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tv   Boom Bust  RT  July 6, 2017 1:29pm-2:01pm EDT

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it is true that the frequency of the song is much higher in the nation's. borders so you know if i were. to lose over two years old you would go over the money usually it's a group and who runs the blood business. i'm one of the friends to boss broadcasting around the world from here in washington d.c. tonight big changes in the air to international airlines that security standards allowing passengers to carry their laptops in a cabin on u.s. down flight also political anxiety of the upcoming meeting between arab states prompts the moodies rating agency to change its outlook and qatar's credit rating also currency rollercoaster there are several possible causes for the changes we're
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seeing including fluctuating oil prices politics and new economic data but is it good or bad news my guest says it all depends on where you live by the must start right now. fasten your seat belts and enjoy your own electronic devices that's what turkish airlines tweeted at passengers aboard its u.s. bound flights the airline carrier along with its competitor emirates has satisfied american security concerns over laptops in airplane cabins it remains unclear how the airlines addressed fear is that terrorists might bypass security with explosives and bedded in their laptops. but in turkey authorities now take
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cross-section images of passengers electronics just before they board airplanes heading to the united states homeland security says this is part of a raising global baseline on aviation security the u.s. laptop and first announced back in march now applies to nonstop u.s. bound flights from international airports in jordan kuwait egypt saudi arabia morocco and cats are saudi arabian airlines has said it hopes to be off the bad list on or around july nineteenth. and troubled italian bank d.c. anna is set to be nationalized as the government in jax thirty two point five million dollars giving it a seventy percent stake the european commission is set to give a yea or nay to address to the rescue plan later this week its approval had been a key sticking point in the rescue of this bank as e.u. rules now try to avoid using taxpayer money to save banks in general but the commission cleared the government capital injection after it was agreed that the
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bank's shareholders and junior creditors would take losses first to minimize the bill for the government it's the third capital injection in recent years for italy's third largest bank as it struggles to recover from poor management and a heap of bad loans that compounded during italy's long economic crisis. it's not been going so well for qatar weeks after getting into a diplomatic spat with its fellow gulf nations the situation has only gotten worse on wednesday. he joins me now in the studio for more on this what kind of impact is this dispute having today well first initially it hurt state finances pretty badly as we know but now qatar's credit rating has actually taken a hit which is not good news for them back in june qatar was completely cut off from a group of four arab nations over allegations of terrorism financing while qatar
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has maintained its innocence it hasn't been able to maintain business as usual as usual on wednesday moody's changed the outlook on the country's credit rating from stable to negative in a statement the agency wrote the likelihood of a prolonged period of uncertainty extending into two thousand and eighteen has increased and a quick resolution of the dispute is unlikely over the next few months which carries the risk that qatar's sovereign credit fundamentals could be negatively affected the statement raised concerns over the impact the dispute could have over trade and how cutting off travel could affect the consulting and tourism industries and as a result that could turn away foreign investment and hurt the banking system qatar learned of this right around the time the government issued a response to the demands from bahrain saudi arabia egypt and the u.a.e. during a press conference with his german counterpart qatar's foreign minister urged against a boycott. this. yesterday we presented this reply which was prepared in
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advance in accordance with the previous schedule to the emir of kuwait the reply came in alignment with the general initiative to protect sovereignty and respect it and in disagreement with the interference in any state's internal affairs in accordance with international laws. we cannot talk about this in detail because it is now in the hands of the brother state of kuwait and only they are free to speak about it. well right now it remains unclear what's included in the response but we do know how qatar feels about some of the demands like closing al-jazeera shutting down turkish military bases and paying restitution. over movies now what would have to happen for qatar to improve its credit outlook well first of all they would have to mend this diplomatic rift happening within the region and number one just for starters you know ease into it but one thing moody's also pointed out was that you
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know they suggested that qatar become a little more transparent about the assets that the government holds so they could avoid another situation like this in the future but if they don't fix it and soon you know they don't have moody's is not saying i would take your time and hope to work it out they're saying fix it now or risk more hurt or more damage. it's not going to be good for them if they don't fix it. there's no sign at the qatari government not wanting to end this feud it looks like they do want to move forward they don't want to keep the bad blood but we're not really sure how much there is for compromise you know will think you're in big demand. shutting down turkish military bases and then paying restitution and it was a huge ten other very specific item and so those are just some of them but again we don't know exactly what was in their response so once we learn what they did say then we'll have more of an idea of how soon they will be able to come to
