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tv   My Dancing Heart  Al Jazeera  August 26, 2018 12:32pm-1:00pm +03

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an additional sixteen billion dollars of goods they went into effect twenty third in addition twenty five percent tariffs on steel and ten percent on elam in human ports have shocked such as canada mexico japan and the e.u. turkey's tariffs of meanwhile been doubled to fifty percent on steel twenty percent on aluminum yet here too there is confusion in imposing the steel and aluminum tariffs donald trump invoked national security his administration is using those tariffs as bargaining chips in trade negotiations how does that square with keeping america safe there has long been international grumbling to the central and see if the dollar and financial system to the global economy and it is likely that the frequent deployment of both as weapons often with little recourse for those affected will heighten those complaints in the future. washington all right still to come on counting the cost we look at white eight years of bailouts for greece
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led to a brain drain. electric car make a tesla has a value of between sixty and seventy billion dollars it's been trading as a public company for eight years but it has never made an annual profit. vision of integrating clean energy with transport and home power some might say is the perfect marriage but is tesla on the cusp of profitability or is this a bubble where joining us now from london is. the corporate finance and deals editor at the financial times in london thanks very much for being with us so first off what is the latest you're hearing on the company possibly going private obviously mr moss has been tweeting about this and then it's caused quite a ripple in the financial community but what exactly is going on well so i think we should point start of the beginning which was a story. i broke with the financial times that the saudi sovereign wealth fund had
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secretly kind of quietly built. about a four point five four point six percent stake in tesla we broke that story roughly two weeks ago and it sparked a chain of events which is led us to where we are now thirty minutes after our story broke on musk took to twitter and said he was considering taking tesla private at a twenty percent premium or so to where the stock was trading saying he had the quote unquote funding secured and that basically unleashed this chain of events which is roughly as far as i can tell unprecedented in terms of corporate finance and takeover battles in history where a c.e.o. takes the social media and amplifies another organization story and basically uses it to. really change the narrative around this company so where we are at the end of these two weeks is really not much further than what we started because musk may have taken some actions which violated sea. policy securities and exchange commission policies which have sparked
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a series of investigations into his actions and as a result also left him scrambling to put together this plan and make it look like there was actually more meat than there was on the boat and so at the moment banks are all running around trying to figure out whether they want to even work with him on this because it's such a wild wild idea and proposal and seems seemingly unrealistic and at the same time not wanting to miss out on potentially the largest leveraged buyout in history and only all important question of profitability with which you mentioned at the top there when do you think it might turn a profit. i mean there's no indication that tesla will turn a profit anytime soon it's burning cash at a phenomenal rate it can barely produce a couple thousand cars a year it can't keep up with demand from consumers and so there's no sign of profitability in the foreseeable future and then you hear read constant stories about problems with the cars problems with deliveries it's sort of endless stream of negative news but what keeps this company going and what keeps the belief of investors there is the sort of cultish icon of ilan musk where he can captivate the
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market into seeing his vision any just dreams big we're in a world where you know as one person wrote silicon valley entrepreneurs are creating these really micro startups that really have no real no real direction but will create sort of very profitable companies for their enterprise and some sort of back office software what you all must doesn't do that you'll musk sets up sets visionary ideas out and says i'm going to change the way transportation works i'm going to change the way energy works and then he lays out these really attractive narratives which obviously in a world where there's a bunch of small ideas we all want big ideas and so that can captivate the market in investors who are willing to back an entrepreneur but the facts and the details when you dig into them present a much murkier picture and that's why so many people have bet against tesla stop it's the most bet at one of the most bet against docs in the us market and there's a lot of people who expect this company to come crashing down and i bet a lot of money against them you know that gets to my next question then is this really sustainable i mean you talked there a lot about about the negative side of this the money they're spending this
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problems with supply lines you know is this a bubble that's going to burst well i mean it's sort of the tesla story is part of our story of where we are in the world right now there are so many different bubbles that we're and we're in a real estate bubble or in a technology bubble and tesla sort of in caps encapsulates one of these bubbles now the way that they can get through this is if they actually just focus on building cars and delivering and meeting their demand and that is clearly the best way to run this company if he can meet the thousands of supply orders that he's already registered and give deliver those cars to consumers then you can see if a foreseeable run rate for tesla to survive but this is a company that produces a fraction of what ford g.m. and cetera et cetera produced on an annual basis and it has a higher market value and at some point reality will catch up if musk can't deliver . and why would a lawn musk want to bring the company enter into private hands what would be his motivation so that. well again that feeds into one of the themes of our time which is that the markets are extremely short term oriented right investors want returns
