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tv   Boom Bust  RT  September 12, 2017 9:29am-10:01am EDT

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i. i. i i i. i i i. i. i. i i'm simone dollars ario and filling in for lindsay france you're watching boom bust broadcasting around the world from right here in washington d.c. coming up on the show expensive as the airlines accused of price gouging as
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floridians attempt to flee hurricane wilma a head of the storm facebook find why spain is asking the social media company to fork over more than a million euros for violating your privacy and later big question ban china may move to ban all exchanges dealing with crypto currencies while russia is valid to take a different route standby all that and more boom bust starts right now. i . have millions of americans attempt to pick up the pieces following hurricane irma's wrath in florida and elsewhere airlines are under fire for price gouging as people try to evacuate this tweet by lee went viral showing the prize of her delta flight from miami to phoenix jumping. from five
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hundred forty seven dollars to more than thirty two hundred she later followed up saying delta reached out and helped tremendously but lee isn't the only person and delta is not the only airline so many floridians saw the price of flights jump from hundreds of dollars to thousands of dollars the airlines are quick to point blame not at themselves for taking advantage but algorithms that can change the price of flights within seconds when a rush of people are trying to fly out of the same area at once and florida's attorney general said the state received more than seven thousand complaints last week and now senators are asking transportation secretary elaine chao to look into the reports and it's certainly bad press from an industry that does not need help attracting negative attention these days in the aftermath of initial complaints airline started capping flight prices out of florida jet blue limited one way nonstop to ninety nine dollars as did american airlines and delta pledged to cap
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all fares including first class seats to norm no more than three hundred ninety nine dollars for flights to and from florida through september thirteenth as the united states and president donald trump focused on an america first policy it's left a vacuum of trade power for other global players to fill now when trump pulled out of the transpacific partnership or t.p. deal many thought the twelve country pact was dead in the water but the remaining eleven countries are revisiting their options just a couple of weeks ago meeting in sydney to breathe back life into the stalled agreement to talk about what future tepee may have and whether the us is still a part of it i'm joined by john gilbert professor of economics at utah state university john the eleven remaining countries committed to t.v. they have a combined gross domestic product of more than twelve trillion dollars it sounds like quite a bit of financial power there so my question is is the trade pact viable without
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u.s. involvement. well the original tube. the requirement that sixty five percent of the original signing members judy see. those members ratify the original agreements or the g.d.p. as it currently stands is not viable without the us in the pot or less. with the cheap. not involving the us anymore. it should be easier for the remaining eleven a car makers to renegotiate the agreement such that they can consign trying constantly referring to the t.p. as a bad deal for the united states the us is out of the picture now which country stands to gain the most from it. well i think that characterizes ation of it was a little bit misleading when we look at the time i saw of the potential economic benefits of the t.c.p. agreement we find that the us was actually one of the biggest beneficiaries in
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absolute terms some of the estimates of the gangs to the united states were in the region of one hundred billion dollars a year. i think that that original characterization was in careers. that the chief he was a life lead to be an asset in relative terms some of the other economies more than . such as the not really because those economies were so much smaller than. the absolute gangs from the cheapie were actually mostly occurring to the united states into a sort of japan with the united states which during. it seems likely that japan will be the primary beneficiary of the cheapies if it's renegotiated most of the remaining members but we'll still see significant benefits occurring to some of the smaller economies like the nominee and that's probably why we are seeing
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a country. japan takes such a leading role in trying to lead these negotiations moving forward obviously without the u.s. involved so t.p. can drop some of the concessions that it made to make the us happy so what do you think changes to labor rights intellectual property and environmental provisions do you think that will help keep the remaining countries on board. that's a really good question it's true that when japan originally signed on to the p.p.p. negotiations in two thousand and two the team that people who watch that it was really doing that in order to get an agreement with the united states and that without the united states as part of the there really wasn't going to be much. as it turns out that this is really what is was not the case certainly and these are by us withdrawing from the agreement but there are still substantial benefits for
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japan from an agreement with the other lives in a coma and i think. the t.p.d. agreement. is certainly very much that it went beyond. trade agreements like nafta did it have provisions for intellectual property and substantial. provisions for the regulatory curve here it's a trade facilitation all of those i want to generate substantial benefits it's also the case in any all of the provisions that were put in place at the insistence of the united states. the intellectual property provisions in particular were regarded as quite onerous for some of the other economies of japan vietnam and we're really not very keen on some of the provisions that the united states put in place but they were willing to accept them as part of what we want to deal with the united states out of the agreement it seems likely that some of those provisions will be
