less leverage and the equity market. >> we have huge levels of debt and we don't want to get into a debt trap. >> it is clear we are going to see downward revisions. the question is how strong they are. >> the fed has a lot of upside to accelerate. i think they will maintain this pace. >> covid is a great un- equalizer. the strong get stronger, the weak get weaker. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: good morning. this is "bloomberg surveillance ," live on bloomberg tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. tuesday morning, equity futures bouncing back a little bit, up 15 on the s&p 500. one week away from wrapping up this election. tom: we've really got to put in perspective the carnage yesterday.

we were down 5% from the peak on spx. where we are is about where we were on valentine's day. of course, you do remember valentine's day. that was pre-pandemic. all we have really done is pulled back to the pre-pandemic. we've got to put some perspective on this as we saw the dow down 800, 900 yesterday. jonathan: i'm not sure why i am the target of room bring valentine's day -- of remembering valentine's day. it's you i'm worried about. tom: that would be true. jonathan: because you often don't remember it. tom: that would be true. rosesgh i do remember a scenario with jon years ago. lisa: you are trying to bring me into this? [laughter] for those in engineering and history, this is a hugely emotional deal.

the difference from san jose to santa clara, it is like four, maybe five miles. but xilinx is one of the storied names coming out of fairchild years and years ago. to see this merger today, $35 billion large, it really says something about the combination of all of the history in the bay area. jonathan: $35 billion in stock the tale of two companies in one sector. intel not so great at the moment, and amd really performing. that seems to be the story in that industry at the moment. tom: to me, speaking as an amateur in engineering, to me the story is intel really didn't play. taking out 5000 employees at xilinx. the intel that we knew tenant 20 ibm, ago, may be akin to is a changed company.

jonathan: let's get to the data coming out in the united states. lisa: we could keep talking about valentine's day, or go with amd. just to fill out this concept of two different companies within the same industry, we will get a 30,000 foot view of business investment at 8:30 a.m. capital investment is a sign of , and by many accounts, it has been coming down. 1:00 p.m., u.s. auctions. there are a series of record-breaking treasury auctions this week. the question is, at what point does the incredible supply overwhelm the demand? so far, no sign of that. aftermarket, we are getting earnings from microsoft, trying to get a sense of whether they even matter or whether the big tech names set to report thursday, amazon, alphabet, apple, whether they will have to deliver or whether it is

completely an interest rate play. jonathan: the earnings a little bit later from microsoft, and then on thursday, we are going to hear from who? , all, amazon, facebook thursday afternoon. it is a massive day coming up a little later. tom: i am triple leveraged all-cash, but i read on amazon today very carefully. ende blunt, he is at high of the street. he's got a $4000 target on amazon, up 20% in short order. but he was extremely optimistic about not only become venetian of those cardboard boxes that everybody sees in their lobby -- not only the combination of those cardboard boxes that everybody sees in their lobby, but also the cloud. jonathan: stock up in the 0.7%.ket, up here's the price action this morning. sb 500nced 0.4% on the

-- on the s&p 500. tom was sleeping. in the bond market, 10 year yield unchanged. you know how this works. i framed the guest from morgan stanley, they talk about a v-shaped recovery, and they were right. everyone else was wrong. lisa asks some questions about why they might be wrong in a month, two months. those are the next five minutes here on bloomberg. andrew slimmon-- joins us now. what is the latest call right now? how do you see the evolution of this call at the house of morgan stanley that has been pretty spot on for the last six months? manager,s a portfolio i see the evolution as the equal weighted s&p outperforming cap weighted. as you know, up through september, the cap weighted was

massively outperforming equal weighted, massively outperforming the small-cap index, and then something happened. we are starting to see more of these economically sensitive stocks starting to pick up. ishink the evolution is it not so much at the market level. it is more the rest of the stocks that have really liked behind. i think they are starting to ,rice some type of reopening but they did get very overbought on a short-term basis. so things like yesterday don't surprise me at all, that we had a retrenchment. tom: i want you to find the character and color of patience right now. how do you counsel patience out to january or february? of next year? -- february of next year? andrew: well, i am counseling patience out to next tuesday.

