♪ aboutare quite worried the labor market and many economists are. >> we are in the middle of the worst crisis of our lives. >> equities have managed to maintain a disconnect from the real world. >> we are sitting at a plateau. >> it's important to remember that we have seen a lot of demand disruption. >> there is pent-up demand from consumers and that money will find its way back to the market. this is bloomberg surveillance, with tom keene, jonathan ferro, and lisa abramowicz. good morning, jonathan ferro, lisa abramowicz, and tom keene. this is a historic today not only for bloomberg news but all of america including the international news flow. absolutely extraordinary today. we'll get to georgia in a moment. just to paint the picture of

where the markets are, political news behind it. in hong kong, extraordinary arrests today accounting for many tens of people. we spoke to our hong kong news bureau earlier, it is a new regime of hong kong arrests today. over in england, the lock down with the prime minister literally speaking at this moment on the challenges of the pandemic in the united kingdom. in the united states, and los angeles a dearth of oxygen. the oxygen is gone as well in washington and the markets react. the yields moving up this morning. of1 percent, little bit moderation in the move that we saw two hours ago. russell 2000 moving smartly higher, red and green on the dow with a nasdaq 100 having a challenging moment. lisa abramowicz, it's an extraordinary wednesday. question is how much

of a blue wave has been priced in and how blue the wave is when it gets implemented in policy. when you talk about the nasdaq, how much of the selloff in tech stocks is due to the increase in yields and how much is due to the expectation of increased regulatory pressure. it seems like people are looking at the potential for a democrat senate. tom: what we are going to do is bring up the zeitgeist at the moment, we are going to do what we do on surveillance which is to aggregate all the news. observe stacey abrams, who is clearly the darling of the moment for the democratic already. her registration effort in georgia almost historic by a national perspective. ago "tots out six hours rev. warnock congratulations." and is so bold to tweet out to mr. awsat congratulating him.

we are not there yet are we? lisa: the lead that he has over senator perdue is still very narrow. i am wondering, loeffler has not conceded. we have a big way ahead of us. we need a repeat of the 2020 election in terms of the contest going forward. today is going to be interesting. i want to give you a sense of what we are looking at today. the u.s. congress meeting to count electoral votes and certify the next president. from 1877, ax mahogany box. they put the electoral votes in it and bring it to the congress floor to be counted. we will find out whether mike pence will stand up and say he doesn't have the authority to do anything other than certify the results. employmentadp report, it is known to be fickle and unreliable, but people will use it to get a sense of where the jobs are or aren't. at 9:40 five u.s. pmi services

data. sensel give us a of how much the economy is slowing on the heels of the pandemic. meetingp.m. fomc minutes, i am wondering how much the fed is taking into account the atlanta fed president assertion that the fed could start tapering monthly bond purchases if the economy does well this year. that would come as a surprise to markets. withi like how you do that the january 8 employment a port -- report. the change in nonpar payroll for friday is 73,000. that is a number that is always of angst, certainly with the news flow we are seeing it will be closely watched. a presumption of further stimulus and income replacement by a biden government. we don't have official word on this, a democratic house, i democratic senate, and president-elect biden, a

democratic president. what a shift for markets in the last number of weeks. emily wilkins is looking at the shifts in atlanta and joins us this morning. extraordinary 24 hours in atlanta. tell us the difference, the parsing of cherokee county to the north and gwinnett to the northeast, and the difference of exurbs and suburbs. emily: it used to be a given that the atlanta suburbs were a republican stronghold. then we started to see that feed into change. david purdue one gwinnett county in 2013. we saw them vote for biden, for ossoff, and for warnock. we are seeing the strong diversity in georgia help and the victory to democrats. set to delivers remarks at 8:00 eastern time.

stacey abrams tweeted a congratulation to him. how determined is it? what is the vote count that is giving confidence to ossoff and abrams? isly: currently, ossoff 16,000 votes ahead of perdue. we are waiting for more votes to come in, but it's key to look at where the votes are going to come from. they will be coming from democratic parts of the state. it does seem likely that the ossoff lead is going to increase. will the candidates clear the .5% that is needed for them to avoid a runoff -- a recount? is going tooff speak at 8:00 a.m.. what will you listen for from mr. ossoff if it's well within the recount gap where senator perdue would challenge the election? emily: we are going to start looking for senator ossoff to

