francine: china's top chipmaker slides after reports that the united states such a black last full scores of chinese -- black .ist or so of chinese chipmakers. u.s. lawmakers continue to debate over a bipartisan stimulus deal. and boris johnson says brexit talks are in a serious situation . still, officials in brussels are

confident of a breakthrough. good morning, everyone, and welcome to "bloomberg surveillance." i am francine lacqua here in london. now, the markets are focusing on a possible no deal brexit, focused on stimulus in the u.s. we had a few snags with that. working friday of 20/20, as next friday is christmas day. remember, i think the december figures don't actually take into account the latest lockdown in germany. it gives us a good indication of what we see before this head us again. euro-dollar, $1.22. now let's get to the bloomberg first word news. here is leigh-ann gerrans. hi, leigh-ann. leigh-ann: good morning, francine. michel barnier says it is the moment of truth. the negotiator told the

parliament large obstacles remain. this after prime minister boris johnson spoke with ursula von evening, on thursday saying negotiations were in a precarious situation. understands a company was hacked as part of a russian cyber attack. hackers with ties to the russian government are believed to be behind a port elated breach that took advantage of weaknesses in the u.s. supply chain. microsoft confirmed that its systems were also exposed as part of the attack. much as 10%ell as in hong kong today after bloomberg reported the -- oversee the companies and breach of an agreement. european officials have yet to conclude deripaska remains

influence over rusal, one of the country's largest aluminum producers. they refute allegations. global news, 24 hours a day, on air and at bloomberg @quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am leigh-ann gerrans. this is bloomberg. francine? francine: leigh-ann, thank you so much. now, the u.s. is set to add dozens of chinese companies to a trade blacklist, including the country's top chipmaker. president trump has cemented his tough giant -- tough china stance. john, our greater china editor. and 11 otherspany are being hit on a blacklist. john: it won't be much of a surprise, unfortunately. earlier this month ,smic was put on a list by the pentagon as

identified as having being owned by the chinese military, something that smic has denied. it is the latest step in a series of things that president trump has done to sort of escalate tensions with china in the waning days of his administration. francine: john, what is the thinking of china -- in china? does the biden administration perverse things? righti think in beijing now, that stance is, let's wait and see. i think everybody is trying to be restrained and how beijing reacts to the thing that trump is doing before he leaves office and i think there is a bit of optimism that when biden comes in, the situation will change, and there will be a bit more stability in the relationship between the two countries. francine: thank you so much, liu, our greater china editor.

we also have salman ahmed, chief investment strategist at fidelity international. what are the biggest risks to markets in 2021? salman: good morning, francine. the china-u.s. decoupling is a comingy and is slower forward, but the action is clear. from a medium risk, there is one risk we are thinking about a lot, the credibility check to central banks, market central banks, outside easing policy. so we so the ecb commitment to intonue the programs well 2022. we saw something similar from more of which was a bit an outcome-based commitment, but again come a commitment to do a lot of qe going forward.

the question in our minds is as inflation comes back from low levels largely, then how will markets respond to this easing policy? we are not there yet, but it is something to watch in 2021. does it: salman, what take for the markets to correct at these levels, or as long as banks stay put, does it not make much of a difference? salman: central bank policy report is critical and is been one of the reasons we have seen obviously a very strong equity market. that is looking back to the real rates argument, which is that right now, real rates are negative and very depressed. if anything changes that set up, then i think that is where i real potential risk factor -- a real potential risk factor comes through peer right now, it is a lot of liquidity, and that means that real rates are fro negative, which is happening, of

pro negative, which is happening, of course. francine: what is your best play for 2021? salman: in terms of our best play, we are pro-risk right now, focused on europe and selectively in emerging markets. we know there is a consensus building around both teams, but there are buffers to go to those teams, and at the same time, the regions are said to be shown to the reopening team, and the fact that we think that the ecb, for example, has a more stronger fed can alsoso the shape what does the stock market. so we think they can outperform the u.s. markets next year. you look salman, when at some of the biggest names in u.s., china, are we expecting too much from a biden administration?

will gethe risk it underway on trade, and what is the gdp forecast? salman: on u.s.-china trade and the biden administration, i think trump and the biden administration agree on china and the way they are looking at it. of course, the multilateral approach, which president-elect biden has been discussing, is slow-moving, by definition, and that is rare, at least in the they becomethat much worse and difficult, but the actual journey and medium economicthat the two superpowers for countries to divert and decouple, and we have seen some specific examples of that, and the technology sector will be important in that regard, so from a macro perspective, i guess the risk has started to come down, but ,rom a single name perspective we will continue moving forward. francine: great.

