>> those at the bottom are having a very hard time. >> we are having an income cliff when the consumer is supposed to go out and spend. >> the market is not as well prepared as it normally is for these kind of downside events. >> this is a market thinking at some point, stimulus is going to happen. >> the fed has a lot of upside to accelerate. >> we need support for the economy, both from monetary and fiscal policy. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from london and new york, for our audience worldwide, good morning, good morning. this is "bloomberg surveillance ," live on bloomberg tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. the focus of global markets on america's capital, washington, d.c. the last debate is behind us. a change of approach from the president. will it resonate in the final week of campaigning? tom: the zeitgeist this morning

is clearly it was a more civil debate. it was a debate where mr. trump got much higher marks on first blush then he saw in the first debate, but with 11 days to go, i am going to say what i think -- say not what i think, maybe what we all think, but what we hear from the pros, the money matters, and the genoa one from delaware has the money -- the gentleman from delaware has the money. i saw a number of reports this morning that clearly, mr. biden is ahead in this poll, that poll, but the president is tightening up, as was widely predicted. jonathan: 11 days to go before we can get a deal on capitol hill on fiscal stimulus between house democrats and the administration and republicans. lisa: oh, come on. we are not getting a deal. ifo want to say on pulling, -- say on polling, if the polls

have it wrong, political polling, the whole industry is dead. i am interested to hear what larry kudlow says. he is joining some bloomberg show and some guy who hosts the show at that point. [laughter] jonathan: he's a really nice guy. him?: you like jonathan: i will catch up with bridgewater after that, mohamed el-erian. lisa: you can promote it later. you are right, you've got a fantastic lineup. weuld be interesting what saw in europe, this divergence between services and manufacturers ongoing. service is feeling the brunt of the ongoing coronavirus crisis, people not going out to eat, etc.. at 1:00 p.m., baker hughes u.s. rig count. i am want to get on the heels of

the debate last night, were oil became such a major issue. how much pain is there in this industry, where oil production in the u.s. has contracted by 1/4 since the beginning of this year? tom: this is really important, i think. i can't believe i am doing this, folks. a reallye has important interview today because the theme of the week, the mystery about negative interest rates. at the zero bound means so much for everyone. tom: -- jonathan: the inability to stimulate the economy a big topic of debate with myself and bridgewater a little later after the huge dispersion of performance and diversion we have seen. will we see a period of convergence? view is increasingly much more divergence of the year to come, and that is where the conversation will be, that and a huge cash cushion that some people are still carrying. i think a big question is where does that cash go?

tom: of course, sonali basak's special tonight is the same thing. there's a lot of money out there, and they've got to put it to work. jonathan: thanks for the promo. here's the price action this friday morning. equity markets look like this this friday. equity futures positive six. market, 86 points on the tenure. really muted price action following a more civil debate in nashville, tennessee. pres. trump: success is going to bring us together. we are on the road to success, but i am cutting taxes, and he wants to raise everybody's taxes and put new regulations on everything. he will kill it. if he gets in, you will have a depression the likes of which you have never seen. mr. biden: i represent all of you, whether you vote for me or against me, and i am going to make sure you are represented. i am going to give you hope.

we are going to choose science over fiction. we're going to choose hope over fear. we are going to choose to move forward because we have enormous opportunities to make things better. jonathan: that was the last word on the big stage at the final debate between vice president joe biden and the president of the united states donald trump. steve chiavarone joins us now, federated investors portfolio manager. how are you navigating the next couple of weeks? on january focused 22 because on january 22, i am going to have a president. i don't know who, but i will have someone, which means the political uncertainty will be behind me. i think the virus will be less tightly with further development of treatments and vaccine. fedink i will have a that is still not thinking about thinking about raising rates. positive earnings comps ahead of me in the second quarter.

