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power amid resignations and calls for his early removal. in the u.s. is expected to surpass 400,000 virus deaths by inauguration day. this as the u.k. imposes mandatory covid tests for all visitors. let's take a look at what we've got in terms of the market reactions today. it looks like this is a market that wants to continue to rally. really, no matter where you look , you've got the msci asia 5%, so gaining one point asian markets are continuing what we saw in the u.s. yesterday. s&p futures are up, as well, so it looks like the u.s. is set for another climb higher. we do have the jobs report out, but in this kind of market, it seems like we'll try and twist any results we get into something positive for stocks. 10-year gilts continue to march higher. investors feel comfortable enough to let go, almost 1.1%.

the incoming administration and the democrat led senate has increased expectations for a larger deficit and higher inflation. joining us to discuss is bloomberg's dani burger. there are expectations yields will go higher from here. dani: there definitely are. it sits neatly into this blue wave narrative we been discussing since the georgia election results. expectations are as high as 2%. we've had speakers who say they are comfortable with yields moving higher, they say to prepare for higher yields. what we can likely see is you get more physical activism that leads to higher deficit spending and these sorts of things, which contribute to these higher yields. the combination treasury. yellen

the coronation between the two will likely increase expectations for easing of monetary policy, but more spending in general. with a close split in the senate, the expectations turning from reflation to inflation hinge on what moderate democrats to. they have more power now given the 50/50 split. whether or not they let biden policy through is crucial here. quants, in terms of technical levels here, they have begun to sell treasuries according to nomura. if u.s. 10 year yield hit 1.1%, which they are extremely close to, he says we can seek wants turning short -- see quants turning short. it definitely looks at higher shorts. matt: what kind of spillover can we expect for other assets? are: well, growth assets ones we need to watch if we have

higher inflation expectations. that means the value of cash is lower in these growth stocks hinge on that future cash flow. so, those could take a beating. we didn't see that yesterday with the surge in tech stocks, but earlier we had. it's going to be a push and pull in terms of what's more important, growth when it comes to risk asset, or is more regulation going to be what's important for growth stocks and other stocks, and that be what takes them down? em currencies have gone down. there are a lot of spillover effects. matt: dani, thanks very much. she'll continue to watch it. we're getting headlines from credit suisse, the swiss bank expects to report a net loss in the fourth quarter of 2020. credit suisse also looking at revenue that will grow 15% in the fourth quarter. that's a year-over-year figure. so we're getting some credit

suisse numbers here. i just want to bring them to you, continue to follow the bank story for you, first and foremost, on bloomberg television. and we will also watch what happens to the shares when they open in just about two hours time. now, that officials are signaling the central banks could begin paring back bond buying sooner than expected. philadelphia fed president patrick parker says he could see a move later this year or next, depending on the state of the u.s. recovery. meanwhile, the atlanta fed president echoed the sentiment, saying the u.s. could be stronger than expected by the middle of the year. investors will get a glimpse into exactly how that recovery is going with today's jobs report. its forecast shows a sharp slowdown in hiring in december. joining us now is georgina taylor, multi-asset fund manager. course, today's

numbers aren't going to show us the recovery. that's yet to come. going toou think we're start to see positive data signs? georgina: good morning. thank you for having me. i think it might take some time because the global recovery is still quite complicated. and i think as you mentioned, the employment actor is still so key to the board of economic recovery that's underway. so i think if things reopen over the next couple of months, we're going to see economic momentum in countries around the world. if we look domestically, it's going to look tough. we're going to see further lockdowns, a tightening of economic kind of growth, and this movement in people, etc. i don't think it's one way. the economic data will be volatile over the next couple of months as we navigate all that. matt: what does a blue wave mean to you, georgina?

georgina: the blue wave is interesting. we don't want to stand in the way of excitement over further stimulus coming through. i think the moves you had in markets this week have reflected that we are still addicted to policy. and that is important. i think that we need stimulus to be very evident across markets to support the equity markets, where they are today. so, i think the blue wave is key. i think the fact that we need more stimulus from the financial markets perspective, we need to be able to fill the gap, organic growth, and we need that to come through from policymakers. so, certainly a support for markets and why risk assets will gain some support over the coming weeks, months, and market participants can continue to price in further stimulus ahead. matt: so, what do you think this means for the fed?

