geraldine sundstrom of pimco. thank you very much.his is bloomberg. ♪ ritika: time for the bloomberg business flash. a look at some of the biggest business stories. jp morgan is no longer the world most systemically important accurate the financial stability board reduced jp morgan alongside citigroup and hsbc. it recommended a lower capital burden for the bank and several of its rivals. deutsche bank says working remotely is a privilege you should have to pay for. strategist are proposing a 5% tax for those who work from home on a regular basis. not because of the government lockdown. deutsche bank says that could raise $48 billion a year in the u.s. and could help support low income and essential workers. that is your bloomberg business flash. alix: thanks so much. this is a story everyone was trending around a couple of hours ago. the idea is if you work from home you do not have to pay for lunch or travel so your saving money. if your employer does not give you a desk, they have to pay for it, if they do then you have to pay for i

right now, nicola mai with us from pimco.e are going to broaden out the discussion here on yield and what it does to global yield. that is an asian recovery. china doing better, and clearly identified by stronger pacific rim currencies and adxy out to a record, recent record strength. about recentmean strength to global yield? there is no doubt -- nicola: there is no doubt that china has been outperforming. china is doing better than others. china produces a lot of sanitary goods, ppe equipment, and electronic goods. performers is good for china. i think globally china is not going to be able to lift the global economy out of the current slump. i think europe is in lockdown, which means that there is a double-dip recession. the u.s. is likely to introduce more restrictive measures state-by-state as we get into the winter. obviously the vaccine improves the outlook from the spring, but i think this is going to be a stop and go winter, and i think yields are going to remain very much anchored in this environment. tom: we are go

pimco strongly denies the allegations. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i think we are back with our guest host this thursday morning, the head of investment strategy at rbc wealth management. ask for hanging through the new 2020 virtual television. i want to begin with this question, the dichotomy market is facing. had this euphoria on vaccine news. we hear better vaccine data every single day, but then we have these other grim headlines coming out. passing a grimes milestone of 250,000 dead. if you are in this market, which narrative do you play? there's a short-term and a long-term narrative. in the short-term, the virus continues to wreak havoc in the u.s.. the numbers in europe are stabilizing in some countries at a high level. some countries are making progress, but the virus is going to make this winter very difficult. if you think of the third quarter of the year, we expect to contraction in europe on th

we will speak to enter balls -- pimco globalls, fixed income cio. we are right around the highs of the session after the bloomberg eller index hit a low -- bloomberg dollar index hit a low. this is bloomberg. ♪ are you frustrated with your weight and health? it's time for aerotrainer, a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time, all while maintaining safe, correct form and allows for over 20 exercises. do the aerotrainer super crunch. the pre-stretch works your abs even harder, engaging the entire core. then it's the back extension, super rock, and lower back traction stretch to take the pressure off your spine and stretch muscles. planks are the ultimate total body exercise. build your upper body with pushups. work your lower body with the aerosquat. the aerotrainer is tested to support over 500 pounds. it inflates and deflates in less than 30 seconds using the electric pump. head to aerotrainer.com now. now

byerfect time to be joined pimco portfolio manager.t seems that at least for today , the covid trade was back, even were facingies supply concerns. especially when you have to factor in the potential of more fiscal stimulus measures. tony: great question and there was a lot of optimism at the start of the week from pfizer. but we would caution much of that view about the virus path is already paes -- is already priced in, which is to say most market participants are anticipating the likelihood of a vaccine rolling its way out over the next several months. it is possible because of the efficacy rate that investors pulled the timeline forward. from a baseline of march, april, when the vaccine might begin to get distributive, perhaps that has been pulled forward, but it does not change the long-term picture. the interest rate story has been quite benign and is driven by semi things, including the fiscal story, which is still to unfold because it's not known what the composition of the u.s. senate will be. our advice would be to think of t

