>> good morning from bloomberg headquarters. it's day break europe, your top stories this morning. go into a national lockdown which is tough enough variant.n this that means the government is to again instructing you stay at home. plunged back is

into a full lockdown in a bid to cases.oronavirus pandemic fears weigh on european and u.s. features. exchange rk stock scraps plans to delist china as in a u-turn with little explanations. and joe biden and donald trump ahead of al rallies runoff's critical senate election today. anne marie, you're living in the a lity of lockdown, but on broader global market stage. if we take the idiosyncratic the united kingdom going back into lockdown, what governments globally are prepared to take this pretty drastic action. had not omething we assumed despite vaccine morning. good annmarie: we're seeing the markets play out is what is happening in everyday lives in sense that many have thought

that we would be well ahead in terms of vaccine process. not. that's taking slower than expected and of course here in he united kingdom, it's the third national lockdown for england on the heels of what we nicholas yesterday in scotland. basically it means, unless it's go out, ed basis to meaning you can't do your job at home and schools are shut, measures coming from prime minister boris johnson. he does think that the four top priority groups that need to get well, wed, if all goes could get to them by mid-february. anus: 80% of israel will be vaccinated by the middle of april, back on the lockdown, you electronic tickets to go outside your property to go to the grocery store. still illegal not to wear a mask. t is fineable and again, anne marie pretty draconian measures taken months ago. evens,you have the break

i will not steal your newfound thunder, i will leave that to want to survive the next about more talk there, draw do you know of 20% we will p to 4,500 and enter, anne marie, we're going nirvana. good morning, the break evens. annmarie: the second trading day market really unpleased with what went on yesterday in terms of what is oing on with the worries given covid. you do have a little bit higher, are mixed.ndices for futures this morning, up .1 1%. 1/2%.ndex dropping 11

just under $51 a barrel and two of opec ng day plus meetings. they weren't able to come to an agreement yesterday. tense discussions coming up today. i quickly want to show you what s going on in the individual telcos that is happening right hong kong exchange, some people calling it a bizarre u-turn, we see these major of china ants out given that it's winding down and china's not ditch the three biggest telcos, a little it of a pop this morning, manus. jules we'll catch up with short shortly. >> you may only leave home for reasons permitted in law, that is so shop for you tials, to work if

absolutely cannot work from home, to exercise, to seek such as ssistance getting a covid test or to abuse.domestic primary schools, secondary across epg colleges and must move to remote provision from tomorrow. manus: prime minister boris ohnson address to the nation last night, the virus is spreading at a frustrating and way.ing the very latest, anne marie, we us the details of where are on lockdown three. >> yes, manus, you're very right. this is the third lockdown in less than a year. it's another strict stay-at-home down everything including schools and of course, responsed that clip in to the number of new coronavirus cases due to surging number of england and concerns and fears that public hospitals not be able . will

to hold for the next three weeks and that number continues. this is public health policy is done to protect it does have , economic repercussions, retail, the travel industry and is aurants, anything that related to the public under i am mention pressure as i said, the everything is shutdown in less than a year. one thing that i found striking, very telling, the prime minister making a very clear connection between reopening. and if we target 2 million vaccines can get to 30 million people by mid-february, by theuary 15, we could reopen country. it's very much pegged to the vaccine. fastest is vaccine the in europe but still not hitting that 2 million vaccines a week. lot of work to be done. manus, it's not just the united england, angela

will talk about extending the lockdown in germany moving back towards the end of the month. in navirus still very much focus in europe. anus: maria, thank you so much for filling us in. sarah joins us, here we are the gravity of if the the u.k., vaccine versus this main that we are going into right now, your assessment, good morning. , it's a big challenge clearly. rush against time, the has nce, the u.k. variance proven to be much more upset a numbernd of the expectations that we would be emerging from this wave now and looking forward over the coming months vaccinations, to the economy

indeed, a strong rebound in growth later in the year. ow all of that has been delayed, it's being pushed back by a number of months. undoubtedly will amage the economy with looking at prolonged negative and it oes bring into risk the question about public finances as well, a deficit last year of of gdp, this year we may be approaching double digits again depending on how long the lockdown and the physical is needed. so the concern that i have, of that the variance that we're seeing here in the transmissible has been detected in over 30 countries. just for be risks, not the u.k., not just for europe ut also going into extended