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generous and that's a shame for the united states in the seams. and golden opportunity to really sit the trade agenda in that region and speak if you haven't so it's just at some future point in time that it wants to join the. it will do so under water of appropriations on negotiated by mining at least in the well and that's what's so interesting about these negotiations they are taking place because if he does drop the provisions that the us had put in place that would make it more unlikely that the u.s. would actually ever rejoin which is something that these countries are looking to after the trump administration thinking let's try to make this appealing to the united states for a future leader to maybe rejoin do you think that's really a possibility this hope that these other countries have that the u.s. might reconsider post trump administration that's a good question i don't know the answer to that i think you're correct and some of
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these provisions are dropped it will become easier. for the remaining countries to negotiate a human agreement amongst themselves but it will make it harder for us to. in the future i think the agreement that's likely to come out will be won that the us will find less attractive than the one that was originally negotiated. how we seen this affect other regional trade deals like the regional comprehensive economic partnership r c p as t.p. tries to take shape here post united states involvement how does that affect other deals. well that's a good question again i think the primary purpose off the t v from the u.s. perspective or is normally economic it was also geopolitical and i was about really sitting the trade policy agenda in the region and sit in the trade policy
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architecture in the region in a way that suited u.s. interests with the withdraw from the g eight the the leadership has been ceded to other countries so now with the t.p. itself we're going to see an agreement that likely. looks much more towards japan's interests in the region and we're also going to see other agreements coming to the fore so our research which which you've talked about is the green light that's being promoted by china which actually taking the leadership role. it's an agreement that only involves the economies of asia including australia and new zealand of snow across pacific agreement. and it's an agreement that. a trade economist such as myself regarded as lower quality relative to the t.p. in terms of the amount of trade liberalisation to actually occurs.
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well again we don't know what will happen now but it seems likely that china's leadership it's going to move to the fore right because it's john gilbert professor of economics at utah state university thank you so much for your thoughts today. our pleasure thank you. privacy regulators are sounding the alarm over wearable health tracking devices a proposed european union mandate would ban the use of popular devices like fit to be used in corporate wellness programs basically companies have been handing out smart watches that is bands and other devices that collect health data for health and wellness programs now employees might be incentivized to wear the device and companies could collect information like sleeping habits and activity level even if it's just on an aggregate or anonymous level the concept is often driven by a company's desire to improve employee health and lower health insurance premiums
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but even if employees give the company permission to use the data and the e.u. advisory board says processing that information is unlawful and raises countless security concerns because of the privacy advisory health tracking companies are worried a future ban could end business in europe for example has more than thirteen hundred organizations using its devices as part of corporate wellness programs that's more than two point six million people and a large number of those customers are european employers a decision could come in the e.u. by may of twenty eighteen. it's not a secret that your privacy is that risk on most forms of social media but one website in particularly is dealing with yet another privacy related find in spain so what could this mean for its future and the rest of europe boom bust joins us
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for more on that bianca tell me a little bit more about what facebook is facing while facebook is facing a lot of privacy concerns from spain very similar to ones that the e.u. has already find them. hundreds of millions of dollars for in the past according to spain's data protection agency facebook made a series of privacy violations through its data collecting practices and one of those violations was so serious that the regulator ended up issuing a one point two million euro fine it made the decision after learning that facebook stores data based on ideology religious belief navigation and more are through the web site and third party pages the problem is that it doesn't believe users are aware of that and that's a serious offense under local law the agency also took issue with the way the site uses web browsing cookies users allegedly aren't told that their information will be processed on non facebook pages that have the like button plug and regulators didn't know that some of the data has been declared for advertising purposes but
