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tv   Boom Bust  RT  August 24, 2019 1:30pm-2:01pm EDT

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for each episode in this long running reality show us president don't trump lashed out on twitter among other things mr trump said quote our great american companies are hereby ordered to immediately start looking for an alternative to china and that he was ordering the u.s. postal service and private shipping companies to search packages from china for the illicit opioid fence and all trump also tweeted out a remarkable attack on federal reserve chairman jay powell will have more on that and more importantly mr powell is much anticipated speech later in the show. and joining us now to break down just one of the important stakeholder sectors affected by the latest move automobiles we are fortunate to be joined by the car coach lauren fix welcome back lauren and. first let's just get into the details of this move with regard to autos what will be the new tariff level on u.s. cars and when will it kick in ok september 1st is going to be the 1st tariff level this is sort of a tit for tat because president trump put it terrifying china there are matching
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that tariff and again on december 15th they're going to increase the tariff on foods and goods we have to keep in mind as we are right on the cusp of the g. 7 and there's already we've already been told today that there's going to be meetings there with our people in china so we're expecting that maybe this is sort of china's way of saying we're not going to back down because president trump is not backing down and this is a good starting point and we're going to see that happening right away. i think by the time monday rolls around just like last monday we may see the market turn around so for everything we lost last friday at this time we were talking about it we may regain on monday that we're not 100 percent sure but it does say that china is not willing to back down and maybe we can find some happy medium because right now china was taking advantage of us for the longest time and finally we were able to stand up to them so let's see how this unfolds right and the timing certainly does seem to be strategic making this move on the edge of the g 7 and the sinking
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of the dates of their fact with those announced by the u.s. tariffs on september 1st and december 15th but how does this break down in terms of the distribution of losses and gains here for specific companies and perhaps sectors in countries where you have to member in the auto industry if they're sending vehicles over and they send them all over by september 1st they're number one selling vehicle they're importing are they're building there is a b.m.w. x 5 followed by the mercedes benz s.u.v.s and then beyond that we're looking at jeep and lincoln big seller for the m k c in the ford explorer it's interesting a lot of s.u.v.s are sold there so whatever is being built there is partially owned by a chinese car company of the be a tariff that's after september 1st if we don't have a deal by them my guess is that september 1st deadline was put there for a reason and that g 7 once it's all resolved i'm hoping that we will come up with some. amicable deal that both countries will be able to have
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a walk away shaking hands and smiling we can only hope but in that the impact of the auto industry is going to have to get suppliers elsewhere that does not turn around quickly if you're going to change a supplier for anything to change supplier takes weeks and weeks and weeks in order to make sure that you're getting the exact same product so i see i don't think we're going to see a difference in prices of 2 consumers on the lot i think you're going to see an impact possibly to the bottom line of some suppliers and some manufacturers and you alluded there to the reaction or the mindset within the car community and you certainly have an inside line there do you see or hear any indications that automakers may perhaps mobilize to call for some sensible resolution of this as we have seen some sectors and corporate leaders do if tentatively out of fear of how mr trump might react. well president trump did have general motors and a couple of their manufacturers in the white house last week and earlier this week and discussing not just climate and what's going on with california but also this
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tariff so i'm sure that the conversation is going on the only company that's really going to get hurt the most is tesla they're not building cars they're importing cars and and i don't think a lot of musk has got an open conversation with president trump's i don't know if every manufacturer is going to be able to put that much pressure on him to make a deal with china right and circling back to the u.s. and updating the story we've discussed before of the revolt by states in defense of mileage and clear air standards we covered that previously for major automakers sided with the states led by california on their side of the debate and against president trump on tuesday california governor gavin newsome said mercedes benz would join this coalition as well as a 6 company he declined to name the new york times cited 2 sources it recedes to confirm that claim as well as executives at his rumored but not named 6 company if both of those busy were to come on board b.m.w. in this mystery company they would represent
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a reported collective 40 percent of the u.s. market share so are we seeing the trump sort of negotiation and management style turn out to be about as effective in this negotiation as it has been in managing foreign trade. i don't think that's going to be the case 40 percent of the auto manufacturers is not going to cause president trump to make a change the everything's in the works for the changes in mid september we're going to see a release of the new regulations those will be the regulations that he expects to go into play he's going to fight california there's going to be one regulation for the whole country california should not be calling the shots for the other $49.00 states that's the way it's written in our constitution that is a huge problem when one state calls for everyone else which basically means somewhere around $3000.00 someone in kentucky is paying $3000.00 more than everybody else because they're paying for the california regulation manufacturers are very frustrated they planned well in advance to produce cars to meet multiple regulations and so what's probably going to come down and this is how i would
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almost guarantee it's going to come down they're going to put the regulations out in september someone in the 9th district in california is going to say it's illegal it's going to get tied up in the courts if president trump gets reelected he's going to win because that's the way it is one state cannot call the shots for the other 49 however if he's no longer the president and somebody else is in office that could cause california to win which make them even more power for because their goal is to get rid of all fossil fuels and that's not really possible because fossil fuels are in everything because these petro chemicals to make plastics and they use it in processing even glass so it's not it's there's no way this is going to happen excellent insight or insights as always from lauren fix the car coach thanks for joining us. thank you. and president trump is lobbing firecrackers at a major trade partner just as world leaders prepare to gather for the g. 7 world summit of the world's largest economies ahead of that summit french president emanuel necron post spoke in favor of adding the climate crisis and the
