welcomeood morning and to daybreak australia. hays.en: i am kathleen top stories are our this hour. a rally as investors weigh the prospect of fresh stimulus and the rollout of the vaccine. thatterling falls on fears brexit may not reach a deal

ahead of the summit. major differences remain. australia silencing the alarm. the value of agricultural shipments falling to the lowest level in at least five years. president trump says rudy giuliani has tested positive for covid-19. kathleen: let's get a quick look at how u.s. markets ended last week. all major indexes hitting major highs after a softer than forecasted gains after convincing investors that congress will be forced to pass more stimulus. nearly 1%. the fifth record high of the week. rotation,, even with

this rally was broad-based. gainingnt industry is in the s&p 500 and we had the industries-- 81 gaining in the s&p 500 and we had that sense. some people are waiting to see if it will rise above 1%. let's get a look at how things are shaping up for asian markets. areie: this monday, futures pointing towards gains. this as global stocks market cap has topped $100 trillion. we did see it cap a five-week climb. we might see some of that risk sentiment taken off of the table. export recovery has been supported. in australia, we are seeing

futures settling higher. bondsbonds are -- aussie -- china's november trade numbers are due later. the offshore yuan holding below 61 this. -- this morning. we have the ecb meeting very much in focus. under pressure early in the asian session. we do have a testing that 134 level. under -- ofrtainty her brexit talks. the risk now is that optimism may turn to pessimism. getting some just

breaking news when it comes to sequoia's performance. ,e were expecting more concern issuing a dire prophecy as to how this year with play out. for sequoia, it has been pretty profitable. more than 11 times returned. almost 11 times return. just getting that breaking news three months after we have seen the global economy really falling. we have seen a better than expected recovery for some parts of the world and we are seeing the recovery of some of the come in the firm's portfolio, including airbnb and doordash. looking like some

of the best in nearly a century. let's get back to those brexit talk. brussels, calling the next 48 hours crucial. >> we welcome the fact that progress has been achieved in many areas, nevertheless significant differences remain on the critical issues. underline that these issues need to be solved. managing editor is all from london. line from london. each renewed deadline is crucial. is there any breakthrough on fishing right?

ask,are the questions to if you are a betting man, that we could get a deal this week? johnsontially, boris and has a decision to make. space oftively short time, as to whether he is ready to compromise. it will boil down to two controversies. fishing. european boats -- something called the competitive langfield. other countries do not want to eu. britain access to the what they want to do is force them to follow any changes to eu rules in the future. these are two major issues. seen in the last few

hours, negotiation returned to brussels, trying to get a deal. we might get a landing on leaveses, but that still a sticking point. next steps, this internal issues bill coming up, there are so many details, yet they do not -- if do theyething done now have to restart before the end of the year? >> the key date that will not change is december 31. to get a deal implemented in time.or that, they need

thats initially thought they would have to start on that process mid-october. , of all theason deadlines of increasingly real ones. in the next 48 hours, european ministers will start a big summit brussels, and they want to get brexit off the agenda before that start. thank you for joining us from london. let's get over to karina mitchell. the pandemicith virus number is continuing to sayingt president trump his lawyer rudy giuliani has tested positive. all americans who want a vaccine should be able to get one by the middle of next year. rolling out jobs with queen elizabeth and prince

, whilehigh on the list copenhagen is going into partial lot down. australia is sounding the alarm on trade saying ties with china will not hurt exports. agricultural shipments will fall this year and next to the lowest in at least five years. it may still undermine a period of solid, domestic growth. preparing to raise oil production in a sign of the u.s. easing sanctions under the new administration. ready tos they are raise output. iraq is nudging production higher while staying it into the latest strategy from opec and its allies. and a bigger version of the dragon capital to the -- capsule to the nash -- international

space station. it is carrying christmas presents and other supplies. it will mark the first time it has docked with the iss, itself. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am karina mitchell. this is bloomberg. rollout intoccine quick? what questions still need to be answered. we will get a market outlook. this is very. -- this is bloomberg. ♪

haidi: bad news is once again good news. bolstering expectations for more stimulus.

