices coming out of japan are going to start becoming more and more critical. Financewe do economics, investment, and politics, it does fold into a President Biden. Lets say he is not going to say someone is a currency manipulator. He is not going to put in restrictions against china, for instance. How does your world change with a President Biden . Vasileios i think by far the most important thing we need to take into account is that now the fx world will stop being dominated by the trump related risk premium. By that, i mean a combination of high uncertainty about the next move of what the president is going to do, a return to ,ormality, and very importantly the pricing of any residual risk premium attached to the possibility of trade tensions. That,get me wrong on democrats are quite hawkish on china, hawkish on russia, but it is clear that biden opposes tariffs, and it is clear to me that he is going to go the route of diplomatic maneuvers, building allies. Making a long story short, i think currencies are being held belong,where they and that is their fundamental playing field. They are going to be moved more by the underlying economic fundamentals and less by the political shocks we have been experiencing over the past three or four years. Jonathan lets talk about that and start with europe because the fundamentals in europe right now are not pretty at all. Weve got lockdowns across the continent, from the u. K. To france to germany and elsewhere, and we are looking at an Economic Contraction once again potentially in 4q. What is the call on eurodollar . Vasileios i think eurodollar goes a bit higher from here. I think potentially, we are going to break above 1. 20. Then gains are going to start moderating because although 1. 20 is going to start looking a bit overvalued, having said all that, because you mentioned a number of fundamentals, we need to highlight first of all that the stringency of the lockdowns are not that high compared to the ones that we endured back in march, april, and may of this year. The other thing you need to take into account is that actually, the big rally in the dollar, and therefore the big fall in eurodollar, would not occur during the first eurodollar, did not occur during the first locked down, but in anticipation of it. So i think to a certain extent, that is already in the price of the euro, but what is also very important for eurodollar is what is happening to china. , and is a great reliance it is very clear that china and the asian satellites around it are doing very well. I think europe does well in this environment. Thethan weve touched on several times on this program over the last several weeks. Europe not great, china good. The United States somewhere in between. We had new restrictions in massachusetts, new restrictions in utah, and yesterday we found out new restrictions coming from new jersey. Is that a trained you should be worrying about and starting to think about a little bit more in this fx market . Maybe it is a trend that is being drowned out by the vaccine news of yesterday. I think for Market Participants right now, everyone is trying to work out what they should do with these data points, these reference points that could get worse in the next several months. Vasileios i think it is quite clear from the previous episode we have had that the u. S. Has typically lagged by approximately a month in terms of the rise in infection rates. So it is not really something, the fact that we have started seeing acceleration in infection rates in the u. S. I think what matters from here in terms of the effect is going to be what is going to happen to the global arena and to global trade. In terms of the u. S. , i think the confluence of the biden victory, which is likely to ofmote a large number measures that are hopefully number ofdhere to hygiene measures that are going , and hopefully adhered to i dont think the fx market is going to be affected by a rise in infection rates in the u. S. Because they are already discounting the distribution of the vaccine. Everyone knows it will take some time. It will be here the earliest the Second Quarter of next year that it is widely distributed. But what matters to markets, back in the spring of 2020, was this complete lockdown, this halting of manufacturing chains, of tourism, and now we are not going to get that kind of reputation, i think. Looking to thee timing of a vaccine and a surge in world growth, and they are seeing strength in china, which is the reason the chinese currency is strengthening, to about the same level as 2018. How much stronger can the you yuan candy can the get before the pboc steps in . Vasileios very good question, but i think when we talk about currency strength, we have to talk about the drivers of the and the strength, underlying economic dynamics. I think what i am about to say about china plays out to a large extent about the euro zone the ecb. I think it is quite clear that china in general has made steps towards liberalization of the capital markets. Is going toyuan strengthen as soon as bonds are going to be included in the number of indices. Asset managers are going to start rebalancing to them. Toward the tolerance dollar for renminbi upside is relatively ok. I wouldnt say that the pboc at current levels is getting worried. If we start reaching a point to that it becomes quite not in recovery,the chinese then it would be something that the pboc i am pretty sure has a plan b. Its not forget that pretrade wars, dollar china was trading at significantly lower levels than we are currently at. I think it is within the realm of possibility that we are going to see dollar china at 6. 