That would be a game changer. Bitcoins market cap is currently only 3. 1 the size of gold. As bitcoin and gold struggle between the risk off, is gone, copper is not hitting a sevenyear high. It looks a lot like that spike we see in early 2000 at the beginning of that chart, that is when china started commodities super cycles. Maybe there is some more longterm fundamental support from china. Lets get into the ring with todays top story. Opecplus agreeing to increase output starting in january, with monthly reviews to cf if more oil should be added. Alex longley joins us from london. What are the rules for the subsequent production hike . Alex there has been a fraud week of debate within opec. We have had the opecplus meeting. What we are hearing as they have agreed to hike production by 500,000 barrels a day in january, and will then have monthly reviews what they were at another 500 barrels a day to the market. That is doing the same, weve got a Strong Oil Market at the moment. But they are still wary of the demand outlet. Coronavirus continues to spread in the u. S. And europe. That is what is causing this cautious outlook. Helping to keep prices relatively contained. We have not seen much of a pullback today. Positive news there, and opec looking to put their knee on the market. Alix i wonder what saudi arabia thinks . This is the first time they having gotten what they want to. It does this leave saudi arabia . Alex it still seems to be in a strong position. Clearly there has been tension upsethe uae, who are about overproduction in other nations and what they have been forced to do. Ultimately, saudi arabia has a deal where enough oil is being kept off the market to keep prices afloat. Extra 500 barrels a day, he would have seen prices collapse. I think they are still fairly content. As we go forward, we will see how this diplomacy carries on, whether tensions continue or whether this is something that has been ironed out by this monthly negotiation. Alix nikki so much. Bloombergs alex longley. Now for a commodity in chief. Today it is decarbonization. A key buzz word for all companies. It means lowering your nations. There are three ways you can do this. One, try to reduce emissions where you can, like Energy Efficient light bulbs, and what you cant by credit. Two, set a carbon price. Make it high and evaluate Business Decisions based on that price. Like, dont take that trip because it is too expensive once you add in the carbon price. Three, capture your own carbon. Purify, compress it, and transfer it. The problem, that is expensive. The solution, you technologies. Over the next 30 years the Energy Sector needed 3. 5 trillion a year, which is much as an hundred 35 billion dollars just for Carbon Capture and biofuel technology. , andnments are stepping in where governments go, the private sector follows. Acquisition incorporation. Recently went public and is now looking for that special acquisition. Its target, decarbonization. Robert tichioth of riverstone and caught up about his strategy. At a variety of different stages of risk and corporate lifecycles. There are a number of emerging technologies that need to attract venturestyle funding and risk, then there are an incredible number of companies that have either already achieved scale, or are on the path to scaling quickly. That the criticism is returns are not there. Youre not going to make as much as if you were in the oil and gas business. Robert its complicated. If you take a look at the history of cleantech clean tech, there are many monikers one could use to describe the space. Poortors have had very experiences with clean tech from the early 2000. The real reason is that capital was driven to the sector far too quickly, looking to scale up technologies that were unproven. That resulted in a period that is called the last decade, where these appear to have capital starvation. There were institution managers, asset allocators that were underexposed to advancing solutions because, in their experience, predominantly on the west coast. We think that has changed. The result of this period of the last decade has been some austerity, where a number of companies have refined their technologies, they have advanced their businesses to prove points in the sales channel. We know that their products and services are being accepted and embraced, generating real revenue and gross margin. Alix can you give me an example of a company you invested in and what they did and what the returns were, and how you helped to change them . Inert a perfect example is diva, which is a fantastic company that converts wood chips into renewable fuel. This is a perfect example of a Company Whose technology was immature five years ago, and it needed a long vision in order to see some technology refinement, enhancement. The process itself of converting wood and biomass products into renewable fuel is complicated. That technology was refined over our period of sponsorship. And then once the company went public. They are an absolutely fantastic Success Story and a company that is replicating its technology. Alix a lot of people say biomass is too expensive. Its just not economic. Robert and biomass is a category a fascinating category that covers a host of technologies. Many