tv Bloomberg Markets Asia Bloomberg July 1, 2019 10:00pm-11:00pm EDT
bar for mainland growth. so we are going to check in on the market now. you had pretty much a lackluster session so far in mainland stocks here on the mainland in china. pretty flat in terms of what we were seeing in hong kong. there was a bit of a catch-up after that one-day vacation yesterday to celebrate the hand over. of course, there were some mass protests. according to some, up to 500,000 people taking to the streets and that violence as well. you are seeing green on the screen as they play catch-up in terms of some of the other engineties or inexes. in focus, australia looking ahead to a potential second cut from the r.b.a. that is the view from most economists. looking across to indexes in south korea, a little bit more weakness in the red. there is concern now around
trade. you had that comment from president frump saying that trade talks between the u.s. and china had already started but also lines from the trump administration suggesting that they're looking at additional tariffs on european good, so a little bit more concern than there was yesterday on the trade front, maybe being reflecked in south korea, for example , we're all looking at some of the different indexes in terms of the regions. .he filipino possesso is down you saw a bit of a pickup in the 10-year u.s. treasuries and maybe some weakness in those u.s. futures. the s&p 500 hit a record yesterday. the termal chart is announcement versus fenses
cyclicals. as this terminal shows, there is still a premium in terms to have defenses over sickly calls and that has endured even after the fast ball crisis, highlight build the red bar, 2008-2009 so maybe putting some question marks over the desire to get into cyclicals given the premium that defensive still have. that is something investors continue to weigh out, how to play these markets given the more dovish sfram bank action. let's get to the first word news in new york. >> thanks, tom. iran has breached the terms of the 2015 nuclear deal, exceeding agreed limits on enriched uranium and the move undermines nip support from european powers who also signed the deal four years ago.
they have been trying to find a way to salvage the deal using a trade mechanism to side step u.s. sanctions but iran says more must be done. >> the europeans have not done enough so the islamic relick -- republic will move ahead with plans as previously announced. we are in the first phase both on increasing our stock pipe of inriched uranium as well as heavy -- reserves. >> you can't let iran have a nuclear weapon and you can't let certain other countries have nuclear weapons. too devastating so they're having a lot of difficulty in their country right now and hopefully at some point they'll come back and say we're going to make a deal. andhe european central bank the continuing worry about inflation.
investors and economists predict that the effort c.b. will cut from rates in the coming few weeks. the rate already at a record low. the number twoed a the -- at the fed says many members say a stronger case for easing now than two months ago. they said the federal act is appropriate to sustain the u.s. economy, mounting the growing uncertainty about global growth and trade. as president trump has reap the -- repeatedly criticized fed policy and called for mounting insurance cuts. >> baffled by this notion that an insurance cut is 100 basis point. it's not, for two reasons. one is you don't want to use up all your ammunition now and secondly, if you really need to cut 100 basis points, it's more than your insurance, there's
something deeply wrong with your economy. >> lowe and colleagues are in darwin for the dieng's -- bank's first meeting in the city for five decades. the r.b.a. is expected to announce success active rate cuts on tuesday for the first time since 2012. 51 years after meeting in darwin he first time it wants to urge australiaians to spend. powered more than 120 journalists and analysts in 120 countries. >> the g-20 relief rally looks more like a one-hit wonder with he president on the u.s. talking about more tariffs on the effort u. we're joined by steven engle in
dalian for the world economic report and david with the latest from the hong kong protests. steve, trade must be one of the key topics of the world economic forum. what are you hearing from some of the dell gates and guests there? >> absolutely. there was that sigh of arrive here in dalian after donald trump in saturday in osaka. of course, the g-20 there and they had that trade truce. there was a breathe of relief here. however, today we're going to be like -- looking for signs on the premier on the details, programs. i'm not expecting a lot details other than that when we has -- he has said in the past and that's generally fighting against the trends of protectionism. we're likely to hear that over and over again and likely to hear there are significant head
winds on trailed in china. the job sub index of the manufacturing and p.m.i. also at the lowest level since 2009 and i know the chinese leadership takes jocks very seriously. i don't have an embargoed text of his speech but i'm sure he's going to hit on these types of challenges facing the chinese economy. what i'm looking for are any details in what ping brought to the table for this truce on saturday. other than what we saw yesterday, and that is they're going to narrow the negative list, the list of sectors restricted in the chinese economy to foreigners. they're going to narrow that list as of the end of this month but there are fewer details to the at else came table other than to buy more soy beans and the like.
