tomorrow's videoconference between president putin and biden. the russian military buildup near ukraine is expected to top the agenda. the russian state news agency says president putin will listen "with great interest." the white house as president biden will reassert support for ukraine's sovereignty. president biden multistate tour to tout his infrastructure plan is designed to help democrats in next year's congressional elections but he will likely not be able to point to many new roads or bridges in 2022 because the package has money spread out through 2027. a timeline could her and the effectiveness of the law as a campaign issue. china's central bank is cutting the amount of cash that most banks must hold in reserve by one half percentage point in an attempt to boost the slowing economy. the move is expected to release 180 $8 billion worth of liquidity.

the decision comes after an improvement in recent industrial and broader economic data. the u.s. will reportedly declare a diplomatic boycott of the beijing winter games. the decision not to send any u.s. officials to the games and february will be announced this week. the move could be largely symbolic. few u.s. officials are likely to visit china anyway due to quarantine rules and clashes over human rights. global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ matt: it is 1:00 in new york 7:00 p.m. in berlin, and 2:00 , a.m. in hong kong. i'm matt miller.

welcome to bloomberg markets. here are the top stories we are following on the bloomberg and from around the world. u.s. equities rebounding from friday's selloff. we will discuss whether the volatility has affected retail investors risk appetite. a booming year for dealmaking with volume reaching over $5 trillion. jp morgan's global head of m&a speaks with us. and we will discuss the insurance provider's spac deal and discuss the demand for classic cars with mckeel hagerty. the s&p 500 has come back, up one point 75%. 4598. almost 4600. the u.s. 10-year yield rising after the incredible drop we saw on friday.

now it looks like investors are selling the debt. they don't feel the need for their perceived safety of debt. natural gas futures are coming down, although nymex crude is rising. 4% gain after news that the saudi's will start to charge more than three dollars over spot price for their oil, aside that they think demand will hold strong. take a look at crypto after an incredibly bad weekend for bitcoin. this is a four-day chart. bitcoin has come down 14%. only a couple weeks ago we thought we would see a seven handle. now we are under 50. the volatility adding to traders nerves. already on edge after the fed's hawkish pivot. let's bring in katie greifeld for more.

a lot of times when we see big drops in retail assets like meme stocks, they go and liquidate bitcoin to get some liquidity out. is that what we are seeing? katie: i think so. if you think about the past few days, we had a big selloff on friday in tech shares. i woke up saturday morning to a bunch of alerts that bitcoin plunged overnight. crypto in general tends to follow stocks more than anything else, tech stocks in particular more than anything else. i don't think it's a coincidence that that huge drop we saw was on saturday, on the weekend. crypto's defining characteristic, among its volatility, is that it trades 24/7. trading volume is thin, not a lot of liquidity. you tend to see big moves like this, and they leave a mark. rising a little bit, still not able to get above that 50,000

level. matt: we have seen, the contrary, some of these big mega cap tech stocks over a long period of time following close to bear markets. facebook, tesla off 20% from their highs. what are we seeing that drives that? katie: if you look across the tech sector, it is the very speculative areas of the market that are falling. goldman has a basket of nonprofitable tech shares. last week was its worst week since 2020. on the other end of the spectrum, you have those big faang names that are also taking lumps. it is both the expensive stocks and speculative stocks that are taking lumps. i think it all comes back to the federal reserve. we have heard as interest rates rise, as the fed gets closer to lift off, it will affect how

investors view those tech shares. it seems like as we get to the start of tapering and talk about the fedex on the rating tapering, that narrative is starting to take the shine off of those tech names. even today on an update, tech is lacking -- lagging. matt: you mentioned the goldman sachs chart. it shows the drop. normally they buy the dip. after you get these kinds of drops, the pajama traders, have some have been calling them, come in late in the day. normally you don't have jerome powell talking so hawkish we. katie: the fact that we did get this hawkish pivot from jerome powell is the big difference here. a lot of signs that the by the dip strategy is starting to crash. but you look at the etf flows.

