tv Boom Bust RT October 4, 2019 5:30am-6:01am EDT
an economist to get his take on the international law and what we can expect on the horizon was the european central bank is back out of the scope of the make waves of its major risk right now the central bank is feeling some heat within the e.u. the way forward for the birth american business association is standing by to take you through the turbulence across the atlantic so much use so little time let's go . the u.s. equity markets dropped after the release of disappointing economic data adding to fears over the health of the global economy but it turns out that the old mantra good news is bad news once again holds true stocks got a panic bid up as the odds of an imminent rate soared above 90 percent now all 3 major u.s. indexes turn around from early market plunge to claw back to flat earlier this week posted its weakest readings on the manufacturing sector in more than 10 years this weakness raise concerns over the china u.s. trade wars impact on the economy expectations though were hopeful for
a bounce in the eyes and services data out today in order to save the market but today the i sense that his readings on the u.s. services sector fell last month to its lowest level since august of 2016 coming in at $52.00 expectations of $55.00 service oriented companies employ the vast majority of americans and registered the weakest growth in september in 3 years business production new orders grew more slowly and employment levels were essentially flat so between the 2 numbers now the pair of surveys clearly point to a sharp loss in momentum the services side is much larger than manufacturing accounting for about 80 percent of the u.s. economy manufacturing only makes up roughly 20 percent so many analysts came out and they didn't place too much emphasis on the manufacturing numbers earlier this week and they were overly dismissive of the weak reads they said that the market shouldn't panic yet manufacturing doesn't amount to much and services matters more and that's actually still expanding as the reading came in above 50 percent. and so
it sounds like we're at a pretty good place but let's get something straight here that simply and g.d.p. are not the same thing so let's remove the optimism bias and break it down while 86 percent of jobs are in the services economy manufacturing makes up a considerable majority of the s. and p. earnings 68 percent of the s. and p. compared to only 32 percent in services this means that corporate profits are more mainly factoring trippin and previously it was a strength of the us manufacturing economy that has been supporting our positive industrial sector views for the past decade they've got a huge tailwind from the u.s. energy that has brought greater access to cheaper energy sources and demand for instance structure the other big component that drives corporate profits is international trade while international trade only accounts for 10 percent of g.d.p. it's estimated that 40 to 50 percent of s.m.p. profits are earned overseas however that is a rapidly emerging market economies like china now with the trade war backdrop
international trade has been weak and u.s. corporates are starting to see they hit their bottom line so now with the 2 main drivers of corporate profits both getting pummeled are we in for a round of negative q 3 earnings and furthermore is this the start of another economic contraction. and earlier this week we had an opportunity to catch up with steve professor of economics unpatriotic and the author of can we avoid another financial crisis we started our conversation by talking about the economic slowdown in china despite the burst the slowdown the nation's economy is still growing the fastest of all the world's major economies we asked if this was sustainable. growth is if you actually look at a 6 percent rate of growth every year that means your economy doubles and saw as if . that sort of growth is possible when you're starting from the incredibly low base that china began with back in 80. when it got out of them our mal period and went
for export industrialize ocean quite brilliantly but ultimately you have to slow down and of course one of the side effects that rapid rate of growth has been an enormous increase in call for fundamentally called ice pollution so there's now a major shift in china's attitude away from the need to lift people said send it living up to improving the environment and i think that will be a major shang in the direction of china for the next 10 years and steve looking at on the other side of the pacific at the u.s. factory activity shrank inside timer to its weakest in more than a decade leaving a deepening worries about the impact of the trade war on the united states the manufacturing activity index showed a reading of $47.00 contrived for the 2nd month 2nd straight month below expectations have tariffed our way into a manufacturing recession for the united states quite possibly even with i'm not a great fan of free trade as you know but the right which has been putting up
tariffs has been disturbing global 'd supply chains and of course these days supply constraints are global there are about $100.00 countries involved in producing an apple i phone so with all the tariff disruption going on it's clearly going to be affecting the capacity of american industry to continue growing i don't see it as being unlike the 2008 down to them but it quite possibly is going to be a recession which the suddenly trumps tried was would have played a part. so right now and also starts making 4th quarter earnings to surprise the upside but terrorists are now just starting to hit the tech sector are we being too optimistic here. i think we are i mean we've got to realize we've been in an artificial economy for the last decade the economy has turned around by the fed pumping on q.e. right back in 2010 and if you use had an economy which has started to recover but can it can barely even cope with 2 percent rate of interest so i think that the