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they want profits if you think about all the activist investors who are squeezing pennies out of companies and torturing c.e.o.'s for for more capital return to more aggressive action we're sort of in this ramp an environment where hedge funds and portfolio managers are demanding maximum amount of stuff from big companies and often times very hard to deliver and you couple that with someone with the ego of a lawn musk which must be among the top five top five biggest in the business world based on his behavior on twitter that's the only rational calculation one can make you can see that would be deeply offensive to someone and you can see through his actions that it's almost a personal vendetta that he wants them burn the short sellers and prove them wrong and so this this is created an incredible distraction around his company and himself where he's not focusing on the exit question so i think part of his argument is if i can get this company private then i don't have to deal with these massive distractions and i can focus on doing that problem is that it's really cute to want that but also you relied on the public markets to get to where you are you didn't magically become
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a sixty billion dollar company without having sold things to investors and sold things to the public and so to then say actually the public be damned is a bit of hypocrisy in its own sense so there's a lot of lot of questions here that are still remain unanswered one of their major topic that is is relevant here is the corporate governance around tesla the board includes his brother its quote unquote lead independent director is someone who's been named in court filings as his close friend so it's basically a mockery of the corporate governance the tesla board and therefore that's another big issue that's under examination now how can a u.s. company have such a captured board that is close to the c.e.o. and the board is very much on trial right now so the last two weeks i've really been a story about the board in the special committee of the board desperately fighting to maintain some semblance of independence so they don't get sued to death what would the implications be for tesla shareholders if there's a private buyout both institutional and. individual shareholders to talk us through what's involved for them there well so in
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a traditional sense if you don't want to take a public company private the easiest way to do that is a quote unquote leveraged buyout where you take a slice of equity and a bunch of borrowings you saddle the company up you offer a premium to the share price and then everyone gets the premium and sells their shares and then you take the company private with your new ownership team unfortunately that only works when you have a cash flow positive company because creditors don't want to lend you money if you're burning through money and you have no capacity to pay back the money so to basically launch the world's biggest leveraged buyout in history is impossible here and therefore none of the world's major banks will participate in such a plan because tesla doesn't have the capacity to repay its debts it's burning through cash as we've established so then you have to find another way and so the idea that they're discussing this quote unquote growing dark philosophy where a small group of shareholders will buy out other shareholders and take the company private with minimal equity checks which is why everyone got excited about the way musk spun the saudi line that we broke but unfortunately my reporting suggested the saudis have no intention of sort of funding. an extra you know five ten fifteen
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billion dollars to take the company private and if they had discussions it was very very informal and not of the nature and development that must might have suggested through his tweets and his subsequent communications to the market just to pick up on the on the saudi connection why why would the saudis want to find out its tesla's exit from from the stock market will what's in it for them will no discussion about saudi arabia can take place these days without discussion of the crown prince mohammed bin solomon the sort of various thirty two year old who's leaving the country trying to transform its economy and the vehicle through which he's doing that and to take the company's reliance off of oil is the saudi sovereign wealth fund which is called the public investment fund that's about two hundred fifty billion dollars in assets he wants to grow to four hundred billion over by two thousand and twenty he wants twenty five percent of those assets to be in overseas holdings and that's why and he's clearly a guy who's attracted by people who have big ideas who are trying to really chain. industries that's why they went and invested three point five billion dollars in that's why they gave forty five billion dollars to japan soft bank and muscle yoshi
