♪ anna: good morning. welcome to bloomberg markets the european open. i'm anna edwards alongside matt miller. matt: good. the markets say, it's party time. stocks hit another record amid optimism around fiscal spending. european futures point to a positive open. the cash trade is just an hour away. these are your top headlines

from the bloomberg terminal. joe biden is sworn in as the 46th president of the united states. he pledges anand to what he calls an uncivil war. decision day. the ecb president says europe's recovery is on track despite repeated lockdowns as germany's virus deaths surpass 50,000. citigroup cuts bonuses for dozens of its top executives after being reprimanded by the u.s. regulators. we take a look at how the u.s. banks are doing. under an hour away from the start of cash equity trading. let's take a look at futures. we are looking at gains across the board, one third of 1% on tax features. ftse futures up 4/10 of 1%. after all closing higher yesterday. take a look at u.s. futures. the s&p yesterday closed up 1.4%.

u.s. futures are rising again today. s&p futures up one quarter of 1%. nasdaq futures up almost 0.5%. what you see on the gmm? anna: let's have a look. broadly speaking, a fairly positive session through asia. up by 8/10 of 1%. we are getting commentary coming out from the boj this morning. governor kuroda saying it's important to keep the entire yield curve low after the virus. this taps into a broader conversation about the extent to which central banks are in control of that yield curve, borrowing cost, rates. what other central banks will learn or not learn from japan and the way they have been controlling of the yield curve. that's interesting in the context of other central banks. the ecb meeting today. they have similar plans. we will return to that theme. you mentioned futures. pointing higher on the nasdaq and s&p. it was interesting to look at

what rallied the most yesterday. it was about stec -- tech stocks rather than the re-inflation play. you can seize that some of those more risk prone currencies are bouncing today. the dollar is weaker. it has been a feature in inauguration week as pound is up by 4/10 of 1%. the australian dollar making -- dollar making gains. joe biden has been sworn in as the 46 president of the united states. he pledged to reset the tone in washington and then it was down to business, heading to the white house to sign 15 executive orders to unwind trump administration policies from immigration to climate as well as enacting some of his own agenda. joining us now is our senior editor who's been watching closely. walk us through the executive orders that he signed. inauguration day is not usually about policies. we have some executive orders to take a deeper look at.

>> yeah. that's exact lira. usually politicians say that i will do insert thing here on day one. what they mean is the first couple of weeks. joe biden meant day one. we saw a flurry of executive orders, 15 of them plus additional hirings, firings that will really set a very different tone for this new administration than the last one. let me start with a couple of them here. the u.s. reengage with the world health organization. anthony fauci will speak to them. rejoining the paris climate deal. there's going to be a pause on deportations. there's a full review of u.s. immigration policy, to pause the wall. we could go on for a long time in terms of what biden is looking at here. one of the things that stands out to me is a lot of change in covid direction.

simple things like requiring masks on federal properties. just setting this different tone , that the u.s. under joe biden is going to be a very different place, at least the government will be, then where it was under president donald trump. matt: i was surprised to read on the issue of covid yesterday, a bloomberg news scoop that says his team is worried the pandemic is spiraling out of control, that we are looking at different variance that are even more transmissible. how does he plan to handle this massive issue? the overriding issue right now. dani: -- >> i think it is the overriding issue. it's good to start there with covid because biden wants to get the economy back on track but he wants to get covid back on track. getting covid on track is perhaps the key to getting the economy back on track.

it's a good place to start. even as we start seeing the vaccine rollout, the u.s. has now vaccinated millions of people in terms of their first dose of the two dose sequences. we are still seeing things like, according to johns hopkins, this was the deadliest day globally in the pandemic. since we started 2021, 13 of the 20 days, there have been more than 10,000 people dying across the world of covid-19. it is still going exceptionally strong, stronger than ever. biden has a lot of work to do in terms of vaccine. he's talked about having defense production laws invoking those to try to upscale the amount of vaccine production. this team is going to come in

talking about a different way of doing distribution to try to streamline that. there have been kings in the system that they will try to work out. this biden administration, they haven't really been big fans of operation warp speed and the trump administrations plans on logistics. the biden team has found that wanting in a lot of different ways. they are going to look to retool it very quickly on the fly as it is in progress. not as an -- not an easy task. anna: thank you very much. let's talk about what that means for markets. stocks climbed to an all-time high. what the new white house means for markets amid optimism that u.s. crystals bending will revise economic growth. joining us now is mark cudmore. it's really interesting to see the s&p, the best first day, the best inauguration day in terms of market response since 1937.

i'm sure it means very little in the long term. how long will this optimism last? as we were just discussing, the new administration will have tough choices to make as we have seen in many parts of europe and asia. tough choices to make and how it deals with the virus. some of that can restrict mobility in the economy to some extent. mark: yeah. that's a nice stat. it comes because the fears of social unrest weren't realized. therefore, that was the dominant sentiment. removing risk from the radar. we are getting an administration that is keen to take a lot of action very quickly. while some of that is covid focus, it might be a double-edged sword. some of it is around supporting the economy, whether it is the stimulus package or concerns on the student debt side. overall, this is a -- this is good. there's a reason for this move.

how long can the optimism continue? the bigger picture isn't going to change anytime soon. the bigger backdrop picture is that central banks need to chase assets. that's nine months. central banks aren't going to withdraw liquidity anytime soon. it looks optimistic for most of the year. shorter term, we will get wobbles soon. people think we might get selling around the biden presidency after he comes in. some of those issues around the covid actions might be short-term painful for the economy. we might see a slightly more difficult time for the next month or two. optimism might disappear in the short term. the bigger picture is still quite bullish and positive. matt: speaking of bullish and positive, we just got a

headline. id group in london, an online trading service company, is going to buy tasty trade for a billion dollars. tasty trade is a real financial network, the website says. a financial news network based out of chicago. i just saw that ratigan be appearing there. he's a former bloomberg anchor. from 20 years ago. this is interesting as we see the s&p had another record. your mliv question of the day, how soon will the s&p 500 rise above 4000? we are really getting to maybe frothy levels. mark: i love the freudian slip. when will the sb 5000 get about 4000. it was the question of the day.

