tom: this late, late night, early morning in washington, a fierce political debate just ending, harsh words between the gentleman from maryland and texas, you sit down, this as the gentleman from pittsburgh says, quote, "strip this congress of its dignity." for a moment, it was mob rule. the gentleman from utah because it "an insurrection," and the

nation waits for response from the president as the president-elect calls for a restoration of democracy, decency, honor, respect, and the rule of law. good morning, everyone. from new york and not from washington, as we ended this process moments ago, francine, and we have to reach back, quite frankly, through all of american history over what we have seen in the last 24 hours. francine: it is absolutely incredible, tom, whether you live in minnesota, washington, or, frankly, london. the implications are far and wide. you have to look at foreign policy, look at what is happening in washington, and, you know, the u.s. officials with the first ones to come into other countries for peaceful transitions. what we saw yesterday will be engraved in our memory, but we will look at the immediate aftermath, the next two weeks, what it will mean, the next two weeks under trump. tom: no question about that, and

some wonderful voices to join us, we are particularly pleased trubowitzessor trueblue will join us. schivino fromress givinr. the white house with a tweet. we thank derek wallbank and our entire mliv team. right now with our first word news in london leigh-ann , gerrans. hi, leigh-ann. leigh-ann: hi, tom. president-elect joe biden has officially been recognized as new president of the united states. the president says he disagrees with the outcome that there will be an orderly transition on

january 20. that follows extraordinary scenes in washington, d.c. yesterday, as a mob of pro-trump supporters stormed the u.s. capitol building. there was chaos as members of congress were seen grabbing gas masks, with many forced to evacuate. president trump's deputy national security advisor has resigned and other top white house officials are considering leaving. sources tell bloomberg mark pottinger was dismayed by the attack on the capitol and the president's incitement of the protesters. his boss, national security advisor robert o'brien, also considered leaving, but we are told he has been persuaded to stay. and the u.s. capitol police fatally shot a woman during the assault on the building by supporters of president trump. it occurred after the mob forced their way in and were attempting to break into the house chamber. three other people died in what were described as separate medical emergencies. global news, 24 hours a day, on air and at bloomberg @quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am leigh-ann gerrans. this is bloomberg.

francine? francine: leigh-ann, thank you so much. joining us this morning to discuss all of the implications of what we watched last night, and again come a reminder, just moments ago, according to president trump, there will be an orderly transition on january 20, but he is no longer in charge of his tweet, as he was mr.ked, but this came from scavino. when you look at the implications for the last two weeks, are we going to see republicans and democrats tried to take this into their own hands? of we going to see some kind protest or impeachment, the 25th amendment? guest: good morning. i do not think we will see impeachment or the 25th amendment. i do not think there is enough time to squeeze impeachment in the next 10 days. i think the democratic

leadership want to focus on the future and not get bogged down in that process. i cannot think the 25th amendment is a viable option. i think we will see greater efforts by mitch mcconnell and other republican leaders to keep donald trump in the box for the next 10 days, 12 days until inauguration and try to keep him sort of more on a leash and, you know, sort of restrain him from continuing to stir up the pot. the statement that they just released from the white house, saying that there will be an orderly transition on january 20, is donald trump clearly continues to keep fighting this. the question being how much republicans can keep them right for the next two weeks until joe biden takes over. you do it like america does it. f you wandered out of princeton and an hellhole countries. how much do we destroy diplomacy

with those fragile frontier nations? well, we have been hurting it over the last four days, but yesterday was a dark day, the model of a democratic nation. i have been to tell you, if we had seen in that country what we saw yesterday in washington, d.c., we would have called together what we would call an emergency action committee. we would consider whether we have to send our children and families back to america to get them out of harm's way, whether we need to call an extra marines to secure the u.s. embassy and the contents thereof. i mean, to see that happening and playing out in the streets of washington, something that we plan for in some of the world for years, is truly -- some of the most third world countries for years, is truly a stain on a democratic and free nation. francine: lew, what does that

