men's for rapid at-home test is surging in the face of the fast spreading mutation. goldman sachs group has told's london staff to work from home if they can. china has reported its first case of omicron. the patient with in a symptom addict traveler found to be carrying the new variant while serving mandatory quarantine. u.k. prime minister, boris johnson, says he's not ruling out possible extra covid curbs before christmas. he spoke at a vaccination center in london today. pm johnson: we have to watch the pandemic and take whatever steps are necessary to test public health. the best thing we can do to protect ourselves, our country, and ensure we have a normal as -- normal of christmas as possible to get through now. mark: the u.k. health secretary

also says there is no certainty that government will be able to keep schools in england open. at least 64 people are dead and another 105 unaccounted for after tornadoes tore through kentucky and neighboring states this weekend. officials are struggling to count the dead because of the overwhelming amount of destruction and rubble. it could be weeks before the final death count is known. kentucky governor, andy beshear, says thousands of homes have been damaged and towns decimated. the white house is president biden plans to travel to kentucky to survey the damage. flight attendants in the united states say alcohol is fueling an increase in in-flight violence by passengers. they are calling on airports to limit travelers access to drinks before flights. those comments may help to further limit the to-go alcohol sales at airports. 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'm mark crumpton. this is bloomberg. matt: it is 1 p.m. in new york, 7:00 p.m. in the berlin, 2 a.m. in hong kong. i'm matt miller. here are the top stories we are following from around the world. we will speak to the ceo of harley davidson as shares surge, the motorcycle maker announced its electric motorcycle division, livewire, will combined with a spac to become a publicly traded company. it was a record year for dealmaking, but how long can the m&a bonanza continue? we will ask a cofounder of a

boutique investment bank. and we will preview what to expect ahead of the fomc meeting as the fed grapples with prices and investors brace for a hawkish tilt. the s&p 500 down about two thirds of 1%. we are coming off of a record close on friday, now back down to 4682, back down below giving levels and what we saw on bleak friday. the 10 year yield a down as investors reach for the perceived safety of government bonds, trading at 142.41. that's interesting as we head into a meeting where we expect the fed to become more hawkish. the dollar stronger and we see the greenback gain against most other major currencies, including the yen, the euro, and the pound. new york crude is unchanged.

not really making any big progress, though it is gaining eight cents a barrel on the nymex. shares of harley davidson are soaring after the motorcycle maker announced it would list its livewire unit publicly through a spac deal. joining us is the ceo of harley davidson and also the chairman and president. i imagine he also has several other titles. thank you for joining us. i've been following livewire for so many years, watched your bikes on the way up. it's such an exciting new direction for harley. why combined with a spac? >> we want to go electric, we have the brands can we have the product and we decided early on in the year it was the right thing to set up a separate division and take it public in a spac merger. it's time and we want to be first to market to define what

electric means in the future. matt: we don't see that many electric motorcycles on the road . a lot of motorcycles in a lot of the front countries, it is very rare i encounter electric bike. how much do you expect that to change in the next 2, 3, 4 years? jochen: if you look at the market, we think the market is ready to grow fast in the next 10 years. the infrastructure is being built and the technology is there. we now have the technology to do it and with livewire, we have the leading product and the leading brand to take advantage of the road we see ahead of us. and as a separately publicly lifted company, it gives us the financial means to build the

most desirable electric motorcycle brand in the world. matt: i have tried the livewire in its prototype form. nothing has compared to the potato you get from a harley davidson v twin. how can you make up for that incredible sound? jochen: i don't think it is about making up, i they gets about what do you want? i have one in my garage and that sound is unique, but there are other consumers that like the electric sound of the motorcycle, and i do, too. it's not a sound, we have made sure that personality of harley davidson, the dna is embedded in the personality of livewire. when you hear the sound like a jet engine, it has the pulse of a hectic heartbeat. when you have taken what we have

going in harley davidson and interpreted it in an electric way, it is why livewire is going to be such an exciting product. matt: how much longer are we going to be able to see harley davidson produce their v twin motorcycles? how much longer can the combustion engine survive in bikes? jochen: the company has been around for 118 years and we plan to be around for the next 118 years, but we have to look at technological opportunities and advancements to make sure we are in the forefront of development. we've been doing so with a very fuel-efficient engine. we've become the number one motorcycle in the touring market with our penn america, but there are still a lot of growth opportunities for harley davidson, not just in the u.s. but in emerging markets like china. at the same time, the launch into electric will benefit harley davidson in the future because think about platform

