Economic damage can be avoided. Speaking today, the ecb president Christine Lagarde said there is no doubt the pandemic will have a longterm impact on the global economy. It is clear that covid19 will cause lasting changes to our economies. Ourill not necessarily suck economy potential, if we act powerfully. But it will cause sectoral and societal shifts against which we have to guardian be prepared. Mark according to a new ecb report, governments and Central Banks face a tricky balance between shocking the economy if they and the pandemic support to soon and undermining it if they keep measures in place to long too long. Global news 24 hours a day, onair, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Vonnie it is 1 00 p. M. In new york, 6 00 p. M. In london, and 2 00 a. M. In hong kong. Im vonnie quinn. Welcome to bloomberg markets. Here are the top stories we are following on the bloomberg and from around the world. President elect joe biden and vp elect Kamala Harris are expected to name officially some choices for their incoming administration. We will bring it to you. Hour, tom mcgee, ceo of the International Council of Shopping Centers on what this Holiday Retail reason will look like for brickandmortar stores. As we begin the Holiday Travel season, one estimate has combined 157g a billion. First, lets take a quick stock of the markets. Since we hit down 30,000, we have only been going one direction. The s p is higher by 1. 6 . Best buy is the worst performer. The 10year yield up to 88 basis points. A weaker dollar index. Also a calmer vix. Joe biden planning to elect janet yellen to serve as his treasury secretary, according to all reporting. We asked some guests about the pic. She is obviously somebody who knows washington pretty well, chair the council of economic advisors, chaired the fed, now secretary of the treasury. I am hoping she takes a page from good treasury secretarys like jim baker, robert rubin, aen alexander hamilton, get musical play named after her. She would be inheriting this position in a really difficult time for anybody in that position. These are sobering times for banks, for the markets generally, individuals and corporations. Much more subject to the political whims of washington. For all of her esteemed accomplishments, i dont know how well she can navigate those political waters. Banking, regulatory, these have never been her forte. She is a university of california berkeley trained labor economist, and that is where the greatest appeal is. Vonnie we welcome jeremy kress,. Ormer attorney he is currently the assistant professor of business law at the university of michigan. Our own sonali basak is with us as well. The treasury has all sorts of responsibilities. When it comes to the overlap between treasury and the banking sector, what should we know . Next treasury secretary has a normas challenges in front of him or her. The good news is janet yellen is better equipped than nearly anybody to tackle those challenges. In terms of nearterm priorities vonnie specifically on the intersection between banking and treasury, as opposed to the sec or other agencies . Jeremy the treasury secretary occupies a unique role in that he or she coordinates with the other regulatory agencies. What their regulatory policies are likely to be. The treasury secretary chairs the Oversight Council set up vonnie we may have to jump in. Im terribly sorry. We will come back to you but we have to get to the president elect joe biden on cabinet choices. Nationalelect biden security positions in my administration. It is a team that will keep our country and our people safe and secure. A team that reflects the fact that america is back, ready to lead the world, not retreat from it. Once again sit at the head of the table, ready to confront our adversaries and not reject our allies, ready to stand up for our values. Calls from World Leaders i have had about 18 of them im not sure the exact number, in the weeks since we won the election ive been struck by how much they are looking forward to the United States reasserting its historic role as a Global Leader both in the pacific as well as the atlantic, all across the world. The team meets this moment, this team behind me. They embody my core beliefs that america is strongest when it works with its allies. Collectively, this team secured some of the most defining National Security and diplomatic achievements in recent memory, made possible through decades of experience, working with our partners. That is how we keep america safe , without engaging in needless military conflicts, and our adversaries in check, and terrorists at bay. That is how we Counter Terrorism and extremism. Control this pandemic and future ones. Deal with climate crisis, nuclear proliferation, cyber threats, the threat of authoritarianism, and so much more. While this team has unmatched experience and accomplishments, they also reflect the idea that we cannot meet these challenges with old thinking and unchanged habits. For example, we will have the first woman lead the intelligence community, the first latino, and immigrant, to lead the