>> we are in a very serious reach for yield environment. >> the tea leaves have never been harder to read. canhey are as far as they be stretched, almost. >> i'm worried markets are getting ahead of the policy. >> monetary policy is there to support fiscal policy. 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 surveillance" with tom keene, jonathan ferro, and lisa abramowicz. jonathan: from new york and england, 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. with equity futures down 23 on the s&p 500, in the united we start an immunization program what the world has never seen before. tom: just extraordinary. i assume the ferro family is locked up, ready to get the jab

in the arm. what a set of goosebumps when you realize a gentlelady going on 91 years old lines up as the first brave soul, and then william sykes. -- william shakespeare is the second brave soul. it is absolutely poetic. [laughter] jonathan: reportedly, the second individual to take the second vaccine in the united kingdom was one william shakespeare, 81 years old. sometimes you can't make it up. be confusedmight this morning as to whether you are joking or not. tom: how did the united kingdom get out front on this historic moment? jonathan: an independent regulator did this and what is called a rolling review, where the data comes from the pharmaceutical company at any given time, and they keep reviewing the data so they can do it quickly. we are waiting for fda approval. i think we will hear something later this morning.

maybe we might hear whether they approve it or not this coming thursday. so still some work to do in europe, some work to do in the united states as well, but today it is a momentous day. it is the first step forward to getting something done in a bigger way and pulling back from a really strange time over the last 12 months which have been brutal for so many people. tom: greg valliere publishing moments ago, and you talk about getting something done. it is not getting done in washington. he points out there are so many competing interests for this sinklus bill that it may because of its own weight. jonathan: the mood music is better in washington, but the lyrics haven't changed. it is the same song, the same story. jonathan: this is because you were -- tom: this is because you were listening to dylan all night and all of that. jonathan: something like that, tom. lisa, we transition from this.

tom is back, and case you didn't know. there we go. lisa, what's coming up? get it back on the rails. lisa: let's talk about the sort of dichotomy between the future hope you're talking about in today's scenario. i am very curious to hear what david solomon and jamie dimon, both speaking at the goldman sachs financial services conference. interesting to see the on the ground high-frequency input they are getting from consumer lending platforms for businesses, paired with the optimism we keep hearing about for a time when we do have a vaccine that can be rolled out not just in the u.k.. 2:00 p.m., we get a briefing from senate majority leader mitch mcconnell. very interested to hear what the lyrics are of the mood music we have seemed to have changed, just to butcher the whole analogy you guys were coming up with. he holds the key at this point to whether we get a bipartisan deal, and the main sticking

point now apparently is liability for covert related injuries, etc. for businesses. api:30 p.m., china releases and cpi data. china has come out with relatively better-than-expected data, so it will be interesting to see whether we continue to support copper prices along with this feeling of momentum in the global trade economy. jonathan: you say that is the sticking point now on the talks down in d.c.. that has been the sticking point for the last five months down in washington, d.c.. liability protections, state aid. redlines. know, we are remarkably sheltered. bloomberg has done a great job of keeping the three of us and a lot of other people here healthy. i was on west 55th street in midtown manhattan yesterday, and i was thunderstruck by the deterioration in the many stores and hotels which are completely shut up. the stimulus can't come fast

enough across this nation. jonathan: unlike you to be south of the 60's on your day off. tom: it's true. usually to go below 63rd is a state occasion. yesterday, you know, it was shouting at the gucci store. what do you want? jonathan: that is kind of what i'm alluding to. i was wondering where you were. sam fazeli joins us now, bloomberg intelligence senior pharmaceuticals analyst and director of research here in europe. let's start with what we are expecting from the fda today and through to thursday. sam: good morning. today is the day that, any minute, very soon we should get the briefing documents. basically, the big 100 page, sometimes more, documents the fda puts together which has all of the arguments from the companies and all of the analysis the fda has done into the public domain, and that is

what the panel that is being convened on thursday will be voting on. so there's been a lot of data and hear, more than we have ever seen for any of these vaccines so far. lisa: since today is the day the u.k. starts inoculating people for the first time, what are you looking out in terms of the rollout to get a sense of how effective it will be in places like the united states? sam: we've had margaret and william over here in the u.k. getting vaccinated, and of course, there will be hundreds and thousands of people in the same age group that will be targeted over the next few days. the problem we all have is that there aren't that many vaccine doses available to start with, so the focus will have to be on this group, and that is actually good because these vaccines have a tough logistical aspect to them in terms of temperatures, so it is easier to deliver them in hospitals or care homes.

