Current plan. Stimulus will focus on active purchases on longterm loans. A move comes after months of a near fivefold rally in the stock which just soared. 9 00 a. M. In dubai. 6 00 a. M. In london. What is a vaccine . Essentially a hedge against lockdown, if it is delivered in a timely and high efficacy manner. Medley Global Advisors put this together. Starting toion is look like a syncopated move. Vaccine moving into the next trial period is going to help the situation. That is the backdrop to markets. Why are we giving up a little bit of value . Let me show you whats going on. Record after record on the s p rotate, wetime to will ask our guests. S p futures slightly later. At the moment, there is a little prevarication at the Solution Fund for europe. There you go. We are transitioning from a defensive bond market to a cyclical offensive market. Have a look at what is going on. I love the citigroup note on the dollar. As far as they concerned, a vaccine is checking off all the boxes, signposts for a new secular downtrend in the dollar. It could drop by 20 through 2021. Steve englander, this is the tweet from jonathan yesterday morning, Jonathan Ferro showed us what Standard Chartered had suggested. It could be an intrafed announcement where they lump up on qe. It is of course a little bit of a different narrative going on. It is just belting it up. Have we crossed the rubicon on bitcoin . That is the question. Lets talk about the optimism in markets. It is all around the Moderna Vaccine, shown to have a 94. 5 percent effective rate during the late stage trials. What is very important as we 30 days of ad regular vaccine stored in a fridge. Office has that capability. Mindther piece to keep an in mind is our vaccine does not require dilution. Vaccine two, Game Changing narrative. Draw the differential between vaccinend the pfizer good morning. The difference i see is the slightly they have different logistical issues with regards to distributing them. They both need freezers. One needs to be colder than the other during distribution. The idea of being able to keep it in the refrigerator for 30 days and only five days for those are valid point. Companies continue to study their vaccines. Changed mor s numberoderna changed. That is the difference i see. We have been working on the flu vaccine for how many decades . The efficacy of the flu vaccine is what i dont know, you are the expert. How quickly can you deliver that kind of vaccine to the world in 2021 . I trusted as far as it goes. It is an early reader. We are not used to these numbers. This needs to be proven to be the case over longer term. Are a bites different. The flu virus has a rapid mutational rate. From one year to the next the vaccine just does not work. There is a reason that could be the case with covid but we do not think so. Finally in terms of getting vaccines to people, i think the biggest challenge here is not at the moment worrying anymore about how effective these vaccines are. We have taken the first step. The challenge is, how do you get people to come to the Doctors Office . I am going to be one of the first in the queue for that. Georgina, good day to you. About getting people to take the vaccine and the research is not hard. Lets go to risk on mode. We are seeing risk on in equities. Author was not as pronounced on moderna as it was on pfizer. See capacity to reopen priced into a Global Equities at this juncture . Of that pricedot into equity markets already because equity markets have enjoyed a great combination of , so on ain earnings relative basis, among asset, equities look attractive. We have a long way to go to say what is the next leg of vaccine performance. I think Human Behavior plays a part. A word of caution, this is not going to happen quickly. Manus we may as well get the value growth debate out of the way. That will vacillate anyway. You does it take to get convicted . Maybe that is the more salient question. How are you doing that if you are doing that at all . I think it is really hard to segment the market into value versus growth. Growth, yes, growth butvery is great for value, it also means a change in the interestrate backdrop as well. Financials sustainably outperform a shift in the interestrate backdrop. You can get better growth news, but maybe the backdrop does not improve a huge amount. The world has not moved on enough to justify a shift. It is very much sector by sector. I do not know whether you will answer or not whether you are long tesla. Question, but it is an explosive stock and it talks to a host of themes. Where does that fit in the narrative for you . Ev, explosive growth on a stock like that . I think what is interesting is that there are pockets of the market where there have been extreme moves, but maybe also the area of investments that as soon as there is noise around adding to an index, etc. , values tend to have a knock on effect. Prices fall not because of the active community, but the passive as well. I also think you have to be these kindsow much of moves are justified. That is a huge thing going into the new year. This is the value versus growth debate. Gaps, maybe those that is a theme that