francine: global stocks fall. concerns about wa should, a vaccine rollout, and frenzied retail trading dragging equities into the race. gamestop and amc fall after the wall street bet storm turns itself off to new users. and vaccine doses amid an

ongoing debate. good morning, everyone. welcome to "bloomberg surveillance." i am francine lacqua here in london. there is a lot going on, not only through the great newsmakers we have been speaking to come about some news with it came to treasuries and some of the huge equity swings that may be looking at something that is more underlying, concerning to global market participants. global markets slumping, yesterday, focused on s&p contracts, after some of the files have been the most since october. we have a great lineup of guests coming up. we have axel weber coming up shortly, we have the irish finance minister, and the chief executive officer of novartis as well. brian moynihan telling bloomberg, and talking about economics and stimulus. brian: these stimulus dollars,

unemployment, some supplement, $600 under 75,000, those are good items, and stimulus ought to be likewise here, because otherwise we get diminishing returns, and then we have diminishing of how we pay the long-term, but there's a lot of savings, and we expect a good second half of the year. malcolm it is a mistake everybody makes, they talk about the economics, and they forget one simple question, which is we have to win the war on the virus committed right now, we have the vaccine fight commend the vaccine is going into people's arms, and that vaccine changes the course of it. that is a light at the tunnel that was not here last year and at the end of the summer. david: brian, it looks like the consumer is doing really well into january and the end of the year. they see the recovery is moderated right now. that was the term that they

used. what are they looking at? say that they looking at them and may be the cause of concern? brian: when you went down so low and came up so quickly, the economy, again, that is a big economy, so if course it is not going to go up 30% off of that. that would be unbelievable. the idea that the growth rate was going to slow down much more to normal is what you expect, so 5% growth rate is still, the expectation is pretty high for 2021. francine: that was bank of america chief executive brian moynihan speaking to bloomberg's david westin. ireland has extended the coronavirus lockdown this week until at least the fifth of march. the measure includes travel restrictions to non-essential retail, gyms, restaurants, bars ireland's economy look like, and

what help does the government want to see from the european union? mr. finance and president of the euro group. it seems to be taking a life of its own. how difficult is it to impact, to quantify the impact it will have on the economic recovery if we have huge vaccine delays? minister donohoe: we want to see the contract that was agreed with the european union, regarding what kind of been effect it will have on vaccination programs and the economic outlook. it will have an effect if we are not able to meet the vaccine targets that we have for 2021 and beyond. i think it is also important to say that even in the context of the difficulty, here in ireland, for example, and astrazeneca is

an issue. it will still allow us to go ahead with over one million vaccinations. we are still in a position to target what we have, and -- francine: given where we are now, do you have an assessment already on how i delayed vaccine rollout will play on the european economy? minister donohoe: that is forecast later in the year. we normally do that from april onwards. the last forecast in place, particularly by our commission and central bank did already have built into them a continuation of the frictions and a vaccination, so that would be with us as we move into the end of the year. it clearly is the case that governments all over the

eurozone are continuing with stricter public health measures that will affect through 2021, and i would still be very positive regarding what we can do nationally in europe in the second half of 2021 and i think into 2022. francine: minister, are you confident that some kind of compromise between the you and astrazeneca will be achieved and that they will step up how many vaccines they can deliver to europe in the first quarter? minister donohoe: well, we want an agreement to be honest, and an agreement that the commission made was very clear. we want that to be honored. we want the supply that we expected to be available to be available to us, and if there are difficulties, we want transparency and clarity around them. the supply of the vaccine is an example of two things -- multilateralism and it is also an example of how the funding of

research can have such a huge effect on our health prospect, on our society. that is why it is so important that an agreement is honored, if there are difficulties with transparency, and above all, the continued engagement between the commission, and astrazeneca. i 90 this is what the commission has asked for. francine: but minister, given that they lockdown is extended, how do we see the double-dip recession, and what does that mean on finances? minister donohoe: again, for 2021, we did anticipate a difficult start of the year. taking a step back, you know, we have a recovery in place within the european union that we want to have in the second half of 2021, which is to deal with the

