tv Boom Bust RT March 5, 2019 1:30am-1:59am EST
it's a big a weekend this is boom bust broadcasting it round the world and covering the world of business and finance and the impact upon all of us i'm bart chilton in the belly of the beast washington d.c. we're so glad and honored that you're on board we're going to make it worth your while coming up today is another big day of super interesting huawei news and this time u.s. actions on wall way could make it hard to rural and lower income americans who figure and u.s. china trade continues to percolate some say it has been brought to a boil over a wild way but new reports suggest that a deal on trade which comes peter schiff the c.e.o. of your pacific capital and conservative commentator stephen all join us to discuss and later i told you about that twenty nine thousand hong kong block change
conference i did make the trip but boom bust is on the scene friendship for reports on a number thirteen chinese economy that will surprise most of you plus i'm told i'm told he has a drone i love drone stories all that directly ahead but first let's hit the headlines let's go. and international legal shootout over the future of the internet leads our global report today as chinese tech firms walk away as i mentioned and the chinese state prepared to push back on united states and canada in court this time leading the sudden legal pile up while way is reportedly planning to file suit against united states over a ban on use of weiwei technology by the federal government according to report in the new york times u.s. officials and acted the policy over stated concerns about the security of wall way components and the company's ties to the chinese government but while way says that policy amounts to a so-called bill of attainder effectively depriving the company of rights without a trial. on another front while ways jail chief financial officer of man one jew
held in canada pending an extradition request from the u.s. has filed a civil suit against cain eighty and authorities over her treatment ms meng's lawyer claimed she was subject to unlawful detention questioning and search of her luggage meanwhile in china authorities have charged to detain canadians with spying in a case that many suspect was filed in retaliation over the arrest of ms may we get the latest on that and we do that right now are she's out of a hell of it joins us from toronto with the latest hey alex good to see you let's start with china canada relations we know that canada is proceeding with that extradition of while way executive ms mang to the u.s. and china seems to be fighting back what's the latest on that alex. call it for tat or it could be something a little bit more serious than that let's be frank at the very beginning with us this whole extradition thing with meg when jogo of being sent to the us this and
with us this whole extradition thing with meg when jogo of being sent to the us this could take forever when i say forever i actually mean years not the real forever and you know we break it down this is one of those procedures that it's not necessarily going to happen especially when you look at the u.s. and china right now people are talking about within the next few weeks there might be a trade deal and if that goes down well poof everything might disappear except for the egg that's in canada's face because of this arrest that was made in vancouver on behalf of the u.s. as it stated still may go on joe right now she's suing canada is she saying what's going on here is just not correct to c.b.s. say which is canada border security agency as well as we canadians government that it's all one part and parcel she saying that she's been mistreated and this is just not correct and this is all part of the wall way maneuvering forward you know they stepped back a little bit and now they're attacking back china comes into play whenever you talk wall way and here's the tip for tat we're talking about michael called break it was
arrest that same time the end of december two thousand and eighteen or so the beginning i should say of december they were arrested and now trying to say you know what these guys are spies that's what work using them of one guy was helping the other guy out so you can see china's rhetoric is building up as candid as rhetoric builds up that we're actually going to send this person to the states but all in all when that kind of the day if the u.s. and china deal goes through i wouldn't be surprised if hoof this just disappears very interesting but you know alex i mean so that said for tat now is you're talking about canada and china and how much do you think this might be directly related directly related to the china u.s. trade negotiations meanwhile way is being. used as a chip by the the u.s. and that company isn't having it i mean what can you tell us about that main one shows being use of the chip because she's a part of always she's the v.p. of that company one of the top exacts her dad is the guy who founded the company
biggest tech giant on the face of this planet so the next step up wall way that's the bigger chip is the whole company and that's what we're seeing now with was always reaction in the states they're taking the america to court is probably could be to texas to us district court their headquarters in the states is in texas and they're saying listen you're accusing us of spying you want to stop our five g. technology from being spread around the world the states are actively going out and telling other countries you should not be using while we technology prove it we want to know why or where we're spying where we doing this new need to prove it and that's what you said off the top it's that bill of attainder when you look at that what we're asking about is a person or group for the you're punishing them without a trial and that's what while we say is says it's going down so this is what we're expecting if this keeps moving forward for a while way to push an action in this direction and i think they do have a point prove it then you can see that you don't need user technology not just making allegations that are out there without anything that's in stone you know