plays out. I will come back to how do i identify anomaly in a moment. I was delighted, i read the top lines of your notes come along notes, longyour sterling. It is the principle of recovery, is that the way to interpret your sterling trade . Do i look to complement that . Sterling is definitely an interesting one. Norway is driven by oil. There is some support for norway through that higher oil price. It has so many one,enges, brexit being but also still hostage to the Global Growth dynamic. Also, policy. We are leaving the door open to very loose policy in the u. K. Where norway is just edging toward a very low interest rate. Hard because everywhere wants to keep their policy incredibly loose but i think norway versus the u. K. Is one area give might see treasury movable little quicker. That might support the norwegian krone over the pound. So it is all about looking for those cracks, the anomalies and the divergence. Stay with me. Good to have you with me this morning. Lets get the first word news. Campaign is withdrawing a key part of its lawsuit against Election Results in pennsylvania, abandoning demands that 700,000 mailin ballots be thrown out because observers kept them too far away. The challenges against a smaller numberar of ballots, a fraction of bidens lead. The strongest storm of Hurricane Season has hit central america, bringing a catastrophic wind and torrential rain. Enough topowerful snapped trees and make areas uninhabitable for months. Four astronauts have arrived on the International Space station oner a 27 hour voyage Spacexs Dragon capsule. They begin their six Month Mission aboard the orbital lab. It is the first time a crew has been ferried to the space station by a commercial vessel in nasas history. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Coming up on the show, the eu debt plan. Hungary and poland object. Scored an uncle own goal. The big thing was preventing financial collapse. The central bank acted definitively. That is all that was historically important. The mistake is for them to vastly exaggerate their continuing relevance. They lack starting at the zero bound where we are the capacity to provide meaningful impetus to their economies in any way that is consistent with any concept of centralbank functioning. They do not have the capacity to meaningfully affect the degree of inequality. They do not have the capacity to vaccinate people. They do not have the capacity to fight climate change. They need to acknowledge the limitations of their influence. Manus that was Larry Summers speaking at the Bloomberg New economy form. Christine lagarde says more support is needed. Conditions must be kept favorable. With that in mind the Union Leaders are rallying to their finance recovery package. The nations say the conditions tied to their rule of law unfairly stigmatizes their democratic standards. The move will likely force another round of negotiations between the blocks leaders. Myna, i am drawn to favorite words of 2020 have been prevarication and vacillation. Here we are. Throwing a spanner in the recovery works. Do you think the delay is risky if we do not get this Recovery Fund soon, how much of an injurious act would that be . Shame as there is another delay. They are gaining a small amount of ability that they were starting to play on that policy stage a little bit more, going up against the u. S. For example. I think this just reminds us that decisionmaking can stall. There is an issue with the Recovery Fund anyway. How much will we see into the economy . There is a real issue about trust. If they can internally build more trust, so they dont get etc. ,zed in the future, europe could do so much better. Unfortunately it will stall. Manus you like eurozone midcaps. You are concerned industrials look expensive. Tell me why you like the midcaps, but dare i say, would that be of value trade . Maybe there is a nod to that rotation. It benefits from rotation. At the moment you need some valuation support. Think there is a little bit of a green theme that can come through in smaller cap companies, which is quite interesting. Some point, we will get more visibility on the policy side in europe. Sounds the industrials being more cautious, they have become so invested in we dont have technology to a large degree, so industrial Largecap Companies have become Growth Prospects in europe and they have become expensive. Together, atwo slight tilt toward europe, doing that midcap rather than the style level. Manus we have been listening to Larry Summers, a damming indictment of the jumping off point. Limited, limited, limited. I look at Christine Lagarde enter language is about recalibration. Tltrosarrative of better for the european narrative rather than any risk of further rate cuts, which seems to be what they are trying to train us towards . There has been a shift in the balance. Interesting, christine therdes comments on corporate Sector Company has to play their role in this. Unless that is facilitated and prompted, we really dont have any longevity. Shift, and in a think that is healthy. Manus ok. Stay with us. Georgina taylor at Invesco Asset management. Oning up, competing calls the