manus: good morning from dubai. i am manus cranny. this is "daybreak europe." 2021 outlook darkens as new covid variance crib full lock downs and vaccine delays chase optimism away. ready to respond? the fed convenes as congress debates.

the market looks for more reassurance on rates. the chinese president makes his first public remarks of the bite in europe. merkel, macron follow this year's digital davos. welcome to "daybreak europe." i am manus cranny in dubai, broadcasting from home. anne-marie -- annmarie will be back with us shortly. jeremy grandson had a look at the s&p 500. global stocks continue higher and the data stack -- nasdaq up. we are ready to burst the euphoria. you will see something. if the last few weeks to throw your chips on the table before the most spectacular of busts. the bond market has gone that long for the first time in three years. equity markets pop and burst and

roll down. do you want to be long treasuries, long the dollar, down by .8%? the overall risk momentum stays higher. there are protests in russia but we will talk about what that means later in the show. you are just seeing the dollar ruble movement by over 1% this morning so again, momentum building. what can happen in russia? we will discuss with my guest as the next hour pursues to 2021. it was meant to be the beginning of the end of the coronavirus pandemic. the vaccine is being rolled out around the world. light at the end of the tunnel. five is that dimming? the weekend brought little good news in the fight against covid. cases are nearing 100 million. vaccines are slow to roll out. nations are locking down. add some more bad news from the prime minister of the united kingdom, boris johnson. >> it appears that there is some

evidence that the new variant, first identified in london and the southeast, may be associated with a higher degree of mortality. manus: for markets, the focus this week is d.c. it's on stimulus, the talks, the fed meeting. it will give a picture of how companies are doing. to name but a few. martin malone is my guest, chief economic analyst. in what way are markets set up at the moment? they seem to be propelled higher by a macro boost which trump's any ratchet in the virus. are you still convinced that macro boost will trump these new lockdowns we are seeing? good morning. >> how are you?

the market has a few things to focus on and we have to -- the vaccine issue is almost separate from the macro issue. the macro issue is very bullish and not just -- we have already seen in 2020, but it is accelerating in 2021 and we will see that into 2022 and a macro issue is the power behind the asset price rally that we are seeing which we expect to continue for the rest of the year. annmarie: as we see these vaccine supply chains perhaps come under a little bit of pressure, new lockdowns roll out, martin. do you hold back in terms of the growth outlook overall? the world bank downgrades the outlook to 4%. people say the data affect, you will see china bounce by 8% so it will be differentiated return

to growth, isn't it? martin: yes, absolutely, and this is just going to be tug-of. we had annualized growth in the first quarter in america at around 3.5% and it is now closer to 2% so we actually had to step down because of the issues you mentioned but we need to have no -- on vaccines. in january, america delivered 20 million vaccines. europe, 6 million. the u.k., 6 million. for the past two weeks, we have delivered over one million per day in america and that's biden's target. his target of 100 million and 100 days, they are going to blow straight through that. we could easily see 200 million vaccines delivered in the next 100 days and we only have two vaccines in play at the moment, pfizer and moderna. we will see astrazeneca,

novavax, and johnson & johnson as we get towards the end of q1. annmarie: 200 million vaccines a day. let's say that is your eft, you have a fed meeting this week which will absolutely, i would say, affirm the narrative and push us against any talk of taper. do you think that is the critical message from the fed this week, martin? martin: i think the fed will be a nonevent. they have moved the average inflation targeting. most people think that is a mild movement but it is not actually because this new regime at the fed of average inflation targeting, if we saw that over the last three or four years in 2017, 2018, 2019, the fed would not have been so aggressive in hiking so average inflation

targeting is an important factor and powell is going to push back on any idea of tapering both in the press conference and in the policy statements so basically, the fed meeting per se is actually a nonevent. manus: so let's just -- the fed is a nonevent. i like your very pragmatic approach to what we have got ourselves all keyed up about. that's see what you think of paul singer. he reckons that going back to the 1970's -- i did not enjoy the 1970's. i was very young. going back to the 1970's, we are in for a tremendous surprise in the near future. the bond markets will significantly and abruptly reprice. if i look at the speed of repricing and breakevens, which is a quadrupling in the space of 12 months, do you expect the same velocity to breakeven

