pain and stress is the only thing you have to lose. get it and get it now. your body will thank you. (announcer) find out more at aerotrainer.com. that's aerotrainer.com. ♪ manus: good morning from dubai, i'm manus cranny. annmarie hordern alongside me in london. the biden era begins at noon in eastern. a new administration takes control of the u.s. government. stimulus meets quick republican resistance. yellen argues time for spending is now. and lockdown for longer.

germany extending covid restrictions until february 14. 6:00 a.m. in london, 10 a.m. in dubai, 1:00 a.m. in the capital of the united states of america. the biden administration will come on inauguration day. joe biden. at matthews cathedral for a prayer service, cleared not that the nation's second catholic president takes the power. the question is the hopes can biden emulate. good morning. annmarie: good morning. yeah, he invited mitch mcconnell to join him on that side of unity is what he wants to express today as he begins his administration as the 46th president. he will be sworn in around noon eastern. he will give his full address to the nation, his first address as

president. the ceremony begins at 11:00 eastern. like all life these days, the pomp and circumstance goes virtual this year. before he goes over to the white house, and we do think he will sign a number of executive orders on day one, he is going to the tomb of the unknown soldier. he will be joined by the bush family, clinton's and obamas. one day missing, president donald trump will not attend the inauguration. a stark contrast to modern-day inaugurations we have seen in american history. manus: absolutely. trump has never conceded, as you said. he never conceded this election. there was a farewell video last night which nods to the biden administration but does not name biden itself. maybe the second act where he hands over power to the new administration. the movement started is only the

beginning. as he leaves with a 34% rating -- that is low, relatively speaking. this is the rhetoric of somebody who is not gone for good. annmarie: yeah, that is right. he wants to potentially, as the wall street journal is reporting, his own political party. the only other president that fared worse was truman at 32% approval rating. look at the past gallup polls. let's look at this inauguration morning. u.s. futures advancing a little bit when you look at the s&p 500 as well as the nasdaq this morning. the hang seng this morning closing in on 30,000. a key technical level. that would mean erasing all of the post trade war losses. the dollar, another day lower. all of this, z asset was front and center yesterday on capitol hill. manus: absolutely. she didn't defer a strong dollar

policy. let's reset and talk about with the world's attention lies. it is squarely on the capital of the united states, d.c. the market's attention was there yesterday. the incoming treasury secretary janet yellen appeared before the senate finance committee where she covered an array of topics, but none with more urgency than the biden relief plan. >> over the next few months, we are going to need more aid. with interest rates at historic lows, the smartest thing we can do is act big. in the long run, think the benefits will far outweigh the cost. the united states does not seek a weaker currency to gain competitive advantage. china's undercutting american companies. these practices including china's environmental standards are practices that are prepared to use the full array of tools to address.

we have to rebuild our economy so it creates more prosperity for more people and insurers the american workers can compete in an increasingly competitive global economy. manus: the u.k. chief investment officer at ubs is our guest host. she joins us this morning. caroline, great to have you with us. in the foothills of a new administration. it is all about go big or go home. the justification -- i want to understand how you see it from yellen. she says the debt interest burden is lower than in 2008. is that a healthy justification for this kind of spending? or not, as the case may be? good morning. caroline: good morning. yeah, i think we are in this paradigm now where we are looking at the cost rather than the size of the debt.

i think there's a few reason for for that. one is that global debt increases have happened everywhere. it is not just one region as a result of the pandemic. therefore, the way you need to assess the debt changes somewhat on a relative basis. of course, the other is because of the central bank stimulus we've got. keep the rates low and keep the funding for that low for several years to come. annmarie: our question today is about how will the dollar trade under yellen? it is a bit of a 30,000 foot view. yellen says the market will drive the dollar, but the stimulus plan will shape interest rate differentials with other countries. so, from your perspective, for years under yellen, what do you think we could see for the dollar index? caroline: we think the dollar will probably continue to weaken a bit. the size and timing of the stimulus package will have a bearing on that. our view is that we are probably