on board with a $900 billion deal. thattor larry kudlow said skepticism remains. >> senator mcconnell is speaking with speaker pelosi. people are glad to see that the other team has come down in its numbers. on the other hand, there are still policy differences that remain. i think mitch mcconnell -- i have known him for some time. he sounds a little more optimistic, but i cannot say one way or another what the outcome will be. think thetandpoint, i senator agrees with this. for many months we have talked about it here. we have argued for targeted assistance in a few, key areas.

businesses andl the other is unemployment assistance. we still have a lot of hardship in the unemployment area. school, covid related spending is good. maybe certain industries have to be helped out. i will add to that in terms of the figures. available50 billion and $135 billion available from unspent ppp funds. i will call that $600 billion, plus or minus. it would be good to use that money which has already been appropriated one -- use it to redeploy and be appropriate it -- re-appropriate it.

the bookkeeping is ok. you are not adding. there is a good way to do that. i will not get into a numbers game. >> you are getting into a numbers game right now. >> i am saying there are key targeted areas that could be redeployed appropriations. >> this has been a story for the last several months. foras been the red line senate republicans. have we moved the dial on that story? i do not know. senator mcconnell has indicated he is not happy that part of the bipartisan group or speaker pelosi. i believe that. he has never been happy with a big bailout.

covid related funding is very popular. that is different than a broad-based, appropriation to states and localities. i am just saying that it has been a difficult hurdle to get through. to have you.py >> i would not be able to say. you will have to ask him. i was with him last evening. of aresident is in favor new assistance package. targeting thate i discussed earlier is absolutely crucial. the president has always opposed a large-scale appropriation for

state and local government that he believes has been mismanaged for many years. kathleen: that was national economic advisor larry kudlow. looking to build on the recent momentum on the record closes as investors weigh the outlook for policy support and signs of a vaccine being close. joining us is kevin nicholson. thank you for joining us. have come on we the sunday news shows, a senator from louisiana president trump will come on board, along with mitch mcconnell with this package. he said the pain of the american people is driving this. days sinceouple of

larry kudlow spoke. do you think momentum is building? is the stock get counting on that to extend the rally further? >> yes, i think momentum is building. a key element in why the stock it has been rallying, the stock market has looking for fiscal stimulus in this lame-duck scituate -- session or once president-elect biden took office. prior to christmas, it would be great because it would help with the rally. kevin, the jobs report on friday was equally overlooked. is that because people assume that the federal reserve -- not this week but the coming week -- will keep this stimulus coming come at the very least, if not increase it? and wegoing to buy bonds

will buy more longer-term bonds like 30 years. >> yes. bad news has become good news again. friday is jobs report was light. the market anticipating that it would force the fed into action, or at the very least get the stimulus bill moving forward. from the fed's point of view, if there is not fiscal is, the fed -- they will have to pull out a rabbit from their bag of tricks. i think the rabbit will be moving along the curve. basically, looking at that 10 year to 20 year curve. that will help to keep interest rates capped, so they do not blow out too far. as you know, the housing market

has been a driving force in keeping money and consumers actually consuming, during this downturn. kevin, have markets to the upside? or do you take a look at the value nations and think a lot of the good news, a lot of news when it comes -- this first batch of stimulus, however, when you look at earnings expectations for next year, we are talking about to operating earnings close $166. that will get you back above where we were at the end of 2019.

a lot of that is propelling the market forward. i also believe that the market will -- thinks that once the economy reopens, there will be a lot of upside. when you think about what has gone on through the pandemic, we have had a good portion of our service economy shut down. given the fact that our gdp grows and 75% of our gdp comes from the consumer -- most of our economy is service oriented. i think that is why you have seen markets rally. haidi: is the recent steepening of trade ahead? at the end of the day, there is still an expectation that the fed the backstop. yields is that rising anticipating that we will get a little bit more growth.