i want to own that in size, and if the market is going to give me cheaper prices to add to those cyclical parts of the market between now and then, i will be happy to take that opportunity. tom: you've been dead on on this, on asset allocation as well. do you play the large-cap game, or is it truly time to rotate to small, rotate to international, sell the apple and by the b -- and buy the caterpillar? is going to be a little less good. i bought everything from amazon in april. i bought a lot from amazon this week, just not everything. you've got stimulus coming, not this week, but over the next couple of months. the vaccine is positive for cyclicals. and tax changes, if we do get a democrat sweep, both the corporate tax and the

capital gains tax change could benefit cyclicals. that's the play for us. lisa: can big tech continue to rally of interest rates rise? steve: i don't think -- i think it can work in an absolute sense. i don't think it outperforms. if interest rates are rising because the economy continues to recover -- and let's make no mistake, we have added more jobs back to the economy in the last five months than any five month stretch in history times for. we've got retail sales back above where they were before the crisis. housing is the best since 2006. if that's why rates are rising, all risk assets can do well. we just think the cyclicals will do better because they are going to be more directly tied to that growth. jonathan: do you put the financials in that bucket? steve: financials and energy might be the two contrarian plays on a democratic sweep. it has got a fed intent on

keeping rates at zero and i end up getting a fiscal package that trillion,lion, $3 growth in inflation expectations may move high. the short end may be anchored, and you could get a steeper yield curve. same thing with energy. if you are going to really impact supply, i don't want to be an enp player that doesn't have a great balance sheet, but if i am exxon, i make it down to that 5% dividend yield if you are sitting on that resource and prices are forced meaningfully higher. this could be contrarian calls if we get a d sweep. we would argue that we think this is to a very competitive election and a very uncertain outcome over the next 11 days. jonathan: so you have not taken any fresh positions in the financials or in energy over the last couple of months? august,hat we did do in because we believe in this theme of the economic recovery, we neutralized our overweight to

tech and growth. we went overweight now you cyclicals, small caps, dividend payers. frankly, i would like to be more in that position, but given the uncertainty over the next two to three to four weeks, we are tilted in the right direction, but we would use weakness to get more tilted. tom: what is the shop doing in health care? we've got the judicial process on the affordable care act, but we ever we do as you stagger to january 22, and for that matter, july 22, you've got to mckay play on health care. how do you calibrate that? how do you calculate that? steve: there's really two outcomes to the selection. we can try to pretend there's a lot, but there's two. there's a democrat sweep, which is a change in policy. then there's different configurations of divided government, which are essentially what we have in place right now. with a change in government, health care, pharma

and biotech got a real sweetheart deal in the original aca. if the biden plan is for aca plus, we don't think there's a lot of reasons to be concerned. there's lipservice around pricing on both sides, but we think the story in health care is you are going to have a stop piling of medical goods -- a stockpiling in medical goods, continued development of interesting therapeutics. at worst, it is a neutral for us. jonathan: steve, great to catch up. always good to hear from you. steve chiavarone of federated investors. i do wonder whether we overplay the importance of the politics sometimes, particularly this time. let's pick a name, tesla. let's think about how well tesla has done over the last four years, through an administration that is very pro-fossil fuels, oil and energy. the stock has done terrifically well. that is what gets set on this program. maybe don't overthink the politics sometimes. good companies doing good things will do well.

up: what i learned growing is i don't believe in it. i think you are 100% right. politics is important. it is certainly something we need to cover in all the attributes, but at the same time, it is about the company's and their company stories, and it is always underestimated how corporate officers react to what they are handed. jonathan: the last four years, and i stress from a market perspective, they have reduced to two things. tax cuts first, and then the trade war. they are the two dominant forces from this administration over the last four years, and we are thinking about all kinds of things over the next two weeks. jonathan: i think arguably -- lisa: i think arguably the biggest issue people are not considering ra split congress. this could have an impact on markets because it impacts the fiscal support we could get next year, and that is a game changer for markets. that i think is where people are focused.