inflation as singer is suggesting? is that a risk, martin? martin: absolutely it is a risk. you know, back almost one year ago when the pandemic hit in march, the breakeven inflation rate was 80 basis points and just in the last week, we have gone about 200 basis points. but that is the same level as we were in 2016, 2017, 2018, 2019, so 2% inflation is the inflation level that we have in america where we can enjoy levels above 2% and to discuss inflation really is not a short-term issue. this is a medium-long-term issue to discuss inflation dynamics. it's very complex and i don't think we will have the fed reacting because breakevens are about 200 basis points. annmarie: ok, martin. stay with me. we have more work to do, analyzing what the agenda is for

2021. marc malone is the chief economic advisor at alphabet, our guest host this morning. how could i forget? it is the world economic forum and it's going to look a little bit different this year. this week's so-called davos agenda will see world leaders meet virtually to discuss the crucial year to rebuild trust. bloomberg will bring you a piece of the action. the national institute of allergy and infectious diseases director, anthony fauci, the greek prime minister, philip's ceo, and the american heart association ceo, they speak at bloomberg news editor-in-chief roundtable with john micklethwait on the most effective responses to covid-19, the crisis at 5:00 p.m. london time, peter, mexico's economy minister, the w efm d, they

discussed delivering social justice in the new economy. the event begins with a keynote speech from china's president xi jinping, and you can catch full coverage on live . let's get your first word news. laura wright has that from london hq. laura: good morning. protests erupted across russia, demanding the release of a jailed leader. tens of thousands gathered in dozens of cities. according to monitors, at least 3.5 thousand people have been arrested. the u.s. and e.u. are calling for them to be freed. the trump administration's top environmental lawyer allegedly worked with the president to try and cast doubt on the election results. the new york times is reporting he was planning to oust the acting attorney general and he disputes the allegations. in the world is witnessing the greatest rise in inequality on record. according to oxfam, the poor are

likely to feel the effects of the pandemic for years. in the megarich have already bounced back. it is calling on countries to address the disparity, including reforming taxation and canceling the debt of developing countries. 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. manus: thank you very much. breaking news. they see 2021 through 2025 in terms of the sales targets. 5% to 6%, they are sticking to that. we will talk to him in a moment in terms of how we get there. free cash flow by 2025 will be 2 billion euros. when it comes to the actual numbers that we are seeing, on

the fourth quarter adjusted ebitda, it missed estimates. it came in at 1.1 $4 billion, up 6.5% on the year. the estimate was for 1.13. margins, adjusted ebitda, 9%. up year on year from 17.9 percent and beating the estimate. it was the -- we saw a little bit of a drop in the margins. likewise, diagnostics and treatments. we will discuss the numbers with the ceo. he joins us shortly on the global pandemic, the numbers, the lockdowns. what does it mean for his group and the health of the world? this is bloomberg. ♪

manus: it's "daybreak europe." i am manus cranny, resident in dubai.

growth and margin improvements. the fourth quarter ebitda met the estimates. the treatment segments were below expectations of 2.4 6 billion euros. the ceo is franz von putin. -- franz. always great to get your insight. tell me how you are setting up for 2021 with the numbers you put in in the back end of 20. good morning. franz: good morning. we finished the year strong and i am pleased with that. we recorded 7% revenue growth and we improved profitability versus 2019. of course, we were affected by the pandemic. we saw strong deliveries for the acute-care area while, for example, elective procedures were still down, as is well-known in the market. a percent growth in position

