your o wwnay ♪ your wireless. your rules. only with xfinity mobile. ♪ >> bad reaction. astrazeneca slams the brakes on its phase 3 vaccine trial after one of the test patients contracts an unexplained illness. tech tantrum. slumps 21% 7%, tesla in tuesday's session. england prepares to reimpose coronavirus restrictions on the public, banning gatherings of more than six people. welcome to "bloomberg surveillance." we have had a bit of a wild ride

when it comes to the markets. i am looking at the european stoxx 600. they are gaining some 0.6%. we saw a lot of tech stocks falling significantly yesterday. stocks today may be recouping some of the losses from yesterday. there is a bit more optimism creeping into the market after we saw the tumble yesterday in the u.s. there was also concern that investors would worry about the fact that astrazeneca had to experimentalof an covid-19 vaccine. investors for the moment taking news in stride. equity futures strengthening. the pound heads for the longest declining streak since march onward that talks could collapse over changes in the brexit withdrawal agreement. they look good on paper, but smart bid etf's have been failing when they hit the real world.

let's get straight to the bloomberg first word news. here in london is leigh-ann gerrans. >> good morning. astrazeneca has paused a late stage trial of its coronavirus vaccine after a participant became ill. the drugmaker said the decision was a routine action intended to allow researchers to examine safety data. but it could delay or derail efforts to deliver the so-called oxford vaccine, which is seen as one of the leading candidates to provide immunization against covid-19. now, boris johnson is set to tighten lockdown rules in england. all social gatherings of more bannedx people will be as of monday, down from the current limit of 30. police will have new powers to disperse and fine any offenders. tesla shares fell the most ever on tuesday after failure to be -- after the company missed out on being included in the s&p 500. the stock closed down 21%, wiping $82 billion of its valuation.

tesla has soared nearly 300% this year, making it the second best performer on the nasdaq amid strong earnings reports and speculative fever that drove bullish bets in option markets. activity -- another spanish bank is considering m&a activity. aim is to cut costs and reduce exposure to small and medium-sized business loans. it comes days after two rivals said they were exploring a tie -up. global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am leigh-ann gerrans. this is bloomberg. francine? >> now to our top market story and the selloff and u.s. tech shares is picking up steam. investors fled the high flyers

yesterday for the third consecutive session. tesla lost more than $82 billion from its market cap. adding to the turn in sentiment was that astrazeneca's vaccine trial had been halted. joining us for more is laura cooper. when you look at the selloff yesterday, was there a trigger or was it just an overdue correction? >> i think the fact that we are seeing nasdaq futures being bid this morning does suggest that it was this case of profit-taking after an exceptional rally. it is likely to be the case that we are going to see this activity because yes, we did see some skimming froth off of valuations. broader fundamentals for the tech sector remain in place. they are still flush with cash, still secular growers, still turning a profit. it is too soon to declare this a catalyst. >> what are you looking for

today? there was a lot of talk last week about a nasdaq whale. where do you see the faulting lines next? >> we are beginning to see signs of a reprieve on that front. when we look at the volatility gauge of the nasdaq 100, it also flipped from the past two sessions. that's in contrast to the decline that we have seen in stocks. typically, we would expect those to move in diverging patterns as a selloff would typically portend greater volatility. the fact that the volatility is coming off does point to the options frenzy beginning to abate. that is largely what drove that feedback loop. option traders are likely betting that the downside is limited. i think that is really crucial to arch. that does point to an early indication that the selloff that we have seen over the past three days is likely coming to an end. >> thank you so much. laura cooper from our mliv team.

joining us this morning is paras anand, chief investment officer for asia pacific at fidelity international. thank you for joining us. how do you look at the selloff that we saw yesterday? what was a catalyst? and what does it mean for where you want to put your money now until the end of the year? paras: good morning. i think the correction that we have seen in the market, sector, isthe tech something we have been expecting for a while. these have been a part of the market that i think has been driven almost largely by momentum. i think there are many things that are more fundamental -- that more fundamental based investors can point to two showed that there has been this a gap continuing to emerge between the fundamental value of the business and work trade is