last week was their biggest week of flows since june. people are still trying to buy the dip, but it is just not working this time around. what this means for the retail trader, i'm interested to see. they became such a force in market because they were winning hand over fist. if some of these favors continue to lag, whether that leads to retail receding from the market, that will be the story over the next couple months. matt: even smart money looks a little bit concerned here. we saw hyg selloff, corporate credit. a huge short interest in corporate credit etf. we saw bond traders pile into 20-year plus rates, which is counterintuitive if you think the fed will raise rates.

why would you buy treasuries if the fed is going to raise rates within a year? normally you would sell them in that case. i guess it is omicron freaking everyone out, or is it? katie: if you look at the fixed income landscape, it looks like a classic flight to quality bid. i believe a record amount flooding into tlt last week. if you look at the blue-chip and high-yield etf's, you are seeing traders load up on protection. that would point to the fact that people are just nervous all around, even if the fed raises rates, they don't want to abandon those long bonds. maybe they see trouble in the economy. you are seeing that in the treasury and corporate credit etf's. matt: i'm looking at almost a record for short interest in lq d.

traders just pulling money out of hyg for a third week in a row. great to get your take, katie greifeld. wrapping up what we see in the markets and how we are positioned this week. coming up, insuring automotive enthusiasts. we will speak to mckeel hagerty about its public debut and its passion to help car lovers everywhere. i have a couple of questions. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller.

after its public debut on friday, shares of hagerty continue to rise as a specialty provider merged with a spac. joining us is the ceo, mckeel hagerty from outside the new york stock exchange with a special guest. who have you got behind you? mckeel: thank you for having me. this is the very first do is invert, a very luxurious car from the 1920's and 1930's. it took two years to build. what is unusual about this car, the original owner was over seven feet tall. so it is a huge come along car. it is awesome. matt: how do you ensure something like that? we have seen record price after record price for classic cars. some of these things are just

absolutely priceless. what do you do as an insurer when somebody comes to you with a car like that? mckeel: that is the coolest part of our space. so many of these cars have gone up in value. over 40% of every vehicle in the last year went up in value in the last 12 months. when you start talking about the rarest of the rare, you have to start looking at comps, auction prices, what you would do for fine art. it is pretty astronomical to see some of these prices of these really big cars. these are great, the ferreri world has been on fire the past few years. just amazing to watch. matt: i imagine this is going to happen to pretty much all cool internal combustion engines. as we shift to electric, i keep thinking about, what can i get

for $20,000, $30,000? my kids will probably not even be allowed to drive gasoline cars. what kind of growth do you see? mckeel: we are bullish on the growth of the car space. when we started doing some analytics around the space, we discovered over 43 million vehicles in north america registered on the road own for pleasure driving purposes. think about mustangs, corvettes, cars that you would see driving around. they can be in that range. people have a lot of fun with them, they tend to go up in value. we think there will be a place for them long into the future. you are right, the ev world is coming, we don't think it is a bad thing, they will just be a little bit different. the best of them are fun to drive actually. my advice for those interested

in internal combustion cars, find one that you like, maybe one that is maybe a little higher performance, buy it, and enjoy driving it. matt: what kind of growth do you see for hagerty? such an iconic name in the classic car industry, automotive business. it seems you could really broaden out, even growing in the insurance business. what are your plans? mckeel: we have been growing in automotive hindus used spaces. the purpose of the vehicle is to save car driving and culture for future generations. we do a lot of media, have been acquiring some event companies, different things around that car culture in the car world. a lot of growth is coming our way over the next few years. a lot of it will be how we surround the car world with more

hagerty branded activities, offers. we are having a lot of fun in the space. what we discovered during covid, while commuting miles went down, pleasure driving went up. it has been a couple of fun years for us. matt: the stock has done well since the merger. what do you plan to do with that currency you have now got? any specific plans? mckeel: the track record of the past couple of years has been investing around the automotive lifestyle. we are building on a pretty significant digital platform, making lots of investment in that space. ways to create community with our members, not just sell them stuff, but way that we can connect members together. that is a big part of our future. we have some exciting stuff coming in 2022. matt: looking forward to it. appreciate your time.

