not for pnc. their revenue comes from fees that means their depositors, they are using the money last thing 12% return on equity which is great. trading at under 1.2 times price to book. the dividend yield is north of 3e%. -- 3%. they have doubled their dividend in the last three years and it should go. buy pnc. >> one of our traders has a question for you b.k. >> the new administration coming in, the indication is they are not bank friendly. one thought in the market is that banks are utilities and utilities trade up one times book and banks have had a tough time trading above one times book over the past several years. are you concerned about an unfriendly environment >> i am not. historically banks have been protected. too big to fail, you name it it. they are important assets and important to the economy >> in the times when banks were protected, did their price to books fall they can be protected and viewed as too big to fails, but also can be viewed as utilities and therefore can command the

we will talk to pnc next hour. i'm waiting for you to bundle pnc, simon and home depot. >> we'll get it done now on the pnc deal, we should mention. you both pointed out $11.6 billion. the proceeds from the sale of lap rock and a huge number they brought in there, too. done easily. amazing what was allowed to be done without people allowed on trading floors those proceeds going towards what jim was just telling you about and carl was telling you $104 billion in assets headquartered in houston, texas, and provides commercial and retail banking sectors and 637 branches we're talking texas, alabama, california, colorado, new mexico they're talking about a coast-to-coast franchise now you see pnc is responding positivi positi positively, not much as the seller carl mentioned let's get to the two deals. jim, let's start with simon. man, i spent a lot of time talking to the lawyers on both sides of this hearing the arguments to why, listen, the taubman side was thought and continued to have a very strong case, but the bu

alix: let's dive into more of that with pnc's purchase of bbva. isning us from madrid bloomberg's charlie devereaux. why are we seeing this deal get done? think it is a happy coincidence or you have one bank flush with cash and one bank in need of a cash injection. a $15ve pnc which had billion whole burning in its pocket after setting a stake in blackrock, and you have bbva, which has one of the lowest capital ratios in your and his business in the u.s. has been struggling. -- capital ratios in europe and whose is this in the u.s. has been struggling. from bbva's point of view this seems like a good deal. times the value assigned to it by analysts. what is the cash in bbva's pocket going to be spent on? charlie: that is a pretty good question and certainly that is one of the options. we just 10 news out in local media that bbva has hired jp it on potential acquisitions. today triednagement to stress they did have other options. is m&a and its key markets. others could be share buybacks and organic road. -- organic growth. alix: a rotating ball of

bbva telling -- selling to pnc.t of speculation about what they will do with the money that they have raised. could they do further m&a within the spanish banking sector? brexit talks are entering another critical week. officials say the coming days will be pivotal as they seek to reach a deal that can be ratified and implemented before the december 31 deadline. frost says he will not be changing his position. good morning to you. week by bothove sides and yet it seems neither side wants to move. david: i'm getting very cautious any dayubbing and th especially at crunch time. timetable is getting incredibly tight. will they get a deal in time for december 31. both sides still digging in their heels. saying the other has to shift their position. and still nobody is blinking. we have had some reports behind the scenes that maybe the europeans are prepared to shift their position on fish in exchange for access to energy markets but we still do not have the details on that. in theirs digging heels say in time is running

adding $66 billion in loans to pnc's portfolio. we are seeing a big bounce at bbva this is the second largest deal since 2008. for me, picking up what he was saying at the could be frennfere out of the 20 largest banks in the world, none of them are in europe it makes you wonder whether or not we'll ever see european banks back in that top 20. >> i would add on the u.s. angel here the u.s. banking market has been right for consolidation for quite some time now as the national players expand more and more and bulk up that's where pnc comes in to play like in texas, huge markets there. more deals under way from that big tie up you remember that bbnt and suntrust that was seen as the first catalyst >> i wonder if this may be politically driven as we've seen the rise with president trump and obviously corporate tax and they thought maybe we'd like to wrap things up before we head to a different type of administration >> also, valuation and timing could play a role here this deal in terms of pricing, paying and seeing the banks take off