look, i've got gray here. i've been in this business a long time. so many people react by doing things in their financial portfolio to express their political views that never turn out to be right. so i am trying to get people to just look past it. next year,ertains to there's a history of outbreaks of diseases in the fall after the initial outbreaks in the winter and spring previous, and you don't get as much of a pullback in the market because it is a known risk. we knew we were going to get another reemergence. so i don't think from a financial standpoint it will cause the destruction we had the first go round, and i think the market will begin to anticipate that we will get through this at some point, that comparison for a lot of

companies that were shut down this year is going to be very easy next year, and the market won't sit around and wait for the reality of that to happen next year. it is going to start to anticipate that as we get later into this year. i think we get through the election, and it doesn't really matter who is elected. the comparisons are going to be easy for a lot of these companies. tom: perhaps 10 minutes ago -- lisa: perhaps 10 minutes ago, i might have asked you what happens with the vaccine, or if the virus is spreading more than expected, but that would make me incredibly protectable to jon ferro, so instead i will ask theoretically, if someone were in a triple leveraged cash fund right now and were looking for an entry point, what they should be buying. should theyhow be arranging their portfolio for

what you are expecting next year? andrew: at this very moment, i sold in our that we portfolio a couple of financial stocks, not the big banks, but had gone up a lot. i trimmed one of our emerging market stocks that had gone up a lot. i think there's been a lot of risk on since the bottom of this little short-term pullback that happened in september, and a lot of things to me look very overbought on a short-term basis. risk looks overbought. it doesn't surprise me that we got a pullback. think, positioning wise, if we get further pullback anxiety into the election, but i would say is take advantage. get out of that cash position because i think it doesn't really matter who is elected. i think the market is heading higher into the next year. but again, i am much more confident in the equal weighted

then the cap weighted. jonathan: so on november 4, if we get any kind of negative dislocation, we know that you are a buyer. andrew: well, again, we knew that covid reemergence was a known risk. we know that dislocation is code for contested election. that is a known risk. we didn't know in 2000 about a contested election. bush v gore was an unknown risk. we had a pullback in that unknown risk. it doesn't mean we can't have a pullback, but i don't think it is going to be as much because we are all talking about it. so the question is, what are the unknown risks we are not talking about? what happens if the economy accelerates to fast and the fed changes policy? what if we have another fed chair next year? that's what the market tends to

react more negatively to. jonathan: andrew, great to catch up, sir. thank you. wasn't quite as i predicted, but it was close. [laughter] thank you very much. we can joke about it because i always congratulate them every time i come on. the house of morgan stanley over the last six months has been out there, constructive, positive, and they have been right. or as lisa would say, they have been right so far. tom: but this comes down to, for everybody listening and watching , are you linking politics directly into your investment or not? everybody has sort of a core belief on that. i've learned over the years that people really link, and others don't. the research capability is extraordinary. i was flabbergasted that long stem roses now don't cost what they cost on february 13 of any year. jonathan: i really -- oh really? how much do they cost?

tom: this was a university of chicago deep study. on amazon, they give you a free vase. that is way beneath what you spend for wilted roses on february 13. move the decimal point over what you got taken for on the island of manhattan. jonathan: i think i'm short roses going into the new year. tom: i'm looking for an entry point. [laughter] jonathan: you can slice that any which way you want. i might have been long roses. i am most certainly short roses. dave ricks of eli lilly is watching. he's probably rescheduling. coming up a little bit later on bloomberg. ♪ ritika: with the first word

news, i'm ritika gupta. amy coney barrett has been sworn in as a justice of the supreme court. the first of two required oath's was administered not long after the senate voted 52-48 to confirm her. every republican but one voted to confirm her. chief justice john roberts is to deliver the second oath today at the court. surge thatronavirus started with young americans has now reached the oldest population. , countiesto the cdc with the largest 65 and older population now have 19,000 cases per 100,000 residents, 60% higher than a month ago. china ramped up purchases of american goods last month. still, it is far from the target set out under phase one of the trade deal with the u.s. with three months to go in the

year, beijing is a little more than 1/3 of the way to $170 billion in u.s. imports. 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. ♪