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a compromise because there is no indication that qatar is just going to say fine when i read every single one of these demands i will move forward what about iran's response to the demand to cut ties so they have kept pretty quiet simply to be that smart right now while they don't have nearly as much to lose as qatar you know they don't exactly have great diplomatic relations with the countries attacking qatar right now they do have a good relationship a good relationship with qatar a share a big natural gas. and they enjoy diplomatic relations but beyond that it's not going to you know mean anything too big right i'm going forward bigger for qatar definitely definitely thank you so much from just down the street. fluctuating oil prices politics and new economic data have a number of currencies on a bit of a roller coaster ride and lined up next to the greenback from canada to europe and asia currencies are on the move and depending where he lives that can be good news or very bad names are sent out some highly veges enter on with the latest for us
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alex let's start in your neck of the way here many projects arise in the canadian dollar but a number of factors come into play that could very possibly change everything what can you tell us i would say you know as a matter of perspective on what side of business you're on if you're a manufacturer the dollar earth canadian dollar dropping is a great thing if you're a tourist well you want to be a little bit stronger when you're going to the u.s. right now the canadian dollar sits at seventy cents or seventy seven cents i should say u.s. hopes are that will bump up to about eighty cents sooner than later but there are a couple of hurdles that stand in the way of that one is interest rates so this actually might help out the canadian dollar on july the twelfth which is next wednesday the bank of canada will be meeting and they're talking about pumping up the interest rate in this country from point five percent up to something some people are saying up to one percent possibly point five percent has been the steady rate since two thousand and fifteen and this will be the first time that we see a bump in the rate that can help the dollar in many ways the next big factor is and what you had analysts there up in arms yesterday thinking you know the canadian
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dollar looks like it's going to jump to eighty cents and in no time is oil prices so if you look at the oil prices the crude benchmark in the u.s. you know oprah's been drifting around forty five for a long time they were up to forty seven dollars twenty five cents us yesterday so analysts were looking and saying though this could really pump up the canadian dollar that drop by three percent today so that means if that was the market you were betting on might not go down that way and of course there's a couple of other factors which in. and of course manufacturing which include maize and manufacturing numbers as well as a job numbers in this country both of those should pop out this week thursday and friday so we'll know exactly where the canadian dollar says but like i said some people will be happy some people be sad no matter which way the canadian dollar goes of course. across the pond now big factor we're looking at the pound and the garrulous the latest on that i want to bring up a chart right away this is really really interesting actually if you look at the euro itself look at this this is the spread of
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a gap between the german and italian sovereign bond yield now if you look at this the difference between the euro zone's bull stable financial assets of the most fragile system a system which would be italy compared to germany now when this comes when these when this market is actually close together when when these the disparity actually kind of moves closer then you can see that when this actually that factor that's one line and you put that next to the euro itself that shows you stability actually in europe so means that the european central bank is actually doing a good job as for the pound the pound is actually very surprising you know it's a very resilient we saw a good just hammered brags that happened and you know what down to a thirty one year low now i mean the pound is still lower than what the pound was in its heyday but thinking of the construction of birds coming out of the u.k. which aren't that great looking at bragg's that itself and looking at what happened with the last election it's kind of amazing how resilient the pound actually is so
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just like the canadian dollar to the u.s. dollar we're looking at about seventy seven pence us forever for every one u.s. dollar which means you know there are still some strength there and predictions are all over the place that it can get stronger and might drop of fifteen percent both ways actually so you know these are things that you can't really have too much credit to but we know that the bank of england they're saying that what they'd like to see is a little bit of investment and that would make the pound stronger anyway the. you look at it let's head over to the powerhouse shelf and around china we got to talk about that's what's going on over there trying to do interesting one because trying to really can just it's something you want to the american dollar and it i mean the people ate it so if you look at the chinese banks the past couple of months you want has gone up about two percent since the beginning of this year in value when you were compared to the u.s. dollar but chinese banks have been selling u.s. dollars and that's how the way that they keep pumping up their old currency so that's what has happened you know there's a lot of complaints about that in asia again you know it's one of those things are
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trying to work the way trying to work it's still a strong economy but this sort of currency manipulation is something that a lot of people would like to see go away and yeah clearing the guy down the street in the white house thank you so much for that alex we are going to come at us from toronto thank you. time now for a quick break but stick around when we get back a massive crypto currency exchange in south korea is hacked and my guest former u.s. trade commissioner bark joins me to discuss the g. twenty summit which is set to kick off in hamburg as we go to break here the numbers the closing bell.
