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tv   Boom Bust  RT  June 19, 2019 8:30am-9:01am EDT

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side on those regulations include a recent comments on the law from 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 intense 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 recognised as an outsourcing destination for manufacturing as workers 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
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the india brand equity foundation or i b e f 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 between the u.s. and india as well on monday specifically the government indian government impose tariffs on 28 u.s.
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products including what 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 terror a 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 within the 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 that you can even call it thinking but 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 for domestic reasons their government can't
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just take a hit they have to somehow indicate that they're standing up to trump so that's why they impose these tariffs in 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 played 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 in many cases we don't want those people let's 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
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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 a bad decision it's not a good decision it's something with arguments on both sides ok fair enough and secretary of state like peo 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
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what i would do is suggest that he discuss with prime minister modi the need that india include everybody and their development the government is sort of a hindu based government and has been a little bit rough on the 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
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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 noted india sells 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
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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 for 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
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to accuse mr draghi of pushing down the euro to improve their trade balance with the us comparing druggies alleged tactics to china's mr drugs comments are resonating while the us 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. run this week rocky miller joins us today to give her take on the spike. stepping into the kryptos phase and as we go to break here the numbers at the close.
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today we're going 1st to visit the 3 different. started well we have our 3. you're going to america something over. frankfurt for. the kleptocracy who decide to give me a call and say hey i'm ready to do some serious money laundering ok let's see how we did while we've got a nice luxury watch for max and for stacy old beautiful jewelry and how about. a luxury automobile again for max do you know what money laundering is highly illegal
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for a watch has a record. please. please please please.
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and a very warm welcome to you you're watching i since last. this hard to take so from somebody if you know have someone replacing. the want to do this interview today i want to use market motion that they take me.
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serious. so i'm going to tell you stop selling drugs if we'll hire someone to put the money in a box. they judge me all the way to life it's almost been basically a color speech before the words do you guys know what suited me security positions open without david jack me again. you see people getting all their cars and i'll see you coming in the herd and it seems like they'll hurry up and run into the house like they don't want to they don't want to talk see her get your mail or anything like that. i just want to. do is. just try reading. some give me.
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welcome back to l.a. bob a group has proposed a $1.00 to $8.00 stock split ahead of the 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 alibaba 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 that chief financial officer maggie wu will take over for executive vice chairman joe side overseeing the company's strategic acquisitions and investment unit side will say 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.
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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 to televisions in toronto with more welcome alex alex you china is a 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 sending signals to the us we know that this war has gotten worse as time has progressed so you know a poke here 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 us 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 7.5.
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bill it is not that much as much as it's just probably signaling and look at 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 will 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 of 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 they 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 the 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
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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 is 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.
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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 shaw shanghai stock exchange this is this is huge and like i said it can be back and forth so the markets have opened up in a big way once that 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 as the chinese buying british stocks as well and quickly france is also moving into this void aren't they. yes they are so b.m.p. part about one of the biggest benson breaks in france. china's opening up the scene
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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's 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 as 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 counterreaction and multipolar world our correspondent alex a hell of it to explain it all thanks so much thank you. then facebook finally made their foray into crypto currency official on tuesday revealing details of the newest virtual currency they've named libra with militant 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. it will be
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built into what's up facebook messenger and of course their flagship app surprisingly the tech giant won't have full control of libra but will hold a single vote in the libor 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 joining and include the likes of master card. list vodafone and vodafone among others for those worried about security and facebook having 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. 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
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a virtual currency what do you make of these initial details of libor and does the 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 and this is the will select the assets that goal and back libra 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 you know being paid in that in 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 as well these privacy concerns that facebook
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has always they will only have. concerns about their over winning influence a lonely 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 increased 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 advertisers to purchase data and embellished more of its customer profile so they have known to have you know 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 centralized it's just moving from a centralized government to a centralized group of of the large institutions and one of the benefits of libor
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is like other cryptocurrency is helping the unbanked other crypto and block train companies are out there working to do similar jobs how important is crypto currency for the unbanked. yes crypto currency 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 in the white paper is how is one going to to create or are get an autograph into 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 the 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
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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 to become more knowledgeable about crypto because of a mainstream name like facebook getting behind it. yeah i mean if you think about it the last time crypto hit had these types of values you know fidelity was a. trade was. t.d. ameritrade was in you know whole foods was in 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 running you know given all
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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 but 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 to 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 create 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 all of these all of these things happening around the world and just to put a point on it geo political factors your. feeling there was a big point that's the trade wars were. the trade war is issues yes issues with the
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you know instability in iraq and tally and data you name it but you know that's why because it is a global nationalist currency rocky miller is c.e.o. of bits of displaying 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 auction house sotheby's was sold to french israeli telecommunications billionaire patrick draw he for 3700000000 dollars the telecom entrepreneur who initially approached sotheby's 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 and has had a longstanding 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
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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 t.v. channel 132 or as always it is up at youtube dot com bust so you next time. we had one man 3540 years old. this child in the water. some 30 fisherman later in this leapt. understood.
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that he wanted to move ahead. and i thought my feet will stop when and what the most. i believe that this is one of the therapy is to. tama. absurd to really harsh things that happen in life. and. join me every thursday on the alex salmond show and i'll be speaking to us from the world of politics sports business i'm show business i'll see you then. is trump winning can he be reelected based on his record there are many other questions as trump seeks to remain in the white house will the democrats run against trump as opposed to challenging his record in office how the democrats
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learned anything from the electorate since their crushing defeat 2016. why a paradise with so much all year round turned into a round the experimentation field the agricultural chemicals we know that these chemicals have consequences they are major irritants there's no question otherwise why would that the chemical company workers themselves be geared up and suited up locals attempt to combat the on regulated experiments but often in day you have many of these people where one foot into the biotech pharma and the other foot in the government regulatory bodies this kind of collusion is reprehensible while the battle goes on the chemicals continue to poison hawaii and its people so one has to ask the question whether there is a form of environmental races going on in hawaii whether these companies feel they
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can get away with this because the people have less political power.
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this hour's headlines story prosecutors charged 4 suspects over there are alleged involvement in the dawning of malaysia flight m h 17 over eastern ukraine in 24. also coming on the program position the party is accused of humanitarian aid money unquote hotels drugs and prostitutes. while boris johnson leads the race to be britain's next prime minister despite past remarks coming back to haunt him 2 more days and see the remaining hopefuls with a.

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