President elect joe bidens transition will start with a plan to curb coronavirus as u. S. Cases top 100,000 again. President trump with legal challenges. Riskon kicks up again. Global equities head for records on optimism which abound on the Biden Administration. The dollar is weaker. Itsman sachs slashes target. Global response. She looks forward to remove partnership. Angela merkel says the transatlantic friendship is indispensable. Good morning from dubai. Great to be back together with you. I was watching you this friday from the gym as usual. This market has not got a concession speech. This market is euphoric. This market could be seriously misguided. They take us to a moment that the reflation trade, you might have to wait until the end of the Second Quarter so if you look at bernstein, goldmans, they are all saying the same thing. The reflation trade might be stymied on a gridlocked senate. Good morning. Annmarie certainly. Its clear the democrats are going to take the white house but this was not the blue sweep everyone was expecting. We dont know which way the senate is going to lean. The market seems to be pricing in gridlock. Lets take a look at where we are monday morning. Exuberance in the markets, celebrating its victory, putting uncertainty behind them. Also including the potential of a republican senate. S p 500 futures blowing out to the upside at 1. 5 . Dollar weakness across the board is the name of the game. Part of this is the fact that we dont want to hold the u. S. Dollar because investors think it could be thrown out the window with that uncertainty. Eurodollar trending towards 119 and then we trade this morning at 81 basis points. Slashing the forecast on the 10 year yield on a divided congress to 75 basis points. Joe biden is preparing as he takes office as the 46th president of the United States by readying a plan to tackle the coronavirus. Get to derek wallbank, our senior editor. What can we expect in terms of movement on the tackling of the virus besides the fact that he is setting up his task force today . Derek joe biden is proceeding as if he is the president elect and not as if President Donald Trump is still launching legal challenges. He mentioned he is going to plan toa coronavirus schedule his office. He will meet with his task force. He is getting to going. We should be expecting some announcements from the Biden Campaign that it is now a transition of their senior staffing potentially this week. We should expect that they are going full steam ahead even though, you know, President Donald Trump has not conceded and counting is going on. It seems academic to all except for the president and his most loyal supporters. Manus great to have you with us this morning. What more have we heard from President Trump . We are watching some people really saying the Republican Party are trying to get their heads around how do they accommodate this situation . Are we in a vacuum . Derek you are dealing with a particularly difficult thing because, you know, you have some pressures from some within the Republican Party to start moving on towards transition but i should note a couple of things. The inbox of a lot of republicans orders is bombarded by fundraising appeals. The president has been very sharp about wanting to have a Legal Defense firm fund that is robust so theres lots of select tissue students solicitations. If you look at a lot of the senior needles leaders in congress, in the president s own party, you are not seeing calls to pack it up. A lot of those calls are coming from people who are outside, so within the core of the Republican Party, hes not really getting the push. The other thing i want to note is World Leaders are moving on. You are seeing comments even from some of the president s biggest allies abroad like Benjamin Netanyahu in israel, congratulating joe biden, saying they are looking forward to working with democrats. Go,ar as World Governments everyone seems to be preparing for life with biden. We have yet to see that concession speech. Derek wallbank, our editor in charge, tracking the latest on the election. Moveve been tracking every from societe generale. Annmarie leaned into the dollar. Great to have you with us. Down for the fifth day in a row. The dollar is behaving as if we have cleared all political uncertainty. But perhaps gridlock, which gives us lower for longer with the fed. Is that a jumping off point, a fair jumping off point for the dollar this morning . We seem to have a small problem with his sound. Try just going to annmarie hows just going to say. Last week, he is the one that said it does not matter who is in the white house. What matters is who is running the fed and it is the fed that matters in terms of the u. S. Dollar. Manus absolutely. Has technology caught up with us . Lets get to laura for the first word news. We will get back to him in just a moment. Technology is a terrible thing. Laura wright at london hq. Laura Vice President elect Kamala Harris is giving america a lot of firsts. She is the first woman, the first black person, and the first indianamerican in the role. Her husband will be the first man in the first jewish person to be spouse to a president or Vice President. While i may the first woman in this office, i will not be the last. Because every little girl watching tonight sees that this is a country of possibilities. And to the children of our country, regardless of your youer, our country has sent a clear message. A chaotic weekend in turkey. President erdogans soninlaw unexpectedly resigned one day after the Central Bank Governor was fired. He cited unspecified Health Reasons for stepping aside. As beingdely seen groomed has a potential successor. It could signal a dramatic shift in economic policy. In thailand, right police fired Water Cannons to Disperse Protesters trying to approach the royal palace in bangkok. Demonstrators wanted to call on the keen to accept changes to the monarchys power. Medical services say to people and one officer were injured. Protesters abandoned the march after the police action. 