the big events are back. xfinity is your home for the return of live sports. ♪ a longer term is not looking good in terms of the support for consumption. >> this economy is dynamic but not dynamic enough. >> doing too little is the problem. it is hard to see what the consequences are of doing too much. >> we are seeing an income crisis. we are seeing an action from washington dc and we cannot afford to do this again. bloomberg surveillance with tom keene, jonathan ferro and lisa abramowicz. on: good morning, everyone

radio and television, worldwide across this nation, the beginning of the new year for business. the tuesday after labor day marks a new beginning for wall street. abramowicz,d lisa what a beginning we marked with new volatility. touching new lows moments ago on nasdaq features. jonathan: nasdaq features down more than 1020%. we are still up on the year by more than 30%. some of these companies are performing well for a good reason. they have done fantastic through 2020. really strong transformational forces accelerated by the pandemic. it is about the price of the story, what price are you willing to pay. am: what an odd market to see 10 year yield in three basis points, three year bond 1.43% as well. substantiallyoil

lower, it has been off the radar for weeks. texas.west here are correlations tangible. as you mentioned earlier, tons of supply coming on, that is all that new fiscal debt. get $50 are going to billion of treasury, it is a record amount. this leads off of a heavy supply of treasury sales this week and it leads off in another week of uncertainty when it comes to stimulus. we don't know how big the stimulus will be so we don't know how much debt the treasury department will have to sell at a time of uncertainty about inflation as well as how quickly the economy is going to get better. tom, so much uncertainty. apple shares down 4.6% ahead of the open. to trillionwn dollars. one more question before we get

$2 trillion. -- it is about as long as mulan. the real yield has fallen off the radar. if we get global slowdown, that real yield becomes important. jonathan: there has not been a real yield. it has underpinned some valuations. lisa mentioned supply. look at the front end of the yield curve. the yield is 16 basis points. the front end is still anchored by the federal reserve and there is no sign that the supply is disrupting the treasury market. the front end, we could develop an argument about the longer end. at the moment, it is the treasury market wide open. tom: we are thrilled to get in here with us on radio and television, christopher marangi with gabelli funds, chief

investment officer. i want to start with equity hysterical -- equity hysteria that is out there. how do you define a correction in 2020? newt down 10% or is there calculus for gabelli funds? christopher: this is healthy. the correction is concentrated in a few stocks. they have accounted for more than 100% of the gains of the s&p so far this year. this is a different correction than we have seen. tom: here is the money question and when i saw the lineup this morning when i walked in hours before jon ferro and lisa abramowicz, i want to point out that i went to the heart of the matter which is how should our listeners and viewers who are not sophisticates in derivatives, how should they adapted to the nasdaq, do they just ignore it? christopher: i am certainly not an expert on market internals

and why the market is short, but it has introduced volatility, it is powered to move up with other factors and it appears to be driving reduction that we are seeing in futures. something to understand and be aware of, at the end of the day, we are looking at the fundamentals of the stocks and the fundamentals of those big five stocks have been terrific so far this year. jonathan: just trying to work out the appropriate multiple to balance the companies. can you give us some insight on those conversations? christopher: that's right. in general the rates are pinned and appear to be pinned for long time. you should be willing to pay a higher multiple for any cash flows. the question is how durable are the cash flows of those big five if that is what we are talking about and what you would be willing to pay for them. it seems that one year ago obviously they would have been argan prices.

at this point, the market is flowg a bet that the cash assets will last a long time and doubleey glow -- grow gdp growth for the next 15 to 20 years. are you holding, buying or selling into this great tip of of 2020?reat dip christopher: we have been buying the smaller and unloved value stocks. some of those are still up 30% this year. russell 3000f the is off 5% or 30%. that is where we are seeing bargains. a little bit of facebook over time. buffett having been big on the value site. there are some issues there that were careful around china.

