And yes its robert peston. Next. Prime minister a couple of quick is if youll indulge me they just put a question to the u. S. President trump and what President Trump said was he now thinks it highly likely that theyll be a no deal hes right isnt a. He said the you is a tough and rather of what he said confront terrified it before we before we go any further did exactly that we that what we did i dont sort of. It back him up come on back him up and you know he said something or ms wright said exactly ok its going to be impossible except to use. That the president said something about how long he was a tough negotiator and get it. President in flood just that he thought that you know the breaks if you agree with that sapporo. Gallery in Westminster Abbey its all parties to issue a declaration calling on you not to use the device of suspending parliament to force with no deal but it was to be give them that commitment that you want to spend part of that ok were going to achieve that thanks for the thanks bob and i think i think were really sort of circling back over the same sort of ground here i i didnt hear the the president say exactly that he thought it would be a no deal because i think what i heard him say was that the e. U. Are tough negotiators thats true but then so are the americans and so indeed of the australians in the new zealand everybody everybody the top to go share your pretty tough negotiator like that so look the but that doesnt mean we wont do a deal and i were working very hard to do that it will be it will be difficult there are theres a substantial. Disagreement but my job is to make our case and you know what our cases the backstop to is and he democratically keeps the u. K. Locked in the e. U. Use cost to the arrangement it keeps the us locked in the in the legal order of the e. U. Without any ability to influence those things its got to come out its got to change i made that point very very clearly to our friends i really think that that point has now landed so lets see where we get and i hope that friends and colleagues in parliament will be supportive of our efforts to get this thing done to to get rid of the old with the old agreement and. Do a much much better deal that. What we need to do and im going to go to the folks of the sun very if i am Prime Minister so is the quick another quick break youre roughly 25 days away from this deadline to deliver a new or tentative to the backstop can you give us it seems as though there is some work taking place behind the scenes that the chances of it are improving you mentioned yourself what work is going to be happening now on this backstopping to me that you talk about and if i can eat the segue into something we may all want to talk about the cricket would you back course event stokes to be knighted and can you talk about his glorious innings you know look i mean 1st of all i mean on the on the on the on the back side back to me youve got to be summed up the operation that we we hope to be to be doing and thats thats thats what is thats thats the necessary procedure. Its a big job but its we think it can be it can be done on the i watched it i could only watch the highlights i thought it was one of those extraordinary things ive ever seen the shots i saw absolutely incredible i think i think ive already promised that he should have been stick should get it going to get a jeep dome so i dont think you can you know you cant i cant i cant go any higher than that but it clearly is not a matter for me but for some on this committee or other and im sure they will take the proper decision in due course paul. Pulled from her 1st Prime Minister the archbishop of canterbury plans to chair a Citizens Assembly to stop a new deal breaks it is that the act of a charitable christy and or is it yet to the priest but id like to see the evidence of that paul im very today i got a very nice letter from the archbishop saying that he wanted to to to work with me to bring our country together after a break through to me it had been done so so thats thats news to me that particular development that. Well i mean far as i understand he wants to bring the country together i certainly support him in that im not going to because just go yes peace. I hope and believe m. P. s will deliver brigs it the statement there by the u. K. s Prime Minister baraks johnson addressing a press conference at the g. 7 summit and berates he dodged the question though asked twice about whether or not he might dissolve parliament or give a commitment not to dissolve parliament he said what theyre calling the backstop ectomy was a big operation but he believes you can get it done referring to the backstop precondition to that deal between the u. K. And the European Union that his predecessor theresa may worked out which for us johnson is busy trying to get undone lets go over now to james freys he is live for us at the summit living up to his reputation for saying a lot but not saying so much at the same time james what did you take away from that. Yeah its interesting this cheese 7 youve clearly had a different leaders with very different agendas and strategies and you have for example an italian Prime Minister who is not really in the job anymore you had a u. S. Prime minister whos ever is focusing on trade not much else and of course the u. K. Prime minister who may not be focusing on brics it but its certainly dominating every conversation he has that spot at the beginning of the g 7 meeting with donald tusk the chair of the European Council where he said that johnson goes risk going down in history as mr no deal and the questions coming from the u. K. Press corps all about what happens in the very short time ahead before that deadline on october 31st. And the prospect of a no deal and the bigger prospect before than of a battle between the u. K. Parliament the house of commons and