President trump who has been flooding facebook and twitter with unfounded messages that the election was stolen. The new administration expected not to play so nice with big tech. Expect more public engagement, public oversight, and regulation. Those stories in a moment. First, u. S. Stocks paring gains. Markets widely mixed at the end of the day on a bit of an ugly close despite intraday record highs. For more on the markets, lets hasto Abigail Doolittle who been watching the ups and downs. Abigail, what are we seeing here . Abigail if you had a dollar for every time i said this, you would have a nice pile of money. It was another wild day. Stocks surging out of the open. The dow up nearly 6 . Russell 2000 hitting its first record high, more than 6 . At the close, we had stocks pullback to some degree. The dow closing up. Where we had losses, the nasdaq 100 down 2. 2 . The faang complex, those make a cap stocks, down 3. 2 . The reopening trade clearly doing very well with pfizer which itself was up about 8 on that vaccine. Certainly a light at the end of a tunnel. The question is, how long is the tunnel . Speaking of wavering, after the bell, beyond meat stock plunging 30 in afterhours. It is so interesting, once again, the virus all year creating swings in all sorts of stocks. The plunging after hours having to do with a big miss in numbers. They are no longer seeing stockpiling of the beyond meat product. It is really discontinued tale of the haves and have nots. They have nots of the year doing extremely well until that close. Emily with such big divides and volatility, was that worrisome . Abigail we will see more volatility. Volatility breeds volatility. Speaking of breakdown, you and i over the last month or so has been talking about amazon. This stock has been trading poorly. Over the last month or so, down about 9 . Love the move back low the moving average. Earlier today, microsoft and apple higher. By the end of the day, they were also lower. That is why there was this ugly close with those stocks down more than 2 . Some of the other stayathome darlings. Zoom and peloton down sharply more. Amazon and Tech Companies, 25 of the s p 500. Mega cap stocks, it really creates these huge gyrations. The story continues to be the same. Emily wild swings. Abigail doolittle, thank you for covering it all. Finally, after a year of the world being aware of covid19, some good news coming out of pfizer. The company saying that the vaccine it is developing appears to prevent more than 90 of infections. Dr. Fauci with the National Institute of allergy and Infectious Diseases is calling an extraordinary. President elect joe biden expressing optimism. Mr. Biden i will spare no effort to turn this effort around and get a vaccine manufactured industry beaded as quickly as possible to is manufactured and distributed as quickly as possible. It is early and that we dont know how many people will end up in protected with this vaccine. A vaccine that appears to be safe. We have Record Numbers of total infections. Even if there are fewer people per 100 people that are sick, who are dying in the end, you could wind up with more desperate that is the tragic situation that we should all be fighting to avoid. Emily i want to bring in bloombergs Health Care Reporter michelle cortez. Put this into perspective for us. How good is this given the circumstances . Michelle it is unquestionable that this early result from pfizer and biontech is better than anyone could have imagined. It has been less than a year since we even knew that this virus existed. The idea that a vaccine would be available to prevent more than 90 of infections is mindboggling. Work and talking about the potential for a vaccine, they were saying they were hoping for 60 to 70 effectiveness. They would have approved something at 50 . Looking at more than 90 is amazing. That being said, it is early days. We know about 94 infections, less than 100 out of 43,000 people. To say that it is early is perhaps an understatement. Emily talk to us about the outstanding issues. What more hurdles to these vaccines need to clear . Michelle the more urgent hurdle is the idea of safety. We dont have any details from the companies yet. They say they will be putting out some early data in about 10 days from now. Some issues, other types of pain at the injection site, that sort of thing. The thing that people are worried about is longterm efficacy and safety. For that, we simply have to follow people for an extended period of time. In terms of the vaccine itself, some concerns are, will it work really well for people such as elderly people and others with health conditions. And will we be able to get it out to people who need it . It is a twoshock vaccine. That is 25 Million People for the entire world. So there are struggles ahead. Emily the longterm consequences, we will not know those anytime soon. Does that mean that those 25 Million People can get that vaccine in the next six months and be confident that it is safe . Michelle there is evidence that those 25 Million People could get it and unlikely to have an immediate effect. It will be not unusual to see a small number of people who have a Health Complication perhaps related to the vaccine. It presents so much death and damage. It is the longterm risk, whether something happens months or years down the road. We will not have great insight on that once the vaccine becomes available. We will not know that for months and years. The people who get it first will have to be taking a little bit of a risk. Every day, we take risks going out there, potentially