tv Boom Bust RT May 22, 2019 1:30pm-2:01pm EDT
commerce secretary well ross said the grace period would allow u.s. companies to wind down transactions and arrangements with holloway with less disruption on the other side and effective ban on purchasing u.s. made components with severely impact huawei while weighs the rents and phone responded with bravado dismissing both the ban and the delay saying the current actions by american politicians underestimated our power here to tell us more where joined by r.t. correspondent sarah montana's they all welcome thank you so given all of this how how does the trade war and the escalation of the tensions affect between the 2 countries that we've seen in recent weeks well basically on tuesday like you said the u.s. commerce department announced that it would postpone it and add a 90 day extension before actually banning out wall way now this is why we is technically still prohibited from buying american made hardware and software and this really hurts a lot of american businesses who to spend about to meet
a $20000000000.00 of semiconductors each year so it's hurting world markets but when this extension was announced earlier to you earlier today the markets did go up a little bit so it's kind of a a ceasefire if you will to give them time to make other arrangements and mr trump of had had this option to ban wall way on the table for months now but had been prolonging it until he felt like he really needed to use it. so you mentioned you know sort of the feeling is that this is may be sort of on hold sort of a bit of a thing it's. just sort of a way to gain leverage amount larger trade fight how do these sort of 2 tracks really really intercept or how are they separated all sources familiar with the trump administration that again trump had postponed this decision and this is only $12.00 weeks ago we were hearing that they were so close to reaching a deal and they had it and even the chinese that ministry of foreign affairs spokesperson said that u.s. was really misusing their state power to hurt foreign nations take
a listen to what he said. the advantage the u.s. uses state power to crack down on foreign companies and to interferes in market behaviors and frankly it will not be in the interests of the us itself the so-called mutual benefit of trade means that all industries keep their markets open and seek overall reciprocity and balance of interests it is on scientific and unprofessional for the us to simply think that it is always the one suffering losses in our trade relations therefore we cannot claim absolutely quality in all areas during trade negotiations but an agreement must create a 2 way equilibrium they're talking about equilibrium here and founder of wall way also issued a statement in chinese state media where he was interviewed saying the current practice of u.s. politicians and i'm sure makes our strength while wi-fi g. will absolutely not be affected so he's saying that they have a plan b. that google right now is working with wa wait during this grace period if you will to find a solution but this will affect a lot of huawei users they will no longer have access to g.-mail or youtube or even
google maps so again it's a really having an effect and to have an impact on people worldwide who have really rely on the wall way and use what way and will discuss is more but you know people are already saying maybe overblown but people are comparing this to a sort of iron curtain a sort of world divide people have to decide perhaps on the internet you go with the chinese infrastructure or u.s. infrastructure. and the people are very split with the 2 camps so definitely a story to follow up on. thank you so much for joining us thank you. and for more on how the trade war is affecting the markets we're joined by todd bubba horwitz above the trading and founder of 3 broad and c.e.o. of the burgess financial tom gandalf the thank you both for joining us. now tom listening things are great there you know it seems like people are sort of speculating assuming that this wall we move is just about leverage in the trade fight china seems to have on their side found another pressure point
a leveraging point. they're the world's largest supplier of rare earth minerals accounting for 90 percent of global production and the u.s. relies on 80 percent of their imports of those rare earth metals coming from china obviously very important to high tech industries electric vehicles when cell phones and the trumpet ministration did not include notably did not include these materials on the latest list of terror targets due to that reliance so how big of a point is this for china showing that they can squeeze outside customers for an customers on this critical input in the tech industry what do you make of the situation and who's going to lose out if these todd jones. well like most everything else that's related to the trade war everyone's gonna lose out eventually in some capacity in the trade war and till we get a resolution that's beneficial to both sides there's going to be a little bit of give and take for sure rare earth minerals are certainly very important to our tech industry and while it's true that chinese the chinese are are
