Plunged 32. 9 percent on an annual basis in the april through june quarter this is its worst 2nd quarter period on record for the previous worst quarter contraction with a 10 percent drop during the Eisenhower Administration in 1958 but these records dont date back to the Great Depression while hopes when told on that v. Shaped recovery is Consumer Spending which actually accounts for about 70 percent of Economic Activity it brought down the g. D. P. On wednesday the Federal Reserve chairman powell warned of the lasting damage to the economy of this expectation. Even with the improve Economic News in may and june overall activity remains well below its level before the pandemic and the contract contraction in real g. D. P. In the 2nd quarter will likely be the largest on record. Now this comes as republicans and democrats are working on the one trillion. All a relief package on a looming friday deadline but it appears lawmakers are far from an agreement and they continue to clash during the stalled negotiations. Since 20000. 00 boeing has had one disaster after another well now with the Global Pandemic going to its 8th month here in the u. S. One is about to go on life support arties fair in france ive joined the now fair in that we know boeings been losing a lot of money each quarter the states box ever since 20. 00 teens how much are they losing now so it is quite a doozy sara were talking 2. 4 1000000000. 00 in just the last 3 months alone not only because of coven one team but also from the fallout of it 737. 00 max aircraft but theyre actually when it comes to the Decision Making over at boeing you have to ask yourself are they trying to fail or are they just plain ignorant i say this because the 737 max has been grounded since 2019 still doesnt have the green light from the federal Aviation Administration to fly yet boeing kept pumping out the 737 max is making it so that now the company has 450 jets just sitting there again they cannot fly so literally just sitting there now on boeing 2nd quarter Conference Call c. E. O. Dave calhoun also gave a dire warning to employees saying quote the prolonged impact of the virus will require the company to further assess the size of our workforce basically theyre cutting jobs but how many well there are signals that boeing will cut about 10 percent of its workforce and thats about 16000. 00 jobs now sarah it does get worse also discussed on that Conference Call plans to scale back production of all of the companys commercial jets and possibly shutting down the entire Assembly Line now calhoun again saying quote we will also need to evaluate the most efficient way to produce the 787. 00 including studying in the feasibility of consolidating production in one location now lets not forget in the 1st coronavirus stimulus bill 25000000000. 00 were given to boeing and that money could only be used to continue paying their nearly 161000 employees till september. Or with no job cuts or layoffs and sara again that all ends in september which is why now we are hearing talk of those job cuts now its a lot going on for a voting it more than a few a few years of them just losing money and like you said the planes right there just sitting there and many countries that order that airlines that had ordered the 737. 00 max jets now canceled their orders so theyre still struggling with that but fair lets talk about their biggest competitor airbus are they kind of going through the same situation here with this pandemic you know luckily for boeing or airbus is kind of saying the same thing its just not as painful as boeings now later than the end no later than the summer of 2021 air bus says it does have plans to cut 15000 jobs mostly in europe and they could start as soon as this next month airbus reports its commercial aircraft Business Activities have plummeted by close to 40 percent as the pandemic has shut borders brought mass tourism to a screeching halt and as weve seen its brought airlines to their knees so while boeing is still continuing to suffer the only positive here is as you mentioned their biggest rival airbus is somewhat going down with them and sara sticking with airlines amid this pandemic you also have russias aeroflot now requiring any and all passengers to be tested for coded 72 hours before departure this now being the standard as their flock plans to resume its flights starting this saturday well fare and this has many questioning whether or not actually can aeroflot can that do this are we going to see more do this if theyre allowed were going to see but you know the federal air Transportation Agency says that they sure do have the right to do this air flight also noted that its only the p. C. R. Method of the code test that will be allowed no other tests including the antibody tests wont fly pun intended and that p. C. R. Test thats the one that goes all the way up your nose thats not fun you know were going to keep our eyes on that because if the United States are doing the same u. S. Airlines are across the globe then flying will be much more restrictive exactly in that case and that was our t. Correspondent fair. Thank you for that report. Now lets turn back to those 2nd quarter numbers we just spoke about for more on this we bring in boom us cohost Christine Christie the markets are tanking today this is as the 2nd quarter numbers g. D. P. Were released of that falling 32. 