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tv   Bloomberg Surveillance  Bloomberg  December 7, 2020 4:00am-5:00am EST

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francine: on a knife's edge, -- boris johnson is close to pulling out of brexit talks and not close to a deal yet. coronavirus vaccines begin in the u.k. tomorrow, the u.s. may follow suit by the end of the week as infections hit an all-time high. an exclusive conversation with the ubs chair. we will talk the future of european banking and the pandemic. welcome to "bloomberg: surveillance." i'm francine lacqua in london.
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let's check quickly on the markets. if you look at the markets, and a lot of them are looking at the concerning news or news brexit is going to weigh markets were hoping. the stock's european 600, down and the pound, looking to see if there is any swing on that. 1.3243. let's get to the first word news with leigh-ann gerrans. a british official says brexit talks need to show progress by tonight if they are to continue. european union's chief negotiator is said to have denied any breakthrough on the issue of fishing license. boris johnson is due to speak with the commission president ursula von der leyen. donald trump says his personal lawyer rudy giuliani has tested positive for coronavirus. "the new york times" says the
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76-year-old was admitted to hospital yesterday. the president wished him well. giuliani's son tweeted his well. is feeling the u.s. is said to be ready to sanction more chinese officials over the role of the recent disqualification of hong kong legislators. familiar,to people the latest round of sanctions could be rolled out today with as many as 40 people reported affected. joe biden has picked hobby or becerra has his health and human services secretary. he would lead efforts to curb the pandemic and strengthen the affordable care act. the president-elect's priorities will likely include expanding toting, improving access ppe, and distributing a vaccine. would be the first latino to lead the agency. goldman sachs is weighing plans
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for one of its key divisions. executives are scouting office locations in the south with a view to relocating asset management arm. to newd be a blow york's's stature as the home of the u.s. financial services industry. global news 24 hours a day, on-air and quicktake by bloomberg, powered by more than 2700 journalists and analysts in .ore than 120 countries i'm leigh-ann gerrans. this is bloomberg. francine: thank you so much. let's get the latest on the pandemic and the global economy. virus numbers rise with president trump saying his lawyer has tested positive. the administration says all americans who want a vaccine should be able to have won by the middle of next year as several states that infection records. the u.k. is said to be rolling out the vaccine tomorrow so is their light at the end of the tunnel and what does it mean for markets? joining us now for an exclusive
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conversation is the chairman of .bs, axel weber thank you for giving a little of your time to bloomberg. vaccine and how quickly we got to a vaccine and probably have three viable vaccines right now, what does it mean for the economy? will we see a boost from the vaccine or is it just the scarring we could have expected will be tempered somewhat? axel: i think it is a bit of both. thank you for having me. new forecasts and we have turned our optimistic scenario into and remain shows you most of the forecasts are heading into a better direction, but i'm continuously warning that what the outlook is -- while the outlook is somewhat better, we will not get out of this very quickly. we expect to get close to herd immunity sometime during 2021 for the major economies, which means the two vaccines that have shown to be very effective, plus the immunization that comes from those recovered is going to help
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us come down to very low numbers of new cases, and that will change the mood in the economy, so we expect a pretty strong rebound. it depends on other things. in the u.s., it depends on the size of the fiscal package. are expecting the midsize package around $480 billion than the one trillion. there are signs in both directions, but this will take a long time for things to go back to normal. it will only be next year in some of the major economies where we go back to precrisis levels of gdp and it will be a long haul to go to precrisis growth path and unemployment to come down. no quick fix here. francine: what does it mean for the kind of rebound we will get? can it be sooner than expected and deeper rebound? what does that mean for markets? have they gotten ahead of themselves? axel: what markets are pricing in, the endpoint of the trajectory we see, we expect a strong rebound in the u.s.