jonathan: i would agree. the consensus assumption is that we get some type of fiscal package. the question would be what happens if the fiscal standoff persists well into 2021? good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. this is bloomberg. with the first word news, i'm ritika gupta. president trump and joe biden covered a wide range of issues in last nights second debate. amongst them, racism, corruption, and the manner in which the president handled the coronavirus. pres. trump: we are learning to live with it. we have no choice. we can't lock ourselves up in a basement like joe does. mr. biden: he says we are learning to live with it. people are learning to die with it. >> you also said a vaccine will become owing within weeks -- will be coming within weeks. is that a guaranty? pres. trump: no, it is not a guarantee, but it will be coming

before the end of the year. mr. biden: anyone who is not in control, anyone saying i do not takers possibility, anyone responsible for that many deaths should not remain president of the united states of america. ritika: the candidates largely comply with rules that allowed for them time to speak. governments have started to impose curfews more widely to stop a resurgence of the coronavirus. daily virus cases are hitting records across the continent. france recorded more than 40,000 new cases for the first time. the u.k. has signed its first major trade deal since brexit. the agreement with japan largely preserves the terms under which the u.k. traded with tokyo as part of the european union. meanwhile, there are signs of progress in trade talks between the u.k. and the eu. 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. i'm ritika gupta. this is bloomberg.

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mr. biden:mr. biden: what i would make china do is play by the international rules. he's caused the deficit to go

up, not down. pres. trump: they are paying billions and billions of dollars. i just gave $28 billion to our farmers. jonathan: the president of the united states alongside former vice president joe biden. from london and new york this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. here's the friday morning price action. equity futures look a little something like this on the s&p 500. we drift higher by eight points, up 0.2%. in the bond market, yields getting up to around 86 basis points on the 10 year. in foreign-exchange, complemented by dollar weakness against a stronger euro. that has been the story through much of this week. up about 0.2% on the currency pair. a standout move for the week has got to be treasuries lower, yields higher, approaching the levels that we hit back in that first week of june. tom: you can talk at 9:00 on the open about this. i think it is important to see twos-tens widen out and some of the other dynamics there.

to me, the real story is the real yield -- again, another one of your properties -- coming to -0.91%. that is a huge deal. jonathan: 1:00 p.m. eastern time. just throwing that out there. tom: thank you. lisa: anything else? who else is joining? tom: bloomberg has the single best headline of the debate last night. onio parker and his team graft, covid and racism. i think that tackles some of the themes they really ramped up into last night. let's get to kevin cirilli right now, sleepless in nashville. we are thrilled he could join us, our chief washington correspondent. i've heard enough about the debate. days to go, do, 10 nine days to go, eight days to go? the sprint until election day, and they're going to be fighting the battleground states. no doubt you will be seeing

that. president trump has campaign events in florida, pennsylvania, north carolina, and ditto for joe biden. it is going to be fascinating to watch not just where they deploy some of the top surrogates -- president obama will have a campaign event in florida as well this weekend -- but also to see where they put their money. where do they spend their money, and at what point is there oversaturation in campaign ads in battleground states? kevin: you mentioned it earlier -- tom: you mentioned it earlier, wisconsin is a new interest as well. you've got madison, where there's no republicans. milwaukee is an interesting city, maybe kenosha with the tensions there months ago. tell us about the rest of wisconsin. kevin: i think from the wisconsin perspective, this is a state where the republicans are hoping to cling onto it. you mentioned kenosha county, a county that president trump

carried by more than just a couple hundred votes against hillary clinton, and that could really be the deciding factor in a key tossup like wisconsin. but moving beyond just that particular proportion of the map, democrats are trying to put together a blue wave. they are not just playing to win the electoral college. they want to have a win in the senate as well in order to advance many of the biden administration's agenda coalition items, as it relates to energy policy, as it relates to tax policy. so much at stake for the democrat coalition as well, even they were debating, i think you really saw that boil over in terms of how joe biden would navigate the far left of his party, which has been increasingly more vocal, has made inroads, and contrasting that from what you saw from president trump, which quite honestly, was joe biden trying