diagnosis is already indicative of what a to come in 2021. also, 25 new customers signing up for long-term strategic partnerships just underlines that care providers are looking for innovation to drive better productivity, better health outcomes, but also looking to erase patient and staff experience. the staff was very much affected in 20 and innovations like telehealth, they can just make all the health care processes more effective, more efficient, but also better for patients and staff. 25 and one quarter, i don't recall that in my tenure, so i am very pleased with that. these are all multiyear partnerships where customers will work closely with us or we

will work closely with the customers to help them achieve their transformative goals because we all agree that health care has to change in light of the pandemic but also going forward. informatics and telehealth will feature strongly in that future. annmarie: -- manus: can we get a sense from you, in the fourth quarter, i want to understand the kind of cycle that we are in. fourth quarter was a moment of reopening. here we are. we are beginning to close down again in the first 20 days of january. talk me through what that cycle of reopening looked like and what can you tell me about these first 20 days? the yin and the yang of this cycle? frans: i already referred to the fact that acute-care is still very much top of the list with hospitals struggling to cope with the patient load.

in september, october, november, we saw elective procedures rise again much to the level of 2019 but in december, and also in january, they are on average about 30% down versus 2019 and that just shows that hospitals cannot do their normal work and they might be finishing off with consumers at home as they are locked down. there is a strong interest to invest in their home environment, whether that's kitchen appliances or oral care, so we saw 5% growth for our personal health business in the quarter and i would expect also in 2021 to continue to see fairly robust growth for personal health. manus: how do the costs in the business look? we are trying to speak to ceo's and understand the

implications and amplifications for exit covid. are you experiencing higher costs in any way across the business, staff, or supply chain? frans: yes, actually. it is a great question. of course, just as the health and safety measures are expensive, we also see that in the supply chain, shipping costs are currently much elevated versus the past. these are things we need to cope with. at philips, we are always looking for our own transformation to drive productivity and we were able to deliver on our productivity targets despite some of these headwinds. this is also why we were able to expand profitability in the quarter and then for the whole year, of course, we were flat over 2019, which given the circumstances, i think is a very

decent outcome, and it sets us up well for the future. one aspect that is often debated, what is the future of work? will we go back to the offices once the pandemic is under control? we very much think that, you know, people need to come together, need to socialize. it is important for innovation, and philips is an innovation powerhouse and we need people to interact with each other. manus: you detailed very clearly to us last time we were together about the cancellation of the order from last year. the market would like to know, have you managed to sell that inventory, but more importantly for me, what was the new biden administration, what does that mean for health america? are you more optimistic, more bullish, that a biden administration will be good for your business? frans: let's briefly touch upon

the ventilator situation. it was a very large order that was curtailed. in the meantime, we have seen fairly strong demand from international markets and also upcoming markets and we continue to chase and look for ways to help elder -- all the care providers in the world. i am optimistic that we will find a good place at least for a large part of that canceled order. your question on the u.s. market clearly, transformational have to happen to make health care more productive. many of those large-scale strategic partnerships that we were able to sign are also in the united states. i am hopeful that access to care under the biden administration will be a focal point because there are still so many people that do not have access to the care that they need while of course, we are all in agreement that we need to make health care

more productive and affordable. manus: let's see that. we wish you well with the business. come back and speak to us shortly. frans van houten, philip's ceo. coming up on the show, china's president will deliver his first speech in the joe biden era. find out what standard life aberdeen's chairman thinks of relations between the two nations. this is bloomberg. ♪

manus: it is "daybreak europe." i am manus cranny in dubai. xi jinping is set to deliver his first speech since joe biden entered the white house. remarks that could set the tone for relations between the two biggest economies for the next four years. the standard life aberdeen

chairman, douglas flint, told haslinda amin how he thinks the relationship will evolve. douglas: the u.s. will continue to see china as a strategic competitor and i think that is the right way to think of them. i think there are three aspects to the relationships -- the relationship with china, as there are too many other nations. one is there are going to be areas of significant geopolitical differences in terms of approach and things that are happening that need to be called out and spoken house. there is the trade opportunity in terms of mutual investment and the opportunity to access what will be, you know, the largest economy in the world in 10 years time, and then there's the areas where we need global cooperation. i think biodiversity, i think of climate change, you have two important conventions coming up this year where without china at the table, participating, being included, and contributing,

