rotrainer is tested to support over 500 pounds. lose weight, look great, and be healthy. go to aerotrainer.com. that's a-e-r-o trainer.com. ♪ >> good morning from berg middle east headquarters. i'm manus cranny. these are your top stories. a fresh offer. u.s. stocks closed a record amid revived talks. jay powell and steve mnuchin back further aid at the senate testimony. holding firm, reports suggest

joe biden will not immediately remove china phase one tariffs. gains.rt yuan pieces christine lagarde says the ecb will recalibrate its tune. economistshief called the banks after policy decisions with unease. 6:00 a.m. in london. 10:00 a.m. in the arabs. i'm torn between the repricing and the narrative. the biden op-ed in the new york times. i think it is about sending a message. i'm not going to be soft on china. it is not stage right exit. that is an important message, isn't it? annmarie: we are starting out the morning with his op-ed. thomas freeman hitting the

wires. make a good point, it is not going to be a reversal. make is thee does fact he thinks the policy needs to be dictated not just by the united states, but on board with u.s. allies alongside the united states in terms of a more multinational approach to a china policy. manus: indeed. you go back to john. go to quicktake. about whathief, drives policy in the united states of america. that is about look overseas. it is a bloomberg opinion which is like looking overseas in terms of other covenants. the other thing is the repricing of markets. it jacked. a knife jack in the middle of n95. the dollar so drop. you have to ask yourself the question, is bond market repricing on term premium o inflation riskr? annmarie: inflation which has

been nowhere. the market is starting to price it back in. it is not just the dollar that has moved. look at what the metal market is doing. we will have a guest? about this. metal usually moves about in tandem. if you believe that, inflation is coming back. one individual said this, mike mccormick, the market is focusing on the good news, dismissing the get news. that has to be the risk. focusing on the good news, the vaccine. potentially vaccines in two weeks. what about the bad news? the risk? the markets are completely ignoring them. manus: nirvana. you are never far from nirvana. annmarie: let's take a look at where we trade. movement happening across asia given the op-ed going to the new york times from joe biden. asian-pacific assets, benchmark up nearly 3/10 of 1%. although we had another high on u.s. stocks, we are seeing recalibration this morning. let's look across assets.

the yuan this morning, we saw weakness coming off. this is the onshore. the op-ed hit. euro-dollar is 120 feet of what happened to christine lagarde next week, driven by the weaker dollar but the ecb wants to once again get down the euro strength read can we hit 1%? down, below $45 a barrel. a lot of this has to do with the surprise in stockpiles in the u.s. demand coming back into the market and whether or not opec will be able to fight that demand or at these prices, they want to get more crude back into the market. now in the u.s., stimulus under discussion again after six months of a stalemate. nancy pelosi presented fresh democratic proposals while senate majority leader mitch mcconnell floated a revision of the much smaller plan to fellow republicans. telling ahin, right,

congressional hearing he was 5equired by law to move $45 billion in unspent pandemic relief money into an account that locked away from joe biden's administration. >> the economy has not actually performed better than expected. more resilient to spikes in cases than expected. nonetheless, we have a long way to go. i believe a targeted fiscal package is the most appropriate federal response. i strongly encourage congress to use the $450 billion in unused funds from the cares act to pass an additional bill with bipartisan support. >> we're hearing there's a lot of small businesses that are at risk of going out of business during this winter. i think they need grants. >> my decision is a legal decision, not economic. congress can reauthorize this money. >> some of these businesses, ,hat they need is fiscal policy

a grant to get them through this last step of the pandemic rather from theowing more federal reserve facility. us now isning benjamin jones, senior multi-asset strategist at state street. we contextualize a lot of the risk at the start. let us put some of this into the market. the bond market, i think structurally, priced yesterday and it did so either on inflation narrative or term premium. it has had a domino effect. your read on the jackknife. obviously, yesterday, was a reasonably big move move in 10 year yields compared to what we are used to. we have to put that into some context. years below with 10 100 basis points at the moment. i don't think there's a huge amount of more awkward move in

yields from here. i think it is a little bit of everything about narrative. yes, people are thinking about inflation and, obviously, the vaccine news. the reopening of the economy should help that narrative in 2021. we have to remember there is an awful lot of cash sitting on the sidelines that could be spread. there could be a massive unleashing of abnormal spirits in 2021. it makes sense that narrative is playing out. we have to bear in mind the fed is going to stand ready to keep those yields capped. reiteratedwell has the desire to keep monetary policy very easy. i think he's going to keep a curve,ye on the yield not just those levels of the 10 year directly, and try to keep that capped as well. i think you have these days

