♪ caroline: from bloomberg's world headquarters in new york, i am caroline hyde. romaine: here's where we stand in u.s. financial markets. a big pat on amazon, apple, ford pllying, putting the s and within striking distance of its all-time high. todayne: stocks took off despite the stimulus stalemate in washington. some members of the house were told not to expect any action

this week. many center thickens are rejecting the white house proposal for a deal. there is regime change in the air. economic policy that is edging out central bankers potentially. the focus on fiscal policy has been front and center in the fight against covid. this aid is important as companies like american airlines , allstate, disney cut jobs. the shift in economic policy likely to be felt across developed and emerging-market countries. this is going to have a worldwide report effect. countries are getting more and ofe willing around the idea balanced budgets. really two things going on at once. one is the explosion of deficit spending with respect to covid.

,retty much everywhere you look the last crisis as a share of gdp. the second aspect really is the idea of like a philosophical change. even after the crisis, perhaps there needs to be less focus on monetary policy and more on the fiscal. romaine: it will be interesting to see if that handoff occurs here. you think about economic theory that sort of dominated not only the u.s. but most of the developed world. maybe a new cycle is about to begin. joe: i want to bring in ben holland, bloomberg economy editor. we talk about fiscal policy all the needwith stimulus, for more spending. how much does it feel like there really is going to be an appetite to do more on the fiscal front even as the acute phase of this crisis, even as

some of the pain from this crisis starts to dissipate? ben: i think that the thing that is really different this time is the weakness of the other fronts. in monetary front. it is quite instructive to go back to 2008. you might say on the face of it, the policy response has been quite similar. significant amounts of deficit spending. but what happened after that was of course the fiscal authorities pulled back from the effort. all these other tools we can use, we can do this. can buy bonds, we can do quantitative easing. they did that stuff and the recovery was not that great. now the central bank is

explicitly saying there is not much we can do right now. that was striking last week with two or three fed policymakers saying. caroline: they are very much trying to throw the ball in the fiscal court. some are catching it, some are not. many thought germany would never start to loosen the purse strings. what about the fact that we are not getting much spent in the u.s.? is there hope that will be unleashed? ben: problems with this stuff everywhere. there is no single fiscal authority. fiscal spending is done as a negotiating -- germany which -- fiscal policy.

ben holland. we are going to leave it there only because we are having some audio issues with him. one thing that was pointed out is really this potential shift in economic theory, the idea that the keynesians might finally get their revenge after 40 years on the sidelines. it will be interesting to see whether there is the political will to move in this direction. in washington, we still don't have another round of stimulus. bring up,er thing you fiscal policy is or overtly political and politicized then monetary policy. i think you could make an argument that there was embedded thatics in the assumption the fed can make moves up or which state is getting the

money, which favored special interest group is getting the money in any discussion for increased spending. theyine: across the pond, ended up doubling down, really focusing on climate, aggressively focusing on climate, against climate change, as a way they would be spending the bulk of the 750 billion euros. social bonds, getting people back to work. they have to have a political nuance. romaine: if you are trying to handicap the idea of whether we are going to go down this road, you have to think about where monetary policy fits. some of the failures but also the proverbial ammunition. negative rates around the world rates around the

world, the fiscal side of the equation becomes more important. curveou look at the yield , flat as a pancake. in the u.s., 30 years. it is not that the fed is out of ammunition, but they can't really be pushed i holland lower unless you are willing to in the u.s. entertain negative rates. romaine: what ammunition is there? the the policy, loaning to cities and states. romaine: that is political, too. joe: that is probably another reason the fed does not want to go there. certainly part of the reason we see the market spiraling higher today, it seems to be baked in. here comes biden, a blue win, and more stimulus. joe: the real money printer.

romaine: much more to talk about coming up on "what'd you miss?" we will be back in a moment. this is bloomberg. ♪

bloombergthis is "what'd you miss?" business flash. we want to get you up to speed with the latest headlines. one of netflix's biggest hits is about to be aired for free on pluto tv. they will show episodes of "narcos". seriesve rights for the for the next six months. the european union has apparently come up with a hit list of about 20 large tech ,ompanies including facebook

amazon, apple, and google. if eu regulators have their way, the companies would have to share data with rivals and be more transparent. another item on the eu agenda is of course brexit. eu continuing negotiations to reach a trade deal. announcements not only for parliament but then to the nation by the prime minister. it seems that the pound has given up on caring about this at the moment, more focused on the u.s. election, may be the optimistic side, this eu summit that boris johnson wanted some sort of deal by, it is not really matter. joe: you mean to tell me that there is this deadline, key date coming up for brexit, but that it may not be the key date? i find that hard to believe.

