Minute. Veterans day yesterday in america with the bond market shut down. There is no other backstory in america right now than the pandemic. It has pushed everything aside, including this election. Francine i agree. We will have play more on that. Lets get straight to the bloomberg first word news. Here is rick a group to ritika gupta. Ritika the state of georgia will conduct a hand count a recount by hand. Joe biden leaves by leads by roughly 14,000 votes. The Trump Campaign alleged there were widespread election regulators, but there was no proof. President elect joe biden is naming longtime aide ron klain as white house chief of staff. Klain played a leading role during the economic and Public Health crises of the Obama Administration, leading the the job the job is one of the most powerful in washington. Dharna is set to take moderna is set to take a spotlight take the spotlight on a new coronavirus vaccine. It will allow a preliminary analysis of its effectiveness to begin. Moderna did not predict how long it could take a committee to analyze the data. International Energy Agency has cut forecast for global oil demand. New lockdown measures are being imposed around the world and the agency warns that the vaccine break will not be announced to quickly revive markets. That may delay an increase in Oil Production by three hyphens opec and its allies may delay oilproduction a hike in production by 36 month. This is bloomberg. Tom before the data check, Jonathan Browning reporting with his team on bnp paribas. When you run a hedge fund business, it is called prime brokerage. Deutsche bank jenna sink prime brokerage. Bloomberg has learned that bnp paribas in that transaction with Deutsche Bank is being scrutinized. Thats the language we are using, scrutinized, by french regulators over a fee to a middleman. This involves a former Goldman Sachs banker. I asked mr. You could have asked mr. Gnode about that. That would have made him happy. What does it mean when we scrutinize . Francine it means that, you know, innocent until proven guilty, but certainly looks like an investigation, tom. Right . Tom yeah. Francine if its the french regulators, i guess we have to wait and see. I know our reporters will call to try and figure out if there is anything more. We will know certainly from the regulators and a couple of weeks what that report found. Could be nothing, could be significant. Some of the biggest things start from nothing and become big. Others, we never really hear about, tom. Tom lets scrutinize the data. Its a quiet day in the markets. Red and green on the screen. Nasdaq 100 futures go up, its all fractional material. 24. Vix under the yield was 9. 97 before 0. 97. Day oil ebbs away. 97. Rling, 1. 31 save me. Francine i will save you by showing you burberry. Tom there you go francine the figure, sales were not great, but actually it was betterthanexpected. Sales dropped less than expected. Burberry gaining almost some 3 . It was gaining at one point almost 6 . Clear that the global stocks rally is easing. Investors assessing whether the equity markets are overheated. This on the backdrop of a deteriorating on coronavirus information. Tom cashmere scarf from burberry pricing in at 600. I can see it on francine lacqua. Francine three standard deviations. Lets talk about u. S. Politics. Tom whats it called . Francine joe biden has been named has named longterm aide ron klain as his white house chief of staff. Republican senator from oklahoma says he will intervene if the Trump Administration denies biden access to daily Intelligence Briefings by the end of the week. Joining us now to discuss a transition, to discuss the future of bidens administration, Chatham House e, leslie. S. Programm vinjamuri. When you look at this transition, you have the biden camp basically trying to take charge, going ahead. You still have people in government saying we need recounts, this is not done. How does a common person deal with these two sites . Sides . Leslie at some level, its probably what people expected from President Trump. Its clear quite how decisive the electoral result has been. Recounts for slim margins are not uncommon. We are talking about 20,000 in wisconsin, something shy of that in georgia. Team is biden campaign, doing now is very widely moving forward, trying to communicate. Tom said the number one story right now is the pandemic, the devastation it is wreaking. The biden team is clearly communicating its commitment to moving forward, to giving a steady message on masks, appointing the Coronavirus Task force. Ron klain dealt with ebola for president obama, really understands the significance of this and has worked with biden, has helped him for 30 years. Hes very well known, very well trusted. I think the signals coming out of the biden team are waiting to be given the key so that they go into the executive branch and begin that process of transition. Thank goodness that this is a team of people who know washington, know the executive branch, know the issues very well. If it was a newcomer to washington, the fact that they are being held up by the Trump Administration would be far more worrying than it is. Francine what have we found out about who will surround the president , president elect joe biden . Do we have any insight into who he will have in his administration . Leslie well, he has indicated that hes going to wait until thanksgiving. Presence are coming slowly presents are coming slowly for those of us who want to know. He has released the information on the Transition Team. I think a lot of people are assuming that the secretary of state pick is going to be susan susanenator cowan rice or a senator. I think the names are fairly, they are in circulation. Of course, things could change. One eye is always