where you get a reasonably good move. compared to what we used to do. the longer-term history of things being the common move we saw yesterday is not a big move in 10 year treasuries. i think -- i don't think it's going to be massively extended from here. i think we are in a narrative where the better news, some of your earliest intervention there is the predominant of narrative of the deck. the news of this them in this package. another piece of positive news which has been a little bit discounted and perhaps overlooked in recent weeks. that has been a big positive. --marie: are you going to would you say we will get a stimulus deal before january 1? benjamin: i don't think it is a very difficult question to answer. if you had asked me this last week, i probably would have said no. the comments i saw yesterday were very encouraging and made

me think it was a little bit more likely. it still has to go before mitch mcconnell and he could decide not to put it to the senate. there are still lots of hurdles to jump through. i think if you look at what the market is looking at, it is looking at the longer-term. 20 itlooking past january is looking into 2021. it is looking into the reopening trade greeted if we look at what has performed since the pfizer vaccine news, it is much more about the reopening trade as opposed to getting through the winter. as you highlighted, that is the clear risk. we do see light at the end of the tunnel with the vaccine news and hopefully that being rolled out widely in 2021. we have an awfully long tunnel to get through before we get to the end. we still got the winter season. we obviously are getting a lot colder in the northern hemisphere, where you've got the holiday season.

e people moving inside, mixing more with more people. we could see a serious spike in cases and the need for further lockdowns in europe and the u.s. as a result. that is something i think could bit sentiment a little and threaten this rotation trade and the upward pressure we are seeing on bond yields in recent days over the winter period. at the moment, i think markets are looking through that, looking into 2021. volatile could be a six months was between now and the delivery of the vaccine. you talk about the pent up risk that could be unleashed. i cannot afford to wait six month until i unleash my cash animal spirits, can i? do i deploy piece by piece or how do you play this interim six months? benjamin: i think you do a judicious, gradual grip of that

cash. it is not just investors that have a lot of cash sitting on their balance sheets ready to deploy into markets. if we look at households, corporate as well, they have a lot of cash sitting on their balance sheets. if we think back to the cares act that was passed, what did a lot of people do with that money they were given this year? they saved it. a record increase in the savings rate this year. a lot of that money is still sitting in money deposits. what you will gradually see over the holiday spending period, into next year, you will see that expense by the those consumers and some of it dripping into the market. the way we would be looking out is overweight stocks relative to bonds. that is an easier call to make of the moment. reducing the cash calls into stocks. where you go within the equity market is a little bit more

tricky. so, we are seeing this spike in the value relative to growth on the 10th of november. that trend petered out a little bit. growth has continued to move up with value. about would be respite chasing it to aggressively. some of those laggards start to catch up. and reducing some of the underweights in the energies, banks and airlines stocks. hotels emma for example. fully overweight, not right now because i think, as we said earlier, that's a lot to move there. annmarie: benjamin. saying whatyou are a lot of guests have said, not all cyclicals are created equal. stay with us, benjamin jones from state street. a recap of your other news with laura wright. laura: good morning. president has discussed pardons with his three eldest children's and rudy giuliani according to

the new york times. sources told the paper the president is concerned the biden justice department might target his children and son-in-law jared kushner. he has talked to advisers about granting a pre-pardon. no comments from the president. the eu is signaling it will play hardball with budget hold out poland and hungary. it could cut their funding as soon as next year over that threat to veto the over $2 trillion spending package. if the budget is not agreed, the eu could shift spending priorities and money going to the two nations. australia's economy bounced back to growth in the third quarter. household spending surged in the government maintained support. gdp expended 3.3% from the previous quarter when it tumbled 7%. year on year, it is still down almost 4%. 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. coming up, no immediate moves. president-elect biden says he will conduct a full overview of the deal with china before considering moving the tariffs. more on that next. this is bloomberg. ♪

annmarie: good morning. i'm annmarie hordern in london. u.s. president-elect joe biden told the new york times he won't immediately reviews tariff on china. is everyone in asia just preparing for the trade war that started in 2018 to continue into 2021? >> i think joe biden, during campaign, was pretty obvious and