very risks that you identified, and it is the very reason why our commission in the european union is continuing to make that availability available to finance ministers, to allow them to put the right measures in place for their economy. so it is in anticipation of the very difficulties that we are discussing that finance ministers and governors all over europe are extending support measures and looking at ways to support employers and support consumers. francine: minister, the irish lockdown is one of the strictest that we see in europe. it is meant to be eased by march the fifth. are you expecting it to go to plan? minister donohoe: yes, i am, but as are many things dealing with this, i know we all have, there are two things that are uppermost when announcing, it is to deliver in a target, it does continue to depend on the resilience and efforts of our

citizens and our society. we have seen the spread of the disease here in ireland now on a five-day rolling average come down by nearly four-fifths. we have seen the spike of the disease come down here in our country by 8% to 10% a day, but it is a great task come about from a mental health an economic point of view, but if we continue with that kind of effort, i am confident that when we get to the end of february and into early march, we will see the disease further suppressed, and at that point, it would be up to the government than to make decisions regarding what we do beyond that. but i should emphasize i expect the decision to be very gradual and very careful. francine: minister, given the discrepancy between what astrazeneca is saying regarding the vaccines, do we need to see the contract? should the contract before public use, so that lawyers can look into it to see who is right and who is not in terms of what

was agreed and how many doses were agreed? minister donohoe: i think this is why the commission has called for transparency, and it is so important, i think it is clear what was the commitment. we believe and know that we are clear on that. we simply want those commitments to be met. but i am very conscious as well about how highly charged the availability of the vaccine is -- not just in europe all over the world. and i think one of the ingredients is clarity. it does go without saying, though, that the european commission and governments all over europe are working really hard to making sure that we have made good use of the vaccine that we have available, and secondly, we are continuing to work with other supply partners to get more of existing, potentially, vaccine as well. so this is a many-pronged effort

for that clarity in the availability, and i think it is of the utmost importance. francine: given the news flow, and there seems to be so much news -- astrazeneca, the vaccines come every thing in between, the market mayhem -- we are, you know, losing sight that there is progress on the banking. minister donohoe: i think that is a fair point. i am glad you brought that up. i think it is so understandable amidst the volatility come of the great challenge and difficulty that we are all facing and the difficulty with day-to-day life as well that we are not always aware of the broader progress that is being made with this disease, if i may say so as well from an economic point of view. huge efforts have been made in europe and to support our economy, and we know this support will need to continue. on the banking front, this week alone, the ambassadors of all countries participate in a banking union and agreed to a

treaty to bring forward and to change the role of the european stability mechanism into the context of the banking union and banking difficulties. and as we viewers will know, this is an issue that has taken years of efforts, years of negotiations. the finance ministers agreed last november, and the treaty has been signed this week, and it is part of how the architecture, the economic architecture of the eurozone has been strengthened to deal with the very kind of uncertainty that you and i have just discussed. francine: minister, thank you so much, the irish finance minister and eurogroup president paschal donohoe. coming up, we have another great interview for you. we speak to the ubs chairman, axel weber. we will talk about market movers , gamestop, and banking in general. this is bloomberg. ♪ bloomberg. ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i am francine lacqua here in london. last year, i spoke to axel weber about market concerns for 2020, then the world looked a little bit different. the u.s. has a new administration, of course markets rally individual stocks this week, driven by big names but by day traders. the fed chair jay powell was even asked about asset prices yesterday. chair powell: if you look at what has been driving asset prices really in the last couple of months, is the connection between asset prices that is not as tight as people think. francine: for the outlook of