-- where trade is. i think it is probably too early to say this is kind of a great dip buying opportunity. i do feel that we have seen quite a lot of nonfundamental actors in the market, be that, you referenced the nasdaq whale, be that kind of retail investors. once i think some of the turn, then ies think those corrections can go on for a period. >> despite the broader selloff, there seems to be a powerful force of resistance when it comes to certain assets and the nasdaq, from gold -- in the nasdaq, from gold to oil, but some 300%, gaining despite what we saw in the last five days. how difficult is it to read what kind of volatility we will get into the u.s. elections?

paras: i think it is reasonable to expect that will should see from now until the end of the year and potentially beyond is more of a phase of consolidation in markets. the big story of the last few months has been the extent to which we experienced a liquidity march and the of extent to which that liquidity crunch has been dealt with. early forably way too us to really understand the impact on corporate sector, sustainable earnings, to look at sort of company solvency. we anticipate that as we go through the latter part of this year, there will be a lot of sources, there will be provision liquidity, signs of different parts of the economy recovering.

i still think we are yet to see the impact of an extended period demand,ssed consumer how that then impacts companies with respect to their working capital and balance sheet. i think it is reasonable to expect a period of consolidation. i would not be particularly positive that we are entering a new phase or that we will have a meaningful correction from this point. >> what is your take on chinese tech firms? round that the tech we saw in the last couple of that we saw int the last couple of sessions, we also have the u.s.-china trade war, where president trump ratcheted up tensions. paras: there are a number of

interesting, distinct characteristics in terms of the asia and chinese tech sector in particular and what we are seeing in the u.s. of course, there has been some of the same positive momentum that we have seen in the u.s. has also been experienced in china. this is an area of the market where we continue to see the fundamentals very strong in china. china has been that part of the first economy that was with respect to the pandemic. what we are seeing more fundamentally within the business is continues to do well. we are seeing a very sort of vibrant, you know, ipo and new issuance market in this part of the world as well. you referenced some of the tensions with the u.s. ways, the migration of

listings from many of these u.s. top tech stocks from the u.s. in hong kong and china. we are seeing deals in total this year up significantly, up almost 80% this year relative to where we were this time last year. i think that there is more chance of sort of preserving the returns that we have seen in tech stocks in china relative to the u.s. mind,her point to bear in global investors are very conscious of what is happening with the currency. we see that as being a continuous headwind for returns for the u.s. quite the opposite when we looked at other parts of the

world. >> thank you. paras anand stays with us. this is what we are looking at on european markets. european stocks gaining some 0.9%. you can see the ftse, 1%. we will have plenty more on the markets and we will get back to paras anand. this is bloomberg. ♪

♪ >> this is healthy. obviously, the correction is concentrated in a few stocks. those few stocks happen to have accounted for more than 100% of the gains of the s&p so far this year. you are going to have these pullbacks. , as we driveo me

through fundamentals in the next few quarters, -- >> we still think selective cyclicality is the way to be positioned. >> right now, we are just smack in the middle of some indigestion, i would say, for the street in terms of how they are processing the different option positions that we have seen from large institutional investors, but also from the retail community. >> we are advising investors to look at other types of sectors, like industrials or health care, and to just not sell the market off altogether, but just to be a little more pragmatic. od we are headed into a peri of significant volatility in the markets. >> some bloomberg guests talking about the u.s. stock rout and how to trade it. still with us is paras anand from fidelity international. we talked about the tech rout

and some of the things you see going forward. how worried are you about this growth for longer environment with interest rates and what about when they start normalizing? big --obviously, it is a i think that when we sort of look at markets, we look at sort going intoglobally sort of the second half of this year and beyond. there are a couple of areas which are particularly interesting to us. i guess one, and it may be like an obvious one really, is asia. of sortseen this type of macroeconomic shock and asia, especially north asia, has been resilient. this is a part of the world where we are seeing economic