hey gertie ceo mckeel hagerty. coming up, we will discuss the landscape for global dealmaking. it has been on fire. we are looking at a new record and then some. jp morgan global cohead of m&a is next. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. 2021 as being a global m&a record year again, with volume hitting more than $5 trillion through the end of last month. that is already up 15% on the previous record that was set in 2007. to discuss the strong demand is anu aiyengar, global cohead of m&a at jp morgan, alongside our

deals reporter ed hammond. anu, can this continue? the pace has been frenetic. it has not been the huge deals. a lot of those have fallen through. so many of the medium-sized deals. what is going on? anu: this year has been the stuff that dreams are made of if you are an m&a banker and you dream of deals. you are also right about the trend. while you say the number of large deals has not been that high, 10 plus million deals are similar to the last high. what has been the difference is the one billion to $10 billion is record-setting. 100% higher than last year. that has really driven the overall volumes to these

historic high levels. that trend of activity being in the one billion dollars to $10 billion, we expect that to continue. ed: we are coming into this late stage of the year, it will be a record year. we know it will be amazing in a number of different ways. the question is why? the environment for doing deals looks pretty unfavorable. you have a global pandemic, people not traveling, late stage dynamics. i why are we seeing so much activity? anu: if you look at their traditional metrics, you would expect to have almost no m&a activity. on the other side, companies have faced a need for innovation, digitization, and technology capabilities unlike anything in the past. plus, you have an investor valuing growth above all else. if you look at the past decade,

what have companies been focused on? margin, taxes give you a benefit, and then when you want to drive growth, it has to come from fundamental growth. not share buybacks. a bit of that, too. but there is a record amount of cash generation. s&p 500, about $2 trillion worth of cash sitting there. private equity, dry powder is another $2 trillion or more. add to that the boost that we got from the spac activity. a lot of capital was available but the driver was much more a need for innovation, supply chain, strategic investor demand for growth, fueled by cash, interest rates, as well as the ability to use currency. matt: with all that cash out there, with investors bidding up

gamestop, bitcoin trading at $70,000, she need boo is a thing -- shina ibu is a thing. my mother is talking about nft's. a lot of things are frothy in this market. are we seeing the same thing for m&a? anu: i wouldn't draw that comparison. you are describing more trends affecting the retail market. whereas what you are seeing in the m&a market is a lot more driven by private company activity. the first year that more than 50% of the market has come from private companies. public company boards being a lot more strategic, growth oriented, and management teams having the need to innovate and use technology, faster than

anything they have done in the past. it has been less about ephemeral things about the stock is up or not. that level of volatility is not good for the m&a market because you are looking to price assets. you want a little bit more consistency. what has been good about the equity capital markets this year is while valuation levels have been high, not every company has been treating high. even the market has differentiated in certain sectors. technology, health care, energy transition, where higher growth has been at a more premium. ed: we are in a moment where stocks are down, in on this volatility. are ceo's, boards able to look through that and see, does m&a still make sense? is it still the preferred lever

to get that growth? you have done what you can with buybacks, taxes, trimming elsewhere. anu: are boards able to see through it? short-term volatility? two or three weeks doesn't matter. even when you saw several weeks last year of things coming down and the repricing, that was not in people's sentiment. in general, the strategic priority, the ability to drive that, has been front and foremost, as it should be, with good boards. less about today or tomorrow stock price. having said that, the broader market does affect psychological confidence levels. that is just a human tendency. this year has also benefited from, despite the broader challenges through the global

pandemic and travel and all those restrictions, confidence in boardrooms and management teams being at a high. many ceos have talked about when you have a buy versus build decision, earlier on you may have said i will take time and build it. or you have a new innovation. you may run a test on it before you roll it out. now you didn't have time. you had to figure it out in weeks, maybe a month. so, you skip some of the processes that were delaying and you bought the asset you need it, tried it out immediately across your platform. matt: anu, thank you for spending some time with us. appreciate your insight. ♪ ♪

