biontech the pfizer vaccine is approved and could be available as soon as next week. taking it slow. president-elect joe biden says he is in no rush when it comes to china and says he will conduct a full review. fiscal stimulus talks. jay powell backs further aid. good morning, everyone. welcome to "bloomberg surveillance." i am francine lacqua here in

london with some very positive news when it comes to the vaccine. we have in the u.k., the fact that it was approved, announced just two hours ago. a lot of the focus of courses on pound. the pound is dropping on this budget report. again, it seems like two steps forward, one step backward. unclear where things stand now, but they reversed the game after someone allegedly told the ambassadors there may be no deal with the u.k. stocks edging lower, again, possibly because of the no deal brexit along with president-elect joe biden's undecided stance on chinese tariffs, has the dollar inches higher, and we. also have the renminbi. . i think we will have that for you shortly. let's get straight to the bloomberg first word news in london with leigh-ann gerrans. hi, leigh-ann. leigh-ann: hi, francine.

president-elect joe biden says he may reverse terrace with china, and will conduct a full pli's peer heing hopes to tackle abusive practices in china, vowing to invest in america first. staying in the u.s., president trump has discussed pardons for his three eldest children and his lawyer, rudy giuliani, according to "the new york times." sources tell the paper that the president is concerned a biden justice department might target his children and indeed his son-in-law, jared kushner. he talked to advisors about a preemptive pardon. no comments yet from the president. the eu has signaled they will play hardball with poland and hungary, could significantly cut their funding as soon as next year over threats of a $2 trillion spending package. if a budget is not agreed, the eu could shift spending priorities and delay money going to the two nations.

finally, china has landed a spacecraft on the moon as part of its first mission to bring back lunar samples in more than 40 years. that will make it only the third nation in history to retrieve the rock, after the u.s. and then the soviet union. is unmanned craft expected to be on the surface for about two earth weeks. 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. i am leigh-ann gerrans. this is bloomberg. francine? francine: leigh-ann, thank you so much. now let's get straight to our top story. the u.k. has approved a pfizer-biontech vaccine to be used. let's get straight to sam fazeli, bloomberg intelligence's senior pharmaceutical analyst. sam, thank you, as always, for giving us a little part of your busy day. i know there are talks a vaccine

would be available asap in the u.k., but does it mean that it will accelerate other jurisdictions, also saying they are ok with the vaccine being approved? sam: morning, francine. vaccinet news that the has been approved by the u.k. i do not think it will affect other jurisdictions. the fda already has its timeline set up for simmer 10 for the biontech meeting, and it is a public meeting, so anybody can listen to it and see all the data in its full glory, and of course december 17 for the motor in her vaccine, and we think -- moderna vaccine. this does not really impact much else. francine: sam, what does it impact? it will come a longer term, of course, impact lockdowns. how long will it take for, you know, lockdowns to easily fade? how much of a percentage of the population do you need to vaccinate to get rid of social

distancing and masks? masksocial distancing and are going to be with us for a lot longer than the first rollout of the vaccine. what i'm looking forward to is if the u.k. can manage to get to the 20 million, 21 million people who fit the health care worker criteria and are above the age of 55, that means perfect execution, no doses of the vaccine wasted, if we could do that, then we can at least forget about lockdown. i think that is what u.k. needs to focus on. is the mainm, what challenge in distributing and vaccinating people right now? sam: the vaccine that we have the most doses of, which is the 40 million doses of the pfizer-biontech vaccine, everyone has been talking about it needing a -60 degree, -70 degrees storage come a comes in 1000 doses, you only

have a short period of time to use it, and you need to get people back in 21 days after the first dose to second dose. timelines tohose avoid wastage of the vaccine is going to be very tough, and that is what i am hoping the u.k. can achieve without them losing vaccines they would desperately need for vaccinating people. francine: sam, what happens if the virus mutates? has that mutated so far? hoping we rather would leave that for another day, but it is a risk we would have to assume. seen arus has only natural, human immune response to deal with. as soon as we force it with a vaccine or therapeutic to potentially into a corner, it can start mutating. there are already mutations out there in the human population that are not as responsive to

