By 9. 1 and the pain is very much in the tech sector. The nasdaq is down even more. Stoxx 600 down by 6 10 of 1 . 1834,rodollar is at 100 stabilizing at this point. The euro has been down and pushing back. The lira is that a fresh record low against the dollar. Just off a fresh record low. Alix a lot of activity in the u. S. Is a steep selloff in tech. Scarlet fu, walk us through the nuts and bolts. Scarlett we are off the worst levels of the session before the nasdaq its the biggest drop since june 11. No specific catalyst. The jobless claims report was not encouraging, but this is a long time coming. People saying equities were not extended, especially those in the growth sectors and specifically mecca cap names. Looking at the different indexes within the nasdaq 100, 80 9 of the members are lower. Are down. M within the s p 500, 62 . Then you get to the dow average. 57 of the members are lower and within the valley, only half the members are down. They give you the sense of the rotation taking place or perhaps some of the air coming out of the balloon when it comes to lofty tech stocks. And there were of course plenty of signs that the rally was running out of steams steam. Looking at gross etf from vanguard and i share, they hard they had their largest monthly outflow in august. I should say outflows for the month of august, you saw inflows in april, may, and june. Monstrous inflows for vanguard growth. Does this mean anything in terms of people falling out of love with tech shares and growth shares . Probably not. Tom in europe says that performance wins out in the end and perhaps investors still favor growth, but they are choosing to express it in less generic ways. For instance, the etf that tracks the nasdaq 100 and the kathy woods innovation etf saw a big monthly inflows for the month of august. This might just be an opportunity to take money off the table and people are looking for more reasonable entry points Going Forward. A long weekend upon us, people may be content to let things go for little bit and come back in later on. At the travel stocks doing relatively well on both sides of the atlantic, you wonder if there is a vaccine element to all of this. Positive news over the last 24 hours maybe feeding into the neighbor the narrative. The global head of the hbc fixed income analysts analysis joining us now. What is the selloff today meaning for your world . The equity market has been buying and for ages now. Some of it may be down to the feds ideas about inflation aggregates. I say ideas, but i mean aspirations to hitting some sort of average inflation. Its an aspiration, it isnt going to happen. At some stage i guess reality kicks in. There are experts out there that know more about equities than me and most people would tell you that the market was overbought. The fact is that rates are not going anywhere for a long time and i dont really see how that can be good news for equities. Normally low real rates are associated with uncertainty. Playing the what if game, what if this is about vaccine optimism and getting back to some sort of normal . If theres a playbook for that, dumping growth and buying value, what does it mean for rates . Currently we are seeing of it in the bond market and if it is a replacement vaccine, shouldnt there be a backup in the yield . He would have to be talking about a vaccine that works and could be distributed very quickly. That seems like a big ask. To me the challenge to the gaps. S is the huge output strong disinflationary pressure that is still there. The vaccine would be great news and i can see that, but i dont really see how it changes the outlook for rates in the next few years. It doesnt reverse whats happened. Why are you so pessimistic on inflation, stephen . Im realistic. I think that the aspiration of 2 inflation is already a bit of a problem. It seems to be something that comes from the 1980s. Who said 2 inflation was a good thing . If you have no inflation or you have deflation and or nominal wages the same, you are better off, arent you . I dont know where this idea that 2 inflation would be a good thing came from. I think im being realistic. Isx if your reality reflected in Inflation Expectations in the u. S. , for example, they all moved higher, it seems, towards 2 . Do you see that as the market expecting inflation to kick to pick up . Or is that just reflecting Something Like inflation uncertainty . I wrote a paper about this last week. There have been about 100 basis points in shift from the 10 year breakeven, from 100 to 200. 2 , more what we are likely to see as an average over the next 10 years. The reality is that most of those are down to the liquidity premium in the product of inflation. The tips market, the product. And the generalized uncertainty that is more macro. Uncertainty is a form of risk premium as well. Its about the inflation outlook. We dont know if there will be deflation or inflation. Its very unlikely that we will be moving into a high inflation environment. The uncertainty is multifaceted and i think that much of the meuse the moves and tips and breakevens come from that. It gives you a spurious outcome. If people think that there has been a reflationary move, they are mistaken. Reale argued that the yield is a residual of a calculation that takes inflation away from nominal yields and adjusts for risk yields. Inflation is always a monetary phenomenon. I am sure i have heard that somewhere. Im wondering why it isnt and what you think it would take to get inflation higher. Im looking for markers that would be potential indicators that we could be moving into an inflationary world. What is steven major looking for . Was a stated that like