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tv   Boom Bust  RT  November 5, 2019 5:30am-6:01am EST

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a major trade deal in asia may face an uncertain future as india has declined to join the pack. of the institute for china america studies is in studio today to break down the latest in southeast asia shipping and brings us up to speed on the transpacific trade saga. i think we are brought to the listing to vote on which will. be so what does it believe. the i.p.o. has been set for the world's most profitable company but will it fare better than the string of other hype the listing launches horror with the baba trading joins the show today to drill into the details they hit on several other movers so so much to hit on and so little time can we get to it all there's only one way to find out let's dive right in. the united states and china are moving closer to a trade agreement this after a call between the top countries top negotiators global markets to record highs this giving hope to donald trump and she jumping will find
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a phase one deal later this month chinese advice from nearly you ha and u.s. trade representative robert like hisor and treasury secretary steven menuchin reach consensus on principles according to reuters the commerce ministry of china said the 2 sides conducted serious and constructive discussions on properly addressing their core concerns while the u.s. trade representative said the 2 sides made progress in a variety of areas and are in the process of resolving outstanding issue this comes as president donald trump was expected to meet with his chinese counterpart xi jinping on the sidelines of the asia pacific economic cooperation summit in santiago chile to sign a phase one trade deal touted last month though that summit was canceled trump said both sides are still looking for a new location somewhere in the united states. rob read this 1st i want to get this right going to be very. very well to get the feel. now that we've got the deal that
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we will go it will be something like. people familiar with the matter say president xi jinping is open to a u.s. trip to sign the 1st phase of a trade deal however no final decision has yet been made. at the last minute india has pulled out of the regional comprehensive partnership which could be the world's largest trade pact citing concerns that the deal could hurt the country's farmers businesses workers and consumers without india the agreement made in bangkok well include the 10 members of the association of southeast asian nations as well as china japan and south korea and new zealand indian prime minister narendra modi said of this decision when i measure the r.c.p. agreement with the respect of the interests of all indians i do not get a positive answer the green members expect the deal to be signed sometime next year and chinese vice foreign minister leo chang spoke about the agreement and the possibility of india joining at a later date. whenever india is ready they're well get on board as for the
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significance it was an. understanding how much the largest population definitely will play a role in noting economic development in all the time which is you know when she its impact beyond measure we're going to i believe are some great role for the regional development to. more on the intricacies of these massive trade deals we are joined by senior apac international relations policy specialist with the institute for china american studies so rob it is a pleasure to have you here again now what are the concerns that we're seeing that forced india to back out of this trade pact india's concerns are still across the board it ranges from management of data flows to good straight to agricultural. imports but fundamentally it's about india having a weak manufacturing sector and being scared that there will be a flood of manufacturing. which will displace
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a lot of people in india the past history of india's free trade agreements or preference will trade agreements that have the agreement that the trade deficit has increased and they're expecting that will happen this time around and they just consummate on that politically now there's also been quite a bit of a contentious relationship between china and india when it comes to this trade pact can you unpack some of that for us and why this is india has suffered a large trade deficit with china for a long time about going about 15 years now and the difference just gets just keeps increasing particularly in goods you know india is one of that rare ition country which is not in the regional value chains it's not in the regional value chains because it's factor markets land labor capital are just all over the place and that leads to low productivity in its manufacturing sector and so it cannot compete with chinese imports and this creates a larger trade deficit so india needs to get its act in order or on those factor of
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factor of market reforms before it can really in good substantially but with india's exit from this agreement how much will that really a fact this overall deal well up to a point you know the indian economy is a big economy it's pretty i mean it's 2.5 trillion it's just going to get larger it's growing at a fast rate and the r.c.n. countries and the regional players want to india in but at the same time i mean there's only so far you can go in terms of diluting the tax because i mean if it becomes too plain vanilla the agreement is not worthwhile itself so yes india's departure hurts it up to a point but at the same time maybe the standards and the actual agreements they have signed that they will sign will be will be better on this is expected to be one of the biggest trade deals so far but staying on deals and trade war is now china and the u.s. are still untangled in this trade war this tit for tat trade war they're saying that they're close to a deal but china has been pushing for quite some time now for the u.s. to cancer. these planned terrorist the ones that are set to take place in december
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and the removal of some of the existing terrorists is this any of this something that will play out in this phase one deal oh i think it will absolutely out in the series monday and i mean the question does not arise that if if one happens that the follow on terror of that which would do to come in on december 15th i mean even if they don't get canceled they need to be suspended at minimum the continuation of the suspension and with regard to actual removal of bastar us that was dependent on how the breaching of our suite of the actual agreement is you know the chinese have said you know 1st year we'll give you 2020 1000000000 in our products but if you want that again the next to your own you need to start removing some of those tariffs removing not just suspending and we'll have to see at what point the u.s. has come down on that and says ok maybe i'll remove a little but fundamentally it would be or there would be a degree of window dressing it would be the removal of some tariffs not the full full body of terror and now when we look at the tariff discussion as well and kind