mean going forward? is it foreign policy? is this the start of something bigger? is this the end of violence or the beginning of more violence? lew: hopefully joe biden will bring more foreign policy. the difficulty is when the united states questions the results overseas, the election coming up in uganda next week, for example, what happens if the president there tries to steal the election? we can say, and in the past we have really statement and push on allies on leaders who have tried to stay in power illegitimately come another's countries can say, well, your president just tried to do the same thing. who are you to tell us what to do? it makes it harder to be a u.s. diplomat and promote american values overseas after having the president do the kinds of things he did, including inciting that violence yesterday. how will this

actually change the public and party? -- the republican party? lew: it remains to be seen. who planned on objecting to the vote walked back, but some, like josh hawley and ted cruz, moved ahead with it. my guess is that yesterday was a breaking point in that the republican party will not go down that road, and those s, i think, will be last few years. pariahs, and we'll go back to the center rather than destroying the fabric of the nation, as they have been doing for the last few years. breach of the

doors and windows. do you assume that they do that, including the many years, the roundup of the gang? lew: i am not sure what law is thinking at this point. there were so many people on the capital yesterday. i'm not sure they will have the reach versus the time to do that. theink it is really cutting head off the snake, so to speak. if you can address the leadership issue of those mobs, that is the way to go and not try to get every single person who is there. tom: as we left the podium, i do not believe we have the video of it right now, it was a little woman i saw on a tertiary camera on the capital camera, but lulu lukens, it was the president of the senate walking out, mr. pence of indiana with speaker pelosi a california, and they were almost greeted like it was a state of the union address. how does the middle ground of

american politics change here? joe biden ismean, very much at the center, and he will try to find a middle ground. the two senate wins in georgia yesterday were hugely important in enabling joe biden to move his agenda forward in the u.s. congress, but, you know, it remains to be seen whether the republicans are willing to move to the middle. there are certainly some of them that are already there -- mitt romney and senators like that -- who will want to work with joe biden on rebuilding our country after four years of trump and the pandemic and all of that, but clearly there are some republican senators, including people like josh hawley and ted cruz, who see their future as being tied to the trump base and will be more interested in blocking progress, and stirring up trouble, then actually governing. francine: lew, what will be joe biden's first job? power, he hasinto

to try to be president of all. will it disenfranchise a number of americans? lew: well, joe biden's top priority is to try to rebuild our country, so i think what he will do is quickly see a legislative agenda that includes more stimulus, probably more checks to americans who are in need right now, as well as a massive infrastructure project to create jobs, start boosting green and renewable energy in the country. i think his way of rebuilding the country and trying to bring people together will be by rebuilding the economy and trying to sort of bring people out of the desperate times that they have been facing through this pandemic. prof. trubowitz: ambassador, -- tom: ambassador, one final question, if we could. he mentioned the senator from missouri. i go back to lincoln and his speech on mob rule and rule of law, and that speech was about

insurrection and mob riots in st. louis. can you explain to me how wley finds any kind of coalescence -- forget the nation, justin missouri? lew: it is hard to explain them if you josh hawley and ted cruz, who are faux populists, who come from ivy league educations and pretend that they don't, they are making the calculated decision that their political future rides on the ba ck of the trump base, so they are not doing it to help the american people and govern this country, which is what they are supposed to do, they are making decisions for their own political future of, from a very selfish, in my mind, point of view. then, willhat role,

president trump do after january 21? lew: before yesterday, i would have said he would remain a kingmaker in the republican party, and he would set up people to primary against republicans who the felt were not supportive enough to have here he sort of went too far yesterday, i think, in inciting the violence yesterday in the capital, and republicans are already starting to walk away from him, so i think his role in the future of the republic and party will be diminished after his performance yesterday. francine: thank you so much, lew gnumns, senior partner at si global advisors and former advisor to the united states. coming up and we will discuss worldwide and the markets coming up shortly. this is bloomberg. ♪ . this is bloomberg. ♪

pres-elect biden: at this hour, our democracy is under unprecedented assault. not bowonnell: we will to lawlessness or intimidation. >> to those who wreak havoc in our capital today, you did not win. tom: images from the leaders last night. there were also a lot of comments from the non-leaders as well. conor lamb of outside pittsburgh, the centrist democrat, stood up in the house of representatives and said his of people fromt the right pushed back against conor lamb, and it was almost a fistfight, were some of the reports. some of the tension in

