00:002:00 p.m. in New York. It's 7:00 p.m. in London life OMXS World headquarters in European headquarters. This has been that market. The clothes. I'm Caroline Hyde arm Romaine Bostick Taylor Riggs. She's off today. Meanwhile we look at political instability again being no issue for stocks. Government crises from the United States across to Italy the U.K. could be in deficit a record. Still we push higher as tech outperformance but the reflation trade takes a pause says bonds and the dollar rally. President Trump making history but not the way he wanted to. The House is set to impeach President Trump for a second time a first in U.S. history. Proceedings are underway. We'll bring you the vote as it happens this afternoon. And a new era at Intel. The company's CEO Bob sworn to be replaced by the. Chief executive Payton Gil Singer who is returning to his roots after leaving the company more than a decade ago. Well his leadership be enough to calm activist investors. We'll discuss all that and so much more coming up. Plus economic data views from the Fed remain. We get the Fed Beige Book almost all districts so modest price increases. So some signs of very small amounts of inflation. Most districts reported modest economic activity increase as well. We will dig through all of those numbers and sentiments coming from the basement. Yeah we got those price numbers a little bit earlier this morning. Seems to show that inflation is still relatively unchecked course. Yesterday a lot of people were concerned about the trajectory of the Fed whether they would come off the floor a little bit faster than expected. Those concerns seem to be put to rest at least for today. We take a look right now. Yes it be 500 up about four tenths of a percent. We opened higher move lawyer lower. And then we did see the S & P sort of claw its way back into the green. Here you still have about half the stocks in the red. Here are utilities. That's pretty much your gainer here in terms of sectors. As far as some of the individual movers you are seeing those big cap tech companies the Apples and the Amazons and Netflix of the world provide a much needed sort of point boost here. Intel of course one of the biggest outperformance here on the day with finally getting the change of leadership there Pat. Jill Singer taking over for Bob Swan who basically had only a two year run. Their investors really weren't happy. They really do seem to be applauding this move. Take a look at your tenure yield right now. Quite an interesting auction we had a little bit earlier today. The Bloomberg Spot Index resuming its trend on the upside. That's a trend we haven't talked about much and the sentiment overseas still there. Caroline the MSCI emerging market index up about nine tenths of a percent. Yeah. Notable the emerging market move despite the dollar strength. But I returned to your focus on the bond market because it's interesting that we are seeing at the moment. Well you come back to flattening once again. We'd had this ongoing story of yield curve spiking higher. The 2s tens was where it is that we haven't seen these sorts of levels since about 2017. Nevertheless just today we do see the two the yields just edging ever so slightly higher was the 10 year yield as you see been coming pending right back after that Fed speak. So let's dig in a little bit more to what we might see for short term yields in particular. I want to bring in Debby Cunningham. She is CIO for Global Liquidity Markets at Federated Hermes who joins us today from Pittsburgh. Always great to get your thoughts Debbie. And I was interested in your note. You were focusing on perhaps the very short end of the curve saying look we could see some pressure there. Given the amount of well supply we're gonna be having Netanya taken in very well. Yields actually coming down at the moment after yesterday's auction. What do you make of where borrowing costs are going to go where the yield curve goes. Well I certainly think on the short end we're anchored by the Fed and I know in your previous remarks you were talking about inflation remaining in check and not necessarily know kind of rearing its ugly head of this at this time. And therefore the Fed remaining on the sidelines and remaining very accommodative. And I don't see that changing. Certainly not in 2021. But I do think the potential for 2022 is there for the Fed to react to maybe some. Dynamics in the inflationary market that are a result of vaccinations and Kovic coming into check and pent up demand. But but again not 2021. So the short end is going to remain within 10 basis points of where it is right now today. Now when you get a little bit further out the yield curve past two years you're not. You're no longer anchored by that fed and you're a little bit more tied to that inflationary outlook. So as it changes as those dynamics become a little bit more forward looking into 2022 you know you have the the possibility of steepening yield curve. I think it is absolutely a potential for. For that time period. Now again I don't think that this is something that's imminent. And certainly with this it's coming. You know you're going to see all markets rise from a yield level standpoint in order to accommodate that. But steepening you know as you go out towards a longer the yield curve I think it's quite potential. Stuart W. I want to get your thoughts on me crossing the Bloomberg terminal right now. Lael Brainard of course one of the members of the Fed board speaking right now. And she's basically saying you know the Fed is committed to using the tools that it needs as long as it takes. But she also talks about how the experience with the Corona virus and the fallout from that pandemic warrants in her words a closer look at money markets. What do you think she means by that. Well I think when you look back at the March and April time period there was a sense in the broader money markets the commercial paper market the C.D. market that there was not as much liquidity in those markets as you know generally speaking in normal in normal times. And is that a function of how those markets operate. You know that the players on both the primary side as well as the secondary side from issuers to investors to facilitators or counterparts. And so I think that definitely you know it's probably not a top priority list from a regulatory response and standpoint from the Corona virus issues but I definitely think it's probably one of the top 10. So we could certainly see perhaps a little bit more focus on changes in terms of regulatory areas when it comes to the money markets I'm interested in what's happening in money markets in cash markets. Liquidity seems to be fine but people are pulling money out of cash at the moment probably because it doesn't earn you anything. But is that going to be the ongoing scenario for now. Are people going to be wanting to get into out of cash into equities even at these lofty levels. Well certainly there was a huge build up in assets in the cash markets back in the first half of 2000 and 20 and that was premised on the concerns about what was happening with the Corona virus. The fact of the matter is that now that is starting to go back in to what I'll call its normal homes that maybe the equity market maybe private markets some other form. And so you've seen the second half of 2020 a decline. When you look at those that actually need liquidity in the market though for their day to day cash needs you know whether it's payrolls or other types of daily expenses. There's not too too far. You can go too far. You can stray from those zero interest rate environments that we're we're dealing with. So I think it's just a matter of those that are in the cash market because they were no longer comfortable in their original risky homes. Now getting more comfortable. Whereas those in the liquidity markets I think are dealing with the fact that you know low interest rates in the cash market zero to 25 basis points is where we're going to be for most of 2021. And maybe a little supply gives a few extra basis points but not 10 20 30 for sure. All right Debbie always great to get your thoughts going out to leave it there. Debbie Cunningham CIO for Global Liquidity Markets over at Federated Hermes. All right. Coming up here a lot more to talk about. We're gonna go down to Washington of course. The US House of Representatives within the hour scheduled to make that vote on impeaching President Trump. It would be only the second time. Please give me the first time in history that a president hasn't been impeached twice. Plus we're gonna talk about Intel a big move their CEO shakeup. Bob Swann out in Goldfinger. That's gonna have some huge implications here for the company going forward. Plus here to talk about the crisis in child care how many family focused policies could ease the pain of millions of Americans. All that and more coming up next. This is. All right those second impeachment proceedings against President Donald Trump underway right now in the U.S. House of Representatives right now debating the articles impeachment. For more we want to bring in one of our chief political anchors here David Westin of course anchor of Balance of Power and a whole host of other shows. David last time we had this impeachment about a year or so ago you had basically what 200 something Democrats vote for this thing. And no Republicans is going to be the same this time. Most people that we talked to today including some Republican congressmen say that they think there'll be somewhere between 10 and one person said 40 Republicans who from the Congress who will actually support this as we know the number three Republican in Congress. Now that is Liz Cheney. Yesterday said that she will vote for it. So there'll be some more support for the Democrats. But I wouldn't expect it to be overwhelming. Liz Cheney facing calls for her to resign. Perhaps unsurprisingly for some members in her happened in her party. David I'm interested in where the next steps go because this gets handed to the Senate. It looks as though already Mitch McConnell is backing away from any sort of emergency trial. This is going to impact the next administration right. Yeah it looks inevitable at this point. It was also a suggestion as you know that in fact they might hold on to the articles for a time so that President elect Biden could get going with his administration. But now Steny Hoyer the number two Democrat in the House said no we're going to send him over right away. And as you say Caroline we've now heard that Mitch McConnell has communicated with Chuck Schumer the incoming about to be majority leader saying we're not going to expedite this trial. So it's going to drag in certainly to significant part of the first hundred days of the Biden administration. And understandably we haven't really heard much from Biden on this. I am curious as to whether he is actually in support of moving forward with the impeachment. Well very interesting. He was very pointedly asked that question in his covers a week ago Friday and he refused to answer it. He said it's up to them. He did say there should be a way that we can do both at the same time. But what would more interesting frankly in some respects in particular for a Bloomberg audience is the stimulus package that he's set to unveil tomorrow. And what he does with that as we have now some reporting that perhaps he will not try to do it all at once or have a more modest package. Republicans could help support and then maybe later on try to go bigger. So tomorrow we'll find out what the stimulus package. And whether it's in the trillion figures David Westin we thank you so much spending time with us the anchor of Balance of Power of course and David will be sticking with us all afternoon as we follow the impeachment proceedings in the House. Now let's dig more into this debate and specifically the issue of managing corporate risk right now. We're joined by Jordan Strauss is managing director at Kroll and former staffer on the National Security Council. And when I read your calls your previous history Jordan I mean you want to most senior national security emergency crises lawyers over at the Department of Justice and your focus on leadership leadership succession and emergency issues. Well here is leadership succession and emergency issues front and center. Jordan and your perspective on this dragging into the next administration and if this helps or hinders what it does in terms of while political standing for the president elect. Good afternoon Caroline and always a pleasure to be here. The challenge with it lingering into the next administration which it certainly will at this point is that in order to conduct an impeachment trial to be able to vote every senator has to physically attend the trial. So regardless of the desire of the Senate to advance President elect Biden's policies his nominees or generally to cede the bully pulpit to him there are only 24 hours in a day. And if you're having an impeachment trial during eight of them it reduces by that number the amount of time you can consider new cabinet nominees undersecretaries and assistant secretaries. So there could be a real delay here after what appears to be the inevitable impeachment of the second impeachment of President Trump. We've seen Jordan. A lot of companies basically make these declarations that they're going to suspend political contributions some pretty much across the board. Others are saying it's only targeted at certain members of Congress who they say supported the insurrection in some form or another. There's a general sense here right now that companies have sort of gotten themselves dragged into this vortex of a culture war going on in this country right now. How do companies sort of separate that from I guess the general need for them to be engaged with Congress and with the lawmaking process and rulemaking process in Washington. Remain. Great great question. So this is a time of extraordinary risk in the business sector. Just like we're in a period of historic change and historic unrest in the United States one of the challenges that many of our clients are facing around the world is that they feel that they they need to take a position one way or the other here. But