come out and start talking. what are his priorities going to be? will he strike a bipartisan tone ? is he going to strike more of a progressive note? electedas not held office before, so there are lots of unknowns on how he is going to be as a legislator. tom: emily wilkins in atlanta. the news flow this morning out of atlanta extraordinary. we have not seen an ap change in voting over the past three hours. 16,000 votes separating ossoff rum perdue, and that by no means precludes a recount as we see with warnock and loeffler where there is a substantial gap there. momente politics of the we are thrilled to bring you andrew slimmon with morgan stanley investment management. how do you synthesize the

politics whether it is here, fighting for his life in france. how do you do what you do it morgan stanley in this political maelstrom? andrew: what an exciting morning. the big story as it pertains to financial markets is the 10 year treasury has broken 1%. whether that is political, the story of the economy recovering, whatever, i think it's important. inhink it causes a shift rotation leadership in the market. i think the political story is just part of it. i think the economy recovering, maybe it's more stimulus on the way. to the financial markets and what is going on, this is the really big story of the day. does this give a boost to financials or give a headwind to tech shares the echo where is

the biggest equity -- two tech shares? where is the biggest -- nasdaq, there are parts of the nasdaq that are in a bubble. that is not to make cap tech stocks. stocksre a lot of nasdaq that are making money that are selling at sky high valuations. those sky high valuations become challenged as rates go up. i think that is vulnerable. as it pertains to politics, the mega cap tech stocks are selling off in in just -- in anticipation of higher gains. take a step back and take a deep breath before you overreact. people tend to overreact to politics. aearly, higher rates and steepening yield curve will help financials. they are stronger today. myself, i'm a

believer in the cyclical rally. i'm a believer in the reopening. you want to buy cyclical stocks coming out of recession. i have watched the nasdaq go through the roof and that's been frustrating and now we are starting to see if this will cause a true rotation in leadership. shares up nearly 3% in premarket trading. he said markets tend to overreact to news. how much is the bond market over reacting to the prospect of more stimulus giving the fact that there will be more regulation and higher taxes and it will be a rocky road. this blue is purple. andrew: i totally agree, but there are other things going on. i read a great quote. americans, we have a frustrated desire to spend money. we are all sitting at home. the savings rate is 13% and it's on its way to 18% if there's

another stimulus coming. we are going to spend money when we get through covid. markets are going prevaccination and the markets are going to struggle because we are going to see a big boom in spending and rates are going up. i think that's going to be more of a challenging time for equity. i don't think it's just political. i think it's the market starting to tell you, spending is going to come and we are going to party like 1999. slimmon, thank you. he is with morgan stanley always listening. lisa abramowicz, the moment is here. ourve to say, and to all of viewers and listeners we love the feedback. say, hey dummyo with a bowtie, i'm going to put you on mute if you don't mention

the russell 2000. the russell 2000 up china or miss this morning. lisa: sounds like a fantastic vacation. [laughter] tom: there he is. coming up, we continue our coverage out of washington and we consider the challenge of the world economy during the pandemic. futures right on the green. we are watching georgia, this is bloomberg. the democrats hopes of taking control of the u.s. senate hangs in the balance today. they have won one of two runoffs in georgia, but the other is too close to call. according to the associated press, democrat rafael warnock defeated senator kelly loeffler. warnock is a civil rights activist who will be georgia pot first black senator. the race between jon ossoff and republican david perdue is a dead heat, with a number of

votes still to be counted. or do's senate term expires sunday. distinctly different events taking place in washington. on capitol hill lawmakers gathered to certify joe biden election as president. some republicans have promised to vote against it because of unproven allegations of fraud. donald trump will address protesters calling for the overturn of his loss. thousands of them gathered in washington. in hong kong, an unprecedented crackdown on democracy. dozens of politicians arrested under a controversial national security law. so was an american lawyer that is member of many human rights groups. secretary of state called the arrests and assault on democracy. to saudi arabia, the family took charge of the oil market with a large cut in crude production. that painted over cracks in the

opec coalition and crude prices jumping to a 10 month high. shares of energy companies have surged. 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 am ritika gupta, this is bloomberg. ♪

