Selloff and a dollar selloff at the same time . What does that actually mean . We will break that down as well. Guy and youve got bitcoin rocketing to a record high. Out of the United States, pending home sales month on month a little weaker than anticipated, 1. 1 . Expected at 1 . The prior number revised a little higher. These have absolutely rocketed. The year on your number now stands at plus 19. 5 , which is another incredible number to think about. Lets get back to the vaccine. Is monday, and every monday morning it seems we get some news. Moderna is planning to request clearance for its Coronavirus Vaccine in the u. S. And europe today. Ceo speaking earlier to bloomberg. We have millions of doses ready. We have more and more every couple of days. Joining us now is robert. He spoke a little earlier on. I think they have a review coming up on the 17th. After the potential clearance on that date, how quickly can we get things up and running . Robert they have been told in publicu. S. Fda to expect review by advisors on december 17, and there is a possibility of it getting cleared, if everything goes well, 24 to 72 hours after that. U. S. Regulators havent officially confirmed that eight yet, but it is in line with what , which isgiven pfizer about a week ahead of modernas vaccine, being reviewed on december 10. If it gets official public review on december 17, it could be out and being distributed potentially as soon as around december 20. Orx what kind of agreements structure does moderna have in place to distribute over 24 to 72 hours . Robert it is going to be working with a Government Contractor mckesson, helping with the distribution. Out as are ready to ship soon as they get the authorization. Exactly what doses go to which states, not clear yet, but all of that is being worked out, and mckesson is going to be involved. Hopefully that will go well. Alix expecting 20 million doses in the u. S. By the end of the year. Thank you, bloombergs robert langreth. Fourvember, we have had positive mondays a vaccine news. It has been a killer for weeks. Here with us is bloombergs Abigail Doolittle to take us through it. Abigail it really has been a recordbreaking month for stock so far. L, its vestment the russell, its best month ever. Thet of this tied to vaccine, as you were just discussing. Traders taking a bit of a breather, understandable after such a recordbreaking month, but on average, look at monday relative to the other days, up more than 1 . Four mondays ago the biggest one on the pfizer news. Then you see going right through the week, investors, traders not participating quite as much, so real optimism around the possibility of reopening to some sort of normality in the second half of 2020. Driving stocks up in a big way on a monday. If we take a look at the s p 500 all world index, we are headed towards the best month ever, up nearly 13 . Gold really catching my eye. For the s p 500 financials sector come on pace for its best month since 2009. That was the green shoots months. Thats the degree of buying optimism that we do have right now. Theres always tension in the markets. If we take a look at the vix on the year, it is well off of the highs on the vix right now is holding, so while it suggests there is clearly complacency on a historic basis, anything above 2012 you anything above 20 tells you investors have some heightened sense of risk, so there could be volatility ahead. The question is whether it will be eight normal selling after a recordbreaking month or something bigger. Guy it dropped pretty precipitously during the month, hasnt it . Thank you indeed. Joining us to carry on the conversation is manys despond deshpande,esh barclays head of equity derivatives strategy. The vix has come down to around that 20 level, and doesnt seem to want to go any lower. What should that tell us about perception of risk after the month that we just had . Maneesh you are absolutely right, we got three catalysts. ,e got the vaccine, earnings Corporate Tax hikes. That is pushing the market higher. But one clear headwind facing investors is what is going to coronawith the u. S. Waves. The third wave in the u. S. , the second wave in europe. Are going to have some lockdown from that . That is what is causing the vix to stay elevated. Theres a premium before it starts to go below 15 which is what usually does when you have a proper wisconn valley. Alix actual troop proper risk on rally. Alix when you take a look at caps,um, value into small into energy and industrials in europe, into banks and the recovery trade, how do you understand the distinction between the vix still pricing and risk, but it feels like the equity market is not . Maneesh i think there is a bit of a disconnect, and obviously the kind of investors who trade options are to some extent french. Thats part of it. But i think options investors are worried about that. Though the overall market is certainly higher, the rotation has only just begun in my mind. Ledrotation from what has the current rally this year out of big cap tech into more cyclical sectors or to some extent value stocks has barely begun. So we have a long way to go there. Guy how far does that rotation going reality does that rotation go in reality . I am wondering whether or not at some point there is a kind of story within value that is a little bit more negative, i. E. If you look at the travel stocks, for instance, they are going to need to raise an awful lot of equity, and that can be dilutive. Technology, weve accelerated a bunch of trends during this crisis. Those now look firmly established in terms of things like work from home. Greath i think that is a point. The way we frame the problem is that