this has not changed our view on valuation yet. lisa: at a certain point, it does become concerning from a safe perspective the idea of what does this due to the marginal investor who has an allocation in safer assets was going to go into stocks but suddenly sees these high flyers and stables of certainty being absolutely pummeled, even if it is short-term and year today, the gains are tremendous. at what point do these become systemic issues? do they become systemic selloffs that impact the stock market? christopher: that is a great question. last week those big five were almost one quarter of the s&p 500, certainly an unprecedented level of concentration. s&pou saw is buying an index fund, you are getting diversified equities you might need to rethink that. those five companies not only are a large part of the s&p but they are driven by the same kind of dynamics, even though they are different industry

classifications, all essentially internet platform companies subject to the same risks. that is unprecedented and i think leaves the average investor exposed to more risks than they were thinking they were taking. tom: nasdaq taking new lows. jon ferro, i give you great credit for this because i keep jp morgan downd 24%, it shows the damage out there in the banking area alone. jonathan: the banks have struggled through 2020. jamie dimon said months ago that is not a normal recession and we have not seen the impact just yet. it might come later this year. as you look at the financials, how do you think about that? christopher: these are obviously names that are very sensitive to the shape and absolute level of interest rates and that is not had -- that has not been a good story. interest markets were starting to perk up last year and now it is compressed again and we don't see them expanding anytime soon.

that being said, they are priced for that kind of outlook. the other dynamic that invokes a lot of fear, especially in march about credit. credit seems like it is going to end up better than was feared. it is still going to be an ongoing issue as we work through this recovery. tom: new lows this morning. of 350 nasdaq point. techfor you guys does become cheap? christopher: i don't know if i can answer that at a macro level. we are looking at all sectors. a lot of those business models among the big five are recurring revenue models, low capital intensity, these are all things fundamental investors should love. we are point, what do you pay for that. and welooking at tech are looking at technology embedded within other sectors. to automationm ai

impacting the productivity of other sectors, that is where we are looking at playing tech. we are also looking at derivative manners. the value of broadband has been highlighted through this crisis. you cannot get any of those tech services without a fast broadband connection. i would not be here doing this without a fast broadband connection. i willing to pay a lot for it and so that gives those companies a lot of pricing power. that is why cable companies are now known as broadband infrastructure company. jonathan: great to catch up as always. it started about 4:00 a.m. eastern time and it has continued and we have taken another leg lower. we are down 3% on nasdaq futures. if you want to get the single names stock specific, apple in the premarket, this is a $2 trillion company, down 5% in early trading. tom: keep that chart up.

for bloomberg radio, i will describe it for you. not every point, but every point on the intraday chart of the nasdaq is a series of lower highs through a percentage of the morning. the percent of lower highs is critical. right now that is a vector self. jonathan: a messy start to the morning. nasdaq futures down 3%. i went to the gym this morning. tom: i did not. jonathan: very quiet. they are limiting the amount of people that can go in. after 60 minutes, you have to vacate and they come and clean the whole place and another batch of people come in. so on and so forth throughout the whole day. that is how they are operating in london. tom: really? jonathan: i just thought i would let you know. tom: you mean the pandemic pound? jonathan: she may or may not

have informed me that she is trying to put you in that direction and asked me to bring it up. it is worth a try. program, chiefis european economist on how long it will take. this is bloomberg. ♪ >> president trump has discussed spending as much as $100 million on his election campaign. it would be unprecedented for an income did president -- incumbent president. joe biden's campaign has been raising more money than the trump campaign in recent months. drugmakers racing to produce vaccines have come out with an unusual public letter in which they promise to avoid shortcuts on science as they face pressure to rush a shopping markets.

amongo signed the pledge moderna, pfizer and others. president trump says the u.s. could approve a vaccine in october, just before the election. president trump is vowing to sharply scale back economic ties with china. he threatened to forbid companies that do business in china. tariffs would be slapped on countries that leave the u.s. to create jobs in china and other countries. the president said that if giovanna was -- that if joe biden won the election, china would own the u.s.. also, direct moves on tiktok. a proposal designed to prevent foreign governments to acquire data. u.s. has accused tiktok of sharing information with the chinese government. shares of tesla are falling today. the electric carmaker was named on the s&p 500, but it did not happen. that may have been because of the possibility -- profitability metrics and murky forecast.

