>> the resurgence of the disease promises nothing good for the u.s. economy. >> with the vaccine insight, there is much hope. >> entrepreneurial americans welcome back. >> there is demand for getting out of the house. >> there's an enormous amount of stimulus that has yet to be spent. >> even the 2021 is supposed to be a good year, you may start off in a deep hole. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. from new york and london for our audience worldwide, good morning. this is "bloomberg surveillance ," live on bloomberg tv and radio. alongside tom keene and lisa abramowicz, i'm jonathan ferro. wednesday morning, record highs at the close yesterday on the s&p 500 and the nasdaq. more good news, particularly for the u.k. the vaccine rollout could begin soon as next week. tom: worldwide vaccine news is very constructive. we have seen other headlines on that.

the story here has to be it is not so much missing the markets of march. the nasdaq is up since september. it is missing the markets through the autumn, q3 and into december. jonathan: i use the word euphoria you loosely. it depends on which side of the trade you're on. that is the debate as we wind down the year of 2020. how much is left in this rally after we have already boosted this price target over and over again on the s&p 500? tom: i think you nailed it, jon. what i see in the zeitgeist is the thundering silence. what i've noticed in the last couple of days when i was off on my sabbatical was the thundering silence that is out there. jonathan: the sense of capitulation. we got a scent of that in the last couple of weeks. lisa abramowicz has pushed back

hard over the last several months, that's for sure. defend mental's, markets. good morning, lisa -- the fundamentals, markets. good morning, lisa. lisa: on a more optimistic note, we are getting the initial drumbeat to friday's job report at 8:15 a.m.. the adp report for november coming out. 300 62 5000 jobs added in the month of october. powell, nguyen appear before -- powell and mnuchin appear before the house financial services committee. you have steve mnuchin for theng why he asked money back, saying it is congress's role to approve the extra funding for lending programs, not the treasury department. i am really excited about the beige book this month. frankly, i will let you make fun of me for this, but i really am interested in the dichotomy

between the slow down in what we are seeing in the services the manufacturing and elsewhere. businesses that have the luxury of looking past the bad news of the now to the good news of a post-pandemic world. jonathan: are you really excited about the beige book? lisa: i am genuinely excited, yes. jonathan: ok. tom, over to you. [laughter] tom: i'm glad you bring this up. we bring it up with the great here atf richard yammer bloomberg. he never liked the beige book. he reinvented it, calling it the orange book. wentn forbid, he also out and talks to see class officers about what they see across the nation. it wasn't like the usual 50 talking head ceo types. it was people in the trenches. what they see right now, as we saw from peter huber earlier, is a pretty fragile american economy. jonathan: what a great man he

was. a fragile economy, but this data comes in pretty strong, resilient almost, over the last several months. an unappreciated recovery in many parts, and the dataset that keeps doing ok, we side in the ism just yesterday. here's the price action for you. equity futures just a little bit softer. record highs on the s&p 500, on the nasdaq 100 this morning. we inch lower by 0.2%, through $1.20 on euro-dollar. we have a new 2020 hi on the currency. we are down 0.2% on the civil currency. the dollar making -- on the single currency. yesterday, the last 24 hours, it was all about the move in treasury yields. yields up, up a little bit more, and up again, 92 basis points on the session this morning. the news that came out about two hours ago that pfizer had had its vaccine approved in the u.k. by an independent regulator,

recommending to the government to give them that approval, vaccinations could start as soon as next week. let's bring in sam fazeli for more from bloomberg intelligence. every time you join us, it is good news, and that makes us happy. and i've been pretty bored recently with the consensus view around this market. put a smile on our faces. the rollout, what does it look like in the u.k. over the next several months? sam: the rollout i think will be pretty much the same in most of the jurisdictions where this vaccine will be made available. initially, i suspect the people who are going to be offered it will be the health care workers. workers willh care be easiest to get to first because they are mostly based in hospitals or institutions who can manage the requirement for this vaccine. be thet one will long-term care facilities, some of which are not going to be that close to a hospital. that is going to be quite interesting in terms of

