tv Bloomberg Markets Balance of Power Bloomberg December 15, 2020 12:00pm-1:00pm EST
david: from new york to our bloomberg television and radio audiences worldwide, i am david westin. welcome to balance of power where the world of politics meets the world of business. it looks like the s&p is coming back today. the first update in five days as the bulls are trying to reestablish positioning. a lot has to do with vaccine optimism. vaccine is safe and effective. the fda will be ruling on thursday as to whether it will receive the emergency authorization pfizer looks to receive. it is largely expected this will happen. if all goes well that vaccine should be in distribution relatively soon. that means and the longer-term the economy will be able to reopen. on this we do have the s&p 500 trading higher, the nasdaq 100 trading higher. the nasdaq 100 is up less than
the s&p, a .3%. the big drag is moderna similar to pfizer. the pfizer vaccine was starting to going to distribution. that closed down more than 4%. moderna down .6%. sell the news action. we had some of the tech names down, facebook down 2%. interesting weakness. bonds not worried. we have the 10 year yield climbing. overall is a bullish risk on areure, even as investors waiting for news on stimulus. right now they are happy about the idea of vaccine and now a second vaccine is potentially closed to distribution. you always look for counter indicators. guy: -- abigail: one that had my eye yesterday, the vix, the fear index, when it is above 20, that
tells you uncertainty remains elevated. it is still above 20. that tells you some investors are hedging. they think the near term could be difficult around the virus situation, even as we come to believe the medium and long-term will be more positive as thegete population. keep an eye on that. if that is above 20, that tells you some of the hard and fast money they are hedging that they are not completely bullish. that is meet the surface. david: thank you so much, abigail. appreciate it. in the meantime congress is in a rush to get its work done before the holidays. it has a spending bill that looks like it will be going forward and it may be attached so -- attached to some form of stimulus. we welcome john yarmuth, democratic congressman from kentucky and the chair of the house budget committee. it is great to have you back with us. we just saw an announcement that nancy pelosi is going to be
meeting with her counterpart, mr. mccarthy, as well as the senate leadership. they will have a conference at 4:00. are we moving toward a deal? rep. yarmuth: it looks that way. it is great to be back. i realize you cannot see me smiling, but i am happy to be back. this is something that should never have gotten this far. we passed the cares act in march. we passed the heroes act in may. said we willnell have to wait and see once we passed the cares act if we need more help from the federal government. of course that was sensible, but was it sensible not to start working on plan b? we all thought this would be over in mid-summer. many people did. we provided for that in the cares act. here it is in december and we still do not have an ongoing
tragedieso the many the american people are experiencing. we have seen employment numbers take a turn for the worst in the last week. we know it looks like december will be soft on the employment level. we have a lot of evictions coming up in a couple of weeks if congress does not act. we have not helped with the strain americans are feeling. we have put a lot of additional stress. david: my understanding is the bipartisan group in the senate that divided the issues. one of them could include things like support for small businesses and unemployment insurance that will go away at the end of the year. it separates out the assistance from state and the liability limitations. is that a sensible compromise and what will that do to states and local governments if we do not get that done?
rep. yarmuth: i do not think it is sensible, but it is not sensible we are where we are. right now we are asking the be the leaders and implementers of this incredible challenge to distribute vaccines across the country over the next few months. states and localities are already hurting desperately for revenue. 2 have already laid off million public service employees across the country since the pandemic started. we need to provide resources for those states and localities to do what we are asking them to do , which is save the lives of millions of americans. it is incredible this has become political, that republicans seem to think this is a blue state/red state thing. our number seeing governor asa hutchinson a few weeks ago begging congress to act. arkansas does not have a change of blue in it.
my state we have a democratic governor but everything else is republican and trump carried the state easily. we are desperately in need of help. i talked to my mayor just this morning, the mayor in louisville. he is also president of the national council of mayors, and he says cities are hurting all over. they are trouble doing the basic stuff. , anding policing, security health care and now we are asking them to distribute the vaccine. we need the help, and it cannot be tied to liability reform, which is what senator girardi leader mcconnell is pushing to do. we need to do what needs to be done right now. let's do what we agree on now and do what we do not agree on sometime later. state and localities cannot wait until later.