it fact, i guess it might be in a textbook. Sounds like it came from someone. Someone much more famous than me, of course. Its rather axiomatic, theory. In practice, the money needs to be in the pockets of people so that they can go spend it and buy things in large amounts. Up. Then prices go but wages have to go up. Those kinds of things have to happen. At the moment, the money that has been put out there, its a huge financing trade that sits in the banks. The banks have basically helped finance those asset purchases. That is not inflationary. All of these ideas that m2 is somehow linked to higher inflation in the future are nonsense as far as im concerned. The money is stuck inside the banking system. Itsidea has to change and not going to anytime soon. Some of the 1970s textbooks may not apply to whats happening right now. Alix when clients come to you and say check out the real yields, im its low and negative, im going to go into risk, what do you say to that . Show them the work we have done on this. The real yield looks like something but it doesnt tell you anything. Its not stimulative, doesnt make me want to do anything. People look at low real yields on Government Bonds and then they go purchase in emerging markets are equities. Someone who compares the real rates of a dm bond with the dm bond is missing the point. The real rate in the end is filled with all kinds of credit risk and default risk that dont exist in the written the riskfree asset market. Treasury. Isk and inflation risk, Interest Rate risk, but its not default risk, thats different. We have to compare like with like and i think that low yield rates and treasuries are the outcome and there is no reason to go by risky stuff. A proper analysis that looks at a full data set will show you that the idea of using real ands to justify a purchase equities is incorrect. Where is the dollar going and is it going to continue to go down . Its stabilizing at the moment, but what is davids outlook . What does it mean for rates . We think the dollar has not lost supremacy and again, the real rate comparison might be misleading here. I think the euro has just got back to its average, as you know, since the euro was created its been in a range in the middle of the range is 1. 2. We only just got back to that recently. The euro came this year from a probably oversold position. Good news in europe, removing the tail risk. Seems the ecb is doing more than the fed. ,he ecb has been more active their Balance Sheet expanding more than the fed this year on a 2019 basis. There is some explanation for the move. But i dont think we should read too much into it. I certainly think the real rate differential could be misleading as well. So, we are still dollar bullish. All that thought, stephen, stick with us. This is bloomberg. Alix live from new york, im alix steel and this is the european close. Stephen is still with us. As european stocks head into the close of the session, pick up where you left off, the ucb has made it known, they didnt like it. Talking it down, what do they do next week . They have a lot to worry about next week. The september meeting follows the higher entry where there was cautious optimism and a lot of , thingsterm rapid data for mobility and what have you, seems to be rolling over. So, maybe things dont look what is good. Then there is the euro, as you mentioned, and the recent inflation grid. All of that says that Everything Else may be doing more. From the ecbs position, though, as i said in the previous segment, the ecb in terms of the Balance Sheet has been doing more in terms of the fed this more in terms of increase, based on last year. Also, they do more in credit and take more risks. So, they could rightly say they have already done a lot and buy some more time, but at the same time it looks to me like some of the incoming is pointing the other way. Then there are the staff projections for 2021, 2022. Stark rejections for growth two years out. 100 and 47 over bund, do you think it patents from here . Like greek trading Government Bonds, moving up and down together. Its quite interesting how there is very little differentiation. The big tail risk was removed a few months ago with the big step euthe fiscal side and the recovery fund. So, there might be some localized risks. September is a month when a lot tends to happen in italy and everywhere because there is planning for the budget process october, through planning for next year. Its a time of tension and most people in the market would expect some disruption in september or october. But at the moment, it looks very attractive. Which wee confident, are, basically, the rates are not going anywhere, that looks like a good pickup. Pt fees are unattractive and liquid compared to some of the ig corporate, for example. Talking of the corporate space, forcing people out into lower grade credit, whats your assessment of what these rates look like as we enter the autumn . Clearly Government Supports in certain parts of europe are starting to fade. The french budget is likely to help out a little bit, but nevertheless it looks like we are in for a tough autumn. Do you think that credit pressure at the bottom end of the market in the highyield space will increase . Some of the stuff going out the door recently will be sustainable . I think you are onto something there. Normally you would be expecting some sort of default cycle kicking in. The question is, how supportive will government measures continue to be . It seems that in europe compared to the u. S. Governments, they are prepared to help households and, therefore, Small Companies much more than the u. S. Im talking about unemployment benefits, etc. , furlough