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of the tit for tat nature that this trade war has gone on are we going to see china drop back some of their retaliatory efforts towards the united states amidst this trade war as well yes there will because china stars have mostly been in retaliation to u.s. tariffs if that being the case the u.s. will it china will also remove remove those start of so and it doesn't have that much space to impose tariffs because it doesn't have that much of exports as the as i mean it doesn't have that much of imports from the u.s. as much as it exports to the u.s. but fundamentally china's grievances are more in the area of national security and on the export controls which have been imposed and that is for a different round of discussions frankly i do want to ask you this well the u.s. do you see the u.s. actually signing this deal i mean we saw these these talks back in may well that they broke off and may when they were saying both sides are saying they were successful at top negotiations that sions they can. politely broke off in may are
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we thing a repeat of what happened before or do you think there's really any chance that this phase one deal will be signed at the end of this month like they're saying i think the 1st monday in will be signed it's not going to be of what happened in may and the reason for that is simple most of the contents of this deal were agreed upon as were already negotiated and hashed out in spring of this year the deal in mere collapse because the larger comprehensive agreement that enforceability provisions were not yet the china was balking at the enforceable provisions but in terms of the contents of this deal which were agreed upon long back china has already implemented the foreign investment law it has already implemented in the standards it's already implemented regulations on this front so many of those enforcement related provisions which the u.s. wanted in chinese law have already been done by the chinese and so there's no reason why it will not happen and besides trump wants it to happen so quickly you know we talk about the impact that we have we talk about the u.s.
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china trade war but there's also china's working out a deal with the information on that one or that's an important one it's going to be just as fundamentally reshaping of the environment as it is with the u.s. because it's in the investment area china is being asked to to make important commitments in that area and to really scale up its game but china has as i said passed the foreign investment law it has made many of its provisions now are going to be consistent with what the uro's wanted there's still difficult questions on in the area of industrial subsidies which is an area which also the u.s. and china had discussed but broke down in the course of in force ability so we have to be interesting to see how china approaches those industrial subsidy discipline issues with the euros which it could not finalize with the u.s. and if we have it with the euros that's just great i think frankly for the global trading system interesting. international policy specialist with the institute for . american studies thank you so much for joining us to get it again soon. commerce
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secretary wilbur ross announced the licensing that allows us companies to sell equipment to while away will be forthcoming very shortly ross told bloomberg the government received 260 license requests this is up from the 130 applications reported in august remember too with entity list there's a presumption of denial so the safe thing for these companies would be to assume denial even though we will obviously approve quite a few of them the commerce department blacklisted while way back in may citing national security concerns but while we has repeatedly denied those allegations the band walked while away from buying software from companies like google and micron a move while we said is hurting its mobile phones but the ban has also hurt american companies doing business with china u.s. companies were allowed to continue selling equipment to while away this was under a temporary general license due to expire this month and in october the trumpet
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ministration said it was ready to green light the licenses for u.s. companies to sell non-sensitive goods to while away it remains unclear what companies have submitted applications and when those licenses will be approved since none have been granted so far no sir i actually this is fascinating because we've seen these reprieves back and forth with weiwei you were actually recently at their headquarters in shenzhen china and you spoke with a lot of executives were they concerned about a lot of this blacklisting and the blocking of their use of u.s. made goods i talked to a lot of of their employees as well as a top executive and they were saying that they had they were planning for this they were they knew things would get worse before they got better but they're still up their mobile phones are still their sales are still up by about i think 2425 percent which which is still pretty good they're still climbing and sales are the number 2 largest mobile cell phone company provider this is after samsung still beating apple but that is before the google was. are excluded from their cell
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phones and i can't imagine a cell phone without google but they're kind of just doing what they can with these bans but they said they're going to try and compete and continue to compete and hopefully someday be able to compete in an open u.s. market which is why they're saying this is such an unfair practice because the u.s. wants china and wall way to open its doors to to other companies and they want they want to do the same here in the united states and i think the google thing is very important because they will surely want to get back on that train to have their android software and their apps back right in the situation time now for a quick break but hang here because when we return iran co is making market shaking moves as the ball has begun rolling on its much hyped i.p.o. hopes todd horwitz above the trading joins the show just after the break to delve into the details and give us a look at what else is moving markets and as we go to break here are the numbers at the close.