delivering a vaccine to those areas and keeping it fresh so that you can get that into people's arms. jonathan: the prime minister saying there's no plan to make the vaccine mandatory. as i understand it, you get the first shot. you get the second shot about 21 days later. where is the execution risk for you then, sam? sam: initially, part of it will be that time difference. they've got to figure out how to get enough doses to areas where i've gone in and had my first dose, you've gone in the next day in the day after, and we will all be scattered in terms backe days we have to go for our 21st day shot, in terms of the timing of that. that is going to be the interesting way they are going to manage that, given the fact that this vaccine requires those kind of low temperatures. i suspect we will get a decent amount of wastage.

jonathan: brilliant to catch up, and important to recognize some of the execution risk over a really promising story. sam, thank you. i believe the u.k. has access up to 40 million doses. that rollout is going to be scattered over the next 12 months or so. upfront, residents in care homes. fortunately, it is going to begin pretty quickly. we just talked about the debate in america which is, do we vaccinate athletes playing right now, do we vaccinate nurses? i'll be blunt, he was heated. he said this is baloney. we've got to vaccinate the nurses, the doctors, the frontline workers. i think it is a more visible

thing, and may be better handled right now, and the united kingdom. jonathan: the news this morning over womanly priced over the last month. this market pricing in a better 20 pulley one. andrew -- a better 2021. slimmonlim on -- andrew joins us now, head of applied equity advisors at morgan stanley. now?ncomfortable are you andrew: well, i am delighted because we bought a lot of these reopening stocks in our funds, starting last summer. i think i was only show and i mentioned cruise ship's to tom, and he choked on his breakfast. those stocks rocketed. post-covid,cing in and i think the point is when we get through covid, it will be too late to own most of these stocks. that is the toughest thing about the market. the market looks forward, but data is concurrent.

what isaac is quickly happening, if you look at the holdings data amongst institutional holders, they are still pretty heavy in tech, so all pullback i think in the market or in the cyclical sectors, they are not going to pull back much because people are repositioning. investors are repositioning portfolios because they have largely missed it until just recently. lisa: let's unpack some of this on "bloomberg surveillance." i will say, you have noted that you did by the cruise liners and all of the beaten up stocks earlier in the year. congratulations. now you are saying you are probably going to bring down risk heading into year end. how much? any cyclicals, or just broadly? andrew: i've got to be in the equities, but just our exposure through the amount of risk,

look. the market, we had a tremendous november. we sought record inflows. sentiment is very high, and it has all the trappings of a dangerous time, but for the fact that it is september. the breadth of the market is very broad, and there is this history of what is called the honeymoon period for new presidents. the market seems to rally between when they get elected and when they come into office. but i suspect by the end of this month, the market will be very overbought. the breadth will start to narrow, and i think a lot of the alreadye areas have lagged a lot, and that is a time to bring down risk as i suspect the market will have a tougher go at some point in january. right now, everyone is focused on covid, but there are other risks out there that no one is mentioning. we have to talk not about the known risks. what about the unknown risks?

has anyone talked about geopolitics, other than with china, in the last year? what are other risks out there that could pop up? my experience in this business is it is the unknown risk that brings the market down. don't think covid will. , with themorning unknown unknowns. thent you to dovetail unknown unknowns with the fact that you are writing optimistic on asia. adxy really buttressed up, breaking out to new asia bundled currency strength as well. i look at the singapore etf halfway back to its trendline as well. is there more in asia, or has the bounce been had? andrew: yes, i think there is more in asia are one simple reason. .