during this crisis, there have been groups of stocks who have had positive benefits, and others who were negatively impacted. It is not going to be a complete reversal here, so whatever happens this year is not just going to flip next year because the scars, like you said, are going to take some time to heal. At the same time, some stocks are groups of companies which , those benefits are more permanent. There are those whose benefit has been temporary, and that is going to reverse much more , but that herd is going to reverse. That is a temporary hurt that will come back after the vaccine. But we have to distinguish between what we call a mediumterm positive and mediumterm negative stock, and you really have to be careful about that. I think the big cap tech stocks are rated for some rotation, but it will not be a massive rotation out of them because these are stocks who are generating cash, they are good companies. It is just a leadership change that has to happen. Alix to your point, if you dont have a huge rising bond yields, we were almost at 1 , but backed off of that. Inflation a spec patients were ing a few months ago, Inflation Expectations were rising a few months ago, arent really any more. What actions are we talking about that are sustainable . Maneesh that is an important point. Is a of people think this value versus growth rotation, but we would frame it as a covid versus covid healing rotation. Is a coincidence to some extent that the Growth Stocks of the last five or six years have rallied substantially and also benefited this year. This crisis could have been completely different. If it was not a lockdown crisis, it is not obvious that ecommerce stocks would have benefited as they have now. As the covid situation normalizes and we get the lockdowns lifted, that vector will be there. The longterm real rates underperformance of value, that is not going away. Maybe it is a reversal of the trends rather than a reversal for allll the way back of the under performance the value has had for the last three or four years. Guy just one final point which haventalluding to, we seen bond yields move significantly higher this month. I am wondering whether or not, for this value rotation trade to really catch fire, we need confirmation from the bond market for this to take place. On what kindepends of value stocks you are talking about. For example, the classic value right now is energy and financials. Work,nancials to really you need those to go up. That they could go up. Energy iser hand, also probably leslie to benefit more because oil is expected to go up if you have a proper recovery, but again, the headwinds is also a concern. So the classic value we are not that excited about. What we are excited about is the new growth. So industrials, hardware. Their growth rates are now going to rival the growth rates of large cap tech. It is a growth to a new growth rotation rather than a value rotation. Alix that is such an important note. Thanks very much. Good to chat with you. Coming up, we are going to continue this conversation with a deeper dive into small caps and that socalled value trade with francis gannon, royce Investment Partners coast cio. This is bloomberg partners cio. Cio partners co this is bloomberg. Alix the conditions for smallcap outperformance may be coming together in 2021, according to research from bloomberg intelligence. Is that rotation now sustainable . Joining us now, francis gannon, chiefinvestments Co Investment officer. How much of that is currently priced into the sector . Francis it was an incredibly strong month. We saw massive rotation into the small caps space, and we probably had the strongest monthly return going back to the late 1970s. You could argue that a lot has been priced in, but on the same is an i would say this index that has been trailing on a relative basis to its large cap resin largecap brethren for a period of time here. Guy i understand why it is thought that you would see the small caps outperform. That is certainly the historical precedent. What we have seen is a lot of ,ompanies take on a lot of debt and a lot of Companies Really struggle through this. Is this going to be a blanket bounceback . How granular . Is this a topdown trade . Francis i believe this is a bottoms up trade, and i say that because i think this is going to be were selective in terms of how you approach the smallcap asset class. If you look at the russell 2000, it is comprised of almost 48 of the companies with no earnings at all, an ethic you have to focus on companies that have earnings that are anchored to the economic rebound, which will continue into the new year. In terms of the opportunity set, it is more around cyclical areas versus defensive areas. I think you could say this about the full market as well. In the Narrow Economic environment, as the economy continues to broaden out, you should see more of these cyclical areas do quite well, and i think they will do better than areas of the full market. Alix we were just talking to many stash panned too many stash pound too manys dish all to Maneesh Deshpande of barclays. Industrials have kind of been left behind these more cyclical, economically sensitive areas of the market. I think what people miss in todays market is this idea of innovation. Theres enormous innovation taking place today in the industrial sector of the United States, machinery businesses, will bet i think benefiting small caps, and i think that is why you have to be very selective in terms of how you approach the smallcap asset class right now. Guy how operationally geared are these companies to the recovery as a result of the crisis . Have a slimmeddown . Are the cost basis more