going to be on the senate and what happens in that january 5 set of runoffs in georgia. Very important point on those runoffs is that it means that effectively mother public and party and also the democrats are in Campaign Mode all the way through january 5. Thats going to affect what happens in congress. It might mean that we do not get any fiscal stimulus until after january 5. After january 20, which of course is not good news, and probably was not good news for the democrats if you look at what has happened in the house. Tom the question of the day goes back to mr. Klain. I have interviewed him a number of times. Ron klain is a brilliant kid out of indiana, worked with al gore, instrumental in getting Ruth Bader Ginsburg through the process to becoming a Supreme Court justice. Great. Is mr. Biden piecing together obama 2 . How do you respond to that . Leslie i think that, you know, if you are a president elect looking at a country where hundreds of thousands of americans have died and thousands are dying every single day and there is no plan for getting the country back into control, when you are facing rising geopolitical challenges from china and others, and any ofber of issues, and 4 years wrecking by President Trump on any number of democratic norms, what you do not want is to start with people who do not really understand washington, who do not have the experience or context. Certainly, a number of people with the deep experience are coming back on board. It looks like a very moderate team. We are not saying progressives rise to the top of the list so far. We will have to wait and see. Know, most also, you of the names that are coming up are experienced, but very much on the front foot with respect to their focus, energy. So, i think its good news. Tom mr. Lankford of oklahoma, deeply devout evangelical, has made very clear, this president elect needs an intelligent briefing intelligence briefing. As mr. Trump starting to lose his absolute core, conservative base . Leslie i think this is the question, this is the judgment that people like Mitch Mcconnell and others in the senate must be must need to make very soon. At what point are they holding back americas progress in the transition, beyond a moment where supporters are going to find this advantageous . As the numbers unfold, as the rest of the world begins to acknowledge and accept the president elect, Vice President biden, as the American Public moves forward, i think at some point, this is going to cost the republicans quite a lot. Its that calculation. What do you do to keep the base mobilized, keep energy in the party leading up to the january 5 elections in georgia . Control of the senate is at stake. That is incredibly important for the domestic agenda. Francine thank you so much. Leslie vinjamuri therefrom Chatham House. Up next, we speak with jane foley of rabobank, head of fx strategy. This is bloomberg. Francine this is bloomberg surveillance. Tom and francine from london and new york. Joining us to talk about u. S. And of course to talk about Everything Else is jane foley, rabobank head of fx strategy. I know tom has been very upfront, actually, dominating really some of the turkish lira moves ahead of them, wants to talk turkey. What does the joe biden election, what does a vaccine actually mean for dollar Going Forward . Jane i think particularly with the vaccine, it is good news. It is quite interesting, because we have seen since monday and that pfizer news, a lot of politicians and central bankers looking to push back, saying, look, we are in for a couple of backorders still bad quarters still. What we have seen from the markets since the Global Financial crisis and the advent of huge amounts of quantitative easing and cheap money is the markets ability to be sensitive to bad news. The blanket of cheap money has provided exactly that, a safety blanket. The market tends to look through bad news, perhaps a lot swifter, a lot quicker than what it would have done during the financial crisis. The market has a tendency to ignore the fact that we do have a couple of bad quarters priced in. There has been a bit of position adjustment since the movement, that rotation on monday, tuesday. I think it probably means that the likelihood we are going to see a big surge in the safe haven dollar is now far less likely. Francine what do you do with some of the other havens . What do you do with swiss , for yen . Jane one thing that is really quite interesting and perhaps the market might have mispriced it is the relationship between biden and china. The market can sense that. The relationship between china and the u. S. And his presidency will get worse, perhaps at least not until we get to the next u. S. Election. If there is a play by the electorate, suspicions towards china, maybe then he will become more hawkish. Looking at the conversations that biden had yesterday between the Prime Ministers of japan and the Prime Ministers of australia, they appeared to be trying to make him come out and make a stance about defense in the region. This is particularly worr isome to asian countries, the buildup of military hardware in china, for instance. That might mean we have pressure on the president to actually make a point, make clear his stance about china perhaps sooner than the market is anticipating. Perhaps he could be more hawkish. Tom jane, i want to talk about the movie have seen in pacific rim em. Just looking at dollarseeing dollar, dollartaiwan, they are deviationsstandard of persistent moves to stronger em currencies. Does that sustain or do you assume a regression to the mean . Jane for the time being, i think with the biden upswing and vaccine upswing, it is not a move i would want to stand in the way of right now. Certainly, it does seem there has been a big push back into em. We have begun to see that really last month, a big move back into em last month. People again taking a look at moving back into higher risk assets. That perhaps is in tune with that rotation trade in stock markets on monday as well. Unless we saw a Risk Appetite really taking a dive for the worse, i think thats a move that is perhaps going to be comfortably here for the time being. Now, the vaccine hope gives a big push to that risk on trade. I think that the Market Movers certainly more positive now. 1. 