going to get somewhere around $750 billion in terms of stimulus over the next month or two. our euro-dollar view is 1.27, so we do see a little more weakening to come from the dollar. a few reasons -- one is linked to the stimulus package. and other is as the global economy recovers, the need for the safe haven is not so strong, and therefore people will be more inclined to go towards more cyclical currencies which are more likely to fare better as the economy recovers during the course of the year. manus: we're always trying to work out whether we should ploy more capital. yes, the view that there's a great deal of cash on the sidelines. oppenheimer at goldman sachs says that our tactical risks of a market correction. if anything, because of the reflation narrative, you buy the dip.

talk me through your sense of are some of the tactical risks rising when you look at their momentum in these markets? caroline: yes, i think if you consider some of the different factors around what has driven the markets higher, i think the wrists around fixed income market in theory look higher than around the equity markets. you've got the central bank underpinned. unless the central banks are going to change their approach in the near future, that will probably support the fixed income market. the fundamentals do a look a little bit stretched. in the equity side, we are relatively comfortable. valuations trading above long-run averages. given the discount rate being as low it is, we feel ok with the levels in light of the fact we have earnings growth. globally, we are looking for 30% earnings growth over the course of the year. that should support markets and

we see further upside. annmarie: one thing that caught the market's attention yesterday was yellen's comments about long-term debt. with the market except a 50 year bond? is this something that is actually realistic? with a accepted more under yellen than secretary mnuchin? caroline: yeah, i think in an environment where the fixed income assets are becoming a bit squeezed and you've got a lot of negative debt, there are certain buyers who need for various reasons or want to buy fixed income. possibly higher yields for longer-term than that probably would be attractive to people

who are continually looking for ways to generate better returns, particularly within the fixed income space. i think the demand will probably be there. in terms of the need, as debt levels rise, there will be ways that need to be thought of as to how that is going to be funded and the best ways to do that. it will be interesting to see what yellen does in her new role. annmarie: caroline simmons sticks with us this morning. ubs global wealth management, staying with us this morning. let's get a recap on the other news. laura wright, good morning. laura: president trump has pardoned 73 people, including his former strategist steve bennett. bannon was being prosecuted for allegedly defrauding donors over building a wall on the border with mexico.

despite portraying the campaign as a volunteer effort, bannon received more than $1 million from the group. he denies the charges. germany is extending and tightening its lockdown. non-essential stores will stay closed until february 14. it stopped short of imposing a national curfew like france. chancellor merkel's warning it may need to impose border control to guard against variance of the virus. italy's prime minister has survived a crucial confidence vote that fell short of an outright majority. he campaign to get centrist and independent lawmakers but failed to fully plug the cap left by it affection ever the italy ally party. people lead an outright majority if you want to stay in power longer-term. global news 24 hours a day in on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus, annmarie.

manus: thank you very much. this is the company that provides to taiwan semiconductors. the machines that make the chips that make the phones go faster. first quarter net sales forecast to beat estimates. they are looking at executing a significant share buyback in the first quarter. they are confirming they see this year as being the year of double-digit growth. margins for this quarter will be 50% to 51%. euv, which is an incredibly important part of the asml story. they expect sales to rise by 30% to 5.8 billion euros. again, we are just seeing some pretty strong headlines on the first quarter net sales. 3.9 billion to 4.1 billion. the estimate was for 3.52.

that is the scale of overachievement. i know you have recently bought me a gift but you have not told me what. can you help? annmarie: in your dreams, manus. really bumper numbers coming in on the company. sales coming and north of 4 billion euros. the estimate was for just under 4 billion euros so they are seeing a lot of online growth. the sales were down in europe which is really a luxury hub when it comes to producers. where the sales did well was places like asia and africa. a lot of it has to do with that asian demand growth and the pent up demand we have been seeing in the luxury market. i'll consider potentially maybe a watch for you if it is within my budget. little birthday gift. manus: i'm always in the market for a watch. there you go. cartier. we'll talk more about that in a moment. we are effectively open, so too

is asia, for the reason of that balance of the numbers. we will discuss in a moment and see what our guest host thinks. it is the biden era. good morning. what can we expect on inauguration day? it will be like no other. live coverage begins on bloomberg, swearingen 4 p.m. london time right here on bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down,

