>> good morning. ofis 6:00 a.m. in the city london. here is what you need to know. economy is continuing in a solid path of recovery. the main risk we see to that is the further spread of disease in the u.s. with the disease

spreading the next few months could be challenging. >> approach with caution. jay powell warning over economic challenges, despite the prospect of coronavirus vaccine. treasury yields fall amid growing concerns around the pandemic. california joins texas reaching one million infections. u.s. election officials say the vote was the most secure in u.s. history. bandss president trump investment in firms controlled by china's military. what a week. clarity in the u.s. election. a hope old date on a vaccine. we are ending the week with a surge in covid cases. a push poll between the euphoria of a vaccine versus the pandemic. we wake up to french hospitalizations breaking a record. california joining texas surpassing one million infections. chicago, the latest u.s. to issue a stay-at-home

advisory. the mayor saying, this is literally a matter of life or death. let's take a look at how this is playing out into markets. a stunning week. we have covid weighing on equities. into --session feeding feeding into a lower session in asia. s&p futures flat. the ftse down more than 1%. we do have money moving into havens like the yen. 86 basis points in the 10 year yield. at $40 a barrel again. said a vaccine will not rescue demand. that coin, we passed 16,000. the question is whether we are going to go past 20,000.

it is a shout out to manus cranny. he calls it the gold for millennials. investors moving to those havens. three of the top central bankers are warning the possibility of a covid 19 vaccine is not enough to end the economic challenges created by the pandemic. >> that is good and welcome news for the medium-term although uncertainties remain about timing, and the efficacy for different groups. from our standpoint, it is too soon to assess the implications of the economy. >> as we get more news on the vaccine situation, i hope not only will it give encouragement and hope, it will reduce that level of uncertainty over the outlook. we are not really there yet. important for monetary

policy. we are having to make monetary policy in conditions of extreme uncertainty. >> i don't want to be exuberant about this vaccination. there are still uncertainties about the rolling outcome of the fabrication. the number of people that will be vaccinated in the course of 21 so we can reach herd immunity which will give us more certainty from the health point of view. a christine lagarde at virtual conference, taking a cautious stance. joining us to break it down this morning, whaley. -- wei lei. it was an emotional roller coaster. we saw euphoria about a vaccine. now we have the resurgence of

cases playing front and center. what narrative is going to win? the timearound horizon. jay powell put it well. in the medium-term, the vaccine springs forward the prospects of a restart looking more real. light at the end of the tunnel. thehe number -- near term, tunnel is still quite dark. we are heading into rising case unts. fertility's as well. everything considered certainly in the near term, i can understand why markets are consolidating from the euphoria earlier this week. it is very important to put things into perspective. course of the last week , two of the biggest uncertainties for investors, the

u.s. elections and a vaccine development, you have seen notable progress. i think it's very important to put the near term risk reversal in the context of an environment where some of the uncertainties have been improving. to haves we have spoken been putting cash work into motion. >> there is an easing of the tension uncertainty given the vaccine front. this, do you think rotation we have seen is here to stay? what we have seen is a swift changing of leadership. immediately after the u.s. election clarity, we saw a rotation back into the old winners. technology, health care.

breakthrough, we see a rotation into a bit of value, the cyclical names with technology giving back a little bit. bit in the a little last couple days as well. in our view, and this environment, low growth and interest rate, and by -- investors will continue to pay more for high quality. assets.ielding that focus on quality is not going to go away. having said that, given the potential for cyclical uplift, we don't want to be underweight cyclical assets either. ouro regular polling for clients. a lot of clients are underweight owning cyclical exposures like value. this,environment like closes some of that is what we

can say. it can be costly caught in an isironment where leadership swiftly changed to cyclical exposures again. >> you have to make sure your finger is on the pulse at all times. you talked about flows in europe are slower to buy into the rotation. is this because europe is living and locked down 2.0? a daily reminder we are not there yet? >> i think you are absolutely right. if you look at flows in the last few days, and response the u.s. elections, vaccine breakthroughs, there is a much trend embracing inflows. a lot of inflows into small cap, value. embracing the leadership change. the same cannot be said about european flows. exposures like credit

exposures, quality. all gaining traction. very much speaking to the fact there are conflicting motivations behind european investors allocation decisions. economies are further in the lockdown and the prospect of this pandemic containment is dampening the sentiment. they are coming through in the flows. say, very important to cash is moving. ishares india had the strongest inflow on record. even though investors have yet to decide which narrative they are going to go with, they want to put cash to work and they want to be part of this train. >> stay with us. i want to get an update on first

word news with laura wright. >> the u.s. is banning investments in firms it says are owned or controlled by the chinese military. latestresident trump's bid to put pressure on beijing. relations between the u.s. and china have deteriorated with the president vowing to punish beijing over the coronavirus pandemic. poland is joining hungary threatening to veto the eu veto fun -- fund. if they managed to block the budget, poland would lose about 23 billion euros. hungary would lose about 6 billion. top aide isn's quitting. he is the second key advisor to leave over tensions over how the inner circle operates.