some of the glib replies we got from clients is, this week. it could be quite soon. as i said, even though the next month or two might bring a more volatile time and more reaction, valuations are quite stretch. that makes as one herbal to a negative catalyst in the short term. in 2021, 5000 might be a realistic target. it's very difficult to make this long-term projection. there's always a chance of a black swan. many things can change. the bigger backdrop is that central bank's are supporting assets to go higher. they won't withdraw anytime soon. later on this year, we might be having that conversation if 5000 is in reach. anna: that was my first reaction. i reached for the calculator. we are only 4% away from that

level. we will be talking to you throughout the year. mark cudmore. joe biden assumes control amid flashing warning lights for the u.s. economy. we discussed the new administrations fiscal policy. what does it mean for the u.s., the global economy? we will speak to the chair of the european people's party. the conversation at 7:30 a.m. london time. this is bloomberg. ♪ so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this.

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♪ matt: welcome back to bloomberg markets. we are 45 minutes away from the start of cash trading. looking at green arrows on european futures after we hit, in the u.s., record highs again yesterday.

the u.s. economy is stalling out, signaling a need for additional support. president biden's proposed $1.9 trillion pandemic relief plan contains several pandemic palliative's and economic boosters. the top line price tag may spook centrist democrats. we are joined now by simon wells, chief european economist at hsbc. how important is this to europe? the european markets react whenever we hear about u.s. stimulus. is there a direct knock on effect? simon: of course. there's a big knock on effect. it also means that there will be a lot more [inaudible] at the end of the euro. the issue for the european

economy is that whilst we are getting this fiscal bazooka in the u.s., there's going to be no equivalent for the eu. this year for the eu, it will be more about making sure that the stuff that was introduced last year actually works effectively and as intended. and is not affected by further delays and political insight -- and fighting. this lifted european sentiment and markets. there is no direct reach across in the sense that we are probably not going to see anything equivalent for europe unless things get considerably worse in the near future. anna: good morning to you. one of the things they will be wrestling within the u.s. is how much of that one point $9 trillion stimulus package remains intact. part of that is the minimum wage. there's been a lot of learning around the minimum wage, what impact they have on various economies. janet yellen is a believer in increasing it.

she's a labor economist of some note. i was reading some commentary suggesting it's dangerous taking the lowest paid out of the jobs market. it's a perennial issue, something that has troubled many european economies. what are your thoughts on how deliverable that is, how much a difference it will make as part of the u.s. cap -- package? simon: every time there's a discussion about a minimum wage, economist bristle. it's an inflexibility added to the labor market when you go back to your textbook. it doesn't seem like a good idea. but the fact is, europe's experience is at least, it doesn't seem to cost that many jobs even in spain. you've seen huge increases in mineral wages. it doesn't seem to have affected later -- labor markets

particularly averse lee. perhaps that is to do with noncompliance. my view has always been a second seat approach. if you start to observe adverse impact on employment, reverse it or pause it. that seems to be the most sensible approach when it comes to the minimum wage. matt: i wonder what you think the economy is set up for after it a recovery. i know you focus on the european economy. i want to ask you about the u.s.. and donald trump's speech yesterday, he said, it will take off like a skyrocket on the others of this thing because of how well his administration has set it up for joe biden. it doesn't seem like he may be that far off. the economy looks to be in reasonably good shape when we get over the pandemic. do you see growth? simon: yeah.

you've got a lot of stimulus. you've got a lot of growth to catch up from what has been lost. particularly in the u.s., it's probably going to recover its pre-pandemic levels and exceed them much faster than europe is. our focus on europe. we will take a bit longer to get back to pre-pandemic levels. that's partly because there has been more lockdowns and more loss. it's partly the lack of stimulus. we've got to remember that all we are doing in many ways is getting back to where we were. if i burn my house down and then say, it will be a good year for construction, that would be true. on the other hand, it is still not growth in the sense that we aren't building hugely on where we are in 2019. growth numbers will be in norma

mislead impressive. anna: the fun and gains -- games of what counts as gdp. we will turn our attention to europe. simon wells stays with us. christine lagarde struck an upbeat note about economic growth last week. will her outlook remain the same? this is bloomberg. ♪

anna: welcome back to the european market open. we are 38 minutes away from the start of equity trading in europe this thursday morning. european futures point to the upside, picking up where we left off yesterday. u.s. futures touching new all-time highs. u.s. futures continue to point to the upside. ecb policy makers facing an economy gripped by the virus as they hold their first meeting of the here today.

christine lagarde said the central banks economic growth projections are still very clearly possible. her tone is threatened by stricter lockdown measures and a slow vaccine roll out the region. simon wells is still with us. let's start with the economic backdrop. how quickly are you having to adjust? these lockdown extensions that we are seeing in parts of europe. were they crafted with sufficient flexibility? simon: we are chasing a moving target. the ecb is chasing a moving target. i think the issue is even if q1 is going to be considerably weaker than we thought in economic terms, is that going to bask -- bounceback in q2 and q3? will we and the year roughly in the same point as we might've thought we were before this brutal third wave gripped us? the answer to that is yes.

a lot of sympathy for what christine lagarde is saying. from a policy point of view, things haven't changed that much. she's looking at china bring inflation back to target over a multiple year horizon. given that, if q1 is quite weak, how does the inflation outlook change? on top of that, the ecb was assuming that restrictions would extend out until the end of q1. you sort of batted in. clearly, things are not looking good. they've improved in the u.k. and ireland. portugal and spain particularly looking a lot worse. there's a lot to keep up with. a lot to process. from the medium-term policy outlet, i can understand what christine lagarde is saying there. matt: it doesn't seem like they

have much ammunition left or many tools to use. fiscal policy has been doing a lot of the heavy lifting in the u.s. and here in europe. i haven't seen any cash for clunkers programs yet. we saw a reduction in the vat of 3% out of the gigantic 20% tax we pay on goods. do you expect the recovery to be bumpy? it feels like there hasn't been a lot of demand pulled forward if you know what i mean. simon: yes. i think that's fair. if you look at what europe has done on the physical front, it has done a bit. the fiscal response last year was about 4.5% of gdp. by european standards, that's quite a lot. moreover, $750 billion recovery fund. groundbreaking in some ways.