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devastating human set fires ravaging the amazon rain forest to the meeting agenda even worse for president jr balsam morrow of brazil president macron said he would block the european union's trade deal with brazil and the other 3 nations of south america's mercosur trading bloc over reneging on promises to protect the amazon a spokesperson for mr mccracken told the media the president can only conclude president wilson r.-o. lied to him at the isaak a summit in france has been a center of growing opposition among european farmers to the deal as well as ireland their irish taisha leo varda car took a sliding similar to mr mccrone in a statement that said quote there is no way that ireland will vote for the e.u. mercosur trade agreement if brazil does not honor its environmental commitment. and federal reserve chairman jerome powell said friday that the u.s. central bank is quote carefully watching developments in the economy adding that the fed would quote act as appropriate to sustain economic expansion the fed
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chairman acknowledged that terrorists in the ongoing trade were causing a slowing growth for the u.s. economy saying while monetary policy is a powerful tool that works to support consumer spending business investment and public confidence it cannot provide a settled rule book for international trade we can however try to look through what may be passing events focus on how trade developments are affecting the outlook and adjust our policy to promote our objectives while the fed announced a 25 basis point cut at the end of july the 1st reduction in more than a decade mr powell has yet to commit to another cut u.s. president donald trump was quick to respond to the comments on twitter saying as usual the fed did nothing is incredible that they can speak without knowing. or asking what i am doing which will be announced shortly we have a very strong dollar and a very weak fed i will work brilliantly with both and the us will do great following asking who is a bigger enemy to the us jay powell or chinese president xi jinping.
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it's sign for our weekly global stock market round up starting in moscow with the mo x. in russia that exchange is up for the week even though like many markets it took a significant fall on friday more than half a percent interesting that marks itself also released its 2nd quarter earnings report on friday recording an increase of net income of 21.3 percent and delivering record levels and commission income in shanghai the shanghai stock exchange also registered a net gain this week despite ongoing protests in hong kong meanwhile the new tech focused index of the shanghai market the stock market seems to be stabilizing after a month of operations with big gains right off the bat and then a 10 percent drop in their 3rd trading week in hong kong the hang seng index for the week also despite a fall a point 8 percent on thursday widely attributed to the purchase it persistent
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protest movement in japan the nikkei 225 the next also up for the week keeping the regional trend going and posting a strong gain a point 4 percent to close the trading week on friday moving from east asia to south asia the sensex index in mumbai breaks the regional trend posting a red arrow for this week a 1.4 percent drop on thursday also falling on friday making a run of 4 down days in a row to end the week in australia. for the week after a panicked 63000000000 dollars sell off last week interesting pattern over the week bouncing back from the sell off until stumbling on wednesday but still netting a green arrow by friday moving to africa and all shares that exchange is down for the week notably a board member of the troubled south african electric company ask warned earlier this week that even a point one percent growth and sunny out south african economy and consequent increases in demand for power. could cause widespread outages moving over to europe
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that cac is up for the week in france despite a loss of more than one percent on friday the vix index on the cac 40 they're taking a big leap of more than 7 percent to $18.00 a similar story at the dax in germany with a loss of more than one percent on friday notable weakness there in german auto stocks b.m.w. and i'm a chrysler both falling more than 3 percent on friday and jumping from the continent to the u.k. the footsie in london is also up for the week despite a one percent fall on thursday after minutes of the last federal reserve open market committee meeting in the united states were released in the americas starting in colombia the coal cap is down for the week following a familiar pattern that exchange fell by nearly a full percentage point on thursday and brazil the best buy is down for the week as well and as a reported early earlier the vaunted trade agreement between the e.u. and marcos or the brazilian president both so narrow and argentine president will reach a magri achieved seems very much in doubt after anger in europe over mr bolton are
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as failure to prove. the amazon rain forest and mr makki surprisingly poor performance in a presidential poll rolling into the homestretch in north america all 3 major new exchanges us exchanges down for the week not much of a surprise after recent events all 3 down by more than 2 percent for friday as we prepared to go to air with the tech heavy nasdaq down closer to 3 percent and finally end serato the t.s.a. defying the trend for the americas post our final green arrow for the week and this has been your global stock market wrap up. time now for a quick break but stay tuned because when we return the i.m.s. the largest loan ever has been under massive scrutiny in argentina with some rumblings that the presidential front runner could be hostile to the conditions of the bail out party correspondent alex mahela that just standing by to break down the candidates position and as we go to break. here are the market numbers of the
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close. this is the poseidon adventure mixed with the titanic in one colossal sinking of the global economy right now we've got donald trump starring what the ghost of paul newman on the bridge of the titanic watching as they engineer colazal failure of the global economy. cash cow and. alfonzo along. their situation page he's dard. his 1st
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words were had i was here a challenge the post you go to used to live. i have no doubt that what happened was criminal. defense concentrate market is a $1000000000.00 industry these companies have huge financial motivations to solve these problems there are numerous talking showing that doctors were keen to test facts re concentrates for infectivity on the patients gives them doctors the wrong stoplight. turn to stone why they would keep me from circuitry proces day. and people still think i am always question or so i write being far too late when so many have.