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there's a saying. there that you know that there. who went through all the countries don't let's ideas that right just go to us companies he said to please give them everything they do to bust. this country because this is what we don't understand how we are in such contracts . that are sent to the ones at the same time. noticing.
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the. similar. i do not. need one but i get back to the us if you feel. the minutes of not that i got leave with the phone about the food with the plane. would come back to the place story you have to see. at least. the income inequality wage stagnation gerrymandering of political districts polarization you know the lack of effectiveness in congress there are these are well documented trends going back decades and now they're really acute and manifest to the point where people describe the system is being seized with a kind of paralysis. i see and i want to see you come out still at the south. who serve all.
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we need to fix a lot of holes yet completed monies. plus the. magnificent. some place from which to some upward food i think they may save us from people really nice i'm trendy and i might the foreigners feel welcome in russia it's a very interesting very good movie because the food was does. i'm a very enjoyable place to live very friendly play both russia and i said but some. very recent one looter to be so may suit some basic three. zero zero zero zero zero zero zero zero zero zero zero zero zero zero zero zero zero zero zero we're very glad that the players every year which are there still.
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valvo is kissing goodbye missional car engines by twenty nineteen the company says it will be fully converted to electric motors on all its models this makes it the first major automaker to forgo traditional engines that rely exclusively on international combustion c.e.o. hawken samuelson says the shift to electronic motors will strengthen the brand image as a volvo aims to institute climate neutral manufacturing operations by two thousand and twenty five the swedish company which has been own by chinese firm gillies since two thousand and ten will launch five fully electric cars between two thousand one thousand and two thousand and twenty one three will be volvo models and two from pole star volvo's performance car arm and also plans to supplement those with a range of gasoline and diesel plug in hybrid and mild hybrid options its sales target is one million cars either fully electric or hybrid on the roads by two thousand and twenty five with long range models able to travel three hundred ten miles on a single charge using current technology or predictably the company has put out
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a casting call for contributors to improve those batteries stand by for a large scale partnership announcement in the near future. a south korean bitcoin exchange has a bill to pay it is set to compensate its customers after a hack drained and unknown number of accounts and compromised the data on more than thirty thousand according to you and happening while the source is unknown the breach appears to have originated through an employee's computer according to a statement by. personal information such as the mobile phone numbers and email addresses of some users were leaked customers were particularly at risk because of the disposable passwords used in electronic financial transactions according to coin desk big coin and a theory m and other crypto currency is are experiencing another wild surge in the face of this big coin is worth two thousand five hundred seventy eight dollars per coin and experian trades for around two hundred sixty three dollars. well the group
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of twenty meeting takes place on friday and saturday in hamburg germany thousands of protesters as you might guess have already been at it since last weekend there a protest on wednesday featured hundreds of people painted as clay figures meant to represent a society that has lost its belief in solidarity all of this is taking place as new leaders around the world are in the midst of new power struggles so how important is the g twenty meeting will we see some of the public spats we witnessed at the g seven meeting in may here to discuss all of this is former u.s. trade commissioner bart chilton dramatic pictures already coming out of hamburg obviously we're waiting for some drama come out of the meeting set the stage for us how important is this meeting for the g twenty in general and we're going to get rid of those zombies for sure those are security look at dude's know what's a really important deal i mean the g. twenty represents two thirds of the population eighty five percent of the global production and eighty percent of the global trade so it's
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a huge deal but interestingly it's only been around leaders level presidential prime minister level since two thousand. in eight it began in one thousand nine hundred nine but it was only ministerial and you may recall it started in seattle so i was there yet were knowledge i was i was working the press center my friends were protesting we had good arguments about that i was there that yeah well you know so it's been around a while but really only since the financial collapse was it something that the leaders attended and did some good things that in particular in financial regulation i know a lot about back in the day in the back in a. pittsburgh summit where they said all swaps all these dark markets and you could be regulated and they got on the horse and they rode and people like me tried to put armor harmonize rules in place so they've done a lot of good over the years what about the protests which officials are worried will turn violent as we're told that example on seattle back in ninety nine very