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. this is bloomberg. ♪

the alliancend with china once and for all. we will impose tariffs on

companies that deserved america to create jobs in china and other countries. if they cannot do it here, then let them pay a big tax bid and build it someplace else. jonathan: that was not a campaign rally. it sounded like one. that was the president of the united states coming out swinging. here is the price action this tuesday morning. equity futures much lower over the last four hours. a breakdown of the s&p 500, nasdaq futures down by more than 3%. down 385. you can see the risk aversion price asset into the commodity market. into the bond, a bit of a long end. down four basis points. into the fx market, the 1.17.ollar, at tom: we could do more in markets

with a real breakdown on nasdaq. in west texas intermediate. right now, on the complexities of china, we are really going to rip up the script and we can do that with our chief asia correspondent who can synthesize a domestic chinese experiment with what we see internationally. it comes back to the election and trump and beijing and washington as well. even further complexed with the release of this movie by disney. i go back to last summer where the lead actress of mulan somewhat came out in support of the protesters that we saw in hong kong. that honge complexity kong and the people of china face over this movie in this moment for china. i think it speaks to the ongoing tensions between beijing and hong kong as beijing starts

to enforce sovereignty over hong kong over the past year or so by routing through strict national security law and of course by the response to the protests of last year. i think you have a very divided populace at the moment, very divided opinions of beijing where local assemblies were postponed essentially due to the pandemic. along, itovie comes has more to the flames of both camps in hong kong and deepens the division in hong kong. it is not a near-term circuit breaker in terms of any outreach or the other way around. jonathan: let's build on the word division, you used it several times. another division is the one between the u.s. administration and america, walt disney and

many companies looking for closer ties with china. how does this administration, if it gets a second term, look to get them to come along for the ride with them? enda: it is interesting. one of the things that came out of president's, yesterday were specifics around tax credits to bring american companies out of china and tariffs on companies doing business with china and the like. it is indicating that perhaps they are going on this decoupling. it is complicated because china does not just offer a lucrative market in the consumer goods area, it also offers scale for manufacturers at a competitive price when it comes to manufacturing elsewhere in the world. i think a lot of chambers of commerce will tell you it is easier said than done to decouple the world to biggest economies. it will be critical what kind of response we get over the coming week going into the u.s. election and how u.s. companies

respond to the message from president trump. i will say they are showing a lot of confidence. we had german officials honoring party members and officials for fighting the coronavirus and the pandemic proves its superiority over the social system. china is pretty confident despite everything being thrown at it now. lisa: they are confident and perhaps rightly so. the u.s. trade deficit with china reached the biggest since 2018 in august. it indicates what john is talking about, the division between what is happening at the white house. how much have tariffs prevented that trade deficit from being deeper and how much have they exacerbated it? caps really dode speak for themselves both of the value of shipment to the u.s. and the bilateral shipments of trade goods that were at the highest level in the month of

august alone. china's export machine has been dynamic over the last few months. it is not just medical equipment, but it is also electronic goods. a few weeks ago we spoke to toymakers and they were saying there order books were jammed heading into the holiday shopping season in the u.s.. the china export story is at the back of u.s. demand. the tariffs had an impact around confidence and had an impact in terms of marginal costs for operators. war really has become something of a sideshow to what we are seeing more recently which is the moves in tech and security and broader tensions over the pandemic. it looks like china is continuing to do well in the u.s. merchandise good story even though tensions are getting much worse. jonathan: great to catch up.

edna curran, bloomberg's chief asia correspondent. equity futures taking another leg lower in the last 60 minutes. nasdaq futures negative more than 3%. let's pick on a single name, apple, a $2 illion company, stock down 5.5% in early trading. from the weighting of apple on the nasdaq 100, it is 40% of the benchmark of the index. it is roughly half of that on the s&p 500 after months of waiting in these indices. let's be clear, this is about single names. the auction story, it is about single names and that has been the story. the single names with massive waiting in the nasdaq 100, the tech sector and elsewhere, that has been the pain over the last week or so. tom: within the physics of this is the word drift which is a really cosmic idea in the road of fad -- finance. again, it is a series of lower

highs and it is extremely well contained. i can get the famous surveillance cursor out and tell you that some -- from 4:20 a.m., it has been incredibly well contained. jonathan: lisa, how would you describe what we have seen play out in the last couple of days? this might have been one big whale pushing options up, tohing bullets -- bullish some extent, the markets have had to buy the underlying theory is it more than that? lisa: i find it confusing. the market action today is confusing to me. on friday we saw a selloff in treasuries which people were talking about the death of the six e-40 portfolio. today you are seeing gold continuing to drift lower. can we sayw much that gold has ended its run as a safe haven away from volatility in stocks? jonathan: nasdaq futures -3.3%. the coverage continues.