he has long been a controversial figure in reddish politics. day onnews, 24 hours a air and bloomberg quicktake. powered by more than 27 hundred journalists and analysts. this is bloomberg. >> laura wright in london. a few republicans move past acknowledgesal to the election results. a state of play and d.c.. this is bloomberg. ♪

trade and china, those things are related for sure. i would expect a biden administration would be substantially less illiterate. i also expect some of the things the trump administration did in canada presents a national security risk, would not be sustained. years, welk in four will probably identify those two areas as one where you could see more continuity rather than less. from joee can expect biden when it comes to buying.

republicans are slowly moving past his refusal to knowledge the outcome of the election. some are even backing taking steps in the transition process. was among those saying joe biden should get classified briefings. let's start with the state of play in d.c.. how significant are these comments? i think the world is watching to see how this transition goes. it has been a week, over a week since the election. we have those comments from the texas senator saying he should get classified briefings. others have yet to recognize is win.den -- mr. biden's president trump continues to make claims about voter fraud. this is happening well glover

leaders are recognizing vice win.dent eitan -- biden's we had telephone calls with the president-elect. while these gop lawmakers are slow to come aboard, the rest of the world is watching to see how the transition goes. is as smooth as previous transitions. >> what does beijing make of this transition? >> they are somewhat lying low. they have not made any comments on the u.s. election. is current administration not finished. we saw a new executive order prohibiting investment firms from investing and 20 chinese companies designated as having chinese military ties. that speaks to the idea president trump and his hawkish strategy is not over yet.

he is still in office until january 20. untilis going to lie low biden takes office. he certainly will not want to stoke those tensions. the coming weeks and months before the transition will be a jittery time. equities, down more than 1.5%. jinping, beijing probably trying to take a bit of a lower profile. what more can the u.s. do? >> china will not want to stoke tensions. they will want to ride out president trump's final few months in office. they will not want to start another whirlwind of trade tariffs. there are plenty of things the u.s. can do in terms of sanctions against individual

officials, chinese companies and banks. itsu.s. is pushing through vow to punish beijing over the so thereus pandemic, is plenty in president trump's late. it could some ways respond, with negative treatment of u.s. firms. the broad feeling in this part of the world is china will want to ride out the next few months and see what kind of a reset there will be. party consensus. at the very least, china might somelping -- hoping for time to start fresh. >> walking on eggshells is what it sounds like. thank you so much for your time. something that took me by officials have said it was the most secure u.s. election november 3 we have ever

seen an american history. do you think for investors, the risk of potentially those losses, has that now phased and eased? we certainly see uncertainty from u.s. elections towards china, focused like what we just talked about. as it relates to implementation for u.s. election outcome, things are shaping up to be quite clear. a greater focus on income and quality. an environment that could be very positive. emerging-market assets and equities. china within that as well. rivalry between china and the u.s., that is not going

to go away. from the trump residency to the biden presidency. in terms of the protected rules of engagement, going back to normalized ways of engagement and that directional travel. because of that and greater of income, we have seen better inflows. china bonds, china equities. this is just getting started. this trend is very much accelerating. directional travel, a bipolar world order of restoring supplies and everything that goes with it. we have to own u.s. and china. balancing them in a diversified and balanced portfolio. >> the chinese yield this morning, at a one year high.

in a little bit more in d.c., the white house has said they are pretty much done with stimulus negotiations and they will leave it up to mitch mcconnell to negotiate with pull oc. does this mean any possibility of a stimulus is pretty much off the table? it is becoming less likely. size we were previously hoping for. significantly less than starting with two. the chance of a lame-duck stimulus package is looking less and likely -- less and less likely. markets are waking up to that. that is not to say we are writing off stimulus expectation altogether. the central bank being the only game is town is not going to be as effective. we do need coordination between fiscal policy and monetary policy.

