Jerome Powell, Robin Young, Steve Mnuchin discussed on Here & Now
And you are I'm Robin Young. It's here and now the markets are clawing back this morning after the Dow finished down more than 500 points at the close yesterday, Also today, Fed chair Jerome Powell and Treasury Secretary Steve Mnuchin are testifying before a House panel about the need for a new Corona virus stimulus package. Spring, and Robert Farzad, host of public radio's full disclosure. Hi, Robin. How are you? I'm good. So yesterday that was not good. The Dow falling by more than 800 points. At its lowest point in the afternoon markets over a little better, the S and P 500 rising for the first time in five days, the Dow climbing back. Is it fair to say, though, that this dive Was because of the lack of the stimulus package that Mnuchin and Powell are testifying about. I mean, it's September October is almost here. So if not for the pandemic raging on an election just a few months away, we get Washington now transfixed on another bruising Supreme Court nomination battle, and that Yes, Robin. That's going to poison the mood for any sort of cooperation to get more fiscal relief done. And today we saw Fed Chairman Powell on the MIC. Noting that the job market is on. Ly regained about half of the 22 million jobs that were lost just in March and April. So we're in a deep hole. So the political convulsion is adding to all of this because they know Nothing much is probably get done. Tech stocks also rebounded slightly after sliding in recent weeks. They've been doing well it earlier in the year. So what's going on there against all odds? I mean this run since the spring if you think about it, the tech heavy NASDAQ has searched from around 6600 to a high of 12,000. And that was in just months in the teeth of the pandemic, so you're bound to see a correction. Now we're closer to 11,000 in the grand scheme of things. It's not the worst thing. Yeah. How about the oil industry? All this uncertainty, oil prices rising over the summer. More cars did return to the road, but we don't know what's ahead. You know what looking over Britain and we're going to talk about that in a second, but You know they're having their second wave and new restrictions. So talk about the oil and street. If I had told you to start the year that Exxon Mobil, the prodigal child of standard oil would have been booted from the Dow Jones industrial average that so many airplanes would have been mothballed that cars are just sitting idle outside as we all work from home. So right now, the fear is that another leg down in the global economy, you're seeing covert infection rates shoot up in many influential top 10 economies That's going to be get Mohr demand destruction, in the parlance of the energy sector. Yeah, but then how does Europe impact all of this? Rising infections There are you know people are really in shock and the markets are as well and then we see the Prime Minister Boris Johnson in the UK announcing new restrictions today, he said they could last up to six months. Eso what's what, in fact is that in nominal terms, the UK is the world's number six economy, So it has outside's cloud, not just on the U. S. But across Europe. And in developing frontier economies across Subsaharan, Africa, so for that size of economy to visit its deepest recession on record after all GDP there fell by 20% in the second quarter, that's goingto worry the world and a full lock down now to end the year. Versus London's import importance to immigration to transcontinental air and rail travel. Yes, that's going to be felt across the global economy. Okay, just a quick lightning round here we've been talking about TIC tac China is announcing it'll blacklist foreign companies that unfairly treat Chinese companies. Just a few seconds. Thoughts on that. Yeah, And so a company like Cisco, which is the nemesis, for always should be worried. Every multi national.