this is boom bust the one business show you can't afford to miss i'm sorry month in washington coming up u.s. unemployment claims are down for the 11th straight week but some are having trouble finding the good news in that nearly 46000000 unemployed and a new trade war may be brewing not with china but europe and we'll tell you what a possible to. have a talk show today so let's go and dive right in. for us unemployment numbers are in and the latest figures from the labor department reported 1500000 more americans filed for unemployment last week this is up from the expected 1300000 well this also marked the 11th straight weekly decline in applications but also the 13

consecutive weeks or week where jobless claims remain above 1000000 well this is a total of more than 45000000 americans have filed for unemployment as a chronic virus continues to slow the u.s. economy and with many states reopening and some old jobs are turning the total number of people receiving unemployment actually slightly fell well to talk more about the markets we turn to our panel of the outlash training group co-host chrystia i adam let's start with you unemployment data came from came back and it's worse than expected but something else was also quite unexpected there were we're getting it we're seeing people getting unemployment benefits rather that are than there are actual on employed workers how did this happen. so when the. route was put into more really. which contributes to that but also what. people are only considered unemployed if they look for jobs in the

last 4 weeks they discount a lot of people who have given up on looking for jobs and with people kind of discarded for the job market or maybe afraid still get in corona virus there's less people than looking for work plus they really picked up how much you get paid for unemployment so you're seeing a lot more people get it and that's where that disparity comes in with the numbers where there's more people that are receiving you know harassing your input well originally adam correct me if i'm wrong but i believe the unemployment numbers took into account those who weren't looking for jobs because of the pandemic and that's still the case. i don't believe so i thought it's only within the last 4 weeks and then outside of that it's not counted. that's the. stock market for you but i believe it's just the last few weeks i see ok christy meanwhile there are still some huge backlogs in the unemployment payments to millions of americans what is out looking like now. well right now there are still

a lot of americans who lost their jobs during the crisis and they've been unable to collect their unemployment checks like just on twitter alone you can see from these photos these massive lines in kentucky in the capitol where you have massive lines of people flocking to the state capitol early morning wednesday in order to see person help in person because they haven't been able to get on the phone or do it online so most of these days not just kentucky they've been overwhelmed with the 10s of millions of unemployed insurance benefits claims that are filed and most of these systems have been in adequately staffed or just load balance to handle this surge of demand which has resulted in crushing computer systems clogged phone lines up further complicating the problem so now we have more than 20000000 americans who are currently receiving checks and but many others are still unable to even access their 1st time check and benefits are struggling now to pay for food and rent and now in california where i'm at the backlog has now officially topped over $1700000.00 in 2 months so that means 1700000 california workers who filed claims

during those 2 months they are still waiting for their 1st time payments you said these lines are form because people can't even get a hold of them but out of going off of this looking at this this backdrop has this expectation for the v. shaped recovery that's been overly optimistic that people have been expecting how can we get this bounce back in the market and how is it pricing in new unemployment claims are back up over a 1000000. it's a really good question i think when you talk about what you do specific about. because this is a stock market which is. and we've seen some. remind me of the internet bubble and . just. when they were. just really rational. and it's not natural but if you talk about the economy. that's not going to give you shit recovery. with jobs.

the world is not going to be better placed in the stock market it's not because the world market. economy no i don't think there will be one now it's not and it's definitely been been this roller coaster of that we've been seeing in the market with the volatility and much like you said with this possible 2nd resurgence kristie let me turn things to a little bit of the tension there has been between china and the united states secretary of state my pompei i just met with china's top diplomat yang joshi on wednesday what came of this meeting. all right now diplomatic observers are saying that this meeting showed that both nations they do not want their bilateral ties to be derailed especially ahead of the u.s. presidential election so expectations were fairly low for this meeting but at least tempers were kept in check as they discuss very sensitive topics such as taiwan