9 percent break it down for us yes the markets tank this morning but manisha stage a rally away up ahead of major tech earnings coming up this evening so basically tech is the only sector the only thing thats basically holding up the markets right now as these numbers night of the Great Depression or even the Great Recession or any other slump in basically the past 2 centuries have ever caused such a sharp drain on the economy we saw a very sharp contraction and personal consumption exports in the tory investment in spending by local and federal governments so right now personal comes bust sumption as you spoke about has historically accounted for 2 thirds of all activity in the u. S. And that dropped heavily and in the past we also be iterated that consumers and strong u. S. Consumption that was the only thing that single handedly drove grows all of 2019 and right now that is in danger because consumption is not returning to previous levels as before because the pandemic has fundamentally changed the way that consumers shop and interact with one another not to mention its also brought about a great amount of uncertainty to people so right now theyre more risk adverse and more likely to save so bottom line the u. S. Has dug themselves into a very deep hole that they now have to climb out of it sounds like people might be changing their viewpoint weve heard this conversation before about the subway system away from it from luxury goods to not only that also just people who are like you said are now saving that money instead of consuming and spending here and there on Online Shopping or even going to to the mall like they used to well it sounds like a good thing but then if you think about it the entire u. S. Economy is driven on consumption and services that right we are a very Consumer Base country so itll be really interesting to see how this all plays are Going Forward with the millions who continue to be unemployed but i want to turn this over a little bit to. Overseas to germanys g. D. P. Which also fell heavily it fell by 10 point one percent in the 2nd quarter how are we comparing this to the United States how does that look so germany is pretty much in the same boat as the u. S. As this is also the sharpest quarterly decline since g. D. P. Calculations began in 1970 so this data came ahead of both france and italy figures which will be released on friday which are expected to show a similarly dismal fall and output so european stocks tumbled as much as 1. 7 percent dropping to the lowest since july 1st and right now there is this complete vacuum on e. U. Positive news as the ratification process for this historic Recovery Fund has now begun so meanwhile germany has also recorded the highest number of new cases in about 6 weeks so markets right now are very stretched and nearing their limits without any further stimulus and much stronger recovery is needed so the 3rd quarter is likely to be much more challenging as the markets could see renewed volatility as the current stimulus measures dont seem to be able to prop it up any longer well especially because all eyes right now are on europe because of their recovery that they seem to have handled the pandemic a little bit better than the United States at least contained it for that matter but there are more restrictions being placed because of this the 2nd wave possible 2nd wave however i European Tourism is really struggling because of the panic and americans right exactly and that is why its hard to compare apples to apples but right now they do seem to be in the same boat yes there are indications that europeans there are recovering a little bit better than the u. S. But because of the 2nd wave that is now hitting asia and europe and germany now is reporting increased numbers kovan 1000. 00 is not becoming just an american problem its also becoming a worldwide problem because it seems like even europe even with their stricter measures there is still growing in numbers so they seem like theyre containment efforts while while they have been working its not enough on there definitely still looking for that 2nd wave because some are tightening some of the restrictions that have been eased off obviously their culture too is changing. Through this pandemic that was cohost christiane thank you so much for being with us today thank you. Well rhetoric from the u. S. And its allies point to an International Effort to try to contain china will they even superpower continues to expand its presence in foreign markets well to those fearful of china the trend is pretty disturbing arties alex the hell of it has the latest. From mines in Canadas Arctic to farms in america the sleeping dragon china is continuing to spread its wings and some dont like it if the free world doesnt change doesnt change the means china will surely change. The cant be a return to the past practice because theyre comfortable because theyre convenient currently reside he is high amongst anti china factions in canada as Chinese State run shamed on Gold Mining Company moves to buy a mine in the Arctic Circle some experts fear that chen dogs plans put canada at risk as the gold mine sits in a strategically important region known for resources and shipping routes Richard Fadden who is National Security advisor to both Prime Minister trudeau and former canadian Prime MinisterStephen Harper has gone as far as to say this purchase should not go forward they are clearly adversaries and i think we have to take that into account every time they seek to buy something although the toronto based company that is selling the mine has approved the deal as with all canadian assets being sold to foreign state owned companies the federal government has the last say and could stop the transaction from happening the final outcome has not yet been determined meanwhile in the states its farmland that is front and center data from the u. S. Department of agriculture shows that Foreign Investors control at least 28 point 3000000. 