of any the manufacture given vaccine, what is the constraint? is it square footage? is it people? is it cleanliness? what is the constraint of getting from 50 million out to 70 million doses? singlefortunately, every one of those elements is important in this chain. you can have all the raw materials you want, and the best facility you want. if half the dose, as you thought possible in the u.k. trial and accident -- in astrazeneca, and up in a vial by accident, or you have problems in terms of the stability, it just takes the whole batch out. that is the problem here. everything is important area it is not just one thing. from me: just quickly before we let you go, when we hear from the fda potentially later today, where the questions

you still have that haven't been answered yet? sam: i want to see the detailed data by some groups of people. age, perhaps comorbidities. i would look to see some of the immunologic data they have, antibody levels and all that. and at the end of it, the detailed safety data. let's compare them. somehan: let's hope we get good news and you can come back tomorrow morning. sam fazeli of bloomberg intelligence, thank you. joining us on this story, peter oppenheimer of goldman sachs, the chief global equity strategist. the u.k. beginning a huge vaccination program that is going to grip this country, and the world i hope, and the coming months. buy the ftse. why? peter: very exciting news about , but separately, i

think the u.k. economy has been one of the worst hit from this pandemic come up partially because of the makeup of the economy very deal -- very geared towards services. it will be the worst annual the 1700s.nce but we are asked putting a strong rebound in the economy next year, over 7%, and 6% or so in 2022. alongside that, which get quite a strong rebound in earnings. it is a very cheap market. it trades now at a discount to the u.s. market on a 24 month forward basis of about 35%. with a strong cyclical recovery and a market heavily geared towards commodities and other cyclicals, and we are bullish commodities, we think it should rebound. tom: i noted today off the wei

screen the difference between s&p and the ftse. you and i know that phrase. where are the straw hats in asia? where is the ftse equivalent on the pacific rim? bullishe've been very for china for a long time. we are still overweight in china, but that is more of a growth oriented index, being very heavily geared towards tech at the u.s., so other parts of north asia, korea in particular, very cyclical, would benefit from a global economic got very. -- global economic recovery. and japan, too, for that matter. as you go into this inflection point of strong growth in the first time for many years, we should see the leadership shifting. lisa: this is the macro story. i'm wondering, the composition of u.s. equity indexes, have

they made them less full of potential for gains based on the domination? of the main companies -- two domination of the main companies -- the domination of the main companies? for example, tesla shares fall premarket, and so does the s&p because it is now included in it. s&pr: in some senses, the has been led by fast-growing, large companies in technology, which has been the dominant leading sector for so long. a becomes a little bit of handicap. we are not negative on technology, but it does not have the same leverage to a positive inflection point in the global economy we are expecting to see. so those value parts of the market that have been very depressed with higher dividend yields, those areas which are much more geared into economic growth will tend to recover more

quickly, and they tend to have a bigger waiting in other markets. if you look at europe which has just had its best month ever, we saw europe in november outperforming the u.s. by about the best relative performance since 2009, when we were last coming out of a very deep recession. getting a similar sort of pattern playing through. jonathan:jonathan: arguably arguably -- jonathan: with the data coming in the other direction, how do you expect that relationship between data and the market to evolve? peter: when we look at the way equity cycles evolve, the first phase of a new cycle we call the hope phase, is really all about expectations. when profits are still falling, but for some reason, investors start to get a little more optimistic about a recovery,

usually because of policy support. in this case, there has been a combination of policy support, and the very positive news on vaccines. but what we have seen since march is a big expansion of valuations across all markets. once we actually start to get the economic recovery coming through, better pmi data, stronger profits, i would expect the improvement in equities to slow a lot and valuations to start compressing. the bull market is very frontloaded. you've got to be an early is that expectation will shift really drives valuations higher, and then we would expect to see slow returns, particularly when you consider that valuations are quite high, and we are not going to have the tailwind in the cycle of ever lower interest rates, which we saw is a very dominant factor coming out of the financial crisis.