fragility is much greater than people. expect which we've created this is it's back in the not in sixty's it's not it's a very different environment and i think profit downturns unexpected costs failed and in specimens much more locking in the current environment than they were back when the economy was actually physically robust and finally steve we wanted to touch on a personal professional loreal oriel that you're getting you are one of 7 candidates for the inaugural not the nobel prize awards which apparently are happening this week in london tell us about what this award stands for against the traditional nobel prize in economics that we may be more familiar with. well the nobel prize was actually instituted by the swedish central bank back in not in 69 as something that was not in the original no billboard at all in fact the noble family has been quite annoyed about the economics prize for its and taj erosion and
coming up the 50th anniversary of what i have some friends of mine called the bill board 'd and it anyway it was an economics and the last straw for us was no it was a being awarded to nordhaus whose work on climate change is frankly pathetically bad and is probably a more of a major danger to capitalism than a number of flipping revolutionaries so we thought we'd actually develop a satirical thing called not the no bill open up to the public and let them nominate non-orthodox thinkers in economics and myself and randall right and so. the mariana should work for the 7 candidates. who wins and if anybody wants to get involved should she not then i would go in there and put their vote in the mostly heterodox steve keen professor of economics one big and author of can we avoid another financial crisis thanks so much for your insight.
the riots in hong kong have not abated despite kerry lam officially withdrawing the contested extradition bill investors in the city now have no other option than to pull out and they are flowing capital to singapore goldman sachs reported that up to $4000000000.00 have moved out of the city over to singapore over the last 3 months local currency deposits fell to 1.6 percent the biggest drop of 2019 now the monetary authority has singapore reported that foreign currency deposits in singapore have risen to $9300000000.00 as of august it is the known as a reserve of the east as they are drawn to its low taxes as well as the rate highly rated schools and hospitals singapore is not only welcoming hong kong is but also their assets and also india is looking at it as well over $7000.00 indian millionaires left the country over the last 12 months over fears about wealth drain and capital controls recently capital controls have gone worse in india as the reserve bank of india has restricted withdraw access to $137.00 branches amid fraud
allegations major bank punjab has been put under regulatory restrictions last week which includes limiting withdrawals 210000 rupees for 6 months and this has sparked protests and outrage among depositors who question if any bank is safe at all the r.b.i. now attempted to calm the situation with a statement saying that the indian banking system is safe and stable but no one is buying it depositors still as cannot access their own money withdraw or transfer funds and still have no clarity when they can go. their accounts back. in the u.s. the trump administration is moving quickly to target a list of imports from the european union with a value of up to $7500000000.00 for tariffs that were enabled by this week's decision by arbitrators at the world trade organization the new duties are currently aim to take effect on october 18th the trump administration has signaled that it will target hundreds of items including certain imported cheeses cookies
fruits yogurts wines and whiskies with tariffs of 25 percent the tariff agenda also notably specifies in some cases that certain items will only encourage charges if they come from certain countries such as german camera parts and warm when items from the u.k. one stakeholder joseph prefer the north american all of oil association said his constituents were pleased with the draft tariff list telling reuters quote the total universe of oil affected has been greatly reduced and while us dinner parties may soon have a more limited selection of snout next appetizers more substantially and more to the point of the recent decision the us will target kraft manufacture air bus with tariffs of 10 percent subsidies to airbus and corresponding u.s. government support for boeing or at the center of the long running usa you trade dispute. meanwhile in some remarkable breaking news on the u.s. china tariff 8 u.s. president will trump today chose to link next week scheduled trade talks with his
quickly developing impeachment problem in his latest remarkable media performance on thursday mr trump said that in the next round of scheduled trade talks with china quote i have a lot of options on china but if they don't do what we want we have tremendous power mr trump then quickly followed up on the thought saying china should start an investigation into presidential candidate joe biden and his son's business affairs in china. time now for a quick break but hang here because when we return. back and then mike. up in the wake of its major rate cut and now the major central bank is feeling from deep within the l.a. forward of the british american business association of standing by to take us through the turbulence i pop in land and as we get a break he has a number that i propose.
