tv Boom Bust RT October 7, 2020 8:30am-9:01am EDT
this is a boom bust the one business show you can't afford to miss. say ok in washington coming up u.s. companies are different pleased with president trump's trade wars with thousands filing lawsuits against the u.s. government over tariffs and president from the twitter instructing lawmakers to hold off on any stimulus negotiation until after the election meanwhile federal reserve chairman said there's little risk in overdoing it risks overdoing it seems for now to be smaller even if policy actions ultimately prove to be greater than needed it will not go to waste. we have a lot to get to so let's get started. on tuesday the european medicines agency or may announced it's reviewing the 1st batch of kogan $1000.00 vaccine data in a joint statement vaccine developers biotech and pfizer said the start of the review is based on data from laboratory in animal testing as well as early testing
on humans while continuing talks to submit data as it emerged this could speed up the process by allowing researchers to submit findings in real time this comes one week after the e m a started reviewing astra zeneca oxford universities are seen which is also in phase 3 trials meanwhile with trump determined to get a vaccine before election day the white house block the f.d.a. from new proposed code in $1000.00 vaccine guidelines the proposal would have required drug make drug makers out is to track the health of a clinical trial participants for about 2 months after receiving the final vaccine dose and made it practically impossible for the availability of a vaccine before the presidential election this is yet another sign of the harsh politics involved in america's vaccine race. trumpet ministration tariffs against china are causing some hostility at home about 30. $500.00 u.s.
companies are suing the u.s. government claiming that trump's trade war with the asian powerhouse is doing more harm than good joining us now to discuss our boom bust in such a journalist pence juan and henry ford which board member with the british american business association ben let's start with you give us a rundown of what this lawsuit looks like it's actually a couple different lawsuits kind of being filed in tandem one of them is a lawsuit that essentially says that the trump of ministration failed to impose tariffs within what they call a required 12 month period which they say is in line with the world trade organization essentially that tariff they say those additional tariffs on chinese goods have been that what they call a wrongful demonstration of administrative process now while you have that happening from those car makers and auto makers you separately have a lawsuit being filed in tandem this one is by a company called dana corp it is an audit will build manufacturer parts manufacturing into g.e. and what they are suing over is say that the administration's quote unbounded and unlimited trade war impacted billions of dollars in goods imported from the
people's republic of china so essentially what you have is essentially a whole bunch of different companies as you said $3500.00 companies that's a lot of companies who are suing together to essentially say the trumpet ministrations tariffs on china were unfair to them as a company and were illegal under the w t o and i think this is going to be a very difficult case to make because my understanding is that as president of the united states the president has the authority to impose those tariffs that he has that right the question is whether or not the courts will agree with that but i think this is kind of a long shot lawsuit when we know that a lot of these companies a lot most of them obviously suffered from from these terrible loss business that what it did to it to world the world economy hellery do these companies have a legal footing for this wealth or a 1st of all you know i'm not a lawyer and that isn't my expertise but from what it looks like this is this case is going to go to the international trade court and basically i mean. he's from the risible institute. all the things he says he says there's going to be
a big check from the u.s. government if this is ruled in the favor of these companies and as ben mentioned this is many companies many common factors like ford tesla you go to also disney wal-mart home depot so this is a major a major force against the u.s. government and this ruling i do think one thing it has all come down to what president trump is allowed to do but also the timing a lot to do with this case is the timing of when the towers were imposed off of the release of a report as to the impact of such tower os and secondly it's not really it really shows that it's not really about sort of the free trade is really about what's good for the nation most of these companies are obviously doing what they're supposed to do they're acting in the best interest of the stockholders and shareholders not necessarily in the best interest of the u.s. that's what's at the heart of this and if we cannot control how the u.s. trade court is going to rule but it will be a big check from the u.s.