and leading in production there are a number of other countries that trump has buddied up to recently that have significant stockpiles brazil and brazil is one they've got the 2nd largest stockpile in the country in the world minerals india's got significant stockpile as well as australia so certainly the chinese are looking for some leverage and the reason they're having to work from leverage is because all of the ability of the us has the trade imbalance and the u.s. is chinese china's largest customer that is the ultimate leverage and that's what the chinese are trying to counter in my estimation and this question can go to either of you but i'll direct it's a bugger for now because you deal with global markets obviously commodities are traded on a global basis but it's people are speculating now that if you have a world where the largest chinese tech manufacturer can't get us components and us
makers can't sell them that you'll have essentially an iron. to internet world is that even possible in a world where commodities all commodities imaginable are traded all around the world what would that world even look like baba. well i think when you look at it i meant that you can go either way i mean it can be done separately or it could be done together not again i believe they're going to eventually work something out and do something together however if they don't i think china ends up being the bigger loser i think more of the things that develop this country and of course a lot of their son has been built on this feeling of intellectual technologies and you look at the commodities space the only reason that commodities right now are priced lower than they have been in years is because of the oversupply and just the simple supply demand curve it really has not allowed to do with the tariffs or what's going on between the 2 countries at the end of the day between the 2 largest producers between brazil and between united states of soybeans there has not been
a crop disruption in 4 years so we've continued to stockpile imma dorie so no matter what product you have no matter what trade we're going on there's going to be a lower prices and i think the trade wars right now have been just an excuse for the politicians the lobbyist to try to push something through versus what's actually happening. so tom i'm wondering how companies will actually make their choices in a post while way band scenario we saw google actually respond very quickly by cutting off its ah cooperation with way on the android operating system but the ban really isn't acted by the u.s. and that's a very big question mark what can u.s. companies do well while idea to adjust to the new scenario now our live reports right now that are saying that paula has already been planning for life after google by telling their app gallery as an alternative to google's place to are to take one for example. you know i agree with what's already been said you know the chinese have a lot to lose here as does the u.s.
certainly as it comes to. trade bans. and all the saber rattling that we're hearing here a lot of it is policy scuse me political positioning in my opinion it's political positioning in an effort to get a deal both sides need a deal certainly if wall way. sort of goes it alone and some of their own or indeed developments in some of their own production in the u.s. companies we're going to feel the pinch here certainly some of the bigger companies qualcomm is one that over the last few days as the news broke that are going to struggle somewhat corning there's another that could have some some problems but ultimately huawei needs customers and the u.s. is the largest market in the world so sooner or later i think business and government will both find a way to make this work we do have a problem here that really is sort of hanging over the entire situation is that we
have systematic differences between the u.s. and china the chinese have a state run state dominated economy so their companies are actually heavily influenced or directed or owned by chinese government in the u.s. we have private business so certainly there are some different interests in mind here but the u.s. is taking the steps that it needs to they feel that they need to take to protect the interest of the country and the chinese are doing the same for themselves and on the back of that chinese right now is also being defensive they're becoming increasingly less reliant on us imports turning instead to brazil to fulfill its soybean demand an estimated $5500000.00 tons of soybeans traded over the past few days boosting premiums to more than double the levels seen earlier this month so china right now sending a clear message that it doesn't need the u.s. what about bias for us that can the u.s. if we find it necessary imports elsewhere. the u.s. can do fine without china china you know i've been doing this for 40 years and
whenever there was a problem as. because of the price the chinese are buying they don't buy there's plenty of customers and one thing we have to remember is the the population of the world continues to grow there's a need for food there's a need for soybeans a need for corn there's a need for a week and again the but as i said earlier the one biggest problem right now is there has been no supply disruption for over 4 years that has created dramatic supply the minute that starts at the window down all the sudden the price demand will go on higher and believe me china is going to have to buy us beings whether they are buying through argentina what they buy in through brazil where they buy into somebody else they're going to need you are soybeans and u.s. grain products because again there's only so much supply this isn't an unlimited supply and when the supply runs down and they can't buy from surveillance they're going to have to come to us no matter how they get them they will find a way and i know they've already bought some through the back door to begin with. so right now today looking at the relief rally it seems so temporary and right
