Nominate janet yellen to his treasury secretary. She would become the first woman to hold the position. Janet yellen has pushed for more fiscal spending during the pandemic. Credentials could covid passports restart International Travel . We will discuss the latest strategy with its ceo this afternoon, and before then, we are joined by the chief executive of the dutch flag carrier. Do not miss that conversation. It is 6 00 a. M. In london and 7 00 a. M. In zurich. A little bit of breaking news on novartis and we will come back to that in a moment but there is a Share Buyback of up to 2. 5 billion. So we will touch on that in a moment but i think we are in this momentum and we have almost got this goldilocks between a vaccineon starting, narrative, and janet yellen did not get Elizabeth Warren so thats probably part of the cheer on the streets. Certainly. I think wall street will embrace it but also the progressives will embrace her but with this pick which is historic, the first female to ever run the Treasury Department, she is both thoseicking boxes. She is welcomed manus by the progressives. Manus absolutely. The language she used in regards to fiscal stimulus will certainly embolden people. Familiarity is something markets like. If they know and understand the narrative, maybe they can be a little bit more optimistic. These markets are ripping up the script. Arent they . Yes, certainly. Take a look at where we trade this morning. We have seen Global Equities really rally. We are seeing equities advance up some. 9 this morning. The kospi hitting another record. And theacross europe United States moving to the upside. Weakness in the softer dollar. Janet yellen would bring that in. We are seeing the dollar weaker. Look at that. Brent crude with a 46 handle and backwardation in the trump spreads for brent crude. These are tiny at the moment but still, oil markets are finally going into recovery. As manus and i have been talking about, the official transition to a Joe Biden White house is finally underway. President trump said he instructed his team to start the process after the u. S. Agency is acknowledged biden as the winner of the election as the president elect plans to nominate janet as his treasury secretary, choosing the first woman and a season central banker for the Economic Policy job. Joining us now is catherine doyle, Investment Specialist. Very good morning to you. 2020 has been like an onion of uncertainty and every day, we peel back layer by layer. We have a formal transition process underway in the United States and we have the secretary of treasury picked by the biden team at the market seems to like. I want to get your initial thoughts on all the latest developments. Yes. I think thats an interesting choice that the market likes judging by its reaction yesterday and i think what it underscores is the fact that this is going to be a much more predictable and sort of collaborative approach taken by biden. And it is likely that because you have not had a blue wave, some of the more aggressive measures that the market was worried about are likely to be watered down, particularly on the Corporate Tax front. As well as some of the more ambitious fiscal stimulus is. Its going to have a whole different tone and clearly, you know, the risk of unpredictability has been somewhat removed. So lets wait and see how this one unfolds. Good morning. The risk of unpredictability also being assisted by the news flow from astrazeneca. We can we can get into the debate about the efficacy rates and the study. The overall mood and markets has pushed you towards a cyclical tilt. My question to you is where do you pick up the most cyclicality . Is it in the u. S. . Is it in europe . The u. K. . Where do you go for your cyclical tilt . We have been looking actually globally but it is quite interesting that throughout this crisis, the kind of traditional distinction between defensive and other cyclicals has somewhat changed in a sense because some of the more traditionally defensive names have actually come under pressure during the crisis. Perhaps those businesses needed a physical presence and clearly, the crisis has hit them quite hard. Thelly, some of the more areas that have been theynally a bit more have become more correlated to declining bond yields, so in a sense, the rules have changed. In terms of where we are looking, we are finding the u. K. Quite interesting. We picked up some homebuilders construction names there. But we are looking we are finding opportunities in a lot of different areas, and some of them were beaten up and unloved areas. Which have been a bit neglected. The recent past has very much been the large cap tech show. Obviously, that has come a little bit under pressure in recent months. But you know, we are finding plenty of opportunities of some attractively valued stocks. I was going to wait to ask you this until later in the show but you brought me there talking about the u. K. Equity market. You talk about a triple discount baked into u. K. Equities. Do you think now is the time to buy ahead of a potential trade deal if you are pricing in the trade deal that gets done . When we are talking about a triple discount, we are thinking about the discount that you get from may be having a more , and also being inscount the sort of midcap space, the largecap space, so that makes it quite attractive, and yes, this is quite an attractive time to be looking in that area because you are seeing this more cyclical shift, having had stronger performance coming from the kind of other areas of the market. So yes, we are very alive to it. You know, the u. K. , clearly, we dont have certainty there yet. If you did see some kind of deal being announced, you could see quite an outside move in that market. Much. Thank you so