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3.9%pect under 4% growth, reported in 2021 and 3.8% in 2022, but the point is, these are average projections. there are many upsides and many downsides around these projections. at the moment, it is not sufficient to focus on forecasts alone. you need to think scenarios. it could be the rollout of the vaccine or the production is delayed, there is less acceptance for vaccination in the public. there are many unknowns to look into and i morning against focusing too much on your average projection. we really need to think in scenarios and there is downside in the u.s. particular around whether there will be a divided senate.ratic and quitewns still, an uncertain outlook, but a better outlook than a couple of weeks ago. francine: you have a new chief
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executive at ubs. how is he settling in? any points to focus on or change the direction in ubs? axel: i think like every time, i'm a firm believer that somebody who's coming to the job -- he's doing a fantastic job, settling in with the team very well. they have many interactions with the board. the board to the whole new dimension in the theme -- team and we will bank on that. what we are seeing is, their take in a close look at the various businesses because we are at a junction in the road. like in the financial crisis, part of what we have seen over the past couple of months will stay there for much longer than anticipated, and you need to look at the bank and its profile in a post-covid environment. will we do as well as recent years? that is what the team does. roughly 100 days
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or so to look into various aspects of the strategy. the board and management are focused on that. we will probably come out with a strategy and announcement with our first quarter results were shortly thereafter, but this is something that requires a reasonably intensive look and which requires time. i live by the rule that everyone on a new job has 100 days to sort out what he wants to do before we make big announcements around that. thate getting ourselves time to look into things and you will hear from us around the first quarter on what the future direction of travel will be. we are needing a rush to change things, because we've had a pretty good year -- not in a rush to change things because we had a pretty good year. we are doing well, but we need to prepare the bank for the future and the more distant future and there will be some impact of covid, not just in the short run, but longer-lasting and that's what we are focusing on. francine: credit suisse's departing chairman intimated
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there could be a deal in the cards between credit suisse and ubs. with such a deal makes sense to you? axel: well, look, we've had that discussion in the media for some while now. i would say two things. first, europe clearly is ahead of the wave of consolidation in the banking scene. when i say europe, i mean in the eurozone and basically the european union, because that is the single market and the banking market is still fragmented, so mergers among major european banks to get a holistic access to the entire market does make a lot of sense. i expect some dynamics. on the domestic front, we are a strong bank. credit suisse has done well. switzerland as a country has come through. two domestic banks talk mergers but they are hard to implement. this is a very unusual time, very high uncertainty and in such a highly uncertain
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environment, such talks would be much more difficult. i don't expect these things to happen at the current juncture. i think this will be a thing people will talk about for years to come before we see any concrete movement. the ones driving the consolidation are the ones that have problems. neither ubs nor credit suisse are in that area, so i think this is not going to be something that you see any news from switzerland anytime soon. we had two new managements, the chairman over there is changing, my term is nearing an end. this is not the time to go into questions like that. francine: your term is coming to an end, but will you try to stay on? axel: no, i'm pretty clearly determined. i've done this job 10 years. krauthammer's is the first of a generation to change at the top on ae bank and sergio left fantastic high note. i'm wired the same way.
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it is good to go when things go well and a decade at the helm is a good time. in the u k, it is regulated that every seven years, there need to be changes at the top of the board so i feel a decade is a good time. i'll be around, but probably time to pass the bank up to the next generation at some point. talking about a brexit deal, what is the hope for financial services at this late stage? financial services really isn't part of the discussion here. we've had trade and the new relationship with the eu. questions like switzerland has with the eu for many years. who will call the shots when there is a dispute between the u.k. and eu? a difficult discussion in switzerland and i do not expect a less difficult discussion in the u.k., if i'm honest. francine: but will we get a
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deal? axel: i think in the end, both sides will come to an agreement. it will be more a transactional deal and whatever is agreed to will be subject to review at high-frequency annually. take financial markets. if a union like switzerland gets agreement on equivalence, because the u.k. is super equivalent in every dimension, but that is only a snapshot. as soon as the u.k. uses its freedom and changes the laws for financial institutions, it will be reviewed by the union and switzerland has lost its equivalents for the stock exchange, not because of anything happening in switzerland or the eu, but equivalents judgments are a political judgment, and granting of market access by the european union. it is not a reliable two-way contract that can be enforced by either side. it really is a one-sided benefit granted by the union and can be withdrawn at the discretion of the union without really going
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into a deep discussion of why that is. , the ubs axel weber chairman stays with us. we will talk more about brexit and may be about policies and cross-border consolidations. i haven't asked axel weber about that for two weeks. changing of the guard at ubs. more with the lender's chair, axel weber, next. this is bloomberg. ♪
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francine: economics, finance, and politics. this is "bloomberg: surveillance ." i'm francine lacqua in london. let's get back to our conversation with axel weber, chairman of ubs.