one hour and five minutes away from the opening bell. i'm jonathan ferro. heard on bloomberg radio and seen on bloomberg tv, this is "bloomberg surveillance." ♪

jonathon: the long weekend is over, summer is over in the united states and worldwide in the northern hemisphere. i should be specific. i know some of you might tweet me. let us get to the price action. equity futures are lower. percentage by three points and change. pointollar, one dollar $.17. it is a stronger dollar story. the crude market, lower by five percentage points. in theas been a whale options market. you know the decomposition process with the buildup of gas, sometimes they blow up. read "recommend everyone fold." it is absolutely brilliant.

when volatility hits wall street it is fooled by softbank. the conversation of the day for those of you worried about fiscal dynamics. jonathan ferro will look into the fiscal view. we will do that with peter west away, the chief economist of anduard out of york cambridge and operational research. the dynamics of this -- the dynamics of this debate is wrapped around culture, which is austerity is good. have we slipped away from the believe in the last number of years that austerity is a good and beautiful thing in a slowdown? peter: i think we have slipped away from that. i mean, i am not really convinced that that was ever the economics mainstream, but it was the policy mainstream. in germany, that was the view, and that is why we have seen relatively tight fiscal policy.

here in the united kingdom, the appetite for austerity to get the debt levels down is something that we will not see for a while yet. i think the mood of the new government in the u.k. and perhaps more broadly in europe elusive policy and living with high levels of debt. the infant -- the interest rate for this is incredibly low, and so, the bird and this will put on countries will not be as great as it might've been in the past. at some point it will have to be paid off. tom: i do not mean to interrupt, but i think this is the heart of the matter, the yoke -- the low yield environment. jonathon: so far, and when you use that language that at some point this will have to be paid off, what does that look like? peter: well, i think at the moment it is the last thing on

the minds of government because they are up to their ears in coping with the pandemic. when and if we get to this point, when the economy starts to recover quickly, when the tightening cycle begins again, and we are a long way from that. at that point, i think conversations will be about what will we do about fiscal policy. as i say, people will learn to live within us, and perhaps the idea that some of the debt will be effectively monetized. many of the central banks are it isg on this that and not putting a burden on the government, because the debt interest is being flooded by the by the floated -- footed bank of england. that is what makes it qe, that is when it eventually sold back into the private sector.

when you think about the history thee, japan, europe, and u.s., a lot of this has been sitting on balance sheets. so, we do not know how it will play. forever, that is qe you just keep maturing assets and you never forgive it, so technically it is not financing. there is another issue, and not just crisis response, it is the permanent change. we can all get our heads around what the crisis response looks like and we can see it. permanent shifts in the parade places liked and germany. can you speak to that for us? peter: sure. formerstart with, as a central banker, let me talk about what the fed has introduced, this idea of average inflation or price level targeting. it is not completely clear what

people will do. i think the key message is that that will facilitate easy monetary policy for longer. i am a price level targeting skeptic. it is a difficult thing to carry off and store up were -- and stop worrying about inflation bygones. as far as fiscal policy is concerned, i think we are in a new regime, because i think the idea of getting debt down quickly the way we did after the financial crisis just is not powerful. it worked very well for countries like europe, and i do not think the political cycle is there anymore. there are just too many other political problems around the distribution of income that makes fiscal policy and fiscal austerity not a palatable policy option. lisa: meanwhile they have a partner in the central banks. we have an ecb meeting on

thursday. the bank of england has considered and talked openly about negative interest rates. do you expect that to be a tool used by them in the not so distant future, especially given the fact that there is not an easy pathway to paying back some of the debt. allr: they have left it open to negative interest rates, but even back and my time at the banks, the idea of negative interest rates were very timely. i think they have more work to do on qe before they go down that path. they could do it. gettinghink we are close to the end of the road for negative rates for the ecb. i do not think rates can go much lower. lisa: hold on one second, and i am sorry to interrupt. you say they are getting close to the end of the road for negative interest rates. you think that they will move to a positive interest rate regime? peter: i do not mean that they

are going to reverse it, but they can keep rates at a very low negative rate that they want -- that they are at, and they will carry on putting qe in the system to ease monetary conditions. i think the big policy constraint question is at what point do they run out of government bonds and say they have to start breaking their own rules around which bonds that they are able to buy. that to me is a big question rather than when they can go more deeply into negative territory. at the end of the day, especially for an economy like europe's who are dependent on a banking system, you go into a reversal rate were negative rates start to do more harm than good. away --er west westaway. we welcome all of you to our simulcast. we are looking to the markets and we will look at that when we are done.