department of homeland security, and a groundbreaking diplomat at the united nations. We will have a principal on the National Security council who fulltime job is to fight Climate Change for the First Time Ever that will occur. And my National Security team will be coordinated by one of the youngest National Security advisers indicates. In decades. Fresh thinking and perspective and an unrelenting belief in the promise of america. I have long said that america leads not only by the example of our power but by the power of our example. I am proud to put forward this Incredible Team that will lead by example. State, iary of nominate tony blinken. He is one of the better prepared for this job nobody is better prepared, in my view. He will be the secretary of state who previously served in top roles in the white house, capitol hill, and the state department. He delivered for the American People in each place. Or example, leading our double medic efforts in the fight against isis, strengthening americas alliances in the asiapacific, guiding our responses to the global refugee crisis with compassion and determination. And he will rebuild morale and trust in the state department, where his career in government began. He starts off with a kind of relationships around the world that many of his predecessors have had to build over the years. I know. I have seen him in action. Tony has been one of my closest and most trusted advisors. Family,im and his immigrants and refugees, a holocaust reviver who taught him to never take for granted the very idea of america as a place of possibilities. Tony is ready on day one. Secretary of homeland security, i nominate alejandra mayorkas. This is one of the hardest jobs in government, a gigantic agency. The dhs secretary needs to keep us safe from threats at home and job thatnd it is the plays the Critical Role in fixing our broken immigration system. After years of chaos, dysfunction and absolute cruelty at dhs, i am proud to nominate an experienced leader who has been hailed by democrats and republicans. Ale, as he goes by, is a former u. S. Attorney, former director of citizenship services, and a former dhs beatty secretary. Help to implement doc, preventing attacks on the homeland, enhanced hours cybersecurity communities recover from national disaster, combated ebola and zika. While dhs affects everyone given its Critical Role in immigration matters, i am proud that for the First Time Ever the department will be led by an immigrant, a latino, who knows that we are a nation of laws and values. One more thing. Today is his birthday. Happy birthday, man. He is 21. [laughter] as a director of national intelligence, i nominate avril haines, the first woman to ever hold this post, to lead our intelligence community, i didnt pick a politician or political figure. I picked a professional. She is eminently qualified. Cia,r director of the Deputy Director to president obama, and an advocate for telling the truth. Nothing unnecessary. I know because i have worked with her for over a decade. Brilliant, humble, can talk literature and theoretical physics, fixing cars, running a bookstore cafe, all in a single conversation, because she has done all of it. Gets if she gets word of a threat coming to our shores, like another pandemic or foreign interference in our elections, she will not stop raising the alarms until the right people take action. People will be able to take her word because she always calls it as she sees it. I believe we are safer with avril on the watch. She will make a great contribution. As United States ambassador to nominate Linda Thomasgreenfield , a seasoned and distinguished diplomat with 35 years in the foreign service, who never forgot where she came from, growing up in segregated louisiana. Her dad could not read all right. But she said he was the smartest person she knew. First in the family to go to graduate from high school, then college. The whole world literally ahead of her, as her mom and dad taught her to believe. Switzerland, pakistan, gambia, nigeria, jamaica, liberia, where she was known as the peoples investor. Willing to meet with anyone. Student, always treating everyone with the same level of dignity and respect. She was our Top State Department official in charge of african policy during the ebola crisis. She received overwhelming support from her fellow Career Foreign Service officers and cabinett status status because i want to hear her voice on all of the major Foreign Policy discussions we have. My National Security advisor, i choose Jake Sullivan david a once in a generation intellect with the temperament for one of the toughest jobs in the world. When i was Vice President , he served as my National Security advisor. He was a top adviser to secretary of state clinton. He helped lead the early negotiations that led to the iran nuclear deal, help to broker the Gaza Ceasefire in 2012, played a key role in asiapacific rebalancing, and in this campaign for the presidency, he served as one of my most press trusted advisors on foreign and domestic policy, including alpine we develop the covid19 strategy. Jake