>> it is the job of a judge to resist her policy preferences. it would be a dereliction of duty for her to give into them.

federal judges don't stand for election. thus, they have no basis for claiming that their preferences reflect those of the people. jonathan: amy coney barrett, supreme court justice. from new york and london this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. looking at the market this morning, we bounce back a little bit on the s&p 500, up 13. as the session grows older, things improve a little bit more , up 0.4%. lower,fx market, a euro a $1.17 handle. upthe last hour, we pick again, $1.1817. 10 basis points higher on the 10 year yield, and then we come back down again yesterday. yields unchanged on the session. tom: i thought it was really non-correlated. 4:00 a phone call around

p.m. after the "surveillance" nap, and really saw an uncorrelated market. i saw equities pullback, and that was about it. what we are doing with kevin cirilli is a lot on the immediate politics, with the video we just saw of justice barrett. i thought i would wander through the ages here. 55, 65, 66, 60, and then we get to clarence thomas, 72, and justice breyer, 82 years old. is there any assumption here that a biden presidency brings the court back towards neutrality? or do you put some weight in this raging debate about stacking the court? great point a because i think right now in always been we had used to traditionally

conservative or liberal supreme court judges. i think now, there's almost three camps on the supreme court. you've got the left, the right, and the middle, and the middle is going to be what moves the needle. tom: who is the middle? who is the anthony kennedy right now? kevin: i think to some extent, you could argue -- anything i say, i think there are some scholars who would suggest someone like gorsuch is more to the middle right now, and has been an incredibly important vote. but on the affordable care act case that is coming up, in the week following the election, i think we are going to have a new understanding of the makeup of the court. but that image, if you are looking at the front pages of your newspapers this morning or watching via television right withjust see the president an african-american supreme court justice, and of course, amy coney barrett is a female, that is the image that, one week

from an election, republicans are hoping will carry the swing vote or push turnout in suburbs and remind republicans who are very apprehensive of the president's rhetoric, of the president's approach to politics, in terms of what he is capable of delivering. it is a calculation, but it is an image that republicans feel is probably more beneficial to them than that first presidential debate. tom: i look at the moment that we are in. does any of the talk you just had a play into the election? to me, they are two discrete things. and i write? -- am i right? kevin: i don't know. you look at the latest polls that show florida with a razor thin tossup. democrats are looking to expand to map, looking

finally turn texas blue. look at what is happening in the carolinas. i don't think we have a good idea yet of what is going to happen. the president is going to be bulldozing through battleground states, holding three rallies yesterday in pennsylvania. he will be holding up to six rallies a day. this is the same playbook he used back in 2016. joe biden taking a much different approach, trying to be much more consistent in terms of his messaging. he feels that less is more, according to the sources i talk with on the reelection campaign. they feel that they are in a strong position. however, they are still anxious to have a repeat of 2016. jonathan: i keep bringing this up. i get it is the strategy. keep the spotlight on the president. the one thing he doesn't want to talk about, covid, is the one thing everyone is still talking about. but in the final week of campaigning, don't you think the former vp needs to be a little more visible? kevin: i think it is a great point, and i think whenever the

results of this election are determined, i think they will either be called political fumblednds or that they a massive political campaign. i just think it is a risk that they are taking, but it is without question a massive political risk. twocouldn't have more of contrasting candidates, and i am not talking about donald trump. i am talking about vice presidential nominee kamala harris and presidential nominee joe biden. harris loves to be on the trail, wants to be out there, and joe biden has taken a much different approach. i think his legacy and his decades long career as a politician, who he is now as a politician is not who he was in the sense that he's not that retail politician that we saw for decades. the meantime, senators

all went home. we were talking about talks about talks about fiscal support. we are no longer talking about talks. everyone went home. what gives? kevin: i spoke to kevin cramer, a republican from north dakota. he said, i always said the lame-duck session is winston u.s. would happen. i rolled my eyes. more were little optimistic. i think if you are wicking up this morning and trying to figure out where the fiscal stimulus is headed, he said the inform notsults will the first quarter negotiations, but the lame-duck negotiations. that is a fascinating nuance in terms of how the fiscal stimulus could be informed, of who has leverage in the month of december.

