Upside. Looking at commodities. Crude moving to the upside. A big move to the downside with , on the vaccine and signs of Economic Growth in the u. S. Particularly helping people not to look for havens or avoid havens, get out of them. Gold down half of 1 . Bitcoin surging up again, it has above 18,500. Juliette lets get the first word news. The head of the u. S. Government Coronavirus Vaccine program says results of trials by astrazeneca show encouraging signs it may help block the most severe cases. No one given the vaccine developed severe covid, while 16 people on the placebo debt. He called the results excited. Nine, reports 70 process astrazeneca report 70 success. The centers for Disease Control a model shows weekly u. S. Cases and deaths rising every week for at least the next month. Italy is the Second European nation to report 50,000 total fatalities. The u. K. Is extending lockdown next week in favor of even tougher regional curbs. Reports from washington say the Trump Administration is raising the stakes with beijing, naming 89 Chinese Companies it aims to borrow from u. S. Technology due to links with the military. A playmaker is among those maker is among those listed. Beijing says it is oppression of companies without cause. The u. K. Government is considering a ban on 5g equipment from huawei as soon as next year to appease mps calling for tighter restrictions on the chinese telco. The conservative party are demand and strict rules on Companies Using huawei components as part of the price of backing new Telecom Security legislation. A blanket ban on the 5g equipment is set to be enforced in 2027. Qantas plans to become the First Airline to demand vaccination proof of four passengers will be allowed to fly. The ceo told channel nine the woulduld become jab become essential for International Travel when one becomes available. There is an app being worked on that would help demonstrate virus free status, a mr. Push for socalled virus passports. Be the thirdng to space agency to bring back rocks from the lunar surface. If the mission is successful, it will be the first time in four decades that moon rock has been collected. Only the u. S. And soviet union have brought back samples. The time on the surface will be limited. It lacks the technology to survive on the moon at night. That is the first word news. Rishaad no surprise but a big leaf for many that the u. S. General Services Administration has acknowledged joe biden is the apparent winner of the president ial election and President Trump has called on his team to cooperate our cooperate. Our editor Kathleen Hays has more. What is next as the transition of power is free to begin . Get thes first step to transition going what are the next steps . Kathleen its an important step and is not just about what happens in a democracy, one person loses and the other wins. The loser says ok i hand over the reins of power. Its also important in practical terms for joe biden to be officially told you did win the election because it will give him and his team access to current officials and office, very important briefing books. About 6 million in funds to help with the transition before he gets to the white house. There are very important pragmatic, practical issues as well. Emily murphy, the current head of the gsa, was sort of dragging her feet, doing Donald Trumps bidding. Today she said we made this decision because there was progress on legal developments, legal questions that allowed us to say yes, you can go ahead and get your resources and we will get the ball rolling. Donald trump said he told ms. Murphy to do what needs to be done. Now he is telling his team to do the same. He says our case strongly continues, we will keep up the good fight, and they will prevail. Made, ms. Murphy says she the decision independently based on law and this is what happened. Keyappens too after decisions in michigan and pennsylvania, big battleground states where trump wants a recount or wanted them to turn over electoral votes. They did not do so and that was one of the key things that put biden in this position. And of course some key republicans including Lamar Alexander and others, in the senate for years, saying it looks like joe biden will be the president and it is time to move ahead. Perhaps that made a difference as well. From ms. Murphys point of view, it is the fact, the law, and she is obeying it. Juliette more women are headed to the white house. Talk about joe bidens pick for treasury. Yellen lookset like she will be nominated by joe biden to be the first woman as treasury secretary. Another feather in the head of a woman with many accomplishments been why is she so attractive to joe biden . Many other people were being looked at. She was at the fed during the great recession, the great financial crisis. She has been through a crisis, she has been through digging out a big economy out of a large hole. Thats one of the things that looks good. As very dovish, wanting more stimulus, someone who can collaborate with the fed. Look at her resume, she has been at the fed for years, she knows everybody and knows the institution. Could there be a better way to have the treasury secretary and fed chief hold regular weekly meetings and hammer things out and move ahead, then some one who has been governor and vice chair, fed chair, president of the San Francisco fed. She got through two bipartisan votes, which is an issue because the senate has to confirm her. She pass muster does muster . Does she have enough goodwill on the republican side of the aisle . Also, shes been a bloomberg the world and knows the finance ministers and central bankers. When she walks in the room, the relationship is already there as she has to work globally to get things done. Whether you are a big