tv Bloomberg Daybreak Europe Bloomberg January 7, 2021 1:00am-2:00am EST
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t minutes a day. no expensive machines, no expensive memberships. get off the floor with aerotrainer. go to aerotrainer.com to get yours now. it's: good morning, "bloomberg daybreak: europe." your top stories this morning. hour, our democracy is under unprecedented assault. >> we will not bow to lawlessness or intimidation. >> for those who wreaked havoc
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in our capital today, you did not win. congress resumed after pro-trump protesters stormed the u.s. capitol. one woman was shot to death. three others died amid the violence. respond, orest johnson call them disgraceful. germany's foreign minister said the in mise of democracy will rejoice. amid the chaos, global equities higher after him across -- democrats won of the u.s. senate with hopes of a reflation trade. victory has resumed the day after chaos, a pro-trump mob stormed capitol hill, leaving at least four people dead, 52 people arrested. mob tosident urged the
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go home but avoided taking the blame for the chaos. annmarie: good morning, one of the shocking scenes coming out of america overnight, a very dark day in american history, hearing from both sides of the aisle, u.s. representatives. i could quickly go through them, mitt romney saying it was an insurrection incited by the president. governor andrew cuomo saying the failed attempt at a coup, and the international reaction as well. a moment ago, breaking news, president donald trump's deputy national security adviser has resigned wednesday. we knew this was going to be the next step. some of the people very close to the president wanting to now resign after what we saw unfold. good morning to you. manus: and a very good morning to you. the president elect saying democracy is under assault. i just had a conversation with one of the former u.s.
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ambassador's and will cover the narrative in our show this morning. i asked him did he feel it was a coup, and he said it has the hallmarks, but he's not sure what was the intention of the theident, he did ask protesters to go home, but telling them he loved them. he said it really was a good day for joe biden because he will come out of this quite well. but the ramifications globally or quite unprecedented. thatrie: and speaking of video, we saw twitter, instagram and facebook actually taken down. d.c., dan, thank you so much. i know it is late there for you and i hope you are safe. i know you had an insane 24 hours. run us through what has happened and what we should be looking forward for on the second day of this in d.c. dan: the first and most important thing to note is that
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the count has resumed. they have continued to count the electoral votes that at the end of this process will certify or declare president-elect joe biden and vice president elect kamala harris as those officeholders, and they will be -- there will be an inauguration on january 20. we are rapidly approaching the end of that process right now. the house is debating and will vote on what we expect to be the final challenge to that, which is a challenge to the results from the state of pennsylvania. earlier today that process was delayed by several hours when a group of pro-trump protesters infiltrated the capitol grounds and the capitol itself, even entering the house of representatives chamber and the senate chamber and then were removed by security forces later in the day. probably things hit one of the most significant
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roadblocks and one of the most significant events that has transpired here in washington in a long time. so we are all just trying to come to terms to -- with that and figure out what it means, but we expect the process as far as the vote count goes to wrap up sometime in the early hours of this morning here in d.c. annma mentions some of the reactionsrie we've had across this brick -- across the -- across the spectrum. the deputy national security advisor has just resigned. what are the reactions you can take us through? dan: one of the most poignant reactions is probably that of senate majority leader mitch mcconnell. one of my colleagues who has covered the senate for eight long time pointed out earlier that this is a horrible day for
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mcconnell. this morning he found out that he lost his senate majority with two democratic wins in the state of georgia. then he took to the senate for earlier today before the mob overtook the capital, saying that the party should not go down this road of trying to object to all these states. and of course we had the violent interruption at the capital, and now the end of a very long day. a i think that we sort of see lot of republicans, a lot of people who have been in the republican party for a long time and are leaders of the republican party really trying to come to grips with the end of a very tumultuous for years in washington. and splitting along some very interesting lines. not everybody is reacting the way you would expect. lindsey graham has been a staunch pro-trump republican and has broken from the president
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over the last two hours. the situation is still unfolding and we expect probably some more resignations and more developments to come. annmarie: national security at advisor robert o'brien is one of those being looked out for. our congressional reporter, daniel flatley and washington, d.c. let's get a quick check of where we stand in the markets. yesterday i was watching these shocking images on the capital when you had these protesters running into a riot, what was happening on capitol hill. whatarket shrugging off was happening. this morning we trade higher across asia and the s&p 500 futures. what we do have across the board is a lower dollar. that is fueling some of the risk off or seeing, the 10 year yield maintaining about 1%. is a senior