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thank you for staying with us. we talked about consolidation within switzerland. what would it take for cross-border consolidation in europe to happen? axel: i think what europeans need to acknowledge is the way they tried it so far to get a banking union has worked -- hasn't worked. we are still quarreling about insurance, still don't have a capital union and i've been arguing that what europe needs is a think tank at the talk -- big bank at the top. it needs a new legislation that creates a european league of banks that can operate across the european union. pretty much what the united states did with the national banking act. mind you, that was in 1863, so europe needs to have its european moment for the banking union and capital markets union and that can only happen if there are european rules, european regulation, european supervision, european deposit insurance and you and only need that for the most global banks.
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you don't need that for saving and corporate banks in germany. , the a deal breaker differentiation across the union that needs to be revisited. why should a german savings bank become european? they should be regulated as a european bank, but there is room to maneuver for local rules, but truly european banks need european rules. ubs in europe,s 27 banking licenses and 28 supervisor on top. we are working from a piece of paper that has 27 lines drawn across it and we try to make a plan on how to deal with all our clients across the union. you wouldn't start such a system if it wasn't historical, so you really need to reset now. francine: what does it mean for acquisitions for ubs going forward? is there something that would make sense for ubs, or do you want to more focus in europe or on the u.s. market? axel: for us, i'm afraid to say
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that for ubs, the most important part is our home market, the u.s. and asia. our fourth market we focus on and we are largely a wealth management. because they and are more institutional especially the investment banking, we have more flexible rules across europe than others. we focused strongly on getting our business in the u.s. going further. for us, the competition with u.s. banks as a global leader in wealth management is really the number one focus we have. is a great doorstep market for us from switzerland, but we are not a european in the sense of eurozone bank and therefore, the focus for us is more on asia and china on the one hand side and the u.s. business and addition to the domestic business. outlook forr your
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the investment bank, how is your pipeline looking compared to a year ago? axel: we had -- we basically exceeded even the most optimistic forecasts for the investment bank, but let me remind you a large part of ubs' profitability and income comes from the areas i mentioned. the asset management and wealth management business is over 50% of our return. what we tried to do over the decoupled years is somewhat from the volatility of investment banking returns by putting a larger focus on asset and wealth management and on the profitable domestic market. we've succeeded in doing that and have seen that pay off in the financial results since covid has started, so it looks to us to be the right way and what we need to do is accelerate now further to really accelerate the digital transformation of the bank, to bring digital front-endo the client
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in wealth and asset management because with covid, the one thing wealthy clients didn't do much is meet their client advisors face-to-face. we have moved to a more digital offering but can improve the digital offering and that is what we are focusing. is the new hamers ceo, that is his focus, to accelerate delivery of services. francine: given what we are living through, hanging onto your top performers should be a priority, how do you do that in a pandemic? many ofsically because our clients have been with us for generations. the second advantage we are seeing with switzerland doing much better on the pandemic numbers, but on the economy. we know there is an inverse relationship between the severity of the lockdown and economic performance and switzerland has very good numbers to start with, so we