understands my vision, that Economic Security is National Steer whatnd to help i call the Foreign Policy for the middle class, for families, like his growing up in minnesota, where he was raised by parents who were educators and taught him the values of hard work, decency, service, and respect. To win theeans is competition for the future, we need to keep us safe and secure and build back better than ever. We need to invest in our people, sharpen our innovative age, unite the innovative might of our democracy to grow the middle class and reduce inequity. Do things like counter treaded predatory trade practices. Our finalalk about person today, let me talk about this new position. For the First Time Ever, the United States will have a fulltime limit leader who participates in ministerial level meetings. That is a fancy way of saying he will have a seat at every table around the world. For the First Time Ever, there will be a principal on the National Security council who can make sure Climate Change is on the agenda in the situation room. For the First Time Ever, we will have a president ial envoy on climate he will be matched with highlevel coordinator and policymaking structures to be announced in december. That will lead efforts here in the United States to combat the climate crisis, mobilize action to meet the existential threat we face. Let me be clear. I do not for a minute underestimate the difficulties of meeting my bold commitments to fighting Climate Change. At the same time, no one should underestimate for a minute my determination to do just that. , if i had man himself a former secretary of state who helped negotiate the Paris Climate Accord or a former president ial nominee or former leading senator, or the head of a leading Climate Organization i would show my commitment to the United States and the world. The fact that i picked the one person who is all of these things speaks unambiguously to my commitment. The world will know that with one of my closest friends, john kerry, he is speaking for america on one of the most pressing threats of our time. No one i trust more. To this team, i thank them for accepting this call to service, and for their families, i think you all for your sacrifice. Not do this without you come in my opinion. Together, these Public Service will restore america globally, Global Leadership, and its moral leadership. It will ensure our service, diplomats, and intelligence professionals can do their job free of politics. Alsol not only repair but reimagined american Foreign Policy and National Security for the next generation. They will tell me what i need to know, not what i want to know. What i need to know. Thise American People, team will make us proud to be americans. As more states certify the results of this election, there is progress to wrap up our victory. You know, i am pleased to have received the ascertainment from the gsa to carry out a smooth and peaceful transition of power , soever teams can meet the challenges at hand, to control the pandemic, to build back better, and to protect the safety and security of the American People. To the United States senate, i hope these outstanding nominees received the prompt hearing and that we can work across the aisle in good faith to move forward for the country. Lets begin that work, to heal and unite, to heal and unite america as well as the world. I want to thank you all. May god bless you, god bless our troops. Now i turn it over to our new Team Starting with our next rick perry of state, tony blinken. Secretary of state, tony blinken. So we get my mask on dont get in trouble. Clean the podium. Tony good afternoon. Mr. President elect, Vice President elect harris, thank you for your trust and confidence. It confirmed by the United States senate, i will do everything i can to earn it. Mr. President elect, working for you, having you as a mentor and friend has been the greatest privilege of my professional life. So many people have brought me to this day, from college classmates to bandmates, my colleagues in the clinton and obama administrations, in the senate, and at the state department. I think them all, and i ask forgiveness for my insatiable appetite for bad puns. Mostly, i want to thank my family, sisters, sistersinlaw, brothers, nieces and nephews, my wonderful inlaws the ryans, and especially my wife evan ryan, and our children john and lila. They are truly my greatest blessings. Family, as for so many generations of americans, america has literally been the last best hope on earth. My grandfather, Maurice Blinken led pilgrims in russia and made a new life in america. His son, my father, donald blinken, served in the United States air force during world war ii, and then as a United States ambassador. He is my role model and hero. Lincoln, fled communist hungary as a young girl, and helped future generations of refugees come to america. Are,ther, judith ps builds bridges between america and the world who and culture. She is my greatest champion. In my late stepfather, samuel pizar, he was one of 900 children in his school in poland, but the only one to survive the holocaust