50 or even 6. 40 that the pboc getting too anxious about it. Jonathan getting closer to it. Great to catch up as always. Staying on top of the price action this Tuesday Morning after a huge move in the last 24 hours, equity futures shaping up as follows. The nasdaq once again underperforming. That spread between the nasdaq and the russell is unreal. We are down 1. 5 on nasdaq futures, up the russell by about 1. 8 . Is the risk where the perceived safety once was just a couple of weeks ago . Tom it is not only that, but absolute or relative return. In different parts of global wall street, you are worried about absolute return. In some cases, it is all right as of it is all relative. I know you are going to discuss this at 9 00 a. M. On your show, the daytoday with jon ferro. I can see it coming. We are going to get the markets open, and then you will move on from there. Jonathan i dont know if the daytoday got a second series or not, tom. You have to watch Alan Partridge to understand all of this. Tom we will do that. You are not the person but that has told me this. On bloomberg radio, on blumer television, we are having a lot of fun on bloomberg television, we are having a lot of fun with this. All kidding aside, a serious political moment of the last 12 hours. Jonathan very much so, and not just down in washington, d. C. If serious moment for a lot of the governors facing what is still a crisis, a pandemic. Joining us next, new yorks Lieutenant Governor. From london and new york, this is bloomberg. Ritika with the first word news, im ritika gupta. Senate Majority Leader Mitch Mcconnell has given President Trump cover for challenging election returns. Mcconnell says the president is within his rights and has no obligation to accept projections based on vote counts that joe biden won. Mcconnell and other Republican Leaders in congress have not congratulated biden since news media called the election in his favor on saturday. Obamacare returns to the Supreme Court today. Justice will hear arguments over whether the Affordable Care act is constitutional. The Trump Administration and conservative states argue that it is not. They say the entire law was rendered unconstitutional when congress eliminated the penalty on those who remained uninsured. If the majority conservative court agrees, more than 20 million americans could be left uninsured. U. S. Regulators could give the boeing 737 max the ok to resume commercial service as soon as next week. The faa is finalizing their review affixes to the aircraft. Boeings bestselling jet has been grounded since march of 2019 following two fatal crashes. For the first time ever, there are now five people on the planet worth more than 100 billion. French luxury titan bernard are arnaulttan bernard joined the club yesterday. 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. Mr. Biden it is clear that this vaccine, even if approved, will not be available to Many Americans for months to come. The challenges still immense and growing. Although i am not an office yet, i am laying out what we expect to do, some of which we can do between now and the time we are sworn in. Jonathan president elect joe biden on a tough winter ahead for many of us, including in the United States of america. This market living in the second half of 2021 seemingly, and a better world. The equity market unchanged on the s p 500, down about 1 10 of 1 or so. The russell small caps doing nicely. Short netflix come along amc. Netflix down another 1. 4 . Theaters had a huge session yesterday. In the premarket, up another 11 . Gives you another idea of that shut down reopening trade and how it is playing out at a stock level. Is what we are trying to do bring you more than the markets. We are looking at economics, finance, investment. As we speakc virus to scientists. Sometimes we speak to politicians. Kathy hochul is the Lieutenant Governor of new york. Zone. A yellow the Lieutenant Governor joins us now. What does it mean as you confront a new virus . Lt. Gov. Hochul thank you for having me back on the show. Yes, i am a embedded in that yellow zone right now. Yellow means caution. It means if our numbers dont start trending downward, we will be in a situation where we are headed to our engine red where we are headed to orange and red, and that means we will have a shut down. We are trying very hard not to reverse the progress we have made on reopening. Our schools have to do more testing. We have limited the number of people at gatherings. It is not the worst case scenario, but a warning to our residents, change your behavior or you will be locked out of your favorite restaurant and you have no chance of going to a Football Game in person this year, and a lot of other consequent is. It is basically trying to say change your behavior starting today. Tom the conceit is the big cities have ample medicine, ample hospitalization. Buffalo, you have seen a Positivity Rate that has just exploded. Are you concerned with Governor Cuomo about the hospitalization facilities available . Lt. Gov. Hochul the good news is we are prepared for far more capacity in the early months of this pandemic, and the governor made sure we had ample supplies of pp and all of