if it is republicans, it is going to be a much smaller price tag. but even if it is democrats, i think they would be willing to deal. short-term, smaller if biden wins, pass a massive amount in the first quarter of next year. jonathan: we are all waiting for the fiscal hawks to come out of hibernation once again. lisa: can't wait. jonathan: kevin cirilli, bloomberg chief washington correspondent. kevin'sttle feel for life on capitol hill then. shouting,t go around "hey kev." [laughter] tom: i was walking with mr. so really across lafayette park a number of months ago -- was mr. li across lafayette park on number of months ago. it is on the edge of worship. jonathan: i bet it is.

more of that still to come, a week away from a general election. hey, kev. do you want to see that again? come on. tom: i'm happy the tots won. it was spine tingling. jonathan: that's the good news. ♪ ♪ - i'm dough hirsch.

you may already know that goodrx

can help you save up to 80% on your prescriptions. unfortunately, many americans can't get to a doctor right now. the good news is that for many health issues you can see a doctor online. it's easy. just go to goodrx.com and with a few clicks you'll be treated by a licensed medical professional all from the comfort of your own home. visits are confidential and affordable. need a prescription? your doctor can send it to your pharmacy or have it mailed to you. get the healthcare you deserve at goodrx.com.

♪ jonathan: from london and new york, good morning to you all. alongside tom keene and lisa abramowicz, i'm jonathan ferro. tuesday morning, two hours away from the opening bell, here's the price action. the s&p 500 bouncing back, up 15, 0.4%. fuels and -- yields unchanged on the tenure. on foreign-exchange, the euro backup to a $1.18 handle. brian nick of nuveen says the lack of fiscal stimulus is weighing heavily on the market outlook. beenose programs have all expired, and there's not really a promise for any replacement until perhaps the middle of next year. i think what we are seeing is a pause by markets as they

evaluate what this is going to mean for earnings and for the economy as a whole in the fourth quarter. jonathan: jonathan: here's the take -- jonathan: here's the take of chris watling of longview economics. "the latest money supply data support the contention that further stimulus isn't necessary. what is needed is a vaccine. that would release the full effects of the stimulus." that is a take that chris watling doesn't just total loan. that is a take many people share with him dust doesn't just hold alone -- doesn't just hold alone. that is a take that many people share with him. tom: i love the idea of pushing against the pimco religion of new normal. what does it mean forward? chris: the old normal, if you like, it is kind of what goes around, comes around. the thing i like about economic theory is it changes all the time. people get stuck on one theory,

but the reality is the world changes, and you need to use different theory to address it, which is kind of what we are thinking about in the old normal, going back to where you were. what it means here, it is amazing how much cash has amassed on balance sheets. in some ways it is amazing. it some ways it isn't. we've had amazing transfer from the government to the household sector globally. it has been biggest in the states, where you had the extra $1200 checks. we are going back to that theory of helicopter money. it is clearly in play, isn't it? you've got americans with over $2 trillion now extra cash on their balance sheets, which is really quite something. tom: your research note is extraordinary on that. we are up to our eyeballs in cash. what will be the catalyst for someone to find comfort to put that to work? is why the biggest

stimulus really is the vaccine. i liken it to throwing the match onto the currency -- onto the kerosene. the stimulus is the kerosene. it is waiting for that match to hit it. once you get a vaccine, you begin the normalization of spending process and all of the sort of wealthy baby boomers who are retired or semi retired, and the high income workers who may have been sheltering, all of these people come out and start spending that cash they have been saving. you get the economy going and returning to normal. lisa: a lot of people agree with you. we are all waiting for a vaccine. the question is, what do you do in the meantime as millions of people lose their jobs and don't have any income, and the tourism industry is dead, and you end up with this situation where people can't be employed because there are many industries simply shut down because there is not a vaccine yet, and there may not

