[Music] 2 p.m in new york it is 7 p.m here in London at live from blue mugs world Headquarters This is blue moon markets to close i'm Caroline hyde i'm romain bostic And i'm kaylee lyons taylor ricks is off Today And the bounce back is on u.s stocks Halting the longest slump since September The s p 500 rebounding from a four-day Slide every industry group higher on the Stimulus hopes Meanwhile there's more help on the way Moderna's vaccine found safe And effective versus covert 19 in the U.s ahead of thursday's meeting on its Emergency authorization Building hope on day two of pfizer shots Being administered across the country We hear from one hospital system about The rollout So far and a last-minute rush for relief House speaker nancy pelosi reaching out To senate majority leader mitch Mcconnell for a meeting on stimulus That says leader mcconnell recognizes Joe biden as president-elect for the First time All that and so much more coming up yeah Caroline a lot of confidence really Coming back into this market today i Guess you can tie some of that
Uh to the prospects for fiscal stimulus Finally making its way Through congress it appears you see the S p 500 here up one percent the russell 2000 once again you're out performer on The day of more than two percent and Materials though Interesting move here we talk a lot About how commodities are a really good Barometer of current Sentiment about economic conditions well Materials the stocks there that gives You a little bit of a clue into the Sentiment Looking out a little bit forward here so You're seeing not only uh sort of the Asphalt makers like vulcan The chemical companies packaging stocks On fire today Keep an eye on that sector as we move Forward because that could be an Interesting barometer of course we're Also keeping an eye On treasuries you're looking at 10-year Treasury futures right now down again For a second day ahead of that fed Announcement Tomorrow afternoon and wow the dollar The trend line on the dollar continues To be lower Below that 1127 mark remember that was Your low back in 2018. Right now the technicals seem to suggest That we could see further dollar
Weakness kaylee All right romaine well let's talk a Little bit more about fixed income Because treasury yields are moving Higher today to the tune of around two Basis points On the 10-year note right now sitting Around 91 92 basis points but still Stubbornly below That one percent threshold we last Breached in march time and again yields Have tried to break to that level and Time and again They have retreated the question is Whether that changes this week Depending on what we're going to hear Out of the fed tomorrow and since there Are just a handful of trading days left In 2020 i do want to look at what's Expected for the treasury market Into next year there is broad bearish Consensus most strategists seeing that Yields Will move higher over the next 12 months I would point out though As what we're looking at here they Basically always think that the average Forecast In every year for the past decade has Been that yields will move higher And as we know that hasn't always Happened caroline What's the definition of insanity again Kaylee lyons
Great thank you so much let's focus in Now on where yields are going let's get To it with the outlook for fist income With nick marutsus he is of course head Of global bonds over at janice henderson Who joins us from newport beach California Nick is always great to get your voice On the show where do you think yields Are going Look i don't think they're going to move Materially higher Positive news around equity markets Obviously the vaccine distribution Is is a huge is a huge uh But ultimately at longer term bond Yields are going to stay relevant In permanent employment As a result of this crisis we're still Not out of the woods Entirely even though the vaccine is Happening you could see it bouncing In in yield and what the fed does this Week And with the vaccine news but i think That you're going to stay Low for longer nick i mean the market Isn't expecting obviously any change in Benchmark rates they are they do seem to Be expecting Some sort of update i guess on uh these Treasury purchases and whether that Duration gets extended I mean our market participants right now
May be a little too presumptuous that The fed is going to do anything at this Stage That's exactly romanian it will likely Be disappointed to some extent if if Doesn't issue some form of forward Guidance you know powell It's in his nature to try to out dub the Doves and he's done that previously Through communication and other programs They put in place but I think it's okay for them to disappoint The market Going on you have markets at all-time Highs They've continued their purchasing Program like i said the distribution of The vaccine is happening Uh save that bullet for what is Heightened Georgia election that's coming up the First weekend which is going to be A telltale sign as to what the fiscal Stimulus plan is going to look like And if it doesn't go the market's way Then that's when the fed can look to act But Ultimately i think that they will and You will see some form of guidance or Yield curve control because it's really Not in the best interest To move higher it is okay for them to Push Higher over a period of time slowly
Because ultimately higher yields is a Good thing for the economy Um can't really it's not really good for The market right now Nick you mentioned yield curve control There as a possible option do you think The fed would actually Formally adopt that you know what kaylie I don't think they will Um though they need to be very Particular because the market tends to Digest Every single work every single change in Words That they might issue some form afford For but you will hear a lot more Rhetoric come out of their mouths When it comes about where the yield is Which is why Firm believers that the yield curve is Going to steep and materially Be standing behind there and they can Actually keep yells at yield Pretty aggressively not to mention the Fact that and what previously is that You know globally u.s yields they They're pretty attractive on a relative Basis compared to other sovereign Markets and Ultimately when when things there is a Flight to quality speed to treasuries I was gonna go exactly there when you Look at global bonds as in in your Uh name tag i'm interested in where else
Does look in any way attractive where Else are you putting your money if You're thinking that there's a cap on Yields in the u.s and Perhaps it's the most attractive game in Town how much further are you going down The food chain into corporate into high Yield So that's that's the really that's the Billion dollar question caroline and There's no doubt that our opportunity Market is shrinking there's fewer and Fewer compelling Opportunities it's really difficult to Call spreads wide at this point The caution against investigating this In this late in In the game when it comes to where we Are in terms of how much Things have appreciated is to move down The capital structure too aggressively Because The further you move down the capital Structure higher yield or emerging Market debt doesn't mean that it's not Attractive but it doesn't provide those Facts that traditional fiction really Does What we're trying to do is we're looking Globally in unique markets or uni Australia canada new zealand parts of Asia acts japan Particularly the us dollar denial assets And we're trying to take advantage of
The New issue market where possible because That's ultimately where you're getting Some some decent value we're also Focusing on the front end Of of interest rate because we believe That has the highest Ratio in terms of central banks not Interest rates For a significant period of time you Take out the volume of the back end Whether or not yields go to one one and A half or even move 25 basis points it largely doesn't Matter for us because we're focused The front ends so so what's the reaction Function at the front end of the curve Here nick i mean we're looking at a Two-year A couple of sessions ago that was uh Retesting those all-time lows is this Purely a function right now of whatever Policy change the fed makes Or is there something more going on in The front end of the curve that we Should be paying attention to So romaine i don't think there's much Much more going on than we already know In the front end i think people are Trying to look for yield where they can And let's let's face it you know let is Really not that exciting particularly When equity markets are Up two percent in a in a particular day
Right Um it's hard to make a k or for a Decent amount of yield in that space but For us it becomes Again more about where is this risk that You can take in the fixed Income market and that that continues to Be the front end because Like i said earlier the bar financial Banks to be trades is Right now the fed has said they're not Going to be hiking 2020 notoriously been Uh we're promising and deliver if you Look back to the crisis back in They waited seven years started hiking Interest rates Yeah a year they they promised Four and they only did one following Year they promised another And they only did one so our ex is going To be on For much much longer than what people Think because they're going to have to Unwind a lot of the stimulus Make sure that we're out of the woods Entirely nick always a pleasure To get you on this program get your Thoughts on thanks nick we're going to Have to leave it there that's nick Maroosa's head of global bonds over At janice henderson now coming up a lot More on this program The next stamp of approval the modern
Vaccine found safe in an fda report We're going to talk about how that Second Shot could boost the country's Immunization efforts Plus a negative outlook we're going to Speak to emily rams of moody's we're Going to talk about the long-term Impact of the economy on state and local Governments taylor's gone but muni Moment persists And let it snow let it snow let it snow If you're living in the northeast Brace for the biggest snowfall that We've seen so far this season Could have a big impact for anybody up And down the i-95 corridor all that more Coming up next from new york and london This is bloomberg Progress continues to be made on the Covet 19 vaccine front moderna in all Likelihood Set to become the second vaccine Candidate approved by the u.s After an fda staff report released this Morning found it's safe And effective and of course pfizer has Already begun to roll out its vaccine This week but the fact of the matter is It could be months before the entire Enough of the country is vaccinated to Achieve Herd immunity and in the meantime the Virus is continuing to rage you can see
Cases climbing here on gtv go and Hospitalization's climbing as well From new york to california three of Five regions in california are now under Mandatory lockdown and here in new york Mayor bill de blasio saying today We can expect a shutdown of all Essential businesses Soon after christmas so things could get A whole lot worse before they get better Roommate All right for more let's bring in dr dan Roth he's the chief clinical officer Over at trinity health To health system that operates 93 Hospitals in 22 states as well As 120 continuing care locations such as Home care hospice Senior living facilities that type of Thing dr roth joining us today From livonia michigan beautiful livonia So dr roth let's start off here with the General idea of What's being approved and how it was Being approved generally the fda process Is pretty long You go through a process to try to Determine not only whether the drug Works But whether it's also safe based on the Speed of which this made it through the System How confident are you in both of those Two metrics
Uh thanks roman and it's great being With you today um we're very confident We think that the process that the fda And the cdc has followed really Struck the great balance between having A treatment and a vaccine that's Available as quickly as possible given The Pace and the impact of the pandemic as Well as making sure it's safe As we know they waited 60 days after at Least half of the Participants had been in the process and So that's almost 50 000 people between The two studies Making sure that it was safe and the Data that we've seen now both from Pfizer and then starting today with Moderna has shown an effectiveness of The vaccines that was really In excess of our expectations we did not Expect to see almost 90 Or greater than 90 effectiveness so on Both accounts we're very comfortable That these vaccines are Our great next step and are safe Dr roth from a distribution perspective You're on the ground you're seeing how This is fizer is being Disseminated the vaccine through your Hospitals and senior care facilities You're going to look at moderna which Arguably is a little bit easier as it Needs less freezing temperatures but