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>> this week, we inaugurate a new administration and pray for its success in keeping america safe and prosperous. we extend our best wishes and we also want them to have luck.

manus: that was the president of the united states, the outgoing president donald trump, wishing the new administration success in a rare gesture of goodwill towards his successor. pardons have been coming through thick and fast. a total of 73 individuals have been pardoned so far. the speculation is up to 100 could come through. the most highlighted names are for bannon, steve bannon had been pardoned. he was accused of defrauding donors. and paul manafort. he was also granted a pardon. we have seen the wrapper lil' w ayne and the former detroit mayor. thank you to the team for keeping those names in order. let's take the name of today, our senior reporter, former white house and congress

reporter. the security preparations. 25,000 troops. it is more like belfast in 1985 than the capital of the united states of america. how does it feel? michele: we are just two weeks past the storming of the capital so we know the whole city is very much on edge. massive amounts of resources being deployed and countless security risks being monitored. among the added security, the national guard presence you mentioned with troops from around the country. as our defense reporter noted, this is a national guard buildup unlike any since the civil war in washington. very much different scene. almost every state has sent national guard troops to past inaugurations but never have so many been called to the d.c. area. new york alone is sending more than 1000. what we see so far are pictures of the set up that look strikingly different than what we are used to. usually you would see hundreds of thousands of people spread

across the national mall to get a glimpse of what's going on. remembering back to the 2009 inauguration when someone walked for miles just to be close to that historic transition of power. i remember walking into's all sorts of figures including the reverend jesse jackson and actress jimmy lee curtis among the tens of thousands strewn across the mall and city. it usually draws all kinds of people but we are in such a different world now. the national mall is closed, blocked off by a military court and. a small amount of attendees will witness the inauguration in person. there is fencing and barbed wires to deter folks from getting close. this is due to the security fallout, but also larger pandemic concerns. manus. annmarie: i will pick it up from here. thank you for that context. you yourself being a part of past you naga rations -- inaugurations. you can catch our special coverage of the entire day of

the inauguration on bloomberg tv from 4:00 p.m. u.k. time. still with us this morning breaking all the news, caroline simmons from ubs. one thing that strikes me, has michele talks about how different this inauguration is going to be, is the pandemic front and center. yesterday, a traumatic milestone of 400,000 american lives lost. you see what is happening in germany and the united kingdom, very scary numbers. you are still quite optimistic about u.s. growth. what part of the u.s. economy do you think is going to really be able to come out of this pandemic the quickest once we get a little bit of a quicker vaccine rollout? caroline: yeah, there are a few areas. one obviously is the consumer spending area. that will pick up significantly critically once the reopening happens after the vaccines have been rolled out in a broader context. many consumers have built up

savings during this time. they have not been able to spend some of that money. there was a gap in the u.s. with the benefits they received, but they're not repeating those again. consumer discretionary is one area. industrials is another in terms of the manufacturing and what consumer demand has taken up all the excess inventory then you will need to increase manufacturing again. that is another area likely to do well. you will see a little more as biden comes to do and what sorts of policies he puts in place. there's also sustainability and green issues to consider -- to continue to gather momentum as well. manus: i will take advantage of the fact we are getting deep into earnings season. luxury -- we broke the numbers on richmonte. the middle east, one of its strongest with asia. that is a logical thing for me. when you look at the recovery in

these big luxury names, how does that play into the cyclical narrative that you have for 2021? caroline: yeah, so we're -- have a preference for consumer discretionary and luxury, within is a trait. it has high exposure to asia and china accounts for about one third of the luxury goods sales. their economic recovery has been in place for longer than your. i think we will get further detail once travel increases and asian travel into europe comes back in full force and the second half of the year. i think that will give further outperformance. manus: thank you very much. caroline simmons setting up 2021. for ubs global wealth management. coming up on the show, what did you watch?