sharing, technology sharing, creating economies of scale and that is an opportunity for innovation. harley davidson will also look into electrification and doing technology transfer work when possible. right now, our core category is not quite there yet and that's why we are focusing livewire on a european consumer. matt: how did the supply chain snafus or how are the supply chain snafus affecting you at harley and the production at livewire? jochen: production at livewire is fine. we haven't seen any interruption there. we are expanding our network. we launched it first in california, texas, and new york and are expanding to other states and we are going global with europe next year and asia after. we are building our distribution network and the best dealers in

the urban centers will be our partners going forward and we will make the necessary investment to the network. matt: we are showing the penn america right now. i don't know if anyone could have forecast the success, critical acclaim that this bike has gotten. typically, i would have thought you have to go bigger to be better, but you went down to a 1250. what is ahead for harley davidson? do we see a hybrid? what can we expect? jochen: today is really about livewire and setting up livewire as a separate brand. we believe right now, the time is for livewire to electrify the industry and there are growth opportunities. harley has opportunities ahead

of it, you just mentioned the penn america, the number one touring bike in america, which is fantastic. we haven't seen that for quite some time. there is a lot of innovation on the harley side in addition to livewire. matt: it is about livewire. you'll have to excuse me for my enthusiasm for the v twin. i'm excited to see what you make and we are excited to see what you make. talking about livewire, the company's electric motorcycle unit which will be merging with a spac. coming up, it has been a record year for global dealmaking with volume reaching upwards of $5 trillion. how long can that boom continue? will we see a slowdown? we will talk to a founding partner of melissa and company, next. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. a record year for dealmaking has pushed boutique investment stocks to an all-time high, but how long can the m bonanza continue and how well our independent advisor set up for the drop off if activity falls? with us to discuss that and more is the copresident and founding partner of one of the original teak investment firms, moelis & co., alongside our bloomberg deals reporter, ed hannon. let me start the questioning here and ask you about growth in

the future. we've had a lot of people talk about a slowdown in wall street. shouldn't be a surprise after the kind of year we just seen. what do you expect? navid: thank you for having me on the show. it's been an extraordinary year in terms of m&a activity. as we look out into 2022, i think all the ingredients are therefore further continuing high levels of activity. corporate board ceos are looking out and seeing disruption anywhere, technology disruption impacting their businesses. they are seeing the search for and a need for growth and they are seeing disruption beyond technology in terms of eft and energy transmission and deglobalization and supply chain. all of those things can be dealt with through the m&a toolkit, being on the front foot, and making sure you position your

company best for those elements that will be top of mind as we go into 2022. in addition, we've seen a tremendous explosion of private equity activity. by our estimates, private equity is making up approximately half of the m&a market. given the vast amounts of capital private equity has raised, we think private equity is going to continue to be a major driver of m&a activity. ed: you've seen lots of m&a cycles come and go. in this one, we are at this point where companies are doing deals, but i wonder from where you sit, how much that is being driven by the realization that the window is still open, but it may not be for much longer, so let's rush to get something done before it closes? navid: i think a lot of what is driving the market is more structural than cyclical. all of these disruptive elements will be with us for a long time.

the vast amount of capital private equity has to deploy, i don't see that stopping anytime soon. also, the environment is good for m&a right now. we have the stock market at all-time highs and low interest rates, even those worried about inflation, we don't see that impacting m&a volumes. i think the structural elements there and the environmental factors continue to be there. matt: what about the liquidity? if people are willing to pay $50,000 for a bitcoin, doesn't that show you that there's a lot of excess in the system? navid: i think a lot of what you are seeing in the crypto market and the meme stocks is more retail-driven. that has an impact in some of those markets and some of those stocks, but a lot of what is driving the m&a market today are the structural elements. what's happening in boardrooms, when they look out into the

landscape and what's happening with five equity. ed: we are in this moment where covid seems to be back with us for a while. what are you doing to get people back into the office and how does 2020 to look as far as having staff back in a full capacity or semi-full capacity? navid: thanks for the question. starting around the fall, we've been encouraging our bankers globally to come back into the office as much as possible. we think being together is critical for talent element and collaboration and culture. those are fundamental elements for our firm and, as we roll forward, i think there will be enhanced flexibility. we are looking at one day a week where bankers are free to work from home. as we get to hopefully the tail end of covid, we are encouraging people to come into the office

