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tv   Boom Bust  RT  June 27, 2019 3:30am-4:01am EDT

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people but probably. another bad mother turn in the response and all that has been in the spotlight i thought a fact that lauren fix the car thoughtful and get into the driver's seat fed us how the real canadian coming off the world famous company finally ends in the persian gulf are still tumultuous the us has jumped on the opportunity r.t. if it is having their joint program today to begin american oil exports in the wake of security concerns in the. south a day to let go and die right at. the setting of the stage for trade talks between presidents trump and she leads our global report today as the united states and china jostle ahead of the g 20 summit in osaka japan u.s. treasury secretary steven newton made headlines when he told c.n.n. b.b.c. quote we were we were about 90 percent of the way there and i think there's a path to complete this hasty reports of progress were later revised when reporters and critics to note of mr newton's critical use of the past tense in the 90 percent
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comments now a clarification reduced mr nugent's comments to a very good expression of hope bloomberg cited unnamed u.s. sources suggesting that the white house could pledge in osaka to suspend pending tariff increases in the meantime speculation over the talks is obscuring other issues on the g 20 agenda much as the terror of fight is shadowing the global economy. canada also wants to see this trade deal get done to try to country has been stuck in the middle of a fight between the u.s. and china since its attained an executive from china's tech giant weiwei on the request of u.s. authorities now an all out meat ban imposed by china against canada is adding to the souring relationship between the 2 nations our g.'s alex mahela joins us along with more alex china has been angry at canada since the detention of. one jew some canadians say that they have been punished with everything from the dissension of its citizens in china to trade issues now we're hearing that china is
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putting a ban an all out ban on canadian meat what's the latest. well i mean this is massive for canada 2nd largest trading partner we're talking about china a lot of our agricultural products go there so this is a major hit now here's the reasoning behind this china says that canada out of canada some of the meat products that been sent to china had forged certificates so forged custom certificates and here is the sticking point and what really is taking off the chinese is the fact that rock pommy scientists out there who probably would be really angry at my pronunciation of iraq to palming it which is the residue that was found on this meat by chinese authorities that is the issue now this stuff is used in veterinary drugs and food additives here in canada as well as the united states but it's not allowed in china they have health concerns over that which might make you think if you live in canada in the states and eat pork this could be
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something that we might want to look into as well but anyway back to china so that's we're trying to said you know what this is not cool we don't want to have any of these kind of products coming over canada right now we're nobody here saying that this has anything to do with why we see a phobia being locked up or with the trade war this looks like it's actually a real thing now even the canadian government has said that. yeah this type of stuff has happened in the past but not to get a great stent but china wants the canadian government to take this seriously here is a quote from the chinese embassy in canada they're saying we hope the canadian side would attach great importance to this incident complete the investigation as soon as possible and take effective measures to ensure the safety of food exports to china in a more responsible manner the canadian government has already started an investigation which means they are taking this seriously so this could be a situation where china is not just you know barking out things like why canada has accused it in the past this might be the real deal now of china being kind of the
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2nd largest trading partner after the u.s. this must be painful for the country's economy what makes canada as. well this is very painful the for the account economy especially when you talk about agriculture which means we talk about farmers so 2017 canada exported $292000000.00 worth of pork in products to china so this is just a facet of the meat that's going over there and as you know china and a lot of asia right now has been stricken with the african swine fever that means that they actually need more meat than ever before and now canada which has sort of taken the place of the u.s. because of the tariff war there is getting doing hard so that's going to be put to a stop we already know that canola products from canada have been put to a stop so that's we're doing now as for your question what is canada going to do well canada has already gone to president trump the prime ministers asked him to talk on its behalf one meets with at the g. 20 summit in japan that's our hope they were putting all our hopes on donald trump right now we're hoping that he addresses the people that are that have been
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detained in china that were canadian citizens and we also hope that he addresses the wall way situation and of course the trading situation that we're having with china which does not look good at this moment we just want to go away here in canada that would be the best thing possible just seems to get more complicated by the day our g. correspondent alex mahela bitch thank you very time. thank you. china managed to dodge trans terror tactics by rerouting billions of dollars worth of china made goods through other countries especially those such as vietnam thailand and malaysia the trump administration is clearly frustrated by this practice of trance shipment which threatens to cripple u.s. plans as it prepares to add an additional $300000000000.00 worth of tariffs on chinese exports ranging from toys to electronics washington's campaign to sloppiness of duties on chinese goods that the u.s. commerce department identified as being transferred ship has been ineffective at best as trade data indicates in the january through may period exports to the us