caroline: fish are important. romaine: about three quarters of the world agrees with you. caroline: we are going to shift gears. some important breaking news about 4:15. disney announcing it will do a strategic reorientation of its entertainment businesses. let's look at the market reaction with what is happening to disney share prices. the hope that they will be focusing first and foremost on content. romaine: there were a lot of criticisms in the social media world about the content on disney plus. over the past few days, there has been a a lot of concern out there. caroline: we can speak to the seventh ceo in disney history. bob chapek joining us to discuss these changes. you say, given the incredible

success of disney plus, the creative engines are going to be content?n creative bob: right now, there is an assumption that content created by one of our creative engines gets predestined to go on that same distribution channel. what we are trying to do now is build a sense of independence, that can make the decision as to how we take each piece of content regardless where it is made in the company and figuring out the optimal strategy for distributing it and monetizing it in the marketplace. caroline: you were the president of distribution for walt disney studios. how do you want to see distribution change? a consumert to take

first approach. we want the consumer to guide us on how they want to see content. we have the greatest franchises, the greatest executives steering our content, the greatest filmmakers. consumers need to tell us how they want to enjoy our content. we are going to go ahead and take their cues. right now, they are telling us that they want to see more content on disney plus and hulu. caroline: you just released "mulan," direct to disney plus. a newnounced that "soul," production, will navigate away from theaters. something just in the pandemic or more and more will you be going straight to disney plus? bob: consumers will have their choices. the pandemic has affected the speed with which we are dealing

with things. this move we made today would be happening with or without pandemic. we want consumers to have more choices. we want them to steer the ship. obviously, we have a lot of great relationships with legacy strip eaters. some of them are inside our own company. at the same time, we are going to take our cues from the future and continuing the road we have been on. caroline: talk to us about that legacy, whether of espn, lou -- h you now control dec ulu, which you now control, will we ever see those as one? bob: we will be unveiling new strategy in the future at our investor conference. so, stay tuned on specifics. been i amthis has

sure days, weeks, months in the making. act last week we had an vest investor basically calling you to focus more on content saying, invest your dividends, roll up together hulu, espn plus, disney plus into one. how much did you take that learning? do you have an amount in your mind as to how much is going to be going on the making of content? bob: this has been in the works for many months. we see the trend is a first choice for consumers. as it pertains to our investors, from our like to hear investors and any thesis they want to forward. at the same time, we have to do what is right for our business. we believe that direct to consumer is a great opportunity

for the walt disney company. to do that, we will have to make huge increases in investment in our content. i am not going to comment on any decision-making that our board will do in terms of a dividend going forward. spends aboutflix $15 billion a year on content. are you looking at that magnitude? bob: what i will say is we will have something new virtually every week on our platforms, across all of our franchises, between pixar, disney, marvel, lucas. we have got some really great content. our guests love it. there is so much story to be told, somebody avenues to do it in. how do we take those content creation centers inside the company, those franchises, and catalyze them across all our

distribution channels but especially distribution channels. caroline: me, myself, my son, complete addicts of disney plus. difficult is it to produce content at the moment? bob: we are focused on the northstar, which is pleasing our guests and maximizing our wealth. there are certainly a lot of distractions, in terms of some of the financial challenges with our parks, whether with limited , or even withosed our cruise ships. as we are looking out toward our future, we are not letting anything happening in the short or medium term get us off track. we are going faster, bigger, stronger along the same route set up six months ago, a year ago, a year and a half ago. caroline: you were previously chairman of disney parks,

experiences, products, that must've hurt a lot to have to announce 28,000 job cuts last month, a quarter of the themepark workforce. talk to us about how optimistic you are about possibly returning to growth? bob: our cast members are the center of the magic at our parks. every single cast-guest interaction is an opportunity for us to make magic. for us to make a decision like we did is certainly painful. we are looking forward to a more optimistic future where we can welcome our guests beyond a particular limit every day in the park, to keep that six foot social distancing, two open up our cruise ships. and to really move forward with our business so we can employ as many cast members as possible and bring the magic back to our guests. withine: you went liaising

