19,000, but is the best still yet to come . Proceed with caution. Soundingone analyst alarms over sky valuations. Lets get to those evaluations. We start back with all u. S. Markets. Big day on wall street. The dow topic 30,000 for the first time. The s p 500 index also jumping to a record. Russell 2000 also. Abigail this reopening reflation trade back on, bringing record highs and big round numbers. Lots of euphoria over the market looking toward the second half of next year. It was like and everything rally for different stocks. Tonically, the only index sit out was the biotech index, theuse ironically it is vaccine and medicine people are so excited for smallcap banks up 5. 3 . Yesterday, apple was kind of precarious. Technically crossing some downside levels, but not so much today. Relative to the real reopening, some cruise lines, airlines sharply higher on hopes that once the vaccine gets circulated into the world, people will be traveling again and also gambling at the resorts. These are some of the top stocks. Taylor one day, we are hoping we can travel here. We want to go across asset reflationu saw that trade and lift up in yields. Thisuch does that tie into reflation trade as well. Abigail there is this sense that there is some reflation and inflation, a normalizing environment and the economy. On the other hand, you have yields not going to high. Yields still below that crucial 1 level. Helping nott is just the banks and energy, that cyclical trade. Lier, dan venture really he said that low rates have been teslas. The amazons and maybe we are just off to the races. Taylor commentary has been made that this is a comfortable rally, but big tech not making highs either. Is this creating belief in this because you are doing this but not the expense of tech . Abigail today, tesla right in the middle of the pack. It is this seesaw. If tech were to drop, that could really be an issue for the broader market. Energy is only about 2 of the market. A very healthy, broadbased rally on the day. Doolittle,gail always appreciate your insight. After weeks of inaction, the chief of the General Services administration acknowledged the up. At biden was winner of the was the apparent winner of the election. The Trump Legal Team also suffered fresh setbacks. Gregory, talk to me a little bit about that transition. In the 1 00 hour today, getting key updates. After three weeks of a delayed transition because President Trump refused to concede losing to president elect joe biden, now we are off to the races and we have a transition that looks like a healthy transition. Form a leap forward formally putting forward some members of his Transition Team. Beginning to hire people. And we got word this afternoon that President Trump has signed off on president elect biden receiving the president daily briefing, which is the most topsecret intelligence product we have in the united states. It looks like we are moving presidency oniden january 20. Taylor bear with me here. , talkingrlier today about with ian bremmer talking about this transition, this theme of America First, it came after eight years of obama. Returning to stability, some of the fixing what is broken. Thiswas the rise of America First theme to begin with. It has only been four years since democrats have been out of power. You have to go back to george h to find another president taking over for another president of the same party in a shorter period of time. They are all getting promotions to the cabinet level positions here so far. It looks very much like what an obama cabinet might look like in an obama third term. It philosophically is aligned with those obamabiden principles. Areign, multilateralism, rejection of America First. You heard it in trump come out reiterate the phrase of America First, saying it away be a mistake to go from that principle. Taylor we got a nomination here of treasury secretary for janet yellen. That is at least what the markets are still focused on, the stability and relationship with the Federal Reserve that she provides as well. What do you want to see from a treasury secretary janet yellen if indeed that is confirmed . The difference the job of isreasury secretary different than a fed chairwoman. She will be constrained by whatever resources Congress Gives her. To look for a stimulus package either in this lameduck session or as we get into the new year. We have seen in the week the current treasury secretary Steve Mnuchin tying her hands a little bit by trying to claw back some of the lending facilities given to the Federal Reserve in the cares act earlier this year. She is, the markets seem to think, a very competent, mainstream leader. She is acceptable to the oppressive wing of the democratic not golden to them. Them. Not beholden to taylor with hopes of a vaccine and reopening, did we learn anything new about plans for Vaccine Distribution from a president elect biden . That is second to perhaps only the president ial daily briefing, a lot of people looking for this successful handoff of the Pandemic Response be for the biden