you mentioned the mayor of louisville. we will be talking to him on this program. at the same time, as you talk about kentucky, i am mindful of the fact one of the residents of kentucky was mitch mcconnell. i fear he may even be a constituent of yours. explain that. we are not a blue state in kentucky and we are definitely hurting. revenues are down. we have laid off a lot of public-sector employees in the last months. i cannot imagine why republicans who tried to empower states as part of their set of values
rights and responsibilities will not give them the resources they need to carry out the roles we are asking them to play. states have to balance their budgets. the federal budget does not have to. aat virtually everybody in position of knowledge knows, whether it is the chair of the fed, jay powell, whether it is people like douglas holtz-eakin, the former cbo director who has been a deficit hawk, they all say we have plenty of fiscal room to make the kind of investment we need to make right now. -- we do not need to act into the and massive away. david: i can certainly understand your concern about -- if you do not
get the state assistance and deal -- is it gone as you go to the next term? rep. yarmuth: you will lose a lot of very good public servants. even this compromise measure is time to get us through march. it speaks out or implies we will have to do something else. we will have a president and his economic team who understand the importance of doing it, we will have the bully pulpit. we will lay out a compelling case. that is one thing we have not had his presidential leadership
in this national economic challenge. i am a little bit more optimistic regardless of what happens in georgia and what happens with control of the senate that with strong leadership coming out of the next administration, we have a much better chance of getting something done. david: always great pleasure to have you with us. that is the democrat from kentucky. as i mentioned, we will be talking with his hometown mayor a little bit layer in this program on "balance of power" on bloomberg television and bloomberg radio. ♪ the usual gifts are just not going to cut it. 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
david: christine todd whitman served as the 50th governor of the state of new jersey before she went on to head the epa. she has also been very involved with an advisory panel taking a look the elections to make sure they were done properly and every vote counted. we welcome christine todd whitman. welcome for being with us. tell us about this group. i was not familiar with it before. christine: it is a nonpartisan -- it is made up of attorneys generals, members of law enforcement, people like me thrown in, but people who care about the law and wanted to make sure this election was as clean and fair and free as any we have had. ,nce we saw what was going on
there is monitoring in the swing states. once all the questions started , it was not me because the lawyers and the group were the ones doing an incredible job of writing the amicus briefs and filing briefs to counteract some of these ridiculous claims being trying toessaging, reach those people in the state and say this has been ok, it has been right. everybody has been watching. there was not fraud, there has been no proof. they are there. we have been trying to get the message out because it is --ortant
david: what is the reputation of our democracy in this country? we have heard joe biden -- he spends a fair amount of his time defending the process itself, not just the numbers that came in but all of the people, republican and democrats officials at the state and local level. you look at this entire thing , because you've had a hard look at it, how did we do? what is the reputation of democracy after this election? christine: at a time of a pandemic with a president who had been setting up the idea there would be a stolen election, there would be fraud. he has been talking about for a year if the only way he could lose was if it were stolen from him. to come through as we have, yes there were challenges and it is still going on. it is not so much about this election but the next one. i think we should show this is
the strength come out democracy was tried in this election cycle as it has never been tried before, at least not in everybody's living lifetime. we have come through it. we show the rule of law works. we show those men and women, republicans and democrats come it is both sides, they stood for , many retirees -- we should be thankful ordinary citizens and the vote turnout is another example of thise finally posting franchise meaningfully. we have also shown the weaknesses. there are things we need to work on. obviously we need to take steps to ensure the people have confidence in the system. that is the biggest loss we have
had from this election if you can say there is a loss for our democracy is this constant repeating of false claims to undermine the credibility of the vote and the people buying into it. that is where we have to be concerned. we have to remind people we came through this, we did it well, we will have a peaceful transfer of power. that is way we always did in this country and that is where the majority of people want to be. let me turn to another area of your expertise. he ran the epa under president george bush. we had a president elect coming in with the various sort of program when it comes to climate. give us your thoughts on what he should be looking for. the regulator is running some controversy because of the lack of environmental justice. how important is environmental justice?
