manus: good morning from bloomberg's middle east headquarters in dubai. i am manus cranny. annmarie hordern alongside me. it is daybreak europe. your top stories this morning. seek to be a president who wants to divide -- not to divide but to unify. who only sees the united states. wasting no time,

president-elect joe biden's transition will start with a plan to curb coronavirus as u.s. cases top 100,000 again. president trump with legal challenges. risk-on kicks up again. global equities head for records on optimism which abound on the biden administration. the dollar is weaker. itsman sachs slashes target. global response. she looks forward to remove partnership. angela merkel says the transatlantic friendship is indispensable. good morning from dubai. great to be back together with you. i was watching you this friday from the gym as usual. this market has not got a concession speech. this market is euphoric. this market could be seriously misguided. they take us to a moment that

the reflation trade, you might have to wait until the end of the second quarter so if you look at bernstein, goldman's, they are all saying the same thing. the reflation trade might be stymied on a gridlocked senate. good morning. annmarie: certainly. it's clear the democrats are going to take the white house but this was not the blue sweep everyone was expecting. we don't know which way the senate is going to lean. the market seems to be pricing in gridlock. let's take a look at where we are monday morning. exuberance in the markets, celebrating its victory, putting uncertainty behind them. also including the potential of a republican senate. s&p 500 futures blowing out to the upside at 1.5%. dollar weakness across the board is the name of the game. part of this is the fact that we don't want to hold the u.s. dollar because investors think

it could be thrown out the window with that uncertainty. euro-dollar trending towards 119 and then we trade this morning at 81 basis points. slashing the forecast on the 10 year yield on a divided congress to 75 basis points. joe biden is preparing as he takes office as the 46th president of the united states by readying a plan to tackle the coronavirus. get to derek wallbank, our senior editor. what can we expect in terms of movement on the tackling of the virus besides the fact that he is setting up his task force today? derek: joe biden is proceeding as if he is the president-elect and not as if president donald trump is still launching legal challenges. he mentioned he is going to plan toa coronavirus schedule his office. he will meet with his task force. he is getting to going. we should be expecting some

announcements from the biden campaign that it is now a transition of their senior staffing potentially this week. we should expect that they are going full steam ahead even though, you know, president donald trump has not conceded and counting is going on. it seems academic to all except for the president and his most loyal supporters. manus: great to have you with us this morning. what more have we heard from president trump? we are watching some people really saying the republican party are trying to get their heads around how do they accommodate this situation? are we in a vacuum? derek: you are dealing with a particularly difficult thing because, you know, you have some pressures from some within the republican party to start moving on towards transition but i

should note a couple of things. the inbox of a lot of republicans orders is bombarded by fundraising appeals. the president has been very sharp about wanting to have a legal defense firm -- fund that is robust so there's lots of select tissue students -- solicitations. if you look at a lot of the senior needles -- leaders in congress, in the president's own party, you are not seeing calls to pack it up. a lot of those calls are coming from people who are outside, so within the core of the republican party, he's not really getting the push. the other thing i want to note is world leaders are moving on. you are seeing comments even from some of the president's biggest allies abroad like

benjamin netanyahu in israel, congratulating joe biden, saying they are looking forward to working with democrats. go,ar as world governments everyone seems to be preparing for life with biden. we have yet to see that concession speech. derek wallbank, our editor in charge, tracking the latest on the election. moveve been tracking every from societe generale. annmarie leaned into the dollar. great to have you with us. down for the fifth day in a row. the dollar is behaving as if we have cleared all political uncertainty. but perhaps gridlock, which gives us lower for longer with the fed. is that a jumping off point, a fair jumping off point for the dollar this morning? we seem to have a small

problem with his sound. try --just going to annmarie: how's just going to say. last week, he is the one that said it does not matter who is in the white house. what matters is who is running the fed and it is the fed that matters in terms of the u.s. dollar. manus: absolutely. has technology caught up with us? let's get to laura for the first word news. we will get back to him in just a moment. technology is a terrible thing.