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argues that facebook uses it for other him ones too and the third issue were guards the way the site uses deleted data which the a.p. found isn't always delete it in the agency's statement regulators explained when a social network user has to leave his account and request to the deletion of the information facebook captures and treats information for more than seventeen months through a deleted account cookie therefore the considers that the personal data of the users are not cancelled in full or when they are no longer useful for the purpose for which they were collected and when the user explicitly requests their removal this could mean trouble for facebook elsewhere in the e.u. especially in belgium france germany and the netherlands all four have their own facebook privacy related investigations going on which the made sure to mention in its press release. really interesting we're hearing about what he says but how has
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facebook responded to this fine so facebook has denied any wrongdoing and said they would also be appealing the fine and in response they issued a statement saying as we made clear to the d.p.a. you. choose which information they want to add to their profile and share with others such as their religion however we do not use this information to target adverts to people in the avid facebook has long complied with e.u. data protection law through our establishment in ireland so they kind of threw in there that are already established in the e.u. and they already follow the laws of ireland and the e.u. so it's fine there it should be fine in spain but you know the happen to facebook many times in europe in the us in south america and their argument is generally the same each time it's that maybe there are some loopholes or maybe some of these laws and rules and regulations are open to interpretation but ultimately we are not breaking any laws specifically so it's the same thing we've heard many times over and over again in such
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a huge company and so much money involved in facebook i mean it's a one point two million euro fine doesn't sound like a lot of money what's the point really in appealing here yeah i mean it's certainly a drop in the bucket for facebook we're talking about a multi-billion dollar company getting a one million dollar fine i mean they really could just pay this off and brush it under the rug so this is all definitely about their image and the way they're perceived around the world as this privacy violating company they need to get rid of that so instead they're saying even though we can pay this after you know off waiting for a minute we're going to fight this and we're going to appeal it and the reason this is a bigger issue in the e.u. versus you know the lawsuits are fines are facing in the u.s. is in may a bunch of new privacy rules and regulations are set to take place in the e.u. and how this happened in the year from now they could have faced up to four percent of annual turnover as a fine which instead of being one million dollars would be one billion so they really need to take care of this now one that ties right into the health fitness
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trackers we're talking about to a lot of changes in the e.u. coming in may of next year boom bust bianca sheeny i know you'll be staying on top of it thank you all right time now for a quick break stick around when we return on investment bank focusing. on emerging economies takes on western controlled world bank and the i.m.f. later tesla remotely takes over customers car software and it's all for a good cause as we go to break here the numbers the closing bell.
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desperate for a single. super. training very young. eight months of intensive school. rats. and they save lives. in the bottom of the marshall. islamic states claims it was behind the month just a terror attack by the militants front so kill the priest every time a terrorist attack happens all these people are out there screaming to go ice is so
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bad someone needs to do something against them and for me yeah why don't we do something. you. know. that if. you just let me. try to. show you some. guy has got a good plan there's a gun on. him as if he shared. the rumors are swirling around that china plans to ban trading all virtual currencies
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on domestic exchanges which has cooled crypto currencies like bitcoin as it awaits official word from regulators big coin dip down friday after the first reports surfaced and dropped even more below four thousand dollars sunday before stepping back up to friday's lows and china has boomed as a crypto currency trading venue because domestic exchanges have allowed users to trade for free but regulators are taking a closer look now if china val's to ban exchanges some cryptic currency investors think traders will just find a workaround to gain access meanwhile russia is going a different route developing a legal framework to regulate buying crypto currencies instead of cracking down like it's bricks partner china the goal according to russia's finance minister is to legitimize virtual currency trading to weaken the black market there he said russia understands that crypto currencies are the real deal and there's no need to ban them but there is a need to regulate to make trading less risky. as countries like china and russia
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continue to navigate new technologies and financial opportunities so does the new development bank and g.b. is a product of the meeting of the minds that occurs at breaks summits where leaders from brazil russia india. china and south africa meet each year now like its name the goal of this debate is to provide loans and foster new development with emerging economies while at the ninth annual bric summit in sharm in china last week i sat down with k.v. comment the president of the new development bank which many consider to be an alternative to the world bank or international monetary fund i asked him how n.d.p. sets itself apart from other global financial institutions. i would put it in context of the n.d.p. you can understand that he is a product of the song it is aspirations of the developing countries to try and stand on their own feet in so far as the point assistance is concerned.
