we can reopen schools if the right steps are taken, even before employees are vaccinated. but time and again we have heard from educators and parents that have anxieties about that. so it is yet another move to help accelerate the safe reopening of schools. let's treat in person learning like the essential service that that means getting essential workers to provide that service, educators, school staff, childcare workers, get them vaccinated immediately. over 30 states have taken a step to prioritize educators for vaccination. today i am using the full authority of the federal government, directing every state to do the same. my challenge to all states, territories, and the district of

columbia is we want every educator, school staff member, childcare worker to receive at least one shot by the end of march. they will make this happen starting next week and for the month of march. we will be using our federal pharmacy program to prioritize the vaccination of pre-k-12 staff and childcare workers. throughout march they will be able to sign up for an appointment at a pharmacy near them. not every educator will be able to get their appointment in the first week, but our goal is to do everything we can to help every educator receive a shot this month. i want to conclude with this -- we are receiving -- we are making progress on the messily inherited. we are moving the right direction. today's announcements are a huge step to beat this pandemic. this fight is far from over.

i told you i would be straight up with you from the beginning. things may get worse again as new variants spread and we face new setbacks, like recent midwinter storms. our administration will never take this public health threat likely -- lightly. although we celebrate the news of a third vaccine, i urge americans, keep washing your hands, stay socially distanced, keep wearing masks, get vaccinated when it is your turn. now is not the time to let up. i have asked the country to wear masks for my first 100 days in office. now is not the time to let our guard down. people's lives are at stake. we have already lost more, as of today, we have lost more than 511,839 americans. it has got to stop.

we need the united states senate to follow the house and pass the american rescue plan. despite the optimism, without new resources, our entire effort will be set back. we need the resources of the american rescue plan and we need it urgently. we need to expand testing, ramp-up vaccine distribution, fund fema and other efforts, and continue reimbursing states. we need to expand genomic sequencing to stay ahead of emerging variants, buy the protective your, staffing, and other costs required for schools and business to open safely. we need to find it. we need the american rescue plan now. there is a light at the end of the tunnel, but we cannot let our guard down now and assume that victory is inevitable.

we must remain vigilant, act fast and aggressively, and look out for one another. that's how we get ahead of the virus, get our economy going, and get back to our loved ones. please, it's not over yet. great news, but stay vigilant. may god bless you and may god protect our troops. thank you all very much. >> a message there from the president, joe biden, to stay vigilant. he is talking about the rollout of the latest vaccine, this one from johnson & johnson -- president biden: my hope is by this time next year we will be back to normal. it depends if people continue to be smart and understand we still can have significant losses. there is a lot we have to do

yet. >> the main headline out of this -- president biden: a lot. >> probably the main takeaway is joe biden says he is direct and all the states to prioritize teachers and childcare workers, saying he thinks he can get all of those people at least one shot by the end of march. there should be enough vaccine for all u.s. adults to have a shot sometime by may. i am romaine bostick alongside caroline hyde and joe weisenthal. joining us is angelica, who is covering vaccines for us. what stood out to you? angelica: the target to have enough vaccines for every adult to be vaccinated by the end of may, watched -- much sooner than we have been thinking. j&j has promised 100 million

shots by the end of june, but that is a lot sooner to have everyone covered by may. teachers, a lot of states prioritizing them, but to hear this from the top could change a lot of the dynamics. >> he said there will be enough vaccine for every adult by the end of may. we know a lot of adults are not going to take them. there will be a substantial number that won't. does that mean the people who want them, it could come sooner than may if demand starts to dwindle? angelica: we will have to see. there is a big chunk of americans who don't want to get vaccinated. a lot of people are wait and see. how long wait and see is is up in the air. caroline: it is notable he is still asking for a mask mandate when we see texas ending the statewide mask mandate.

