's --ine: president trump he calls china a national security threat. beijing has congratulated biden on his election victory. million virus one cases. the countries is almost no part has the virus under control. another round of brexit talks is likely to end today. good morning, everyone, and welcome to "bloomberg surveillance." i am francine lacqua here in london.

the focus certainly on the u.s. not only for the infections but of the transition period and what we can expect from the markets. the markets looking at some caution, we heard from central banks saying look, the vaccine is not going to be a cure-all. if you look at what investors are trying to assess, it is additional stimulus, an economy that has been battered by these coronavirus cases that we have seen going up and up. treasuries adding to the gains, and if you look at other things we are looking at, you know, the dging higher afterword that dominic cummings will leave his role with boris johnson at the start of the year. now let's get to the bloomberg first word news in london with laura wright. hi, laura. laura: good morning, francine. powell, ecb president christine lagarde, and andrew

bailey used a virtual conference to highlight the risk. the post pandemic economy will be different in many ways. the 2020 election was the most secure in american history. they say there are is no evidence that the election was compromised in any way. it comes as president trump and his allies continue to make unfounded allies of fraud. poland is joining hungry and threatening to veto the eu's recovery fund. the eu needs unanimous approval to borrow for the stimulus package. if they managed to block the budget, poland would leave about 33 billion euros, hungry about 6 billion. boris johnson's prime minister -- prime minister boris johnson stop a dominic cummings is leaving at the start of the year. he is the second advisor to leave. cummings has long been a britishrsial figure in

politics. he was the mastermind behind the brexit referendum. 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. francine? francine: laura, thank you so much. the u.s. is banning investments informs us as are owned or controlled by the chinese military. the relations between the u.s. and china have deteriorated with to quitident vowing beijing over the coronavirus pandemic. asia get to bloomberg's correspondent. good morning, francine. it does suggest the current administration has not finished with its aggressive stance toward china. the executive order says china is increasingly exploiting american capital to grow its own military, and

investment firms, pension firms buying shares in 20 chinese companies that the pentagon has considered have military ties. we saw the reaction in the markets today, including china mobile and china telecom, has lostchina mobile the most in almost six months. some analysts have said china has options of its own of course the moment,but at they appear to be taking a lie low approach until president biden takes over. francine: enda, what is the significance of china today, finally acknowledging that biden won the u.s. presidential election? it is interesting, because initially, china was quite muted in its reaction, francine. they were the week, not saying much at all, other than observing the election like everyone else.

directve been quite since then, a military spokesperson had a briefing in beijing earlier. they said that they respect the american people choice and extend congratulations to mr. biden and ms. harris. this comes as president-elect biden does hold telephone conferences with leaders in japan, australia this week, and that we have china publicly acknowledging his election, too. i think there is a view in part of this world, and president trump clearly remains in opposition and he has not finished with his china agenda. china may be trying to lie lows in hopes that they can diffuse the situation a little bit and start fresh with president-elect biden. we know there is bipartisan support in the u.s. it is a question of whether or not they can succeed in diffusing the tensions that have

played out in the last few years. much,ne: thank you so enda curran, bloomberg's chief asia correspondent. coronavirus is the pricing levels from last winter and spring. but there are signs of hope. we will speak to italy's deputy health minister. that is coming up shortly, and this is bloomberg. ♪ rg. ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i am francine lacqua here in london. let's go back to the markets. this is absolutely the time to invest, what a specialist says to bloomberg exclusively. >> we have rising case numbers

and covid, but we know more this week than we knew last week. we now know that there is a successful vaccine for this pandemic, and we also got significant clues as to how the market reacts to that news. there was a shock to the flurry back into value stocks. there was a significant optimism , i'll be at beginning to fade right now, but if you cast your, past thismind difficult short-term this quarter, and we see the vaccine being, you know, distributed successfully, than i think -- and we see the transition of power in the u.s., i think what you are going to see is you are going to see, you know, biden is certainly going to be spending money. we think there will be fiscal stimulus. we do think that in the longer term there will be a weaker dollar. that will be good for emerging

markets. 85% of the time that has been the case. so we think if you look past the short term, you can still have -- there is a risk-on environment, central bank support, and liquidity, and we are in a world of low numbers. given that context, there has never really been a better time to be an investment manager, because uncertainty is high, and guidance is high. if you think of it, this year in the u.k., 20% down in q2, 15% up q4, i now i difficult think you have really got to, theknow, hold and see past difficulty and maintain a risk on environment, and that is what we are doing. tephen, why is active having a tough time? i would think if any time it would be doing better, it would