tom: of course we've got flare-up of protests in hong kong overnight. do you think there's any chance inrior li will address those his remarks? >> very slight chance. i would say probably 0.1% that he mentions hong kong. if he does it will show the level of confidence that bay dieng has in how congress honoring -- hong kong has handled this but it is so fresh. and still at 4:30 in the morning we had scenes of rioters and tear gas. if he says anything about it it's going to be we must maintain the rule and hong kong is a -- rule of law and hong kong scasoverpblg matter for china. tom: how are things looking today after what was a pretty dramatic night? >> it feels like some sort of post apock limitic movie with
scavengers collecting pieces and bits that have been left behind. last night at around 9:00 police left the building and they allowed some very aggressive protesters to actually take street signs and street barricades and various other implements that they could get d charge into legco by breaking into the extraordinary their thick plate glass windows. we're looking into the legislative council forecoirment. it's been korn cordoned off because it's now a crime scene. there was no arrests last night. the protesters wore hard hats and masks on their faces so they quounlt be recognized. they were, of course, dispersed
around about midnight and after press aray lamb gave a conference at 4:00 a.m. >> quite incredible to see her out and will be -- about giving a presser at 4:00 in the morning. >> this is actually a very interesting question. why was it that she came out at 4:00 in the morning to give this press conference where she condemned the violence. one things people are looking at was whether that condemn nation of the violence was a way of moving the public sentiment towards the government away from the protesters. we had 2 million hong kongers in the streets protesting not just the expedition bill but also protesting the government and beijing's incurrings into the rights and freedoms of hong kong. eddie choo, a pro-government
sloitor actually got more votes than any other legislature in the 2016 legislative election. eddie, extraordinary things we saw here overnight. what do you make of, first of all, the fact that the police allowed access to the protesters? we're not saying that the protesters were correct but it seems extraordinary that the police allowed them to get that far. >> let me correct you. legislature -- i'm a pro-democracy legislature. -- legislator. it was a deliberate move in order to let the storming happen. on the other hand the protesters were also uncontrollable. they were eager to find a way to
lease the anger of the responsive government in the previous weeks of their demands and there were three young people took their lives due to this cause and we didn't see any responsibility being born by the government. o -- well, we understand the anger of the young people. >> certainly there's a palpable anger of the young people in hong kong. what do you think the tax tick -- tactic was of the government? if there was a rumor they allowed the attacks, what was the reason? >> attacks are always trying to transform a political issue to a security one. as everyone knows, in the
early morning, 4:00 a.m., carrie lam was accompanied by the chief of the security bureau and 99 october of the press conference was about condemnation to the violence and protesters. but very little of the time left was for how the government is going to restore this crisis, how the government is going to restructure itself in order to meet the demands of the hong kong people so i think in the coming weeks we will see a very arge hit back from the beijing side and turn it into a security issue and i'm afraid that in the long run hong kong will become a police city. that the government is not trying to restore problems in political ways but to rivers and imprison young people.