we cannot expect yield curve to be so steep. as of friday, we had $17 trillion worth of negative yielding debt worldwide. a lot of that comes from europe. you will have foreign investors still picking up a significant amount of yield by investing in the 10 year. you will see rates bounce. peaknk 120 will be the that we will see. i do not think that the fed will allow rates to get much higher because as the housing market has provided a bit of a , they do not have jobs right now. haidi: kevin nicholson, always great to have you with us.

the trump administration deadlines to sell asset has gone and still no deal has been made. we will have more on that ahead. this is bloomberg. ♪

haidi: remaining very much in limbo. the trump administration came and went with no deal. stephen engleent has the latest from hong kong. it was interesting going into this drama. there were a lot of people who thought this was politicking before the election. postelection, where do we stand? went.n: it came and the two sides are still talking. ,s long as there are discussion

.hat being an oracle led group as long as they continue to talk deal,overnment about this -- we are also hearing that this deadline, which has been moved multiple times, it will not be extended again because we are up against the ,lock for another deadline january 20. lawsuits as well. unsure whether a biden administration would keep this clock going. we are in limbo right now. they have not the ball too far. kathleen: let's look at another

scorecard. very important to see if it is recovery in china. what are you expecting? >> it looks that way. dipe was a little bit of a after september's big surge. expect it to have risen. fastest pace of export growth since march 2019. imports also be gaining a little bit of momentum. building on september's rise. covidare headwind with and outbreaks increasing in europe and u.s. kathleen: thank you for getting us ready with that report. up next, has the vaccine rollout been too quick?

pharmaceutical ceo tells us what questions still need to be answered. keep it right here with a lot more coming up. this is bloomberg. ♪

karina: you're watching daybreak australia. sterling fell in early asia trading as brexit talks resume amid growing fears that the sides will not reach a deal. major differences remain. officials in london and brussels say that the next 48 hours are crucial. fishing rights remain a key along with the so-called level competitive playing field. virus numbers continue to rise with president trump saying that his lawyer rudy giuliani has tested positive. the administration says that all americans who want the vaccine should be able to get one by

next year. the u.k. is set to start rolling out shots tuesday with queen elizabeth and prince philip high on the list. the bank of japan has become the biggest owner of the nation's stocks with the total value climbing. they pushed the equity portfolio to 434 billion. it's the first time that the boj's holdings have eclipsed those of the government pension funds. the south china morning post the head-- along with of multimedia firm b vision. hong kong opposition lawmakers met last month. global news 24 hours a day on

air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. >> time for the morning call ahead of the asia trading day. treasury steepened after that mixed job report. a lot of people are wondering if this will continue, do they have momentum on their side? commit we may be seeing a break above 1%. weekoptions coming this and provide a lift. at b of a the global head of rate strategy forecasting that the 10-year will end 2020.

haidi: and the ecb rating? >> the upside breakout from that 116 to 120 range says that mid july is surprising given the risk of the euro zone economy. and the challenges to the eu budget. analysts pointing out that his mid-2021 call for 125 is looking too conservative. i want to highlight a note from goldman sachs. seend this period, you outside risk to their 12-month target. the broad dollar weakness has been very much in focus. >> let's move on to the luxury

carmaker who has weathered the pandemic storm keeping cash margins helping. bloomberg asked the ceo about demand returning across europe and when he expects business to return. >> 2022 is a pretty good estimate. we're flexible. should the vaccine come back faster. we'll be able to react for that. we have made adjustments to our cost structure. if the market is not on that level, we can protect healthy margins and healthy profitability. there's a germany, prolonged lockdown in many parts of the western world. does that make you have to rethink your most recent forecast? the situation is