2021, axel waiver, ubs chair, and -- axel weber, ubs chair, given the issue with gamestop and surrounding companies, what is your take on the impact this could have on the banking system? dr. weber: first, francine, as you said, normally we would meet in davos this time of year. on the issue you mentioned, we have seen an increasing number of retail driving single stocks but also, you know, markets in general. roughly 30% of the market currently is driven by retail traders, which is way higher than it has ever been before. the emergence of being able to trade from your phone or your phone for free has really facilitated retail becoming a bigger part. just to put it in perspective, yesterday, 39 million contracts

were traded in retail space. last year on average, it was 29, the year before it was 19 million. so this is really strongly increasing, and that is an indication for markets. but at this point in time, you know, it is like everywhere. since trading is important, retail has taken a bigger share of the market. but the phenomenon you alluded to is a specific one, and that is around single stocks that have been depressed. francine: how should banks actually look at some of these market risks? is it completely separate to what you worry about it ubs,, or is there some underlying concern about pent-up demand? dr. weber: i think you have to start from what causes it. there are two sides -- one is short data, so basically short stocks, and the other side is really, you know, retail traders buying options on the expectation they will improve. what kicks in then in terms of market dynamics is those that

sell this option really need to buy the stocks in order to cover, you know, their own positions, and at the same time, as that increases the buying of the shares, it does increase the need for those who have shorted the stock to actually buy the stock to cover any potential losses for them. so they get into what is called the short screen. these two dynamics on both sides of the market are playing out, and for us, we have seen normal business on our options desk come on our trading desk, it just does not run through the banks. it is two sides of the market, you know, hedge in particular were short, and retail traders that basically are moving in a kind of concerted action to drive the prices the other way. and, you know, you could easily say, if you want to avoid these dynamics, just, you know, don't short stocks, and all of the hedge funds are probably revisiting those positions at the moment, but that is not where the major banks and major

players are seeing any difference in their organizations, you know, outside retail options, of course we cover our positions. but it really does not have a big implication. francine: as the former life of a central banker, how should central banks look at it? do they need to, you know, look at market risks and possibly regulate this type of behavior? dr. weber: i think, you know, the key is monitoring this, because, clearly, there is some coordinated action, and, you know, there has been a lot of evidence where basically front running, you know, pollution, and all of these -- collusion, and all of these issues need to be sure, but there is no market behind it, and that is why it is being monitored. the one thing i am being concerned about is, you know, these activities, you know, whether it is the hedge funds covering short positions or others, it basically stops

liquidity out of the market, and that is really draining liquidity, and it is the liquidity implications that i think, you know, need to be monitored closely from a market perspective. i am much less interested in single stocks, single trays, with two parties on either side of the deal. there is always a loser, and financial institutions, that is not the issue. it is the liquidity in the market, if it become the regular pattern and a question around -- does this all happen without market installation? francine: what is your take on the market economy right now, axel weber? are you concerned about a double-dip recession? delays of the vaccine in europe, but we also see the number of infections rise at the same time we are racing to vaccinate people. dr. weber: yeah, so i think, you know, we clearly have revised down our estimate for the first quarter of 2021, and as a result, you know, most of the central banks, the federal reserve, the ecb, have forecasts

that actually have not reflected the start of the year well, so most likely the ecb in march is going to adjust their forecast. i expect that we will see a double-dip recession in the sense that we are likely to see, in the eurozone at least, and negative first quarter around -1.5%, down to around a slightly positive number, and it technically is in line with a negative recession of two quarters, but it is short-lived. we find that in the second quarter. actually, the rebound in the second and third quarter will be quite strong, because the expectation is that the vaccine will help clear the way for less restrictive lockdowns. but in this current period, where we see the rollout of vaccinations and immunizations being, you know, very differentiated across countries, i do think there will be a short impact on the first quarter. so it is more changes to the

profile of the recovery rather than the outlook for the general recovery. for us it means also that most likely the time to be back to pre-crisis level in some countries will be pushed out at the end of 2021, early 2020 two, countries like italy and spain are in that group. it is more about it if we recover or not, it clearly going to happen, it is just going to take more time, and we are going through the recovery through a short dent in the economy. francine: we heard a delay from a number of top anchors that people are kinda fed up, working from home. it is difficult, saying it is often more risky for certain operations. does it delay, for example, your staff returning to work in the office? dr. weber: well, so we have roughly 80% of our staff can work and is working from home. we have the capability of having