>> so what's your sense of how the public is already responding to what happened here last night? is that mood shifting away from supporting the protesters? >> i believe most of the citizens in this city do not want to see what happened last night. they will be very disappointed at this new episode but i think we need to carry on. also ppened yesterday reveals a -- for hong kong. why are these people being so respect -- disrespectful to the legislature of hong kong. it's because they cannot represent the voice of them and the majority of hong kong people. that's why one of the major demands yesterday night within
the chamber is to have democracy as soon as possible. i think a sfrurl change for hong is apolitical institutions common demand for those non-violent protesters and activists who were storming yesterday. >> that's obviously the wish and desire of the people who were protesting but you waned a much darker story just before. that is that we see hong kong turning into a much more egressive state. >> that is my guess of the government's side. >> right. i ut for the people's poy, don't think that we'll give up this movement all together just because of what happened yesterday so we are now foreseing in november, the
election that will be a voter registration campaign. these are things common i sees is can do to save the city. >> if hong kong were to become much more rebrev -- repressive. do you think that the international community might also become more vocal in its criticism of what's been going on here and the sense that beijing is encroaching on the rights and freedoms that were promised to hong kong was -- when hong kong was handed back by the british to china 23 years ago? >> i think this is what makes hong kong special. hong kong is an international city. so many countries have -- here and i think definitely they will if re vocal in the future we see more political prisoners, if we see more legislators being
disqualified or something like that. but at the end, hong kong people not afraid ited and to have the foundation for the international community to support them. >> eddie chu. a prow-democracy lawmaker. thank you very much indeed for speaking to us. a little bit of the bleak picture for the future. last night seemed as if it was a turning point for these protests here in hong kong. back to you in the studio. >> david, thank you very much. we were also continuing to reach out to lawmakers and stakeholders on all sides to expand our coverage. still ahead, nouriel roubini joins us live from the block chain summit in taipei for an
tom: welcome back. opec and its allies are to extend all production curves into next year amid concern about weakening goebel demand and the rise of u.s. shame. spend.rs agreed to repeated extensions show opec's challenge in the age of shale. the cartel's share of the market is at its lowest since 1991. >> the commitment to a nine-month extension is unequivocal. very solid, very strong. not only a are we committing to rollover. i've heard the individual
commitment to conformity from all countries. tom: let's bring in oil market editor ben sharp els. the opec move was expected. what key factors will drive prices now? are they fighting a losing battle? they have extended cuts time and time again. the shale production in the u.s. is a factor as is softer demand and these manufacturing numbers out of asia, europe and the u.s. seem to suggest there's more softness in the global economy. >> there are a number of factors nab affecting the oil market at the moment and unfortunately it's the bearish factors narh outweighing bull --. you have the trade concerns between the u.s. and china which is denting demand. you have those weaker economic factors and also the i.e.a. warning that supply will outpace demand next year. a lot of these factors at the moment. u.s. shale is also -- or u.s.
output, actually is another story. million barrels a day right now. more than russia. concerns that crude may be disrupted adds a bit of a bullish element with you certainly on the bearish side that's looks like it's driving the market into the future at the moment. tom: ben, tell me here as well. we have a situation where we have shale as a rival to opec and one of the original reasons why they pumped up oil a few years ago was to try to get these guys out of business. of course that didn't work particularly well, as we can item. what are their plans to deal with russia? is russia a rival? they've also collaborated with them. give us an idea of the mash nations to have business here. >> you mentioned russia.
ussia is building dominance on this opec group. you saw on the weekend, the opec cuts were pretty much flagged in between putin and n.b.s. the cuts of the opec plus drive seems to be coming from russia at the moment. you mentioned shale. opec has understatemented shale from the outset. they went from cutting to try and pumping to beat them to run them out of business to back to cutting again. the saudi oil minister said they'd try and wait out the u.s. shale boom. it might be a long wait. we had analysis last month talking about the u.s. accounting for about almost a quarter of global oil and gas production by the early 2030's. so it's going to be a long wait. shale looks like it's going to continue dominating and it's going to be a headache for peck and its allies. rishaad: ben sharples, thank you
tom: welcome back. let's check in on the hong kong dollar, which is performing a little bit stronger today. currently -- currently at 7.8062. 4% as things stand. we had that story about the liquidity conditions in hong kong remaining relatively tying. let's switch it on to some of the individual stocks that we are looking at now, in japan in particular. so softbank, talks about investing in terminus driving business.