laura wright at london hq. laura: vice president-elect kamala harris is giving america a lot of firsts. she is the first woman, the first black person, and the first indian-american in the role. her husband will be the first man in the first jewish person to be spouse to a president or vice president. while i may the first woman in this office, i will not be the last. because every little girl watching tonight sees that this is a country of possibilities. and to the children of our country, regardless of your youer, our country has sent a clear message. a chaotic weekend in turkey. president erdogan's son-in-law unexpectedly resigned one day after the central bank governor was fired. he cited unspecified health reasons for stepping aside. as beingdely seen groomed has a potential successor. it could signal a dramatic shift

in economic policy. in thailand, right police fired water cannons to disperse protesters trying to approach the royal palace in bangkok. demonstrators wanted to call on the keen to accept changes to the monarchy's power. medical services say to people and one officer were injured. protesters abandoned the march after the police action. 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. this is bloomberg. manus. incomesoftbank net numbers coming at ¥627.5 billion. that is quadruple the estimate. they had a profit of ¥784 billion and they bought a total of ¥2.7 trillion of highly liquid assets but they be paid

$9.44 billion barring on alibaba shares back in july. we will talk more softbank in just a moment. coming up on the show, it is day five of the declines. the dollar slides on the biden win. what could that mean for the rest of the fx complex? this is bloomberg. ♪

>> the president sitting in the white house, not acknowledging it, i think there's lots of republicans who are trying to feel their way around that. me, i think it was so important early on to say for the president, if your basis for not conceding is there was voter fraud, then show us. >> one has to be careful in the

choice of words. when you say the election was corrupt or stolen, that is unfortunately rhetoric that gets picked up by authoritarians around the world and it also discourages confidence that our democratic process -- in our democratic process here at home. annmarie: mitt romney and chris christie, both republicans, addressing claims from donald trump of widespread voter fraud. i believe your sound is working now. think you so much for hanging with us ring technical difficulties. last week, you said it did not matter who was in the white house. now, we have a president-elect. the market is taking that on board. is that set to continue? fair, it has gone faster and further than most people would have guessed. euphoriaa sense of that will be punctured by

reality. on the economic weakness in europe that's coming from the second wave of the pandemic and that will feed threw two it. i think the most important thing about the next few years is that the jay powell said has promised to keep monetary policy accommodative for a long time, a really long time, and that is why a rally in the dollar that started in 2011 should have come to an end and will continue to weekend. fall isd of the initial pretty extreme to what i thought was going to happen but i would not change of view that said over the next year or two, the dollar is going to steadily weaken. manus: good to have you with us. let's talk about what could interrupt the downward trajectory. faster vaccine,

two could be perhaps a more valiant u.s. economy, and that could cause the short end of the curve to reprice. the most shortow since january. economyo v's, a valiant and a vaccine, could they reprice the dollar? kit: his vaccine would change the nature of the weak dollar because it would broaden it out. if you get a global economic recovery, you will be in a situation that will remind you a andle bit of 2004 to 2006 money will look for opportunity elsewhere so if i was an emerging market specialist, i would be really excited about a vaccine coming online right now because the big investment opportunities with returns anchored he major developed economies is elsewhere so good news on that front. less dramatic.

is goingr u.s. economy to be dollar positive at this point in time when it is a stronger u.s. economy that is not dragging the rest of the world with it in a really big way. enoughgot to be strong that we, the market, question the fed's commitment to allowing inflation overshoot and so on and so forth, but you know, the contrast if you get a more resilient u.s. economy and weakness in europe, for example, that changes. annmarie: before we get to the inauguration, we have two months left on the trump presidency. the market seems to be shrugging off these legal fights. any has not seen substantiated claim that there was widespread substantial fraud. he still has two months left in office and it has been an untraditional presidency. are there any risks to the market that you would be watching in the next two months? kit: is that all the sons into

something really ugly, if it spreads out, then that would be something that could affect u.s. asset prices. we will probably take our cue and the foreign exchange market. if u.s. equity market holds its nerve, and people think, ok, this is a period of uncertainty, we think you know where the destination is and we think the destination is positive for u.s. equities, then i think the dollar remains under some pressure, but if you have got a really significant loss of confidence, particularly in the equity market, perhaps to manus's point, maybe with a significant opening in the yield curve as the long and lost its nerve, that could be more tricky and you may see some pavement] the dollar, but the foreign exchange market is not instinctively going to say that there is a difficult situation with the legal challenge. let's by the dollar. might buy the yen but not the

dollar. manus: let's have a look at the binomial distribution. there's a lot of unknown black swans out there in a potentially scorched scenario. one victorious currency is the yuan. they ate of the rally. you are looking at a wall of money carrying on from your thought process about em. with the yield differential, does money flow to the one on economics, yield, and perhaps a reparation of china-u.s. relations at some level? kit: i think there's absolutely no doubt that money is flowing there. at the moment, china is getting the bulk of capital flows. clearly, the bond market is a big drop. capital outflows have slowed to some degree. you don't read lots of stories