salman ahmed from fidelity international stays with us. coming up, brexit negotiations are blocked as officials race against the clock to strike a deal. we will discuss that next, and this is bloomberg. ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i am francine lacqua here in london. now let's get straight to the bloomberg business flash, here's leigh-ann gerrans. hi, leigh-ann. leigh-ann: hi, francine. moderna's covid vaccine has won backing from a panel of experts to advise u.s. regulators. food and drug administration with onespoke abstention, that the vaccine of the benefits of the vaccine do outweigh any risk.

be theng for moderna to second vaccine cleared over in the u.s. now, a group has filed an antitrust lawsuit against google. the third in just two months. the lawsuit accuses the search find of illegally monopolizing internet searches and search advertising. a alleges the company uses series of anticompetitive contracts, hurting consumers and advertisers in the ross s -- process. google says it improve search in ways that many regulators had previously viewed procompetitive. and credit suisse and one of its former managers have been charged by swiss prosecutors over an alleged failure to prevent money laundering by a bulgarian drug ring. the case has been running for 12 years and relates to the sale of real estate in switzerland and bulgaria. it notes withsays "astonishment," and says it will

vigorously defend all of the allegations. and that is your bloomberg business flash. francine? francine: leigh-ann, thank you so much. now, the u.k. has warned that brexit talks are blocked as time to reach a deal runs out. leaders on both sides cast doubt on an agreement, saying begged -- big disagreements agree on fishing rights. it is the moment of truth. we have very little time remaining, just a few hours, to work through these negotiations. to the first of january. now ase: joining us edward evans, who leads our brexit coverage. windows parliament vote on it? -- when does parliament vote on it? edward: that is an open

question. the european parliament says that once a deal by sunday, so we can vote on it, so it can be ratified in time for december 31. and the u.k. parliament, theoretically, could approve a brexit deal in a day. it could take longer. parliament could be recalled at any time between now and the new year to a roof a deal, so you could conceivably see a vote in -- to approve a deal, so you could conceivably see a vote in parliament over the new year. francine: yeah, cancel your plans for how much difference between the two sides? i know state aid, fisheries, they say substantial differences remain, but are we likely to have a deal? edwards: i think you have got to distinguish between the political rhetoric and what is actually going on in the room. now, obviously we have had assessments from both boris and arson von der leyen -- ursula

von der leyen, but both sides want to get these confessions out, and they need to manage expectations at home. brussels, ursula von der leyen is getting a strong deal for the eu on fishing. if you look at the actual points of disagreement, almost all of the deal is there, but it is boiling down to a disagreement on a level playing field, one level, and that is certainly getting closer, but -- and this they are still-- some distance apart on fishing. that is what the deal has come down to. if they can get to a deal on fishing, they can get to a wider trade deal. it is not certain that they will hear, and boris johnson may not be bluffing when he talks about this. francine: ed, really quickly, does it make a difference that the french president has covid? edwards: i'm not clear on that.

the french government's position on that is pretty strong and pretty consistent on it, and france is not alone on seeking a very strong position on fishing. look at ireland. look at the netherlands as well. that said, there is a distinction on the eu side between those coastal states and who mightf the bloc actually want a deal rather more than they care about the fishing industry. francine: great, thank you so much. edward evans there, who has also canceled christmas, from bloomberg. still with us, salman ahmed. there is trading fatigue. is this a very u.k. problem, or is there a wider indication if we get a no deal, what it means for financial stability and for europeans on that side? francine, it is becoming a sterling problem more than a u.k. problem.

i think the bank of england has come down. there is a great chance of coming occasion that in the shape of a no deal, they will provide liquidity. so that is important, to give confidence to the market that they won't have liquidity action because of the shock, if you will. right now, it is coming through alsoing, and there are issues with sterling coming down. more of ancoming important issue right now. difference, the between that and i know deal is not much. in q1, as it comes through, in case of a no deal situation or scenario, that is where it comes through, but i think given the fact that bank of england has been really clear, i think that gives confidence to the marketplace that liquidity will be available, so that has medicated some of those very which wereenarios

problematic a few years ago. lman, what do you do what some of the solvency warnings we have had in various parts of the economy and after that g 30 paper from mario draghi? are you worry about governments of the world propping up companies that really should not be rivals? highn: i think the very debt ratio, the very rapid increase in debt after the endemic in march and april is probably the most important macro legacy of the pandemic and will stay here even after the vaccine is deployed, and i think that flipside of that very high debt ratio is the public sector, rightly, had to support the private sector and the corporate sector, and that is where it comes through, how does government intervention in the wider economy and going forward, because if the support is toward