jonathan: we felt that shift last month any major way. peter, thank you. this morning, good morning to you all. we pulled back just a little bit more from all-time highs. keep an eye on the nasdaq. i think it was nine straight days of gains on the nasdaq 100 into the close on monday. tom: i want to go to this shift of the real yield. the nominal yield where it is, and inflation expectations just relentless, up ever so slightly, but nevertheless we are really back to where the real yield threatens to go out to record levels. we are not there yet, but a method of -- but a massive -0.98% on the real yield. just one pump 20%, 90 -- 1.20%, not even five basis points from where we were.

a well behaved bond market people are getting behind. you wonder what would disrupt that. tom: i mean, i'm in the triple leveraged all-cash fund. that's worked out. [laughter] jonathan: i don't know who got 2020 right. what's funny is the people that missed it, which is everyone, they weren't bullish enough. get your head around that. from london and new york this morning, good morning. equities pulling back. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. it will be the biggest in you nice asian campaign in the history of the british national health service. the world is watching. a 90-year-old woman became the first woman in the western world to receive a coronavirus vaccine shot today. people over 80 were first in line for the vaccine from pfizer and biontech. british prime minister boris johnson will travel to brussels to try to rescue the brexit trade deal. johnson will meet with european commission president ursula von

der leyen. there are fears on both sides that negotiations may fail. bothon and von der leyen spoke last night, and agree that a deal is far off. tesla will sell as much as $5 billion of common stock. sales are up on the 670% this year alone. they have been boosted in part by the decision to include tesla in the s&p 500 index starting december 21. ,e was a world war ii fighter the first to break the -- the speed of sound. later, we learned of his efforts in "the right stuff." yeager was 97 years

old. 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. ♪ sen. mcconnell: we just need both sides to do what members of congress do when they are serious about wanting an outcome. ,rop the all or nothing tactics drop the hostagetaking, and make law in the many places where we have common ground. jonathan: senate majority leader mitch mcconnell in the last 24 hours, pushing back a little bit, asking for a compromise. from london and new york this morning, good morning. alongside tom keene, who's back in his seat, alongside lisa

abramowicz, i'm jon ferro. let's get to the price action this morning. we shape up as follows. this tuesday morning, we declined by 21 points on the s&p 500, down about 0.6%. away from an ecb decision, euro-dollar coming back about 0.1%. in the bond market, after a big move friday, yields up. yields lower yesterday. toabout a basis point 0.9311%. tom: we are looking for december ferroe tradition of the method of christmas. we will decorate the tree december 23. right now, kevin cirilli on the stimulus calendar. what is the calendar over the next couple of days you are watching for proposed stimulus? 11 is when they

have to pass a government funding bill to keep the government open, but if you are in washington trying to figure a partialre will be government shutdown, leader mcconnell yesterday on the senate floor said, don't worry. they are going to kick the can down the road for one week because they are looking to get the omnibus and the fiscal stimulus talks. i think in terms of a vote for fiscal stimulus, you are looking at seven to 10 days out. tom: then we get to the jobs report january 1. when do our listeners, our viewers see the benefit of that stimulus? kevin: to be frank with you, they're likely is not going to be the $1200 worth of additional fiscal stimulus checks. yesterday on bloomberg radio, i spoke with senator ben cardin, a democrat from maryland, one of the architects of this bill. what he said is that he is working with republicans less so on the fiscal stimulus checks, but more so on providing grants

to small businesses. he's working with senator marco rubio of florida on that. has do you see how cirilli gone to the ferro school of self-promotion? he's got "sound on" on there. lisa: tom, do you have the sound on, or do you have the mute button? i'm sorry. lisa: i'm just -- kevin: i'm just learning from the three of you. lisa: there is a question about what the sticking point is, and jon was saying how earlier, this has been an ongoing sticking point, the concept of liability with businesses. we are not hearing as much about funding for state and local governments. does that give you hope that we have moved past that particular blocking point, and that we have moved past the change in mood music to an actual substantive change in both sides here? kevin: from a political standpoint, people like senator bernie sanders, congers woman

