U. S. Futures. We saw you choose drop immediately. Down 0. 9 . You can see the stock drop as concerns mount about the president and the first lady having covid19. This comes after a top aide that had traveled with him to cleveland and minnesota, hope picks. Hicks. She contracted covid19. The president and the first lady tested positive. You are seeing immediate Market Reaction. Joining me is the head of Investment Strategy. A lot to digest. We just learned this news. The president contracting covid19 to be this comes 32 days ahead of the election. It goes without saying we wish the president and his family and anyone that comes in the path of the virus well wishes. Howdy prepare for the risk of this event . Frameworke to have a of how things will work out over the next 612 months. , depending onerm, how far markets have come from since march. Fostering a trade war. All of that can potentially impact markets in the shortterm. Mediumterm, 612 months, we do think equities are going to be at a higher level than they are now. We urge our clients not to get caught up in the short term to look at things a little more longterm. Does it mean for the u. S. Election . For the u. S. Election, it is on hold at the moment. We remind our clients the u. S. Elections can be and enforce and packed her. What is more important, markets over the mediumterm, not who holds the presidency or how congress is made up. And there fed policies business cycle. These are two factors that drive the market and are a lot more important than day to day politics. The shortterm term. Mediumterm, we expect the economy, equities to be at a higher level. Expect that volatility. This is the health of the president of the United States. Volatility to surge based off that news. Year,il the end of the through the election, depending on the results of the election, it is possible to have volatility. Taking advantage of pullbacks. We have been underweight equities since march. Riskefer to allocate our to fixed income. We were more comfortable with the risk. With the pullback and equities, we are telling our clients to take advantage of some of these opportunities and build the equity position. Normalizing. S we are in an environment of low Interest Rates. There is a reluctance to withdraw fiscal stimulus in most parts of the world. Evaluations in the u. S. Are slightly expensive. Be justified can by how low Interest Rates are. We feel more comfortable with the risk. Specifically as rates are going up. There seems to have in some progress and how to deal with the virus come how to manage the virus. Taking precautionary measures. Medical treatment. Feel moree comfortable with the risk in the market. Up inld not be to cut daytoday movements of markets. In daytoday movements. I want to update viewers. The president of the u. S. And the first lady have just tested positive for the coronavirus. You can see markets alongside me, a massive amount lower. S p futures down 1. 5 . This is a huge risk to the markets. One that was not priced in. It was going to be a volatile session. Many say it is a contested election. At the health of the president of the u. S. Ask. E to u. S. Jobs report, there are some anything to digest. Is this the only thing that really matters . Isthe health of the economy really important. Believe over the next few months, Economic Growth is perhaps going to disappoint. It might sputter. It is likely to underwhelm. Given the environments we have come a Interest Rates, fiscal stimulus, we do think the drivers are there for modest growth over the next year. We dont think we are going to scenariohe doubledip because of these factors. Growthwill be ready for to be less strong and it was since the reopening, the rebound. Be ready for disappointing growth. We expect growth. Keep in mind, despite covert up, more rates going social distancing measures being put in place, and economic restrictions, the economy keeps on growing. There has been some growth. Most Economic Indicators in the western world continue to point upward. Not expanding anymore month over month. The suggestion Economic Growth is slowing. Growth. Still covid is with us. It is everywhere. We are going to see an increase. Precautionaryke measures. We have some rains coming from d. C. President trumps position says trump and milani are well pretty he does confirm the president of the United States does have covid19. You can see the Market Reaction. Futures, industrial the nasdaq, all down 1. 5 . I want to dig deeper into what we are seeing in the markets. Juliette saly joins us from singapore. Good morning. Watching what we are is this down tick and japanese equity markets. They are the only one relevant and asia and trading with australian and new zealand markets shut. A big tick and the nikkei. It was pretty flat earlier. We had japan out of action. We have been seeing a little bit of fluctuation in the japanese equity market. You are seeing a big tick down. This as we see money going into these safe havens. The yen rising quite significantly. Obviously, a bellwether for what we see in these uncertain times. The aussie down zero point 8 against the japanese yen. A flight to safety. Pressureher downward coming through an equity markets. Closedian markets are for a number of public holidays. China and hong kong out of action. We are seeing that down tick in u. S. Futures and japanese equity markets. About 4050 minutes of trade to go. Juliette saly with the market impact. Thank you so much. We are seeing futures continue to slide this morning. The s p 500 down alongside the dow jones and nasdaq. Lets recap some of the news we have. The president of the United States and first lady have fored positive positive covid19. We wish anyone facing this virus health and safety, especially in the white house. The physician for the president has said he will maintain vigilant watch on the president. He says President Trump and milani are well. Still with us, the head of Investment Strategy. See the immediate market impact. S it seem like india anything else really matters . We did not get a fiscal deal. Does this shift how you think about the u. S. Election and where one may want to put money in terms of a portfolio . It doesnt. Our Investment Strategy is based on where we think the economy is going to be over the next six months to 12 months. It is not based on day to day trading. We have seen a pullback in september. That is a Good Opportunity to build certain acquisitions and equities. Prospects are better. Than theymore managed were in march. The situation is very unfortunate. There was a structure behind the president. The economy continues. Companies continue to generate earnings, despite what might be happening in the white house. What is happening in the white house impact financial markets. Take a see futures massive leg lower. Nasdaq futures, 0. 