good to have you on the show this morning. Lets get you up to speed with the first word news flow from around the world. Endsnds National Lockdown next week but Boris Johnson says it will be replaced with a tougher threetier system of regional restrictions which will last until spring. And gymsers will be able to reopen. Or details to come on thursday. Surging coronavirus is raising fears. It is putting pressure to unlock even more support. Wall street economists say it would not take much for the u. S. , the euro area, or japan to contract again, either this quarter or next. Airline lobby is working on a mobile app to help travelers demonstrate their covid free status. The travel pass will display test results alongside proof of inoculation. The program will begin with British Airways and the parent of iag before arriving on apple and android devices. Global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. Novartis, i broke the lines to you earlier, delivering a Share Buyback. It is their investor day. That is going to start in the first half of 2021. This is the top line for them in terms of the rest of the news flow. You have the ceo. We really want to hear where we are with perhaps some of the targets on cost cuts. We are going to keep an eye on the news flow from the ceo. That is the very latest from novartis. Coming up on the show, we are locked and loaded and ready to go. It is planning some major shakeup. 2000 jobs are to go. Part of that restructuring to revive profit. We speak to the ceo of some of the changes. This is bloomberg. Is bloomberg. Manus this is bloomberg daybreak europe. Yogurt makerargest is cutting as many as 2000 jobs. Bid to revive profitability after the coronavirus pandemic. The company shifting to focus on geographical areas rather than product categories. It should reach one billion euros by 2023. The man implementing the changes is the ceo. He joins us now with the plan. The company has summed it up. He joins us for an exclusive conversation. What are you localizing . The power of marketing, the power product . How much power and where are you going to invest that power the most geographically . Good morning. Thank you for having me. Yes, i think its a very important announcement we made yesterday. The essence of this is that we found out we need the covid pandemic has exacerbated a number of trends in the food center. The biggest of them is certainly the question of local. You know, sovereign governments are talking about local food sovereignty. Multinational environment is talking about the resilience of food systems. Consumers are going local. We have this global category and they have been great doing that. I think we have been over probably hit by some of the trends in covid and some of that has got to do for the structural weaknesses we did not address. One powerful unit of danone entities. The localdownload decisions for capital expenditures, brand development, for innovation, much closer to the market than we did before. We produce locally. Most of what we produce is consumed 90 of our volume. That is essentially what we are doing. You admitted misuse of resources and analysts are skeptical about the plan, one saying we have been here and we are not sure if this will make a difference. How are you going to convince the market that this plan will actually work and we will be able to stem those structural changes . Emmanuel i think that is not a statement based on facts. It is a very important one. Saving one billion euros out of our indirect spat. Today, we still have five instances to decide most of the capex routine decisionmaking. About the way we work. Big chance the Organization Makes we are creating in parallel and integrated value chain system that will also extract several hundred millions of euros out of efficiencies across category in the countries. Manus emmanuel, these are huge ambitions. The market is perhaps a little bit short of breath and short of time for you to execute. How much time do you give yourself to fully execute this gargantuan task . Emmanuel well, its not gargantuan. And ik it is wellplanned have absolutely no doubt of that. Tohave set teams apart execute that plan and deliver on the business in the same time. We expect to start that in the early part of next year with the full completion in the course of 2022. The First Benefits of which will be in the second half of next year already. Returneans that we will to profitable growth as soon the second half of next year. To thethe target margin plea covid levels for 2022. You kind of said yesterday a lot of these structural problems were there before the pandemic and the pandemic has really shed light on that. Why did it take the pandemic to force you to change, emmanuel . Beenuel the company has making huge progress on so many things. We have been the first ones to really go after that. Put together one planet, one health ambition, which is a huge sustainability platform for the future. It delivered the 60 increase in the eps of the company in the last four or five years. Things were trending and we were working on many things so we knew that at some point in time, we are among the last companies that are still in silos of them globally. Came. En the pandemic its very much about mobility away from home. We faced probably a dip in the birthrates and a bigger cost in logistics and products that we carry in our vegetable and Dairy Products so all in all, we decided to go for it. You also said you have over innovated. You must be the only ceo i have met that beret innovation. You have way too many products. Erates innovation. You have way too many products. Toanuel we will go from 10 30 reduction. A super good example of what we did is what we did with horizon organic last year in the u. S. , the leading organic