tv Boom Bust RT June 27, 2017 1:29pm-2:01pm EDT
i'm lindsey francis boom bust broadcasting around the world from here in washington d.c. tonight's end of the road japanese air bag maker to cut off files for bankruptcy protection as it faces billions of dollars in liabilities in relation to over a dozen deaths due to their faulty airbags and coal on the rise after seeing record global lows the heavily polluting fuel appears to be making a comeback thanks to a few countries and the fight for fifteen rages on battles for a higher minimum wage around the world continues and we take a look at the debate here in america does a pay increase really mean a bigger paycheck we take a look at the major testing ground to stand by us starts right now.
prime minister theresa may may have failed at shoring up her conservative party's support in the june eighth snap elections but it turns out she's got a strategy to prop up her minority government she has shored up support from northern ireland's biggest protestant party. and lindsey france is a boom bust broadcasting around the world from here in washington d.c. tonight and of the road japanese air bag maker to cut off files for bankruptcy protection as it faces billions of dollars in liabilities in relation to over a dozen deaths due to their faulty airbags and coal on the rise after seeing record global low. as the heavily polluting fuel appears to be making
a comeback thanks to a few countries and the fight for fifteen rages on battles for a higher minimum wage around the world continues and we take a look at the debate here in america does a pay increase really mean a bigger paycheck we take a look at the major testing ground to stand by you must start right now. prime minister theresa may may have failed at shoring up her conservative party's support in the june eighth snap elections but it turns out she's got a strategy to prop up her minority government she has shored up support from northern ireland's biggest protestant party it comes in the form of one billion
pounds in extra funding over a two year period it will raise pensions annually by these two point five percent and keep universal winter fuel payments for the elderly in the province in place and the deal with the democratic unionist party will run for the life of the current parliament due to end in two thousand and twenty two listen to what arlene foster do you peeved leader has to say about the cash injection r.e.m. in these negotiations how it's being to deliver for all of the people of northern ireland the support measures which we are and. will be to the benefit of all our people they will boost the economy and invest in new infrastructure as well as investing in the future of our health and education sectors. of other measures. in light of this may can now proceed with a bit more confidence that her government can pass a budget along with bracks that legislation as the u.k. embarks on its imminent departure from the european union. and overwhelmed with the
airbag recalls japanese manufacturer to has filed for bankruptcy protection in tokyo and in the united states the airbags made by the company can explode with too much force when deploying in a crash spewing out shrapnel that has killed more than a dozen people and injured at least one hundred eighty it's also created the largest automotive recall in u.s. history affecting forty two million vehicles to cause says it needs the bankruptcy protection to maintain a product's supply and perhaps subsidize car makers for the recall according to to cut a more than seventy percent of the airbags recalled in japan have been replaced only thirty six percent in the u.s. the tokyo stock exchange is stripping the company from trading as of tuesday. well coal is seeing a resurgence in three major economies in the u.s. is leading the pack the dirty fuel had a record decline last year but its recent rise has scientists worried that the
effort to reduce global fossil fuel emissions will be hampered artie's alex for highway which is in toronto with the story alex what is spring the rise of of coal here and abroad. a lot of poles that ship software you know with president donald trump who is talking to both call for a long time. has been pumped up of the states by about nineteen percent over last year but now the point being done but really when you look at the whole equation the u.s. is just a fraction of really the big picture of the world what. b.p. last year coal production dropped by six point five percent but now the associated press says that up to me it's jumped by six percent that's one hundred twenty one million tons of coal being mined now you know when you move these numbers around it seems like you know what maybe it's a little bit less a little bit more how much is the u.s. involved here donald trump and china both to switch their policies around they said they're basically to dig out some more coal for energy but really the biggest culprit here is india even when we saw
a drop last year in the percentage of coal use worldwide india was using more coal than it was the year before and it continues to do so so any way you spin it that means that the major economies yes the u.s. is one of the three but think about the populations of india and of china one point four billion over a beer in china over one billion in india compared to the how many people there are in the u.s. so you see the amount of coal actually being used is that it's a cheap type of fuel and it's a fuel that they're taking advantage of now and as i was for policy shifts in the states that's just a minuscule part of the equation even if donald trump likes to make it sound like a big policy shift well let's talk about environmental obligations not very popular with this presidential administration the u.s. calls on the rise obviously emissions reduction targets are very threatened do you think the u.s. china and india well actually be able to fulfill their existing applications if the trend goes on well we know about the existing obligations when it comes to the states would president troubles or somebody said he wants