-- if yous on there look, the history of when your markets work is when the dollar depreciates, and if the dollar goes the other way, they don't go up. as long as the dollar depreciates, i think money will flow, and you have an opportunity for growth in these stocks. tom: we got to $1.22 last time, and everyone started screaming in euro. whatever this baloney, we will get weak dollar, strong currencies, and they're going to start screaming. are they going to scream in asia, demanding the dollar go the other way? andrew: i am not so sure i am quite as bullish on the euro. indon't have a big weighting europe, so that is a different story. but i think these currencies

will continue because i think fund flows will push them that way. i am not a bitcoin expert, but i can't help but think that is telling you there are issues with the dollar in general. jonathan: i always loved that line. i'm not an expert, but. andrew: well, i wake up in the morning and see that bitcoin is up, and i go, ok, risk is on. there seems to be a correlation to the cyclical trade going on. as: when you have somebody talkingshed as andrew about bitcoin, i don't know what to say. lisa: extend wish best extinguished -- extinguished? andrew: i don't know if that is good. [laughter] european financials are up 30% this month.

people are so underweight in europe, they are struggling. but european financials were a great place to be, it is seemingly staying negative. i don't see the big earnings revisions that i see going on in in u.s. andi see emerging markets. i have to allocate. what is the maxim place for returns? i think the best returns will japan, relative to europe and japan. jonathan: andrew, great to catch up. good to hear from you, sir. futures down nine. the s&p 500 up zero point -- up. 0.5%. i never said welcome back -- up 0.25%. i never said will the back. welcome back. tom: it's been long. a sabbatical.

i cooked, you know. lisa: brined. jonathan: i saw some of the cooking. lisa: the ferro method. tom: they forced me to come back to work. here, let me hold the door for you. goodbye. jonathan: and then kick you out. [laughter] futures negative 0.25%. from new york this morning, good morning. this is bloomberg. ritika: with the first word news, i'm ritika gupta. the u.k. has become the first western country to approve a coronavirus vaccine. british regulators have given emergency authorization to the shot developed i pfizer and biontech. the two companies have said there vaccine is 95% effective in preventing the illness. it will be available in the u.k. starting next week. president biden won't quickly end the phase one trade deal with china. he told "the new york times" he

first was to conduct a review of u.s. policy with beijing. that will include consulting with key allies. biden also said he would not make any immediate moves on tariffs imposed by president trump. in hong kong, activist joshua wong sentenced to more than a year in jail for leading a protest outside police headquarters last year. it was one of the most high-profile cases in the government crackdown on the pro-democracy movement. nowother members of wong's disbanded political party received shorter sentences. bob iger says he would consider a role in the biden adminstration. he spoke in an interview on bloomberg tv with david rubenstein. he said that serving the country in some fashion is something he would think about seriously. iger stepped down as disney's ceo in february. he is due to leave the company entirely by next december. 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. i'm ritika gupta.

this is bloomberg. ♪ ♪ >> i continue to believe that a targeted fiscal package is the most appropriate federal response. i strongly encourage congress to use the $455 billion in unused funds from the c.a.r.e.s. act to pass an additional bill with bipartisan support. jonathan: secretary mnuchin before the senate banking committee, calling for more stimulus. anyone listening? the talks are happening. where are they going? from new york and london this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. live on bloomberg tv and radio, here's the price action.

record high in the close on the s&p 500. a soft, muted go back. -0.2%. we will talk about a weaker dollar a little later on this morning. dollar making the smallest of comebacks. in the bond market, what a move yesterday. it is based on what? the data, talks, positioning? yields up underway. tom: we will get to that any moment. right now on the politics of the moment, our chief washington correspondent kevin cirilli. when the news changes, i change, kevin. i know there is an idea of stimulus, this, that on the other thing. the only thing people are talking about is 8:00 last night and the idea of pardons.