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rose 54.4 percent year over year compared with a 6.7 percent rise globally at the same time imports from china rose 29 percent around twice the pace posted for worldwide imports an original as always is now singling out vietnam as almost the single worst abuser of everybody and indicates that he is considering tariffs on vietnamese goods as well in the meantime vietnam is clearly benefiting from these trade tensions as americans and u.s. brands are also looking to see what they can make in vietnam so they don't have to pass on higher prices to american shoppers. while vietnam is benefiting from attention received from businesses in china and the u.s. it is also seeking the approval of the european union e.u. ministers on tuesday approved a landmark free trade agreement with vietnam which will reduce tariffs on 99 percent of goods over a period of 10 years the 2 parties will sign the agreement in hanoi on sunday but will still need the approval of the european parliament this is the most ambitious
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free trade deal ever concluded with a developing country through the accord vietnam will secure quotas for pat farm products such as rice garlic and sugar while the e.u. will benefit from the elimination of very high import duties this agreement will also open up public procurement and services markets for post post banking and the maritime sector. the carry trade has been one of the investors top plays of 2019 returning on average by point 5 percent so far this year this strategy involves boring currencies where interest rates are low in order to investing countries and emerging markets where yields are high pocketing the entire spread the current environment has been perfect with the ball being crushed and the central banks now hitting pause on interest rate rises let's take a look at some of the key currencies. the russian ruble is up over 7 percent against the us dollar after a large appreciation in december 28th seen however many investors are still wary
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for the potential of a currency depreciation as it is still highly dependent on the state of the oil markets over in japan the yen is one of the best performing currencies this year and it could actually strengthen further in the coming months the us is one of japan's largest trading partners meaning that the yen is highly sensitive to the u.s. demand for japanese like onyx and cars it is also a safety currency that many investors fled to between the china and the u.s. trade wars the c.n. why and china has also strengthened in the past week after it had come under scrutiny from washington who accused it of artificially devaluing the currency in order to make exports cheaper and more attractive it is now back up comfortably at $6.88 for one u.s. dollar over enron the reality is trading down in the free market near an all time * low as annual inflation is near 50 percent the reality is severely devalued losing its value over 4 fold in relation to the dollar as a result of stringent economic sanctions over the last 15 months and over in turkey
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the lira has suffered its worst fears in nearly 2 decades in 20 teens but it has been deemed the comeback kid this year with investors barring the u.s. dollar and investing in the lira and returning over 6 percent from the carry trade the lira is now up and rebounding with the central bank expected to leave its key interest rates unchanged at 24 percent and finally break wind rally past 13000 just 5 days after breaking 10000 the all coin markets followed up with many of the top 20 all points pushing double digit gains on the day now let's turn over to daniel from our thanks chris to turning to was strong europe in the americas we start in the united kingdom where the pound sterling is down against the dollar at midweek perhaps no surprise there is a u.k. models to brag sits and waits to see who their new prime minister will be on the continent the euro used in 20. 3 countries around europe is also edging down against the dollar since monday on to the americas where the argentine peso which
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has been on a bad slide for some time is showing some perhaps surprising stability this week since monday against the dollar and in the united states we turn to a different standard measuring the dollar against the euro and on that score the world's main reserve currency is up against the euro holding up after indications last week from the u.s. federal reserve that lower interest rates are on the way and despite growing signs that the u.s. economy may be slowing down there is your global currency you up for the week. time now for a quick break here because when we return another day another turn in the nissan scandal that has been in the spotlight of the auto sector lauren fix the car coach will get into the driver's seat to spend us through how the wheels may be coming off the wall they missed company and later tensions in the parting gulf are still small to us the u.s. has jumped on the opportunity. haven't joined the program today these days until american exports in the wake of security concerns. and as we get
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a break here the numbers. every single day economic problems every single number every single statistic every single market reactions to a lower rate that it's like an alcoholic drinks when they drink when they're drunk because they drink because they drink because. they just drink drink drink. whether the economy is expanding whether. tracting pool of president doesn't matter is dog bit out is wife is going to lower rates makes no difference that's the only
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thing they did. was hard to take so from somebody if you know have someone replacing. we're going to do this interview today and all these market move and then they take me. off the area. so i'm going to tell you stop selling drugs if we'll hire somebody put the money in a box. then judge me all the way in life it's almost been basically a color speech before the words do you guys know what secret means security positions are going to be that. david jack me again. you see people get all their cars you know see you coming in the harness seems like they'll hurry up and run into the house like they don't want to they don't want to talk to your get your mail or anything like that.