and sizable reductions in m & t and pnc as well. filing on wells fargo in august showing slight decrease since then interestingly no change in the firm's nearly $5 billion stake in u.s. bank corp. speaking of multi-billion dollar stakes, sold $4 billion of apple stake, pairing back of less than 4 percent. >> still a sizable position. leslie thank you karen, what stood out to you the move in banks seems pretty notable, especially considering the run in banks since the end of the third quarter when the filing was effective >> right so we don't know at what time during the third quarter they did that but the bank run since september 30 has been enormous so they missed that. although it seems over the last few quarters that they have made a strategic choice to severely curtail their bank exposure. so i don't know that it was so price-generated as much as, all right, we're going to be out of the banks. we saw it with wells fargo i love j.p. morgan, i'm not selling on that news at all. we'll see. might trade down a little bit. but i think

they flash some of the local banks, amity and pnc as well, francine. and pnc as well, francine.t sort of effect does this have on the benchmark? aboutwe have been talking how massive tesla is, and that can be a disruptive event, to put a 390 billion market cap stock into the greater index. managers who track the index would have to sell about $40 billion worth of other stocks in order to just fit tesla in. so dow jones, s&p, the owner and the ittee behind the benchmark has been seeking comes from investors saying should we do this in two parts? what is the best way to include tesla? this could also be a boon for the s&p 500. rallied what has driven elon musk's wealth, and that is part of the reason why the nasdaq 100 has outperformed the s&p 500. asla rallied overnight with $15 billion gain in terms of musk's well. francine? francine: dani burger with the latest on some of these u.s. stocks. a busy day for the new economy forum. business and political leaders taking on issues from the economic fallout, the pandemic, and climate change. we spoke to the u.n. secretary general, and

i want to hit the financials as well pnc says it will buy the u.s. arm of spanish bank bbva for $11.6 billion making it the second largest banking acquisition since the financial crisis the portfolio includes $104 billion in assets under management,er inially 650 branches across the sun belt from california to florida texas is a biggie. the combined company will create the fifth largest retail bank in the u.s. i spoke earlier with the ceo of pnc financial, asked him why now is the right time to go ahead with this big deal >> particularly with the news of the vaccines, we now have sort of a downside risk defined i think in terms of what might happen to the economy. you know, we see an end to this. we see -- because of the low from rates -- a need for scale to be able to grow our franchise. you know, it just -- it worked out. >> pnc has of course been flush with cash after selling off its stake in block rock six months ago. a $17 million stake. while black rock was a bra asset it didn't give the firm strategic advantage and unlike black rock will be ab

pnc financial is said to be in bda'sto buy see operations in the united states.ld pnc it may announce a deal this week although no final decision has been made. -- the u.s. regional banking space which has been under pressure. -- has been seeking acquisitions. is lookingeveloper for perceived drugs in terms of financing over the past two weeks adding to its challenges as it struggles with a cash crunch. the company has been on a death bench at the last year and this as well but the funding pipeline as dried up according to a data provider. it accounted for 14% of ever grand total financing in the last year. said to be considering raising almost $5 million to buy an ipo. itsre told it will list portion in frankfurt valuing the business at $24 billion, that would make it the biggest share sale on european exchange in the past four years. a deal may change. time for bloomberg size and scope. every day we break down one superlative from our coverage and today's number $133 billion. what is behind that figure. simone foxman. the income ofn is the top percentage of ear

the calculus in pnc?he deal for they had a bunch of blackrock cash they wanted to put to use, but why this particular use? hannah: pnc did this during the last crisis, where they bought another smaller plate -- bank. heading into this year, they sold out of their massive blackrock stake. the ceo was very vocal about looking for potential opportunities to do a deal here. this is on the backdrop of pursuing this national expansion strategy. in the past few years, it's been largely organic, so this is supplying that capital to really jump up the ranks in terms of their size. and he we had bill on mentioned that they are always looking at potential deals. obviously, one of the ones they were looking at. a few hours after the news, we got news in spain that bbva is merging with another bank in spain. helpful, does it help them to get rid of the u.s. operations? hannah: it certainly frees up bbva to pursue a deal of its own, anything ranging from buybacks to pursuing another deal. this could serve to do that fo