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strategist, jeffrey, good morning to you and thank you for joining us. i just want to get a sense from markety is the completely ignoring this chaos we are seeing in the capitol? i think the main reason is twofold. we've seen the market taking a beat back, it's not going to affect the transition of prior -- transition of power. it's a powerful shift compared .o where we were in november are notthese two things going to change the transition of power and that's what the market is taking from this over
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the medium to longer term. i would say markets are reaffirming that the institutions will remain intact as well. manus: the world has been bombarded by these images of people in chaos in an attempted coup. elizabeth warren warning that anyone who voted against were endorsing a coup. surprisedo you, i'm by the insouciance of markets. again, at the end of the day i think tempers are flaring right now and people are emotional and the market is trying to take the emotion out of it. the overwhelming response of the
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they will face challenges but we have to bear in mind the u.s. is a very young nation relative to what we have here in europe and it has managed to withstand these tests sothings we're seeing now, it's another reason for investors in the medium to long return. they are stressing longer-term confidence in the u.s., and i think we should take that on board as well. dollar on the brink of a low, david ingles pointing out that the next assistant level is the 2014 low. is the dollar focusing on the riots in d.c., or in the midst of what happened in the capital, what happened in georgia? with the democrats being able to flip the senate. geoff: i think georgia is really
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fueling that at this point because it does change expectations of what the policy mix is up ahead. what is noticeable, the rise in the 10-year treasury yield has followed what has been a sustained rise based on expectations as well. there's going to be additional funding coming through but will yields and rise in response from the fed? we don't think so. the fed will still hold down yields and maintain a very loose financial position. at some point with stronger u.s. growth and reflation, and there is money to recycle back into the u.s., but at this point the short dollar view to find reflation elsewhere i don't think is going to change. couplethis plays into a
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of different narratives, but let's talk about the reflation's narrative. will in the quarter at 1.75%, and the reflation route is petering out and you will need something quite explosive to move it higher. becomes ank ycc bigger story in q1 as we spiked to 1.25 on bond yields? geoff: it will be a bigger story as some markets look at other levels in bond yields where the fed is not going to be comfortable with. that will be front and center of the narrative. having said that, when it comes to reflation expectation, we need to look at the breakeven point and if that will go higher
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. that kind of range. at the end of the day, the fed wants to achieve escape velocity. if it takes a bit longer in terms of guidance for the yield curve, they will do it. i don't think we are there yet, but those levels you mentioned i think the fed will be watching very closely, and the dollar as well. manus: it's all about the speed and velocity. some live pictures there on your screen of congress reconvening. there will be no more votes this evening. the fbi are now investigating last night. we will discuss the reaction in europe. more on our top story, right here on bloomberg. ♪ ♪ you can go your own way
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city of: 6:15 in the london. a very good day to you. this is "bloomberg daybreak: europe." we want to get to our next guest. morning to you. just to recap what we had yesterday, the international reaction was very swift. the u.k. prime minister boris johnson saying the scenes he saw out of d.c. were disgraceful. germany, you from wrote a note in december saying back to constructive cooperation with the biden administration. how much harder does what we saw unfold in d.c. make the incoming administration's foreign policy deals? the pandemic made it worse, europeans were certainly
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reinforced with the stereotypes about polarization and economic inequality and racism in the united states. these pictures coming out of shotngton have certainly europeans, but also americans. i have many friends on capitol hill, both republicans and democrats. they are incensed about what is going on, and we see the fragility of our democracy. i think on one hand it will be hard for biden with his idea of having a summit of democracy. on the other hand, it also shows america is in a powerful position because america is the greatest democracy in the world. , and suffering from within i think europeans want to see american succeed. europeans depend on america for a security guarantee. it just shows how important it
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is that america succeeds and that europeans will be welcoming of the biden administration after what is going on. think thet do you ,ncoming biden administration the slogan is built back america. do you think this will push biden to have to focus much more deeply on domestic rather than international policy, given the division that we've seen shown to the world? knew: again, europe always even with a biden administration that a lot of time and investment will have to happen at home, and as result, foreign policy will definitely take -- be on the back burner, but on the other hand, president-elect biden is so well-versed in foreign policy issues, he was either chair or ranking member
