tv Boom Bust RT June 19, 2019 3:30am-4:01am EDT
brecht was at the center of the infamous car wash scandal which was cited in the impeachment of president dilma rousseff and became a vehicle for the disqualification of popular former brazilian president lula da silva from the last presidential election digital messages recently published by the enter sept show that the judge in the lula carwash case assisted prosecutors while publicly insisting that he was impartial and involved that judge sergio morrow was named a so-called super justice minister by president gerald so narrow to petition the court for protection from creditors while it attempts to restructure $13000000000.00 in debt the court responded by giving the company management 60 days to deliver a plan. and indian authorities are moving to negotiate with foreign tech and credit card companies over the terms of regulations that require the firms to store their transaction data locally last year the reserve bank of india or r.b.i. imposed rules that require some firms to store their transaction data only in india
to make sure it is available when needed for review and investigation pushback from the u.s. side on those regulations include recent comments on the law from u.s. secretary of state mike pompei o who insisted on the free flow of information ahead of an official visit to india later this month on monday the indian commerce minister y'all and r.b.i. officials met with representatives of tech and credit card companies including the c.e.o. of master card. the ministry later released a statement that said indian officials quote assured the industry representatives that the reserve bank of india will look into this. and often overshadowed by the us china trade war is the brewing trade to between india and the united states similarly many may not realize just how integra india is to the global economy while most of us are aware that products are assembled in china and then distributed globally most obvious is the role that india has in terms of business integration in the world where china is widely recognized as an outsourcing destination for manufacturing as were. in the rust belt of the united states can
attest to india has shaped itself as a hub for service jobs and the rapidly developing knowledge economy according to the india brand equity foundation or ib if the service sector made up more than 54 percent of india's g.d.p. which comes out to more than $60000000000.00 worth of net service exports the service sector consists of many areas but notably among them is the communications sector which has seen a boost in the numbers of call service center jobs that have been outsourced to the nation also at the top of the a list of indian service sector jobs are tourism transport trade and construction so much like cheaper and manufacturing is on the line in the us is trade war with china could we soon see these services put on the line and get another front of a trade war here to dig a little deeper into the dilemma alan grayson former united states representative welcome to the show thank you congressman as we just noted the u.s. china trade war is making headlines but trade tension is increasing beats tween the u.s. and india as well on monday specifically the government indian government impose
tariffs on $28.00 u.s. products including all mines and apples valued at a relatively small amount $1400000000.00 in goods but it's noticeable notable that this happened despite superficial resemblance is and affinities between prime minister narendra modi and president trump and the u.s. and india is growing security alliance is this tariff decision that came despite those ties an indicator of where the u.s. india relationship is headed in the near future. well the president trump basically lurched into this crisis with india by randomly imposing tariffs on products just because he was familiar with what they were steel aluminum a lot of 19th century industrial products that india efforts to be very strong and so when he imposed those tariffs he may have thought that he was helping production in the midwest or whatever it is that a man like that thinks if you gave you called thinking what he was really doing was hitting certain countries in certain ways and india just happened to be in the
wrong place at the wrong time now for domestic reasons their government can't just take a hit they have to somehow indicate that they're standing up to trump so that's why they impose these tariffs retaliation this week but it's really much ado about nothing it's simply a blindfolded man staggering around with the sound in front of them and you know you mentioned those metal tariffs which. it's been under play but it's the hitting u.s. allies japan canada it's been an issue with mexico but also so the metal shares have had india as well but on the u.s. side the trumpet ministration also removed india from g s p trade preferences system was that a good move. well d.s.p. is basically a form of foreign aid what we do is we say there's certain products that are made by human beings in other countries and people who live close to the land and many cases we don't want those people out to pay tariffs because we're taking food out
of their mouths and keeping them from making a living so basically what's happened here is that they've decided looking at the situation with india in particular we've got a significant trade deficit with india about 20 now $30000000000.00 a year nothing like our trade deficit with china which is $400000000000.00 a year but they decided the india really didn't need that particular form of foreign aid it's not a bad decision it's not a good decision it's something with arguments on both sides ok fair enough and secretary of state mike pompei o is set to meet with the indian foreign minister on july july july june 28th and 29th ahead of the g 20 summit if you could write the briefing paper an agenda for the secretary what would you tell mr pompei about that meeting. well we have very few strategic interests bring us together with india either for or against so i think this gives the latitude to act as sort of a big brother for a country another democracy of 1000000000 people struggling to reach the modern age