being exposed to coronavirus. Its that riskbenefit ration everyone will have to do. Emily absolutely fascinating, and you wonder if this is the beginning of the end of the pandemic, or no . Michelle cortez, thank you for joining us. Coming up, we will head to the city of seattle where mayor jenny durkin will share her view on the city which amazon calls home. This is bloomberg. Emily president elect joe biden laid out his plan to fight the pandemic in remarks on monday as President Trump refuses to concede. There are now, on average, more than 110,000 new cases per day in the United States and hospitalizations are surging. The city of seattle has grappled with the pandemic since also day one. Promising news on the vaccine front is a welcome sign of hope. Joining us for more on that and what a biden presidency will mean Going Forward, seattle mayor jenny durkan joins us now. Obviously, history has been made over the last couple of days. I would love to hear your Immediate Reaction to president elect biden, Vice President elect Kamala Harris winning the white house. Mayor durkan i am ecstatic that we will have President Biden and Vice President harris. He will make immediate changes for every city in america and i have been waiting my whole life to see a woman elected to the one of the highest offices in america. That was a huge historic win for women across america. I am looking forward to it as a mayor and as a woman in america. Emily i know you have broken many glass ceilings. What is the significance of Kamala Harris being the first woman in the white house . Mayor durkan if you think about america and the population, over half of americans are women. Here we are, this many hundreds of years into our country and no woman has served as president or Vice President. We are in the midst of a racial reckoning in america to make sure that it can be a promise for all americans, to have a woman of color break that. Break that barrier is even more important. Emily our country, as you mentioned, has been facing social crisis, obviously an economic crisis, and an Ongoing Health crisis. What is your take on this vaccine news and what is seattles plan to inoculate citizens if this vaccine is the one . Mayor durkan i am optimistic about this vaccine. Today, the Vice President and president elect joe bidens announcement on covid19 shows the difference a president can make. If we had this approach at the beginning of the year, we would be in a different place as a country. I can tell you that as the mayor in a city in the region where this virus first came. We as a city had to go try to buy ppe for health care providers. We did not have enough testing capability so we got testing kits from korea because we could not get them nationally. They will work very hard to get this virus under control, and make sure that when a vaccination comes, we can distribute it to all americans. Emily meantime, there are a lot of questions about what the next 70 days look like until Inauguration Day given that President Trump is still refusing to concede. That makes it tough on Small Businesses that are continuing to suffer. We just heard from Mitch Mcconnell that any stimulus package that is passed might be smaller than expected. Amazon offices are closed in downtown seattle. I know that small and Medium Business owners are hurting there. What do you plan to do . Mayor durkan just today, we put out a new economic support package for our Small Businesses. Again, it shows the importance of federal leadership. Microsoft, amazon, starbucks of expedia. You name those businesses that are headquartered here. It made a big difference in fighting the virus. We saw immediately that there was an impact on Small Businesses and workers. We need washington, d. C. To act quickly to support Small Businesses. If we can do the two things together to get the virus under control and have the Small Business supports that we need, we can do this as a country and come back stronger than ever. There is only so much cities can do by themselves. Emily how concerned are you about the next 70 days in particular . Of power is whencult alone, let alone the Person Holding that power refuses to give it up. Does that uncertainty concerning u. S. The leader of a major city in this country . Mayor durkan i think the uncertainty is bad for all of america. It concerns me because the president does wield a lot of power and that transition of government is who america is, having a peaceful transition after having a vote. At the same time, i have a lot of confidence in the resilience of american democracy. President elect biden is going to continue moving forward and putting together a transition team, a plan for america, a new cabinet. I have confidence that in january we will have a new president. But it is time for leaders to work for the best of america and all of america, and that is for President Trump to graciously admit that he lost the office and do all that he can to make it easier for the president to come in and keep moving forward for all of america. Emily mayor of seattle jenny durkan, really interesting to have your perspective. Think you for taking the time on a very busy day. Coming up, president elect biden has his sights set on ambitious climate policy, hoping to accelerate the nations shift to clean energy from power plants to electric cars. I will speak with the founder and chair of the electric car startup. This is bloomberg. Emily president elect joe biden is pushing for the most progressive climate policy, vowing to immediately rejoin the Paris Agreement and set a 2050 target. A