Weve had confirmation of a monster deal. Ryanair, europes largest carrier, committing to the 737. Maxs. Oing to buy 75 737 this comes on the heels of that grounded,being un after the huge grounding following those two crashes. We will be talking to the two ceos of these companies at the top of the next hour. Alix this is your super bowl. I just want to point that out. Some data dropping right now as well. Ism men effect ring data for november ism manufacturing data for november. Mike mckee has that. Michael it is slightly less than we expected. It comes in lower than the prior month. The services pmi comes in at 55. 9 from 56. 6. Not much of a change. Still growing strongly, which is important because this is a Services Economy. New orders were down a touch, as is the business facility. 51. 5 from 50. 1. In the Manufacturing Survey earlier this week, we saw employment fall into contraction soritory for manufacturing, Rising Services employment is still good news for the auto for the overall economy. Compare this to what we saw for the Market Services pmi. It tells you the two of them are saying the same thing, that the Services Economy is any and there. Is hanging in there. If it is growing, it is growing very slowly. Least,hanging speeds, at very slowly. Alix what happens when you have the benefits running out as well . Michael mckee. The u. S. Reporting its deadliest day ever with covid19 fatalities now topping 2700 on tuesday. California reported a Record Number of new pick of new cases that prompted las mayor to order residents to stay home. My message couldnt be simpler. It is time to hunker down. It is time to cancel everything. And if it isnt essential, dont do it. Dont meet up with others outside your household. Dont host a gathering. Dont attend a gathering. Following our targeted safer at home order if you are able to stay home, stay home. Alix joining us to discuss is a senior scholar at the Johns Hopkins center for Health Security at the Bloomberg School for Public Policy for Public Health. We need some perspective. Just how bad is it in l. A. , and how often are we going to hear what the mayor talked about in other cities Going Forward . What we are seeing is that there are hospitals realizing that the number of cases and the pace of the missions is unsustainable. They are getting to the point where their capacity becomes a concern on a daytoday basis. They have to think about what Nonemergency Services they have to curtail. This is something that we knew would happen during the fall, and it is not surprising to many people that this virus accelerated as we had more fandom more pediment fatigue, as we had the virus be favored by the colder conditions. Angeles, they dont have the public house for structure system to basically keep track of the cases and meet them as they come. If you see testing lines outside of las dodger stadium, those are really not acceptable this far into the pandemic. Many of what has happened didnt have to be so if we had a Public Health structure that could that could test, track and isolate. Expect theo we effects of thanksgiving took again . Dr. Adalja probably in the next couple of days we will see cases increase if there was significant transmission, and then a week later and uptick in hospitalizations. What we are seeing right now is not the result of thanksgiving. It is the result of people doing things before that holiday. There is a real concern that what the holiday brings will be kind of a surge on top of a surge, to use dr. Faucis words. Alix after l. A. , whos next . Where the next hotspot . Dr. Adalja what we have basically as a country full of hot spots. The media often focuses on major metropolitan areas like los angeles and new york, but it is often the work the rural and suburban areas where i am mark concerned because those hospitals dont have the people to be to increase staffing as much, and maybe a dozen icu beds in their hospitals. They dont have the ability to take more patients. Thats where i think you will see the first collapse of the hospitals that really run into problems and have to curtail services. It is all ready happening in the pittsburgh suburbs. It is not going to always be the big major cities because they tend to have big academic medical centers. It is the smaller hospitals, the rural hospitals, where i think we will see a major problem. The we are expected to see Pfizer Vaccine being cleared by the fda within the next few days. Sitting here in london, it has just been cleared here. As we see the case counts, the hospitalization counts, the death counts rising rapidly, how does that complicate the rollout of the vaccine . Dr. Adalja the vaccine is not going to change our death count overnight. It is going to take some time. It is going to trickle out to highrisk individuals and healthcare workers, so we will see theme to impact on deaths and hospitalizations. We probably wont feel that impact into spring. The rollout is going to be difficult in the best circumstances, even more difficult in the middle of heightened activity of heightened pandemic activity, especially when youre trying to vaccinate the general public. You dont want people to get infected with a are in the line to get vaccinated. Adalja, we are going to leave it there. Thank you very much, indeed. Lets get back to that monster deal i announced at the top of the hour. Boeing ceiling a landmark order for its 737 max jets from ryanair, a crucial boost for the u. S. Plane makers efforts to revise its best selling model after a 20 month grounding. Joining us now, Brooke Sutherland, blumer giving and columnist. Theyve got a look Bloomberg Opinion columnist. Do you think these are going out the door to ryanair at cost . Brooke i would be very surprised if they are going out the door at cost. Typically we see airplane orders of