because right now as we said this is only a temporary 90 day grace period that the u.s. tech companies have before they start winding down their operations with way now it really does seem like the trumpet ministrations just play a little cat and mouse game with the markets what do you think of this relief rally . i don't really think it's a cat and mouse game i think that the trump administration not only wants a deal with china and they're trying to do what they think that they can do to kick the can down the road just a little bit you know trying to be meeting with. about 30 days at the g. 20 i'm sure they'll have some dive of them some conversation i think that both sides absolutely recognize that something's got to get done and both the u.s. and china rather than whatever cages they can china doesn't have as many cages to rattle and that's the cold reality or above to mention the soybeans of why he's absolutely right there are plenty of customers china needs the u.s. and ultimately they're going to have to figure out a way to come to grips with the fact that they've got to do business with us and we
need them as well don't get me wrong this isn't a one sided affair but. deals got to get done in china recognizes that real real big interest for both sides to settle this tom gandalf you have 3 bridges financial and thought bubbles or where it's above the trading thank you both very much for your time and i do thanks for having me. time now for a quick break but hang here because when we return ford is failing back putting thousands of jobs at risk more and fix the car coach grabbed the wheel and we take a spin through auto markets across the world and as we go to break here are the numbers at the closing bell.
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yes of course some married one of them are possible that a member of the other people. after the previous stage of my career was over everyone wondered what i was going to do next the ball to. from clubs on one hand it is logical to sit in the home fields where everything is familiar on the other i want to be a new challenge and the fresh perspective i'm used to surprising. or not if you think. i'm going to talk about football not for you or else you think i was going to go. by the way what is it that's like here. is a tense situation in venezuela is still all over the news the problem in venezuela
is not that socialism has been poorly implemented but that socialism has been faithfully implement from the inside venezuela things were different we're going to announce sanctions against petroleum to venezuela associated. in a school that have a son of a moment to fill in the tempest and political battle so honestly at the present the magic of the moment the focus of the who story isn't new nixon called in henry kissinger to tell him that it would not be tolerated that in latin america an alternative economic and social system could take hold and therefore the policy would be to make the chilean economy scream so wants and making the economy of venezuela screed.
welcome back u.s. energy secretary rick perry says legislation that places sanctions on a controversial north stream to pipeline project will be elected in the not too distant future secretary perry noticeably chose to make the prediction about the russia germany pipeline in kiev while attending the inauguration of new ukrainian president volodymyr lewinsky mr perry flatly flatly predicted north room to sanctions legislation quote is going to the president and he will sign it according to reuters mr perris host the new president mr zelinsky told for mr perry to push for increased sanctions those sanctions if and acted would add to an existing list of significant u.s. sanctions against russia but comments from officials of all involved in the nordstrom to project seem intended to convey an attitude somewhere between concerned and keeping their eye on it. the u.s. imposed sanctions against the venezuelan government have had an enormous negative
impact on the country's economy the measures derived from private about access to international financial support and investments and its oil sectors it's no surprise that the new bolivarian got republic would try to find an alternative to the dollar for its international transactions last october they announced that venezuela would denominate oil transactions in europe not dollars and then in december the country disclose that they're working on a national crypto currency the peg to the value of the venezuelan oil essentially using crypto as a means to circumvent u.s. sanctions today and russia are in talks to use the ruble and the l. petro in mutual trade settlements as another medium of exchange this is a big step in abandoning the commonly used us dollar and country to country transactions and then as one of the hopes to avoid sanctions by disconnecting from the us dollar and the petro is an integral part of the process. since the petro is paid to a barrel of venezuelan oil it will be like swapping crude oil for imported products