the over situation. graham children are living children in their free program. is it true that. these cars used to people grow bigger. breakroom to. make or break the entire proposition our financial zation because without a baseline to value risk and to value time you have no basis to value this financial eyes post industrial economy whatsoever it's all basically a guessing game.
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the name you don't want to buy out of the shipping industry to live in the beach. and do a new person and. what did i do going. down the seas. to go to you mark you didn't even join you. despite tensions with the u.s. chinese telecom giant fall way has received the endorsement of the head of india's largest mobile network providers during the world economic forum's india summit so now back to mittal the founder and chairman of bharti are till said that huawei should not be allowed to help establish the country's 5 g. network even with the concerns from the us while other telecom companies have tried to fill the void in 5 g.
implementation middle believe the hallway has a leg up on the competition saying that while way over the last 10 or 12 years has become extremely good with their product to a point where i can safely say today that their product is significantly superior to ericsson and nokia middle added that india must take full advantage of the relationship with china in this matter and should not risk becoming too reliant on the western companies in the 5 g. fight meanwhile south korea's samsung has officially ended production of their smartphones in china the company announced wednesday that the exodus comes amid concerns over the rising labor cost. and fears of an economic slowdown huawei and shell means market dominance in the world's number one smartphone market also played a role as samsung shares of the chinese market shrank to only one percent in the 1st quarter of 2019 the company has expanded production to come these like india and vietnam in recent years where production costs are lower. right healing service goober is making a big play for a larger piece of the so-called gig economy with a new app connecting bosses with temporary workers the launch of the app called her
works in chicago on thursday is perhaps a predictable move but ober exacts may have been more eager to move into a new space after a strong challenge to their business model of their core ride healing service in a major u.s. state market california legislators recently passed senate $85.00 which would effectively deprive hoover and feel good employers such as door dash lift and task rabbit of the defense to power to deny that their workers are employees under the law and thereby avoid the costs and obligations that many other labor seeking bosses have to work incur hoover works out will compete with existing products from fiber and upward. there's been some drama in europe over race while the brags that sideshow goes on with no end in sight so here to catch us up with her takes on the e.u. and the u.k. is hell a for which the 4 member of the british american business association so hillary let's start at the e.c.b. the e.c.b. is changing one of their basic elements of their policy apparatus with the new
version of their benchmark short term interest rate in the wake of this huge scandals surrounding the fixing of the key libel rate so what do we need to know about the new esther well the yes sir is the euro short term right and that's really i mean it's been hailed by many as being far more plex flexible and really preventing banks from being able to read things quite the way they did so i think in some ways you're going to find it very well received the libel or i don't think it was was widely accepted or widely appreciated across and i think it's one of the few things that drudge is. that has not been lambasted like some of the other movies recently made and speaking of that hillary mr druggy has now officially moved on from the presidency of the e.c.b. but some of the vendettas from his tenure there seem to be lingering over his legacy all over the c.e.o. of all yawns europe's biggest insurer chose to air some of his grievances with mr druggy in an interview with a poignant times and put
a punctuation on the drama by delivering his critique as if he were directly addressing mr druggy what's the grievance here between these 2 yes he did he actually what he was referring to really and he was lambasting with the doom and gloom sort of like doom loops do loops and the do loops all the fact that really basically policies that were put in place by mario draghi they were really encouraging both bankers and insurers to buy government debt will buying government debt was risk free 0 risk and 0 capital capital charges sort of us do this really kind of bets against business and having the government incur greater debt isn't good for europe it isn't good for any of the weaker economies and i think it's interesting to see a lot of the german executives coming out and being very opposed to any of their contributions to the e.u. being raised and they're very opposed to of course increased government debt has also recently come out in an interview with the financial times he actually recently said that he felt that government should step up their spending to avoid the you know the euro slowdown whereas basically in 2012 most people say that this