From your perspective compared to other Vaccines how difficult is this to get Into people's arms Um it's slightly more difficult but it's Not undoable we've been preparing for This for months we've known about the Ultracold chain requirements for Pfizer and we've been preparing for that And i think the the work that pfizer has Done and we've been in contact With them as well as um the fda and the Cdc has made that uh Made that process that we're going to be Able to navigate very well And make this available not just for our Own healthcare workers but for the Community so we're We're prepared for that i think we can Make it work it's not as hard as it as It seems Um we just have to be thoughtful about The process and uh and i think We're very prepared for that obviously The modern vaccine does not have that Same degree of requirement that will Make it a little bit easier But i think we're prepared and we'll Make sure that we can get vaccines to People because this is the beginning of The end of the pandemic and that's the Most important thing Dr roth i mentioned at the top of this Segment new york and california where The issue is
Hospitalization capacity that is really On the brink How is trinity health doing in terms of Capacity where do your hospitals stand Right now So it's a it's a difficult time there's No doubt about that both across the Country and for trinity health and The irony right of having a facing This highest surge yet so we are at a Peak of the number of hospitalized Patients with covid That we've seen yet over the in the last Couple weeks we've hit that peak and That has created a significant strain For us and in particular our care Providers And so we're managing it but i will Admit it is a significant strain Especially for caregivers who have been Going at this for nine months And so it does have an impact on our Ability to provide services in some Locations outside of covid which we Don't want to do Because we know that has a broader Health impact as well but we work hard To be able to maintain critical services For everybody So it but it is not lost on us that While we're trying to roll out the Vaccine We are facing the highest impact of Covet in all of our communities
Across the country um and across the We have more than 2 000 people in our Hospitals with coba today So yes so the impact is uh by many Measures right now Doctors surpassing what we saw uh back In spring in the spring march april Uh or so with regards to the preparation And the abilities Of health care providers uh to deal with The influx of patients and More importantly uh to keep the death Rate down Uh how much better or worse are we now Than we were back in march So there are a number of things which Are much better today compared to the Spring And that has made it doable because we Are as you point out at a much higher Level of Hospitalized patients impacted by cova Today than we were even in In april but we know that um that the Treatments that have come to the fore Over the course of the last few months As well as our learning and healthcare Is learning about how to better care for Patients with covenanting have made a Significant impact We've seen immortality rates decreased By more than half On patients who are admitted to the Hospital and our time in the hospital
Has also been cut by almost half as well So that has made that burden more doable And obviously most importantly Better outcomes for people and that's Not to minimize the impact on On on these patients and their families Particularly the 3 000 people a day who Are passing But we are we are in a much better you Being able to vaccinate your own staff As quickly as you'd wish Well i think you know we would love to Have um as many people vaccinated as Quickly as possible it was heartwarming I will admit on a personal basis To see you know our nurses er nurses and And physicians And icu nurses being vaccinated in a Couple of our markets yesterday Um and so it's heartwarming for us and It's been a long time coming and we know That's the beginning of the end We obviously want to get this as quickly As possible we know the process will Take a little bit of time this week and Over the course of the next few weeks In order for us to get to everybody but We we are ready to go and uh and started Even yesterday dr roth would you Advocate for Locking regions back down as an interim Measure until more people can be Vaccinated I think at this point in time some of
That varies my mark but i think what we Have to do is Do what we know works and what we know Works is Masking physical distancing avoiding Gatherings both gatherings In in small and large settings and Using hand hygiene we know that those Work we have to do them as a country we Have to do them together and Consistently We know if we can do that we think we Can really put a dent in the number of Cases Especially with the holidays coming up That becomes a critically important part So i don't know that we have a position On locking down as much as we want to Make sure that everybody is doing those Things that we know work Especially wearing masks We want to thank you so much for taking Some time with us when you've got so Much else on your plate Wonderful to hear some of the Heartwarming stories from dr dan Roth of course trinity health chief Clinical officer there We have breaking news for you of course The ongoing stimulus will they won't They debate over in congress We currently understand the mitch Mcconnell course majority leader of the Center as it stands
Is again suggesting putting off state Aid and liability but he says that they Won't Leave for the year without a relief Package At the moment the markets have been Trading higher on the hopes of the Stimulus deal coming as soon As today mr bloomberg Time now for a quick check on the latest Business splash headlines Credit suisse groups signaled that Business continued a mixed performance In the fourth quarter The investment bank is doing well with Higher revenue than it was a year ago But credit suisse warns that write-downs And legal provisions will weigh On earnings it's the latest sign that The u.s economy is hitting a snag A growing percentage of american Homeowners are looking to delay Mortgage payments in the first week of December the proportion of mortgage Borrowers that started seeking Forbearance relief rose to its highest Level since august That's according to the mortgage bankers Association and that could eventually Lead to more foreclosures And the new york area is bracing for What could be the worst december Snowstorm in a decade The national weather service says a foot
Or more of snow could blanket the Mid-atlantic and northeast starting Wednesday the storm threatens to snarl Road rail and air traffic Just as trucks carrying pfizer's covet 19 vaccine from michigan fan out Nationwide And carriers are busy with holiday Package the new york city Department of sanitation has declared a Snow alert and suspended outdoor dining On city street Starting at 2 p.m new york time on Wednesday And guys i want to talk more about the Snow storm a because it really gets me In the holiday spirit i love snow But also because we have a really cool Function to highlight on the bloomberg Terminal this is map weather go and it Can show you The probability of snow in the northeast Region tomorrow it is above 90 percent we could get 12 to 18 inches Of snow Here in new york and as i just discussed Maybe a snow day's not that exciting With everyone working for home but it Really could Impact some of the critical Transportation infrastructure both in Terms of vaccine And everybody trying to get out their Christmas presents caroline
That's such a good point i'm sad Personally to be missing the snow but i Wish that It doesn't impede the vaccine in any way Shape or form meanwhile I'm shining a light on probably what Would be one of the most talked about Stories if we weren't in the middle of a Global pandemic and it's This unbelievable rampage of well cyber Hacks that are going on in the u.s at The moment we understand that at least 25 Entities have been victims thus far but There could be up to 18 000 so says solarwinds which is of Course Well the software maker that's seen Itself the vulnerable Element here that seems to have been Spreading this particular attack We understand it's the russians that are Behind it uh an elite group of russians We understand far i first found it but Keep an eye out romaine you know Caroline there's a fed meeting tomorrow Kaylee there's a fed meeting tomorrow as Well let's hope they don't get snowed in Down there at the eckles building you Take a look at this next chart here you Get some sense here of this idea this Negative rate environment Everybody was betting on it basically You take a look at that chart and you
See that box that's highlighted there You're talking about contracts going out To december 2021 March 2022 and june 2022 so 12 months 15 and 18 months back in the summer Everyone said Negative rates were going to see you saw Those trades start to get pulled back Reassessed in august And completely unwound in september you See where we're at now Nobody's expecting a negative rate Environment but they are expecting snow [Music] This is blue moon markets the close i'm Caroline hyde i'm romaine bostick and I'm kaylee lyons a little after 2 30 Here in new york let's get you caught up Here right now On settlement of nymex crude futures Flirting at one point here With almost 48 dollars a barrel of Course there was some actually some Negative reports here about demand in 2021 Coming out of the iea but uh some of the Optimism here surrounding the vaccine Providing a little bit of a boost uh Gold actually getting the bid here today Of course people looking at that Additional stimulus of course the Idea of lower for longer rates in a Weaker dollar and that continues that Bid
Into gold lumber price is interesting we Hit about 845 A record on intraday on glumber futures On this day something that's pretty rare You don't see this time of year but Right now uh one trader that bloomberg News Spoke to basically said that uh lumber Buyers are basically living Hand-to-mouth at this point caroline Want to keep a close eye on meanwhile we Go from commodities remain Over the world of credit markets because Without a doubt sure yields are pushing A bit higher today but interest rates Ultra low right now credit investors Everywhere anxious to put their money to Work For more on well what to expect in the New year let's bring in bloomberg shinee Bassett with one of the biggest voices In the industry Thank you caroline and joining me now Exclusively is carlyle's mark jenkins The global head of credit for the 53 Billion Credit business at carlisle mark thank You for joining us Thank you for having me it sure does Seem that investors Are impatient they're anxious to get Money to work what are you telling them Well i think what we're we're Recognizing today is and we spoke back
In august is that we you know typically Go through You know a phase of like survival In credit when when there's a Dislocation to recovery To uh prospering and right now you know We've really experienced a lot of those In a very compressed period of time so What we're telling people now is you Know for for credits that Have actually prospered in this Environment and there have been A number of them in the health care and Tech space You know we're looking to just invest in Them in regular way credits Uh as going concerns there's a lot of Opportunities where companies are Looking to transition if you will To look to the end of this pandemic Which thankfully with the vaccine seems To be coming Near to an end and how we can help those Companies get there and then finally Um you know a lot of people are talking About the distress cycle which we're not Seeing just yet but we're watching very Closely so it's really Looking at all three of those strategies In tandem so your colleague jason thomas Had written this report recently and it Really points to the spike in the high Yield default rates It makes the point that we're at
Historically high levels of indebtedness Of corporate america how are some of These issues concerning you Well i think you know as jason wrote in That paper um That we've got a spike obviously in Leverage in companies I think we also with the low interest Rates are actually at Debt service levels that are actually Comparable to you know sort of more Prosperous times if you will but i think That the main concern is Is that we've now got companies who've Solved their liquidity issue And the question is are they actually Solvents so ie is their going concern Value going to you know outweigh The amount of debt indebtedness that They have and in particular when we get To the other side of this pandemic Will those capital structures support That new world of growth That we're going to experience for those Companies and that's i think that's Really The focus of that paper is to say we've Dampened Probably for the next you know 12 24 Months we've dampened that default cycle But we've really pushed that issue out Well if we push that issue out there's a Lot of talk about the zombification of Companies
How are you thinking about that issue Yeah i mean for us It's it's uh you know it's it's an Opportunity to some extent But also it's it's also a threat so when We're investing in transitional Companies companies that we believe When they get to the other end when they Actually you know when we come out of This pandemic and there is a more Sustained recovery That those capital structures are Actually going to work and that's really Transitional capital Helping companies get to the other side Um with an appropriate capital structure So Those are there's a lot of those Opportunities because some of those Companies just don't have access to the Regular way capital markets And then secondly it's identifying Following And figuring out how to get involved in These companies that are Going to have to go through some sort of Restructuring and so really Again it's it's it's pursuing two Strategies in tandem On behalf of our investors and that's Enhanced by the fact that Today really understanding the Enterprise value as Business models are going to change as