the one that is effective until next year and mass -- next year en masse. so what do you do? chris: it depends on your view of when the vaccine is coming, and the judgment on that is important. if the american administration's plan is truly enacted and you get a vaccine in the next month or two, by april of next year, everyone will be vaccinated. if you do, maybe you can hold on. if you don't and think it will take longer, maybe you can bridge that gap. but there's a short-term versus long-term playoff here. there's some real issues. i know people talk about long-term and employment and the issues there, but i think there are also issues of spending in the short-term and having some fiscal challenges in the medium-term to long-term. i think those need to be considered as well in the mix. personally, i'm an optimist. i think so much money is being thrown at this health problem, there's every chance we are going to get a vaccine, and lots

of good noises out there from health care ceos and so on. i would think it is almost worth holding on and pushing through for the next few months, but that is a political judgment, of course. jonathan: let's develop this conversation a little bit more. i don't think cash levels at the agrium level are reason alone to say we don't need a fiscal stimulus plan. if you look at the lower income groups that don't have those avings, but they do have higher marginal propensity to spend, if we get money into the hands of the lower income groups, then you've got some real stimulus, don't you? chris: sure. the low income is already basically spending back where it was, if they've got the money. as you say, they have to spend. they have to pay the bills. it is money in, money out. absolutely much higher marginal propensity to spend, and it will be helpful in that respect.

spends, it is on the deficit side and the fiscal debt side. it depends on how you want to go about things. the more you do helicopter money and build up government debt and effectively pay for it with newly created money, the more you risk medium-term inflation. there are trade-offs. i just think there is not a balanced conversation. you need a balanced conversation about all of the different trade-offs that are out there, and a better strategy. jonathan: let's have that now. 10 year yields right now are about 80 basis points. what is the trade-off? is let'se trade-off take up dalio's thesis of the into phases of monetary the fiscal cycle. it looks cheap at the moment, but i think we will get the turn of -- the return of monetary inflation. it feels a lot like the late 1960's, early 1970's, not that i

personally room for it terribly well -- personally remember it terribly well. there's no concerns about the monetary growth that's out there. then you get the potential of a repeat of the 1970's. get higher above average inflation, and you get the trade-off in terms of real growth versus inflation in normal gdp. and lower productivity growth as well. so there is a trade-off. i don't think bond yields are here for long. i think bond yields are probably the great short out there. if you get this vaccine, i am pretty convinced that is a great way to make money, whether it is 30 or 10 years or even pricing in a bit of a rate hike on the three or four year fed funds. if we get this economic boom next year, which i think is perfectly possible, and you are scared to return to monetary inflation, on yields are a screaming sell. lisa: a really bold call right

now. question on me to a what using monetary policy will end should be. will the fed be willing to and buyts balance sheet more treasuries to suppress bond yields going forward, even if inflation increases, leading to further negative real yield? do you think that that is an acceptable proposal for a good kind of stimulus going forward to help the economic recovery? chris: i suspect what we will have is the fed, it depends on the shape of the growth, and that in part depends on house vaccine comes in the shape of the pandemic. expecty scenario that we strong economic growth and a bit of a boom feel to it. the fed will start to back away from its stimulus, maybe 12, 18, 24 months down the road, but doing that rather than engaging in yield curve control. they won't feel the need to do that, and they won't want to

stoke up with more liquidity. but if the penned continues, then sure, there's ever reason you will get yield curve control. tom: one final question, which alludes to the 1960's inflation. i am going to call it walter heller inflation, so identified in the wonderful book on the 1960's and inflation. so far, the inflation has been wrong. what is different this time? chris: good question. absolutely, it is 10 years of wrong forecasts, isn't it? i would say the demographics is what is different. it needs high money stock and money velocity, and the best driver is really the growth in the working age population in particular, the 20 to 40-year-olds. these guys are starting to grow

