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 resources of

bloomberg news. i want to go back to your opening there. we have forgotten that there was a death, a murder, a shooting yesterday on capitol hill. this goes back to the history of washington. this is seared into the memory of washington institutions, the truman assassination attempt of 60, 70 years ago, attempts made all the way back to the war of 1812, and the true attack on the capitol by the british. all of these are touch points that give us perspective on what we observed yesterday. francine: and remember, we all lived through this with live television and live -- tom: absolutely, the immediacy was extraordinary. francine: and with a couple of hours sleep in washington, it is a new dawn and it is interesting to see what is said and done. let's get to first word news with ritika gupta. ritika: sticking with that story

come after an extraordinary day on capitol hill, president is promising and ordinarily -- an orderly transition. minutes later, one of the president's aides tweeted out a statement from him. the president said, "even though i totally disagree with the outcome of the election, nevertheless there will be an orderly transition on january 20 meanwhile, they are taking no chances around the capital today. some 1100 national guard troops have been deployed around the building. the capitol police force was overwhelmed by a mob of trump supporters who stormed to the building. it was an unprecedented breach of security and it forced the evacuation of vice president mike pence and members of the house and senate. the violence at the capitol by president trump supporters lead to a wave of republican criticism that suggests that party members may try to distance themselves from the president as he leaves office.

cotton, a longtime trump ally, said it is time for him to accept the results of the election, quit misleading the american people, and put an end to mob violence. boris johnson vowing to/rules on the wake of exit. -- of brexit. he was on a call with 250 business leaders. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm ritikauntries, gupta. this is bloomberg. tom: we greatly appreciate that. let's do a data check here. our theme is on american history, and other world events as well. eta intrudes. futures up 17 -- data intrudes. futures up 17. into 23.36 on a much better tone to the market.

the yield and the 10 year, i cannot believe my eyes. 1.05%. -- the key point here, francine, not to turn it into a data exercise, the real yield has improved. up -- thatmal yield is nominal yield up. with it inflation expectations up. francine: there are two data points, treasury points hover above the closely watched 1% level, and bitcoin receiving this record-breaking rally. amazing that global markets are showing resilience after a day of violence at the u.s. capitol. on thers are focusing economic stimulus, the that joe biden takes the presidency, but we also talk about what it means for the future standing of the u.s. and what he could mean for trade and also foreign policy. coveragee continue our

with some wonderful guests coming up, dr. bremmer will join us later on. professor tribble which will join us as well from the london school of economics. schenker, what did you know yesterday that was not shown? martin: one of the things that people should be aware of is that the shots of the self portico showed infrastructure and people have to remember, just a handful of days, that is where joe biden is going to be inaugurated president of the united states, and it will present another security issue for washington when that day comes. to january 20. we see at midnight last night, matthew pottinger of the white house resigning, and a sterling career. he just said enough.

lindsey graham said enough as well. do you see an exit from the white house before the inauguration? martin: i think it is convenient to leak that you are considering quitting, so you hope that that will get you to the higher moral ground, and it is sort of like the beginning of the trump administration, where there were reports of people staying there because they thought they were protecting the country, rather than protecting donald trump. so there are those competing issues. there are only 14 days left, and there will be more defections, and especially donald trump if he gets his twitter account back. expected.is i believe it is a 12 hour gap. we will see it there. francine: he gets it back after what he posted yesterday. marty, what will january 6, 2021, be in the history books in the u.s.? is it a new republican party? is it the making of donald trump and something else?

what will we look back on yesterday as the ec? thann: it is hard in less 24 hours to put in context what it will look like 10 years, 20 years from now? one of the congressmen called it -- as chuck schumer called it, a day of infamy, and i don't think that is an overstatement. i think people will look back at this as a truly dark day in american history. whether or not it represents a change in the political landscape, i could not sit here and tell you that it will. there have been other incidents that you would think would unify america, and they never really did. does this mean for american exceptionalism? i know we have a wonderful team of government reporters looking on this. is it an inflection point? martin: it could very well be, but to use this incident as a starting off point for disputes

over that issue would be wrong. i mean, there have been over a decade, questions about whether america is the shining city on it hill, and whether or not is an exemplar from every country around the world to copy. theainly our adversaries, u.s. adversaries abused it against us -- have used it against us. these images from yesterday certainly will challenge that notion. brought this up earlier, awley,is is senator h the speech about riots in st. louis. is senator hawley referring to a trumpian base and forgetting abut a huge body of america that simply doesn't agree? statee risk losing his

