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In a single session. Its worst ever single day. British drug giant astrazeneca halts the trial for safety review after an illness during its test. And British Airlines shares open lower ragging on the travel sector. A ton of Market Action here in europe. Lets look at how the markets are opening in the session a rebound coming together. Yesterday, the main benchmark dropped to 1. 61 in italian and french stocks. The market up and the cac 40 up 0. 7 initially, there was signs of trading coming through in the early moments on the back of this news late yesterday that they have halted their trials as one participant in the trial has fallen ill not enough to get the market down we are seeing positive momentum now. Lets look at positive sectors we have oil and gas up, telecom up and we saw the Oil Price Plunge wti falling 7. 6 brent down and we are seeing a bounce now utilities and majors are the best market. We have travel and leisure taking the biggest hit down 4. 4 we have a few stories coming through. Youve got the stock 600 index up 0. 8 . So shrugging off some of those losses some of the Big Questions on the back is what does this mean for that money coming out of the tech stocks. Will it be recycled to other parts of the market. Europe stands out on that front. Lets take a look at travel and leisure. The worst performing sector. Concerns around a second wave of the virus in europe as case numbers rise in various countries in the region and governments imposing restrictions to control the outbreak so that weighing on travel stocks this morning former systems ceo chambers insists tech stocks will continue to dominate even as they trade in the short term it will be the place to be over the decade. High tech stocks will outperform our traditional businesses as every Company Becomes digital, i think technology will become more and more important to business and the consumer. Tech will outperform the Traditional Market 2 to 1. Speaking to cnbc, galaxy ceo predicted further volatility ahead. We hut the highs ahead for nasdaq and tesla the psychology has to change. It is slow to change people have made a lot of money in the dip lets bring in our first guest, global head of equities great to have you with us on such a big weak for equity markets. The tech selloff continuing yesterday sharply. The nasdaq down 4 the session or is this going to lead to more of a blip. Thank you for having me this had been driven by technology and the driving force in this rally. What weve seen coming down to humanity weve seen significant decoupling on the underlying fundamentals and i think it is a healthy correction you made an considering point that there are three cycles to watch. The virus, the economy and markets. How would you describe the relationship between the three so i think we have a situation at the moment where we have unprecedented uncertainty we have a situation where the virus is what started all of this this is having Significant Impact on the economy. We have the Financial Market that is forward looking. What we are seeing is the economy picking up some pace from a very, very steep transaction. We are seeing the virus which started all of this is not over yet. On the Financial Market side, we have seen the market clearly impact the recovery. There is a clear disconnect between the economic recovery and what the market is telling us try to tally that view or description with your point being a healthy correction and the tech selloff what does that mean for markets overall. Are we going to see investors recycle some of that money and some of the lesser love part of the market in the value love stocks for example this is a good point. When you look at the market overall, it is expensive the overall high market really hides a value dispersion one part of the market is really expensive and the other part is quite attractive what we are seeing now is a little steam come off the Technology Base which has really led the rally. Weve seen a sector rotation to the comparements, which are key. When we look at it is what is implied in terms of expectations and we are finding really attractive opportunities to the comparements with which have led to the rally getting to those sek torz you find value there is a lot of interest around some perceived value opportunities in europe. A lot of concern that they could prove value traps. How do you differentiate between the opportunities and value traps you have comparements of the market where the disruption in the retail and areas such as media, autos might really prove very, very difficult i dont think these are the sectors that are worth pursuing. You have some areas within value which are not disrupted. Talking industrial materials where i think implied expectations are low in the recovery we are seeing at the moment i would go after the quality business in strong benefit in parts of the value market which are not disruptive asking you what is priced into the markets about the vaccine that theyve had to halt their global trials. What do you think the market is expecting in terms of the market of a vaccine and if we are looking like we wont get one until early next year, what does that mean . There is a lot we dont know. We dont have all the data yet there are three areas of concern for the vaccine. There is the virus, the rdna and the rrma what we know is that they had issues and we know there is significant phase three trials being announced in the second half of this year. I think we could get a lot of lo news on this what weve seen in the market reaction, particularly areas that are depressed because of covid, they are very, very sensitive to the vaccine announcement kas pir, thank you for joining us this morning. Lets get over to asia we have a lot of action overnight. Matt joined us with more on how the asian markets closed it was a weak session for markets across the asia pacific. Not as bad as what we saw on wall street. Not on the order of the 4 decline when it came to the nasdaq a tech of the tech heavy losses not fairing too badly. Down around a half of one percent. The Australia Market was the worst off by about 2. 2 at the close of trade a surge by some 18 in the month of september lets look at the china markets. Where we did see selling pressure come through late in the day. We did get inflation data out of china as well. Consumer prices gaining 2. 4 over a year ago. That was in line with expectations more signs that a factory deflation there is slowing take a look at the japanese market the nikkei down more than 1 we were watching a selloff the socalled whale for that tech binge that has been on of late we did see softbank shares weakening in the order of 2. 9 but the stock was down earlier we did look at some tech names around asia. We did see the number of them the likes of alibaba, samsung, sony and taiwan all losing grounds but not like what we did see in the United States overnight. Thank you for running us through that you can follow us on twitter to get involved in the conversation plenty of fast moving action around the vaccines. Always love to hear from you you can tweet me directly cnbc julianna coming up, astrazeneca suspends its trial after a volunteer falls ill. Well bring you the latest after the break. What if you could have the perspective to see more . 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Welcome back nine of the leading vaccine makers have announced a, quote, historic pledge to up hold efficacies the declaration comes amid concerns safety might be ignored amid of rushed approvals ahead of the election. Companies like astrazeneca, moderna and others have agreed not to seek approval until after stage three. Adding it is unlikely to be approved ahead of the u. S. Election in november we will not really return with ease to a degree of normality we all seek until we have a safe and effective vax ination, i believe well have that by the end of this year, beginning of 2021. I believe that will be a game changer for us shares of astrazeneca are in focus after it placed its leading vaccine trial on hold after one British Volunteer suffered a serious adverse reaction a full safety review will be carried out by an independent committee. Our guest from Cardiff Medical School joins us now. Doctor, thank you for joining us on the back of this astrazeneca news could one serious event derail a whole Vaccine Program . If this serious event is proved to be linked to the vaccine, could that mean astrazeneca is no longer a contender . It would be bad news for this vaccine but clearly we need more information before we can draw any conclusions. They will make a recommendation whether or not the trial can resume in due course astrazeneca is using one approach in the development of the vaccine, the viral vector approach moderna and the other leading candidates are using messenger rna. If this does prove to be an adverse event driven by this vaccine, does that have any implications for these other vaccines given they are using a different approach no. Clearly, i think it is important there are these different approaches as far as the messenger rna and vector and other approaches like protein vaccines it is important all of these are trialed and move forward so well have options in due course if one particular approach is found to be too risky and the side affects are attributed to it, there are options. Nine ceos of the leading vaccine making Companies Sign this pledge to put safety of the participants first, keep it a top priority and to ensure sufficient supply and ranges what does that mean, a range of options. How many do you envision having when these trials are all through . In terms of vaccine doses, well need dozens of millions to vaccinate the large portion of the worlds population it is important to have a number of different Vaccines Available. Certain vaccines work better in certain age groups or with underlying conditions. It is important that as many as possible are taken forward and well have a range of different Vaccines Available that may make it easier to scale up production in terms of doses available. When we look at the development, some are using an approach like sanofi but moderna using messenger rna and there is no Human Vaccine used with this technique before what is your view. Do you think well likely see the well established approach or is there reason to believe these new approaches could also be successful we dont know at this stage we have to wait for the results of the phase three certainly the preliminary results from the Moderna Vaccine suggest that it would be effective in eliciting appropriate immune responses in the early phase one and phase two studies but we have to wait for the efficacy studies and the longer term larger number of participants in these phase three studies to give us the safety data required before these could be put to routine use. If we could look ahead into the scenario where we do have vaccines or several that could prove to be successful, then comes the issue of distribution and getting these around where they need to go and transporting them and that they need to be kept cold. How much of an issue do you think this is . It is a huge challenge. There has been no other Vaccination Program like this the vaccines that are shown to be effective and taken forward as to what storage requirement for one dose or two dose regiment it will be a major undertaking when polls were taken about the growing mistrust on top of existing concerns taking vaccines more broadly. A report suggests a third of americans dont want to take the vaccine. How much of an issue is that it is a major problem that would be worse if a vaccine is rushed through too quickly and found to be not effective or found to have safety issues. We dont know just what portion of this population would need to be immunized before we have socalled herd immunity. Lastly, doctor, what is your best guess as to when we will have a vaccine available for the masses we dont know the answer but i think it is going to be perhaps early in the new year before realistically we have a chance of any vaccine being able to be taken forward. I dont think it is going to be before the u. S. Election in november really appreciate you taking the time to help us understand these complex issues france has reported over 6,500 new cases over the last 24 hours pushing the total number past 335,000 several cities are considered red zones. As children have returned to classes, theyve been prompted to close down schools again. Social gatherings in england will be banned starting next week the government has warned that those who break the rules will be fined it does not apply to work places and schools and places where gatherings are carried out in a safe way a rebound of coronavirus cases causes travel stocks to rebound lower. More coming up next. Im hector. Im a delivery Operations Manager in san diego, california. We were one of the first stations to pilot a fleet of electric vehicles. Were striving to deliver a package with zero emissions into the air. I feel really proud of the impact that has on the environment. We have two daughters and i want to do everything i can to protect the environment so hopefully they can have a great future. Welcome back to street signs. Im Julianna Tatelbaum these are your headlines selling off the market higher after the nasdaq sinks to market territory. The tech wreck on wall street wipes out 1 trillion of market cap of the six biggest tech stocks while tesla loses value in the worst ever trading day. Astrazeneca halts the trial of its Covid Vaccine for a safety review. Troubled Airline Operator iag wins approval for the 2. 75 million rights issue as shares move lower dragging on the travel sector. Lets get a check on u. S. Futures and how wall street is posed to open. We have a rebound coming if these levels hold. The dow set to open higher looking at a bit of a rebound for the nasdaq looking to open about 180 points higher. Futures are jumping around we could see a lot of change between now and when the market opens. Yesterday plunging lower s p 500 poised for a sharply higher opening looking at oil markets we saw wti fall nearly 8 . This morning, we are seeing a rebound as well. Wti up 1. 5 european markets about an hour and a half into the trading session. Dax 1 higher, ftse bouncing nicely the main benchmark dropped 1. 1 . Investo investors shrugging off news while they investigate a safety issue and the weakness from yesterday. One of the Big Questions, where do they put that money coming out of u. S. Tech do they recycle it does that mean more demand for european stocks. Lets look at airlines we have red on the board travel and leisure the worst performing part. Easy jet taking a big hit. Carnival and lufthansa also trading lower. Iag share hoelders have voted i favor of issuing 2. 75 billion of new shares. Ryanair has sold the first euro bonds in years as debt markets start to reopen to airlines placing billions in orders relative to the relatively Strong Financial position having raised an additional 4 billion just last week airbus remains ahead of boeing supplied 39 jets from last month, down from 49 in july. Boeing received 13 orders. A quarter of airbus jets went to low Cost Carriers as budget carriers prove more resilient. Senate republicans will present a small version of the stimulus package saying the bill would be targeted. Democrats in congress dismiss the proposal as emaciated saying it contains, quote, poisoned pills they would never support and does not include provagss for airlines or airports they had pushed for a sixmonth suspension of the payroll package due to expire this month which could lead to mass job losses to discuss all things airlines, lets bring in director general at iata. Thank you for being with us this morning. A broad question for you how would you describe the state of the latest passenger data the airlines are in a very, very bad shape is of course because of the covid crisis, lockdown and the closure of borders. The main consequence is during three months, we had no passengers slow recovery came back in europe and asia. We reached a threshold around 2019 in europe in asia and domestic markets in china. In august, we reached a ceiling. We saw a little decline in traffic in europe. Whether in asia or china, we saw significant recovery and now we are reaching 80 to90 it means that the situation is still very, very worry some for airlines we are in a terrible situation we are asking them to launch the traffic to where we were before. Fliers are also frustrated with the rules particularly around quarantines. I know you have been vocal against quarantines as a mercedes measur to control the outbreaks how have your discussions been going . Are you seeing any traction behind the idea of bringing in perhaps more Rapid Testing as a solution rather than quarantines . Thats a very good question we fully understand governments want to avoid importing the covid19 in their country. On the other hand, we must be aware that putting people into quarantine is a complete stop to any trouble and will add trouble. We say first of all, we should move to a kind of zero case approach to a risk based approach well have to live with the covid19 everywhere in the world. The point is how to live with that, controlling the pandemic to do that, if we accept this approach, we propose to test passengers so the Testing Process to ensure we minimize the risk of the virus between two countries. We are discussing the government and within the iko organization in montreal. We are discussing with the international organization, with w. H. O. For instance to try to find the right process knowing we understand the pharmaceutical industry has significantly improved the testing, especially by putting into the market with the antiaga the antigen tests and we hope we could reach result by the end of september to implement a Testing Process for passengers that could lead government to lift travel restrictions and particularly the quarantine. Let me make sure i understand clearly, these antigen tests are 15minute tests launches by roche and abbott, by the end of september, we could see the government use these tests as a way to reopen travel thats what we are aiming at. Perhaps it could take more time. The point is to convince government with a reasonable and safe approach based on testing passengers that could remove the quarantine measures. So we have to see how we implement this testing, one or two tests at departure airport or arrival airport there are a lot of things to be designed and discussed and we are pretty optimistic that well convince the government to the safe approach, which is key. Thats the path you see to reopening the travel market. Youve also made assertions as to how the government should focus relief measures on financial and regulatory relief. How much more is needed to protect against further industry failures it is a very good but difficult question we have already obtained a Strong Financial support from government and we are grateful the support from governments around the planet have been successful the more this crisis lasts the higher the financial needs we will need the support the level is very tightly linked to the length of the crisis. If we recover quickly, well not need strong support. If we dont, if the traffic comes back, well need probably some more cash injection to be able to bridge the gap we have in front of us, which is still very, very, very large you talk about the dependence on Financial Relief is linked to how long this will last. Saying traffic will be restored to 75 to 80 of winter levels. Is that realistic to you we think that is much too optimistic our forecasts are much below that we think our forecast are pretty strong when we see the traffic in september. In august and september already. 75 to 85 is too optimistic we are asking all the governments for the relief or to extend the waiver they have already granted to the industry which is key to us. On the regulatory front, you want the waiver on the use it or lose it slot rule. Do you think that will happen . Yes first of all, we have obtained this waiver for the next winter season and in many parts of the world in asia and china and the americas we are still expecting the decision from the eu why is it important . We cannot fly these days and we would like to fly but we have no traffic or passengers and a lot of restrictions so we cannot fly. If additionally, we lose our slots for the airlines, its a catastrophe. It is difficult for the airline to plan in advance the route they are going to open and operate without having some uncertainty. So the reason why everywhere in the world, the governments are granted this waiver for the use it or lose it slot rule. Also the reason why we think the eu shouldnt grant this waiver for the same reason. The earlier the better, then we can plan our winter season ands it better for the passengers above all. Thank you well leave it there the director general at iata coming up, the u. S. Market selloff wipes off trillions from six major tech stocks. More when we come back so youre a small business, or a big one. You were thriving, but then. Oh. Ah. Okay. Plan, pivot. How do you bounce back . You dont, you bounce forward, with serious and reliable internet. Powered by the largest gig Speed Network in america. But is it secure . Sure its secure. And even if the power goes down, your connection doesnt. So how do i do this . You dont do this. We do this, together. Bounce forward, with comcast business. Welcome back to street signs. Sorrell says he expects the digital system to be split on the issue of tiktok, i thinks that going to cause significant disruption in the digital marketplace in the sense that youll have two systems whoever is in the white house, whether the incumbent President Trump or biden, i dont think the policy towards china will change much. Ive seen presentations that suggest both democratic and republican presentations that bashing china is a vote winner certainly in advance of november 3. If it continues at that pace after, well see speaking to colleagues, addressing rumors that the social media giant is interested in joining the bidding war of tiktok i know we dont comment on rumors this is one our 13yearold daughter has been asking a lot weve done about a dozen acquisitions mostly people, sometimes Technology Every once in a while, we think about products and businesses that could help us accelerate us if there is something big, you shouldnt be surprised if you hear your mentioned as an Interested Party we have the dow jones plunging 600 points and the s p dropping 3 . All sectors did end in negative territory. The tech heavy nasdaq dropping more than 4 , the third negative session in a row the faangs were hit relatively hard we can look at how those were affected yesterday facebook off more than 4 . Amazon off more than 4 . Apple taking a steep hit, more than 1 billion wiped off those six major tech stocks. To try to understand where we go from here, jay jacobs joins us head of strategy at global x what do you think of the pull back weve seen in tech stocks is there an opportunity to get involved at more slightly depressed levels i think investors have proven a Good Opportunity for them. To put this in context, the nasdaq rose 80 and then pulled back if you think about it that way, it isnt that major of a move, those moves are still sitting on substantial gains in the Technology Space it helps shake out some of the shorter term investors and allows longer term investors to seek better entry points to hold on to stocks for the next decade investors have pointed to factors driving stocks higher. You have the fundamental story behind these stocks and ultralow Interest Rates and the promise of lower rates for longer that leads for a search elsewhere youve got virus concerns and growth story that drives investors. Moving forward, what will be the key driver well see a substantial growth we are already starting to see it in the Cloud Computing space. Growing revenues by 20, 30, 40 a year they are Early Stage Companies you dont expect them to be practical. Over the last quarter, weve seen surprising results. Companies like zoom already generating a profit. Weve seen massive forces like salesforce they cant help but be profitable then 10 years down the road, they have all these new customers. Theyll raise prices because their software is deeply integrated and customers will be happy to keep paying it. I think well see substantial growth of many Cloud Computing companies as people understand this is not just a short term but a longterm transformation of businesses relying on this technology it feels the main push back is valuation it isnt that there is a strong structural growth story. How far out should investors look typically we look at 12 months, maybe two years out. What about for these tech giants it is more about their growth rate than looking at price to earnings they are growing revenue at 20 a year it is such a fast growth rate it justifies those high valuations. Many of these are showing defensive characteristics. Many seeing not to recover many of these will retain most of their customers if you are a business, you cant fire a Video Conferencing company right now. You cant tell your Client Management system to take a hike you need that in your business if you combined the defensive characteristics with growth rates, it justifies the valuation rates to the market. Looking at the long term for these tech giants, this comes straight to mind at least investigating the dominance, how would you describe that risk longer term it is certainly an unknown but hard to say if thats a risk that will bare out it is not necessarily a risk if these Tech Companies are broken up you dont have a ton of competition. You have the big names like google, amazon, microsoft and facebook, beyond that, they are really stifling competition because of their size. If you saw amazon break up web services, i dont know ifs that a terrible thing for Share Holders if that unlocks more value if those parts are worth more separately and fosters more longterm competition. Lets link the tech stories on what is happening on the virus front. We have vaccine news on the forefront of investors minds. What happens if and when we get a vaccine knowing these tech stocks have been where a lot have parked their money with a reluctance to the reopening styles no matter what, the economy has changed. We are not going back to the 2019 economy just because there is a vaccine weve seen a ton of transformation happen. Weve seen 26 Retail Companies go bankrupt. They are not coming back we have millions unemployed and permanent job loss those are not coming back either with the vaccine, it does help give people confidence to return to their offices physically or to travel more than before a lot of these changes weve seen around web Video Conferencing, buying on line instead of Going Forward that will stick Going Forward even if we are in a safer place. What areas are particularly attractive to you . As mentioned, the Cloud Computing space, with he see this as a major cycle there as a lot of these companies are going to be able to raise prices and customers will have to bite the bullet and pay it. The second area we are interested in is the internet of things we are seeing wearables be able to detect covid symptoms early, temperature monitors all around us, we are seeing technology being used to measure and detect and defer covid from Going Forward. Great to have you with us svp head of research and strategy lets look at u. S. Futures weve got green across the board. The dow jones set to rebound about 180 points if these values hold after plunging 600 points yesterday. Nasdaq poised to start 185 points higher if these numbers hold thats it for us Worldwide Exchange is up next. I feel like were forgetting something. Let me check. Xfinity home gives you peace of mind from anywhere with professionally monitored Home Security built around you. No, i think were good. Good. So when youre away, you dont have to worry. The tent. We forgot. The tent. Except about that. Xfinity home. Simple, easy, awesome. Hey look, i found the tent and, see, its safe. Call, click, or visit a store today. Could the big selloff end today . Futures are higher as the markets hit the first three losing sets since june six of the biggest names you know losing trillions. That includes tesla as the selling pressure takes hold. Astrazeneca pausing the latestaged vaccine trial due to an unexplained illness

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