government if those companies do prevail well much like a said obviously the president is allowed to and is given the authority to do these things and i want to turn it over to the u.s. government ramping up the tough words to secure minerals that are critical to modern technology but who supply it's actually dominated by china a strange hold that miners warn it could actually take years to break why is the u.s. taking a step and why is it taking it now. so i want to comment on that but i will say one more thing about the other the other story in terms of the world court that would be looking at this and hillary makes a good point this is an international body that would rule on it so even if you win what does winning actually mean does that world body have the power the mechanism to enforce anything or even make the u.s. government pay in many cases they don't ever seem to have any teeth behind what they do having said that let's talk about these mines because this is a big deal so the drug administration essentially has put forth some executive orders to speed up the production of mines in the united states. and mining in the
united states in specific to metals like nickel and cobol which are essentially used in the manufacturing of batteries and and cell phone parts and technology and the reason that significant is because as you all know china is the world's leader in these areas china has more of these minerals them just about any place in the world especially in terms of development mining which means that china controls the supply and the production and so what the truck with ministration is trying to do is slow that down and essentially say what we need more mining going on here in the u.s. now this is something i i think is actually a very good idea by the drug administration because it does not require overthrowing the government around the world or taking over some other country in order to get their stuff that's been happening in some cases where you have like for instance the president of bolivia who says that the lithium mines of bolivia when he will try to nationalize them all of a sudden he there's a coup and he gets run out of power so there's questions about you know when this happens around the world but when the president says let's just be the production here in the us of our own resources i think that's actually
a very smart strategy and it's one that ultimately creates independence for the u.s. in these areas where that should have already been happening i think a long time ago and it's interesting comes out now mostly to there's been a big push for this in the last couple of years and not a lot of people are really talking about it being an issue so it is one thing that trump is trying to to get the ball rolling on the hillary i want to bring him back to china and trade they've engaged in this ever increasing tech and trade war with the u.s. as we just discussed but it may also be creeping closer to a new trade war with australia this time what do we know about this yes correct and actually i'm going to do kind of a bend here i'd like to just actually add a point to better access excellent point when he said tom daschle is the 1st president if you do remember correctly people almost laughed at him when he talked about china being a major enemy not russia and i will say this you know over 10000 chinese companies operate in africa they are basically mining 98. 7 percent of all the arabian
in the world what is a radio you have heard already of most people have and it goes into 100 percent of cell phones so basically the whole cell network could come down if we don't get some of that a radio which is mainly in africa and the 2nd point on that is that it takes about supposedly about 10 years to set up a mine to mine these part of these precious metals in these rare metals so these are minerals so what's really important is that we do it now just like gas and opec was it was when we started to drill here in the u.s. that we became energy independent this has to happen and trump is the 1st president to really put his foot down now to answer your question with regard to australia absolutely australia and china have a tremendous trading partnership 27 percent of all. trade goes from china australia to china and so it's huge and china recently has put his foot down and impose an 80 percent tariff on bali they have just expelled 2 australian journalists they are basically pushing the screws and tightening the screws on
australia the question is why the reason is because the australians are looking deeply in to probing the code that 19 or as many call it the will handle the chinese virus they are probing and wanting to know where this came from exactly and they've made some great strides in this arena and that is supported li why the chinese government has ramped up these tariffs on the technically bali and also they're saying that the chinese are basically saying that the australian wine manufacturers a dumping on the chinese market they're making it very tough for the australian exports and or do to code it as the covert investigation it is and australia became the 2nd country joining in added states calling on the investigation. on china then and now let's talk a little bit about the upcoming election the presidential election if biden wins do you see him many critics say that he won't be as tough on china others say that he may go easier the summer saying that he will be tough because. he's just going to
be as hard going against china that the trade war will remain what's your take where will we stand if if he does when yeah i don't think there's any chance that joe biden is going to be as tough as donald trump is on china 1st of all donald trump said he was going to be tough on china during the campaign no one believed it i think what we have seen whether you agree with him or not and i think there's a lot of places where we can point out places where the president may be wrong in some of the stances he's taking and where he may be right in some of the stances he's taking but regardless of how you feel about it this president has been absolutely forthright in his attempt to weaken china because he believes that it is weakening the united states president if there is a president biden you have to remember that as vice president under president obama they did nothing to slow down china and there was no effort made during the 8 years of that administration to slow down china and remember that joe biden of course actually work specifically with china helping helping to open up china to the world
trade organization so biden's background with china he's had a long history with them and i don't i can't point to one single instance where biden really tried to crack down on china in the past so why suddenly would he do it in the future i just don't think it makes any sense and it's become a bipartisan issue in congress where both sides are kind of now saying that we have to go against china so well we'll keep following along if there is a presidency to see what his stance will be when was kosher fence want to heller for which of the british american business association thank you both for joining us today. fashion giant each of them has been fined $41000000.00 for allegedly tracking hundreds of employees personal data on a company database one german watchdog issued the fine to the company's service center in nuremberg germany the information included meetings and workplace conversations involving vacations illnesses even religious beliefs and family problems and they were later used to evaluate employees. in a statement h. and m.