the Prime Minister the Prime Minister suspending the commons that focusing very much the discussion in that News Conference and as you say he was very careful to try to dodge all those questions interesting to when you got to the opening part where he was trying to summarize some of the things discussed in the g. 7 a very different sort of discussion about things that the u. K. Thought was important education for girls and biodiversity not the sort of things that came up in the News Conference you listen to last hour with President Trump i thought interesting that there was that focus from the u. K. Prime minister on biodiversity losing species around the world and the focus on the climate when President Trump was not even in that the climate session of the g. 7 there were just 6 leaders around the table for that particular session and President Trump when he was asked about the climate and whether he cared about the climate. At his News Conference did say he was an environmentalist revenge said the u. S. Is becoming the Number One Energy producer in the world im not going to give all that away not for dreams and when. It is interesting look james theres a lot of things going on obviously at the g 7 is it fair obviously brags there is still a huge cloud that hangs over knowledge of the u. K. s horizons but the whole of europe if not the world but is it fair to say at this point that the g 7 seems to be ending on a slightly slightly more positive outlook than it began with at least given whats happened you know with the us japan talk of the us japan trade deal whats happening with iran whats happening with the digital tax versus tax on your wine issue between the us and europe so on. Yes i think president marc wrong in the end pulled the rabbit out of the hat i think this g 7 certainly was not the the story of the crisis that some fear it could have been remember a year ago the can of the g. 7 where they couldnt get a deal on climate in fact they all thought that donald trump had signed up to the communique on climate he got on his plane he was actually going to singapore because it was just before that 1st summit with kim jong un in singapore and while he was leaving there announce no he didnt sign up to the climate part of it and that led led to a pretty ugly spot hat and President Trump tweeting some pretty nasty things about the promise to recover the Justin Trudeau so the french i think will be breathing a sigh of relief that this is gone reasonably well one of the reasons for that is they decided to dispense with that communique so im sure there are some cynics who will say that all the leaders came here. And had very different views and left with very different views and really it was a lot of convincing others that you believed in something you didnt believe in certainly though there are some concrete things you mentioned some of them the other one of course is that Digital Services piece of this certainly with regard to a row between the french and the u. S. The threat that there would be very heavy tax on the u. S. Tech companies in retaliation potentially a tax on french wine going to the u. S. That seems to have been averted with a deal between the u. S. And france and the idea that there could be a wider. Deal on this Going Forward all right james spains there are senior diplomatic editor life from here its. Bring in modern one bashar al jazeera senior political analyst joins us from london welcome back marwan weve chatted about how a bunch of things with james so let me raise iran again with you and just to put things again. Into perspective as i was saying in july trump was saying hey id meet with iranian leaders any time without preconditions and it was iran that was saying no we need sanctions lifted before we meet all that seems to be some moving choreography here in positions visibly whats happened here its right to explain to us. Well absolutely look clearly president top was not able to get the europeans on his side in terms of them on izing iran and putting pressures on iran to change the deal but also the europeans are not able to make the american president reverse his position on iran so now everyone is looking for a fair way out of the crisis especially that u. S. Sanctions against iran arse apparently or perhaps i would say certainly biting that iran is suffering under american sanction especially secondary sanctions where the europeans and others are finding it difficult to trade and invest and so on so forth with iran and so the french are coming out with this. You know mediating position whereby maybe eventually the iranian and the american president will meet and meaning that the iranians would make a concession and meet while the sanctions are still there but in return the europeans will be able busy to deal or trade with iran while some dialogue is going on between that on washington and thats the key point and you mentioned what would the u. S. Position be is it about to soften some of the u. S. Restrictions or punitive measures that would target european companies. That do business with iran. My guess is we are heading down the road especially if there is a 1st meeting and that 1st meeting opens the door for other meetings because as you stated earlier they are indians would basically be doing any meeting with trump because as they put it they cannot trust him that he lies that he walked out of a deal that that he imposed sanctions when he shouldnt have and so on so forth but now that they are changing their position clearly the europeans might have some role to play. Oh i lets talk a little bit about the u. S. China dynamic now does it look like theres been a change of mood during this g. 7 summit well look i mean let me just you know lets stick as the french call. You know kind of reading a bit lets you know since im away from berates i can look at the situation maybe with a