they're worried about alienating clients or more importantly putting their people places and things at risk. So we have clients who have advised their employees that they shouldn't wear for example clothing identifying them as being affiliated with their employer. That's a tough message to give your people. What we're advising is that organizations need to recognize that these are extraordinarily polarizing times. The fact that many large organizations have have come out and made statements certainly give some top cover. But the last thing an organization that's concerned about the safety of its people its business operations and and just generally being able to do its job once is to be pulled into this or worst case to have an employee exposed to violence harassment or anything else extremely treacherous especially for consumer facing brands that use social media influencers in other kinds of surrogates. So we're advising that they monitor very carefully what's being said because the speed with which your brand of toaster can get drawn into this political debate and you can be accused of having some sort of microchip in your toaster that's going to throw the election or or steal a bunch of votes. It's just mind blowing we fast. So incredibly incredibly treacherous times right now. Meanwhile of course Google suspending its political ads ahead of the inauguration. Big tech of course front and center in this whole debate being dragged into the vortex is remain calls it rightly or wrongly Jordan. How do you expect big tech to be responded to from a political persuasion as we head into the new administration. So the one absolute certainty here is that if anyone thought that the discussion about Section 230 and the state and federal antitrust discussion was going to end with the new administration they are wrong. Whether or not tech is doing the right thing by these platforming individuals they are certainly assuring that whether or not they have monopoly power and what their role is in the public square will continue to be a source of discussion for time for time to come. All right Jordan great to get your thoughts there. That's Jordan Strauss Kroll managing director and former staffer on the National Security Council. And just a reminder to all of our viewers there we will of course be bringing you any vote there on the impeachment process. If you have a Bloomberg terminal you can actually follow the proceedings on live go or in our blog T line. Coming up we're gonna talk about Intel swansong. Bob Swann out after two years. Pat Belt Road coming in and that's just in. The local shares up almost 8 percent. More to talk about it next. This is Bloomberg. All right after two years at the helm of Intel Bob Swan been replaced by Vin where CEO Pat Elsner who's returning to the company that he left more than a decade ago on a rock ranch. A Bloomberg intelligence who covers his company is joining us right now to talk a little bit more about what this means on Iraq. Let's start first with Bob Swann. Two years there when he came in. There were a lot of investors a question whether he was the right person for the job. What happened over those two years. So Ramin you look at Intel you know they have you know some manufacturing issues some execution issues behind timelines. So I think you know that didn't go well for him. And you know obviously you've seen DAX what's happened to the stock over the last one and a half two years under his leadership which is why I think it's the big change at this point. Yeah I know that the company you focus in on in this situation is VM Y on Dragon CAC a former Intel CTO in fact and he left back in 2009 went to EMC then became the NYSE in 2012. What did he prove while he was there. Why do you think the investor base likes it so much that is going to take the helm at Intel. You know from my point I put him right up to right next to Microsoft CEO and the software giant. I don't think that is anybody else apart from these two that you know that have done a better job with their respective companies. Go look at IBM are just about five six years ago. SALES were dropping off. Things were not clear as to what the company's going to do. Made me made a couple of acquisitions did some very good deals with a good partnership deal with eight of us. And since then you've seen the stock's done very well. And again did a couple of new acquisitions just recently. So overall I think he's turned the company around. We've seen good license growth over the past few years. Stock's done well. And as I said this is one of the most widely respected CEOs out there. I am sure as your honor on over the last couple of weeks has been a lot of chatter on the markets about whether Intel would start to outsource some of its manufacturing. Of course manufacturing that seem to be the big bugaboo here for the company over the past couple of years. Do you think that Gettelfinger is going to take Intel down that road where it starts to outsource more of its manufacturing to other companies. I think it's so tough to say that and you know to be frank I don't even know if SAC knows that at this point. You got to figure out what to do. But one thing is clear from Intel's point of view they've just not executed. So I mean it's not as if you know that is a lie. Any lack of IP with Intel or or any of those issues it's just that you know just just been behind all the promises that they have made to the street that they were going to deliver. I think that's what the CAC could bring in some more credibility down the road just because you know we have seen he has you know excellent excellent execution record. We want to thank you so much on the wrong round I'm focusing in on. Well the new chief executive will bring to Intel see whether in pieces the downloads of this world of course the activist investor and all ISE therefore on the ramifications of this remain. It's an interesting move overall in what has happened in terms of Bob Swan. He didn't come willingly to the role of chief and chief executive of Cool Now. He was CFO and then promoted. Sort of. Yeah. Unlike many another internal candidate. Yeah. And you talk about sort of how CAC ended up basically getting fired for the issues surrounding there. And Swan was really the guy who did. They just he kind of was handed a difficult job from the start. Look he did his best. And you saw the congratulations there from Dan but we don't get a chance to play it. He basically said that Swan did the right thing stepping aside letting a real life hear someone who really understands this business. Take it over. We'll see how it works out until it's doing alright for now. This is Bloomberg. I'm Mark Crumpton with Bloomberg's first word news House Speaker Nancy Pelosi says President Trump represents in her words a clear and present danger to the nation. Pelosi said in a House speech today that members of Congress and the country as a whole again quoting experience the insurrection that violated the sanctity of the people's capital and attempted to overturn the duly recorded will of the American people in the presidential election. The president must be impeached and I believe the president must be convicted by the Senate. A constitutional remedy that will ensure that the republic will be safe from this man who was so resolutely determined to tear down the things that we hold dear and that hold us together. And Speaker Pelosi added that President Trump has again quoting repeatedly lied about the outcome of the election that he lost to Democrat Joe Biden and Mr. Trump has quote sowed self-serving doubt about democracy and unconstitutionally sought to influence state officials. To repeat this armed rebellion against our country. Her comments today came as the House prepared to vote on an article of impeachment. Mr. Trump's son in law and senior adviser Jared Kushner stopped an effort to sign up the president on fringe social media platforms such as gab and parlor after Twitter suspended the president's account last week. Bloomberg has learned that Mr. Trump's social media director Dance Casino also objected to the alternative. Social media sites are popular with political conservatives. Parlor as accused was accused rather of allowing Mr Trump's supporters to plot further violence. President elect Biden has named former United Nations Ambassador Samantha Power to head the Agency for International Development. Mr Biden also said he would make the post part of the National Security Council. That's a sign his administration will emphasize the role of development in maintaining security. Power is an immigrant from Ireland. The UK is seeing its deadliest day since the Corona virus pandemic began. The country posted fifteen hundred sixty four deaths today. England is in the second week of its third lockdown. It comes as the country's hospitals are filling up with Govan 19 patients. Prime Minister Boris Johnson says there are early signs that current measures are working but he didn't rule out tougher restrictions. Local news 24 hours a day on air and on Bloomberg. QuickTake. Powered by more than twenty seven hundred journalists and analysts in over 120 countries I'm Mark Crumpton. This is Bloomberg. This is Bloomberg Markets close on Romaine Bostick and I'm Caroline Hyde Taylor Riggs taking the day off today but of course commodity clothes never takes the day off. Not next. Crude futures right now settling in right around 50 to ninety one a barrel. We had the EIA data out a little bit earlier. They did show a pretty big draw down in crude stockpiles about three point two million or so. But what we did see was an increase though in bills of gasoline and distillates. You mix that all together and what you get as a down day here remember we were settling above fifty three yesterday. Also seeing gasoline prices take a little bit of a dip here in futures market. Gold pretty much stuck in a tight rein today kind of at the mercy right now of the direction of wherever the dollar is going to end up going here. And look at that corn corn. It continues on a tear here. We've seen corn and soybeans Caroline continue at those seven year highs. And we should point out of course we're looking at right now what's happening here on the U.S. exchanges. Bush point over and China on the dye line up 10 straight days over their phenomenal run that we've been seeing for commodity prices. So if you want inflation you're going to find it in corn. I find it in food. Indeed. Meanwhile we want to remind our viewers that well if you go to Bloomberg terminal type in live go you can see the impeachment proceedings in the House as it continues under way before we get a vote cast. You probably got about 20 minutes more of this at the moment making speeches on either side of the House but the impeachment proceedings continuing in the House on Capitol Hill. And we will will bring you any latest headlines. But if you want to view it live go to the terminal type in live go. Meanwhile let's turn now to our ongoing series on the unequal recovery. Going to talk about women in the workplace now or lack thereof. In the U.S. women accounted for all of the jobs lost in the final month of 2020. One hundred percent of the jobs lost in December because women according to the analysis from the National Women's Law Center. Now this has been eroding. Recent improvements and of course capping a devastating year when nine point six million jobs were cut from the economy. Our next guest is an expert on policies around economic security poverty and women's issues. Nicole Mason she is president and CEO of the Institute for Women's Policy Research joins us now to discuss. I mean so startling what happened in times 140000 jobs lost in December and where that all came from. Nicole remind us of why we are seeing an overweight and out balanced issue becoming of the women what why they hit so hard at the moment. So Caroline Hyde you're absolutely right in terms of the number of women who have fallen out of the workforce just last month. And the reason for this is that women are overrepresented in the hardest hit sectors and service sector leisure hospitality education and health care services. Those jobs those sectors have been hardest hit. And women particularly women of color make up 26 to 28 percent of those working in those hardest hit sectors. So I'm curious though then what does this say Nicole here about some of the gains that women had made in the employment space for so many years. I mean we talked a lot about not only the increase in women in the workplace but also about some of the wage gains. And I'm curious are the jobs that they gained over those past few years were they so fragile that they couldn't withstand this recession. That's exactly right. So at the beginning of the year we were celebrating this milestone where 50 percent of women were 50 percent of the workforce was women. And all those gains were wiped out in a matter of months. And again what that tells us is those jobs were very insecure and very fragile jobs with a little job flexibility little job security. And those were the first to go when Wednesday and home orders were implemented. Nicole I think what you reference so well is the intersection issue here. The fact that a lot of it is women of color as well. And it sort of breaks your heart to think that back in the 1960s Maya Angelou was writing about the issues confronting women of color in particular black women. And we still haven't managed to tackle it. And we're therefore policy cannot go to ensure that this doesn't keep happening every time we hit an economic speed bump. Hopefully never as devastating as this one. It's always this fragile nature of women in the workforce and black and Latino Latinos women in the workforce. That really hurts. Yeah. So even in 2008 the Great Recession women of color were disproportionately impacted by foreclosures and a bit of economic downturn. And still many of them are still recovering from that economic downturn a recession. And so this time around what I'm hoping is that when there's a big robust recovery package that comes down the pipeline in the new administration that I'll send to them the most impacted. And during this economic downturn which are women and particularly women of color and making