We come out of this pandemic Is really leveraging the platform of a Broader firm to help understand those Business model changes that we're seeing In our broader portfolio today as a Credit investor another question that is Underpinning the market is inflation What are your inflation expectations Well you know i think i'm a credit Investor i don't i'm not a good macro Investor so i won't i won't put my point Of view out there i think What i would say in terms of inflation What what i would worry about as we come Out of this Pandemic and through into a recovery is There's a lot of pent-up demand right There's been so much demand destruction In certain areas And also there's issues around the globe With global Trade agreements or lack thereof and the Type of disruptions that's caused in Supply chain so i believe that as we Come out of this I'm more concerned about the bottlenecks And inflationary pressure in certain Areas that affect certain industries as Opposed to macro inflation But certainly you know over a long Period of time would we expect some Inflation Sure um but you know i'm more focused on How it affects the underwriting of
Credit In specific industries well speaking of Specific industries you pointed to the Idea that we might start to see some More distress How does that start and when does that Start to play out You know the fed has really lifted a lot Of tides this year and i think that idea Of distress is something a lot of people Are looking to get to work in yeah well I mean If you think about what's happened so Far really two-thirds of the defaults And Sort of restructurings that have Happened have really occurred in retail And energy i'm sure you've heard that Before And those were sectors that were having Troubles before the pandemic so it just Accelerated that To your point a lot of companies have Just been you know given that Liquidity bridge to some point in time And really it's you know it's going to Impact companies that can't adopt uh to This new Environment where if you look at our Port you know anybody's portfolio right Now what you've noticed is the winners Have been the ones who've been able to Adapt technology To interact with consumers and
Businesses in a more Effective efficient way and there's Going to be plenty of companies that Aren't going to adapt to that and i Think they're going to have capital Structures that will require Restructuring uh and and those that's Where we're going to focus So it's early next year finally the time For you to start Distress investing a bit more i you know I think it's still early i mean what What's happened is is the ability to Enter like when you distress invest I mean you have to enter into that Either through that a company either Going through a process Or are us buying their securities in the Secondary market And the challenge right now is because Everybody's been provided with liquidity Um you know prices are high to buy in The secondary point one And number two people have that Liquidity line to keep them going so i i Actually think You know we'll start you know i don't Want to predict but it just doesn't feel Like You know we're going to see a rush of Distress in 2021. Mark thank you so much for joining us That was mark jenkins carlisle's global Head of
Credit romain back to you all right Thanks shanael coming up here next on This program Carvana the shares there at one point Today at a record high we're going to Talk about why the online used car Seller Getting a vote of confidence from some Analysts out there it's our stock of the Hour coming up next This is bloomberg [Music] Let's talk deals now because earlier This year goldman sachs appointed new Co-heads To lead the bank's m a unit stefan Feldgoes Who has been with the bank since the Late 90s sat down with bloomberg senior Deals reporter ed hammond To discuss what the activity he's seeing As a very unusual year wraps up take a Listen You know 2020 was certainly what i'll Call a barbell year the first Third of the year was quite active up Until the pandemic in the pandemic we Certainly hit What i call an air pocket but as you say Coming out of the pandemic it's been An extraordinary level of m a at or at The highest levels we have seen Now some of that was pent up demand but As you look at the fundamental drivers
Of m A so equity markets at significant Levels Debt markets and the banks being very Willing to lend those fundamental Drivers Remain in place so as you look towards 2021 uh you feel that the Support or the or the fundamental drives Of mna remain very strong And now david solomon this morning gave An interview saying he was concerned About the euphoria in the market i think Specifically referring to the The ipo market are you similarly anxious About the Just the level of activity we're seeing In the m a market at the moment So i certainly wouldn't characterize the M a markets as euphoric i think What i'd say is that the fundamental Drivers in addition to what we talked About before about companies thinking Differently or more broadly about risk And where m a should happen are really The fundamental drivers you know i won't Comment on the On the ipo markets but again when you Look at the fundamental drivers of m A ceo confidence equity markets debt Markets Uh risk in in a different in a different Light a different lens all of those Remain
I'd say it's fundamental drivers that Continue to drive the m a market And in terms of fundamental drivers on The side of the seller Uh obviously a lot of companies have Seen their own valuations crushed And maybe recover less than some of the The potential acquirers out there What does that mean in terms of just the Dynamics of some of these conversations Are we going to see more unsolicited Activity more Pure hostile activity or indeed more Activity driven by the sort of activist Investor campaigns That we got so used to in the years Maybe 15 to 80. So i think a couple of things i would Say you certainly see more stock deals So a seller who may not feel that their Valuation has achieved what they would Like would be willing to take equity in A transaction and participate in the Synergies in the upside You also see significant activity from Activists During the pandemic activists backed off To a degree as it wasn't Uh as active a period but certainly Now and going forward activists will Continue to push and we see them being Very active in many many different Markets In terms of the advisory part of deals
Which obviously is where you spent most Of your career Talk to me about how that's changed During the pandemic You know from the pure physical changes Of not actually being in the room with a Lot of the people making the decisions To actually the way that the deals are Being played out and and Perhaps around the timeline of getting Done So the timeline hasn't really been Extended in m a i think what we found During the pandemic is that we were Impressed By the amount of transactions the number Of transactions that were actually able To be done All or nearly virtually all from a Virtual perspective Zoom and other methods of interaction Were very effective And of course m a is about relationships But we were found that that was able to Be carried on during the pandemic Through virtual interactions and so you Certainly saw a lot of activity that Carried forward Regardless of the pandemic do you think It will ever return To the sort of pre-pandemic world of Bankers being on airplanes all the time Flying to and from Clients uh i think it'll be somewhere in
Between Client meetings seeing clients seeing People will still be a very important Part of mna that being said certain Things Like data rooms which were electronic Certain things like management Presentations can be done very Effectively Over virtual networks but still there Will certainly be a return Of getting on an airplane and going to See people and people getting together All right co-head of global m a over at Goldman sachs speaking a little bit Earlier With ed hammond our deals report let's Turn from that now to our stock of the Hour we're talking about carvana today Getting the vote of confidence Over at choice which is adding it to its Performance In a year when city dwellers find Reasons to buy used cars Carvana let's just get to the shares Right now up three percent on the day Dave wilson joining us right now talking About a stock dave that's Almost tripled already this year what's Going on how much i are going to go That's the real question it isn't just About this here because the stock market Doubled last year too It's up more than 17 fold since the
Company went public back in april 2017. You know that they sell used cars Through these dealerships that they call Car vending machines this year you know They they shift it and Allow people to buy cars entirely online Sell them too you get them delivered you Get a seven day return policy And so even though the companies had This history of losses And was not expecting an adjusted profit Until uh the third quarter of 2022 According to our data I mean this the company's just taking Off 40 billion plus market value And so now you have truest securities uh Now that khan he's an analyst who focus On On the e-commerce business coming in Giving the stock a buy rating And setting a 12-month share price Estimate of 314 That's the highest projection among 21 Analysts in the bloomberg Survey you know and among other things He figures they'll be able to expand Their vehicle selection uh increase Their coverage geographically Deliver faster you know people getting More familiar with a brand i mean carbon Is television advertising certainly a Part of that You know he also notes the auto uh Dealership business kind of a fragmented
Market i mean the top 100 dealers with Less than 10 percent Of the total market share and relatively Few vehicles sold online Less than one percent back in 2018 so There's a lot of room for carvana to Grow here Even to the point where he figures it's An 85 billion dollar revenue company In ten years yeah everyone out there Buying cars carvana our stock of the Hour Dave wilson bringing us that of course Those shares up three percent here On the day coming up next here on this Program lawmakers in washington Negotiating another stimulus package That could be passed before year but Year end but state and local governments They fear rising costs and weakening Revenue growth into early 2021 this is The moment i've been waiting for Taylor's gone mewni moment with romaine And caroline Emily raines of moody's investor service Joining us after the break this is Bloomberg [Music] All right time now for our top call to Look at some of the movers on the back Of analyst recommendations first up take A look at marriott Upgraded dubai over at citigroup Alongside its peers hilton and host
Hostels City turning bullish on the broader Lodge lodging sector And says the space stands at the Beginning of a multi-year recovery share Is up two and a half percent Next up let's take a look at redfin Right now trading at a record high the Price target being raised to a street Eye 73 over at piper the analyst says real Estate tailwinds Could continue into 2021 given the Favorable demographics And those economic conditions see the Shares here up five percent on the day Finally let's take a look at tenant Healthcare getting the upgrade today to Buy over a deutsche bank street high 69 dollar price target the analysts Citing the recent purchase of surge Center development This is an efficient use of capital According to the analysts over there Saying they should be immediately Accredited to earning shares here Up six percent on the day and kelly Those are some of our top calls All right remain well time for the Moment you've been waiting for the muni Moment A bipartisan group of lawmakers Outlining their proposal for a 908 Billion dollar stimulus package
But the proposal is split into two parts With a separate bill for aid to state And local governments Joining us now to discuss is emily raims She's vice president and senior credit Officer with moody's Investor service emily it's great to Have you it's unclear at this point if This will even pass but the one that Seems most likely to pass is the core Bill That doesn't include that state and Local aid if that doesn't happen What kind of additional pressure could That put on state and local budgets Sure and kaylee thanks so much for Having me you know we are not Expecting another round of federal Stimulus in Our ratings on state and local Governments our outlook for state and Local governments we're not expecting it You know they got A one big round already um what we have Seen historically is that the federal Government Has supported state and local Governments in downturn so it is Possible they will pass another Round we're not expecting at this time i Will say that there are a number of State and local governments the one The areas that rely a lot on travel and Tourism those areas