. >>> in other news pnc has agreed to buy the u.s.perations of spanish bank, bba, for $11.6 billion. the all cash deal will create the fifth largest u.s. bank by assets and comes six months after pnc sold its stake in black rock for $17 million the first large bank merger since they bought sun trust in 2018 and since the financial crisis >>> and finally this morning simon property group, the largest mall owner in the u.s., has reached a revised deal to buy rival taubman centers, a day before the two were set to meet in court over simon's attempt to walk away from the deal originally struck in march before the pandemic. now under the agreement, brian, simon will pay $43 per share, a 9% premium on taubman's current stock price, but it's significantly below the $52.50 deal in february they will share one-third at the transaction price leaving them with about a 20% stake you can see simon is up almost 4% and taubman up 8% is what i saw there, brian. >> so the question is this, when is the last time you were inside of a mall? >> i couldn't

we are hearing that pnc financial services is in talks to by the u.s.f the spanish lender bdba. that is according to a wall street journal report. if this goes ahead, it would become one of the largest bank tie-ups we have seen since the financial crisis. the dow jones reporting that pnc could join imminently. let's get back to the conversation. hiroshi watanabe still with us. did you look at the trade deal signed over the weekend, the parsec -- rcep. are you seeing in a biden administration more of a willingness for the u.s. to return to these multilateral deals and institutions and agreements? we are not sure who will be the next u.s. president but mr. biden has expressed his views to coming back to the multilateral agreements. there is some anxiety for the who operations. the government to government coordination will be possible with biden. readyk japan is very much to join the good coordination with other nations. given how difficult it was for the bank of japan, for policymakers to get back to a non-regressive dynamic, when it comes to price infla

other adjacent models, including home and some of the other things we have talked about, whether it is pnc or commercial or business, all of the things we've expanded to in the last couple years. david: elon musk has said he's going to have an autonomous car out there at some point in the not-too-distant future. and he's also said anybody that is an insurance agent, why don't you call me up, because we are -- we want to hire insurance agents. we are going to be in the automobile insurance business. is that something you are worried about? tricia: not really. david: because? tricia: i think people love our culture, and i think people love working here, and i think we have a huge future. the technology is absolutely there. and i can see a car going from point a to b in a geo-fenced area, but there's a lot to be done. i think it will be a little bit longer than most people had predicted, even years ago. david: when you were able to go into your office, you were well known for walking into the cafeteria and sitting down with the average person. why did you do that? why didn't you just eat in y

did the deal generating -- pnc financial has agreed to purchase bbva u.s. operations.n's largest regional bank. it comes a smaller lenders are looking to scale up. the world's biggest oil company is set to return to the bond market for the first time since last april. audi aramco is looking for $75 billion commitment. it's hired banks including goldman sachs for this sale. that's your bloomberg business flash. thank you so much. let's get to the markets. focusing on some positives out there including the world economy sustaining its engine despite the number of infections rising across the world. looking at european stocks rising. if you look at some of the other things we should be watching out for. we know boris johnson is isolating after he came in contact with a person who subsequently tested positive for the virus. asian nations also signed the massive trade pack giving momentum filtered through to asia. are definitely climbing towards a record and we also had joe biden's virus advisors saying a lockdown is not on the agenda. with fresh vaccine reports on the hori

pnc has agreed to $11.6 billion deal that will make it the largest regional bank in the u.s.sder is buying american banking operations. the u.s. business is focused on mobile banking, but the value took a hit from the coronavirus pandemic. italian payments president to buy rivals agreed to mets. i reach extend next across europe. is retreating from its two decade attempt to crack japan's retail market, selling most of its japanese retailer say you to kkr, valuing the company and $1.6 billion. buyers will try to shore up say you -- futures up 31. that's what you need to know. dow futures up to 81. we don't have the pricing yet on the vix. too early in the morning. fractionallyme in as well. on oil, great stability. $41 rest -- west texas. 43.52, brent crude online. not a very big round of. rally, six dollars. francine, what do you see? it isne: i am seeing -- really all about asia because of the trade deal that they signed yesterday, some dollar weakness, but nothing huge again. i think that the markets are trying to look through some of the sentiment. trying to focus on posit

