Transcripts For RT Boom Bust 20240714

At least return to the table. And the follow from a trade war is already being felt around the globe by consumers at the Cash Register and by firms who operate in china and they have been facing rising pressures from both sides of the pacific now some American Companies are considering opting out of production in the peoples republic does that mean that the terrorists which were supposed to bring jobs back to the United States worked well funny story not exactly here to help break down some major moves in the Manufacturing Sector as arties own alex mahela that you joins us from toronto alex one of the big names pushing for moving jobs out of china is apple what can you tell us. Thinking of moving 15 to 30 percent of their operation out of china and its also speaking to some of its partners like foxconn the Taiwanese Company and telling them a you know what maybe you should think about doing the same now heres issue foxconn about 75 percent of their operation is in china and at the same time looking on the other side of the coin 54 percent of their business is with apple so which way do they go with the problem is that we have an established system which is the whole mechanism of how these products are moved from a to b. And it just happens to be that china is a massive hub for that kind of stuff now foxconn works mostly on i phones i pads that kind of stuff it assembles them and you know theyre ready theyre saying yeah were going to move but you know how do you do that how do you pull so much of your operation out of china and where does it really go so the reporting making the shift in there saying you know what to look at apple like you know apple weve talked to apple and what apple is saying dont know this is not all about the trade war theres more to this than just the trade war thats going on right now and as you just mentioned that trade war might go away but as it stands it could go in the other direction where there be 25 percent tariffs added coming very soon the stuff like i phones i pads and laptops but here we go this is the whole problem with apple saying its not about just the trade war its about china itself the birth rates are down the costs of labor are getting higher and decentralization that we spoke of a little bit earlier it might be just too much for for our pool and for other companies so they need to diversify globally but we could look with that one. And with Companies Looking to perhaps get out of china those jobs that are moving out have to go somewhere else this must be good news for the u. S. Job market right. Yeah that really they have because they are not going to come to the u. S. Going on a company like apple to want to go to some place where labor is expensive they want to go word labor is cheap so when you move out of china where do you go about another economy thats absolutely massive like china like india apple already has an established operation india theyre ready building the the i phones that are you know the the sort of of lesser value in india and theyve talked about it in the possible actually moving operations there for the i phone x. And other things like the more advanced technology also you have other options in asia which are cheaper like malaysia like into the asian of course vietnam which is like the darling of that part of the world right now apple can look in that direction and foxconn the company that from taiwan that works with apple theyve already said you know we have established operations in brazil the Czech Republic vietnam so we can ship some of the stuff from china there but come on when 75 percent of your operations are in china how are you going to do that and if you do it its going to take a very long time and logistically speaking its going to be very difficult sounds like a big challenge and there is also another Iconic American Company opting to produce in china rather than run away from it present trump might not be happy about this but business is business tell us about that this is the flip side of the coin whos going to china and were talking about one of my Favorite Companies ab one of these babies a Harley Davidson so Harley Davidson is saying you know what hate our customers are getting older in the United States and our money our bank is not looking as great as it used to coming from the us theres that inflow is not there anymore we need to get out of here we need to go to different markets so that markets are growing in other parts of the world like in europe and like in asia now the problem is that with europe we know that donald trump of the u. S. Administration put sanctions on sanctions might say tariffs against the e. U. Tariffs and asia with china so what is the Harley Davidson doing well theyre going to cooperate with another Company Build smaller motorcycles in china they have a bigger operation are ready in thailand. That operation is going to be slowly motorcycles to china and also the toilet operation kill so motorcycles to europe a good way to dance around tariffs put in by donald trump dont trump my like it but for Harley Davidson like you said business is business easy rider an r. T. Correspondent alex im a hell of it thanks for joining us thank you. We recently reported on vietnams Customs Department taking issue with exporters illegally labeling chinese made goods as made in vietnam in an effort to avoid tariffs imposed due to the ongoing us china trade war now the u. S. Department of Homeland Security says it is fine Numerous Companies for export and products the chinese own special Economic Zone in cambodia precisely to circumvent u. S. Tariffs on china irans watch is a spokesperson for the u. S. Embassy in cambodia told reuters the department of Homeland Security has inspected and fine a number of companies for evading tariffs in the United States by routing goods through cambodia adding that these companies are loaded located in Cambodias Sihanoukville special Economic Zone at this time the specific companies that face fines have yet to be named but well keep an eye on this story which seems unlikely to be the last of its kind. And wednesday wrapped up the 2nd day of the federal reserves 2 day meeting here in washington d. C. All eyes were on d. C. To see what the fed will do when it comes to entrust rates in the events of 9 of 10 members of the federal open Market Committee voted to keep the federal funds rate in the range of 2. 