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affected for diverting attention. what do you think officials are bracing for extra extra violence sherawat i mean there's got to be west president this on the ground yeah i mean the bad old seattle was the first one but even at the one i mentioned in pittsburgh which was relatively calm there was a time when the police to shut your grass your guests into the crowds of students some people were just observe but this is really seems to be a different deal this year last year it was in a city in china and they gave everybody a week's holiday before the g. twenty met but hamburg the second largest city in germany is really sort of a left leaning city it's the home of on jewel of merkel merkel the chancellor of course and so there are up to maybe a hundred thousand protesters thirty different groups have sought permits one of them with the name is welcome to hell so to think that it might not be
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a violent protest would be underestimating what the gas council could be interestingly the germans have a u.s. predator drones those drones that look like little. seven four you start with yeah right i assume we don't have any missiles on it but the drones will be there at least taking a look around so everybody is on guard will be at least fifteen thousand police officers hopefully know by all and to the extent that it hurts anybody right lot of bilateral meetings in the g. twenty official schedule obviously of all a lot of sideline talks are going to come out of this meeting tomorrow night between president trump mark all two seem to have gotten off to a very rocky start but are we first see here well they did you remember the whole show handshake circumstance where you know he sort of refused to shake her hand and he had she shook her hand when she arrived at the white house but then when in a photo op of the photo of her saying shake her head and shake her hand she said you want to shake hands and he just looked down and didn't shake hands so that was
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a big kerfuffle and then the nato thing where he said that they didn't contribute enough to nato and then he said the germans were very bad very very bad and had to come out later and say well he didn't mean you were bad people he meant you were bad on trade right and since he's talked about a thirty five percent increase on auto tariffs but recently and this was really just the breaking news is it looks like the administration is on the verge of doing something on steel steel quotas now the biggest steel producer in the in the country is in the world is china germany still a big deal producer so i think this is going to continue to be sort of a rock when you want to act like germany's taking part of our market i mean really you know they provide at least one hundred thousand jobs the german automakers in the in the u.s. and we've talked before about the spartans birds and the chattanooga's that have new vehicles from ramadi so anyway we'll have to see but if they're off to
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a rocky start i hope it gets better but i'm not to hold my breath yeah seems like with the tech and agreement china speaking of china that's not going to be only bilateral meeting president she's going to meet with chancellor. markel and others one of which is president trump what are we bracing ourselves for there well what he's i mean president xi is sort of stepped into the circumstance here where he's taking on some of what the u.s. did i mean they are now a leader on climate change they are trying to take over the vacuum left when president trump pulled out of the trance we're in a partnership agreement yes absolutely yes absolutely start thank you ana t.p. the civic partnership the right present trump pulled out of and then now china is saying hey you other eleven countries yeah maybe we can be involved in this and president xi who's will presumably be reconfirmed for another president's you know their five year term at the end of the year at the chinese congress but he's also
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met with president putin and other leaders they've got this belt and road initiative which is a trade in issues out there they're really new players on the global stage and when you think about what happens at these g. twenty meetings where a lot of it's about relationships and building on trade deals accept they're doing what the u.s. typically has done and given what we've seen today with president trump he's pulling back into this you know economic nationalism or isolationism as it were and maybe not the best thing in the long term interests of the country why would anyone not fill that vacuum i don't know and that's a typical move of his is kind of concerning for a lot of us what about that bilateral meeting coming up between president putin and trump oh big deal yeah i mean you know ability of all the meaning of probably the most anticipated one and you know i'm not sure that will be an easy conversation the president has said back when he was a campaign reset look i'd like to i'd love to have better relations with russia but
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given everything that's going on i assume the topics will be even though there's no stated agenda you know it's a formal meeting it's not one of these meet in the hall off to the side so you don't have the little flags on the task. they'll be all still going to be staffed up at everything so it'll be fairly adult formal but there's not an agenda but you assume that things like sanctions due to crimea election tampering and then syria will probably cavalierly and syria is such a goofy thing because you know we're both nations are working to stop terrorism and isis but the russians are working with the syrian government and we're not we want the russians are merely a method to the madness we are going to fundamentally disagree forever on how to approach a situation where it and got to come together but what's interesting is there is no agenda but we all know what's going to be on it what's going to be thrown out on the table and they heard that yet west interesting thing on that. is you know president trump has said that president putin is a much nicer guy than he is and really since he's been president he's sought out to