mark pro -- mark: united states is declaring a diplomatic boycott of the

beijing olympics. the move is largely symbolic. few u.s. officials were likely to visit china anyway due to strict quarantine rules and clashes over human rights the white house says athletes will still participate. researchers say the fact the omicron variant has a large number of new tatian's on the gene that helps covid-19 spread may provide clues on how it develops, according to a group led by scientists at the diversity of cape town. one theory says the strain emerged from an area where people had little access to health care. the variant could have developed in an immunosuppressed person who harbored the virus for a long time. the president of moderna says there is a chance that existing vaccines will be less effective against omicron. stephen hodge told abc that a 50% drop in the effectiveness would require a reboot of existing shots. but, he says it is too early to

tell. iran says bold powers cannot expect it to stop expanding its nuclear work until the sanctions issue is resolved. the latest round of talks ended friday. diplomats tried to salvage the landmark 2015 nuclear agreement, criticized iran's -- to return to full compliance. 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. i am mark crumpton, this is bloomberg. ♪ amanda: welcome to bloomberg markets. matt: welcome both aware bloomberg audiences each at this

hour. here are the top stories we are following. covid cases may be rising, but new data out of south africa shows the omicron variant has yet to overwhelm hospitals, spurring hope the new strain may cause mostly mild symptoms. the variant has vaccine mixers in the spotlight. we look at how one stock is being affected by a tweet from senator bernie sanders. and, tesla pasta -- tesla's stock under pressure following reports the sec has opened an investigation just after elon musk sold $10 million worth of stock. amanda: we are seeing, even with a lot of uncertainty out there, still we are seeing positive action. s&p 500, every subgroup of that market moving higher. led by energy, financials, industrials the weakest are

those that make up big tech. you see this as the nasdaq lags. the 10 year yield up 1.4%. we are thinking the long end of the curve and we are seeing big moves as specific stocks, nvidia, getting hit again as the take review of the arms transactions. certainly a day to sell, if you are nervous. for what it is worth, that seems to be potentially what is going on with tesla. shares continue to fall. this following this report that regulators have opened an investigation into the company. reuters is reporting the sec is looking into whistleblower claims on its solar panels having defects. it is new pressure on a stock that has been under pressure for some time. as you say, that does seem to coincide with the sale of stock by elon musk.

maybe some believers thought if he was selling, they should too. tesla is off the recent high. matt: in sure it is unrelated to the whistleblower complaints. his timing was auspicious. selling coming at that level, was a very smart move by elon musk. if there is any -- to this probe. good to get some of that monetized. joining us for more is dead ludlow. -- ed ludlow. out of the west coast. what do we know about this whistleblower complaint? >> the devil is in the details. this was a whistleblower who was an employee of solarcity which was acquired by tesla. he filed a whistleblower approached -- whistleblower report raising concerns about solar cell safety. he was fired in 2020.

he sued them claiming wrongful dismissal. a sickly saying i got sacked because i raised concerns. his name is stephen hankins. he is the origin of this story. he basically put a freedom of information act request into the sec who confirmed him in writing there was an ongoing investigation into tesla and they did not comment further. the date on that letter, september 24. you mentioned you on's -- elon's selling. it has been sometime since that letter was sent. amanda: we are not going to make a connection, of course, we believe that to others. what i would say about the insider selling, is there a reason people watch that data closely? especially when it comes to tesla where there is a amount of

show me. shouldn't a guy who believes in at the most -- does he have a right? do you agree this kind of cycle -- ed: he took a poll. amanda: he had already sold by the time he got the poll results. ed: all we can do is follow the data. similarly -- some of the losses were down by .5%, but we were in bear market territory by that november hi. some of this selling was planned. a portion of this selling, as we know from the filings, was directly tied to tax obligations. but, not all of it. we can't pretend to know what is inside elon musk's head. we know he has followed with the commitment and is on his way to selling 10% of his original stake. there might be more to come. matt: to be fair, i sometimes

daydream about starting a trillion dollar company. it is always a puzzle how i am going to get cash out of that. you need to be able to monetize some of it. amanda: that is what you daydream about? matt: sometimes. amanda: taking cash out of your trillion dollar company? matt: what is the exit look like? -- what does the exit look like? everybody needs cash. i also think a lot about new cars. i want to see rivian and this new generation of tesla's, but lucid is also in trouble with the sec. ed: they disclosed that they received a subpoena on friday. there is not a lot of detail. the usual caveat, they do not know the scope of the investigation.