25 to 2. 5 percent despite calls from President Trump to Lower Borrowing costs joining us for a consultant is Peter Schiff Sea of Euro Pacific Capital peter its expected that will see repo rate cut at some point this year something fed officials have now pointing to as uncertainty increases in the attempt to do whatever possible to protect growth the u. S. Had witnessed what do you make of the results of this latest meeting. Well you know the fed up. Likes to work incrementally so i think before they cut rates they want to officially adopt a bias to cut and thats exactly what they did today thats why the pop probability that the fed cuts Interest Rates addicks next meeting in july is now 100 percent and im pretty sure that is exactly what theyre going to do a good hard take their 100 percent likelihood of a rate cut at the next meeting we know President Trump was critical of the latest rate hike in december which was the 4th increase of 2018 and of course hes been putting the fed chair Jerome Powell on notice noticeably on twitter on tuesday he asked whether he would ask whether he would keep Jerome Powell in the job President Trump said well lets see what he does well now we know there will be no change in the rates so effectively this decision to leave rates where they are was a decision to reject mr trumps advice what is the future prospect now for mr powell remaining at the fed. Well hes going to stay at the fed but hes also going to cut rates but you know its not the right thing to do for the country i mean the reason donald trump wants lower rates is because he wants more air in the bubble hes more concerned about his reelection than making America Great again and when he was a candidate he criticized janet yellen for doing exactly what he now wants paul to do and that is just try to make him look good by blowing more air into a bubble but you know we are headed into a recession and thats exactly what the u. S. Economy needs unfortunately we need to deflate this bubble and a recession is part of the cure but obama didnt want any part of that here and neither does donald trump and of course neither does the fed i mean powell said that their goal is to keep the expansion going even though the expansion is very dangerous because it is a bubble but were headed into recession so i do expect the fed to cut rates but i dont think its going to have the reaction that everybody hopes i dont think its going to be good for stocks or good for it. Long term bonds i think is getting night inflation in consumer goods not in Financial Assets the price of gold is a good our bridger is close at the highest price of the year today gold prices are going a lot higher the dollar is going a lot lower and were going to have stagflation in the United States right and speaking of gold gold prices slipped a little bit this week after having set a 14 month high ahead of the statement on what will happen with Interest Rates now that rates are holding busy steady were already seeing gold prices move back up what are we looking at in the near future when it comes to gold. Well gold is up against a 6 year resistance but all that resistance was against the backdrop of the fed tightening the fed was going to do quantitative a tightening they were going to be raising Interest Rates that backdrop has now changed we are now in an official easing mode and that is going to be very bullish for gold so i do believe that with that backdrop gold will be able to break through this resistance and that its going much much higher very quickly and just ing and 10 year treasury bond yields saying to their lowest level since september 27th team due to the uncertainty around the meetings as well and they of course bounce back after the sheetrock meeting at g 20 was confirmed what do we need to know about that situation. Well i think was going to happen when the fed finally cuts rates its actually going to be bearish for the long term long part of the long end of the curve because of the impact of the cuts are going to have on inflation and the dollar and you know if you have a 30 year u. S. Treasury if theres a lot of inflation that destroys the value of that bond and of course you know the baht is denominated in dollars and so if the dollars losing value then the dollar is going to lose a lot of value over the term of that bond so people are not going to want to hold these treasuries and so people who think that Interest Rates are good for long term bonds dont understand the long term bond market short rates will come down but i think the long rates will go up so the curve is going to step in and that is going. Be very problematic for the u. S. Economy and just quickly when you mentioned you say were in a bubble the us economy is in the bubble where is the bubble is a housing bubble is it a stock bubble where there is a distribute throughout the economy tell us about the bubble. Well its pretty much a bubble and all Financial Assets and you can see the effects of the bubble in our budget deficits that in our trade deficits which are running at record highs you know were running the biggest budget deficit weve ever had even though the economy isnt even in a recession yet were running bigger deficits that we ran during the great the Great Recession we have a consumer bubble americans are consuming too much and borrowing too much businesses are borrowing too much spending too much theyre not investing theyre not saving you know were living off of imports and consumption credit and this thing is a gigantic bubble and the fed of course is trying to prevent it from the flatting but that is the best thing that could happen long