>> it's 10:29 a.m. in hong kong and beijing. 10:29 p.m. in new york. the first word headlines. opec and allies are to extend oil production cuts into next year amid concern about weakening global demand and the rise of u.s. shale. the curbs began in 2017 and repeated extensions show opec's challenge in the age of shale. the market is at its lowest since 1991. >> the commitment to a nine-month extension is unequivocal, very solid, very
strong. not only are we committing to rollover, i've heard the individual commitment to conformity from all countries. >> the trump administration is turning up the heat on the effort up, threatening mu new measures against exports. an extra list are a value of $4 billion. the two sides are fighting over e.u. subsidies for large civilian aircraft and european union leaders have failed for a second time to agree on the makeup of the cut jobs amid growing concern on that division and gridlock in brussels. 18 hours of talks on sunday and onday produced new agreements. on naming -- as head of the effort u. commission. he's backed by angulo merkel.
hong kong's leader is condemning demonstrators who stormed the government buildings. and pepperd tear gas spray as hundreds of people flooded into the flooding. chief cech five carrei lam denounced the pro testors, saying they used successive violence. >> violence and vandalism by protesters who stormed into the legislative building. so this is something that we should furiously condemn because nothing is more important than the rule of law in hong kong. >> president trump says he's taken tariffs against mexico off the table after the country stepped up to step the flow of central american migrants attempting to reach the united states. the president said they're doing a great job and it's had a big
impact on migration. trump last week dropped tariffs on mexico after the government said it would do more to help. follow bloomberg 24 hours a day on twitter and tictoc. this is bloomberg. >> thank you very much indeed. just bringing in some lines on what we're hearing from an official briefing by the minister of finance and commerce here in beijing. this official is saying that the rade war impact on china's economy, that china's supply chain advantage can hardly be replaced and they are saying that only a few companies are moving out of china due to the china-u.s. trade war. they're saying that more progress is being made in diversifying china's export markets. this is the commerce mini city official speaking. of course, this follows the
truce between trump and xi. president trump saying that conversations and trade talks have restarted between the u.s. and china but a big focus have been on to what extent companies have been moving their supply chains out of china to other jurisdictions like vietnam. rish? rishaad: yes, also, let's have a ok at -- allianz's chief economic advisor saying an insurance cut by the federal reserve is not 100 basis points, adding that he is baffled by such a thought. the opinion column first said such a need for a rate cut would indicate something is deeply wrong with the economy. >> it's a relatively number we just got and speaks to the u.s. being able to resist the downward gravity from what the
happening in the rest of the world and that is good news and i think that that reflects that the u.s. is still more closed in terms of other economies. the big data is coming this coming friday. we need the household to continue to be robust. that is key for the u.s. to continue outperform the rest world. i would look at that number a lot more than the other numbers up to friday. >> what are you looking for on friday? >> i'm hoping that you're going get the trifecta of job creation above 150,000 after last month's disappointing number. that you see a wage growth saying -- staying about 3% and that you see the labor participation rate going up. that's what i hope. i suspect you'll get two out of three but i'm hoping for the third one, this is labor participation. >> 200 k happened for many, many
months and economists kept saying this wasn't sustainable but it was. we expect to see a little bit more volatility in the payroll than we haven't in the last few years. >> we should. there's a limit to how many jobs you can cream. werned be seeing an average of 1 20. we've seen a monthly month average much nearer to 200,000. but what economists are trying to figure out is to we have some -- such deep structural changes in the economy that we can run this economy at high growth and low inflation and that's critical for the fed call as well so there's a lot of work to be done in understanding the new structure of the economy. >> the market is looking for four cuts over the next 12 months. the federal reserve, chairman pousm exclusive communicating this idea that an ounce of protection is worth a pound of cure. where do you see this playing