That are hoping for it Certainly hoping for it when do we start To see the lagged effect because it Doesn't all happen Right at once uh sure you know we're Seeing Um a lot of state and local governments That are having a very Challenging economic environment Business conditions But a number of them in fact most of Them their budgets are okay and their Revenues are doing okay And that's because they've gotten that First round of federal assistance the Cares act that really helped them Most of them budgeted very Conservatively for the current fiscal Year they're in And most of them came into this Situation very well prepared they had You know a lot of reserves a lot built Up so they're doing okay for now Depending on how long this pandemic Lasts how long the recession lasts We could start to see that revenues Start to really take a hit That would most likely be in the sort of Most uh The areas that are most hit by this Pandemic so that would be sales taxes Hotel taxes things like that that have Been the most hit As well as areas like public transit
That Have not yet returned areas like Personal income taxes and property taxes Have held up well so far and would Probably continue to do so let's zero on One state and we can maybe talk some Examples here real quick emily we'll Focus On my home state of illinois obviously a Bit of a sort of budgetary basket case Prior to covet 19 But it seems like they've actually Weathered the storm relatively well Given some of the obligations Particularly On the pension side that they're still Grappling with Sure illinois is our lowest rated state And as you said it's due to that Outsized pension obligation You know they are looking for some some Kind of help some kind of assistance Through this so that they can afford Those obligations in the future On november 3rd we saw voters in the State rejected A constitutional amendment that would Have allowed a progressive income tax Which would have provided billions of Dollars the state could have used Um so the failure of that constitutional Amendment means it's probably more Likely that the state might borrow Money for some of its obligations on the
Other hand Uh states have a lot of powers they can Increase other taxes They could do spending cuts and those Things there are things that could be Done without voter approval So the ability to do those things and The likelihood that they will do those Things does kind of mitigate the impact Emily great to have you on emily raims Senior credit officer vice president Over At moody's all right let's get a quick Check of where we stand here on the Broader market stocks right now Pretty much hovering around the highs of The day you're looking at s p 500 Reaching for a one percent gain you're Actually seeing the russell 2000 your Small caps your mid caps as well Up more than two percent here on the day Commodities also getting a boost Uh looking at that rebound in crude wti Right now trading Near 48 dollars a barrel this is Bloomberg [Music] We are counting you down to the close Just one hour left in trading i'm Caroline high and look at this stocks Right now Near their highs of the day i'm romaine Bostic and i'm kaylee lyons taylor riggs Is
Off today and at the highs of the day Romaine and no surprise when you look Beneath the surface you can see A risk on tone almost everything is Green 450 roughly of the stocks in the s P 500 are higher on the day and every Single sector is As well what's notable leading the Charge is those cyclical trades that Were under the most pressure In yesterday's session you have energy Materials financials higher take a look At that 100 Of the members in those sectors are in The green on the day and i want to point Out utilities as well That index heading for its best day Since november 2nd and i think that has A lot to do with the snow We're about to get romaine yeah and take A look at some of the individual movers Today eli lilly And prevail the two big m a names of the Day eli lilly buy and prevail You see prevail up 82 on the day but That moving eli lilly A lot of people really excited about This it gives eli lilly a huge entry Into that gene therapy space potentially Not only for the drug that prevail is Developing but really for a broader Array of treatments that could come out Of this A lot of positive news there plug power
Up here on reports of it having a deal With walmart a distribution deal with Walmart giving the shares as much as 13 and nike moving higher on the day at One point it was actually at a record High don't forget we get nike earnings Later this weekend i point out nike Today because it's actually The biggest jump in volume today other Than snowflake but the volume here right Now on nike at least as far as large cap Stocks go Double the average here so right now You're looking at investors positioning Ahead of those earnings which actually Gonna come this week caroline On friday believe it or not we'll see How they stack up against adidas You say adidas i say adidas you say nike I say nike meanwhile I'm going to be looking at what's Happening in terms of the stimulus Everyone is desperately waiting on Tender hooks as to whether will they Won't make what size of a deal whether It'll go to the state and local Municipalities But notably people are starting to worry In the market that it might not be big Enough Notably we were speaking of course Bloomberg tv just yesterday with the Head of lazard's advisory business that Being peter allzeg
He worries about the size and scope of Any sort of deal take a listen We are bumping up against a real Constraint eviction Uh rules are scheduled to expire at the End of december Parts of the additional unemployment Benefits that were provided as part of The cares act scheduled to expire at the End of december State and local governments facing 15 Declines in revenue For their next fiscal year there will be More pain coming Unless we act aggressively Businesses hurting people hurting many Hoping that those paychecks and any sort Of support can come through Quickly certainly to support the economy Remain to support the markets too Yeah let's talk a little bit more about That and bring in george bori he's had a Fixed income strategy and portfolio Specialist At wells fargo asset management george Great to have you here On this day let's first talk about the Short-term news of the day the fed of Course Are going to make an announcement Tomorrow the expectations a bit mixed Here in the market any sense here That what the fed either does or what They telegraph tomorrow
Could have any sort of ramifications Right now for how traders are positioned Yeah sure good good afternoon romaine Thanks for having me on the show You know as you point out if you look at The fixed income markets the bond market We're basically in a pause mode waiting For the fed and the fed has this going To be an important meeting an important Announcement And we think it could really break one Of three ways they could try and Preserve their optionality which means They don't give the market any new Information And they basically just sort of state Where we are and say that they're Willing to react depending on how the Economy evolves That probably leads to higher interest Rates it's the fed Not guiding interest rates lower not Providing additional stimulus not Providing Additional clarity as it relates the Trajectory of yields in that scenario Yields go higher the Other alternative is they sort of commit Themselves Or or become very clear about their Forward Forward expectations where do they Expect to be 12 and 24 months out now in that
Scenario that probably keeps yields Pretty stable but the curve could Probably steepen a bit there as the Front end stays anchored But the long end maybe kind of continues To rise a bit And then the last is and i think this is Where a lot of folks are kind of hanging Their hat and Hoping for some clarity that the fed Provides guidance with respect to yield Curve control We're not we don't believe that they're Going to be explicit about your Yield curve control they may include That as a potential Strategy we don't think we're going to Get a lot of clarity there But if they were to provide that clarity That would actually cause yields to come Down and perhaps the curve to even Flatten so This is going to set the stage for the At least the beginning of next year and Perhaps a large percentage of next year We think your your best bet right now is That is that the fed just basically Extends out some of that forward Guidance And tries to preserve as much Optionality as possible So within all those scenarios within the Optionality that the fed wants to buy Itself
What's the optionality for an investor Do you stay committed to sovereign debt Do you go Lower down with the higher yielding Sorts of parts of the market I think there's a very good chance of a Cyclical recovery or we think there's a Very good chance for cyclical recovery We're talking about that earlier on the Show And if you just look at the equity Market obviously the equity market's Doing great Cyclical names are doing quite well We're seeing a recovery in the oil Sector Uh in fixed income it's it's harder to Play just a pure Cyclical recovery you have really kind Of two two components one is just a Simple fundamental strategy And here we're strongly advocating that Clients be willing to go down in in Credit rate and go down into high yield Go down into the lower rating parts of The credit markets And really trying to position yourself For that cyclical recovery Energy as a sector is is largely Represented In the high-yield market and so you can Almost make a soft bet on energy simply By buying high yield And we would certainly advocate that we
Think energy is going to do well next Year The other is just simply the the shape Of the yield curve And as we've seen up until very recently The yield curve has been steepening So we've been trying to pull that bias Down the yield curve Try and stay invested towards the front End of the curve Letting longer term yields kind of shake Out we want to be Kind of neutral duration sort of sort of Overall so That would be kind of our highest Conviction view if you will you know Short duration short maturity high yield That lower Maturity profile but a lower rating a Much higher yield Say three and a half maybe as high as Four percent looks pretty good Going into next year especially if we Get that cyclical recovery That kind of helps the fundamentals of Those companies kind of improve as we go Into next year Well george continuing to look ahead in To next year This year we have seen record corporate Issuance volume something like 32 Percent above the previous record From back in 2017. does that appetite That demand continue
We think that demand remains pretty Robust for for For fixed income in general i although Yields are likely to go up modestly They're they're still likely to stay low Uh by historical standards a 10-year Yield at let's say one and a half Percent Uh which is where we think we could get To by at the end of next year Is still very very low uh by historical Standards The other is that if we look at the the Us versus the rest of the world Rough right now the us makes up 90 Percent of all Positive yielding debt in the world That's a Tremendous statistic and that you know Anyone Other investors from around the world Continue to come into the us So we see a good reason why why Investors are going to continue to stick With high yield it's still the corner of The portfolio the anchor the cornerstone It's a big part of your portfolio the Incremental yield Is absolutely critical and we don't see Clients or investors giving giving up On that and and and i think that's going To be sort of a really strong theme now As it relates to The amount of money that that companies
Need to issue it's probably going to Drop down to a more Kind of what we would call typical year Where you're maybe at a trillion or 1.2 Trillion For say investment grade debt maybe About 200 billion for high yield So let's just call it maybe 1.5 trillion Which is materially lower than this year So it may show Some degree of of a technical squeeze But it's much more in line with what We've seen over the prior Three four five years before 2020. The supply demand debate george boris Sticking we thank you Very much indeed head of fixed income Strategy and portfolio specialists At wells fargo asset management great to Have some thoughts with you today now Coming up china heads for a recovery Where the country is on pace for strong Growth next year Even though well it still has a long way To go meanwhile a sharp blade After a huge week of ipos we look at the Company Who's going public virus back another One we speak with ceo and co-founder rob Eisenhall On what impacted his decision and Keep wishing my online dollar store wish Is losing momentum just as it falls for An ipo all that and so much more coming
Up this is bloomberg [Music] All right welcome back to a bloomberg Market to close 46 minutes counting you Down to the close let's take a look at Where stocks stand right now you're Looking at the s p 500 Right near the highs of the day the Russell 2000 small caps outperforming Seventh day in the past 10 sessions keep An eye on that cyclical trade Dollar weakness you flip up the board You take a look at some of the Individual movers Apple shares on fire today up four Percent biggest one day move that we've Seen For two months now is that report out of Nikkei asia about production Seem to be relatively bullish on iphone Production you're seeing the suppliers Corvo Cirrus logic skyworks all of them all Moving higher amd not Apple supplier but moving higher at a Record high right now Larger bullish sentiment out there right Now on the ship sector Particularly for companies that make Those graphics chips used in video games Caroline So on the heartbeat across the markets We're keeping an eye Also on what charles lee is doing as