team to read in on what the distribution plans were. Some of that was public on a state level if not a national level. That is something, as these Transition Teams begin to visit corresponding agencies, that is one of the first issues that you can expect the biden transition to be honing in on to make sure they understand how the Distribution Process is going to work. Taylor what do you expect to be the next step we will hear from the Transition Team and of course waiting for that ever elusive stimulus. The guidance that we have from the biden transition at this point is to not necessarily expect any more announcements this week. One of the things we can look forward to is maybe the president taking a Holiday Weekend off. I would expect it to be into next week where we would get more of the Economic Team in place from the biden administration. What we would be looking for is the same as with janet yellen. What is the difference between the moderate and progressive wings of his party . And then, we will just have to see what the president elect tells us about what his plans are. Oneave a tradition of only president at a time. President trump will be the president for the next just short of two months. While there are talks going on to try to have a smooth transition of power, really any sort of work on the vaccine response and pandemic is going to be President Trumps for the next few weeks. Taylor we think he was always for your time. Piercedp, bitcoin is 19,000 for the First Time Since 2017. We are speaking with dan moorehead, who called the inrency a screaming buy 2018. This is bloomberg. Taylor it coined extending that rally today, soaring through 19,000 for the first since 2017. The cryptocurrency is approaching an alltime high as many traditional investors. 28 wider acceptance of crypto. Oorhead, whodan m has been bullish on bitcoin. It is great to have you and thank you for joining us. Talk about some of the latest price action. Through 19,000, approaching that record high. Does this scream to you peak sell . Dan no, i think we are in the midst of a bitcoin shortage. Every four years, the supply of bitcoin is cut in half. Case, it is doing it right when corporations like square and paypal are offering very easy access to hundreds of millions of people. Buyingh app is already 40 of the issued bitcoins. Paypal looks like they are all of theing 70 of newly issued bitcoins. The two of them combined are buying more than all of the new supply. Supply and demand has to equilibrium eight. Ilibriate. Equ taylor do you think it is more demand or less supply . Dan i think it is demandside. Supply is easy. It is exactly 50 of what it used to be. On the demandside, we have statistics that estimate paypals demand. But, there are so many new Institutional Investors. You featured some of the most famous global macro investors recently investing in bitcoin. You bring in all of the other Institutional Investors. Buy a very finite number of tokens. Taylor does that legitimize it, the Institutional Investors . Dan i think it does. In the early days of bitcoin, it was kind of edgy. Kind of hard to bring to your investment committee. Now we have great custodians, a lot of Good Management firms. Easier tot so much bring it to any investment committee. Curious how you see it as a real store of value like a replacement for gold, versus a real currency . Dan that is a question people love to ask. The way i think about it, it is basically the miracle whip of finance. It is well stored, payment, currency. It can do property titles on the blockchain. Latched onto one versus the other. It is doing a great job versus digital gold. The gold market will happen over decades. Payments, smart contracts. The important thing is we can do so many things. It is not just one or the other. During march, peak selloff, bitcoin was not a store of value. Do you expect that to change where it could be even in heightened periods of volatility. Bitcoin still has quite a bit of volatility. March,economic crisis in it went down with everything else. That happened a few times in its history. Theres been five times when bitcoin has been highly correlated with the s p. This time, everyone kind of sold everything and it went down together. But now, bitcoin is up. It is completely disconnected from oil, commodities, stocks, other things sort of trading together. Taylor the last time on this program, you call today screaming called it a screaming buy. What do you see for 2021 . It has been going up at a compound annual growth rate of 209 , that is my forecast. 