the insurance industry, especially pnc, is facing stiff headwinds in recent years.iously, extreme weather would be a problem. certainly in some regions and in some companies. how did the pandemic play for you? how does it shake out? theles: yeah, i think pandemic, broadly speaking for the industry, is a massive event that is historic in nature. i mean, it is clearly a big, big challenge for society, and therefore it is a big, big challenge for our industry. i would say that the cost of the pandemic in commercial lines, through liability claims, event cancellation claims, and so on, has been staggering, but, you know, a big portion of these costs, at least in the case of impact -- of intact, we have accounted for for the first part of the year. when it comes to the fact that there is list driving, a lot of relief has been provided to consumers. -- less driving, a lot of relief has been provided to consumers on that front. aggregate, intact has had strong performance. it is a function of the fact that we came into the crisis in a position of strength. otherwise, it is

look at pnc insurance companies that are going through a really interesting pricing cycle right now. think there's opportunity in a lot of different sectors, but focus more and more on these economically sensitive areas that will really benefit of the economy continues to broaden out. to getancis, interesting your insight. thanks for taking this time to bring it to us. this is bloomberg. ♪ ritika: it's time for the bloomberg business flash, a look at some of the biggest business stories in the news right now. i'm ritika gupta. the credit unit at blackstone group is going shopping for quantifier power. the alternative asset manager is set to buy technology driven credit investing firm dci. the firm oversees about $7.5 billion in assets. the dci purchased will allow blackstone to wade deeper into the world of investment grade bonds. two of wall street's biggest data providers are joining together. s&p global has agreed to buy ihf market for about $39 billion in stock. it is the second biggest deal of the year. the proposed tie up is part of a race for scale. the industry's largest play

that was the pnc bank. mr.lls robs the bank and proceeds down keystone drive here, turns right into where we are standing. >> and this is the start of this crazy scavenger hunt? >> this is point a. so what mr. wells is to do at this location is to go into this flower bed, turn over a rock or stone that was in the flower bed and retrieve a note. >> the note under the rock directed wells to his next destination, but he never made it. >> law enforcement makes an entry here, does a felony car stop, and basically placed mr. wells under arrest right here. >> so is this the standoff? >> this is it right here. >> wells' scavenger hunt and his life ended here. less than an hour after the explosion, lamont king of the state police took the notes and followed the rest of the directions exactly as written. >> we went down to the first site on interchange road. he was supposed to find a coffee jar and a couple other things, which we found. everything we found we bagged for evidence. >> king made all the stops, while another

business to pnc.esterday bbva jumped 15%, now trading back in negative territory, down about 5% this on news that they are looking to acquire and possibly merge with one of the other sfoh banks. so giving back some of the gains that we saw yesterday. so a lot of deal making going on in the european banking space. >> you're a former investment professional, when money is free, why not throw it around. >> exactly in sitting on a huge amount of capital, so they have to spend it, why not >> you send me a million, i'll send you a million and we'll both be millionaires how about that appreciate it. >>> the market is rising despite the recent surge in covid cases. the number of hospitalizations now topping 70,000 yesterday, fatalities now 1100 a week, but thankfully with better treatment, the fatality rate has come down a long way since the spring and is now before 99% thanks to all the first responders out there in california, that state breaking its single day record for new coronavirus cases ing governor

business to pnc that with the renewed capital they would look to strengthen some of their influence in domestic markets. but this news is a disappointment to investors particularly those banking on those two actually coming up with a much larger institution with a significant presence. >> and i think investors are asking where does it leave sabadell which was seen as the weaker of the two. shares reacting very sharply negative this morning. so what happens now. i think bancosabadel said that they would potentially expand about their program, but will it be enough when the spanish market is under so much presence in this negative rate environme environment. >> and it all comes back to profitability. you've got the profitability question with super low interest rates, very low net interest margins likely to continue for a long time. add to that as well something that people are not so focused on now and the prospect of insolvencies as a function of the coronavirus pandemic we certainly have seen that companies come under a lot of economic strain, but the number of defaults in the system