the antibodies humans have developed themselves, so there is a risk, and we have to make sure testing and tracing continues at a maximum paste, that is absolutely critical. francine: thank you so much, sam fazeli. we will have much more throughout the days, weeks, and more. alberto gallo is from alger breece. you actually have a an approval for a vaccine, does that mean we will be vaccinated quicker than we thought, and will we see a deep and long lasting recovery next year? alberto: good morning, francine. we are still looking at execution rates. there are almost record highs in u.s. stocks, and we are back at pre-covid levels in a lot of markets. however, we know there are only a number of doses, and there may

be also collateral effects. there are a lot of things that we do not know, so i would say here, you know, we are looking at a more important stance across our investment process, and generally, you know, we are supported by central banks being very dovish. ecbe is going to be more cutie on the 15, next week, and also more fed qe at the next fed meeting, but there is already a lot of expectations about that, so i would say, you know, the glass is definitely half-full, back, are taking a step about the vaccine and monetary policy here. francine: what does it mean for next week, alberto? we talk about the markets and if there are any fundamentals to support that. what is the main danger for next year? that we have a correction because of monetary policy, leading to do much inflation, or something else?

alberto: obviously there are negative risks, for example, in a foreign policy, the vaccine may not work as quickly come execution rates, but there is also the positive risk, which i am more worried about, because the micro community has widely discounted a fiscal stimulus having out ofw, congress, so interest rates are still very low. treasuries are below 1% of the 10-year. even though there is a very strong risk-on movement across asset classes. essentially, a lot of the valuations that we see in the market rest upon the very low interest rates that investors are enjoying. if there areange fiscal stimulus is bigger in the u.s., which we see the treasury secretary already has talked formernequality, and the

chair, janet yellen, has always been worried about equality and the lack of growth that many states, many places have been enjoying. so if you see a more redistributed fiscal stimulus in the u.s., if money actually goes to people that needed, then you may see a little bit of inflation, and this could put some doubts on the loose and of monetary policy. it is not something we may see in the next few months, but we may have a new key round of fiscal dominance coming next year, starting next year, and this means monetary policy may not always be able to backstop markets, so i am calling this a positive risk, because it is good for the economy, it may create some volatility markets, but in the end, you know, we care more about the economy than markets. francine: what we have a fiscal stimulus in january in the u.s.? alberto: the georgia election is

obviously, you know, a key point there, but i think even with a divided congress, if there is someone who knows the consensus-building tactics in d.c., that is biden. he has been there for, you know, a long time in his career. he is someone who is close to senior republican senators. that is biden. i think we will get -- there is a bigger chance that the market expects to get a bipartisan stimulus and to get something which is bigger than $1 trillion next year. francine: alberto, thank you so much, alberto gallo of algebris investments, stays with us. we will talk more about background, too. coming up, no immediate moves. president-elect biden says he will discuss a full review of the deal with china before eliminating tariffs. this is bloomberg. ♪ this is bloomberg. ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i am francine lacqua here in london. now let's get straight to the , bloomberg business flash, here's leigh-ann gerrans. hi, leigh-ann. leigh-ann: good morning francine. ,salesforce is buying slack for nearly $28 billion. it is the software giant's largest ever acquisition, giving a control of the popular workplace communications platform. the deal is a premium first like's stock price just a week ago. goldman sachs is lifting frictions that block essential stock on its london office, as the u.k.'s month-long lockdown ends, employees no longer have to work from home. other firms in the city of london will likely let more return, giving

businesses in the city a boost in the run-up to christmas. backlash from investors. bloomberg sources say the firm will let options expire instead of maintaining the position. softbank's foray into derivatives were first disclosed back in september, cutting the company's market value by as much as $17 billion. no official, yet from softbank. and that is your bloomberg business flash. francine? francine: leigh-ann, thank you so much. there is at least one of president trump's policies biden will keep in place, at least for now, he will leave the phase one deal with china at lease for now, and place. he will look at tariffs on chinese goods. still with us, alberto gallo of algebris investments.

alberto, is the market putting too much hope that joe biden will go back to a multilateral, you know, what we saw five years ago in world trade? is he going to be more cautious, you know, about what he does, going forward? alberto: there is a big distinction to be made, i would say, between mexico and europe vs. china, and even the democrats are a lot more hawkish with china today than they were five years ago. we don't have big hopes that it is going to become, you know, a very friendly relationship with china, between china and the u.s., but the winter, from a foreign policy perspective, that europe and mexico, where things are going to be a lot softer, and the loser is going to be russia, potentially, and to some chinese-u.s. relationship will remain slightly softer, but i would say unchanged.