the money from that isn't really going to start to flow until next year. yes, 50 billion or so may flow this year. it's really been reactive domestic fiscal policy plus a bit of pan-european response which is ramping up. from here on in, we probably don't get much more -- on tourism like greece and spain, things aren't going to normalize this year at all. it's uneven. there are differences in the way the vaccine rolled out. anna: thank you very much for joining us. simon wells.

coming up, citigroup plans to cut bonuses to top executives after the bank was reprimanded by lawmakers. this is blueberry. -- bloomberg. ♪

♪ matt: welcome back to "bloomberg markets: european open." we are just about 30 minutes away from the start of cash trading. we have green arrows after the gains we saw yesterday pulled some indexes to all new record highs. that is after the biggest wall street banks wrapped up their earnings. morgan stanley reporting yesterday wrapping up the big group. trading revenue propelled the bumper quarter, banking stocks have fallen since lenders began reporting. here with the key takeaways is

dani burger. trading was amazing at all of the big guys. dani: yes, it was. i mean, look, they had an absolute bonanza of a quarter for trading. that is not a new story for 2020. trading has been extremely strong. that's what propelled banks like morgan stanley to a record quarter. what is new is a bit of caution, perhaps why the stocks did not perform as well as you would expect from these big numbers. both morgan stanley and goldman sachs executives warned that this banner season for trading is unlikely to continue into 2021. some of the other key takeaways, reserves have started to be released. some of it is on the periphery businesses. bank of america releasing some of those bad loans to the consumer division. consumers holding up better. households are better, credit card, debit card spending is up,

delinquencies are low. overall, i think one of the really big picture things from this earnings season is that the big banks are just getting bigger. that gap between the top lenders and the smaller ones is widening. jp morgan, their assets grew by 700 billion. that is would

make the seventh biggest bank in the u.s.. we are really just seeing these absolute behemoths pull away. for what it's worth, it is starting to get notice from congress and regulators. anna: indeed. certainly, regulatory response is a theme. citi might have to reduce bonuses for its top executives. what details do we have on that? dani: this is a response to regulation. citi was reprimanded last year for not having as tight a control and their systems as they should. they are trying to show that they are serious about this. they are going to cut about a dozen of the. top executive bonuses. . the decision is still being finalized. we expect executives to learn what the compensation is going to look like in the coming months and that compensation will differ from executive to executive. just as a reminder, citi in

2020 already set about $1 billion to adjust their internal systems to get it up to regulators. we saw a new chief executive take over. this is just saying to regulators, we are serious, we are trying to change what we have with our risk controls and not get more reprimanding from them. matt: nobody wants to be reprimanded. thanks very much. dani burger talking about the big u.s. banks reporting a record trading quarter in a lot of cases. let's get the bloomberg business flash the laura wright in london. laura: unilever is aiming for a tenfold increase in the amount it spends with suppliers owned by ethnic minorities. by 20 to five, it wants to spend 2 billion euros with diverse suppliers. unilever wants to ensure that

every person on its supply chain is earning at least a living wage by 2030. united airlines wants to top its pre-pandemic profit margins by the end of 2023. it is mapping a path to recovery after last year's record loss. the carrier sees this year as a transition after the collapse in travel demand due to coronavirus. united says it is more than halfway to finding $2 billion in cost cuts. indonesian investigators are now looking into the automatic throttle of the boeing jet that crashed into the sea on january 9. there are concerns this malfunction could have led to the crew losing control. the throttle was producing more thrust in one of the two engines shortly before the plane crashed. that is your bloomberg business flash. matt, anna? anna: laura wright in london. european leaders have welcomed president joe biden's election with a sigh of relief. the administration is expected to face a tough audience on the side of the atlantic.

after four years of donald trump antagonizing the bloc, much work will be needed to restore relations. we are joined now by marta dassu , senior director of european affairs at the aspen institute. thank you very much for joining us. i wonder if you think european-u.s. relations can go back to where they were, can go back to more cooperative, happier times? or is that? going to be difficult? marta: we need a new agenda. certainly, biden will restore the role of european partners. yet, i think we need a new agenda, a much more global one. china will prove to be a very difficult test. we have seen already with the signing of the new agreement on investments with china that there was a certain malaise in the new biden administration.

matt: what do you think we are going to see in terms of trade tariffs? will they be reduced drastically over this administration? marta: the trade issue? matt: the trade tariffs. marta: i don't think so. clearly, a new dialogue will be opened. i doubt that we will be able to go back to a sort of attempt made by the obama administration . biden will go back to the buy american provisions. it will be a difficult conversation. in any case, it will be a constructive dialogue. anna: how important will europe's decisions on china be?

we heard yesterday from ursula von der leyen. in response to a question about the u.s. versus china, she said we sit with the united states, we sit with democracy. do you think europe gets to avoid having to choose between the two? marta: i mean, public opinion is. certainly so there was an interesting poll published where you see that the vast majority of the european population think that we need to remain neutral in front of this sort of cold war between the u.s. and china. this will be impossible and i think it is not the right choice to do. the fact is that europe and the u.s. tend to look at china in different ways. for the u.s., they have a role in the asia-pacific.

we have to narrow these differences. matt: what do you think about the u.s. working with the eu versus the u.s. working with the u.k.? as you point out, brussels has become a much larger economic actor than london. marta: i think of that the new -- will have a very important role. tech, big tech, taxation, regulation, etc. still, the u.k. will remain, for me, a very important partner for the u.s., especially on some specific issues, security issues, maritime operations in the asia-pacific.

