Participating in the trial. We want to break it down more. What do we know . What are the questions . Reporter pfizer is telling us they have a vaccine that appears to be more than 90 effective. They studied this immunization in 43,000 people, and within about a week after the second dose, they found that more than 90 of people who got the vaccine were protected against the actual coronavirus. Know that it didnt take very long. We dont know the actual numbers of how we people were infected, but if we are looking at more than a 90 effectiveness rate, which was much higher than anyone expected, we are getting suggestions that this vaccine is quickly protective for many people. We still dont have news on how long it is going to last. We dont know whether or not there will be any safety signals. After that, they might be filing for emergency use authorization. Jonathan what kind of vaccine is this alix what kind of vaccine is this . Vaccine. It is an mrna theres nothing like this that exists in the world. This is some the gut pfizer went out and brought to Clinical Trials very quickly. The same approach is being used by moderna. It is actually using the genetics, getting the body to produce tiny particles of the virus that the immune system can then attack, so it is a completely novel approach. It is hopeful this can be used ,or a wide variety of pathogens even some we dont know about. , but still very early when we only talk about 94 cases were reported, most of them in the group that got placebos and did not get the vaccine. Hopefully that will hold up as we start learning more. None of the patients actually developed serious disease, so we are going to have to wait for that as well. Alix thank you very much. For more on the vaccine development, dr. William ffner joins us now. What is your take . I think it is extraordinary. None of us expected anything like that. I would have been delighted with 70 effectiveness. Here we have 90 . It is still early days. We dont exactly know how effective it is going to be in older persons. We dont know, as michelle said, with her at predict against severe disease. If it prevents infection, we expected also prevent serious disease. We have to watch it for a longer time regarding its safety. Once it starts to be used in the general population, the cdc actually has mechanisms to keep assessing its effectiveness and safety as we start to use it in the general population. That should be very reassuring to the general public and the medical professions. Thatguardedly optimistic maybe by december, we could start vaccinating the first people who are in the priority group, and they will be health care workers. Alix obviously that would be huge, and very welcome. Ablee companies would be to produce enough vaccines to vaccinate 10 of the world population, that is by the end of 2021. Dr. Schaffner certainly no one company can do it all immediately. That is why we hope there are going to be a number of different vaccines not only for our own population, but for the world population. Another little caution, this vaccine requires two doses, and vaccine. Is an ouch it hurts going in, and the second hurts more than the forced more than the first by and large. And you can feel kind of crummy for a day or so. So we will really have to let everybody know what to expect and persuade people to come in for that second dose. Alix that is interesting. Do you really feel like that is going to be an issue getting people to come in . Dr. Schaffner oh yes, because at the moment, the surveys would indicate about half of the population is going to stand back and watch the first group get vaccinated to be sure that everything is going alright. We are going to have to really provide a lot of reassurance and information to get people to, when it is appropriate for them, get in line and roll up their sleeves. Was a demand, if all of that was there, what are some logistical issues that Companies Like pfizer need to be addressing right now . Dr. Schaffner pfizer is in large control of its only just ask. They are doing it independently, and they have special issues in shipping and handling because this vaccine is fragile. It has to be kept very cold, and people have to be trained in how to give it so we dont waste vaccines because you go into a vial, you have to use those doses quickly. Otherwise the vaccine degrades. So we will have to organize how to give this vaccine. State Health Departments have been working on all of those plans for months. They are largely in place. Education is ongoing where this vaccine will be given. Remember, the first group are healthcare workers, so it will be given in the context of medical institutions who know how to handle these kind of fragile products. Alix before we go, this is obviously developed by pfizer, but there are other ones as well. Looking at regulators today. Where are the others . How are they stacking up . Dr. Schaffner they are all in line, one after the other, so we can anticipate over the next six months or so one vaccine after , ander coming to the fore this one gives us real optimism that the others likely will work also. We will see. Perhaps one vaccine works better in a subpopulation that another vaccine. We will have to see all of that down the road. Alix really appreciate that. Thank you very much. Lets get back to the market action. Having a definite effect in the markets is your stayathome trade. Tech is underperforming. You have the recovery trade like airlines, hotels, etc. All doing really well. Record highs for the s p. That is filtering through the market. , firstpher wolff republic private Wealth Management, joins us now. Are you buying this trade today . Hristopher this is good this bendsgerterm, the mark towards Economic Growth in this country to reopening. To a faster reopening. We originally thought the middle or end of next year, but we are going to have to move that timeline up. I think longterm investors are buying. You are allocating in this market. I think if you are already fully invested, you can