and biggest power plant, it's like you said back in the east, but keeps as a counter offensive center. the only key bridge in the south is gaining ground. and the president of the united states in china have how they're supposed to phone call since march. tensions over time want dominates to the exchange as gigi and paying a warrant, joe buy from not to play with fire by intervening over the whole world news at the top of the hour 1st. so to now do more business updates in just today. ah, we've got some hot tips for your bucket list. romantic corners, hotspot for food chairs and some great cultural memorials to boot d w. travel off we go. mm hm. school is

establishing an old order. she june pink, president of the global power china is part of a whole system which believes his time has come. any criticism of his regime isn't nipped in the bud. ah, he believes his weight is far superior than that of western democracy. china's president, she ging starts july 30th on d, w. a president joe biden, in 5th, the united states is not in recession. that's after new data show the 2nd straight quarterly decline in the countries economic growth. also on the show, a new study illustrates just how catastrophic sanctions have been from russia. we

speak to one of the researchers. this is d w business. i'm janelle comalla unwelcome. we begin in the united states where joe biden has called upon congress to pass the inflation reduction act, a package allocating $369000000000.01 for clean energy and climate initiatives, and for keeping inflation in check. he spoke hours after the release of data showing the u. s. economy shrank for a 2nd straight quarter at an annual rate of point. 9 percent still biden stressed in his remarks that this should not count as a recession or prescription drug pro. which means hetty australia is standing by for us at the new york stock exchange. teddy. so just like fed chief j powell yesterday biden. in 5th thing, the u. s. is not in a recession. how did markets digest this negative growth news? well, the stocks actually rallied today, just like yesterday. the indexes are up,

that's the tao. the nasdaq, the s and p 1 may wonder why this is bad news, isn't it? well, markets know that this is only a technical recession. that's 2 quarters of economic downturn from the g d p. a bodies like the national bureau of economic research, which determines whether or not we're actually in a recession, look at other economic factors beyond g, d, p, such as the job market, which happens to be booming in the united states right now. unemployment is down jobs. well, there's plenty of them for workers. so yes, markets are up. well, just because of the message centers around the u. s. not being a recession and just because market seemed to be buying, that doesn't mean that a recession isn't coming. tidy. recession is still certainly on the table for many on wall street. morgan stanley's mike wilson says that the rallies of the past 2 days are a trap that were in

a bear market. and that we haven't seen the bottom yet. bank of america has determined that we might see a recession, a mild recession, actually in the 2nd half of this year, they're looking at factors such as consumer spending figures came out today that consumer spending is down, business investment, residential investment is down also, inflation still raging energy crisis around the world specially in europe, still raging, but also in the bright spots of the economy, the job market. we're seeing some cracks, such as unemployment taking up a vacancies ticking down. so recession is certainly still on the table for wall street. thank you very much, that update teddy auster there on wall street floss. now, when the russian ties the west in tatters, it's naturally looking elsewhere to do business. that's where a new trade route with india comes in with both countries hoping to speed up bilateral trade. russia has been cut off from trade with the west. the

sanctions imposed over its war against ukraine or hitting rushes economy. bloody may. putin's government lacks revenue from exports like oil and timber. the russian leader wants to bypass the blockade with the help of new partner countries. the usual trade route from st. petersburg to mum buy in india. it's a shipping root of about 15000 kilometers that take some 40 days ships passed through the suez canal to mum by before reaching markets all across asia. russia's answer is the new north south route from st. petersburg, moscow, azerbaijan iran, and to mom by it's a corridor of just over 7000 kilometers half as long as the usual root companies could save an average of 20 days worth of transport. and the costs that go along with it. russia hopes this new route could replace some of its last trade with the west. as far as i know, the only just just started very recently with

a couple of try out some, but it would save time and be much florida. and it would also, it's a very interesting for, for the countries in bowls like india or russia, it would also enable these countries to somehow get away or get out of scope. ready from the western sanchez, most of the world's population lives in asia. the new route gives russia access to this market, but are transport companies already using it? the question is posed to an indian logistics entrepreneur. i, mary, a celebrities across division i met you last can, did you the best? i'm not going for days from india and some other

asian countries have so far kept a neutral stance over the war. they say they don't want to take part in the sanctions against russia. we can definitely say that the, the war ukraine is a game changer. and not only a game changer for european security or military policies, but is it is a game changer for the global economy for global trade. it more and more looks as if we're really moving into a kind of world with 2 major blocks. and with one of those blocks increasingly isolated from the other, many asian countries are happy to take advantage of the west's broken trade relationship with russia. now in russia invaded ukraine 5 months ago, as we heard their western powers slapped moscow with sanctions they hoped, would hobble its economy. a new study out of yale school of management shows they have, it says russia now has an untenable position as a commodities exporter,