50,000 or more by next year. In the normal market, that would be crazy i made has been tripling every year for nine years on average, so that is a good estimate going forward. Taylor i am interested in the role that central bankers play in this, if they legitimize it . How do you think about the role of the central banker . Dan they do have huge advantages. The advantages that cryptocurrency has over fiat money, it is almost instantaneous descendent. Fed wires take three hours to send money in the united states. It is borderless. Central banks realize those are useful features. Some like china are doing it very aggressively and are going to go live. Ultimately, every country will have to have a Digital Currency strategy. If this is aurious bitcoin issue or a blockchain issue, that encompasses ether eum as well. Dan it is blockchain as a whole. A lot of people use bitcoin as kind of a catch all phrase for all of the brands of blockchain. Ethereum is doing even better. It is up 365 year to date. The entire market cap. The rest of the industry is even doing better than bitcoin. Dan morehead, always appreciate your time. Coming up, amazon trying to hire more workers through attractive bonuses to meet the Holiday Season demand. With it comes yet another labor strike. This is bloomberg. Taylor amazon facing more backlash from employees after offering new hires 3000 signing bonuses while giving current employees 10 thanksgiving vouchers. Spencer, great story that you are writing. A must read on the terminal. I wonder what this tells us about continued relationship strife between management and employees . There is constant struggle strifeazon to minimize among its workforce. ,hese are difficult jobs disenfranchised workers. Of fanned things up at a difficult time. A lot of the existing workers felt like this is kind of a slap in the face to see new hires getting bonuses and they get a 10 turkey coupon. Taylor a lot of customers posting about this. What you hearing from workers . , i thinkime workers what really concerned them is when the pandemic first hit earlier this year, amazon instituted across the board to dollars pay raise is that work equally apply to everyone. Applied toe equally everyone. Those were taken away over the summer as covid was receding. Now that it is flaring again, workers are hearing about more cases not only in their community but also where they work, there is a question, should we get this raised back . Workers, bonus for new that was a big thing that a lot of the workers were talking about. Taylor it really speaks to amazon, that they need workers. We are coming up on peak Holiday Shipping season. What is the demand for labor at this moment for amazon . The demand for product is off the charts. Consumers are flocking to amazon, going online for all of their Holiday Shopping needs than ever before. Doublewth rate will be previous years. Year isd thing this just the covid factor. You do have a a lot of people looking for work. It is that fear factor. A lot of people sitting on the fence, they are worried about taking a job if it increases their exposure. That is why amazon felt the need to lure more people back into the workforce. Taylor it comes at a week that workers in alabama had positioned to form a union. How have they managed this kind of strife . Ouro Amazon Warehouse is unionized in the u. S. Warehouses are unionized in the u. S. They have some unionized in europe. Line, is balancing that how much do we have to pay the workers are not unionized. Make it good enough but not too good. They camef years ago, out with 15 per hour. Themf those things help diminish the likelihood that people want to form a union. Taylor thank you for joining us. Stay with us because it is a look at Small Businesses just ahead. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. 160 days from now, this is going to be a different country. I believe more people are going to take the vaccine ban say they are. I think the next thing people do is go to dinner. Ic boomtown this summer in the Restaurant Business. Taylor love that show. That was john taber, hospitality expert, outlining his optimism for the Restaurant Industry. Hospitality, one of the hardest hit sectors during the pandemic, has seen a slow recovery from prepandemic levels and has been increasingly threatened by the uptick in virus levels and restrictions. Is it as bad as it seems . Isaacman iis jared all, ceo of shift4 payments, the leading payment operator for the hotel and Restaurant Industry. Great to have you on the program. How has the decline in business been for you given the exposure to restaurants and the hospitality sector . Jerry thanks for having me. Before, we taffer have collaborated him collaborated with him for a long time, and i share his optimism. After the vaccine, people are going out to dinner. Shift4 processes payments for businesses across the country, in better times about 200 billion of payments. A large portion of that lives in restaurants and hotels. March the industry was entirely crushed, as was virtually all present commerce in the u. S. Outside of a supermarket. Payment levels dropped close to 80 from precovid levels. There has been a very steady recovery. Did almost started immediately in april, mostly because people have to eat. They were not eating in restaurants, they were doing takeout, delivery, and curbside. Hats off to Small Business commerce for adapting. They did a great job. That has continued to accelerate. Of late, november, cooler temperatures, warmer weather states are faring better in maintaining strong