clear he set america would be first. the new york times phone interview has revealed his he is saying they will continue to focus on america first and will not be looking at any new trade deals or changing any of the deals the trump administration put through first. we did see in her initial reaction coming through in offshore yuan. it is'm looking at now is starting to strengthen against the dollar. this is also we know the story of dollar weakness. way of the offer you one hit signs of being technically overboard. there has not been too much reaction when you look at the equity market across asia. a little bit of downward momentum when you look at the hong kong market. the shanghai comp looking pretty good. joe biden telling the new york times they want to conduct a full review of the existing china deal before making any decisions. as i say, reentering this point about america first. joe biden sing out what to make sure we are going to fight like hell by investing in america

first. manus, ann marie. manus: he is certainly putting his stake down on the ground politically speaking. your morning call focuses on a bullish yuan. did that take a little bit of an interruption? juliette: i think this is what is really interesting, right, because even though you are seeing these headlights coming through, and as i mentioned, joe biden reiterating what he said, it looks like this china recovery story is still going to be what is driving the overall narrative in markets, particularly those in the fx. we have this call coming through from the anz earlier today, focusing on the onshore yuan. they are saying this will lead gains in asia fx next year because of the fact china's economy is going to drive these gains. also, they said the trade war could ease under a biden presidency. perhaps they will look at that closer following this new york times article. annmarie: juliette saly in

singapore. the new york times article will get a lot of play today. the ecb governing council member predicts the economy will worsen further and policymakers plan to recalibrate the parameters of its past program. meanwhile, it comes to light that ecb chiefe economist philip lane has been holding private calls with certain banks and investors and meeting in the after policy decision. the ecb says the calls only covered public information but it raises fresh questions about the central bank's communication strategy ahead of a key policy meeting. benjamin jones from state street is the with us. not the weekend yet. this meeting comes next week. i'm wondering, what is your take on this? is it worrisome the ecb is holding some of these private conversations with certain people? do they have a communication problem? benjamin: yeah, not quite the weekend yet. i think a little bit of a

communication problem, yes. i think europe has been the challenge for us, for a number of different reasons. obviously, over the summer period but it looked as if europe was getting through the pandemic a little better and you had the very fiscal packages being thrown, it looked like europe was in a better state. unfortunately, that now seems to be waning somewhat. i think the messaging from the ecb unfortunately,, has been a little bit confused over recent weeks. i think there is probably a little bit of a communication problem. i think that is playing a little bit into some investor sentiment at the moment. we don't see a lot of appreciation for european equities in a broad sense. european banks have done a little better but i think that is more to do with the global narrative rather than the european narrative at the

moment. thes: i was reprising chart, the best month ever since the ascension of the stoxx 600. does the strength of the euro play into that? many people say to us on the show, oh, don't worry yourselves about the euro. it only matters around 130. i would put it to you that the speed of the appreciation of the lane.that will irk philip benjamin: yeah, i think it definitely will. after these kind of levels, i think you are right. it does not need to get up to 130. 119, it is still an issue at a concern for the ecb. i think you are right. this is a speed that was very rapid. there is still this very strong narrative that the dollar continues to depreciate into 2021. that is a secular downturn and going to be worrisome for the

ecb. anything they can try to do to limit that, is something they will do. what can they do? short of jawboning the euro, there's not a lot they can do. the communication has been a little bit muddled. i think that is then not having the desired effect of the euro. when we look at european equities over the course of this year, they have struggled with the strengthen the euro. that is one of the areas where the co-relation has been quite strong this year. i think that is a significant concern for the ecb at the moment. manus: ok. thank you very much for joining us, benjamin jones, over at state street. coming up, the internet giants under pressure. the european union is due to have sweeping tech legislation later this month. more on the story right here on

your morning edition of bloomberg. ♪

manus: this is bloomberg daybreak: europe. i'm manus cranny. ann marie horton in london. european union set to unveil sweeping regulation that is facing internet companies like alphabet, amazon and facebook. the tech giants are warning the new move may hinder innovation. a video call with an eu official today. let's get to maria tadeo with the details. good to see you. who is jumping on the call and what is the purpose? we have more than 1000 companies jumping on this call with the internal markets commissioner and all the big tech from amazon, facebook and google are represented on this call. the timing, as you said, is key because this is coming a week before the european union