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haven't seen any large increase in credit expenses on the domestic front. it is trickling in, but low compared to european banks and the swiss economy to hold up quite well. most of our lending, or junk part, 50% roughly is to our wealthiest clients. collateral lending, where they borrow against assets, central banks have intervened so massively in the market. most markets are up, the value of assets hasn't really severed -- suffered. we've been holding up pretty well given the circumstances because of the specific shape of our business and our credit exposures either to the swiss market or to wealthy clients, whose portfolios have been strong. so far, i'm quite pleased with the way we've dealt so far with the crisis at ubs. francine: axel weber, thank you for your time and insight. the ubs chairman joining us this morning. later on "bloomberg:
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surveillance," we speak to the london mayor and ask him about brexit, covid, and lockdowns at 11:00 a.m. london time. this is bloomberg. ♪
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francine: this is "bloomberg: surveillance." i'm francine lacqua in london. this week, the you k's nhs -- rollout the new vaccine, the ecb will meet
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thursday and eu leaders will meet in brussels thursday and friday. they will likely talk about the approval of the next budget, the ratification of the 2030 climate goals, and about brexit. is a brexit breakthrough possible? michel barnier denies progress on fish, while the council says boris johnson is ready to walk away. we will be live from brussels. we heard axa labor say he wasn't expecting a deal by the weekend, but he thinks there will be a deal. time, each side talking to their constituencies. cable, 1.3 233. this is bloomberg. ♪ the usual gifts are just not going to cut it.
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we have to find something else. good luck! what does that mean? we are doomed. [laughter] that's it. i figured it out! we're going to give togetherness. that sounds dumb. we're going to take all those family moments and package them.
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hmm. [laughing] that works. francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in london. brexit negotiators are striving to finalize a deal by this
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evening after resuming talks yesterday. 27a meeting with the block's members, michel barnier threw cold water on news of fisheries. boris johnson is reportedly ready to walk away from the talks. rhea today owed joins us from brussels -- maria tadeo joins us from brussels. what is the mood like in brussels? have been a lot of headlines over the past two hours, signaling there is no breakthrough on fish, but what i would highlight is that the tone and the narrative is changing to becoming much more somber and pessimistic after michel barnier briefed ambassadors today to say that the sticking points remain in there hasn't been a fish breakthrough. the europeans are pushing back on that idea. it will come down to the prime minister. what i would signal is that there will be an important phone call between boris johnson and
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ursula von der leyen. when it comes to the actual deal, european diplomats will tell you nothing will move until european leaders get together in brussels on thursday, friday, to signal whether a hypothetical deal that gets put on paper, a technical deal can fly politically. until then it is hard to see one diplomat saying this is a 50/50 situation. what happens in the next 24 hours? maria: we are waiting for the phone call that happens between boris johnson and ursula von der leyen. the europeans are saying that they are not going to walk out from a negotiation. if the program -- if the prime minister decides to do so, it will be his move, his decision. europeans will continue to negotiate until there is a deal. i would also argue there will be a point -- and this is what i have repeated many times -- at which this will become a u.k.
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political calculus. i will probably be done in the next 48 hours. the prime minister will have to decide whether or not this potential deal that could be put on paper will pass his brexit test. is this about sovereignty, taking control? he sell this? that is an answer and a question that he can on loop -- that he can only respond to himself. francine: let's look at market movement. the pound continues to weaken further this morning. investors still questioning whether britain and the e.u. can reach a final agreement. dani burger joins us. dani: today seven decline in the pound, certainly different than what we had seen with losses nearing at times more than 1.5% on cable today. we have only seen the pound decline this much in the past year about five times. the dollar weakening story has been the dominating -- the dominant market force.