activity resuming to pre-covid levels. but also things like the u.s. dollar and oil price easing over the course of the last few months. bothnk that is an area, with equity markets and bond markets, where we are seeing this growth for sort of good returns as we go forward. i think you can broaden that to emerging markets. in emerging markets globally, they are a big beneficiary of dollar weakness. also, and i think this is such an interesting concept that gets talked about less is that they are, in relative terms, they are not expensive. they are more of a laggardly sector of the market. for investors more broadly, try to think about those parts of the market, not the areas that

have been part of that narrow, strong leadership, but thinking about some of the areas that are left behind. i think that is where you are going to find the better returns over the medium term. >> how much volatility are you expecting and renminbi -- in renminbi? if joe biden becomes a ex-president of the u.s., are you expecting these -- the next president of the u.s., are you expecting these trade war's to be tempered a little bit? paras: you can step away from the u.s. election and still make a very meaningful, reasonable assumption that what you are likely to see in the u.s. is a andtant recourse to fiscal monetary policy. that is going to put downward pressure on the u.s. i think that the most important thing to recognize is that is

not the approach that has been taken in china, for example. china has chosen not to monetize the crisis, has not used that level of stimulus. i think that what that means, not just for the renminbi, but for asian currencies in general, is that if you take those fundamental factors but you also bring in valuation, that the outlook for asian currencies looks strong as we go forward. >> thank you so much for joining us today. chiefparas anand, investment officer for asia pacific at fidelity international. coming up, astrazeneca puts the brakes on its vaccine trial. researchers are reviewing safety data after a participant became ill. more on that story next. this is bloomberg. ♪

♪ francine: you are watching "bloomberg surveillance." stopped aa has late stage trial of its corona vaccine after a participant became ill. the drugmaker said the decision was a routine action intended to allow researchers to examine safety data. but it could also delay or derail efforts to deliver the so-called oxford vaccine, which is seen as one of the leading candidates to provide immunization against covid-19. joining us now with the very reporter our pharma from bloomberg intelligence.

how likely was it that something like this would happen? how much of a shock is it? >> in these large trials, there is always a risk of these assorted safety side effects, especially when you are dealing with a new vaccine, a new technology, and the heightened awareness of these trials, given that you are giving them to healthy volunteers, so not surprised. francine: what is the biggest concern, apart from the health of the individual involved? does this slow down the vaccine process or just slow down the recruitment of potential candidates to receive the vaccine? >> i definitely hope that those who are constantly pushing for getting data out early and getting things approved by a certain date will stop meddling and stop going on about it so that these trials can be done in a calm, collected fashion. francine: is there too much pressure on these companies to deliver? >> yes.

we all watch what is going on with regards to politics and every angle. unfortunately, scientists don't understand the disease enough. politicians have no hope. they have to sit back and let the process take place. i am pretty sure that every company and every regulator is preparing for delivery as safe -- fast as possible but it has to be as safe as possible. francine: who is getting it right? when will we know if this is a one-off, whether this is linked to the vaccine, or whether this means that the oxford vaccine will not be viable for quite some time? >> to say who's getting it right, let's see which country's politicians have meddled the least in the discussion about vaccines. you know the answer to that. europeans have been quieter than the u.s.. china, russia have rushed their vaccines to broader application and collections just based on very early, phase i trials.

theher it's going to be astrazeneca vaccine or pfizer vaccine or moderna vaccine, we have to wait until the end of the trials. francine: thanks for joining us. coming up, they look good on been but some etf's have failing when they hit the real world. we will also have a roundup of the markets after the selloff in technology stocks yesterday. stocks are climbing. u.s. futures also rebounding. it does seem that certain investors may have drawn the line under the recent selloff. this is bloomberg. ♪

francine: welcome to bloomberg etf iq europe. i'm francine lacqua.

everything you need to know about the funds. trading tech volatility when stocks make big moves. how can etf investors stay clear of trouble and keep their portfolios in the -- equity to etf's continue to see enclosed, grabbing the lion's share this month. all the moves from around europe. smart strategies that would great on paper, lose money after they launch. we will dig deeper into the numbers. there has been a dramatic leap for tech investors. let's kick off the show with which countries and sectors have been attracting the money. here is dani burger. dani