of which are going to be governed by the quality of the seed stock. There are some processes in some companies where it could be secured for free, and other companies, ethanol and agriculture based renewable companies, with the cost of feedstock and be quite volatile. Those are where investors have had poor experiences, but that is too far, too wide of a brush to paint across an entire industry. Alix now to our commodity kicker. Withpore has no beef labbrown chicken meat. The government is allowing the first sale of cultured meat made from animal cells, and does not involve the slaughtering of poultry. Singapore has moved quickly. It faces an impending food crisis brought on by covid19. Whats next on the menu . An allbeef, zero cal burger. That does it for bloomberg commodities edge. This is bloomberg. Welcome to bloomberg markets. A stellar lineup for you today. Joining me inno moments. We will talk challenges president s like biden faces as he takes office. Capitalark ein of investment will give us his insight into the evolution of the stock market. Lets take a quick look at the markets. Airlines leading the way with American Airlines and boeing, and of course united, all gains even as the overall market shows not much movement. S p 500 up. 1 . The dollar index showing a lot of weakness today, as you see. Strength for the euro and sterling continuing. On the opec news, crude oil with a little bit of again a gain. Anticipating more headlines from the official meeting this hour. Meantime, Kamala Harris announcing an allfemale slate of staffers. This on the heel of biden s. Nouncing his pick joining us is someone who knows something about the process. Ofen tramontano, now ceo star strategies. Take us into the process. What is happening now with this transition . See, well, as we can all the president elect is building his team. He started with his international, National Security team, then economic team. I think next up will be focused on health care, probably hhs, the person who will also coordinate the coronavirus response. No, it is a combination of picking his cabinet members, secretaries and deputy secretaries, as well as building know,e white house, you teams of the economic council, the domestic policy council, and the National Security council. Vonnie will he staff up, as did not happen during the last transition period . The time when people turned up and there was no one there wore people just didnt turn up at all . We would get the opposite of that this time . Karen that was a great book. A little scary, however. I think we will have the opposite. People that the president elect have chosen, for example ron klain and my former colleague steve ricchetti, these are seasoned professionals. They know government well. They respect the professionals in the government. They will want to learn as much as they can as to what has been happening to pull the agenda together as quickly as possible. So, i think we are going to see a 360 of what happened four years ago. Vonnie talk to us about any possibility of a bipartisan agreement on more stimulus. If that is even the correct word for it at this point. Some kind of foundation for those suffering at the moment. Me 24 if you had asked hours ago, i would have been quite pessimistic. I do think with Speaker Pelosi moves toor schumers at least look at this 900 billionplus as a good starting point, and that is coming from a Bipartisan Group of members in both the house and senate as something that they really want to happen. Is a far better chance today than there was yesterday that some support will happen i think we are going to see something very different from the earlier packages. I think it is going to be, probably very limited in terms of direct payments. I dont think we are going to peoplet 1200 payment to , which is unfortunate, and i know economists are calling for that 1200, as you know, along with increases in Unemployment Benefits was put into the hands of people that are actually going to spend the money. I think the initial cares act is the reason why the economy didnt collapse at the outset of the pandemic. I think it is going to be limited, but hopefully its stateto include funds for and local governments, which are really, really going to be needing an infusion of funds to avoid layoffs, which would be devastating to our economy. Vonnie right. Certainly you were involved with an administration that did manage to come to some bipartisan agreement on everything from the debt, to Everything Else related to the economy. Are those days gone . Like they are further away than ever. Karen you know, i am not naive. I have been in washington 40 years. But i am hopeful. You know, there are republicans who,emain in the Senate Whether it is senator collins, senator romney, senator murkowski, senator portman. These senators are coming to the table on this particular proposal. That want to see things done. I think the message that all of us received is from the want tos is, citizens see their government working for them. Pandemic,nly in this they need to have their government working for them. There are good, dedicated Public Servants on both sides of the aisle that do want to see things get done. The senate is going to be close, right . It is either going