biden win is considered a key catalyst for the energy sector. Joining to discuss, henrik fisker, founder and chair of the electric car startup fisker. I wonder how a joe biden presidency could catalyze the industry Going Forward . Henrik it is great to be on the show. Although the connection is a little bad, i can barely hear. We are very excited to ring the bell today on the new york stock exchange. A billion dollars, really helps us achieve our goal of bringing out the fisker all electric vehicle in the end of 2022. It is good to see that there will be a Clear StrategyGoing Forward in the u. S. In terms of getting more electric vehicles to market, more green energy. I think it will be better for the world. We are here to try and create the worlds most sustainable vehicles and technology here in the u. S. We have been underway now a while. We are very excited about everything going on. Emily fisker got its first rating from wall street today. Cowan rating it a buy and expecting shares to double. How do you expect to deliver on that when obviously there are already established carmakers out there and you need customers on board . Henrik we have a very disruptive Business Plan. We have partnered up with the thirdlargest automotive supplier. Our Business Model is more like applefoxconn. Number two, we are also doing platform sharing. Sharing the platform with driving down costs. We are planning to hit our milestones and bring out the vehicle as planned in 2022. Emily you are putting a lot of emphasis on that lower price point, 37,000. There are a lot of people out there excited to be able to get an all electric suv at that price. But your model is not coming out until 2023 or later. Are you concerned that tesla and even chinese Car Manufacturers will have beaten you to the punch by then . Henrik i remember when tesla came out, he a lot of people said next year they will die out because the big Car Companies are coming out. I think what has been clear is that the electric vehicle is changing. Some will make great electric vehicles and some will not. They have had years to do it and there are still not a lot of electric vehicles from traditional oems out there. Only 2 million vehicles sold globally each year are electric. The Market Opportunity is huge. Our Business Plan is so different. I do not see a lot of competition from suvs that are pure electric, that will start at 37,500. I am not worried. Over 9000 paid reservations, despite being two years away. I think we already have a big following and a lot of customers are looking forward to our vehicle. Emily all right. Fisker chair and ceo henrik fisker, thank you for stopping by. Coming up, tech ceos are reacting to bidens president ial victory. We will look at who is saying what and how big tech will look Going Forward and how biden will look on it. This is bloomberg. Emily this is bloomberg technology. Im emily chang. Tech leaders across the country are reacting to joe bidens president ial victory. Bill gates tweeting i look forward to working with the new administration and leaders on both sides in congress on getting the pandemic under control. Engaging partners around the world on poverty, Climate Change and issues of inequality, and opportunity at home. Sheryl sandberg posting the votes are in. After a few long days, we now know joe biden will be our next president. For the first time in 231 years, our next Vice President will be a black and south asianamerican woman who is the daughter of immigrants. Amazon Ceo Jeff Bezos saying unity, empathy and decency are not characteristics of a bygone era. Congratulations, Vice President elect Kamala Harris and president elect joe biden. By voting in Record Numbers, the American People proved again that our democracy is strong. Additionally, the ceo of ibm sent a letter to president elect joe biden, stating you have spoken of the need to ensure that technology plays a responsible role in our society. We agree. Ibm believes a precisioned regulation approach by government can help create ethical guardrails for the use of new Technology Without hindering the pace of technological innovation. With us for more on the technology, ahead of the Biden Administration, dario gil. Thank you for joining us. Arven points out that ibm has supported many president s in times of crisis and profound change. Were facing both right now. What do you think should be on the top of joe bidens list of priorities . Dario first of all, thank you, emily, for having me on the show. Indeed, throughout our history, over a century, in times of great change and crisis, ibm has always been involved. On the creation of the Social Security administration and apollo programs. Now we confront the problem of Public Health and the pandemic, but also the challenge of Climate Change and other existential challenges. The unique opportunity we have is to come together as a nation and use science as a mechanism to address these present problems. The good news is because we are witnessing a revolution in the world of computing, we will be able to supercharge the scientific discovery process and tackle the challenges. Emily now when arvan calls for precision regulation, what does that mean . We know there are a lot of scrutiny, big scrutiny facing Tech Companies. What is ibms position on that . Dario what he means is commensurate with the power of the science and Technology Advances, a. I. Is a good example, we could name other areas like quantum computing and beyond. There will be a responsibility that we coshare and creators of the technology, congress and the administration will