be now. stephen: that is totally the case, guy, and i agree. it is actually ahead of benchmarks. i think a lot of this gets cast -- and i am only here two months. a lot of credit for turning around the investment performance clearly goes to my predecessor, but if i sit with our funds managers and we go through the performance today, you know, we have been seeing improving performance, and as a consequence, decreasing outflows in the business than we were at the half year, as we reported, so this is the time. my message to the team is this is absolutely the time to be able to show that active performs and can outperform. francine: that was stephen chiefd, standard life's executive officer. as countries are dealing and reeling with cases of evermore

coronavirus, more people are more infected, what does that mean for lockdowns and how politicians around europe should deal with it. to be joined right now by pierpaolo sileri, the italian deputy health minister. thank you for being with us. the wintertime could make it much more difficult to contain lockdown. how do you see this developing? going to see another national lockdown in italy, or are we going to see an in and out. mr. sileri: i do not think we will see a nationwide lockdown, but i think the partial lockdown we are performing now, starting at the beginning of november with some regions, i think will work. obviously we need to wait a few weeks to see the results. divide italy, regions that are controlled every week, so we can track the ability to

trace the virus and the territory, up to the number of dead and in icu care. and according to the parameters, we are able to save the higher to theower risk, calls does have a italy lockdown. les needed compared to the lockdown we experienced at the first view of march. so according to this right now, we have several regions that are red, some are rns, and others are yellow. are a lightegions risk, and the red are the more severe risk. 21i do not think we will see regions red. francine: are there any regions

that could change in the next 21 days? what happens to the lumbar the region? what are you seeing -- lombardi region? what are you seeing in the case s? lombardii: l became read last week. next week, we will change the numbers, and if the numbers are going down, the obviously the region will be range. right now, i hope yellow, but we need one more week. redously, when you become and orange, you need to wait two weeks for checking in the number , if the number goes back, then you go back to one of the colors. in one week, it would be give for to say if it is working or not. some doctors are telling me they are seeing less people going to

the hospital, and people think they are doing better, but this is the perception of some hospitals, you know, we need to check the general numbers of the entire region. francine: deputy minister, how likely is that that the current decrease for these regional lockdowns that is meant to last until december 3 will continue beyond that and even well beyond that? mr. sileri: obviously, yes, if it works, i mean, if we can prove that these regional , then obviously we go ahead. we need to fight against this virus for the next 6, 7 months, it will do much better, if you aose the region, you perform larger lockdown, for two weeks, you can remove than an entire nation on lockdown. sense, deputy a minister, of what italy right

given thesethese -- regional lockdowns p how quickly do italians need access to a vaccine? mr. sileri: so, first of all, we, the government, has been the economic covid. it has covid, you know, the nation has been under pressure, but we have also an economic covid. people and companies they need help, obviously. regarding the vaccine, you know, i think the vaccine will be ready at the beginning of the next year, but i cannot give you a date. it seems to be close. week to week for each organization. ofer that, after the tide the vaccine, we will be able to have available to vaccine for

health workers with the vaccinations. probably this will happen in the first of 2021. francine: what is the biggest challenge, deputy minister, in getting the vaccine to all the right people? is it refrigeration? when will you be satisfied you can roll out the vaccine? how long will that take? mr. sileri: everyone now is talking about the need for minus 60 for the pfizer vaccine, but not all the vaccines need refrigeration of that type. anyway, i think we are ready, and the minister of health is also already working with a group, and we have a plan. it is a lot different from the planet that every year we use for the flu vaccinations. weeks --our to six four to six months, sorry. francine: i understand, deputy

minister, you are not rolling it for the extension of lockdowns past december 3. mr. sileri: i think we will go ahead with that after december 3. as i told you, we need to monitor these regions, and as i , this will decrease, we will have better numbers, i hope, in these regions, so i see an extension of that for the entire winter. obviously, this will avoid an initial lockdown. francine: thank you so much for joining us, pierpaolo sileri, the italian deputy health and esther, unimportant -- health minister. shares jumpedney in the last quarter after subscribers jumped down a my household probably contributed

that significantly. that is coming up, and this is bloomberg. ♪ bloomberg. ♪

francine: this is "bloomberg surveillance." i am francine lacqua here in london. let's get to one of our top stories come up reporting a smaller than expected fourth-quarter loss. for more on this, let's get straight to alex webb come our bloomberg opinion columnist. alex, this does not take away netflix dominance of the