schemes. Thats one big difference. A more market type of move in the u. S. Is likely. I think Market Forces can prevail more in the u. S. , you could have a more aggressive default cycle over there than in europe. It seems that the ecb is prepared to step up. They actually take credit risk and when they go down the curve, they do it to the tune of the highyield and they basically buy bonds and put them on the Balance Sheet. What the fed is doing is more signaling that its willing to buy to backstop the treasury. Thats not the same thing at all. I think in the coming months we will see versions between the europe and the u. S. There because of Government Support schemes delaying Market Forces, in a way the European Market looks safer than the u. S. Equivalent. It comes at a costs and the costs is issuance. Oh lausch old was looking at german debt with issues coming from france as well, budget deficit exceeding growth. We heard that from the cbo who wins in the front . You are right. The numbers are huge. If you told me at the start of the year that we would be looking at numbers like that, i wouldnt have believed you. Governments dont have much choice. In the case of germany at least, they have Balance Sheet. Dont forget we are coming from a healthy fiscal position. One of the biggest surprises of 2020 has been the german switch to being on the fiscal side, along with a uturn on the e. U. Recovery fund, which they allowed to happen. Numbers are huge, but you still have the ecb with the increase and i have never been that worried about Government Bond supply. I have written a lot about this in the past. I think that bonds dont trade like potatoes or any other kind of vegetable. They are sophisticated financial instruments. To they are priced according not just simple demand supply dynamics. Its all telegraphed in advance. Its true to say that each auction or syndication is an event, but when it comes to pricing year end or next year, and all smoothed out ultimately priced to where the policy would be in the policy rate is going nowhere. Mr. Major, thank you very much indeed. Steven major of hsbc we are seeing something of a selloff in the Technology Space right now. The nasdaq is down, this is its biggest route since march. The big question i guess, is, do you buy the debt . Will bea lot of people asking themselves that question right now. This is bloomberg. Time for the Bloomberg Business flash with a look at some of the biggest is this stories in the news right now. Shares of tesla are lower today, the largest shareholder of the electric car maker cut their stake. Bailey gives reduced their tesla Stake Holdings from 7. 7 in february to less than 4. 3 percent, according to dow jones. The firm had to cut holdings because of guidelines that restrict the weight of a single stock in client portfolios. And Carnival Cruise lines are preparing to resume operations. They will start sailing sunday. Italian and german cruises resuming trips in november. The coronavirus pandemic led to the shutdown of the global cruise industry. That is your business flash. Alix are you going on a cruise this weekend . Carnival is one of the top performers in the s p based on the stay home stocks that are getting taken out. Guy it all kind of makes sense, doesnt it . We have had positive news around vaccine and you wonder if it is a capitalist for what we are seeing here and you wonder if those stayathome stocks that are stock drivers will fade. We have also seen a real kind of blowoff moved to the upside, which has been incredible and may have been generated as a result of whats going on on the Options Market, but to date we have single rotation back in these stocks and maybe there is an underlying vaccine element. Carnival is up strongly. Iag is up by 5. 2 . By 4. 1. Is up european and u. S. Travel stocks, which could be big beneficiaries of a vaccine, or trading strongly today. European equity markets are fading and the travel sector is off its highs as we head to the close today. On volume, we are down. Not as much as in the united states, clearly. Europe is more value driven. It may alternately end up protecting it. We have also seen this move pushing the dollar back up the euro down. 100 and 20 to 118 is a tailwind. Anyways, we will deal with the details in just a moment. This is bloomberg. Guy 30 seconds until the end of regular trading in europe. I suspect the end of trading cannot come soon enough if you are long this market because the selloff has been gathering pace over the last hour, clearly led by what is happening in the united states. Europe spent most of the day in positive territory. It is a selloff towards the end of the day that catches everybodys attention. Driven by what is happening in the united states. It is being reflected here. The euro is protecting the European Markets. We have seen the euro backing off 1. 20, that is a factor. A whole range of elements helping out. 1. 