a pull out of the paris accord which means that if that does happen there is really no obligation to do anything but like i mentioned the states really in the whole equation is a smaller player even though those three countries put together they consume house of the world's coal and also they produce half of the world's fossil fuel emissions so obviously when it comes to the environmental game big players and of course of the cold game as well now taking a step back and looking at the u.s. . the long term predictions for the united states are that coal usage will drop anyway over the next decade or so simply because the renewable energy industry is growing at such a rapid rate in china also we saw a real push for renewables their target is to reduce the amount of coal or to at least plateau by two through two thousand and thirty some ambitious figures are saying two thousand and twenty now with this new pump up even last year they were closing down coal production plants they were as well cutting down on the amount of
coal produced at each plant and now we're seeing a reversal in that the policies and trying to have changed in that respect so even though by two thousand and thirty it should be able to cap even when you were seeing this rise this year as for india once you get there the real culprit here it's a country that seventy percent of its electricity comes from coal and the demand is just increasing day by day so india is going to be the briley a big player here and they're sticking to the paris of court so if they really stick to their guns maybe they'll be able to make some changes but the way it looks right now coal is a big part of their energy equation that's right thank you so much for coming in on the south while that's joining us from toronto thank you very much thank you. the fight for fifteen minimum wage movement has gained fame across the u.s. over the past five years and the debate over the alleged advantages advantages and
disadvantages of the policy has just reignited it. has more on that for us now a new study out bianca which side does the favor it is in favor of the anti minimum and then i'm on the way to take part because the researchers in this particular research are saying that it is not helping the working class and it's actually hurts them in ways that the other side obviously did not accept. there are lots of questions to parse through and debating the federal minimum wage for starters would an increase really help the lower and middle classes as a result how could that impact the need for social services another one to explore is what kind of effect it could have on business and a new study says that it isn't good research from the university of washington found that jobs in work hours in seattle fell after the city voted to raise the minimum wage and it was the lowest paid workers like food servers and bartenders that were hit the hardest by that on average they made one hundred twenty five dollars per month less the increase wasn't always
a problem in the city though in two thousand and fifteen the minimum was raised from nine dollars and forty seven cents to eleven dollars which the researchers say didn't negatively impact low wage jobs the problem started in two thousand and sixteen when it jumped to thirteen dollars an hour so it's not good news for the goal which is fifteen dollars an hour by twenty twenty one jake a big door one of the study's authors said the goal of this policy was to deliver higher incomes to people who are struggling to make ends meet in the city you've got to watch out because at some point you run the risk of harming the people you set out to help the study comes at a critical time for the minimum wage debate especially for seattle which was the first city to implement a significant change it's also going to make the debate more complicated considering data published last week reached an opposite conclusion research from the university of california berkeley argued that seattle's minimum wage quote raises pay without costing jobs and in a few weeks the minimum wage will increase for large businesses in los angeles and
san francisco and washington d.c. eventually plan to do the same but with the study in mind the possibility of a way to take in additional cities could change. in funding the studies they do where they're getting the numbers but let's get to the point how has the minimum wage hike crowd responding so far to this piece of information we don't have. a lot of information coming out about this right so obviously as you said they're not exactly thrilled about this one study because they have their own saying that it hasn't hurt the economy or hurt the workforce or jobs and so on but they also have a lot of questions i mean this study for one has yet to be peer reviewed it's still in the preliminary stages and it doesn't really explore how the workers that may have been affected by this wage hike increase were able to find other jobs were there other jobs available if so did it take them a long time to find them are they still out of work it doesn't continue to fully explore how it individually impacted people just looking at the large businesses
that have been forced to increase their minimum wage so they're just saying you know let's pump the brakes for a second this is one study that is different than ours but we still have a lot of questions about them so this isn't the be all end all by any means yet it's interesting because this is such a big testing ground for united states very typical for us here to test it one city or one state and then see if it spreads we'll have to see how popular this becomes and the numbers coming out of it yes thank you very much for following this. we're going to head to break now but stick around because when we return we'll take a look at the uptick and telling him banks have had at nestle saw on monday also trading places a sit down with former u.s. attorney commissioner bart chilton to discuss trade between the european union and japan as we go to break up the numbers the closing bell.