after four years in concentration camps. At the end of the war, he made a break from a death march into the woods in bavaria. From his hiding place, he heard a deep, rumbling sound. It was a tank. Instead of the iron cross, he saw painted on its side a fivepointed white star. He ran to the tank, the hatch opened. An africanamerican g. I. Looked at him. He got on his knees and said the only three words that he knew in english that his mother had taught him before the war. God bless america. That is whate are, america represents the world, however imperfectly. Now, we have to proceed with equal measures of humility and confidence. Humility, because as the president elect said, we cannot solve all of worlds problems alone. We need to be working with other countries, we need their cooperation, we need their partnership. But also confidence. Because america at its best still has a greater ability than any other country on earth to gether. Thers to that is where the men and women of the state department, Civil Servants come in. I have witnessed their passion, energy, and courage up close. I have seen what they do to keep us safe and make us more prosperous. I have seen them add luster to a work that deserves our respect, diplomacy. If confirmed, it would be the honor of my life to help guide them. So thank you all, and may god bless america. Antony blinken, nominee for secretary of state. You can continue to watch the comments from the rest of the nominees. Ill hundred mayorkas, avril haines, Jake Sullivan, and john kerry. E go. Is on livr g we return with jeremy kress. Obviously, we didnt get the treasury secretary announcement today but we expected to be soon, expected to be janet yellen. You were about to tell us about the overlap between treasury and the banking sector. Jeremy the treasury does not regulate banks likely. That is the job of the fed, if the ic. However, the anticipated announcement of janet yellen as treasury secretary is meaningful for banks in two ways. It is an endorsement of the approach that janet yellen and her colleagues at the Federal Reserve took toward implementing the dodd frank act. During her time as vicechairman of the Federal Reserve and then share from 2014 to 2018. I think perhaps we could read some tea leaves into the overall financial regulatory approach that the body and administration will take toward banks from the yellen appointment. The second way this is meaningful for banks is the treasury secretary chairs a body called the Financial Stability fsoc. Ght council, this is a council of regulators that was set up in the wake of the 2008 financial crisis. As the chair, the treasury secretary plays a convening role. All the financial regulators on the same page in addressing potential Financial Stability threats, and that includes banks. Sonali what about nonbanks . We know that she has taken some concern about the shadow banking system. Can we expect more regulation there . Jeremy i would anticipate nonbanks to be a major emphasis of the biden administration, including treasury department. Over the past year, we have seen stresses in the nonbank sector, just like 2008. By nonbank i mean money market mutual funds, hedge funds, brokerdealers. The u. S. Regulatory system has never had a satisfactory approach for nonbanks. Fsoc being set up in 2010 was attempt toress regulate nonbanks after 2008, but the Trump Administration has really deemphasized fsoc. Although they have made some noise about exploring that space, we have not seen it in practice. Addressing those nonbank Financial Stability risks is likely to be a top priority of the biden administration, and that will start with reviving fsocs institutional capacity. Vonnie unfortunately, we have to leave it there. Appreciate your patience. We didnt get the janet yellen announcement yet, but it is apparently coming before long. Eremy kress, former attorney sonali basak as well. We should remember, on her last day, janet yellen put the wells fargo cap in. Stay tuned. More next. 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. Mark im Mark Crumpton with bloomberg first word news. The Nevada Supreme Court has certified joe bidens victory in the state. It is the latest setback to president trumps efforts to reverse the election results. The states governor will officially appoint the electors who will cast nevadas six Electoral College votes for mr. Baden, unless a court intervenes. Michigan made joe bidens went official on monday. Georgia certified its results last week. Pennsylvania followed earlier today. Arizona is set to certify its results on november 30. Wisconsin by december 1. The European Union and other donors are offering new funding for afghanistan. A largely virtual pledging conference in geneva through representatives from more than 70 countries in the first event in more than seven years. The eu pledged more than 1 billion in assistance to afghanistan. Like many others, they made their support conditional on the countries decisions for democracy, human rights, and gender equality. David dinkins, who broke barriers as new york citys first africanamerican mayor, has