out? >> i'm baffled by this notion that an insurance cut is 100 basis points. it is not, for two reasons. one is you don't want to use up all your ammunition now and secondly, if you really need to cut by 100 basis points, it's well beyond insurance. there's something deeply wrong with your economy. so the marketplace i think has gotten too far but that is the history of the market. the fed gives a little and the market pushes it even more and i think the market is getting a little bit greed any -- greedy in terms of rate cuts. i would look at 25 to 50 over the next 12 months, not 100. mohamed, a bloomberg condition -- opinion analyst. tom? tom: a worsening outlook for economic growth as the trade tensions continues to simmer
across asia and europe. factory activity shrank in june while the u.s. showed only meager growth. let's get the details from our southeast asia economics reporter michelle. looking ahead, what's the key data to watch? > well, from here amp a really disastrous monday for global p.m. the i. data, we're looking at singapore on wednesday. it's been one of those economies that's been fairly restill went in the region. also one of the electronics powerhouses we saw. south korea and taijuan falling apart in the expomplets data. singapore having a lousy exports data reports release recently. it should be a sign that maybe one world's more resilient economies is again seeing some fractures. that coupled with. u.s. job report should show two economies narh hanging in the
balance right now as others show sharper picture for the outlook. rishaad: hanging in the balance. d there's a diverse opinion, right? >> that's right. a erday we were calling it detente between trump and xi over the weekend. but morgan stanley under-- downgraded their global forecasts this year. seeing a lot of uncertainty connecting the sentiment data to the investment and trade data. for much of the year we were saying this is sour feelings, we don't know what's going to happen yet, in the u.s.-china trade war, among other factors and now that's playing out. demand is waning and some of these trade tensions are actually translating into the
dat i-. a so economists definitely on high alert even as the markets are seeming to take this well. tom: michelle, thank you very much. bloomberg eastern economics reporter. there is plenty more ahead. including we're going to cross out again to dalian for the world economic forum. let's go to steve there now. what's the latest from the world economic forum? steve: we're just out of the main assembly hall where premere li keqiang is going to be giving his address here to the international delegates compiled for the summer davos, as they call it, the annual meeting new champions. we're waiting to hear his address. again, he usually uses this venue to one, lay out the issues in the chinese economy to the foreign community here but then lso asage the -- assuage the fears that foreign investment
community. might have. coming after the g-20 summit between xi and trump, there are a lot of concerners about what constituted the truce. we do know that china has pledged to narrow that list foreign investors to the economy. july 30 they're going to be narrowing that further. we don't have a lot. specifics on that and also what xi pledged to donald trump to get trump to agree to this truce. we do know what trump did and he kind of removed some barriers on huawei and came to the table ping with a more conciliatory model. so the big question here that the delegates have is how long will there truce last and what
are the parameters of the truce because right now it is seemingly indefinite. the existing tariffs are still in place and the situation is very similar to what we had in december the last time we had a g-20 gathering when xi and trump reached that first truce that was supposed to last 90 days but fell wal-mart apartment in may. that's the big question and what we want to hear from li keqiang. i'm betting li keqiang is going to talk about the challenges in the chinese economy. not just from the trade war. the manufacturing p.m.i. slimmed to 49.4 in june. worse than expected. the employment sub index in that manufacturing p.m.i. slumped to the lowest level since 2010. bloomberg intelligence expects fourth quarter g.d.p. growth to slip to 5.8%. 6.1%. they're expecting
there are a lot of fears and a lot of worries here in the chinese economy. will li keqiang be able to assuage those fears? that's what we're going to be weight for. tom: i guess the key question is whether or not li keqiang is going to outline additional measures of support. just how aggressive this additional stimulus is going to be if indeed it does come down the pipeline. i guess that's another area you're going to be focused on in terms of his speech? >> that's right. and we had diverging opinions yesterday on whether they need to pull more levers on easing. chinese authorities have been pretty forth right a be their ability to use different kinds of levers, whether it's medium term or can you. charles schwab will be
introducing li keqiang so i guess we're just moments away from li taking the podium. we had averging opinions yesterday. p.o.b. head saying right now the levels of merging are satisfactory but i talked to a professor from a university who advises the pboc, among other government agencies. he said if the fed cuts, the pboc will cut almost immediately on their rates. there's doubt but there could be more easing coming in the chinese economy. we need to read the tea leafs right now until we hear premier li keqiang. >> steve, what about anything on hong kong given the developments in the last 24 hours. does he continue the same sort of narrative that xi ping has been using? people are talking about the bell cose language used by the