little less pompous you know seriousness if you will as european read leaders are trying to project at us so lets think about what the amount of what the american president said both about china and other issues so the american president said the following he said i do not care about money. The billionaire president does not care about money he does not care about politics. And hence the various things he did or does such as where and how to host this and that does not get out of politics 3 that he knows and does about Climate Change more than almost anyone and that the chinese are dying for a deal when they just imposed sanctions on the United States so really its difficult to say with the american president when it comes to china and to comes to trade war what becoming really a war of attrition an economic war of attrition between the United States and china that is really taking long lets lets remember that american president said it would have been done back in may we are in august in the world and Nothing Happened so really i think this is going to be a tough one and i think the markets are responding accordingly all right well leave it there thanks so much modern one bashara. Its moved to other news from around the world new visa rules barring venezuelans from free and now in effect ecuador is the latest south american nation to tighten its immigration regulations at least 4000000 people have left on his way there in the last few years to escape the political and economic crisis our latin america and its reports from on the ecuador border. Well the deadline has elapsed and there are still hundreds of venezuelans at the very least on the colombian side of the border about 200 meters in front of me who are not going to be able to come here. Throughout the day a 1000 venezuelans through before they were required to have to get into this country some of them have been taken by bus by the authorities here to the border route where many of them want to go with the problem is that they wont be able to get in there either without a visa there are thousands of young children. Pregnant women elderly people very young people one girl was just sent back a short while ago because shes only 17 not of legal age she had to go back into the. Everybody has a dramatic story. They cant live in israel anymore but they dont have jobs they have no money most of these people no food its freezing cold here in ecuador its 3000 meters above sea level at this moment and people are just camped out here wrapped in little blankets or anything they can find towels to try to make it through the night before they take off to try to see what is going to become of their lives so the new Sovereign Council has declared a state of emergency in the city of port sudan after finding between 2 rival communities killed 17 people the council site the provincial governor after 3 days of violence more than 100 others have been injured in the dispute between the burning tribes and sudans new Prime Minister is. Field for International Support as the country begins its next steps towards democracy and the other hand doc says his government wants to end sanctions what he called sudans pariah state economy collapsed under former president ahmed bashir is 30 years in office ended in april when the military deposed him after months of mass protests. 7 months after he took office the president of the democratic republic of congo felix just to carry the has named a new government less than a 3rd of the 65 member team of been selected from his direction for change party the rest are from former president Joseph Kabila sparty 3 quarters of those in the power sharing government are serving for the 1st time. To take you through some of the headlines here in aljazeera now g 7 closing statements have been dominated by comments about the Iran Nuclear Deal french president emanuel. Donald trump to meet with irans president to diffuse months of tension trump says the conditions must be right for that to happen i mean it was i what i said by telephone to president rouhani is that if he accepted to meet President Trump my conviction is that a solution can be found we need to sit around the table and i hope that over the next few weeks on the basis of these exchanges that we will succeed in having a meeting at a summit between President Trump and president rouhani. If the circumstances were correct toward the raid i would certainly agree to that but in the meantime. They have to be good players you understand with me. And they can do what they were saying theyre going to do because if they do that theyre going to be met with really very violent force with kevin no choice so i think theyre going to be good. In british Prime Minister Boris Johnsons closing statement at the g 7 he said his countrys priority is to avoid leaving the European Union without a deal in october pakistans leader says hell go to any length with the issue of indian administered kashmir new delhi revoked the regions autonomy 3 weeks ago earlier indian Prime Minister Narendra Modi said no foreign mediation is needed. Brazils president dad was so narrow is rejecting the g 7 is offered to help fight the amazon fires the leaders have agreed to a 20000000. 