we need to continue a of that. the hope is it will come through swiftly. the scarring of the economy toward somewhere. now that we have a vaccine. the economy definitely needs it. >> what is your outlook on stimulus, even the fact that many are saying the senate will stay in republican control? are, we do have races in georgia on the fifth of january. democrats,e, for the 50-50. even if they win both of those. we are talking about the vp as the tiebreaker and some of the more conservative senators, some of the more progressive

legislation will have to be adjusted in terms of expectations. compared torder previous expectations of a blue wave in terms of fiscal stimulus. expectationsjust for the size and difficulty. that is why some of the more stimulus based trends going into the u.s. election, we see some unwinding of that. >> size and scope having to change. thank you for joining us. ehe is also a two-time mathlet gold medalist. the virus rages on in the u.s.. stay with us. this is bloomberg. ♪

>> good morning. city of london. let's have a quick check on equity markets. the euphoria at the start of the week starting to fade. a lower start in europe. is quitee house bullish. juliette saly, what is going on? a jp morgan strategist saying essentially the news we hear this week from pfizer and beyond in their vaccine is a game changer and they are more positive in global equities versus bonds. are saying even though there is concern about rising coronavirus cases, the fact that there is a vaccine

news breakthrough is positive in terms of the broader reopening of the economy. they boosted their equity overweight to 10%. reducing their overweight positions in corporate bonds. that news propelled markets higher earlier in the week. we have seen the msci world index up about 9% in november. bloombergrsus the barclays global aggregate treasure. jp morgan saying global market stocks should enjoy outperforming. they prefer non-us shares over american counterparts. >> everyone i talked to is quite bullish on the u.s.. the question is whether or not this rotation is here to stay. happy friday. a happier place, disney shares

gained after streaming subscribers jumped. this is bloomberg. ♪ are you frustrated with your weight and health?

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and be healthy. get off the floor and get on the aerotrainer. go to aerotrainer.com, that's a-e-r-o-trainer.com. bloomberg european headquarters. i'm annmarie hordern, this is "bloomberg daybreak: europe." economy see the continuing on a solid path of recovery, but the main risk we see is clearly the spread of disease in the united states. the virus is spreading and the next few months could be challenging. annmarie: approach with caution, jay powell joined by christine lagarde and andrew bailey warning over economic challenges

despite the prospect of a vaccine. fall amidields growing concern around the pandemic. california joins texas in reaching one million infections. making a statement, u.s. election officials say the vote was the most secure in american history. good morning to you. it is friday morning, friday the 13th, and what a week it was. we had some clarity on the u.s. election, hopeful data on a vaccine, but we are ending the week with a surge of coronavirus cases. french hospitalizations rocha record. california -- broke a record. california passes one million infections. chicago is the latest big city to issue a stay at home advisory.

mayor lightfoot blunt and frank, saying, this is literally a matter of life and death. this is weighing on the markets. wall street close lower. msci asia-pacific also lower, down 0.3 pip%. ftse 100 futures are lower alongside the rest of europe. across assets we see money moving into havens like the yen. we have a yield lower on the 10 year. aboven is a blowout, 16,000. the mliv question of the day, will it go above 20 k? manus calls at the gold for millennials. surrounding the $40 handle. will it go that low again? that would be a major line in the stand.

the iaea says a vaccine will not secure demand yet. the vaccine news is what gave oil the tailwind. disney is jumping in late trading, reporting smaller than expected fourth-quarter losses. the star was disney+. the disney ceo shook up the management structure to emphasize streaming. >> despite the many challenges and hardships, i'm proud to say we have been steadfast managing our businesses under enormously difficult circumstances. persevered just during these tough times, we have also taken a number of deliberate steps and smart risks and positioned our company for greater long-term growth. annmarie: alex webb, our bloomberg opinion columnist joins us now. disney+, can they take away netflix's dominance?

thelook at the numbers, amusement parks which bring in so much money are suffering so much due to the pandemic. they are not necessarily taking audience away from netflix, there is enough space for both of them. the conversation increasingly is the services for people, and the ,onversation around disney, they are trying to make changes to look at the growth stock and value stock. there has been reception to those ideas. ,f you value the growth stock it would be similar to netflix, and you can enjoy more generous multiples that generate steady returns and predictable.

annmarie: do you think dan loeb is correct? alex: i do. when it comes to valuation, trade is 60 times earnings, if you look at normal film studios, they trade at 12 times earnings. the question is if it can sustain that valuation and the growth of disney+. in the most recent quarter, they exceeded expectations. the challenge it has is disney+, the content is not that great. they have "the mandalorian" and nothing else that has been successful. they need to up the pace in investment and new content. annmarie: full disclosure, i have never seen "star wars" or "mulan."