about chinese people buying property up and down the west coast because there's not nearly as many tourism outflows. persuasively for a stronger yuan. that would trump any other concern you might have were not for the fact that there is no doubt the yuan is a controlled currency so it's only allowed to go as far as the policymakers in beijing decide to let it go and we permanently remain nervous that they don't want their currency to get too strong because why would they? that is the battle. the world is set up for money to flow into the yuan. the question is what happens on the other site to recycle it for policymakers? manus: we have seen the strength -- annmarie: that makes sense. we have seen the strength in the yuan. have the weakness in the dollar which means many currencies will benefit, but really, what currencies could and if it biden administration -- could benefit

under a biden administration? kit: you could get a broadly weaker dollar because of the nature of the policies he wants to put in place. if we do get a more peaceful environment for global trade and we start healing love global economy in that sense, i think some of the ones that have in trade sensitive economies perhaps start to do well as well. the australian dollar is when i look at that looks to me as if at these levels, it's very competitively priced in a better outlook and that could make a difference. some of the peripheral european ones i think get a big lift from this potentially as well and obviously, latin america looks fondly at the sort of biden presidency. but again, all of that i think those come back and depend on getting past the economic hit from the pandemic, tackling a third wave of the virus in the past thise and moving

next three-month period with all of that. there is a danger. the biggest danger in the near term is we are terribly optimistic about what this means in the long run. both now, the u.s. has some uncertainty on the challenge and considerable entertain -- uncertainty in terms of the third wave of the virus. manus: absolutely. 78 days of potential volatility. thank you so much. strategist chief fx at societe generale. china's top officials have yet to congratulate joe biden on his presidential win. the currency is on a tear. we take a closer look at the deeper dive into the yuan. this is bloomberg. ♪

>> there is a huge sigh of relief i think i the nation that, you know, we have come through a difficult period, but most importantly, that the american people have spoken, and that is what our democracy is all about. >> the president has every right to challenge and every right to ensure the votes were counted correctly. once that decision has been made and once there are too many votes that have been cast and counted for him to catch up, then it becomes the responsibility to accept the result and move on. then the very first thing president does is to wrap his arms around this pandemic. this pandemic has exposed a lot of the faultlines in our system. it's not just the virus.

it's what this virus impact has been. >> the first order of business for 2021 should be an investment in infrastructure, not just roads and bridges and transit but also broadband. we have learned how important it is for businesses and families to be connected. >> the president-elect will come in facing a horrible covid gelation and an economy that is slowing down. he will have a divided government if not he divided country and most likely, and i hope that does not happen, he will have a complicated transfer of power. that was some of our lead guests speaking to bloomberg tv about joe biden. being declared -- declared president elect of the united states the weekend. we touched on the yuan. let's continue the conversation. the greenback continues to

weaken on joe biden's declared position as the winner in the presidential race. juliette saly has been tracking that. kit seems to think that this will get off the leash for as long as the pboc allows. good morning. market isa lot of the thinking that. certainly, this strength you are seeing in the offshore yuan continuing. it had its best week since january 2017. a for an eighth session in a row today, the long swimming streak since march. we had a stronger-than-expected fix from the pboc for the first time since october 23. the strength in the currency being seen as continuing china's economic rebound and thanks to attractive bond yields in china drying overseas funds and investors, but as you say, it remains to be seen how long the pboc wants this to continue. when it comes to the overall equity rally, that is flowing through into heirs.

we are looking at global stocks nearing all-time highs but mark this biden whilst bomb could be good for global equities, he does not yet as positive for the american market due to the fact that he says these expected tax increases under a biden presidency are going to hit the very people that are likely to invest the most in wall street. the people who earn more than $200,000 a year. he says that wealth effect will come into play and if the people who invest in the stock market expect it will be hit with higher taxes and they will restrain from investing. his use, in contrast to some global investors, says biden will not be able to raise taxes easily with a potentially split congress that is underpinning the rally. john authers saying the biden rally has the look of fools gold. annmarie: juliette saly in singapore. we will have to see what mark mobius thinks. we won't find out -- that out

until january. biden launching his transition efforts today. this is all about the coronavirus. that is next. this is bloomberg. ♪

annmarie: good morning. from bloomberg's european headquarters in the city of london, i'm henry with manus cranny -- i am annmarie hordern with manus cranny. pres.-elect biden: i plan to be a president who seeks not to divide but unify. who does not see red states or blue states, only sees the united states. wasting no time, president-elect joe biden transition will start with a