my point is that boris johnson is trying to pre-position the u.k. in that way. he's playing a sort of china --, if you will, pre-positioning london in this sort of position to contain china. anna: you mentioned tech giants, you mentioned large tech businesses. is there enough common ground between the eu and united states that they can find some kind of common way forward on big technology companies? clearly, they come at this from such different positions. marta: yes. the main point is that firms, mostly american, and the u.s. tend to see it mostly on market terms and the eu much more on privacy terms. and still, the difference is that narrowing down. there is a common concern. matt: thanks so much for joining us. really appreciate having your

insight. marta dassu is the senior director of european affairs at the aspen institute. coming up, eu leaders meet today in a bid to confront the raging coronavirus pandemic, amid a rising death toll and more stringent lockdowns. we will have that story next. this is boom or. ♪ -- this is bloomberg. ♪

♪\ >> at least from our side, the production, the quality checks and the supply distribution capability, it's fit for us to play a part in meeting that objective. so far, nothing we see discourages us. matt: moderna's chair saying that he sees nothing to prevent the group from playing its role in joe biden's vaccine drive.

he wants to vaccinate another 100 million people in the first 100 days of office. vaccines offer a light at the end of the tunnel. in europe, that light seems to have been dimming recently. eu leaders will meet today to tackle the bloc's coordinated response amid vaccine delays and fears of new variants. german deaths have risen above 50,000 in total. maria tadeo is here with us. we are heading record highs everywhere because the nature of the disease. how does europe plan to accelerate its crisis response in terms of the vaccine? maria: right, matt. if you look at the numbers this morning, they are grim pretty much across europe. a lot of this was expected. this is happening right after the christmas holiday, were a lot of restrictions were lifted. in terms of the call that european leaders will have today

in a videoconference, there will be a renewed impetus on getting more vaccines approved and getting them done quickly. at this point, the lead vaccine is pfizer. they have had big distribution issues this week. this is all to do with an upgrade in their distribution capabilities that should make it better over the long-term. but obviously, over the short-term, not going to be that effective. secondly, we know that there is a number of countries that will say there needs to be more coordination when it comes to potential restrictions. angela merkel, who is also extending that lockdown to mid february, she also called into more broader checks between countries here in belgium. that may mean that non-essential travel will be banned again. there is a lot of flashbacks to march of last year, with a lot of these measures -- where a lot of these measures were introduced to contain the virus. a lot of this is back in the picture.

the third wave is pretty much across europe and has taken hold in countries like germany. it is much worse than it was in the second and first wave. anna: indeed, lots to focus on on both sides of the atlantic when it comes to the vaccine rollout. also high on the agenda, in terms of eu politics, is the relationship between the eu and the u.s. and new biden administration. i know you have been catching up with various politicians on this subject. what can we expect? maria: look, it's interesting. yesterday, we spoke to the head of the european commission. the head of the commission was very keen to talk about joe biden and what that meant. i thought it was very interesting in particular when she said that this is a return of a rules-based democracy. when you follow the rules, it's easy to get around the table and talk about trade, talk about tech, climate. they were really hopeful. there's another question which i put to her.

is china going to be a problem when it comes to the u.s. and in the european union, especially pegged to that investment deal recently approved by brussels? she flat out told me know, we need to make a distinction -- told me no, we need to make a distinction. let's have a look. >> we, as the european union, we know exactly on what side of the table we are sitting on. we are sitting on the side of the democracies, next to our american friends. and indeed, china is a systemic rival when it comes to the way that they look at the individual, and human rights, and this is a very clear point here that we join forces with our american friends concerning china. but if we look at our competitor china, so the access to the market, for example, well, americans have an economic

agreement, the phase one agreement with china. china has, with the asian area, an economic agreement, but also with other democracies like australia, canada, switzerland. therefore, i think it is self explaining that the european union negotiated a new economic investment agreement because it is a matter for our investors do have a level playing field and have access to the chinese market. maria: that was the head of the european commission, ursula von der leyen, speaking to us in an interview yesterday. the language was really interesting. she said we know very well who are friends are, we are always standing with our allies in the united states. china is a rival to the european union but think about this as a phase one deal. this is about protecting our companies and giving them access, nothing else. anna: really interesting the way she put that deal on investments, she puts it in the same bracket, as part of the

same conversation as the u.s. trade deal, the phase one trade deal. there interesting conversation. thanks for bringing it to us. let's get a bloomberg first word news update. laura: president joe biden used his inaugural address to call on america to end its uncivil war. he said unity was the key to tackling the challenge of the pandemic and rescuing the u.s. economy. the inauguration was a stripped back event under heavy scrutiny, but it did retain some of the usual, including lady gaga singing the national anthem. the u.k. has suffered its worst day of the pandemic so far. yesterday, more than 1800 daily deaths were announced, with the chief scientific advisor warning that some hospitals now look like a war zone. more than 4.6 million people in the u.k. have had their first doses of the vaccine. china is sanctioning former secretary of state mike pompeo and other trump administration officials.

beijing announced the move but just as president joe biden was being inaugurated. the last -- the white house says the last sanctions are unproductive. saying they are and attempt to play up partisan politics. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. matt, anna? matt: all right, laura, thanks very much. laura wright in london. we are going to bring you the stocks to watch, including renewable energy companies after president joe biden signed a series of executive orders focused on combating climate change. this is bloomberg. ♪

♪ anna: welcome back to "bloomberg markets: european open." nine minutes to go until the

start of cash equities trading. futures point to the upside after new record highs for u.s. equities yesterday. unilever is aiming for a tenfold increase in the amount it spends with companies owned by ethnic minorities. >> we want to spend a minimum of 2 billion euros annually with suppliers that are owned and managed by people from underrepresented groups, so women, people with disabilities, the lgbtq community and people of color. >> when it comes to the supply chain, what kinds of ingredients do you think will be the biggest contributors when it comes to those that are underrepresented? alan: both the commitments on fair living wage and 2 billion spent are across the entire value chain.