fan of hers or not, you know she is accomplished, you know she can get the job done, you know she is always working hard to do that. U. S. Bankingfamous analyst at wells fargo, inc. s it is important when you look at the question of being tough on the banks, she transcends probank versus antibank, she is more pragmatic to make sure banks are healthy, dont take too many risks, make sure they can get through a crisis and keep credit flowing. She has not been involved in Financial Markets like some of the other picks might have been, she has certainly overseen them and i think it is interesting that this is the woman that joe biden picks, but apparently theres a lot of support out there for her. Juliette kathleen, thank you so much, our economics and policy editor in new york. Give ahead, jp morgan will an outlook for some of chinas Biggest Internet Companies as they learn to live with new antitrust laws. Alex yell will tell us what the Retail Sector says about health of the economy. Rishaad thats later this hour. Just ahead, we talk with advisors about why u. S. Equities and chinese bonds are in favor ahead of asiapacific macro strategy. This is bloomberg. Asian stocks trading higher in the morning session today, driven by the General Service administration acknowledgment of biden as the apparent winner of the u. S. Election. With election uncertainties out of the way, risk assets can look ahead to the policies that will come with a Biden Administration. Thats get so analysis now some analysis now with our guest. Great to have you with us. We start to see the Biden Administration forming and we heard that janet yellen will be the pick as treasury secretary, which brings us to the question of the day how do markets price yellen . Markets will be quite supportive of this move, to the point that was made in the report earlier. She is a known quantity, no real surprise there. I think the way markets are looking at it is twofold. Purely a is that from markets perspective, biden could have chosen someone less favored by market players, someone more interventionist, someone a little more empty wall street. There is no suggestion in yellens recent history that she has any real agenda against wall street. I think it will be seen as a fair hand to the extent she has International Experience and i think that is fine. There is a second issue, probably worthy of deeper analysis and it will take a little time to see how this will filter through. Economiste labor returning, and now you have the buying and Biden Administration, a democratic administration, and someone at the treasury clearly has a vested interest in labor economics, that will start to get people interested in the potential fiscal impacts and what policies the treasury can push through and the implications that will have pit eventually we will talk will have. Eventually we will talk about inflation again someday. Markets are saying this is another notch toward highyield, so we will see how that plays into risk and the dollar Going Forward. Juliette and in terms of equities. We also have vaccine optimism. You still favor u. S. Equities. Continue inentum the rotation trade, and we are getting big calls on what the s p 500 will look at any years in a years time. Dwyfor to the point that you have yellen at the treasury and you have pressure at the long end, i dont want to overestimate that because we dont have inflation as such. Expansion ly is policy is expansionary fiscal policy, you will see some pressure on yield. In absolute terms and might be very little, but in terms of percentage change, it might the a lot. That will certainly have some pressure on the bond markets potentially. Atthe same time, im looking rotation into equities, so looking at asset markets, equities still looking very well favored given the story on the vaccine, the fiscal expansion, the continued very accommodative Monetary Policy situation. That all seems to back up the equity markets more than the bond markets. So that rotation into equity is something we are expecting, especially in the u. S. In 2021, we think that will be a key asset class tour in 2021, that into equity. And what about in terms of Commodity Markets . We have oil and an eight month high and there is vaccine optimism but at the same time, every time it looks like we are closer to a return to travel, it seems to stop. Do you see normalization for the oil market in the next six months or so . Dwyfor it depends on a number of factors. The vaccine and normalization of travel will be one factor. I would not underestimate how important it will be once we get into a new u. S. Administration, policies on the middle east, particularly policies on iran more important swing factor. I think there are number of potential issues for 2021 around the committee commodity market. The middle east probably has more of an impact than we are currently pricing in. Betweene normalization u. S. And iran and we go back to the relationship for five years ago before the Trump Administration, a lot of the risk premium out of Commodity Markets could be taken away, in which case there is potential upside for commodities. Components and also the critical element at the beginning of next year. It looks more optimistic giving given the relationships between a Biden Administration and iran and europe as well. A lot of factors on commodities. Rishaad a quick word on inflation, we have seen 10 year yields creeping up. Are we discussing the return of inflation far too much and where would it come from . Dwyfor it depends on who you are talking to. Ive had this conversation a few times in the last couple of weeks and some are arguing we really are underestimating hence a strong call summer making about fixed income Going Forward and some are making about fixed income Going