plan to curb coronavirus as u.s. cases top 100,000 again. president trump ways legal challenges. risk on monday morning, global equities had for a record on optimism around a biden administration. the dollar is weaker and goldman sachs slashes is treasury yield target. luggable response. she says she looks forward to renew partnership. angela merkel says the transatlantic friendship is "indispensable." manus, good. 6:30 a.m. in the city of london. it is astonishing what the markets are doing after last week's rally as well. hit a recordes can and this was exuberant on the outlook of a biden administration but also potentially that split government with the senate holding on to the republican majority but we are not going to know how that exactly shakes out until january. hit a few speed bumps in the next 78 days.

what will the legal challenges b, what could happen in these last days of the trump administration that could look like a scorched earth or risk to the market? let's talk about the euphoria. over two blackrock with jonathan on friday. it has an evolving sense of greater stability. you have global stocks. does that carry? does that continue forward? european stocks rising. is what thetimulus equity market will want to see. said heal head of fx was surprised by the speed with which the dollar is repricing. day five in the drop in the dollar index. we are clearing the political hurdles of uncertainty and so there goes the dollar to the downside. bernstein, the real

reflation is trade, and is the market lifting off the head of the aussie? swiss rises. the aussie is on a roll up as we see perhaps some kind of movement between the u.s. and china. joe biden is preparing to take to office as the 46th president of the united states. he will start by readying a plan to tackle coronavirus. ed ludlow is tracking the latest developments from san francisco and we are expecting some fast and furious moves. 12 will be announced today. isthe president-elect wasting no time. coronavirus has been central to his platform. the names we expect include former surgeon general and the former fda commissioner, david kessler area a source familiar with it and plans says a professor of public health at yale university is another

cochair. time is of the essence here in the u.s. for the fifth straight day, fifth consecutive day, we registered more than 100,000 new coronavirus cases and that number is plus 10 million in total for coronavirus cases in the united days. sources told bloomberg is not just sort of the task was that biden is looking at. we know health advisors on biden's team have been meeting with pharmaceutical industry executives and discussing operation warp speed which is america's development plan for vaccines and treatment for covid-19. if there is some cause for concern is that the general services administration has not yet recognized joe biden as president-elect and until that takes place, the biden transition team cannot access federal funding or federal agencies and federal data which one would expect could help them inform their coronavirus strategy but we know we expect those names later today. annmarie: no concession speech

just yet from the president. anything more we have heard from president trump? >> not publicly. he tweeted on saturday he wanted a lot but sources are telling bloomberg that within the student's inner circle, there is some recognition that legal efforts in particular to reverse the outcome of this result are futile. there is no recognition that the election results will stand. we know advisors including the president's own son-in-law, jared kushner, are recommending to the president that he carries on with these legal proceedings which as we discussed in the last few days, although i lose track of date and time, that the president's trophy is to halt the vote in states where he was ahead and continue the vote in states where he was behind. what we're hearing from within the trump campaign's there is a growing recognition that this election result which has joe biden as president-elect is now settled.

annmarie: you are not the only one losing track of time. ed ludlow, get some rest. president-elect joe biden might be launching his transition efforts to shape the new administration but he's weeks away from making cabinet nominations according to his transition team. the former deputy chief at the u.s. embassy in london, a former secretary for hillary clinton and a senior director at the national security council under condoleezza rice. there is your cv, 30 years of work. i know you have this no doubt about potential pix in the cabinet. what or how can president-elect biden reach across to the progressives in the party but at the same time make sure his pix get through a potential control of the senate, which is going to be in republican hands? be in republican hands? >> his transition is a huge hr

operation and it's all about finding the right people for the right job. there are 4000 jobs that a president needs to fill, 1200 of which require senate confirmation so what he has to do is he planned on having a diverse and technocratic cabinet and he still will but he was also going to have a progressive cabinet in terms of position and that will be harder with mitch mcconnell trolling the process. we think we will see a shift to a more centrist cabinet, probably very good for the markets, and even in an attempt to reach across the aisle to the republican side. we think there's the potential for mitt romney to come into the cabinet. there will be some positions which go to the more progressive wing of the party. the idea that elizabeth warren had been floated to be secretary of treasury, that is not going to happen now. bernie sanders is not going to be in the cabinet because