leadership there. are we expecting leadership to become more hawkish towards problems in hong kong and the fact we have one country, two systems in hong kong and perhaps the our -- offer of that in tie wane -- taijuan? >> yeah, i don't expect li keqiang to necessarily talk directly about hock congress. he could and if he does, that will show the level of confidence beijing has in how hong kong has handled the situation but anybody who watched what transpired overnight woushts be left with a lot of confidence on how congress ok hong kong handled it. with the storming of legco and then the use of tear gas but if li keqiang does talk about it, he will talk about the need for the rule of law. much like carrei lam talked about the lawlessness and the
need of the rule of law. china is a land of laws and has to be ruled by the resume of law. also, if he mentions it, i'm not saying he will but if he does, he'll say that hong kong is an internal purr for chinese. the old chance he's feeling expressway confident, he could give a nod to hong kong but this is a world economic forum up that focus on economic scommearts china likes to differentite those. theis geo politics and then there's economics. i'm confident he's going to stick to economics. >> absolutely. and even if he does come out and say that carrei lam has their confidence, it's a bit like a football manager getting the confidence of the board and then that person usually being sacked
a few days after. he's talking about the growth index, which is something we look at occasionally. he's been putting less emphasis on that, hasn't he, steve? steve: i'm sorry, i couldn't hear. the growth index of china? the leadership here obviously is very concerned what the damage atlanta done from the trade war. they're not necessarily going to say that outright but in addition to the other factors that are limiting growth right now, the trade war definitely has put policymakers on the back foot a bit and what is the next step for policymakers to get jobs creation going and to also get the growth going but not stoking those critical bubbles that could form very quickly, especially if they do start, you know, cutting the benchmark from rate. sometimes money starts flowing
into the wrong sectors of the economy. we get overheating and then we have another bigger problem that exacerbates the debt problems that people like li keqiang are trying to battle. >> it's interesting, isn't it? premier li keqiang is often one of the first people on the front lines about these debt concerns but also he meets regularly with business leaders. foreign business leaders in beijing and elsewhere around china to kind of persuade them in terms of measures and reforms to open up the country, those are in place and will happen. are you getting any sense of exaggeration, fatigue about the ace of reform here in china? >>that is always a concern. whether it's the europeans or americans or others. markets access is the big issue and donald trump has talked about it quite considerably.
he'll probably point to the various steps they've talked about, whether is the in auto industry or the progress in the service sector to plow foreign banks to come in and also take majority control of securities, joint vefpblgchuss can. he's probably going to highlight the various steps the chinese have taken so far. the chinese don't necessarily describe these things in big bang tours but in incremental steps and i'm sure he'll remind everyone that china is taking steps to open up and reform. it's a slow process but i'm sure those in the business would like o see a much faster and less o pick a process but he's going to say china is opening up and open for business and here i understand he's about to take the podium. li listen to premier
keqiang. your fessor -- is excellent sis of the state and distinguished guests. ladies and gentlemen, friends. as the great pleasure for me to attend the opening ceremony of the annual meeting of the new champions 2019 held nadalian. dalian. of the -- in on behalf of the chinese government, i wish warm congratulations on the opening of the annual meeting and i also would like to extend a warm welcome to all guests and
journalists. the summer davos forum has been eld in china for 13 years. yesterday i had a conversation -- schwab, r swab during which we together reviewed how we discussed the launch of such a forum 13 years ago nadal yen. -- in dalian. it was a time when a new round of industrial revolution was on the rise. economic globalization was picking up speed and we were
confronted with the common task how to respond to these new dial i said. we were thinking -- dynamics. we were thinking what would be a fitting positioning of the forum in response to the greater diversity of market players, market demand, new and emerging ndustries, technologies. s well as business models. at such a juncture, we must come up with new approaches and easures.