christine: if this election has shown anything it has shown the divide between people who have access to voting, but also people who have been discriminated against over the history of our country. environmental justice is an enormous issue. it means what we are recognizing is there are communities because they lack the economic power for the political power to fight back. it is showing itself in the pandemic because you have people living in those areas with higher instances of asthma. because they have been subject to so much of the pollution over time. that is going to be a big part right the number one challenge is to restore people's confidence. in this instance it would be science, both for environmental issues and health. look at what has happened with the pandemic by ignoring science so early on and so consistency -- and so consistently. it is going to prove to be a big
challenge for whomever comes in. they have to try to restore the morale, which has been severely battered. a lot of what has happened is they have lost a lot of the institutional knowledge. 900 scientists have left the agency. they've been replaced to the extent of 350. many of those came from the institutions from the companies that are overseen by the agencies. bringing back the credibility and people's confidence in science and the importance of science is going to be a key factor. david: always a pleasure to have you with us. that is former new jersey governor christine todd whitman. now we will turn from the dead states to europe where the eu is announcing major new regulations proposing it for the tech industry. we turned to maria tadeo who is with the executive vice president of the european commission. right, david. two pieces of legislation just announced in the european union
that could have big repercussions for american tech. on that note i am happy to say we are joined by the european commissioner. today you have announced measures. we could see potentially breakup companies, we also see companies need to take responsibility. the digital market is the same as brick-and-mortar. do worry about your reaction from companies like facebook and amazon? >> what we worry about his competition and a fair marketplace. we have been consulted extensively, we have been talking with everyone, we had experts, member states, organizations. this is our worry. of course we are balancing things.
this is an unfortunate proposal. maria: you said this was not targeting anyone in particular and you hope you do not have to find anyone. nevertheless you could see 10% revenue. is that something you're looking to do as a measure if needed? >> i think everyone who wants to comply with legislation passed by our legislature at the parliament and the capital, why won't you want to do that? it is also good to have an incentive. the incentive of 5% or 10% of your turnover, that is a good incentive. maria: could we read that is a warning? >> in my work as competition law enforcer, i have seen a lot of practices that has been damaging for other businesses. now we say in general these are the things you must do, these are the things you should not do. it will bring investment balance into the marketplace. that is what we need. more than just
competition law enforcement. this is also beyond addressing unfair trading practices and we have seen that no matter how vigilant we are in enforcement, we need to work hand-in-hand for regulations in order to have an open market. gatekeepers,ms of companies may have too big a position in the market. you can look to potentially asking a company to disinvest and split up their business. that is something investors worry about than look at at the nuclear option. is that the nuclear option? i think we will have compliance. it is proportional, it is reasonable, it is what you would expect if you are an investor that the business you invest in is by the box. if they are not, then it is fine. repeated finds, behavioral commitments, there is the option eventually to ask for a
divestiture. i would not expect that we should go there, but at the last resort, i find it is viable -- it is justifiable. not something you're looking to do anytime soon? >> what we want is an open marketplace where businesses can find their customers. maria: you also say moving away from competition that internet controls them of the information that goes on and fake news and is not factional -- not factual. i wonder with facebook, we seen a lot of fake news when it comes to the vaccine. what are they telling you in terms of how quickly they will take it down and will they be held liable for that content? >> i think we have had quite a good corporation with a number of the platforms to make sure when people are looking for information about covid and the pandemic they get official information so this will not
regulate content. if this is a legal, you have to take it down. the other thing is you also have to tell the people behind it we have taken down your content. do you want to complain about it , just as well as it is important for us what is illegal is also taken down as a legal online. freedom of expression is also key. maria: accompany heading into christmas that has been the focus is amazon. we have seen pushback, it is not fair they're able -- they're not able to compete with the company like amazon. do sympathize with them? do you feel the hurt from small companies in europe? >> yes i do. we see no objection to amazon because what we considered polin is they useiminary the data from all of these small traders and used that to assess
what they should put in the market, which makes the rest very small compared to the small guys who have to take a risk and guess what is the next thing someone wants to buy. maria: always good to see you on bloomberg. that was the european commissioner. two big pieces of legislation announced in europe that could make a huge difference. i will say this is not happening overnight. usually this could take two years. david: by the way, it has been a long time coming. aggressive in trying to regulate tech in europe your web something similar going back in the united states -- we have something similar in united states with google and facebook. a lot going on on tech on both sides of the atlantic. thank you so very much for that terrific interview. very timely interview. we will have to be watching that as it develops because it could have ramifications for some of the big tech companies based in