purchased what could be two major pieces of major legislation. the general services act and digital markets act. this is the final act that big tech will have to make their case before the regulator, before they get announced. it will not be easy to change their minds here because the european union has already singled clearly, the direction of travel is to rein in some of that big tech. i would also point to the words of the commissioner who has been charged who says it is not up to europe to adapt itself to big tech. it is big tech adapting to the european playbook. that means perhaps more fines and more severe cases to break some of the businesses if necessary. i would say it is another -- the fact we get this legislation coming in next week does not mean it will be operational so quickly. anything that gets done in the european union does require time. and into an agreement between the parliament, commission, government. we are looking at one to two years down the road. annmarie: very briefly, what is

the response from the tech space? maria: the tone has changed. for the most part, they have come to terms with the idea they will have to pay more taxes in europe. there will be regulation changes. they argue whatever new rules come to play in europe, they need to be simpler and standardized. if there is not, there could be a real threat to innovation. the other thing i will point, it will be interesting to see if the biden administration changes the dynamics between the eu and u.s. before -- president trump used to say it is only the u.s. that should impact u.s. companies. annmarie: maria tadeo, thank you. we will have more throughout the month. coming up, race to the finish line. u.k. and eu negotiators try to reach a brexit deal. the pound is trading north of 1.34. good for me, bad for manus. that is coming up next. this is bloomberg. ♪ in a land not so far away, people are saving hundreds

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and texture, so they'll blend right in for a natural, effortless look. call in the next five minutes and when you buy 500 strands, you get 500 strands free. call right now. (upbeat music) >> good morning from bloomberg's european headquarters. europe."daybreak these are today's top stories. u.s. stocks close at records amid revised fiscal stimulus talks. jay powell and steve mnuchin back further aid at senate testimony. united states president-elect immediately --

will not immediately remove chinese terror. the christine lagarde says the ecb will recalibrate its tools. philip lane calls banks after policy decisions renewing unease about its communication strategy. 6:30 in the city of london. we were supposed to focus on what we are seeing in the bond and thusespite -- spike in treasury yields, dollar weakness. joe biden talks to the new york times and we are potentially back into 2021 with worries about u.s.-china trade concerns given the fact he said he will not make any immediate moves on those 25% tariffs of chinese exports going to the united states. is putting his political stake in the ground in terms of not starting on easy street. iran warning we are not going to roll over. we may stop inspections america

does not lift sanctions. you mentioned the bond market. our guests, state street, said he is not expect repricing. it was one of the biggest one-day moves in the bond market this year. state street think it is a run-up and it is very nearly done. my other guest this morning said expect the breakevens -- sorry, the curves to steepen. maybe the curve is more expensive. anna: -- annmarie: benjamin jones was talking about the fact, we asked him, when we get a -- would we get a stimulus deal? he said no, but another seems to be bipartisan movement. december 11 is going to be key. they have to pass some sort of aid bill to make sure the -- continues to operate. mitch mcconnell says maybe they throw on coronavirus stimulus.

potentially we can see something before january 1. manus: let's kick around these markets. the dollar continues to drop. equity markets made record highs. the asia-pacific section still in the green, playing catch-up trade. we get back 0.25%. this year has been the biggest year for 1% moves on the s&p since 2009. nobody can decry the volatility. ,he move from growth to value maybe you want to sell some europe. have a look at the yuan. joe biden's comment moved the yuan. we were in strengthening mode, we give a little of that back in the offshore. euro-dollar. will philip lane be irked by 120? yield of 1.9%. bank of america had 1.5%.

oriana said to me, looking for see hundred basis points on the steepener. she said supply was dragging the oil market lower, not family problems. let's pivot to brexit. it has been a while since we focused on it, but the british and the eu negotiators are racing to strike a post-brexit trade deal before the end of the week. officials on both sides say progress has been made in the last few days, but the outcome is still too close to call. that is as the biggest obstacles remain. access to eush fishing waters and a competitive playing field for business. the issue of fish, let us talk about this. what is priced in for a brexit deal? on the ftse that has been moving higher. as well you have seen the equity market, and the ftse 100 has rallied in the past number of sessions.