00 acres of farmland in america thats about the size of ohio and its worth upwards of 52000000000. 00 of that according to the u. S. D. A. Economic Research Service chinese entities control about 191000 acres worth 1900000000. 00 chinese owned w. H. Groups smithfield the Worlds Largest port producer owns about 150000. 00 acres. Although china holds just a small fraction of u. S. Farmland critics say that when it comes to agriculture it is about u. S. Food security and that the current estimates of Foreign Ownership do not reflect the reality which includes unregistered interests efforts to limit Foreign Ownership of American Farmland are in place in a number of States Hawaii iowa minnesota mississippi north dakota and oklahoma have banned it altogether as for china it prefers to take up business as usual approach and says that the u. S. Has little to fear from Chinese Companies punkin to you and they. Should the Chinese Government has always required Chinese Companies to conduct Foreign Cooperation in compliance with walls and regulation its weird some people in the us to correct their mentality abandon prejudice stop using state power to suppress Chinese Companies and do more to promote china u. S. Relations not the other way around that ultimately it cannot be ignored that china is a world leader and that it is an integrity part of the International Community as companies from countries such as canada and the us own foreign assets so to their chinese counterparts although some of chinas players are state dont china insists that like all entities operating on foreign soil their companies have to abide by the host rules for r t im alex my love its. Time now for a quick break but stay here because when we return a big week for the Worlds LargestTech Companies after a full day facing questions on capitol hill all morning reports are due i think got a break in the number thought that. L. Look forward to talking to you all that technology should work for people. I robot must obey the orders given by human beings except where such orders would conflict with the 1st law show your identification for should be very careful about official intelligence at the point obesity is to face trusts ever other than sheer. Conflict on various shots and with Artificial Intelligence will summon the demons. Of the obamas protect its own existence as a makeshift. Join me every thursday on the elec simon show and ill be speaking to guest on the world of politics sports business im show business ill see that. You cannot be both with the yeah you like. Its definitely something before they got into small surely its all going well when you see trevor last may want to get vaccinated and could say. If you want to overcome the global restrictions travel restrictions to come to me was to chance then we have to have a job of that scene. On thursday Global Markets fell after the u. S. Reported its plunge in g. D. P. Well this after wednesdays Federal Reserve meeting where fed chairman Jerome Powell expressed concern over economic recovery yet promise to continue to use all tools at his disposal we are committed to using our full range of tools to support the economy in this challenging time. We have held our policy rate near 0 since mid march and the stated that we will keep it there until we are confident that the economy has weathered recent events and is on track to achieve our maximum employment and pray stability goals well this comes as wall street awaits the much anticipated big tech reports that make up nearly 5 trillion dollars in Market Capital well for more lets bring in founder and chief Market Strategist. Traders dot com chris formula and c. E. O. Of pentode portfolio strategies Michael Pena Nieto gentlemen thank you for joining me today. Thanks for having me michael lets start with you with the Federal Reserve made no changes this week after its meetings of 2 days of meetings the chairman powell also even argue that the pandemic is pushing down prices and that overall inflation is actually running well below the feds 2 percent target we are seeing some prices driven up in food prices is the u. S. At risk for hyperinflation. Well 1st of all and i hate to disagree with you being you know coming to guest on your show but 1st of all that said i think what made 2 changes to their statement number one is the editor thinking about their statement so used to be the fed wasnt thinking about thinking about raising rates now theyre not thinking about thinking about thinking about raising Interest Rates that was change number one and then the other change as a 1st time i ever heard mr powell of how that the feds target is symmetrical its 2 percent target symmetrical meaning that there is many years that it was below 2 percent on the couper p. C. T. Deflator it has to now be above 2 2 percent and this particular metric that measures everything except what is rising in the economy so since the core p. C. Deflator has been below 2 percen