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of the senate foreign relations committee before he became vice president under the obama administration. be they'lllso able to pick up where they left off. many have already worked in the obama administration but they also realize the world has changed, and europe is also being self reflective about europe needing to have a little more independence in the strategic economy to bait that's going on in europe from the united states. annmarie: if you are an adversary of the united states, how do you interpret what happened yesterday? that america's adversaries are certainly looking back or looking at these pictures and thinking, it will be very difficult now for america to sort of wag its
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finger at us about democracy and human rights and peaceful protest, because what happened at the capitol yesterday was mob rule. and it will be difficult for america to look at other nations and judge their systems when we are having issues with our own citizens. but i still think that because of the powerful bipartisan reaction to yesterday's events that this could also be a moment that brings us together and makes lawmakers and citizens realize that we need to shore up our democracy in the united states. it's a moment like 9/11. we haven't had a moment where wasn't locked down because of a next terminal factor, or coming from within. manus: you would compare this to
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a 9/11 event? sudha: absolutely. but unfortunately, due to internal violence. i do think this compares to 9/11, where members of congress realized that there is a threat out there, but the threat is coming from within the united states, and there will be bipartisan action on this, i think. much. thank you very jeffrey is still with us. let's turn from the political machinations to the reality of the biden ministration. as you look into the rest of 2021, are you more encouraged by the stimulus narrative versus the potential regulation and
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empowerment this administration potentially has? geoff: i think the stimulus narrative is far more important right now. let's bear in mind the vaccination rates will still be when askednt ahead the most important thing for this year, the vaccination rate. you can put money on the table for stimulus. the economy is not ready to get going again from a public health perspective, at that point in the future as well. second is the longer-term picture when it comes to regulation, at the end of the day it's 50-50 and we have to sentiment may not
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follow along party lines. we'll have to see it go piece by piece and it's a legislation that will make a final determination. from a global grid aspect of adding the injection in the u.s. and news of fiscal strength in asia. as long as the vaccinations prove effective. annmarie: going to 2020, no one to be theas going biggest risk, which is the global pandemic. it's january 7, and right now we have made him, some say political violence. calling it an insurrection ignited by the president of the united states in d.c.. his political violence going to be one of the biggest risk of 2021? geoff: politics will always be forefront, not just from an individual country point of view.
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in terms of the pandemic, one thing to note is if you look at now, fissures are starting to emerge and it comes about thetions relative slow pace. elections coming up in holland as well. i think it actually does inject some debate in europe. they want to get out of this quickly. manus: i just want to quickly wrap up market sentiment for 2021. implosion of dollar, central banks around the world kickback. is that a risk that you can see unfolding at the moment? we need to get back on
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track with vaccinations and that will reinforce the view, but let's bear in mind what happened in 2014. if the 10 year does move, let's watch out for another one of ande yield curve tantrums the central bank's response to that. that's one thing to bear in mind as well. much for thank you so your time this morning. world leaders have voiced alarm over the pro-trump moms breach of the u.s. capitol, but the u.k. and australia calling for a peaceful transfer of power, and allies in europe calling the protesters actions an attack on democracy. we're joined by maria in brussels. we've heard from a lot of leaders overnight, who stands out to you? maria: we heard from the head of the european commission that
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there needs to be a peaceful transition of power. emmanueleard from macron saying this is not the america that we recognize in europe. the german foreign minister saying trump needs to accept that he has lost the election. what is striking is the speed and tone of the condemnation. this was strongly worded and very vocal. it happened very quickly. when you're talking about an ally, you tend to not get too much into domestic foreign affairs. you don't talk about internal politics. that was an exception in europe, they felt they had to condemn this because it goes beyond the united states. it shows that the trump relationship with european governments is now completely broken and it will encourage
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europeans to become more independent on that front. autonomy,f strategic it's going to feel that idea. you should not depend on your allies going forward to help you with your policy, this is something you need to do by yourself. annmarie: thank you for joining us from brussels, maria. and saying no one is likely to depend on the u.s. the same way they are. i think that's what a lot of global leaders are reckoning with this morning. manus: former president obama on ittter this morning saying spiraling further from reality, -- theg on years of consequence of what happened is a violent crescendo.