levels, whereas urban areas in cities like new york city would have seen some sort of decline as temperatures got lower. In terms of broader recovery, shift4 had yearoveryear increases in payment volume, close to 20 , in october. Which isnt a representation of the hotel and Restaurant Industry as a whole, it is more representative of businesses adapting to contactless forms of payment. Point you bring up the that cash is more dirty than some contactless payments. I am wondering if the shift we have seen, some of that was already underway. Have we just pulled forward demand we were going to see anyway a year or two down the road . Jared what we referred to as the cash to credit conversion is something our industry has been following for a long time. That was happening before covid. It has accelerated now as people favor more contactless or qr code based transactions, which has become popular. These i recently said visa debit transactions were up 20 . They also have areas down due to covid, but that speaks to the cash to credit that is accelerating. Taylor you have huge insight into the behavior of the customer. Aredotally in new york we talking about shutting down Indoor Dining again, whereas florida is open. Where do you see regionally pockets of recovery starting to form within the Restaurant Business . Jared almost through all of spring, summer, and early fall it was virtually uniform across the country. There are regional areas of interest. There were parts of new jersey and connecticut that were up yearoveryear in payment volume through the summer and fall, mostly a trip you did to commuter business that was not happening in new york, where they would have spent, and was happening locally. Major citiesother are still quite depressed. Florida and warm weather states have held strong, even now, probably starting in mid april. Today if you look at florida, texas, there are current areas almost on par with precovid. Taylor we had a conversation earlier about bitcoin. Do you see bitcoin as becoming an accessible form of payment . Jared its a great question. I think it is a totally worthwhile investment for individuals. I dont know how mainstream it is going to get as a form of currency. If you are a pizza shop owner and you want to sell a pizza, you want to know you are getting your 12. It is hard to know that when you are getting paid in cryptocurrency. If you are a big crypto consumer and you love the currency, the last thing you want to do is pay 12 with something you think might be worth 1 million a year from now. There is a lot of challenges with it becoming mainstream currency. Taylor lets get to the heart of your business. You recently acquired a company, 3d carts, similar to shopif vy. What does that do for your business . Jared we have 200,000 customers in the united states, the bulk of them restaurants, hotels, and specialty retailers. We have little exposure to transactions and that is not because customers are not doing them. They almost all have a web presence and that is a payment volume we are not able to capture. Acquiring 3d cards brings a big capability. Make those capabilities available to our large existing base of customers. 200 billion we did dollars payment volume before, what is that going to do when we can capture the ecommerce business . We also have Software Partners interacting with businesses all the time and dont have ecommerce capability. Is therd camp is 3d car ultimate underdog because it is comparable to the 300 billion market cap behemoths and we are able to be disruptive in our resources to enhance the Value Proposition and whittle away share from some of the big giants. Taylor thanks for joining us. Jared isaacman, ceo of shift4 payments. Is this the time to sound the alarm on Technology Stocks . They have been a standout performer, but a huge rally in Companies Like zoom has one strategist saying there is a risk investors will be disappointed. Joining us to discuss is bloombergs ed ludlow. Overvalued . They are basically raising the question, with valuations so high with tech stocks, particularly software stocks, what is the risk that the rally this year doesnt continue . What if they dont live up to the hype. He told bloomberg there is a lot of complacency. On a scale of one to 10, complacency is at a nine and the fear index is zero. He has flagged two companies where he thinks valuations are extreme. Cooper and zoom. So many of us familiar with zoom because of the pandemic. Doubled thisk has year, 693 times 2021 earnings estimates. Zoom is up 530 this year. Outquestion is, as we move of the pandemic phase, optimism in the market around a vaccine, what happens to companies that saw fortunes rise during the pandemic . What happens when we move on . Taylor what does happen to Companies Like zoom . Are we structurally forever going to be in zoom meetings . For the minute there is a vaccine, i can finally see your nice face . Ed a lot of the messaging is based on future growth. When zoom reported earnings last quarter, they reported the second largest surge in sales of any