but when you cut your stake in jpmorgan by 96% and you do what you do in wells fargo, m & t and pnc, you are making a statement that you think that that sector stinks and you think rates aren't going to arise meaningfully any time soon and those stocks aren't going to do anything maybe you're still a little cautious in your own mind about where we are relative to the virus and the economic comeback and the fact that banks may do better in that environment is there any validity to that? >>. >> absolutely. i think those are all great points look, in order to hold the banks, to sell the braenganks, have to have a viewpoint on what the yield curve is going to do you're not going to make money in declining yield curve, you make money in a steepening yield curve. the fact that he held on to wells fargo for so long and now you have a new ceo that's coming there, not that new, over a year old, where you have the opportunity to make changes and change the culture and he's giving up on it at this level i think is statement on exactly the points you make. to me that was the biggest surprise i t

it's the regional banks seeing the most pain, first republic, pnc, truest financial leading that sector lower. and airline stocks all lower as we get a clearer picture of what holiday travel will look like in this persistent pandemic first, let's get to bob pisani for more on the market action today. bob. >> hello, john what happened to our value rally? banks and things like that moving to the up side, energy stocks it got smacked by covid concerns and by the lack of stimulus. that's a problem what do we do? hey, let's go back and buy work-from-home stocks again. the docusigns, zoom videos, activision, some of the other tech names are barely clinging on to gains. service, which is a big what we call a high beta mover on the day is on the up side. so are some of the semiconductor stocks but the rest of the technical area is pretty much split to the down side. another group doing well is health care. all of the big health care nails, the anthems of the world, humana, united health, all having a very good day overall johns john mentioned the banks rates have been moving back down again. a

. >> i think as we framed it earlier in the week, that all the stars were aligned for pnc and it justover the line listen, if price start to rise and buybacks are back in place by early next year it make it harder to see significant deals again. certainly in terms of the sort of top ten to 12 names we mention quite often. won would have thought if there was going to be a deal, two, three, four months ago was most likely the so many, pnc, special situation, had a lot of cash on the balance sheet, just got a deal over the line we will have to see. but it doesn't seem like a wave of school dapgs has been unleashed as of yet. >>> just over a minute and a half left in the session, mike, what are the internals. >> they have been firm the follow submit for the new york stock exchange, it is 2 to 1 to the positive. even before this bump. that seems like it is in the bulls category look at big tech or big growth the nasdaq 100 against the financial sector, the s&p. earlier it was all tech supporting the market. now they are both kind of in yun turn this is a day when the growth and non-cyclica

on pace for its best week since june truist, pnc, first third, those are all decliners today.calvert, we know responsible investing is hard. if you're concerned about the environment and climate change, how do you find companies that are driving the right outcomes? if you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities? for nearly 40 years, calvert has delivered competitive returns by investing in companies making a difference because we see value in doing good. talk to your financial advisor about investing responsibly with calvert. >>> disney is set to report earnings after the bell and 2020 has been a tale of two companies for them success in streaming and huge losses in parks, movies and cruises. the stock down about 6% this year last quarter disney announced a massive shift to prioritize streaming but it's still a tiny part of the overall business bring in senior analyst for cfr and julia boorstin julia, i'll start with you this strategic shift for them seems to be paying off with a stock price react

>>for the pnc father son championship in december looks like this one is pretty darned good right better tiger woods and it never let his kid swing like that this is 11 year-old charlie's first time in the bigs but he has done well in the juniors. do you remember charlie one of us kids golf event i covered that. i back in member tiger was his caddie yes, how can you lose right when you got tiger tell are telling you what to do well i could still lose to be in the shadow of a great like that we've seen in basketball. >>some sons of. >>famous stars not being able to do it as well as dad did yeah oh he looks like pretty good swing. and you know what's cool but his father son event to is what about the daughters. they i was looking at the roster 5 last year, yeah, annika sorenstam got to be that sun because there is no father daughter event right what gives man to change that. yes they should because in custody because he just have charlie has a daughter too so watch out. >>that's the vibe. >>in 26 is the time and for the first time in san francisco police history. an officer with ties to th