are we getting shots in people's arms quickly enough to fight off any rearing of its ugly head, particularly in the u.k. and everyone talking about variants? angelica: every public health expert will say it is too soon to relax restrictions. the president tried to address it by saying not to let our guard down, but we did not see a direct rebuke. we are seeing all over the country thing starting to look like they are getting back to normal. is that too soon? we will have to wait and see. >> merck is confirming they have entered into agreements to support the manufacturing of this j&j vaccine. why were they pulled into this? angelica: merck is one of the largest vaccine manufacturers in the world. it is surprising they are not

one of the companies with a vaccine yet. they were in the race but had to pull their program because the vaccines were not showing promising results. having them out of the race does expand their capacity and give them flex ability to help companies like j&j. joe: are there other vaccines that could come onto the market, or are pfizer, moderna, j&j about it? angelica: we still have novavax showing promising results, same with oxford and astrazeneca, being used in europe. there is a chance those could come through. what happens to them, if we have really vaccinated everyone by then, remains to be seen. joe: our thanks to bloomberg's angelica for breaking this down. coming up, the trade of the decade. our research affiliate joins

next with his view. this is bloomberg.

caroline: breaking news from biden on the process of getting vaccines into arms. while we see the ramifications on risk assets. today we saw some losses, not major, but it paints a bigger story. of reopening. s&p 500 value stocks have outperformed. this whole rotation has been going on for the past month and is to do with vaccines and reopening. joe: the economic recovery and reopening has seen this big rotation to value stocks from

growth. if you zoom out, we are nowhere yet. here is the russell 3000 value to growth ratio. you cannot see the rotation showing up yet. the question is, can this really happen in a sustained way? romaine: my question is, has the definition of value changed? joe: we will get the answer from rob arnott. thank you so much for joining us. i am going to steal romaine's question. do the traditional measures of value, when we look at russell 3000 value to growth ratio, is the legacy value of definition -- the legacy definition of value useful in thinking about the years to come? rob: the legacy definition in the academic world and much of the practitioner world is based

on price-to-book value. stocks at low price-to-book value are viewed as value. stocks with high price-to-book value are viewed as growth. that's a lousy measure in today's economy because more and more companies, a large share of their asset base is intangibles. if i spend $1000 on a desk, my company's book value goes up. if i spend $1 million on r&d, it does not. there is something wrong with that. russell uses a more nuanced approach, but those relying directly on price-to-book are using a very flawed measure. romaine: why do you think we have seen so much trouble trying to value those intangibles? the definition of intangible sort of answers that question. underneath it, we kind of know this value is there. how do we create values where

you can look at the value across a wide variety of companies and industries? rob: you put your finger on the problem. valuing intangibles requires defining intangibles and different companies define it in different ways. money spent on advertising, branding, building reputation. that money is spent on intangibles, reputation and a boost to business over long periods of time. our approach is simple -- take r&d, add it to the book value, and amortize it out over the next 10 years on the supposition that if you spend $1 million on r&d, you better get your money back in 10 years or it was a stupid investment. caroline: let's talk about wise investments. i spend a lot of time trying to convince romain and joe that everything comes back to the united kingdom and the pound.

for once you are backing me out. you are saying u.k. value is the trade of the decade. rob: there is a couple of components. value relative to growth has never been cheaper globally. in the u.s., the spread in price-to-book value of growth versus value was 10 to one at the peak of the tech bubble. last august it was 12 to one. value was 20% cheaper than at the peak of the tech bubble. in september value has outperformed growth by well over 1000 basis points. that's enough to bring out from the hundredth percentile to 98th percentile. it is still extraordinarily cheap. the other nuance is if something underperforms because it's underlying fundamentals are in disarray and disintegration, that's not a bargain. if something underperforms

because it is cheaper relative to fundamentals, that's a different story. over the last dozen years, value has underperformed growth by 50% and value has gotten cheaper relative to growth by 67%. if you have a stock down by half and valuation multiples are down by two thirds, you look at that and say, i can't stand the pain, get me out of here, or do you say, i can't believe how cheap this is, maybe i should take advantage? the u.k. story is different because the u.k. is cheap relative to the u.s. joe: a big part of this rotation, you mentioned substantial outperformance among value stocks, has been associated with increased optimism about the economy, the recovery, the reopening. estimates for gdp growth in 2021 keep going higher and higher.

how much is that length when you look at this rotation and how much does the persistence of this trade depend on gdp growth staying robust and not reverting to the precrisis, lowflation, low growth, mediocre momentum we saw for 10 years? rob: we are all tempted to look at current news and let that shape our investment decisions. i like to ask, is this news front and center today going to matter in five years? it is going to change the way we behave. we will still get amazon packages every other day. but it's not going to radically alter the way we communicate, the way we interact as human beings. it will matter in five years, but not that much.