company on the nasdaq 100. The second half of this year, people were still doing videoconferencing in terms of business and being at home with love ones, things we will probably see over the holiday. In coopers case, the recession caused businesses to cut expenses. Thats what cooper does, a cloudbased expense platform for businesses. Out of the pandemic, will they still find red find relevance and how long will investors assign value based on the future Growth Profile . Taylor what is the future Growth Profile . A lot of managers have talked about the bullishness still out there, evident in a market hitting record highs every day. Ed the bank of America Global Research survey basically finds pretty extreme bullishness in the market, particularly around tech, which it describes as the most crowded trade. It is similar to the conversation with the previous guest. What covid has done is not just help Companies Find relevance, but also accelerated a transition that businesses had started to dip their towing into, for example cloudbased services, things that are more efficient. There is an expectation bullishness will continue. But that sets us up for the potential we could see a rally end. Taylor finally, in a little bit of a curveball, we talk about fresh record highs on the stock market, but it is one of the most hated bull markets. There are days when you get fresh record heights but tech may be not participating in that. Is that helpful . Ed it is also a question of rotation and a move to value. The market can be fickle. On days it is optimistic about the vaccine, that can quickly change and the rotation story goes out the window when it is focused on new virus case counts. Although we have seen moves stocks, therecap is always the chance things get worse before they get better and that could impact the market as well. Taylor i am still hoping you will give up some screen time for some real face time with me one of these days when there is a vaccine. Thanks to ed ludlow. , this mask phase is still having its moment as we approach the end of 2020. We hear from the ceo of one Insurance Company about their journey to go public and why he decided to take this route instead of the traditional ipo. This is bloomberg. Taylor car insurer metromile going public by jumping on the pac,trendy bandwagon, sa which would have been unusual a few years ago. For more, now metromile ceo dan preston. Spac versus a why traditional ipo . Ed what we have seen with spac is an opportunity to go public alongside a partner who can deeply understand your business and bring the Company Public in a way that explains the value of the company in the right kind of way. Companies have found a partner that deeply understands insurance. As we spoke with them initially, it was a great match because they understand the business and we were able to describe the value of our business. Taylor we spoke with carson block, short seller of muddy waters, who has said that spacs appear overvalued because of the timeframe. Two years or it does not get done, so that creates a conflict of interest where you are up against the clock. Do you feel your partner is truly invested with you or it is just a good company at the right time . Dan good question. I do think as you evaluate spacs, it has to be thoughtful about who the partner is and what the intentions are. The team we are working with has done several stacks successfully and we are at the beginning. I think both with their experience and the timing has given us confidence this is based on the true value of the company. Taylor talk to me about the business. How do you attract new customers . Do you need to boost the marketing spend . Dan we offer per mile insurance. 65 of drivers drive less than the average and we save those customers 47 on average. We acquired customers through a number of channels, whether online through traditional means or in unique ways beyond that. We offer what is called right along, an opportunity to estimate how much you would save with per mile insurance after trying it for two weeks, and earning Additional Savings by being a safe driver. We are partnering with auto manufacturers to understand how much somebody drives and offer them a personalized rate that shows what they would save with our product. Through that and the Market Expansion we expect over the next few years, we think we are going to be moving into the remaining 42 states we are not in today, which will increase our total market size by about three. Taylor are customers driving or sheltering at home . Dan at the beginning of the pandemic, everyone started driving much less. Since then, driving has recovered a fair amount. Whats interesting is the dynamics have shifted entirely. 