to peel off more republican voters and left about trying to sort out the far left of his party. jonathan: we have talked repeatedly about republican senators up for reelection distancing themselves from the president. let's talk about former vice president joe biden and democrats that might have to distance themselves from the energy comments one night. we've already heard from one democratic congresswoman seeking reelection in oklahoma, immediately after that debate, stepping back from the presidential candidate and his comments on energy. do you expect to see more that? kevin: absolutely. here in tennessee, where there is a democrat christopher hale running in a deeply conservative district, running as a new type of democrat for reelection, he is even distancing himself from those energy comments. conor lamb is going to have to distance himself from those comments. that raises some of the questions about what the democratic party is going to ,ook for in a green new deal

and where there is a lot of infusion, may be by design, terms of trying to understand what a new green deal coalition would look for, and what it would precisely mean. there was a key pennsylvania moment last night, were joe biden referenced the delaware basin. that is from an era in which there were eight or nine refineries in that part of the state, as well as in delaware. it has since been renamed delaware city. to take you behind the scenes here, the biden campaign is planning to reestablish and re-create the obama coalition, which didn't really have the 2012 andctor in the 2008 elections behind it. so that is a gamble. but right now, it is paying off. we are going to have to wait and see if that holds on election day, but many democrats, from

the conversations i'm having, especially in battleground states, and rustbelt portions of this country, are really seeking clarity on what precisely it means to not ban fracking, but try to get rid of emissions by 2025. lisa: who has a better ground game to get out the vote? kevin: i think it is a tale of two spins. when i asked top level sources on both sides, they both tell me that they are winning. so i think it is ultimately going to come down to whether or not people show up. republicans say they have been factoring and taking into account for voters to show up on election day, that they are motivated to show up to the polls. democrats say they have been really pushing for people that didn't show up last time in african-american communities, for example, to really mobilize that vote ahead of election day with early voting. jonathan: one thing we do know,

40 million plus have already shown up. kevin, great to see you. tom keene, it is almost a cheap guide to political punditry. it is going to be about the turnout. it's always about the turnout. tom: exactly. this is so important. there's habits we are into. i'm sure it is the same in the united kingdom. the bbc goes up north or something, you can always set the clock to it on the night of a election. may need a 50 million sum by the weekend, but it is truly all blown out. lisa: can i ask something? jon keeps talking about how orderly the u.k. election processes, how orderly parliament is. is that an accurate characterization? jonathan: i don't think it is. one thing i will say is that my experience with british politicians is that they are a

little bit more resilient to firm, hard questioning, that they will think you are just a little but harsh. they will not think you are being politically biased. tom: so you will be harsh with kudlow? jonathan: this is bloomberg. ♪ ♪

♪ jonathan: from londonjonathan: and new york, for our audience worldwide, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. two hours away from the opening bell, here's the price action for you. let's get you up to speed on where we are. s&p 500 futures up around eight points, advancing 0.2%. 0.9%on the week by about coming into friday's session. firmer,x market, euro $1.1850. really mixed pmi's we touched on earlier. we will talk about that a little bit later. in the commodity market, crude $40.80.y 0.1%, that's where we go next, an unexpected moment on the energy industry in nashville, tennessee. take a listen. pres. trump: would you close down the oil industry?

mr. biden: i would transition from the oil industry, yes. pres. trump: that's a big statement. mr. biden: that is a big statement. >> why would you do that? mr. biden: because the oil industry pollutes significantly. pres. trump: oh, i see. mr. biden: if you let me finish the statement, because it has to be replaced by renewable energy over time. tom: this is what we do at "bloomberg surveillance." if you have any interest in hydrocarbons, any interest in the future of this great debate, not out to november, not out to the inauguration, but how about 10 years, we have the correct guest for good conversation. we rip up the script with off-center beschloss -- with off sunna beschloss -- with afsaneh beschloss. what is the political economics of the less oil these two