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i just want to go. and do this. just try renaming. me now and then it's you know some give me. well services company technic f.m.c. has agreed to pay authorities in the united states and brazil more than $300000000.00 to settle charges that the company paid bribes to secure contracts and brazil and iraq officials at brazil's petro bras and the iraqi oil ministry were allegedly among the recipients of illicit payments from from technical prosecutors at the u.s. department of justice specifically accuse the london based company of conspiring to
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violate the foreign corrupt practices act now technically f.m.c. will pay roughly $82000000.00 to the u.s. and fines equal to $214000000.00 to brazilian authorities while the former consultant to subsidiary technic usa will admit to one count of violating the corrupt practices act the settlement marks the largest penalty for the company since one of technic f.m.c. is 2 predecessors technic as a paid $240000000.00 to settle settle a similar case in nigeria. and from one scandal to another japanese regulators reported are reportedly ready to propose a fine for nissan motor company a $4000000000.00 yen or roughly $37000000.00 for the a legit underreporting the former c.e.o. carlos gomez compensation japan certain securities and exchange surveyance commission is planning to recommend the fine because they believe goans under-reported salary had an impact on how investors evaluate the company going was
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arrested in tokyo in november over the allegations which include the underreporting of his salary by what $9100000000.00 yen or $84710000.00 over the decade he spent in the post going was also charged with transferring personal losses to nissan's books don't has been released from prison one on the charges all of which he denies joining us now to break this all down is lauren fix the car coach welcome morn. welcome thank you for having me laurin catches up on this corporate show proper here what is the latest scandal for those who haven't seen the last episode involving girls gone well we all believe that at least most of us in the auto industry believe that this is very unusual situation when you are a publicly held company such as nissan you have to disclose salaries of your executives we that's pretty much a known fact but now they are saying that he was taking money and it wasn't disclosed so now the country of japan is saying there's going to be some fines to
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pay for this and of course that was unexpected i think it's a coup personally and many of us in the industry believe that it was very strange that suddenly out of the blue a gentleman who saved me from going out of business by partnering with mitsubishi in reno and use utilizing similar platforms and technologies is someone they're now turning on and the reason we found this out is that carlos ghosn who was c.e.o. and on the board of both of these other companies wanted to get them into one company and of course japan didn't like that so in their effort to get him out of the position which i think they've gone pretty far beyond what most people would think they're now going to incur a very hefty fine because if they didn't disclose this in this truly is true japan's going to hit them with a very hard foreign. now do we expect this large find to actually hurt japan's number 2 automaker. oh i'm sure from the bottom line it's going to hurt think about have any time you get the word be in there for billions it's going to impact profits because obviously with the auto industry
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shrinking on a global basis right now and it doesn't like the stock market it goes up and down but when you're in a downturn right now we're just starting that slight downturn to lose billions of dollars about $37000000000.00 you are saying that is going to be a really large impact on the bottom line and sales are not so great for them right now they've got a mass exodus of executives at the corporate level there's a big shift in moving around of people leaving the sun here in the u.s. people coming over from europe and new people being added that could be a good thing for them but right now they would have to pay that fine if they find them to be guilty of that problem and lauren on the important internal corporate politics you're alluding to during new sons annual shareholder meeting on tuesday heroes psyco will was reelected to the company's board but also at the meeting he apologized to shareholders for the company's financial indiscretions and specifically the actions of mr go on mr psycho was said the company would move
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quickly to implement a new corporate governance structure which shareholders approved at the meeting in hopes of preventing another similar situation will these changes help to improve and the concessions he made helped to improve investor confidence in nissan. i think it will help investor confidence it may take a while a time you're looking to improve a company like this it's good for investors to support those efforts and those changes and voting them in is also good but still you still have to perform and show that these have made an improvement in the brand overall and the respect of that brand on a global basis and if that is true then you will see an improvement for nissan as far as from an asset base all the way around now renault who is the member of the world's largest car making alliance along with nissan and mitsubishi also drew the ire of shareholders the biggest issue being that the failed or not the chrysler deal which fell through due to trepidation from nissan chairman john dominic who was present at the meeting talked up how the deal would have created a substantial benefits to the alliance and it sounded like