as of this year. bbb movers dominated -- the baby boomers dominated 10 years ago. they are in retirement and moving in. the millennials are starting to have household formation, start to have babies. i think we are going to have a baby boom next year. it seems to be the most logical outcome of a lockdown. that age group is growing. money velocity should start to accelerate. that should give you the full monetary inflation equation, along with very high money stock, which is already there. . chris, always appreciate your insight. come back soon. chris watling of longview economics. potentially another baby boom on the horizon worldwide. tom: we will see. i don't know about that, but it is a really contentious theory that we just heard there, and it is good that we do that. we try to do all of the different theories out there linking in economics to finance

and investment. mr. watlingyou, as mentioned, it has been a long 10 years for those worried about money growth, those worried about debt and deficit increase. they just haven't seen yields come along. jonathan: not at all. i do think the point with demographics is an important one. we've got serious demographic issues across much of europe, japan, china. -- the expert on that, is one volume history of new york city, and his demographic study of italy really folds right into nominal gdp. jonathan: coming up on this ,rogram, i'm pleased to say dave ricks, eli lilly ceo, will be joining us very shortly. i feel like we are going to do this every segment. lisa: yep. tom: keep it up.

up 15, we advanced 0.4%. no one is going to understand why we are talking about roses on october 27. tom: because they are cheaper. lisa: what's different? jonathan: entry-level, rotate out of cash, all of that. right. this is bloomberg. [laughter] ♪ ritika: with the first word news, i'm ritika gupta. it is a big win for president trump and congressional republicans in the final week of the election campaign. the senate confirmed amy coney barrett to be the newest justice on the supreme court. that solidifies a 6-3 conservative majority. barrett may be asked to weigh in on cases that could determine the outcome of a close election. the paused clinical trial oven eli lilly antibody charity will not resume.

it probably would not help patients with advanced cases. still, other trials are ongoing to see if the drug helped patients earlier in the disease's course. the company's ceo joins "bloomberg surveillance" in just a moment. a labor union is suing president trump over an executive order that makes it easier to fire federal workers involved in policy decisions. they say it is in order for the president to require political loyalty from civil service workers. and it is a bright spot in a cloudy u.s. labor market. warehouse operators across the country are rushing to hire workers in the midst of the booming online sales. overall employment in the u.s. is still nearly 11 million below pre-virus levels, but the number of people working in the warehousing and storage industry has risen by 46,000 since february.

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. ritika gupta. this is bloomberg. ♪

♪ >> i understand there's a huge a lower of rushing out with a -- huge allure of rushing out with a vaccine, but when we go to

fast, we can disrupt the ability of clinical trials to occur for even better vaccines down the line, so we've got to strike this balance of making sure we don't undermine the largest kill effort in our rush to get something out. jonathan: really enjoyed the conversation earlier this morning with the novartis ceo. from london and new york this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. equities shaping up as follows this tuesday. we bounce back a little bit from yesterday's losses. biggest one-day loss for the s&p going back to late september. the s&p 500 up 0.5%. the euro firmer by a little more than 0.1%, $1.1825. treasuries unchanged around 80 basis points on the 10 year. tom: right now, and this is the joy as we consider this terrible pandemic, and all of us at "bloomberg surveillance" have done everything we can to bring you experts.

lilly,icks is out of eli and they are dominant in trying to find a solution, particularly what lilly did on the polio vaccine in 1955 was absolutely original, absolutely historic. is phrase from that time "safe, effective and potent." that is the hope right now for all of us. how close are we to safe, effective and potent? dave: thanks for having me on. it is obviously a time when the importance of our scientists' work is at a high. back to our days with the polio vaccine, it is really in our blood to respond to these public health crises. we are working on the medicine side, and i think we are close to understanding that treatment earlyonoclonal antibodies in the disease can make a significant difference. we announced data earlier in october regarding that, and we

got a certification at the fda redoing that data. tom: which therapy has the best outcome where we can say we have a vaccine? peter hotels at baylor medicine is saying we need something cheap and old-school. jon spoke with novartis this morning. there's moderna, all the rest of them. which approach seems to be the one that will get us to a societal vaccine? dave: i think on the vaccine side, the good news is there's lots of approaches being tried. in our business, we need data. i don't to get makes sense to guess at which would be the most effective. the good news is we will know that pretty soon. the early ones, as you pointed that hasw technology never produced a human vaccine before, but looks pretty promising in terms of the ability to generate our own antibody response. that is a good sign for defeating the virus or preventing infectious spread. we don't know how long that will