it will literally encompass 100% of our ingredients. there is one area in particular that we are concerned about, choose the incomes of small rural farmers. many of them are an emerging markets. >> what do you make right now as the ceo of a massive come a multinational company, what do you make of the geopolitical situation happening and this change of hand we see in the u.s.? >> as a multinational with 62% of sales coming from countries outside of western europe and north america, we are really used to volatile and uncertain geopolitics. that is one of our strengths actually, managing through those types of situations. as far as your question about the united states, i mentioned earlier that we have to get to grips with climate change and social inequality. the new administration, by

making that an explicit priority, to get back to dealing with climate change and emissions to addressing some of the social consequences of this crisis. that is something that is very in line with our agenda. matt: that was unilever's ceo, alan jope, talking with annmarie hordern. let's get to our stocks to watch. we will kick it off with the trading company ig group. annmarie: i know this is one of your favorite stories of the day. they are an online trading company buying tasty trade for $1 million. they are an online financial -- $1 billion. they are an online financial network. they are paying partially in cash. that is also going to be funded by 150 million pounds. matt: i think it is only intended -- i think they say --

do they not say that it is intended to be entertainment in order to avoid regulation? if they were operating financial advice, they would probably have to be more stringently regulated. annmarie: may be, but they say they are giving investment strategies and entertainment. they say they have both of them. matt: i see. annmarie: on that note, in terms of government actions, wind power companies, solar companies, ev also likely on the move up after biden signing the u.s. back into the paris climate agreement. we saw asian companies in this sector also do well today. matt, anna? anna: thanks very much. dani burger with the stocks to watch. funny to watch. ferragamo also in focus. we will be back with the european market open for this thursday morning next. this is bloomberg. ♪

anna: welcome back to the european market open. here are your headlines. joe biden is sworn in as a 46 president. he pledges an end to what he calls a uncivil war. europe's recovery is on track despite repeated lockdown. germany's death passed 50,000. after being reprimanded by u.s. relators. -- regulators. matt: higher across the board, looking in europe or the u.s. you see gains, even after record highs on many of these indexes. not the ftse, dax futures, ftse

futures, all up .5%. as european markets open up, let's take a look at the macro movers screen. you can see the equity indexes in the left-hand column, ftse the first to open. little change there, you can see the ibex popping up, .5%. you see these moving higher as we watch them. the ftse now up .3%, .4%. the next coming out -- the dax coming out. this coming after joe biden was sworn in. in his inaugural speech, he promised to reset the tone in washington. then it was back to business heading to the white house to sign executive orders to

undermine president trump policies as well as enacting his own agenda. joining us now kathleen. it is funny to watch the inauguration, i thought it was fantastic, all about unity and bring in the country back together. representing both sides of the aisle, then he goes back to the white house and undoes everything he -- everything president trump did. what is really about? >> i think there is kind of a question of substance when it comes to policy and also style and how the business was conducted. i think in many ways, joe biden, yesterday in his speech was speaking to the latter. i don't think he was saying that he endorses the policies of donald trump's administration, or that he certainly made no bones before hand of the fact

that he was going to do those executive orders. on one hand it is in keeping with the types of issues that he campaigned on, it would be unrealistic to expect that he -- or inaccurate to expect that he would not try to roll back or take the country in a different direction policy wise from the way donald trump did. i think part of your point, matt, there is going to be the healing breaching this discourse that has affected washington to a severe degree. it is going to be easier said than done. when he start looking at policy specifics, that is what we are seeing. there still is a lot of disagreement and daylight between the two parties. anna: and whether he has the ability talked about to walk across the aisle. that he really can manage to govern for all and at the same

time deliver the more radical elements of his agenda. we will see how that develops. executive actions, he got down to business right away. what you think is most relevant? back to paris, it was not a surprise, but perhaps for many in europe, comforting to see the confirmation that the u.s. is really changing tacked on climate. kathleen: absolutely. that is what i was going to .2, the rejoining of the pairs of court. his doing that on day one is intended to send a very strong signal, not so much domestically, but internationally that the era of donald trump who has this america first policy, very inward looking in his policy, did not trust multilateral organizations, really limited the u.s. role.

i think joe biden is sending a strong signal globally here with rejoining paris. i think that is meant to try to ease concerns overseas and try to send the signal that the trump is over. matt: kathleen, thank you so much for joining us. our u.s. editor kathleen hunter talking about the 46 president of the united states. joining us now is morgane delledonne global x director of research. let me ask you about, what kind of changes joe biden's policies are going to make in markets? how can investors take advantage -- for example, we saw people getting into clean energy, as he gets into executive orders? morgane: we are seeing it as a bullish signal, clean technology, for noble energy,

but also electrical and battery technology behind it. another sector that will benefit from the new administration in the united states is the physical and digital infrastructure and broadband across the country. i think some mistakes and a bid for relations. anna: i want to ask you about where you see those flows, particularly around climates, ev, electric vehicles clearly a big scene, have you seen investors more willing to get involved with companies playing pat -- lane pat -- playing catch-up? or in traditional automakers and the supplies that are doing well on ep's? morgane: i think it is why it is so successful, it is pure play. investors want to have these

exposures to the companies that they will benefit most from the realization of these trends that are happening. one of them, you just mentioned anna, electrical vehicles, we are seeing investors increasing appetite for the strategies. when you think about electrical vehicles, they account for 50%, but we do expect it to rise up to 90% by 2030. now, it works very well with this low interest rate environment. matt: what are the headwinds you expect? donald trump, when he was talking about his accomplishments yesterday at the air force base, he said he was more proud of the deregulation

then the tax cuts. a lot of the steps are as we speak being reversed by joe biden, of course, he is going to bring a lot of regulation back. he is going to, at least, start the discussion on hiking taxes and there could be pressure on bonuses as well as dividends payments. morgane: we do see continuous support from monetary policy in the united states and other countries, and also the physical stimulus joe biden unveiled recently is giving a boost to equities in a growth over value. and assets. we do not see a dramatic change in market conditions and we do think that these environments are still positive for equities, at least as long as the stimulus

is there. we do not see any reversal in the current trends. anna: i want to ask you about growth versus value. i was looking at a chart about lack of earnings in tech businesses and the weight that that does not matter. losing that company saw in 2020, do you expect that to continue? morgane: when you look at the valuations and metrics in tech stocks, it can look expensive, but actually what we look at and focused on and believe it is the right way to do is look at the future growth sales. when you deflate the price by the expected sale growth, they do value in line with the broader markets. matt: when you think of etf investing, just thinking about this because it has grown so

much, initially we thought this was a way to avoid managers, you can buy baskets and track, but really you can manage your portfolio with etf. morgane: that is true, that the growth in the european market for instance is almost like the assets have doubled in the past years. we expect them to double or triple in the next 3-4 years. we are positive on the european entech markets. especially with the growth of the magic investing. the magic investing is really a specialized approach. i would not say it is active, but it does offer investors and imaginative way to invest in this trend that is hard to capture with the framework and additional sectors.