over his stridency with the president? martin: it is quite possible. the front page of the local newspaper basically said that wley had blood on his hands. there are local forces that are very much opposed to his views, and just like donald trump's rhetoric, it is really questionable just how enduring this kind of stridency is. we will obviously -- joe biden has promised to try and bring this country together, and that is what he's up against. sleep, igot an hour got an hours sleep, what will you look for in washington this morning? think what happened yesterday come you have stages. the first stage is grief and shock. but over the next 24 hours there will be some pretty angry people asking questions, seeking answers to just how this

happened yesterday. thank you soty, much, chief content officer marty schenker. talking about what this means for the republican party on inauguration day is peter trubowitz, the london school of economics professor of international relations. as we try and take stock of what happened yesterday, the shocking images that came out of capitol the, do you look to domestic issues of what this means for the inauguration, what it means for the biden administration, or do you go to foreign policy for having a bigger impact? would sayrancine, i the most important thing right now is for the country to get certification of joe biden's election to his inauguration on january 20. there is still too much risk that president trump may still try to invoke the 1807

insurrection act or something else. this is why you are seeing all these reports of high-level discussions about invoking the 25th amendment to remove him from office and also calls for impeaching and removing him immediately. there are conservative columnists calling for this, there are obviously liberal columnists calling for it and you can also hear it on capitol hill. this is where the president of the united states has brought the country. francine: peter, what is the real chance of an impeachment or the 25th amendment? does it energize his base if something were to happen? ther: i think that likelihood that the 25th amendment is going to be invoked or that he is going to be impeached and removed is low, but i think what is important at

this moment is that republicans their big boy put and big girl pants on and condemn the president, and condemn the president's efforts to provoke the attack on the capitol. that is important domestically, and that is important internationally. it will send a signal to the , to borrow germany's angela merkel's phrase i think within the last hour, that the united states will open a new chapter of democracy. people need to step up. some, but not it enough i think. and what happened yesterday -- i mean, america's international standing, if you want to focus on that, took a big heat yesterday -- a big hit yesterday. it is going to take a hell of a lot for joe biden -- it is already on the top of his two-do

list, but yesterday's shameful events underscore the urgency and i think the difficulty of the task that is before him. go ahead. and thank youing so much for joining us. to your iconicck work at the university of texas at austin. a decade ago your book on politics and strategy. can you explain the politics and strategy of texan ted cruz? peter: no. yes, i can. ted cruz, you mentioned josh hawley a few minutes ago, who was just hammered by his local newspaper. on 20folks are focused 24. they are hoping that donald trump is not going to run for reelection, and they believe that the only way to get the nomination is to run very hard to the right, so they can move back toward the proverbial

center, whatever that is. tom: is that feasible? i don't mean to her interrupt, sir, but this was standard operating procedure when you and i were kids. does that work in a post trump america? sayr: it is very hard to here, tom. i would like to think that they have that wrong, that there are too many republicans in the suburbs who are looking at what happened yesterday and saying, you know, i'm really glad that i voted for joe biden, and i'm fed up. so this is the problem. but there are plenty of republicans that are still out there -- there are plenty in the party that this will appeal to. that is their bet. you ask what the calculation is, a narrow instrumental self political calculation. -- self political calculation.

don't take it from me. politicalterested calculation. don't take it from me. mitt romney said the same. francine: coming up next, kit juckes is coming up shortly, and this is bloomberg. ♪

mr. biden: at this hour, our democracy is under unprecedented assault. mcconnell: we will not bow.

they did not win. tom: condemning the violence -- francine: condemning the violence that we saw on capitol hill yesterday. we also know that donald trump's twitter feed will be reactivated. if you look at when it was deactivated, we are almost at the 12 hours. i don't know whether the president will start tweeting or not, but for the moment we have had a couple of statements from the president. read those. then though i disagree with -- tom: it is a sea change. i will say that we are focused on the markets and what it means . what we should be focused on, as marty schenker just spoke about, what are we going to hear this morning from exhausted

washington, both domestically and internationally? juice. it is -- kit juckes. there is the vote every day on the united states dollar. what does the currency do of a nation under political shock? : any other currency it goes down, but in the case of the dollar, we still think it is at the heart of the global financial system. as long as we are genuinely worried about turmoil and uncertainty, it will probably get stronger. over the course of the next few days, it might get stronger until the handover does happen and we get to january 21. look at the exorbitant privilege of the dollar, late last year in france, kit juckes,