He's leaving office after 10 years as Chief executive of hong kong exchanges And clearing He spoke with bloomberg's sophie Cameroudin About the future of hong kong Relationship with the mainland take a Listen The chinese market will never be like The international market in its entirety The international market will never be Able to suit into a chinese market but There will be enough You know middle ground where they do Intersect It is in that intersection that hong Kong have to find It's the most relevant role to play Because shanghai will play in that role Singapore will play in their role other People will play narrow but hong kong is The only one who can truly Go in between and need to find a way Because that role initially is small Becoming bigger and bigger And then eventually stabilize so that The american was to be here the chinese Will be here there will be something in The middle Then when that middle size is no longer Growing Then hong kong just need to go deeper Now there was momentum towards embracing Chinese
Assets we've seen index compilers for Example including Those equities on their indices that has Stalled somewhat given the u.s sanctions Imposed By the trump administration what are the Implications Of that on china's attempts to integrate Into the global markets And its liberalization on the mainland As well as hong kong's role in this If you look at that global map Invariably you will walk away with the Conclusion That china is the place where yield Is going to where it's going to be Because fundamental economic development Is stronger there the consumer class is Growing there The people are getting more wealthy The currency is becoming stronger and Their supply chain is as resilient As strong as ever while this Decoupling will continue put stress on The respective economies of each other I think relatively speaking the chinese Market will become increasingly more Important For global investors so yeah Government policy makers Individual political figures can always Do whatever they wanted to do That could potentially create short-term Temporary impact on the more localized
Target but as i said Finance money is like a water you can't You can't block water you can block Water into from one area You can't block water all the water all The time Water is going to slip through it if you Block it it's going to sip through it It's going to go up to the sky and then It's going to ring into the other side They will find a way to get there you Can't really block it it's not Very easy to push water up here and what Are your thoughts on banks Hong kong exchanges outgoing chief Executive charles lee All right time now for options insight With abigail doolittle where abigail You're starting out with credit etfs Indeed we are kaylee thanks so much and Joining us today is chris murphy of Susquehanna and chris you know you're Making a very interesting point here That everything basically is going Higher at least today Breaking a bit of a losing streak in Fact for the s p 500 but credit not so Much what do you see happening here Yeah so hey abigail so fixed income etfs Have had massive inflows this year You're talking Hyg lqd etc however there are some signs Though that's reversing this month uh Last week lqd had 2.2 billion in
Outflows that's the largest weekly Outflow in 27 weeks Hyg saw outflows of 430 million Yesterday and hasn't seen a day with Inflows since december 3rd losing 2.7 Billion over that time On top of that we've seen an increased Amount of hedging in lqd hyg jnk etc we Highlighted that last week and then even Today a buyer of 10 000 each of the March 84 and 78 83 put spreads in the hyg Why the foot spreads well put sku is Really high in these fixed income Products and that's part of the reason We've been recommending These put spreads we've even also been Highlighting put spread collars they set Up attractively Due to the same option wings these out Of the money calls and puts being bit up Compared to the at the money And a high downside max payout compared To premium spent Particularly like those put spread Collars because they take advantage of The skew but also Short the call above all-time highs and It's just hard to see much upside past All-time highs given how tight spreads Are And how low rates currently are so What's the trade this morning we looked At the lqd march
135 128 put spread versus selling the March 141 calls Uh set up for only half a percent of Spot cost uh with the max payout up Close to six times outlay Uh 141 is well above the all-time highs From uh Earlier this year and that is certainly Some trend week after week of Outlook outflows for hyj something to Keep in mind and ipos all these hot mega Ipos doordash and airbnb last week Doordash options started trading today Airbnb options tomorrow What are you seeing there first off Where did they set the volatility It's around eighty percent um two or Three months out that's similar to tesla In fact even a little bit higher Um that's going to give you uh implied One standard deviation move Um of five percent so move at least five Percent one every three days And move at least 10 percent one time a Month Early on we're seeing more puts calls uh I'm sorry more puts trading than the Calls This might be due to investors who are Along the ipo looking to hedge Significant gains That they've had so far could also be Out of the money put sellers who didn't Get in on the ipo looking to sell puts
To get in position to buy a dip so we'll Have to wait for some more data some More trading action over the Next several weeks to see whether or not That options Trading uh cools down a little bit but Right now it certainly looks like there Could be lots of volatility ahead For doordash and airbnb similar to tesla Chris murphy of susquehanna thanks so Much for joining us for options inside And from new york This is bloomberg Bank of america's fund manager survey For december came out this morning and It showed investors have the highest Allocation Toward em equities since all the way Back in november of 2010 but not all Emerging markets Have benefited from this trend actually Middle eastern stocks have lagged far Behind Saudi stocks as we can see they're only Up 3 percent on the year In dubai in bahrain and the emirates They have all lagged the gains we've Seen In the broader emerging markets index Which is up about 12 Over the past 12 months or so the Question is does recovery In oil prices does the rollout of the Vaccine fundamentally change the
Narrative For middle eastern stocks well for more Of the latest on all of the emerging Action joining us now is daybreak asia Anchor sharion Sherry what are analysts saying about The prospects for middle eastern Equities things may be looking Up especially as you mentioned we had a Vaccine roll out many of these countries Have already secured vaccines either From pfizer or beyond tech Or china's backed sino farm so united Security is now seeing momentum in the Uae Qatar as well as saudi arabia saying That there is more active foreign money Invested in those markets when it comes To the uae it offers attractive Valuations as well Although telemer is saying that perhaps Gulf countries could be missing out In the rebound in tourism given that They're not that geared towards tourists Still Markets like dubai and egypt could be Favored Mufg bank saying that they're very very Bullish on oil so they remain very Positive On the sectors in emerging markets in The middle east going into 2021 Especially In those cyclically sensitive markets
Like the uae Let's move more global what about india I'm hearing some strong recommendations There yeah india is already a market That has rallied substantially this year Right we're talking about an 11 Gain year to date for the sensex we have Seen foreign investors pouring Money into the indian markets about 20 Billion dollars that would be The biggest amount since any year since 2012 bmp paribas very bullish on Indian stocks it puts a target for the Sensex for next year 50 500 which would be a gain of about 10 From current levels And they're saying that indian stocks Are getting bigger that's a good thing And also They're seeing more availability of Quality stocks so they like those Consumer stocks private banks And insurance companies as well all Right you're going to talk about that Data out of asia or not sherry Yeah because that's really what's uh Supporting sentiment across the region Right chinese eco-data look pretty good November activity data retail sales Industrial production fixed asset Investment All coming great as you can see on this Gtv chart on the bloomberg And of course this having to do with
Export growth consumer spending during Singles day last month accounting for E-commerce taking up about 25 of those Retail sales goldman sachs Now upgrading the chinese economy and Growth to two point four percent from Two percent And tonight do watch out for those equal Numbers coming out of japan Trade balance also the jobless rate out Of south korea All right sharian we'll definitely be Tuning in for that sharian of course the Host Of bloomberg daybreak australia and Daybreak asia all right let's turn that Back now to the u.s take a look S p 500 right now up near that 3700 Level you take a look at the russell 2000 Outperforming the s p here seventh time We've seen this uh in 10 sessions here The nasdaq composite Also is higher on the day you're seeing Persistent dollar weakness here heavy Dollar weakness here of course uh the Fed uh of course assembling fomc Down at the eccles building in Washington dc we'll get that Announcement tomorrow Commodities continue their rally we'll Be back in a moment from new york and London This is bloomberg
[Music] Just about half an hour left in the Trading day this is countdown to the Close i'm caroline hi I'm romaine bostic and i'm kaylee lyons In for taylor riggs Well it is a risk on day there is a lot Of green on my screen right here every Single sector In the s p 500 is higher on the day Romaine and it's the reflation trade Really leading the charge financial Stocks some of the biggest point Contributors To the s p 500 stocks like jp morgan Bank of america you also have materials And energy higher Topping the pack though utilities on Pace for its best day since november we Could get 12 to 18 inches of snow Here in new york tomorrow remain not Sure if you've heard that yet but maybe We're going to need to crank up the heat Yeah really preparing for that snow Let's take a look at some of the Individual movers fannie mae and freddie Mac Taking a leg down this after that wall Street journal story basically said that Steve mnuchin said he's not going to do Anything to release these companies from Government control During the final weeks here of the trump Administration this is going to be up to
Abide in the market Betting that's not going to happen Anytime soon adco getting the leg up the Analysts there uh Raising this stock basically saying that If you're looking for a good rebound Play a recovery play an economic Recovery play machinery stocks are it And specifically Singled out adco had a similar thesis Here from another analyst on the real Reel Also saying this could be an interesting Rebound play of course uh the Consignment Closed company and camping world keep an Eye on this company of course the Retailer of rvs and motor homes the ceo Said he's going to have a press Conference at 4 pm today with the ceo of Lordstown motors the developer of course Of those ev vehicles they didn't say Specifically what it's about but You put two and two together you can Figure out investors like what they see Those shares caroline Up eleven percent And ramen it's interesting kaylee Talking about the risk on mood today Well interestingly the latest High-flying ipos airbnb doordash they're On the downside today so too are some of The Ipo indices that we track the
Renaissance one for example and indeed The spac Index that we look at but despite this Just look at how far we have come In these particular areas of the market That have so outperformed them in the Pandemic I look at what the special purpose Acquisition company indices has been Telling us I mean a phenomenal run up some 40 over The course of this year we see The ipo index doing even better than That far surpassing where the s p 500 has come and that's when the s p 500 Has done pretty well too so It's notable all of this but the Individual ipos and specs are still Coming through and we're going to speak To one of them now air charter company Blade will go public Via a reverse merger with a ksl capital Sponsored blank check company for more On the decision to go public via The all so hot spec route we're joined By rob weisenthal Ceo and co-founder of blade urban air Mobility we know you're choppers we know You're helicopters charter flights Rob did did you always plan to go public Is this opportunistic Or is this something that was always in The ground plan I mean truly you know grandma mobility