netflix. surging 15% after the hit show draws in more subscribers. we have the details. what show did annmarie hordern watch and manus cranny? we will tell you after the break. this is bloomberg. ♪

annmarie: this is daybreak era. --europe. netflix ended its biggest year in the company's. it soared in late trading in 13% after reporting a surge in new customers. here's the details with dani burger.

dani: we both know a lot of people have been streaming netflix and you and i are probably included. the numbers this quarter word massive for netflix. they were able to at 8.5 million new customers, beating analyst estimates of 6 million. part of the reason why this is significant, they have crossed the 200 million subscriber threshold. that is a nice round number they have blown past. look at the start of 2020, this big spike in new subscribers. this is what the ceo calls the pull forward affect. it is because so many people signed up for netflix app is start of the pandemic, it would likely to see more numbers at the end of the year. still, netflix certainly found more room to run. that is positive in terms of investors. the other positive take away from netflix is the reason it surged as much as 13% is it is becoming clear netflix is no longer having to rely on debt to grow. the free cash flow numbers looking more positive. netflix saying they will be very close to sustainably having a

positive free cash flow going forward. they think 2021 is going to break even. this is a big issue analysts had with netflix. now they are considering buybacks for the first time. manus: yeah, we like that. dani filled us in with the higher level for justification of watching and being a netflix subscriber. the queens gambit -- how long did it take you to watch the two of them and which did you prefer? on the spot. annmarie: queens gambit a little bit longer. bridgerton, i binged in like two days. [laughter] manus: i cried at the queens gambit. i thought it was very sad. very good. i have a heart. coming up, the biden era begins. what to expect from inauguration day. the coverage is here on

bloomberg. the swearing in of joe biden 4:00 p.m. london time on bloomberg. ♪

♪ >> my fellow countrymen. >> i, dwight d. eisenhower, do solemnly swear. >> i lyndon johnson do solemnly swear> . >> let's encourage individuals to do more for themselves. >> ladies and gentlemen, the president of the united states.

>> to a few of us here today, this is a solemn and most momentous occasion. and yet in the history of our nation, it is a commonplace occurrence. the orderly transfer of authority as called for in the constitution. >> president, neither prince nor pope, and i don't see a window on them souls. in fact, i yearn for a greater tolerance. >> my fellow citizens, today, we celebrate the mystery of american renewal. >> i george walker bush solemnly swear that will faithfully execute the office of president of the united states. >> that i will execute the office of president of the united states faithfully. >> that i will execute faithfully the office of the president of the united states. >> i donald john trump so

solemnly swear. >> that i will faithfully execute. >> that i will faithfully execute. >> the office of president of the united states. >> the office of president of the united states. annmarie: good morning. the inauguration throughout the years. the people's transfer of power. we have seen it taking place on the steps of the capital. just two weeks from the riot, president-elect joe biden will be sworn in today. kick off around 11 a.m. but actually sworn in around noon. by the end of business day today, he will be the 46th president of the united states. manus: yes, with a stimulus plan of nearly $2 trillion. inauguration day will start with a prayer service at st. matthew's cathedral.

this is significant because it is his first stop. it's a clear nod to his religion. he is a catholic president, the second catholic president of the united states of america. it brings together the dynasty, the kennedy camelot that ended tragically at the matthews cathedral. what comes next on the agenda? annmarie: well, a lot of pomp and circumstance normally we would see. life as we know it all goes virtual so all of that exciting stuff you would normally see and the crowds and the celebrities and performances, all of that is taking place virtually. you can watch it on zoom or behind closed doors. before he heads to the white house, and we do think he's going to sign a slew of executive voters on day one, he will be laying a wreath at the tomb of the unknown soldier and be joined by the obamas, clintons, and the bush's. one notable exception is the trump family.