companies that should not exist, the disruption, and the point is that you have a shock to productivity. that is what is really needed to make this debt sustainable in the long term, and i think it is also the fact that central banks may not be able to exit from their very easy policies because of this very high debt ratio, so this complexity is just starting, and it is probably going to become much more clearer once the vaccine is deployed. there a false hope that actually the vaccine will, you know, give a boost to ddp to quickly? -- gdp too quickly? francine, as you may have noticed, there are issues when it comes to willingness for vaccines could i think we have also seen in education campaigns we are ramping up. the private sector, for example, is taking a really important role in supporting the vaccine

enrollment, so this can change. honest method about vaccines can be deployed and can help the deduction, but we have to watch this list really carefully from q1 onward, but i think best case for us right now is that 2021 is to see the big ramp-up in recovery as the real thing happens. we will be watching of course adoption very closely to make sure that those estimates are still in line or not. what do you don, with bitcoin, if anything? jennifer: -- salman: on bitcoin, one of the observations i can make is there is more interested in bitcoin. there has been now much more buildup of supporting infrastructure, like, for example, to store uranium in bitcoin. whether a debate

should be -- or bitcoin will remain. diversification is effective. there is a need for a broad like asset in your portfolio, given the fact that these larger policies, debt is so high, the point you mentioned about mario draghi's paper, these are experimental policies. , strong no methodical presidents for these policy, policy mentality and policy mixes, so this thing can go wrong, and that is why i think there is a call for diversifying, a true diversify in your portfolio. thank you soman, much, salman ahmed, chief investment strategist and portfolio management at fidelity international. coming up, bitcoin smashes through another record, topping 23,000 per token. we dig into all of the action

later this is bloomberg. ♪ in the program. this is bloomberg. ♪ program. this is bloomberg. ♪ -- we dig into all of the action leader in the program. this is bloomberg. ♪

francine: this is "bloomberg surveillance." i am francine lacqua here in london. the markets focused on brexit. the markets focused on stimulus in the u.s. we will see what happens in the next couple of hours.

the pound sliding on concern about brexit. if you look at the dollar, that is to benefit the pound and other g20 currencies. i am also looking at some of the other things that we should be looking at, almost on a daily basis. one of them is bitcoin. unders in washington are pressure to resolve their differences after a deadlock. if we don't get a stimulus package, it could be hurtful for some of the equities in the u.s. the ips talk,ning going public today. that is coming up next, and this is bloomberg. ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london. the golden falcon -- is going

public today on the nyse, looking to raise $300 million. next guest setting up the company to pursue deals in media and technology sectors. to be joined by macro mas r. congratulations -- by macro as our. where do you find value? where do you see the best opportunities in the next 12 months and two years? youood morning and thank for having me on the program. it is an exciting day for us. -- as you probably know, there are so many highly qualified ones in europe, including in the u.k. there about 20 -- all of them are what they call european champions that would make the list on the stock exchange and

give them access to the larger market. the u.k. and europe are even ways,dvanced and lots of and we believe those companies access to the capital markets, and the most active capital market you know is the u.s. market. some of these already listed there -- ihs market, etc. we see tremendous opportunities, particularly after the pandemic, because those are the companies that have done well and have accelerated during the pandemic. we can offer them an advantage for that. you give men examples -- you have talked about these unicorns in europe and the u.k.. what subgroup will do well in the coming couple of years

because of the trends we have seen may be related to the pandemic. unfortunately i cannot give precise names, but you live in the u.k. so you probably know those names. spotify,e example of already listed on the new york stock exchange. they represent examples of very strong european champions that have a present -- a presence, and the transatlantic team that we have put together. the u.s. market, which will be very adaptive for them. ist of them, the u.s. market obviously the holy grail. they have good market share in europe and the u.k., but the u.s. has much more potential.

organically and through acquisitions. francine: you were one of the first u.s. invest -- u.k. investors to set up. where they excited about it? were there questions? reticence? makram: we had overwhelming support. we were massively oversupplied come and that is why we decided -- the investors were very supportive, and we thank them and we were very appreciative of them. there is athat tremendous opportunity. particularly in europe, there were 237 so far in the u.s. this year, only two focused on euro. the advantage, a great story. they believe in our story, and i think it is really an indication most of them are investors

on both sides of the atlantic. francine: do you worried that there is going to be more european investors going into these kinds of vehicles, and are you worried that the market could be overcrowded very soon? makram: you mean in europe, in europe? sta francine: european investors. makram: i think the europeans acrket, part of the sp market in general. thisi think will happen is , to comehat started follow, and that is a good thing for europe we can only do one,