if i look at the exorbitant privilege, it is about flows of money. observe what has occurred with the dollar, with his dollar weakness. describe the flows of the recent dollar weakness. kit: so the flows of dollar weakness at the moment are i think largely the collapse of ,.s. real interest rates reduced the appetite naturally of foreign investors come of u.s. bonds in particular, and the optimism about the vaccine seen at increased appetite to buy cheaper equities in europe or in the united kingdom, and in emerging markets in recent months. so the dollar has weakened because a big current account deficit is exporting more capital and importing less capital to finance it, and the price has to adjust. add to that a big speculative short dollar position that fills up in recent months. francine: i just want to go back

to how the market is perceiving the events of yesterday. you still have a number of also republicans voting against the election results. how can there not be more of an impact on the market? what are they not seeing h? kit: there is an assumption with markets that we make it through inauguration, that markets will pay less attention in terms of price moves and something else. american democracy is huge. faithuld shape that -- orn now and the 21st the 20th, and the reaction orterday is the rise of 10 30 yields in the united states. rotation in the equity market, and to the first kind of questioning with the fomc

minutes of when the fed might start normalizing. that is all kind of business as is gawking everyone about what is happening in washington but not factoring it in. they think that the system will rally around and will get through this towards maintaining democracy in the world's leading democratic economy. the question is how much can you shake that in the next few days? francine: thank you so much, kit juckes stays with us. way forwardt the for the republican party. howard dean, former dnc chair, joins us. that is 6:00 a.m. in new york,

tom: at 3:44 this morning, there was no question the president of the senate, the vice president of the united states, gaveled down on the certification of president-elect joe biden. we move on with the markets at hand, removed from what we see in washington. futures up 17, dow futures up 93. we continue our conversation, ian bremmer to joins us -- to join us. this is bloomberg. good morning. ♪

>> the votes for president of the united states are as follows. joseph biden of the state of

delaware has received 306 votes. donald trump from the state of florida has received 232 votes. the announcement of the state of the vote, by the president of the senate shall be deemed a sufficient declaration of the persons elected president and vice president of the united states. ,om: lee gentleman from indiana with 31 tie votes. we will see that of course with vice president harris in the coming years, but vice president pence in the 3:00 hour of this washington morning, finishing the certification at capitol hill. francine, an extraordinary moment. with themarkets, up -- markets, futures up 15. francine: let's get back to kit

juckes. you don't believe the scenes we saw from capitol hill will have a huge impact on the dollar. does it have an impact on american exceptionalism? h in markets' fait american exceptionalism and democracy is strong. it is not shaken, it is stirred a little bit. if the u.s. can get through this in good order and reasonably quickly, then i think we will just put it behind us. will., i just hope it then we continue focusing on what we have been, which is vaccines, the fed commitment to low rates, the prospect of a reshaped -- of a v-shaped economic recovery and hopefully behind the scenes, american democracy will get an architectural repair as well. i would remain optimistic that we will get back to business as

normal pretty soon. francine: if you were a chinese leader, how do you look at what you saw in the u.s., and does it change the way you want to interact with the u.s.? could you see an impact on their enemy -- on the renminbi? it probably has a political impact in terms of what they believe about our belief in our butdemocratic processes, they are looking at it and the big thing for beijing in terms of the yuan is that the chinese authorities have let the dollar strengthen and i expect they are bringing that to an end. they don't want their currency to get any stronger and they don't think anyone is going to criticize, if they prevent its

strengthening any further. tom: a question i have not asked in ages and i think it was on a chart of the euro. in the swirl of the moment, how is global trade? kit: remarkably good. when we measure trade, we measure goods traded and it has done much better than people thought at the beginning of the pandemic. i'm sitting at home with cameras, imported lights. we trade -- the trade in goods did very well in the chinese did spectacularly well last year. what this year will be about is how fast can we get trade in services which might be getting back on a plane and going somewhere nice, because that is what we didn't get a lot of last year. look at what happened in terms of other big trading companies. you are one of the

great synthesizers that we speak to. how do you dovetail in terribly a protest we saw in washington yesterday? kit: there is a piece of long-term rebuilding that needs to be done, where you need to take everybody with you to a sufficient degree. you can't have strong gains and growth for some and leave lots of other people behind because that gets really disturbing. we are going to come back at some point, and question the belief that monetary policy has no response ability for economic inequality -- has no responsibility for economic inequality. we are going to have to come back to that in due course. i don't know that it is get or

even policy relevant in the months ahead, but i do think you need to bring the whole economy with you in a modern democracy. tom: kit, thank you so much. markets with the us, from societe generale. i have not done a data check in a while. we are so focused on what is going on in washington and the news flow. we have not seen the president yet, back on twitter. am i right on that? francine: you are right, we haven't. there was a ban for 12 hours because the president refused to remove a tweet deemed offensive by twitter. it is about now that the president could, if he wanted, start tweeting again. tom: the 10 year yield, 1.05%. futures up 17.