hong kong the china belgium wrote initiative the high tech race the arms race as well as others so afterwards the u.s. released a statement stressing the importance of american interests and the need for fully reciprocal dealings between the 2 nations across commercial security and diplomatic interactions meanwhile china also released in their statement that it hoped the u.s. would be accommodative and push their bilateral relations back on track for coordination cooperation and stability and also reiterated that china's stance on hong kong and taiwan was purely an internal affair and opposes any sort of foreign interference so now while the meeting was quite tempered there's clearly a strained relationship not to mention the fact that this meeting it was not. publicly announced in advance and it's still not clear to to this point which side has proposed it to begin with which really highlights the tension and the mistrust right now that now permeate between the world's number one and number 2 economies and we saw this play over and over again after the trade war which is still in

effect they were only signed a phase one will probably won't be seeing the face to any time soon and i want to move over to commodities when will or will ever the u.s. shale rebound to prepare endemic levels do you see this happening. i mean. it's not going to be something i see how a near term future. and that goes along with all these should be kind of rude you know to someone like myself who is important to me for a 100 days like i'm signed you know comfortable so i'm going out playing golf but i still want to get on and there are. people that i know that have worked in offices their whole lives there. and as number spike in other areas is something i think that goes with with no not with start up again and we'll get there but you know if you ask her yes yes it will come back but the bigger question i worry about

these companies like your chances which are. you know. the last to come back and that's where you get into a piece of viable look at it you could start to see more m. and. companies look to consolidate and. so. i'd be really nervous if i was in that industry and i needed the near term fix because i don't think you're getting the energy sector has definitely been hurting a lot kristie about a minute left but the u.s. production has plunged by $600000.00 barrels per day is this the new normal. it certainly does seem to be the new normal because right now we're taking we're taking production cuts all around the world and especially places such as the middle east such as russia such as venezuela which rely more much more heavily on the oil economy and then the u.s. so those economies are definitely hurting and at the 1st chance it gets whenever demand actually rises again they're going to they're going to be surging oil back into the market that's only going to drive prices down so the u.s. is going to be more so collateral damage in the midst of all of that especially

because they are looking for more of these cut out of mesh of the trading group and the best co-host christine thank you both for your time today. thank you. there are now fears the trade war. but a rough between the united states in europe after u.s. leaders walked away from negotiations over taxing big digital companies like google amazon and even facebook will some european countries plan to move forward with new international taxes anyway which could then lead to the u.s. to retaliate with tariffs on some of their products were legal journalist molly barrows together with america's a lawyer joins us now with more molly good to see you why are european leaders proposing new international tax rules. well there they say it's long overdue that there needs to be a major update and over all these international taxes in order to bring it up to the modern digital era they're basically looking at big digital companies that are based in the u.s. getting corporately tax in the u.s.

but not having to pay corporate taxes anywhere else in the world where they have hundreds of millions of customers and are raking in hundreds of millions of dollars each year so you're being countries have started to levy these digital taxes in the past year and they had them on hold as long as the u.s. was willing to negotiate well this week u.s. trade leaders said we're not like in this it looks like it's going to move forward regardless and they feel like they're being unfairly targeted essentially because the current rules say you can only be taxed in the country you're producing the product you have to have a physical presence in order to be faced with corporate taxes but these countries are still i mean these companies are raking in a lot of money in these other countries where they're not based but their customers are because it's a digital era and the u.s. says well if you're going to write these rules to where companies that make a certain amount that's what they're proposing is that companies that meet a certain income threshold are the ones that are taxed that immediately makes a number of these very big companies that are based in the u.s. targets is what u.s. trade leaders are saying they feel like they're being discriminated against so

they're not happy about and that's why they walked away well at least it looked like there was supposed to be a conversation about this we've seen the united states the great wars with other countries in the last couple of years and some took effect he you know he managed to to get into one with. china the world's 2nd largest economy and that causes a lot of harm to to the economy especially to certain sectors like farmers for example but how is a potential trade war now stemming from this and break it down for us what would that look like with the european union right like you said sara we can't afford another trade war with any country at all much less dozens and that's essentially what you could potentially be looking at because there's 140 countries that were part of this group if you will that was trying to negotiate new tax rules and the united states has been seeing this coming for some time it's no real surprise that they don't want to participate i think people realize that they don't want to see their companies paying taxes but basically what the u.s. is saying is hey if you're going to if you're going to make us pay taxes which we