gerald ford pardoned richard nixon in 1974. what is the linkage of the nixon pardon to president trump getting out front of pardons before anybody is guilty? kevin: first and foremost, what we know is that it is now being widely reported that there is a department of justice investigation into a pay for pardon scheme. we don't know the individuals. we don't know any names. but we do know that officials have actually obtained laptops, ipads, and other devices as part of this investigation. secondly, earlier this week, attorney general william barr meeting with president trump at the white house, connecting the dots. it would seem there are more questions on that front. thirdly, to your point, a lot of questions about just how much president trump can explore the issue of pardoning. that is being openly discussed in the legal sphere, and has been for quite some time, ever

since the president pardoned general flynn. tom: the self pardon issue, we won't even go there this morning. ist is so important here this word fairness. s, is there a difference between republican and democrat fairness. kevin: in terms of the interpretation of the pardons, yes. let's discuss the politics because we are staring down the january 5 deadline of the georgia runoffs, and which, quite frankly, the pardoning of someone like a general flynn would do well with someone who was praised and converse because republicans thought that the investigation was "a hoax" for quite some time. are funding a some pathetic year, and dare i say a crowd that really does want to see fairness from their viewpoint in the issue of pardons.

democrats obviously take very much objection to this. they have come out with statements questioning just how much the president is able to execute his pardoning powers. jonathan: that's the politics. let's get to policy. secretary mnuchin passed something quickly. chairman powell, the risk of overdoing it is less than the risk of under doing it. was anyone listening yesterday? we saw that bipartisan bill that some were pushing from the house and senate in "the washington post," and i saw very little from leadership on either side gravitating towards that bipartisan offer. kevin: i was struck by secretary mnuchin's comment yesterday, in which he said that small businesses need grants and not loans. that is the crux of the republican argument right now as they try to move forward in terms of the negotiations not just in the lame-duck, but around the corner with a biden adminstration. both speaker pelosi as well as

leader mcconnell dusting up their policy playbooks, and talking with their caucuses about additional plans to get through stimulus in the lame-duck, but neither side making overtures for the middle. , -- who justonest won a six-year reelection battle. as someone like a president-elect biden and a likely secretary-treasurer yellen are going to have to to kick off a her deal in february of next year. lisa: as i was reading about the ,ifferent deals being proposed i was struck by the idea that mitch mcconnell put up summing very similar to what he had previously read it seems like nancy pelosi did some thing similar while conceding on a few points. the main sticking point still, funding to states and local governments. i am wondering, is the idea that

mitch mcconnell is putting out past the skinny bill now, why is that so difficult for democrats to swallow? kevin: because they want cash, and they want it fast for states, cities -- lisa: i don't mean to interrupt you, but in terms of getting money out now versus not getting any money out whatsoever for the foreseeable future. it is not necessarily they want more. great. but if they are going to get nothing, isn't it better to have something? kevin: centrist democrats, to your point precisely, or having those rank-and-file conversations and there is a frustration. i am ticking of it democrat from new jersey who i've spoken with frequently over the last couple of weeks. what he has had to say is why not get to some type of aid for this? to be frank with you, speaker pelosi has viewed this and her team have viewed this as a

matter of political leverage, that they feel they would be able to put pressure on leader mcconnell to get through some type of additional funds. but at the end of the day, people are, as we all know, the data would indicate that there is significant pressure on them to get to some type of deal. great to catch up, as always. really intriguing line coming from leader mcconnell in the last 24 hours. take a listen to this one. after the first of the year, there is likely to be discussion about some additional package of some size next year, depending on what the new administration wants to pursue. there are two pieces of information and that quote right there. it is recognition from leader that they will be following it up again is another request in the months to come. tom: he made very clear he can

come per mice with senator mcconnell. i think it is setting up a different tone. in december, it will be hugely distracting as a presumed government shutdown is december 11 into the summer 12th. jonathan: yes, you've got to get through december out to january 20, but for the pandemic, you got to get through potentially the spring. prime minister boris johnson has mentioned that the tearing we have for the united kingdom, a set of restrictions is going to be with us potentially into spring, even with a vaccination rollout at the start of next week. that is the new timeline. i agree with that strongly. to me, it is not only that we don't know the timeline, but every study, every expert, there is a sense of confusion out there. we are confused more now than we were maybe 60 days ago. jonathan: alongside tom keene and lisa abramowicz, i'm jonathan ferro. counting you down to the opening

bell, about two hours away, with equity futures just pulling back from record highs. for our audience worldwide, heard on bloomberg radio, seen , this iserg tv "bloomberg surveillance." ♪ are you frustrated with your weight and health?