dollar. How should you be positioned into the euro . Contrasting views next. We should not accept or assume it is going to be bad without working to make it better. We have to give the new chance totion a articulate an approach and try to achieve cooperation between the United States and international bodies. Manus bill clinton speaking to bloomberg at the new Economy Forum. Discussing. Jumpsay the dollar could 20 next year amid vaccine optimism. Says watch out for Dollar Strength. , take me through the middle ground. Td securities saying we still have a lot of covid19 infections happening in the u. S. And europe. That is going to slow growth trajectory. There shortterm outlook is you can see Dollar Strength coming through of around 2 . Recovery from that drop we have seen from the dollar index over the last month or so, they do still have a fairly strong callback in terms of their forecast. In terms of the shorter move they are saying you should belong u. S. Dollar against the Canadian Dollar and that the euro is facing Downside Risks as they see new restrictions imposed by governments affecting growth indiced. The bloomberg dollar index has is saying citi expect more falls ahead. They are expecting a drop in 2021. They are saying the distribution will allow the dollar path ofw that similar what happened in the early 2000s according to citigroup. They are saying subsequently what we should do here is go along on the Australian Dollar and the norwegian krone. The commodity linked currencies could benefit if you see that 20 decline in the dollar index. Of course just adding to what would affect the dollar, not but the vaccine optimism, you are expecting the fed to remain dovish as the Global Economy starts to normalize we hope in 2021. Manus we should not be just so riskaverse to the possibility of normalization. It could be good news if they raise rates. That means things got relatively back to normal. Then you can get on a plane. If you get on the big plane youre going to need something to get off the ground. Let us look at the oil markets. It is an optimistic narrative. Up nearly 1 on brent. 44. 21. What will opecplus do to bolster the story . Manus good morning from bloombergs middle east headquarters in dubai. Searching for a breakthrough. Modernas vaccine sends u. S. Stocks to record highs. Optimism is tempered amid fresh restrictions across the United States. Joe biden calls for more stimulus. Pushback. Europes crisis funding hits a roadblock as hungary and poland to the current plan. The ecb emphasizes its next stimulus will focus on longterm loans. And joining the club. Tesla willbecome become the fomcs largest new member after months of speculation and a fivefold rally in the stock this year. Shares soared in extending trade. That really is one of my favorite stories. Elon musk, docking with the space station, delivering a fivefold rally in stock. Are they reals or investors for the long term . We are giving a little back this morning. You have two vaccines to play with. That is the narrative. We are transitioning from a defensive market to an offensive market. There is the vaccine narrative. Rises,vaccine narrative the f comes loosen up a little bit. That could run against Standard Chartereds view that we see. Have a look at the stock market. Berkshire is buying pharma. Abbvie. The dollar could drop by 20 . Taster for me was johnny farrells twitter yesterday afternoon in the u. K. The fed could go between meetings, bump up on qe. You have the dollar this morning, let us roll the board forward. Wci and bitcoin. Wti has bounced off its lows. The proposition from england, from stephen england, as they could deliver a body blow. Qe could be up by 50 . That could structurally change the narrative in terms of what the fed is doing. There are other changes afoot. The 13f filings are in. Among the investment giants reporting Third Quarter holdings overnight, it was berkshire hathaway. That reveals big bets on the vaccines. I got excited about the 13f filing. I got excited about tesla. I got excited about a lot of things. We need annemarie back to bring the calm. You could never steal my thunder. Excitement is the name of the game. Certainly we get that in the 13f filings. Filederkshire hathaway for the previous quarter continued along the theme often has been talking about. That is more caution over the u. S. Economy. There is a lot of vaccine optimism injected into what he bought. Here are the additions he had for the Third Quarter. Merck, pfizer, this came months before pfizer announced the success of its vaccine. Merck is developing a covid therapy, also adding to abbvie and bristol meyer. He also cut his Financial Holdings by a significant amount, a 4 reduction, well on his way to exit wells fargo and jp morgan, slashing those stakes by 96 . Of the teslams story, let us stick with the u. S. Set to join the s p 500. Talk me through the effects. This is a big stock and adding it to a benchmark in one go can be disruptive. To give you numbers, managers who tracked the benchmark would have to kick out 40 billion worth of other stock in the index to make room for tesla. This would of course have a very distorted effect