chelsea delaney chelsea astonishing numbers coming from all colon is europe which is a real standout think is well they're certainly all catastrophic pretty much every country is posting some sort of record contraction for this quarter but what really stands out is what's happening in spain that 18.5 percent contraction it's just a staggering number and if you consider the situation spain is now and they are seeing cases rise that and now many european countries including germany are warning their citizens not to travel to spain that's going to blow a deal of really big blow to the to the spanish tourism sector which is about 12 percent of their economic output so there are 3 in a very deep hole it's only going to get worse for them right now and this is going to be a wake up call to european policymakers surely do they seem prepared to step up that protection. well from the e.u. side they just they just agreed on the 750000000000 euro recovery find it was extremely contentious and it still has to be a path passed by european parliament so it seems unlikely that they'll be pushing for more stimulus anytime soon but on the monetary policy monetary policy side the european central bank has indicated today that it would be willing to keep in place its stimulus efforts through the middle of next year whether that will be long enough is still a bit of a question but they do seem ready to pump more money into the economy financial correspondent chelsea dillon anythings joining us. now in the same week as congress called them 2 powerful america's biggest tech firms of showing they're only getting stronger with impressive q 2 figures facebook came out on top reporting an almost doubling in profit despite an advertiser boy culture in the period meanwhile amazon posted its highest profits ever and apple beat wall street's revenue expectations however google's parent company alphabet announced its 1st ever decline in overall revenue was due to flagging abseiled. staying with tech a u.s. national security review of popular social media platform tick-tock is expected to land on president donald trump's desk any day now the investigation will address concerns about how the chinese earned app stores personal data and about allegations of censorship. with $100000000.00 users top those that sell for the digital playground but now it's turning into a box all grown between the u.s. and china. with american suspicious of its owners the be backed

with let's bring in our financial market correspondent chelsea delaney in frankfurt chelsea what are investors there rooting for european solidarity whatever the cost or those with strings attached. and bester is do you generally want to see this deal get approved today the wrangling over this has put a lot of people on edge but investors obviously recognize this 750000000000 euro recovery fund is going to be really crucial for helping the economy and europe especially the harder hit southern european countries out of this recession but we have over the course of this morning as there has been reports that some of those through will for countries are becoming more willing to negotiate on the question of loans versus grants we have seen markets recover at that we've got the dax up here in frankfurt about 0.5 percent and the euro has also moved a little bit higher so there is optimism. that these european leaders will be able to strike a deal today one of the big sticking points or one of the big questions for investors is going to be how much of this is grants because grants are suppo

well let's bring in chelsea delaney a financial correspondent in frankfurt chelsea why is tesla driving ahead. but is lagging explain the difference that. well there's really a big shift happening right now in the auto industry broadly so the industry is really preparing for a future of greener vehicles of electric vehicles and that's really why tesla right now is seeing so much interest that's why its stock has almost quadrupled this year so it's been in this game for a decade so it is starting to be profitable in making electric vehicles and starting to open up all of the back of these warehouses or these factories all around the world so it's really ahead of the game and terms of the shift that's happening all of these other automakers diameter volkswagen the u.s. automakers toyota they are also trying to to prepare for this they really are investing a lot of money into electric vehicles but they're just a lot farther behind the curve. what's it mean for tesla being a b s b 500. so they are now technically able to be in the s. and p. $500.00 they the requirement is that you have to t

of slander out let's bring in chelsea delaney our frankfurt stock market correspondent chelsea president trump also said last night that the u.s. would be willing to work with china on a vaccine this is all getting very confusing can markets make sense of those mixed messages. i think it's really difficult for markets to know how to interpret those especially given the lack of a cohesive message from the united states but what is clear from markets is that the risks of more china u.s. tensions are rising quite quickly we've seen just a very wide spread in crease and tensions over things like this spying and hacking scandals but also the obviously of the origins of coronavirus the independence of hong kong so there are a lot of different elements that play here and at the same time these are the 2 biggest economies in the world the trade war between them was really painful not just for those countries but really the entire world and so if we do see these tensions begin to spill over into the economy if we see more terrorists if we see retaliation that could be a big problem for the for th

on this let's bring in our financial correspondent chelsea delaney she's joining us from frankfurt chelsea we know it's a tough time for the airline industry in general but how's ryanair been fairing in comparison with other carriers. well as we heard in that report they they also are being absolutely devastated by the pandemic they have seen. travel basically all but stop on their on their flights so they are being impacted and they certainly have a lot of a lot of uncertainties ahead of them given the continued growth of infections throughout the world but they have been doing slightly better than than most other airlines especially here in europe like a lot of the airlines like air france that they didn't have a they didn't have to seek a bailout they they still are quite solvent they had about $4000000000.00 in cash in this quarter so they do still have a pretty strong financial position and they are seen as pretty likely to come out of this ok because they they have a very low cost structure so they can really cut costs and hopefully gain some market share coming out of this ryanair i

s financial correspondent in frankfurt chelsea delaney good morning to you chelsea how are investors responding to the news from p.s.a. today. the takeaway seems to be that this wasn't as bad as as a lot had been fearing they are still profitable and that's really in comparison to a lot of other automakers that are reporting pretty big losses for this quarter for example timelier recently reported a loss of almost 2000000000 euros for the quarter so they are still making making money at the same time of course they they are seeing really significant sales declines because of because of the coronavirus they base all revenue down by 30 percent this quarter and they still do expect the market to contract by about 25 percent for the full year so even as we are seeing sales start to pick up again from from the low point it's going to be 0 a while until things recover in the way they did before but they are also are quite optimistic about the status of this merger which is also helping the stock a bit today david through the bars of course wayne hughes well on the european central bank you

economy it was get some reactions now from our financial correspond chelsea delaney down to frankfurt stock exchange today to a chelsea what have been some of the reactions where you are well of course it's a bit of a dropping number a 10 percent contraction is a little bit steeper than people had been expecting that the average estimate was for something closer to 9 percent this also as you mentioned is the worst figure we've ever had for a quarterly economic arena since they began collecting this data in the 1970 s. and it's also about twice as bad as the previous record and during the financial crisis so it is clear that that this was a really horrible quarter for germany we saw declines and basically across the entire economy exports and imports consumer spending business investment all of it was really decimated during this quarter ok this last quarter what about this quarter the next one moving forward is this the new normal or can things improve. this likely will be the low point for the german economy because in this quarter in the current quarter we have started to see the economy to reopen and we are startin

or how did that happen did obvious chelsea delaney joins us now from the frankfurt stock exchange good morning to you chelsea look we expect from the hearings later today. it is expected to be a real grilling for for these politicians this will include the finance minister olof scholz and also the economy minister pitch altmire and this is really notable because a lot of the questioning and a lot of the criticism has really focused so far on often the banking regulator the head of the banking regulator has to has also faced questioning and parliament but this is really the 1st intense grilling of of these politicians so it will be a closed door session but we've already heard a lot of a lot of politicians sort of indicating what kind of questions they're going to be asking and it seems like the main question is when did the ministers know what was going on at out wire cart and why did they not really have any. why why did they not change it so it what we've heard so far is that it appears that at least the finance minister knew about these allegations and february of 2019 and obviously this this has just blo