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sun to have this incredibly large tech investment fund which everyone has to been talking about for the last two years it's wise put a billion dollars in virgin galactic with richard branson twice put up to twenty billion dollars with steve schwartzman in blackstone and this is very much in line with those bets a big entrepreneur trying to change an industry potentially even a hedge to saudi arabia's oil based economy. by investing in electric cars i'm with you on musk and the way i reported the story was to say that when mom had been some on went to the u.s. in march and april of this year she in tesla soon after a c. in the saudi sovereign wealth fund soon after approached tesla and said we'd be interested in buying new shoes newly issued shares to both help support your company but also we'd like to be an investor and must for whatever reason did not accept that offer and so the saudis with the help of j.p. morgan chase built the stake in the tesla stock in the subsequent weeks and months and it was private until i broke the story hours from a sooty good to speak with you thanks
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a greece is celebrating the end of eight years of bailouts it's avoided bankruptcy since twenty ten through three hundred billion dollars of loans from the international monetary fund and the european union but alongside the punishing austerity policies greece has had to abide by there was also a human cost john psaropoulos takes a look at how changes in society affected the country's youth. prime minister alexis t. pers may have been trying to custom self in the role of a hero when he chose to send a message to the greeks that their economic odyssey is over this is the island home his hero odysseus finally returned home to after twenty years of war and adventure only the same this seems better today a new day has dawned for our country historic day the bailouts of austerity recession and a social desert are finally over our country began to the right to shape its own future and fortunes like any normal european country without external device
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blackmail or sacrifices by our people for this group of young people the news comes too late the economic crisis struck at the beginning of their teens and changed their lives you know to go see one who is studying political science but what he really wants to do is three d. animation there's no market for that here so he'll go abroad you know my parents had invested everything in government bonds we lost everything it had a huge effect on our psychology and it immediately changed how we lived it was as though you had flipped a switch stefanos going to studying molecular biology the greek genetics market is shrinking as people have fewer children so he plans to end up in the united states or canada and look at me as has a job waiting for him upon graduation at a u.k. company you know has many of the my parents are divorced the moment i realized there was a crisis was when i watch my mother counting out money to pay to miti bills and i thought i have to finish school and find a job quickly so i can have my family i have two smaller siblings and they need
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a chance to grow up to. all three would prefer to stay in greece they just don't think this economy will produce the jobs they want nor do they believe greece's political elite can create that economy at least half a million young educated greeks have emigrated over the past decade in search of better jobs and that brain drain is likely to continue greece is forecast. to grow by only about two percent a year for the next five years but over the same period it's obliged to spend at least three and a half percent of its economy per year repaying debt so it's gains will be swallowed by its commitments the markets greece will now depend upon for its borrowing a looking for signs of stability that includes keeping up debt payments but not everyone believes it can go to stefano's and look in the us all studied the odyssey in school they're well aware that to disuse was the sole survivor of his homecoming expedition all his men perished whether it has done enough to ensure greece's
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survival as well as his own political survival remains in the lap of the gods. and that is our show for this week remember you can get in touch with us by tweeting me at has him seek and use the hash tag a.d.c. to see when you do drop some e-mail counting the cost at al-jazeera dot net is our address as always there's more for you online at www dot com slash c.t.c. to take you straight to our pages as individual reports links any tar episodes for you to catch up on. so that's it for this edition of counting the cost and hasn't secret from the whole team here thanks for joining us the news on the edges it is next. there is nothing intrinsically linked to the slave trade where your lips no one can sustain and insurance companies there's no way to separate and that kind of terror from the labor on the plantation from the profits that labor produced. that ass in
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europe industrialized slavery and amassed its great wealth resistance began to take full. from sugar to rebellion episode to have slavery when it's on al-jazeera. full of struggles. police look at it yeah it's pretty much over they said pretty much full of pleasure. out of the goodness of we were on the wrong person but the but i mean the rather well what if an intimate look at life in cuba today is working mom there with your kid but but but the comment that made a year ago my cuba on al-jazeera. is a self-proclaimed messenger of god painting millions of devoted but his path to enlightenment involved the rape and abuse of his followers when he used investigates the fall of one of india's most powerful spiritual gurus on al-jazeera. this is
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a really fabulous news from one of the best i've ever worked in there is a unique sense of bonding where everybody teams in but something i feel every time i get on the chair every time i interview someone we're often working around the clock to make sure that we bring events as i currently as possible to the viewer that's what people expect of us and that's what i think we really do well. the pope meets survivors of abuse and offers an apology from the catholic church during his trip to washington. on a mattress and this is al jazeera live from doha also coming up former u.s.