-- are you liaising with government officials to that effect? bob: we are trying to make sure that government officials take into account the success we have had around the world. shanghai, hong kong, tokyo, walt disney world. we have been open for months and months, and we have not had any issues. you look at what we did with the nba bubble, it is extraordinary. that should be taken into account as opposed to just looking at an arbitrary cutoff point. i will tell you that we of course consulted with health officials on the reopening levels of people in our park, in terms of the requirements to wear a mask, temperature checks, social distancing, etc. we just wish that the state of

california what look at our institutingead of some arbitrary -- some arbitrary standard that is quite frankly precluding people from going back to work for caroline: what about needing financial help, particularly those that are unemployed? how much do you hope the government can produce more fiscal stimulus no more money to support business and growth -- stimulus, more money to support business and growth of the economy ? bob: the faster we can get back to work, the more companies can provide some sort of safety net. caroline: will we see more layoffs? bob: we certainly hope not. we are keeping a close eye on what the government does. right now, we are still

retaining a whole bunch of cast members on furlough with the hope that someday soon we will get some realistic guidelines. caroline: thank you for talking to us about the reorganization, the focus on content. i think we all look forward to the next round of mental lori and this month. -- of mandalorian this month. disney, also a brother of economic activity. we were talking about some of -- enthusiasm creeping into u.s. markets, you saw a lot of enthusiasm, even in some of those local currencies. joe: e.m. had just gotten obliterated. it took a while for the risk appetite to emerge. it has picked up. if you look at e.m. bonds, another chart that has surpassed

all-time highs. with that come back, let's turn streete insight to state emerging-market strategist emily weiss. let's start big picture. i want to get into policy landscape. e.m.'s across the board have the momentum that surprise people in developed markets and ability to return to precrisis levels of activity? emily: a bit. we are certainly seeing that momentum taking place. that is live in large part due to the fact that we have had this incredible year for policy particularly globally but also in emerging markets where we are seeing central banks entering territory, quantitative easing programs, even on the fiscal stimulus side, more expensive public spending.

concern there was some a few months ago or maybe over a year ago, this idea that there would be this race to the bottom. i guess some of those concerns did not bear out. across thearied diverse group of emerging markets. some were already closer to zero than others. significantly, they were countries that still had a room -- still had a lot of room to cut rates, still entering into a zero lower bound, seeing more of oneturn to lowe's based historical standards. what helped alleviate that was the asset purchase programs that being --oyed and it deployed, then when you add in the aspect of fiscal stimulus, helping to provide a floor, you end up with a powerful force.

joe: historically, when we talk about emerging markets, we often talk about it within the context of central bank easing or hiking cycle. what about when central banks are at zero for a long time and the question becomes the degree to which developed markets are willing to engage in fiscal stimulus to -- fiscal stimulus. does that force you to create a new framework in terms of ups and downs of money flowing into ?.m.'s emily: it certainly does. as some of these central banks reach their lower bound, we are kind of in wait and see mode to see how the economy is reacting to the stimulus done thus far. the pace of the recovery globally is slowing.

that is cause for concern especially in emerging markets where really only china and some select countries have returned to that pre-pandemic activity level. romaine: we are going to get some more data tomorrow out of china or later tonight. is it not possible for china to sort of drag e.m.'s up with it or is there such a disconnect that that can't be done anymore? emily: i think what is important to note this time is china has had a different response to what we saw versus the financial crisis or 2016. while there is stimulus on the fiscal side, we have not seen the same stimulus on the monetary side. the impact is still there in terms of a better china lifting all boats, so to say, but less then we had seen previously and more of a regional impact. romaine: emily, great to get your thoughts.

state street emerging-market strategist. caroline: the three musketeers. that is all from "what'd you miss?" romaine: this is bloomberg. ♪ so you're a small business,

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but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business. caroline: i am caroline hyde. in for emily chang. this is bloomberg technology. the nasdaq jumping 4% at one point. this all happened on the eve of apple's next iphone launch and prime day. plus, confirmation hearing day one. amy coney barrett appears before the committee. we will hear from soe