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complements and supplements at all of other institutions but at the same time it makes the statement that. developing countries would like to stand on their own feet now the n.d.p. has already provided billions of dollars in loans just since two thousand and sixteen what are some of your goals for the coming year but i think we have completed our foundation work in terms of setting up a bank which can be seen to drive into the future. in short the first few years the target that we have is to try to do as much of a green as possible and the reason is not that it is. desirable to do green but it is economically mississippi to green in today's context so whether it is renewable energy or whether it is you know setting right they can logically balance and that is where our focus is along with that what i would is country specific for
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country required attention in other tedious we would look at those areas. and we have set a target for us for the next five years to do lending. us tallest thirty two billion now i understand that the n.d.b. wants to also get into the private sector right now it's working with the core five brics countries so how does a plan to move into that realm but you know the private private sector lending required has to require skills to be able to provide the assistance that they're going to because the risk could be different and we had in the process of building those skills particularly in cases in credit risk and they're often unnecessary products that the private sector the ones we guess would really be ready with these by the end of the year. now and there's been talk at breaks for expanding beyond the five core countries and what they're calling a brics type of forum regardless of whether that happens with the summit in this
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group of countries do you have plans to expand beyond the five core countries that you know and. allow for an expansion any member of the un could be a member in due course however this whole process is subject to the directions of the board of governors of n.d.p. . a first step has been taken to be agreed to expand membership and that. in april of this year. the decision was taken the mortalities timeframe and who and when i think is yet to be decided by the board of governors and his work in process. to talk about membership expansion for the n.d.p. at this stage the bit premature. now it's no secret but especially in the past couple of years china and india have been the primary drivers when it comes to economic growth within brics russia brazil south africa have all struggled in the
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past couple of years do you see this is a problem for n.d.b. i don't see to the problem of the problem at all the reason is economic growth is transition it may go up and go down due to certain factors we build institutions for the longer term and nations also you know look at things in a longer term perspective i would think in the areas that you mentioned and you know why you know to the infrastructure sector there is enough opportunity in all of member countries to be there for they need to be able to lend and for good to be driven now given the political and economic climate that are being faced in south africa and brazil especially i understand that the n.d.p. has had a hard time fostering new projects in those two countries how do you plan to overcome that i would separate the new political context because i do not want to. talk
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a board that. talk aboard the economic context. context of generating a pipeline in our member countries several elements one is how does the bank work on these how do these countries prepare projects and put them up for the banks to prune and chalk it just so happens that in china and india i think the historical context there have been there has been a process where there have been ministries reach out and press to do this task of collecting projects from the provinces of the states and then channeling them to lending institutions and we are learning in for sizing we are learning is going to be that process is not the same in other countries so it is for us to learn how to produce good old unit. how did they come up for funding and so on so in our other three countries i think we are in that learning phase i would think that in the
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have told african context the opening of the african regional center will be a big step in facilitating the project pipeline i think in terms of for brazil and russia we will lead to make more visits understand with policymakers and. my colleagues at all to know coming up to speed you know we were also young and i'm sure this will be set right in the next year what's your message to those people that see the concept behind brics as stuttering at this point no i think you know i don't see it that way at all i would be a bit surprised that anybody would be thinking of bricks in that context let me put that into the picture holistic way. brics nations to do more than two thirds of global agreement and trade that is not going to drop anytime soon in fact only increase as the other three engines which may not be
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driving today at the same pace as they have the potential to that is those economies are. likely lower rates of growth. so i think the sinew. far from structuring i think is the end is positioned for great. as it were thank you so much for joining us mr comet president of new development bank. last week as hurricane erma made its way to florida tesla drivers found themselves running out of power trying to escape the storm that's when tesla shifted into high gear and attempted to help as many people as they could the company remotely unlock more battery power for certain tesla owners giving them longer range all tesla had to do was access those batteries were mostly through software and drivers found themselves with thirty to forty more miles out of it all right that will do it for us for now thanks for watching.
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years ago i traveled across the united states exploring america's deadly love affair with a gun if a bad guy tried to get to one of my family members he would have better live better and i think they are inheriting whatever my my baby says my book was published in the year two thousand. million americans have been killed by us. t.v.'s we did this is a middle school we go through drills and we put ourselves in real scenarios it was interesting to see. him. to return to the subject to track down each gun owner who i'd met through all those years ago. but we are not.
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that's. the. manufacture consent to public wealth. when the ruling class isn't project themselves. the final.
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nor middle of the room. to leave. the. room. you can see live pictures now on your screen from the center of paris where nationwide protests in france turn violent as people throw projectiles and flies to counter my call this new labor law that would come into effect in a week. with islamic states territory in syria crumbling the races all need to retake oil fields from the terrorists with russian assistance and the u.s. backed forces both closing in. on the u.n. security council adopt new sanctions against north korea after the resolution was watered down from a stronger us strong.

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