efficient . How much of a coiled spring is there here . Francis i think it is probably more coiled than you think, but small caps have this perception fragiley are a very companies, that these companies are inherently fragile to begin with. Debting that has a lot of is negative. But if you approach the asset class with a process that tends to focus on Better Business models, Companies Generating a lot of free cash flow, i think that is the way you are approaching it in todays environment. Many of these businesses have been through cycles like this before, even though the cause of this one has been dramatically different, but companies have been through these type of cycles before, so they know what to do and how to address their Business Models so that they are ready for the rebound, should we see it. I think you are beginning to see that. You saw some of that in the Third Quarter earning. In fact, and some of the outlook statements the come panisse were making were actually quite positive. So i think the coiled spring from a smallcap perspective is more around these more economically sensitive areas. I think that is the opportunity set. It is going to be based on a broadening of the overall economy, the global economy, but i think you are going to see a notinuation of innovation only in technology, but in industrials and Building Supply companies, etc. All of that is taking place right now as we focus more and more on what 2021 will be, which i hope will be a year of recovery instead of closings and recession. Alix we all hope that. I am going to give you a chance in the last minute here to talk your book. What are the names you are looking at to satisfy this quota you are looking at for small caps . Francis there are a couple of ways to approach it. You can find it in a lot of different industries, but i think these industrial businesses continue to be a great way to play it. Look at Companies Like manhattan associates. Look at bigger brand name retailers that have come down into our space of late, names like ralph lauren, which could be interesting here. Look at pnc Insurance Companies that are going through a really interesting pricing cycle right now. I think theres opportunity in a lot of different sectors, but focus more and more on these economically sensitive areas that will really benefit of the economy continues to broaden out. To getancis, interesting your insight. Thanks for taking this time to bring it to us. This is bloomberg. Ritika its time for the Bloomberg Business flash, a look at some of the biggest business stories in the news right now. Im ritika gupta. The credit unit at Blackstone Group is going shopping for quantifier power. The alternative asset manager is set to buy Technology Driven credit investing firm dci. The firm oversees about 7. 5 billion in assets. The dci purchased will allow blackstone to wade deeper into the world of Investment Grade bonds. Two of wall streets biggest data providers are joining together. S p global has agreed to buy ihf market for about 39 billion in stock. It is the second biggest deal of the year. The proposed tie up is part of a race for scale. The industrys largest players are trying to capitalize on surging demand for data analytics. Bloomberg lp, the parent to bloomberg news, competes with market with ihs mark with ihs markit and us be global and s p global. Guy data and analytics obviously the lifeblood of the Financial Sector now, and this is definitely a bet. It is a takeover in theory, but feels almost like a merger. It is a definite bet on bigger is better. I guess theres a bunch of things that could potentially go wrong here. Regulatory probably is one of them, i would have thought. Weve seen what has happened. The other thing is culture is really important. It is a u. S. Company and a londonbased company. Is it going to work . Is the id going to work . Theres lots of risks. Alix and you guys talk funny sometimes. Guy all the time, actually. Alix so that is going to be tricky. You are looking at a norm is amount of m a volume in the quarter. At an enormous amount of m a volume in the quarter, and we are not even done yet. So i cant imagine it is going to happen in the next couple of weeks. A huge credit deal for their unit as well. We are just talking about it, merger monday, but it is also vaccine monday. Coming up next hour, we will talk to stefan bonsall to stephane bancel, moderna ceo. 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. Alix live from new york, im alix steel, with guy johnson in london. This is bloomberg markets. Joe biden officially nominated janet yellen as treasury secretary today. Joining us is michael mckee, Bloomberg Economics and policy correspondent. Katerina, lets start with you. We are learning about dental nominees to his economic staff. Yes, thats right. Thank you for having me. The biden team has announced nominate the head of the office of management and budget, the first woman of color and the first asianamerican to lead omb. Theres another nominee as yellens deputy at the treasury, and they have made some pix for the council of economic advisors. They have nominated cecelia ralph, Jared Bernstein, and Heather Boucher. Cecelia will be the first black person in that position as head Jared Bernstein and Heather Boucher are very progressive, leftleaning economists in the d. C. Think those are very new, out of the typical mold of people you would see in those positions. Guy are there going to be any issues getting all of these people confirmed . Catarina the only issue ive heard a bit about is perhaps near attendant perhaps neera tanden might have difficulty getting through a republican congress, but i dont think you would see problems wi