died. Hisad a calm manner from predecessor and successor. Mayor dinkins was doomed to a single term due to a sore murder rate and his mishandling of a ride in oakland. His wife died last month at the age of 89. David dinkins was 93. Bloomberg has determined the best and worst places to live in the coronavirus era. We looked at where the virus has been handled most effectively with the least amount of disruption. Has newlience ranking zealand as the best place followed by japan, taiwan, south korea, and finland. The bottom five include the czech republic, belgium, peru, argentina, and makes account. Global news 24 hours a day, onair, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. Im Mark Crumpton. This is bloomberg. Amanda live from toronto, im amanda lang. Vonnie im vonnie quinn in new york. We are joined by our bloomberg and Bnn Bloomberg audiences. Here are the top stories we are following from around the world. The most important time of the year is here for retailers. Typically when retails finally get into the black, the start of Holiday Shopping. But what will black friday shopping look like during the pandemic . We will speak with tom mcgee. Record losses for airlines. Projections. At the of rotation into value. Is momentum stalling into growth . We are certainly seeing trades with the reopening perhaps back on. Tech lagging a little bit but not as much as other days. There certainly seems to be a rotation. Broadbased advances for the s p 500, as the narrow gauge of the dow crosses 30,000. Every subgroup moving higher. Notable that energy is the leader again. 5 higher on that route, as the price of oil moves about 5 higher. New territory in the range where oil has been trading in terms of west texas, since the pandemic and summertime. That may indicate some new optimism about where things go. Financials strongly higher. Wells fargo up 8 today. Energy is a factor in toronto, too. All the focus will be on this Holiday Shopping season which kicks off this week across the u. S. New restrictions and lockdowns have some worried about what this will look like in which retailers will weather it better. Tom mcgee is the president and ceo of the International Council of Shopping Centers. It feels like an important moment, one where we have a mixed picture across the u. S. In terms of what is open and not, restrictions on shopping. What is the overall level of optimism out there about how this season will do . Tom i think we have a fair level of optimism that the Holiday Season will be a solid one. Our forecast is for one point 1 growth. This is clearly a much different Holiday Season than anything we have experience in the past. Has andack friday continues to be an important day this year, its a different Holiday Season, much longer. People started shopping a lot earlier. Frankly, a lot more people are buying things online. That places pressure on the logistics channels. People will want to shop earlier to make sure they get their package in time. You will see an acceleration of what we have been experiencing over the last eight months, the convergence of the physical and digital world. A lot of retailers have a robust digital channel and will encourage their customers to go to the store and pick those items up, whether curbside or instore. You will see that convergence take place. A lot of uncertainty, however, this season. We have spikes in coronavirus cases. Frankly, the uncertainty around Government Support and stimulus for not just businesses but individuals as well. Are staying closed on thanksgiving. Last year, 38 Million People went to stores on thanksgiving day. Will that impact the numbers . Tom outside the pandemic, a lot of retailers managed to close on thanksgiving, giving their employees a chance to celebrate. That will have some impact but the bigger impact is obviously the impact of the pandemic. We are not going to see the big crowds, nor do we want to see the big crowds that we have seen in the past in stores, Shopping Centers. Obviously, restrictions on crowd. Izes davi you will see people shopping but careful diligence toward safety requirements. Those retailers and centers that do a good job of making safety first and foremost very observant and transparent to customers will do the best. People want to feel safe if they journey out. Shoppers will be much more efficient than they have been over the course of the pandemic. If you are going to a store, you know what you want, you execute that transaction, and leave. You will not see the kind of lingering we saw in the past. Amanda one thing that is causing a fair amount of controversy, however well intended of what is an essential service, what can open and what cannot we see this in canada. Big boxes went because they have groceries but they are also selling other stuff. What is the best way for policymakers to think about essential versus nonessential . Retail in general has done a good job of being respectful, diligent in implementing the social distancing requirements and other safety requirements, including requiring in many cases customers to wear masks. Certainly, social pressures around