we talked about a couple of the members and we heard from other investors that they expect maybe the fed to shift into neutral, or even more this year. georgina: i personally think that's too early. i think if there were more organic growth coming through some of the economy, then i think you could start to price in a shift by the fed. but i think for us, the stimulus that we can see coming through, and obviously this shift in terms of the democratic influence, i think that is very helpful, but it's filling a gap as opposed to adding another layer of potential economic growth to an economy which it is going to take time to come out of it. fed,r us, a shift by the that feels too early to see a significant change this year. i think this is just filling the gap. maybe the bond market isn't

reflecting, necessarily, a peer shift to this is it now. i think it's just a change, and given how low yields are, it's just pricing that in, but not necessarily getting a significant shift in monetary policy. matt: what kind of inflation do you expect? what kind of yields by year end? georgina: i think yields could start edging down a little bit by year end. and the reason for that is inflation markets, bond markets already pricing in quite a move in inflation. the employment picture is important to that. could you start edging that down, above 1% for yields? coming back down and edging below that, certainly not edging too much higher from here. i think, for us, it's still a core view that yields remained capped -- remained capped because there's a struggle to

get growth back on track. we'realright, georgina, going to keep you with us for more, georgina taylor stays with us. more -- i we hear guess if you're tuning in just now, for the first time, from olaf scholz. i shot over to the finance ministry here in berlin yesterday and asked him about the chaos in the u.s. capitol, as well as e.u.-u.s. relations, and airbus-boeing tariffs. that's next.

>> it was really something that is embarrassing a lot of people, to see what happens at the capitol. my view is that this has a reason, where the actions of the president trump that was always

not accepting the outcome of the elections. and it is something of a very democratic principle to accept the elections. and if you are not successful, you have to agree to the results. and asking people not to accept the reaction -- election is one of the reasons we saw what happened yesterday night. matt: he refused and said he will always refuse to concede election and defeat. do you think the u.s. president needs to come out and admit his loss? olaf: i'm sure the president should have admitted his loss for a long time. and now it's the last time to do so. been accused of inciting an insurrection. are there laws in this country that would stop a leader from inciting such a mob insurrection? isf: in the end, it

something that should not happen anywhere. it is one of the key principles of democracy that you accept a defeat and you do not ask people develop violent actions against parliament, and in this case, the congress. matt: does it disappoint you such an important democratic partner allows such a thing to happen? about thee not happy things we saw yesterday but we are quite confident things will become better. and you should know that the european union and the united states are an important democracy and our partnership is important for democracy in the world, so it is absolutely key that the democratic principles are obeyed in our countries. how has the transatlantic partnership been injured during the trump presidency? olaf: the main aspect for

international relations for us is we understand there are a lot of interested countries and things like that. but there's also a lot of -- there are also a lot of things that are important for us together. and the united states and the european countries are democratic states. we have the same principles that should have an impact on the way we are cooperating. in the end, we should be responsible for multilateral cooperation in the world. this is the only way to get peace in the future. matt: and that was our exclusive interview with the german finance minister, olaf scholz. he told me that the chaos seen at the capital on wednesday is a demonstration of president trump not accepting the outcome of the election. president trump has finally, in a way, conceded that joe biden will take office on january 20, and also condemned the storming

of the u.s. capitol. speaking in a video message on thursday night, trump said those who engage in violence do not represent the country, and those who broke the law will "pay." pres. trump: a new admin station will be inaugurated on january 20. my focus is on a smooth transition of power. we're joined by bruce einhorn. bruce, what are we hearing now from congressional leaders? i'm especially interested to hear what republicans are saying since it's pretty clear what democrats would be saying. bruce: yeah, so the democratic leaders, nancy pelosi in the house and chuck schumer in the senate, have called on vice president mike pence to invoke the 25th amendment, to begin the process -- it wouldn't be remove the president, but -- remove him