candidates were talking about? what is your timeline? afsaneh: what is really interesting is that the markets are taking care of it themselves. recently,e bp ceo on and also the way the market is going right now and the way people are behaving, every utility company is increasing the share of its renewable u.s.y in the it takes the largest growth sector and energy in texas, renewable energy. solar energy. go into the middle east. the largest investments that are going on in the middle east in saudi, and uae in solar. the point that was missed last night was the fact that people are already investing in solar,

already in wind. tom: i was at the washington news bureau of bloombergquint spencer abraham long ago and far away, our secretary of energy -- with spencer abraham long ago and far away, our sec. of energy. we did not have an oil policy. do we need one? such a huge was part of the economy. remember when we did have an energy policy at one point, or what we call an energy policy. energy was likely 10% of the economy. today the size of the energy sector, which is mainly the oil and gas sector, in the u.s. is close to 3%. so energy, while being very toortant, is not compared

health sector, compared to the other sectors that have been growing. it is not that we don't need use in our cars and manufacturing, but it is not exactly as important as it was in the period you are talking about, and when i started working on energy in my career. jonathan: let's talk about where you think we are going. right now we are producing about 10 million barrels of oil a day in the united states. what do you think the trajectory as of this over the next five to 10 years? think as vice president biden said, it has to be a very slow transition. when i started working on this , it wason 20 years ago pretty slow. as we have seen in the last two years, natural gas has taken a bigger share from coal and oil, and solar and wind are taking a bigger share from everything else.

so the transition could be a electric we see the cars have been a little slower to come to market. tesla has obviously been fabulous, and other parts are still having technical problems. but if you look at the economy moving forward, i would think that if it is in 10 years or 25 years, there will be a transition with faster and faster growth toward renewables as the technology that is helping us with vaccines help us move that much faster. has the pandemic accelerated that shift? afsaneh: the pandemic hasn't slowed it down. i thing is interesting is oil and gas cap slowed down with the -- gas. slowed down

with the pandemic. but renewable energy investments have been going pretty close to schedule, may be delayed a little bit, but much faster than the oil and gas investments that were in the works before covid. jonathan: a lot of this begs the question what do we need the government to do here, if private companies are heading in this direction anyway? afsaneh: what the government could do, we had a lot of support for the oil and gas industry over the last 20, 30 years. if some of them could also move more into the renewable energy, i think it could be really helpful. also, in terms of government heaven clear policy on regulation and making it easier to invest in infrastructure and in energy, and particular in renewable energy, could make it easier.

as you know, the regulation around solar energy has been very confusing. it has been on, off, on, off. so having summing that is clear and long term help the industry. jonathan: let's end on infrastructure more broadly. after the election, the so-called trump trade was all about infrastructure spending. it wasn't just about tax cuts. then it just did not happen. why does it not happen in america. why can't we make it happen? it ish: i think interesting because 2008, it did not happen either. there was a moment where we could have put some of the money in. came in to the economy it didn't happen during the last four years, and i'm more optimistic about the next four years. i think post covid, covid has had a lot of physical and psychological people impacts on

people. this might be the time where you have industry, you have the financial sector, and you have the government coming together to build infrastructure. i think some of the delays we could blame on all kinds of biggest problems about infrastructure in our country is the federal versus state issues, and some of the regulations that have delayed infrastructure. the is something that democrats come together with the republicans and talk things out so that our roads and bridges keep up with the chinese. it is really interesting how, especially post covid, the chinese have continued with their infra structure but also continued investing in their new find home so -- in their new financial structure lisa: we are still -- in their new financial structure. we are still in the kind of old mode. they are bringing new technology, clean energy, new

infrastructure, new health policies. i think it is time for us to bring this things together and at the forefront. lisa: it is interesting to me how much the rest of the world is waiting for the u.s. to come up with some sort of fiscal support bill. how much this the recovery in the developing world in particular hinge on the u.s. passing fiscal stimulus? afsaneh: we have something like a $3 trillion fiscal stimulus. overll be large and impact other countries. but when we look at washington and the imf world bank meeting, which was hugely different than what tom keene and i have experienced before with the imf, we also have, and addition to the u.s. stimulus, the chief economist of the imf says countries should start by looking -- should start