what i would do is suggest that he discuss with prime minister modi the need that india include everybody in their development the government is sort of a hindu based government and has been a little bit rough on that already is of various kinds over the years he should make it clear that our experience is the only way to make everybody better off is to make everybody better off and then includes people who are been already is or otherwise less fortunate i also think that someone needs to point out to the prime minister that archaic banking system and poor public services are holding india back from its development. india needs a good health care system india needs a good transportation system india needs better public services of all kind and less corrupt public services of all kind and again the is something we tell him not because it's going to benefit us directly but because we have the experience of 300
years of industrialization and a great. standard of living that they aspire to in india and looking at sort of an economic game theory this us in india had $142000000000.00 in bilateral trade in 2018 according to the u.s. state department and as you note in yourselves more to the u.s. and vice versa they've got a $20000000000.00 trade surplus with the united states so they would seem to have more to lose from a fight but the indian chamber of commerce says that bilateral trade could reach as high as $500000000000.00 over the next 5 years and he also has the $600000000.00 internet users that companies like facebook and amazon would like to reach so they've got real assets here what's the real balance of power of interests here when india has so much growth potential. well certainly our major tech companies can grow substantially in india if india shows a greater respect for our intellectual property and that's probably the biggest single element of what's called going on here but the fact is that our trade with
india is minor very minor compared to our trade with europe or trade with china it's on par with our trade with australia and new zealand and it isn't a big factor in our trade deficit or anything similar to that essentially what they do in india is they import from china and export to us that's their whole thing and that includes services as well as goods that's reasonable it doesn't really hurt us in any way it does provide us with a different layer of cheap services that we would otherwise be able to get from a non english speaking country and trysting insights from former u.s. representative alan grayson thanks for your time thank you very much. and european central bank president mario draghi has signaled that they. is preparing a number of stimulus measures for consideration that is still why meeting yields on government bonds around the world fell on the news that the e.c.b. may pursue measures including buying bonds delaying an interest rate increase and perhaps going even farther with negative interest rates and currency markets the
euro fell against the dollar on the newsprint provoking us president donald trump to accuse mr draghi of pushing down the euro to improve their trade balance with the u.s. comparing druggies alleged tactics to china's mr drugs comments are resonating while the u.s. federal reserve. reserve begins a chill day meeting on tuesday president trump has badgered the fed for rate rate cuts and response a former fed vice president told the financial times fed policy quote should not be subject to orders from the president of the united states. time now for a quick break but hang here because when we return as china continues to bear the brunt of a trade war with the u.s. they are seeking new sources of foreign capital alex mahela bitches on hand today to sort out their fiscal horizon for people's republic. of the bull run this week rocky miller joins us today to give her take on the spike. stepping into the crypto space and as we go to break here the numbers of the.
and very well might continue watching on since last. kind of financial survival job today with money laundering 1st to visit this cash into 3 different. oh good this is a good start well we have our 3 banks all set up here maybe something in europe something in america something overseas in the cayman islands or do we do all these banks are complicit in north of congress to decide to call and say hey i'm ready to do some serious money laundering ok let's see how we did while we've got home got a nice luxury watch for max and for stacy oh beautiful jewelry how about. luxury automobile again for max you know what money laundering is highly illegal if you watch guys record. when the whole make this manufacture can be sentenced to public wealth. when the
ruling classes protect themselves. when the final merry go round lifts only the one percent. we can all middle of the room sick. leave the room. we came here where did you work before you came here what if you live. death row and in many us states capital punishment is still practiced convicted prisoners can spend years waiting for execution but most of the time the victims' families they are very much in fear for that there are some people because of what they do have given up their rights is this some even proven innocent years on death row but how
many more exonerations is it going to take before we as a society realize that this is not working and we actually do something about. welcome back to ali baba group has proposed a $1.00 to $8.00 stock split ahead of it as yet to be official listing in hong kong which could net $20000000000.00 for the online commerce giant the proposal for the stock split will be presented at the company's annual general meeting in hong kong on the 15th of july on the news ali baba's stock which is traded on the n.y.s.e. spiked 5 percent topping out just over one $168.00 meanwhile the chinese giant also made other moves on tuesday announcing the chief financial officer maggie wu will take over for executive vice chairman joe side overseeing the. strategic acquisitions and investment unit side will stay on to help woo in the new position