the half of ppe in all of the hospitals. I have been in regular touch with the leadership of the hospitals. Their numbers have gone up, but it is maybe 90, 100 people in hospitals in western new york. We can handle that now, but youre are absolutely right. If the number of people testing positive turn into serious cases and has bitals asian is required, youre going to have to get back to eliminating the elective surgeries and a lot of the nonessential procedures that are now going on. We can create the capacity very quickly. Enforcing a lot of experience in dealing with this, and we are able to handle it. Lisa a lot of people expecting perhaps in into the pandemic back dear, but theres a lot of daylight the pandemic next year, but theres a lot of daylight. From your vantage point, how much does this take pressure off of washington to help with the 12 billion bailout for the mta, to help with the unemployment as more people get laid off in the virus counts up, and to help financially Going Forward . Lt. Gov. Hochul i dont think they are related. I dont think that having a vaccine takes the pressure off at all because we have already lost that money. We have already lost the revenues generated from people using our transportation system, sales tax revenues that were not collected, and the extraordinary costs we had to incur just fighting this pandemic and are still paying for now. , thehas not gone away truth is this vaccine will take a while to be widely disseminated and have a real impact. Governor cuomo started working very early on to have a widespread Distribution Plan in the state of new york, one that is quite different from what the white house is proposing, where they say they will give it to doctors and pharmacies, which is great if you live in an area that has a lot of doctors and pharmacies, but large parts of new york city are what we Call Health Care deserts. They dont have a right aid or cvs or walgreens. Where they supposed to get it . We are focused on making sure that communities that have been hardest hit, to make sure they are not left out of the distribution of the vaccine early on as well because many of those individuals in the black and brown communities are the frontline workers, the health care workers, the mta workers. We want to make sure that the plan includes everyone and is fairly distributed as quickly as possible. Jonathan just to finish on a final question about restrictions, we have seen restrictions from massachusetts, from utah, and from the governor of new jersey, mr. Murphy. Phil murphy outlined a plan to close down Indoor Dining from 10 00 p. M. We are familiar with that because it didnt end there. Something else came next. Do you see merit in that approach . Do you think that is a good approach, to allow Indoor Dining to shut it and 00 p. M. . Does that make sense shut at 10 00 p. M. . Does that make sense to you . Lt. Gov. Hochul we have that those have to close at midnight as part of that yellow warning. The more you drink, the more you are out, more likely together at parties afterward. Just analyze human behavior. Your defenses go down the more alcohol you have consumed. The less likely you are to be compliant about wearing masks. We think it makes sense. Jonathan the issue we have here is that it didnt stop there, and it clearly wasnt efficient. You are not at all concerned sense, 00 doesnt make tenant talked doesnt make sense, that you actually need to get ahead of what happens before winter . Lt. Gov. Hochul well, the numbers will dictate that in the state of new york. New york citys infection rate was 1. 8 on friday. It has creeped up to about 2. 5 . So clearly, yes, we are watching those numbers as we head into various zones. The one zone that does require a shutdown of restaurants is the red zone. What we are now doing is limiting the number of people at tables. Everything you are talking about, we are watching what is going on in other states, but new york still maintains that we are the lowest large state infection rate. I think a couple of rural states are lower than us. Well but we want to maintain that. You are right, every thing has to be on the table to consider if we get to that situation. Jonathan Lieutenant Governor, we appreciate your time. This was the experience for many countries across europe as well, dictated by the data, but this is how it started, with restrictions around Indoor Dining. Then it was a more regional approach. They try to stick with that. Then what happened . France, germany, the u. K. , lockdown, bang. At thery is, looking u. S. , how far behind as the United States . We hope the United States doesnt go there, but that is the concern. I look at the ratio to deaths. It is not as grim as the cases, but the death numbers are up. To me, the constraint is hospitalization. Jonathan from new york and london this morning, good morning. This is bloomberg. Markets will probably judge that this is no longer a contested election. Some clarity around the election and some clarity with a divided government, which i is a great outcome for markets. The virus and Economic Growth is more important than the gyrations in dc. The balance is tilting slightly towards excepting a little more risk. Everything is going to be lower and flatter for longer. It is going to get worse before it gets better. A lot of regions may see double dips. This is bloomberg surveillance with tom keene, Jonathan Ferro, and Lisa Abramowicz. To