economic development is all about numbers really pleased to report this quarter we are one hundred six points. but what do we know about the other figures. when i think about the fact that our c.e.o. mike du made over twenty million dollars last year more than one thousand times the average wal-mart is says he had. with all due respect i have to say i don't think that's right. is that just you know a free market would. people went from pretty simple financial lives pre nine hundred eighty to the point now where people are. just totally submerged in their financial accounts and they're all in debt and what exactly devoid society.
the part of the government tried to do both at nestle maybe. it might be making things worse. by saying this is not work this is lose them goes hopelessly disastrously wrong guys are financial survival. when customers go by you're just playing. well reduce and lower. that's under. but what's good for markets is not good for the global economy. you'll. have a lot of good look at. our own soner closing time losing. more so all good goals are going to be trying to. yahoo.
or be very new. girl is the dog or really we're the one school and the people you're living your character does lego book. italian banks and sleepless european stock straight up on monday for nato bank and bank. are now rescued by the italian government the european central bank deemed the banks failing or about to fail sending them into insolvency procedures and this comes with a possible price tag for italian taxpayers of nineteen billion dollars italy's
benchmark index footsie meb rallied one point five percent to two i'm sorry twenty one thousand one hundred fifty three ninety six and the socks europe six hundred index klein point four percent to end at three hundred eighty nine zero five the second factor in the european stock nestle billionaire activist investor daniel loves third point hedge fund snapped up a one point three percent stake worth three point five billion dollars loeb indicates he wants to cut out the company's stake in l'oreal offering more share buybacks and getting rid of non growth businesses nestle shares jumped four point three percent marking an all time closing high. and in an unusually upbeat annual report the bank for central banks is raising the alarm the bank of international settlements says the danger of complacency in the face of recovered trade and steady growth could lead to risky lending threatening the stability of a global financial system of the global financial system whether world leaders take
heed or at least pay it lip service will be evident as we head into the g twenty summit in hamburg germany which is just two weeks away it's important to note here that after president donald trump withdrew the u.s. from the paris agreement weeks ago leaders anticipate his resistance to working and closer cooperation with foreign nations in tackling restless spending issues at the same time it's understood that german chancellor angela merkel is eager to sign up the united states to the g. twenty its financial stability board. and european union and japan are said to be concluding a historic trade agreement striking the accord would create an alliance equaling roughly a quarter of the global economy on everything from cars to cash even cheese the arrangement would come in stark contrast to the protectionist policies of president donald trump who has used incendiary words about trade agreements and the role of the united states in forums like the north atlantic treaty organization here to weigh in on what it all means for for us anyway former trade commissioner bart
shelton part we've seen agreements. like this in the works for years this specifically and important for both parties particularly for the e.u. in light of bracks that some other challenges facing the euro zone recently how big with this deal actually be monumental lindsay i mean given the troubles not just with breakfast but with greece and maybe even it'll italy it's a big huge deal they've been working on it for years as you say since two thousand and thirteen they've just completed last month a team working session so they're really dealing with it and. trying to get it done their goal was originally by the end of the year but hopefully they'll get it done within the next couple of weeks now japan is a huge trading partner with many countries particularly the euro zone number three after the u.s. and china so get striking a deal with japan would be a big monumental deal it's particularly important for japan we all know that they
produce cars and telecommunications they also do a lot of medical in optical equipment trade with the e.u. and from the e.u. this perspective shipping exporting to japan cars as you know obviously but also a lot of pharmaceuticals and so it would be a good deal for both really something that's been long fought and be a huge matter right so recent history proceeding to sit ministrations shows us that the u.s. has been somewhat of a leader. in seeking the trade agreements that are good for people business is the global environment labor conditions does this administration's approach to international trade things like abandoning the tepee we've talked about that and cooperation in general does that send a larger mission about the u.s. just going it alone across the board i think it does i mean you mentioned the transpacific partnership that was a big deal yes it was really led by the u.s. and it was eleven different nations many in asia including australia singapore