Has uh Totally been transformed uh by battery Technology And software and you can see it by the Spacks that you're talking about in Terms of Everything from ground charging stations Across Networks uh and actually electric Vehicles themselves Uh they've transformed ground mobility And the next battle is clearly in the Air Uh and it's there's never been an Opportunity to invest In something specifically geared towards This we've been building Infrastructure uh and technology from Consumer to cockpit over the past six Years A customer experience a trusted brand Two hundred thousand flyers we've done It under Under an acid light model using Conventional helicopters so that at some Point Uh some people say 2022 or 2023 or Models 2025 Will be able to use this entire stack to Swap out helicopters For what we call evital electric Vertical takeoff or landing aircraft That are both you know admit no carbons Uh
Are quiet uh and more cost effective All right so talk a little bit more About that asset model of course you Know Caroline and i we get the company Official sikorsky Into work uh every morning so our our Eco blueprint is a little bit Uh worse than that i am curious as to Whether um the structure of this Business Is dependent on keeping i guess the Asset light model or whether maybe you Do get to a point Where you feel it might be more Beneficial to have a little bit more Asset control Uh i don't think that's necessary uh and In fact one of the the best ways of Looking at uh blade is that you know we Are In uh in a way an index play On evite so you have manufacturers Pouring billions of dollars into Individual aircraft We don't know who the winner is going to Be this allows us to pick the right Equipment for the mission whether it be A short mission We do a lot of organ movements we're the Largest mover of organs In the northeast with blade metamobility We have long distance missions so even Right now
We use a variety of different types of Helicopters depending on what the proper Mission is And with respect to evital we'll be able To help pick and choose What makes sense for us and be able to We know once Winners have been identified use them And not be stuck with one particular Type of aircraft If we went asset heavy not only would Reduce our Our return on assets but it would reduce Our overall flexibility So with all this in mind rob what are You expecting for your business going Forward into 2021 with a vaccine rolling Out and how have you seen it change Over the course of the pandemic Especially in regard to your clientele Well uh not unlike many other businesses The pandemics impacted us in ways that We really did not expect And in fact in october our revenues and Number of flights are up versus October last year uh before the pandemic People have actually created and uh uh Bloomberg actually wrote this in Uh in online synthetic suburbs they're Taking Homes that may have been secondary homes That are no co-primary homes That could be up to 90 miles away and They are commuting maybe once a week
Once a week for two nights every other Week as opposed to Every single day but it's really Enabling them to live Outside the normal sphere of where they Of uh where they Where they used to live in the city uh And what's been interesting about that Is Uh that it has approved their economics Because they're no longer kind of flying Out on a weekend uh where the actual Helicopters to go empty or flying back On a sunday We're filled in both directions and We're flying seven days a week Albeit probably not at the vine we had Before Additionally our our forecast did not For uh did not assume Any type of vaccine which clearly is Not only coming but we believe there's a Lot of pent-up demand For travel and there are a lot of people Want to get back to work Well we've got one minute the exact First use case of the funds you're Currently raising Uh it you know the terms of the funds That we're raising Uh the the spac that we're merging into Is 275 million dollars in terms of cash And trust And we raised a pipe of committed
Common capital of 125 million dollars From terrific investors like h.g vora Uh and hedosphere david geffen Barry diller and david zazoff uh certain Original investors Which is committed capital uh this will Go to purchase infrastructure such as Heliports landing zones that can not Only be used today Where we can enjoy better economics but Also can be used for vtol in the future And using legacy uh aviation metrics so It's a great way for us to bulk up Improve our business today but also Prepare for Utah tomorrow rob we really appreciate You coming on uh talking about this of Course At least those of you of us in new york Very familiar uh with uh blade copters Uh Out there uh over there on the west side Rob weisenthal he's the co-founder and Ceo of blade blade looking to come Public to the markets we'll be back in a Moment from new york and london this is All right welcome back to bloomberg Markets to close about 15 minutes ago Until the close keeping an eye right now On snow abigail doolittle here with the Weather report I don't know about a weather report Romaine but i love your enthusiasm For snow and i have to say i'm looking
Forward to myself as for Our stock of the hour that is snowflake Because shares are now down for a third Day in a row The worst three days since this stock Ipo back on september 15th then about 13 Percent Today coming off the lows at the lows Down about 8 this of course as shares Have come up off of expiration around That ipo so you have a flood of supply Initially it hit the stock now coming Off a little bit but since that ipo my Gosh Let's take a look at the gains since the Ipo because this stock is up nearly 200 percent at the highs before the Recent uh Selling this stock had actually been up Closer to three times from its ipo price So investors want in On these big software these big tech Ipos this year everybody wondering Whether or not the frenzy is sustainable So it makes sense that we do have a Short interest a pretty significant Short interest for a lot of these names Snowflake included but snowflake doesn't Have the worst short interest Take a look at rocket the 27 percent Bare short interest that means that There's lots of bears out there Who think that these stocks will not Hold their gains good rx and then
Snowflakes right there in the middle 21 unity 14 anything above 5 percent of Suspects so Many traders out there seem to think That these stocks that these big gains May not last and then finally it's going To be interesting to see whether Analysts follow through Because relative to a number of the big Ipos recently we are looking at nine Buys 12 holds so most analysts most experts On these stocks are On the sidelines sell one cell All right abigail thanks very much it Begs the question what's going to happen With Wish another possible billion dollar Plus ipo that prices tonight Stay with us this is bloomberg [Music] This is countdown to the close i'm Caroline hines i'm kaylee lyons i'm Romaine bostic And the hopes the prayers on stimulus Sends us higher across the board check Out the benchmark indices today Your star performer the outperformer in The blue of course is your small caps Once again Overcoming and overwhelming where we see The performance in the s p 500 but Really all the indices pretty much on Fire today the risk on mood taking us up
By more than a percentage point on the s P currently at 1.2 percent so about 43 Points higher But we're pretty much rising across the Board every industry group has been in The green today romaine Yeah although you're seeing a little bit Of a lag here in tech and you see a Little bit of lag and discretionary What's not lagging energy stocks pretty Much On fire that trade remember gained a lot Of traction last week lost some ground Yesterday Gaining it back today halliburton up Almost six percent on the day hess Up almost four percent the paper and Packaging stocks also moving i are here On some relatively encouraging data with Regards to container boards all that Stuff uh people are buying There online so you're seeing west rock Get a bit higher up about three percent International paper sealed air Also moving higher as well the Philadelphia semiconductor index also Regaining some ground here Biotechs which of course had been on Fire taking a little bit of a breather Today Down fractionally kelly all right well Let's get some more market analysis now We're joined by angela mawanza she is a Private wealth advisor and senior
Portfolio manager over At ubs angela i want to ask you about The level of bullishness out there right Now bank of america put out its fund Managers survey earlier this morning for December Showed investors are most optimistic on Risk since back in 2011 And cash allocation is down to four Percent They say that level of cash allocation Which is the first time it's been Underweight In over a decade means it's a sell Signal Does that concern you that's interesting I We're not seeing um we're actually Talking to people about You know not sitting on the sidelines With cash so a little bit of the Opposite And the concern there is that you know We have negative yields you're not Earning Anything on that cash it's hard to time When you're going to get that cash back Into the market And generally equities outperform most Of the time and as long-term investors And if you look at a 20-year time Horizon Uh you know 100 of the time your Equities will outperform
Uh we too are risk on uh and we too Think that there's good upside and good Reason to be upside in the market but we Are mindful of certain risks out there Certain risks such as whether or not we Get a fiscal deal what the fed says Later this week Focus on the first one for us angela the Here and the now how much is already Priced in in terms of the size the scope Of a fiscal stimulus coming from the us I think the reason why you're seeing Markets uh rally again is because there Is A lot of optimism around a fiscal Stimulus um which i think is good news That should be our bridge over until There's more widespread access to the Vaccine Um and and i don't think we necessarily Have to you know When you have um the balance sheet Ballooning a little bit more Government deficits already at an All-time high we already Saw the fed doing asset purchases of Three trillion dollars so there could be Concern That there might be inflation on the Horizon which generally would mean would Start seeing interest rates rise which i Think is Probably the biggest trigger of of Recessions historically
Um we don't think that's necessarily the Case because that stimulus is something That's necessary to make up for slack in The economy particularly around labor And commodities And so in a case like that high Inflation be really really difficult to Achieve And so we we are also pro cyclical uh we Think we definitely do have A reopening trade in the intermediate And long term and it's just in the short Term where we'll see things a little bit More bumpy The inflation argument uh angela for Those that believe it is around the Corner I always seem tenuous to me and i am Curious as to when you hear Certain members of the fed sort of raise Concerns about it and obviously they're Talking much More longer term i mean what would sort Of be i guess The lead on that because through all of What we've seen Through the bull market of the previous Bull market we've been through and even Through the relative boom that we've had At least in some areas of the economy This year you just haven't seen that Reflected dramatically In consumer prices or in producer prices That's very true that's very true event
Um and i think you know when when it Comes to looking at this reflation Uh you know the economic growth that's Pointing towards uh Higher inflation um i don't know that There's necessarily those signals that Specifically the fed just in summer we Went from looking towards a two percent Uh towards a two percent target looking At current rates To a two percent inflation rate target Over a period of time with deliberate Vagueness around what over a period of Time means Uh because they they are looking at the Fact that if inflation starts peaking They don't want to Have their hand forced into raising Rates when they don't think that the Economy is standing on its own two feet Yet Um that being said for portfolios we do Like treasury inflation protected Securities tips Uh we think they make sense if you look Over a 10-year time horizon If you think inflation is going to be Higher than the break-even rate where it Is now It makes sense to hold tips so a nice Inflation hedge as part of the portfolio And we could consider throwing in a Little gold while we're at it yeah 10-year break even right now that sits
At about One spot 92 of course we were down about 55 basis points back and marchers Speaking here Uh with uh angela mwanza with ubs we're Going to get back to her In a moment counting it down to the Close five minutes ago abigail doolittle Where do we stand in the markets Well romaine we certainly have a rally On our hands in fact the s p 500 Up for the first time in five days up 1.2 The best day in about three weeks and You were mentioning earlier the breadth From sector perspective Take a look at this energy up 1.7 Percent we also have the financials up 1.5 percent so those reflation Sectors the reopening rotation that part Of the trade is on but so too is tech Take a look at apple a 4.9 On that report from nikkei that they may Be planning to Up their production by 30 for iphones That's bringing the entire complex Higher take a look at skyworks up 3.7 percent however it's not all rosy Because if we take a look at the Vix in a range we've looked at this Chart before in the bloomberg terminal We see the vix has been trading between About 20 and 40 over The last six months or so right now