and for folks who feel uncomfortable, we are providing flex ability there. but we do think it is critical to be together as quickly as possible. matt: we are all hoping it is the tail end. we're just seeing headlines across the terminal at the white houses hoping to announce its remaining fed picks before the holiday. we expected this and the most important picked has already been confirmed -- important picked has been confirmed. what does a more hawkish jerome powell mean for you? would one or two interest rate hikes make a difference? navid: i think it is really important for the fed to manage the economy and manage some of the inflationary forces we are seeing in a prudent and thoughtful way. i have a lot of faith the fed and fed chair will continue to do that. i think history has demonstrated

a lot of the fed policies have been positive for the mandate market, so hopefully that will continue and hopefully prudent management will continue to create an environment for economic growth. ed: one of your roles, you are somewhat responsible for hiring new talent. we have this generation that once to have more flexibility, what do you tell them? what is the pitch hiring people into investment banking today? navid: i don't personally see a lot of our bankers not wanting to work hard. we have an incredibly dedicated and loyal staff and administrative staff working hard to bring the best to our clients each and every day. i do think there's a play for more effect -- for more flex ability and we are trying to combine more flexibility and also recognize the importance of

being together, collaboration, and culture and trying to be tactical as opposed to theoretical about what the right fix is. i think there is a mix that will enable us to continue to attract and maintain the best and brightest. matt: good points and great insight. thank you so much for joining us. the copresident and one of the founders of moelis & co. as well as our deals reporter, ed hammond. we will continue to cover the white house news. jen psaki has confirmed the white house will give us the rest of their fed picks before the holidays. this is bloomberg. ♪

matt: this is bloomberg markets. i'm matt miller. earlier, i spoke with the ceo of

finance and its operations in singapore in the u.k.. >> we are not that disappointed. we invested in a locally regulated exchange called xg. we have two duplicates for a small market and it is very pro-crypto. we invested and we will use that hopefully in the future. it's not a huge price. a lot of people misunderstand the situation and get all worried. we are not leaving singapore. we are still very much invested in singapore. singapore is still one of the leading countries in the world

for crypto and blockchain. matt: you told me something similar when you are winding down in the u.k. what are your plans in great britain? >> we are in the process of applying for the license there. we are in the process of applying for applications again. this can sometimes go through changes in terms, but we are proceeding full speed ahead in the u.k. we have a u.k. team faced in the u.k., we are making an office there and established a physical presence. >> i want to ask you about your plans in london. is this around money laundering

regulations? is that why this takes some time? >> this is the easy part for compliance. in the bank industry, in the crypto industry, it is at least on par with the banks. that's a very established process. in the crypto world, we use what we call on channel analysis. we look at blockchain analytics to determine which transactions come from where. they are fairly mature third-party tools being used for that. many regulations only focus on centralized exchanges. they don't look at and fts and many other things. we often talk with regulators on how do we relate this other part? crypto industries is not just

supply chain. even in the centralized space, we have to about how do you choose which one to list and what is the criteria there? in what situations do we use it or not? there is a lot current regulations don't look at and we want to look at a more broader scope. matt: that was the ceo of binance. earlier today, myself and my colleague, anna edwards spoke to him along with caroline hyde. coming up, we will push ahead to the fed. this is bloomberg. ♪

mark: officials are struggling to count the dead because the overwhelming amount of destruction and rubble. >> thousands of homes are damaged, if not entirely destroyed. it may be weeks before we have final counts on both deaths and levels of destruction. mark: the ages of the dead range from five months to 86 years. six of the victims are under 18. a new study shows two doses of the pfizer and astrazeneca vaccines induce lower levels of antibodies against the omicron variant. researchers at the university of oxford says that increases the risk of covid infection and underscores other findings released by the british government that emphasize the need for booster shots.

today, vice president, harris and oz 1.2 billion dollars in support for international businesses to help the economy and stroke -- and social infrastructure of central american nations. as part of the white house plan to address the root causes of migration to the united states. president biden taps vice president to help solve the immigration problem, including to examine the social, economic and put a goal forces that drive migrants to seek asylum here, many of whom across the u.s. -mexico border illegally. 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'm mark crumpton. this is bloomberg. amanda: i'm amanda lange.