alexandria ocasio-cortez have already spoken out that they will not be in favor of the plan dinged up the $900 billion fiscal stimulus because from their perspective, it is not progressive enough. from the liability protections perspective, republicans, and particularly to mcconnell, have really been concerned about liability protections that are playing out in state court cases all around the country. look no further than pennsylvania, for example. businesses of all sizes, not just large businesses, but main street companies as well, from the per public and perspective -- from the republican perspective, need the assurance that if they are able to get people back to work, should someone contract covid-19, they won't be on the hook for it. it is a very nuanced debate, and a legal debate that will be of this era, an addition to the coming legal surroundings about vaccination, which is another issue. vaccination certificates are

going to likely be discussed in congress over the next couple of weeks, and you are starting to see that conversation boil over. jonathan: what have we actually made progress on in the last week? kevin: it is massively important to underscore how this now fiscal stimulus could be accomplished within the next seven to 10 days. even leader mcconnell, for him to say don't worry -- i am paraphrasing, but don't worry about a government shutdown because we are going to pass a one-week extension, is a massive signal that this is heading in the right direction. and finally, yesterday larry kudlow spoke at a virtual event here in washington, d.c. and said that the president would the $908 billion plan. i am going to do a grammar check. i don't think likely is an adjective. tom: why are you talking to me? [laughter] jonathan: when i spoke to larry

kudlow on friday, he was still using the same language that we've heard repeatedly about badly manage states. so are we saying that if there is $160 billion in this bill for , theresident administration is not against that? kevin: precisely. biggest political difference between now and two weeks ago is is allowingnt trump leader mcconnell to take the lead on these negotiations, and leader mcconnell is driving this for the republican party at this particular juncture. lisa: do you think leader mcconnell is joining this with the idea that another fiscal stimulus package would be passed next year? or with the idea of saying this could circumvent any additional funding in 2021? kevin: both.

it is really all going to come down to whether or not likely treasury secretary janet yellen and president-elect joe biden, once they are in office, are able to pitch another round of fiscal stimulus funding to centrist republicans because if they are able to bring about the five or so centrist republicans who will be needed in order to get another round of fiscal stimulus through just from an employment perspective, but from a national security perspective pertaining to digital infrastructure in a national security way, they will likely have another opportunity to do so in the first 100 days. jonathan: kevin, great to catch up, as always. it is the difference between aid and stimulus. if states are shutting back down again, d.c. has very little choice to offer aid to help bridge just to the other side of that situation. this stimulus debate is totally

different. can you imagine getting to january, tom? tom: jon, you sound very british. a huge body of america, led by senator mcconnell, don't believe in aid. they believe in growth for business. that has been a theory for well over 50 years. the theory i would use is matthew liz eddie of deutsche approximate 12% unemployment rate for america. that is the catalyst here. there's no other catalyst. jonathan: the point is, and i don't think it is british, the get is the linkage of the moment that when somewhere is shut down, it is about offering aid. this doesn't get you out of the situation. tom: i agree totally. there'sa large party -- a large body of americans that agree. a large part of the senate does not agree on that. they cannot even get checks for people flat on their backs, which we have seen coast-to-coast. jonathan: coming up on this program, michael clover ready,

ubs head of u.s. rates strategy. for our audience worldwide, good morning to you all. this is bloomberg. ♪ the usual gifts are just not going to cut it.

we have to find something else. good luck! what does that mean? we are doomed. [laughter] that's it. i figured it out! we're going to give togetherness. that sounds dumb. we're going to take all those family moments and package them. hmm. [laughing] that works.

jonathan: good morning to you all worldwide. here's the price action of the moment. coming into tuesday, the longest winning streak of the year so far on the nasdaq. nine straight days of gains. some relative outperformance this morning, but still negative about 0.4%. we pull back from all-time highs on the s&p 500, off by 0.6%. a bit of a defensive posture this morning as we fail to see progress being made in the stimulus conversation down in d.c. the progress on the vaccine clear for all to see. really good progress of the u.k. , and we hope worldwide in the coming weeks and months. want to say briefly on treasuries what is been happening on the treasury curve. the steepness on the twos-tens on the back of the payrolls report, the idea being that that is the nudge to get stimulus in

d.c. we failed to really advance beyond that 98 basis point mark to get back for 1%. remember, the two-year really anchored because the fed is going nowhere. the flux ability is at the long end, tens, 30's. as for what happens with that, the forecasts are in. forecast, about 1.20%. the high-end at about 2%, low end at 75 basis points. that is the band here now. that is the division going into next year. tom: what i note the last couple of days is the two-year yield. the fact that the two-year yield has come in, part of that is curve steepening. is the two-year yield really signaling that disinflation, that bet on slowdown become? i think? jonathan: -- on slowdown to come?