he will be the first president of the u.s. to not attend his successor's inauguration, something we have not seen in modern-day times. manus: no, indeed. the outgoing president popped a video message last night where he didn't mention biden by name but acknowledged the administration. he declared the narrative that there could be a second coming, where he said handing over to a new administration. the move and we started is only just beginning. he leaves with a pull rating of 34%. that is down there with jimmy carter and george w. bush. the politics does not seem to have interrupted the market, but janet yellen, she took us forward on the dollar narrative. oppenheimer at goldman sachs says by the dip. you could be in for a bumpy ride on the stocks story. the dollar, she did not disavow -- she is about fx intervention, janet yellen, but she did not

affirm a strong dollar policy. down the dollar goes by one quarter of 1%. the justification by janet yellen is the lower borrowing cost at the moment. jp morgan with a big note saying you can expect 2% on government bonds. goldman sachs, peter oppenheimer has his note out, buy the weakness. inflationary narrative from their highs of goldman sachs. good morning. annmarie: good morning. let's kick it back to soon be president joe biden. he arrived in d.c. ahead of his inauguration today and expect it to be a ceremony unlike any other. the transfer of power happening under tight security just two weeks since trump supporters stormed the capital in a riot that left five dead. more than 20,000 national guard troops have been deployed to d.c., with the mayor asking americans to stay home. joining us as the deputy director of the berlin office of

the german marshall front of the u.s. it works on issues impacting the trends look left -- transatlantic relations. thank you so much for joining us again. you are with us the morning after that riot. two weeks on. before i get to biden, i want to jump to a point -- trump's approval, 34%, one of the lowest we have seen given an outgoing president. dow jones is reporting he is having talks with aids about possibly forming his own party. what happens to the republican party as trump makes his exit today? is trumpism done for good or do they need to have a clear split? >> that is really the next chapter in this story, what happens with the republican party? i think we are going to see a real battle between establishment republicans and the trumpists in the party. trumpism is a movement that is

here and it is not going to go away anytime soon. 74 million americans voted for president trump and his family will definitely want to carry his political legacy, carry that torch. you see pivots now with people like mitch mcconnell, majority leader mitch mcconnell who said on the floor of the senate yesterday that president trump provoked that mob that caused the insurrection on january 6. manus: good morning to you. if mitch mcconnell -- we are coming up to the senate vote, and we need x number of republicans to come on side to impeach donald trump for a second time. how significant would it be if mcconnell moves to impeach? what would that say about the gop's relationship with trumponian dynasty? sudha: donald trump has now been

impeached twice. that is historic in itself, not to mention the fact it is very hard to topple an incumbent president. as you mentioned, he's also leaving office with very low favorability ratings. i think senator mcconnell could be very subtle because he won't necessarily be the majority leader when this comes to the senate. i believe he is telling his caucus to vote on your own belief and not along party lines. i think he has sort of opened the door to allow members of the gop to vote to convict donald trump. we will see if we get the necessary centers for a two thirds majority -- senators for a two thirds majority. annmarie: there's nothing happening in the senate are the confirmation hearings. one thing avril haines said yesterday, the nominee for national intelligence director, a long way for the u.s. to join

the iran nuclear deal. the second thing is you promised to declassify the intelligence report regarding saudi arabia and the killing of jamal khashoggi. the new biden administers and coming it and you are focused on foreign policy. how different will their approach to the middle east be than his predecessor? sudha: i think avril haines and people like secretary of state nominee tony blinken recognize the appearance of the u.s. having a global leadership role. joe biden has brought together a very experienced, almost technocratic national security team. i think they are also going to approach u.s. foreign-policy moving forward with more restraint. so, that means that the middle east is going to be a place where the united states is going to still try to continue to remove forces and also have allies, and of course, the