with our "first word news," here is ritika gupta. ritika: congress has made it official, joe biden will be the next president of the united states. after a mob of trump supporters stormed the capital, the congress reconvened and -- the president posted a message on twitter. the president said quote, even though i totally disagree with the outcome of the election and will be anhere orderly transition on january 20. earlier, the u.s. capitol police were caught unprepared by the mob of pro-trump extremists. rioters breached the barricade set up by the undermanned police force and swarmed the capital. that led to the evacuation of vice president mike pence and members of the house and senate. unparalleled in modern times. police shot and killed one woman inside the capital.

u.s. health officials are acknowledging the immunization rollout has been slower than expected. they are encouraging states to start vaccinating people more widely to not waste shots. alex azar blames the sluggish start on the introduction of the vaccine around the holiday. he also pointed the finger at overly detailed estate plans. facebook and twitter have suspended president trump's accounts after he encouraged and supported rioters at the capital. twitter told the president to delete three tweets or else he would face an extended ban. facebook band the presidents page for 24 hours. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by over 2700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. francine: thank you so much. looking ae continue

capitol hill and the repercussions for the democrat party. we look at the decision on the senate and we look at the future for the republicans. that is coming up shortly. this is bloomberg. ♪

>> at this hour, our democracy is under unprecedented assault. unlike anything we have seen in modern times. an assault on the citadel of liberty. >> but you have to go home now. we have to have peace. we have to have law and order. we have to respect our great people in law and order. we don't want anybody hurt.

it is a very tough time. tom: the president and the president-elect, speaking within the swirl of emotion in washington. joining us, someone who has given us wonderful perspective over this election cycle, leslie vinjamuri. dr. vinjamuri, i want to go back to the title. they gave her all of these fancy titles. the world is in disorder, and the president will have to respond to that today. what will you listen for or look for from president trump? dr. vinjamuri: we've heard from president trump. he put that message out, saying we needed to accept the results, that there needed to be an orderly transition, but the fight would continue. when we listen to this president, and i'm certainly hoping we won't have to listen a whole lot longer, when we listen

to this president, we are listening to see how any different audiences he is speaking to in a single sentence. he manages to say just enough to make him moderately legitimate, and that is getting really tough, while still sending dog whistles and signals to that very slim hard-core base, that is willing to violate the most basic norms of our democracy. we saw that last night. that is not emblematic of even all of his base. that is a minority of thugs and extremists that were willing to take it far beyond what most republican voters and most of donald trump's base. tom: i stand corrected if i am wrong but the bottom line is that they listened to a speech by the president, walked down the path to the capital and then we saw what we saw. what is the process in america that you look for, to find

whatever justice is and find a forward path to say, 2025? killing -- addte -- how do we execute healing? dr. vinjamuri: we had begun to see a very -- a number of very prominent republicans in very prominent secretaries of defense , 170 business leaders, mitch mcconnell making that extraordinary speech, just within the hour before the storming of the capital, lindsey graham, any number of people we have looked to who supported donald trump now saying enough is enough and we have to look forward and accept the electoral result. we have to protect america's democracy. the first thing is, how many leaders across all sectors of american society but especially in congress in the u.s. senate will stand up and call out the president for the words he uses to mobilize a very destructive

type of politics in the united states was to mark the second thing is going to be formal investigations and arrests and prosecution and trials of those who violated flagrantly, the law of the land and invaded the n did such damage to the offices of many members of congress, -- invaded and did such damage to the offices of many members of congress. then there will be a reckoning, a broader process. i imagine when president biden is elected, he will put together a commission and there will be some sort of public process. francine: leslie, how does the republican party change after this? does it change? does it repeat -- does it repudiate trump? dr. vinjamuri: what we see is that there is no coherent republican at the moment. there is a josh hawley and others wing type of group.

mitch mcconnell and lindsey graham, who were the greatest supporters of the president, now sort of trying to peel off some sort of moderate right wing elements of the party. never trumpers who will come back and be active again. there are those who will just stand up and say enough is enough. this is going to mean one of the most extort -- this is going to be one of the most extraordinary stories to watch. they are not the majority party in the senate which should have been the big news of yesterday. both seats of georgia went to democrats. they hold a very thin majority with that tie-breaking vote of vice president kamala harris. that was the big story of yesterday, totally eclipsed. frankly, we know that donald trump is good at clip seeing the news that he does not want to get attention, never more so