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the world is driven by shaped by those. years thinks. to ask.
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thousands of american men and women choose to serve in the country's military and the decision. every song came to a complete. the day that i was writing. it you know polish it kill me and i see how it destroyed my life any screamed at me and he made me come in and he grabbed my arm and he write me. if you take into account that women don't report because of the extreme retaliation and it's probably somewhere near about half a 1000000 women have now been sexually assaulted in the us military is a very very traumatizing tat happening but i've never seen trauma like i've seen women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished and the offender and almost 10 year career which shows very invested in and i gave a sex offender who was not even put to justice or put on the registry this is
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simply an issue of our violence male sexual predators for the large part of target whoever is there whether that's men or women. indonesia's law and areas are going to show public offering in the 1st quarter of 2020 with hopes of a. raising $1000000000.00 according to
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a report from reuters sauteing sources familiar with the situation the airline had been waiting on an official report regarding the deadly october $2800.00 crash of lion air flight 610 prior to moving forward with their public listing the resulting report released last month focused on issues in the boeing 737 max cockpit software and called for better training within the airline the report report also called for better regulation from the united states and within the region lion air hopes to use the funding for future aircraft deliveries intended to provide better air travel in a growing market. after 2 fatal crashes involving boeing $737.00 max plane several airlines are planning a publicity campaign to show the public the planes are now safe the jets could return to the skies as soon as january if regulators approve legal journalist molly barrett says either with america's lawyer is here now with more molly thank you so much for being with us today let's let's dive right into this is the 737 max now
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safe to fly. well certainly boeing wants you to think so and we have yet to get the green light from the regulators but boeing says it has fix that software problem that investigators say did play a role in those 2 fatal plane crash that killed a total of $346.00 people evidence including the black box data points to a malfunction in that automated system that helps a plane avoid stalls that system was new to 737 max regulators say most pilots weren't even aware of it until that 1st crash in indonesia last october multiple investigations reached similar conclusions that boeing introduce a new automated system without properly teaching airline crews how to override that software when there's a problem like what you saw with those 2 plato crashes now according to the wall street journal several airlines including american united southwest they all still use the 737 max of course that's been grounded they've been grounded sense march when the 2nd crash happened and they're now taking steps to prove to the public that these jets are indeed say safe rather than those steps include airlines.