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a real soap opera playing out here is there anything going to be done to strengthen the alliance mired in a controversy. well i'm sure once with a nissan makes these changes you'll see a big improvement on mitsubishi's trying to also be a part of the strengthening of this alliance as well as reno and i think if you add in f c a which i don't know if that's completely off the table but the reason it was off the table was more drama because the french government wanted to have a place at the table and more places at the table than they already have and you don't want the government getting involved in car manufacturing because they can't seem to get it right they didn't do it right in the u.k. they didn't do it right in germany and any time the government gets involved in running private industry it's never good for the shareholders and even in the case of the us when we had the us government involved with general motors it just wasn't a good mix now that they're out of g.m. g.m. could run as a standalone business which is the best way to operate excellent insider insights as always that's why they call in the car coach lauren fix things through and say
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thank you. in other regulatory news the d.o.j. has to close that it is pursuing a criminal investigation into price fixing in the chicken market the justice department's investigative interest in the issue was revealed when the department intervene in a pending civil suit brought by the new york food service company maple vale farms walmart and cisco a little later filed similar suits maple vale named $28.00 companies defendant in their complaint including industry majors purdue pilgrim's pride sanderson and tyson tyson industry trade publications report that those 4 company collectively controlled a majority of market share in the sector the d.o.j. specifically asked the court hearing the pending private suit to delay the disclosure process for 6 months while prosecutors present evidence to an impaneled grand jury as a prelude to a possible criminal charges. and global oil markets have been round by numerous
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factors in recent months perhaps none more important than the tension between the u.s. and iran this is cause fuel for oil coming through the strait of hormuz well now some buyers are finding a way around the turmoil are 2 producers joining us now with more side that is right daniel in the past week the world's tightest and more fragile choke point for the world trade the strait of hormuz has seen of activity and none of it has been good tankers have been attacked in the gulf of oman a u.s. military drone has been shot down and now even more sanctions on iran all adding to the hostility between washington and tehran and putting energy markets front and center of all this conflict and after new sanctions were announced again against iran this week u.s. crude oil climbed but not as much as you would expect u.s. crude today is hovering at around $59.23 just sub nearly $0.70 for. from
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yesterday now iran has contributed to the rising price of oil but interesting really not as much as we've seen historically when there is a major tension in the middle east now is take a look back back in 1973 an arab bargo an oil exports to nations supporting israel so oil prices rise around 400 percent 6 years later prices doubled during the iranian revolution and there was another 100 percent balance in $990.00 as iraqi tanks rolled into kuwait so why hasn't the latest conflict with iran cause greater alarm 1st iran export have not entirely dried up although as much lower levels are now iran still exports around $300000.00 barrels a day per month old are down from their $2500000.00 barrels per day just a year ago now the other big difference is the shift in the us from an energy
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importer to a net exporter in fact in 2018 the us are passable russia and saudi arabia as the largest oil producer and is currently producing an astonishing $12200000.00 barrels of oil per day which makes supply fears very minimal we're also seeing something very very interesting happening in the energy markets which is the difference in price difference between international and u.s. benchmarks which has narrowed and it's tension in the middle east there's now a less than a $7.00 difference between the 2 and the slimmest it has been since april and that's all because u.s. crude oil exports are in a big rise currently u.s. is exploiting her own close to 900000 barrels of world per day up almost more than $150000.00 from june of last year so if we don't have to buy a barrel of oil that comes through the strait of hormuz you certainly won't do so