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the latest from former president obama in the united states of america. what else do we have stacked in the rundown? annmarie: more coverage on the latest from d.c. this is bloomberg. ♪ wanna lose weight and be healthier? it's time for aerotrainer. a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time. it allows for over 20 exercises. do the aerotrainer super crunch, push ups, aero squat. it inflates in 30 seconds. aerotrainer is tested to support over 500 pounds. lose weight, look great, and be healthy. go to aerotrainer.com. that's a-e-r-o trainer.com. more voluminous hair instantly. all it takes is just one session at hairclub. introducing xtrands. xtrands adds hundreds or even thousands of hair strands to your existing hair at the root.
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annmarie: good morning from london. manus cranny is live in dubai. this is "bloomberg daybreak: europe." here are today's top stories. hour, our democracy is under unprecedented assault. >> we will not bow to lawlessness or intimidation. >> to those who wreaked havoc in our capital today, you did not
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win. annmarie: congress resumes after pro-trump protesters storm u.s. capitol. one woman was shot to death and three others died amid the violence. to the scene. boris johnson called it disgraceful. germany's foreign minister said the enemies of democracy will rejoice. amid the chaos, double equities are higher after democrats won control of the u.s. senate. treasury yields climb on inflation hopes. manus, good morning to you. a dark day in american history. mitt romney saying this was an insurrection incited by the president. andrew cuomo calling it a failed coup. both sides of the aisle striking the same tone. what does it mean for those officials in the white house? the deputy national security
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advisor stepping down payment a lot of questions to be answered today. absolutely. on the back of what happened last night, and i know that hister has put a halt to account and facebook etc. daughter was calling the crowd patriots. former chief of staff mick mulvaney in the former communications director imploring twitter -- imploring trump on twitter to condemn the violence. you've been looking at some of the international responses. annmarie: boris johnson saying it's a disgrace. we heard from the nato secretary-general talking about what he saw yesterday and calling it shocking. and you continue to hear.
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usually you hear from the u.s. state department you see scenes like this on your television from other places in the world. but it's happening presently in the u.s. capital. you will hear lots of talk about the 25th amendment and whether the president should be removed, but that will take vice president pence and the whole cabinet to do that. social unrest and violence on capitol hill, the word i've chosen for today is insouciance. there is insouciance in the rack -- in markets. narrative'sn is challenge, saying you need something substantial to move the reflation is narrative. we don't seem to be worried
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about technology being crashed at the moment. let's look at the rest of the markets. well done with their interview yesterday. a unilateral move. great interview. the euro-dollar, where is the breaking point? wherever you like to verbally intervene in the euro-dollar trade? joe biden election victory is almost -- all but done on the four of the congress. the pro-trump mob stormed capitol hill, leaving four people dead and 52 people arrested. the violence lasted for hours. state troopers and the national guard were deployed. the president urged the mob to
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go home but avoided taking blame for the chaos. pres. trump: i know your pain, i know you are hurt. we had an election that was stolen from us. it was a landslide election, and everyone knows it, especially the other side. but you have to go home now. we have to have peace. mr. biden: at this hour, our democracy is under unprecedented assault remit unlike anything we have seen in modern times. the assault on the citadel of liberty. annmarie: there is no evidence of fraud in november's election. and as flagged the tweet for several others to be removed. gardner,s is anthony former ambassador to the european union under the obama administration. thank you for joining us. you said yesterday on twitter, i
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want to tell my european friends at there is another america. is this the decline of america's influence around the world? anthony: i refuse to believe it. i don't want to believe it. there is a lot of damage it can be done. certainly yesterday was a dark day. hopefully this will be a day that will be remembered for several reasons, but one of them should be that democracy is always in danger and peril, and every generation has to support and defend. , in in the united states remember studying the democratic systems around the world in high school and thinking these coups d'etat's an insurrection could only happen in so-called underdeveloped countries. well, guess what? it can happen in the united states. four years ago when donald trump won the office, i had a foreboding for what he would mean to the future of american