♪ georgia, i am honored by the faith that you have shown in me. ,nd i promise you this tonight

i am going to the senate to work for all of georgia. no matter who you cast your vote for in this election. >> there are a lot of boats out there. victory and weto are staying on it. the fabric ofs this fractured nation seen in those candidates. i believe that video of kelly leffler was from earlier to be fair to her. we heard from the rev. warnock of the ebenezer baptist church over this historic moment for the nation. tonock collected in georgia one of those senate seats. is still under careful discussion. stacey abrams giving congratulations to her candidate. onwill keep you updated

that. kevin cirilli is our chief washington correspondent. his head is spinning with eight stories. this longave to go to drawn out process in washington today. is your washington riveted by it or is it just a process you are going to get through by 10:00? kevin: without question the politics are fascinating, they are historic, and they will be carefully watched. from a policy standpoint, the process is playing out. the institution as outlined by the constitution has a process that will play out. we are having some very bad audio issues. but the processes playing out. tom: having some audio challenges. kevin, work with your ifp as we call it. we have an audio issue in washington, primarily because --

lisa, let me go to you here. as we look at the politics of the moment we frame a better market than two hours ago. it was something to see 103 on the 10 year. we came into a better yield at 1.0%. lisa: there's a question of how sustainable this is. is this because of higher inflation expectations? it creeped out, but was not a game changer. is this because of expectation of a weaker dollar and less foreign investment? will this be a buying opportunity? of: we will get a lot strategies. stephenajor reaffirming king of hsbc and his belief in a lower rate architecture. david kelly of jp morgan posturing a medium turn, higher rates, but a long-term disinflationary cycle. be aroundat will stimulus and income replacement. kevin cirilli, to cut to the

policy chaise, how do you frame the debate in march or april over stimulus and income replacement to a beleaguered america? are significant winners and losers this morning, even as the results are still being tallied in georgia. centrist democrats, people like senator joe mansion are waking up with a lot more political capital here in washington, d.c.. they are going to be without question the key swing votes on fiscal stimulus and other issues pertaining to health care fixes, as well as on big tech regulations. with one source in the republican party who noted that for someone like senator joe ma nchin who is governing in a state which was carried by more than 20 percentage points by the nominee, donald

trump, he is a facet -- he is in a fascinating political intersection where the company is. lisa: how much are republicans putting the blame on president trump the underperformance in the runoff? kevin: significantly. the soul-searching for the republican party which is reminiscent of any time a political party loses and has to do a diagnostic type of test, that's already been going on. for mitch mcconnell this is a significant, significant opportunity so to speak to question what path forward the republican party takes, especially as it heads into a new cycle. lisa: who will become senate majority leader if democrats clinch the senate? kevin: chuck schumer. a is on the cusp of having lot of significant power. new yorkers are familiar with chuck schumer.

he is someone who has walked to the political tight rope of the progressive flank of the party as well as centrism for quite some time with wall street in his backyard. tom: i'm going to give you an unfair question. perdue is invid the recount gap with jon ossoff. if jon ossoff does better, as is widely presumed, and that gap is a little more than the recount, is the real surprise that senator david perdue will graciously step aside given the news flow? early tothink it's too predict that. there is still a process. righthe .4% majority advantage going to jon ossoff, that is within the ability for there to be a recount. i, tom, have talked about this before and i think we

are all in agreement. i don't want to get ahead of anything, especially these days in which there is a lot of process playing out. in atlantawilkins and kevin cirilli with the festivities in washington. admit, kevin cirilli sound on on bloomberg radio has been expanded to a six hour program. look for that at 5:00 p.m. tonight to sound off seriously on this most historic day, an important conversation with the people of washington. kevin, thank you. red and green on the screen. nasdaq futures better than they were three hours ago. lisa, francine, megan, whatever it is. lisa: you can just go with you. tom: [indiscernible] lisa: things are coming back. i do wonder going to andrew's

point about markets overreacting to politics, how much will actually change with the senate led by democrats. lot, but how much has been priced in? i don't know. of: good morning, jeff curry goldman sachs with a bold call in commodities off of saudi arabia, brent crude at $54 a barrel, a real shift that we see compared to other commodity complexes. lisa, what are you looking at in your world of high-yield and ig? what do you see? lisa: that's been pretty steady and incredibly low, record low yields across the board in terms of what bonds are going for. the question is, can they remain so as the economy climbs? jonathan ferro, tom keene, and eu. [laughter]

stay with us. .ark cabana of bank of america we continue to monitor the politics of america. this is bloomberg. ♪ (announcer) do you want to reduce stress? shed pounds? do you want to flatten your stomach? do all that in just 10 minutes a day with aerotrainer, the total body fitness solution that uses its revolutionary ergonomic design to help you maintain comfortable, correct form. that means better results in less time. and there are over 20 exercises to choose from. get gym results at home. no expensive machines, no expensive memberships. go to aerotrainer.com to get yours now.

tom: good morning, bloomberg surveillance on an historic day for the u.s.. and acrosson georgia, particularly in atlanta we are looking for results. we are going to stay on the markets and do a data check on what you need to know. the tape not as jarring as it was two hours ago. lisa abramowicz and tom keene. jon ferro notes that the russell 2000 with some of that small cap indication that you see with a better doubt. doubt futures up a hundred points. 24.4 four, that's a better tape. lisa: the russell 2000 up nearly 3% in premarket trading. i'm watching financials today. jp morgan up more than 3%.