borrowing a lot more. if you put that together with our stimulus, it could be a very interesting period of higher growth in the economy, plus might be going faster into a period of .nflation so we might have different problems on our hands very soon. tom: you are of iran. is president bidens strategy with iran the same as president obama's? --: i think countries afsaneh: i think countries are evolving. i'm not sure if his policy is the same. i thick's policy is to engage, much like he said last night, with allies so that the approach to iran will be an approach that

we can reach together were allies together. it is not just one country versus another country. back, ireak iran's youk that region -- if bring iran back to the global economy, i thing that region could be in a much better place. jonathan: thank you for your time. tom keene, i am not sure what the daylight is like between former president obama and former vice president joe biden, but i think it is fair to say there's a lot of difference between the approach of biden and president trump. tom: i will say, i wish there was a lot more depth on actual policy in china. i go back to the bloomberg headline, which just had all of that back and forth. you've done bad things, i've done bad things. i just don't know if the electorate is truly engaged in that. jonathan: i think a lot of the

electorate has already decided. the undecided this time around, is anyone still left to decide? who hasn't decided? tom: lisa and i have decided we need more promotion of mr. kudlow's interview here. lisa: please, yes. jonathan: absolutely. the open is coming up in about one hour and 20 minutes time, and on that show will be larry el-erian, justin bieber i heard. [laughter] tom: harry styles. gigi. lisa: debuting the baby. jonathan: gigi hadeed. you can catch that after the show. [laughter] you guys are giving the image trouble. this is bloomberg. ritika: with the first word

news, i'm ritika gupta. the chances of congress passing a stimulus package before the election are fading fast. house speaker nancy pelosi and treasury secretary steven mnuchin continue to bicker over the details of the almost $2 trillion proposal. meanwhile, resistance from senate republicans is building, -- so house democrats remdesivir has already been prescribed under emergency youth authorization. it was given to president trump and he was diagnosed with the virus. l'oreal reported a surprise increase in sales. the french company with held by deliveries of cosmetics after lockdown. we spoke with the ceo. 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. i'm ritika gupta. this is bloomberg. ♪

pres. trump: nancy pelosi doesn't want to approve it. i do. >> you are the president. pres. trump: but i still have to

get it. mr. biden: the republican leader in the senate says he will not pass it. he does not have the republican votes. pres. trump: nancy pelosi doesn't want to approve anything because she would love to have some victories on a date called november 3. mr. biden: the heroes act has been sitting there, and look at what's happening. jonathan: the debate last night between joe biden and president trump, tennessee. also a flavor of the negotiations of the last three months and the inability to pass a fiscal stimulus bill down in washington, d.c. here's the price action this friday morning. equity futures shaping up as follows. a lift on the s&p 500. there we are, up about 0.3%. yields into the little bit higher, only six basis points on the 10 year. more broadly through g10, weaker dollar. euro-dollar up 0.3%. tom: that gets my note as well. this is the fact. stanford is up by silicon

valley. everyone talks about computer education at stanford, berkeley, and the rest. harvard has the definitive and original program. vito sperduto came out of the harvard computer shop, he's at rbc capital markets, head of global m&a. i've got to go to google follies. the size, the mass that so many predicted for technology. america gotten too big? vito: i don't think so. obviously, the larger players are getting the headlines, but there's such a vibrant community below that in terms of the players developing new technologies. what is interesting is if you look at some of the technologies that have come to the forefront during this pandemic and how quickly those valuations have jumped, it is becoming as an overall sector still an important driver. tom: can you help us?