these initiatives go nowhere. haslinda: what do you make of china's efforts to reign in financial risk-taking? some say it is a move in the right direction. douglas: the chinese are the most advanced in the world in terms of the digitalization of retail finance. but with that, extraordinary expansion in capacity and service propositions to retail customers, there is less control from the regulatory authorities as there would be with just a large number of institutions and i think china is pausing to reflect as to whether it has, from a financial ability perspective, the right levers to control what would simply be the aggregation of individual consumers all doing the same thing at the same time. it is the run on the bank scenario that central banks were in part set up to solve. if everyone decided to do something at the same time,

which is a great deal easier in the digital world than walking to the bank and making an appointment, i think that it's right, so i think they are ahead of the game and thinking about -- let's pause as this gets bigger, just as in the social media space, people are now reflecting on -- it's a very, very powerful and all encompassing body of technology. are we convinced that it does things in the way that we want it to do and is it controllable? it's a subset of that but an important one. manus: douglas flint, the standard life aberdeen chairman, speaking with haslinda amin in terms of his perspective, access to china, and growth ahead. this week, it is the west babos agenda. it begins with a keynote speech from chinese president xi jinping. coverage is on bloomberg. the whole team are involved. live .

what will his message be to the biden era? coming up on the show, france to face another lockdown within days. ♪

manus: good morning. i am manus cranny in dubai. it is "daybreak europe." the 2021 outlook darkens as covid variants, crippling lockdowns, vaccine delays chase optimism away. ready to respond? the fed convenes as congress debates. the market looks for more reassurance on rates.

china's president makes his first public remarks of the biden era. merkel, macron followed suit. it is digital davos 2021. walk onto the show. stocks are higher this morning. one or two people are saying perhaps they have been over exuberant answer station list -- and sensationalist. a macro boost is marginally in-line. up .4%. bank of america saying we are in an extreme positioning as they look at their indicator. i love what michael said. if you want to stay rich, start acting like those who want to get rich. this is a late stage speculative bubble so stocks are higher this morning across the world. nasdaq futures up .7%. you have jeremy grantham saying you could have a 1929 style bust and a 1999-2000 last.

roll it over and have a look at the dollar. the dollar is down. the ruble looks through its clinical dislocation on the ground in moscow. 35,000 protesters. the ruble goes higher this morning. the dollar is down. bloomberg says he will break the 70 level on dollar ruble before all is said and done and goldman sachs say there is a buffer there. inventory building up this morning. friend comes back to unchanged. 55-41. that's talk about 2021. it was meant to be the beginning of the end of the covid-19 pandemic. vaccines were to be rolled out around the world. the light at the end of the tunnel, is that dimming? cases are nearing 100 million vaccines, slow to rollout. nations are locking down. add to that more bad news from

the prime minister in the united kingdom, boris johnson. >> it also now appears that there is some evidence that the new variant that was first identified in london and the southeast may be associated with a higher degree of mortality. manus: this comes as france may go back into lockdown within days. french media reports saying macron's government is concerned a new wave of infections driven by more contagious u.k. variant of the virus could spiral out of control. maria tadeo is the reporter on the ground. maria, the situation in france. good morning. maria: manus, you are very right. if you look at the french president this morning, they are operating on the basis that a new lockdown could be announced this week, it could come on wednesday, at a will make that announcement to the country. it's not clear at this stage, and none of this will be

official until emmanuel macron makes it official, is whether or not this will be a copy and paste lockdown similar to that of march and april last year in which everything shut down. to go out in the streets, you needed special documents and everything was really brought to a halt. this new lockdown is one of the options being explored and could see schools stay open and nonessential stores could also stay open with reduced hours. a lot of this has to do with the fears of new mutations and if you look at the overall picture, it is grim for the european economy. at this point, everyone is either in curfew, in a lockdown, or headed towards a lockdown. i hear this many times from officials in brussels. q1, you can forget about it. this economy is probably headed to another double-dip. it's problematic not just from a social perspective but also the economic ramifications that come with this. manus: we are in the midst of this double-dip recession which