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and we're seeing other countries like india. a leading purchaser of iranian crude which is now changed suppliers from iran to u.s. crude oil now all of this is extremely dynamic and could change any minute specially since opec exploiting countries plus russia are scheduled to meet next week to come up with a permanent solution to iran's oil cuts. back r u r g producers say it's alan carr thanks very time. nike has stopped the sale of a line of limited edition sneakers in china after the designer indicated support for the hong kong protest against the proposed extradition bill chinese retailers stop the sale of shoes which were designed in partnership between nike and undercover the studio of designer june talk a ha she after undercover posted a photo of insta on instagram of protesters with the words no extradition to china chinese instagram users took issue with the post which was deleted undercover said
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the post was an individual opinion and should not have been posted at all but now faces backlash from chinese consumers who are calling for a boycott of the brand the limited release nature of the issues means that it won't likely affect nike's market share in china the company has recently witnessed growth in china saying 18 percent spike in sales in 28 teams from the previous year this is very interesting kristie you know corporate consultants have talked about controversies in the united states obviously it may be the biggest one being calling cap or nick getting his endorsement deal and they've you know consultants warren warren brands they say wading into social issues can be a winner it can be a loser but it's always very dangerous. they seem to absorb that was and but in this case you can account for perhaps if the designer goes out as in this case and expresses an opinion that it is anger is a major market yes but nike has also been known to support these very controversial issues but the problem is right now that they are doing business in china and the fact is they actually have not issued any formal letter of apology or any formal
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statement for that matter to its consumers so that's why the consumers of china are actually taking up to instagram and nike and nike is instagram and posting very serious comments asking for undercover to actually pull out of china entirely because why should they benefit and make money off of chinese consumers when they are making these messages against the chinese consumers by no one wants to. is a huge market over just one shoe exactly and this isn't the 1st time we've seen that gap also did something very similar and they paid a very happy price for it seeing their corporate stock share price drop. that's it by this time you can catch mon bust on directv channel 321 dish network out to 80 or streaming 247 and put a t.v. the free t.v. at channel 130 to war as always have us over youtube dot com slash will start to see you next on.
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good food descriptions sound up to tell using even for the owners so how to choose just pet food industry is telling us what to feed our pets really more based on what they want to sell us then what's necessarily good for the pet turns out that food may not be associate this people believe we have animals that have you know diabetes in arthritis they have auto immune disorders they can't allergies we are actually creating these problems it's a huge epidemic of toms all of them i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pets last treats
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the larger corporations are not very interested in proving or disproving the value of their food because they're already making it a $1000000000.00 on it and there's no reason to do that research. in the lead a showdown between washington and tehran there is no regional ally to restrain the u.s. is worse tendencies. barbs treated and sanctions imposed what can stop the us from sliding into yet another middle east war. as we speak large organize care of it are on the march to the united states. and then 70 and a player coming out for killing their. main slaughtering dad. this
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is a virtual invasion of our country. so far because in anything we see. that i'm at the end up in what i meant there are a felony of no hope for nothing up on the farm about the whole thing you know it's going to sound good in. a nice powerful. as you do is you know we're going to see a more real goes you know a lot of suspicion for a player for 20. my god i believe under god.
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the. president tried to threaten china with more terrorists while the u.s. agriculture. country says american farmers are bearing the brunt of the trade war. american farmer. in this trade war i think they are one of the casualties they are the trade issue of the. iranian foreign minister accuses trump of violating international law and resorting to politics with his threats to obliterate iran. president from your members. and a washing powder. outrage in pakistan by challenging traditional values and promoting
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