futures, -46. it is tough out there this morning. to sum all of this up, and when you look at the fiscal policy right now, it comes back to aggregate demand. we are seeing in oil, a real global issue of demand. would you suggest that demand is threatened in q4? peter: well, i think the big really the q4 is same question we have had for the last six months, which is what is going to happen to the virus and that consumer response to that. consumers seem very tentative about going out and spending money, so we have this aggregate demand shortfall, which is where the fiscal policy is piling into trying replace the spending. it is a bit different, this fiscal policy.

this is providing income to people out of work. it is not so much ago -- about getting people and outspending money, it is actually just propping up their income. as long as people are out of work or on furlough, there will be a need for this. the difficult question would be if the virus drags on into the first quarter of next year, as it could, is it really feasible that governments will carry on giving this exceedingly generous income support to workers who have not got yet -- yet got back into work. i think they will have to but it will put a strain on the debt. jonathon: great to catch up, we have to leave it there. peter westaway. we are a few minutes away from the opening bell in new york city. the price action shaping up as follows. nasdaq futures down 3%. a breakdown of about four eastern. we are down 3.17.

you can see the risk aversion cross asset into the fx market. euro-dollar south of 118. five basis points, the basis points 0.7%. a route in crude with a 37 handle down almost 6%. tom: crude is not a small item. $40.47. i am looking also that is linked in the last half hour, and that is the standard and forced 500. --forest 500. i am not sure we have that chart. i would get it out for bloomberg radio. we are beginning to break down off of the lows that we saw on the s&p futures. jonathon: it will be tough to see a rotation given the bond market action. if we saw high yields today coupled with tech lower financials might do some lifting and we might see cyclical elements doing the lifting.

with apple, a massive waiting on the nasdaq 100. about half of the weighting given the broader index, that is down 5.5% and it will be a big draft on the 18th -- the s&p 500. tom: i think this is so idea that the basic softbank widely presumed by a lot of call options, and the dealers would have to react to that with derivative hedges, and when the trade is over, you have to unwind the hedges, is -- as softbank unwinds the trade. as you mentioned, this was before we were out of the gym. he mentioned that the straw -- the softbank equity shares have been hit hard as they tried to unwind success. lisa: they have posted a profit on their position, they are still getting hammered by people concerned about what they are. i am struggling to find a narrative that explains the action. perhaps that is why people are

blaming softbank. jonathon: do not look for one, maybe that is the lesson. do not look for one. some people have spent the whole month of august trying to figure out why the market was higher and last week embarrassed everyone. tom: the dollar is weaker. jonathon: down a little bit more than 3%. this is bloomberg surveillance. ♪ >> with the first word news, i am kailey leinz. week learned that president donald trump is considering a step can -- with an hundred million dollars of his own money. the president had been scrutinizing handy -- heavy spending that failed to push them ahead. thus biden -- plus biden's campaign has outraged the trump campaign. president trump is threatening to curb the economic

relationship with china and promising to punish american companies. the president is calling on the firm's from being banned from getting federal contracts and impose tariffs on companies that leave the u.s.. president trump said that if joe biden was elected and -- that china would "own" the u.s.. in california the electricity process has gotten worse. it is expected to cut power to prevent live wires from sparking wildfires. the problem last week was a heat wave and this week it was a high wind off the pacific ocean. kamala harris made her first solo trip as a vice presidential candidate. she went to milwaukee where she appealed to communities of colors -- of color. she met with lack business owners and talked with latino activists. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries.

i am kailey leinz, this is bloomberg. ♪

>> economists are starting to call this recession a k shaped recession, which is a fancy

phrase -- for what is everything wrong with trump's presidency. the top arethose at seeing things go up, and those in the middle and bottom are seeing things get worse. jonathon: joe biden over the peterd and a shout out to atwater who messaged me several months ago talking about a k shaped recovery. i think we have an economist saying how much we have abused the alphabet as far as his recovery. selloff, a conversation you do not want to miss, nine: 30 eastern on bloomberg tv. the countdown to the open commences and nine minutes. eye on theour fundamentals. we have corrected -- if you have no sense of history you would not call it a correction, but maybe it is not.