rebalance and look for ways that you can participate because most folks are coming from the very concentrated buy tech and nothing of position over the last year. Alix so when you have this reflationary, optimistic driven day . Christopher it is not that we sell stocks and go to cash. It could mean maybe look outside the u. S. This is a global problem. You could get stronger improvement potentially in places that have been closed down longer. That would be mostly in europe, but also in japan. Be an markets may interesting rebalancing point. Everybody is long equity beta, the stock market, but it could be bigger than just the stock market. It could be the whole economy. For that, weve got to look at more alternatives for clients that are qualified. Alix i want to get to the s p, off the highs of the session. A huge gap up. What are you looking for to make sure that this is really a rally that has followthrough . Christopher one, for the price action, one that is more fundamental. Theres a bit of a distraction relative to the election over the weekend, but one of the things that came out over the election data was the more divided congress leaves in place a very high probability that we dont see any changes in tax rules for corporations in 2021 and beyond. That is important for the profit story going into the end of this year and next year. That is a pretty critical who opponent of why would you stay invested, why would you be reallocating here. I think number two is you want to be focused on the longerterm message particularly around where opportunities are. I think a lot of folks looking at rotation want to be just a little bit more careful before going whole hog here. On the price signal, a lot of things are still dominated by machines, so there is likely to be some momentum out of this, and we want to be careful around using that to rebalance for folios to rebalance portfolios. Alix we are seeing stocks come off the highs, but we have not seen that in yields here. We are up 98 basis points on the tenure. This is a gigantic move. What is your take . Christopher the fed has been super accommodative, but bond yields rising here i think are a sign of two things. One is an economy that might recover faster on its own with a Covid Vaccine could see more inflationary pressures. Number two, with that cause the fed to react . They have said they will take a low and slow approach come about things with vaccines might happen on a much faster timeline. We will watch the bond yields carefully. 1 is a significant technical level, but i think you really have to go past nominal real yields. You have to get positive real yields, meaning yields after inflation. That is where the key is really going to be. One is more of a technical level. Fe a christopher j wol wolf public vijay Christopher J Wolfe of First Republic, thank you. You will be sticking with me. Coming up, Valdis Dombrovskis. This is bloomberg. Alix live from new york, im alix steel, with guy johnson in london. He should be here momentarily. This is bloomberg markets. European trade commissioner Valdis Dombrovskis is given the goahead for tariffs on american to issuesetaliation over boeing. He joins us now, along with maria tadeo in brussels. Thank you for joining us. I appreciate it. Due to the president elections in the u. S. , was there any conversation about delaying these tariffs . Valdis good afternoon. First of all, the decision isated to the boeing case not linked with the u. S. Elections. It is linked with the fact that given us the 4 billion linked with our aocedures that concluded in Foreign AffairsCouncil Ministerial meeting. The point is that the u. S. Is already imposing tariffs on the eu concerning the airbus case. There has been some delay in the in the debbie tio case in the wto case that came one year later. Our preference will be negotiated settlement, so we are ready to drop our tariffs the moment the u. S. Is ready to drop future, and to discuss discipline schemes. That ahe theory is President Biden is going to be much more multilateral and take a much more work with your approach. Some potential issei even a softer stance in some areas. So why not just wait . . It seems like germany and some officials there were of the mindset to kind of wait and see what it was going to be like once he took Office Rather than act now. ,aldis it must be emphasized and it has been emphasized also by the german presidency, that actually there is broad support of the eu Member States in moving ahead with tariffs. In any case, it will take several months, into early next year, when the Biden Administration will come into office. As i said, we are open to negotiating a solution and to drop our tariffs as soon the cann drop theres drop theirs. Maria so this is the question, what was the last time you had any communication with the Trump Administration . Actually, we are in very intense talks with the administration. I am in contact with trade representative lighthizer, and we will continue to look at this in the coming months, and to work on other things to future discipline schemes in the areas of innovation in the area of aviation. Maria right. But just to make it very clear, you are still on the phone but the trumpet ministration with the Trump Administration . Exactly because he is still in office for several more months. Maria very quickly, trump did say he was ready to strike back harder if the tariffs went into effect. Do you fear perhaps that he is going to go out with a bang, with more tariffs on europe . Valdis first of all, from the eu side, we are by no means escalating. Doing the same what the u. S. Did already a year ago. And also, in terms of rates and composition of our tariffs, we are basically mirroring what the u. S. Is doing, so also there avoiding any escalation. Guy commissioner, did you therefore build the tariff lif t that youre going to impose quotas upon for the administration . Do you think that list would be different if there was another administration in the white house . Valdis currently, that