tv Boom Bust RT December 3, 2019 11:30pm-12:01am EST
thank you. i don't know about. this is blue bus broadcasting around the world and covering all aspects of our global economy in the 21st century i'm going to bore and i'm christiane washington here's what's coming up today some people say once again the sanctions would be unacceptable we question the legal analysis by the u.s.
authorities. on digital john deal with the u.s. and france are waging a terrible war of words as the nation's leaders meet in london for richer the british american business association is on hand to dig into the details of how tech tax is driving the escalation plus as your team of guard has taken the reins at the e.c.b. she has already made some firm commitments for the central bank professor of economics on patriot and steve keen joins us from amsterdam to break down the banks move and the central what central banks have come under fire around the globe we have a packed show today so let's get right to it. the trombone ministration is considering reviving a plan to kick qual way out of the u.s. banking system this proposal was previously is considered by the white house national security council as a nuclear option to sanction the company but was ultimately shelved due to the aggressive nature of the sanction this plan would put quality on the treasury department's best so it actually doesn't need a nation's list and make. virtually impossible for the company to complete
transaction in u.s. dollars the administration instead place fall way on a trade blacklist which forced suppliers to obtain a special license to sell to it the plan has been brought back up to the decision table in order to quote impose maximum pressure we seem to hear and be hearing a lot of that these days but placing huawei on the s. and d. list is a double edged sword this would create logistical diplomatic and economic difficulties for the u.s. as well this designation would prohibit american companies or citizens from trading or conducting financial transactions with qual way and freeze its x. 6 held in the us this would also put pressure on u.s. allies that already rely on a hallway for their 4 g. networks and have broad widespread implications severely impacting businesses in europe and asia outside of china so with huawei sprawling size and dozens of subsidiaries it would severely complicate us in forstmann and make it difficult to foresee and prepare for major fallout both foreign and domestic while a is finding itself increasingly unwelcomed in the united states and is planning to
relocate its research center from the u.s. to canada hallways spend almost $510000000.00 on its u.s. research facility last year and since the us started its campaign to block wall way under the guise of national security concerns quality is has had to trim its research arm by 600 bodies down to 250 talent recruitment became a challenge as top u.s. universities including princeton stanford u.c. berkeley all cut ties with the way so instead huawei is looking to russia where in the last 6 months 8 top russian universities and research institutes have announced or expand a partnership with hallway with a focus on advancing the ai ecosystem neural nets data storage and processing. this is faster this back and forth that we've seen with way the u.s. has taken a lot of action against them has this actually affected their business at all so so far in the latest earnings report no it really hasn't always still continue to expand its 5 g. coverage worldwide including europe where the mare. has tried to block all of them
as well as within china while way has expanded its 5 you coverage as well as they sold out does like hundreds of thousands of their phones and basically tripled their phone sales in the last quarter than what was previously projected so this entire polarized nation between us versus china this actually created a lot of nationalistic feelings towards hallway where people were customers who previously preferred apple i phone now made the conscious decision to go into a national phone such as well way and we've also seen it in europe especially in germany where they've said we're not going to rule out while away from using them in our 5 g. capabilities as they start to implement those as well now there's another question i do have on this is the banking system now they want to drink drain them out of the u.s. banks is there a precedent here so there is and this is this is as they said this is a nuclear option so by banning them from the u.s. banking system this essentially means you cannot transact with u.s. dollars companies can't pay them for their services in u.s. dollars and this is here to has been president previously. sanctioned russia's
resell company which is one of the largest aluminum companies in the world also russian oligarchs iranian politicians and venezuelan drug traffickers so that's the list of everybody who has been on the s. and d. list previously and probably would represent one of the largest companies ever to make it on to that list and we're going to see what goes on here and this certainly isn't the end of the wall way versus the u.s. debacle. and once again the back and forth between trade deal and no trade deal has finally landed on a no trade deal seriously after 16 months this should have been obvious to people especially people who saw the profession is to bet on the market direction and actually have money on the line but no equity is saying tuesday after president trump suggested he may want to delay a trade deal with china until after the 2020 presidential election markets have their lows after the white house report of plans of moving ahead with the summer 15 tariffs on chinese goods tech names lead the market lower as. volatility is back