you're so right alex i mean that day i am proud american is like to say but boy i got to side with the chinese a little bit here i mean we talk about how the word democracy can as a democracy what you're holding this executive without you know given the due diligence in the proper things seems a sketchy to me are to correspondent alex male a bit thanks alex thank you. and continuing with weiwei here's a troubling circumstance americans living in remote and low income areas could end up paying journalist molly barrows contributor to america of lawyers is here now to explain. thank you for being with us i mean explain how sort of the rural and really also some lower income areas those americans might be affected by this move . yes absolutely it seems so many of these political tit for tat stories that we do whether it's the government shutdown or any other number of issues it seems like
it's the low income people the ones that are that the wage earners going from paycheck to paycheck that are hit by some of these decisions and this is no different so the top administration and congress as we've talked about are taking a number of steps designed to hinder the u.s. operations of the chinese tech companies hallway and over surveillance and security concerns and their ties to the chinese government as you said well as a result of that the f.c.c. is considering a rule that would bar carriers that buy equipment or services from those two companies from using what's called the universal service fund it's a financial well that rule carriers can dip into to help with expansion and they often rely on it because they serve customers in those remote in low income areas while industry experts say rule telecommunications carriers relying on the u s f could suffer under this rule particularly if they are required to retire existing less expensive equipment that they bought from huawei it's an important issue regardless of where you fall over the security concerns because rule areas tend to
be more expensive to serve and many americans will some anyway who live there they don't have access to fast or affordable internet access are so it is a shame that they've been kind of caught in the situation you're so right and i you know we talk a lot of times in the states this may be true in other parts of the world for our viewers but i mean in the states you talk about the big cities you don't new york and l.a. and new this whole middle part of the country and outside to some of the big cities chicago st louis to i mean a lot of those folks they don't have they don't have five g. they don't have four g. they got no g. they've got nothing going for them right and it's crazy it's driving the home prices down they can't do businesses so this could be a real problem so molly what are the attorneys for was always saying about the rule . well it was a great report a little bit earlier when alex was talking about some of the legal ramifications but among the other complaints they're talking about these technology companies say that excluding them from using the u.s.
for excluding their carriers and buy from them from using that fund would lead these providers to forfeit those subsidies if they're forced to replace their network and consumers are ultimately going to be the ones who end up paying higher cost so attorneys for a way say if the company is allowed to compete freely that's going to be a huge difference that's going to yield a savings of at least twenty billion and building us mobile infrastructure from two thousand and seventeen through next year and the company charge that the f.c.c. rule goes beyond the authority of that independent agency because evaluating national security concerns and supposed to be part of their universal service funds mission so huawei says this prohibition is on government loan or grant programs and that the u.s. subsidy is should not be included and even if it was their quote is if it would it would be arbitrary and capricious for the commission to rely upon it as a basis for its proposed rule banning expenditure of any u.s. support funds on equipment services manufactured by specified companies so the f.c.c. is now reviewing this rule will see what they decide you're right it's probably
tied to a great extent of what happens in the national bigger picture with the federal government's relationship with china but let's certainly hope that as much as our country relies on advancement in technology people in rule areas need it to they need fast internet service they need good cell phone carriers they need good coverage and let's hope they don't get caught in the middle of this political tit for tat part and you know molly even the wall was just really one percent of that service in rural america it's an important service if that your service and as you say it maybe impact the least fortunate among us we always love having molly barrows contributor america's lawyer thank you ali thanks bart. and turning to africa algerian protesters are staying in the streets or staying in the streets to demand that their long serving president leave office at the scheduled end of his term the embattled president to get it right dell is these beautifully has held office since one thousand nine hundred ninety nine and he
recently celebrated his eighty second birthday happy birthday the president is rumored to be in poor health since a stroke in two thousand and thirteen and power seemed to be held by those around the ailing leader protested flared since late february over chronic corruption and related economic doldrums while those around the president scramble to keep him in office after an election is scheduled for april over the weekend the president where those around him offer an attempted concession to the protesters saying that if elected mr beautifully go would not serve his full term protesters clearly indicated that it's not enough staying in the streets sunday night and into monday demanding that mr beautifully because presidency come to an end. and there are new developments in the aftermath of that deadly dam collapse operated by brazilian mining company valet we've told you about the book for the company's chief executive and several others have resigned after prosecutors recommended they bake a their positions the company's director for base metals has become interim c.e.o.
that a parting c.e.o. fabio schwartzman insisted in a statement that he and the company have been mining waste in the state of meanest jarrett's collapsed over a month ago killed hundreds it was the second deadly accident at a ballet mine in four years. and time now for a quick break but stay with us because one return to china trade continues to percolate but is it at a boiling point peter schiff the c.e.o. of euro pacific capital and conservative commentator steve ball join us plus our team brunch abor reports in an emerging chinese economy. that will surprise you and as i noted at the top of the show he may have a drone as we go to break here the numbers are closing bell will be back in a while.