fairly robust. two factors are key compared to what we had in the lockdown in april and may. our dealerships are open. more importantly, the registration office is where you register your car. should they shut down, that would have an effect. we watched this situation very closely, very carefully, to make sure that we keep an equilibrium in this unusual situation. >> i spent some time at the dealership. with restaurants and bars closed, there is not a lot to do. do you find more people coming into your dealerships, or is there more concern about lost revenue about outweighing that? >> one thing that the pandemic has highlighted is something

that we have taken for granted. personal individual mobility, personal freedom. it's like a reminder to you. of going once vacation and spending money on other things that you normally would do, maybe one factor that is helped us to come back people looking at a car. is goinghat spend toward us. else, can't do anything you are always welcome to stop by a mercedes dealer. haidi: let's get a look at the potential covid vaccines now. the fda set to authorize the emergency authorization this week. the u.k. is starting its rollout as well.

has two of their own vaccines in the pipeline. the rollout that we are starting to see begin in the u.k. and the a situation where the benefit outweighs the risks. havequestions do you before we get a widespread rollout across the border population? great achievement for the scientists at pfizer and all of the people who worked to make this happen. this is a far record in terms of rolling out a vaccine. the preliminary data we have seen is very exciting. there remains an important question. the question about durability, how long will the protection last?

will do vaccines protect against dependents?ntilator will they block retransmission? how safe are they? those are important questions. it will take time to sort out the answers. as we go through 2021, more information will be available. haidi: astrazeneca looking to conduct more trials. it looks like the pfizer and moderna options got a head start. rna optionsat the versus the vector vaccine, at superiort, is one more or adaptable to you? >> the mrna vaccines are novel technology. no mrna vaccine has ever been

approved. it is hard to speculate about the features of the immune response. that astrazeneca and johnson & johnson are based on antivirus factors. there is more information that was used in the ebola virus vaccine. we're at a further point along the spectrum of using a live virus vaccine. and those engender the strongest , and the first vaccine was edward jenner's vaccine for smallpox, which he discovered in 1798. our vaccine is very close to what edward jenner was using. its the most successful vaccine

ever. it eradicated smallpox and it resulted in many years or decades of immunity. many people think lifelong immunity. has a vaccine they are pursuing. one of the great things about the effort around the world's many approaches are being tested. we'll next few years, have a lot of information about how to protect humanity. not virus, this disease is going to go away. we're in a pandemic. the expectation is that this will be and amec and -- endemic and something that humans will have to contend with while we are on earth. >> you mentioned your excitement, some money vaccines

are being rolled out, and -- so many vaccines are being rolled out, and there are some questions of safety. transparentuntries enough about their trials and results to trust them? would you advise your friends stick withs to say, you and develop vaccines, forget china, russia, other countries? >> you are correct point out that not every vaccine is safe. the frightening examples were the rsv vaccine trials in the 1960's where vaccinated people and infants died at a higher rate than unvaccinated. vaccines are not necessarily protective. that is something that someone will look very carefully at. the next thing about safety,

different people will have different risks. people doe, older worse with vaccines but needed them the most. college students are at relatively low risk of getting sick, but they're also likely to have the best tolerance. think thei know, i scientific community is similar around the world. i would have confidence in a vaccine developed in another , publishing work in a scientific journal. nobody would cut corners because it would not take very long to find out that the results are not what they were.

kathleen: i know that you believe there should be a commitment from governments to work around the world on the things that may happen next. trump's team had operation warp speed funding. it seems like it has been a factor in this race to get a vaccine as fast as you can. what needs to be done? >> that is an excellent question. it is a chance for the biden administration to show leadership and to make a sustained commitment. the united states and other countries are caught unprepared for this. this will not be the last pandemic. they'll need to expand technologies generally. a fascinating example of focus.

probe -- on on eight programs, poured billions of dollars in and got remarkable results. evenly. not spread bets our company has not received any government support. one of the things that i hope will emerge is that the united states government and others around the world will be making multiple and smaller bets on earlier technologies. we have to look to a day when covid vaccination is a routine .hildhood vaccination for us to get from here to where we are a think of it as a marathon, we have just run the first mile.