japan vietnam and then in south america to peru cheveley maybe bolivia much for libya and then mexico the u.s. and canada so huge deal and what we're trying to do the u.s. two goals one was to sort of wean the rest of these countries off of china a little bit and have them go once on the u.s. right particularly troublesome now that china is sort of acting like a leader with their built in road initiative the moon but bottom the second reason it would be a good deal is that these trading partners have relied on china for so long that we want to give them some comfort to raise their standards as opposed to lowering their standards so both with labor rights and environmental rights and sustainable development so that's what we were pushing is the united states that's changed a lot in this administration and interestingly the other eleven nations that are
part of the pacific partnership they're going to go it alone they're going to do it without the united states so it's so ironic that we in the u.s. had this pushed it and now we're pulling back they're going forward and my guess is china will step in and try to be involved in this going to fill that vacuum right away got it if they've got any smarts which they do europe last month the president saying germans are bad very bad referring to trade says he wants to negotiate directly with chancellor merkel you actually see that happening right now. it's going to be relations and it's reminded me of h.w. bush rather bad very bad. and he had to have an interpreter the president to come and explain that didn't mean that the german people were bad but interpreter by the way in the form of gary cole and works for the president but that seems to be a theme with this administration you have to have some of his people come up and sort of the proverbial cleanup crew behind the elephant right now that's pointing them at now yes it's a big job but the bottom line is is that i don't see it happening first of all
you've got to be careful what you're asking for when you're criticizing germany i mean he was particularly talking about cars and putting a thirty five percent tariff on cars but guess what they produced four hundred fifty thousand b.m.w.'s they're really not in the part you are going to us well and not only that but he's it seems like he's turning away from that whole logo you know the concept of the german car absolutely here really like those cars coming out of the same thing by the way with with v.w. i mean they produce in chattanooga one hundred fifty thousand of the pacific was being produced there there is two thousand workers there they're going to produce the new big s.u.v.s the largest s.u.v. that has ever had a cold and doubtless and where else are they going to solve that but here you got it well but hopefully they'll sold some in japan too but there are even with the with the b.m.w. by the way they export of all these four hundred fifty thousand cars they produce in south carolina they export seventy percent of those to one hundred forty
countries so before you start getting all down on the very bad german auto expert you might think about how it's going to impact the u.s. and secondly is the deal wouldn't be some to negotiation wouldn't be with germany it's the euro zone remember all together now so it would be a good agreement with the eurozone not just with germany right it's with the super state as some say now where does this leave us with nafta candidate trying to call that the worst trade deal ever. as he does. as late as april he said he was psyched to scrap it lots of pressure from our neighbors north and the south he's now said he'll try to renegotiate ok where does he stand on this now what is nafta stand right now well there get looks like they are going to renegotiate it and it wouldn't start until august t. he the president had to formally notify congress that he was going to read to go shoot it he did that on may eighteenth and so it can't start till somewhere in the
middle of august and both wilbur ross the commerce secretary and robert light hisor of the u.s. trade representative already been doing preliminary things to get their their ducks in a row and look i try to be. as i do a little pollyannish on this there are things that make sense to tweak on nafta i mean this is an agreement that was from you know ninety three didn't go to affected told ninety four originally started with talk about h.w. bush earlier it was really an h.w. bush initiative brian mulroney president salinas of mexico they started it came into into force when president clinton was there so it could be updated i mean the digital world technology agriculture there's lots of things they could do to update nafta renegotiating we'll have to see the mexican say we don't want to go shoot any stink and quotas or tariffs so that's off the table that of office but now we've got threats from from mexico and corn from elk. absolute answer but let's talk