streaming market. alex: i think that is the wrong actually.k at it, there is more than one streaming play here, two, three, maybe even for streaming services are households likely to pick, and disney plus is one of them, particularly for households with children. they stacked up fairly large numbers, 70 million subscribers in a year. took netflix something like seven years to reach a similar amount. of course, we are in a very different environment. francine: ok, so if it were content, what can disney plus now do to become, you know, better and more viewed than netflix? alex: i think there is a question here of sustainability, whether disney can sustain a valuation, and to do that, it needs to sustain the same pace of growth. to do that, it really needs to think about investing more in

original content. at the moment, we have got sort of, you know, every disney film dating back to its integration on disney plus. we do not have the many original shows. the only one really has been "amanda lori and -- "the mandalorian," which has been a hit. to what extent do they invest in more original content, which way do they go more to this and less to theaters, which would be a shame for investors, but the ways the downloads take a stake in disney seems to be agitating forward, and that will be that crucial trend over the next year or so. francine: how are the theme parks doing? alex: not well, and for fairly understandable reasons. they say at the moment they are running at 35% capacity, and i question whether that is even wise, given the surge in cases,

particularly in the u.s. but frankly, investors do not seem to be worrying that too much. a bloomberg opinion columnist said when disney plus was launched, it was exactly that, in addition to the rest of disney. theeasingly, disney plus is core business, and everything else comes on top of that. investors look forward for that trend. francine: alex, if you look at the streaming services out there, i mean, there is amazon, is there a space for a fourth one? are we going to see anything from china coming in? alex: we have seen so many services launching, particularly in the u.s., that have not even launched in europe, peacock, nbc/comcast, amazon, hulu, and they are going to be launching a more sort of, you of,, non, sort

grown-up-focused platform in europe as well back and have a discount, if you have disney plus and starz or something. those things are coming. i think there is audience for a lot of them. the u.k. has now tv, which, you know, is very successful, but there is a space for a lot of these platforms. the question is who can get amazon or netflix on them. francine: thank very much, alex webb, bloomberg opinion columnist. coming up, and the final days of the paris peace forum, we speak to ángel gurría of oecd. this is bloomberg. ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london.

let's get to bloomberg first word news with laura wright. laura: the u.s. is banning investments owned or controlled by the chinese military. it is president trump settled latest pressure on beijing over what he describes as abusive business practices. relations between the u.s. and china have deteriorated with the president vowing to punish beijing over the coronavirus pandemic. some republicans in congress are starting to back the national -- of the presidential gingers and. john cornyn says joe biden but he endbriefings, of the republicans have stopped short of declaring joe biden the winner. italy is asking for government -- approval of $20 billion in esther borrowing. measures too cover protect businesses from new coronavirus restrictions. no official comment yet.

global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more this is countries, bloomberg. francine? francine: let's get the latest on a turbulent week at westminster. theces tell bloomberg that second key advisor -- a key advisor will leave by the end of the year. the reliefnded campaign, the brexit referendum, and was a controversial figure in politics. how bad a week is boris johnson having aga >> it actually is -- and is orest johnson having? is criticism for his handling of the pandemic, and most of the uk's back and locked down. there are questions as to whether it can come back on time and of course we have had some just today. data

no of course he's got the departure of two of his key advisors, in quick succession. these are two very hard-core brexiteers. we know of course that dominic cummings in particular is someone who he leans on for advice and guidance, and that has been very clear for some years now. his departure will be quite a shock if it does not indeed happen before the end of the year. is this linked to brexit? this is linked to a leak that heading to the lockdown. >> it could be good, it could be bad. is okld be that cummings moving on, which means that no deal is still very much on the table in terms of the trade

deal. what it more likely means is that johnson, recognizing the u.k. economy and the shocks that businesses have had, knows that some systems of rules and regulation is crucial for business heading into aachen on mike's of next year. mike'sing into the xml -- economics of next year. this might help clear the path toward a deal. francine: thank you so much. rosalind mathieson with what is going on on downing street. u.s.begins with a new president about to enter the white house. markets are looking at that and a couple of other things. first of all the member of infections rising across the world. the number of things we need to look out for some kind of bond issuance. it seems like it would be a good time to have a look at exactly what we are seeing in the markets. not least because pound has been was theove, and pound

story roz was trying to explain not only with the chaos at downing street but also what we are seeing with negotiations -- brexit negotiations. european stocks are dipping. process --he treasuries adding to gains. we will have plenty more on that shortly. coming up, like every country in europe, italy has been forced to borrow heavily this year, and it supports the coronavirus battered economy. we also have and how gurria coming up. this is bloomberg. ♪