have, in being able to provide a proper government around it. To give an example, facial recognition. The discussion and debate we have engaged as a society on that topic. We saw the decision we made as a company to not sell commercially facial Recognition Technology at this point. A good example of governance, we all have to be part of this managing process of the power of technology. Emily you called on the administration to establish a scientific readiness reserve, which would include scientists in various resources that could be deployed from the private sector to deal with crises. Not just a pandemic, but crises like a drought, an asteroid over a city, a super deadly volcano eruption, a tsunami, Nuclear Power plants exploding. Walk us through some of the scenarios and how Something Like this would help. Dario first, let me share the inspiration for this. In times of great crisis, we have also seen Institutional Innovation and creativity. Heres a basic fact. The talent of the nation is distributed. In the United States, we spent 600 billion on r d. 70 is in the private sector. When we are dealing with a grand challenge like a pandemic or an earthquake, you could imagine tapping into the expertise and the resources that are distributed across institutions. How do you do that . That is the inspiration and the military. There is a notion of a reserve. People can be dated today in their civilian environment. At a time of crisis, you can call upon a reserve who has received training and a mechanism to work together. Can you imagine the same for science and technology of the nation . Where when it is needed, we could come together and there is a coordination mechanism that is in place for all of us to work together. We have learned that lesson these last number of months in the creation of the covid19 computing consortia, where public and private sector came together and we aggregated the biggest consortia of Publicprivate Partnership for supercomputing. Capabilities to address crisis when Society Needs them. Emily you run all of ibms global labs that house your quantum computing systems and there has been a view from Silicon Valley that sometimes the people at the top of our government dont understand how powerful technology is, could be, and the potential dangers of it. What does the new or next administration need to understand about that power, how it could be used for good and potentially bad . Dario i think we need to elevate science thinking at all levels of decisionmaking. We note scientific and technological advances will be at the core of our competitive advantage, the core of our wellbeing. And some of the challenges we have to solve. So what i would ask is this is a moment for all of us to come together and rekindle and redouble our commitment to research and development and science and technology. And that we put it to use at the highest priorities of our society. Not just digital for digital. With the use of these advances can improve our manufacturing, accelerate the rate of discovery. To provide all opportunity and not to be concentrated on the coasts and invest in education at all levels. Im a passionate believer that science and Technology Advances with the proper governance and proper commitment to meet societal goals really can deliver on the promise of what Society Needs in the next decade. Emily all right, we will be watching to see how president elect biden makes decisions on tech and big tech. Dario gil, thank you for joining us today. Now to some other techrelated stories on our radar. Adobe says it will acquire workfront for 1. 5 billion. The utahbased workfront makes software that lets workers collaborate and manage projects. It already has an existing project with adobe. Workfront would be adobes fifth acquisition. The company is focused on expanding its user base beyond computer desktops. Softbank reported a record 7. 6 billion profit in the vision fund business. Its a sign the funds investments in startups are paying off amid a broad rally in tech stocks. Softbank turned around after record losses last fiscal year, helmed by masayoshi son, which now includes investments in Public Companies and private startups. Its also seen a number of highprofile csuite departures in recent months. Coming up, we will continue the conversation on tech with joe biden in office. Will there be a more relaxed environment, ripe for innovation . Not necessarily. We will explain next. This is bloomberg. Pres. Elect biden i will spare no effort to turn this pandemic around once we are sworn in on january 20. Get our kids back to school safely, our business is growing and our economy running at full speed again. Emily president elect joe biden speaking from delaware earlier. He went on to say the u. S. Is facing a dark winter as the coronavirus continues to spread. Tom keene and Francine Lacqua spoke to Joshua Sharfstein of the Johns HopkinsBloomberg School of Public Health about bidens strategy to deal with the surge. Joshua i think today, hes going to announce a great group of advisers. I think he sending a signal that their response will be guided by science informed by the public. I think thats a big relief after a response that really had completely fallen off the tracks. Francine how does he because it is state by state a lot of these decisions are taking place, what is the true power of a president . Joshua a very Important Role of the federal government. That has not been appreciated because the federal government has not really undertaken those roles. One of those is to have a testing strategy. Another to make sure the