republicans in the senate will just not allow it. manus: good morning to you. is this a pushback? wall street wants to make sure biden keeps warrants army at day. this is about the end of dodd-frank or finishing off dodd-frank. will wall street breathe a sigh of relief? plummeting.be is that what the consensus will be around? >> consensus seems to be landing on her for treasury. she is accessible to all sides, very areas, very well-liked in washington. i think she is certainly the front runner right now. for attorney general, we see someone like doug jones, senator from alabama who lost his race. again, acceptable to the republicans. there will be some on the progressive wing who think he is

too centrist, but this is the needle joe biden has to thread right now, to find candidates who have experienced, who are diverse candidates, who pledges to have the most diverse cabinet in history but also to find people who can get enough votes to get confirmed by the senate. >> he also released that transition website. one of the top topics is, change. we have never seen an incoming administration put climate change is one of their top agendas to tackle day one. what does this say about his makeup of the cabinet? czar will see a cabinet who has cabinet level authority probably sitting in the white house initially. when i worked in the white house, we set up the department of homeland security. the governor came down and was a senior advisor for homeland security working out of the white house and that grew into this enormous department of

homeland security so we will start off with a climate czar we think is someone like tom steyer who ran for president against joe biden but has really made climate change the hallmark of his career in the last couple of years and who would come to washington to try and coordinate and lead u.s. government efforts to tackle climate change. one of the top agenda items is going to be trade, trade with europe, trade with china. whether america moves back towards multilateralism as we understand that, top of the agenda perhaps i executive order. be theyour estimate will trade representative with the clout to bring america in china and europe back onto perhaps a mode -- more even keel? stanleyd a morgan representative who worked in the clinton administration and also fred, who used to run that.

they both have extensive trade experience and they are both very familiar to the teams around joe biden and are obama administration alumni. trade will be interesting because a real focus for joe biden will be domestic, revitalizing and rebuilding the american economy, so any new trade deals for anyone looking at trade will have to fall within the context of what does it do to protect and save american jobs? it will be a different approach to trade then we had under president obama. i don't think we are looking for huge international trade deals. they will be more focused on what this means for the american worker. stepping into what it is like for the republicans, president donald trump has not conceded. we had some republicans come out and congratulate the president-elect like george bush. there is no evidence of fraud in this election. chris christie says he does not

know what it will take for trump to can eat. where does this leave the future of the republican party? lew: simon: president trump needs to concede fairly soon. the longer this goes on, the weaker and more pathetic he looks. to be honest. there is a struggle going on in the inner circle, trying to decide when is the best time and how do they convince him that it is over?- that it is that is really the stumbling block. manus: i think he's just rosen. we were just about to end the conversation. the question for the republican party is how do they navigate a president who is refusing to concede and how do they indicate that to him? breaking news coming through on the corporate side. this stock will move given the marching guidance on the tech side. no margin for them, first

quarter, this is the gardens. first corner margins will come in at 16%. they penciled in 14.9 so you will see a fairly interesting opening for them, up 43% on the year. first quarter revenue, 2.4 to 2.7. guiding on the revenue bandwidth. all things, tech will be volatile. we will see how that plays out on the opening. let's get to laura wright. first word news in london. laura: the pandemic is showing no signs of slowing with worldwide cases hitting 50 million. cases in the u.s. top 100,000 for a fourth straight day. in melbourne, residents are emerging from a sick teen week locked down after 10 days without new cases. prime minister boris johnson and european commission president towardson der leyen -- a trade deal. november 15, the deadline for both sides.

a level playing field for business and fisheries. joe biden -- criticized the controversial lawbreaking brexit bill. a chaotic weekend in turkey. president erdogan's son-in-law on excitedly resigned one day after the central bank governor was fired. cited on is a vital for stepping aside. he was widely seen as being groomed as a potential successor for erdogan. it could signal a dramatic shift in economic policy. 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. this is bloomberg. annmarie: thank you so much for that. coming out, is it a new era in terms of e.u.-u.s. relations? we will be going to brussels to get all the details on what joe biden's election means for the transatlantic alliance. this is bloomberg. ♪