sure that we have targeted programs targeted programs that also emphasize education and training because again labor segmentation isn't real was a real issue during this downturn. And so we know that there won't be a one for one recovery in terms of jobs. So many women will have to upscale return to school get some education and training so that they'll be able to enter the workforce. How much does child care and the need for that factor into this. That's an excellent question. What we know is that from our research but also the data that you just highlighted earlier at the top. Child care is a major and chief concern for many women who have fallen out of the workforce more and who at this point are seeking employment. Between August and September. Eight hundred and sixty five thousand women dropped out of the workforce. And what that tells me is that that is the time when schools are set to open. And because they didn't open across the country many women had to make some tough choices. It's been interesting looking at the different responses to Kovac globally. The UK has been forced to shut its schools now but really Europe front and center put the privatization on keeping schools open. Whereas in the United States that wasn't quite the case. How much you think that fed into this. How much would you like to see a focus on education going forward and indeed how this can support the next generation of women coming into the workforce. Yeah. So at the beginning of the pandemic the focus was really squarely upon small businesses and making sure that they were OK. And there was not a lot of attention that we paid to schools cut school closures and the impact it would have on women's participation in the workforce. It wasn't until women began to drop out of the workforce in record numbers that we'd Michael Barr began to make the connection between school closures daycare closures and women exiting the workforce. So again you know we have a lot of catching up to do and we also need a federal and state level strategies to figure out how we will you know open schools and make sure that even in the schools open that women have a clear pathway back to the workforce. And you know right now we just don't have it. So I'm hoping that the next administration really rolls up rolls up its sleeve and really figure out like how do we address the care issue address the you know the the lag now the tremendous job loss by women um during the pandemic and making sure they get back to work and and. Do you have any confidence then that there will be a shift in the way the federal government approaches this this year. Well I'm really encouraged by many of the the proposed appointments. Heather Shea Cecilia Rouse those are really great appointments who really understand you know the challenges that women face in the workforce. And I think Biden himself understands working women and their needs. And so I'm really hoping that between policy and think think tanks like ours and some of those appointees that we you know we will have a definitive strategy to really address this deepening issue. All right Nicole great to get your thoughts here. That's Nicole Mason. She's president and CEO of the Institute for Women's Policy Research. And be sure to tune in daily to more of our deep dive into the unequal recovery. All right. We're going to go back now down to Washington at some point today. Within the next hour we are expected to get that vote on the impeachment of Donald Trump. Of course it would be his second impeachment should this actually pass the House of Representatives. You're seeing that live on your screen there. We'll be back with more coming up after the break. This is Boomer. Now as a co-founder of CAC Financial Services John at Two Sigma. David SIEGEL understands well how to use technology and data in the service of growth and innovation. But when he looks ahead to the next big risk he worries these sophisticated tools might not be designed to build a world for humans. He spoke with reflection on IBEX. I am quite concerned about the impact of the changing nature of work on over level overall human the human experience. Let's call it the human experience. Well one of the things that you write said to me before was that you don't believe we're building a world meant for humans. What does that mean. Well that's what I mean by the human experience. We are supposed to be building a world that we like. We know everything around us is for the purpose of of of us. We want to have an enjoyable life. We want to live in an environment that we find pleasant. We want to have rewarding careers. We want to have an education that is enlightening. There's all these wonderful things that we can create that will make our lives rewarding and enjoyable. But that will only happen if that's exactly what we're focusing on doing. If you were advising a government official or a technologist here what are some of the things that could be creating a society that is more meant for humans. Look I think it it really does have to start with having better metrics for trying to gauge. Are we happy with our society. GDP for example is often the metric that people focus on. And if GDP is going up then a lot of people would conclude that we're doing a great job. But I think that GDP is an overly simple measure. If just one number and quality of life is not necessarily measured by in fact it quite is not exactly correlated with GDP others. You know it's really quite a different story. In addition GDP isn't measuring how the rewards are actually divvied up. You might have very inequitable growth. And so you know at the very least I think everyone can agree that as society evolves into something much more influenced by technology the benefits really have to go to a broad range of people that can't just go to you know a very small minority of the population. Do you have any suggestions on new ways to start measuring the success of our society. Well there it turns out that how society is doing just like how a business is doing is very hard to capture in one number. Ultimately there are a lot of different things that you would actually need to measure. You get a picture a snapshot of how we're doing things concerning health things concerning even. You know a lot of people don't like to become so touchy feely. But just measurements of happiness and satisfaction. We need to to also measure how how much you know how fairly things are being divided up among people. So the short answer here is that the measurement of the health of a society is a very hard problem. And because it's a hard problem people have tried to oversimplify it down to one or two numbers which I think is quite an appropriate. All right. David SIEGEL there are two Sigma co-founder and co-chairman speaking with our very own Sonali Bostic a little bit earlier. All right. Time now for Your Business Flash headlines. I want to start off with the Trump administration set to unveil last minute changes to Fannie Mae and Freddie Mac. It's going to allow the mortgage giants to remain retain significantly more capital. But many of the thorniest issues of course on releasing those companies from federal control are going to be left to the Biden administration. And investors are questioning whether Alibaba can pull off a jumbo dollar bond offering in the coming weeks. That's because of the uncertainty around co founder Jack Ma. Plus the Trump administration could still ban investments in Chinese securities. Alibaba looking to sell eight billion dollars in debt. Meanwhile Dow Jones reporting the U.S. government is expected to let Americans continue investing in Baba 10 cent and buy NBN by not taking any chances during the presidential inauguration coming next week. It's canceling existing reservations in the Washington D.C. area during inauguration week. And it will prevent new ones from being made. Plus NBA B banning people it says are associated with hate groups or otherwise involved in last week's siege of arduous camp. And those are your business flash headlines. Caroline meanwhile remain. We got to get into our Stock of the Hour GameStop. Well it's got a new life in the persona of the Chewy co-founder Ron Curran who has been taking a big stake and joined the board beanbags Dave Wilson. He joins us for more. Check it out. How much of this beer over the last two days. Oh absolutely. I mean this has been quite the week. You can understand if GameStop says stockholders are a bit shell shocked at this point but they've really been through the wringer. You go back. This is a stock that dropped six years in a row. You know as a business Shays really people stopped buying video games at stores bought them online signed up for subscription services. Then last year the shares tripled. And the games really started at the end of August which is when Ryan Cohen who is the co-founder of Chewy dot com started investing in the company disclosed a stake through this company RTS Ventures. You know he's now the second largest shareholder with about 13 percent ownership of GameStop. But only Fidelity which has about 14 percent across its funds is a bigger investor. Now Cohen's been pushing for change at the company came out November call for a strategic review. And then Monday he finally got a seat on the board along with two of his allies. And so you saw the shares run up that day by about 13 percent. Little changed yesterday and today they just took off. And to really understand why you have to look at how investors had been betting against this company specifically short sales. Well that's 71 million shares at the end of last year sold short. And that was more shares that were outstanding. It just goes to show you how things can change on a dime when you have a stock that people are betting against that all of a sudden is doing a whole lot better. And that's certainly GameStop. Yeah. GameStop. They'll be interesting to see if he can mold this into a new chewy. Seem like completely different business models and products there. Dave Wilson our Stock of the Hour. GameStop up 67 percent. You know what else is up high today Caroline a firm up about 95 percent of course this is the new IPO. The new stock on the street shares of the online lender sharply rising in their trading day. You absolutely want to talk about it next Caroline. That's all coming up after the break. From New York and London this is Bloomberg. Impeachment proceedings still afoot on Capitol Hill. The House continues to debate the motion of course and many expect that it will pass the House but then we're on to the Senate and how quickly. We'll keep abreast of all things impeachment. Vote for you on my TV. But if you want to see it live go to live. Go on to be back Tamminen. All right Caroline we're going to switch from that over to our top calls. These are some of the movies on the back of analyst recommendations today. Are off with General Motors getting an upgrade to buy over at more of the analyst says all the costs associated with trying to build that electric vehicle well that can be offset with that partnership with Honda as well as some restructuring that the company had already started in its North American operations. Shares here up two point seven percent at a record high. Home Depot upgraded also today from neutral to buy at Guggenheim with a 3 10 price target. The analyst citing the closing of the HD supply acquisition. That's the company's three billion dollar debt offering as well as well as some recent moderation in valuation. Shares here down fractionally on the day. And. Let's take a look at Twitter. Twitter getting an upgrade today from to buy from neutral over MKM Partners. Sixty dollar price started. The analysts they're bullish here saying sentiment towards Twitter shares being too negative and expects a lot of headwinds to reverse for the company. Twenty twenty one shares of Twitter up about seven tenths of a percent. And Caroline. Those are some of our top calls. All eyes on big tech. All eyes on the latest IPO of course making headlines. Shares of a firm soaring in that trading debut this afternoon. I mean at one point about 90 percent the installment lender raising one point two billion dollars after pricing above its offering range. Joining us now from ISE Crystal. Say Zee talk to us Crystal about the move in a firm. We know that the IPO is have been popping at the moment. What do people like so much about this company. In many ways we wanted a very similar between 20. Last year we saw every MP saw Dash also. Also jumping more than like 90 70 percent on the first day. And this is not any different a firm. It's a company that's founded by a co-founder of PayPal. He has a track record of building companies that profitable. And here we are. We see a firm as a financial services company for shoppers. They want to pay for their shopping in general. And then we don't even like this so much because they actually have benefited a lot from combat. One of their biggest products on the platform is Palestine. And we know that Palestine has done extremely well because everybody everybody's working from home. Nobody is going to the gym. And a lot of the pelican payment that was talked down through a firm. So we've seen that you know benefiting a firm. And today they see there to probably debut as proof that investors really like this company. Yeah. Okay. So basically they're a creditor here. And I am curious as to how we're valuing this company. I mean we call it fintech but at the end of the day this is basically lending money and hopefully hopefully you get paid back here. Is there any concern here about the quality of the customers that they're targeting. It's so they have different types of purchases. Not every purchase is like a pallet on. Say that you can pay for smaller purchases in installments. So like in this day and age where we all shop online like there are many things that you can do. And when we spoke to the founder he told us it's more like a visionary. He's doing this company in person people. He's doing a long vision and profit although I mean that's not a business. And listed company needs to be profitable. Point is right now he is talking about the vision of providing the service. All right. Vision over profit. That seems to be the story Chris