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when the whole make this manufacture consent to public wealth. when the ruling classes protect themselves. with the final merry go round if. we can all middle of the room. welcome back china's wall wave technologies announced friday that u.s.
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restrictions against the company will make less of an impact on their business than they had initially believed the cult telecom giant did add that being added to the so called entities list will lower their smartphone revenue by $10000000000.00 in 2019 while we see oh ranjan fay said in june that the world's 2nd largest smartphone manufacture expected a loss of 30000000000 dollars this year that would have been a large chunk of the company's $100.00 business on friday while we also introduced a new high end artificial intelligence processor the ascend $910.00 in hopes of easing reliance on us chip manufacturers during an event at the company's shenzhen headquarters deputy chairman eric shoe called it the industry's most powerful ai process. and the value of china's currency the renminbi fell to 11 year lows against the us dollar on friday as trade tensions which mean the. i did states and china continue to take new twists and turns sentiment among traders was fragile
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amid concerns over tariffs imposed by the u.s. that are set to take effect on the 1st of september amid the u.s. labeling china currency manipulator earlier this month china's official. r.n.b. fall to its weakest level since march of 2018 the fall of the r. and b. follows interest rate cuts by the people's bank of china earlier this week the chinese central bank set the new one year lending rate of 4.25 percent down from $4.00 and hopes of manifesting economic growth. and european antitrust regulators have started to prepare their investigation into facebook's plan digital currency libra according to a report from bloomberg regulators will be looking at whether facebook is creating quote competition restrictions in regards to their use of consumer data and information according to the report regulators will also be looking into the end to gratian of libor while it's in to what's app and facebook's messenger apps to break
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down the regulatory landscape of facebook's foray into then tech is international regulatory and attorney miles edwards miles when it comes to libor what exactly we mentioned some of them what can you spell out the antitrust concerns more in more detail that are coming from the regulators sure so as you referenced before on monday the united kingdom information commission office i.c.a.o. published a statement. illustrating there are concerns not only over facebook but over libra so they're really fall into 2 categories the 1st category is privacy and the handling of personal financial information but the greatest concern is over libra and the way they feel is right now we have facebook dominating advertising on social media and they believe that if you impose libra it's going to be a situation where advertisers going to be force to adopt libra and use
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libra as a currency and that it's going to affectively shut out any other competition that's out there because you're dominating access to the platform and you're also dominating the currency that's being used so there's a great deal of concern across europe over this item specifically right and you mentioned the u.k. regulators in this case but france and germany have also been very noticeable in sounding the alarm about libra saying that along those lines of what you're saying facebook could become a shadow bank with its own currency unpack that for us the criticisms from france and germany. right so we step back a little bit facebook made a very disturbing statement about a month ago and they said that they wanted libra to be a global id a global driver's license that everybody can use and so when you look at france
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specifically they have great concerns about this have the great concerns about privacy and personal information really being controlled by facebook but on another level they have concerns over libra which is essentially without a doubt a crypto currency and when they mean a shadow bank they mean a currency that is not going to be transparent that government regulators cannot look at and which in some cases as we've seen with the dark web and other places that use bitcoin for example some of the ferias and perhaps illegal activity could occur using libra but the most important thing is the inability of governments to not only control it but to tax it and if you have no transparency and you don't see what transactions are occurring then you don't have a mechanism in place to tax those transactions and turning back to the u.s. the house financial services committee in the house of representatives has already
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held hearings on libor did anything productive come out of those. no i really don't believe so and what's really disturbing daniel about that is that if you look at how facebook is presenting itself they are now actually employing a large amount of former government officials and elected representatives as a lobbyist some fact all 4 of them amazon facebook. and google specifically spent over 55000000 dollars this year just on lobbying efforts and if you look at the $283.00 lobbyists that are associated with those companies 75 percent were former elected officials so i believe that nothing major is going to occur but i also believe that facebook is actively having behind the scenes discussions in order to make sure that they can continue really business as usual