meal brand in the u. S. 30 . T our skus by thats 3 to 10 of additional output in the factories. We put that on the most growing skus, delivering doubledigit growth, and improvements of the market share, so this is really a recipe for efficiency and focusing on what we need today, our partners, and ecommerce, which is a more efficient, lower passing value, basically. The trend for the smaller brands that was for the last several years and that went very well for us, i think its over for at least a time and that is why we are reducing that. , thanke Emmanuel Faber you so much for catching up with manus and i this morning. An exclusive interview with the danone ceo. Coming up on the program, another first. President elect joe biden picks janet yellen has his treasury secretary. She becomes the first woman to hold the job if confirmed. We will talk to a reporter who followed her every move at the fed. This is bloomberg. Markets do not like uncertainty. They like certainty. They know what they are likely to get with janet yellen as treasury secretary. Agenda for atant treasury secretary now is the economic recovery, and she is an economic recovery specialist. Offarleft autonomy for lack a better word to control the narrative the way that she did. Im hoping janet yellen takes a page from good treasury secretary is like jim baker or robert rubin and even Alexander Hamilton gets a musical play named after her. She would be inheriting the treasury position at a really difficult time for anybody in that position. We are far from these are sobering times for the markets generally. That will be much more subject to the political weightings of washington. I dont know that we know how well she can navigate those political waters. The financial markets, banking regulators, they have never been her forte. She is a labor economist. That is where the greatest appeal is. Annmarie good morning. Some of our guests weighing in on the pick for treasury secretary. On what disappointment means, our senior economy editor joins us now. You covered yellen when she was head of the fed. I want to ask you how atypical is this type of pick for the Treasury Department . Certainly. Aside from her being the first woman head of the Treasury Department if she is confirmed, she is really not a creature of washington politics. This is something that strikes her. Hen youve seen academic is one and a political is the other word to describe her. As we heard from some of the other guests, she was a former professor at uc berkeley. She is a celebrated economist in her own right. I like how Kathleen Hays put it earlier today, saying that yellen is not seen as proor antibank, but always trying to ensure the health of the banks, which is a welcome message to markets, especially looking for more stability from policymaking these days. We saw that positive initial Market Reaction and we continue to hear voices from across the political spectrum. Is talking about this as a smart choice. Its notable she would be a rare fed chief. Fed andt the new york then assumed the role as the head of the Treasury Department. Fed chiefsjust two who had served as treasury secretary in the early 1900s but in the 1970s. It has been some time. She has also been able to voice some of these lines of criticism from her wouldbe predecessors had in the job. Remember that a lot of people had criticism for people who was derided for being two cozy with markets since he headed up Goldman Sachs. Jack lew was seen as lacking any Foreign Policy experience, which is not a weakness of yellens, having been chair of the fed. One must observation for her not being of washington, when she was on the Bloomberg New economy she thought whether she would be a good treasury secretary, and instead of using the cliched washington line that she was happy in her job, she said she would let others decide. He said she would be a great treasury secretary on the panel. Certainly not a typical pick. Manus thank you so much. Michele jamrisko, our senior economy reporter. What will the guys of janet guise of janet yellen be . She is a labor economist and to that end, she will have that input into what comes after the cares act. Activision Goldman Sachs chief economist tells us u. S. Gdp will be back at p pandemic levels by the end of the Third Quarter in 2021. More right here on bloomberg daybreak europe. 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. Wannits timeight and 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. It allows for over 20 exercises. Do the aerotrainer super crunch, push ups, aero squat. It inflates in 30 seconds. Aerotrainer is tested to support over 500 pounds. Lose weight, look great, and be healthy. Go to aerotrainer. Com. Thats aero trainer. Com. Good morning. 6 30 a. M. In london. Live in dubai. This is day break europe. Here is what you need to know. U. S. Figures pushed higher as the formal switch to the administration with joe biden comes amid hopes an astrazeneca vaccine can stop severe cases of the coronavirus. The president elect looks set to nominate janet yellen as this is treasury secretary. She had become the first woman to hold the position. She has pushed for more spending during pandemic. Well discuss the latest strategy with the c. E. O. This afternoon and before then, well be joined by the chief executive of k. L. M. You dont want to misit. Good morning to you. 6 30 a. M. In london. Markets getting higher as we have this transition takingfect in d. C. Manus absolutely. Yellen we understand to the treasury secretary position. Please, sir, can i have some more. Blackrock upgrading u. S. Equities to overweight. Semiconductor Software Stocks is where you want to park your money. The best since 1995. You have the astrazeneca vaccine adding to the numbers and well have more on the e