list is agreed and approved by eu Member States, and this is a list which is going to be published later tomorrow. Into once again, i can reiterate that we are ready to drop our tariffs the moment the u. S. Is ready to theirs. Res to drop guy is aided pull up is it a political list . Elicit list designed to a political with months . Valdis it was designed to the extent possible during the stance the u. S. Has taken, most in terms of the tariff rates. So 50 tariffs for airbus, 25 tariffs for other goods, agricultural goods, processed goods, industrial goods, and the composition is mirroring the composition of u. S. Tariffs as they are imposed on us. That is the main point. In a sense, it brings us a more level Playing Field in these discussions, but we continue to be committed and willing to find a negotiating solution and actually put this behind us. Alix can you walk me through what the process is . We get new government in the United States. They come to you and say lets talk about it. Is the goal you both go back to zero right away . How do you see this happening when you are renegotiating again, potentially with a new administration . Valdis of course, that is ideal solution, that both go to zero right away. This has been a solution which we have been offering to the u. S. Side on numerous occasions. Unfortunately, u. S. Currently keep their tariffs in place. But we are not making it a negotiate in this area, and we are already things withthose the current administration, and we will have to see how much progress we will be able to make in the coming months. Alix can you get some sense as to how Different Countries responded to this . Did all of the countries agree at the same time . There were some writing over the weekend that germany and france had some differences in thought. Thiss first of all, decision has been agreed in procedure by a majority of in a qualified majority. As we guide as regards france france has, reiterated its stance also today. They confirmed germanys support to the solution currently chosen. Maria and i want to switch gears to focus on the european budget. You know the Financial Markets were salivating for this good deal to go through. We have heard that a breakthrough could come through that could unblock the recovery fund. Will that be the case today or tomorrow . Valdis in any case, we hope that this agreement will be done really soon. It is now in the hands of eu legislators, not really in the hands of the european commission. But in the commission they are calling on the eu legislators to each this agreement as soon as possible, hopefully in the coming days. Can enter intond force as soon as possible in 2021. Guy commissioner, can i switch gears again . The Financial Markets around the world, stocks in particular, are surging today on news from pfizer on its vaccine. Can i ask you whether or not you successfule do get a and highly effective vaccine sooner rather than later, that that will change the calculation that the eu had to make, both in terms of fiscal stimulus and over at the ecb when it comes to monetary stimulus . Valdis first and foremost, we are currently dealing with a Health Crisis and the pandemic, so progress is actually important to the outcome of the pandemic, and also you know the eu has been investing heavily in vaccinesly supporting and treatments, and ensuring that those are widely available at an affordable price. Course, it is positive news for the economy because as the current economy regresses, it is the restrictive measures that countries are putting in place as a response to the coronavirus , so if we have a vaccine, if we have treatments, clearly sanctions can be eased and removed, and this will facilitate best economy facilitate faster economic and determine exact a what is needed for the economy. Guy it now looks as if we are going to see a bonded administration in washington. A Biden Administration in washington. What do you think that will mean for trans atlantic relations . Do you think that will be more stable . How big of a cyan relief was there in brussels a sigh of relief was there in brussels . Valdis first of all, i would like to congratulate vice President Biden. He has set himself on many occasions that he is committed to transatlantic relations, so to strengthen euu. S. Multilateralism and rulesbased international order, so we are looking forward to cooperate for our transatlantic relations, but also working , forher in multilateral example, in the wto. Alix thank you very much. We really do appreciate your time. Valdis dombrovskis, eu trade commissioner. This is bloomberg. Guy live from london, im guy johnson. Alix steel is a new york. This is bloomberg markets. Still with us, Christopher J Wolfe, First Republic private Wealth Management cio. Lets talk more about the impact the election is likely to have. Clearly we saw a double bump today. The first came first this morning, when european and asian markets priced in the election results. Then we got a second spike higher as a result of the news from pfizer. It is the latter that certainly is having the most effect. Lets ask christopher about what we do next. Just in terms of the way we should relate to the selection, you talked with alisx you talked with alix a moment ago about how you would price this in. Is this sustainable . Is this a sustainable repricing . Christopher you bring up a good point about time horizons. The repricing i think relates to confidence. Greater confidence that we are going to be going towards a trajectory of growth, reopening 2021conomy its had around , will stay high. You might say theres a lot of work to do between here in the middle of next year, but i wouldnt make any mistakes. Longerterm, this is good not just for the u. S. , but globally, to take covid out of the equation, and stimulus out of the equation, and get back to a more normal operating environment. That still may be a ways away, but i still think it is an opportunity for investors to reassess where they are. Understand, if we are not looking at a blu