will see there. Of course the hot stock of the day. A firm here sold at 49 opened at 1990. Right now at ninety six. Seventy two. The rest of the market. The broader market ain't doing that well. It's doing OK. The S & P 500 is up about three tenths of a percent here. The VIX there is on the screen. Dollar strength. The yield on your 10 year. Interesting. One point 0 8 6 6. We'll be back in a moment. This is Bloomberg. We're counting down to the case just one hour left on trading on Caroline Hyde and a mixed bag for stocks today. Big tech helping to keep everything above the waterline arm Romaine Bostick. And I'm Sara. Pontiac Taylor Riggs is off today as our main mentioned mixed bag for stocks today. But the S & P 500 well it is higher with less than an hour left to go higher for a sixth day in seven. But there is a defensive tilt. Your gainers today in the lead. Utilities real estate. That isn't something we've seen of late. Tech is up there too. Meanwhile your cyclical areas of the market energy industry industrials materials they're at the bottom. Another way to look at this though is your bond proxy plays. Yields are actually lower today and that's helping your bond proxies. We'll take a look at some of the individual movers your two stocks at the top of the leaderboard that normally you never see. At the top of the leaderboard General Motors trading at a record high and record of course I mean that post bankruptcy high here. Analysts turning really bullish here. Mary Barra strategy here with regards to Evie's and the potential to control costs with regard to that restructuring of some of the North American operations and that partnership with Honda. Analysts seem to like that. Intel of course getting a huge bump today. In fact having the best day here since April. Of course a lot of people really are hot on our pack. Elson you're coming over from GM where back to Intel his home where he started a firm holding your IPO. Forty nine was where they sold 90 90. That's where it opened. It got up to 1 0 3 right now sitting at ninety seven NIKKEI home. Interesting story here because of course Caroline this was one of the worst performing among the major homebuilder stocks last year. They surprised with their earnings massive growth year 40 plus percent year over year. A lot of activity down in the southeast. And analysts now jumping back on the CAC home trade Caroline. I mean while it's a sea of green isn't it. Every single certainly appointing two. And this is what really takes me. Of course we've got to take a step back amid a health pandemic amid political crises in the United States and Italy. The market rises above it. Ryan known in former financial intelligence Zephyr. Well he writes it's all about resiliency. Here right now. And equity markets continue to overlook and not be fazed by what he calls all the chaos that's out there. Indeed it is quite phenomenal the way in which we manage see markets power to record highs. Let's go to NYSE of BOVESPA who goes with us multi head of Multi Asset Strategy at Columbia Threadneedle Investments on which he always great to have you with us and talk to us about the sentiment in the market at the moment. We had Sara talking about the fact that slightly defensive tilt today but still stocks managed to push higher but not your usual reflation trade. The small caps pushing down a little bit. From your perspective how how much is this rotation got legs. Hi Karen. Thank you for having me. I think the rotation does indeed have some more legs from my perspective. Markets have been digesting the news of the Georgia Senate elections the last few days and you have seen that in a pretty sharp move in great. Over the past I would say 10 days or so followed by the reflation trade very much of the same trade rate slightly going higher. But you're seeing aside from today's move that you mentioned if you look at the year to date moves and indeed fourth quarter moves it's been a story of rotation into stocks into more cyclical components of the US market in the emerging markets into international stocks. The last couple of days I mean all the talk here was about the upcoming taper tantrum that everybody was going to throw a fit. The Fed would basically finally sort of pop the bubble here. And then of course you know we heard from a few members of the Fed basically kind of walking back some of their earlier comments we heard from Bostic and Kaplan. The general sense here right now seems to be the Fed even if they wanted to really can't do much movement at least not anytime soon. Right Roman and I think the key point is that the Fed doesn't really want to move at this point. It's too early in the recovery or in this cycle. Unemployment rate even by your standard measures the U3 measure is up nearly 7 percent. And then from sort of the broader measures that the Fed has said they would look at which includes labor force participation the prime age employment all those measures are still pretty elevated. So very much if you focus away from sort of this 20 move up in the tenure you would really question why would be even thinking about thinking about the rate move at this point. We sort of have to see all that improvement in the economy actually come through. The one that markets are anticipating actually has to happen before we can see the Fed actually talk about any change in their stance. And I expect they will remain accommodative for a much longer time than we had anticipated at this point. You mentioned that 20 basis point move in the 10 year albeit off a very very low base still on a monthly basis that was on track for the largest move in the 10 year since early 2018. At what point though is it possible if the 10 year continues to move higher yields continue to move higher. That we do see a taper tantrum like market reaction. So that is actually an excellent point. It is very much similar to the sort of moves we saw in the fourth quarter of 2018. But do you see that there wasn't really any follow through. In other part of the cross asset landscape it was very much limited to this great move. It was a little bit of a wobble but not enough because in 2018 we were in a very different growth and inflation environment. Fed was actually hiking rates. There was decent growth 3 percent growth if I remember briefly. Because on the back of the tax cuts we are nowhere near that at this point. So in my mind we need to focus on real great. Right now the rate move has been pretty much explained by what's happening on inflation expectations and what's happening on the term premium. But we need to be really focused on what happens to real rates. And if you see real rates picking up then there might be actually a story around taper tantrum. NYSE how much do you need to really focus on the dollar as well at the moment. I know you're someone who often talks about the opportunities emerging markets. We've had a few days of dollar strength. Does that matter. I think it matters very much in terms of the cross dollar currency that you're focusing on. In my mind I think we continue to like emerging market feeds. We think they are going to do well both in local terms. Ahmed Dollar translated counts also because I think EMI Fax is going to have a good year where I think we may see some moderation. Caroline Hyde is in sort of the crosshairs with euro dollar or euro yen or euro sterling. Where there might be a pause. But I think from my perspective this is a period where EMI effects is going to outperform. And when I have to get your thoughts here on the madness in Washington right now and whether you pay or how much attention you pay to any of it at all of course we are awaiting a vote on the impeachment of President Donald Trump in the House of Representatives. Typically history seems to say that these types of events tend to have less of a market impact than maybe we make them out to be. He has remained definitely it's what's happening in DC is something we are keeping an eye on. But what I would point out too is that from the market's perspective the election was over in November. The results were very clear and there was no question. And you saw all the signs of the markets and everywhere pretty much else in the economy point to the fact that we have a new administration and likely to happen in January. So the reason you're seeing sort of markets look through these tragic events in D.C. are really because this is enormous amount of political theater at this point. You know very unfortunate from what from my perspective. But you know from our from from the market's point of view we know there's a new administration coming on. And to some extent the rates and the equity markets and the credit space is focused on what would be the policies of the new administration and how will those policies impact markets going forward. Calm measured perspective it's very welcome here. We thinking on what to buy who Luna goes head of Multi Asset Strategy Economic Threadneedle Investments. Great to have some time of. Stay well. Meanwhile coming up impeachment. Round two as the House prepares to vote. We discussed the possibility of a history making. Second impeachment of the president just days before he leaves office. Of course. Next up getting that shot. We speak to the Medtronic CEO Jeff Martin on how the company's outlook for this year is different now for the vaccine rollout has begun. And Intel's swansong. We've got to say why the chip makers think now is the right time for the leadership change at the CEO Bob Swann steps down. Well he said these as of February 15th. All that and so much more coming up this bring back. Welcome back to Bloomberg Markets Clothes 46 minutes ago in this cast trading session here on this Wednesday afternoon the S & P 500 open higher move lower and then clawed its way back up. You kind of call it relatively flat on the day here. You're seeing big cap tech take the charge here but really utilities real estate. Once you get beyond that most everything else is in the red. Not much action here in the dollar space. Remember we did see dollar strength earlier today but a lot of that had to do with some of the selling we saw in some of those commodities currencies like the Canadian and Australian dollars there. Your tenure yield their second day rebound going on right now in the Treasury market. Flip up the board the individual movers Dow Dupont. Interesting move lower here getting the downgrade today saying that 40 percent cent rally that we saw a little bit too much big lots came out with earnings disappointing those shares down. And we talked a little bit earlier about GameStop. Interesting moves in the get in the game space. Of course those shares up 65 percent. Big shorts was there. But take a look at E here losing the exclusive rights to the Star Wars video games Caroline. I know you're a big fan. Ubisoft over in France now getting the rights to make those games. Fired up. Heartbreaking. As we speak remain. I'm not a gamer. It's gonna be sad but we're gonna turn our attention to something much more serious now because another ongoing discussion is of course Kobe 19 continues to rage worldwide the foremost minds and health care biotech pharma. Well of course they're gathering right now virtually for the JP Morgan annual healthcare conference. One executive in attendance is Jeff Mathur CEO of Medtronic a global provider of medical technology services solutions. He joins us on the heels of his conference presentation on Monday. And Jeff course 260 billion dollar company. We love speaking to you because of your global presence because of the wealth of things that in products you provide heart valves pain management also at the coalface of coping with the ventilators that you supply. How are you seeing the vaccine rollout right now. How optimistic are you as I sit here in the UK with record deaths. Look we definitely see the light here. I know the vaccine rollout has been a little bumpier than people would like to see. But you know they're making some changes. We've talked a number of retail outlets over the last couple of weeks that are getting into the game here with the vaccine. So we think that this is going to improve and speed up. And look we're seeing the light at the end of the tunnel in addition to the vaccine. You know again I've mentioned this before on the show the hospitals the frontline health care workers and the hospitals have done just an outstanding job to innovate the way they provide care for patients. So independent of the vaccine they're able to effectively treat these Cuban patients as well as keep going with what they call elective procedures which in my mind aren't so elective things like heart attacks and strokes. And they've just done an outstanding job. I talked to a CEO just yesterday that explained to me basically through treating covered patients more effectively and treating them remotely it's almost like they've created a 500 bed hospital out of nowhere. And that's how they're kind of coming out of this coded crisis faster than many people anticipate. But Jeff there has been a considerable drop off in medical procedures that aren't related to the Cove IT pandemic. A lot of us have put off routine medical care either too afraid to go see our doctors or can't even get an appointment here. How has that affected your business right now. And when did you expect to see a resumption of maybe a normal health care activities going forward. Sure. You know prior to this second spike which which which in the last couple of weeks here we were saying we would have back to our normal growth for Medtronic in that April timeframe April 20 21 and we still expect that although I you know I have to admit we talked about this about this this week at the J.P. Morgan conferences that we did see a flattening of art. We were coming back. Our recovery curve was going pretty well. And it flattened out a bit in December and early January due to the increased hotspots. I'll call them in the US and Europe. But again we're optimistic that this is short lived for the reasons I said earlier with how hospitals are handling it. And then you've got the vaccine coming. So we're still saying that for. For us we believe we'll be back to our normal levels of growth in that spring April timeframe of 2020. So