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♪ from new york and london, this is "bloomberg ."rveillance live on bloomberg tv and radio, tom keene is back. i will keep it brief. record highs on the s&p, record high on the nasdaq. paul batrice a little bit. that is the story of the equity market this morning. in the bond market, this was the story yesterday. hirties, those curves higher. the biggest moves going back to when we get that pfizer efficacy news. that was what we got on yields yesterday. to 1.65%.-year out we pull back about a basis point. weree bond market, we trying to work this out yesterday. was this about the stimulus

talks? was this about the data? the ism was solid. or was this about positioning? have we cleared out the short positions, and? we start fresh again? i couldn't get a clear -- and we start fresh again? i couldn't get the answer. tom: i couldn't get the answer. it goes out. yield.oes up to the real you take that nominal yield going out to 1%, and i'm sorry, but it is an elegant chart which looks for a persistently low real yield as well. we will get into that today. jon may leave the show early to get into production on "the real yield." look for that worldwide on friday afternoons. gregory peters with us now, and this, with pgim. did we get an inflation breakout yesterday? gregory: i think the answer to the question you guys were just positing is a combination of all of the above. you had the situation where you

had month-end positioning clearing out. the vaccine,around news around stimulus. that really created a catalyst for rates to move higher yesterday. so the real question is how much higher will it move. how much longer do we have for this move higher? to me, i think we are already at the top end of the range. i am not in this camp where icing we are having this massive breakout in growth, massive breakout in inflation. sure, we are coming off of the bottom. a lot of good news on the horizon. stimulus is great. economy is rebounding. but i don't see scope for yields , particularly real yields, to move higher in any meaningful way. tom: let's bring up a chart now. a fixed income chart that looks the most like the equity market. this chart is really noisy, really complex.

off of march, it is real simple. inflation expectations up and ready to breakout. , what is the breakout to? is it a nudge up in inflation, or is it some new regime that harkens back to 2006? gregory: when we look at inflation breakevens, we don't think there's enough priced into the market. arehink breakeven whiteners the preferred trade, one of our favorite ones. we see scope for breakevens to move higher here passed 1.5% to 2%. in essence, the market isn't actually pricing in enough future expectation in our minds. even though we believe it is constrained, the market isn't necessarily pricing it appropriately in our minds. we see a real opportunity in that part of the market. lisa: i am struggling to find

the connection here. you think that treasury yields can't rise that much, that negative real yields are here and we could see further negative yields, and using we are under pressing the risk of inflation. if the missing element here the ?ederal reserve gregory: that is a big part of it. at the end of the day, the fed is not moving off zero. you have bond buying continuing. there's talk about refitting that, may be taking more duration dollars out of the market. to me, the markets actually hinge around real rates and low nominal rates. i think the fed understands that. i think most market participants understand that. have, the world needs to lower rates to continue. the marketast month, went crazy.

euphoria, some people called it. equity markets to the moon. small caps absolutely flying. i think we tightened by about 200 basis points. junk doing really well. what were you guys doing over the last month? what are you setting up for? gregory: we see a lot of good news already in the price. we are still quite bullish on pgim fixed income. but at the same time, there's been lots of good news built into the price, particularly in the ccc part of the market. these covid option type of sectors, cruise lines, hospitality and the like, there's been really big moves there. the market has actually pre-baked the rebound. -- the balancece in risk has shifted, and i think it is much more against you then with you in the a lot of those sectors. i think they will continue to do ok, but the play for this high beta rebound in ccc is a very dangerous place at this point.