to be a 5050, or 5248. Either way, people are going to have to work for a bipartisan, much more of a consensus approach to governing. What we know from history is, actually that works. Thingare the last government programs. , and that were adopted by have bipartisan support. Vonnie what does happen, speaking of georgia . You say it is going to be two read or two blue. If it is one and one . One, iff it is one and it is a split, the democrats need to do bureau, they need to win both, otherwise the republicans will control the senate. The control of the senate means the control of the agenda. Group as onefirm a has in the house, because the control of the house, all of the rules favor the majority in the house. There are some wine or rules in the senate that can be leveraged, and we have seen them be leveraged, but i think most importantly, with a senate that know, it does mean that senators that want to get things done on both sides of the aisle have the power to get it done. And have the power to lead. And it doesnt have to be about just one person. We have seen a little bit too much focus, i think, on just one person these days. Vonnie karen, you have deep been deep in the weeds of washington, d. C. For decades, and more recently very deep in the weeds of the trump agenda political, youof know, maneuvering, lets say. The trumplive on post presidency and will he run again in four years . Karen as far as President Trump running in four years, i have no idea. Expression, four minutes in politics is a long time. I have no idea what four years to bring us. This town isat exhausted by the last four years. Hear from a lot of people in congress, certainly staff again, on both sides of the aisle that it is time to get the business of government done. Areink all of us here hoping that what happens is not that we get back to the way things used to be because there is no panacea looking back that there is a forwardmoving agenda. I do believe that with president elect biden in the white house and Vice President elect harris and their are, again, seasoned professionals. They do know how to get things done, and the president elect knows how to govern. I am very hopeful. Vonnie thank you so much for your time today. Karenmmond 10 oh tramontano, ceo of blue star strategies. This is bloomberg green bloomberg. Vonnie this is bloomberg markets. Time now for our stock of the hour, which is tesla. Goldman stocks upgrading the vehicle maker. He still maintains his shorts. He gave details to scarlet fu. We still do have a position. Painful,s been clearly, but i will say, for the first four years it was actually not a bad short. It went sideways while the market went up, a lot. And so, those are the kind of shorts in a bull market you hope for, right . The market is going up, and our shorts are not going up. Last 12 months, it has been a different animal, as you know. Six fold, and we have had to risk manage it love like anyone else. Vonnie Abigail Doolittle is with us here now. It looks like there might be some capitulation around tesla . Abigail capitulation, indeed. Goldman sachs upgrading at to abide. Jim chino talking about the pain. We have a chart that exemplifies this. Actually, this is a little bit different. This is tesla playing catch up to where the analysts are. You can see the stock is now quite a bit above where the average price target is for tesla. The chart i thought we were going to be showing was the short interest. Last year, 33 . Now it is 6 . That is that change jim chinos was talking about. As for analysts, we do have price targets will above the stock price. Take a look at this, because it is not really a clear picture on tesla for those analysts. A split between buy, hold, and sell. It is going to be interesting to see what the future does bring. For was the clear premium tesla. Toyota this year it is Pretty Amazing produced 5. 2 million cars. Tesla has only produced and sold 320,000 cars. On a percar basis, on a market cap basis, tesla is 1. 7 million at car, while toyota is 40,000. Vonnie thank you. Stay tuned, cracking down on china, next. Its moving day. And while her friends are doing the heavy lifting, jess is busy moving her xfinity internet and tv services. It only takes about a minute. Wait, a minute . But what have you been doing for the last two hours . Delegating . Oh, good one. Move your Xfinity Services without breaking a sweat. Now thats simple, easy, awesome. Xfinity makes moving easy. Go online to transfer your services in about a minute. Get started today. Mark i am Mark Crumpton with bloombergs first word news. President trump has been handed another defeat in his attempt to get Election Results overturned. The Wisconsin Supreme Court has refused to hear his lawsuit attempting to reverse his loss in battleground state. The court said the case must wind its way through lower courts. Mr. Trump wants more than 220,000 ballots disqualified. Kamalaesident elect harris has announced an allfemale slate of senior staff. She said her team will work to get the coronavirus under control, open our economy responsibly, and advance americas leadership around the world. Her picks include portnoy. The nations top Infectious Disease expert will stay on the job in the Biden Administration. Dr. Anthony fauci tells cbs he will continue at the National Institutes of health. Dr. Fauci says he has spoken to the incoming chief of staff. He also says he will take a covid19 vaccine in public, after it has been approved by the fda. Dr. Fauci says he wishes the u. K. Had spent more time viewing the pfizer vaccine. Opec and its allies have reached an agreement to ease output cuts next year, more gradually than previously planned. The move will give a fragile market more time to absorb supply. One delegate tells bloomberg the group will add 500,000 barrels a day in january, a quarter of what would have occurred under the prior plan. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. I am Mark Crumpton. This is bloomberg. Left from toronto, im amanda lange. Vonnie from new york city, im vonnie quinn. We are joined by our bloomberg and tnn audiences. There are top stories. The house supports curbs on china stock listings. President trump is expected to sign off on legislation that the lists Chinese Companies from u. S. Stock exchanges if their audits remain offlimits to american legislators. Are trying toives save the earths biodiversity by embracing Natural Capital. Splunk pioneero about his firms public vehicle, which listed on the nyse this week. We do have some positive sentiment across the markets today. In part that continues to be enthusiasm a stimulus package could come together. Also we have other than expected or better than feared jobless november, that was stronger than some had feared. Pretty flat, but we are at record levels for the s p 500 Energy Leading higher again today. Energy closely watched as opec bers looked set to face in phase in output changes. That is also the group that is leaving toronto higher. Closely watched today, the group of large chinese businesses listed in u. S. That could face delisting now that the house has passed this legislation that allows that could curb chinese stock listings. David joins us now. Lets get to the heart of this. You could argue that it feels a little bit as though it all ties to the friction between the u. S. And china, and trade issues. Pastis likely to survive january 20 . Or is this a new reality between china and the u. S. . I think youre right. The legacy of trumps interregnum is clearly going to be marked by china. In addition to todays legislation approved by the house, you have also got trump threatening to block imports and certainly limiting is a constraints on chinese citizens traveling to the u. S. Dispute, todays todays bill represents a longrunning dispute between washington and beijing. B mustdates that the pco disclose whether they are under government control. Vonnie give us the kind of market capitalization we could be talking about. The context here. About 150 Chinese Companies, at least that. Ofis probably on the order 1. 5 trillion in orchid cap. This goes back to the fact that china is trying to tighten the news. On november 11 we saw and this is something even more relevant to u. S. Investors an executive order by trump maintained by any investors in communist Chinese MilitaryCompanies Must divest their shares. That could impact a range of state owned enterprises out of china. Not just on the equity side, but the debt side as well. If indexbased investors that benchmark to these indices cannot replicate that im a cannot click it there benchmark, they are going to die advised divest of those bonds. Alibaba,ooking at there is no big reaction here. And, if at all, would you expect investors to price in what this might need for those listings . I think youre right. There is a phasein period here. This will kick in after three straight years of failure to comply. These lawsw, all of that are being suggested really do have a window which allows investors to decide what they want to do next. There is not going to be selling off the back of this. The performance of alibaba mandates that. Vonnie what are the downsides for the u. S. Of this particular move . If we taken to extremes . Course, we dont know about that yet. The end of the u. S. And new york city as the Financial Center of the world, right . A lot of these companies would need to revert back to hong kong. There is that threat, and i exchange, itg kong a listed company, i think their shares were up overnight on the back of this. There is a lot of speculation, but as you point out, there is a reyear phasein. The Biden Administration may reverse this, that is highly bipartisan. He remains to be seen just what the impact is going to be on chinese shares over the longterm. Amanda i guess one question that even the savviest investors will have to ask themselves is, to what extent the existing level of fiction and i mean realworld friction of tariffs in place and a trait has to be renegotiated will simply be on and how much of it stays in . Would it be your expectation that we do know biden has his own views about protectionist takes on things. Could we assume that all will be well with u. S. And china . I dont think all will be well, this goes handinhand with all of the risks that go between the u. S. And china. From the south china sea, to hong kong, to tiktok, and we chat, right . We have yet to see how biden is going to approach china. A lot morewould be constructive than the trump administration, and certainly the market is pricing that n. That in. Now you have, basically, yield differentials starting to close between the u. S. And china. Markets are definitely bowl bulledup on china. Vonnie thank you for your expertise. Damien joining us there. Ofhel barnier, in charge brexit negotiations is set to return to brussels after having spent that week in london. It is a sign that brexit talks are nearing an and. We know that sterling has been appreciating all day. About 1. 