it is an easy way and single trade to get exposure to these trends. anna: thank you. stay with us. morgane delledonne global x director of research stays with us on the program. coming up, and upbeat note about economic growth last week, but is the ecb holds its first policy meeting, will the outlook remain the same? we will discuss it next. this is bloomberg. ♪

matt: welcome back to bloomberg markets, this is that european open. we are 13 minutes into the session and looking at a 1% gain or automakers. banks are up almost 1% as well, boosting stocks. the broader european benchmark by about two thirds of 1%. looking at decent gains here. let's look at the booze this -- at the bloomberg business flash. laura: dunces of its top -- top executives. it will vary widely in some of the final decisions have not been made. the cuts are due to the banks being regulated. no comment from citigroup. unilever is aiming for a tenfold increase in the amount it spends with suppliers owned by ethnic minorities.

by 2025, it wants to spend 2 billion euros, just under 7%, with diverse suppliers. unilever wants to ensure that every person on its supply chain is earning at least a living wage by 2030. united airlines wants to top its pre-pandemic profit margins by the end of 2023. it is mapping a path to recovery after last year's record loss. the carrier sees this year as a transition after the collapse in travel demand due to coronavirus. united says it is more than halfway to finding $2 billion in cost cuts. that is the business flash. anna: ecb policy makers are facing an economy crypt by violence as a whole difference meeting. the president said the banks projections are still possible. it is threatened by lockdowns and a slow vaccine rollout across the region.

morgane delledonne, global x director of research is still with us. for someone who focuses on etf's, i wonder how you look at that ecb. one does wonder about the support provided in the economy today. i wonder what relevance you get around the amount of support that ecb is going to come forward with. what are you looking for? morgane: we don't expect much from the new information, but definitely a confirmation that ecb will continue to provide support across the region, especially in market conditions and finance conditions and all that european countries. we have seen monetary policies in europe and elsewhere with increased interest for risky assets in the emerging markets. the same in china. investors will look for yield

and the emerging market base. matt: is it risky? how far out of the risk spectrum are you going here? how important is the dollar move to these yields? morgane: first of all, yes. china has outperformed the u.s. last year and we are seeing some sectors are performing better than others, especially in the ip space, customer and health care in china. due to the strict demand that the emerging markets look at rising. we do think that they have done some in the rise in these markets and we are positive in the sectors in china. looking at the dollar now, we do expect monetary in those markets and in the u.s. to continue to

do well. the dollar will be positive for emerging markets. anna: we will listen for the commentary that is pushing back against stronger euro elements. your strategy, your focus with investors at this point, we talked about the clean energy push, growth versus value, also coming through in 2020 in some strengths has been a focus on entertainment and homes. i wonder how clients have been looking at etf's to capitalize on that trend? morgane: since we launched in mid-december we are seeing a tremendous increase in games, that has been accelerated with the pandemic and the stay-at-home economy. we saw the dollars spent on entertainment shifting towards

video games and e-sports. this industry has been growing fast last year and is expected to continue to rise this year, reaching 100 and $84 billion -- $184 billion. almost half the people worldwide are now playing video games. we do think these trends, not to revert after the pandemic, we do see a continuation of these trends. especially now that it is widening in terms of consumer base. matt: i will confirm that playing video games is an addictive -- once you start you cannot stop. what are your conviction traits here as we start to reopen the economy?

how soon do you expect that to happen? is that a summer thing, or do we wait to the fall? morgane: it all depends on the vaccines which drives a lot of the uncertainty in terms of how quickly the recovery will happen. at the moment, we do not see it happening before the second half of the year at least. all the stay-at-home themes will still be relevant in the first half of the year. once the economy reopens, we are seeing some things around cloud computing, but also other technologies enabling flexibility at work that will continue to succeed. especially because companies will want more flexibility going forward for an -- unforeseen events.

they stay positive behind be able to have people working at home. we do see a continuation of these trends in the reopening of the economy. anna: interesting stuff. interesting you say that half the global population lays video games. i can confirm that half of this editing team place. games. producers say a similar consensus as well. thank you so much for joining us. director of research at global x management will be continuing our conversation on the radio. you will find it however you listen to the radio. don't miss our coverage of the meeting throughout the day. the decision is at 1245:00, london time. coming up on the program, eu leaders meet today in a bid to confront the raging pandemic amid a rising death and mark lockdowns. we have more -- death toll and

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>> at least on our side, the production, the quality check, and the supply capability exists in playing our part in meeting the objective. nothing we see discharges as.

matt: that was moderna's chairman telling bloomberg that he sees nothing from preventing the group from playing the role in joe biden's admissions vaccine drive -- ambitious vaccine drive. a light at the end of the tunnel, but in europe that light seems to be dimming a bit. leaders meet today to be tackling the response of vaccine delays and fears of new variants. this morning, german dax have risen above 50,000 for the first time. our reporter in brussels, maria tadeo, is here with more on the pandemic and the plans to accelerate the response. maria: this is coming in a videoconference from european leaders. a day where we have seen things jumping to a record, we have seen german debt topping -- deaths topping 50,000.

