His tweet is flagged as misinformation if you dunt tcount the illeg votes, the ones that came in late, they are trying to steal the election jay powell says the current economic downturn is the most severe of our lifetimes. Sure, i think that there are plenty of people on capitol hill who on both sides of the aisle who see a need for further fiscal action and understand perfectly why that might be the case and the wall street rally continues. The swiss luxury giant says online sales are recovering after 82 drop in net profit well, the u. S. Election is inching toward a final result as votes continue to be counted in several crucial battleground states across the country. At this moment, democratic candidate joe biden is ahead of President Trump in the key Electoral College tally, 253 to 214, that is according to nbc news projections 270 votes are needed to win. The tightest race is in georgia where President Trump holds array czar thin lead of under 700 votes. A win in georgia for biden would bring him just a single point away from victory. And meanwhile in pennsylvania, it also is too close to call by deb h biden has erased nearly all of President Trumps early gains thanks to the city of philadelphia and President Trump continued to question the integrity of the election process tweeting that some votes were cast illegally twitter labeled it as misleading this comes after he accused his opponents of rigging the vote. It is not a question of who wins, republican, democrat, joe, myself we cant let that happen to our country. We cant be disgraced by having Something Like this happen so it will be hopefully cleared up, maybe soon, i hope soon. But it will probably go through a process, a Legal Process and as you know, ive claimed certain states and he is claiming states. So we can both claim the states, but ultimately i have a feeling judges will have to rule but there have been a lot of shenanigans and we cant stand for that in our country. Elsewhere biden urged his patien patie voters to become patient it is the will of the voters that chooses the president of the United States. So each ballot must be counted and that is what were going to see going through now. And that is how it should be democracy is sometimes messy it sometimes requires a little patience as well but that patience has been rewarded now for more than 240 years in the system of governor you nance that has been the envy of the world so the key takeaway this morning, the race remains streechlgly tight. And hinges on just a few states. Were very closely watching georgia and pennsylvania where momentum has been building in favor of joe biden, very, very closely watch offing georgia in this moment. Yesterday we heard from both biden and President Trump, President Trump offering some baseless claims and interestingly members of the Republican Party not siding with him. So one of the key questions for me, how does the Republican Party react if we do see donald trump moving ahead with challenging the outcome. And it is remarkable how razor thin some of these races are. It puts it in recount territory. And that is there right. So we could be in for a couple weeks of recounts taking place what is interesting, as well, in the context of all of this is how resilient markets have been. And what we saw yesterday in u. S. Markets, the biggest jump for the u. S. Since april if you take it back to 2000 gasoline when we had a contested election result gorebush, it took about three weeks for it to be escalate the up to the Supreme Court to get a resolution and we saw you u. S. Equities drop 10 . Fast forward to today, were also seeing somewhat of a contested election result and equities are completely brushing it off when you think about what is different between 2000 and now, one of the major differences is the Federal Reserve. We had them come through yesterday with their policy decision and like Central Banks around the world, pledging that they will do whatever is needed to support the economy, support the recovery so certainly based on the reaction were seeing in markets, we cant discount the impact of the Federal Reserve and the support that Central Banks have provided to markets on that note, lets me detail for you what we heard from the Federal Reserve. They kept rates at record lows and warned the economy is still que well break the pandemic level and they are considering whether emergency measures need to be extended past the end of December Powell was asked if he felt that he was being heard asking for physical call stimulus our main job is doing our job. Call stimulus. Our main job is doing our job. Using the tools congress has given us and i think that is the thing that we think about night and day. I just know from the experience of the last cycle, it helps to have the whole government working on these things. And this one is particularly that way and you know, i dont want to say whether i feel like im being heard or not, but sure, i think there are plenty of people on capitol hill on both sides of the aisle who see a need for further fiscal action and understand why that might be the case lets take a look at where markets stand on the week. As you can see here, major gains across all three major indices the dow and s p 500 up about 7 a piece. The tack heavy nasdaq up nearly 9 so resumption of that trade that we saw before the election, the tech stocks benefiting very strongly here. Coming into the election, investors were considering a reflation trade which might favor the more value oriented parts of the market. What were seeing instead is that were seeing an out sized bid for the tech names and to put it into done text, were on pace for the best Weekly Performance in u. S. Markets since april. Lets look at where we stand today. Were in for a little bit of a pullback, red on the board to all lee majo all three major indices. Nowhere near the gains that we saw. So a little bit of caution coming into u. S. Markets after the strong rally yesterday alone the dow gaining more than 500 points the pace of jobs growth is forecast to have slowed in october with 600,000 jobs set to have been added to the economy that is down from the september figure of 661,000. As covid19 cases continue to rise across america. Reuters forecasts indicate that the Unemployment Rate will fall to 7. 