for russia this is also beneficial as it will increase the use of the ruble in international trade and it will allow the ruble to shift from being a convertible currency into a reserve currency. department store well as continue as u.s. based calls and j.c. penney both reported incredibly disappointing earnings reports for the 1st quarter of this year tolls announced tuesday that sales of existing stores fell by 3.4 percent in the 1st quarter versus expectations of just a point 2 percent fall shares of coal fell by as much as 13 percent on tuesday on the news j.c. penney on the other hand reported a net loss of 46 cents per share on sales of $22560000.00 versus expected losses of $0.38 per share on the same revenue on the news penney shares were trying to trending down 8 percent and in another hit to the retail clothing game a center retail group announced monday that they would be shutting down $650.00 dressed foreign stores in the united states dress martin chief financial officer
steven taylor said of the decision this decision was difficult but necessary as a dress barn chain has not been operating at an acceptable level of profitability in today's retail environment following the announcement of the disclosures a center retail group's stock was down more than 5 percent meanwhile despite weak earnings for these department store giants and the closure of a large chain mainstays in the factor macy's nordstrom and dealers just between one and 2 percent. as the retail sector continues to take big hits the auto market is also seeing its fair share of rocky roads ahead to help us break it all down is lauren fix the car coach lauren welcome back. thank you for having me lauren let's just get right to it ford is. in the news again and not for the right reasons according to the
company will be slashing $7000.00 jobs worldwide that comes to about 10 percent of its salaried work force this restructuring will save about 600000000 dollars a year and while it's certainly going to impact workers in north america half of the cuts also will be distributed across south america russia and europe how has this impacted the company's stock and what do you make of this move does it make sense going forward. well it's a cost cutting measure i mean you're looking at about $900.00 jobs happening this week that are going to be salaried employees that will be let go where they have a lot levels of multilevel management so if you've got too much management and not enough people actually making money for the company you have to get rid of some of that access and that's what they're looking at right now some of these older large corporations have many levels of management if you're looking at general motors there are a few at chrysler and so they've started to whittle that away so they've got to keep people in key positions and less management teams underneath them where that's really going to be totaling over a period of years or according to like morgan stanley saying $1750000000.00 in that
savings should help their stock when they made the announcement the stock actually went up and so today it's been pretty flat but it needs to go back to where it is my personal opinion is i think that the current c.e.o. is all bent on going full electric and autonomous and i don't think that's going to happen they need to look at where their big money is their bread is buttered with series pickup trucks and large s.u.v.s and full series of s.u.v.s and they're doing that but they need to really focus on producing products that consumers want and electric vehicles are just not selling here i'm assuming and this is my prediction that in the near future you'll see joe heinrich's as your next president and he would be fabulous now onto a small ramp positively in positivity in the autumn market and i think trump has said that he would delay implementation of out a tariff on vehicles from the european union and japan in particular the auto industry has come out pretty strongly a. the president citing complex global supply chains for cars what do you make of
this delay and how are companies that reacting to this. i think that tariff delay is a good thing we need to start getting this north american free trade agreement back together again it's good for mexico it's good for canada we have vehicles being built in both locations and a lot of that there's a lot of movement from the supply chain going across all 3 countries what's really important is that both canada and mexico agreed to not do or tell you tory tariffs we both agreed to scrap them and that will help make it so it's easier to transport materials across the country lines also that $180.00 delay is also good for that but it's what it does do is it impacts europe and they're going to have to step up and reduce their tariffs because they're not part of this and they're going to see some big changes and i know that china is eventually going to have to vend to working out a deal with the united states because otherwise it's going to hurt their economy even further and learned we can't let you go without talking about their shares have lunch yet again and the company's stock is now hovering around $200.00 but
just 5 days ago it was at $230.00 what are your predictions for tess not going forward. i think we're going to have a 2nd quarter loss with tesla i mean it's great to say that he's got all these great ideas but people realize that this insurance company idea that he has is great only and idea only in order to get an insurance company approved you have to go through a lot of government hurdles and beyond that you have to be able to to get a reinsurance company to back it up we're not seeing that plus the fact that we're looking at a product that's not being purchased they have lost their federal tax credit here in the u.s. and across other countries they're no longer getting that same drive because you've got competitors such as jaguar and audi and mercedes really taking up by chunk of that business i think we're going to see a 2nd quarter loss and are going to watch that stock drop well below 200 and there's a lot of predictors that are that way it's not just me anymore i was the 1st one to call it but everyone started jump on the bandwagon and we also want to ask you before you go quickly about maven which viewers probably haven't heard about yet