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promising to do their own safety checks even when regulators do them even when the u.s. government boeing clears the planes to fly they say they're going to do backup inspections if you will the report also says the airlines are planning flight demonstrations no passengers on board but they are going to have senior officials on board so they hope that's going to raise the public's confidence in the safety of these jets as well so there's no word yet on exactly when regulators could give the planes the green light to fly again but reports say it could happen in january or february but the f.a.a. has consistently said there are no timeline they just want to make sure that it's all done properly blowing for its part on its website has a lot of information about what's going on with the $737.00 max they said the software is going undergoing rather an unprecedented level of oversight testing expert analysis from everybody and their brother pretty much as well as ensuring pilots and crews have all the information they need to fly those planes safely because as you said earlier that was more training was what the regulators investigators said was needed as well more to be able to handle any glitches that
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may come up sarah well it's certainly important that they actually take care of as much as they can possibly can to prevent any other situations but what kind of financial toll has grown in the 737 max fleet taken on boeing. hybrid was taking a huge hit the company said it would take at least $7300000000.00 hit because of it and it's reported 3 straight quarterly losses since the 2nd crash in march in ethiopia while profits trough costs related to these crashes are going right up some airlines have canceled their orders for the max while other airlines are demanding compensation for being unable to fly the ones they've got in their fleet because of the grounding so according to other news reports boeing has received orders for only 16 aircraft in the past month and they're also planning to give 100000000 to the victims' families and their communities the executives of course grilled about this they've talked of victims' families said that it's been a humbling experience and that they're learned a lot they're going to make. safety the primary focus at this time so we'll see if
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their public relations campaign their publicity campaign will convince the public to board these planes again once the all clear is given well safety is definitely important and it's going to be hard for people to start to continue to trust boeing but we do know it's cost the company a lot of money molly barrows contributor to america's lawyer thanks so much for your time and expertise. sarah thanks for an. the world's most valuable company saudi aramco announced plans for its much anticipated i.p.o. on sunday the oil tie in which is owned by the saudi government said the 1st offering will appear on saudi arabia's caterwaul exchange the company has yet to specify how many shares they will sell and at which price analysis expected analysts expect the company to sell between one and 3 percent of the enterprise aramco c.e.o. and president i mean nasser spoke about the importance of the listing on sunday in
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toronto. for us so. i think we are. listing the bottom which will increase our physically internationally a very strong company by shedding a lot of infinity as a quiet and he listed company that will be a lot of analysts that would be if you are one of the 10 conveyed it with the listed companies around co which has controversially valued itself at $2000000000.00 supplies roughly 10 percent of the world's crude oil and the company made $111000000000.00 in 2018 joining us to just discuss this on again off again i.p.o. and a bevy of other market related news is todd bubba horowitz chief strategist at bubba trading but it is a pleasure to have you. great to be here what's up there avco i.p.o. as we said has been on again off again at the center of this is the giant 2 trillion dollar evaluation is this going to have to come down before the public
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offering and is this going to be successful listing for the company at all. you know it's really hard to say broad because of your look at the overall package to get really true data from them you know it's not like there's a lot of the same laws as you fought here in the united states so you can actually get real live reporting i mean certainly they've got a great product they're going to profit and as long as there is going to be oil used it will be successful but again the. real question is can we get legitimate data from them and will be actually what we can use and i think what they're really doing now is looking for where they can really price it so they're kind of going through their own price discovery to debate how much they're going to give up over are you know i do want to ask a quick question a follow up on that are you saying because there are state run oil enterprise that we're not 100 percent sure what their numbers look like. you know we have the c c that you have 3 are required and they're always watching people's books right so again we can't watch their books just like we can't watch china so you don't tell me that you don't know if those numbers are real or if they're not real so it's
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always hard to tell if there is true profit or not it is that are they reporting enough profit to pay out what they're supposed to be paying looking at the numbers in the u.s. the dow during the s. and p. $500.00 and nasdaq composite hitting record levels on monday now so far this year the dow has witnessed an 18 percent increase year to date the s. and p. is up 22 percent and nasdaq has seen increases of 27 percent just this year now on this day to day we generally see positivity in trade talks as a reason for these gains but what's your analysis of these big jumps in the market during this year of 2019. this is scary isn't it that they just keep going up and there's no bottom to these markets look at the end of the day there really is nowhere else to go again so if you're looking for yield you have to go in the united states stock market you can't go to any bond market unless you want one half percent you can't go to the bank you can't go rolled wide so it's basically the entire investing world is pigeonholed into united states equities so what's going