sending the s. and p. down for its worst loss since the october analysts have remarked several potential reads on trump's comments one of which is that he's simply raising the stakes as a negotiating tactic indicating to china that he is under no pressure to get it done meanwhile china responded the u.s. appears to be back peddling in trade talks as officials threaten tariff hikes the director of chinese foreign ministry in her latest press conference compared to a mentally ill woman shuttling cell a character from the novel who keeps repeating her stories over and over again you know kind of like hold or what she is illustrating is a poem pale and trump have been repeating the same rhetoric over and over again for 16 months promising the markets that a deal is close to but never actually delivering anything we pointed out this dichotomy 2 weeks ago when we said the us was unusually optimistic about a deal with markets pricing it in already well over on the china side they were
more subdued pessimistic saying that there was a lot more work ahead of them in order to finalize a phase one deal it's starting to look more and more like a trade war will be a semi-permanent facet of global comments throughout 2020. and france of the united then the rest of the european union said they will respond if the united states follows through on a threat to impose tariffs of up to 100 percent on imports of 2.4 $1000000000.00 in french good. the threat from the u.s. president donald trump follows an investigation that found a french digital service tax would hurt u.s. tech companies and could escalate an ongoing trade dispute between the e.u. and the u.s. during a meeting in london for the nato summit with french president emanuel mccrone president trump defended american tech giants. you know they're going to be comforted if you took you to the. people because this is not exactly ok here we go. and we want to go. we don't want that and that's not the sum of the.
meanwhile french finance minister bruno lemaire claims the digital tax in question is not particular discriminatory to u.s. tech companies. should all say it wants to get the sanctions would be unacceptable we question the legal analysis by the u.s. authorities of just national tax on digital weekend i said so yesterday the u.s. trade representative. is. going to deliver the french digital likely to be called digital company days including u.s. companies but also a strange european and. the u.s. has already imposed a 25 percent tariff on french wine and cheese in response to the block support for e.u. plane maker airbus now to break all this down to a scuffle between the u.s. and the e.u. we're joined by hilary ford which board member of the british american business association now it's great to have you here as always hillary and you heard it yourself president is no fan of those trump is no fan of these tech companies but
he wants to tax and he doesn't want a foam going on here so what do you make of this whole back and forth the tit for tat that we have seen between the e.u. and the u.s. and especially france over trade well couple of things 1st point obviously this shows that trump really isn't just out for himself i mean the tech companies are extra biased you can look up any topic on any subject the tech this. changes like google that obviously and facebook puts out nothing but an detroit news so i think is rather magnanimous of him for once and we don't often get to say that so very magnanimous but your 2nd point though this is definitely a hit on american companies the sentiment generally in france is that you know this is these terms of all us american companies even the benefits are citizens so the crux of the issue is the dire circumstances 'd that president finds himself in he's not popular at home he has about a 62 percent disapproval rating so what's he going to do he needs to find an
external enemy who better to look at a tax than american tech company and actually 63 percent 63.4 percent of all of the global unicorn's these big global companies are u.s. companies so 13 percent do come out of china but 3063.4 percent according to the marshall school of business university of south carolina so it is about the u.s. companies or is it only in your opinion is it unfairly going after u.s. companies or is it just the u.s. companies happen to be the big tech giants well actually yes it's not yes it's not my opinion but rather the facts say and i'll quote you the washington post that all of the 30 companies this will tax the majority are american companies so again they're not saying let's go off to american companies it just so happens they are and by the way they could be a lot more french high tech companies if they did not stifle entrepreneurship ship and if they didn't have so many regulations and they didn't overtax our citizens maybe we'd have more high tech companies coming out of france so now this french