term but of course you know if were going to deflate this bubble that means a lot of debt is going to get the faulted on theres going to be a lot of bankruptcies that means the federal governments going to have to cut a lot of spending a lot of difficult choices are going to have to be made but no one wants to make those choices they want to postpone the day of reckoning theres some future date but the longer they do that the bigger the problem gets and the more reckoning we end up having to do but of course you know politicians think well as this get through the next election because maybe i wont be in office and so that somebody elses problem but that kicking the can down the road thats weve been doing that for years and thats why were in so deep a hole right now and thats why this next crisis is going to be so much worse than what we had an 08 very interesting analysis from peter schiff c. E. O. Of Euro Pacific Capital thanks so much for your time. Sure. And an indonesian Ecommerce Company is turning heads around the world with a record setting ramadan sale season sokol pedia says they banked 1300000000. 00 in sales over the 9th month of the muslim calendar remarkably the online vendor said their total sales for one day over the holiday may 17th were greater than their sales in the entire previous 6 years tokyo pedia had help from deep pocketed investors in reaching this impressive sum in december the famed Softbank Group of japan and chinas all the baba infuse 1100000000. 00 in capital into the indonesian startup token pedia c. E. O. Said the company made sales with 5900000. 00 buyers over ramadan and the Worlds Largest majority muslim nation of 260000000 the companys success is perhaps even more impressive in light of the uniquely just tickle delivery challenges that a nation that comprises 17000 islands. Now for a quick break but hang here because when we return while china has seen some souring ties with some American Companies theyve also been opening their Capital Markets to some other foreign firms before which of the British American Business Association joined. Openings mean for the United Kingdom in the wake of brics its impact on business and as we go to break here are the numbers of the clothes. I. What do you do before you came here where did you work before you came here when you lived. Death row im in many us States Capital punishment is still practiced convicted prisoners can spend years waiting for execution but most of the time the victims families they are very much in favor of the Death Penalty there are some people because of what they did have given up their rights as live among us some even proven innocent off 2 years on death row and how many more exonerations is it going to take before we as a society realize that this is not working and we actually do something about. Mass geysers financial Survival Guide liquid assets not those that you can burn in zigzags quite easily. To keep in mind no as if im into a place to watch guys are bored. Oh why a paradise with some all year round turned into a round the experimentation field for agricultural chemicals we know that these chemicals have consequences they are major irritants theres no question otherwise why would that the Chemical Company workers themselves be geared up that suited up locals attempt to combat the on regulated experiments but often in day you have many of these people who have one foot into the biotech pharma and the other foot in the government regulatory bodies this kind of collusion is reprehensible while the battle goes on the chemicals continue to poison hawaii and its people so one has to ask the question whether there is a form of environmental racism going on in hawaii whether these Companies Feel they can get away with this because the people have less political power. Join me every thursday on the alex simon chill and ill be speaking to guest of the world of politics sports business im show business. Ill see if it. Is hard to take so from somebody if you know have some to replace im. Going to do this interview today i dont use market in that they take me. There. So how can i tell you stop selling drugs if well have some to put the money in a box. They just mean the way that life must if a sickly mccullers feast before. To us what security security positions open that. Day jack me again. You see people get all their cars and ill see you coming to her and it seems like theyll hurry up and run into the house like they dont want to they dont want to talk see her get your mail or anything like that. I actually think. Just try every day. Give me. Welcome back there is big news today from 2 major Cross Atlantic rivals in the global aircraft sector european airplane manufacturer airbus has cashed in a major order with American Airlines this deal will see the boeing rival build 50 midsize aircraft for the u. S. As most Popular Airline news of the deal comes as the Paris Air Show is underway in air on air buses on home turf the purchase also comes on the heels of another major order for an american buyer no. Airline investor bill frank has signed a Draft Agreement to purchase another 50 just from air bus according to reports on the other side of the ledger a scandal plagued us manufacturer boeing has finally got him saying gotten some good news after their mass groundings of 737 maxus there was a giant into a letter of intent with International Airlines group for an order of 200 max planes the move was reflected in boeing stock as it began a steady climb on the news hitting a high of 375 this morning before chipping off a bit as trading war on. Canadian Prime Minister Justin Trudeau has approved the controversial 5500000000 dollar Trans Mountain Oil pipeline expansion the day after the Canadian Parliament declared a Climate Emergency on tuesday mr trudeau for the 2nd time gave his governments approval to the project which will connect oil sands in Alberta Canada specific coast and help canada diversify their Customer Base mr trudeau had already bought existing pipeline facilities from candor morgan for 3500000000. 