3.2 percent ahead of the open. this comes as you have the biggest steepening in the yield curve. you have the biggest gap between two and 10 year yields going back to 2017. how much is inflation and how much is expectation that the fed will be comfortable allowing yields to rise over the longer-term area -- longer-term. tom: foreign-exchange important for an incoming president. the dollar pushing new weakness on dxy. the 6.4 five is always important sawr hong kong news we on multiple arrests. we heard the shock from our hong kong news bureau. guestbefore we get to our , mr. cabana, i want to walk through the formula, which is nominal yield higher, but at the expectationslation are higher, which means the real yield has not moved all that much, it's an interesting

juxtaposition of those three numbers. the implication is that central banks will continue to buy more than $100 billion in bonds for the foreseeable future for pressing yields. areoesn't make sense if you expecting 2% inflation over the next 10 years to get 1% for a 10 year treasury, you are leaving -- losing money in real terms. seeing and we are mark cabana has been covering all things rates, bank of america heads of -- head of strategy. yields have kind of peeked out here and could be lower as people reassess the enthusiasm about faster growth and more stimulus. could, but we anticipate that rates will gradually rise to 1.5% by the end of the year. we assume that even with the base case of a divided government if democrats do end up winning both of these georgia

seats, to us that raises the risk that you see rate repricing occur faster and potentially higher than we anticipated. there are a number of headwinds in the near term. covid will restrain economic activity in q1. we anticipate as the vaccine is rolled out and global growth in u.s. growth picks up you will see long end rates reprice higher. we think this long end rate repricing will be used for healthy factors like better growth, higher inflation expectations as the economy recovers. if the democrats win both of these georgia seats it means more fiscal stimulus and it might mean higher deficits. lisa: how high can treasury yields go before the fed steps in? mark: it's less about a level in more about the set of conditions pushing rates higher. healthy rateis repricing where you see higher breakevens, where you see stable to higher risk asset prices, a

stable to weaker dollar, there is no level we think the fed is going to grow uncomfortable. thatu see this rate move is a liquid move or due to concerns over too much treasury supply, that is when the fed will step in. about thet is all distribution between breakevens and real rates. if rates are rising because breakevens are widening, the fed will see that as a generally healthy move and they will not step in. if you sell rates really quickly move to 1.5%, that would probably be more than the economy could handle at present and the fed would need to offset that. if it's a more gradual move we think the fed will likely tolerate and embrace the move if it's driven by better inflation expectations. lisa: as we are seeing today in big tech stocks and other stocks considered havens or securities that are riskier that have been bid up in large part because of how low bond yields are there is a question of whether the fed will respond to a disruption in

financial conditions, or a selloff in anything and step in or perhaps try to suppress just to keepr everything intact and make it look like everyone is happy. mark: absolutely. the fed is looking at financial conditions broadly and they don't want to see a destabilizing rise in long-term interest rates that causes financial conditions to tighten materially and causes the economy to slow down. are they concerned about a couple of percentage point selloff in tech stocks when they've had such an incredible run? no, not in particular. would they be concerned if it turned into a 20% correction yes. they would be concerned if they were assigned to high of interest rates. are you slowing down the housing market. things of that nature. that's when the fed would get concerned. seeing the 10 year yield above 1% does not seem to be a level where the long end rates --

in terms of the economy and broader financial conditions. in the the bull market equity space whether it is double-digit tech returns even what we are beginning to see and small-cap recovering so nicely, if i look at the bloomberg barclays total return it's been a persistent bull market of higher price and lower yield, have we forgotten what a bond bear market is? extent, yes, given that u.s. interest rates have recently been at historic lows, the equity market is doing incredibly well despite the pandemic and i think the market will have to adjust to the notion that long-term interest rates will be rising. we think that this rate rise will not necessarily constrain the economy in a material way, but i think investors will have to get accustomed to the fact that they should expect to see at least the prices of bonds go down to some percent as rates reprice and growth and inflation