the united states which is an issue because of perception it is also -- it is almost anti-american as europeans are tough regulating tech, including taxation and things like that. in the meantime, we will be coming back to united states, taking a hard look at the federal reserve meetings and how they will take into account what is going on with the covid crisis. how do they take into account what is happening with the economy and the vaccine appears to be around the corner? and we will talk with the louisville mayor, the president of the u.s. council of mayors, mr. greg fisher on what is happening with his state and his city on how mayors across the country are dealing with covid. ont is on "balance of power" bloomberg television and radio. are you frustrated with your weight and health? it's time for aerotrainer, a more effective total body fitness solution. (announcer) aerotrainer's ergodynamic design and four patented air chambers create maximum muscle activation for better results in less time,
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and radio. hospitals ins of the united states are gearing up to vaccinate their workers against covid-19. attacking dry ice to stay at frozen temperatures, shipments of pfizer vaccine began arriving at hospitals and distribution sites one day after the nation's death toll surpassed 300,000. the first 3 million shots are being for frontline health workers and eldercare patients. regulators issued a positive review of the second vaccine. david westin will have more on that coming up. the top infectious disease expert expects to be vaccinated against covid-19 as early as this week. dr. faucijust because is still seeing patients. hetold the washington post believes getting inoculated on camera could boost american's confidence that the vaccine is safe. 75% to 85% ofn
the population must be vaccinated to achieve herd immunity. for the first time mitch mcconnell is acknowledging that joe biden won the presidential election. he spoke on the senate floor this morning. sen. mcconnell: as of this morning, our country has officially a president-elect and vice president-elect. today i want to congratulate president-elect joe biden. he is no stranger to the senate. he has devoted himself to public service for many years. mark: leader mcconnell praise president trump saying it is hard to list all of the president's major wins. mcconnell refused to acknowledge biden's win until now saying president trump was entitled to pursue his claims in court. the transition is continuing despite president trump's refusal to concede. sources say mike pompeo will meet this week with his
designated successor. it could be the first face-to-face cabinet level transition contact between the outgoing and incoming administration. pompeo has been one of president trump's strongest defenders. global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am mark crumpton, this is bloomberg. david? itsd: the is beginning first meetings today and one of the big questions is what to make of an economy that is being racked by the coronavirus at the same time vaccines are being distributed. to give a sense of how the disease and vaccines are making their, we welcome drew armstrong who heads our healthcare coverage. the big news today besides continued vaccinations is the news of moderna because we have an fda staff report getting in a clean bill of health, so to
speak. drew: that's right. this staff report that the fda produces ahead of any precision -- decision on a drug or vaccine looks to be very good news, similar to pfizer in that respect when emergency use authorization, pfizer was being considered. effective.ke a 94 1% we don't have to worry about a side effect profile. it is an indication that this will get authorized for use under these emergency measures perhaps as soon as the end of this week after they meet and discuss this. david: fascinating. where do we have a sense of how fast that vaccine is going out right now? we have inoculated's being done. there are predictions about where we will be. what should we expect? drew: the government has said we will see approximately 20 million people vaccinated by the
sorry,this year -- i'm getting their first shot of this two dose shot. 330 milliond to people is not that many. we are waiting for mass availability that will come later this year. we are keeping track of this data. we are getting the initial vaccinations early and hope to begin posting that information soon. be a now this is going to slow trickle to healthcare workers and other vulnerable frontline folks or people in nursing homes that will begin to get inoculated in the coming days and weeks. david: i am not a public health person. i don't think the federal reserve is either. that there ise help coming, but it is not around the corner. it is going to be a while before we see an effect on this
disease. drew: that's right. we are still in a period that despite the wonderful news, i cannot emphasize how wonderful it is that there is a vaccine, we are in perhaps the most dangerous part of this outbreak in the entire year. that is our hitting records consistently, new cases are hitting records almost every day. this is as bad and as widespread geographically as the outbreak has been in the united states since this began and public health officials have been emphasizing that people do need to continue taking those protective measures like social distancing, mask-wearing, not assuming that just because there is a vaccine out there that things are over. the vaccine does not do any good as long as it is sitting on a shelf somewhere and not going into the arms of people. david: thank you so very much. drew armstrong heads our healthcare coverage at bloomberg. what does the fed make of this?
we turn to michael mckee, our international economics and policy correspondent. what does the fed do? they have to have some prediction of what the economy is going to do. how do they make that projection? michael: that is a very interesting question. i am sure it will one that will get posed to jay powell because they are supposed to release new economic forecast at this meeting. how do you make a forecast if you don't know the course of the virus and whether or not there would be any fiscal stimulus? the fed is in a tough position. there are three things people think they can do. their rate increases to numerical targets that way it suggests to the markets that will be lower for longer theater two is buy more stuff. the atlanta fed tracker is at 11%. they think it is going to be worse, but the economy is not in that bad shape. they could buy more the longer end.