group said the incident revealed practices for processing employees personal data that were not in line with guidelines and instructions adding takes full responsibility and wishes to make an unreserved apology to the employees at the service center and nurnberg time now for a trick break but stay here because when we return we'll talk about president transplant apos stimulus talks and discuss which economies may have the best chance of recovering amid the pandemic as we go to break here the numbers at the club. over.
the summer just know about the debt and the struggle to. keep the one that can lead to well you know that little healthy. living but there are your arsenal friends so that the odds are still so but they're still you're hoping to do something this year. to try. to argue about them and i think that there's a play on locked themselves are going and i was able to put them on the back you know we're going there.
ull. join me every thursday simon short and i'll be speaking to us from the world of politics. i'm sure i'll see you then. is wrong with us as american citizen but he didn't want to talk to. the other. guy and i think. i would vote for a republican i would vote for anyone who is not you and has half a brain defeat. defeat yet. my 2nd wife. she can handle. she and i divorce because
our trouble is a lot of the president and i for good for her and she can't stand for. that when the most important election. in our history. list of the months to go before the next presidential election is the atmosphere in the us now. one of the highest priority programs only they vote they do next. just some of the questions we feel to be america. as many were hopeful for some sort of stimulus deal this week when president took to twitter telling capita. hill to hold on stimulus negotiations until after the
election markets reacted quickly to the tweet and still democrats and republicans remain and gridlock over the $2.00 trillion dollar coronavirus relief package both sides unable to find common ground on enhanced employment benefits this comes as federal reserve chairman jerome powell called for more help from congress expansion is still far from complete at this early stage i would argue that the risks of policy intervention are still asymmetric. too little support would lead to weak recovery creating unnecessary hardship for households and businesses by contrast the risks overdoing it seem for now to be smaller even if policy actions ultimately prove to be greater than needed it will not go to waste the recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods. for
more let's bring in boom bust co-host chrystia and founder and chief market strategist of the technical traders dot com chris or meal and chris let's start with you now instructing lawmakers to hold off on any stimulus negotiations and many are skeptical that it was going to happen anyway does this really change anything or is this just a sign of confidence from the president that he's going to win the election. i don't i don't think it's good for the markets i mean as soon as a kind of came out we started to see selling across the board i think people are actually going to get in the hope that maybe it is going to get fast tracked as of yesterday and and then today he says no so i think it's affecting the market it's going to definitely be a problem with pulling prices up but i can't see it helping them in the polls by putting it off i think a lot of people are kind of clean on and waiting for some type of stimulus plan right this is something the president has had on his side rather that markets were doing well and as long as markets were doing well he was going to be ok i want to read you a nancy pelosi house speaker her response to this today once again president trump
showed his true colors putting himself 1st at the expense of the country then added sadly they are rejecting the urgent warning of federal chairman powell today that too little support would lead to a weak recovery kristie what's your take. well i think at this point in order to get back the market needs additional stimulus and i think your own policy urgent warning has basically just fallen on deaf ears as part of the trouble right now is halting further stimulus and basically withholding life support from the market from the companies from the businesses that really can't afford to wait these 2 more 2 additional months because they will eventually bleed out and it's not just these businesses it is the consumers because right now this entire market has been relying on consumption and the strength of the consumers but as we've seen last month already consumers they're rapidly burning through their savings already something which has so far allowed the economy to remain stable consumption