washington, it has settled down, if you are tuning in and your exhausted morning. francine lacqua, i can tell you senate the house and processes have ended. vice president pence and speaker pelosi exited from the capital or at least from the floor, as i should say, and we have a president-elect certified. what we want to do with "surveillance" today is to focus of course on the drama and the politics. we have to focus on the pandemic. but there's also the markets, and there has been a real non-correlation here in the last 12 hours. everyone is asking me how the market is doing, they seem separate. peter oppenheimer gives us wisdom this morning, global equity strategist at goldman sachs. peter, were you surprised by the drama and washington? peter: hi, tom. well, i think the focus on the market is very much on the fundamentals and the continuation of growing hopes of a strong inflection point in the

global economy, and really the outcome of the senate election does in some ways to support expecting nowre another fiscal package in the u.s. in the first quarter of around $750 billion. remember, that comes on top of the $900 million or so already approved toward the end of last year. that is going to, in time, trigger quite a strong rebound, not just in the u.s. but in the global economy. we are looking at a 6.4 percent global growth for the u.s. economy this year and 6.5% in real terms for the global economy. we need to kind of growth rate we have not seen at any point since the financial crisis, and that is really what is driving it. tom: peter, the variable for jan is the most elastic part of the equation, business investment, and i am going to call that business confidence, not only in america but worldwide.

was that confidence diminished what we have seen in the last two days? ater: i don't think so, from business, fundamental perspective, because what we are looking for here is the rollout of the vaccine, the potential for that to reopen large parts of the economy, not just in the u.s. but elsewhere that have been clamped down by the ofndemic, and course, as a result of that, high rates of saving grace over part of the world that would thee as a positive over economy. so i think the markets are focused on forward fundamentals in particular. francine: peter, good morning. francine here in london. when you look at the violence that we saw in capitol hill, how can markets be so sure we will not see a lot more of it? i know they are focused on

fundamentals, but this was parliament, this was u.s. that went, and scenes see in a third world country. know, well, again, you the risk assets, which have moved quite a lot higher, have done that. it is a combination of extremely supported policy, both fiscal and monetary policy and the growing prospect of the recovery from what has been a historically deep recession, and that has not diminished by what 24-48e seen in the last hours. if anything, it is likely strength and, because we will see more fiscal expansion. we have seen negative real rates, not just in the u.s., but around the world, and that is driving people into riskier assets, like equities, which are pricing forward for the stronger economic recovery.

i think that is the main focus of investors at the moment, and write it should be, as we move out of this historically large economic downturn. francine: peter, the world was watching. world leaders were watching. how did china take this? the possible impact or belligerence of foreign entities that actually see this as an opportunity to either continue with the trade war or try to meddle in u.s. affairs? peter: well, look, i cannot really comment on the politics could more on the markets, and i think, again, the transition to an administration that is likely to be more engaged in , less andnal affairs the tensions we have seen in terms of trade, is helpful for the backdrops of risk assets.

it is not just the u.s. participating in the economic recovery but europe as well, also seeing significant easing of policy and prospects. less than zero interest rates. and we have seen the strong stimulus in china as well. so i think it is that combination of a coordinated global recovery in the economy and with it in the process what investors are most focused on, and that is also reflected in the way you have seen a rotation in the leadership of markets, in other words, a pickup of emerging markets in europe, more leverage local growth and cyclical value-oriented part of the market. your world how does change with the threatened delisting of stocks of chinese companies by president trump? it seems to be bouncing around. i do not know where we will be in a week or with a biden administration, but how does the international investment

opportunities of goldman sachs asset management change if you need to buy china stocks a different way? peter: well, again, i cannot really comment on that directly. theink that, you know, dominance of technology , a memberspecifically of the market globally in the last decade, is broadening out into other industries, which are more levered to global growth, and of course there has also been a focus on antitrust regulation that u.s. technologies face as well, which has moved somewhat in that direction. it ultimately, you know, think the opportunities for capital markets remain very strong. we have seen an increase numbers of deals and listings, and that has happened in all parts of the world, as confidence in the global economy picks up, supported by extremely