the announcement is the company's 1st shake up since 2018 when ali baba's co-founder jack ma said he would step down and be replaced by current c.e.o. daniel zhang as chairman of the company. and with no side to the u.s. china trade war china is shifting gears the country is moving away from its u.s. investments and joined forces with some american allies to boost its own economy are challenged television's in toronto with more welcome alex alex china's holdings of u.s. treasuries are at a 2 year low many are saying this is directly related to the trade war is it. best answer is probably yes china's sending signals to the u.s. we know that this war has gotten worse as time has progressed so you know a poke here or a poke there this is what we can do this is what we're not going to do that's what basically china say now according to the u.s. treasury department and this is sort of gives you an idea of what exactly china is doing the treasury department says china holdings of us notes bills and bonds
decreased by 7500000000 in april now if you look at the amount that actually china holds which is 1 point one trillion 7500000000 is not that much as mentioned it's just probably signaling and look it's 7 percent of all u.s. debt is held by china if china wanted to do the option that some people are talking about they're calling it the nuclear option while it would be a very different game if the debt interest rates that the u.s. are paying would go up that could american dollar would go down and that would be a real hit to the united states of america but let's look at the big picture a poor united states and united states that can't buy is not worth much to china it's the biggest market for its sales so china would like to see the states say stay healthy they would like to get out of this trade war sooner than later because the more money americans have to buy stuff i'm going to use the nice word stuff the more money that john is going to make because that it's their materials it's their
goods that's what you find at your local wal-mart and everywhere else so for china right now this is a poke here a poke they're telling the united states this is what we could do. but in the long run we want to see you be healthy and strong otherwise i mean if we keep pushing china to the corner you know what dragon want to get saying it gets really angry and you don't want to see that happen because you just could be one of those situations you cut off your nose to spite your face type of thing where china will say you know what we've had enough we'll go down in flames with you just to show you what we can do to you some signals definitely seen the beings seem to be being sent at the moment things don't look like they're getting better between the u.s. and china you know we did have this announcement that president trump will have a long meeting he said with president xi later this month so china's looking elsewhere to help its economy one of these places is arguably the u.s. this is greatest ally the u.k. what's going on there. you know the u.k.
when they see an opportunity they like to jump on it and this is one of those situations we're talking about the shanghai stock market and we're talking about british stocks or u.k. stocks being sold there and vice versa so it's an opening of markets to 2 different groups of people it's absolutely massive so when you look at this the u.k. listed firms will be the 1st among foreign firms to be listed on the shot in shanghai stock exchange this is this is huge and like i said you can be back and forth so the markets have opened up in a big way once but this goes down they're calling it the london shanghai stock connect and companies on both ends will benefit if this actually does push through and it looks like it's operating so you know what tightening up with the brits they're getting more money in from from europe that's exactly what's going to go down when more chinese companies are listed on the london exchange and vice a versa when the when the brits start giving more money and store buying companies and. the chinese buying british stocks as well and quickly france is also moving
into this void aren't they. yes they are so b. and p. part about one of the biggest bedsit breaks in france. china is opening up the scene what's happening with the u.s. so this bank they want to get into brokerage and wealth management services in china now this is because of this ongoing trade war china is loosening up a little bit saying hey we're going to allow the foreign banks to do more business here and since last november what we've seen is ability for 51 percent ownership in china of these type of services now we're seeing that this might even open up more it's just a pilot project in shanghai but once this happens that's more money for china interesting counter reactions and multipolar world argy correspondent alex middle of it's to explain it all thanks so much thank you. ben facebook finally made their foray into cryptocurrency official on tuesday revealing details of the newest virtual currency they've named libra as with most most crypto as you'll be able to
buy or sell libor online or at local exchanges users will also be able to spend the currency using 3rd party wallets or facebook's new wallets which will be built into what's app facebook messenger and of course their flagship app surprisingly the tech giant won't have full control of libor but will hold a single vote in the labor association a governing board of the founding members of association which currently includes $28.00 soon to be founding members from several different industries the members each put up $10000000.00 to join and include the likes of master card visa e-bay left vodafone and vodafone among others for those worried about security and facebook having endless access to your data the company will launch a subsidiary called coley that will ensure user privacy by never never collecting connecting libor payments with facebook data so it won't be used to target consumers with ads for more on this we're joined by bitsy and c.e.o. rocky miller rocky thanks for joining us. thank you rocky some analysts within the