about august i'm a little skeptical as i usually am here august recess it's august people aren't even watch much t.v. let alone washington at that time it seems a very advantageous time to paul this what does it mean for this town aside from the august time line but what does well renegotiate their already close to one hundred eighty lobbyists who have been registered on nafta so you know this town and lives on these sort of cottage industries when they see an issue emerge and that doesn't only include different lobby groups it includes a bunch of companies it even includes some government so the government of mexico actually has a a d.c. lobbyist and even the state of sinaloa which has a lot of products that get important to us and even the province of new brunswick so everybody's getting in on the game. when you talk about what has to be approved in congress treaties like the iran deal that has to be approved by the senate but
free trade agreements have to be approved by both the house and senate so there's a lot of work to do on lobbying things and people are going to be doing it and probably take a little bit of a break in august be brought back i added as going to september negotiate during the congressional recess and then come back and try to hammer something out to help the next seven months on their health but hey good luck to him where does that leave the. so it's being i'm sorry i'm trying to wrap my head around the entire napa conversation what's next on the trade front because we've got so much of this t.p. now after the eurozone going on why should we be looking for in the coming months it's a big question so i try to just go through the list of everything we should be watching out for but what's really at the top of the list so there's a few things but one thing that's not specifically trade but you'll know this what i say at the g. twenty meeting in which we're watching the seventh and eighth meeting in hamburg germany perhaps president trump going to have a hamburger and from french fries you know he'll say something like. it like that
potentially but you know that the g twenty is meeting and there is their theme is shaping an interconnected world and not where he's coming from all right so we'll see how this goes if he sort of has the big foot and says some silly things and has the some of the other g twenty leaders smirking as they did at the nato meeting we'll see about those but then there is the transpacific partnership even though we're not part of it to continue to watch you've got to contend now after we just spoke about right and the other one you've asked me about germany earlier but there was also a trans atlantic trade agreement that had been negotiated for i don't know three four years and that's just sitting around i don't have any hope i'm not going to hold my breath on that but that is the actual vehicle once the present administration gets around to it to trying to foster increased competition and cross border synchronicity on trade with europe but it will be
a little bit before they get to a long hot summer thank you very much part and former u.s. trading commissioner. silver elton john there's a new rocket man in town or more precisely in space over the weekend elon musk's space x. made rocket history with two successful launches and forty eight hours the first rocket launched on friday from bulgaria it carried the country's first telecommunications satellite with it the second took off from vandenberg air force base base in california carrying as well a payload of satellites now must took to twitter of course to talk about the launch going on about the improvements the company will make to future rockets even boasted that he wants to rockets to relaunch on twenty four hour turnaround but up next mars you might pass mosque is still looking to the stars with more than fifty
missions lined up in two thousand. eighteen this along with his usual talk of ferrying humans to mars around two thousand and thirty well that's all for now check out the show on youtube youtube dot com. thanks for watching the next time. i see you know what i'm still at the top. tier of all you know. we need to move to the cloud told him who tony. wants to be. magnificent. some place which is much more food than
saving money saved us from people really you know it's him friendly in my conformance feel welcome in russia. because the food was dusty a very enjoyable place to live very friendly ok told my son. are you. going to be so amazing with me some basic go through the. punch go station also i think they're nice people here we're very glad that i'm here which of those little things will still.
thank. you. but more consequently it. was this regimes. that were in. fact a producer for america's c.n.n. news is apparently caught on camera saying most of the channels rush related coverage is unsubstantiated but the peels to view it's also to come this hour a huge cyber attack hit sperms around the globe with russia and ukraine bearing the brunt of. the latest u.s. threat to use military force against the saying it is unacceptable becomes after the white house claims damascus is preparing to chemical weapons in syria.