95% of our people working from home, which is, you know, quite a strong number. at this point in time, the governments are asking us to have as many people as possible work from home, so for the next couple of months, as the vaccine in switzerland and in europe gets rolled out, with some delay, we will probably see more work from home short-term. medium to long-term, i think it is clear that people will return to the office, but we will see a new calibration of working from home versus working in the office. people will probably use a day or two of working from home as part of the regular work pattern during the week, and we can accommodate that, because we did accommodate it now, and it creates flexibility around, you know, combining family life with a job, so it has many positive aspects, but you can have too much of a good thing if you have it in a concentrated does come and that is currently what people feel about working from home now. they will appreciate being able to do that as part of their week, and we will be able to facilitate that. francine: axel weber, can you

talk to me a little bit about the foot print of ubs, deciding what makes sense and what does not make sense for ubs? i know j.p. morgan entered the u.k. market. how do you see that developing? are there countries where you will retrench from and others where you will ramp up operations? dr. weber: so we just delivered very strong results. we often deal with the banks, and, you know, rightly so, because ubs has three features that matter to your question. the first one is, you know, we are very focused to get through this pandemic. that is our prime focus. the second issue is, beyond that, we are working from a very strong homebase in switzerland, and the swiss bank as some of the anchor of our success and continues to be. we do retail and a lot of corporate interest in the banks outside switzerland.

i do not see that changing, your question about j.p. morgan, i do not see that changing. our focus is on the home market. in the home market, you need to be the dominant player, and this will happen at increasing numbers internationally, rollout, retail, business, funded by a strong homebase. everyone, get dressed warmly, because that headwind is going to continue for retail giants in the home market. francine: [laughs] dr. weber: the third point is, globally, we are a wealth manager. our strategy has been global, so we want to be among the top wealth managers in europe, in asia, and the u.s. we are the number one in europe, number one in asia, we are four or five in the u.s. we will blow our business in the u.s., and we will gain market share. we are ready to take more market share as it involves wealth management, and we are very focused on that.

so a clear focus on growing in wealth management and asset management. francine: andrea our cello just got named chief of credit management. dr. weber: i am not at liberty to talk about it any individual or contract, but we have an individual policy that can be some firm -- summarized into words, the executives take another term in their career, and another organization, it has no implication for us, so we are not in any part of the discussions on this. we have a very clear policy, and we consistently communicated our policy for years it as far as

francine: economics, finance, politics. this is "bloomberg

surveillance." i'm francine lacqua, here in london. a lot of the focus has been on the stock market, pretty wild gyrations. not really following what we saw with game stock -- gamestop, but as a market questions not only legality but what happens from there, we just had a great conversation with axel weber of ubs about how he sees that playing out. global stocks today falling further, quite a lot of things. first of all, earnings, concerns about valuations. we need to look at coronavirus trends and the fallout from these friend g -- frenzied retail trading's in the market. you can see the dax down at 13,332. let's get to bloomberg first word news with you -- leigh-ann gerrans. leigh-ann: astrazeneca -- the drugmaker receiving -- to increase doses going to the block.

their decision to prioritize the u.k. over the e.u. following a production glitch in belgium. russell says it is a breach of the contract, but astrazeneca says it is because that you split its order in three months after -- put its order in three months after britain. the public and private sectors are said to need to work together to combat climate change. the world's largest asset manager revealed new climate commitments early this week. it is asking company to reveal plans to adjust to a net zero economy by 2050. >> if we are going to really be moving to a net zero carbon environment, our society has to move not just public companies. >> companies need to have a plan to how to prepare for climate change, how to build new technologies. leigh-ann: democratic staffers are preparing few options for joe biden's covid relief plan,

one that includes republican support and one that doesn't. the white house is arguing against a wait and see approach against aid. so far biden has failed to win gop backing for his $1.9 trillion package. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries, i'm leigh-ann gerrans. this is bloomberg. francine? francine: shares in novartis dropped the most since october as the company issued disappointing guidance on sales. the swiss drug giant warned many health care systems are only working at 80% to 90% of capacity, as one of the company competitors is embroiled in a heated row with the european union over vaccine delivery. you are one of the world's biggest pharmaceutical companies during a global crisis.