this size are already seeing pretty sick of the can discounts given be 20 month ash pretty significant discounts pretty significant discount. Iven the 20 month grounding, would be very surprised. Tos will go a decent way helping boeing clear out the 450 max jets that it has not yet been able to deliver. Just to take a step back, this is still a win for boeing. I think the key phrase here is that this is a firm order. , there member last year was a letter of intent to buy jets, so having a firm order is certainly a boost that boeing badly needed. Alix are there other airlines that are. Going to want the same deal that are going to want the same deal . Brooke i dont think boeing is in a position to drive a hard bargain here. I think they will have to build these planes on the lines that the airlines are willing to pay. I will say this is a pretty sizable order, suffer some of the Smaller Airlines looking to take deliveries, their price point is not exact what it once was. Guy do using southwest is next . Brooke it will be interesting to see what happens with southwest. Its reported that southwest is in talks with boeing. It is not necessarily going to be an additional order. It will be part of southwests existing order, just repurchasing some of those jets. I dont know at this point if we should expect to see southwest topping up its order like ryanair did. Boeing is struggling with a lot of carriers right now. Theyve been clear they dont need a lot of additional new planes in their fleet right now. I dont know that we will see necessarily a wave of airlines announcing orders along the lines of what we heard today from ryanair. I think a lot of these carriers are going to want to see some kind of recovery start to take place before they are willing to really expand their fleet. Alix such a good point. Thank you very much, Brooke Sutherland of Bloomberg Opinion. In the next hour, we will speak to the ceos of boeing, as well as ryanair. You dont want to miss that. This is bloomberg. Ritika lets check in on the bloomberg first word news. Im ritika gupta. Fewer americans than expect it filed for an implement last week. Totial jobless claims fell 712,000. That is better than all but one of the 40 estimate in the bloomberg survey. Continuing claims were also down to a little more than 5. 5 million. November jobs reports come out tomorrow. House Speaker Nancy Pelosi and Senate Democratic leader Chuck Schumer are now backing a bipartisan stimulus plan. They see the proposal from house and Senate Lawmakers as the foundation for a new round of negotiations. The plan calls for 900 billion. F spending the u. S. Has restricted travel visas for millions of memory of Chinas Communist Party new rules will allow Party Numbers and their families to obtain visas good for one month. Previously they could get 10 year visas. The u. S. Embassy in beijing says Chinas Communist Party actively tries to influence americans through propaganda and economic coercion. Opec and its allies are making progress in talks on oil output cuts. That increases the chances that todays meeting can salvage a deal after failed negotiations earlier in the week. Told bloomberg discussions are now focusing on proposals for gradual easing of output cuts over several months. 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. Im ritika gupta. This is bloomberg. Alix thank you so much. Here is some breaking news for you. The cable rate is the highest level since december 2019. It means the pound is up against the dollar, the most we have seen in over a year. So a lot of bets on a weaker dollar, the same way we are seeing more bets on higher yield. Joining us now on how you restructure your portfolio is based on those two things, michael antonelli, baird market strategist. What you do as an equity guy . Michael we have been watching these. Certainly a lower dollar to some of our multinationals. You are probably talking about boeing today with that deal. Theres printing to like theres plenty to like about a weaker dollar at this current juncture of history. We need to get these Global Companies back on track, and that will certainly help. We are certainly watching yields. If using about 92 basis points on the 10 year, we are inching closer to 1 . Stocks and yields are kinda moving in the same direction right now. The only concern is maybe sentiment is probably a little bit over its skis, and that lowers the threshold he would have for a shakeup. Guy would you be pushing this market higher . Would you be putting fresh money to work . Does this market make sense to you . Michael thats where we are at as strategists. We end this incredible year weve had, and we look forward to talking to clients about 2021. I think december probably starts off choppy. We are set up for possibly a little pullback, but i think we end strong. I really do believe that most estimates of next years gdp are probably low. I will tell you one reason. People consistently underestimate how much americans are willing to spend. And i think on the others out of this, americans are going to be spending. Alix but does that imply that we are going to get some kind of stimulus out of d. C. . Do you have to have that based into your forecast to get more bullish on stocks . Michael no, i think the stimulus would be a nice push, and i do think that is going to happen if you look at the washington wrangling going on. Dan clifton is one of the political strategists at strategas. He thinks the administration is looking for a deal that will probably happen before yearend. Im excited about that. I dont think the market needs that, per se. We are rally and without that. But if we get the stimulus on the table plus that boost next year, you are looking at a good set up. The table is set for a really good 2021 if the vaccine can get us there. Guy in the