pimco. biden is six electoral college modes shy of the 270 he needs to win. best chance may be in nevada where he holds a lead over president trump. the president's campaign is suing in michigan to stop vote counts that have been training toward biden. the president could still be reelected but would have to win all the battleground states that have not yet been called. once all of the votes are counted, it is still likely to be a divided u.s. congress. democrats hoped bar regaining control of the senate have faded. most of their teams to defeat incumbent republicans were unsuccessful. meanwhile, democrats will retain control of the house but will lose seats. oregon, hundreds of protesters angry about president trump's challenges to devote smashed windows and businesses. governor brown declared it a riot and called out national guard troops to help law enforcement handle the violence. global news, 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. francine? to

pimco is being sued by a pair of female workers accusing the money manager of having a fraternity cultureay the company marginalizes, demeans, and undervalues women and encourages gatherings at clubs. the expectation is that women must have a choice between children and excelling at their career. the company has denied the allegations. global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm 120 countries, leigh-ann gerrans. this is bloomberg. francine? francine: thank you so much. all week we have been bringing big conversations from speakers at the bloomberg new economy forum about life after the pandemic. the blackrock chair, chief executive larry fink talked about stimulus and what the means what it will mean for the market. >> i would say overall the market likes a divided government. they want to make sure there are proper checks and balances. we have seen in the past when we have a government that is totally controlled by one party, we have seen more extreme in terms of positions that they have made. and so i thin

christopher smart is chief global strategist and head of bearings institute and libby cantril is manager of pimco. many people are saying that the most important person in this election is jerome powell. >> he's been the most important person in this crisis when the fed pulled out its play book and delivered a strong signal they were going to make sure markets were stable, make sure there was plenty of liquidity in the system and that message has only grown strong are over time i think that may be the most important piece of the puzzle in terms of looking at next year and that looks unlikely to change >> although at the same time, chris, it's interesting to watch the market action the last few weeks to see bond yields moving up as investors are apparently sniffing out the prospect of a biden win, maybe even a blue wave does that tell you the limits of what the fed can do here or why wouldn't interest rates be so sensitive to this outcome and the prospect for a large stimulus package >> i think investors are looking for the fiscal leg to finally kick in. we've been waiting since july arguably for

moment, coming up on "the open" i will be catching up with libby cantrill of pimco on the path forward week, the next months, the next couple of hours. tom: the next couple of hours, people waking up, libby cantrill, forward to the lame-duck and whatever we have in january. what i would also suggest is the idea of debbie dingell on the today show talking up the congresswoman from michigan and part of the political landscape of michigan. "joe biden will win michigan." she is supposed to say that, but there is nevertheless. the confidence as we get more results. lisa: people are looking at the way the composition is coming in. a lot of the detroit region has not been counted, now it is being counted. it is coming in strongly for the former vice president. still a lot more to go. georgia raised, very close. there are about 127,000 absentee ballots still to be counted in dekalb county as well as the county where atlanta sets. hard to see how joe biden will overcome that 100,000 vote lead for president trump, but such a net net race. -- a neck and neck race. 87% counted in michigan. isaac b

." >> announcer: this cnbc program is sponsored by pimco. ♪ you make my heart sing ♪ ♪ wild thing i..k i... you know what i think? i think you owe us $48.50... wild thing. if you ride, you get it. geico motorcycle. fifteen minutes could save you fifteen percent or more. >>> welcome back to "power lunch. the latest great rotation on hold today the rotation away from tech and growth stocks, we mean, that's led the market most of the year, but into value stocks has been the trade of late. the dow and s&p are trailing, trailing the nasdaq which has been positive. that hasn't been the norm. since hitting 52-week highs on september 2nd, several mega techs are down apple is down 13%. amazon is down 9%. microsoft is down 6% from then jason weir, a partner and chief investment officer at albion financial group. he joins us now. jason, i'm sorry, we'll be back in just a couple of minutes. here o"perun."n ow lch this is decision tech. find a stock based on your interests or what's trending. get real-time insights in your customized view of the market. it's smarter trading technology for smarter