lockdown as well with germany set its own restrictions today. ut also in countries more broadly around the world. we heard itst night made its way to new york. plans based onnt oo many ifs from an investment point of view? arah: we have a range of vaccines, we have the one being u.c.d out in the there aren't logistical issues, over are questions production. there are questions over the are atory checks that needing to be done as the vaccine is released. there are questions also around the country's capacity to we inate the population, do

have enough healthcare professionals, being brought in from retirement. system does enable vaccinations. 2 million a week, that's the of rnment's aim by the end this month. that should ensure that by the february we have really most vulnerable roups, that should ease the pressure by march on the system.are stays with us. it's election day again, the runoff in georgia today will who controls the senate. both biden and trump held a final attempt to sway voters. more details next, this is bloomberg.

>> we need you to vote again in your numbers, so make voices heard again and again to georgia, to change america again and this is not an georgia, the whole you.on is looking to you know it. joe rie: president-elect biden speaking at a drive-in rally in atlanta on monday saying the country is looking to help him implement his progressive agenda. oth biden and trump held rallies in the state ahead of today.itical elections biden promised more pandemic relief.

president trump said voting election.ed him of while both raises are very narrowthe democrats hold leads. sarah from the standard charter, i want to know what you're thinking is going into his very critical runoff election. this will decide who controls he senate and definitely will impact how biden-harris administration can get implemented. though, if there is a blue sweep or not, does some your outlook not hange regardlings of who controls congress? the georgia i mean, key, of will be really course and essentially could joe biden toay for implement his policies. too nk we shouldn't get

arried away in what may emerge from the democrats in the senate. still have some conservative senators, emocratic senators who may not follow through with some of the biden policies. aside, if we look at what is going on in the rest of world, then it's sort of covid issue remains the key we have to recognize the americas and europe where the impact has been greatest. in the meantime, we're seeing pretty strong growth in china. a good recovery in we continue in emerging markets assets, we think that is this the action will be

year. manus: i was drawn to the a quickwith reuters, at pace we may try to normalize. consider that a policy attemptow much could an to normize in 2021 be for the fed? sarah: i think there would have to be some really strong signals the fed to take some action. suddenly no rank hikes for another few years. if we're talking about a kiwi, the example from 2013, that would have to be carefully ery, very to cause any upset. really comeszation about in an environment where we working accinations very well, a strong rebounding

grows in the second half of the year. do have that in our forecast, but we don't expect is going to ral q.e. ly water down its program. neal: the 10-year break even got a a lot of excitement on wall street. do you think the fed will let inflation run out or do you at some point, 2%. to get spooked. he is he signal that the 2% target h, prolonged te for the period where we have seen inflation and no target. how far a n is, market is going to believe that back d is going to stand and allow inflation to pick up. going course, we're all

to see a temporary rise in anyways. prices, effect from oil so that is a point in which we on the e some gippers market. without us, s prepared to look through what temporary see as a rise to inflation. were are other features that ask, not necessarily in the state or europe, but in china, example, where there are relating to hrough trade and other logistical factors, just driving factors high. let it run a ght little bit hot. it depends on the unemployment number over that period of time. arah, thank you so much for being with us.

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annmarie: welcome back and good morning. europe. day break i'm annmarie in london. secretary of state mike pompeo regrets the u.s. hasn't made he calls ess in what the hard issues with china. he also said he believes china deliver on its phase one commitments. onyou have been fairly tough china on human rights issues and other things that they have been involved with with respect to and a new security law there. do you have any hope that china

ease up on its constraints on hong kong or do you think a fait accompli. wrong about that, everything we have seen over the indicated that hong kong is going to become communist e than a run city. that's unfortunate. status.a special it broke the promise half baye through. the people of hong kong are threat from this national security law which you that nced where actions they take pose the risk that they'll end up in jail. people were doing simple acts, our first amendment right to they have been put in jail. it's telling, too, a group of to flee hong se kong and they have been tried inside of the mainland in china, that's a bad sign. what happens when