is very real. the pharma companies, they are under pressure to deliver. in dubai, notes pop up on your phone to say, you know, round two. pfizer shots have been delayed. we are ahead of the game in this country in terms of vaccine delivery. there's talk of sanctions. is that what we need on pharma companies? maria: well, manus, it may be headed that way. what i can tell you is that in europe, that struck nerves with the european government and we had the double whammy last week. pfizer is already under delivering and have been doing that for a week. they are upgrading their production capability which is good. over the long-term, we are able to make more, but not in the short term. on friday, we had that bombshell from astrazeneca, saying it may have to drastically reduce deliveries because of a glitch. the european governments are saying they signed a contract that if you do not deliver on the doses agreed, that is a violation of the contract and

they will make sure they are respected. that may mean potentially legal action. what i would point to is the words of the italian minister, who put out a facebook post on the weekend, very angry language, saying all of this is acceptable. we are in the midst of a pandemic. whether or not they go for sanctions is not relevant because the italian government, if needed, would do that unilaterally so it's that escalation we have seen in tones by the way the two companies say they will remedy all of this and hit their targets. on a quarterly basis, the problem is that the vaccination plan is done on a weekly basis so the european governments say they find it difficult to plan this if they do not really know what will be delivered when. manus: maria, thank you very much. maria tadeo setting the scene this monday morning on the european vaccination and cobit situation. martin malone is my guest this morning, the chief economic advisor. martin, we talked about the macro boost around the world and

in the united states as a percentage of gdp. when you look at the euro zone, do you think the ecb has got its foot squarely on full financial conditions being favorable? martin: yes, i think so, and there is a lot more that they can do if there's any risks. i think if we look at the budget situation in europe, it's around 6% of gdp this year compared to 10% last year so it's actually a four-point step down. you look at what is going on in america, fiscal policy in 2021 could be 10% so significantly higher than europe and this is why you have ecb members like christine lagarde asking for governments to do more on fiscal so instead of the ecb, i think the focus in europe, particularly with this sort of

roadblock on vaccines and variance and lockdowns, we are going to have to see more fiscal of two points to three points in europe over the course of the year. manus: well that bear out on the you send some narratives for me to take a look at. one of those is the diversions and the curves. you have the steepeners in the united it's of america and i have a flattening in europe. there's no additional fiscal pulse, does this divergence continue? martin: yes, and that yield curve differential is a very good signal because the most important macro number in the entire world across any economy, whether it is the u.k., china, europe, or america, is the tenure interest rate, and the yield curve is part of that so from short-term to long-term, if we have a flat curve in europe,

why do we have a flat curve in europe? because the growth dynamic is nowhere near as good as america. fiscal impulse is nowhere near as good as america. the inflation levels that we have in europe relative to america, european inflation levels this year will be significantly less than 1%. they were 0% last year whereas america, near 2%. almost all the dynamics that we are looking at, much steeper in the american dollar block and much flatter. we need to steepen the european yield curve and this is all policy dynamics. we discussed fiscal needs to be switched on further to steepen these yield curves. manus: does that -- is there a risk that society falls into that or is that not in anybody's

sideline at the moment? martin: no, i think this is, as you know, manus, one of our key the medics of the last decade was central banks have been dominant and a summary of that was these unconventional monetary policies. some people like them. we like them. some people do not. in the 20 20's, fiscal is going to be significantly dominant and we are going to have measures which we summarize as unconventional fiscal policy and it's like the new biden administration. they are in a -- they are in their first few months. the most important thing is what type of fiscal package they deliver. they want to go big. this is exactly what europe should be doing in europe is going to have very, very big problems with leadership changes going on over the next 18 months. they really have to step out and all measures are needed because we are still in a crisis situation so the global healthcare crisis still needs