from power, essentially. but the vice president would become acting president. that would require cabinet approval. nancy pelosi and chuck schumer have also said that if that does not happen, then they would begin impeachment proceedings. and many other democrats have called for that. some of the judiciary committee have started drafting articles of impeachment. and there have been several republicans in the house who voiced support for the 25th, an option or impeachment -- 25th amendment option or impeachment. we're not talking about a huge number of republicans who have joined with the democrats on this. matt: there are reports that trump is considering pardoning himself. is that even possible? bruce: no one knows.

it is a question that we've never had to address before. while thee say that constitution says the president has the power to pardon for crimes against the united t -- the founders clearly did not intend for the president to be able to pardon himself, because that would make the president above the law. but, again, it's never been tested. if the president were to pardon himself, that would probably increase the pressure on the incoming biden administration, new attorney general, and apartment of justice to do something -- department of justice to do something because they might not want to let that go uncontested. but we still have to see. matt: all right, bruce, thank you for joining us, bruce

einhorn talking about the potential fallout from donald trump and the mob that he sent to capitol hill. now, georgina taylor is still with us. what does this extraordinary turn of events mean for you as in investor? i kept watching the s&p on wednesday night, and although it turned down slightly, it still finished higher. remarkablet's quite that the market has managed to shrug off this threat to democracy, potentially. but i think it's about taking that step back and really thinking about what's been driving markets in recent years. what does this do in terms of changing some of those themes that have been driving markets forward? firstly, it's about saying political risk is everywhere and we mustn't always assume u.s. assets provide that

safe haven. so i think for us, in the past, we may have been able to rely on u.s. dollar, u.s. treasury as being partners in portfolio. let's question that and think about that very carefully. and we backed away slightly from having that duration exposure in the u.s., temporarily, and also the dollar. just stepping away from that and looking elsewhere, maybe the japanese yen for example. policy point that very important, one of the drivers going on in the u.s. that might be more exciting and interesting areas outside of the u.s. that haven't followed the huge rally risk assets you've seen in u.s. markets. what's going on in the u.s. might be more interesting in places like europe, where there's a stronger valuation case, or even parts of asia. i think that whole mix, all eyes are on the u.s.

now, what about the u.k. post-brexit, georgina? the u.k. is an, interesting place to invest right now. i think there are the two component parts of what is going on in the economy and what do you get exposure to by buying u.k. stocks, for example. have had exposure to thinking about sterling and may be sterling strength is capped a little bit in the short-term. that can provide good support for u.k. equities. equities.te like u.k. if you bring global markets, they are at the top of the pile in terms of valuation support. you have to be mindful of the sector exposure. mid-caps are looking more interesting in the u.k. market has us, the

come back on the radar. we've been increasing exposure to the u.k., cautiously, given the brexit risk. the economic lockdowns, the lockdown is clearly going to have consequences. again, from a stoxx perspective, there's a little bit of support. all right, georgina, thank you for joining us. georgina taylor there. she is a multimethod fund manager -- multi-asset fund manager talking to us on a daily we're hitting u.s. record highs, and when we see european futures start to point to gains, as well. coming up on bloomberg television, we're going to talk more about the extraordinary events in washington, d.c. after the president of the united states sent a mob, essentially, his ownpt democracy in country. and we'll ask what that means

for him and for the future of america. this is bloomberg. ♪ ♪ you can go your own way it's time you make the rules. so join the 2 million people who have switched to xfinity mobile. you can choose from the latest phones or bring your own device and choose the amount of data that's right for you to save even more. and you'll get nationwide 5g at no extra cost. all on the most reliable network. so choose a data option that's right for you. get nationwide 5g included and save up to $300 a year on the network rated #1 in customer satisfaction. it's your wireless. your rules. only with xfinity mobile.