how did the film fare? incomet attracted more than people expected. they asked people to pay an additional fee -- you already pay for the subscription, and then an additional $20, which is a big ask and left people not very happy. that is not a trend they will repeat when you look at the releases of upcoming films such "soul." animations they are trying to see what works and what does not. you have to give them reddit for iterating that way. annmarie: have you seen "mulan ?" alex: i have not seen the new one. annmarie: the theme park division, how bad is it? alex: it is not good. you would expect. they managed to increase the

number of guests at 35% capacity. i question if that is wise given the surge in cases we are seeing in the u.s. at the moment. you have to remember disney beenately has historically a theme park company and media company which has the studio pegged on the end to attract audience. they have the films and then attract them to the theme parks, and that is where they have made the money. they are pivoting away from that and trying to ensure the business keeps afloat, in these difficult times. webb,ie: thank you, alex our bloomberg opinion columnist. that's get first word news. laura: state and federal

officials say the 2020 election was the most secure in american history. of fraud orevidence that the election was compromised in any way. it comes a strong and his allies make unfounded claims of fraud. italy's government is asking for polymeric approval for 20 billion euros in extra borrowing. rome wants to cover measures to protect businesses from the new coronavirus restrictions. no official comment yet. bloomberg reported the monthly cost in italy could be up to 10 billion euros. the world's top central bankers are warning the prospect of a vaccine is not enough to end the economic challenges of the pandemic. jerome powell, christine lagarde, and andrew bailey used a virtual conference to highlight the risks. powell says the post pandemic economy will be different in fundamental ways. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

this is bloomberg. annmarie: we are getting a lot of messages that i admitted i have not seen "star wars." coming up, we will continue with the covid latest wave with infections far surpassing last spring, but there are glimmers of hope. we will look at the european figures next. this is bloomberg. ♪

annmarie: good morning, this is "bloomberg daybreak: europe." europe has been at the epicenter of the autumn surge after many european countries and acted new restrictions including nonessential shops being closed. progress is mixed. what do the latest figures deal

with? dani: we are seeing grim headlines in italy, u.k., france and spain. we saw more than one million cases, that grim milestone was reached this week. some nations are showing a slowing down or plateauing of growth in coronavirus cases. in germany, they have more restrictions and locked downs for these countries, and in the u.k., you can see the seven day average of cases per million is over 330. the weekly growth is basically flat, more or less the rate before u.k. enacted its lockdowns. the severity of the restrictions placed on the nation is what we are looking at. germany, a significant slowdown in their weekly growth number, 11.5% growth in the last week. before the lockdown, the growth

was -- certainly some discussions whether that will happen. they have a curfew for bars and restaurants as well as more localized lockdowns. italy has more cases per million than the u.s., at 562. and a weekly growth rate of under 20%. annmarie: dani burger breaking down the scorecard of the pandemic. moody's has raised credit rating by one notch despite the negative fact of the pandemic on the economy.

greece is entering a new lockdown. joining us now is maria tadeo. maria: let's talk about the prospects for the greek economy. the country is back in lockdown, but if you focus on markets, it tells you a different story. the grease minister is joining us from athens. we are happy to see you today on bloomberg television. -- i want to you make sure companies are back in athens. you cut a big deal with microsoft. >> thank you so much, good morning to everybody. you are right, microsoft selected greece as a country to locate three data centers.

moody's referenced that decision to upgrade the country's rating amidst the pandemic. they said this is an indication of greece's improved prospects for foreign investment. we are excited about this and want to attract more investment. this is the platform the government was elected on. we are in talks with other players. what i can tell you is there is an opportunity with brexit. we are in advanced conversations with lenders from the city who are looking to diversify out of london as brexit comes into play next year. maria: i want to pick up on that. you are in talks with three banks currently based in london, and they will be interested in moving staff to greece. that is what you are hinting at? alex: yes, and remember exit --

brexit, we are beginning january with potentially a new deal. the negotiations are focusing on goods and fisheries. we have a large pie that will be services, and we would like to grab a share of that pie. we decided we will be initiating a new tax incentive for those who relocate to greece. half of their income will be free of income tax, 50% for those who move their jobs to greece, respective of the level of salary for any job. that will be for up to seven years. we are excited about these opportunities. ahead.go you are cutting taxes? when will that become effective? asx: this will be effective