is uber: this surveillance. 2021 gives with the u.s. president about to enter the white house but with 2020 problems still in focus. world leaders have been taking part in the paris peace forum, held online. the summit aims to discuss how to tackle challenges like climate change, and immigration. joining us this morning is angel gurria, secretary general, who has been a key participant. make you so much for joining us. how would you describe the week we have had? there seems to be a big shift in u.s. politics that could go back to multilateralism that could change foreign policy, and we have news of positive trials of the vaccine. i think a very important week, a very promising week, and we also had the paris peace

forum, where multilateralism just came back very strong. we had our own ministerial council meeting here at the oecd a few days ago, and in many ways, what we are coming to the conclusion is that just like trade, just like investment, just like climate change, biodiversity, the question of migration. the only way, but the best way -- not the best way, but the only way to deal with this is multilateral. francine: are we inspecting too much of a president like joe biden? this is not only president trump that put a stop to this. it is coming from all factions. what will happen with multilateralism two years from now? notl: i think one should put the burden on multilateralism or globalization as such. for their success, they depend

on the policies that the country has adopted. on the rights policies, on the inclusive sustainable policies, on the resilient policies. those are the ones that will take us home. thingne: what is the one that we need to change post pandemic to make sure that this is a fair society, a better society, that is more inclusive in terms of economic growth? angel: i would start by putting a big fat price on carbon, because we must remember that most important intergenerational responsibility continues to be the protection of the planet. francine: will countries come together and find real solutions? do you worry that so far there has been a lot of progress on climate change and solutions

towards finance, but also may be a lot of greenwashing? angel: there has been a lot of national policies. some countries have put in five ofcent, 10%, 15, even 30% guarantees. but there has been little coordination, very little , and very little cooperation. and that is absolutely indispensable. global we deal with problems is precisely by global cooperation. the singlendemic is most global phenomenon we have ever seen. francine: central banks have been warning left, right, and center not to expect too much out of this vaccine, that it is not a cure-all for the economy. would you agree? heroescentral banks are

of this -- not only of the pandemic but also of the 2008-2009, and they should be given their justice. but the question is, they cannot do it all. we need the consistent and prolonged support of governments , so governments now have to take over. governments have to be flexible in terms of their fiscal policy, and of course just because we have made progress, 90% effectiveness with the pfizer vaccine sounds very, very promising. we hope others will follow, but that is not going to happen for the most of 2021. we are still going to have to be living with the virus. francine: how uneven will the recovery be, and what is the chance that many parts of the world in many parts of the

countries that are parts of the oecd will see a double-dip recession? angel: we believe that the second wave that we are seeing today, whether it is a second wave or part of the first wave or whatever, increasing number of cases, increasing number of hospitalizations come increasing number of deaths -- that is theg to put a dampener on recovery. into probably going to go the fourth quarter. it is going to weaken the fourth quarter, but most importantly, it is going to weaken the way in which we come into 2021. onwe are going to come out december 1 with our economic outlook, and we believe that may 2021little weaker on the outlook.

gurria, i know you stepped down from the oecd in 2021. what is the most important attribute that your successor needs to have? angel: well, they have to be a very good listener, and a very good leader. you need leadership, but consistentalways is of listening to everybody once you get it right and once you .now what you have to do you go forward. you also need to be a very great convene her. you need to have -- remember, the international organizations, multilateral organizations will only go as far as the members want to go. so the question is to inspire, but to document why it is that you want to do certain policies or recommend certain policies. you have to be evidence-based in

order to convince them. a number ofere are contenders to get that job. who do you think has the best shot? -- joe: angel: 10 contenders so far. we have closed the period for registration, so we have 10 contenders from different parts of the world. that will take place during november-december, and the actual process of selection will take place during january-february. the idea is that during march, april, and may, we will have an overlap, a layover. so it will be an efficient delivery, efficient transition period. francine: one of the other attributes being diplomatic and not answering questions that are delicate. they cue so much for your time. angel gurria -- thank you so much for your time. anja gurria.

italy has been forced to borrow heavily this year as it supports its coronavirus battered economy. headeak to the country's of public debt. that is coming next, and this is italy. ♪

>> climate change is happening. this needs to be repeated over and over. governments have now committed to net zero. >> we also must harness the firepower of the financial sector. >> the financial sector has a critical role to play in this transition. we are going to lay out for our stakeholders how we intend to align with the paris accord. >> the investment industry now has the opportunity to further accelerate this phenomenon and demonstrate that we can be a catalyst for change. >> the economy challenges of the climate's transition are phenomenal, and i ask myself, how much does it cost? a lot.