but was g.m.'s attempt to get into what they're calling car sharing service not quite wide healing but car sharing they're ending operations about half of the markets they were in what did you make of this move the deciding to get into what they call car sharing and getting out is this is such that they can eventually succeed in or was this just not a good idea to begin with. i think right shearing sounds great nischelle leave but we have rental car companies all over the place people don't typically want to share their cars i mean you probably wouldn't want to share yours because people don't take care of their vehicles the same way you would take care of your own vehicle and so you're finding a lot of people not really taking on to that they like goober they like live from looking in other countries but here in the united states it just didn't take off well in new york and so they're only going to keep open detroit in los angeles for now i didn't think it was a great idea to begin with they just don't see a big drive toward ride sharing right hailing is different that's why you you know hail a cab or hello car service but this is i just don't think this idea is going to work out so well because there's way too many other factors that consumers don't feel
comfortable with it may not even take good grips anywhere or for that matter right brings you back to that old saying nobody washes a rented car right. exactly well abuse them lauren cooks the guard as always thank you for your time. thank you. and finally with the trade war escalating and the terrorists being felt most business owners the people of china have rallied behind a song to express their frustration with the u.s. the privately produced song trade war it was written by $1010.00 and it's going viral on chinese social media everywhere the song is set to the tune of the film tunnel war in which a chinese town defends its home from japanese invasions tunnel war is reminiscent of a similar situation that china is facing today and it reminds of people to stand strong in the face of conflict.
what sounds catchy i can see what's going on so this is actually was what was found on social media everywhere it started on we chat and essentially what they're saying is that this is actually a people's war because in the u.s. as well the consumers are and the business owners they have the brunt of the tariff burdens so this isn't president trump where he doesn't feel anything it's more of the business owners who have to like pay higher prices for their goods consumers who now we have to pay like double sometimes to get imported goods and this is been another theme that in the reporting the chinese leaders are themselves apprehensive about stoking this too much because they think that nationalism could get so strong that it actually could tie their hands and make it more difficult to make. you know deal with trump that may not look as good to the public if it were in their
interest fascinating that's it for this time you can get boom bust on direct t.v. channel through turn one dish network channel to 84 streaming 247-3651 pluto t.v. the free t.v. channel 132 or as always hit us up but you. dot com slash who must see you next on . our chime in the us in training an endgame the battle lines have been drawn and demands made in this trade war it appears both sides are preparing for the long haul what does it mean to win a trade war what does it mean to lose and how far could those test.
lakes is and see it forms part of a high altitude nature reserve. it's one of the famous chito room indonesia's principal waterway starts its journey. but you've got to be summed it up to that oh my gosh they're picking up close up. it runs 300 kilometers from source to mouth and there are over $200.00 industrial facilities range known as bangers. i'm out on your muscle. to do 3 things. i might get out of them and to be with. the room irrigated scoop of 4000 rice fields and supplies drinking water to 25000000 people. at the one point yes or so made by so many of us about us
a member of our people. i max kaiser one more of my guide to financial survival this is a guy. it's a device used by professional scallywags to earn money. that's right these are completely not accountable and we're just getting more and more to the. totally destabilize the global economy you need to protect yourself and get in for. he does hardest by these draconian laws are poor we. will not be stomached. community here is
we need to. think. 6 people have been confirmed dead hundreds more injured in post-election protests which erupted in the indonesian capital of jakarta. frustration and anger both in the u.k. and europe a spanish prime minister treason may tries for a 4th time brigs a deal over the line sweetening it this strong with a promise to end peace to hold a vote on a 2nd referendum if they back it. so as you propose to go to the polls in 24 hours tech john say there is no sign of any russian interference on the media.