10 and change versus the euro. The news that Michel Barnier is heading back to brussels. For sign that a deal could emerge within the next 48 hours. Coming up, more animal and plant species threatened with extinction than at any point in history. We will explore how finance executives are trying to save the earths rapidly deteriorating biodiversity. This is bloomberg. Vonnie this is bloomberg markets. Chaim vonnie quinn, alongside amanda line. Global wildlife populations are down two thirds on average in the last 50 years. The destruction is not only troubling for conservationists, it also poses economic risks. Alastairs today is marsh in london. Pallister, this is a new take on the bfg what exactly are Fund Managers doing . Is aair sure, this natural extension, to some degree, of the work they have done on Climate Change. Since the Paris Agreement in 2015, slowly but surely more finance ministers are talking about climate. About how their businesses contribute to Climate Change, but also how Climate Change has become an existential risk and immaterial financial risk. Ofyou follow that train thought further, he come to the conclusion that biodiversity, choose the wealth and righteousness richness of life on the planet, the destruction of the natural as aal as we destroy that, human population, there is some serious financial implications. Have a group of Fund Managers, most of them in europe, have started something called the finance for biodiversity pledge, they are committing to measuring the impact that their portfolios and businesses have on biodiversity destruction and nature loss. And also the reverse of that, the way in which nature loss in fact impacts them, and working how they can come together to start a positive agenda and reverse nature loss in a similar way to how they have been trying to work on Climate Change. Names of caliber and size. We should note, for folks who are wondering how to get to the bottom of this subject, you have a wonderful piece on the terminal that runs through what the issue is and some of the opportunities. What strikes me as interesting as that, at the urging of Central Banks and the Financial Stability board, any institutions globally are thinking of Climate Change from a risk point of view. Now we see investors starting to think about, where is the opportunity . Is biodiversity still on the risk side of the ledger . Do we see places where there are opportunities to invest . Alastair a couple of Fund Managers, including hsbc, have recently started Natural Capital investment funds. They are raising capital to theyy in businesses that think are making a positive contribution to nature. There is a way in which you can turn this into an assetgathering and moneymaking venture. For the most part, it is mainly people thinking, oh my gosh, the statistics on biodiversity are terrible. We are facinged, a record amount of species facing extinction. One million species of animals and plants currently facing extinction. That, according to the World Economic forum, that and the board of biodiversity loss, means we are facing costs. It is a massive financial risk. It is being seen at this point through the prism of risk, there are 70something people that are making hay, so to speak, and marketing funds. Is great to have you with us. That is bloombergs alastair marsh. You can find alastairs piece on the terminal. Dont miss the next episode of bloomberg green. That will be on friday at 8 30 p. M. Eastern. Recapping that breaking news that vonnie told you about. The new goat negotiator returning to brussels. The headline appears that there seems to be expectation of the policy possibility of a deal. We will watch the Market Reaction to that news. Some positive movement on prospects for a brexit deal within about 48 hours. Coming up, we are checking in with one of the pioneers of the fact space. Mark ein is with us next. This is bloomberg. Amanda this is bloomberg markets. I am amanda line, alongside vonnie quinn. We have seen the Acquisition Corporation market explode. It was led by one pioneer, mark ein, the chairman and ceo of capital investment, having raised the fifth such fund. Thank you so much for being with us. We appreciate your time. You have a long view on this sector. And it is more popular than we have ever seen it. There is a record amount of capital. Before we get to the specifics of yours, big picture, what do you think is going on here and what will it take to unleash some of that capital into the market . Sincewe have been at this 2007, and we are one of two teams that have closed mergers. S are thee that spack best way for them to access the market. It is a flexible vehicle that veteran enables companies to tell their story. We have been believers and evangelists for