going to be quite a marathon because i want to bring up this chart that shows the low level of willingness that we see thus far. only four countries look like they will be able to reach that cover needed for immunity. if we don't get that high level of take-home, where does that leave the world with the virus? >> it's very unfortunate. hopefully information and education will change that. whereis a point governments have the authority to compel vaccinations to attend school or to work in certain kinds of places.

it may come down to that. vaccination is very important not just for the people getting vaccinated but for public health because appropriate vaccines can make people less contagious, and that is one of functions.portant it's like a forest fire analogy of wetting down the forest. haidi: we really appreciate your time with us. coming up next, australia is sounding the alarm when it comes to trade with its agriculture industry under pressure. this is bloomberg. ♪

kathleen: breaking news and president-elect joe biden's latest cabinet pick, he is selecting javier becerra. his nominee for secretary of health and human services. this is a very important job. at -- health is front and center on his radar. that we hadig story

earlier on bloomberg about how joe biden was getting a lot of pressure from african-americans and colleagues in group saying we need more diversity in these important cabinet is in's. according to the new york times, javier becerra will be the next to lead the hhns. seei: a big job ahead as we the u.s. virus situation continuing to worsen. in australia, the government is forecasting about threats to agricultural trade, and it's not just because of the worsening relationship with china. hall, this is a perfect storm of really terrible factors that are -- for the farmers and other agricultural players. paul: this report came from the australian bureau of economic

research. the value of agricultural shipments is going to decline by 7%. that is the lowest in five years. due to a number of factors, china has hit timber exports. there are labor shortages for the holder court -- horticulture industry. that has been driving up domestic fruit and vegetable prices, and the lingering impact of the drought. to state that it isn't all bad. upnese tariffs are pushing in valued prices. of --has been a bunch

there are a few bright spots among that. but on the political front, we were hearing from the foreign affairs opposition spokeswoman over the weekend and in terms of is saying -- china is here to stay and australia will need an overarching strategy to deal with it. next, lifestyle advantages could lure goldman sachs to move to florida amid an exodus from new york. this is bloomberg. ♪

kathleen: goldman sachs is the latest to considered transferring key groups to florida. executives have been scatting offices in the miami mayor -- miami area. they will be joining a string of prominent groups making the journey south. >> absolutely, the weather is warm and the taxes are low. in zero state income tax for workers. office in housing costs is a big hole for these financial jocks. bloomberg has learned that goldman's success in operating remotely has persuaded the leadership team to consider moving more roles out of new

york city to save money. they have announced an ambitious plan to save over $1 billion. they could still decide to keep the team in new york. we are told that it is seriously considering shifting big jobs to florida. team is amanagement key division that brings in $8 billion in annual revenue for goldman. haidi: formal alliance has moved to florida. how does this hurt new york? question as to whether new york will lose its status. ken griffin citadel hedge fund, blackstone, they have all considered beefing up their presence or obtaining offices down there. the ideae flirted with

of moving his bank there in 2013 saying, it is hard to argue against it. big blow for new york which is seeing its most empty available office spaces since right after 9/11. australian the market opening at the top of the hour let's go to sophia with a preview. kamil you are watching this exchange operator following its update on the trading about to take place. some functionality for that new system will be back on the 21st. this after prices of raw materials hit a new record last week. want to point out that macquarrie has raised its targets. topped fortescue which 20 aussie dollars last week.

haidi: let's take a look at the markets trading in this part of the world. major u.s. benchmarks closing on friday. we look at kiwi stocks advancing. sidney futures called to answer stronger as well. we are looking at some exuberance when it comes to the commodities sector with those 160ey minors pushing to there, the highest since 2013. singapore's festival starts today. the officer will be joining us with the vice president later about the role of fintech and

what they are doing amid the pandemic recovery. bloomberg. ♪ it's moving day. and while her friends

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