picks up over time. tom: we welcome all of you on this historic day in washington. mark cabana of the bank of america, red and green on the screen, a little better tape than three hours ago. the yield at 1.01%. mark cabana, i want you to talk to savers out there, not the fancy guys like you doing fencing edging -- hedging strategies and trying to manage with a higher yield and lower price mill you, what does the average person do with fixed income, if you are telling me higher yield and lesser price? a sabr, whatare you want to do is carefully think about extending out the curve, try to pick up additional yield based on your own risk tolerance and your comfort level. maybe you think about moving into the corporate space. you are going to have to be careful and recognize that you want to -- we do anticipate that rates will

be slowly rising. if you are an institutional investor you probably want to hew shorter on your overall allocation as you reprice higher. it is great that we are seeing rates move today given some of the news out of georgia and the implications it has for washington. we think that fundamentally the big rate repricing we see will likely take place in q2 or later. out andaccine is ruled we get confirmation that the economy is recovering. tom: on a price yield basis the fancy guys talk about duration of a second derivative convexity , i have no idea what gamma means. is about convexity, what going to be the accelerated force as we go through 2001? through 2021 we do think we are going to see that selloff

that will likely accelerate from q2 onwards. q1 will have a significant headwind from covid. we don't know how effective the antibody treatments will be to the new strain of the vaccine. we don't know how quickly the vaccines will be rolled out. after that is generally behind us we do think that rates will need to replace to the new andity of strong fiscal -- the fact that we are likely going to see the economy operate meaningfully above trend from q2 through the end of the year. that we think is going to take rates higher. we expect to see a more accelerated move later in the year and today it seems like the market is repricing a bit more to the fact that you need to assign higher odds to democratic control of the senate than you did previously. tom: mark cabana of bank of america, thank you. lisa, i have to go over to you. convexity, the acceleration of price down and

yield up is blooming. blooming,ything is you can always painted from some blooming perspective. i will say, looking at the bond market there is a real question of what can drive yields higher. it was interesting to hear mark say 1.5%. at a time where you have record amounts of negative yield and debt around the world, that 1% would look like high yield. at what point did buyers start coming in? it seems reasonable considering the fact that investment grade bonds are yielding 2%. woulde make jokes but i say business media is on 85% equity markets and they toss in a morsel about bonds. what we are talking about is yield up whether it is the politics of president biden and others and price down.

these are great challenges. on bloomberg intelligence yesterday or was a point that one of the reasons why valuations of equities have looked so good even though they are so high on a historic basis is because of how low yields are . at what point do yields start to look more attractive given how high valuations are? stocks become the bonds for investors. how much to that challenge the fed's hand regardless of what the economy does. tom: back to the politics of the moment. last night some movement, not minute by minute, but maybe every 30 minutes we had georgia voting results. i have not seen any numbers , that is0 this morning where we are. warnock takes the trophy against announcedthe ap has that along with many organizations. jon ossoff ahead of david perdue but by of razor thin margin.

it is within the recount margin. stay with us through the morning as we look through that vote return and also the challenges of washington. isaac boltansky with us again. the nation onross bloomberg radio and television. picka: democrats need to up both seats in the georgia runoff election to take control of the senate. they are now halfway there. according to the associated press, democrat rafael warnock defeated kelly loeffler. rev. warnock's eight civil rights activist who will be georgia upon first black senator. the race between jon ossoff and david perdue is a dead heat with a number of votes still to be counted. david produced senate term expires sunday. donald trump has signed an

executive order banning -- order does not take effect until after donald trump leaves office. it will be up to joe biden to decide whether to enforce it. a dire warning issued in north korea. he says development plans have fallen far short of their goal and the party will explore a new path for what he called a big leap forward. a big payday for the apple ceo tim cook. the company says it would pay out 179 percent of targeted bonuses, because it had such a good year. for tim cook that means his cash bonus moves to $10.7 million. in addition to his pay he had a total of 282 million dollars in restricted stock invested during the year. 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 am ritika gupta, this is

bloomberg.