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prove it he was just waiting to say that he wants to say that he wants to come out like all right anything of substance coming out of these overall meetings i tend to wait for the sideline talks. what do you what do you think of the overall meeting just a bunch of handshakes and smiles or what can we really grab on to here well usually what comes out of these things is a joint statement called a communique and that's where everybody agrees but the major things on the agenda are climate change free trade immigration and that friend had and it's not the things the president trope a sort of you know that's not his sweet spot with the rest of the global leaders right so he could sort of veto any joint communiqué. you remember when the president left for saudi arabia i mean he started with getting out of there was a whole election tampering investigation and it was the beginning of that trip when he was in saudi arabia and israel i think that and his semi state of the union
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speech or where he appeared most presidential it was sort of a good thing that he got out and he was you know just wasn't right so i hope that that occurs again but this is a dicier deal because of the that's why you think he'll help suckered in more help you know you would hope you would hope but you never know so i think just avoiding any big missteps where he's not the weirdo the guy on the outside like when you remember that if they do outside you push the iraqi president well david i think i mean it's a crazy circumstance yet so what's this hope from my perspective i just hope that he doesn't do anything embarrassing that he's not a weirdo and that we can come to some agreement that we actually foster cooperation with countries that we're going to deal with have to deal with. apologizing even trips that are probably coming their of us bring you live pictures from the center of hamburg at the moment it's on the eve of the g.
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twenty summit is to take place then as you may have seen in your many screen over the last few minutes it has been place we're expecting thousands of protesters out on the. streets tonight some of which they believed would be violent protesters to and it looks like the police now out in force you can see using water cannon on many of the protesters that are there looking at the pictures really did appear that some of them were trying to cross a barricade and that's when police decided to use water cannon to unclear i haven't seen while here we see running clashes now two with police and protesters live pictures. we can say that a gas is being used and. police are charging those protesters that had been in an area presumably where police didn't want them to say visa latest scenes from the center of hamburg on the eve of the g twenty summit not entirely unexpected it has to be said. police had anticipated it could be violent clashes and obviously
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pockets of violence have occurred now speaking to our correspondent just a narrative ago he said that at the time he was speaking to us that the atmosphere was almost like a music festival but at these events things can turn very quickly in the pace that what has happened now. so this is on leave is we're saying on the eve of the g twenty summit which is taking place in hamburg all the world leaders will be there heavily anticipated that meeting between putin and trump also but at the moment the focus is on what's happening in hamburg where these live pictures are coming from showing that demonstrators have clashed with police not entirely unexpected. on the roof of this.
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i need to close the pictures now that we've seen of police trying to push back the demonstrates is. as we said most the latest already there they say this is gathering the facts angle merkel has already met with donald trump bilateral talks . perhaps as we said the most anticipated meeting is this meeting between putin and trump or. the two presidents expect to discuss cooperation in syria and the conflict in ukraine and also issues of north korea but for the moment it appears the headlines that we received over the demonstrations of on in demonstrations have happened on the eve of the summit these are live pictures from hamburg. i'll be tossing correspondents all throughout the evening peter oliver he's covering events for us they're seeing the sun shining but in some parts think with take gas at
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a pace and water drenched the streets because just minutes ago i was a can was used to push back some of the demonstrates it's. i place things then turning ugly in the center of hamburg tonight as we were saying not entirely unexpected. as police had anticipated as a people would demonstrate this evening factor some of them appeared on art saying today anticapitalist explaining why they were turning out in the streets the police had faded and it pays a space of country that it would be violent clashes pockets of which we can say now all day we don't know how extensive these clashes have been as you saw there many people involved also police taking a chance is heavily arms and fortified with water can and you can say see that.

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