>>for the pnc father son championship in december looks like this one is pretty darned good right shocker woods it never let his kid swing like that this is 11 year-old charlie's first time in the bigs but he has done well in the juniors. do you remember charlie one of us kids golf event i covered that. i back in member tiger was his caddie yes, how can you lose right when you got tiger tell are telling you what to do well i could still lose to be in the shadow of a great like that we've seen in basketball. >>some sons of. >>famous stars not being able to do it as well as dad did yeah oh he looks like pretty good swing. and you know it's cool that this father son event to is what about the daughters. they i was looking at the roster 5 last year, yeah, annika sorenstam got to be that sun because there is no father daughter event right what gives man to change that. yes they should because in custody because he just have charlie has a daughter too so watch out. that's the vibe. charlie's my sidekick when it comes to projects around the house. but every once in a while, she disappears on m

pnc announced a deal this week. no final decision has been made.nt would create giant in u.s. regional banking, which has been under pressure to consolidate. ashley on ireland's -- off afteready taking a business papers said a group that would require them with the support of a development bank. katie p will spend more than $720 million to help korean airlines finance the purchase. juliette: getting some breaking news that nissan is said to be exploring cutting its 34% stake in mitsubishi motors. ofs is a sale of part or all mitsubishi. is according to people familiar. 200 ¥37 billion for the stake in mitsubishi motors. the shareholding now worth around ¥968 million. just reiterating here. nissan said to be exploring cutting the 34% stake in mitsubishi motors. cracks have appeared in this three-way partnership two years after carlos ghosn's arrest. we understand there are no plans to change the capital structure with mitsubishi. a look atet's have markets as japan heads off for its lunch break. this is a day of positivity. index, itasia-pacific wou

and also dialed back investment in wells fargo and pnc and cut its relatively new you stake in gold by>> wish i understood the rationale behind some of those moves. >> which moves >> jpmorgan. i thought this is the time that the banks have been hurt and -- it is above book unlike some of the other ones, but i don't know, it seems like we're coming out of something that would be good >> he's built up a huge position in bank of america remember, he has really pushed up his position. he owns more than 11% of that. >> gold, the mining stocks >> i don't think gold was about him. my guess is the pharmaceuticals were him because it is $5.6 billion. that is a big position that is a massive part of the portfolio, so my guess is that these moves i would guess are you and/or charlie i would guess t mobile is not him. i can't imagine that that is him. but i could be wrong on that i don't think the gold was him, i think the gold was either ted or todd. so i think that moving their position in that is that and jpmorgan chase, a little surprising pnc bank a little surprising i know he liked booth tho

arm to pnc financial. this gives the firepower for a deal and boosts is capital ratio.ng widening losses and plunging revenue due to the pandemic, but it is projecting optimism for a rebound in demand when the economy does recover. the listing is set to be one of the biggest this year. sources tell bloomberg the company plans to raise as much as $3 billion. that is your bloomberg business flash. up next, when will the s&p 500 hit 4000? we will put that question to the markets live team. kristine aquino joins us next. this is bloomberg. ♪ ♪ anna: welcome back to "bloomberg markets: european open" 53 minutes into a european equity trading session that looks modestly negative for european stocks. u.s. futures negative, actually fairly mixed if you include nasdaq. kristine aquino joins us now. i want to ask you about u.s. equities. the question of the day, when will s&p 500, when will it get to 4000? you have been taking soundings on this on the markets live blog. what have you been hearing? : it'sine -- kristine obviously difficult to put a number on when. the skew as far