bond prices and a lot of those ccc names have moved from $50 price to par. since you get paid back at par, there's not a lot of upside left there. if you just look at where spreads are in ccc's, they are actually tighter today than they were pre-pandemic. bottom line, we see value in the market, but it is not necessarily the risk yet part -- the riskiest part. i see a lot more value in the double we -- in the bb and bbb part of the market. jonathan: that basically straddles the line between investment grade and high yield. why is that a sweet spot for you? gregory: because the market is very dislocated and segmented. you have investment grade investors and high-yield investors. oftentimes they don't meet. for the crossover investors, there is a real opportunity to go down to the bb if you are

investment grade, and vice versa up to bbb's. so to me, there is this inherent dislocation, and it is more pronounced now because investors are really looking for the high beta covid recovery. what is being left behind, particularly risk-adjusted, are those higher-quality credits in high yield. if you recall a year and a, all of the concern was around the bbb part of the market, and that becausestill exists they worry about that downgrade risk in the high-yield. i don't know if you have been listening to the show over the past few weeks, but jon has gotten increasingly bored with all of the outlooks that look similar, and i think he is not alone. a lot of people are seeing that if they can't go full bear, they ull, they haveb

to pick the right spots at the right time. you are looking at 3.5% average yield. is the nut of the story at this point lower expectations for returns, just look for that solid 2% or 3% yield and call it a day? gregory: i think so. we started this program talking about real yields, and real yields are decidedly negative. why would you expect returns to be really heightened in that environment? the real yield environment is telling you that return expectations should be lower. i think the danger for many investors is that they are really pushing the throttle because they want more. so they will go out the risk curve somewhat haphazardly, and isaac that is where errors occur and that is where losses creep up into the portfolio. tom: i am in a barbell strategy. i got my triple leveraged cash fund that has been spectacular this year. it is really the garbage of the

garbage. it goes back to the idea of all of us being yield hogs. do you see out in your world that really, like 2006 into 2007, everyone is looking for 0.1%? gregory: we are not there yet, but that is the path we are on. the world is desperate for yield. the world is desperate for income. as the demographics shift, as we are more aged and we are retiring, that yield stream is important. the problem is there is not enough of it. .ou have seen it in europe it has been happening in japan for a while. there will be this desperation for yield and income, so i think what you will see over the course of the next couple of years, we are far away from that now, but what you will see is investors having very little choice but to go out the curve

and get the yields that they desperately need. jonathan: you know i've got a true medicine out of respect for you and the team. let's get a conviction call for 2021. what is it now for you and the team? gregory: i am bullish. i think we would have to look through the near term noise, all of the focus on the vaccine, but situationu have a where you have incredibly accommodative central banks globally. you have fiscal stimulus on the comp. maybe a little less noise coming out of the administration. as a result of that, i really think that 2021 could be a really good year. we will be overextended, absolutely. 2021 think the markets in will remain quite robust, and the backdrop where rates remain contained and low. jonathan: greg peters,

great to catch up with you, sir. bullish going into 2021. we keep hearing a similar story. different flavor on 2021. i am displeased got some variety on this program. lisa abramowicz, the solo bear. [laughter] bringing you the alternative perspective on markets. lisa: you are providing the alternative perspective. we had purple socks earlier in the week, and then we saw the navy socks today with the tapered pants. you're going to have to up your sock game. i'm watching. jonathan: i am just keeping it. . a bit more conservative lisa: because you got called out -- i am keeping it a bit more conservative. lisa: because you got called out. the wild. jonathan: just to keep tom entertained. you know what i love about the question you asked greg peters? he took you seriously until you garbage, and then you said four-ple d.