Forward and fixed income being overextended. We dont see that, we have internal metrics where we look at alternative inflation sources and we are not yet seeing inflation. One thing to be aware of in 2021, the First Six Months of next year, we will get a lot of odd data when it comes to inflation because of the 12 months calculation. We will see spikes in inflation because of how weak inflation was in q2 this year. There will be a bigger debate on inflation next year. We are not yet seeing an inflation spike, not yet factoring in the return of inflation, that i think as we go through next year, if we get more policy shifts and more expensive fiscal policy, my suspicion is we will talk more about inflation, and the question i came back to early on will become a greater factor. Not an issue for now but i think it will be discussed in a lot more debate and a lot more scrutiny toward inflation next year, but not for now. We will leave things, sorry we have breaking news from carrie lam, chief executive and hank on. Executive of hong kong. There will be further tightening of social distancing rules, saying there will be more and or Entertainment Venues closed. The chief executive going on to withouthis briefing giving details, details meant to be announced later today, the move is to focus on closing certain premises where most of the people would take masks off. That is the direction in which the tightening is going here in hong kong. Next, astrazeneca defending results of its covid19 vaccine trial after accusations it embellished the findings. We hear from the companys executive Vice President , next. This is bloomberg. To safeguard the health of the hong kong people is on a new track. We have joined the international arrangement. The other is we have been discussing, negotiating and signing a Purchase Agreement with some Research Companies and production companies, but i am not supposed to give you the details. That is to be reserved, kept on a confidential basis. As you know, some of the vaccines are being developed on the mainland and i have also asked the central peoples government that if needed, we will be on her own to procure behaad hong kong will further tightening social distancing rules, the chief executive mentioned at that briefing, not giving many details, saying they will come later today. It will focus on closing certain premises were people would take masks off. She might give more clues as to what is in store. There is a major challenge for humanity all over the world. In our own country, we have managed to control the pandemic, and the economy has rebounded and other things have been happening. As far as hong kong is concerned, we continue in a vigilant manner to fight the epidemic and also to introduce various measures that are necessary. This morning, i have described to you how we will step up testing on a mandatory basis and on a target group races. Basis. Ive also given you a preview that later today we will announce measures to tighten the social distancing measures in order to control the spread of the disease, especially in light fromis big posture arising dancing halls. ,f our experts and evidence whether local or international, have clearly shown a more effective means to do it, we need to adjust our measures and of course we will do it. The hongt want to give rep people in general sit of where we stand. We have to look at it globally, because this is a global pandemic. Hong kong is not doing bad at all. Ofre are several indicators how a territory or country is handling the covid19 pandemic. One is the confirmed cases per one million population, the other is deaths per one million population, and the third is tests per one million population. Looked at those International Statistical compilations, you will realize hong kong is not doing bad at all. So lets have confidence in ourselves that by putting in our best efforts and the government taking a lead and by individual citizens playing their part, this is still the time for avoiding close contact, it is still the time for not going into high risk places. But if people are not complying, then i will find it very difficult to manage the situation. But we will try, we will never give up, because this is concerning the health and safety and wellbeing of people of hong kong. The third question, if i may correct you, i am not consulting beijing on the policy of risk. I am policy address. I am compiling my own policy address. But it is clear to everyone that if we want our economy to bounceback, there is no better place than the mainland of china for us to tap into, because other parts of the world are still struggling with the pandemic and high unemployment, economic slowdowns and so on. A couple of months ago, i have put to the Central Government a list of issues i feel are important to help hong kongs economy to revive. They may not be immediate measures but they are the measures that will help hong kongs economy to grow. Rishaad lets have a look at markets as we head to the commercial break. Topixfor the nikkei and , sing a peaceful transition of power in the u. S. Seeing a peaceful transition of power in the u. S. , responsible for some of the optimism, lifting equities are generally speaking. More on the way. This is bloomberg. It is 10 20 9 a. M. In hong kong and shanghai. I am Karina Mitchell with the first word headlines. President trump tweeted he supports starting the transition to a new administration. After the ultimate Election Authority agrees joe biden won. Continueshe president in that he expects to win. Biden wasascertained the apparent winner of the election. Sources in washington say joe biden will nominate former fed chair janet yellen as his secretary. The first woman and veteran central banker to hold a top economic post as the