. >>> a well-known pair of golfers will play together in the next month pnc championship.is son charlie are teaming up. the 11-year-old has golf is junior leagues and seems to have what it takes. it clip of his swing went viral earlier this year. look at that. i mean, what? woods caddied for his son and he loved the bond he and charlie share on the course. >> it is been just an absolute blast to go out there and be with them and he reminds me so much of me and my dad. i wish i had his move. i analyze his swing all of the time. >> so i keep thinking a bunch of 11-year-olds are playing golf, my dad is a mortician. he's my caddy. >> he's a dentist. >> and my caddy is tiger woods. >> and we saw that is the 15th major, that is the first time charlie was there to see him win. >> something tells me he's going to be good. >> do you see that swing. >> and we'll wrap up on friday with this. love this reauction from a young aqua man fan. it is ridiculously adorable. watch this. >> oh, my gosh, my favorite one. aqua man! >> so that is little danny sheehan opening up an aqua man. he is

weighing on the bank stocks today they're all trading to the downside even the regional banks like pnche right bet, carl, seems to be for the market as a modest stimulus, 1 trillion to 2 trillion value is not playing as well in this environment the only growth we have essentially is in tech stocks. and that makes sector rotation a lot harder, big outlook, not great for some sectors of the market carl, back to you. >> yeah, there is some tactical challenges going on today, bob, that's for sure. to rick santelli >> these are big beats the market, markit, the services, 56.9 we're expecting 56, now, my data goes back to early 2018. we just used the high there at 56.8 a little stingy with their history on this series of data points 56.3 on the composite. also a nice beat subsequentially both are higher, 56 on the services, now 56.9, 55.5 on the composite 56.3 now to the charts. we know we have double digit drops on all maturities on the long end of the treasury curve let's not forget we had a somewhat soft adp, we, of course, have a fed meeting tomorrow, one day later on the decision all th

we will speak with rohit kumar of pnc.f power" bloomberg television and radio. ♪ david: this is "balance of power ." former vice president biden has some big plans for taxes on corporations and not individuals. it is far from clear he will win the presidency. even if he does, he may have to deal with this senate controlled by republican. what does that mean for tax policy the next four years? welcome now rohit kumar. served as deputy chief of staff to mitch mcconnell, which will count for another few years here. he got reelected. thank you for being here. what is it mean for the vice president if he is in fact elected president? a republicanl with senate might constant tax legislation. rohit: that's right. that is you broke with senator collins now projected to win makes it increasingly likely republicans will keep the senate. you have a democratic house, republican senate. no matter who wins the white house, vice president biden or president trump, you will be looking at divided government. over the next two years before

this is not the only metric you use but useful way to look at things fifth third, pnc, up, starting toe elevated here. my point here is that the street is starting to price in a normalization of the economy in 2021 you see it here, look at these earnings estimates for the s&p 500, the whole s&p, 2019, 162, this year we go to 136 2021, we have 168. it is back to normal again not only back to normal, we're above where we were in 2019. the street believes suddenly everything is going to sort of go back to 2019. well, i hope that happens. but there is an awful lot of hope priced into that particular estimate, when you look at things like industrials. yes, airlines, definitely have a lot of room to go, energy does, but a lot of these groups starting to get a little tough the guys mentioned american airlines here, doing that 38.5 million share stock offering, so that will increase the flow by 7%, 8%, who could blame them, just remind everyone of the catastrophe, of what happened to the airline industry, 2019, we were talking $45 billion in revenues in american, today, $17 billion. and in 202

that includes pnc by the way one day after that huge deal, 11.6 billion in which it is spending to acquireions of another company. we are moments away from the start that have q&a of that senate hearing that includes mark zuckerberg of facebook and jack dorsey of twitter don't go anywhere. ♪ >> announcer: etf spotlight by invesco. let's invest in greater possibilities together ♪ ♪ we're committed to making college more accessibley, by making it more affordable, that's why we're keeping our tuition the same through the year 2021. - i knew snhu was the place for me when i saw how affordable it was. i ran to my husband with my computer and i said, "look, we can do this." - [narrator] take advantage of some of the lowest online tuition rates in the nation. find your degree at snhu.edu. new projects means you need to hire.gers. i need indeed. indeed you do. the moment you sponsor a job on indeed you get a short list of quality candidates from our resume database. claim your seventy five dollar credit, when you post your first job at indeed.com/home. the men have been taken where's guy? i think