accommodative financial conditions and very low rates. so i think the problem specs are undiminished, really, by the politics. francine: peter, do you think there is a danger that the market is underestimating actually the appetite for the biden admin's ration to go after the technology companies? overestimating how much spending and infrastructure the administration can do when they come in the white house january 20? peter: i think the outcome, as it stands now, is probably conducive to more fiscal expansion, as i described, but probably less in the way of capitalize there's than perhaps suggestions of hopes of the democratic party going into the election. outside of these

fiscal issues, a need for bipartisan support, areas of policy, and that will include antitrust legislation, and in some cases, infrastructure as well. but on the infrastructure site, i think it will be easier to get that bipartisan support for more of theg, given the scale downturn that we have seen in the u.s. economy. and of course that has been true in other areas as well. so i think there will be an ack more spending that is focused on fiscal policy, and also, of course, with this administration, we see a lot more focused on de -carbonization and the green debate, which will be a focus for markets for many years to come. we are already seeing it be a very key area of investor focus in europe, and now that is broadening out to the u.s. and other places as well, and i

think the outcome of the election really supports that. francine: peter, thank you so much for joining us this morning, and on short notice. global equitymer, strategist at goldman sachs. after seeing the front pages of the u.s. papers, how they reacted today, then we really look to the gop and how this will change the party, possibly forever, if not for a very long time. tom: it will be interesting to see. it will be fascinating to see this morning as well, some of the images we saw from yesterday as well. we will have much more on this. we are beginning to see resignations from the white house. we will have that when we return. stay with us from london, from new york, this is bloomberg. ♪ ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london.

tom keene in new york. tom, we have some great guests to come on and talk about capitol hill. let's get straight to first word news with leigh-ann gerrans. leigh-ann: joe biden has formally been recognized by congress as the next president of the united states. it ends two months of failed challenges to the results by his predecessor. president donald trump. in a statement by his dipper to chief of staff, the president said he disagrees with the chiefe -- by his deputy of staff, the president says he disagrees with the outcome. that follows an extra ordinary seen in washington, d.c., as a pro-trump mob stormed the capitol building. there was chaos as members of congress were seen grabbing gas masks with many forced to evacuate. the violent protests have been condemned from all sides. longtime trump opponent senator mitt romney described it as a

"insurrection incited by the president of the united states." former president george bush commented, "this is how election results are disputed in a banana republic." former president barack obama described it as "a moment of great dishonor and shame for our nation." democrats have won control of the u.s. senate for the first time in six years, winning both runoff races in georgia, a stunning result in a state that has not sent a new democratic senator in washington for two decades. victory means the senate has a 50/50 split with incoming vice president kamala harris having a tie-breaking vote. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm 120 countries, leigh-ann gerrans. this is bloomberg. tom? much.hank you so from london, from new york, our continuing coverage of the events in washington.

we are pleased to bring you the editor in chief of bloomberg news, john mickelthwait. what you don't understand, folks, as a cottage industry, his thoughtful books over the years of our politics, economics, and indeed our history. john micklethwait, wonderful to have you with us today. i want to go to your latest efforts, the tome, the wake-up call. call.day was a wake-up who was it a wake-up call for? john: it was mainly a wake-up call for the west, a very sad one. if you go back 10, 15 years ago, the idea that american democracy would ever reach this stage -- i am someone who covered the bush/gore problems in florida back then. we thought that was about as extreme as it would get, but it seems much more kind of normal and basic. everything you just read out on andnews with mitt romney

barack obama is true. i think you look at many people around the world, especially in america, i think it is a shameful moment from that point of view. i think it is a wake-up call. where if you are going to fix government and start sorting out the things that go wrong in the united states, this gives you a real prompt to do it because the big winner from this at the moment is the more autocratic regimes around the world who have always told people -- china is the obvious 1 -- have always told people that american democracy is a bit of a sham. tom: john, you nailed this in the beginning of your books, talking about the johnsonian sense of confidence in the 1960's. it was my childhood here in america. trump ascended on the crash of that economic self-confidence. the solution here is to give a huge part of america, who is