hill of tax has been quite a contentious issue so why are french regulators so set on taxing tech companies in particular rather than focusing on say any other sector well you know what i'm christy because it's an easy target because there are no products there are the it's difficult to sort of identify and so is their services and also again to my point because the majority of them are american without actually pointing and saying now we're going after the american company it is almost like. a soft way from across to try to dig himself out of his fiscal ditch that he's already in now we've seen these existing tariffs that are already on french goods at this point are they doing any damage to the french economy or even the european economy or is it really just hurting the u.s. consumers as we've seen or it is actually hitting both in france according to c.n.n. both louis. hennessy their stock is down 2 point one percent and amaze stock and down another 2 percent in paris so it's hitting those stocks the other thing you look at i look at instead of just the short term
consequences of maybe some towers maybe not let's look at the long term consequences if and when it looks like they're going to 100 percent taxes go on french luxury goods american consumers at least at the high end of the market maybe they don't really care money's less sensitive to them and it is to regular people like our spa when a bottle of burgundy is another $50.00 doesn't that make your regular americans consumer and we are the number one purchasers of all luxury goods doesn't it make you think well instead of burgundy maybe i can go to wine in california you buy a duck on or you buy some other california wine so the unintended consequences i think the long term are that the american consumer might find alternate luxury goods in the u.s. isn't that the purpose of tariffs in general we often look at the tariffs as a way of hitting those foreign companies but in reality it's a long run situation where what you're trying to do is hurt that you have the american consumers feel the pain and that way american companies can pick up in the
situation of course american companies could pick up that slack yes exactly and if you go back to the old days i mean this isn't something new i remember when we had that you know maybe in usa campaign and then in japan they actually founded a town called to use usa so they can. say so this is not a new subject yes yes and then the ultimate long term consequences are you're going to have a worldwide breakdown of trade and commerce there are starting to see that already this year well i don't know that we'll see break down what we'll see is we'll see strengthening of you. markets because they'll be a strength in the u.s. and also i do think with obviously lots of things coming on the horizon you could see a strengthening of all the english speaking speaking countries rallying particularly with what one might call is doing and he doesn't realize he's driving other consumers within the 2 u.s. products and now we've sort of seen that the u.s. is looking to impose further tariffs on the e.u. after the deputy or ruling regarding airboats yes right now they already have $7500000000.00 have been awarded to tariffs have been allowed by the w t o. is this straining the relationship and we were talked with a generation but is it straining the relationship between the u.s. and the e.u.
i think it is that it is actually what the w t o ruling found as to your point is that not only of the french subsidizing our boss but the spanish and german governments so that's what the ruling actually determined and i think the issue with the new cio is a big issue and that is that many say that it's unfair china should in was that allowed entry in 2001 and maybe should have been allowed entry because they don't have free markets so what you're doing is you're actually splitting free markets against controlled markets and that is unfair to the average consumer a little on a quantum easy where we don't have the same subsidies for boeing as we do for the french do for us very interesting here for which board member at the british american business association thank you so much for your time pleasure because the . time now for a quick break but hang here because when we return christine legarde has taken the reins at the e.c.b. and she has already made some firm commitments for the central bank professor of economics on page 2 and steve keen joins us from amsterdam to break down the bank's
move and how central banks have come under fire around the globe and as we go to break here are the numbers at the close. up until recently politics were about policy preferences and ways to implement them that is not the case today your political views are now what define you as a person and there is a moral dimension bias against those who are not politically correct is the last acceptable form of discrimination this is the end of politics. thinking of getting a new phone the ones we've gotten or she. didn't know and they're trapped in this
tiny little wired we don't need a crate with the wall. freaking out and she won't let us bring him anywhere near. breeding dogs or caged in the interview lane conditions on the phone i mean 67 years you know they've been locked up in a cage outside you see no protection from the weather the heat you know the courtier the rain the snow the funder they have no protection. because you. know it's ok. across the u.s. crude puppy mills are supported by dog shows and still most of the puppies that are coming from these large scale factory farming kind of operations are being sold in stores even joined a group businesses are involved like. there has been a shocking amount of organized opposition to adverts to increase the standards of care for dogs bred in commercial breeding facilities most of that opposition is coming from huge agricultural groups and industries that have nothing to do with