1823 is where we are trading. Europe is more valueoriented and has a lot of travel stocks as well which are doing well. You wonder whether the vaccine element to what is happening or whether this all originated in scotland, with bailey and his decision to lighten up on the tesla position. Your finger on one particular element when we talk about the selloffs. That was the lesson we learned in 2000. Things were probably as stretched as they are now. Lets talk about what is happening with the individual markets. There is little bit of difference but not much. I want to highlight it. The ftse 100 and the dax broadly off the same amount. Outperformance from the cac 40. It is being led on a points basis by stocks like lvmh. We have seen today, finally the announcement, we will talk about this more in a moment, regarding the 100 billion euro french stimulus plan designed to put the French Economy back on track and revive the political fortunes of president macron. I wonder whether that is why we are seeing the outperformance in the cap 40 . In terms of the in the cac 40 . Outperformance in the travel sectors. That is certainly helping out as well. Autos are doing relatively well. Food and beverage, the defensive staple style story being helped out. Unsurprisingly, the bottom end of the market, there you have it, the technology sector, the leading sector in europe. Alix it is the same thing in the u. S. At one point you have the nasdaq off 5 , that wouldve been the worst selloff since march. Off those levels, but still a brutal day. President trump ways in. He says do you notice any time fake news polls are put out, like at fox news, the stock market goes down. We are going to win. Joining us from edinburgh is stephanie kelly. President trump makes frequency the relationship between politics and the u. S. Market. How do see it . Stephanie kind of a fascinating relationship now that we have entered this phase. Before we knew trump was relatively sensitive to the stock market at extremes. It seems in 2019 in particular 10 seem to be the threshold where there were concerns about the u. S. China. That seems to rile him. Going into the election, it is the dual thing of simultaneously saying the reason stock markets are down is because of biden, but he sees the stock market as a sign of economic strength and that is the question he is trying to drive home. We will get confused messaging for the next couple of weeks. Iserlying that, the reality the reality of a joe biden presidency would likely create a lot of questions, not so much of where it is good or bad not so much of is it good or bad but where is it good or bad. Guy i want to put a couple of other things in the mix. Payrolls tomorrow. We do not have a stimulus plan out of washington. How important will that be in this dynamic as we head towards the election . We are also getting news on the cdc suggesting we make it a vaccine days before the election comes through. That also seems to be a factor in todays stock market story. Role those two into the story and give us an idea of the impact you think both will have in terms of the u. S. Election. Stephanie the reality is those are two of the defining factors of the election, the third being the ability to get voters to turn out. In terms of what could happen in the policy space, the reality is there is a lot of folks on vaccine, and one strength one factor is the strength of the antibacks movement. Movement. Ivax it is actually the fiscal policy choices that will be most profound in terms of impacting voters on the day because there are voters currently not getting what they have been receiving before, and i struggle to see how that does not weigh on trumps rating if there is a failure to negotiate a deal. Alix i wonder if that means we will have to see a jobs bat number tomorrow coupled with the selloff in the stock market to light a fire under congress to get something passed . Is this a situation we are in right now . Stephanie there is a tendency to assume politicians operate in vacuums, and they do not. Pretty clearly if you have poor jobs numbers and ongoing weakness in the stock market, not so much underneath the democrats, but certainly under trump and by association the republicans, it is likely they want to get a win. A fiscal deal would be a win for trump, maybe not for traditional conservative republicans, but i think they are likely to row in. Good news tends to follow bad news. Person who understands the economy will have a meaningful impact on his reelection is Emmanuel Macron. He is spending 100 billion 100 Million Euros to try to make sure the French Economy is back on track by 2022. What you think of his chances . Will it be enough . Stephanie the french package is an interesting case because it is clearly designed to simultaneously get a boost in the short term in terms of popularity, but also because it is not frontloaded. There is a petering out you will see where he should get some kind of benefit through the next couple of years, and again i think that reflects these electoral calculations, which means they have to go to an election not this year, but shortly. , one of thecombined most striking factors is Emmanuel Macron is trying to tread that line between environmentalism, which is a crucial tenant, and compassion. Those are two of the areas where he has been criticized. He needs voters to align behind him in the next election if he wants to get another round. Alix i know this is not an apples to apples comparison, but the numbers we are talking about in the u. S. Are 2, 3, 1 trillion. This is a 100 billion euro plan. Is that something we would expect . Stephanie it is not apples to apples because of the nature of the u. S. Economy and the size of u. S. Economy and the size of the escalation and the nature of that. On the other hand, you have to view this in light of the overall support youre getting in france in general. It is overall a signal of the willingness to continue to support the economy Going Forward, and definitely pushing back against ideas around return to austerity, which is important in the european context because the sovereign debt crisis are not that long ago and they are very much fresh in the minds of many investors. Ongoing public signaling is important relative to the u. S. Numbers. They look artificial low artificially low. Guy can we pivot to what is happening in germany . The russian Opposition Leader now confirmed to have been