i know you go back to the little tabs and the card and all of that, but can you help me with what we've heard from eric schmidt and others that if there is fair choice, is not monopoly? do you buy that? vito: i think the statistics when you look at the size of the search market, and what google represents, they've obviously got the better mouse trap, and i think they've driven a larger amount of volume through their search engine, and certainly it is built as an algorithm that the more that goes through it, the better it is. we have all become commonly used to it. we have to make sure it is an even playing field, but it is an easy target, i would say, especially for both sides of the aisle at a time like this, 11 days from the election. it is an easy headline to make. interesting is

less attention goes on big banks , and there's this idea that consolidation will be welcome among the financial sector. the rumor is that wells fargo is looking to sell its asset management arm, and perhaps rumored buyers to be bank of .merica is this an opportune time for banks to consolidate, to get bigger, with the attention all on tech? vito: i would say we have looked very closely at what sectors we expect to be players in the m&a market as we are coming out of the pandemic. if you go back to the financial crisis, we saw a lot of financial institutions who were probably a bit more distressed combine at that point. we are seeing morgan stanley build up their loan business with the eaton vance transaction, and certainly others that are trying to shape their portfolios. but i think the banks are in a much stronger position today than they were 12 years ago.

as a result, they are positioned to do some transactions, but i expect a lot of volume from an m&a perspective to be more in the tech spaces, and we have just seen this massive resurgence in energy which we have been expecting for some time. this point, there is growing concern about how big the biggest companies are getting. are you prepared for or hearing about regulatory pressure going getard, a people trying to deals now before a blue wave? or is that basically lipservice, and people are not expecting things to change so much? vito: what we have seen amongst our clients is they are very comfortable with the forward outlook. they have plans regardless of which party obtains power. certainly there has been the threat of greater regulatory scrutiny, but the better companies are prepared for that. they know what their plans are

going to be in the event that they get criticized with regard to their size. at the same time, as they consider transactions, they know full well what the repercussions are going to be from the regulators and from the market as well. i do expect to see transactions among some of the larger players, but i really look at that as they are going to be acquiring some specific assets. thee they will take opportunity to invest in some businesses, but i think other sectors are probably going to be bigger players in larger consolidations as well. tom: i guess the capital ratios have been solved, but is there a 2021gic pressure into to say we've got to improve? vito: the strategic pressure right now hasn't really changed.

i think the better operators are still playing by the same playbook, trying to make sure they are staying within so-called ratios where they are comfortable. if you look at whether it is the banks still playing by the same playbook, or if you look at some of her example, number of clients we are involved with, trying to make sure they are positioned to operate in a longer period of volatility as we move forward. they are very concerned about what amount of leverage do i have a balance sheet going forward. does it allow me to consider opportunities that come up, and does it allow the executing of my strategic plans? the pandemic has accelerated the projection -- the progression of a number of trends. move the quicker right now. maybe you were building capacity internally. maybe it helps you move quicker

and survive in the short term. jonathan: and probably costs little bit more, too. isn't that the story, the great acceleration? it rings true for a lot of people. to be adavos, it used five-year plan, then a three year plan, and i think with the pandemic, it is like, where are we in march? jonathan: do you remember anything from davos this year? seriously? tom: the piano bar. that's all i remember. i can't think of a more as covidt data, just was taking hold of the chinese cities. tom: it was clumsy. i think you and i made a best mate -- made the best of it, including an interview with bob prince we had in january robert prince of bridgewater on the open in the 9:00 our. lisa: after harry styles.

jonathan: is that another tease? that's nice, isn't it? who's anchoring that show? lisa: some guy. jonathan: alongside tom keene and lisa abramowicz, i'm jonathan ferro. kathy jones coming up. she promised us she would play the piano. she promised us. ♪

>> does at the bottom are having a very hard time. >> we are having this income cliff at a time when consumers are supposed to go out and spend. >> the market is not as well-prepared as it normally is for these kind of downside events. >> this is a market thinking at some point, stimulus is going to happen. >> the fed has a lot of upside to accelerate. i think they are going to maintain this pace. >> we need support for the economy both from monetary and fiscal policy. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. good morning, everyone. on