moving forward then where's the focal point for business. Go back to business as usual focusing on areas of growth that you were folks focusing on prior to cover 19 or has that has this really just shaped the landscape completely. And now do you have other areas of focus that were born out of this crisis. Well I think our our primary focus will be going back to these massive unmet health care needs that are like I call public health crises that we have solutions for things like uncontrolled hypertension. We have a therapy that is in its final stages of a multi-year clinical trial that we hope to get the data back. We will get the data back and hopefully it will be the positive data this year or new treatments for irregular heartbeats like arrhythmias that people so many people suffer from around the world especially with the aging population that we have around the world. And today's first line therapy of medicine is brutal on patients. And we have a new therapy that just published some data in New England Journal Medicine that shows that it's actually better than pharma without that brutal side effect. So I could go on the list goes on nerd genitive diseases like Parkinson's pain. We've introduced some new therapies there so we're gonna continue to focus on that. But but what Kolbert has changed is the nature of how we treat patients. And it's much more I'd say remote than than it was before. I'll take the pacemaker business for example prior to Kovic. We would have a Medtronic representative in the operating room with the physician as that pacemakers implanted. So we program it properly before it's implanted in the patient. Then on a quarterly basis the patient would come back to the hospital the physicians office to get their device checked and we would be there again to to make sure that device is working properly maybe reprogram it to adjust it. And then if that if that person unrelated to the pacemaker had to go to the operating or the emergency room maybe they twist your ankle again. We would have to go to the emergency room and interrogate that pacemaker before the hospital would work on that patient. And now all of that is being done remotely through cloud based technologies. And so that is really change the game. I think you're going to see that in many more therapies across healthcare. Tech meeting very much with medicine your business. Talk to us about whether that's narrowly focused on from an organic perspective is that Mohammed high on the agenda at all. Yeah sure. I mean look we're seeing our pipeline animatronic is the best it's ever been in 70 years. But on the same side we're seeing more opportunities because of the advancements in technology microelectronics and a better clinical understanding of things like the central nervous system. We're seeing so much opportunity to invest. And one way to drive innovation that is in one way to do that is our R and D. But another way is to augment our research and development efforts with what we call tuck in acquisitions. And we did seven of these tuck in acquisitions last year for a total of one point six billion dollars. These are earlier stage companies that in many cases aren't on the market yet. And it's a way for us to accelerate our innovation. And I see more of these on the horizon from. Well we'll keep abreast of them. Jeff Martha always great to have some time with you. We thank you. Medtronic CEO Meanwhile of course we return to the metrics that happen on Capitol Hill. We are of course within the ongoing debate on impeachment proceedings currently the second time that we could see Trump impeached. Of course as president House preparing for that impeachment process. We stick with those debates the speeches and we bring you abreast of all the news. Tune in live. Go this bring back. And time now for Options Insight where we're looking at why the markets well they aren't reacting much to the impeachment news and the upcoming vote. Today we are joined by Alan Nachman. He's over at Gaurav Financial. Alan. Well we look through history in the past. Nixon Trump's last impeachment Clinton. We see a mixed bag. But why no reaction this time around. Well as a trader you want to look at this and this is equally as important as what happens is what doesn't happen. So the fact is that even with last week's action volatility didn't didn't move up much at all. So numerically the markets were nearly as concerned. We'd been straight up in the stock market and that that trend continues and not much has changed. It still seems that money continues to flow to stocks in a chase for yield because there aren't any choices with interest rates this low. You of course do come to us with a trade today though. And this on the back of big tech. Big tech has been underperforming of late of course. Yes. The Trump administration has been coming after social media companies. They've been in the political chaos. But you're looking at Apple actually lower. So far this year down five percent from a record. What's your play. Well exactly. That's it. It's all about Apple. No Apple. I wouldn't classify big tech. I would classify Apple as America. So if you look at the index the tech top 100 it's 90 percent off its lows from last last March. Apple has stalled. It's about 5 percent off its recent highs in just the last two weeks. So it's coming back to the breakup point. If you look at the Apple chart it trade between one and five and 125 for September October November and it broke out in December. That breakout Target's one forty five. So I think it's been a laggard. And for me you know I continue to believe in Apple come hell or high water. It's been a performer. And like I said it's a very it's a very much a barometer of America. All right. So we have about a minute here. But Apple certainly does represent growth has been a lot of talk about the rotation from growth to value lately. Do you believe then that growth going to take the lead once again. Not too long from now. Oh absolutely. Apple made more money in one quarter pure profit than most companies make in a decade. Look at the February 120 calls was below that key level of support. It's trading at 13 right now. It's about eleven dollars in the money. It's got seventy five. Don't that you need to act like the stock. So the stock's up to substitute a strategy. It's like being long apple from 120 which I'm very very comfortable with. If we keep it at 145 level that optional but double in value. All right. Well I'm taking a look at Apple today trading higher one and a half percent. Amazon also up one and a half percent. But thank you to Alan Zuckerman for joining Options Insight today. This of course you're watching Bloomberg as tech as I saw this morning on impeachment. Just about half an hour left in this trading day full of politics this is counting on to the close and Caroline Hyde Romaine Bostick. And I'm Sarah Pontiac in for Taylor Riggs. Well T minus about twenty seven minutes until the trading day does close. This is how it's shaping up. Defenses at the top cyclicals at the bottom. That is a complete change from what we've been used to really since the past two three months or so. At the same time we do see yields lower. That's also affecting your bond proxies utilities higher real estate higher tech also higher lower yields. Well that helps there too. All right. Let's take a look at some of the individual movers. And we'll start with the new kid on the block. Your firm holdings pricing last night going public today on the market today. Ninety nine percent from the open at ninety ninety. Boston beer. Interesting story here. We got to get Vivien Azer back on. Interesting note out here on Boston beer. Some concerns here about a slowdown in the seltzer market. Remember this is the maker of Sam Adams beer. But they have made a huge push into the hard seltzer market. Vivien Azer basically saying that market appears to be seen slowing growth. Some concern here about that push. Boston beer may Chewy doing well an upgrade here on the day. Seventy seven percent here on the dash. Their price target upgrade here on the day not an upgrade on the stock. European be on fire today up about 6 percent here. Keep an eye on this. This really has nothing to do with the other reason here. BNP is in the news because of what's going on in Washington. This seems to be a broader bet going on right now about a travel rebound than a lot of people playing Air B and B as the best way to do it. Caroline. Meanwhile remain out returned to the other. That's why I Bambi's in the news. What is happening in Washington. And of course we're going to chop everything up running back. And the Bloomberg terminal does show you the probability of course of impeachment. And it feels as though it's deja vu as if it's 20 19 all over again. The probability that Trump completes his first term is dipping once again. The probability now down to 81 percent is exactly the same thing back in 2019. So we'll see of course how this continues to basically not really erode investor sentiment for the time being. All right. Yeah an eye on the markets and of course an eye on Washington eye on politics going on right now on Capitol Hill. A debate over those articles of impeachment are scheduled to be voted on any minute now. Joining us right now to talk a little bit more we want to bring in David Westin of course the anchor of Balance of Power as well as Wall Street Week right here on Bloomberg. David look I mean we're a week away from a new president being inaugurated. What is the likelihood not only that Donald Trump the current president could be impeached but he would also be removed before January 20. Well the likelihood impeachment that is to say the House voting at this hour is almost 100 percent at this point. I don't think there's anybody who thinks that that won't happen. It won't happen even in the next hour and a half or so. So know that as they wind down the debate they have about 10 minutes left so to speak. They have a vote after that will take about an hour and 15 minutes. The prospect of a conviction in the Senate which is what is required to remove office and ban him for running for federal office. Again the likelihood that is I think is quite low. Most people will say they need 17 Republican senators to switch over and vote against him. And most people can't get to that number. David talk about the ones that have switched over. In particular Liz Cheney taking a seat on the number three House Republican Pete animosity growing within her party for her for this stance. But what does she signify for how Republicans are sort of at war with themselves. Well she signifies first and foremost a deep division within the Republican Party. There are some people watchers saying there are actually two parties there now. One is Republican and one is Trump. And they are to some extent at war with one another. They don't agree with one another. And Liz Cheney of course the daughter of the former vice president made a decided break. She also signifies sort of sending a message to other Republicans that it's OK. You don't need to be too afraid of Donald Trump any more as he leaves office. And you can say what you really think. So what are the true and largest implications here. Say President Trump is hypothetically impeached for a second time. What does this actually change considering inauguration is just a couple of days away. Well I mean it changes things for Donald Trump and it may well change things for the Republican Party. It was reported at least that Mitch McConnell majority leader was if anything sort of open to the possibility of a conviction not just impeachment and conviction because he said that will put him out out of the party once and for all and he's gone. But your question though more broadly is what is the Biden immigration going to be able to do or not do and how is going to be affected by whether there are impeachment proceedings going forward or not. President elect Biden comes in with a pandemic. We have to remember we still have covered 19 pandemic that needs to be addressed. A lot of issues with our economy. And he has a full agenda. He wants to pursue. And the question is what's the best way to get that done. He's very concerned I think about this getting in the way of that. So if a Senate trial does actually happen then do you expect that that would actually cause problems not only just him getting it done but creating I guess that message of unity that he seems to be pushing that a lot of people say he wants to sort of wrap his arms around. You know it's funny you say that because if you listen as debate as I've been listening through the afternoon that's basically the back and forth that's happening. You're having the Democrats all saying we must do something. This is outrageous. This was an attempted insurrection. The president really fomented. And you have the Republicans saying wait a second you're the ones who are talking about getting together and be bipartisan being united. We need to unite right now. And what you're doing is going to divide us more. So that is exactly the debate that really is going back and forth. Nobody. I haven't heard anybody defend what President Trump did. Meanwhile House majority leader is closing for the Democrats at a moment David. So we're almost at the end of this particular round of debates but the debate within corporate America right now yet more and more names Cisco the latest Nike as well coming out not wanting to support particularly lawmakers who seem to have been trying to vote against what the election told us. But how do you think this has put so many corporate leaders in a bind. Well certainly it's on their radar screen. And you see an awful lot of companies right now saying either we're going to review our process or we're going to suspend our contributions for political campaigns until we actually have an understanding. As I talked to David Rubenstein our colleague who does peer to peer earlier today about this very thing because he knows an awful lot of corporate America. And the question is and I don't know that any of us know the answer yet. Is this a temporary thing where they make a temporary adjustment or will there be a longer term review of how close you want to get with any administration whether it's