jobs don't buy dog on. cyber monday shoppers set a record this year spending $9400000000.00 online according to data released by adobe analytics sales this year easily eclipsed a record by. 2018 when shoppers spent nearly $8000000000.00 early estimates from adobe predicted sales of fall short of the $9400000000.00 that was expected but retailers rallied late into the evening with shoppers racking up 2 point $9000000000.00 of goods between 10 pm and 2 am and as we talked about monday sales via smartphone users made big gains breaking the $3000000000.00 threshold adobe's data found that consumers also spend 6 percent more per purchase than last year top selling items include apple laptops and tennis which consuls and samsung t.v.'s toys from frozen to and surprise dolls also sold big adobe estimated online
shopping throughout the holiday season will hit 100 $43800000000.00 from the beginning of november to december 2nd shoppers have now spent $81500000000.00. italy's largest bank unicredit is playing substantial job cuts as they promise share buybacks and dividends and creases for their shareholders the bank added that they plan to grow organically rather than targeting more big acquisitions unicredit will cut around $8000.00 jobs or 9 percent of their workforce and close nearly $500.00 branches through the year 2023 the bank said they would return $8900000000.00 to shareholders over the same time period including a $2200000000.00 share buyback on the news your credit stock is down slightly for the day but is down roughly 3 percent over the last 5 days you to credit joins the likes of h.s.b.c. and deutsche bank which have announced large restructuring plans this year including cuts of $1020000.00 jobs respectively just this year alone banks have
announced more than $75000.00 job cuts mostly in europe do you do a slowing economy. european central bank president christine legarde says her organization will be resolute in restoring price stability in the euro zone during her tenure in her 1st appearance at the european parliament since taking the reins as e.c.b. president misled guard spoke about the weak economy in the block. euro area growth remains weak with grooves domestic product growing by only point 2 percent quote unquote to in the 3rd quarter of 2019. and this weakness has been mainly due to global factors as the sector mooste directly exposed to these global developments the manufacturing industry has been suffering the most mislead garda said to hold her 1st monetary policy meeting at the central bank on december 12th the us been e.u. has been unable to return to the target inflation rate of below or close to 2
percent despite intervention from the union central bank now to break this all down and what it means what and what we can expect from the e.c.b. under the guard we are joined by a. professor of economics on page one an honorary research fellow at university college london steve thank you so much for joining us today now christine lagarde is holding her 1st monetary policy meeting on december 12th as we just mentioned what can we expect to come of that. very little. there's been some stand a change of use policy and the is a big since the whatever it takes based on mario and that's going to check and now because it's the it's the overall constraints on which salman has been rather than run personality yanis varoufakis i made this point very well just recently that the day to day does was the way to master a tree and it has been tricky to get but not a choice but to do and then in advice within that prison where this crazy situation
about negative rights and one is that easing up come from but we know trying to look at what was happening before that saw national actually has to deal with a lot of the side effects left by her predecessors agi so what are the side effects exactly of that you see these ultra loose policy and what can the central bank actually control to fix that. well it can't control the treasury and this is the real problem not only does it not have a treasury through to backstop this happens with the united states treasury and backstop but the federal reserve it also. doesn't have any control over the fiscal policy where you can draw getting out and saying in place tonight the economy will with fiscal policy but of course the fiscal rules are constrained by the the 3 percent limit on deficits and the 60 percent but on government on government debt which means that you know economy can seem like it's a profit state that by having all public sector spending so
a lot of the point you made about it being external factors that's false it's fundamentally internal factors that the sonnet the a you was always day flash mary and the prediction that legally made back and not enough money to win the crossest these years does not make it worse has been well and truly borne out by the facts and now state of finance ministers are now pushing back against the c.p.p. for their negative rates saying it is having a detrimental impact on. beings and pension systems they want to hire but you know president trump here stateside is big claiming that the fed didn't lower rates enough and blame fed chair drone powell for the deepening u.s. manufacturing slowdown it is voluntary possibly a policy just inefficient and effectual now. yet always has been and only the nearby spill economics arguing that you can many middle of the economy by at least 90 interest right twice as much on the opposite direction from an option to 2