but nothing that we cannot afford, because the cause is our survival. francine: climate change is the defining story of our time. don't miss our new show, bloomberg green, munching at 8, 30 p.m. new york time. it has a debt of more 2.5 trillion euros. -- italy has had to borrow from its neighbors this year. it is the first time italy has done this in more than a year, and it is a chance to diversify its investor base. iacovoni. is davide thank you so much for joining us. when you look at your underlying reasons for going into dollar, why does it still makes sense to you? it is actually cheaper to fund it in your home currency, euros. forde: thank you very much

your invitation. the strategy with dollar is not new. italy has been a dollar-denominated issuer for a after 2010, and then because of the sovereign debt crisis at that time, we were supposed to stop issuing because wasring the exchange rate at the time too expensive. -- now the cost of issuing the dollar has been brought down significantly. no more or line with what we have as far as cost in our investment market. investing in the u.s., but not only the u.s., there is a lot of global investment in

dollar-denominated products. so for us it is a very important way to diversify our funding, diversify, meet new investors, our domestic in market. francine: the difference i think is still 160 basis points in terms of difference. the gap is still quite big. is this the right route? no, the gap is much smaller, you're just looking at the rates in europe, and the cost in euro is very much similar. right now we just see a difference in the region of 15, 20 basis points, in euro terms of dollar-denominated bonds. so there is no match difference. some of the differences due to the fact that the dollar-denominated bonds are not under the quantitative easing measures and packages that the ecb used with its domestic

markets. so that brings the premium, dollar-denominated versus domestic markets. benefit to a very large with issuance as we said in terms of engaging with several investors that normally are not present in our domestic market. francine: when you also look to expand into new markets? well, this is something that we are evaluating, but i would not say that -- i would say it is a very short-term project. where also present with several , with ourrencies private issuances. you know, we have the yen we areated issuance, so not planning any stable issuance

for the time being. francine: when is italy going to issue a green bond? is the country a little bit late to that? davide: i would not say it is late. it is a very complex mechanism to put in place, a total commitment from the treasury to be in the green bond market. we are working hard on that. a lot of analysis needs to be carried out on our budget to select the so-called green expenditures, but we are at a very good point now, and bear going to release our sovereign bond, green on framework in a few weeks. and i'm confident that we will be able to be in this market. francine: have you overall been with the push -- for

davide: italians? -- for italians? davide: we are very satisfied. the first issuance was in july. now we are already at about 5 million euros. it is a very good result. i think retail likes the product despite being an elongated product. they like also the innovation to introduce other premiums, at the end, for those who keep the bond up until the maturity that is linked to the performance of our gdp in the medium-term. so it is a good choice. it is doing well. we will build in the coming years. francine: if the ecb turns down its expansionary policy, do you still believe italian debt is sustainable long-term? the italian debt is

absolutely sustainable. it will be a very large increase in terms of gdp, as we all know, but we have to consider that there is a very strong commitment by the government to jet -- twoeficit to debt gdp ratio down over the next few years. this will be carried out with a modestly expansionary -- for the next couple of years, and then ae objective is to get to percentage of debt issuance for 2023. in this way, there is a to abuse gradually. back on the other site. it is a very strong commitment to the recovery, so to have a higher growth for next few years and of course the key points of e.u. will be expansion packages.

for public investments, which are absolutely needed in order to increase the average productivity of the italian economy. in this way, i think the sustainability of that will be achieved. and it has also been recognized, as you have probably seen, but the nature of rating agencies. davide iacovoni, the director of public debt for the italian economic ministry. -- the focus is on the increase in the number of cases. there is also concerned about stimulus going forward. "bloomberg surveillance continues in the next hour. tom keene joins me out of new york. this is bloomberg. ♪

francine: president trump bands

investments and confirms -- bands investments culling china a national security threat. u.s.andemic growth in the -- california grow -- joins texas in reaching one million infections. the city says as as the cdc says almost no one has control over the pandemic across the country. and another round of brexit talks is likely to end today with little progress. that morning, everyone. this is "bloomberg surveillance." i'm francine lacqua in london, tom keene in new york. a number of stories we need to look at. we need to look at china, china and the u.s., the relationship between trump and president xi and joe biden's relationship, what that will look like. it is finally acknowledged that he is the president elect, and we look at the coronavirus in europe with some of the pitfalls. tom: the pandemic is front and center,