let us take a look at all of that. the major benchmark moves and the currency is moving. craighead, them bloomberg intelligence man who has a few opinions on it all. good to see you. let's talk about this ftse 100. years,ck a couple of this is a market you would want to leave alone. and market you want to absolutely be out of. the tone has changed, hasn't it? >> it has. that assessment over the past couple of years, the best thing you could have done is to indeed be away from the u.k.. bit.is shifting a part because potentially brexit goes away, part because of the nature of the ftse having a lot of cyclical exposure. it is a great post-covid recovery play. simplyperspective, we

have to get through this brexit deal. it does still matter, and it matters in particular if there is not a deal that comes out of this negotiation. i have to say, our focus has been on three interesting trades within the ftse as opposed to the ftse itself. you look at domestic versus international, small-cap versus large caps, the ftse purchase the continental market like the euro stoxx, that is where the brexit intrigue is versus covid intrigue. what is the domestic versus international equities trade telling us about brexit prospects? >> the way we think about this is you take the ftse and the companies that are 50% domestic by revenue, compare those versus those that are international. 70% overseas. the domestic companies have

outperformed the international by 15% since early september. had 15%a trade that has or more moves four times in the last 20 years on brexit sentiment. the domestics are builders, bankers, retailers. problemwould be a big versus, the international guys, global franchises, they are inversely related to the pound. if a deal happens, trade can extend a little. it has certainly already made a move. go to 140.an deal, you want a to belong the internationals and short the domestics. two intractable problems. one is fish and level playing field.

you mentioned the small-cap to large-cap ratios. how much of a movement have we seen in that? is there more to go? >> it is interesting, it is sort of the same drivers. the small caps more domestically oriented. if you look, industrials, consumer discretionary, and property are about 60% of the ftse small-cap index. the large caps in franchises we talked about. able to beshould be on a deal with a stronger pound and post-covid recovery. i think it is subject to whipsawing the other way if there is not a deal, god for bid. d. god forbi

companies are so heavily weighted on the ftse 100. >> they are. you talked about the ftse upfront. this is one reason a lot of people have talked about the ftse being something to stay away from. it is still very large in metals. tinto.hp rio that is what gives it the leverage on post-covid recovery. we exclude these guys from our international comparison because it is such a different piece on then thedity front other global international franchises in health care and pharma. with these guys, it is not about brexit. the pound does not matter. what matters is a global recovery. and here it is about post-covid recovery. it is about big stimulus programs like the european recovery fund that needs to get

past moving forward, big infrastructure place, things like that. it is working especially with intoinors area as we look 2021 there is an opportunity for oil. 2020 opportunity for oil. i'm sure the opec ministers meeting virtually will like to hear that. tim craighead. coming up on the program, the effects of the pandemic never cease to surprise as the copper-gold ratio breaks away from treasury yields. is this the new normal? that is next. s next.

manus: it is the wednesday edition of "daybreak europe."

breaking news lines coming from the iran president. this is hassan rouhani. he is saying the bill to counter the u.s. sanctions harms diplomacy. he says he is against this bill to end the nuclear checks. as opposed to the hardline parliament article, which is where the parliament was giving washington a month to halt the end thes or they would international inspections. playing hardball with the incoming biden administration, and the sanctions are we end the inspections. here is rouhani trying to set the stage. you read the op-ed in the new york times. besides china, biden made some news when it comes to foreign policy. the 2015 jcpoa has been hanging

on by an absolute threat. biden is going to try to salvage it. he stood by what he said to cnn and that is that if iran returns to strict compliance on the nuclear deal, obviously not going ahead with this bill, the united states would rejoin the agreement. you and i both know this is not going to be nearly as easy as it was in 2015. there has been a lot that has happened. manus: if we look at the context of what biden has said on the china-u.s. relations, the assumption you and number of other people have had in interviews was, straight back into jcpoa, into resolution with the run, maybe these fast-track assumptions that have been made need to be questioned. annmarie: a lot of guests have set on this program that what is going to be forefront for the biden administration is getting domestically america back on

track in terms of coronavirus, in terms of unemployment. foreign policy is going to be second nature. iran and china are going to the top two we are discussing this morning. to the market, there are signs the uneven economic recoveries are challenging trusted economic indicators as the copper-gold ratio breaks away from the treasury yields. the ratio has been correlated with the 10 year yield level. recently copper has surged, leaving treasury yields lagging behind. just start with copper. it has been an absolute tear. ?oes this continue does the copper trend continue given what we are seeing in manufacturing data and climate policies coming up around the world? as you said, copper has had an enormous run, and a lot of

that has to do with china, the biggest market for copper. partly it is a restocking story. as we camed was bare out of the summer period. we have seen restocking demands. uptick inen big factory activity and utilization rates. that is on a pretty impressive ride. manus: good to see you this morning, welcome to the show. a couple of big things. , where are the tightest markets? i ask you because of the country you come from. you have iron ore. exports are not as effusive as they were from the big four. some physical duplication in the market. i have rolling covid. where will that tightness manifest? will it continue in 2021 across the market?