january 1, 20 21, and is fixed into a broader palette of tax cuts we have done to attract foreign talent. we have a program in place for pensioners with a 7% flat tax rate and 50% flat tax rate for stock options. the pandemic has uncovered technology advances which means we can choose where we live and work. we are say is greece, blessed with natural beauty. we want to attract more people. we have low taxes and are improving on the technology. this is the call to come to greece. very: you are also going aggressive on cutting taxes for ex-pats. the big story for your economy was the upgrade from moody's that is sending your two year

negative. tell us about your financing needs. the pandemic has meant governments have to take on more debt. alex: i would highlight that part of the upgrade and low yields increase hit 80 basis points. we have low growth financing needs under 10% of gdp which compares to most of the developed countries which have needs of about 20%. what is really important is to support the local economy jobs and companies, but make sure the money is not wasted. we have taken this opportunity to implement our structural changes, lower social security contributions, and elimination of the income tax. on the health situation, we know the numbers that come

out of greece, if you compare to other countries are lower. the prime and astir has been aggressive going into the laptop down -- the prime minister has been aggressive going into that lockdown. balance?he we are estimating gdp in 2020 will decline shy of 10% and we will come up with a firm estimate on november 21. we believe there is no contradiction between the economy and health. the faster we put the pandemic under control, the faster we can go back into economic growth. for the medium term prospects of the country, it is important to preserve the credit ability that has been built in recent months, this is a global symmetrical shock affecting countries the

same way. for greece, it is an opportunity to put away the image we had from the previous decade of the crisis and move forward. what i say to your viewers, forget about brexit, we would like to attract more investment. maria: it has been a remarkable turnaround. you look at the debt market from now to 10 years ago, it is almost unbelievable. thank you for joining us, alex patelis, chief economic adviser to greece's prime minister, kyriakos mitsotakis, hellenic republic (office of the prime minister). annmarie: thank you so much. i liked what he said about getting people to go to greece. i wonder if we can do the show there. our producer would like that, he has family there. coming up, the u.k. disclosed the climate bar and the fight

against global warming. this is bloomberg. ♪

>> the financial community has a critical role to play in this transition. we will lay out how our stakeholders, how we intend to align with the paris accord. >> the investment industry has the opportunity to further accelerate this phenomenon, and mistreat that we can be a catalyst for change. >> the economy challenges of the climate transition are phenomenal. then i ask myself, how much does it cost? a lot. but nothing that we cannot afford, because the cause is our survival. change, theimate

defining story of our time. every week we will bring you the new science and data to understand it in full. do not miss our new show "bloomberg: green." it online.o stream i am excited about this, i will be hosting, and this week we talk about the white house knowing green. and joining us is our bloomberg green reporter. it was a huge week in terms of climate for the united states. joe biden campaigned on one of the most ambitious climate plans. canas all these ideas, what actually get done? he has promised already on the first day he will return to the paris climate agreement, and that will set the agenda globally were the u.s. is the only country that is not party to the agreement.

has power and executive orders, he can pass executive orders to rollback the rollbacks of the trump administration. for example, cutting methane emissions from the oil and gas industry. he has the ability to put in place climate minded people across the government. this is not just in the environment a protection agency in the department of energy, which are relevant to cutting emissions, but from the department of interior to the fed to the fcc. annmarie: the other story that is making a big deal this week the climatejoining club, and you can only join if the united states is in paris. they are front running in saying we think widen will be in the paris agreement. akshat: indeed, and that is a big deal.

we know monetary policy can play an important role in addressing climate change. group already has some 70 central banks around the world. the u.s. was the largest economy not party to it. this move from the fed which bloomberg news roque earlier this week can have huge ramifications in a full membership and the fed acts on the recommendations. annmarie: we also need to talk about at some point what is going on in the u.k. with companies no longer able to dodge climate risk. thank you so much for your time. you can catch more of our conversation on the new "bloomberg green" show that lunches this evening. -- launches this evening. the european open is up next. a quick check on where we trade,

u.s. equity futures are pushing a little into the green after wall street closes down. european equities are in the red, the dax down 0.3%. ftse 100 down 0.8%. ♪

anna: good morning and welcome to "bloomberg markets: european open." i'm anna edwards in london. here are your top headlines. approach with caution -- jay powell is joined by christine lagarde and andrew bailey in warning economic challenges despite the prospect of a coronavirus vaccine. u.s. cases weigh on stocks, stocks look set to continue the slide in europe while treasury yields fall amid growing