already in the same direction by single process often buyers come down to lots of slots and save a lot more and this fictional idea of a natural right of interest that would get the economy and the librium and eminently high as a whole and their fantasy. the theory that striving how they see the census policy is a theory a plan that doesn't exist and it's awful system in this galaxy so it's always been that the only think it wise to have a treasury that runs and runs a deficit which when that was just must because that episode actually created the money the private sector used to spend and because of the role of the united impossible then that the worst of the school of the city and the constrained monetary system so what they actually helped to have additional fiscal policy as the thing that i alluded to. has to look like getting rid of the ridiculous
construct of the trade the sense that as an absolute sailing to getting off your house the average deficit for the american economy since not since not 800 has into all this energy that's the average take out the was is 2.2 percent so the whole idea that someone should be its rate is a ludicrous constraint and it's all based on the fallacious they can all see coming out of near a lake in all of us which of course of the mounting on buying the theory leads to unreal rules to control a real economy. and it necessarily causes economic disasters as we're seeing in europe by the time now speaking out that has many many complaints he had he recently lashed out at the european allies ahead of the nato anniversary summit claiming that they didn't contribute enough. so we have a lot of countries stepping up and putting up a lot of money. as if this is over this is exactly $131000000000.00 that's a year that's a tremendous amount of money but it's not enough does he actually have
a valid point here are his he trust trying to exert more pressure and dominance and get over the nato allies. my visit money putting more pressure on obviously i mean the whole idea existence of nato is something you should actually question is that it was didn't surrender the soviet union guess what is going on there is going to is this the soviet union followed almost 30 years ago it's dreams it's increasing tension are brought the suit dissolved and iraq the wondering about who funds that . role the main thing the troposphere wing is reduced from to ensure balance tried around the world while he has another very currency because the american dollar is a constant national pride and it should not be so and i just illustrated i'm going to sit back and watch the fun. fascinating insight as always thieves and professor of economics i'm patriotic thank you so much for joining us today.
chinese students are now the smartest in the world in the latest try any all study conducted by the organization for economic cooperation and development 15 year old chinese students tested better in reading math and science and students in any other the $78.00 participating countries in math and science by a significantly wide margin and in reading only singapore came close when rounding out the top 5 in each category china singapore macau and hong kong consistently place in the top 4 and a stony i came in 5th place in science and reading american students on the other hand performed above the o.e.c.d. average in reading and science but below in math on average across the o.e.c.d. countries girls significantly out of form boys in reading by 30 points so with education being more important than ever in this new digital age the quality of education in the students will feed into the strength of the next economy now
kristie when i see this and i read this all i can think is you know here is an american of course is that you know our public school system has kind of started to fail but why do you think the asian countries are being able to kind of be superior in this regard that i think is more so they have stricter standards stricter standards across the board and that's kind of like the benefit of having like a let's just call it a communist country when they implement something they implement it wide across the board versus here in the united states you have state power versus federal power and things like that in every single school districts very different everybody's independently operated and that's kind of like the pitfalls of a democratic country. the pitfalls of a democratic i doubt are that and let's apply this why in america and last us talk about the last mile when we looked at the economic employment numbers there was actually not enough significantly skilled labor workers across the board people actually couldn't have workers to hire that were skilled enough to work in the tech
industry in the health care industry pass today oh well we got to go that's it for this time you can always catch boom bust on youtube dot com slash boom bust archie see you next time. join me every thursday on the alex salmond show and i'll be speaking to guest of the world of politics sports business i'm showbusiness i'll see that. when there is only. i just got out of prison for. 41 games. 72 years so. i got arrested some my. own life just everything was taken out of.
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