you look at the 10 year yield and it is struggling to get above 1%. it almost got there this week. it is heading back down again. do they need to do anything to try to push down on long-term rates? those are the questions they are going to have to answer. david: this is the first meeting that they are having since steven mnuchin ask for his money back, so to speak, on the silk -- so-called 13 point rate facilities. do we hear anything about the need to re-up them? a very: that will be interesting question to put to jay powell. he has to live with them for another six weeks. if things are going badly, he might need their help and there is money in the exchange stabilization fund that secretary mnuchin could contribute. on the other hand, is this a good opportunity for him to say, we need help and we need to make sure that we have it in place ready to go if the economy turns down. the tight walk for him.
week iright now this think congress will have to decide on the fiscal stimulus. beene past jay powell has reasonable in saying we need more stimulus. given the pressure being put on the issue just today? yes, we needay say more help or the economy needs additional help. he has tried hard not to give advice to members of congress who don't not -- who do not like to get it on what they should be doing but you can expect them to make the point that the fed cannot do it by itself. all the things that the fe can do tomorrow are to push down on interest rates. they are at record lows and mortgage rates are at record lows. there is not much the fed can do to help the economy particularly with those lending programs going away. david: michael, it is always a treat to have you with us. michael mckee is our international economics and policy correspondent. coming up, we will talk with greg fischer, the mayor of
♪ this is "balance of power" on bloomberg television and radio. cities across the country have been hit really hard by the pandemic. both their healthcare systems have had a lot of pressure at the same time businesses and economies are wracked. we welcome the mayor of louisville knows the situation on the ground. he is also the president of the u.s. council of mayors. thank you for joining us. let's start with what is timely in washington which is the
proposed stimulus compromise that may go forward this week although apparently at the cost of having assistance for state and local governments. how badly does your city and cities across the country need this help? mayor fisher: good to be with you. this is a dire time not just for individuals, but for state and local governments because the pandemic has wrapped the economy, tax receipts are down, that is the fuel that comes into local government. when you put a personal face on it, think about the police officers that you depend upon, the emergency medical workers you depend on, firefighters, that is what we are talking about. not having enough money to pay those salaries so you're going to have to downsize local government to have fewer got -- fewer services. what we are seeing right now, we have two separate bills. one has a bunch of good stuff that i'm excited about for our small businesses, for extending
the eviction moratorium 30 days, it needs to go out further than that. we will have an eviction crisis on december 3 if congress does not act on that, potentially tens of millions of households without a place to stay. that needs to be extended past january 31. unemployment insurance is in the big bill. that is good. the ability to make sure the vaccine gets out. , $160 billion,l 40% going to local governments, 60% to states, that bill is going to stabilize local government services which is all the stuff people take for granted. garbage pickup, fire and the things i mentioned before. they are trying to get some liability protection on one hand from the republicans. democrats are arguing back and forth on that. what is being held is the local and state government assistance which could have a devastating impact on local government so we need congress to get that out in the next couple of days. david: being a vanguard on the
resistance of state and local assistance and limitation on liability, mitch mcconnell. he is a resident of kentucky. what doesn't he get? you talk to him and he says that money is really just going to go for some states, he typically talks about california and new york. in fact, we don't need it in state that are more reasonable like kentucky. notr fisher: the data does bear that out. every state has been hurt by the pandemic. i know that was an early talking point, it has moved past that. i think the leader understands that there needs help at the state of local government. he wants to see liability protection's, i understand that as well. that is the challenge facing right now -- facing congress right now. i hope what they don't do is when they pass this larger bill, that they declare victory and go home and leave all of the states and local governments in the
position where we cannot continue basic services that people depend on. what we learned in the great recession was by not investing in local and state governments and -- it extended the period of recovery. we don't need to make that same mistake. now is the time to think about public safety, emergency services. we don't want to jeopardize those services for the benefit of the people in the cities of america. of whative us a sense is going on in louisville and other cities with respect to the pandemic, infection from the disease, and the vaccination program which has started yesterday. mayor fisher: which is super exciting. we are proud in louisville, we are the only port. the distribution will be happening out of our city toward the eastern united states. the first people, healthcare professionals started getting inoculated yesterday. finally after nine months of