i think the two-year yield is pinned down. i think we will start to see more flexibility in the treasury market. tom: look for jon ferro thursday's on "the re-yield -- on "the real yield." jonathan: it's fridays. you know it's fridays. tom: i know that. you go into your meetings to get ready for "the real yield" on thursdays. maria tadeo in brussels. mccraw.cinated by mr. took a look at -- the by mr. macron. i took a look, and it is almost like brexit is a billable -- is invisible in paris. what does he want from the prime minister across the channel? maria: he has a lot on his mind,

and when you read newspapers across europe, brags it is not a big issue because there is so much happening here. you have covid, the vaccine, the also forbudget, and emmanuel macron in particular, he is already in election mode. he wants to be seen as being tough. he wants to be seen as addicting fishermen in france. about his own projections, but he will say it is not just about me. it is about protecting the european union as a trading block. he does believe the eu negotiates from a position of strength, and that this is a real moneymaker. you have to protect it. asa: are they very close to deal, but all sides have to show their constituents that they are making the hardest fight possible? isn't that what is going on here? maria: yes, and it is a very

difficult question to answer because you have the technicalities of a deal that is very difficult. very few people actually understand the technicalities of a deal that is so big. you have the political spin. every side wants to say we got the better deal. but i would say when it comes to a deal, there's no timeline on this. if anyone tells you i know when this deal is going to drop, that person is probably lying. not even michel barnier would tell you he knows when this deal is going to happen. it is not about the technicalities, but the politics. the eu needs to be able to trust the u.k. as a partner going forward. for the prime minister, the deal needs to be about sovereignty. can the two happen at the same time? it is very difficult to square that. jonathan: i just want to make this. . maria tadeo over in brussels, we appreciate you and the hard work you do following the story. cable, $1.3322. it is utterly depressing, the politics. mr. macron has an election in 18

months. tom: thank you. but i think what she said is really important, which is why i went to macron. it is a huge deal in london and the united kingdom, brexit. jon, you've lived it. i don't think it is that they could deal over on the continent of europe. i just don't see it. maybe in the german zeitgeist a little bit. i was stunned at le monde today, like nothing. jonathan: they've got other issues. for the people on the continent who always complained about the nosy neighbor in the united kingdom, they took their eye off the ball. poland, hungary. they are going to have the same issues with different countries for years to come. ever close tois union, good luck to them. tom: you've done more brexit in the last six seconds then you have in the last week. jonathan: that is why i am going to move on straightaway and talk clardyates with michael

oherty, michael cl ubs head of u.s. rates strategy. where are you on things, michael? michael: i think we are going to get a little cheaper. $1.20 is probably where the market is pricing right now, so we think we are going to get a closer to 1.50% by the end of the year. i think we will get some continued good news on the vaccine front. that is going to allow things to be bright enough for the fed to start tapering. we get a little bit of support , sohe back end of the curve we get a selloff, but not a colossal selloff here. the big question with the fed is whether they extend the maturity mix of their purchases. this year when the fed started buying come of the treasury mark

was really broken. the fed had to come in and buy shorter securities to help relieve some of the strain on the treasury market. they are continuing to buy very short maturities, which doesn't make a lot of sense. helps is you are taking an asset with a longer maturity out of the market and replacing it with a reserve, which has an overnight maturity. so it is really a maturity transfer, the way it is working. buying two-year notes instead of 10 year notes, big difference in that maturity transfer. the question is when the fed stops buying this short stuff because the treasury market is not broken anymore and starts focusing on longer maturities. howthan: how much -- lisa: much have longer-term yields been well behaved because fed buying won't tip the tide or make a difference? peter: i think -- michael: i think this is what has been holding us 1%.