a long time. It feels like in 2020 the world caught up to us. Are top of, spacks mind for everyone. Every ceo is thinking about spacks as an option. Not only are there more Companies Open to the discussion, but there are higherquality companies who are seriously thinking about this as an alternative. You are involved in utilities and real solutions, and so on. A kind of industry are you looking at for this . Mark we have always been opportunistic growth. We feel like you need to have a wide aperture, so we have been an expedition and enterprise software. Started a mortgage rate, with our first one at the bottom of the financial crisis. Provides infrastructure for markets that are growing. And buildir the grid 5g networks. It is always about growth and finding a company and a situation where the spac will transform the business, will enable the company to catalyze its growth and value creation. That is the same approach we are going to take with capital five. Amanda make a distinction for us in terms of the style. Yours is a handson, working with a management team, in fairly strategic. Would you differentiate between that and a more passive type of a spac that looks for opportunities but is more handsoff . Focus in one industry. That strategy can work. We feel more, but comfortable being able to cast a wide net and be able to look at crosssectors. Our strategy is not to run the businesses, but to be managements closest partners. To roll up our sleeves and work sidebyside with them, not just in getting the deal done, but for the long term. We still to this day are deeply involved in the companies that we invest in invested in 10 years ago. Vonnie is it a dangerous time . Is there too much financing in the spac area now . You are also a venture capitalist, and he were in politics and in a lot of areas. Does it worry you at all that this spac explosion has happened . Mark clearly there is a lot out there. I dont believe everyone will be successful and find a good deal. I think that is for sure going to be the case. When we started it was a mini spac boom. The structure was a lot less userfriendly, half of those 90 not get deals done. I think it will be a higher percentage here, but not everyone is going to be successful. Soause it has become mainstream, there is just such a wider universe of high quality Companies Open to it. I think that is a positive. The returns in the stock market this year have been extraordinary. The funds who invest solely in spacs are having unbelievable years. Because the product has been so wellreceived and because people are finding the companies to merge into. Net, i think it is a tremendous positive. But not everyone is going to be successful. Amanda i guess i want to name names a little bit. When we think about signs that a market may be hot, i dont think you have to look further than , 4 billion. Not so much to see so far. When you get cautious about some types of spacs . Mark bill and i have been friends for decades. I think he is terrifically smart. I think what he did with tom teen was innovative. He did a good job of aligning peoples interest. There are not a ton of private companies he can go after. That is the tradeoff. Assuming he finds something, sure it will be a good company and a really significant transaction and Public Company that comes out the other side. Our approach is to try and stay on the smaller side, even when we have had the demand to raise more capital, just to have a broader universe of companies we can go after. Is theng about spacs pipe market as so active. Upside toirtualy no how Big Companies can be. It is harder to get smaller. Vonnie i do want to mention the Washington City paper, to own, also the fact that you are still involved in tennis. Very briefly, your outlook for the tennis season . Mark our going to play the Australian Open . I know craig and his team are working hard to make that happen. Trying to figure out a time and it can happen and working with the authorities in australia, who have been very tough on immigration and quarantine for people coming in the country. I am sure they are going to get it done. I know the tennis world is excited to go down under and reconvene there. We are all waiting to hear the latest. Vonnie just another victim of the pandemic, mark ein of capital investment. From new york and toronto, 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 trump has been handed another defeat in his attempt to get the Election Results overturned. The Wisconsin Supreme Court has refused to hear his lawsuit attempting to reverse his loss to joe biden in the battleground state. The High Court Said the case must first write it find its way through bloomberg lower courts. President elect biden is continuing his transition to the white house with the announcement of more key appointments. Mr. Biden haseaste chosen his covid czar and surgeon general. Brian dietz will head the National Economic council. He played a major role in bailing out the Automotive Industry negotiating the paris climate agreement under president obama. Utility companies have cut power to more than 200,000 homes and businesses to prevent high winds from knocking down live wires and sparking wildfires. The shutoffs could impact more than one million people