so what we've got to do is identify the threats that we have it's crazy. let it be an arms race. spearing dramatic developments only really. i don't see how that strategy will be successful very critical time to sit down and talk. this is a sticker from a water bottle phone in the stomach of a fish the brand is part of the coca-cola company which sells millions of bottles of soda every day the idea was that let's tell consumers there are the bad ones there the litter bugs are throwing this away industry should be blamed for all of this waste to company has long promised to reuse the plastic.
million pounds the partnership seems to have freight over intellectual property issues and related distribution of profits rolls royce c.e.o. warren east told the financial times quote it's up to the turkish government if they don't want to work with rolls royce on another front turkey is having more success in erecting defense measures with the reported purchase of these so-called s. four hundred air defense technology from russia for a price of two point five billion dollars the filling plans first announced in september of two thousand and seventeen nato officials have expressed concerns about member turkey's purchase of a quit that is not in iraq or bowl with other nato members and built by a current at the seri. and there's good news for labor on two sides of our world today in germany public sector workers have won significant pay raises after a days of low level work action the d. b. b. and verde unions announced they had collectively bargained for an eight percent pay
raise phased in over thirty three months for three point three million employees they represent who work in a wide variety of positions including day care law enforcement and other public services health care and child care workers will receive slightly higher raises under the deal approved by unions and the government on saturday night in the united states the teachers' strike in oakland california we told you about has ended in victory for teachers and students three thousand striking educators on sunday approved a new contract that delivered on their demands for an eleven percent pay increase a one time three percent bonus and improving the ratio of counselors and other supports. death to students. and turning back to international trade in the law united states is returning to the world trade organization with a major response to critics of the trumpet ministrations tariffs the office of the u.s. trade representative robert white hisor has drafted a report to be released on friday in geneva that pushes back hard on arguments that the trump tariffs are incompatible with w t o rules the u.s. t.r.s.
office wrote quote the united states remains an independent nation and our trade policy will not be made here not in geneva we will not been not allowed to appellate body and distribute settlement system to force the united states into a straight jacket with obligations to which we never agreed. and us china trade continues to percolate some say to a boil with all that while we knew as we spoke about earlier but news reports suggest a deal could come soon on trade hitter discusses the c.e.o. of your pacific capital peter schiff and servant of commentator steve malzberg and welcome gentlemen it's always great to have both of you on the program a peter i want to start with you we've seen a lot of back and forth and sort of these shuttle negotiations this year we've spoken with you about it before peter but as we've sort of look at this getting to the underlying issue of state sponsored. competition with u.s. companies without a country to an intellectual property are pretty tough nuts to crack do you think they can do it much less by the end of the month peter. well i don't think we're
going to have a substantive deal that gets to the root cause of that i think that there's going to be a deal i've been saying that since the beginning i think that trump can't afford not to have a deal so there's going to be one but it's not going to turn around america's massive trade deficit with china because you know donald trump pretends that the reason we have these deficits is because of incompetent trade deals negotiated by his predecessors and since he's a great deal maker he's going to make a much better deal and now we're going to suddenly see a big improvement in our trade balance that the problem is we're not competitive in manufacturing we have an enormous deficit in goods particularly with china and there's no deal that's going to solve that we have to get to the root cause of our problems which is excess regulation excess taxation too much government that has undermined our competitiveness in manufacturing which is something we used to dominate decades ago before government and labor union screwed it all up for us so
steve let me ask you to follow up on that a little bit a little different than i what it was going to ask you about so peter talked about increase regulations former regulator here so i take a little bit of a bridge but i get yes because government could be a pain but i mean think about some of the crap that we get from china in the u.s. you know dog food that's tainted with stuff products are unsafe for kids i mean and i'm not i don't put words into peter's mouth but do you agree that you know regulation is part of the problem here with manufacturing i get what peter's saying about we may not bring back manufacturing to us but you think it's because the regulations steve. that's a regulation plays a big part and i think i you know it all fairness to peter i do think and in fairness to donald trump one of the first things he did was start reversing many of the policies put into place unilaterally by the the obama administration making it easier for businesses and for manufacturing so i think trump has been proactive in that regard and manufacturing has to an extent and peter knows the numbers
a lot better than i do increase since i don't trump as has taken over we see you know a jobs numbers go up and up and up every month in the unemployment report so i think donald trump is well aware of that and look that. has played a big part in these talks and he set it up for the campaign remember part of his china every other word out of his mouth which china china china and what has he done since he's been president he put it tariffs he put in deadlines the talks have been going on and now they're probably get a call one eight in a in a summit with the two presidents at the end of the month. you said that you know the president talks about how everybody always everybody else's problem right everybody else was a crappy negotiator he's the best negotiator didn't work so well in hanoi last week with north korea but let me ask you peter there's been some reporting that other nations are sort of feeling that if the u.s. china deal does go through that they worry about the impact of being left out of