7 . Chris tinker is joining us great to have you with us on what has been a pretty extraordinary week for markets with all three u. S. Indices up more than 7, nasdaq up more than 9 , and the election has not unfolded the way pollsters had predicted. What do you pin the strong Market Performance down to . It continues to b e an extraordinary week markets look at elections as flag posts along the road. And if you think about two or three weeks, the market was relatively unfazed going into the elections with probably lower volumes than you would have thought but what were seeing now i think is less about people having the ability to make clearer long term changes of view, more of a realization that the status quo or uncertainty of the next few weeks and maybe months is going to see policy making particularly you referenced the comments from the fed, you will see policy making essentially maintaining the trend that we were seeing in the late summer coming into labor day and that is really the sense that i think people are now getting back on board with less of a reflation trade, more of recognition that we are in an expanding monetary board where the entire world now is operating effectively, more fixed capital flows into the markets. And so the assets are starting to go up again and yet when we spoke to Market Participants a couple weeks ago, they said the biggest risk would be a contested result and were in exactly that situation today. It might take weeks for some of the legal cases to be resolved, and yet markets are completely brushing off that possibility and the possibility that the incumbent president is not going to go down without a fight what do you make that implied vol as completely plummeted despite the uncertainty from the political standpoint it is important to understand that what the vix represents is really the outlook for short term implied poll volatility and we look long term and that expandeded dramatically back in the swing with the movements in the markets in february march. And so the market level, that roughly doubled. So what we call our margin safety went to up over 40 and some sectors did see an expansion, but other sectors have actually really maintained their longer term volatility in a relatively stable form so i suspect what is happening, although short term volatility expand, i think more are focusing on the longer term measures and i think that we will see that people realize that their risk reward tradeoff for investing in the market and investing in things or ideas is more captured now by those underlying longer term trends. Much as the noise of the election is taking place and uncertainty is out there, the macro outlook wont be spinning on a dimg. We wont see major policy shifts or changes so people are recognizing that where value is starting to be an offer, people have got back into those trades and trends, and those investment themes and most market sectors have rapidly recovered back to their underlying value trends as we see them and are continuing to follow them over the next three to six months. Can we focus in on the Health Care Sector . Tuesday the european Health Care Sector strongly xwrouts performed the market, it seemed to be the trade of choice when it looked increasingly likely that we would see a democrat in the white house and a is that t the senate controlled by the republicans. And so now there are long term views. Iss should be looking at absolutely. Everybody is looking for the slam dunk wonder Drug Associated with covid, but there are also particular trial expectations and recovery that see individual stocks potentially moving quite dramatically at any point during the cycle. But the Bigger Picture story about drug pricing and the pharmaceutical sector, there is no doubt that the big longer term trend that everybody will be focusing on over the next three to five years will be health care related. Whether it is about vaccines, reevaluating the availability of therapeutics and ongoing expansion of expenditure that governments are making, yes, there will be a focus on headline margins, but i think the sector as whole will be seeing a huge amount of investor focus, a huge amount of government focus and i think that the visibility that well be getting in the Health Care Sector about those purchasing directives will allow us to have much better certainty about yououtcomes sector than at of the other industrial or demand sectors in the period of investment returns so absolutely. Not particularly cheap at the moment, it has retraced back to its value line in other words, but it certainly has a positive outlook. The trend has been comfortably double digit growth and i think that that will probably continue nothing from the political side will see margins slammed aggressively down here so i think that it will be probably an easy sector foin investor flows, particularly when fixed income flows are returning basically zero or negative yields, these kind of defensive stocks are still going to be a very major source of focused rushes for investors do you think investors will start distinguishing between short term versus long term . And it has become apparent that there will be a runoff for the Georgia Senate in the beginning of january if that goes toward the democrats, you could be in a situation where senate also leans through as