>> assuming that there is some fiscal stimulus next year, which

will probably necessary to continue to support the recovery, i think from the fed point of view there will be a substantial amount of tolerance for increased fiscal stimulus, because that is really the policyal economic instrument that exists. r -- daniel taurl we welcome all of you hear on radio and television. red and green on the screen, better tape than three hours ago with dow futures up 53. the vix 24 point 66. we had higher yields two hours ago. ,hey are better now from 1.03 we come into 1.01 on the 10 year yield. the saudi's tell me oil should be higher. $53 and $.61 brent crude.

on the policy moment, we say this with warnock winning and ue undecided. stacey abrams has gone to jon ossoff with congratulations, but we are going to call that premature. we have not seen a boat change in three hours. isaac boltansky joins us with compass point research. isaac, frame what income replacement looks like under a biden purview versus a trump review. -- trump purview. isaac: we are talking about a structural shift in how washington works. even with just joe biden taking the white house the tenor regarding the response to the virus and our economic response was going to change. leastemocrats now, at within striking distance of taking the senate, the total scale and scope of the conversation will shift. as market participants we need

to start talking about what fiscal stimulus would look like in that democratic scenario. it becomes not a question of if, but how big it will be. lisa: what kind of scope and scale are you looking at? we still don't know who is the winner in that perdue race. if we go down that rabbit hole of david perdue losing and democrats taking control i think market participant should start thinking about a 750 billion dollars to $1 trillion package. that's based on what democrats wanted in the last package. funding, 2000 dollar checks, and additional unemployment insurance and aid. that tallies up pretty quickly to around $750 billion. lisa: how much will we see a repeat of what we saw with a 2020 election with three counts and contested results with the georgia runoff? isaac: we know that warnock one.

let's start there. then we go to the perdue race. as tom mentioned before, that race is so close that it's technically under the recount threshold. we will have to wait and see, but it's important to note that very easily could go to a recount. difficult in a recount scenario to find 16,000 plus votes, which is what the margin is, but it's important to note that there still could be some time and another round of recounts following this. in your wheelhouse is the doing of all of this. there has been sharp criticism across the political landscape of the process of aid, stimulus, or income, small business distribution of funds. a that different under democratic regime than a republican regime? isaac: some of those same issues will be present no matter what. i'veesson i've had that

taken away from this is that our financial architecture is agreed justly out of date. the trouble we are having with getting money to small businesses or individuals or things that we need to tackle in the future, because it's downright depressing that we are still talking about sending paper checks to people in the year 2021. there are going to be some governors on what is possible, but i think the main takeaway for market as they will move more quickly and the conversation won't be if, but how big and what will be included. look at the process here and with the financial experts we talked about away from the bolt and ski world -- away from your world they seem calm about higher yields. are you calm about the new regime of higher yields? isaac: fulton my seat have found a way to rationalize whatever electoral configuration -- tom: you've got that right.

isaac: i'm going to stick with it. what we have now is going to be positive for markets, and here's why. there is a group of centrist democrats in the senate, a group i refer to as the mod squad. manchin from west virginia, hickenlooper from colorado, that group i think we'll push back against some of the more expensive progressive proposals and are going to push back campaignhe broad biden tax plan. tom: for a heartbeat there i thought isaac was running for office. [laughter] lisa: we are all running for office in someone's house. aside from what we are seeing in d.c., what will biden's approach be when it comes to china? we could devote a half-hour to what we have seen overnight with respect to the new york stock exchange, the listings, and the

report saying they will not go ahead with delisting. what do you make of all of it? how much does it complicate investing in foreign stocks listed in the u.s. based on the fickleness of this policy? that ourbelieve relationship with china is the most important geopolitical relationship of my lifetime. there is broad bipartisan support for shifting our approach to china. the difference is going to be the tactics. the biden administration is going to attempt to pull our allies into a broader pressure strategy whereas the trump administration not allow. be net impact is going to similar in that we will have and numerouss proxy battles across our financial and economic relationship. that with a broader geopolitical alliance it could

be easier for the biden ministration to get lasting change with china. isaac boltansky, thank you very much, with compass point research. we do this with red on the screen and the challenge of a nasdaq up 100, down 2%. pause for oneo minute on the pandemic. i was thunderstruck by the dearth of oxygen to assist patients in los angeles, and even here in new york there is immense word about rising hospitalizations. toa: the idea that we have get the vaccination up and running otherwise we will get out of control with the pandemic. at economic data coming up 9:40 five, services pmi data, interesting to see how much of the jobs and the service sector and people are going out to eat. what do you do in a pandemic? tom: we will go beneath the headline date of their. baylorto thank peter of

college of medicine for his great assistance in perspective yesterday on this pandemic. on the growth of value, mai capital. this is bloomberg radio and television.

>> we are in the middle of the worst crisis of our lives. >> equities have maintained their complete disconnect from the real world. >> we are hitting a plateau. >> we have seen a lot of demand. pent-up --a lot of for consumers and that money will find its way back to the market. >> money is chasing bad companies and bad credit. that has always happened. >> this is bloomberg surveillance with tom