poisoned. German Foreign Policy tends to be very mercantile. I am wondering, therefore, if the calls to stop the building of nord stream 2, the gas pipeline from russia, is something Angela Merkel is prepared to do . Stephanie i think what this controversy is underscoring is one of the big challenges we are seeing more broadly, which is important trading relationships and particularly reliance on certain supply chains with open democratic liberal countries like germany and europe more broadly, and russia and china. That kind of theme is one i expect to keep bubbling up, which it is hard for economies to push a liberal democratic states try to stay with countries that looked have more issues with transparency and in outcomes. That is a challenging balance to strike. Germany tries to strike that balance. This just goes to so goes to show how far that can be stretched. Alix stephanie, always good to catch up with you. Ive yet to find a question you cannot have a smart answer to. I am working on it. Stephanie kelly of aberdeen investment, thank you. Guy weve been talking about the fact that travel stocks are doing relatively well. Ryanair may be seeking opportunity out of that. The couple the Company Announcing it will raise 400 billion euros with stock placement. One of the stronger Balance Sheets in the aviation sector in europe. The stop faded into the cloak faded into the close and finished negative. We are seeing a massive selloff, particularly centered within the tech space, particulate centered within the chip space. Lets get an update on what you need to know. Here with the first word news is ritika gupta. Ritika joe biden meets with the family of jacob blake, the black man shot seven times by police in kenosha, wisconsin. The Campaign Says biden and his wife will hold a Community Meeting in kenosha. President trump was there two days ago. He did not meet with jacob blakes mother because she wants lawyers to monitor the conversation. President trump has ordered a review of federal funding for what he cars what he calls and arctic cities and arctic cities. All our democratic run cities that have had protest demanding racial justice. Any moves to restrict federal funds would probably result in a court case. , one manst china sea was rescued after a carrying 43 crew and 5800 part of cattle sank. Japanesevor told the coast guard the ship had engine trouble and capsized when a wave hit it. A typhoon swept through the area this week. Global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. Am ritika gupta this is bloomberg. Guy . Guy thanks very much, indeed. I am looking at the chart for the ftse 100, dropping like a stone in the last half hour. A little bit of a tick higher in the auction, but a small tick higher. Down 1. 52 . Still some way to go until we retraced towards the 6000 mark. We have going down a number of days. The dax under pressure. Only. 4 . Down lvmh and some of the luxury stocks standing out. Travel stocks around europe doing well. We will carry on the top of the coverage at the top of the hour in london on the dab digital radio. I will be joining jon ferro for the cable. This is bloomberg. Alix coming up on bloomberg , pershingill ackman square founder and ceo will be joining us at 1 00 in new york and 6 00 in london. This is bloomberg. Guy live from london, i am guy johnson. Alix steel in new york. This is bloomberg markets. What a set of markets we have. We have a chip selloff. Anand srinivasan joining us. Was this inevitable . We are down 103 points on the sox. Give us a sense of how strange valuations have become . Anand remember when we talk about nvidia, this is a company that half of the selloff today it is 125 for the year. We have to take that into context. Forward p is at 58 times. One of the things we have been ried about in semis fundamentals are certainly improving for sure. Inare turning the corner and some cases overcome the effect of the pandemic. It is the magnitude of the fundamental improvement versus the magnitude of the stock rally. Those two seem to be at odds with each other. There is improvement given how fundamentals have been stable, even improving, but this magnitude of a rally this looking at a were pullback to come for sure. Alix why wont this be another by the dip buy the dip . Anand that is a great point. One of the points some of these names are great growth stories, nvidia and amd have a long runway, and we are positive on both companies in terms of their fundamentals. The video because it is expanding into new markets, and the gaming segment is doing well , and amd because it is gaining share in the pc and server side from intel. Fundamentals is not the question. The magnitude of improvement is solid. The question is what you want to pay for. I think that is a sentiment indicator more than anything else. Andave had a phenomenal run it is hard to see at which point does the stock because incredibly expensive. Is it 55 times or 65 times . Either way it is pretty expensive. Guy i think that is a fair point. Will these companies be able to sell their chips in china, and if so for how much longer, and if they are selling their chips, and i heavy restrictions already , will they be competing against stronger chinese competition Going Forward given what the Chinese Government is now doing at the amount of money it is prepared to spend . Nand that is a great question here the multipronged answer. Developmentsilicon has a long way to go before you can try and replace the intellectual property that has emanated from the united states. We have had multiple iterations of trying to replicate Silicon Valley in different parts of the world. The silicon round about, the Silicon Valley