00 fund for countries affected by the flames but also now are says the plan would treat brazil like a colony or a no mans land. The he sent the military rather to help fight the fires in rwanda only a state but critics say his government has been too slow to react new visa rules barring venezuelans from freely entering ecuador are now in effect ecuador is the latest south american nation to tighten its immigration regulations the uns investigator on religious freedom has released his assessment of sectarian tension in sri lanka un special rapporteur Ahmed Shaheed says the government failed to protect against hate crimes and allowed mistreatment by law enforcement. Its counting the cost now were back to top of the hour. Hello im adrian sutil this is counting the cost of aljazeera a weekly look at the world of business and economics this week we check the pulse of the Global Economy the age of populist governments and ask is the independence of Central Banks under threat. Unintended consequences the Global Economy takes a hit from trumps trade war with china and the i. M. F. Warns of more pain ahead from the missteps of briggs and trade. Its been a pretty eventful year so far in the world of geopolitics and geo economics and seeing as its all guessed when most of the Financial Markets go away for a vacation and we thought that it would be the ideal time to take stock and what a year its been for the independence of Central Banks governors have been threatened resigned or been fired by populist leaders the Global Economy is slowing thanks to the young going trade war between the United States and china the International Monetary fund cut its Global Growth outlook saying that missteps on trade and briggs it could hurt any recovery the World Economy will expand by 3. 2 percent this year the fund said that growth rates would be the weakest since 2009 but the funds growth predictions are far more optimistic than those of some independent analysts and sanctions and the threat of sanctions have ratcheted up the tensions in this part of the world the middle east the own growing breaks it saga. Actions that could change both the political and economic landscape and not necessarily for the better weve got a lot to get through so without further ado lets bring in our panel joining me in the studio is ackbar khan senior director of Asset Management at our eye on investment joining us from one of sallys is him in a blanco is the head of Latin America Research at various maple craft and in sydney we have tim harcourt tim is the j. W. Neville fellow in economics at the university of New South Wales and the author of the airport economist and trading places welcome to you all good to have you with us on account of the cost to start with you u. S. Fed chief jerome powers been on the receiving end of some withering attacks from President Trump what do you make of that is the independence of Central Banks under threat i think independence of Central Banks is independence in ny im only in i think all Prime Ministers and president s to try and influence them in some current of why President Trumps a lot more blunt than others of course and he made it very happy very clear that he was unhappy with the decision and took to twitter as easy as he always does in a sort of new why of pain president we had that rate cut from the fed a couple of weeks ago to me we expecting anymore well the fed governor said he wasnt i mean he said he was just going to tinker. And i guess President Trump was mournful of the. August the stance of the European Central bank and also in cutting rights powell has said who tinker a bit. By sickly reasonably reasonably hawkish compared to other other other Central Bank Governors but he did not rule out possibly cutting again but that didnt seem to be enough to President Trump. Turkeys Central Bank Governor was fired the new one brought in by president did exactly what you want told him to do what do you make of that. And interestingly enough the markets liked all of what was done so there was a lot of fuss about Central Bank Independence it in turkey as weve seen in other countries you mention the us its happened in a host of countries as jim mentioned in easier india etc etc so theres a lot of fuss when the when the hand changed the governor they slashed rates as he wanted as trump pointed and since then the lawyers strengthened significantly they just came out recently and lowered their inflation forecast for the year as world the turkish authorities and so the markets actually interestingly enough responded quite well so the market saying the other one knows more about the economy than the central bank of fact its essentially given in given the green light. Mexicos finance minister quit why well i mean theres theres clearly to come submerging in the Mexican Government one its a pragmatist and one is a more dogmatic one and clearly the right now the dove matic more populist arm of ministration is gaining strength and so the finance minister clearly you know showed some serious policy disagreements with the government and decided to. Move away from the administration and thats something that you know were now seeing in the economy but we have been seeing in regulatory agencies since the beginning of the administration so its a trend we expect to continue ok so it is resignation be seen as interference in any way well i mean you know we have been seeing it in latin america not just in mexico and from the you know different opposite ends of the political spectrum so we look at brazil and we look at levies resignation from the Development Bank in brazil earlier this year you know of course that was the reason for that was alleged intervention from president also narrow you know the question of institutional independence more broadly not just Central Banks in latin america its one. Heated debate and Central Banks in the region you could say again in the pendants just you know 2 decades ago. In real terms but for the most part theyve never been fully independent and a lot of political interference remains in most countries with some notable exceptions maybe t. Lead being one of them all right lets talk about one of the years dominating stories that the trade war between the us and china. China is hurting growth is slowing should we be worried well i think we should in the sense that. The last china used the number 6. 