Republican or Democrat no matter what it is. Are there certain risks to your brand when you really closely associate. And as we recall going back to the beginning of the trouble illustration he really reached out to a lot of CEOs and all parading in every day to the White House going to sit on various panels and things. A lot of CEOs were really quite close apparently least on TV to the president. Suddenly gonna stuff is a very long time ago. David Westin NASDAQ balance of power and a. The Wall Street Week. Great to have his expertise on this show. Meanwhile Neil from London almost the close bring back. Corporate news for you. Two years as chief executive of Bob Swan is being replaced at Intel by BMW you Pat. Going out now who of course is returning to the company. He left more than a decade ago. Joining us now for the analysis new street research managing partner Pat Federal who is wonderful to have you with us. I mean a man who was the first CTO of Intel left back in 2009 a wealth of experience from engineering the expertise for tech. Is this why the market's responding so well to it. Yes indeed. To be honest in the last 16 months in all conversations I've had with investors DAX name was always the name that was the first in terms of who investors would love to see. I ahead in 18 days. So he has a very strong reputation as we saw with investors of sorts. That's definitely what moves us. So Plaxo is a name. Just so my personal perspective on him as you mentioned until 2009 was a secure thing doing so. He clearly 25 ISE an hour long timer. It gives MS a cricket two years of technological DAX and two year old DAX to make a difference on India. And at the same time. You know Jim welcome back. 28 years almost coming from us from his doctor. He's going through since 2012 AGM where you know the ISE transform into innovative innovations and evolutions of the business. And I think bringing up culture and that's how that kind of outsider perspective. At the same time as the incumbent credibility. They could get you offside. So pure. I mean one of the biggest concerns for investors during the pop swan tenure was this idea that Intel continued to lose ground to MMD. And to a certain extent we now know Apple itself and some of its former customers. There is a sense here that they didn't remain competitive. That he wasn't able to keep up a lot. Obviously a lot of that had to do with the new chips and the manufacturing delays. What is the ability of of Pat to sort of get things back up to speed where it can be a little bit more competitive in this space. Yeah I think it's a very good question when when to go up the road a couple of years ago read to me. He had to think three things to get right. You know refocusing Dale on the car making them more efficient and instantly and then restart the competitiveness of Intel. I think he's done an extraordinary job on the format too. He has really good results by mobile. Previous memory is very very difficult to get that right. And so what he did is he improved the phones governments governments. I think so. I mean I just learned that the same sole accountability of the organization and then on competitiveness in Delhi City Stoke Lights and those things are sound. They are one of the ANC senses. So that gives like a window of opportunity for IMC to take market share. This has contributed to I think being able to withdraw its chips away from us from Intel. And that's the situation where the is today. I things that change if you want to get out of that you need to get the knife down. Right. So you need to be competitive again like tomorrow in 2020 to 2023 but you need to be competitive for the long run as well. And getting competitive for the program means fixing Intel's internal manufacturing. And this is going to take years. And getting competitive in the short term probably means becoming more flexible in being able to Google and outsource function to TSMC to Michael Barr resume. You know there is a manufacturing in order to be competitive on these shots a window of time in some difficult equilibrium. I mean Berman's a team. I've been working on it already for two years. You know you do every subsea and DAX is the ideal qualified to make that happen. And I'm very very optimistic about it. All right Peter great to get your thoughts. Wish we had more time but we're going to leave it. There appear farrago of new street research. Of course talking about Intel those shares up more than 7 percent right now. VM where are those shares down 7 percent. An M.D. of course. Probably going to be the target of girl singer although shares down about 4 percent right now. Keep an eye on the broader markets. Pretty much flat on the day all around. Big tech providing a little bit of a boost for stocks out there. We're going to break it all down coming up shortly. The countdown to the close is next. Macy's cutting out the clothes and Caroline Hyde. I'm Sara Pontiac in for Taylor Riggs and Romaine Bostick. Romaine Bostick not glad to hear it remain as ever steadfast. Let's have a great look at what's happening in terms of the major benchmarks because while the ones we're still managing to tread above water when it comes to the big caps. But it's sort of as Sarah was speaking to earlier a little bit of a risk off tone a little bit of nervousness because it's big tech in the lead. NASDAQ leads up 5 10 percent volumes up 30 percent on the downward trajectory for once in the turquoise remain. This is only a small caps. Yeah they're just small caps in the turquoise. All right let's move from the turquoise to some of the individual indexes out there. S & P 500 utilities. That's pretty much your leader of the pack. I dare any of you to name more than three utility companies here. Yes that's pretty much your percentage gainer on the day. Duke Energy up about 3 percent as well. The fans getting a bit of a beard. We're seeing big cat to do their best to keep this market afloat. The broader market afloat here. Are you seeing Amazon Apple and the whole quarter up about a percent to Netflix at one point was up about 3 percent. Paper packaging companies taking laid down some data out there wasn't very encouraging there. And then at the very bottom of your screen those are your apparel makers. Some of the apparel companies are kind of struggling today. There was no real news out there but it's not. Gap's L brands a lot of those names even T.J. ex companies. I'll take a little bit of a leg lower here. I'm not quite sure what's going on but kind of a mixed day here Sara a day where a lot of people are just kind of in a holding pattern I guess until they figure out what the heck's going on. Certainly. And we also see yields headed lower for a second day after six days of yields moving higher. But for more market analysis we are joined now by Ben Mandel. He's the global strategist and a multi asset solutions group over at J.P. Morgan Asset Management. Ben I do want to ask you about this shift in yields yesterday. We have a strong auction for 10 year treasuries today. Another strong auction for 30 year. There seems to be robust demand for yields at these levels. Does that draw a line in the sand or is the expectation that we will see yields move plenty higher from here. Well how do you how do you define plenty I guess is the is the question. But I think it's fair to say that bond yields will resume their upward trend that we saw at the beginning of the year over the course of the year even though the Fed speakers have poured a little bit of cold water on that thesis over the last couple of days. There are plenty of things that suggests we're moving in that direction. One the cyclical recovery the fact that over the course of the year let's say there's a 12 month outlook where the rest of the economy reopens and you get this tailwind from a growth perspective too as fiscal policy. There's a real sense and I think this is a very persistent narrative that fiscal policy is going to be a support not for months or quarters but years here. The crystallization of the blue age scenario implies that fiscal is going to be a lot more pro cyclical. So even when the output gap is closed we'll still have at the margin a more of a fiscal impulse. In other words we're aligned a little bit more with Europe where the next generation fund is paying out from now until 2024. And finally Fed policy. I think you can construct narratives in both hawkish and dovish directions where where yields end up drifting higher here. Obviously in the hawkish in the hawkish direction on taper really yields push push nominal yields up. In the case where things are dovish I think there's a story that the reflation airy pressures that have pushed up break evens and inflation pricing continue to push upwards. And so I think we're not we don't think rates go to the moon here. But but I think that the trend is clear. Meanwhile we see live pictures of what is happening on Capitol Hill after an extraordinary start to 2021. It would be making history for the second time a sitting president would be course impeached if this holds at the moment. The voting process happening in the House to impeach sitting president Donald Trump. We will keep you abreast of how the vote goes. But meanwhile Ben Mandel your take on the politics interlocking with economics and the markets thus far the market shrugs it off. You talk about stimulus. And of course this vote could well mean that in some way the new administration doesn't get off the ground in quite the same way that many had hoped. Do you worry about the pace at which we could see further fiscal stimulus in the United States. Is that something the or thinking about. Well I think it's fair to say you don't expect extreme outcomes in an environment where the politics are so finely balanced. And so I think that's a constructive force keeping things in moderation. But but what can people agree on. I think the you know they can generally agree more on spending than on you know extreme or very drastic tax policy. So that's a good thing from the perspective of overall growth. And I think you'll see a transition over the next year or two from the reaction to the pandemic which includes potentially enhanced checks and financial transfers to households to green and infrastructure type of spending programs. And I do think you'll get some cooperation and relatively bilateral support for those initiatives. And so I think this is a question of years for for fiscal policy to that question. I'm just going to piggyback off the Caroline Hyde question here Ben. Is there a scenario here where maybe just Washington gets out of the way. I mean we spent so much of the last bull market cycle talking about the influence of the Fed. We're now talking a lot about the influence of Congress and fiscal policy. Is there sort of a scenario where you can see the market continue to move higher without continued an explicit support out of Washington. I think the point is not the amount of support but the balance of the support. So what was wrong with with the policy impulse writ large over the last decade. It was that the incidents of policy fell squarely on monetary. And so now the fact that fiscal is in place even if we don't expect it to be transformative is good because it balances out those monetary and fiscal impulses. In other words fiscal and monetary are gonna be partners in trying to overheat the economy and find the kink in the Phillips curve and ultimately get us back to a more normal set of rate settings in the future. All right Ben stick with us Ben Mandela's God global strategist and the multi SS Solutions Group over at JP Morgan Asset Management. He's sticking with us. Help us count down to the close your questions see on your screen. We still have an eye on what's going on in Washington. But Sarah you're over at the board right now with the eye on what's happening right now in the markets. I am. And there's just a few minutes left to go until the close today something we're not accustomed to in 2021. We actually have defenses higher tech leading at the same time yields lower. Not what we're used to. Here's how the day is shaping up. Not any large moves by any means but the S & P up three tenths of a percent. That's the sixth day in seven that it's headed higher. NASDAQ taking the lead though up about seven tenths of a percent. You see the Russell 2000 headed lower though small caps headed lower. This after the best quarter ever. Just last quarter fourth quarter of 20 20 again. This is a shakeup of what we've become familiar with over the last couple of months. But at the same time I do want to point out how many stocks in the S & P 500 are trading above their 200 day moving averages can be seen as a measure of breadth that can also be seen possibly as a measure of froth. Whichever way you want to take it look at that over 90 percent. That is among the highest shares over the past decade. And I'll take it one step further and bring us to our Stock of the Hour. And that of course is a firm. We have yet another IPO darling coming after the likes of Door Dash Air B and B last year while A another one day pop another pop right after going public. You can see shares currently up ninety six percent at the moment. Another multi-billion dollar tech company. But I want to put this to the expert. Let's bring Ben Mandel back into the conversation. Of course he is a global strategist in the Multi Asset Solutions Group over at JP Morgan Asset Management. Ben when you see things like this when you see first day IPO pops really just across the board and going Girl Global then you see the share of stocks that are trading above their 200 day moving averages. Is this a positive sign or is this something to be worried about. Well I think we have to we have to consider the complexion of the global equity complex and what this is suggesting to me is that it's one more factor that's probably pushing your allocations from the U.S. to the rest of the world. And international diversification in our view is going to have have a moment here maybe even a day as investors seek out more cyclical exposures in their portfolios. Things that do well as rates grind higher as we're discussing and where the vulnerabilities idiosyncratic regulation type of concerns around tech are less pronounced. And so all of those things push push your allocations to be a little bit later on S & P and a little bit broader in the global complex of cyclicals. So thinking about you know Europe Japan even US small cap emerging markets broad exposure to those as a little bit heavier and exposure to S & P is a little bit lighter. Those also incidentally align with some of our long term analysis on equity relative value as we think about stocks being expensive to your point globally. Equities are expensive but the U.S. is very expensive. And from a forward looking perspective those valuation headwinds are going to favor allocations outside the U.S. And the other thing is the dollar. A depreciating trend for the dollar is going to be a tailwind to unhedged dollar portfolios that include those those foreign regions for equity exposures. All right. Speaking here then on Mandela J.P. Morgan Asset Management as we get the closing bell. So here in New York you can see on your screen Dow Jones basically on the day the S & P 500 up about eight points here. The Nasdaq up about four tenths of a percent. Caroline quite a day here really quite an interesting couple of weeks here the start to the year here. Where are the record highs that we saw last week given way to a little bit of caution this week. But nevertheless this is a market right now that appears is still want to try to push a little bit higher. Still does despite the ongoing impeachment proceedings on the House and politics at play politics play globally as well we want to just remind viewers at the moment it seems as though about four Republicans have voted in line with impeaching Trump just full thus far. But I want to look at what's happening in terms of your. We're just talking Ben Mendell about the dollar. And it was a story of dollar strength today. The euro if by full 10 percent. We want to dig in what's happening with an Italian government. We haven't just got government crises in the United States. You've got them over in Italy as well. I'm looking also at what's happening in terms of sovereign bonds. I know Sarah's going to take us to the US but this is a story of yields actually coming down across the board. So France and a European. There was a bid for sovereign debt today and commodities. Well story of dollar strength means that commodities come down. WTI crude off by six tenths of a percent. Sarah and I'll get back to the US. Take a look at the Treasuries market across maturities. We do see yields coming down and this is really the focus of global markets. The narrative all along has been there is no alternative because yields have been so low. Well yields lately have been rising the 10 year above 1 percent solidly. Well not today. We see it coming back down after stronger 10 year auction yesterday stronger 30 year auction today. There seems to be demand for yields at these levels that you see. The two year 10 year 30 are all headed lower today. All right. Let's bring up and back into this conversation here a global strategist in the Multi Asset Solutions Group over at JP Morgan Asset Management. And Ben you know as we've got the clothes here we're looking at some of the names that the move today. Of course we talk about a firm. But Jeff context logic. Another company that's new to the market here a Wayfair. You have a lot of companies that I guess are sort of reflective of what some people would say is I guess a new economy for lack of a phrase the idea that there is going to be a different set of winners here in this next cycle a different set of names here that might take us higher. When you talk about valuations in the market in aggregate how much attention do you put on some of these other names that maybe don't have the track record don't have the profitability but at least in the eyes of investors they have as one CEO would put it. They have a vision. They have a story. And investors want to be part of that story. Yeah that's a really interesting point. I think it just kind of taking taking a step back. The landscape is gonna be dominated by some to some extent the imbalances that have grown over the course of the pandemic and in the last year or so. So as we think about that in economic terms we've seen this big distortion in spending away from services where there have been constraints to doing so from mobility towards goods. And so a lot of the next a year or so is going to have to do with you know who are the winners and losers as that rebalancing happens. Clearly as the economy opens up in its entirety services will grow relatively quickly. So the question is where do consumers where the household spend. In a world where savings are ample and you've just had a binge on on goods. And so thinking about that balance of goods and services is the key is a key distinction there. Meanwhile we return to seeing what's happening on Capitol Hill the impeachment process still underway in the House. As you can see on your screens the ISE for the Democratic Party 115 the ASU Republicans five thus far memento. I was just mentioning how well government crisis isn't just something that we're seeing in the United States at the moment as ever. I suppose it's a deja vu situation in Italy as well. And my country's current government under crisis because of Matteo Renzi the previous prime minister pulling his support for the coalition. How are you looking at European government politics feeding into the overall investment case or is it really just what the ECB is up to. And thus far it feels like the ECB has money awash. Yeah it's strangely somewhat of a relief to be thinking about Italian politics again after after a brief break. But you know that's that's almost just half facetious because I think you know there are as you say bigger factors that are driving the macro story. And you know it's it's really about the recovery globally in the economy and in the case of Europe. We did downgrade our forecasts for growth in the first quarter. Part in large part because of the restrictions and the second wave dynamics as they as they filter through. I think the key in terms of growth is that it's it's really a zero sum game over the course of the year. There's less path dependence and growth and the damage that's done in the first quarter. In places like Europe and Japan it's going to get paid back in the second and third quarters. So the end point by the end of the year is not that different to your point. We don't we don't see politics really getting in the way of that of that dynamic. And that's really what matters here in the U.S. But just by contrast it's a bit of a hockey stick pattern where you know over the first few quarters the fiscal policy has been preemptive for the third wave of the virus. And therefore we've already papered over the risks of a double dip recession in the beginning of the year. And you're still going to get that that that wave of reopening growth in the latter half of the year. But the idea is the same. It's really the reopening dynamic in the early cycle cyclical dynamics that matter here. So as we do see the House impeachment vote underway then if there's something we've learned over the last four years is that political risk is alive and well certainly. Do you have to factor that in to how you think about investing not just in the U.S. but around the world. Yeah I think you know political risk is always is always important at the margin. I think it has to have a read across to do something that really matters from a global macro perspective. So in the case of Europe you know politics are not insignificant but they really matter when they have a bearing on the euro. Risk premium right. Is there a breakup premium being incorporated into you know into the monetary union. Right. So that was that those are concerns we've had on and off over the past decade. We'd argue they've receded quite a bit. And therefore you know your global macro picture is a little bit more immune to to the ebbs and flows of idiosyncratic policy developments there and elsewhere. You know I guess the other area that we're focused on is the U.S. China strategic rivalry that as we as we saw in 2000 18 and 19 had a dramatic effect on global macro and markets. And that's something that we see evolving as well under the current administration to become much more much more focused sector specific firm specific sanctions are going to ramp up as those blunt instruments of tariffs on all imports from from China gradually gradually ramp down. And so you know those those matter. I'd argue the more granular however the less relevant they are for the bigger picture and the more relevant they are for those idiosyncratic sector store friends including CAC in both the U.S. and China. I'm so glad you bring up U.S. China as well. A key story that we need to keep abreast of. Ben Mendell always great to get your voice on. We thank you. Global strategist and the Multi Asset Solutions Group. Over of course at JP Morgan Asset Management riding out the clouds with us. And there's plenty more market coverage coming up. This panel political discussion for you as well. More details on the impeachment vote which is currently underway as you can see. Six years and Republicans from New York from London. This has been like. Let's get you up to speed with the midweek close as to where we were on the benchmarks. We managed to be led by big tech. So a slight risk aversion sort of drive of trade with the Nasdaq up four tenths of a percent. Big tech leading us and some of your more deflationary trades out of the S & P 500 up two tenths of a percent. Dow Jones finishing just flat. Russell the underperform up for once with the small caps that says the dollar rises and so too do bonds in the US remain. Caroline Quite a day here on Wall Street of course. Quite a day in Washington. We sort of know what the outcome is. Probably going to be here in a few moments. We'll get the final vote here on the article of impeachment against Donald Trump the second of his presidency. Let's bring in Bloomberg's David Westin of course the anchor of Balance of Power and Wall Street week here. David we know the Democrats were obviously going to vote for this. Most of them at least right now in our screen we're seeing seven Republicans in that yay column. Yeah. And the question is how many Democrats would really go along to go after Liz Cheney the former vice president's daughter the number three ranking Republican in the House had said that she would vote to support it. People said 10 12 something like that. Some say it could go as high as 40. But we're watching that carefully. But I think we're going to go back to what you said. One of the interesting questions is the connection between those two things what's happened on Wall Street today and what's happening in Washington. And is there any connection at all. Because right now it feels a little like the markets are just going on their way for other more fundamental reasons and letting Washington play out. But stimulus is of course one of the fundamental reasons that the market looks to and how much can Biden's focus on bringing in new stimulus more tackling what we let me. Forget the pandemic that is really beseeching the United States at the moment and indeed the impact that has on individuals and businesses. How much is this sort of a vote going to impact how quickly you can get these measures out. Exactly Carolyn. And that's the question tomorrow that I think might be much more interesting on Wall Street frankly because the president elect Biden is who will really unveil his stimulus package. There was a report today that actually Senator Schumer who will become the majority leader in the Senate has asked him to have at least one point three trillion dollars in that package. As we know President elect Biden has already said he thinks it should be the trillions. But there's also reporting as we know from today that he may have a small version first that the road has to go along with. But I think Wall Street be much more interested in what can get done on stimulus. And we should know more about that tomorrow. Markets are certainly laser focused on stimulus. But after this when this vote is said and done what actually comes next David. What are we looking ahead to. Well they take that article of impeachment and they physically take it over to the Senate and give it to the Senate and the House appoint certain prosecutors and then they have a trial in the Senate which is presided over by the Supreme Court chief justice. And the other thing we learned today is that Mitch McConnell the current majority leader in the Senate says he's not going to be in any hurry to get that done. It's not going to happen before the 20th which is inauguration day. That's for sure. We've heard from several CEOs publicly saying that they actually support impeachment and moving forward with impeachment. There's been a survey by Yale of 40 CEOs that weren't identified that also were unanimous in there. What are you hearing from business leaders with regard to where things stand right now and what they kind of expect to see going forward. Well I think business leaders I think are hopeful. I say this mainly from talking to people like the U.S. Chamber of Commerce and Business Roundtable. People who represent a lot of businesses are hopeful business ISE are because they want a little quietude. Businesses you know likes predictability. They'd like to know what the rules are. And even though President Trump certainly delivered some things that they liked a lot like corporate tax cuts deregulation those are things they really liked a lot. There was a lot of turmoil. You just very very quickly. You interviewed Tom Donohue. Yeah just the other day of course of the Chamber of Commerce. Did he actually I mean did he say specifically what his members were looking for out of this process. Yes. First of all what I just said which is he wants some predictability. I think that would be good. They can blend their businesses. But he said number one you won't be surprised. Infrastructure. We've heard about infrastructure for years. He has some hope now. There actually will be big infrastructure which we are hopeful. He also talked about job training. The government really getting involved in job training. And interestingly