countries in the middle east take care of their own security. we will see that because this national security team also notes the policy power for the u.s. even in the realm of foreign policy will gauge how that affects the middle class back home. manus: we had that conversation with the foreign minister for qatar and he said it is time for the gulf arabs to start talks with iran. this is very much about the gcc lining up for, i don't know, to paraphrase, some protectionism. you make the point that the europeans no longer trust nor will be led -- i am paraphrasing your notes -- by the americans. the trust factor in usa is low, not necessarily biden. sudha: i'm very surprised because i noticed there was a biden bounce after the november election. a figure of about 25% of germans having a positive attitude about

the united states under the trump administration last september. biden definitely helped boost up the ratings again. after january 6, i think it cemented sentiments among europeans about how broken the united states is. europeans see the hyper polarization in the united states and january 6 was a moment where europeans were really shocked, as were americans. and a recent poll shows only about one third of europeans now think that america can be trusted after the trump administration. the biden administration really has the up its sleeves and figure out how to instill trust again among allies. it certainly recognizes the value add of partners around the world but it won't be so easy. manus: thank you so much for being with us. i am sure we will discuss this

in a whole variety of directions as the year progresses. the deputy director of the berlin office of the german marshall fund of the united states. coming up, conte live to see another day in power after surviving a key vote in the senate. we look at the details. this is bloomberg. ♪

annmarie: this is daybreak europe. i am annmarie hordern joined by manus cranny. giuseppe conte has survived a

crucial confidence vote in the senate but failed to obtain an outright majority. our reporter maria tadeo joins us now. does this put an end to the governmental crisis? or is that going to hinder him? maria: well, exactly. you make a good point because officially, the government crisis is over now but if you look at the numbers now and that vote in the senate, they are tight. 156 senators voted in favor. 140 voted against. 16 abstained. you have a very thin majority. conte conceded that. he said we need to work on strengthening our majority, perhaps hinting we are going for another government reshuffle in italy. there is a very clear prospect, real possibility that the third government under conte will be weaker of that under conte 2 or conte 1. this is still a very divided country. big challenges going ahead that he mentioned when it comes to the vaccination, when it comes

to the recovery. it is hard to see when you do that when you only have 156 votes. what i would note is this really clearly moves away that potential early snap election that is not going to happen. that was really the risk event for markets. it has been removed. today, we could see btp jumping on that. this clearly certifies there is no snap election happening even though i want to stress this is a very weak italian government. manus: as italy narrowly avoids political turmoil for now, at least we can say that, meanwhile we will see that evolve in germany as we see merkel tightening the virus restrictions. what is happening there? maria: manus, she is extending those restrictions until february 14.

doer looking and another three or four weeks of restrictions in germany, the biggest economy in europe still taking a hit due to coronavirus. what is interesting is the german press said and repeatedly briefed this was going to be eight to 10 weeks. that indicates that over the long-term, the german government has seen better development when it comes to coronavirus. on that note, if i may very quickly -- tomorrow, european leaders will meet over a video conference to discuss coronavirus. there's a group of countries including the austrians and the greeks who are preparing to lash out at the regulator because it is not doing what they expect. that will be the criticism when it comes to the european agency for not approving vaccines. there's this on sentiment taking hold across europe that we are not doing it fast enough and it needs to be remedied quickly. manus: yeah, it is certainly a rising call around the world. maria tadeo in brussels with the

very latest. the first word headlines with laura wright standing by. laura: thanks. more than 400,000 americans have now died of covid-19, the world's highest death toll. the u.s. has given more than 35 million vaccine shots since president-elect joe biden said he wants to deliver 100 million in his first 100 days. one positive sign the number of hospitalizations in california is starting to drop. republicans are already rejecting part of president-elect's joe biden nearly $2 trillion stimulus plan. his treasury picked janet yellen been facing lawmakers for her confirmation hearing, but also to sell the mammoth aid bill. her argument, the world has changed, low interest rates mean it is cheaper to borrow in the u.s. should take advantage of that. global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in more than 120 countries.