historically, we are looking at the, you know, change in an era, where the u.s. is losing its share of global gdp and china is gaining. the covid crisis has been dealt with much better in china, and, you know, there is going to be a stronger path for china to capture global growth. there's going to be tensions there, but obviously not as unpredictable as before. say still a moderately positive stands for emerging markets, but outside of china, the winner in the end is mexico, the winter and developed markets is europe. francine: alberto, where do you see china in this? china, just because they got out of the virus quickly, if you look at gdp growth, it is ok. what should we worry about in china? alberto: i would say that, you know, generally they are are some fragility is inside the economic and financial structure

of the country around, you know, overhangs of debt in the private sector. and we are seeing a bit of the fault in local currency, but overall, i am more worried about china's strength here. it is the only country with forward-looking all is the. monetary policy -- forward-looking policy. monetary policy has been hawkish, trying to save, while other central banks in the world are printing as much as possible, so, you know, we are also seeing capital increasingly going into chinese assets, both in hard currency and in local currency. you know, eventually this is going to be a stronger shift. it could accelerate. we are not seeing the demise of the dollar yet, but over time, you know, we are seeing investors going to look for other types of currencies, both in other countries and in commodities and in digital currencies. so i think it is part of a global growth rebalancing that we are starting to see, and

probably covid has accelerated it. francine: thank you so much, alberto gallo of algebris investments stays with us. coming up, the pfizer-biontech vaccine. much more of course on that top story throughout the day. we will also get back to alberto to talk about brexit. this is bloomberg. ♪ xit. this is bloomberg. ♪

francine: this is "bloomberg surveillance." i am francine lacqua here in london. now, the u.k. and eu negotiators

have discussed a last-minute brexit deal this week, but sources say it is too close to call. differences remain. meanwhile, boris johnson has expressive or vote by 55 of his colleagues. the pm wanted to vote on new pandemic rules, it is clear he cannot rely on his own party to back him up, especially as the u.k. heads into winter months. still with us, alberto gallo from algebris investments alberto, first of all, are you expecting a deal? alberto: one of the silver isings of the u.s. elections now we have a u.s. administration from january that won't support brexit. so i would say that balance has definitely shifted to give the eu the upperhand here, on top of

the internal dissent that boris johnson is facing. so we do expect a deal. we think that, overall, this could unlock some capital to go back into the u.k.. u.k. assets generally have been very, very much involved, over the last decade, a lot of asset managers are based here, and the pound was the 6% of global reserves, used to be, versus just 3% of global gdp. so the world used to be overweight u.k. assets before brexit started. now the world is underway, so, you know, we see a deal, and we see summer evaluation, some repricing, positively, you know, across u.k. assets. alberto, what happens if we don't have a deal? or are you just taking that off the table? alberto: well, if we don't have a deal, we will have a, you know, complete stop in commerce.

we will have a much longer process to establish trade, depending on what is allowed, probably basic trading's in goods will be allowed. services will be hit, and the u.k. economy will have to gradually reengineer certain sectors and industries, go away model tore services coming back to having an industrial strategy. we do think this is something the u.k. needs to do anyway, you know, industrial policy has been too focused on london, on financial markets, which account for over 10% of gdp, and with lending and accounting for more than that. so there needs to be some -- with london accounting for more than that. so there needs to be some diversification. next year, we will see a strong growth number and percentage, but to come back to pre-covid levels of gdp, we probably have to wait to the end of 2022.

so it is a slow path toward recovery, but in this context, maybe there is a bit of fear, a bit of risk premium on success of u.k. assets, which could disappear if there is a deal. francine: alberto, thank you so much come alberto gallo with really the background of the week, portfolio manager at algebris investments. coming, cutting 20 of its funds. will the next year see competition ramp up? we will talk about that and much more, eight health care, etf's, sustainability or our weekly show, etf iq europe, is next. this is bloomberg. ♪ ♪

francine: welcome to "bloomberg etf iq europe." i'm francine lacqua. over the next 30 minutes i will be a guide to rising markets and exchange traded funds. everything you need to know

about the funds and the flows. becomes: is the u.k. the first western country to approve a covid vexing, we will discuss what the news means for investors. the record month european stock etf's see, with flows of more than 14 billion euros on course to overtake fixed income for the year. if you have gold holdings drop back to the lowest since july well bitcoin -- first