that is hard to achieve before we get beyond that meeting. the fed buying is still peanuts compared with the treasury is issuing. we have massive increases in tens and 30's. so what the fed is taking out a still tiny relative to what the treasury is putting in, so we think you will still see that upward pressure on yields next year. tom: good morning. , where peopletime have to game out movement of the 10 year yield. as you know with your legendary experience, everybody always gets it wrong. what is the color of getting it wrong this year? is it undershooting, or gaming out higher interest rates that don't happen? michael: i guess it depends. i think the greater pain in the rates world would be that we

rallied back down and get back to very low yields. inwould see a lot of stress that low yield environment. them, the risk is things are not as good, and we rallied back. jonathan: just want to get to you today on some of the headlines crossing the bloomberg. the fda has posted the briefing documents on the pfizer/biontech vaccine. this is the report available ahead of the december 10 advisory panel. in a couple of days, they take this report, and they could possibly make a recommendation as to whether they will approve this vaccine in the same way the u.k. has done. that report has been posted by the fda. they go on to say that pfizer has given adequate information on vaccine quality, and these headlines are going to trickle through over the next hour or so ahead of that december 10 advisory panel meeting. that is the important date,

thursday. but we might get indication as to where things are heading from the headlines in the next couple of minutes. tom: huge pressure to get this out. that coming out of the 1950's, there is a legendary heritage of the united states being patient in waiting to be sure on safety and efficacy of a therapy, and certainly they sped up that clock here in the last number of days. jonathan: and hopefully we get the news everyone wants to hear this coming thursday. we will go through that with people much smarter than me. they will break down the headlines for you and i will regurgitate that for you as a come in on the bloomberg terminal. final question on vaccinations. the first ones begin in the u.k. today. what does that mean to you from a sentiment position for financial markets? michael: i think it has

certainly been helpful. i think the big question here is the distribution. we have a whole bunch of different vaccines along the way in development. i think everyone is assuming we will get some vaccines at some point. andribution is monumental, the question is how fast can we get these things out. i think that is what people will really be focused on for the next few months, is the speed of progress. jonathan: we all agree. of ubs, thankty you. the fda posting the briefing documents on the pfizer/biontech vaccine forget this will be made available ahead of a december 10 advisory panel, where we might hear whether they approve the use of this vaccine in the united states. we understand from a staff report that pfizer has given adequate information on vaccine quality. tom: forward you go, step-by-step. we've got to get the safety right. but i'm sorry, it doesn't

diminish the courage of the gentle lady from coventry this morning. somebody has got to be first, and there she was doing it, and she was very stoic. she should see the queen. jonathan: i think the queen is going to take her turn coming up shortly, maybe before year end. coming up on this program -- maybe it will "the crown." i'm not a fan. tom: i'm shocked. [applause] [laughter] -- i'm shocked. [laughter] jonathan: coming up on this program, boston mayor marty walsh on what is happening in that city and across the state as well. this is bloomberg. ♪ ritika: with the first word news, i'm ritika gupta. a 90-year-old woman was first in line when the u.k. became the first country in the west to offer coronavirus vaccinations. the national health service calls it its biggest immunization campaign ever. prime minister boris johnson warns mass vaccinations will

take time. the u.s. is averaging about as many deaths from coronavirus as it did during the april peak. fatalities went over 2200 sunday. it is likely that they will increase further due to the legs between infections, deaths, and when deaths are disclosed. for the first time ever, and african american will be nominated to run the pentagon. president-elect biden will name retired army general lloyd defense secretary. the first airline to conduct flights with the 737 max after two fatal crashes. the plane's due to make its return in the u.s. at the end of the month, when american maxines relaunches

service. 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. ♪

dr. fauci: not only new york state, but any state or city

facing problems, without financial mitigation, the middle of january could be a really bad time for us. jonathan: from new york and london this morning, good morning to you all. alongside tom keene and lisa abramowicz, i'm jonathan ferro. radio, bloomberg tv and here's the price action this tuesday morning. we continue to pull back just a little bit from all-time highs. we add to the losses of yesterday on the s&p 500, down 17, off by about 0.5%. in the bond market, ahead of the ecb later this week, 0.9 270%. yields up by not even a basis point. it is the uncomfortable moment we are in right now, the great things we see with the vaccinations as they begin in the united kingdom set against the fact that we haven't seen the worst of it at in many places around the world, including the united states. tom: and again, the three factors are cases, which i am