think are unfair then we're going to add tariffs on to your products so some countries say they're going to wait before they move forward we're talking about tax rates of anywhere from 2 and a half percent to 7 percent from countries like italy france hungary a few in many many others but france is saying you know what we don't care that you are the way we're going to go ahead move forward with our digital tax i think 3 percent and that's when u.s. trade leaders said you know what you can do that and then we're going to start taxing your goods france including shipping of champagne right basic either i don't like shopping items purses bags or yes only do all the good i mean it's a shame because much like you said we can't afford another trade we're not only because of what we've seen with the u.s. and china but because of what the world is experiencing recessions all over the european union the united states just turned into one so a lot of companies are countries already hurting but are u.s. companies still subject to this new tax. actually no because current tax treaties i mean they are they are they don't have any control over is what i'm saying current

tax trees don't exempt us from being able to say we're not going to pay it i don't know exactly how that will break down if they just keep walking away from negotiations but i don't think this issue is going to go away and that's why there is a real threat of a trade war and the lens you mentioned before. donald trump president donald trump's trade war that's ongoing with china this could potentially be a problem here as well because he's. launched a series of trade investigations into numerous european countries basically saying hey are you unfairly taxing us if you are then we're going to put more tariffs on you so it's this tit for tat retaliatory attitude that could potentially lead to even more economic problems not just at home but across the globe so you know u.s. companies may think they have the choice to walk away but you know the biggest thing that these tax taxes the new tax system actually has going for it is that you know they're outside the scope of tax treaties so they the u.s. doesn't really have a leg to stand on to say no we don't want to pay it when there were already taxes implemented over the air bus issues that we saw with the united states putting

tariffs on certain products from from europe so i mean only only time will tell but it doesn't look like you said like this will go away i hope and pray that we don't come into another tit for tat trade war because again the united states and other world markets cannot afford any more money barrels contributor with america's lawyer thank you so much for your time. thanks air. time now for a quick break but stay here because when we return chairman jerome power the federal reserve is ready to buy a corporate bonds to keep the market moving but critics say it gives the fed too much power to pick winners and then pick losers as we go to break down the number that.

the simple things workshops and some teachers back up public spaces where adults with learning disabilities can engage on equal terms with creative activities like graphics serving ceramics. and joinery. just giving you shit what's it you know what. your life just is what did you give one case a couple of. the underlying idea of the workshop is a calendar of which they feel thrilled to find joy in the little things of. god. if the epidemic continues as a disease the economies will not work we will not have trade

tourism. the investments we will have continue with very deep economic crisis. is you'll be a reflection of reality. in a world transformed. what will make you feel safe. isolation the community. are you going the right way or are you being. what is. is. in the world corrupted you need to descend. to join us in the death. or

a mate in the shallows. the world health organization has welcomed the preliminary results for the steroids x. amount the cell phone that can treat critically ill kovan 1000 patients published earlier this week however w h o chief. gabriel said research was providing green shoots of hope and should be reserved for serious cases in which a has been shown to provide benefits all this while the agency hopes for a vaccine by late 2021 we're hoping that didn't going to be one that we will have $2000000000.00 of one or 2 or 3 effective vaccines due to be distributed around the world because of all the investments going into this week let's see we will have $2000000000.00 by the end of 2021. we should be able to vaccinate at least these

priority populations there are about a dozen kovan $1000.00 vaccines in early stages of testing worldwide the w.h.o. is currently working on developing an allocation framework for how these would be distributed. breading a better idea of how the federal reserve banks corporate bond buying program will play out will corning. the fed chairman jerome powell the program will entail mostly individual company that rather than exchange traded funds well powell told the house financial services committee on wednesday over time will gradually move away from e.t.s. and move to buying bonds powell said it's a better tool for supporting the quality and market functioning well joining us now to discuss the film best co-host investigative journalist and michael pentel than let's start with you explain this corporate bond buying program to us and exactly how it works you know a lot to talk about here but essentially back in late march the fed announced they were going to embark on really 2 facilities which they said would jump start this