disaffected, some form of hope and interior confidence. how do we do that in the next four years? john: i think the answer is you have to base something slightly more solidly in facts. like other forms of populism are on the world, the worst thing people from the establishment can ever do is to deride the causes of it. there, the people out deplorable as the things they were doing yesterday, still feel as if they have been left behind , that america is not a place that is looking after their interests. and i think it is very much in joe biden's because -- and in this respect, joe biden is someone who is not a bad representative -- to try to bring america together. america has always had divisions, but they did not used to be like this. and somebody has to say enough. one interesting thing, some of

the republican senators who were talking about different ways of opposing the election and so on, a lot of those have withdrawn. lindsey graham said that's enough, i've come this far, but this is too far. i think one of the possible gains of the republican party from this is that the republican party -- notwithstanding what just happened in the senate race in georgia -- actually had quite a good result in november. it was donald trump who didn't. republicans did quite well. the danger was that in terms of reuniting the right from the conservative point of view, that donald trump would be a great distraction, or maybe what has happened, the past couple of days will get the republicans a chance to create a kind of post from conservatism. whatever your own personal views, that is not necessarily a bad thing. sometimes out of these cathartic

moments, these things come which are good. francine: what happens to donald trump after january 20? if he breaks away from the republicans, could he even be more disruptive by forming another party? the: the history of third-party trying to do it is not a good one, but the answer is, that is what happens and has happened in many other countries, and america has already's -- has always resisted that. moreess is that he becomes of a provocatuer, perhaps through the media than through direct all attacks. if nothing else, this shows the power of what donald trump represents to a portion of america. that is still something that is there, in the way he has not conceded gracefully, i think, would be that something outside

seems rather childish, even though i technically disagree with the outcome of the election. presidents used to say things like that. francine: if you look at the way that the police handled some of the protesters, how does joe biden actually unite the country? it is very different to what we saw during the black lives matter situation. john: the answer is there has to be a change. in the history of politics and the history of the way in which these great sort of happen,es and politics you have had several events the past year. you have had america transparently being pretty awful, having everything to do with covid, coupled with the bravery of doctors, and britain, which has been good on the

vaccines -- that has been a shameful part of america's history. you have a bad election which was fought in a way that i thought many people did not admire. and now you have this. all of those things are bad in and of themselves, that they can also be a cathartic moment to wake up, i suppose, because the world is changing. most of america is going to its internal problems. the rest of the world is moving in other directions. the most obvious place again is asia. asia on a whole has dealt with covid much better. you will not see a shortage of self-confidence from china and places like that at the same time. the big question behind all this is whether people look at the past 24 hours and say that was a moment america really lost it. that really is the challenge to joe biden, to say, no, this is

the beginning of america renewing itself as it has done in the past. tom: one final question if i could, and this is really, really important, folks. john micklethwait alludes to it right now. daniel patrick moynihan talked about what government can do and what it cannot do. 10 years later off of what moynahan said, we had the reagan locke-iann and the philosophy. did reaganism die yesterday? john: i think there is a big difference between reaganism and trumpism. reaganism had a sunny optimism, trumpism has a feeling of being left hind in a world turned bad. trumpism is much darker. the need to find people like daniel patrick moynihan -- here was a democrat who republicans turned to. he was a democrat that republicans looked to as a

leader. he was prepared to cross boundaries. people like john mccain -- there is a shortage of those at the moment. joe biden has a little bit of history in this. he is someone who i think could at least try to fulfill that role. the argument of reaching out more toward the center, that this is an element of america both to dealer, with internal problems and to do with external competition on a it hashat is not -- that not faced for a very long time. francine: how does wall street reconcile with supporting of thent trump because policies, that they saw on capitol hill and reaction of the present yesterday? john: i don't think anyone is rushing to applaud what donald trump was doing yesterday. motives --l street's

with a like about trump is the deregulatory side, reducing taxes. the things they don't like are the carnage, very few business people like that. they don't like the anti-trade things. about they are frightened on two counts. one is some policies they regard waiting left wing, that we to see what happens on that. secondly, there is a slight element of people that think that biden is a vote for the status quo, somebody who is not going to change things, not changing american government in the way that it needs to be changed. i think biden can show that he is a little bit different. i think there is an advantage, that being as old as biden is, he will not have that much time to make a big difference in this country, and now is his chance. editor-in-chief of