thank you for joining us. i know -- first of all, personally, you know more about vaccines than most people, certainly in europe. when you look at the efforts that novartis has done with the vaccine, you don't have a vaccine arm, but can you play a role going forward and how to help with the pandemic? >> great to be here with you. we are committed to doing our part to support governments and health care systems around the world with respect to the pandemic. we currently are working on our own therapeutic -- without partners, but we are also looking to make available our capacity. we are in discussions with key players both in the therapeutic and -- we are the largest producer of medicine. we look forward to trying to find ways to make our manufacturing capacity available and hopefully helping with the crisis. francine: you are you talking

about that with? i think there was an agreement between sanofi, biontech, and pfizer. vas: we are in conversation with a range of different players, and we hope that if we can come to agreements in the coming weeks are coming days even, that we can provide more on the opportunity. we have production capacity across the network we are willing to make available. capacity could be used in a range between technologies, whether vaccine production or also with distilling vaccines and vials. with a public health challenge, i myself in a public health position want to make sure our company is doing its part. francine: when you look at the huge spat between the e.u. and astrazeneca, does it have ramifications for the rest of the health care business, or

suddenly some of these companies are seen as the bad guys from politicians, or do you worry about politicizing vaccinations? vas: when i look at this, and in my own experience working on pandemic response, with vh -- with the h1n1, response there, first we have to appreciate how incredible it is that we have been able to find three vaccines in such a short amount of time, and also the position to scale up manufacturing for tens of thousand -- from tens of thousands of doses to hundreds of millions of doses -- this is quite early on in the skill of production that we hit pumps on the road because you're hitting such huge volumes of vaccine quantities, and you have not had time to optimize. i remain optimistic that within the coming months this will start to stabilize and larger supplies not only with the current manufacturers but hopefully new vaccines can be worked on right now. what is really important is that

we keep encouraging everyone to have the opportunity to be vaccinated, to continue to provide clarity to the public that these vaccines are safe, that they are important, in order to reduce the overall hospitalization rates and hopefully start to bring the are down for the pandemic and bring the pandemic under control. francine: we have had a great conversation in the past, and you were buried this would put a spotlight on the pandemic and rightly so, but take away from some of the other medicine sick people around the world need. have you seen an situation of that, or do you think things will get better as we start vaccinating people? vas: right now we continue to see an impact on the health care system around the world. i think of it as a sin demo: side the pandemic. we are seeing lower rates of diagnoses for cancer, for

cardiovascular disease. it could be as little as 60% versus pre-pandemic levels of patients in general, around 80% of the health care system, and that will build up a kind of backlog of patients that need clinical care. so i am concerned about that. what is giving me hope is that we are seeing health care systems get better and better at managing this. we see early data, when you start to vaccinate in long-term care facilities, the risk comes down, and hopefully by the middle of this year health care systems will return back to normal. as soon as we gave it to guidance that we did, we think it is prudent to assume that seeing disruptions and the health care systems for the next few months. francine: does it change longer term? does the pandemic change the research or the focus that certain companies will take? vas: i am hopeful -- and if you

look at past pandemics, this has not always been the case -- i'm hopeful that large companies which have the resources like ourselves will stay the course in researching medicines and/or vaccines that will help with future for pandemics. we ourselves are working on a pan coronavirus small molecule drug that we hope will in the coming years be successful, could be used against a range of potential coronaviruses that might emerge. what is critical as we get past this pandemic, is that we maintain the preparedness and maintained that even a few years out. historically what has happened -- you and i have talked about it before -- governments lose interest, companies lose interest. start to de-invest, we are not ready, and then the next pandemic comes. i'm hopefully -- we will do our part at novartis to prepare for the next pandemic. francine: where do you see the

