bloomberg's sarah ponczek is joining us now. s right. 50, itg the euro stoxx had been really testing its lower bound, right around the 22 level. the idea was that we had the ecb backstop. at the same time, there were hopes that we would not see further lockdowns, hopes of further stimulus. however, now those hopes are fading. inhave some record increases european countries. restrictions in paris and london. as you can see on this chart, it does seem as though we are seeing a pickup in volatility and an increase in that v2x index, possibly on the cusp of an upside breakout. alix: what does that mean for vix futures in the u.s., prepping for a contested election? sarah: we have seen the vix curve flattened as contested election fears have declined. we can see that vix futures for october, november, and december did peak. those have all coalesced around the same level, just below 30. to be fair, we no longer see the vix arch, as uncle purpose -- as michael purves called it. but this is still very volatile , andred to a vix below 20

romaine: sarah ponczek.elloff.macro driven we will talk to somebody who knows about the macro pictures here, from her new york fed president bill dudley. he wrote a great column today at talking about why the fed might be running out of firepower. he says you might need to look elsewhere. that is coming up next. this is bloomberg. ♪ romaine: today we are focused on the selloff in equities in europe and here in the u.s. we are talking about what could percent -- could potentially send it into decline. the selloff points into what kind of recovery we could expect. we heard earlier from new york fed president bill dudley. joe: yes, he said the fed is out of ammo. "no central bank wants to admit it is out of firepower." unfortunately, the federal reserve is near that point, which means america's prosperity hinges more than ever on the government spending plan. it,line: let's get right to joining us now is the former new york fed president, bill dudley, now working in the university as academic, and economist. yo

vonnie: our thanks to sarah ponczek.up, comparing the tax plans of president trump and democratic nominee joe biden. we will speak to alan auerbach. this is bloomberg. ♪ vonnie: this is bloomberg markets. i'm vonnie quinn in new york. days to go until the u.s. election, tax policy is in focus with the candidates proposal having divergent visions. our next guest found millions of low income americans are locked into poverty thanks to tax policy. berkeleybach of uc joins us now to discuss. there are so many things we could talk about in relation to tax policy. there is a lot of concentration over what would happen to middle-class families under a biden presidency. what would happen to lower income families in either case? alan: that's a very good question. of trump plan is something -- certainly would effect a income people. the biden plan includes very explicit in trying to keep people under $400,000 of income unaffected. although may be affected indirectly. there may be plans to help people at the lower end such as an ex

lisa: sarah ponczek put out a statistic that it was the biggest punishment and equity markets for disappointingissing. you can expect a fierce response for big tech. tom: i am sitting in the lobby, it is cocktail hour, that is security. lisa: there is music, tom. jonathan: i live in the same building. i go through that lobby. i have seen it. everyone thinks he is joking. mr. ferro, welcome back. good to see you. coming up, solita marcelli. from london and new york, this is bloomberg. with the first word news, i am ritika gupta. it is a big win for president trump and congressional republicans in the final week of the election campaign. the senate confirmed amy coney barrett to be the newest justice on the supreme court. 6-3 solidifies a conservative majority. barrett may be asked to weigh in on cases that could determine the outcome of a close election. lillyical trial of an eli experimental antibody therapy will not resume. federal researchers concluded the drug will probably not help hospitalized coronavirus patients with advanced cases. other trials are ongoing to see if the drug helps. the

ponczek,kets, sarah these names, if you haven't provided some nice guidance just to make you happy abouture, these stocks get punished, and these got punished after the close and into this morning. tom: they get punished after the close. it has been interesting to read the articles today. as jim with citigroup said, they are moderate really -- they are modestly tweaking outlook. jonathan: what was your take after the close yesterday, with blowout numbers from some of these names, and that it was about the lookout? lisa: but there was much of one when you talk about amazon. their forecast was above expectations, and a lot of people thought it was overly conservative, and that they are going to do really well and the holiday season, yet their shares are down premarket. to me, it feels like people are so concerned that things are overbought, and they want to pare risk, and they sell what they can. the has -- these have become safe havens that you can buy and sell easily, depending on your risk appetite. jonathan: they are the market, so to speak, at the moment. here is what the market looks