do loop exacerbated all magnified of the euro crisis. the european banks and i think that swat alliance is referring to that alliance is referring to sun and checking on the countdown as the u.k. seems to be quickly careening towards october 31st deal or no deal deadline set by prime minister boris johnson he finally table some proposals on the irish border issues in the talks with the and the reviews from the e.u. side were not good but mr johnson's comments on thursday while still defiant. they seem to lack his usual level of vigor so what's the latest there you know you're right because he i mean not so much bigger i mean it was less sort of like chest thumping that he's been doing recently and i would think that's actually for a number of reasons number one he wants to come across as far more reasonable than he ever has before and i think this was very calculated what he's doing if you look at all the comments he's made this week including it in manchester the conference of the conservative party what you'll see is all of his comments are aimed at we
have something to offer we have a deal even the b.b.c. so that he has a potentially a good deal on the on the table were as was just your record and then the opposition of the labor party offer they don't have any alternative they really are the party of no and i think that's exactly the reason the boris johnson sort of toned it down i think that he realizes he needs to come across come across as far more reasonable you're right that you did not accept it with open arms of it was very excited about it but they're not going to because they need to maintain their negotiation stance so i think this was a political calculation and i think it really makes them shine in a better light especially visit the german corbyn and the labor government that has no pows on the table whatsoever hillary and some of the broader consequences of this irish right to susan mckay addressed them in a new york times op ed today she said that she noted in the midst of the brig's the debate scotland is preparing for independence and there is a serious discussion here about a poll to reunite ireland with the e.u.
in a nutshell she says quote britain has long since lost its empire and this prime minister looks to break up the u.k. itself is this. the potential to become a threat to the existence of the u.k. as we know it well i mean obviously all the way along the line because it's been discussed and satisfaction if you look at the original vote the original vote the 17400000 the vote is to leave. that vote they were predominantly in wales and england so yes no news about the scottish they're always looking to make alliances with europe and the french me go. the queen mary but then they are the irish too so the irish you know in the 2nd world war left their lights on for the bombers to be livable so i mean i mean this is not anything new it's nothing surprising it's kind of what's to be expected i think the you know island has to look after its own interests and they're looking to see right now which is going to be their closest ally and will be that close this trade so it's nothing surprising at all given very interesting the game and rounds playing out right here hello for which british
american business association thank you so much for being here pleasure. and the european court of justice has ruled that member states can force facebook to remove certain content worldwide facebook is criticizing the ruling while free speech organizations are saying it is a threat to online content as we know it. well destroys a joins us from toronto with more alex tell us about this european court ruling against facebook seems quite remarkable. that what's europe's highest court is saying that if the e.u. can force countries are forced facebook i apologize for facebook to remove content that it deems as hateful now this means that any country within the e.u. can make this judgment and push this forward even in countries that have nothing to do with it so some place across the world where that kind of contact is legal might be affected by this ruling it's absolutely massive so this applies to facebook as
well as other social media platforms that it all stems from a case for a from that was a ruling in austria in an austrian court it was the chair of the parliamentary chair of the green party there she was offended by something that was up and she sued and this went all the way up to the e.u. court and as you can see there the ruling applies to courts all me so this is this is the key here so if it has to be a e.u. court or the e.u. as you just saw the court of justice itself it's not about complaints you can't complain about those actually go through the process but still this is a massive affront to free speech and people are talking about it so in our house facebook reacting to the. obviously facebook's not too happy about this they're saying it's not our job to be scrubbing down what people post on facebook and i'm sure other social media platforms are saying the exact same thing here's here's a quote from facebook gives you
a little bit of an idea of what they're thinking they say it undermines the longstanding principles that one country does not have the right to impose its laws on free speech on another country so think about that one country has its laws and now it's say in other countries that the bed the cat be viewing something because this is our law so you can't see it either now the ruling as applied to give the courts any nation is any nation in the e.u. can make this decision and again this is far reaching this is a global thing that will be decided by it could be a tiny little nation in the e.u. yeah now it's obviously the extraterritorial application limit on speech presents all kinds of issues and the free speech organizations don't always necessarily. can necessarily predict if they'll side with facebook or government regulators but what are they saying in the wake of the free speech saying in the wake of this decision . one of the 1st groups to speak out is article 19 they're from the u.k.