future of your generic drugs unit? do you worry that all of the spotlight is on the great medicine out there and this lags a little bit in pricing, it also shininess? vas: generic drugs ar 90% of the global -- are 90% of the global drug supply. we are investing to make sure that it can sustainably grow, grow profitably come and be a key source of high quality drug supplies to patients. of course, 90% of our profits come from our innovative medicines unit, where our pipeline is strong, our outlook is strong in the median to long-term. that in the medium to long-term. francine: thank you so much for joining us today, vest narasimhan -- vast narasimhan --

vas narasimhan. of novartis. up next, we speak to the chair of the central bank's supervisory board, andrea enria. that is coming up shortly, and this is bloomberg. ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london. now let's focus on the future of europe's banking sector. how worried should we be about nonperforming loans after the current elf and economic crisis eases the echo -- the current health and economic crisis eases? it warns more information is needed about the quality of lending. we are delighted to welcome

andrea enria. as always, thank you so much for joining us. a lot of questions on loans, on some of the credit risks out there. given your line of work? how do you look at market risk? looking at specific stocks in the u.s., is it symptomatic of something that needs to be looked at by supervisory? do we need to focus more on markets in general and some of the underlying risk that could be there? andrea: market risk is not a new risk for supervisors. we are currently conducting a quite extensive on-site inspection -- actually, off-site given the current conditions, but still a campaign in which we are focusing quite a lot. i would say at the moment with the pandemic, let's say the core focus of supervisors is the key priority, for us in the coming year, getting full out of the

covid-19 crisis in terms of the potential default and the -- that is strong, very strong focus of our attention, of course. francine: where do you think the risk for the big investment banks are this year? where are they? andrea: well, the main risks i would say in terms of the fallout of the pandemic is sectors, distributional sectors which are severely hit by the crisis, and exposures the banks in general have vis-a-vis those sectors. and we are now deepening our understanding, and our analysis of the sector exposures of banks and distribution of their customers and trying to get a little bit more of a grip on the

projections of asset quality throughout the year and the impact that the fallout of the pandemic will have on the bank'' balance sheets. in terms of creating risk, one area which has been high in our attention is the loan market, focusing our attention -- in 2017 we issued guidance for banks. particularly attentive to very robust risk management processes in this field. to be honest, we have not seen an extremely positive reaction from banks, so they still have expanded in that market and that is an area where focusing our attention more at the moment. francine: there has been quite a lot of talk about leveraged loans and some of the concerns there. is there anything your team is particularly worried about? is there something in leveraged

loans they have seen, and in what part of the world? andrea: in general this is a market which has grown quite a lot in the last years. as i mentioned, since 2017 we issued guidance to banks with particularly robust processes on that market, and we have identified high levels of exposure as those which the leverage of the counterpart is more -- the debt is more than six times the ebitda of the counterpart, and we have been particularly careful on those loans in which -- which are covered in life, which are not sufficient covenants. we have seen that the share of loans, which are highly leveraged and covenant-light has increased, and we are a bit concerned, so we are focusing in these exposures, asking banks to

contain this type of exposure and to have let's say a lot of attention on support levels in terms of robust risk management. we are definitely becoming more focused on this type of exposure. francine: talking about the timeline, when is the loan spike? as some of these government furloughs, some of these reported guarantees come to expire, when is the crunch time this year for some of these bad loans to come to fruition? for something ugly to happen in finance? andrea: we have been quite forceful in telling banks that they should look through the government support measures, and especially the moratorium. the moratorium to some extent physics hearing -- is obscuring