there is also talk of new restrictions to come. and that neverland's, a curfew. also banning all non-essential travel into the country. a lot will be focused on distribution, how to accelerate that. this has been a problematic week for the pfizer vaccine, still the main one when it comes to the european union. they had issues when it came to delivery, they are upgrading, but there has been a shortfall on the distributions. there will be a very clear call to the regulator to act faster to get more vaccines approved quickly so more people can get vaccinated. anna: you have been keeping up with the latest european response to the development in washington, what have you been hearing? maria: we spoke to the head of the commissioners along with three other reporters who were very keen to say that biden is a friend to europe that she sees

potential for deals to come on trade, tech, digital tech. i asked, will china be a problem? this is what she had to say. >> we know exactly on what side of the table we are sitting. we are sitting on the side of the democracies, next to our american friends. indeed, china is a systemic rival -- maria: that was the head of the commissioner. she pointed out the defense -- the investment deal was about business and protecting her company, not about politics with china. anna: thank you very much. the brussels reporter, maria tadeo with the latest development. coming up, a new era begins with president biden sworn in. and new alliances into geopolitics. coming up next. this is bloomberg. ♪

matt: welcome back to bloomberg markets. this is the european open. we are 30 minutes in and we're looking at gains across the board. take a look at these stoxx 600 and x -- index, it is up. if you were to grunt -- run a group range of return screen, you would see the gainers in crude -- gainers include travel and leisure, at the top auto parts are rising today as well as technology, banks, telecom, and -- i had this yesterday, personal-care drug stores and grocery stores also doing well today.

let's get the bloomberg first word news. laura: the u.k. has suffered its worst day of the pandemic so far. yesterday, more than 1800 daily deaths were announced, with the chief scientific advisor warning that some hospitals now look like a war zone. more than 4.6 million people in the u.k. have had their first doses of the vaccine. china is sanctioning former secretary of state mike pompeo and other trump administration officials. beijing announced the move just as president joe biden was being inaugurated. the white house says the last-minute sanctions are unproductive, saying they are an attempt to play up america's partisan politics. the bank of japan is seeing a stronger rebound than expected. once the economy starts to recover it is predicting weaker growth at the end of the fiscal year, but that means stronger growth later on. it seems the expansion at the .9% up .3%. they kept the policy unchanged.

global news, 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. anna: thank you. joe biden has been sworn in as the 46 president of the united states. in his inaugural speech he planned to reset the tone in washington. then, it was down to business heading to the white house to sign executive orders from immigration to climate. as well as enacting some of his own agenda. let's talk about where this leaves international license. professional of international relations and professor at london school of economics and political science. it will be domestic focused i'm sure, tackling the coronavirus in the early days of his administration, there was a message in there for the international community talking about doing things and more cooperative spirit.

i suppose the big change might be in terms of tone and the level of cooperation internationally. peter: as you point out, his political agenda is going to be domestic, he has to get the pandemic under control, he has to get americans vaccinated. but he will be focusing on the international side and he made that very clear yesterday in the inaugural address where he said that america is going to be reengaged and it is going to work once again with its allies. for a variety of reasons, i think he is likely to focus on america's european allies in particular. one way to do this is to dial in tensions over trade and find common ground on climate change and the pandemic. he did it yesterday with respect to climate and the pandemic with those actions. matt: when you think of the positive contributions that president trump made -- or at

least when he was listing off his successes at the air force base, one of those is getting our nato allies to contribute more to the defense bill. do you think biden -- another one is middle east peace agreements, do think that biden is going to hold the ground that trump took, rather than giving it back? is he going to work on the shoulders of some of the things that president trump did? peter: absolutely. i think he has already made that clear, not only with respect to america's allies, but with america's competitors he said he is not going to immediately remove the tariffs on china. he is going to take three months to study the question and then come up with a policy. with her spec middle east, -- with respect to the middle east, he will work with agreements that have been set, with respect

to america's allies and the european allies, i think the tone is going to be very different. he wants coordination on a number of fronts with america's allies and in particular, i think, he wants a coordinated position with china. to get that, he's going to have to give something towards europeans and i think that while i don't think it means he is going to completely reverse things on defense policy, the expectation that the europeans pay more for defense, the tone is very much going to change. anna: if you look at some of the key appointments he has made, what is the appointment about something like her about whether the u.s. can sign that common ground on policy? peter: i think the main point of her appointment into signal to the chinese that biden intends

to be very tough going forward on negotiations over trade and investment. more generally, it is a message to the american people that come up whatever he does in the area of trade is going to have americans back that this is going to be a different approach than the predecessors. he is not going to jump right back in and move forward with the trends, with the trade agreement with the europeans that does not pay dividends for average americans. i think he gets that and partly the appointment is to signal that to americans. not only to america's adversaries or trade adversaries and allies. matt: yesterday we heard a lot about treating people with

respect and i think that is a message a lot of people have been waiting for for a lot of time in terms of their treatment. pro-democracy protesters, you still need a little bit of strength there, does biden have that? enough to deal with such an incredibly strong growing economy? peter: we are talking about the inaugural address i would step back and say, the first thing joe biden met, the test was could he meet that and he met it . he offered stirring words over unity over division for americans.

he also offered what harry truman used to call, plain talk about the challenges facing america and what it would take to overcome them. with respect to the specific question you asked, will the united states begin to push human rights again internationally? yes. i think what biden made clear yesterday is that he understands that dealing with human rights in dealing with democracy begins at home. the united states needs to take care of business at home while it calls for -- focuses attention on what the chinese are doing in the province or at the same time in hong kong. anna: thank you so much for joining us. matt: i thought it was -- it was a great point that the professor made and yesterday president biden said, not lead by the

power -- by the example of power, but by the power of example. anna: absolutely. thank you very much professor peter trubowitz. coming up on the program, in the middle of the crisis, the credit fund manages a market beating 55% return. dani burger is here, she will be speaking with david allen. that is next. this is bloomberg. ♪

anna: welcome back to the european market open. 42 midst -- minutes into the trading. let's get a bloomberg business flash. laura: citigroup is casting bonuses for dozen of its executive. it will vary widely in some of the final decisions have not been made. the cuts are doing to the bank being reprimanded last year by regulators for failing to maintain proper management. no, from citigroup. unilever is aiming for a tenfold increase in the amount it spends on clients of ethic my nordion -- ethnic minority. unilever also wants to ensure