I thought immigration. He thinks that a lot of American business say we need the workers we need to bring the workers in that that was a disruptive force in the trunk of the attrition. And so those were the three things that he really emphasized. Of course David. The pictures on Capitol Hill very you know above board formula being driven at the moment and a sense of democracy at work. What we don't see all the sheer number of National Guard that are currently swarming around the houses of power as we see on Capitol Hill and Facebook putting out statements saying the company says it's working with officials to flag gatherings. There's an increase in users promoting violent events. How much do you think this is also very much. This division is in the focus of businesses but also ahead of the inauguration. Well I can tell you in Washington it's a big focus. I talked to a freshman congresswoman a Republican in South Carolina today Nancy Mace. And I found it chilling because I asked her at the end are you concerned about safety coming migration day. And she said I was going to go to the inauguration and this a member of Congress. I will not go now because I fear for my personal safety. I never thought we'd have a time. The Unites States of America when a sitting member of Congress what they couldn't go to inauguration because of safety concerns. As you know Carol and they put a fence essentially around the entire Capitol building. They are having thousands of National Guard be brought in. They are not taking it very seriously as they should. But it's a chilling sight a chilling sight. And we should point out headlines crossing the wire of course about the next steps in this process. Senate Majority Leader Mitch McConnell says the Senate's first day back will be January 19th and I believe that is next Tuesday. That's the day before the inauguration Sarah. So something to keep an eye on to see how McConnell handles the handoff of these articles impeachment which will presumably probably fall on to Senate Majority Leader Chuck Schumer. Right. Certainly. And this is something that we have never seen before in the United States. The prospects of a second impeachment. What does this say David about the state of U.S. politics and also just the state of operations here. Well I'll say and this is maybe a little editorializing which I don't like to do. But just having listened to that debate through the afternoon I was struck by the fact that we don't seem to be coming together at least in the House of Representatives. The Republicans basically were right down the line. The Democrats were right down the line and they were both pointing the finger at one another. So if we thought those harrowing events which were just one week ago today there was the invasion of the capital if we thought was going to bring everybody together to really be cooperative. I don't think we saw a lot of that demonstrated today in the House of Representatives. It's certainly not encouraging but we're not to leave it there. David Westin. Thank you so much for joining us. Of course David is the anchor of Balance of Power and Wall Street Week on Bloomberg. Now time for the first hour news of Mark Crumpton Mark. Sarah thank you so much. As we've been reporting the House has begun voting on an article of impeachment against President Trump. House Speaker Nancy Pelosi said earlier that Mr. Trump is in her words a clear and present danger to the nation. Well she was speaking on the House floor Pelosi said Mr. Trump has shown he is a threat to liberty and to the rule of law. Ohio Republican Jim Jordan responded by saying the First Amendment is under assault and that Democrats are quote obsessed with impeaching the president. Mr. Trump would be the second president in U.S. history to be impeached. Senate Majority Leader Mitch McConnell has told his fellow Republicans he hasn't yet decided how he will vote. As David and Caroline just alluded to moments ago the U.S. Capitol has heightened security but we have heard of President elect Biden's inauguration. The building resembles an armed camp with soldiers bearing rifles standing in arm's length apart around the building that was attacked last week. Roads around the Capitol complex are closed with military units and street corners and heavy trucks blocking some streets. Many entry points to the capital have been blocked off. The number of hospitalized over 19 patients was roughly flat in the United States this week and likely will begin declining for the first time since September. The numbers are now dropping compared with a week earlier in both the Northeast and Midwest. That's according to the cold tracking project in the West. They were up point eight percent the least since October though encouraging. Officials say the downward trend reflects a slowdown from an extremely swift pace and may not last. British Prime Minister Boris Johnson is sounding an optimistic tone about the national corona virus lockdown. He didn't rule out toughening restrictions if necessary but he told the House of Commons the existing rules could already be bringing down the level of infections. The lockdown measures that we have in place combined with the tough measures that we are using are starting to show signs of some effect. We must take account of that too Mr Speaker because nobody can doubt the serious damage that is done by lockdowns to people's mental health to jobs to livelihoods as well. Prime Minister Johnson says he wants the UK out of lockdown as soon as possible. The UK reported more than fifteen hundred deaths today the most since the pandemic began. Global news 24 hours a day on air and on Bloomberg. QuickTake. Powered by more than twenty seven hundred journalists and. In over 120 countries I'm Mark Crumpton. This is Bloomberg Best. Breaking news amid the shakeup of the NY as CEO Pat Lang of course going across to Intel. It seems that there'll be an interim CEO over at the NYSE RO. The CFO will become the interim CEO as the search for a new chief executive starts. Michael Dell of course the chairman of the NYSE. With gratitude they have to pat for his leadership. Sarah. Thanks Caroline. Well we've been discussing this stark contrast between you could call it the chaos on Capitol Hill and the mania in markets. Consider this that on Monday six penny stocks made up close to a fifth a fifth of total share trading volume. These are a few of them. America. Naked Brands. Castro Maritime. Costa Pharmaceutical. Year to date performance all up about 100 percent or more. The Medica for one bed after Carroll Basket and one of the stars of Tiger King. That documentary on Netflix actually touted it in a video. This is what we're seeing. Sarah I'm just going to interrupt you here for a second. We finally got the confirmation here. The U.S. House of Representatives has voted to impeach President Donald Trump. This of course over his role in the capital riot. This is one article of impeachment of course. This is the second time the House of Representatives has impeach Donald Trump. They impeached him. Remember about a year ago in December of twenty nineteen there was a Senate trial at the start of 2020. Of course the Senate which was controlled by the Republicans did not vote to remove Trump from office basically determining that they did not think that the articles of impeachment rose to the level of removing him from office the process. Now Caroline as we of course we went through a year ago that these articles of impeachment will be handed over to the Senate which right now is under Republican control in a week. That will they will resume their session January 19th in less than a week on January 20th. Of course you have a new Senate majority leader and a Democrat and of course a new president who will be inaugurated. And Joe Biden. So whether these articles of impeachment go any further than where they are today that still remains to be seen. I don't say what's a disruption this might cause to the start of the new administration to the current president elect's new term and how this potentially derails some of the cabinet it's being signed off. And indeed some of the focus on the stimulus. I'm looking also at the Republicans who voted in favor of impeachment so far. And first name among them is Liz Cheney of course Dick Cheney's daughter who is notable but she's already getting calls to resign from people within her party. The tortuous nature of this the divisions within the Republican Party itself where it goes from here is such a painful one. I think Gonzalez is among them as well. John CAC as well. So clearly a number of names who have voted against their own party's sitting president and a historic day where we've seen potential the second time impeachment for President Trump 218 days from the Democratic Party 10 days from the Republican Party and a notable lack of market impact Sarah that we saw of course. Let's bring our David Westin of course back into this show. Here he is the anchor of Balance of Power and Wall Street Week. David what's sort of the net effect here. We have seen the U.S. House of Representatives impeach a president who is scheduled to leave office in a week's time. What is the net effect of doing this. Yeah. Yeah on that Romain it's just almost a year to the day after they impeached him the first time. So this is the first time in history we've had a president which twice I think I would have to say just as a citizen first and foremost it's sad. It's not a good thing when we're impeaching the president something has gone terribly wrong. Whatever you think about the merits of it this is not good. What is going on. And certainly there's a lot of rancor. I'm not sure that this will relieve the rancor. But on the other hand what happened a week ago today as you say up at the Capitol I think just shook all of us to our core. And whatever happens I think we're all committed. The fact that we don't want to have anything like that ever happen again. And just to be clear here before Caroline jumps in. I mean this is three presidents in our history have faced us. So this is a rare rare occurrence. Andrew Johnson of course Bill Clinton and then Donald Trump himself. Know. Exactly. I mean Richard Nixon was on his way to being impeached. He actually resigned before he was impeached. But this is exceedingly rare. And as I say something has gone terribly wrong. This one was also particularly troubling I think even compared to the others because this was really take the Democrats argument at their word. This was the president and states really causing a mob to go up against the legislative branch. So this is like the executive branch almost attacking the legislative branch and certainly verbally attacking without a doubt because if we recall President Trump during that speech he gave on the Ellipse called it illegitimate. What was going on up on Capitol Hill. Well there's no doubt this is a very historic moment for our country. What does this mean though for President Trump now as remains said a week from now inauguration and we have a second impeachment today. Well he said he's taking you to the inauguration where it's fair to say although interesting the vice president Benson said he will go to the inauguration. Also an interesting to and I thought today was that the Trump ministrations did say in fact that President elect Biden can move into Blair House. Warehouses that mansion just across from the White House where traditionally the incoming president goes with his family to live just in the days before. So they actually gave permission for that. So there is a transition going on. President Trump recognized that. But in terms of President Trump I think we have to bear in mind whatever happens and the likelihood at this point is there will be a trial the Senate and he will be acquitted. That's what most people believe because there won't be enough Republicans switching over whatever happens. He will remain a force in American politics. He has something like 200 million dollars in his PAC. He has said he's going to stay very much a force. And he has a lot of followers. He had 74 million people more or less who voted for him after all. And it's a copout. Clearly business power ebbing to a sudden degree is New York City backs away from Trump. The organization as we see the bankers do the same as we see the PGA golf do the same. So he's being hit from a business perspective how a business is being hit by all of this. I mean what are some of the most interesting comments you've heard. I think that that is one of the fascinating question. But by the way I had a very well known sportswriter talk about the PGA and what happened to administer because they had the PGA Championship that was scheduled for 2022 at badminton which is his golf club out in New Jersey. And this is according to this writer the most important thing to Donald Trump that he gets a major at one of his golf clubs by the way going over to your neck of the woods. Caroline I understand that they've said the British Open will never happen at Turnberry which is something else he wanted that will hurt him. But beyond that as you know his banks have terminated relationships with him. The reporting is that Deutsche Bank doesn't want to do business with him. Signature Bank said you can have your money back from your accounts. And he has a big and heavily leveraged empire there. And you have to wonder what's going to happen as he tries to roll over some of those loans and refinance some things.

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'Bloomberg Markets: The Close' Full Show (01/13/2021)

Caroline Hyde, Romaine Bostick, Sarah Ponczek & Joe Weisenthal bring you the latest news and analysis leading up to the final minutes and seconds before the closing bell on Wall Street and tackle the second impeachment of President Trump, Intel's new leadership Guests Today: Debbie Cunningham of Federated Hermes, Jordan Strauss of Kroll, C. Nicole Brown of the Institute for Women's Policy Research, Anwiti Bahuguna of Columbia Threadneedle Investments, Geoff Martha of Medtronic, Pierre Ferragu of New Street Research, Ben Mandel of JPMorgan Asset Management, Barbara Perry of the University of Virginia. (Source: Bloomberg)

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