this is bloomberg. manus, annmarie? annmarie: thank you so much. i want to pick it up with alibaba. shareholders like the sight of jack ma. he has resurfaced after months off the radar and intense speculation of where he is. joining us to discuss is bloomberg news lulu chen. he has been seen. a lot of people are happy about that. what is the latest on the situation? lulu: jack ma emerged at this video conference today that is supposed to be an annual conference with teachers. sources told us to the event was live-streamed and jack ma said he would be spending more time on philanthropy. this is a side of relief or for a lot of investors. share prices are up as much as 10%. people probably imagined things were going to be a lot worse. at least people know he is not in jail or confined in some

black room. for now, i think there is still a lot of uncertainty on what the regulators are thinking for the next steps of alibaba and ant. manus: thank you very much, lulu chen. the stock price has gone up 9%. thank you for being with us this morning. let's go back to what will drive markets this morning. we've got the yellen dollar narrative. on the corporate front, asml, i will leave you with the more interesting stuff on richmonte. it has been allocated to you. i got chips. asml, they provide the big machines that power semiconductors. 100% global share of euv market. it is all about the guidance, annmarie. they are guiding higher in terms

of what we can expect. for the fourth quarter, the ship nine of the newest euv machines. that is what's going to drive the market higher. the fourth quarter profit rises to see growth in 2021. now, take it away with richmonte. it is all about luxury goods. annmarie: certainly. a massive increase, 5% on sales increase coming north of 4 billion euros. all of this is driven by the chinese consumer. there is a lot of worry about where the chinese consumer would come out of this pandemic, but the insatiable demand for luxury goods continues. the one thing that has changed is chinese shoppers are not traveling so what they are spending on -- it's at home now. revenue in china jumped, a percent that shows how strong the appetite is when you look over in asia, especially china for luxury goods. manus: absolutely.

deborah aiken is our columnist on this and breaks down the numbers. she talks about that in terms of asia, the u.s.. coming up on the ship, it is inauguration day like no other. thousands of troops are guarding washington as the u.s. prepares to turn the page and inaugurate joe biden as its next president. this is bloomberg. ♪

>> the last time the senate convened, we just reclaimed the capital from violent criminals who tried to stop congress from doing our duty. the mob was fed lies. they were provoked by the president and other powerful people.

annmarie: mitch mcconnell, senate majority leader, soon to be minority leader, addressing the storming of the u.s. capitol. 25,000 national guard troops have been deployed to washington. it is looking like a fortress ahead of today's inauguration. one thing i know you are focused on is the fact they will go to st. matthew's church, joe biden, before he gets sworn in. he has invited both mitch mcconnell and chuck schumer. he is really trying to show the unity that he can potentially bring to the country as he becomes the 46th president today. manus: you have lived through a number of these elections. it is your country. how much what that demonstration of togetherness at st. matthew's cathedral today be for the political establishment and for the country? this is jfk's camelot era, isn'

t it? annmarie: yeah, i think this is just how biden wants to try to kick off. his speech is about to be unity. but you raise a good question. his predecessor is not attending the inauguration. the clintons, the obamas, the bush's will be there but his predecessor will not be there and many in the republican party reject that biden won. it will be difficult how he moves those words of unity into action. manus: let's pivot for one moment to the yellen speech. she has reset the tone on the dollar. she didn't declare a strong dollar policy. what does that mean? and edwards and matt miller will pick that up. i will leave you with the phrase, convincing and staunch dovish footprint, maximum policy overdrive. act big or go home. that is not on a friday night out with me. good morning. annmarie: good morning.

that does it for us. anna and matt are up next with european open. this is bloomberg. ♪

♪ anna: good morning. welcome to bloomberg markets the european open. i'm anna edwards alongside matt miller in berlin. matt: good morning. today, the markets say everything to play for. stocks and futures trade mixed amid earnings in hopes of more stimulus. the trait is one hour away. top headlines from the bloomberg terminal. it is inauguration day. a new era begins in the united states of ame