4 percent. Today was supposed to be about the jobs report. It is the last jobs report before the u. S. Election. It is an important one. We saw tens of thousands of job losses from massive global corporations. It is this supposed to be about the impact on capital. Certainlywill most donate not just the news cycle but the markets. If you are just waking up, we have learned the president of the u. S. , and his wife, have contracted covid19. They were exposed to hope hicks. She traveled with the president and his family to cleveland. She went to minnesota for a rally. Ons quickly get your take the jobs number. 1 30 p. M. London time. What are you expecting . Job numbers we have already seen recently, the number of new jobs which are being generated is something to slow down. Since thee sign rebound, we have had some growth and that is threatening to taper off. Expect to roll out more subdued growth going forward. Frederick she stays with us this morning. Marketrger joins us for reaction. A clear reaction and markets, as soon the headlines hit. S p 500 sharply turned it down, now more than 1. 3 across the board. Nasdaq futures, heavier losses. Really just because of the higher beta sector. And first lady tested positive. The physician has confirmed this. Tested positive. The latest is both of them are well at this moment. That is one of the keys. How this involves evolves is going to be important. Andy bremmer said should they and they end up ok, trump is able to send tweets. The market might not actually have much of a reaction. Gut punchat initial reaction and that is what we are seeing. Futures heading lower than 1 . Madeose comments were months ago. Now this takes on a new importance given we are 32 days away from november 3. Joining us is kathleen hunter. Take us through what it would be like in the white house, between the west wing, the executive residence. What did they prepare for . There has been a sense this could happen for months. We know they do have a plan in place for that. We know from the president s position he and the first lady plan to stayathome during their convalescence and essentially do what Many Americans have done, selfisolate and weight to get better. Trump has canceled Campaign Events. I would expect that to continue. There is not going to be a lot of movement between the residence. I would expect the president and first lady to stay in the residence. They have not given out that level of detail. Thehat about leading country . What happens next . Give a lot of responsibilities to Vice President pence . Statement stage, the from the physician is saying the president intends to keep up his president ial duties, doing them from the white house. It is important to remember and march and april, the president did not leave the white house complex that much. There is some precedent for him carrying out his duties from there. There is no sense of any official transfer of power. When it comes to campaigning, he is going to have to rely more on surrogates. Mike pence at least for the next couple of weeks. 6 15 am in the city of london. Equity futures taking a step lower. Newseen, we have this President Trump and his wife both test positive for covid19. Are 32 days away from the selection. What does this mean for the election . It is unprecedented waters. It was going to be unprecedented in the sense the u. S. Is in the midst of a global pandemic. Now to have that president test positive a month before the think, raises some additional concerns about his response to the virus. His rally in tosa was described as potentially a super spreader event. The president has been subjected to a lot of criticism he has not taken the virus seriously enough. I think that adds to this criticism. It adds to the uncertainty. The idea there could be a threat to his health just creates even more it is shaping up to be a messy friday. Could this move voters . Many say pretty much everyone, every american has made up their minds. Where do you see people starting to vote . Could this change peoples minds about who they vote for november 3 . This election is distinct and that large numbers of americans have voted. More than one million americans had already returned their ballots. That is a much higher number than in the past. Those votes are not going to be affected. The number of undecided voters is very low. There is not a whole lot that could happen that could change peoples minds. This is a largescale event. Issuengs attention to an that has been a liability. That is handling the coronavirus. Isis important to note there not a lot that can change peoples minds. This could move the needle. Away from theays president ial election november 3. Thank you so much. As will be staying with us we have more updates coming from bc. And the city of london. Donald trump and Melania Trump have tested positive for covid19. They have said that as well as their physician. Virush anyone facing this safety and health. Thankg us this morning, you so much for sticking around. What a friday morning it is. You can see the Immediate Impact