basically held us up the last quarter and right now we're expecting a pretty strong 3rd quarter but that's only because we had such a terrible negative 31 percent in the 2nd quarter so you're really comparing against a very low benchmark right now so with no end in sight for kovan 19 no vaccine in sight and compound that with flu season on top there is more risk to the downside right now for the overall economy and we see additional shutdowns happening in new york already so without additional fiscal and monetary help we could end up in a situation that is worse than what we've already seen in march because we're already starting off from a lower threshold companies and businesses they have already burned through their chest the war chest they are they have low cash and their balance sheet is has already been weakened so if it falls we stand to go down worse well christiane powell said that congress it needs and needs help from congress right that they are now they need the stimulus people are still suffering from i'm goin meant that they can't get to a deal now this comes on the same day that president tweets this now our congress
and the fed 'd just on different pages. obviously are out there they haven't really going to go along from day one it seems so they're on different pages which is not a good sign for the economy really we need to see things come to. either and at this point i mean it's we're going into election that is very uncertain and a lot of people are really in need for this kind of stimulus plan because as christine said people are running out of money they're running out of their borroughs tax free deferred interest kind of loans and if this money doesn't come through now it's not coming through for months and it could cause a cavity more or less in the small business sector when it was interesting because yesterday or at least on monday headlines were saying that there was going to be a deal made one way or the other. and had these talks that lasted an hour they remained pretty much in gridlock over those enhance unemployment benefits and that number unemployment rate is is actually still going up unfortunately chris i want
to ask you here europe's economy recovery has also fall now and out the continent is actually being hit by a 2nd wave well guard is prepared to add even more stimulus and cut rates to support it will that be enough and what's the situation like in europe. the europe it's really like the rest of the world i mean it's going to be force for all force to figure out what the new operating kind of procedure is going for it as as much as we all want this virus economic event to come to an end we have to be realistic about this process because the reality is we're probably another 12 to 24 months away from something really coming together with with coded in the stimulus works that we've seen in the past it works for short terms things like 911 terrorist attack like the 2008 credit crisis those events could be and were supported with the central banks and stimulus plans to jumpstart the economy in trying to get
things going but the reality is virus events like this pandemics there's been hundreds in the past or a least 100 days they've almost always taken 24 months to work through the system in the process before things kind of can materialize new processes new way of dealing with things come into play and sometimes it's 3 to 5 years so i believe europe the rest of the globe who are in for a really long recovery you look at the you know the ripples we've seen from the stimulus to central banks this year it's been great it's really helped over the last 7 months but you know longer term we've got major economic problems that are just something we're not going see a broad based recovery like in 20082009 this is a long term problem and you know it's going to require either a ridiculous amount of stimulus going forward to carry it through so i don't i don't think stimulus is going to resolve the issue we really do need see people get back to work real organic growth but it's definitely going to help support things
temporarily and hopefully we can see the economy get some traction hopefully be like a natural disaster and like you said a little differently though because it is the recovery is expected to be a lot longer kristie coleman sachs they're saying that asia is best positioned for an economic recovery compared to the rest of the world. because that it was mostly successful in containing the coronavirus how have they managed their policies and should the rest of the world model their policies after asia well asia has taken drastic measures from the onset of this entire coronavirus so if you remember it actually received a lot of backlash in the beginning when it shut completely just shut down shutting down travel barring any sort of interaction with very strict fines and punishment if you're caught outside for any other reason other than necessary activities like grocery shopping so there were no holidays none of these european travel vacations back and forth mass gatherings demonstration rallies that we've seen here in the states or parts of europe and it looks like asia's approach while it yielded