well, in which case we will end up with a blue wave scenario. So how does that play into how investors should be positioning their portfolios in short term versus january onwards well, of course if the Senate Runoff goes blue and biden takes the presidency, then you will have a majority in the house with the president for policy making however as weve seen in many cases in the past, the narrowness of a majority in the senate doesnt guarantee fully partisan alignment, but more likely than not in that scenario you outlined i suspect it is one of those flags that will create uncertainty, but in a very tight senate race as we currently are seeing it, i dont think investors will jump to any clear conclusion about longer term positioning. I think that there will be noise that no doubt anything that if i look at the sectors Like Pharmaceuticals in the u. S. Right now, what we have has been a very strong rally in a declining environment and it will only take a further announcement that suggests that maybe the Legal Process will be delayed to see anything that will spike recently in that regard trade back down again and so we aare trading noise. You can trade day to day, week to week. But i think the short term volatility story is one where if you have a big structural issue that might affect a stock or a sector, to trade on the basis of news that can change hourly, you know, that is going to keep you awake at night over and before Everything Else that is keeping us awake at night. So i dont suspect that there will be any strong volume flows associated with double guessing a january Senate Runoff. I specific more likely to be the case that people will really want to make sure that particularly as they come into the end of november and a lot of funds still do look effectively to a november thanksgiving year end for decision making, you have to be looking as a fund to make sure youve locked in what gains were made available to you in q2, youve managed into q3 and past the election era with possible excess returns for your investors. So i dont think that maybe wil be making any hail mary passes around the election unless they have to. And if you are in that position, well, good luck. Makes a lot of sense and i think all of us could do with a good nights sleep chris, thank you very much no joining us stay with us because coming up, well be talking about italy, which has imposed fresh losk lockdown measures. When you switch to xfinity mobile, youre choosing to get connected to the most Reliable Network nationwide, now with 5g included. Discover how to save up to 400 a year with shared data starting at 15 a month, or get the lowest price for one line of unlimited. Come into your local xfinity store to make the most of your mobile experience. You can shop the latest phones, bring your own device, or trade in for extra savings. Thats simple, easy, awesome. Visit your local xfinity store today to ask, shop, discover the latest on xfinity mobile. Lets take a look at european markets. We have taken a turn for the worse this morning, a bit of a pullback, but lets put it into context. Coming in to today, the stoxx 600 up about 7 . So a strong week, but we are seeing a bit of caution now and this is along side a pullback in u. S. Futures as well so a weaker start in the u. S. And also a blit it of a weak stt here in europe dax down about 1 , but yesterday it was the key outperformer gaining about 2 while the stoxx 600 gained just about one. Lets take a look at one stock in particular that is in focus this morning and that is richemont. Net profit for the First Six Months was still down 80 . Revenues fell to 5. 5 billion francs they said Online Retail sales and strong rebound this china have helped it weather the crisis and very strong reaction, shares up 8. 8 . Allianz posted a 6 point rise in Third Quarter, but held off issuing full year guidance it warns that business rupgss a interruptions and canceled events may trigger expensive claims cfo told cnbc that the group is performing strongly despite the pandemic we are not surprised. I would say that as you see that there was more stability in the Capital Markets in the Third Quarter and as you see the covid impact has been lower than clearly going back to the normalized level more or less performance that you might expect from allianz. So the results are totally logical because our underlying performance is very strong when you look at combine the ra ratio, 94. 5 and that is what we expect and this is also putting allianz on track to get to 93 next year. Switching to the coronavirus situation, new u. S. Daily virus cases have topped 120,000 just 24 hours after passing the 100,000 mark for the first tichlg t midwest and southwest has seen the brunt of the cases with hospitalizations rising across the country. The u. S. Has recorded over 230,000 deaths to date according can to Johns Hopkins university. And Boris Johnson south oig to reassure the country that the current lockdown this began thirst will end as planned on the 2nd of december. This is not a repeat of the spring schools, universities, nurseries are all staying open and these measures, though they are tough, are time limited the advice ive received suggests that four weeks is enough for these measures to make a real impact so these rules will expire on the 2nd of november and we plan to move back to a tiered approach there is light at the end of the tunnel and fresh lockdown restrictions have come into effect in italy a day after the country reported its highest daily death toll since april 23. Claudia, give us a sense for how stringent the lockdown restrictions will be and how they compare to what we saw back in the spring. Of course they were the first to introduce lockdown measures. They are actually quite stringent in four particular regions. Really it looks a lot like w