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here in the united states right and you know the revolving door is a well recognized sort of defacto respected ritual tradition here in the united states of officials going from being regulators to then being advocates for the industries and actors that they used to regulate plenty of stuff to dive into we hope you'll join us again soon international regulatory attorney miles edwards thanks for joining us thank you. following a surprising result in argentina's primary elections earlier this month the country's likely next president alberto fernandez is promising that the nation will not default on its debt if he is voted in this fall archies alex mahela just following the story and he joins us from toronto good to see alex alex argentina has been suffering some instability and shocking surprises both politically and
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economically for years what is mr fernandez saying that he will do differently to help argentina recover from their current economic crisis. if elected in october in the election will be close to the end of october that he promises that there is no chance of a default on debt happening now this is a brother a large promise because much of this is really out of his hands it has to do with the creditors in the i.m.f. the fact of the matter is what he's looking at is now sitting down at the table and renegotiating our to put it basically new stipulations on the loans that exist as well as moving forward with whatever other plan he has this man believes that he wants to push it argentina to a different direction when it comes to economics so a lot of people also are very skeptical about that and that has affected the currency no get to that but look at argentina itself and this is a country a country that we're not only seeing recession we're seeing inflation it's
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a lot of issues going on there with that as well as the fact that that creates a scenario where it's very difficult to pay debt now never mind that what we're talking about the recession inflation and last week the currency dropped by 18 percent and that comes down to the whole fact of interventionist economics a lot of creditors are worried about seeing this happen again and some people in fernanda says teams were involved in the on the these type of initiatives in the past but fernando says don't worry about that i'm not a man that will be easily influenced i have my own plans to move ahead so looking at the status of the i.m.f. right now we know there was a massive massive loan last year the biggest i'm of history the agreement last year is worth $57000000000.00 of fernandez he's been criticizing this he basically believes this agreement argentina is just bad for the country and the austerity measures have been way too harsh we know that the i.m.f.
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is actually sending people into argentina next week to talk about the deal from the past and to see how argentina can move forward and i. and unlike the problems on land offshore from argentina there seems to me some potential for making money as argentine norwegian partnership to grow in carbon exploration can you just quickly tell us about that we all know what hydrocarbon current exploration mean is its oil oil always seems to be the clip where you to a direction you turn into if you want to make money and this is exactly what's happening here so we have 2 companies that norwegian company by the name of corn or it's signed a deal with argentina why i p f now here's a map of this map basically will tell you exactly what's going on here the 2 are exploring an area under they can 100 license giving the axis to 2 over 5790 square miles that's about 15000 square kilometers in the north argentinean base and these guys as you can see on the map have already joined forces on 2 projects so
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far so they're opening fire lots of oil and of course to make that sort of money give me the wrap up from toronto the $1.00 desire is it's our g correspondent alex miller that's thank you thank you. and that's it for this time you can catch boom bust on you tube dot com slash boom bust r.t. see you next time. please. give me my best because that would get so is human and we said. just that. there's an awful lot in common i'm old but i'm also the most companies
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you know so i've been a kid who says you know. when i meet. his compass he must get almost home pianist even though he goes from getting notices to see he's just put you home to construct coke. time and i'm going to hit a safe enough to let me see him in the middle i don't like kind of this. little kid is he. always stay in this bundled in the middle but i will tell you a little. soda you. know men because he. is your officer. told you to get up off the ground sir began to get your. game face on the sounds of an mit grown man mislead
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a century. earlier. john. pushed it away from the officer. of his group. they obviously did a kind of lunge for the weapon. once missed and then when it happened on trace one as i was just hands didn't hit him i never saw any contact between the 2 and he kind of went back to where they were so the officers back here there try again 15 feet apart at this point and that's when the officer pulled out his gun and aimed it on 3. need to call me. i'm one no but i think you might. get one. body.
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deed. should have been there so. i don't want or i can just i mean yes i knew she needed that moved me and i did yeah i am question. he could feel that he had a ticking down when i made the move i want to follow the love young enough that i would have been proud of the. last. i.
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was. cameroon is hit by divisions rooted in its colonial past that's fears grow of civil war in the african nation. california adopts america's strictest law regulating the use of force by officers when making the arrests of the study showing that police use the 6 most common cause of death among young men in the.

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