favorable outcomes it will be very difficult for the rest of the world to model after them because there's simply a huge difference in cultural values and attitudes in asia the attitude is more so about the collective i don't want to get you sick so i will wear a mask i will stay indoors in the west is more about the individual and their rights i'm going to do what's comfortable for me and it's my way right whether i decide to wear a mask or not so it's a completely different attitude and when you have a lot of people like that as a collective it's going to be very difficult to enforce all these policies because then you get into civil of civil liberties liberties and such and then you also have very different policies that have been instituted in asia the stimulus policies were all about were not directed at income replacement such as here in the united states is more so directed at industrial production and business services and as a result consumption actually trails that of the west but it is growing organically unemployment is actually getting better in asia so economies such as singapore are
now they're set to benefit hugely in this upswing from china but right now the focus is on the chinese consumer and continuing to monitor whether or not their consumption levels can actually mirror that of the u.s. speaking of the labor market recovery here it's obviously slowing. many workers stand to face these along on unemployment terms how do we dig our way out of this hole or how are we going to handle this going forward out we're not simply just going to hand out unemployment checks forever are we. you know they're i don't think there is a short answer as short an easy way out of it i believe the economy economy's in a transition based on history and pandemics that they were in here for at least another 12 months this is going to be a long 12 maybe even 24 months of a lot of high unemployment the thing is it's going to take a long time for you know the displaced workers who. obviously change how business
is run some thrive front some are dying but those displaced workers now need to go out they need to be retrained or they need to find new gave work new projects and it's going to take a while for those people to be very creative and come up with new opportunities and that's the thing with a big change like this it's changing the world how we do things but it's going to start creating new opportunities new products new services new types of employment and that's going to take a long time and to materialize before it even shows up in economic data so i think there's a long path ahead of us and again this isn't i don't think quick a dip in in broad recovery like we saw in 20082009 this is going to be something where i think the government's enterprises institutions really need to figure out where they can help consumers and businesses to transition to does a new way of business new way of life and help these new kind of job opportunities start to grow and thrive so. it's going to be i think
a long road to get there but i mean people are very creative and where there's a will there's a way so right i have faith that will come through eventually here and it's looking like something they're showing that a lot of americans are taking on the entrepreneurship and doing so and still close to a 1000000 americans are filing for unemployment every. that long road to recovery we'll keep an eye on that was bill must co-host christi i and chris for me and founder and chief market strategist of the technical traders dot com. that's all for this time but we'll see you next time. i.
dillon doesn't sell a lot but the bill is double the. amount i want to make i want to fly it why the fuck outta all of the. illegal proving but there are some friends that the us are still slow but the sole beautiful thing to do something to see. which for sure. they have about the political ally the south pole and i was with someone of that kind of a look at their.
nuclear become a battleground in the us in vermont people are demanding the shutdown of a local plant. is right now my focus because it's a very dangerous oh no care power plant the owner is attempting to run the reactor beyond its operational limits this case just sort of puts a magnifying glass. where's the power in this where is it going is it moving more towards corporate interests or is it more in the idea of traditional to just.
our ally with the people this case demonstrates that struggle in the very real ways . the top stories in r.t. russia slams the report of the global chemical weapons that russian opposition figure alexina family was poisoned with an. agent moscow says it's all about bringing in a new round of sanctions its purpose is obvious denigrate russia with unsubstantiated accusations and thereby create a far fetched reason for introducing another tranche of sanctions against our country meanwhile a former chief of. army has been barred from speaking at the un security council about a controversial probe into an alleged 28 chemical attack in syria. from the russian side. to come with the limp.