pimco denies the allegation.ech says the vaccine made in partnership with pfizer with ech says the vexing made in partnership with pfizer -- know that we will submit fridaynd documents on for the fda. submission to the european regulators. this is an ongoing process. >> this is great news for everybody. we want as many vaccines as humanly possible. how do we know if the vaccine prevents asymptomatic transmission? >> we do not have that information yet. vaccineindicated the should be able to prevent infection. one of the components of the system we are activating is the antibodies. is usingur vaccine -- is utilizing this. this could prevent infection. datall collect indirect showing how well the prevention of infection, but this will be a few months. a long-termere be effect? the antibody response fades, but will there be a t cell response and long-term memory of how to deal with the virus? >> we have evidence for that. cellse analyzed the t from volunteers who have then vaccinated before and after vaccination. th

georgetown mcdonagh school of business former pimco chief business economist.tuff that's happening, i asked you, did the fed get it right you said fed and treasury got it right. things would pick up from here i don't know if you thought you would be this much right look into your crystalball, what do you see happening how? >> things look good although they're giddy. reflecting on what's going on back in march, you're a lawyer, i'll use a legal term, it was a macro force majeure event. it was an act of god and the private sector really couldn't deal with such a macro force majeure event, only our government could and we could see that our government were responding with an all-in approach of the fed and the treasury acting as one and that was the right response. i thought it would work and i thought it would turn the market and effectively that's what happened. >> well, they were really slow when we talked about it in 2007 and 2008 maybe they learned their lesson. they reacted i think your word was boltly th lboldly this time we'll have a new treasury head, like

head of public policy at pimco, and you know, conventional wisdom at this point is that this is goingddle of the road administration than what people might have anticipated if there was a blue wave. do you think that's true >> yeah, good morning, becky i mean, i think there are some things for the market very much to like about divided government, and by the prospect of divided government. no tax increases, for instance very unlikely that you get some personnel in place that are from the more progressive left because they would have to go through senate confirmation and a republican held senate, and you probably could get some, you know, some fiscal stimulus, albeit, it will be quite a bit smaller than if we had seen a blue wave. now, with all of that said, we can't necessarily completely discount the prospect of these two georgia senate seats that are going to run off on january 5th, going to democrats. democrats as we know, under performed on the down ballot races last week. and the odds are against them for sure, but it does look like georgia will probably go for biden and stacey a

we are going to discuss the funding battle between the fed and the treasury with former pimco chief economistaul mccully where he thinks money should be flowing next, on "closing bell. is the salmon wild-caught? she only eats wild caught. [cash register beeps] uh, i need a price check on honey. don't get mad. get e*trade and get more than just trading. investing. banking. guidance. >>> welcome back the treasury department saying it plans to let several of the fed's key emergency lending programs that were implemented at the beginning of the pandemic he can spire at the end of the year the fed saying the programs continue to play an important role for our still strain asked vulnerable economy secretary mnuchin was on cnbc and pushed back and explained the timing of the decision. >> it is not a political issue it is simple really, the story is let's go reappropriate $500 billion i mean, corporations don't need this money it has been a great success. we don't need to buy more corporate bonds. you know, kind the municipal market is working. people are able to borrow lots of money in the markets.

20, 30, almost 40% gains, in pimco -- these are the biggest reits that are out there i didn't put upof the other ones it's basically all the same. 20, 30, close to 40% gains that tells you they believe in the reopening story. meantime, the stay-at-home stuff of course that we are always paying attention to netflix, even clorox was down 5% this we are. this rotation is staring you in the face and happened all week as for the mega cap tech stocks, almost flat. amazon had separate issues out there with regulations and things like that but that's not that bad considering what is going on overall. wall street is trying to look over the valley the covid spike this winter to the spring. the earnings situation, if you take a look, not the fourth quarter numbers but the first quarter of 2021, the numbers are really starting to rise now. and we have so far almost 20 -- no, 16% for the first quarter of the subpoena earnings on the upside it was only 10% or 11% a few weeks ago. the margaret is anticipating things will get better in the spring, then it starts really jumping up in the second quart