unfortunately. we are not worried about that deepestwe have the any side of spac on the atlantic. the board as well as our group, does not differentiate what is put together. there is a lot of value. the unicorns and european champion that will be attractive. also expanding further into the u.s. market from the operation. huge.portunity is the european bank, where it is estimated every couple years,

the european spac market, for example -- there are only two for now. you can see the potential. may be two final questions. first of all, when are you expected to do your first acquisition? do you have a target for a timeline for that, and how big do you want that acquisition to be? regulated by the sec, so -- after tuesday of next week we will engage with the business owners, that we know well. we have good relationships with over the last 26 years in europe. and we're very confident that we should be able to bring the market an attractive candidate over there nice -- over the next -- i would rather be more specific, but over the next year. francine: can you give me a

sense of why you decided to go for it in the u.s.? was there something lacking or not good enough in the u.k. or europe? makram: yes, absolutely. we were looking for companies -- unicorn, over a million dollars in valuations. unicorn, for two reasons. construction of spac's the back structure of the u.s. that got developed over the last couple of years, it is much more investor friendly, and -- we wanted to tap into that. more importantly, we strongly believe that it makes more sense than listing them on a small exchange in europe.

there are 200 european companies that chose to list in the u.s. over the last 10 years. again, it is more than an exchange. sophisticated, the broadest following. going to be benchmarked again. so for all these reasons, we think it makes more sense. i will give you a more compelling when even. ino is much more strong terms of value stocks. the old economy has energy and banks etc. the ftse 100, 7% of the euro stoxx 600. 50% of nasdaq and 28% of the s&p . the result of that is that almost all of european indices, including the u.k., have been in negative territory this year. the ftse is down 2%. successfulre a

entrepreneur with a lot of value in your company and you want to list on the stock exchange, where would you go? when it is up -- when it is down 14% or when it is up 50%? i think it is obvious the way they would choose to go. francine: thank you so much for your time. of goldenr, director falcon acquisitions. leigh-ann: the united states is reported to add dozens of chinese companies to a blacklist later today. 80 additional co.'s, including , added to thesmic so-called entities list. nearly all of them -- it comes little more than a month before president-elect joe biden takes over. michel barnier says it is the moment of truth. the ghost --rexit the e.u. chief brexit negotiator

, this after prime minister boris johnson spoke with ursula von der leyen on thursday evening. during a's covid that -- moderna's covid vaccine has won approval from experts. exception -- with one abstention that the benefits outweigh any risk. the moderna shot will be the second vaccine cleared in the u.s. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm 120 countries, leigh-ann gerrans. this is bloomberg. francine? francine: microsoft is said to have been hacked as part of a suspected russian campaign, and at several government agencies. sources say the attack took advantage of the widespread use of software from a company called solarwinds.

let's get the report from bruce einhorn. how serious is this latest development? bruce: it is serious, and the more we learn about it, it seems like it is getting worse. so far we know that there have been three state governments, local governments, u.s. departments, state, treasury, security, theland energy department, and its national nuclear security administration, which is in charge of securing new weapons material as well as microsoft and other companies. it is pretty widespread. are the victims all american? bruce: they are overwhelmingly american, but there are other countries that also have companies that have been breached, so among those are canada, mexico, the u.k., and several others, according to microsoft. francine: how long do we know,

bruce, that this could have and going on? roos: -- bruce: it seems the original hacked dates back to march, so it is possible that the hackers have been foraging through systems for almost nine months be leaving a lot of malware, doing a lot of other things were only at this point we can speculate how much damage they did. francine: bruce, thank you so much. bruce einhorn with an important story. coming up, homeland improvements -- home improvements at people looking to upgrade. a representative from ikea later in the show. this is bloomberg. ♪

francine: this is "bloomberg ." propertye investors are about to find out how hard the covid-19 pandemic is going to affect their bottom line. millions of office workers work from home. we take a closer look at the data. our reporters have scoured transcriptsearnings come and they found that hundreds address the urgency to cut real estate costs. running us is our european real estate team leader. it is a fascinating story. in which sector are countries most likely to be talking about real estate cuts? jack: i think what i expected to

find was lots of retailers, -- restaurant owners, talking about store closures and so forth. we found a huge amount of that. we also found businesses in a really long range talking about it. whether it is finance, media, tech, oil and gas, across the economy. it was really striking. not just stores and restaurants or offices, but even things like data cutbacks, airlines looking to use less warehouse space. just completely globally. jack, is this a temporary pullback, or will these changes actually be permanent? jack: there are a couple of different things going on here. you have the cyclical impact of the shutdowns, of what is obviously a very severe recession around the world. that is causing a lot of focus