welcome to bloomberg markets. matt: welcome to our bloomberg audience. here are these top stories we are following from around the world. as the fed decision comes closer, more pressure mounts to tighten monetary policy as consumers continue to deal with rising inflation. we will discuss what to expect on wednesday -- we will discuss today, what you should expect on wednesday. the demand for booster shots surges as the omicron variant continues to spread. more workers are being told to stay home or go back home. and we will dig into why harley davidson hit the highest level in terms of its stock in 13 months as it tries to race into the electric future. amanda: i can't believe you didn't say high on the hog there. we are certainly not high on the markets today. we've got declines across the board -- the nasdaq leading the way and that shows up on the broad s&p 500.

i want to show you one chart that tells the story when you talk about valuations over the long-term. you can find this on your bloomberg -- this is the price to earnings ratio showing that when it comes to tech, you are getting close to what we saw into the early 2000's. it's a different world and there are different components -- we can argue till the cows come home whether it is apples to apples. but this chart speaks for itself. that fomc decision now 48 hours away and lots of commentary, including from mohamed el-erian. he spoke on face the nation this weekend -- have a listen. the characterization -- >> the characterization of it as transitory as the worst call in

the history of the federal reserve and results in a high probability of a policy mistake. amanda: we have talked a lot about whether the focus on transitory was right or wrong. history will tell if the fed and other central banks have got this one wrong, but if confidence is the question about confidence is wavering and that may be the most important emotion for anybody when it comes to central banks. matt: it's not quite as bad as it was at the beginning of the housing bubble or during the great depression, but it is interesting that powell stuck to his transitory forecast for so long, considering everything that was thriving. inflation did not look like it was going away anytime soon. he may be, in a, proven correct. if we see inflation come back down to normal levels over 2020 two, but the question is and

always was how long his transitory? is it three months, nine months, nine years? i guess depending on who you ask it could be a different time zone. some say it's not the time zone, it's the state. still, very interesting comments. amanda: that word transitory is one lots of economists have debated. let's bring in lara rhame. looking ahead to that fomc, the question of what is transitory underscores sometimes economists see things working in practice and wonder if they would work in theory as the old saying goes. when it comes to the fed, is there confidence in its ability to stay where it needs to be in meeting inflation? lara: this is going to be the dominant discussion of 2022. the fed is embarking on a rate hike cycle, always a difficult path to travel.

it's a time when the economy is naturally snowing anyway. this rate hike cycle is going to be so different from what we saw in late may 10 when the economy did not have as much momentum and inflation was something that was more present in theory. dynamics were thriving and right now it is very much the barbarian at the gate right now. matt was right. the word transitory was problematic because there was no real timeframe around it. when we are faced with rising inflation that is so dramatic, inflation at the start of the year was 1.4%. it is now 6.9%. that is extraordinary. matt: my question is, what is

the name of your cat? [laughter] lara: happy. matt: my question is about growth. even if inflation comes back down, we want growth to remain elevated. maybe even reducing the balance. lara: this is what will be so different about this rate hike. they are winding down for quantitative easing. that frees them up and gives them flexibility to begin a rate hike cycle.

they will have a little bit more information. they will see whether it is remaining very elevated as it is right now. they will probably signal two or three this year. the real issue the fed has is when they start raising rates, markets get disconnected. the fed this time around has the credibility to do that. rate hike cycles are difficult for cycles to navigate.

they may have dropped the ball this time around. amanda: is there too much of an emphasis or reaction on what happens to retail markets. the real economy doesn't reside in the stock price of a company. it is the fed being distracted by valuations that they should not be distracted by? lara: i think he really hit it on the head. they have been derailed by a very dramatic equity market selloff. for this reason, we need to rethink the idea that everything should be put into action. when the fed starts to raise rates, it is a hard time for the market. the fed is going to have trouble

keeping markets focused. that will be what they need to message. equity markets will get distracted. there will be volatility. they are really bracing for it. for that reason, we are trying to look at shorter duration investments that keep you away from the fact that they do that. matt: if an investor has new cash, you don't want to see it diminished by 6.8% any year. it is still kind of a scary time. why would anyone be buying bonds right now? lara: that is the point. interest rates go up when the fed raises rates.

we will probably have this flattening. it is this curve dynamic. they fight inflation. they will not be able to keep everybody happy. matt: thank you very much for joining us.

bioethics professor at johns hopkins bloomberg school of public health about covid. this is bloomberg. this is bloomberg.