$9.00 trillion dollar corporate debt market and what they said they were going to do was essentially go about buying bonds directly from the issuers in one case and in the other case they would then purchase them on the open market now as you just said fed chairman jerome powell on wednesday came back and said that rather than doing that through e.t.s. they would now kind of focus on buying them directly from the issuers themselves so that's kind of the general picture of what this consists of but obviously there's a lot of details when you really look into how the fed is going about doing this and whether or not they even can be doing this under the way that the laws are shorter right now it is and it's been criticized for it now it's a big move on their part from what they've already done michael what makes this program so unique though compared to other efforts by the fed it to keep this u.s. economy moving forward. well 1st of all thanks for i mean the program so 1st of all is the size you know from the wave of the great recession albeit through the peak

of the fence down street it was 7 years in duration and it was you increased by $3.00 trillion dollars well you know we're in listen here the fed's balance sheet increased by $3.00 trillion dollars it is now $7.00 trillion dollars in size and by the way that says biology is supposed to be something. imposed a government guarantee that it's mostly buying sure a jury resource resupplying funds for the said funds market which is overnight lending between 2 banks but we're going to have to get the right to buy junk bonds collateral is a loan obligations treasury and the fed are set up for usual orses and not many people care because stocks are almost back to an all time when michael powell is saying that this is to keep markets going to keep market liquid but there is obviously a lot of criticism in this program tell us more yet get more who is that we're in

the fed's mandate i thought it was full employment stable prices of course they were places presence now means 2 percent inflation and then it's a symmetrical target so now it has to be above 2 ringback were the same duration and amount that it was low to and right now the way the fed measures inflation is 0 so this is what's happening now opens the treasury market the municipal bond market the corporate bond market did jump on the market the c l or it did and by proxy the real estate market and the stock market they're all in a massive bubble all by the federal reserve if you never see the label remind you that in 2019 they were reducing the size of the best bells for him surely and to $3.00 trillion and the wheels fell on the economy it went bad security and lower rates 3 times from 2 or damn percent 1.75 percent so the fed is strapped they just never are why this balance sheet is going to grow and grow and grow and so we sat

flayed our way into it with all the rates had already been lower and us hearing had already been lowered prior to preplan demick but i think people forget that i guess the point you bring up a good people forget how much the fed actually how many of these entities the fed actually own but better tim go ahead. but only i mean i'm sorry spent under somebody else i was going to them for i was watching some other channel a c c n b s i would say real name of the channel and they should and this is what they said this is not really an elephant in the room because they are not buying as it is oh well market prices below this over the mortgage there's surely these mortgage prices we should be very concerned doesn't sound like a free market these days about michael just pointed out some of the biggest problems right now but there's been other criticisms that indicate that what the federally is doing isn't even legal is that true. well it's not really legal

because it's exactly what michael just said he made several great points there but essentially what you're talking about is the fed has a mandate for unemployment as he said they deal with interest rates they keep those interest rates low there's a lot of questions even about the tactics they already use of the devaluation of the dollar as a result of what the fed has been doing but here's where this is especially significant is what michael pointed out here is that ultimately the fed right now is buying junk bonds they are buying essentially bonds that look if you go back to 2008 what was the problem that we had we had bundled junk bonds that is essentially crashed the market the 1st time the fed is now going out and buying these up right now and saying that this does fall within their mandate because essentially the fed is pretending that its mandate is to save the u.s. economy it is not the mandate of the fed to save the u.s. economy and by the way when the fed decides unilaterally that this is now its mandate it also means that the fed is deciding what saving the economy equates to