significant fiscal boosting and we are worried about debt or deficits -- that's misplaced. that's why we class this as unconventional fiscal policy. manus: do you think given the political dislocation that giuseppe conte faces, that italy is a weak link in ability to deliver the fiscal boost that you are talking about? martin: no, not really actually. you know, if you remembered the old tools, fiscal rules today have been actually parked in a corner. we don't talk about fiscal roles. for most of the last decade, italy's fiscal policy was to percent of gdp. last year, it was 11%. this year, it will be 8%. so significantly higher than the average of six for the eurozone.

so it's only an giuseppe conte, they are doing quite an exceptional job and this is a very good example of unconventional fiscal policy in europe. if we look at the interest rate structure, given a fiscal policy like that, you would expect significantly higher interest rates. interest rates are significantly below 1% at .7%. debt servicing costs, which used to be 3% of gdp per year initially, would probably go low 1% for the next two or three years so this is very, very significant tailwinds and we are very bullish on this. manus: ok, martin. let's talk again. let's see whether the spread remains well behaved and contained by the exceptional action of the ecb. thank you very much, martin malone, chief economic advisor.

laura wright is with me at london hq. laura: protests erupted across russia, demanding the release of a jailed opposition leader, braving clashes with riot police and freezing temperatures. tens of thousands gathered in dozens of cities, according to monitors. at least 3.5 thousand people have been arrested. the u.s. and e.u. are calling for them to be freed. giuseppe conte is resisting pressure to resign in the run-up to a critical vote in the senate. the whole newspapers are saying he does not plan to quit but he may change his mind if he fails to recruit enough senators this week. early elections are still thought to be unlikely. the world is witnessing the greatest rise in inequality on record, according to oxfam. the poor are likely to feel the effects of the pandemic for years but the megarich have already bounced back. it's calling on countries to address the disparity including reforming taxation and canceling the debt of developing countries.

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. manus: laura, thank you very much. coming up on the show, protests and 60 cities. the kremlin tries to downplay the demonstrations that have erupted from the jailing of russia's opposition leader. more on the story. this is bloomberg. ♪

manus: it's your monday addition of "daybreak europe," with me, manus cranny in dubai. the kremlin is downplaying the nationwide protest, manning the release of the jailed opposition leader. the demonstrations are the biggest in russia since at least 2018, erupting at 60 cities

where we have seen thousands of demonstrators attained. my next guest says the spread of the protests across the country is what will be most worrying for the kremlin. the principal russia analyst, thank you for joining me. look, a great deal of variance in the estimates of the number of protesters but you talk about the context of who is protesting any talk of newcomers. contextualize for me who is protesting and why is this a different this time to 2018? >> the first thing is that we are starting to see a large number of first-time protesters come out. by some estimates, 45% of the crowd. and that is important because, you know, in russia, you have seen a hard-core of people who already are kind of opposed to the kremlin, who are willing to go ahead on demonstrations and face arrests and all that sort of thing where is this time, you

know, the crowd is being substantially bolstered by people who are kind of new converts to the cause and they tend to be in the 18 to 30 range. these are all preliminary estimates. that's obviously important because, you know, it's a new people demonstrating that coming off the fence and demonstrating that they are no longer willing to accept the political situation in russia. the second point is where the protests are even happening. st. petersburg, these worms were unusually large-scale, but not out of the ordinary. the fact that they were across the country shows the organizational power and cross russian appeal in the cause. manus: indeed. you would say that this takes him from being a marginal, unimportant figure, as it were in the psyche of russians, to