Rounding off the bottom the rsi is Rising it may just suggest that you Could see that vix go back to 40 Leading the way possibly romaine very Interesting we have both moderna And pfizer the vaccine-related stocks Down on the day Some sell the news action here will this Lead the markets lower in the days weeks Ahead It's hard to know romaine but right now We certainly have some bearish action And it may suggest that there could be a Little bit of cooling off at some point For The broader markets remain all right Caroline It's interesting i'll pick it up from Here um abigail that perhaps an awful Lot of this is priced in When we look at the vaccine companies And how far they've traveled so far the Phenomenal Rally that we've seen in the likes of Modern over the course of the year I'm going to take it back of course to Angela because miranda who's with us Andrew your perspective i'm seeing Record highs again being reached for the Russell 2000 i'm seeing Record high for global stocks on the Msci all country world index i'm seeing A record high on the nasdaq as well Are you questioning at the moment
Valuations That's a great question and it's Something it's a question that we're Answering Clients on quite quite often um but if You look at if you look back to March where we were and where we are Today we're sort of a year Into a new business cycle and business Cycles historically If you go way back in time to to sort of The 50s Business cycles are probably around six Years uh Post 80s closer to eight years so we Feel that we're the beginning of a cycle Uh and we're beginning we're in a period Of growth Where more companies are asset light More companies are nimble and more Companies Uh even within the s p 500 um Tend to to carry those higher valuations So i feel that yes we We have run up a long way but given all Of the tailwinds Uh whether it's the stimulus whether It's the vaccine um Whether it's a new administration coming In i think that that that it's still Supportive of the markets um Uh still supportive of the levels that We see today speaking of valuations or The value trade are there
Any areas within value that you still Would avoid here what about energy for Example Energy energy i mean we energies Had a nice little run up over here the Challenge with energy I think there's two uh areas one on the Short term is looking at demand Uh if we keep seeing economies get shut Down Various cities new york is about to be On lockdown germany's kicking into Lockdown tomorrow Um especially with these longer-term Lockdowns i think that doesn't bode well For energy And then i think structurally over the Long term this move into Renewables um just this this week is Basically the the The week where we have the fifth year Anniversary of the paris climate uh Agreement Uh and there was just a meeting of 17 National leaders Having a crisis meeting you could call It uh Kind of the climate ambition saying we Are not reaching the targets that we Made of one and a half to two degrees Celsius Um of average uh uh global warming Maintaining that level uh we're not Going to get there with all of those
Commitments we made so we really need to Ratchet up Which speaks for renewable fuel battery And that means governments are going to Be spending subsid providing subsidies And also Um regulation behind it and we're Hearing that from from president-elect Biden too Which i think is going to be a bit Challenging for energy stocks All right we're speaking here with Angela wanza private wealth advisor Senior portfolio manager At ubs she's sticking with us you're Getting the closing bells uh here in the U.s the dow jones industrial average the S p 500 And the nasdaq each up about one percent We should point out again we don't have It on the board we should start putting On the board because it really has been The start of the show the russell two Thousand Two point four percent uh not only Outperforming the broader market here But that's a record high another record High kelly for and caroline for the Russell 2000 Another record high for the nasdaq Another record high for global stocks And i take you cross asset now romain to See this risk on flavor through Flow through various asset classes look
At your gmm function on the bloomberg if You're lucky enough to have it global Macro movers I'm seeing the dollar down significantly Once again off by 4 10 percent we're Basically a two-year low So we look towards fiscal stimulus as we Look towards the federal reserve And it's meeting already upon us and Therefore the outperformance of the Great british pound of course hope's Press still on a brexit deal but we're Seeing some of the Commodity sensitive currencies doing Well the canadian dollar doing well Norwegian kroner as well even in Japanese yen usually a Risk-off kind of trade doing well i'm Also looking across the The commodity spectrum steel at 1.7 Remember This isn't just about u.s stimulus we Saw very good Chinese data once again just showing That recovery it's solid kaylee Yeah risk on risk on risk on caroline But of course that doesn't Bode particularly well for the safe Haven that is treasuries the moves Though today Not very large the u.s 10-year yield up Just around the basis point 90 basis Points where we sit a little bit more Movement
Toward the longer end of the curve the 30-year yield now sitting at 165 15. But still 10-year yield below that 1 Threshold the question now is does the Fed change anything about that Depending on what it gives us tomorrow Still with us of course is angela mwanza From over at ubs Angela there's some talk that if the fed Doesn't give the market what it's Expecting tomorrow that yields could Move pretty materially above One percent what would a move like that Do to your view on equities I don't know that'll specifically change Of your inequities Uh that's still a historically low level For the 10-year treasury Uh but we do watch it closely where it Is a big challenge Is specifically around our bond Portfolios because in a diversified Portfolio historically we would look to Our bonds for our safety And for some some added yield and for Some diversification And in a low interest rate environment Like we are here it's challenging all of That so for us We're looking to see where can we pick Up some yield where can we add to our Portfolios Whether it's looking in private debt or Looking in areas that are taking on a
Little bit more credit risk But not as much risk as going to Equities because it's so tempting to Jump into the equity Uh ban jump on this equity bandwagon With all of your portfolio because that Seems to be the one thing that has Worked But we do like private we like private Debt uh we like emerging market us Dollar denominated sovereign debt Uh we like some corporates as well and When you're talking about an alternative Specifically angela To sovereign bonds to those sovereign Yields which of course Are hovering near zero or below zero and By some expectations are going to go Higher Is there a sense here that the balance Between the rise in yields that we may Get And the returns that you're getting on Some of those alternative investments That that may sort of equal out at some Point in the future Yeah it's just to see i mean that i Think it's easy within the private Markets to be a lot more opportunistic Um to to be a little bit more creative Whether it's looking at royalty Streams whether it's looking at bridge Financing um so i don't know that it Necessarily will impact each other
Um but if if if yields go up to a decent Level Then why would i deal with with the Illiquidity that you get within Private equity we're also seeing a lot Of evolution within that space Where it's providing cl closer not not Such large lock-ups More liquidity and yet still higher Yield so i it is a space that i think Still has a lot of A lot of potential for for our Portfolios Angela what are your clients asking you That we haven't asked you yet what what Are We missing what's the market not talking About that you're getting questions on You know and maybe this is because it's One of my favorite areas we tend to Speak a lot about sustainable investing About Those companies that are looking at Environmental social governance Investments Whether it's looking at mitigation Whether it's an integration Um divesting of fossil fuels Um all of these these kinds of Investments that are reflective of our Clients values That's what we spend a lot of time Talking about because when when when We're thinking about generational wealth
It's not just how is my portfolio going To do in this generation But how will it do in the coming Generations and not only do i want to Ensure that i'm i'm getting a financial Return I want to make sure that my actions Today have a positive impact on the Future So that's a really big topic that we Spend a lot of time with our families Talking about uh and there's lots of Opportunities knowing that we've got all Of these governments uh And corporations committing to to net Neutrality Uh by 2050 and sometimes earlier in some Cases Which provides that tailwind for a lot Of these investments whether it's in Green tech Whether it's in sustainable agriculture Um whether it's in In renewable energy smart mobility i Think that That's a great investment to think about If you if you consider family values and It's a great investment to think about If you're just looking at the financial Return of your portfolio Esg still hot angela mwanza we thank you Private wealth advisor and senior Portfolio manager At ubs we have love you riding the
Clothes with us now more markets Coverage coming right up for your Minimum markets to close we're going to Be digging into of course For the all-important fomc rate decision That comes tomorrow what to expect This is bloomberg Let's get you up to speed with where we Closed higher across the board Nearly every end ex basically all the Major indices above more than a Percentage point growth we saw on the Day And record highs once again being had by The nasdaq but also by small caps it Really speaks to the fact that People are still plowing into tech but They're still ploughing of course Into the more cyclical trades kaylee all Right carolina i just want to bring you Some breaking news from microsoft of Course following on That big story from yesterday in regard To the cyber hack A lot of fingers pointed at russia using A back door in solarwinds technology Update to affect many Government agencies across the board Including the department of homeland Security the treasury The commerce department now microsoft Saying that it is ensuring customers are Protected they have a tool to block The known malicious solar wind binaries
And that they have been in communication With solar winds which i should mention End of the day another almost eight Percent lower today remain All right let's turn now to the treasury Markets of course we've been talking a Lot This year about that steepener trade of Course a lot of investors have really Piled into that trade and it paid off Pretty well you look at the trajectory Of where Uh 10-year rates went i think we have a Chart that we can show you that gives You an idea here of where 10-year rates Went and then you sort of pair that up With the positioning that we've seen At least look as through the lens of That commodities future trading data And it gives you a sense of just how Much conviction some traders had but That conviction has really been dialed Back a little bit Over the past few weeks a lot of Concerns here about what the next move Is By the fed the idea here that the fed uh While they would certainly encourage Some degree Of rate rise here that they would Actually want to cap that to a certain Extent at least here in the short term So The fed right now looming large over
This trade a trade that's paid off so Far The big question i guess is uh what do We hear from the fed tomorrow and Uh will they really give any sort of Signal here as to what's going on for More uh let's bring in our jersey of Bloomberg intelligence of course knows Way more about this than Me you and anyone else ira what are your General expectations for tomorrow Yeah so the market's pretty split on Whether or not the federal reserve is Going to do that maturity extension that You mentioned romain i i think I i think the fed will actually hold off A month they i think that they'll wait To see just a little bit more data get Another payroll print a couple of retail Sales prints in there To be able to see you know how bad the Winter might get even though we're Getting the vaccine But at the same time there is the Possibility that if they don't do that That bond yields might rise a little bit So you know that there's different There's different ways to analyze this And i think on the 10-year yield I think we go back and test the highs of About 98 basis points where we were a Couple of weeks ago I don't think that even if the fed Doesn't do that that they'll break one