brexit matters hugely because there is still a lot of pieces to nail down, but five years from now, is the u.k. going to be an isolated island in world trade? or will it be a significant player in world trade, as it has been forever? the short answer is five years from now, brexit will be ancient history and the u.k. will be a vibrant economy trading with the eurozone, the u.s., asia, you name it. if brexit doesn't matter, then cheap valuations created by brexit do matter. they create a bargain. you combine value trading cheaper relative to growth than ever before in history with the u.k. trading cheaper than the

world markets, cheaper than the eu, cheaper by far by a factor of two and a half relative to the u.s. that cheapness in the u.k. spells a bargain in u.k. value. it is easy for british investors to play. a little harder to play that from the u.s., although there are a couple u.s. etf's that capture the u.k. part of the story, if not the value component. joe: that sound in the background is caroline pumping her fist agreeing with you. rob arnott, research affiliates chairman, appreciate you taking time to be with us. coming up, the exodus at goldman. we are going to have the latest details on those departures. this is bloomberg. ♪

romaine: another day, another big departure from goldman sachs. general counsel karen seymour exiting the bank. does that name ring about? -- ring a bell? joe: only because i read it. something to do with martha stewart. martha stewart prosecutor. look at all these departures. either there are a lot of departures or it is totally random and we are making a story about it. some prominent names are leaving. caroline: i have a feeling this happens quite often in about february. joe: what happens in february at the beginning of a new year? what would we know about that? joining us is the wall street correspondent. is it random or is there a

story? >> random is a word we are hearing a lot about this. surprising is another word we hear a lot. we have executives at the top of different divisions leaving. that is pretty rare, but it is not rare to see people leave goldman. we have seen several rounds of this in the last couple of years. romaine: to push back on that, these are pretty high profile names. people who were leading divisions that i thought were the future of goldman, like the consumer division. what am i supposed to read into that? >> the consumer ones are the most surprising because some of these folks were just elevated. one had just taken over the job at the beginning of this year. david stark led a lot of partnerships, a big growth area. it leaves a lot of pressure on a person like stephanie choen to

deliver with two men down. you can make the argument for goldman sachs that these spaces no longer there problem. they had a lot of people at the top. the question is do they fill that again? romaine: do they pay well over there? sonali: they do. caroline: who knew? let's talk about today's exit. seymour wasn't perhaps a topic for the now ceo. when we see david sullivan making this maneuver, it wasn't because he wanted someone else in her role. sonali: she was one of the most senior women at goldman. the general counsel, you don't see them out and about much in public, but they are such a beating heart of a firm. it is common for a ceo to be working with somebody who is their own confidant. karen seymour was known to work

with -- very significantly. it is turning the page a little bit. romaine: some of these other names, how much is this internally for the people staying, a source of anxiety? sonali: if you are a young person, i would ask for a promotion. romaine: you are such a go-getter. joe: you were the one who asked about pay over there. sonali: eric moved to the buy side. hedge funds have been moving money for a long time. particularly chase coleman is the next generation of hedge fund talent. we have seen a few moves like that out of goldman in the last couple of years, the last couple of months. caroline: sonali bostic with the inside track. quite the interesting story.

what's the first stock you are looking at tomorrow, joe? tell me it is rocket company. joe: it probably shouldn't be. tesla, down again today. that whole complex pretty weak today. what else is there? romaine: i am looking at hershey. they just introduced an all peanut butter peanut butter cup. joe: i'm allergic to peanuts. romaine: everything doesn't have to do with you. 100% peanut butter wrapped in a peanut candy shell. if that doesn't spark a rally, i don't know what will. joe: i don't check on stocks i'm allergic to. caroline: let's focus on commodity close. long peanuts. romaine: i did not know joe was allergic to peanuts. do we have extra time to talk about this? our producer says no. caroline: go to twitter for more

in-depth analysis of joe's allergies. joe: bloomberg technology is up next in the u.s. romaine: daybreak australia is up next in asia. this is bloomberg. ♪

♪ emily: i am emily chang in san francisco and this is bloomberg technology. coming up on the next hour, bitcoin dips as president biden's take for the sec, and saying that they must root out crypto fraud. the governors of texas and mississippi have