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presidential candidates john mccain has died we look at his life and his legacy. new restrictions in peru could keep thousands of venezuelans from fleeing the crisis in their country. the physical and mental scars of conflict al-jazeera meet some of the youngest victims of israel's twenty fourteen war on gaza. pope francis has called sexual abuse of children by members of the catholic church repugnant on the first day of his visits to ireland the pope has had a private meeting with eight irish survivors of clerical abuse some of them have been forced into adoption as children after being born to single mothers they say the pope has apologized on behalf of the church. but francis his visit to ireland is the first by a pontiff in almost four decades is trying to reinvigorate the religion in the country until the one nine hundred ninety s.
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it was a bastion of catholicism decades of scandals have hugely damaged the perception of the church they've aka reports from dublin. the pope's visit to ireland at this moment of crisis in the catholic church was always going to set the global agenda on how the vatican tackles its legacy of child sex abuse and pope francis didn't waste any time. we going to share. i cannot fail to acknowledge the great scandal caused in ireland by the abuse of young people by members of the church charge of the responsibility for that metatron and education the failure of ecclesiastical authorities to adequately address these repugnant crimes has rightly given rise to outrage i myself share the sentiments. prime minister has been at the helm of social reforms in the country including the recent popular vote to legalize abortion long prohibited by the catholic church he said it was time to build a new relationship between church and state. people kept in dark corners behind
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closed doors. cries for help that went on hurt. and these wounds are still open. and there is much to be done to bring about justice and truth and healing for the victims and survivors. holy father we ask that you use your office and influence to ensure that this is done here in ireland and also around the world. in this saga of widespread abuse of children by members of the catholic church protests were inevitable. these people looking for action not words from the vatican i do get the feeling though dobbs. cross will not be returning within the population from simply what will process say to the population he needs to meet with your actions are going to be pretty serious action for going to be. alone in silent
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prayer the leader of one point two billion catholics. later in the day away from the cameras he met eight i were survivors of religious an institutional abuse for ninety minutes likely the most emotional moment of his thirty six hour visit for all involved pope francis has gone further than any pope in acknowledging the church's wrongs but as new allegations of abuse continue to surface the biggest challenge to the church in ireland is the church itself. pope francis is an island and arguably one of the darkest moments in the churches of modern history become pope francis universally respected as a true reformer reinvigorate face and what the catholic church stands for. thousands of the faithful croke park stadium to hear pope francis speak his visit is a moment of joy for many believe is an island a country where more than seventy percent of the population identify as catholic
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but as the country embraces secular values irish society regardless of faith wants to hold the church to account for past wrongs need baka al jazeera dublin tim lennon has an abuse survivor based in the u.s. state of arizona he runs a network for other victims he says the pope needs to offer victims more than just words. but we can't come to. the church of best getting itself we saw that in pennsylvania one diocese we knew of ten predator priests previous to the grand jury after the grand jury find out there are seventy or so we know that the church has been hiding information for years decades. so the pope could do something very very simple and that is demand that every bishop in the world report every instance of of child abuse to the police italy for instance or chile a couple examples but imagine in most countries in world then it's up to the
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bishops whether they report to the police so this is the fox guarding the hens we need to do is have civil investigations in the church because they've shown that they're interested more in their power prestige and they are in the safety of children you know senator john mccain has died he was eighty one announcement of his death came less than forty eight hours after his family said he was ending medical efforts to treat brain cancer tom mccain was the two thousand and eight republican party presidential nominee and a distinguished military veteran mike hanna takes a look back at his life the from prison off war to presidential candidate in two thousand and eight john mccain mounted a challenge against barack obama but lost in a landslide hi friends we have we have come to the end of a long journey. merrick and people have spoken and they have spoken clearly he returned to the senate where he served as