-- that they don't get anymore messages in terms of the missing payments, delayed payments, and the like. but we are since march last year, the banks need to get additional indicators and understand what the quality of the customer is. and they should be more -- act more promptly in terms of identifying signals that they are unlikely to pay. we have not seen enough of that so far. we have been putting pressure on banks with letters to ceos in 2020. we are now vetting the responses of banks to those lenders and we are asking them to be more prudent and more early. the key point is that they need to try to restructure customers loans early when they see

signals of distress, kicking the can down the road and making -- and see what happens next. francine: are they listening? andrea: well, of course there is concerned they are not listening enough so far, but we hope that with lenders that now they will listen. francine: when it comes to dividends, and you said this in the press conference this morning, thanks are defying policy. do you worry that that will stop the longer this drags on? andrea: not really. the response from the banks has been positive. they understood our concern. they have understood the point is to preserve capital in the system at this moment in which we do not have enough visibility on the capital trajectories -- i mean, the models have been a little bit all over the place, in terms of provisioning, so we

need to zoom in on the banks' practices, be more reassured about the reliability of the capital path, and we also have announced that we expect this to happen in the first half of the year, and by september if there is no surprising -- we announced that we plan to repeal our recommendation and to go back to the old normal of dividend payments -- vetting dividend payments of banks on the usual supervisory processes. francine: thank you so much for your time, andrea enria. coming up, we'll have a lot more on the surprising movements. the reddit versus hedge fund battle. we discussed more from the gamestop saga next. this is bloomberg. ♪

francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london. now let's get back to of course our top story, main street feeding wall street -- feeding wall street and -- main street

feeding wall street, bidding up some of the most -- stocks like gamestop and amc. turning us is dani burger. the story is incredible. what has the impact of this -- these reddit trades been so far? dani: it is to the point where it is not just contained may be on the hedge fund trade. he has spilled out into the broader market. part of the reason is when you initially have hedge fund short targets, which i should say gamestop and amc are falling in premarket trade, but even so when you have the shorts targeted, you start to see hedge fund long suffer as well. that is because they need selloff perhaps to make the money that they need to sustain trade. that is why when you have numbers like d1 capital losing 20% over the last month, point72

as much as -10% to -15% -- yesterday rising, where the rest of the market is falling, really this is a factor of hedge funds long selling into the market and it tumbles from there. it is not just on the market. we also see it in the real world. amc, the impact for them, they were able to raise more money and now they have enough funding to survive the next six weeks as the coronavirus keeps amc theaters closed. francine: how much longer could we see this battle going on? dani: it certainly isn't over yet. some of the signals, the call market for call options is still very strong. we saw a record number of calls traded yesterday, and you see this on the reddit forums. you see everyone saying double down, continue to buy gamestop, don't listen to the media, they haven't bailed out on shorts, let's keep buying and keep those shorts squeezed.

there is still high short interest and a lot of these names. what could change things is regulation. elizabeth warren has spoken about it, but i should say she has framed it in the light of hedge funds and private equity, maybe the ones we should be looking at, francine. francine: dani burger with the very latest on the story that we will continue to watch very, very closely. bloomberg surveillance continues in the next hour. tom keene joins me out of new york. we will have much more on gamestop and some of these reddit trades. we also look forward to treasury. we speak to a couple of people on vaccines, and we have a lot of earnings news. markets a little bit lower. this is bloomberg. ♪

francine: global stocks fall. concerns about valuations, the vaccine rollout, and the fallout of frenzied retail trading dragging equities into the red. the reddit rally hits pause. gamestop and amc fall after the wallstreetbets forum briefly turns itself off to new users. and e.u. officials demand astrazeneca supply the continent with vaccine doses from u.k. plants amid an ongoing battle over shortages. good morning and welcome to "bloomberg surveillance." i'm francine lacqua in london, tom keene in new york. the most important tweet i have seen is something that we both follow thanks, someone from twitter now an expert on something completely different. it is amazing what we are living through. tom: it is an amazing 2021, and you have the good news of apple yesterday and that. but what really struck me with the vaccine is that you cannot get a maxine -- a vaccine