matt: this is bloomberg daybreak: europe. i am matt miller here in berlin. now, chinese telco stocks listed in hong kong are tumbling after msci said it will remove china's three major firms from its indexes today. juliette saly in singapore joins us with more. what's the story? absolutely, even more pressure on the stocks that have been whipsawed after we heard the s&p dow jones over whether or not they list them. it affects the hong kong listed shares, which are far more traded, and gives just a day for global funds to sell out of billions of dollars of passive

investments. we're seeing volumes of all three stocks hovering, and one hong kong trader told bloomberg client demand to jump out of these stocks has been so overwhelming, employees from other teams have been called in to help. you can see china mobile down 4.9%, holding at 2006 lowe's. hazmat -- lows. trading lower because there have been confusion about stocks over the course of the week, the s&p, dow jones and ftse russell moving china telecom from their ftse china 50 index. decisionsal of these by s&p would be creating a lot of headache and confusion. when you do see such sell down, as we been seeing in the hong kong stocks, there's often buying opportunity as well. and that's what we've seen from deutsche bank, when you have a

look at this next chart, showing some of the weakness you been seeing, particularly in china mobile desk you been seen -- you've been seeing, particularly in china mobile. we spoke to jeffries earlier on bloomberg television, and he's saying he's got a buy on these stocks, but of course there has been significant downward pressure today, three telcos saying they will be seeking professional advice following the trump administration's ban. matt? matt: thanks very much, juliette saly in singapore, talking about the effects from the msci ban now on those chinese telcos, of course the new york stock exchange delisted them and then relisted them, and then delisted them. trump, coming up. finally concedes, in a way. he says there will be a smooth transition of power on january 20 as calls for his removal and

impeachment mount. of course, he hasn't outright conceited to joe biden -- conceited to joe biden -- conceded to joe biden, as he told his supporters he would never concede. this is bloomberg. ♪ >> chinese brands or become much -- are becoming much more adept at reaching consumers, especially at a time when market consumers are reluctant to go shopping outside. people are spending more time at home. people are spending more time on social media. chinese brands are good at using social media, livestreaming,

other things to market chinese brands. they tend to be less expensive. there is a lot of uncertainty. they have more of an advantage.

matt: good morning from berlin. i am matt miller. this is "daybreak europe." expectations for stimulus make it a risk on friday after u.s. stocks close at record highs. treasury yields march higher as well ahead of the jobs report. way, condemnsin a the storming of the u.s. capitol, pledges a smooth transition of power amid

resignations and calls for his removal. you can watch the video yourself now that he is back on twitter. and the u.s. is expected to surpass 400,000 virus deaths by inauguration day. this as the u.k. imposes mandatory covid tests for all visitors to the united kingdom. stockslook at asian performing well this morning. the msci continues to march higher. 6%. as futures are also higher our european futures in case you tuned in for that. the u.s. 10 year yield almost at 1.1%, a little bit later throughout the program from dani burger, we will hear what that means. very interesting level to watch. may u.s. dollar continues to fall on this risk-on sentiment. president trump has said joe

biden will take office on january 20 and condemns the storming of the u.s. capitol. speaking in a video message on thursday night, trump said those who engage in violence do not represent the country and those who broke the law will "pay." pres. trump: a new administration will be inaugurated on january 20. my focus now turns to ensuring a smooth, orderly, and seamless transition of power. matt: joining us now is gary of americanssor history and a fellow of sidney sussex college at the university of cambridge. he graduated from brown university, got his phd from harvard. he is a fellow of the british academy and the royal historical society. credit. wall street thank you so much for joining us. i wonder, you know, as you watched these events unfold on wednesday, especially considering the fact that the

president of the united states essentially sent an angry mob to the capital with the intent of having them disrupt the democratic process there, is there any precedent in history for such an act? gary: no, no. washington has been full of demonstrations for centuries, often large ones, larger ones than what we saw yesterday. they have occasionally been violent, but in no instance has a group of citizens large or small storm to the capitol .uilding or the white house to understand when that last happened, one has to go back to the war of 1812. british forces burned the white house and the capital and that is the last time. that was a foreign war. the most stunning aspect you hit on is exactly -- this is what a