customers to want them to wear masks is pretty significant. See retail into general stay open, but a strong requirement to maintain Public Health and safety. This is by far the most important time of the year for this industry. This is an industry that has been at the epicenter of the crisis. It would havenow, significant consequences particularly for small businesses. I will say, i think it is unfortunate the government has not stepped up yet to provide more covid release. I think it is essential that they do. Quite frankly, yesterday, the day before, it should have been done already. As we enter this calendar year, it is absolutely essential the government step up. There are so many businesses, not just our industry but in general, small businesses, restaurants that rely on the government to step up right now, as they should. You have forecasted positive gains year over year. Maybe some of that on food and other things. The Shopping Centers themselves, do you anticipate seeing them go away by years end . Tom no. There is certainly a lot of pressure on the industry, and that is why support is so important, but i dont anticipate any kind of significant alteration, mix by the end of the year. Going into next year, if we have a continuation of the crisis at this level without Government Support, i do worry about the health of the industry. We will have bacon Shopping Centers and vacant Shopping Centers and tenants around the country. That is why its so important for the government to act. But i dont think anything will happen in the next couple of weeks. Vonnie thank you and good luck on black friday. You have a lot of work to do on those days. International council of Shopping Centers ceo tom mcgee. The Airline Industry is also heading for one of its worst years on record. This is bloomberg. Vonnie the Airline Industry across the globe heading for its worst two years on record. The International Air transport association estimating here is combined 150 7 billion in 2020 and 2021. We spoke earlier with the director general and ceo. For the nextte seven to 10 months in terms of cash injections from government by any means, excluding debt, is to 80 70 billion billion. That is what we need on top of what has already been injected into the industry, around 160 billion from government. We just saw a share price chart of what has happened with the travel sector. Share prices of many of the reallyes have gone up strongly over the last few days. Why should government be putting up more money when the Financial Markets seem to be prepared to invest in this space again . Why shouldnt these airlines go to the markets on the credit or equity side and raise more . Airlines will have their own financial strategy. What we can say is the need for cash in the coming seven to eight months is around 70 billion to 80 billion. It is a strong need for cash such a we are in difficult situation due to the drop in traffic, major drop in revenues. We will have lost by the end of 2021 a year of revenue. More than 800 billion. Undern imagine the stress which we are in terms of cash. The reason we need additional Government Support. Part of it could be provided by the market. We think the markets will not finance everything, all the needs that the industry request to survive. That is the reason why we are asking for additional Government Support. Is wiseally, i think it Investment Strategy to confront what they have already injected, to put the money for the industry to be ready and recover and survive, and then they will shares to resell the make a better use of public money. That is an important point. Started seeket is the light at the end of the tunnel. I wonder if the industry shouldnt be taking greater advantage of this. I understand it will be a dark winter, we all see that, but nevertheless, the vaccine story does seem to be dividing an ideal of the timescale that we are now operating. We know how long the tunnel is. As a result, im wondering how that changes the dynamic in terms of how the industry will seek to survive. Awaredre you must be that our processes for next year are based on a vaccine available 1, which is not insane. It is pretty reasonable. You need to have a significant proportion of the population vaccinated for the countries to be comfortable, to lift travel restrictions, and do whatever they can to help restart air traffic. That was the iata director. I want to start with what guy was getting at. Arguably, the stocks are starting to show that there are believers out there. Should governments be putting money into these companies, or should they be left to Market Forces and devices, if they can . Ofi think in terms believers, they are mostly factoring in the reality of bailout funding that the major carriers have already received, the fact that they are likely to carry on getting that. Decidednts have already that Major Airlines cannot be allowed to fail, will get funding at a certain level, at least going forward, combined with the fact that the vaccine is on its way. Said at the end of the interview is very important. Thatnounced the notion just because vaccines are being