supply chain is strong for protective equipment that so many people need in different kinds of jobs, including health care. There are really Important Roles like giving clear guidance to states and localities. Right now, it is just a cacophony of different approaches. And some of them really make no sense. I think that bringing a little bit of order to the chaos is going to be really important. Then, setting a tone for states and localities. Theres a very Important Role for local government but it needs the support of a federal government and i think that will be a major role. Tom perhaps this is an unfair question but i will try it anyway, you have been so good to be with us. Another expert said you could extrapolate out Something Like 80,000, 90,000, 100,000 deaths before the inauguration. Do you believe that the case to death ratio right now is that grim . Joshua it could be that grim, i do. It could be possible. For everything the president elect needs to do, theres a lot to be done before the inauguration. Hopefully, the Old Administration can do a little better, roll up its sleeves and work with the new administration to put these things in place early. Every day that it moves early, more lives will be saved. Tom what is the first order condition for dr. Fauci and dr. Birx now . What is the changed behavior youd like to see . Joshua probably clear messages on masks. Very mixed messages on masks. You still have the advisor scott atlas in the white house tweeting things about masks that dont make any sense. I think that really undermines peoples understanding of what they can do themselves to protect themselves. Francine can you give us an update on how the main hospitals in the states we have seen an incredible number of infected people with covid19, how are they coping . Joshua some of them are getting overwhelmed. We have seen field hospitals being set up in different places. Patients airlifted to other places. It is a very serious situation. This virus has been waiting for the winter to hit when everyone goes inside and it is having a field day. Unless we are able to come together and push back and get the support of the federal government, it is going to be a very difficult situation. Im worried about these places. I hope it does not keep spreading to other places. Francine how different is this wave compared to what we saw in march and april . Is it the same, less deadly . Have we gotten better at dealing with it . Or will it be just as devastating . Joshua in terms of the total number of deaths, it could be as devastating or worse depending on how bad it gets. I think we have gotten better at taking care of patients and their treatment and other things that are now able to save lives, but that does not mean there will be fewer deaths because there are so many more people infected. We have a Record Number of total infections. Even if there are fewer people, per 100 people who are sick and dying, in the end, because there are so many more people infected, you could wind up with more deaths. That is a really unfortunate, tragic situation we should be fighting to avoid. Emily a grim view from Joshua Sharfstein of Johns HopkinsBloomberg School of Public Health. The Johns HopkinsBloomberg School of Public Health is supported by michael bloomberg, the founder of bloomberg lp and bloomberg philanthropy. The Trump Administration kicked off its relationship with Silicon Valley with an awkward photoop at the white house, including the president and the most prominent tech leaders. A true bridge between tech and washington was never quite built. A Biden Administration does not necessarily mean less scrutiny over big tech. Joining us to discuss, rebecca kern, who covers the intersection of policy and technology. You have a great piece talking about what a Biden Administration would mean for big tech. Under trump, they faced antitrust scrutiny, a lot of angry tweets. But under joe biden, it will not necessarily be smooth sailing, is it . Rebecca no, not necessarily. We saw a big report out from representative david cicilline, a 450page antitrust report going after Big Tech Companies apple, google, facebook. They are recommending some legislative reforms, likely to come out later this year and then early next year. Cicilline has been quoted, saying he thinks biden will be receptive to these reforms. Potentially breaking up some of these massive Tech Companies. That is something that came under trumps doj and may likely continue under a Biden Administration. Emily lets talk a little bit about section 230, because obviously, we know that President Trump has a talk the law but biden has as well. Where does biden stand on the power of Companies Like facebook and twitter to moderate their platform . Rebecca yeah, biden and trump have both called for repealing section 230 of the decency act which provides a broad liability shield for these Big Tech Companies, wherein any thirdparty content on their platform, they are not liable for it. Biden has gone after it because of growing number of hate speech and extremist content, terrorist content that is appearing on platforms, that the platforms are having a tough time keeping up with and removing. They do have that authority to remove it, but biden wants to take a stronger stance against it. He has called for a repeal, although i dont think that will be receptive under congress. They are not calling for a fullout repeal, but they want to reform the law. There have been a few proposals by democrats and republicans in congress, and we will likely see those move next congress and likely see biden