countries begin to jail people who want to leave their country. it's very telling. europe.his history in when people closed their borders, not from keeping people out, but their own people in, that is the fragility of certain that theyd the threat feel from the fact that their people may ultimately decide not the best is place to live. >> you have been tough on the ielts that china has been in the south china sea. do you have any doubt that they only?or military purposes >> david, those islands are islands that have been built of controlling the communist party to influence lanes, not only sea ghout the south china through the indian ocean as well. they are attempting to create, i region as t this being an effort by the general secretary to create a chinese and the united states should never permit that to happen. the trump administration has

very, very diligently with our partners and friends in the region so slow them down. the united states had a tough trade negotiations over several years. has been phase completed. in hind sight, we got out of the we thought we t would get, more access to the or it really doesn't happen yet? i think they will ultimately deliver on the commitments they made. the global economy slowed down tremendously. they have said all along they would. we have seen indications they intend to fly. issues in the trade relationship between the united tates and china have not been resolved issues with intellectual property. the fundamental investment rules for a broad range of industries, and rotection of assets property that is american-owned rocess inside of china, those

things that are central. communist party actually alked from it and that work remains to be done. anus: that was the u.s. secretary of state mike pompeo, peer nder and the host of to peer conversations. the markets, we are just seeing a little bit of new york stock exchange that it will no longer china's three biggest fate, telecommunications companies backtracking on a plan escalate hreatened to tensions between the world's economies. jules, good day to you? a big turnaround, potentially on track for the 2008.t ohio's close since

turn around and wondering in the d be next pentagon as firing line. is the most bizarre series witnessed hat he has in his career. players in hong kong rising 7%.he libraries of over he chinese income was up by 10%. -- is who publishes on the weak leadership by the treasury department. ackson calling the move quite unexpected. reacted, arkets have too.

it has paired some of its gains, state owned banks seem to be buying the green pack, the strongest fix, june whether or notrt there is too much momentum here, toward theor heading yes,year high so just being there is. annmarie: let's show you what there, the ioning chinese stocks set for highest on the second 8 day of trading. angst, was it a reup in washington? indeed, let's check in on your own market. of the day two

discussions, closing the gap saudi arabia and russia overnight. are you there? beside the not prints. this is bloomberg.

annmarie: good morning. from london, i'm annmarie hordern with manus cranny live from dubai. go into a therefore national lockdown tough enough to contain this variant. that means the government is instructing you to stay at home. england in reverse.

the nation in a locked down for the third time. pandemic fears weighing on equity futures. delisting plans change. china mobile surges on the news. georgia on the mind. the control of the u.s. senate comes down to two seats. i want to recap for our viewers if you are just waking up if you are in london or europe what is going on. england is entering its third covid casesckdown as bide surge. toyou may leave home exercise, to seek medical assistance such as getting a to escape domestic

abuse. primary schools, secondary schools and colleges across england must move to remote provision from tomorrow. annmarie: the emergency measures will last until mid-february to of lloyd the health services being overwhelmed. the government is hoping to have almost 14 million people at the highest risk of the disease vaccinated by the end of the lockdown. i think that was the only good news coming from boris johnson's speech yesterday. thefact that potentially top priority groups could be vaccinated by mid february. manus: the other dynamic is this -- the severity of the lockdown that you are living in as of this morning -- can that ramp across the world? has been found in a number of countries. it was that narrative that

unsettled the market. the worst stock trading since 2001. that has irked people and volatility. rollout ishe vaccine not as optimistic as everyone was hoping and is not going as smoothly. did the market get ahead of itself with the idea of the vaccines coming without taking into account how difficult this is from the logistics front? manus: we will hear from the israeli health minister. they hope to cover 80% of the israeli population. we will hear from him in a moment in terms of the challenges. we have put in a recovery this morning in asia, up 0.4%. perhaps the most stretched valuation in 20 years. inflation to the upside.