for those stocks and what the benchmark itself does. It is so disruptive the committee for S P Dow Jones has reached out to investors to say, should we add this in two phases . Tesla should help supercharge the index. It has gained nearly fivefold, much more than the s p 500 itself. Should gains continue, that would be likely to fuel it. It also fuels tesla shares. Passive investments track the s p 500. That injection into tesla should only help it rally further. Tesla overnight rallying more than 10 . Elon musk getting 15 billion more dollars worth to his wealth jumping over mark zuckerberg. What a week it has been for elon musk. Us put that in context for elon musk. Great round up there. Lovely numbers, set of data. I dont have this problem at the moment. My net worth has not gone up by 270 , but his has in the space lets have a look at it. Here today. Year to date. On rich go,ckerberg there is a function on your bloomberg. Let us talk about the relationship between the United States and china. It is the lowest in a decade. You have a new administration set to take place in january. The top voices in business and politics are calling on both countries to reject unilaterally. A comparative approach to china was inevitable, but keeping it healthy and not pernicious is vitally important. That will not be easy. Some cooperative to slide into catastrophe. The highest levels of diplomacy at an early stage, they can an open World Economy that works for all. That safeguards a system under the wto and rejects protectionism. When your interests are all over the world, you have to protect your own interests. The American Administration is about to change, but the clock will not be rewound. Able toe he will be anus his mind on developing overall constructive relationship with china. The last four years have been quite to mulcher us. Some forces have been tumultulch u. S. Ous. Posing forces have been a threat to u. S. Unilateralism. I see more regionalism. Manus lets see if georgina shares mr. Schwartzmans optimism. Perhaps a continuation of divergence for growth trades in china . I do not think it is clear. There is some optimism. Administration may lead to more visibility on how that relationship works. I think hopefully over the longer run we get a little bit of better news flow. In the near term, that is just not clear. One feels like there is an advantage laying that out. For us there are still difficulties when it comes to broader asia. I think we have to think about currencies in the context of that, to say may be currencies not the release valve they can be used as tools by individual countries to make sure they remain competitive on the global stage. China for example, we may see a weaker currency, maybe other areas in asia as well. I think there will be more stability. We have a way to go. That is a lot more cautionary than some people are. To theto circle back other piece i was covering, this is from stephen england. An intro fed move. We have not had one of those since 2008 until march of this year. They can be really quite interesting. Get an introyou fed move, you get enough qe by 50 , and targeted measures, credit provisions. This is all about filling the vacuum, isnt it . Filling this fiscal vacuum, filling the reality of where we are in covid. Literally lashing from coasttocoast. You see the risk of an intro fed move. They would have to balance. Creating some panic in the since they have to do more between meetings. Thinks they probably have to do more. Ons is the conversation interest rates, bond markets. The fact we have seen a gradual increase on yields in the u. S. , maybe it is too early. They still need to do more, the vaccine is still the virus is still spreading, the vaccine is great news, but it is going to take time. Maybe we see the influence on the dollar as well. Manus you have a couple of key themes. A longerwant to play term in the inflation narrative. You also see u. S. To european bond spreads moving. Take me through those two, three trades. U. S. Versus european bond yields, the gap has widened. It makes sense. There has been news flow in the u. S. But also the fiscal risk that was priced into the u. S. Bond market going into the election has come down a little bit. We just think over time with that u. S. Exceptionalism, that different growth track and inflation track for the u. S. Than the rest of the world will be overdone. You see narrowing again. U. S. Bond yields coming down. In europe may be remaining stable or edging higher. Different policy measures they are looking to do in europe. Steepener, inflation it is quite interesting the curve is relatively flat. For us is going to take quite a long time to really feel the inflation coming through in the u. S. There are nearer term expectations. A slightly more cautious economic outlook. The fed thatef in they can get inflation back over the longer run. You end up getting that positive tilt to the inflation curve in the u. S. Thank you so much. , fund manager at Invesco Asset management. Let us get you up to speed with your first word news. Angela merkel has failed to push through a slate of tougher restrictions to tackle the pandemic. Major