that every person on its supply chain is earning at least a living wage 52030. -- wage by 2030. mapping a recovery after last year's record loss, the carrier sees this year as -- that is her bloomberg business flash. matt: the first wave of covid-19 infections shook bond markets back in march. at the same time, private and public credit manager at albacore capital saw it outperformed. now it plans to close the fund posted that market beating

performance. let's get over to dani burger. dani: joining me is the ceo of that group, albacore capital group. david allen, think you so much for joining us. the dislocation, the one that pointed this big return. what has been the key to outperformance in a year that was very difficult for credit managers? david: thank you for having me on the show today. i'm glad to be here. it is appropriate to quote a president today, the fourth president eisenhower who said, plans are worthless but planning is everything. we went into the crisis in 2019 knowing there would be some voluntary markets that are unstable, being well-positioned to go into 2020 was the key. in march, being active bond pickers which is our fundamental

trait at albacore. dani: is that a strategy that you think is going to continue to work this year as well? david: in terms of the pandemic and investing in a crisis, i think the crisis at this point looks like there is a light at the end of the tunnel with vaccines rolling out. if you went back into 2019, no one would have predicted a global pandemic being the crisis of 2020. i have been investing since the 1980's, every crisis is a bit different. i have been through the process crisis, telecom crisis, sovereign debt crisis, etc. we expect again, volatility to continue. that strategy may come back. we think we are at the end of the opportunity, but going forward, markets are inherently volatile. dani: how does that inform your view on some of the more risky bonds that you would have looked at in march? things like cruises, retailers,

are those still areas where you think there are opportunities, or is that largely gone with vaccines coming to the floor? david: that is a great question. believe the way to make money, whether equity markets or bond markets, train investors. we saw an opportunity in march for two types of companies. one, cruises, which were terrific credits before the crisis, very good balance sheets, in march, saw a lot of issuance and the equity capital markets and debt capital markets for cruise lines. they raised over $40 billion in capital which provided a runway for them to get to the crisis. some sectors like retail, were you told me the gdp would be down like it was last year, many investors would be fearful of retail. look no further than amazon, both retailers, both very different outcomes. you do see.

different winners and losers. it is about finding the winners among different sectors. dani: that certainly takes a lot of foresight to distinguish between those two ones, between the winners and the losers. on that sort of brisk your side, where are the areas that you stay away from as we head into the rest of 2021? david: one thing we do not like, binary industries, pharmaceutical industries that are testing the new vaccine. the other, very active in credit is energy. we have been running screenings since i ran that european credit business pension plan in 2010, almost 11 years doing this. we found that one of the risky sectors we believe is energy, does not score well on that basis. the basic problem with energy is, it is hard to pick oil prices.

oil prices last year went from $80 at the top, to at one point negative. we do not invest in energy. the other sectors, i think could be difficult, people should not confuse covid with disruption. if you look at a dividend, it was going to go out of business anyway, i think the pandemic accelerated it. department stores, some restaurants, will continue to be difficult sectors. dani: a lot of these ones that we are speaking of, more in the public bonds, but you also mentioned private also, how does that factor in with rewards to you? david: relative value. if you asked me in march of 2020, was there a private transaction that we would prefer versus buying a bond at city five port $.75. it depends on the work environment.

from march to about june, we were active in the public market, but i have seen shows you have done about private markets where the private credit market does offer a premium for liquidity, for the managers. overlong peers of time, there is some value there. and pockets of time, there is not. today, given where the public markets are, at the rich and. we have pitted -- pivoted the business. we are reducing some of the buss on the public site. dani: thank you so much. that is all we have time for. david allen, ceo and cio of albacore capita group. anna: thank you very much. doesn't it tell you a lot about the nature of global finance that you can have a conversation in san paolo about diffidence? how soon will the s&p 500 rise

about 4000. ? we will put that question to laura wright. this is bloomberg. ♪

>> the new administration, by making that an exclusive priority to get back to dealing with child -- climate change an admission.

addressing some of the social consequences of this crisis, that is something that is very in line with our agenda. anna: that was the unilever ceo. joining us now, laura cooper, strategist. we see european markets up, continuing where we left off. who do we see benefiting most from the blue wave? inflationary trades have been built in, clearly climate trade, as we talked about with our etf guest earlier. -- laura: certainly it sets the stage for the clean energy revolution. it is a record year for stocks exposed to climate change. i think we are seeing a handoff to 2021 that can sustain

momentum. triple digit gains in some stocks last year, this is a nascent industry. we look at electric, solar, these are so -- set to benefit from stimulus that are going to be directed under bidens clean energy directive. we are going to see those trends as the greenway takes hold. -- green wave takes hold. matt: what is going to happen -- the inauguration was yesterday, i think everyone was blown away by lada gaga's rendition of the star-spangled banner, probably the best since jimi hendrix. mitch mcconnell is not passing the stemless bill, no way, no how -- stimulus bill, no wait, no how. are we going to see the markets

come down from 4000? laura: given the good news that is priced into markets, the momentum that we are seeing in the rally, not just those trades continuing to grind higher, but we are also seeing tech join in as well. clearly, if we do see some stumbles on the stimulus front, we are going to see pushback from republicans. yes, markets are going to have to price those expectations. the timing of that seems to be seen. we can see that narrative shipped back to vaccination rollouts. if those accelerate on the back of a biden push, that could pin those hopes. at this point, it is hard to see an obvious catalyst to stop the momentum in markets, but clearly, stimulus hurdle is the major one ahead. anna: thank you very much. laura cooper with the latest on the markets.

matt, i thought lady gaga was remarkable, i thought the poetry was moving. it was a relief lady gaga made it down the stairs without falling over. matt: she had a giant dress. even though, i am obviously incredibly manly, i was in tears by the time she was done with the star-spangled banner. then, the pledge of allegiance just push me over the edge. amanda, such an inspiring young woman, such an incredible feature or hurt. it was great to see her. anna: we are all in favor of men who can cry on this program. matt and i will be heading to radio this morning. this is bloomberg. ♪

pres. biden: i do solemnly swear that i will faithfully execute the office of president of the united states. and will, to the best of my ability preserve, protect, and defend the constitution of the united states. >> so help you god? pres. biden: