The faang index down 1. 7 . If you can believe it, from the low in march to the recent high, the faang index up more than 100 . We are seeing healthy consolidation. The question is whether or not there is more to go. If yes, there could be big pressure on the indexes. David i can believe it because i read it in your note. Big tech is one thing. It has gone up a long way, but can it come down without taking the rest of the equities down with us down with it . Abigail very difficult. The reason100, and we have the underperformance toward that index down more than ing 40 of its weight goes to the big tech names. We have chinese stocks week for the third day in a row. Over last month that new york faang index and the big tech stayathome names tracking exactly with the shanghai composite, which you could call a mini bubble. It appears to be bursting. If that is the case, there could be more pain ahead, not just for u. S. Big tech but the overall indexes for the reason youre talking about. T
On theinue to see a bid bond market. We are where we have been for a while now. Trading in a relatively high range. Earlier we got down to the bottom of that range. We are 60 to 75 in terms of the range we are seeing. What have we got coming up . We are going to carry on this conversation regarding the virus as well and what is happening in texas. We are going to be talking to associationscal covid19 task force had. Looking forward to that. I want to pick up on something you were talking about on how to europe is starting to outperform. Metcalfe, have we learned anything right now . Yields lower in the u. S. Bond markets. Europe by 1 . What does that tell you . Michael you might argue that markets have been blind to some of the data we have had. Equitieshe fact that have held in and done exceptionally well over the last few months in spite of what has been and will be the worst economic downturn we have seen, i think that is impressive. What we are learning is liquidity is sufficient.
Having a free and Fair Election without external intervention, even when both sides were perfectly wellprepared to play by the rules. We now have a situation before the pandemic hit where that is much more problematic, where issues of saying there is voter fraud happening, impersonations, you should not be doing vote by mail. All of the president s all of the measures for a president who is well behind in the polls but has the ability to shape the outcomes of the way the election is put together. In the Worlds Largest economy, the idea that the election will be contested and half of the population will think it is rigged even before the pandemic hit, we thought that was the single largest risk affecting the markets in 2020. Of course, the pandemic makes this a lot worse. Inid it strikes me that 2016 most of us were not thinking about the election being contaminated by social media disinformation, russia trying to intervene in the election. Now we know what happened. We have much better
Isaac there is not much agreement we have down here, but that is undeniably top of the list. What we have seen over the past few weeks is both parties coalescing around the idea it is necessary and in the vital when it comesest to my policy with china. It is not just here. It is also our partners around the globe. I think the eu has been more serious around this matter. We have had some developments in terms of Congress Passing limited sanctions and china responding. Note thatrtant to thus far the backandforth between china and the United States has been measured, proportional, and largely symbolic. My call is we will continue to have these back and forths and a degree in headline volatility, but there is no reason to believe leaders on either side of the pacific want to see a massive unwind of their relationship in the near term and theyre battling with issues domestically. There hasyou say, been backandforth in the last day. There is also been backandforth between joe biden and Presi
Of 1 ow by only 1 10 versus the u. S. Dollar, but nevertheless it seems to be a logical move for the markets. In terms of what we have got coming up, we will be talking about whats happening in the race to find a vaccine. We will be joining by the ceo of novavax. With the United States getting done earlier on. This stock has been on an absolute tear this year, today really adding on to that as well. We will get that take on the progress thats being made and what the money is going to be used for and in terms of where he is relative to his peer group in the race for the vaccine, the many vaccines that we will ultimately end up needing if we are not going to do more damage to the global economy. The European Commission is out with its assessment of the european economy earlier on, warning that the coronavirus Economic Contraction will be bigger than anticipated earlier and the recovery will take longer than previously estimated, forecasting a 3. 7 drop in growth this year. Joining us fro