the tiger and his 11-year-old son charlie are going to be competing together in december at the pnc championshipe other big names including john daly and his son. they're very good. event in jul and h tiger caddied for his son summer at a kids golf event in july and had this to say about charlie's game >> i'm still winning for now but he's, he's trying to starting to get into it. he's starting to understand how to play. he's asking me the right questions. i've kept it competitive with his par, so it's been just an absolute blast to go out there and just be with him and reminds me so much of me and my dad. >> can you imagine, tiger woods being your caddy tiger's boy and tiger's carrying your clubs around. and telling you how to read -- >> you know, i'm your son, i'm your daddy, not your caddy get your own clubs i'm out playing golf with tiger, we grew up in southern california we played in a lot of father/sons with earl and my father dick. those rounds are the most memorable rounds of our lives. >> did you ever beat him >> tiger >> yeah. >> never i was in the 17 to 18 category he was in 13 to 15

morgan, wells fargo and pnc financial and also trimming a newly added component gold by over 40%.rkshire and oracle shrift-- shifted their portfolio pc stocks move in reaction. stuart: another one that interests me is cosco, not just for the free lunch but they have a special dividend. susan: i know you are a big fan. stuart: yes, i am. susan: about $10 a share which is a lot in a special dividend with a payout of $4.4 billion for cosco and they can afford it because they have a strong balance sheet with a 17% gain, record growth in sales from july to september because people are buying in bulk. we know cosco from time to time and this is the four special dividend in eight years, but this is a lot per share. stuart: if i own one cosco share right now i will get $10? susan: that's right paid out december 11. stuart: i will get the $10. stuart: united airlines, they are doing something and i don't know what, but it is important. actually, what you got? ashley: they are flying which is good for an airline. united flight 14 took off from newark international airport last night, landed

do i want pay pal over, say, pnc? i don't even know.moves yesterday, highly exaggerated and really have to bear close scrutiny i don't think they were real. >> okay. all right, jim, thanks, see you in a couple of minutes andrew >> meantime, let's swing over to our good friend dom chu, a quick look at the big stocks on the move in this wild premarket. dom? >> we're going to hit on something that jim talked about with regard to autos and some win in dr horton as well we're going to start with dr horton, the shares are higher by 3%, 100,000 shares of volume premarket. the home builder reported better than expected profits and revenues increase in the number of homes it sold and orders for new homes as well. they gave an off tptimistic forecast then shares of auto parts, down 4%, 6,000 shares of volume this company posted better than expected profits in sales. people are fixing their cars during the pandemic. that stock is more than doubled since the pandemic lows in march. perhaps some profit taking there off nearly 4%. we're going to end

at next month's pnc championship. toddler gets a holiday photo shoot that her family will never forget. watch this. >> yea. hello, say cheese! [laughter] reporter: i've seen this 20 times. the little girl smiling for the camera, runs for her life, as you can see, after she gets a glimpse of the grinch sneaking up behind her. her mother sharing the moment on social media. she knows her daughter will eventually get a good laugh. oh, my gosh. [laughter] brian: maybe when she's 12. reporter: it's terrible. i know! [laughter] steve: kind of freaked her out. ainsley: well, he's the grinch. brian: really not that much of a surprise. take a child and scare them with a monster. jillian, thank you very much. ainsley: my dad would have done that and gotten a great kick out of it. steve: and just haunted us forever. it's 8:17 here in new york city. meanwhile, after california governor gavin newsom issued a curfew for so-called curfew breakers took to the street, a look at the growing backlash with the new california congresswoman

among the top corporate stories pnc is buying spanish banking company bbva for $11.6 billion the secondgest banking transaction since the financial crisis in 2008 and simon will buy taubman in a revised takeover deal worth 43 cents a share down from an original deal worth $52.50 >> joe, thanks >>> folks, let's get you set for the market week ahead. joining us now with his thoughts and stock picks is james mcdonald, the ceo and cio of hercules investment and, james, it's good to see you thanks for being with us this morning. >> it's great to be here, thank you. >> so the market has been up all last week since we heard from pfizer about this vaccine. we continue to watch the covid count going up obviously we could be in for a rough few months before we get to that. when you start thinking about all of this, markets are forward looking. what are you thinking right now about markets being at all-time highs? would you buy in here? would you hold off for a little while? what's your thesis >> i believe that the rally that we've seen here in the past week or so isreally a recovery from a 9% pul