bloomberg news, john micklethwait, a short, brilliant read on the sprawl of history in the western world. the wake-up call. we have a sterling set of guests for conversation on this historic thursday morning. ian bremmer has been kind enough ofreturn after his top risks eurasia group. ian bremmer in two hours. stay with us. with futures up 16, this is bloomberg. ♪

francine: this is "bloomberg surveillance." we continue discussing what happened on capitol hill, the repercussions, and we look on words to the next 14 days. inaugurationat the

and what that could mean for the stability of the country. senioret to the political analysts. there is so many angles and questions on the repercussions days, months, years to come. what is the thing you will be focusing on january 7? theset we know is that sort of benchmark moments in the electoral process -- election day, vote counting day, certification day, inauguration day january 20 -- they tend to be vocal points -- focal points for violence. when you add to that perceptions of electoral fraud, the narrative of electoral fraud, un-of driver of violence, we see what we saw yesterday, which by all accounts for any of our lifetime was absolutely shocking but in many ways was the result of pulling on that narrative thread of election integrity and

illegitimacy that we have seen the last couple of months. we have the statement now from president trump saying that he acknowledges there will be an orderly transition on january thebut he still disputes outcome of the election. 74 million people voted for him. what happens to them? only a small segment of them showed up on the capitol. at 74 million people voted for trump to be reelected in november, for another term. how does joe biden bring the country back together when he is facing both internal democratic party tensions but also we see the republican party in transition. it is a tall order for incoming president biden. what is joe biden's number one priority? does he need to make sure that president trump understands that

-- this unique -- >> joe biden will be moving on to policy and the number one policy for president biden is of course the coronavirus, bringing the country out of the coronavirus, moving forward on an, recovery. when you look internationally, he wants to bring a global summit of democracy. that is his first order of business. he will face difficult questions when he meets with other partners and allies around the world about u.s. resiliency and the unity of the political structure, the political system at home. tom: i want to go back to the balance, and i'm sure you great atrom one of our yale years ago -- we are talking about the republicans, but i am more fascinated by what the with conor lamb of pittsburgh last night standing up last night and saying calm

down and let's move to the middle. did we really move to the middle last night? is that what occurred? >> the progressive wing of the democratic party will have more to say about that obviously. they are not going away. strength in numbers in 2018, and again in 2020. so there will definitely be this interest in uniting the country, bringing the left and right, republicans and democrats, together, but i for one don't think the divisions, the interparty divisions that were so difficult and challenging for biden and during the democratic primary have gone away. he will continue to have to sort of account on policy and on nominations and on the judiciary going forward. yesterday, andw

what is so important, going on and off the cameras of capitol , senatorcy pelosi the middle ground as we elected joe biden -- i am fascinated by the return to what we knew, what hubert humphrey and scoop jackson and others -- is that may be the great surprise over the next two years? lindsay: what we saw after 2008 when republican sort of fell out of power was a reorientation toward the right wing of the party and the tea party. will that happen again? will they break off? i for one don't think trump is starting a third party. i think his future is more in media and potential talk around 2024. but what yesterday showed was perhaps it got way too far for

everybody. that is what we saw when the certification process -- we saw seven senators who said they were going to challenge the vote in pennsylvania and arizona, rethinking it. yesterday was shocking, the optics of it, happening in real time for the whole world to see, with prime ministers and leaders around the world commenting on it. it was a shocking turn of events , and a collective sense that this has gone way too far, let's come back to the middle, reach across the aisle and there is momentum for biden going forward to build off of that. and to say i am going to be the one, as he has done, for say again, i am going to be the one who carries this forward and unites the country. francine: what exactly happens to the republican party e? lindsay: it is the million-dollar question. the republican party, despite