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we continue to see the pound able to make up that ground that we are able to see when we get losses in the twilight early trading morning. one of the remarkable things isn't just what's happening in the cash market, is the options market as well. already the options market was very bearish about what is happening in the pound. it is getting increasingly bearish. i'm looking at overnight volatility between the pound and the dollar. you can see it jumped over here to its highest since the beginning of the pandemic. this is where options are pricing. these are the sort of losses going forward, and it is not just an overnight volatility, it is also in risk reversal. i'm looking at euro versus pound. you can see it stays pretty steady. the market was already bearish, already had investors taking -- out against a possible no trade deal. the most hedges against the
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pound versus the dollar since march, so the options market diving further into that need for protection as the cash market itself also falls, francine. ,rancine: thank you so much markets reporter dani burger. is a guest from societe generale. thank you for coming on the show. waiting for a brexit deal, it could actually not come. does it mean for risk out there? >> i think this is pretty critical because of lot of the investors have looked at the markets this way. election, the. pandemic, and then brexit. one of the things that is pretty important is that the hasident-elect, joe biden, increased pressure on boris johnson to find an agreement. the second wave and the second lockdown in terms of economic hardship has also put pressure on the e.u. and the u.k. to find a deal because this would
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otherwise have a self-inflicted blow to an economy that is already weakened. so now is a question about principles. sovereignty, etc.. we will have to see later today whether there is an agreement. but it is clearly going to be a volatile set of hours or days. look at somen you of the things that could worry his brexit systemic? i feel like we have been here every six months or at least every year of a no deal brexit. are you comfortable with the fact that the markets know what to do in case of a deal or a no deal? kokou: this is a good question. and seems a lot of investors having unwound, you should get good numbers in the s&p, but in terms of performance or the sterling, it has under formed -- underperformed quite a bit.
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with risk premium or on the brexit effect. a lot of investors have made the decision not to get invested if they don't know the distribution outcomes or are not comfortable with the risk, and tip legate stabilityors want increases. we have seen the pattern with the u.s., where things were pretty low into the event. stocks, look at global -- francine: when you look at global stocks, what are we going to see in the next months and quarters? the fiscalrly what and monetary response, it has been unprecedented for several reasons. this is a humanitarian crisis. there are lives at stake. almost like a wartime type of reaction function. when people's lives are at stake, the physical responses almost unlimited. so going forward, the market is pricing financial liquidity. thehing that between
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short-term and the light at the end of the tunnel, which is what the vaccine and technology is providing markets. -- and clearly the risk around 50 or execution will drive volatility. there is a difference between the vaccine and vaccination. francine: so when we will he have a clear idea when it works with treasuries, for example? kokou: in the next six month we will have a pretty good idea in terms of the sort of execution process we saw last friday. we saw the s&p dipping quite sharply into the close when we , so by theouncement end of the year, it will be 50% what is expected, but going forward q. week -- do we expect the inflation or to be -- we
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think that a lot of rotation away from credit and government bonds into equity and green esg driven themes are likely to be the key driver going forward. francine: thank you so much, kokou agbo-bloua stays with us. we will talk about the great rotation. coming up, backing a stimulus bill. bill cassidy says it is likely trump and mcconnell will be on board. more on that next, and this is bloomberg. ♪
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francine: this is bloomberg surveillance. let's get to first word news with leigh-ann gerrans. leigh-ann: hi, francine.
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the u.k. is gearing up to deploy his first covid vaccine with plans to provide the injection at more than 1000 centers across the country, starting tomorrow. the u.s. could approve pfizer's vaccine for emergency use as early as thursday. that will start in los angeles county as more than 10,500 new cases hit a record further the fourth straight day. president trump said his personal lawyer, rudy giuliani, has tested positive for coronavirus. the new york times says 76-year-old was admitted to the hospital yesterday. the president wished him well in a tweet, saying we will carry on. his son tweeted that his father is getting great care and is feeling well. doordash and airbnb are set to start trading this week and what is likely to be the busiest yet end on record for u.s. ipo's.