near term, the case count is going higher. Do you think that translates into Economic Data . The claims number today i think we can probably put to one side. It comes with a health warning. Other data are pointing to a slowdown. Do you think we will see that manifesting itself in a big way . For payrolls friday, what would it take to spook the market in terms of payroll numbers . Dr. Adalja i think payrolls michael i think payrolls is going to miss for a couple of reasons. Yes, the case is seem to be rising. The discount and hospitalizations in the u. S. Is at record highs right now the case counts and hospitalizations in the u. S. Is at record highs right now. There will be more people out of work. The market, i believe, is looking past that. I think the vaccine certainly helps. My biggest concern shortterm, to be quite honest, is that as a vaccine rolls out in the u. K. And then comes to the u. S. , what happens if just a random coincidence of somebody who takes a vaccine and gets sick right after that, what happens to the market then . I think that is a real big question mark. Theres a couple billion people that are going to have this vaccine within the first 3, 6, 12 months. I am worried about how the market is going to react to one possible negative case. But i do believe Economic Data is going to be weak in the near term. I think unemployment tomorrow probably misses. Alix are you buying the dip . Guyael this Research Sales used to say big moves start big moves. If you look at things like housing, some of the reopening trades, the bounce of the lows are in, but as you continue to reopen, i think you can still dabble in the Airline Space and the crude oil space. If you think that the roaring 20s is a thesis for next year, theres lots of ways to play it. I would stick to the Consumer Spending because i think that is going to be really robust here. Guy michael, always a pleasure. Thanks for taking the time. Michael antonelli of baird, we really appreciate it. What have we got coming up on the show . We will be talking to jim chanos on his view of what elon musk should do next. Hear that conversation next. This is bloomberg. Guy live from london, and guy johnson. This is bloomberg markets. Associatesof kynikos has been long tesla for five years. Hes not done just yet. He spoke exclusively with scarlet fu. I think that it is really a Business Model and a valuation issue with tesla. There are some things we dont want their accounting as well. A Company Trading at a 500 billion market cap. It will have revenues this year of 30 billion. Despite what everyone says, they are still an automobile company. They make cars. So they are competing with other companies that make cars. And increasingly, those companies have evs as well. Tesla, every bull market has a stock that people pin their hopes and dreams on. Back in the dotcom era, it was cisco and yahoo and a few others. Certainly one of those stocks this go around his tesla. For some holders, it is an ev company. For others it is a clean energy company. For others it is an Autonomous Vehicle company. It is whatever people want to believe that elon musk is touting, and that the traditional rules of valuation do not apply to it. I would just point out, as i always do, that for the trailing 12 months, tesla has not made any money selling cars. Of the trailing 12 months, whatever profit they have shown has been very low, has been from selling tax credits. So for all of this, for all of their market leadership, selling 50,000 on average cars, they are still not making any money doing it. Francine have you ever met scarlet have you ever met elon musk or talks to him . Jim ive never met him. Ive never had a conversation with him. Scarlet what would you say to him if you do get to meet him . Jim i would say Job Well Done so far. Scarlet going back to that idea that People Project whatever they want on the company, you anounced your tesla short in fiveyear saga. All of your shorts are capped at 5 . Are you still max short on tesla . Jim we are not max short, but we are still short. There are now so many other things to do, including in the ev space, that we found lots of other things that are maybe even crazier than tesla, but we deals but we still do have a position. It has been painful clearly, but i will say for the first four of those five years, it is not a bad short. It went sideways while the market went up. So those are the kind of shorts in a bull market that you hope for. , and ourt is going up shorts are not going up. But the last 12 months has been a different animal. Foldtock is up five or six , and we had to risk manage it by getting money out. Chanos of was jim Kynikos Associates speaking with scarlet fu. Hes not the only one to say im not max short. Goleman sachs, their analyst is upgrading tesla to about a from neutral,buy i should say. They say the shift towards battery vehicle adoption is accelerating. I feel like it is a little late to the tesla party. Battery prices have been falling for a long time. But who am i to judge . Guy and it is quite a big upgrade as well. The other thing i will point out is that you can argue the germans are getting into gear. You cant talk about years when you talk about electric cars. Germany is about to overtake california in terms of its adoption of electric vehicles. Europe is beginning to gain traction here. It is going to be interesting to see whether or not that changes the balance between the carmakers and the electric carmakers. It is going to be fascinating to see how the likes of bmw and daimler get going on this one. Alix people are going to need to buy a lot of evs. Still ahead, we will take a look at what bidens presidency means for u. S. Clean energy. This is bloomberg. In a land not so far away, people are saving hundreds on the most Reliable Network with xfi