crypto space have been quick to say this isn't actually a crypto currency but just a virtual currency what do you make of these initial details of libor and does that difference matter. yes it's definitely a virtual currency. based on low volatility assets that are going to be selected by what's called the reserve so in this association it will select the assets that goal and back. the crypto currency and essentially why this matters is it's not it's not pegged to a single currency so it will be asset backed and hence more of a virtual currency the interesting thing here is you know there's a lot of talk about it being a reason for less volatility but yet it'll be traded on exchanges and the initial founding members are all being paid in that libra and you know so that really comes to the question of incentives you know if you were i don't know about you but if i
was incentivized with something my expectation is that it's going up and we see they're taking big steps it's well these privacy concerns that facebook has always they will only have. concerns about their overweening influence will only have one vote and libor association they have launched a new company to make sure your purchases with libor aren't used to sell you advertisement does this increase trust in a new currency increase to trust a new currency put forward by one of the of the wards largest companies. yeah i don't know if it directly addresses that trust issues you know there's been a lot of instances where you know facebook has worked with 3rd party to purchase data and baelish more of its customer profile so they have known to have done that yes this one vote a separate subsidiary all of that i think helps and i think they're very aware of their image in the media with this so i think those things help but it's yet to be seen how you know how the information is not going to be used and if you think
about it it's still very centralised it's just moving from a centralized government to a centralized group of of large institutions and one of the benefits of libor is like other cryptocurrency. helping the unbanked other crypto and block train companies are out there working to do similar jobs how important is cryptocurrency for the unbanked. yes cryptocurrency has the ability to really you know explode and help you know folks that do not have traditional banking accounts and financial institutions supporting them but you know when it comes to this particular implementation again what's not clear at the white paper is how is one going to to create or are get an autograph in to say libra in order to you know get leverage you still have to have a bank account to go onto one of these exchanges to purchase libor token it does
then make it simpler to transact but i think that there's a lot of lofty ideas that are being talked about but the details on exactly how the implementation is going to work is still a lot to be seen yet. and over the last 3 the world's most popular crypto currency big coin has been on a remarkable run and over the weekend it clips $9000.00 so many analysts believe it was due to more institutional support which is also due to this impending announcement are we going to see continued confidence in bitcoin as to become more knowledgeable about kryptos because of a mainstream name like facebook getting behind it. yeah i mean if you think about it the last time crypto hit these types of values you know fidelity wasn't a trade was. t.d. ameritrade was in you know whole foods wasn't accepting bitcoin and wasn't accepting bitcoin and you know facebook wasn't competing with bitcoin so a lot has changed in the crypto sphere in
a very short amount of time and this institutional flow and awareness of the markets has certainly grown and continues to grow and so right you know given all of those years how high do you think it can go. predicting is definitely not something that i would recommend anyone to do or want to do their own research but you know if you if you look at some of the factors that have been contributing to it because it is also going to go into housing in less than a year or so every time in housing it's happened prices have surged because the supply is gone down the rewards have gone down and miners need to be incentivized to continue mining so that is definitely a factor money coming in geopolitical issues happening which make bitcoin a great flight for quality start store of value so all these all these factors are contributing and as you said the awareness of bitcoin is growing and that just amplifies all of these all of these things happening around the world and just to
put a point on it geo political factors are. fueling the rise of big points the trade wars. the trade wars issues yes issues with the you know instability in iran and tally and debt you name it you know that's why because it is a global nationalist currency rocky miller's. explaining it all thanks so much for your time thank you for having me. on the art world was rocked monday it was as it was announced that the 275 year old option house sotheby's was sold to french israeli telecommunications billionaire patrick draw he for 3700000000 dollars the telecom entrepreneur who initially approached saw the bees about the sale is an art collector himself and have been reportedly looking for ways to diversify his best investments outside of the sector where he made most of his fortune the auction house which will become public for the 1st time in 30 years was founded in one in 744 in hands how the long standing rival with christie's 759 the south china
morning post spoke with heavyweights in china's art collecting world with many of them seeing this as a positive buyers and sellers of fine art apparently like the prospect of the private auction house being free from sales and revenue disclosures. that's it for this time you can catch boom bust on direct t.v. channel 321 dish network channel 280 or streaming 247 on pluto t.v. the free t.v. channel 132 or as always get us up at you tube dot com slash boom bust our team see you next on. what is bitcoin coin is magic internet a new type of digital currency essential eyes digital scarcity chancellor i'm
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