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raising a combined $6.2 billion at the top end of their price ranges. doordash up to its price range in a filing friday. airbnb is set to be planning to increase its pricing, which could give it evaluation of as much as $42 billion. joe biden has picked obviate becerra as his health and -- has picked javier becerra as his health and human services advisor. the president-elect priorities in tackling the virus will likely include expanding testing, it colluding access to ppe. he would be the first latino head of the u.s. health agency. healthin j.d. international have jumped as market 27% in gray trading in hong kong. the firm said the retail section of its offerings, part of the city's biggest ipo of the year was 422 times oversubscribed.
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global news 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more i'm 120 countries, leigh-ann gerrans. this is bloomberg. francine? francine: thank you so much. president trump and senate majority leader mitch mcconnell are likely to back a 908 lien dollars stimulus package. that is according to senator bill cassidy, a member of a bipartisan group sponsoring the bill. >> neither have said we will sign your bill. that's fair, we have final language. our final leg which will probably come out earlier this week. so than people can look at it and we can modify it as needed. but indications i get, the pain of the american people is driving this, and i'm optimistic that both of those leaders will come on board. francine: let's get back to kokou agbo-bloua from societe generale. you look at the hope on the stimulus, that depends on what happens in georgia with the senate race, but what does the u.s. economy need right now?
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kokou: i think the u.s. economy needs a stronger short-term fiscal stimulus. the number talked about between $500 billion, $700 billion as opposed to $2 trillion. the short-term damage to the demand that we see in unappointed has been improving, meaning pretty high. toi think what is important bear in mind is similar to what the fda rules said in 1933 that to what was said in the 1933 inaugural address. good for financial markets. further physical direct help to the consumer is key at this stage. francine: so what trade do you put on? or what trades? kokou: in terms of trades, if we assume that the vaccine ultimately reaches -- bridges
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the gap between the short-term pain and the light at the end of the tunnel, we think being long equity, because they are more precise in expressing the recovery from covid, so these are tourism sectors, for example, stocks that were in industry that we have had content, financials are sectors that are likely to do well. higher expectations are likely to incur -- to occur, and long equity versus credit because we will see 5% rates next year, and a lot of the broken business models are unlucky to survive even in a vaccine year. francine: does dollar weaken from here? kokou: yes, so we remain parish on the dollar because in terms of the amount of -- we remain bearish on the dollar. it is likely to continue that
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momentum, and any sort of risk on environment, it is dollar bearish. thecine: so if you look at spread in the u.s., is there anything in the u.s. that you want to be involved in? kokou: well, i think it is clearly sort of the value sector, which has underperformed quite a bit. interesting,eally and a lot of investors are spending a lot of time on, is the green transition. could --enate run-up runoff could end up where the democrats win two seats, so that election is pretty tight. beau biden could have more capacity to implement -- joe biden could have more capacity to -- that could lead to a pretty sustained outperformance of esg related stocks. related tohat is esg
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maddox across the board. europe was going to be -- related thematic's across the board. investors like japan, certain parts of asia, also china, and certain parts of the u.s., but europe a little bit less than they did six months ago? kokou: absolutely. these are clearly questions in terms of short-term agreements, but i think that the trend is what investors care about. the european recovery fund really sets the scene of a fiscal --l, and not a or sharing losses with the periphery, but at least the intent is there. we don't necessarily need to have a recovery front driving it on the esg theme because even when it comes to corporate commitments to having a more social equal environment and priorities, the
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theme has already started and we can already see that green risk factor or valuation premium being protected in sectors. numberink we have seen, one, the flows being quite significant. this rotation out of quality into value is something that occurred with esg related somatic. how do you actually play the esg themes or changecs or climate thematics in china? is there something we should be looking at a lot more? kokou: this is a good point because if we look at esg factors in emerging markets, generally speaking they are not as strong as the factors in developed markets. number one because of reporting, but number two because of where they are starting from. number one, you could look at the screening of stocks that have -- that are improving their