of india, israel, we have been successful in all these places in specific vectors. Taiwan and manufacturing but not so much in design. Ingor in software, israel specific areas of multimedia ai, and london in one are two companies have come out, graphics, etc. If you wanted to be good at design and manufacturing and scale across a divider verse ecosystem of chips, you need more than capital. You need capital, you need talent, you need infrastructure you need thed accumulation of different varieties of talent in one place for an extended period of time. I do not think china is here yet. If the u. S. Were to put a squeeze on u. S. Ipu in various forms into china, whether it is huawei or a broader set, i would see chinese hard to Chip Development in a broad fashion succeed in the near term. The next few years i would find it very difficult if we were to squeeze them hard for chinese chips to completely replace u. S. Chips. Guy on that note we will need it. Anand srinivasan, Bloomberg Intelligence senior analyst. Will have more on the selloff with Julian Emanuel next. This is bloomberg. Guy a pretty punchy selloff in the u. S. Session. Big tech leading the losses. The nasdaq 100 heading for its worst day since june. Joining is a Julian Emanuel, bti cheap equity strategist chief equity strategist. Can you put your finger on why this is happening . Julian cap the most logical reason is if you go back to the low on march 23, the nasdaq is up 83 . At the same time the s p 500 is up 63 . We did a lot of work that shows when you have august as strong as this past august, together with good june and july, there tends to be a measure of give back in september and october. It is wellknown that september and october tend to be volatile. If there ever was a reason for there to be an expectation of higher volatility between the election and geopolitics and whatnot, here we are. Alix we are already off the lows. Will this be a buy the dip thing . 3. 75 sdaq is only down versus 5 . Is this going to be a buy the dip thing and tomorrow will be a different ballgame . Julian tomorrow could be a different ballgame, but the last few days have been telling you the Options Market has been right. Massive upside volatility yesterday and massive downside volatility today. We think that push pull will continue, probably with the downside bias. Ultimately, given the degree of the rally we have had, a little bit of a correction would probably be a healthy thing for markets, particularly when considering the extent of the risks. What you think about the comparisons between where we are now and the year 2000, or the runup to the year 2000 . Tension hast of the been focused in recent days on the Options Market, how the Retail Investor has been a strong buyer of upside call options, primarily short dated, the weekly, monthly. That is a dynamic you would think to see exactly in the year 2000 because you did not have weekly options at that point. That kind of enthusiasm was part and parcel of what we saw in 2000. In a lot of ways, given the frantic nature of the activity and the way the Options Market has been distorted with upside being more expensive than downside across a number of the highest performing stocks, there is every reason to be able to think the activity is on par with 2000. Guy how aggressive alix how aggressive would you be in selling tack and buying value today . Julian you have to ask yourself is the blowoff that we think started a couple weeks ago in the nasdaq over . Going back to 2000, those that tried to time it too early did not do well for a number of months. The last six months of the rally you were up 100 . , you needperspective to take a balanced approach. It is almost as if you want to rebalance your portfolio. If you have too much technology, this is the time to start taking a little bit of it off. And reallocate the financials. We think the fed has changed the game and financials ultimately are going to lead the market higher in 2021. Guy is this what happens on the day we see a vaccine candidate being announced . Julian a lot of people seem to think that the ultimate sell the news event will be when there is a vaccine that is announced. The real issue is if we are going to get a vaccine between goingd november 3, is it to be trusted by the public . That is an open question. Ultimately what you need to see is some sort of stability in the economic reopening that will help fuel higher stock prices because there is a large disconnect between the market and the economy. That is an open question. Guy always a pleasure. Julian emanuel of btig. Up next, balance of power this is bloomberg. [ sigh ] not gonna happen. Thats it. Im calling kohler about their walkin bath. My name is ken. 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David from bloombergs World Headquarters in new york to our tv and radio audiences worldwide, i am david westin. Welcome to balance of power, where the world of politics meets the world of business. We will start today with markets because equities are on the move and for once big tech is leading the way down, not up. Abigail doolittle is here for an update. Where are we . Abigail a selloff on the day and it feels like it is out of nowhere. I would argue that is not the case. 2. 7 ,now the s p 500 down the nasdaq down even more. The new york faang index leading the way. The new work down 5. 2 . The reason this is not out of nowhere is because yesterday we had jitters in the morning, but by the end of the day it was the best in two months. Now were looking at the worst day in two months. All of this out of the too far, too fast rally out of the march lows. If i use apple as a point in case, apple is 65 bo