Percent the reason being That even though the statement might Disappoint those people who want to see Them Uh buy more longer-term bonds i think That jay powell during the press Conference will say It remains an option we're still looking At it and we'll do it if we Think we have to and that'll move things Uh back down toward Um you know 95 and and maybe even close The day pretty much where we are now So ira do you think for here on out There is basically a cap On ten-year yields at one percent i I don't think so i i think though what You do need to happen is have the global Economy Look like it's going to pick up steam You see the efficacy of the vaccines in The first and second quarter And then you wind up seeing bond yields Do get above one percent we think Sometime in the mid to second half of 2021 so Something that's going to persist Forever that we don't break one percent But i think In the near term so tactically in the Next three four weeks that we We probably will hover kind of just Below one percent One thing to remember when bond yields
Move they tend to move and fits and Starts And then find new ranges so so what we Look at we do look at the technical Levels of bond yields And the 10-year bond yield if it breaks 98 basis points one percent is a Meaningless number on the charts by the Way 98 basis points is important above that 1.17 percent Is the next level uh for the 10-year Yield and then i think we reach Kind of there and we'll make a new range Maybe you know 105 to 117 and And then the market will reassess for a Long time what the next Move for the economy is going to be and That will ultimately drive where bond Yields are going I we just have about 30 seconds but Quickly tomorrow Is there anything that the market's Going to care about other than details On this bond buying program and Potential tweaks Probably not from the fed i think that If we do get some uh Some new news on what a fiscal stimulus Package might be like that could Potentially move Bond yields and and markets and Particularly the the tips market might Care a lot about that so
You notice inflation expectations have Been rising up toward two percent and if They break Two percent then they're going to be Making new multi-year highs in In the markets expectation for inflation And i think that can be very important And very signaling For uh what might be next for bond Yields in general Ira jersey we thank you so much for Bloomberg intelligence He'll be a busy man tomorrow of course Meanwhile let's get to another busy man Mark crompton's here with the first word News Caroline thank you very much senate Majority leader mitch mcconnell Congratulated democrat Joe biden as president-elect today the Republican leader's statement delivered In a speech on the senate floor ends Weeks of silence Over president trump's defeat it came a Day after electors met and officially Affirmed mr Biden's election win as he departed Wilmington delaware to campaign for Democrats in the georgia runoffs For u.s senate mr bind told reporters That he called leader mcconnell to thank Him For the remarks i had a good Conversation with mitch
Mcconnell today he talked to him i Called him to thank him for the Congratulations Told him although we disagree on a lot Of things there's things we can work Together on We've always been straight on one Another and We agreed we get together sooner than Later And i'm looking forward to working with Them in his remarks leader mcconnell Said quote Many of us had hoped the presidential Election would yield a different result But our system of government has the Processes to determine Who will be sworn in on january 20th the Electoral college Has spoken end quote america's top Infectious disease expert expects to be Vaccinated against covert 19 As early as this week it's not just Because dr anthony fauci is still seeing Patients He tells the washington post he believes Getting inoculated on camera Could help boost americans confidence That the vaccine is safe to take Dr fauci says between 75 percent to 85 Percent of the u.s population Must be vaccinated to achieve herd Immunity new yorkers can expect a Shutdown of all but essential businesses
Soon after christmas that is according To mayor bill de blasio today Although governor andrew cuomo will make The final decisions Mayor de blasio says closures will be Similar to what the city experienced Last spring With the exception that schools will Remain open New york city has seen its covet 19 Infections and hospitalizations Rise in recent weeks the new york area Is bracing for what could be the worst December snowstorm in a decade The national weather service says a foot Or more of snow Could blanket the mid-atlantic and Northeast starting wednesday The storm threatens to snarl road rail And air traffic Throughout the eastern united states Just as trucks carrying pfizer's coven 19 vaccine From michigan fan out nationwide and Carriers are busy With holiday packages global news 24 Hours a day on air and on bloomberg Quick take Powered by more than 2700 journalists And analysts In over 120 countries i'm mark crumpton This Is bloomberg romaine I'll pick it up from here mark we do
Have some breaking news trump's national Security adviser of course the acting Security adviser being charles kupperman Has cut a trip short for talks on the Hack of course this hack Is the one we just mentioned ago that Was revealed by fireeye involving Solarwinds software has affected a Number Of government agencies romaine but a Breaking news just crossing the terminal That the national security advisor Is returning early from the middle east And europe for talks on that hackling All right a very important story We're actually going to have a lot more Of that on our next program what'd you Miss i want to take you back uh now Uh to what's going on here with the Pandemic horse arts organizations They've been hit especially hard of Course venues around the world Have gone dark bloomberg's janet wu she Takes a look at how two symphonies out There Are finding a way back into the Spotlight bringing new concerts and Music To an even bigger audience The orchestra is an art form with no Personal space Musicians perform shoulder to shoulder To synchronize As one
When the pandemic struck the boston Symphony orchestra immediately canceled Its season We have candidly in boston maybe the Largest Audience along with los angeles so in The course of a year we've lost about 50 million dollars in ticket sales and Other earned income How does an orchestra perform when There's no room for social distancing You make room here at boston symphony Hall they more than Double the size of the stage We've taken a 2 400 square foot stage And made it close to a 6 000 square foot Stage All the string players are six feet Apart the brass section is basically in A different zip code than the strings But somehow We've learned our physics sound and Light travel at different speeds so Everyone's had to make The appropriate adjustments and then We're making music again All this is possible because 120 years Ago Bso founder henry higginson had the Uncanny foresight to build a concert Hall with removable seats The seats are taken out for pops dinner Concerts and Even for an elite squash tournament but
No one ever dreamed these century-old Seats would help the bso Face the pandemic and one of the great Ironies is we're reaching more people Than we've ever reached nearly 20 Million unique viewers since Performances went online We're touching more lives with music Than we ever have Before six continents you know 88 Countries And so we're able to fulfill our mission The dallas symphony orchestra also got Creative We did believe it or not 90 Concerts outside chamber musicians all Around dallas On streets driveways cul-de-sacs Parks and Indoor concerts with just 42 musicians The audience is capped at 150 in a hall Built for 1800 People would shout thank you from the Audience to the orchestra as they were Getting off the stage which was just so Poignant the silver lining is that Someone with tickets All the way up here can now get this Close To the musicians [Music] You get angles you get good perspectives That you can't have in a normal concert Facing incredible challenges the bso and
Dso are determined to come back Knowing music is more important than Ever In boston janet wu bloomberg news You can catch a holly jolly celebration With the dallas symphony orchestra In partnership with bloomberg television On friday at 7 pm eastern time You don't want to miss it remain bostick Even sings a little ditty Do it it's gonna be it's gonna be big Welcome back now senate majority leader Mitch mcconnell said His chamber will stay in washington Until a coronavirus aid package Is complete reiterating his call to move Forward with items that Have broad agreement but also leave Aside contentious issues like Liability protections and of course all Important aid for state and local Governments for more on the state Of talks and police say we're joined by Congressman brandon boyle democrat Of pennsylvania wonderful to have you With us congressman and These contentious issues should they be Set aside should a smaller package be Put through right now Like the american people need help and They needed it yesterday i've already Voted for two packages one in may The other in october both called the Heroes act or heroes act and heroes act
2.0 Unfortunately in that time absolutely Nothing has passed the senate over the Last eight months I'm certainly open to the idea of Pushing forward with what we Can agree to and then come returning To those items that are left to to be Agreed upon But let's be clear there's no reason why We should be here eight months later Still attempting to reach an agreement On another round of direct stimulus Payments another round of ppp Desperately needed aid to state and Local governments no Senator mcconnell it's not a blue state Bailout It's attempting to backfill the budgets Of all of our states and municipalities That have had such a sudden drop in Revenue because of covet 19. we cannot Be laying off our first responders and Our teachers Etc in the middle of a pandemic we are As you mentioned here congressman it has Been months since The provisions in the cares act began to Expire months of inaction By congress i am curious as to whether You think that the tone would change Once the new congress is uh sworn in Next year and obviously President-elect biden takes over it's
Still going to be a very narrow Margin in the senate and you still have A leader in mitch mcconnell Who is opposed to some very fundamental Ideas about what the democrats have Proposed It's not just opposed to certain Ideas you know back in the night before Inauguration day in 2009 and a famous Anecdote now that has been verified House republican leadership got together And decided they wouldn't agree on Anything With president obama they decided to Pursue a path Of obstruction mitch mcconnell obviously Followed through on that when he became Senate majority leader a few years later You think he's going to do the same Thing excuse me do you think he's going To take the same approach with biden Yeah so what i was trying to say is the Question then for senator mcconnell is Will he pursue this obstructionist path Before it was done to attempt to get Them back into the majority Now that they are in the majority the Question is will they be willing to do Something with it My hope is that they will realize that What they are doing Is only eating their own that they are Enabling more extreme voices and Candidates
On the republican side to actually take Them out in primaries that it's actually In their Political interest to work with us and Work with the president bison Congressman the clock is ticking the Stopgap funding bill runs out on friday Is there a risk that we don't get Something done in the next three days Yeah you're raising a separate but also Vital issue That is regardless of what people think Should be done On covid whether you're called stimulus Or as i call it relief The reality is separate of that Government funding runs out december 18th so if we don't pass legislation we Would be in the middle of the pandemic In the middle of attempting to roll out Vaccines We would be facing a government shutdown Now the good news on this is i am Actually pretty optimistic uh that we Will see The government funded that we will push Forward on a bill that will get this Through that's just a weak bill um Or a two-week bill but actually will get Us through the end of the fiscal year September 30th on that point i am optimistic All right we will see what happens in The next couple days our many thanks to
Congressman brennan boyle he of course Is a democrat joining us from Pennsylvania And guys it does raise a question for me The original package we were talking About with nancy pelosi was 2.2 trillion Dollars even if this 908 billion dollar Compromise package Goes through both parts of it it's still Half the size of what was originally Proposed My question is will it do enough Yeah i mean go ahead caroline That's the key question guys as is it Enough the market seem to think it's Enough i almost feel like any sort of Deal will keep the market supported here And they want to move forward and they Want to start seeing them they're Looking past this past the vaccine Rollout And at the moment we're at record highs It's quite amazing yeah record highs Here and of course A lot of news here uh uh that came out Through the day i mean we kind of Touched briefly Caroline and kelly on that uh that Russian hack of course Is really seemed to just uh involve to Not only a lot of companies but now of Course We're starting to get the trump Administration response to it um we're
Gonna talk a lot more About that on the next show kayla you're Gonna be here for that i won't this is It for me romaine i think you knew that Though bloomberg markets the close that Wraps it up for our coverage what'd you Miss Is coming up next this is bloomberg