>> you delivered a clear message. unity,se hope and and yes,science, truth. you chose joe biden as the next president of united they of america. -- united states of america. annmarie: that was kamala harris speaking in wilmington, delaware. she makes history as the first woman, the first black person, and the first indian-american to serve in that role. it is an historic moment

regardless of your politics. in 1789 when john adams was the first vice president in american history, we have never seen a woman ascend to the role. a massive shattering in the glass ceiling. absolutely and the whole diversity aspect as well from biden in terms of the cabinet he wants to put together, and historic moment the u.s. and the rest of the world. let's talk about the ramifications. -- it isit's the e.u. expected to restore relations with the u.s. after years of escalating tensions. leaders congratulated the president-elect, saying they are ready to work together. joining us now from brussels is maria tadeo. great to have you with us. how wouldrom europe, you describe the response to biden? i would describe it in

two different ways. you have to look at the short-term ramifications of this. clearly, there was relief on saturday. all of the european leaders came out in coordination right after pennsylvania was called to congratulate president-elect biden. if you look at the tone, it's a very different tone. they believe this could signal the end of term politics. this is someone who did not respect the talking points of diplomacy in a way no one was used to in brussels. it could signal a more normal politics. this, there's areas where europe and the united states can work together. when you look at climate and look at thehen you short term, there has been a change in perception in europe and this is quite remarkable to some extent for the europeans they, if anything, trump-pence jonas we need to be much more self-reliant, you need to be able to stand on your own two feet.

there is a word that officials keep repeating in brussels which is strategic autonomy. europe has to be more autonomous in the way it does politics. over the short-term, clearly relief, but the long-term picture is europe needs to be much more strategic in its own political agenda. annmarie: what does it mean about the brexit deal? we have some clarity on who will be the president-elect. did biden make a brexit deal more likely? the two things, are separate, but of course, the context really matters. we know president trump was a fan of brexit. he said he believed brexit was a good thing for the united kingdom. he repeated he was ready to sign a big deal with boris johnson. they said that the irish have to be respected, that they cannot be threatened, and that the peace treaties have to be upheld in between the two. the tone has shifted. over the weekend, the language

coming out of the united kingdom shifted quite dramatically. the prime minister went from three weeks ago, ready to walk out of a brexit deal, to i want to get a deal done with the european union, and we can get it done, whether that is just a coincidence, it's up to you to decide. inmarie: our reporter brussels, maria tadeo, thank you so much for that context on what a biden presidency means for the rest of the world. should investors prepare themselves for a divided congress? goldman sachs says yes. we discussed that, next. this is bloomberg. ♪

manus: this is "bloomberg daybreak: europe." i am manus cranny in dubai. annmarie hordern at london hq.

the election coming to a close. the markets turn their attention to who will control the u.s. congress. treasury shorts were washed out and your 10 year yields posted the biggest weekly -- dani burger has been looking at all the notes. look at yields. more or less priced in. it depends on who's research know you read. dani: there's a lot of opinions out there. we did see we can be sure of regardless of who you are reading is we did have this huge about-face from this unprecedented buildup of treasury shorts or traders buying the long end but i would take issue with your point that we have seen is this massive repricing to say, ok, the idea of reflation is over. i don't think that is exactly what happened and that viewpoint i get from talking to sources who really describe the situation last week where a lot of bond debts were forced out of

their position. this is more shorts getting washed out then repositioning. avoidve people trying to further pain versus putting a new position on and i think today's market action is really more evidence of that because we get bond traders really taking a pause and reassessing what they are doing. we have not seen yields move too much over the past few days but that does not mean there's not a lot of calls out there for further declines in bond yields. goldman sachs sees a divided government going forward and says 10 year yields may hit 75 basis points by the end of the year. annmarie: 81 basis points. we have been talking about the fact that the next two months, we could see a lot of potential volatility. could be a roller poster. i'm looking at the fact that we still have a runoff election in january and that decides who will run the senate. what does all this mean for volatility markets? dani: that january 5 runoff in

georgia that will determine two senate seat, this is an important market event regardless of what other markets might saying area this is the vix curve. we used to have this large pickup around november contracts. that has changed to january contracts. ais is what michael calls delayed blue wave scenario. in other words, january is the new november when it comes to election volatility risk premium. vix traders are saying prepare for january. we might get a blue wave, smaller and delayed, but we could see a democratic control of both houses of congress and the president. annmarie: dani burger, thank you so much for that. markets kicking off monday with this news. we are risk-on. global equities headed for a record high. we are just waiting on the senate. absolutely, and the speed

of that dollar demolition was the most important thing. there is euphoria displayed on making peace with a writing victory. a vaccine coming down the pike and hay valeant u.s. economy. ♪

annmarie: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london. the cash trade is less than one hour away. here are your top headlines. policy priority. president-elect joe biden's transition will start with a plan to curb coronavirus as u.s. cases top 100,000 again. the biden booth. global equities had for records on optimism around the biden administration. the dollar is weaker.