they basically said it sets a dangerous precedent were courts in one country could control what internet users see in another country and i think that's really the bottom line here the judgment could undermine free speech on the internet now one thing i think that most people appreciate about the internet is this sort of wild west feel that it's had the fact that anything can be up there you choose what you want to read you choose what you want to see and you know you move forward from there what the e.u. is saying that we're not going to lead and force what you want to see on our continent or within our union but we can force it beyond that. r.t. correspondent alex mann hell of it thanks so much there is a. thank you. the 4400 list of the richest americans has a new member from the company behind the free to play jack or not for tonight battle royale at big game c.e.o. tim sweeney entered the list on the 150th spot with an estimated net worth of $4500000000.00 in 2018 alone the company racked up $2400000000.00 in revenue from
their more than $200000000.00 players they also have a robust business in licensing their game engine to some of the biggest players in gaming in july of this year at big games held the 1st world cup a fortnight with an estimated $30000000.00 in total prizes the grand prize went to 16 year old kyle booga jersey shore of pennsylvania who walked away with $3000000.00 and was on founder jeff bezos ex-wife mackenzie bezos also add to the list in the 15th slot with a net worth of roughly $36000000000.00 after receiving 25 percent of the couple's amazon stock as part of the divorce jeff bezos remain in 1st place at $114000000000.01 microsoft founder bill gates and investor warren buffett rounded out the top 3 with a net worth of $106000000000.80 respectively it's impressive that fortnight put this man on the forbes $400.00 list i knew it was popular i didn't know the game was free so i guess it's an even more impressive achievement the gaming industry is like one of the highest growth industries in the world right now and we also forgot
bernard are not if this were global let's bernanke is still number 2 globally is on the world's richest investor list. that's it by this time you can catch by must on directv channel 321 dish network out to 80 or streaming 247 on planet t.v. the t.v. ads help you send me 9 or you can always hang out with us on you tube dot com slash will most start to see you next time. around until follow on that comes out of. the set of one of monk one of them. a fondness for the main t.v. . not the high.
of this month when the photo of the sun shone. on the photo to the north near me a lot of the. then that it is someone who did the board. why a paradise with so much ground turned into a round the experimentation field but i grew cultural chemicals we know that these chemicals have consequences they are major irritants there's no question otherwise why would the chemical company workers themselves be geared up that suited up
locals attempt to combat the on regulated experiments that often in day you have many of these people one foot into the biotech pharma and the others. but 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 can get away with this because the people have less political power. even if. we all know how far. you.
know. yes that is. one pair must go time headlining north korea and the u.s. is set to resume stalled nuclear talks from sweden with both sides testing ballistic weapons in the days leading up to the meeting. sort of a christian doctor in the u.k. who failed to get his sucking up to an employment tribunal coming up his refusal to use female programs for a transgender woman they hadn't ruled out was incompatible with he would we hear from the doctor involved. but i designed the bulls to be something that i kind of do if you read them. and called the world's most popular politician jailed form a brazilian president of the silver has an exclusive interview to r.t. spanish from his prison.