recovery in china. delistingk from the of telcos. the csi is on track for the highest closed since 2008. and we have more on oil. saudi-russiae discussions. will they come together and agree on how many barrels to put back on the market? i am talking about opec plus and its allies meeting today on how to get past the impasse regarding raising production. talks going into day two including saudi arabia opposing russia's proposal for another output increase. the saudi minister is warning of the risk to the markets. seen ase risk of being

a killjoy in the proceedings, i want to urge caution, the new variant of the disease or the virus is worrying and unpredictable. get ole sloth hansen. the byword seems to because in. the saudis want to because it's while the russians are more gung ho. what is the smart move for day two of the opec plus meeting? ole: hold their horses and wait for spring to arrive and a better sense of how this new variant -- what kind of impact it will have. when they made the original agreement, they were looking to

a 2021 when most expected we would be back to some kind of normality. we clearly are not. int people around europe and other parts of the world are now at home. we have to be cautious. you know that activity in asia is picking up which is the flip side of the coin we are seeing. needhere is absolutely no to rattle the boat. we have rallied 10%. the risk is that we could get part of that back quite rapidly if they send the wrong signal at this time. annmarie: ole, where i sit in london, the advice from his royal highness sound like a advice as we are under our third lock down due to the pandemic. but east of the suez, we have demand surging.

500,000 barrels a day might easily be picked up in the market in asia. what do you see for demand outlook this year? ole: demand outlook will improve. back to theill come 5 million barrels or 6 million barrels that opec expects remains to be seen. we have lost six months in terms of pickup in demand and travel arrangements, that may be generous. opec and iaea have downgraded the output. right now, it is not there. demand is strong though in asia, you are right but there is still plenty of oil on the market to take care of that. there is a lot of signaling going on in the market. the oil market is not a straight line.

and on that basis, a lot of investment going into oil now because of the reflation trade. you mentioned the breakeven. above 2% yesterday. ors who have never seen a barrel of oil and don't care but if the fundamentals do not stack up, you have pain in the short-term and that is what we need to avoid. stay the course. wait until march. manus: we could wax lyrical about the five-year inventory. annmarie hordern could deep dive into that data. let's move to gold. you talk about the liquidity that is the hedge of gold. what is the debate that bitcoin gold'sract from

preeminence? think bitcoin is attracting to a certain extent a different audience. i think there is plenty of room for both to coexist. we have seen the rally in bitcoin. we are currently seeing a daily average rate of around $2000. it means you have to withstand the 6% rate per day which is of a gap or much jump from gold for most people. i think they can coexist though it is probably much more of a guide happening in the underlying economy. there is a lot of focus and momentum on bitcoin. them separately. annmarie: we have the georgia

runoff today. how important is it for those in the commodity world about who givenhese two seats you're talking about the reflation trade? to last we have to go back year. we saw gold take off on the expectations for joe biden being or creating aary more reflationary environment then donald trump would have done. if we get a democratic two candidates, that will continue to add to the fuel to the reflation trade. at the same time, we are seeing some developments in the yield market with real yields moving to the lowest point in the cycle and the breakevens moving

higher. and a dollar that is weakening. those are two of the key components. jump iny, we saw a big the etf holdings. that is important. that was a key guide last year. commodities are generally in hot demand again. at $125nds opening million. it is not just energy, it is the agricultural space. there is a potential upside for commodities this year. manus: can we circle back? we heard from mike pompeo. tensions in the strait of hormuz are rising as the iranians have captured a ship. bob mcnally said there was a red line-- the risk of a red

crossing kinetic strike. is the market cognizant of that risk? are we pricing any of it? should we leave it and not worry? error on the side of caution. a few escalations in the past year. the last one was a year ago when we talk about almost having world war iii. or the tension has been reduced somewhat since then. i think we just need to get through the next two weeks. there are a lot of worries about what donald trump may do in the last few days in the white house. if we get past -- if we get into presidency, there will be more caution on that front. i think we should be aware but from the trading perspective, it

is not something i want to take into account. at the same time, you have to realize that the market is long already. there are not that many shorts left in the market. annmarie: thank you so much for joining us this morning. and good luck with today's opec meeting. coming up in the program, staying in the middle east, saudi arabia reopens its borders with qatar. it could ease a year-long rift in the gulf. this is bloomberg. ♪

wei do have to say that prepared in advance. let's not forget that we are a small country.