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. This is bloomberg. Manus. Incomesoftbank net numbers coming at ¥627. 5 billion. That is quadruple the estimate. They had a profit of ¥784 billion and they bought a total of ¥2. 7 trillion of highly liquid assets but they be paid 9. 44 billion barring on alibaba shares back in july. We will talk more softbank in just a moment. Coming up on the show, it is day five of the declines. The dollar slides on the biden win. What could that mean for the rest of the fx complex . This is bloomberg. The president sitting in the white house, not acknowledging it, i think theres lots of republicans who are trying to feel their way around that. Me, i think it was so important early on to say for the president , if your basis for not conceding is there was voter fraud, then show us. One has to be careful in the choice of words. When you say the election was corrupt or stolen, that is unfortunately rhetoric that gets picked up by authoritarians around the world and it also discourages confidence that our democratic process in our democratic process here at home. Annmarie mitt romney and chris christie, both republicans, addressing claims from donald trump of widespread voter fraud. I believe your sound is working now. Think you so much for hanging with us ring technical difficulties. Last week, you said it did not matter who was in the white house. Now, we have a president elect. The market is taking that on board. Is that set to continue . Fair, it has gone faster and further than most people would have guessed. Euphoriaa sense of that will be punctured by reality. On the economic weakness in europe thats coming from the second wave of the pandemic and that will feed threw two it. I think the most important thing about the next few years is that the jay powell said has promised to keep Monetary Policy accommodative for a long time, a really long time, and that is why a rally in the dollar that started in 2011 should have come to an end and will continue to weekend. Fall isd of the initial pretty extreme to what i thought was going to happen but i would not change of view that said over the next year or two, the dollar is going to steadily weaken. Manus good to have you with us. Lets talk about what could interrupt the downward trajectory. Faster vaccine, two could be perhaps a more valiant u. S. Economy, and that could cause the short end of the curve to reprice. The most shortow since january. Economyo vs, a valiant and a vaccine, could they reprice the dollar . Kit his vaccine would change the nature of the weak dollar because it would broaden it out. If you get a Global Economic recovery, you will be in a situation that will remind you a andle bit of 2004 to 2006 money will look for opportunity elsewhere so if i was an emerging market specialist, i would be really excited about a vaccine coming online right now because the big Investment Opportunities with returns anchored he major developed economies is elsewhere so good news on that front. Less dramatic. Is goingr u. S. Economy to be dollar positive at this point in time when it is a stronger u. S. Economy that is not dragging the rest of the world with it in a really big way. Enoughgot to be strong that we, the market, question the feds commitment to allowing inflation overshoot and so on and so forth, but you know, the contrast if you get a more resilient u. S. Economy and weakness in europe, for example, that changes. Annmarie before we get to the inauguration, we have two months left on the trump presidency. The market seems to be shrugging off these legal fights. Any has not seen substantiated claim that there was widespread substantial fraud. He still has two months left in office and it has been an untraditional presidency. Are there any risks to the market that you would be watching in the next two months . Kit is that all the sons into something really ugly, if it spreads out, then that would be something that could affect u. S. Asset prices. We will probably take our cue and the Foreign Exchange market. If u. S. Equity market holds its nerve, and people think, ok, this is a period of uncertainty, we think you know where the destination is and we think the destination is positive for u. S. Equities, then i think the dollar remains under some pressure, but if you have got a really significant loss of confidence, particularly in the equity market, perhaps to manuss point, maybe with a significant opening in the yield curve as the long and lost its nerve, that could be more tricky and you may see some pavement] the dollar, but the Foreign Exchange market is not instinctively going to say that there is a difficult situation with the legal challenge. Lets by the dollar. Might buy the yen but not the dollar. Manus lets have a look at the binomial distribution. Theres a lot of unknown black swans out there in a potentially scorched scenario. One victorious currency is the yuan. They ate of the rally. You are looking at a wall of money carrying on from your thought process about em. With the yield differential, does money flow to the one on economics, yield, and perhaps a reparation of chinau. S. Relations at some level . Kit i think theres absolutely no doubt that money is flowing there. At the moment, china is getting the bulk of capital flows. Clearly, the bond market is a big drop. Capital outflows have slowed to some degree. You dont read lots of stories about Chinese People buying property up and down the west coast because theres not nearly as many tourism outflows. Persuasively for a stronger