in the markets. Big leg lower. A the dollar index getting higher. Immediately the Market Reaction. Have any Lasting Impact . What kind of assets in this type of situation would you want to hold . Term, safe haven assets are likely to do well. We would urge our clients not to react too much today today headlines. More medium and longterm view. One important factor at the dragt for the u. S. Is the that is occurring. Fiscale dont have a new package, the federal government is spending 200 billion less per month than in april. States spending less. Most states operate in a balanced budget basis. Because revenues are lower than they are expected to be by 21 safer. There are real headwinds. More than 60 of them expect some fiscal patches. They believe that is required for the recovery to continue. Without the president , that is an issue. Hime is a structure behind when negotiations can continue. You brought up the fiscal stimulus deal. A lot of americans are struggling. Those extra benefits dried up in july. We have seen a number of airlines having to furlough employees. This event with President Trump contracting covid19, does this give a boost to republicans to want to maybe strike a deal . It is very difficult to say. Thank you so much. Some of the news we have out of the u. S. President trump and his wife Melania Trump have contracted covid19. Impact, Dow Jones Futures down 1. 7 . Nasdaq futures as well. Immediate market impact. Looking at this is dani burger. We are looking at equities. Also some of the nettles. Metals. Havens popping up. It is the headlines, everyone looking at the market watchers. Trump says he and Melania Trump for both tested positive covid19. We do know the position of President Trump the physician of President Trump has confirmed they have contracted coronavirus. The president since both of them are doing well. Presumably, they are in the white house continuing their quarantine. According to people familiar, that first the aide tested positive was experiencing symptoms. No word on whether President Trump and the first lady are permitted latest, the white house saying both of them are doing well and they are currently in the white house. Claxton dani burger, thank you. We are going to dig deeper into the market impact. Juliette saly joins us from singapore. Brent trading under 40 per barrel. Both contracts down 2 . 1900 it is back above announced. The market looking for havens. You can see that with elected in the yen as well. A big tick up in the japanese. En not only the aussie against the yen. I wrote a morning note about what is happening in asian trade. We have a number of asian markets out of action. Japan turning negative after resuming trade. It was pretty subdued earlier. Now we have volumes, about 40 more than the average 30 day moving average. The topics down 1. 2 . Accelerating those losses. 25 minutes ago. Also looking at the latter part of the session in australia. Mentioning what is happening in oil. Accelerated,as down 1. 4 percent. Futures taking lower. Safe havens going higher. This is quite an interesting move. So many out of action today. In terms normal friday of asia trading. Thank you so much for that. Joining us now is david page. Morning, we see immediate Market Reaction. What is your take to this news . A big shock. Ad no expectation broader question that comes in. It is quite natural to see a bit of risk off. Given all that is happening, it is something that should pass. Not necessarily affect the election. Certainly risk off. Nasdaq futures extended down more than 2 . We are 32 days away from the u. S. Election. This has to have some impact. Will have an impact, on campaigning. President trump active in personal campaigning. Joe biden has done virtual. Clearly, that affects you. Not, we can go through the e spectrum of possibilities. This couldrisk incapacitate him. You start thinking about who may have to take over. There are risks that come through. That is why markets are trading with a degree of uncertainty. Even if this turns out to be something that is the worst thing of the spectrum, it should only interrupt campaigning for a couple of weeks. There is a more worst Case Scenario than that. Cautiousre going to be over the next few weeks. Certainly cautious. Likely going to expect more volatility. You are invited in, we were going to talk about the jobs report. Reporthe last jobs before the election. Does anything matter today . We are going to get lots of different headlines. I think it is very likely more normal markets, the jobs report, gets locked in for the next couple of days. Get losta real risk we in this story. You almost have to suggest the risks are being normalized over the next couple of weeks. On theack to the workout basis of what we are at at the moment. To the prospect of stimulus. How does the public react . We saw something of that effect when the u. K. Prime minister contracted coronavirus. There are a lot of different factors. When you get breaking news like this, you dont have certainty of what is going to happen, the uncertainty comes through. We saw the initial Market Reaction when Boris Johnson contracted covid19 and then things started to normalize. Is so close, we are about a month away. Bring fresh skepticism, worries to the u. S. Election. As well as the fact we are supposed to have president ial debates. If you are waking up this morning, where are you going to hide . How bad yous on think it is going to be. There is a tactical shift coming through. Been, ifent has always biden, it comes with a low interest swing. Given the democratic manifesto is one to increase taxation on the corporate sector. We have always been concerned about negative equity markets. Is markets start to preempt that. I think the president will not be able to compete as aggressively and some campaigns. As much in the head to head and that could affect pulling. That might make it somewhat more likely biden gets in. There is a risk, to