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mockers the peer that's why i joined the biden campaign from day one. i would add this, when the dust settles, i think we have to remember that phenomena like donald trump don't happen on their own. there are thousands who aid and abet him from the business world, to the political world and others, and foreign leaders. they should be remembered, because he was known for years because of his language and his policies to what inns they would all bring us. manus: a very good day to you. you have been prolific on twitter in the past 24 hours. one of your tweets, when i compared trump to mussolini one year ago, some thought i had overreached. well, judge for yourselves. i want to get a sense from you, your biggest concern for the next four years. do you see this escalation of this kind of extreme activity? well, i said this for
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several reasons. fledternal grandparents fascist italy and mussolini, came to the united states and believed in it as able work of democracy. i'm so happy they are not alive to see these events. they would be so devastated. when i heard from donald trump i want to make america of course it is an absurdity for many reasons. however, i am an optimist because i believe joe biden is the right person to lead the country and to restore our image around the world. i think he can do it. because like one of your other speaker said we have to be very humble in our approach to democracy and anticorruption. we are no longer the shining city on the heel that we used to
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be at certain points in our history. annmarie: you worry u.s. diplomat to the european union. you have dealt with russia. if you are vladimir putin and you're looking at this, does this embolden those that still want to further hurt the u.s.? anthony: of course it does. of course it does. that's why they were such supporters of donald trump. that's why every enemy of democracy was so happy with donald trump's for years. it's not just xi jinping or putin. us not forget there are several leaders in europe who were actively courting this president. let me go back to the point i was making earlier. i was speaking on bloomberg today. business leaders repeatedly when it was known or they should have known where this would end, not only financed and supported him
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leaving they would enrich themselves. i find it very disappointing behavior. think wall street will have to look at it support of this president? anthony: absolutely. there are some corporate leaders who stood up very early and courageously saying this is not a question of bipartisan politics. it's a question of basic principles of democracy. there are certain things in a democracy which are unacceptable. that is preventing the peaceful transition of power. why is it that we haven't seen leaders stand up and say that? not just yesterday, but months and years ago. it follows a number of other , like storming the governor's office, calling roche
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-- racial protesters great people. all those events led to yesterday's events. i am deeply disappointed that business leaders didn't speak up when it was possible to do so. timesie: anthony, a few in american history we've seen the 20 for the amendment with spirost notably agnew and richard nixon. is this something that is tangible and realistic right now? anthony: that is for lawyers to decide. i cannot comment on that. i am actually optimistic. the united states is a country i love, and that's what i'm such passion today. i wouldn't be here if it weren't for my parents who which was at war time and under the control of a
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dangerous person. the u.s. is unique because it has a capacity to reinvent itself and to look itself in the mirror in a way few other countries can do. believe in the power of renewal of the united states. that's why i threw myself into the biden campaign, believing we can rediscover those principles once again. manus: i know you said it's up to the lawyers to talk about this and the 25th amendment. we have a statement from former president obama where he talks about all variety of things. right now republican leaders have a choice. they can continue down this road and keep stoking the raging fires, or they can choose reality and take the first step toward extinguishing the flames. doesestion to you is, what the republican party to do right to --
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anthony: disown this man. one of the most disappointing things we've seen, many members of the administration support him to the bidder in. you have the attorney general supporting them the bidder in. it's time for these people to say, enough. i would like to see every politically appointed ambassador and senior official in his administration appointed by donald trump resign, today, and make a similar statement to those made by former president bush. if they don't, they are accomplices. a very strong line from anthony gardner, former u.s. ambassador. we thank you for joining us on this day. coming up on the show, our coverage of all the latest in we bring it to you.