to drive economic growth, we need to rely on strength of market players. among all these market players, we would like to see copped pursuit of excellence on the part of bit companies and at the same time an -- and even more importantly, we would like to greater number of mall -- small and medium sized growth enterprises to strive for stronger growth by riding the wave of our time so that we can adapt ourselves to the fast shifting dynamics in the international industrial landscape. and that is how we identified the theme of new champions for
the forum. and i believe this is still heim elevant today. as we look back over the past 1 years. we can see that quite a number of growth enterprises present at the forum have become strong bigger companies and they have njoyed inclusive development and i believe it is the job of the summer davos summit to entertain the platform of all market players, especially those with new ideas and new technologies and those who are of he midst of growth and
small and medium sized, giving them the opportunity to compete on a level playing field with bigger companies for common progress and pros perlt. -- prosperity. as we discuss how we should better cope with economic globalization and better harness the strength of growth enter prizes. we believe doing so will give us stronger optimism and confidence n our way ahead. i understand economic globalization will be featured prom innocently in the discussions of this year's annual meeting. his is a highly relevant topic and in the important remarks of
g-20 held last week. president xi ping further commented and reaffirmed china's readiness to work with the international community in steering economic globalization in the right direction. there has been much discussion about globalization in the international arena in recent times. i think first and foremost we need to recognize that globalization has made it possible for us to offer produce more options up the opportunities to present new technologies and new thunderstorms of business and business models. globalization has also helped
promote international division of labor and made it possible for countries to -- their respective strengths. i think it's fair to say that all have benefited in this process. the latest round of asian globalization has closely knitted together ubiquitous network platforms. this has not only ingeorgia teched fresh impetus into world economic growth but also lowered the threshold for access, presenting more opportunities for all participants. we now live in a world of rofound interdependence. countries rely on each other's markets. no country can single handedly
offer all needed goods and services to consumers. anyhow nor can any country sustain its development in isolation from the global system of division of labor. having said that, we need to acknowledge the problems that have arisen in the course of globalization. that is lack of inclusiveness as much as inequality in opportunity, even benefit dis bruising and traditional industries and jobs. for these issues, we need to ake comprehensive and in-depth analysis. cannot simplicically make a scapegoat of economic globalization. that would not help us resolve the problem. instead, we need to follow the trends of global station and promote free trade and trade in
investment -- li marks by premier keqiang. they say that all if -- have benefited from globalization. he's set himself up as being the gate keeps -- gatekeepers of globalization. he's saying the people must realize the problems of globalization. that is one of the things we're looking at right here, which is this block chain summit make mag taking place here in tie payment let's get reaction to the chinese premier's speech. the economist is at moody's is going to be joining us. also stephen engle is going to be on hand but first up, it is nouriel roubini, who is with me now. i don't have to introduce him. his name speaks for itself wlfment --.
what do you make of what is going on with the world right now, of washington pit ing himself against beijing or i should say donald trump pitting himself against the rest of the world. >> i think it's a bit a scary time for global economy. we went from economic expansion to a slowdown and i think there crisis next inance year. the risk of a cold war on trade between the u.s. and china. the two sides are completely disagreeinging on all the main issues. rishaad: is it about trade? >> it's not just about trade. i would say trade is actually the least of the problems right now. it's about who's going to be controlling the industries of the future. information, 5-g and all the
other industries. but it's going result in a cold war between the u.s. and china and it's not going to be easy to find a solution to this problem and the consequence the line -- the coupling of the global economy. will be the disruption. by next year, it will be the escalation. >> this is a fragmentation of what is going on. the fragmentation of geopolitics and deglobalization. this is a long process. how badly does the economy suffer? >> it is a medium-term rivalry in china but even in the short run, let's assume there is