[laughter] tom: i am paying a guy 200 a year to come up with a barbell fund, and the idea is triple leveraged cast against some garbage four-ple d. lisa and jon are going at it with greg peters. but i will be blunt, i learned a lot there about how you frame optimism for next year. great to catchn: up with the team. alongside tom keene and lisa abramowicz, i'm jonathan ferro. up next, a serious conversation on new york city. kathy hochul dropped by, new york lieutenant governor. this is bloomberg. ritika: with the first word news, i'm ritika gupta. for the first time, i coronavirus vaccine will be available in a western country. regulators and the u.k. have approved the shot made by pfizer and biontech. the government says 800,000 doses of the vaccine are ready for delivery from belgium, and

50 hospitals are preparing to administer them. in the u.s., an fda panel will meet next week to discuss the vaccines. president trump reportedly has discussed whether to grant preemptive pardons to his children, his son-in-law, and to personal lawyer rudolph giuliani. according to up with the new york times," the president has turned people -- according to open but the new york times -- according to "the new york times," the president is concerned that the biden adminstration might target them. waller's nomination to the reserve board is likely to lead to his common variation -- to his government's this week. senate majority leader mitch mcconnell hasn't indicated he will try to revive president trump's other nominee, judy shelton. her nomination was blocked two weeks ago. 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.

i'm ritika gupta. this is bloomberg. ♪

chair powell: recent news on the vaccine front is very positive for the medium-term. significant challenges and

uncertainty remain, including the timing, distribution, and efficacy across different groups. it remains difficult to assess the timing and scope of the economic and scope of the economic impatient of these developments with any degree of confidence. jonathan: federal reserve chairman jerome powell appearing before the senate banking committee, going before the house today. worried about complacency. i know that as they worry many policy makers share right now with the improving vaccine news over the last month, through to the end of 2020. from london and new york this morning, good morning. alongside tom keene and lisa abramowicz, i'm jonathan ferro. shape of the market right now as follows. we fall back from all-time highs. we are down 14 on the s&p 500. -0.4%. near session lows. no drama elsewhere in the bond market after yesterday's selloff. yields come in about a basis point to 0.9 160%. in foreign exchange, a new high for the year, the euro-dollar. earlier in the session approaching $1.21. $1.2043.down to

euro strength coming through some key levels for this year. tom: you wonder when the screaming starts. you were out front of this when governments started saying, wait, too strong a euro. we will have to see how that story unfolds. right now in the immediacy where gary -- immediacy we are getting from hospital professionals, including at not sinai in new york, we welcome all of you on radio and television to people in the trenches. that would be lieutenant about her -- the lieutenant governor of the empire state, kathy hochul. if you read the buffalo news, it is right in your face. what is the best practice now for politicians to contain the great hospitalization we are seeing? lt. gov. hochul: we have a strategy, and thank you for having me back on once again. have a 9.4%we now

infection rate, up from just 2.5%, 3% over a month ago. so i wanted to point out these numbers can spiral out of control very quickly. what that does, it is an infection rate that leads to an increased number love hospitalizations. that is our greatest fear. we have said this from the beginning, our fear is overwhelming the hospital system. what we are doing is, first of all, calling back retired nurses and doctors, acting them -- doctors, asking them to enlist, but also asking everything go hospital to ensure that they have 50% surge capacity. we had to do this in the spring. we know how it is done. we can do this once again. thirdly, we also went to make sure they have enough protective equipment. member how frightening it was in march and april when we were scouring the planet in search of something as simple as a mask, and you couldn't get them from anywhere? we are making sure they have those supplies. something we can't control which is very frightening, the staffing.