yuan. That would trump any other concern you might have were not for the fact that there is no doubt the yuan is a controlled currency so its only allowed to go as far as the policymakers in beijing decide to let it go and we permanently remain nervous that they dont want their currency to get too strong because why would they . That is the battle. The world is set up for money to flow into the yuan. The question is what happens on the other site to recycle it for policymakers . Manus we have seen the strength annmarie that makes sense. We have seen the strength in the yuan. Have the weakness in the dollar which means many currencies will benefit, but really, what currencies could and if it Biden Administration could benefit under a Biden Administration . Kit you could get a broadly weaker dollar because of the nature of the policies he wants to put in place. If we do get a more peaceful environment for global trade and we start healing love Global Economy in that sense, i think some of the ones that have in trade sensitive economies perhaps start to do well as well. The Australian Dollar is when i look at that looks to me as if at these levels, its very competitively priced in a better outlook and that could make a difference. Some of the peripheral european ones i think get a big lift from this potentially as well and obviously, latin america looks fondly at the sort of biden presidency. But again, all of that i think those come back and depend on getting past the economic hit from the pandemic, tackling a third wave of the virus in the past thise and moving next threemonth period with all of that. There is a danger. The biggest danger in the near term is we are terribly optimistic about what this means in the long run. Both now, the u. S. Has some uncertainty on the challenge and considerable entertain uncertainty in terms of the third wave of the virus. Manus absolutely. 78 days of potential volatility. Thank you so much. Strategist chief fx at societe generale. Chinas top officials have yet to congratulate joe biden on his president ial win. The currency is on a tear. We take a closer look at the deeper dive into the yuan. This is bloomberg. There is a huge sigh of relief i think i the nation that, you know, we have come through a difficult period, but most importantly, that the American People have spoken, and that is what our democracy is all about. The president has every right to challenge and every right to ensure the votes were counted correctly. Once that decision has been made and once there are too many votes that have been cast and counted for him to catch up, then it becomes the responsibility to accept the result and move on. Then the very first thing president does is to wrap his arms around this pandemic. This pandemic has exposed a lot of the faultlines in our system. Its not just the virus. Its what this virus impact has been. The first order of business for 2021 should be an investment in infrastructure, not just roads and bridges and transit but also broadband. We have learned how important it is for businesses and families to be connected. The president elect will come in facing a horrible covid gelation and an economy that is slowing down. He will have a divided government if not he divided country and most likely, and i hope that does not happen, he will have a complicated transfer of power. That was some of our lead guests speaking to bloomberg tv about joe biden. Being declared declared president elect of the United States the weekend. We touched on the yuan. Lets continue the conversation. The greenback continues to weaken on joe bidens declared position as the winner in the president ial race. Juliette saly has been tracking that. Kit seems to think that this will get off the leash for as long as the pboc allows. Good morning. Market isa lot of the thinking that. Certainly, this strength you are seeing in the offshore yuan continuing. It had its best week since january 2017. A for an eighth session in a row today, the long swimming streak since march. We had a strongerthanexpected fix from the pboc for the First Time Since october 23. The strength in the currency being seen as continuing chinas economic rebound and thanks to attractive bond yields in china drying overseas funds and investors, but as you say, it remains to be seen how long the pboc wants this to continue. When it comes to the overall equity rally, that is flowing through into heirs. We are looking at global stocks nearing alltime highs but mark this biden whilst bomb could be good for Global Equities, he does not yet as positive for the American Market due to the fact that he says these expected tax increases under a biden presidency are going to hit the very people that are likely to invest the most in wall street. The people who earn more than 200,000 a year. He says that wealth effect will come into play and if the people who invest in the stock market expect it will be hit with higher taxes and they will restrain from investing. His use, in contrast to some global investors, says biden will not be able to raise taxes easily with a potentially split congress that is underpinning the rally. John authers saying the biden rally has the look of fools gold. Annmarie Juliette Saly in singapore. We will have to see what mark mobius thinks. We wont find out that out until january. Biden launching his transition efforts today. This is all about the coronavirus. That is next. This is bloomberg. Annmarie good morning. From bloombergs European Headquarters in the city of london, im henry with manus cranny i am Annmarie Hordern with manus cranny. Pres. Elect biden i plan to be a president who seeks not to divide but unify. Who does not see red states or blue states, only sees the United States. Wasting no time, president elect joe biden transition will start with a pla