decisions next week after being unable to reach a deal. She is urging people to limit gatherings. Could be the solution for businesses looking to recruit women into senior roles. Women applying for management jobs jumped 20 . Number of women hired for senior positions jumped by a third. Is inanish bank bbva takeover talks with rival to create one of the countrys largest lenders. The move comes a day after bbva announced it was selling its u. S. Arm. Global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. Coming up, the prospects for a brexit deal. We hear from the irish Prime Minister. Manus the new Economy Forum has been on a roll. One of the attendees is the u. K. Calling for more realism in brexit talks with the eu. It says while some progress has been made, there is a lot of work to be done. Irelands Prime MinisterMicheal Martin said the contours of a brexit deal between the u. K. And the European Union are clear to both sides as they struggle to reach a trade deal. I hope there will be a deal but it will be challenging. The three issues that have been there for a long time in terms of access to the Single Market with the u. K. Agreeing to adhere to that language is proving problematic. , the disputeorted resolution mechanism would get behavior terms of the of each party. A lot of progress has been made on other issues. There is political will in the if there is political will to get it done in the u. K. It will happen. Wants a to deal deal. It is irelands view it is in the interest of our citizens and respective economies to get a deal. No deal would be very damaging to respective parties. Canhould do everything we to get a deal as responsible politicians. We have an incoming u. S. Politician who has made his views very clear on the good friday agreement and the importance of not being a half order between ireland and northern ireland. Do you think that makes it more likely Boris Johnson would compromise with the eu . I spoke to joe biden during the week. Clearly very proud of his Irish Heritage and makes no secret of that. I am looking forward to his presidency to be frank. Thebroader issue is ,rospect of a biden presidency that was clear from my conversation with him, that he was going to engage with europe. That is probably more significant. The united me kingdom of values its relationship with the United States, and vice versa. U. S. Under think the the new presidency would prefer a deal between europe and the u. K. I think the u. K. Is conscious of that. I can see an alignment of , sparked by the president s commitment to multilateralism, that might be better, and might enhance the prospects of a deal. You have set in the past both sides have to compromise to reach agreement. Some question about whether the European Union feels like it has to compromise. Given this change of emphasis from the u. S. , does Boris Johnson feel more pressure from that trade deal with the u. S. Being in doubt without a deal, does europe need to compromise at all . I would not overstate that. I think europe once a deal. I think also it is in our interest. Manus Micheal Martin speaking at the new Economy Forum. Moderna one ups pfizer. This is bloomberg. Manus it is daybreak europe from our middle east headquarters. Modernas vaccine is shown to be 94. 5 effective during late stage trials. We talked about this extensively yesterday. You have had 24 hours to think about the vaccine. What does it mean, in addition to pfizer . Does it set the stage for multiples to come . Thing is that people should not assume the Moderna Vaccine is better than the pfizer one based on very early data we have seen. The second thing is obviously the company, the product moderna has developed appears to have an easier logistics requirement with regards to the cold change, the lower temperature it needs to be kept at than pfizers. The reality is we are going to have so many requirements that the companies will have to the vaccines will have to be used at the same time until we get more. What is the biggest challenge . Is it distribution . That is an excellent question. , it is aribution mechanical process for want of a better phrase. We can get freezers put in places, etc. Moreal with bigger and difficult issues than this. People toe convincing their armin jab in difficult. Be the one im sure you and everyone knows somebody who says, i am not going to take a vaccine. The more people who say that, the harder it will be to control the pandemic, but the more important it is that we have a very effective vaccine. The higher the efficacy. The fewer people need to be vaccinated to protect population. Manus thank you very much. The vaccine debate has reset the equity market debate. Are we transitioning to a defensive full market . Market . We are off record highs. The question is, do we adjust to new vaccine reality . 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. Anna good morning. Welcome to bloomberg markets, the european open. I am anna edwards live in london. The start of the European Equity trading day, lets get to your headlines. Globalization picks up pace as vaccine. Grows over but u. S. And european futures slide as america prepares further lo