>> industrial metals have led the way in this post-recovery environment. iron ore has performed exceptionally well. at the start of the year, there were quite a few supply issues which have largely been resolved. it really is a demand story. we know china is good at throwing money at infrastructure projects. the performance of industrial metals so far would suggest market participants are inecting a reasonable uptick economic activity through the first half of next year. annmarie: i want to get where you stand on gold. breakevens, gold could do well with inflation. economy,eing a buoyant

people may want to ditch gold and go for riskier assets. what do you think the outlook is? are we going back toward the $1700 per ton for gold? >> gold really took a hit in november when we saw investors move back to riskier assets. one of the points i like to look at is the inflows of gold into physical. -- they are really at the lowest levels we have seen in 12 months, which might adjust investors have cooled a little bit on gold. there are still holding as we know it record highs. gold is an interesting play. it has no income stream. it can do very well in an inflationary environment. we think a lot of investors are probably at their ultimate gold holding in terms of a portfolio and diversification perspective. we would need another impetus to get gold moving again if we

assume we are going to see a reasonable recovery coming into next year. your opinion is as valuable as everybody else's, if not more so. it is qualified. can bitcoin challenge gold for a piece of the hedge pie? >> you know, it appears bitcoin has fallen into that bucket of inflation safe haven type assets. and maybe two particularly , maybe theystors think gold is a bit old and boring. the price-performance, we can certainly say there are a lot of investors that do like it as a safe haven or inflation site. meus: the contrarian -- let

give you the contrarian trade. we have a gold fund. maybe there is room in investment portfolio's for bitcoin, as a lot of people have said, especially over the past two or three years. i want to get your sense of for the oil market, given we have the negotiations taking place with opec-plus, i want to get your sense on the supply and demand right now. in asia we are seeing demand almost back to normal, but a very different picture in the west. do you think it would be a mistake of opec was to allow more crude back on the market? >> opec is in a bind. they have to try and manage supply, increase prices enough to be able to support their own budgetary requirements, but maybe not enough to cause the u.s. to turn the tap back on.

they are still rightly worried about the demand picture in north america and europe, although as you say, the asian demand picture is much improved. spot.re really in a tough i would expect we would see some type of space-saving agreement in the next couple of days, maybe we see the current cap extended for a few months and then some managed increasing after that. a tweaked and manage supply. we thank you for joining us. come back, fiona, great to have you with us. coming up, no immediate moves. president-elect biden says he will conduct a review of the deal with china before removing tariffs. ♪

annmarie: good morning, this is "daybreak europe." joe biden has told the new york times he will not immediately remove phase one tariffs on china. we are joined by our senior international editor. she is now over in asia. i want to ask your take on this. is it surprising at all? >> i do not think it is surprising given that most experts are thinking joe biden was not going to make immediate changes in his china policy. that is really what the story -- that is what he told the new york times. he said he thought the best china strategy is one, he said, that is now or used to be getting allies on the same page. he wants to basically use the first weeks of his presidency to

get back on the same page with the allies. what he is going to do is cement those relationships and look at the china relationships. if he was to remove the tariffs, that would have signaled he was going to make significant changes, perhaps in his china strategy, and he does not want to start that way. that does not mean he will keep the same strategy president trump had with china. but one does not think he is going to deter a whole lot. he said he hopes to combat china's abusive practices including what he called stealing international intellectual property, which sounds like pretty tough talk on china. we could read this as being a move toward multilateralism in that does involve reaching out. >> i think he is going to take more of that kind of approach,

certainly then donald trump did. he has made a lot during the campaign, he said a lot of times on foreign policy he wanted to go back and reestablish those relationships with allies, including allies in asia. i think that probably will be his first steps, and that is something his secretary of state tony blinken, that is an approach he favors. manus: thank you so much. jodi schneider on the latest breaking news headlines on the u.s.-china relations. annmarie, you had the opportunity to read the op-ed. the other key line is on iran. a quick line on that. annmarie: he basically stood by the fact that if they start to go back to the agreements they had made, that is the opening for the negotiations for him to sign backup to the jcpoa.

that does it for us. the european open. this is bloomberg. ♪

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anna: welcome to bloomberg markets, "the european open." the cash trade is just under an hour away. a fresh offer. treasury yields the spike and u.s. stocks close at records. fiscal stimulus talks are revived. jerome powell and steven mnuchin back further aid. taking it slow. joe biden declares he is in no rush to remove phase one tariffs on china. heay