on radio and television we will fail -- frame all of this with barry ritholtz. we cannot only do it with his book, what he is writing for bloomberg opinion and his podcast, but he has a great sense of history as well. i want to go to the wonderful care about her -- character nero tulip who is completely taken by the red porsche, that the guy is driving. we have had a red porsche market, everybody has been able to afford them, and we nudge down 5% and 6% in the world is coming to an end. what does a real correction look like? barry: how soon do they forget. let us put some numbers on this, since most of this energy has been taking place in the big stocks, let us use the nasdaq 100. in the march lows it was barely over 7000 and peaked in august

at 12.4 and change. in less than rally six months. araight up from 77%, i think tenant, 15, or 20% pullback -- 10, 15, or 20% pullback is due. profit-taking is one of the most besed phrase, but it could legitimately people who bought saying i have a huge profit maybe i should ring the bell and take a little something off of the table. lisa: do you buy that softbank is causing the selloff? buyy: about as much as i that robinhood was driving the market in the first place. funds,re $100 billion and most of the money is tied up in liquid long-term investments. if they want to fool around, for lack of a better phrase, with a

couple of billion dollars in options and derivatives, they can move a handful of stocks for a little bit, but that ignores the fact that you just had a massive move across a a lot of big companies that are actually doing well during lockdown. they are doing well because i have global exposure and because they were built for work for home, fan -- pandemic circumstances. i am not buying the softbank story. said i was asking john and i am not seeing a narrative, what is the narrative. he said do not look for one. august was a problem when people were trying to find one. here we do not have a cohesive narrative, it is more randomness , and to your point the fallacy of a narrative. what undermines the idea that you buy the behemoth and cash fortresses that do well in a

text driven economy. why not just buy now, given the fact that they have come off? have we really up ended are questions on how to fundamentally value the companies? a reallyat is challenging question about valuation for a couple of reasons. valuations have gotten extended before prior narrative the whale narrative was stocks and investors were looking over the valley of 2020 to the recovery of 2021 or 2022. one of the few narratives that make sense is that tesla was running up in anticipation of being added to the s&p 500, and when that did not happen, that selloff. i can accept that and buy into that argument because there was no indexing coming in to make up

for the lack of purchases. but, the problem with narratives, especially hindsight biased driven narratives is that they ignore how random so much of the market action is. predictable, and foreseeable, we would be wealthy. the randomness makes it challenging and people who are uncomfortable with randomness spend a lot of and emotional energy looking for a description and a storyline that makes them comfortable. humans are uncomfortable with random outcomes. tom: one of the great things in the derivative markets and softbank, the right against a call. you just assume that there will be losses if softbank takes a gain of x billion dollars. do you presume there is a prescribed loss against it by global wall street? barry: trading is essentially a

zero-sum game. trade, every winner in a there is a loser. the exception being, not the traders, but the investors allowing compounding and the passage of time to work in their favor. someone sold something at $10 20 years ago and today it is being sold -- the person who bought it is selling it at $200, that is not a zero-sum. but i find them a buyer and you are a seller and tomorrow i am a buyer and you are a seller, that will flatten out to zero. for that was very writing bloomberg opinion. lisa, on spx, we are testing new lows. we will have that for you. down 3% on nasdaq. i look at the motion this morning and it is highly

unusual. it is well contained, and yet a set of lower lows and lower highs as well. contained,alk about it is contained to several names. shares down 14%. apple shares down 4.5%. 4%.on down nearly how do people fundamentally value these companies at a time where they do have very solid balance sheets? have been bumped up so much. tom: we will get through earnings and conference calls and there will be a reaffirmation of those stories of that is the case. does thatuestion is, justify where valuations are? if they give the solid cash flow. tom: the market justifies where they are. i quoted paul samuels. "a full market makes its own hopes." i am paraphrasing.

it is good to end with paul samuels, the original laureate. please stay with us on bloomberg radio and television. we will cover this turmoil. this is bloomberg, good morning. ♪

jonathon: from london and new

our audience worldwide, good morning, the countdown to the open starts right now with 30 minutes until the opening bell. nasdaq futures down almost 3%. we begin with a big issue, summer is over. >> we have seen a big rotation out of the technology companies. >> no one knows exactly what is driving in it. >> short-term coming out of that market. >> profit-taking after a pretty remarkable rally. >> we do not know when we will get another fiscal stimulus package. >> whether or not the text trade is over i am not sure. >> u.s. equity outperformance has been driven largely by tech. >> liquidity is still plentiful. >> rotation more -- towards more cyclical stocks. >> there is going to be headwinds. >> that has accounted for more than half of the ove