4 what was not what weve been used to in the boom times and so i think there is some impact that the tried war is hurting between the u. S. And china and also you know asia theres a tried war in 9 between japan and south korea so there is some fear for that and just to pick up. The last point you know in latin america the new Mexican Administration has a polished mexico which is actually the tried promotion i should say here that attracting Foreign Investment and tried. To mexico and given mexico been a member the Pacific Alliance in the Transpacific Partnership thats quite a negative step so i think. Around the world latin america and the u. S. We are seeing signs of protectionism and economic populism which has has reasons for all of us to fear from the middle east to turkey to argentina. If any one nation should have benefited from this trade war between the u. S. And china it should have been brazil as a as a brick nation but also nora doesnt exactly have the best of relations with that with president cheaters. Well i mean i think we dont really know yet what the relationship is not because obviously the rhetoric during the Election Campaign was very negative towards china but you know the reality of campaigning and governing her very different and coming to government and president also narrow has to you know take into account that China Remains one of brazils main trading partners and that the export of soft commodities namely soya is dependent on chinese demand and so i think you know the announcement a couple of weeks ago that he will be traveling to china at the end of the year to seek new trade agreements new negotiations does point to a more pragmatic side you know aside from the the rhetoric china rhetoric that he will maintain those relations now how warm or moderate will those be i guess well have to wait and see. The destroyed war a global slowdown depressing demands of oil thats thats not good for this region the middle east in particular a region thats dependent upon oil is it its depressing demand in in general also for oil all that depress demand combined combined with increased supply coming out of the u. S. Shale production obviously compounds the problem which is why russia and opec are having to fight even harder to cut their supply to offset both the higher supply from the u. S. And whats now turning out to be less growth in demand so russia and opec have their work cut out for them to be further than theyve done a reasonably good job in keeping oil in the mid sixtys if. You know at the end of last year we were in in the low fiftys from an oil price perspective so its the battle continues is opec so relevant across. The nation that were in right now cattle are leaving opec this year well opec is relevant because oil pretty. As are all production is focused with in russia and opec countries and now in the u. S. So if 2 thirds of that is in terms of russia and opec are working together to bring down their production of oil and thats obviously helpful for the Global Supply and demand balance ok lets move on to the u. S. Debt ceiling are 22. 00 trillion dollars and rising whatever happened to republicans fear of a debt of wanting small government thats politics isnt it so the u. S. Has a 110 percent of debt to g. D. P. Now it was in the mid sixtys about 65 percent or so debt to g. D. P. Before the financial crisis 10 years ago 12 years ago so its risen quite markedly is it should we be worried about it is it a problem it is obviously having more debt is a problem but when the country that has more debt is United States and they can just keep printing more money as they have shown a willingness to do over the last decade its less of a problem than if other countries did the same thing printing money surely sometimes that sometimes the pictures have to come home to roost you cant keep printing money forever can you you cant but the obviously Central Banks globally have printed about 12. 00 or 13 trillion dollars since the financial crisis all it does is it pushes the problem further down and from a political perspective thats helpful because it pushes the problem out of the election cycle and and also it is the Central Banks didnt think they had any other choice frankly when they started printing money it was an unprecedented policy approach but they felt they were facing unprecedented times jim should we be worried about debt the new thinking it seems among more than Monetary Policy advocates is that debt no longer matters all. Strongly we had to do it and deficit. Before the election the elections over its sort of going to close a very low in any case so i think. Provided youve got. Quite an export process as i cry. In the last issue the last question where we talked about brazil and china both a strong brazil we have. Help with strong Commodity Prices so you know strong is had a morning boom with exports to china or brazil which had a dawning boom would saw your bones and so on so i think if youre a situation where your commodity economy and you can make your interest free permits i dont think that is as much an issue as we thought weve sort of gone away from a debt and deficit fetish in a struggle because its been so in as more political. Power in anything of you know grounded in an economic theory. Does debt matter i mean i guess it does for argentina still under its i. M. F. Program what is the state of argentinas economy right now well i was i was listening you know to that to the other answers and thinking well if you print money for long enough then you push it into so many electoral cycles and then it becomes a structural problem so youre talking about you know that a Monetary Policy no matter what state you are within a government so i mean of course that matters to argentina and the key question right now is whether the next administration whoever it may be you know will be able to repay dead or needs to restructure the payments schedule with the i. M. F. You know its unrealistic for argentina to face its that payments in 20202021