than yesterday in washington. francine: how many people in the u.s. thank -- think the election how does the biden administration deal with that? dr. vinjamuri: the polls demonstrate, they suggest that there is a very significant percentage of republican voters who do not believe in the credibility of the electoral result. there is a lot to be broken down. does that mode -- does that mean they don't believe in mail-in ballot thing or that signatures were counted? of shifting terms public attitude and bringing people back together, a headline percentage does not tell us as much as we need to know. when you drill down, there are a lot of people. trump is not sitting in the white house demanding the

same attention that he has for four years. tom: dr. vinjamuri, a really smart guy on twitter just tweeted me and said tom, you are a clown because what this is is terrorism. he mentions there was a pipe bomb found. abc had a photograph of that. betweene difference insurrection and terror. dr. vinjamuri: first of all, thank you to the person that tweeted to you because it is so important to get this message across. democracy iso say over. democracy has always been challenged and not least in the u.s., by far right white that looked to me that most in that camp yesterday were, and terrorism, it is the use of violence for a political purpose. it clearly looks like it falls in that camp. one half of the investigation

has yet to take place. we are watching some parts and not others, as viewers of the media covering it, but it looks like it is more than just a violent protest, that it is an effort to unseat electoral result. it looks like there were elements of terrorism, the use of violence for a political purpose, but there were interviews of other people who turned up for the protest who said i was there peacefully, i was there because i contest the results, but i did not agree with the people who stormed the capital. even amongst all those crowds, this huge diversions in hue -- in public attitude, and the mass majority of americans, republicans and democrats, will simply not be on the side of those who barreled their way into the capital, broke the windows, stormed the offices of those members of congress. tom: dr. vinjamuri, thank you so

much for joining us on this morning, with chatham house in london and the u.s. and the americas program. futures up. the vix gives us a better take, clearly removed from what we saw. is higher overld the last 24 hours. coming up, ian bremmer will join us. howard dean is scheduled to be with us as well. dean, hisf howard fellow democrat, kristi houlihan will join us from the state of pennsylvania. this is bloomberg, good morning. ♪

tom: bloomberg surveillance from london and new york. an extraordinary 24 hours in the united states of america. right now, francine and i want to take a few moments with the director of europe at eurasia group. that reaches to istanbul and turkey. a new administration.

what would you expect of a change from trump to biden, with mr. erdogan? >> it will be a more challenging relationship, tom. be morell definitely interested in democratic backsliding and bringing a nato ally back into the western fold, but he will also be much tougher liketrump was on issues sanctions busting. expect washington to try andy step -- a reset, appointments highlight the challenges we will see, going forward, toward the later end of the year. francine: emre, what does this

actually mean for the standing of the u.s. in the world? we talk about u.s. exceptionalism. does it matter and does it change the relationship between the middle east and the u.s.? emre: it is going to be interesting, especially in light of what we are seeing overnight in washington. turkish officials like many european officials were quick to take the statement calling for u.s.and the people of the to respect the outcome of the election results. this seems very much like trolling for lots of people and was a little odd coming from lacky, but it shows what a of u.s. leadership on the global stage means, and one of the main tenants of that is it opens the stage for regional actors and other powers to exert their influence and assertiveness on

the global stage, and turkey is no exception to this. massivelybenefited from trump's withdrawal in the middle east, to expand their africace to northern with military interventions and so forth. biden would be unlikely to allow such transgressions, but given the domestic focus that the biden administration is likely to have, that might prove difficult. tom: emre, too short of a visit. we will have to do it again. emre peker of eurasia group. thatine, i noted yesterday many voices out of the united kingdom and what we observed in washington. what was your treatment, anna edwards? francine: i would note that prime minister johnson is close to donald trump so a lot of people are waiting to see how he would treat it.

he tweeted 15 minutes after the opposition party leader in condemning the mob that entered capitol hill, but mr. johnson, the prime ministers saying it is now vital that there should be a peaceful and orderly transfer of power. i have to say, a lot of these messages from world leaders were pretty quick to follow. but it was the opposition leader tweeted something first. tom: dr. howard dean will join us, the democratic party and all of his history with vermont. ian bremmer will join us. as well, stephen roach will join us with an aggressive call on a weak dollar. this is bloomberg. ♪

and an was a late night

early morning in washington. harsh words between the heart -- the word -- the gentleman from maryland and texas. this as the gentleman from pittsburgh said that republicans "stripped this congress of its dignity." president-elect biden is certified. for a moment there was mob rule. the gentleman from utah calls it an insurrection in the nation awaits a response from the president as the president-elect calls for the restoration of democracy, decency, honor, and respect. "bloomberg surveillance" from new york and london. in the last 24 hours these extraordinary events pushing aside so much of the news flow. as you and i and all of our bloomberg reporting have noted, the markets are looking forward to a biden administration. and we are seeing little reaction