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to happen is again they continue to push them up because people want yield they're chasing it and don't be surprised if the russell and the transports don't join the party now again this is never a good situation where there's are so much overall complacency that the markets will never go down again which is what people are starting to believe again because they believe this time is different at some point we're going to have a major meltdown once again as we've had made them before but for today new wife if expect new highs to continue watching these dull markets because that's what they are they continue to grind higher as a crawl climbs are all warry and people continue to say well it can't go any higher i'm just saying cash and of course it will continue to go higher until enough investors get in and then you start to see some selling all right now but what we're actually talking about markets going down here let's talk about a big stock that is kind of failing right now mcdonald's fired c.e.o. steve eastbrook for having a relationship with an employee and he will be replaced by chris kemp vince key who
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runs the company's u.s. business right now following the news mcdonald's lost nearly $4000000000.00 in value early monday morning and with stock prices dropping by 3 percent now it would seem that mcdonald's this giant worldwide brand would not be vulnerable to this type of scandalous headline what happened here. well look at easterbrook personal says he came into power the stock is going to 100 percent so versatile you look at how in the innovative he was now great he was for the company so this creates a little bit of fear were often thought no i'm sure that mcdonald's will regain what they have lost and you know i don't think it's a great buy yet but probably a little below. but again people get used to the same c.e.o. very much is what have won the apple one see jobs 1st of dollars and of course repassed away but of course. all time record high is it going to get there i think the same thing you can see for mcdonald's there's no word of the company but the initial shock causes many people to panic and sell out because he was so good for
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the company and they want to make sure the big down is still going in the right direction which i believe they will todd horowitz of baba trading thank you so much for your time and insight thank you good. results from a recent experiment suggest adopting a 4 day work week could increase employee productivity microsoft introduced the work life choice challenge in japan which closed its offices every friday during the month of august giving employees that extra day off the results were favorable microsoft released a statement that even though the amount of time spent at work was cut drastically productivity measured by sales per employee went up almost 40 percent compared to the same period the previous year but not just did they reduce working hours the meetings were restricted to a maximum of 30 minutes and online discussions were encouraged instead of face to face meetings and it's important to note that japan has some of the longest working hours in the world the challenge became popular among 92 percent of microsoft's
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2200 employees other favorable results electricity consumption is was reduced by 23 percent and paper printing by 59 percent this was compared to last august microsoft said it plans to conduct another experiment in japan later this year and its efforts to improve work life balance and efficiency what do you say 4 day work week 4 day work week is great especially when you look at it in the tech and manufacturing sectors they can really make a big impact on their employees lives and on the business so it works very very well i think it always just depends on the sector that you're in but absolutely that's where this time you can catch boom bust on direct t.v. channels or. 21 dish network channel 2084 streaming 247 on pluto t.v. the free t.v. at channel 279. or as always it is up at youtube dot com slash boom bust r.t. so you next time.
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playing. imagine being a 635 and you have a career and career involves using your eyes slowly in your computer and things like that in an office. perhaps you sort of getting to mix a circular t.v. you could have to stop doing all of this and this is how you lose the minutes must be free my world became smaller and smaller and smaller until i ended up running it and the box. very strong magnetic field held in my head. think of it like a real hard pressure my skin burned and that wireless access point air just continues on saying with our students in the schools. we are just continually bathing our citizens in this microwave radiation it is certainly electro small and
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it's getting worse. by mass kaiser or for my guide to financial survival this is on it's a device used by professional scallywags to earn money. that's right these has flaws are simply not accountable and we're just adding more and more to the. totally destabilize the global economy you need to protect yourself and get informed while skies are full. join me every thursday on the all excitement shore and i'll be speaking to us of the world of politics sports business i'm sure i'll see you then. the world is driven by dream shaped by one person.
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thinks. we dare to ask. a u.s. military convoy. from turkish militants this syrian national. group was fiercely promoted by america as no turn washington. coming up in the program against company rules mcdonald's farge one of its most successful c.e.o.'s ever for a consensual relationship with a colleague our guests debate the subject of so named inappropriate a furze and the. you know its c.e.o. i don't know how much time this guy.


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