but, it seems kind -- it seems tied to the original spac merger. lucid agreed to go private, announcing a merger. that transaction closed. that is the extent of what we know. what we know broadly is the -- against the sec has stepped up its enforcement action. enforcement actions against spac's up high. it has been an area to think about -- where they have not been afraid to act. each of those companies have different stories. it is not clear what is going on here with lucid. matt: definitely different stories. richie get your take, ed. thank you for joining us out of san francisco. ed ludlow. coming up, new york city making history, becoming the first to mandate the covid-19 vaccine for the private sector.

more from doctor kawsar talaat, bloomberg school of public health fx analogous. ♪

matt: this is bloomberg markets. new york city mayor bill de blasio said the city would become the u.s.'s first to impose a vaccine mandate on vat -- on private-sector workers. his office said the mandate would cover 184,000 businesses. the city is also strengthening vaccine rules for indoor dining, entertainment and fitness to permit access only for those 12 and roller who -- 12 and older who are vaccinated.

children five to 11 will need to show proof of windows of a vaccine starting december 14. i assume those under five can just do whatever they please? amanda: as usual. they rule the roost. i will say this about the vaccine in position, i would be surprised if you have not already seen a legal challenge. i would expect one, even in the current climate with the general acceptance that this has to happen. private businesses have a certain right to conduct themselves behind closed doors. i would be surprised if this did not cross the line. matt: i am sure you are correct. we will definitely see legal action, especially because this is america. we also know this has been a divisive issue. let's talk about it now with doctor kawsar talaat, bloomberg

school of public health. not on the political side of this, but in terms of the vaccine's efficacy, there have been questions lately, although it does seem to commit even if it does not stop the spread of infection, silky people who are vaccinated from dying and getting seriously ill. am i understanding this correctly? >> you are right. it is hard to create a vaccine for respiratory virus that will prevent all infections, but the vaccines are incredibly effective at preventing severe disease. they are effective at preventing hospitalization and death. we need to keep people healthy. we need to keep all -- we need to keep people off ventilators. the vaccines are the best way to do that. amanda: one of the biggest questions right now is whether this new variant will be bested

by the vaccine. what do we know about how long it might take to really know the answer to that? dr. talaat: it will probably take another week or two until we have that answer definitively. but, what we have seen is people who have been traveling and who have come down with this variance commit if they are vaccinated they have mild symptoms, which is encouraging. to know for sure how the -- to know for sure how effective the vaccines are against the omicron variant, it will take a couple of weeks. matt: what i am more interested in is the future. it is perfect we have a vax and allergist -- what more can we do with this technology? it is great we can keep people from dying, but it would also be great if we keep people from dying of cancer or alzheimer's. do you think mrna has the

potential to do things that previously we could not? dr. talaat: i am an infectious disease doctor. i think mrna technology is one that is incredibly promising. i am very excited by that. i know the technology was actually developed for use in cancer, but i cannot speak to how promising the vaccine will be -- matt: hiv/aids? could we see a vaccine for hiv/aids? dr. talaat: hiv is a hard target because it mutates faster than any other virus. just like the omicron variant had 15 mutations, compared to others we have seen prior, hiv could have hundreds of mutations within the same person.

if in viruses and different variants all within the same person. hiv is a hard target for different reasons than a respiratory virus like sars-cov-2. amanda: we are beginning to see restrictions extended down to younger people. obviously, that will come with benefits, it will give people assuredness that those are vaccinated weigh that against boosters for more vulnerable groups, assuming the capacity to deliver shops -- deliver shots. should we be focusing on five-year-olds or 75-year-olds? dr. talaat: people who are older should be prioritized because we know their immunity wanes. but, many of those have already gotten their boosters, or are getting boosters. in the meantime, we want to keep kids in school. the best way to do that is to

make sure they are vaccinated as well. i do not think it is a zero-sum game where we choose one or another. i think capacity may take patients, but i think we have the capacity to provide boosters to those who are most vulnerable and vaccinated kids. we know that boosters do provide extra protection against getting infection in people who are younger and healthier. but, they are not necessarily at increased risk for hospitalization if they are fully vaccinated. that would be the group to make less of a priority, if there is limited capacity. amanda: great to have you with us. we appreciate your time. doctor kawsar talaat, bloomberg school of public health vaccinologist. that's cool is supported by michael r. bloomberg, founder of bloomberg lp and bloomberg plants herpes. we continue our focus on omicron. stay with us.