the senators having a re-think, half of the republican senators still voted against the arizona certification, and pennsylvania. there are clear warning signs, clear indicators that mitch mcconnell in the senate and mccarthy in the house in fact was one of those individuals who voted against certification. it is ae a long list -- big job to figure out what direction they are going to go in opposition. this is a major shift in the balance of power. we haven't mentioned georgia. georgia's election results yesterday mean that for the first time the democrats are going to hold the executive and legislative branches for the first time in 10 some years. the republicans are going to have to figure out how to be a party in opposition. but we have to remember they have this insurance policy in the judiciary. donald trump and mcconnell were able to impanel, to nominate and secure hundreds of judges at the national and local level, and of

course at the supreme court. that is a bit of an insurance policy for the republicans, and we can expect to see about judicial court level action challenging biden's have a policy agenda going forward. francine: thank you so much. lindsay newman. with what we saw the last couple of days, what does it mean for the markets going forward? joining us now is a global market strategist at j.p. morgan asset management. tom hit the nail on the head at the start of the program, saying why is there such a difference, a detachment from the markets with what we saw on capitol hill yesterday? >> good morning. i think when you look at how the markets are behaving, they are focused absolutely on forward-looking policy. they are looking at the results from the georgia senate races yesterday, and frankly upgrading

near-term growth expectations on a view that you are going to get fiscal stimulus coming through again at the start of president-elect biden's term, so clearly things that we have seen overnight are deeply saddening on a personal point of view, but for the markets the focus is absolutely on policy, and frankly if you're upgrading your new term growth expectations, then i think the moves we have seen in the markets over the past day or two have really followed the playbook that we would expect in terms of higher nominal bond yields, government run yield curves, and that follows through in an equity market in a fairly classic fashion. giving up some of those gains. francine: how can this not impact policy? given the extent of what we have seen, how does this not change the tone of the biden administration? hugh: i think it will influence the tone, but at the margin, biden administration is looking

to heal some of the divisions across the u.s. population, and that will translate into a stronger desire to get fiscal stimulus done quickly. you could be looking at a third round of stimulus checks as one of the potential focuses come , more funding for state and local elections as well. politically, clearly these are extremely significant times, but again when you're looking at how the markets are behaving, it has to be viewed through a forward-looking policy stop tom: too short a visit right now, but in the strategy of the year, and we are seeing mixing politics and economics, the dollar call, so many people calling for a magnitude weak dollar moves. do you see that? hugh: the dollar call and the context of yesterday is really

hard to discern. with higher nominal bond yields, it should be working in the favor of the dollar, but at the same time you have to factor in the consequences for the u.s. deficit as well. i frankly wouldn't be reading too much into the news flow over the last 24 hours, or the outlook for the dollar. i would put that primarily toward the broad risk on, risk off trading dynamic we have had influencing currency markets over the past six to 12 months or so. so on the basis that you are looking at a much stronger economic recovery around the world, particularly as we move into the second half of the year, i wouldn't see that as supporting for this modestly weakening dollar trend. tom: too short of a trend, hugh gimber. we welcome you all in from london and new york. keeping the markets in view as we look at the historic moments in washington. francine, we are going to move forward. what will you be looking for as

we move through the american morning? francine: i'm surprised that we talk on policy as completely being removed to what we saw on capitol hill, john mickelthwait talking about china was right. if you are a foreign leader in , you look at d.c. and you see it as an opportunity of being given more weight internationally. i think the repercussions should not be underestimated in the markets are taking a little too much in their stride. tom: in search of a sunrise in washington, stay with us. this is bloomberg. ian bremmer coming up. ♪

francine: joe biden's

presidential victory certified by congress after -- hours after pro trump protesters swarmed the capital. -- stormed the capital. one woman was shot by police and died amid the violence. there was shot at the scene amid white house resignations. mike pence split with trump, calling for protesters to be prosecuted. yieldse chaos, treasury climb on reflation hopes after the democrats are in control of the senate. good morning, everyone, it is thursday, january 7. it feels like a long week. i'm francine lacqua in london. tom keene in new york. there are a number of angles i need to bring up having to do with capitol hill. we will spend a lot of this hour talking about u.s. exceptionalism and with it we have come to the end of that. markets could be underestimating the longer-term repercussions of it all. tom: that is what we are going to do, taking the res