while imports that make up 20 percent of russian g. d p are down by half since the invasion began. companies are leaving russia in droves, erasing 3 decades worth of foreign investment. the studies authors caution against over estimating the russian economies resilience one of those authors joins me now. jeffrey's on and felt he is the senior associate dean for leadership studies at the yale school of management. welcome to you, sir. now, one of the key points he seemed to be making is that there is no ground designed to putin's actions and that he doesn't, in fact, have a brilliant strategy for absorbing the sanctions. how did you get to that conclusion? we took a look actually at the numbers. what's amazing is that a potent has a tried to disguise the economics statistics, the national economics statistics that they published for 30 years and almost fairly transparently,

or least to the part the world. believe him only for last 20 years, he's destroy that all as many economists have come to realize destroyed than just the last 4 or 5 months. so the standard national income statistics of imports of exports, of, of oil, sales of commodity sales, capital inflows, capital outflows, the central bank standing the, the loan ridge nation, the foreign direct investment, the air flights, the volume of flight traffic and passengers and private companies that used to have to report monthly what their performance was, none of that is transparent anymore. and a lot of naive western journals were initially were falling for this, as he's manufacturing new statistics instead of what every other country, including his own, has been putting out there for decades. so clearly he's been hiding something and it's for very good reason. he's hiding a law, they have massive unemployment. they have soaring inflation. their imports have dropped by half,

china's not making up for it. and they don't know what to do with their energy, which is so most of their, their income, thanks to huge miscalculations. not only that he missed calculate the resolve of the ukraine, people that said of falling in 5 days. there, there, there are 5 months later, but the unified europe, he did not expect that the world has shocked europe, is setting a model for the rest of the world in terms of how to stand up to a tyran. you alluded to the difficulty of getting reliable net tricks out of russia . how did you do your analysis when that is in fact a challenge? such a great question for anybody who wants to follow up more than i can bludgeoned you with right now, that this late hour for you is there something called s s r n as a free service that has scholarly net or i guess those are and they type in san invalid or, or, you know, sanctions, it'll pop up and we have 100000 people have already looked at it already. it is a $118.00 pages of our research is very transparent. what it is is we've gone to

non traditional sources. is that to get the airline data, for example, we are going to all the companies that we're leasing that run the plains or the service, and we try to get to the, the china statistics if they won't release what they're selling in the china. china says, here's what we're, we're selling back to, to, to russia, things of that nature, their stuff where they say, well, we can, we can send the oil into china that we would dealt with that we won't put in to be able to sell into europe. which is eighty's like 6 percent of their gas, for example, in better example, they can't get that into europe now, and they're even shutting it off to try to threaten europe. of course, is they can't ship ship that through to, to china or to india because of no pipelines to get it there. and this is not liquefied gas. they can go buy ship, which would take weeks. it actually has to go through pipelines. there's one pipeline i can get maybe 10 percent of it enough to maybe, you know, light up hoboken, new jersey here or something, not much to do for europe. so it's,

and in europe, as perhaps 40 percent of their gaz they're drawing from rush from russia. now, and there are alternative sources that are ramping up in the next few months. there's nothing they can do with it from, from russia on the other side. so all this data is out there. it's just not data that putin is releasing for every time you know, in a global marketplace as a buyer and seller, we have, since they don't have the sellers date of their holding back, we have the buyers data, we can show what's fallen off. so that's, that's what he didn't realize. you can still get this data now. so sanctions are working as far as their damaging the russian economy, but the point isn't just punitive, it's to keep moscow from being able to finance it's aggressions. can the sanction succeed in that way and bring about the end of the war? we have seen that all over the world. we saw it a bring down and part of a market off. he and libya of course, who said it with nickel edge, i chaskin romania, we've seen with our economy in east germany years. all skin pollen. we have seen it

all parts of the world, argentina, chile, where these and of course south africa. one of the classic is apples that was by the way, only 200 companies and governmental sanctions was very important. as you have private company sanctions matched with governmental, a private company, ex master governmental sanctions. these companies have pulled out when working with them 1300. he's high, then article i know have to leave it there. thank you very much. jerry sonnet. jeffries on invalid senior associate dean for their sake, and he's at the yale school of management. thanks. so much and thank you for watching. ah, a legal fields a legal wells, legal nature, conservation in southern spain, foreigners of digging up water from a unesco nature, a fossil fuel, scarce resources,

in which the authorities are partly to blame, focus on europe. and d, w is the end of the pandemic in site. we show what it could look like. return to normal. and we visit those who are finding it difficult. successes in a weekly coven 19 special. in 60 minutes on d, w. o. k. red alert for

this isn't just route. this is a rid if occasion i think we're going to have some epic fighting for the world or is becoming a scarce commodity. things just getting dryer and dryer and we need more and more water is omar. earth die of thirst? there is no water at all. but global struggle for water thirst starts august 10th on d. w. ah ah . hello and welcome to focus on europe a europe that is facing huge and unprecedented challenges. one of which is now while fires are.