and the fed doesn't that have the authority to do that and to decide what it has the authority to buy and to take up so essentially what's happening is the market is being flooded now and the only thing the fed in the past has been allowed to do is buy up these e.t.s and now they're saying we're not going to do that anymore we're going to go directly to the issuers of these junk bonds and we're going to buy directly from them where is the accountability in that process and there is 0 well about let's turn it over right now to the employment numbers we've talked about this early in the show we've seen the unemployment benefits rise to new levels now saying that there should be extended beyond july while others are saying that they're going to be docked the weekly unemployment check that people are receiving why is that. so essentially what's happened is this with the unemployment insurance and issuance that's been going on since coronavirus came along congress up the amount that people receive by the additional $600.00 the problem with that is by upping that to $600.00. dollars and that was supposed to last until july 31st

by doing that you're essentially making it. basically a better value for someone to be unemployed and receive that check than they were having the job that they lost as a result of coronavirus so there are a lot of workers out there who say right now i'm making more money through unemployment than what i was getting right by actually going to work so i don't plan to go back to work or i'm going to hold off as long as i can the problem is yes you're trying to help people in the short term by saying we don't want there to be a big shortfall but what jerome powell is telling congress is that is that congress needs to extend this and keep it going indefinitely in even give a timetable for when to do it he just says continue with past july and keep it going and if you do that your d.d. incentivizing businesses to reopen and people to get back into the right force not that i internet dangerous thing that's why investors are so into the market michel last question the fed will probably not lift all companies with so much stimulus that not all factors what does have strong factors that we're looking at some stock strong picks in your opinion. well 1st of the say that ben is very great and he's

got great hair. i would say this that it is 29000000 people unemployed right now so if you're out there buying momentum stocks and stocks you got to get crushed where you were you know high right now you can't really buy the bond market because a 0.7 percent 10 year offers little to no protection option to take the role i would say you have to do you know some precious metals farmland. and maybe some play in platinum other than that where were you hiding i mean i ran an active strategy long short story and you said you were very well for us thank god but if you're a passably manage you're going to get slaughtered. well absolutely and i will see how much more the fed plans to do because they won't stop until they said that the recovery is maybe in a few years michael pentode president and founder of strategies beyond us co-host investigative journalist ben so on thank you both for your time today. author for this time you can catch combust on demand and catch us on youtube dot com fast

combust r t wealthy and time. in the troubled 19 seventies a group of killers rampage through parts of northern ireland that was coordinated loyalists attacks particularly on the population of belfast tens of thousands were forced to flee their homes come up with straight and put these attacks was a p.r. you see the police actually took part in the attacks so instead of presenting they were active participants in the burning of coal streets in belfast plague more than a 100 innocent civilians with blood that has to live you can see in years and we found out more i was surprised about the extent and of the crates which the pollution was involved in some of those cases that killers would later be named into the now we're getting i think it went to do very very top i

think it be. the water where all the patients you thought was going on and give the go ahead. was neutralized the boldest are you know of any of the neighborhoods unless that's l.a. city if. you. are from the regular morgue for your own or your partner do provide for 30. odd. water source like your old. lucifer mistletoe is just that in the gutter with them to throw. it is not my achievement mr davies our 5 year plans were conceived by lineage and carried out by the people themselves if they would produce or even florek it with the idea of making a film like this they probably be branded as crazy. now is the sentiment during the

war the soviets were brave heroes resisting the nazis that's going to change of course after the war but once the cold war begins. little people think that hollywood is a free place with is a strictly defined by. the business and the other side is ideology. alan i define hollywood is they call it the dream manufacture which i think's true but i think equally it's a problem in the fact. speaking to west point graduate strong 6 we're ending the era of endless wars 4 years ago on the campaign trail he said essentially the same thing twice and so difficult for

this president to make good on this promise why make the promise again and if it can't be. he predicted pandemic related political trouble for donald trump before the 1st case of call the 19 was even discovered in the united states so what does he see on the political horizon now one on one with pollster frank luntz on this edition of ballot. lot of the politicking on larry king in a to mull to a selection year the united states grapples with coast to coast protest a pandemic crisis and major economic woes 2 thirds of american voters see.