rolled out next month and beyond does not mean that the air transport market will certain suddenly revived. We have seen, certainly since the start of the pandemic, nation have adopted extremely rigid rules about who can fly, about levels of infection. Thatear in the industry is those rules will be applied well into next year in terms of who has had testing, how many people have been vaccinated in a given population. So there is no expectation of a quick rebound. The reality is, according to turn the industry will not cash positive until the Fourth Quarter of next year, so one year from now essentially. To comey of more pain in terms of losses accrued over the winter. Was going to say, distressed investors are looking their chops over the airlines, deciding whether to get in now or later. Airline chiefs themselves are terrified. Stocks are down 40 since the beginning of the pandemic. How many will we see go into bankruptcy, no matter what the forecasts say . Christopher it depends on how you measure it. About 50 have gone so far this year. 42 have filed bankruptcy protection. They see the figure rising to 70 at least through the end of the winter, basically saying that carriers are desperate to get through easter when traffic traditionally revives. If that can be combined with an effective rollout of a vaccine in major economies, then they will be on the road to recovery. But we can certainly expect victims before that point. Really, it is a case of battling through the next six months, hoping to be there on the other side. Amanda christopher jasper, great to have your input on this. Coming up, we have been watching a rotation into value. It continues. We will explore further with a look at the data. This is bloomberg. Amanda welcome back. There is a lot of talk when it comes to the stock markets these days about the rotation in leadership. It has been a longstanding leadership and we look back historically. When the rotation truly comes, it could be a big shift. Cameron crise is with us now. Your column on the bloomberg is wonderful because it actually walks through with a lot of data, looking at this historical issue here, smallcap versus big tech. Walk us through the thesis and why you think this could be a pivotal moment. Cameron it is quite interesting. Obviously, small caps have underperformed against large caps generally. Nasdaq 100composite, specifically, for many years, but ultimately that is the infamous trade, as the growth versus value trade. The nasdaq, the large caps are the growth vector, small caps are the value factor. Vector. We have seen a massive upper performance in the past 15 years of the growth of large cap vector versus the smallcap vect or. What is interesting, we peaked at the beginning of september, pulled back since then about 17 on the nasdaq versus the russell 2000. 70 seems like a reasonable correction. 17 seems like a reasonable correction. If you go back and look at the annals of time, the nasdaq started in 1995. There have been nine corrections of at least 15 . Eight of those corrections topped out at 18. 5 . Area,are close to that where if this is going to stop, it should stop soon. The exception to that, of course, was the popping of the dotcom bubble earlier in the century which saw a pullback of 70 in the nasdaq versus the russell 2000. It is a really interesting technical juncture that we are at here. Vonnie real quick because we are already out of time, the massive size of the gains of growth, we will not see all of that reversed and valley be the beneficiary of all of that, are we . Cameron i dont think we are going back to where we were 10 or 15 years ago. A lot of these Growth Stocks are underpinned by earnings a lot more than they were 20 years ago. That being said, there is nothing to say that we cannot see a couple of years at least of outperformance at some of these smallcap value names, particularly in the context of a normalization, eventually opening as the vaccine permits us to look beyond covid. Vonnie lots of valley managers cheering you on. Value managers to review on. For myself in new york and amanda lang in toronto, see you tomorrow. 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. Mark i am Mark Crumpton with bloombergs first word news. President elect joe biden announced several key cabinet positions today. Of policyced the team experts he plans to nominate, led by Antony Blinken as secretary of state. He has promised to seek unilateral solutions to Climate Change and armscontrol. He said his team is looking forward to the United States reasserting its role as a world leader. President trump made a brief appearance today. He hailed the dow industrials passing 30,000, calling it a sacred number. Mr. Trump said he was thrilled with progress toward developing vaccines for covid19. The president did not take questions and did not mention the election. Mr. Trump has refused to concede to mr. Biden, although the white house has given approval to begin the transition process. Some Senate Democrats are calling on you to to take down videos with what they call misleading information about the election. In a letter,