lot of americans are feeling and reckoning within the aftermath is that the presiding governor of the american system of government, the president of the united states, incited them to attack an institution of the government over which he presides. there is no precedent for that in american history, and it did deep damage to the traditions and practices of american democracy. so what would you expect to follow this sort of act? if you are looking at something like this historically, what comes next in the textbook? well, one has to hope for some kind of reconciliation. sides ofoning on both the partisan divide with the democracy.f american one has to call this act by its .eal name, insurrection

even perhaps an attempted coup. those who stormed the capitol building engaged in unlawful acts. i think they have to be punished or put on trial. acts have to be publicized. they have to be exposed. they have to go to trial and if found guilty, they have to be convicted and that it's true not just of the people who stormed capital but it's true of those who may have judged to have incited those acts. one reason trump may have agreed to give a semi-concession speech tonight as i think his lawyers warned him that if he did not get on board with advocating a peaceful transition, he could be liable for charges from the justice department which we know liable forscussing, having engaged in illegal actions. pictures,ing at these

a german expression comes to mind. [speaking german] are goings say things to well for you to be this silly. are american citizens simply not taking their government and their democracy seriously enough? a darks like it's almost joke. well, i think american democracy has been in trouble for some time. there's been severe paralysis at the federal level. congress has not been an effective legislative institution for many years now, stretching back way before trump came into office. in that respect, trump was as much a symptom of the problems of american democracy as someone who was accelerating and deepening the problems of american democracy. and i think he was able to

suggest that washington was broken and that congress was not a, that democracy was fully functioning system anymore, that he was going to be a strong man. he was going to get things done. if people stood in his way, he was going to crush them. he has authoritarian instincts. this is not just a problem for the united states. impatience with democracy, the sense that national legislatures cannot get the work done that they need to get done and thus, tople are beginning to turn authoritarian strongmen to solve their problems, and here, your reference to germany is apt. here, i'm not thinking about what you just quoted but i'm thinking of the collapse of the weimar republic in the 1920's and the rise of fascism in the 1930's. similar arguments were made that democracy could not get the job done. the representatives were weak. they were indecisive. problems needed to be solved and we needed strong men and trump is one of those strongmen.

so is orb on in hungary and so duteren and erdogan and in the philippines. these are authoritarians who recognize themselves in each other and draw support from each other can they draw to them significant numbers of people in their societies who feel disenfranchised and feel that the system, the democratic system, has not been working for them, and that they are therefore willing to look elsewhere. in this respect, it is not just an american problem. it's a global problem. and we need to look to history, especially the 1930's and 1940's, to a time when democracy was in crisis, and those who believed in democracy found a way to renew it. that has to be solved on a national level, global level. to the 1930'sok and 1940's, we are looking for periods of deep divide in america and look to the middle of the 1800s.

the biggest problem i have with that, gary, is you have to have a war first before you get some kind of reconciliation, and hopefully, we can avoid that. heal this divide, if possible? do you have any optimism for that over the next four years? gary: i do have some optimism. certainly, we would not want to root for a war. the civil war in america, world war ii, and i don't think we are on the verge of either. we hope that such an eventuality .ill not come to play, to bear i think a moment of crisis like this can be clarifying. i think many people in the republican who enabled trump are now having second thoughts and have now broken with him and i think they are ready to argue that the republican party needs a reverse.

it has to get back to its lincoln ask heritage -- heritage,que containing dictators and authoritarians. this is a moment of reflection for them. i think joe biden may be a good man for the moment. he is not very eloquent but he understands the challenge that he is up against. he understands the seriousness of the crisis. he has strong relations with elements of the republican party, with people like mcconnell and lindsey graham, also, i think we have to remember that the day for american politics yesterday began very well, very strongly in the sense that two democrats wanted georgia so wide and will have a chance to implement his agenda. he will not have a big majority. you will have a majority of one so he will have to work across the aisle but i do have some optimism and confidence that he understands the challenge that is confronting this country. he is not afraid of it. he has a good team.