torture, there is a little light at the end of the tunnel. in louisville, like everywhere in the country, infections are continuing to increase. we are stable at a higher plateau. we have adequate healthcare capacity here. people need to get people to hold on in this period between when we have a vaccine and when infections are still out there because coronavirus is not taken a break, it is not taking a christmas holiday and it seems that as the opportunity to spread. we keep sending the basic messages, masking, distancing, so we can get through to the vaccine. mayors are going to be in charge of what i call the last inch and that is the encz between the needle and your arm to make sure that we are getting the right people in the right place in the right priority to get vaccinated and that is being done with the right messengers at the right time as well to build trust in the vaccine so people will say, i want to get this as an as i possibly can. it is that nitty-gritty local
distribution issues that mayors will be working with their health departments and the state to make sure that everybody gets vaccinated in the proper way as soon as possible so we can get to herd immunity, get our economies back open. it has been a killer to see what has happened to some of our restaurants and small businesses here that people have ingested their dreams in and they are just gone. -- invested their dreams in. it is another reason why we need fiscal stimulus. --id: it is a stellar terrible situation for many people. one of the things we have seen people disproportionately. particular lead the less fortunate and minorities. what can we do coming out of this to address some of those racial and economic injustices that have been brought to the forefront? mayor fisher: if we don't do that, we will not be as great a country as we can be. diversity is our secret sauce compared to our foreign competition. we have to make sure the vaccine comes out in an equitable manner. we have done that was testing as
well. we have put disproportionate amount of testing sites in communities of color because the infection rates are higher. throughout the country, mortality is higher in those categories. the vaccine needs to be equitably distributed as well. after we get to the healthcare workers and long-term care facilities and first responders and we go into the category of age and equity. in kentucky 91% of our guests come from long-term care facilities and people over 65. and then are black and brown committees that are disproportionately affected. you can address that with the strategy. some good news is the emphasis that we are putting in our lower investor communities on workforce development with a private-public partnerships, our work initiative with microsoft, partnering with humana, where we are intentionally upscaling folks so they can go from
low-wage jobs to career jobs in technology. while all of this is going on and people are teleworking among the are repositioning our citizens so they can put dissipate more in the digital economy. david: that is a bigger subject. i hope you will come back and have a whole summit to talk about that. thank you so much to mayor greg fischer of will. coming up, we will talk about the relationship between hong kong and mainland with the outgoing ceo of hong kong exchange, charles lee. that is next on "balance of power" on bloomberg television and radio.
never be able to go into a chinese market. there will be enough middle ground where they do intersect. it is in that intersection that hong kong has to find its most relevant role to play because shanghai will play in that role. singapore will play in that role. hong kong is the only one who can truly flow between and they need to find a way because that role is small and becoming bigger and bigger. , the american wants to be here, the chinese will be here, there will be something around the middle. when that middle is no longer growing, then hong kong needs to dig deeper. >> there was mention toward embracing chinese assets including equities, industries that have stalled given u.s. sanctions imposed by the trump administration. what are the implications of that on china's attempt to innovate into the global market
and its liberalization on the mainland? charles: if you look at that global map, invariably you will walk away with the conclusion that china is a place where yield is going to be because fundamental economic development is stronger there, the consumer economy is growing there, people are getting more wealthy, the currency is becoming stronger, and the supply chain is resilient, as strong as ever. while this decoupling will continue to put stress on the respective economies of each other, i think relatively speaking the chinese market will become increasingly more important for global investors. policymakers,nt individual political figures can always do whatever they wanted to do that could potentially
create short-term impact on the more localized target, but as i said, china's money is like water. you cannot block water. you can block it from one area, you cannot block water, all the water all the time. if you block it, it is going to slip through and go to the other side. it will find a way to get there. you cannot block it. it is not easy to push water uphill. >> what are your thoughts on complying with u.s. sanctions? charles: i think banks are global businesses. a lot of the government has developed a very intrusive, arbitrary tactics, monday want to achieve certain policy or regulatory goals. the banks have no choice and
they need to be overly compliant. is -- that brings unfair and unjust consequences to the customers. before, societies, our politics today, nothing is free. every action has cost. sometimes unfortunately you have to be the one to incur the cost. what can you do? li, outgoing ceo of hong kong exchange. join us for our second hour of balance of power on bloomberg radio. this is bloomberg.
essential businesses after christmas according to mayor bill de blasio. governor cuomo will make the final decision. the mayor says closures will be similar to what the city experienced last spring with the exception that schools will remain open. new york has seen its covid-19 infections and hospitalizations rise in recent weeks. teamdent-elect joe biden's plans to bring the u.s. closer to normal relations with cuba. bloomberg has learned they plan to reverse many of the sanctions imposed under president trump. some measures that target cuba for human rights abuses could stay in place. vladimir putin has become among the last world leaders to congratulate go biden. the russian president sent mr. biden a telegram after the electoral college finalized mr. biden's victory. president putin wrote that he was ready