something much more, much more present. what do you mean by that? martin: -- >> it's not necessarily that he was a marginal figure. it is a case that the kremlin had tried to make him one. there was this unofficial policy of refusing to even mention his name on state television, but now that, you know, he has been arrested and the reaction to that has been so strong, that's really no longer a tenable policy, so they have gone from trying to ignore him to really vicious to enunciation of him and that demonstrates that putin is not -- he likes to portray himself as above the fray, as a leader without equal, that there are no other real political forces in russia or alternative political leaders. now, they have to admit that he is a challenger. this does not necessarily mean that he is likely to become president anytime soon but he

has become a symbol for a lot of russians of an alternative political reality, and that is very important because one of the things the regime has relied upon is this idea that there is no alternative that, you know, that you can protest against putin, you can protest against the political system, but the alternative is, you know, unknowable or chaos. what you are seeing now is the fact that there is a clear alternative figure, a clear alternative vision of what russia can be or at least a symbolic one, and that is dangerous if you are the leader of a political system that depends on large part on apathy and acceptance rather than direct repression. manus: do you think that putin will release him? could you see that happening as a policy of appeasement to the protesters? or would it embolden the protesters? >> it is extremely unlikely.

this is a political system that does not like to admit mistakes, first off. you know, and if they did release him, he -- it's not like he would kind of decide to retire suddenly. he would can you -- he would continue to be an extremely powerful opposition force an extremely effective organizer. we would expect that they will keep him in jail for the foreseeable future, try to prevent him from continuing to communicate with his people, from organizing nationwide, and that they will, you know, go after the rest of his organization with gusto at this point. this is a struggle that has been going on for years and i don't think the kremlin is going to let up now. manus: ok. thank you so much, principal russia analyst at papal torque on the latest protest in russia.

2021 is shaping up to be a decade defining year for global business, starting tomorrow. bloomberg will bring you the leading ceo's, the economic heavyweights that map out the strategic blueprints for business in the year ahead. we speak to the ceo's from pfizer, bridgewater, health, and carnival, as well as the norwegian prime minister, tomorrow. coming up, target global management tops the hedge fund managing. the renaissance technology, nowhere to be seen on the list of the big winners. why? dani burger has the details. this is bloomberg. ♪

manus: it is "daybreak europe." i am manus in dubai. top hedge fund managers for 2020. the details. dani burger has the latest. dani: these are from the

investments and we see a pattern that really stood out in 2020, this big dispersion between managers who did extremely well and those who did not. it was a stock pickers market but not everybody picked right. on top is tagger global, bringing in 10.4 billion dollars for the entirety of the year, followed by millennium, lone pine, and another. they got more than $7 billion. one thing we noticed on the top rankings is the absence of one of the stalwarts, renaissance technology in 2019. they hit that number. this is another trend we are starting to see emerge from hedge funds the humans are now beating the algorithms. let's show you partially why this is occurring. factory correlation is the highest in at least two decades so these are things like momentum, growth, dividends, value. it's really hard to distinguish between the performance of these

factors when you have correlations so high so that means a lot of these automated stock pickers, a lot of these factor chasing ones were unable to do as well, especially when we had all these violent rotations underneath the surface so it was really difficult for nonhumans to keep up with. but because we saw the fundamental hedge managers did so well, it means it was a boon for the industry. we saw a lot of flows and if you look at the data, 3.6 trillion dollars is now the entirety for the hedge fund industry. this is by far a record. equity hedge funds now surpassed $1 trillion as well. so those stock pickers, not only did they do extremely well in 2020, but they also got the inflows to show it at as well. an interesting way to start the new year with the humans bringing in the money and outperformance and those others not able to keep up pace. manus: good to have the humans

contributing at some level. thank you very much. dani burger at london hq. that's hope jeremy is not correct and that it's not the last few weeks to put your chips on the table and that we are not in for a spectacular bust. this is bloomberg. ♪

anna: good morning. welcome to "bloomberg markets: european open." i am anna edwards in london alongside matt miller in berlin. matt: good morning. today, the markets say keep the stimulus coming. assets look to the fed to fuel further risk-on rallies. futures in europe and the u.s. point higher at the start of the final week of january. the cash trade is one hour away. here are your top