♪

amanda: we have been watching certain categories of stock. time for our stock of the hour. shares of pfizer, biontech and returner are falling. pricings questioned by bernie sanders. kriti gupta, that is a lot of decline for a tweet. kriti: pretty strong moves. let's just talk about what one of those factors, i am going to start with the tweet from bernie sanders. there are strong words you're saying this is a theme. last week, investors in pfizer and modernity became $10 billion richer.

it is time for these pharmaceutical companies to share their vaccines with the world and start controlling their greed. enough is enough. senator bernie sanders weighing on those stocks. let's just talk about the cost of getting the vaccine. in the united states, you can get it through health care, insurance, employer, the government, but for other countries there is a major hurdle. modernity cost $31 per dose. for us in the developed world but that may not be a lot but in other parts of the world it absolutely is. this could be a big part of getting the whole global vaccine inequality picture underway. let's take a look at how much moderna shares have gained. they have gained 1200%, over 1200% in two years. but, they are actually down from their august peek -- august peek.

today's move from bernie sanders, also coming from the fact the omicron variant over the weekend, health officials say it is perhaps not as scary as we thought. it is targeting a lower demographic. they can bounce back faster. perhaps it is not as deadly. news like that is going to help -- hurt -- matt: it does not seem outrageous to me, $31 a dose. the ideas that profit motivates these companies that pour money into r&d and find these kinds of solutions. if they are not motivated to do that, it is less likely you would have a vaccine. maybe in this case they would have worked overtime to do that for the good of the world, but for anything else if you say how much is it worth to save the lives of everyone in your country? the company says $60, you would say ok. kriti: i would encourage our

viewers to read this story to get the modernity does. at some point, columbia said we cannot afford this. our health care budget cannot afford these doses. ultimately, the loser is madera who cannot meet the bottom line. matt: richer countries -- unless richer countries step in. kriti: they have to be able to afford it. amanda: i appreciate it. we always want to know what you think. last year, the fed was forced to -- purchases. now, those are being scaled back. it seems that cracks are appearing in the bond market. it would be better to talk about that with our opinion columnist. we are seeing the curve flattened. there is an interesting pricing action before -- and what is happening at the long end.

what do you see? >> it has been pretty incredible. you looked friday, the 10 year yield was down 10 basis points. now it is back up nine. there is a lot of volatility here in the race markets. people are trying to price in a more hawkish fed along with covid-19 variants. the 10 year is fluctuating. 130, 145. the 30 year is down 1.75%. before covid, these were all-time lows in the treasury market and now it is starting to feel like this is the range that they are finding themselves in as the fed is becoming more hawkish. matt: to me, it seems nuts when you've got the fed expecting the hikes to be pulled forward, but leaving treasuries aside, the corporate -- what is happening in the corporate debt world is more concerning because you've got investors short --

investment-grade credit, and then pulling money out of high yield credit three weeks in a row. what is happening? >> i saw that. it was interesting. when you think about l2 d which is the corporate bond etf, that is a long-duration play there too. i am not necessarily convinced that there is this rush out of credit and credits telling us something that is not necessarily super ominous about the market. i think people pulling money out of equities or yields is kind of the same thing. i am not necessarily convinced it is -- amanda: brian chappatta, thank you for that. we've got to go. matt miller, amanda lang, thanks for watching.

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mark: i'm mark crumpton with bloomberg's first word news. top u.s. infectious disease expert dr. anthony fauci says

the biden administration is considering the implications of its covid-19 strategy. during a world health organization led broadcast today, they said they considered ethics. new york city says it will require residents fully to be fully vaccinated to participate in certain events. it would require at least one dose. new york city has seen a post thanks giving rise in covid-19 infections as well as its first documented cases of the omicron variant. myanmar's military regime today reduced a jail term to two years after a special court found her guilty in her first trial since her ouster in