he is developing a good staff, and we have to hope that this moment of crisis is clarifying and produces the kind of reckoning with the real trouble as opposed to the false trouble that american society is in, and if that happens, and if congress responds, if there is a greater measure of bipartisanship than what has existed, then it is possible for the united states to begin to heal and to begin to repair its democracy. it's not going to be easy. it's not going to be quick. one has to recognize that one has to work with a republican party, part of which right be willing to work across the aisle, but part of which has been trumpa fired -- trumpified, who want to reproduce him in the form -- is a good example of that. matt: maybe that speech from mitch mcconnell is a beginning of that that we saw on wednesday right before the mob stormed the capital. thank you so much for joining

us. professor of american history at cambridge university. now, with democrats set to gain control of the u.s. senate and house, the professor was telling us, joe biden will have a clean slate to reshape the economy, starting with covid relief funds. we spoke exclusively to cleveland's fed president, loretta mester, about how the prospect of more pandemic relief and higher taxes as well could impact the u.s. and fed policy. early in the pandemic, the beginning of last year, we had both monetary and fiscal policy acting in tandem. they were compliments and they were doing different things of course, as you pointed out in the intro. the financial markets were very much under pressure and stress in february and the fed stepped in to try and make sure a financial crisis was not put on top of a pandemic crisis and then of course, we brought the industry bound to support

accommodative monetary policy and we set up some facilities so that predicate continued to flow. the fiscal authorities of course did the stimulus payments to households and individuals. the tpp lending to help small businesses. given to theuld be really stressed households that were essentially unemployment benefits. the second cares act for the package that was just past, again, that was really targeted on those most vulnerable. if there is another package next year, and then of course, that is up to congress. that will presumably be targeted as well so that we can get to that second half where we have a chance with the vaccinations being broad-based and getting beyond sort of the pandemic part of the recovery into a post pandemic, postvaccination part of the recovery. id trying to get that up so don't really see it impacting the need for monetary policy to

support the recovery because i don't think we will going -- we are going to necessarily be back to our goals. i think this is a real journey, not a sprint. may think the bond markets be looking at a bit of a pickup in the pace come at the very least, 10-year gilts has decisively broken above 1%. people are betting on reflation in the u.s. around the world. higher inflation. need toee perhaps the actually take action on extending the maturity bond purchases test to make sure -- just to make sure yields don't rise faster than you want and put a roadblock in front of some sectors? loretta: we always going to every meeting and have a full discussion of our our policy -- are our policy tools well calibrated to the economy? it is my modal outlook which is

a softening in the first part of the year this year and then a pickup if we get the vaccine widely distributed in the second half of the year. i would not necessarily think that we would -- if things come in the way i'm expecting, i would not necessarily want to revise our policy, current policy. i think it is well calibrated to that. if there is a slowdown in growth along the lines i am expecting the first half, i would not want us necessarily to react to that when there is a pickup in the second half of the year. i don't think it would necessarily be appropriate to change our policy stance because i don't anticipate you will have made substantial progress to our goals. it's always the outlook that is driving our decision, progress on our goals. kathleen: isn't one of the purposes of bond purchases to manage long-term rates? if they continue to rise, you are saying that's ok because the

economy is getting better, is that what you are saying? you would not need to slow down that rise in long-term rates. you don't need to use a tool like maturity bond purchases. loretta: there's two things going on. expectations about what the economy will look like, the real part of that, and also inflation expectations that is embedded in that long rate, so part of what we saw over the last few days was a rise in inflation expectations, so again, the way policy works, it works with lags, and it has to be forward-looking. it also means it's going to be more patient than what a gyration in the bond yield would be or what a gyration in even some of the economic data would be. we are going to be patiently accommodative and of course, we will recalibrate as necessary to support the economy over the median run and to get back to our goals but i view it as sort of important to look at where

the economy is, where are we relative to our mandated goals? and then calibrate our policy to that. matt: now is loretta mester, president of the cleveland fed, talking to our global economics and policy editor, kathleen hays. coming up, president trump condemns the storming of the u.s. capitol having urged his supporters to take that action and concedes joe biden will take office, although it's not an official concession. we will discuss, next. this is bloomberg. ♪