individuals who have been in this battle and on the front lines of this horrific war for months, they are exhausted. toy of them don't want expose family members any longer. that is where we are having a real crisis point. early on, we were able to invest 30,000 people from across the country who volunteered their time to come to the epicenter of the pandemic. those people are now needed in their homes in north dakota, south dakota, oklahoma, places where it is surging as well. beds, we create enough can put up field hospitals if we have to come up we have to make sure they are properly staffed. lisa: that is the incredible stress on the health care system we are seeing across the nation, and increasingly again in new york. from a financial perspective, there's a question of how much money is needed how soon. you have come on the show quite a bit and talked about the need for new york state. mitch mcconnell currently putting out a skinny build to get done before the end of the year that would not include

funding for your government in new york state or other local governments. my question is how imminently do you need that money? -- if you do not get a before the end of the year, but gets cut first? lt. gov. hochul: we need the money yesterday. i still do not understand for the life of me how senate republicans can be so stingy. this is a once in a 100 year event in a global pandemic, and i don't even know how they think we are going to get the vaccinations out if they don't give us money. 's head of the national governors association, a bipartisan group. the sent a letter saying to federal government, we need money to be able to distribute. you're not going to do it nationwide? ok. you didn't help us with the testing. you left us on our own throughout this entire pandemic. you have to give us money to make up for the loss in revenues and extort nary expenses.

i am not going to say what has to be cut. all i know is it is not acceptable, and everyone should be rallying to convince the republicans and mitch mcconnell my do this for this country. if we don't get this crisis under control, our economy is going to implode. conversely, if we can wrap their arms around this, get enough money to the states to have mass vaccination as soon as humanly possible, we can supercharge our economy once again. that is what everyone wants. jonathan: a couple of things to unpack here. one, are you saying that without state aid from the federal level , you can't distribute this vaccine? lt. gov. hochul: no, i didn't say that. i am just saying that we desperately need money to have a robust, aggressive plan. we will do it. we will figure it out. we were left on our own throughout this entire pandemic. we should have had a national response to this crisis, but we didn't. burial -- fairly or -- failure

of the federal government, of the trumpet ministry should. we can handle this, but it is going to be very expensive to get this vaccination out to 20 million people not once, but twice. that is the challenge we are facing. the reality is we want to keep paying for health care workers, and we need money from federal government. we need their help. jonathan: i understand you are urging leader mcconnell to come to the table. have you urged speaker pelosi to isthe same thing, who perhaps aiming a bit too high going into the election? lt. gov. hochul: i don't know what is too high during a global pandemic. these are extraordinary costs. we are not asking them to help balance our annual budget. we have had to incur costs that no one ever could have foreseen, and now it is not just the blue states. mitch mcconnell said, why would we bailout the blue states? phenomenon,national and we need them to assist every

state because this is going to hold back our economy. one of the problems we have is that small businesses in theicular, and i toured southern tier of new york for small businesses, they are playing to life. the programs that help them before, the unplanned program that assisted businesses as well , that is all going to expire within weeks. when that money is gone, who do you think is going to be doing the purchasing we need to keep arconic going? it is going to all -- to keep our economy going? it is all going to dry up. jonathan: thanks for your time this morning. tom keene, some of the difficulties at the state level, they have been putting it off. the worry is the state level austerity really starts to kick in. when? tom: when the layoffs happen. ,e haven't seen, at the mta 9000 bodies out the door. we haven't seen that yet.

i've got to admit, i don't see washington moving until they actually see the headlines of thousands unemployed. jonathan: coming up on the kostin ofdavid goldman sachs. this is bloomberg. ♪ ♪ it's moving day. and while her friends

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it inflates in 30 seconds. aerotrainer 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. >> the resurgence of the disease is certainly not good for the economy. >> with the vaccines insight, there is much hope. >> entrepreneurial america will come back. >> there is pent-up demand for getting out of the house. >> there is an enormous amount of stimulus that has yet to be spent. >> it is time to get in big and spend big. >> even though 2021 is supposed to be a good year, you may start off in a deep hole. >> this is "bloomberg surveillance" with tom keene, jonathan ferro, and lisa abramowicz. everyone.morning, .e welcome all of you it is a sim