japan for example once a bilateral deal with the u.s. so what do you think peter. now i mean i don't like a lot of other countries have trade surpluses with china i don't think anybody's going to be left out of anything again i think this is all cosmetics and it wasn't obama that caused our trade deficits i mean we had tremendous trade deficits before obama became president we had you know we finally took out the records that we said under george bush for goods deficits under under donald trump we just had to worst i've trade deficit ever in merchandise under tropp so trade deficits are now bigger than they were under obama and so we haven't made any significant progress and the more we want to try to skate mamma and so we haven't made any significant progress and the more we want to try to scapegoated on bad deals the less we're going to actually pay attention to the real cause these are self-inflicted wounds that we're suffering from it's not the chinese doing it to us we did this to ourselves and
it's going to get a lot worse if the democrats take over in twenty twenty and try to you know implement any portion of that green new deal or a lot of the laundry did list of socialism programs that the democrats are itching to pull the trigger on you've never heard this green new deal on this show that's the first time because it's such a crock and look i'm a progressive guy and i like all sorts of green things were green boom bust here but geez louise i mean god this thing's albatross around the democrats' neck they should have never introduced it let me ask you this steve. you know he the president president trump could he considers himself you know the dick the deal maker in chief right the d. i see and he wants to be the guy at the end to come in and strike the deal that didn't work out in north korea so even though he seems to have been given his negotiator some leeway here with the china negotiations do you think you'll be able to seal a deal with president g.
jumping at the end of the day. you know and it's peter said trump was well aware he said over and over and over again that it's our own fault for where we are with these trade deficits absolutely agreed yeah i do think he will be able to now he said interestingly enough after the summit the failed summit in vietnam he said i may have to walk away from the china deal now there was some fear that he would find out that maybe china played a negative part in helping to have this summit fail because they pulled the strings on north korea but that hasn't come to fruition as far as anybody knows yeah i think he needs this as peter properly alluded to i don't think he'll take a terrible deal but i think he will take a deal and have a big fanfare later this month that mar a lago i think that's where we're headed if you get a good deal does steve that does include all those things like in or like school property we spoke about earlier. the first one to give him a big round of applause steve malzberg and peter schiff what a fun discussion thank you both guys appreciate it thank you for here.
and we now go to hong kong where the economy has really been on a roll i mean people have heard about it for years right but but now there is an unexpected upstart artie's branch of bor has an exciting in an unusual economic move which has been made by a neighboring city the city of shien's zen and i always love stories about drones i'm told brant as drones. in two thousand and eighty in the chinese city of shenzhen in the ground dung province has seen its economy surpassed that of their southern neighbor hong kong for the first time ever last year hong kong is economy grew by just three percent with a two point eight five trillion hong kong dollar gross domestic product walsh engines g.d.p. grew by seven point six percent rising by two point four two trillion hong kong dollars while hong kong has long been a free wheeling capitalistic society its northern neighbor has not just forty years ago the chinese city had a population of twenty thousand and offer little in the way of in this. or
agriculture mostly due to beijing's concern that they would be influenced by the state of capitalism here in hong kong certain that they would be influenced by the state of capitalism here in hong kong today the city has a population of over twelve million people and is a center for technology and manufacturing pug's finance chief paul chan mopo recently said the slogan growth in hong kong is due to the ongoing trade disputes between the united states and china hong kong has struggled to keep up with the growth of the chinese city mostly due to their reliance on more traditional industry seventy percent of the hong kong economy relies on finance and real estate while seventy percent of the shenzhen economy is supported by manufacturing and technology you may not know about all of the tech giants that call shenzhen home but they are certainly starting to make an impact in the west shenzhen base while way is one of the largest mobile phone makers in the world the company has been in the news recently due to their c.f.o. main ones those arrests in canada in december at the request of the united states
due to claims of threats to national security ten cent is one of the largest internet and technology companies in the world the media conglomerate owns we chat a messaging app similar to what's app and the social media site q q which boasts about a billion users tencent also has their hand in numerous mobile phone games and holds a stake in nearly every video game publishing company throughout the world shenzhen is home to d.j. a company that manufactures drove like this one right here. they take it or they account for about fifty to seventy percent of the global market of consumer drove their products are used widely in the production of television film and music videos with the reliance on finance and real estate hong kong's economy may face an upward struggle but with the tech sector in shenzhen the sky's the limit. big part of the law and conspirators it's time to wake up to dig deeper.
launching a new investigation into the matter intent on achieving just one thing. for you peach somebody persuade the american public to impeachment is a long way down the road we don't we don't have the facts yet. as. all that regime change in caracas the us back to the. presidency returned from his latin america with or incident.