matt: this is "daybreak europe." berlin.t miller in president donald trump condemns the storming of the u.s. capitol, which occurred after he urged his angry supporters to take that action and said he would prepare for the administration of

president-elect joe biden. let's go to maria tadeo, who is in brussels. maria. maria: good morning. let's continue to break down what is happening in the u.s., and the implications across the world. we are joined this morning by thefounder of a company and former nato secretary-general. thank you so much for joining us. when you look at the situation over the past 48 hours where the capital was stormed, the president gets taken off social media, the inauguration is a few days time from now. this looks like a real mess from the outside but how much damage is this doing to america's policy over the long-term? >> this insurrection incited by the american president has had serious and damaging consequences. america's moral leadership has been damaged. the american democracy has been damaged, and the credibility of the republican party has been

damaged, so we could not underestimate the damaging effects of this insurrection. much of it is how fundamentally the question? how much of this can be fixed with the new administration? how much of this is long-lasting to the politics of america and the world or across the world? thatthink the good news is it can be fixed, but of course, it stresses the need for democratic renewal at home and abroad. the united states should lead by example. and secondly, it also stresses the need for more bipartisanship , rebuilding a consensus in the american congress and in the finally, iople, and

think this must lead to a over the direction of the republican party. i think the republicans must go through serious considerations a reform of their political platform. you mean disavow everything that trumpa has done? done? -- trump has >> yes. there is a risk that trumpa and his supporters feel that they theso to speak owners of republican party. what they need now will be a rebellion from a new generation, a reasonable -- of reasonable republicans who adhere to the principles of what i would call a classical republican and american foreign policy focused on american global leadership.

we need american leadership. what we have seen is that when america retreats, the americans leave behind a vacuum and that vacuum will be filled by the bad guys and that is exactly what we withitnessing now president putin, president xi jinping, kim jong-un, assad, erdogan and others. they have exploited the american retreat from the world's hotspots. so we do need american global leadership. takes me to my next question because a lot of this is focused on president trump and his figure or, his political legacy. there is a lot of talk about whether or not he should be impeached. is that a good idea given the inauguration is so close? >> the thing that would be a waste of resources. of course, there will be a lot

of important symbolism in that, but i think a much more efficient tool would be to simply refuse to execute the orders of the president during the last two weeks and then look of januarythe 20th when a new president is inaugurated, so that would be my advice, but of course, it's internal american politics and i do know how important the symbolism is. but i think they should pursue a much more pragmatic approach. when we take this on a global context, we know that what happened two days ago was shocking. the europeans condemned the storming of the capital, but at the same time, and this is where it gets tricky, they signed an investment deal with china. china has cracked down majorly on hong kong. there is a certain level of

hypocrisy when we look at the shock from america but we are not quick to condemn what is happening in china? >> yes. i was actually disappointed when i saw that the european union and the chinese agreed on this new investment partnership. well, i had hoped that the european union would have waited a bit to coordinate their efforts with the new admit administration and lead the way for a consensus to put more pressure on the autocrats in beijing, moscow, and other places. this agreement will now be approved also by the european parliament.

at the end of the day, it will be approved, so my advice would that it is followed up by a taiwan.agreement with we need to support democratic activists in hong kong and andcratic forces in taiwan one important step in that direction would be to agree on an investment partnership between the european union and taiwan. and you are not alone in saying that perhaps the europeans should have waited. thank you for your time today on bloomberg television. we appreciate it as always. matt. matt: maria, things very much. maria tadeo. fascinating conversation and one that i think we will continue to have. that is it for bloomberg daybreak: europe. the european union is -- the

european open is next as futures point higher. we could be in for a risk on friday around the world. this is bloomberg. ♪

anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london alongside matt miller in berlin. matt: today, the market says keep those tabs open. stocks and futures continue to surge as loretta mester says more fiscal stimulus will not stop the fed printing cash. the cash trade is jus