>> i have been a great pains to stress to the public that we have to watch where the pandemic is going. we take whatever steps are necessary for tech public health. the best thing you can do to protect ourselves, since our country can ensure this, is to get boosted now. amanda: that was of course u.k. prime minister boris johnson speaking earlier today to reporters at a vaccination center in london. we have been watching companies telling staff to stay home longer. goldman sachs saying work from

home if you can. they join hsbc and deutsche bank and others. because they have to do it. what is interesting is how easily done it is. it is not very hard given we have been doing it for a long time. people who at home can just say stay here longer. matt: it is not nearly as messy. they have little choice. if the prime minister of the country in which you are working says your employees need to stay home, you probably have to go along with that. it is interesting to see how quickly and rapidly omicron has spread. you have the really concerning headlines from boris johnson on sunday night that there is a tidal wave of infections washing over the u.k.. but not as concerning, at least

one person has died of the omicron variant in the u.k. most of the doctors we have spoken to says the severity of the disease is not as bad as earlier. amanda: that is true. let's bring in a doctor and a professor. great to have you with us. pandemics are numbers game. i have been guilty of saying it is good news if it spreads faster and is milder. but that is incorrect. if it is milder, it ends up being deadlier. it gets more people. how do we try to understand the severity of this? >> it is a numbers game.

for most of us, if omicron becomes a variant that vexes -- infects us, we will have relatively mild disease. there will still be some people who do not do well. even with a variant that causes most people milder disease. some people will get sicker. including all of the groups we are aware of who are known to be at risk of respiratory disease. when you have lots of people getting infected, there will be some people, a smaller percentage, but it could turn out to be a significant number, who require hospitalization. that is the numbers game we are watching. the number of people turned out infected. we will have a rise in hospitalizations. matt: obviously no one wants to see any deaths if they can be

avoided. isn't the bigger concern the possible evolution of the virus even further? mutation is a better word. if more people get it, i had read the reason we got the omicron variant was that hiv patients were coming down with a. and that somehow turned into this. could we see a worse mutation? >> let's step back. there is i hypothesis operating that omicron develops in a patient who is immunocompromised and he was infected for a long time. their immune system did not allow them to handle the infection well. it could have been someone with hiv. they could be a different disease. we don't want to lay this of the

feet of someone or a group. the virus evolves. this is not necessarily a harbinger of doom. it could be an indicator of an evolutionary pathway that could work to the advantage of humans. we have to see. amanda: it has reawakened the debate around the global nature of the pandemic. as we now contemplate the idea that a booster is required, what to you think is the best approach to the population that has not had their first those -- dose? you can go to some kind of recalibration? >> the first priority is to get vaccines to everybody.

i know your audience knows it. there is a huge lag in some parts of the world, particularly africa. whether we need to go to a three dose notion for everyone or just for people who are at risk, that is a big, challenging question. there should be enough vaccine for high-risk populations around the world. the challenge will be distribution, equity, and access. -- access. this is different from what we had in the beginning. this is less about who has

access to the vaccine. resources and parts of the world to get that vaccine. amanda: super complex. great to have you. we appreciate it. the bloomberg school of public health is supported by michael bloomberg. stay with us. ♪

♪ >> we have the partners. we decided it was the right thing to set up a separate division. it is timely. we want to be first to market. to define what electric means for the future.

that was the ceo of harley davidson speaking to me earlier this hour. they plan to spin off their electric unit into a separate company. that is our stock of the hour. we are here with a closer look. >> not only are they spinning it off, they are doing it through a sale. expecting $545 million. that would put their valuation at $1.8 billion. let's talk about why this is so important for harley davidson. their sales have been declining. a lot of that is tied to an aging clientele. i'm sorry to say that, but that is the case. the question is how can they improve it? i want to show you an analysts viewpoint on this. they predicted a parabolic jump

in electric bike units sold. 100,000 units. amanda: so interesting. thank you so much for that. that great conversation you had about that spinoff. a pretty exciting time. will you get on an ev when it comes to motorcycles? matt: i'm sure i will someday. if i'm writing a harley, i want to hear it. and i want all of my neighbors to hear it. amanda: great. stay with us. ♪

>> i have bloomberg best menus. president biden will survey -- i

have bloomberg news. the president declared a major federal disaster in kentucky as officials continue to assess damage from the storms. it will unlock aid for temporary housing and loans to help those with property losses. at least 64 people are dead and as many as 100 are unaccounted for. the eu, u.k. and the northwest are working on a coordinated approach. >> they have a high cost from russia. but now, we are trying to do our best