21. Uro goes 1. 17 to do these pacific rim nations, do they get upset about strong currency or do they just take it as it comes . Jane i think they would probably rather have weaker currencies. We are in an environment where inflation is really quite low, very low in many respects. In that environment, i think we can take it as a given that generally speaking, centralbank favor a weaker currency to get inflation back on track. Aside from that, there is this a big push of trying to perhaps relocate some businesses out of china back into the asian region. There will be some competition between. s some of those nations. Im mayt point of view, reckon they favorite. Furry majority of countries, talking about turkey here, but a weaker currency would be to their advantage, as long as it is controlled. Tom jane foley with us from rabobank. Lots to talk about, arguably the litmus paper of the International System on Foreign Exchange. We will continue this conversation at the beginning of the next halfhour. Negative, futures nasdaq futures go positive. Other than that, its remarkably quiet. Flightyually right now stronger, rather. Balance of power with david westin, the former Federal Reserve governor. This is bloomberg. Good morning. This is bloomberg surveillance. I have your Bloomberg Business flash. Bytedance has asked the Trump Administration to extend todays deadline to sell its tiktok business in the u. S. In august, President Trump that becausech be spun off of concern about american user information. The deal is not final. Siemens is forecasting a modest increase for growth in 2021 after a tough year for Industrial Companies due to the pandemic. Europes biggest Engineering Firm warns that some coronavirus related challenges remain. That could cause customer investments to lag behind economic growth. Wells fargo is considering whether to sell another of its businesses. Bloomberg has learned the bank is exploring the sale of a Unit Offering store branded credit cards. Wells fargo also is gauging interest in other businesses, such as asset manager and its student loan portfolio. Thats your latest Bloomberg Business flash. Tom, francine . Francine thank you so much. Lets look at the markets. Markets focusing on the rotation that we saw and treasuries after yesterday. When looking at treasuries, 0. 93 90. Burberry sales were down a lot, but it was better than expected. On the back of that, use burberry bounceback quite nicely, now getting some 3. 2 . The milliondollar question, did nde rally go far, too far a were markets overheated . Thats the main question that markets have been trying to figure out. Tom we saw yesterday may be a return to the kind of dynamics we saw previous but we will have to see day by day, to say the least. The data here red and green on the screen. The vix speaks volumes as we come in from a 41 level as well. On dollar weakness, jane foley with us. We will get back to her in a moment. Euro, 1. 1812. It will be interesting to talk to her about euro dynamics as we just looked at the pacific rim. Maybe we will talk about turkish lira as well. On the diplomacy of the United States with turkey, there is nobody better to speak with than the former ambassador on the changing of the guard in washington. Robert horn matz on our new diplomacy. Please stay with us worldwide. This is bloomberg. Good morning. \ francine this is bloomberg surveillance. Recovered somey of the lockdown after the third quarter. Much weaker than other wealthy nations have, highlighting that holy endemic has taken on britain. Hold the into because had on britain. What you thought the vaccine should get first. What is Boris Johnsons biggest headache right now . Is it the economy . Is it brexit . It seems theres so much talk of in downing street not going to plan with aids leaving an aids joining. I think his biggest headache is very close to home. For some time weve been hearing the Prime Minister once to appoint a chief of staff and it emerged in the british media his choice was lee kane, very longstanding advisor. Had been with him through his rise in downing street and his election majority in december. That was not to the liking of others on his party and lee kane has resigned and that has created a big storm. The government has said, theres nothing to see here. This is just a bit of reshuffling of the chairs within downing street. It is not really what the public wants to hear, what they care about. Whates to the heart of many people of question about this government, and that is who is driving it, what is the vision behind it, and where is the real management expertise . We are going to see the story have some cut through with the public, even if there are so many essentially, bigger issues like the economy, the vaccine, the relationship of the new white house there also vying for attention right now. Francine what does this exit in downing street mean for controversial but closest ally to Boris Johnson . Open question. Cummings has held on through a lot of ups and downs, including huge criticism when he broke lockdown rules before. He is very close to lee cain. The question is races is whether this very core group of hardcore brexiters that formed the vote lead campaign, really propelled joh