support for changing section 230. Emily now, you point out that the Obama Administration had a pretty cozy relationship with Big Tech Companies, especially google. A lot of former Obama Administration officials now work at Tech Companies in Silicon Valley. Do you think biden will carry any of that over or is it a completely new era . Rebecca i think we will see i think we might see some of the same receptiveness to some of these companies and having some of them work in the administration or with the administration, but it may not be quite as cozy given his receptiveness to some antitrust reforms and his receptiveness to changing section 230. Two big areas that we have not seen google necessarily supportive of changing. And then, like we were saying, doj has gone after google with a lawsuit, a major antitrust lawsuit and that could likely continue. We will see several state attorneys general likely to file suit against google. I dont think it will be quite as cozy in the Biden Administration, per se. Emily all right, a lot to watch and something we will surely be talking about over the next 70plus days. Rebecca kern, thank you so much for joining us. Coming up, biden pressing ahead towards the presidency. We will talk about what we can expect from an Incoming Administration and also get the latest on the supposedly outgoing administration, next. A report from the white house coming up. This is bloomberg. Emily defense secretary mark esper was fired by the president today, made public via tweet. This coming as trump and espers relationship soured after the pentagon chief resisted the president s request to use active duty forces against protesters in cities earlier this year. President trump appointing Christopher Miller as acting pentagon chief. Espers departure could foreshadow a broader postelection purge. Bringing in jordan fabian now who covers the white house for us. So, it is anyones guess what the next 70 days look like and what other actions the president is going to take. What are you following Going Forward . Jordan firing mark esper could be a feature, not a bug of this transition period with the president wanting to have retribution against officials as that he views as insufficiently loyal. Other people rumored to be within his crosshairs include cia director gina haskell and fbi director christopher wray. We dont know if the president is going to make moves against one or either of them, but those are people in washington who other people are looking at as possible targets of trump in the final stretch of his administration. Emily meantime, more people in the administration testing positive for covid19. David bossi, the outside advisor of the president , who is leaving this postelection fight, along with hud secretary ben carson and mark meadows. Has any hard evidence been found to support the president s claims of voter fraud . Jordan so far, they have not presented hard evidence that there is widespread voter fraud in this election. In fact, the rnc chair Ronna Mcdaniel and White House Press secretary Kayleigh Mcenany just had a press conference where they announced a new lawsuit trying to challenge votes in pennsylvania where joe biden is ahead by roughly 45,000 votes. And the lawsuit does not include any allegations of voter fraud. They are just alleging the process, they believe, was unfair. Another lawyer who appeared at the press conference essentially said this is just to buy time so they can find voter fraud. The problem is you have the Electoral College set to meet in about a month. It just seems like the Trump Lawyers and their teams are trying to drag this out at this point. They have not found any hard evidence that widespread voter fraud exists. Emily its anyones guess also who the president might pardon over the next couple of months. Is there any historic precedent for a transition this messy . Jordan well, on the pardon front, past president s have made some controversial pardons while heading out of the white house. Bill clinton pardoning marc rich in 2000. That certainly caused a stir. No president has done more with more frequency and targeted more towards political allies than President Trump. I think you could be looking for possible pardons or commutations of people like Michael Flynn and Paul Manafort who were targeted by the Mueller Investigation in the final weeks of the administration. Emily we are continuing to watch the tweets and the posts on facebook, many of them being flagged by twitter and facebook, as i know you are as well, jordan fabian. Thank you so much for that update. That does it for this edition of bloomberg technology. Bloomberg daybreak asia is coming up next. Im emily chang in san francisco. This is bloomberg. When you switch to xfinity mobile, youre choosing to get connected to the most Reliable Network nationwide, now with 5g included. Discover how to save up to 400 a year with shared data starting at 15 a month, or get the lowest price for one line of unlimited. Come into your local xfinity store to make the most of your mobile experience. You can shop the latest phones, bring your own device, or trade in for extra savings. Thats simple, easy, awesome. Visit your local xfinity store today to ask, shop, discover the latest on xfinity mobile. Manus this is bloomberg daybreak middle east. Extend thean markets global rally after a new study delivers the most promising vaccine results yet. Manus joe biden warning of a dark winter ahead. The Federal Reserve is also worried about the potential impact on markets if the pandemic worsens. Yousef chinas consumer inflation rose to its