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manus: it's "bloomberg daybreak: europe." certify joe biden's election victory has resumed adapter chaos in d.c. biden will be entering the white implementowing him to major pieces of his agenda. one issue will be china. with beijing clamping down on hong kong while the u.s. and the u.k. have been preoccupied with domestic policies previous one
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man who knows a thing or two thank you for joining us this morning. we like to get your initial reaction to the scenes the world has been absorbing, but i want you to look through a prism of the china lens looking at the debacle on capitol hill. to what extent would you say there's a sense of rejoicing in china when they see these kind of images? reaction from china, mainly on social media and some official publications , this has been really shows you what you get with democracy. i think that will be the leitmotif of the chinese reactions. onsome official sources chinese webinars and social
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media have also been linking this with the riots in hong kong last year. get china bringing hong kong into this almost immediately. ,nnmarie: and with those tweets i've seen a lot of them coming out of china. how much harder does it make the incoming ayden-harris incoming relationship with china? jonathan: i think it will be difficult. china is in a confident mood at the moment, having gotten the economy revived and a free-trade agreement, having got the investment agreement with the e.u., in principle at any rate. and has been able to go ahead on hong kong and other fronts without taking really any notice
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or opinion. so china is feeling pretty pleased with itself at the moment, i think. this will add to what's happening in washington -- what is happening in washington will add to that. manus: yesterday we saw over 50 people arrested. it was called an assault on the city's democracy. give us your reaction to the arrests and what that does in terms of challenging democracy. anathan: this is unexpectedly wide application of the national security law that was passed in, -- in hong kong in july of last year after framed by the national people's congress in
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beijing. this appears to show that the authorities in hong kong backed by the central government in any attempt regard to raise opposition as being subversive, and therefore illegal. the question now of course is, will this go to the courts in hong kong? and how will it turn out there? certainly this is a big strike against the kind of democracy which still exists -- which did exist in hong kong previously. annmarie: those arrests will add to the critical noises we hear sounding the alarm about the e.u.-china investment agreement. deal naive in signing this with the european union, as some have claimed? jonathan: it's naive if it expects china to change its basic policies, which is not
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going to do. this is very useful for china, because it gets an agreement with the e.u. at a point where biden will be taking office, with the idea of forming an alliance of democracies to face china. obviously now the ease commitment to that may be in question. agreement, with this we also have to look at a lot of than anynciple, rather kind of detail commitments on either side. it will take a year or so to sort out. in the agreement has to go through the european parliament. and what is happening particularly in hong kong will raise a lot more questions in the european parliament. just: anthony gardner was with us saying the america of 2021 under biden is going to have to do a lot of hard work
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and reconciliation with international leaders. with that in mind, what you just said, do you think europe's action shows a determination to take their own path because of the dislocation they've had in the past four years? ignoring the u.s. administration, almost. yes, they've always been keen on maintaining a link with china. time, resident macron rentz has been speaking about the need for europe to exercise sovereign autonomy between china and the u.s., and this idea of europe not tying itself too closely with the united states is certainly there. is the biden administration going to have to deal with that.
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while the blackstone ceo, a prominent backer of trump, called violence appalling. we are seeing a lot of these statements come out around the world on twitter and definitely from wall street. manus: this goes to the heart of the conversation with the former ambassador to the e.u. where he we've got to consider -- wall street has got to consider what is going on in terms of their support with this president. my word of the day in the midst of all this is insouciance. the markets didn't blink on the back of all this. annmarie: i'm looking at the on the in europe, up .7% s&p 500, nasdaq .9%. they are ignoring the chaos in
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