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a senator for arizona more than thirty years after the war hero missed in the trump election a man with whom mccain had a prickly relationship in the past which did not improve senator mccain emerged as the conscience of the republican party in pushing back against several actions of a president who was the party's new voice on the trump travel ban i think the effect will probably in some areas give isis some more propaganda we don't want to shake news on threats against the media when you look at history the first thing the dictators do is shut down the press and i'm not saying that that's that that president trump is trying to be a dictator i'm just saying we need to learn the lessons of history. on the likely reaction of past leaders to claims of alternative facts they would be alarmed by the growing inability and even an willingness to separate truth from lives senator
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mccain served in the vietnam war has aircraft shot down over her noyo he broke his leg and arms suffered torture and spent more than five years as a prisoner of war before returning to the u.s. as a war hero a description he humorously undercut during this visit to the libyan city of benghazi in two thousand and eleven they also served in the united states navy for many years it was a pilot. that they yes but a not a very good pilot i was shut down diagnosed with cancer and recovering from head surgery john mccain received a standing ovation when he returned to the hill for a crucial senate vote in the motion is agreed to. he followed the republican line in voting to open a debate on repealing the affordable care act but in his speech was deeply critical of a senate that he described as more. and more tribal than ever before let's trust each other let's return to regular order we've been spinning our wheels on too many
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important issues because we keep trying to find a way to win without help from across the aisle and a few days later in the early hours of the morning john mccain put principle before party. defying immense republican pressure to support a bill is repealing barak obama's health legislation he's back. and in that moment he rose above the senate mired in endless squabble offering the hope that governance by consensus rather than by command could still be possible. that the right at times john mccain could be wrong but on the strong matic nighty demonstrated truth to himself and to the country he devoted his life to serving rob reynolds has the latest from washington d.c. . the flag atop the white house is flying at half staff in honor of the passing
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of senator john mccain but there were a few words of praise for the late senator from the man who occupies the oval office now president donald trump issued a terse tweet saying my deepest sympathies and respect go out to the family of senator john mccain our hearts and prayers are with you nary a word there about mccain's military service or is long service and his significance as a political figure in the last several decades in the united states by contrast form president barack obama who of course defeated mccain in the presidential contest in two thousand and eight by a landslide issued a lengthy statement saying few have been tested the way john once was or required to show the courage he once did but all of us can aspire to the have the courage to put the greater good above our own there are tributes pouring in on twitter and on
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social media and in statements from the the length and breadth of the political spectrum and tonight in american news media are reporting that senator mccain before his death requested that both obama and george w. bush speak at his funeral no mention of asking president trump to do so finally the headline in the editorial section of the washington post here in the united states capitol reads simply the irreplaceable american tributes to one of the last of an american breed. one hundred fifty migrants have been allowed to leave an italian coast guard ship after being held in a port in sicily for days and it is interior minister has been refusing to let the refugees disembark since monday he demanded other e.u. states take in some of the group local prosecutors are now investigating mateo
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salvini for abuse of office kidnap and illegal arrest peru has imposed new entry restrictions to try to limit the flow of migrants from venezuela the peruvian government says asylum seekers must now carry passports previously to get into the country using just a venezuelan national id card but in a sanchez reports from the peruvian city of tomba on the northern border with ecuador. hoping to escape the economic hardship gripping the country desperate venus williams are pouring into peter's worry with it whether by bus by car or by foot before saturday's deadline meant to tighten entry requirements. fifteen year old joined the ladies traveled more than four thousand kilometers with some members of his family he says he never imagined leaving venus when we did that work at the my lab we were at the best time of our lives with friends school family
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