last. there's other approaches that have produced vaccines, modified virus, taking different viruses and nothing element of the covid virus on to them. those are more proven. they are a little harder to scale, but they also may produce a good response. mostly i am confident because we have so many shots on goal. really an unprecedented number so quickly. so i think science will win in the end. it is just hard to pick a winner at this point in the horse race. tom: that is a hockey phrase, not a sucker phrase -- not a soccer phrase. jonathan: you don't know what dave meant. i am just going to interpret it as a soccer phrase. you mentioned the word scale. i want to return to antibody therapies. please help me understand how difficult it is to scale something up quickly in large amounts as soon as you get the green light. dave: it is difficult.

because it is so difficult, we started commercial many factoring in the first week in july. we had to basically aim at a target that hadn't arrived at its point yet. we didn't know the dose. we didn't know whether the drug could work. we didn't know in which setting it would work. we announced a study we had been conducting with the nih we are going to pause because it is in , later stage at the disease whereas in the early stage of the disease, it looks highly effective. we already started that process. ed is about four months from beginning to end, best case, sister manufacturing -- best case, to start manufacturing and have output. monoclonal antibodies are some of the most complicated and expensive type of medicines to make. we've harnessed five different sites within our network, collaborating with engine and working with a large contract many facture owned by samsung to

sequester a significant amount of volume. even then, we know it won't be enough for all of the needs based on the current infection rates, so we need to work on lower doses and concentrating these important therapies where they convict biggest impact. for us right now, that is high risk patients right as they are diagnosed. lisa: there's also a question of profitability. your latest earnings report which just came out said you expect to spend $400 million on covid therapies, exploring what could potentially work, and there is a natural cap to whatever you can charge for these remedies because there is a public health need and benefit right now. how profitable can these therapies actually be based on the human interest here? dave: today we announced earnings. it is a good point. we showed another solid quarter. we grew revenue and profit amidst this pandemic we are in. i think it shows the resilience of a company like ours.

as with think about pricing and access, our first priority is that patients pay nothing. we know if there is out-of-pocket cost, economics will start to differentiate who gets the drug, and we think that health status should be the only factor considered. we are working with governments to procure and sell our medicines and distribute within their markets. in terms of pricing, what we are thinking about carefully is to create a price that immediately creates value not just for us, but for the system, meaning it saves money, direct costs very quickly. we have a demonstrated we can reduce hospitalization risk in high-risk patients between 70% and 80%. in the u.s., the hospitalization is about 200 the dollars -- is about $200,000 per person. so we are working on the exact price. it won't be as profitable as other products. we expect modest return for shareholders based on our modeling today. but i think companies like ours

are billed for moments like this. our job is to invest in risk, use our science to solve tough problems, and there is a tough problem at hand right now. that is why we are applying ourselves to it. jonathan: i thing i speak for all of us when i say good luck in the year ahead. thank you for your time this morning. i think it is fascinating just on terms of the approval, you can't wait for the approval. you've got to scale this things up monks ago -- you've got to scale this thing up months ago. tom: it is incredibly more difficult than the likeness of the punditry which is out there. whether it is the imperial college of london, baylor, on and on, what you did with novartis. this is really difficult science. jonathan: enter the industry is working really hard to find a solution. coming up on this program, ferridge, state street

head of microstrategy. equity futures near session highs. we advanced 0.5%. one weeks ago until we wrap up this election -- one week to go until we wrap up this election. this is bloomberg. ♪

>> we are in an environment now where there is much less leverage in the equity market. >> we have huge levels of debt and we don't want to get into a debt trap. >> it is clear we are going to see downward revisions in many businesses. the question is how strong they are. >> the fed has a lot of upside to accelerate. i think be a going to maintain this pace. >> it is all the same recession. >> covid is the great un-equalizer. the strong get stronger. the weak get weaker. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. tom: good morning, everyone. "bloomberg surveillance," on radio-t