on cost-cutting generally and real estate is a big part of that. then you have the more interesting side of it, which is the structural changes. we have all been through this bizarre nine-month experiment companies are really grappling with these questions of, ok, how much of this stays, how much of this goes. it has been a raging debate for several months, but i think what these calls reveal is that cfo's have started to reveal where they can save some money on a permanent basis. a surprising number of these examples are companies looking at permanent cuts, permanent shrinkage, demand of the office space that they need. there is still a long way to go in terms of figuring out details, but the wrong -- the broad message for real estate investors is that it is not great. francine: what does it mean for real it just -- real estate investors overall, and are we likely to see institutions

reducing their allocation? jack: it is important to bear in mind that the vast majority of capital is for pension funds, insurance companies, and it is liability driven investors who income young-term can get from real estate, very secure income. what they pandemic has done, it has raised the question of how secure a lot of that income is. you have buildings that were rented to very well-capitalized businesses on long leases that suddenly were unable or in some cases unwilling to pay their rent. that poses a fundamental question to these institutional investors who rely on real estate. on the flipside, you have incredibly anemic returns and other asset classes, the obvious one -- they are spread between government bond yields.

is ank what you might see real kind of recycling within real estate. you already see that with investors coming out. physical retail and investing into warehouses. i suspect you will start to see more of that in other parts of real estate as well. francine: thank you so much. coming up crypto linked stocks, as bitcoin smashes through another record. we will talk crypto next, and this is bloomberg.

francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london. let's talk crypto. cryptocurrency exposed stocks yesterday, smashing through

another record, topping $23,000. their world's largest digital currency has more than tripled in value this year, and some predict more to come. the bloomberg european strategist. eddie, good to talk to you. when you look at bitcoin, does it actually -- could it rival gold? 2.0? the new gold of eddie: i think it is too early to say that. it is the pretender to the throne. it would like to grow up to be gold, and at the moment it is not a store evaluated has no link to inflation or a reliable inverse correlation to the dollar, which gold usually offers, so i think bitcoin has some way to go before it replaces gold. right now bitcoin is a bet that it will grow up to be --

francine: who is buying it? the big think that is question. two things have happened. apply has been pinched off. earlier this year we saw a hardening and supply that gets written into the bitcoin algorithm, which has helped push prices up. on the back of that we have seen the old guard, the young trader types come in, but we are also seeing the wealthy come in and buy a lot of bitcoin. edeautiful story from robinson earlier this week, who said -- you talked to family offices. that is the classic portfolio, the one that can take on a lot of risk. ae one that is overfunded and long time before the next liability becomes mature. those are the kinds of -- wealthythat investors and institutions. francine: i know we want to talk about volatility, rallies,

crashes, rallies again, but have you seen anything like it? there is so much love for bitcoin and there is also so much hate. it is really polarizing. eddie: the strange thing is that most people, even the people buying into it right now, they don't have a clear case for what the block chain and bitcoin and this technology is going to do down the line. all we clearly can say in the investment community is that there are people out there who are willing to buy it, they are willing to withstand the volatility, and that does make it -- not a secure investment, but it does make it a lasting, potentially lasting investment class. getcine: is it too late to into it now? some investors think it will go to 400,000. the ranges of what bitcoin can do, i have never seen anything like it. eddie: i don't think anyone thinks it is going to go to 400,000 in a straight line. class -- this asset

class, this year, i actually think some of the alternative coins -- ethereum, those sort of things -- they tend to lag bitcoin, but then they tend to be higher beta on the way up and higher beta on the way down. and then there are others. we heard talk about an ipo. companies like amd -- you know me, i'm from a mining background. and the video cards that are used to create it, that is the interesting thing about cryptocurrencies. francine: eddie van der walt there. tom keene joins me next out of new york. ♪

francine: china's top chipmaker slides after a report that the united states is set to blacklist scores of more chinese companies, while u.s. equity index futures dip. another shot. moderna's vaccine wins the backing of fda advisors. u.s. lawmakers continue to debate over a bipartisan stimulus deal. and boris johnson says brexit talks are in a serious situation after phoning ursula von der leyen. still, officials in brussels are confident of a breakthrough. michel barnier says it's the moment of truth. good morning, everyone, and welcome to "bloomberg surveillance." tom and francine from london and new york. i know you're eager for a brexit update. i would say a lot of traders are looking at cable, sterling. if they have a deal, it will have to go through the house of commons, so we could see movement next week or the week after. tom: it is. it is a most unusual 2020, a most unusual holiday season. we are supposed to be sliding intool