not a big fan of the mathematics there, but certainly the certitude of death and the reality of a hospitalization. boston is one of the great hospital capitals of this nation. he is the mayor of the city of boston, martin walsh, and we are thrilled he could join us this morning. marty walsh, let me cut to the chase. you need aid from washington. long ago and far away, people republicanseill and like-minded, maybe like senator burke and others, were able to do money from washington to help beleaguered cities. why can we do that now? mayor walsh: it is really unfortunate. mitch mcconnell has made statements that cities should go bankrupt. you can't have that. i was in a conversation last night with mayors from around massachusetts, and the need for federal investment in boston and in the region of the commonwealth of massachusetts is really incredible. you and i talk about businesses

being shut down, hotels not being open. we have the same thing here in the city of boston. we are heading into what looks like a second surge. we are looking at potential further pullback in the city and in the commonwealth and around the country. your show is about business. the businesses in our study -- in our city, our state, and our country will not return from this. they need to stop playing politics. but the american people first come up the american businesses first, but everybody first, and they are not doing that. jonathan: i want you to paint the picture really clearly, what you need from the federal government. not just dollar amount, but what you need from the federal government and what happens if you don't get it in the next few months. mayor walsh: first and foremost, we need direction. the biden/harris administration has put together a covid task force. whated clear direction on

direction we need to go to address the covid crisis. most have been on from -- most have been on their own from the very beginning. in boston right now, we are -- we can't call it necessarily a second surge yet. we are seeing increased numbers in boston. we are not yet seeing increased hospitalizations. we are seeing hospitalizations go up, but not to the point where it was in april, may and june. we are not seeing complete shutdowns where we set our businesses down, where nobody is working anymore, but we are heading towards that again. what the federal government needs to do is come up with a policy of what we need to do moving our country forward. number two, the federal government needs to come up with an economic stimulus package that millions of americans are going to run out of an employment benefits, the small

businesses that are going to have to set their doors permanently unless they come up with a package. the implications of what the coronavirus is going to do, the long-term impact on a city like boston could be detrimental. take any city and plug in the name, and that is the challenge we are all facing across this country. lisa: it is also closer to home. for example, your governor, governor baker not putting on some of the restrictions people are suggesting are necessary to prevent that increase in hospitalizations you talk about. do you feel like you are being thrown under the bus to take preemptive measures that could be accused of being antibusiness in order to stave off the spread because of this political hot potato that perhaps isn't being dealt with in other places? mayor walsh: i'm not operating that way. i want to be as pro-business as possible, but it is very important that we put the health of people first. a lot about what the

next steps need to be, the numbers we are seeing increased in boston. boston hospitals are not at the capacity level that is concerning yet, but that could happen tomorrow. i think the governor will make some recommendations or some pullbacks pretty soon. tom: i want you to speak to the schools nationwide, whether it is the matter school, the oldest elementary school in this nation , or that school that you know so well. i want you to talk about how you and six republican mayors in the midwest are dealing with this virus and these schools. giving a shoutto out to my all modern, newmark school, and the matter school -- and the mather school. we have about 180 students .nside schools

ofput a large number restrictions and schools when we had to open up after being shut down. we will come up with a plan for after christmas to get these numbers down -- after the holidays, i should say, to try to get most of our kids back into school. these are challenging times. we don't have all of the safety ventilation that people would like to have in the building, but it is so important in the city of boston that we get our kids back into school. most of our kids have been out of school since march 16 of earlier this year. , it is going to be .etrimental for themselves jonathan: some promising news from the fda. got to let you go, boston mayor marty walsh.

pfizer's vaccine, 90 4% effective in preventing covid-19. the vaccine highly effective across demographic groups. that is the story we wanted to hear. confirmation of the efficacy and the effective rate across the demographic groups that are going to be very concerning. of course, the demographics we at all focused on are the risk groups that will get the vaccinations first, so this is report that will be used in that advisory meeting in about two days' time. tom: what we have heard from dr. fazeli, 95%om dr. is unusual. will see that word preventing beginning to happen. jonathan: this report setting us up potentially for approval this coming thursday from the fda of pfizer's vaccine.

much more still to come on this. for our audience worldwide, from new york and london this morning , good morning to you all. equity futures pulling back a little bit. this is bloomberg. ♪ every year, we set out to do one thing:

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