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rating. and number two, which is even more interesting, looking at those companies that are producing the goods that are helping the transition. -- the energies transition. so wind farms commodities, that will be used in the agenda around climate change, are ways to essentially trade that thematic. so thematic baskets are the best way forward because they are more precise and global and regional. francine: thank you so much for the insight. kokou agbo-bloua staying with us. we will have more on the esg themes and investing throughout the week. coming up, united states is set to slap sanctions on more officials outside of hong kong. -- two chinese officials outside of hong kong. or on that next, and this is bloomberg. ♪
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francine: economics, finance, politics. this is "bloomberg surveillance." i'm francine lacqua, here in
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london. this is the look for some of the markets, looking at brexit, we understand from the u.k. side it is not going to plan. we also understand from the european side, it seems that the u.k. counterparts are actually playing or fighting. they are going as far as saying that talks could collapse in the next few hours. we are seeing that play out on the currency markets. you can see cable at 1.3265. also good to look at euro-sterling. apparently the u.k. prime minister is ready to pull out of the talks. the million-dollar question is whether this is just to talk their constituent -- talk to their constituency back home. , the president france, what he was also doing. the u.s. is preparing to sanction at least a dozen more chinese officials over there role in the recent disqualification of hong kong legislators. that is occurring to people familiar with the plans. that comes as donald trump continues to pile pressure on
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china on his final weeks in office. joining us now is bloomberg's have a china government editor, karen leigh. rate to have you here today. when you talk about escalation, is this it, or could we see more? karen: what we are hearing so far is that michael pompeo will sign off on a list that includes high-ranking officials, and that makes sense if this is a move that is in fact intended to pile more pressure on china in donald trump's final weeks in office. previous actions have included senior officials like carrie lam . and while trump indicated to aids in july that he did not infect want to further escalate tensions with china, he had ruled out at additional sanctions on top officials at that time. we see this move now, and what is interesting to note is that the four he said that in july, his team had created a list of officials, including someone --
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including the vice premier, which is part of china's politburo standing committee. we can speculate about some senior officials. we have not been sanctioned yet. we can look at what this is going to mean going forward for the u.s. and china as the trump ones up. francine: one of the things we have been trying to figure out is how much can president trump box in or escalate the feud with china to box in joe biden? what are the chinese expecting of a biden administration? what: all eyes are on biden is going to do with china. most people do not expect him to back down, but people are looking to see if there will be a realignment and what has become a very fraught relationship in recent months. everything that we are seeing today, any moves by trump in the last month play into the big lesson surrounding u.s.-china ties at the moment. one is how much harder moves like this by trump are going to make things for joe biden after
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january 20. and what else trump could be planning in his final weeks to hit china, to hit xi jinping before he steps aside. francine: karen, thank you so much, karen leigh, our bloomberg china government editor. we will have plenty more on china and the u.s. as we expect those sanctions as soon as today. it will be extremely interesting to see exactly who they are targeting. the markets, a selloff we are seeing on the back of these trade tensions being more concerning than they were last friday. also brexit. a look at the conversation, it is not exactly going how investors were hoping they would go. cable, 1.3258. bloomberg surveillance continues in the next hour. ♪ every year, we set out to do one thing:
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help the world believe in holiday magic. and this year was harder than ever. and yet, somehow, you all found a way to pull it off. it's not about the toys or the ornaments but about coming together.
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santa, santa, you're on mute! just wanted to say thanks. thanks for believing.
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>> on a knife edge. the pound sinks. schiavone says they are not close to a deal yet. the rollout begins. coronavirus vaccines begin in the u.k. tomorrow. the u.s. may follow suit by the end of the week. an relief bill optimism. president trump and mitch mcconnell are said to be on board a $908 billion package. negotiators are set to unveil details today in hopes of a deal before congress breaks for the year. it morning and welcome to bloomberg surveillance. i'm francine lacqua and on, lisa abramowicz in new york, tom keene has the day off. there is a lot to talk about brexit, a couple of things with china and hong kong, with mike pompeo possibly putting up extra sanctions, and there is the stimulus. lisa: it is a good reminder that there world is not entirely revolve around the pandemic. the vaccine, the timetable the,


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