it was clear along the way that one any company would have a vaccine with all of the approvals with the fda and me for beingardon so blunt, they will not even look in our direction. hugewill be looking to countries to sell their vaccine. we sat -- we signed an agreement several months ago. be -- ournswer will incredible medical teams and hmos. the moment we told them the vaccine was available, in no time they were ready and out there. what is the biggest logistical challenge in rolling this out? encountered was the thousand doses. arease unable to go to

with small development. small places. we introduced israeli technology with the approval of pfizer. now, we can deliver 50 doses to some distant point. this is part of the answer of why we are going so fast. instead of huge stadiums. elderly people and the population at risk right now, that is much less possible than to cross 300 meters from their home and get vaccinated at their local clinic. manus: that is israel's health minister talking about the country's vaccination program. 80% of the people will be vaccinated by april or may of this year. let us continue a conversation about the gulf region. reaching anuld be

end. saudi arabia says it will reopen its borders with qatar. this comes as president trump repairs to leave office with joe biden vowing to renew diplomacy with iran. coming in from the cold so to speak. the details on the rapprochement. concretenow, the details include the opening of the borders between saudi arabia and qatar. there is a city in saudi arabia where gulf leaders will be meeting today. it is an annual meeting but this one holds a lot of cards. we want to see if the uae, bahrain, and egypt which joined in this boycott along with saudi airspace qatar, ending access and transit. we want to see if those three countries also get on board and

reopened their borders. if they do, that would officially end -- that would officially marked the end of the gulf rift. what brought these countries together after three years? well.was doing without these other countries closing their borders. annmarie: we also saw yesterday an sees a tanker in the gulf of hormuz. how does that impact relations between iran and the united states? iran is going to be the elephant in the room for these discussions. it was -- these boycotting countries accusing qatar of getting too close to iran.

the national gastric -- they share the largest national gas reserves in the world. there were concerns emanating from the attack on saudi aramco's facilities last year. it is thought that perhaps the closer viewpoints have made resolution a little easier. it will make things easier for the u.s. we see this gulf lift resolution. ft golulf rigt resolution. annmarie: thank you. our reporter will be tracking this throughout the week. pressures rally under

with the third national lockdown in england. we discuss what will happen next with england's lagging currency. this is bloomberg. ♪

manus: this is daybreak: europe. annmarie hordern is alongside me in london. this is what we are watching for this week. a big day in the u.s. the runoff election in georgia. georgia on my mind. the results will determine which party controls the senate for the first two years of the biden administration. and angela merkel is meeting chief regional leaders to talk about the pandemic. we get inflation data for europe's biggest economy. we will getursday,

a bigger picture of what is going on. numbersa inflation published. jobless claims and german industrial production including construction will be published. a modest gain expected after a big expansion in our over. the u.k. prime minister boris johnson has announced a third lockdown in england. the pound declined nearly 1% after the announcement. there is a concern about the path of the currency. do renewed lockdowns mean we will not see the brexit deal rally continue? ani: in a word, yes. against other currencies, the pound is still struggling. this has a lot to do with the andinued economic weakness perhaps the recession we are

likely to see with the renewed restrictions. the key is it is not about the restrictions. volatility is elevated because of lingering brexit concerns. that is what we hear from bank'' clients. a deal may have been reached but there is still not a lot in the not yet known. will we have equivalents for financial services? continue to put pressure on sterling and the pound versus other currencies. commerzbank says it is a minority of market participants ao think we are likely to see comeback of u.k. assets. some huge outperformance. on the other hand, the majority of people have a long-term outlook. key.is the the concern is that brexit is just the beginning for a bout of economic concerns to come for

the u.k. economy. manus: good to see you again. let's keep an eye on the crosses. dani burger in london. annmarie hordern, i was going to say -- are you logging on to the press conference live at opec? annmarie: i think it depends on what time it is. yesterday, the meeting was adjourned. sayt goes late, i have to that i probably have to go to so i can make it in time to be with you tomorrow. the prince talked about being a killjoy. that man is never a killjoy. he wants to urge caution. that is the word. tonight --n is -- you will be up early to see the results from georgia. annmarie: we may not get a final

decision. it may take days or weeks but there is 1 -- but this one binary event may add pressure to equity markets this morning. stay with us. this is bloomberg. ♪

>> good morning and welcome to bloomberg markets, the european open. markets say -- watch the case markets. on thearkets are mixed concern of rising infection rates. european