40 or more of people are now working from home and we expect some of that to continue moving forward. I think trends like this are here to stay. People will be living close to work, taking public transit. There are a number of reasons why you are a low mileage driver. It has been an interesting and validating component of our product that now people are working from home, they are saving without having to change anything about the product. Taylor a lot of insurers are driven by data. What makes your data different . Dan i think fundamentally it is about how we have built the business from the ground up. We have built this company deliberately with the use of technology from day one. The level of granularity and understanding has allowed us to not only offer per mile insurance, which is challenging to offer at scale because it cannibalize his the profitable portion of the business, but more important it has allowed us to build a Customer Experience for the business. It is more profitable than a traditional insurance carrier would be able to offer because we are able to automate. Our claims experience, traditionally a huge hassle for effective you can get and instantaneous approval by entering information, and we validate that. Taylor profit building is what investors like to hear. Thank you, metromile ceo dan preston. Onlog devices fell 2. 6 tuesday despite fourthquarter results that beat expectations and an outlook many analysts considered strong. Our conversation with the ceo, next. This is bloomberg. Taylor vincent roche, Analog Devices president and ceo, expects the Semiconductor Industry and his business to experience growth in 2021. I caught up with him and discussed what he characterizes as a broadbased recovery. Vincent the first half of fiscal 2020, which finishes at the end of october, was about health care, data center buildout, advanced communications, 5g. That has persisted through the year. In the second half of our fiscal year will increase the confidence that was registered sectorpmis, we saw the on a business to come back into action. The fourthquarter, automotive came storming back. I think with gdps getting back into positive growth again, my expectation is the strength we are seeing now will carry into the new year. I would expect 2021 will be the growth year for the center for industry as well as adi. Theconductors are foundation for the entire information industry. That reflects on the positive outlook for the industry as a whole. Taylor on the outlook for returning to growth levels, are we back at prepandemic levels . When will we get back . Thinking of consumer focused segments like automotive, for example. Vincent our Fourth Quarter actually registered the Auto Industry has been suffering for several quarters, but we saw in our Fourth Quarter our revenues reached, in the automotive sector, precovid levels. I think there is a couple of things happening. We are beginning to tame the pandemic. Confidence is emerging in the economy. I think as well the usage of cars will probably see a decline. Use of cars will increase, we see a decline in public transportation. Couple of countries in asia registered alltime record sales in september. Some is a catch up and some is a decline in behavior. I think we will also see a search of electric vehicles in the next several years. It is still a small part of the overall automotive sector, but that is likely to see an exponential increase. Taylor how are you set up for that . Tesla, 500 billion valuation. Evs are what we have been discussing all week. Electric vehicles, how much of it is going to be part of your business . Vincent today we have a leading position in the design and manufacturing of very precise Battery Management control senses that enables us to , right down to thousandths of a volt, and enable the battery to move megawatts of power in a short time in a controlled way. That is the trend. The solutions we have been providing for many years, these Battery Management technologies, they are the foundation of the power plant of the electric vehicle. It is a relatively small part of adi today, but my sense is it will grow to several Percentage Points of our revenue over a tenyear period. Analog devices ceo, vincent roche. Hasa cofounder elon musk become the worlds second richest person. According to the bloomberg billionaires index, his net worth sword to a little less than 120 billion total. He passed bill gates and trails only jeff bezos. He ranked 35 at the start of the year. Thanksadded 100 billion to an incredible 523 rise in tesla stock. Teslas market cap, now 500 billion. That does it for bloomberg technology. Bloomberg daybreak asia is next, so stay with us. This is bloomberg. Businesses today are looking to tomorrow. Adapting. Innovating. Setting the course. But new ways of working demand a new type of network. One thats more than just fast. You need flexibility to work from anywhere. And manage from everywhere. Advanced technology. With serious security. And reliable coverage, nationwide. Forwardthinking enterprises, deserve forwardthinking solutions. And thats what we deliver. So bounce forward, with comcast business. Haid we are counting down to asias major market open. Sherri coale and welcome to daybreak asia. Asia will look to build on wall street again. Thedow topped 30,000 for first time. The s p 500 hits a record while oil is at a march high. Hong kong motors new virus