00 after a federal Appeals Court blocked the project after finding that the government had failed to consult indigenous 1st nations in the pipelines path activists concerned with Climate Change and human survival cried the move despite the Prime Ministers claim that product profits from the project will be funneled to green energy a leader from that soil while tough into the Indigenous Community in British Columbia remain defiant saying no matter who approves it this pipeline will not be built. And its checked in on the u. K. And here it catches up on the latest in cross listed u. K. Stocks Consumer Protection in the latest developments is hillary ford which board member of the British American businesses. Hilary you know weve got to 1st i want to get your take on the london shanghai star connected initiative which sounds exciting its basically a way for u. K. Listed stocks to sell shares in china how big is this especially given the context of the fight with the us as well as braggs it obviously in the picture and what do investors need to know about this pleasure to be here down as you say its been a minute up to this is theyve been covering this a few things 1st of all lets look at the psychological aspects very important at this time this is obviously opening up for british investors to be able to invest in this shanghai stock market but it also is very important for the chinese there are to juncture well obviously theyre under scrutiny and pressure for the us from the us in terms of trade agreements so for them it makes them look far more global as if theyre opening up their economy at the moment though remember this is an ill only illiquid trades so thats a little bit different than its being sort of touted as nevertheless it reaffirms london as the the center of the Global Financial world and its very much an endorsement and a positive vote for the u. K. And london in terms of this agreement this time place and time is precious thing and an important footnote to that connect story is apparently the same event where it was announced chancellor Philip Hammond and chinese vice premier were present for the announcement of increased Market Access in china for british beef and pork obviously pork has been quite a bit in the news were going to covering that and a fund to support u. K. Firms trying to expand into china what can you tell us about that couple of things the 2 questions that the fund is with regards to Clean Energy Vehicles when you Energy Vehicles clean energy the Digital Economy and also Intelligent Manufacturing so thats the fund and then in terms of beef and pork yes the beef agreement is going to be about 230000000. Over 5 years and pork is going to be 70000000. 00 pounds a year and already china is that its a flawed export markets for u. K. Products in terms of food and beverage just food and beverage a lot of the 8 markets so obviously this bumps it up and again i would add on to the you know the 1st point this is very good in the light of brechts that and actually very importantly i think for the u. K. Farmers given that 20 years ago of course there was the b. S. E. Scandal thats bovine scotches of the something that got it no matter how did it ever get everything going bovine scrumptious or something but if you had mags out of these and it was that was terrible for u. K. Farmers it bout they the us banned beef and so did the chinese so this is opening up as i mentioned you know 230000000 over 5 years huge for the british farm very good for the british farmers are very glad to put mad cow in the Rearview Mirror and weigh in the way and we also took notice weve gone the Consumer Protection front calling a super complaint from the u. K. s Competition Markets Authority against companies at the door he says are charging consumers socalled loyalty penalties and deploying what they call subscription traps can run explain the problem and the proposed remedy here yes the problem is an anomaly i mean the same thing and in the us really but the problem is and this is really good for the consumer when was the last time you or any single one of our viewers but maybe bought a cell phone yesterday or something and looked at that agreement as reams and reams of pages did you read it do you know anybody to read that would anybody read it and even if you did read it its legal mumbo jumbo so all of these farms in the u. K. Of same thing here really but the firms have taken advantage of the consumer theyre being plans where theyve added on fees and not let the consumer know the consumer actually supposedly has agreed because theyve accepted the terms but really that its consumer b. B. Where and that has not been fair so what is the solution what theyre proposing is a crackdown in terms of an immense fines and penalties for the corporations if they keep leveraging exorbitant fees on the consumer so this is very much a positive noons for the consumer in the u. K. I. I would say American Consumers should be glad because this may well come to this side of the atlantic and maybe also a good precedent yes turning to the rooster succeed to me tourism is obviously well underway and the day a big. Candidate is saying it would be eminently feasible for the u. K. To be out of the e. U. By a whole week of all days yes whats the latest on the well the latest is about a couple hours ago i think weve been here in the studio but Boris Johnson received 143 votes out of which is a majority thats up from 126 votes of the 313 potential votes that he could have so its a increasing majority obviously this was the 3rd round now it needs to go to another round of the another vote on thursday tomorrow and we should know its increasingly looking like it will be boys johnson and i think whats been in his favor is a lot of these trade agreements we covered the other day the trade agreement with korea with south korea we just covered of course this trade agreement is opening the stock markets with shanghai so i think that theres been a lot of trade agreements made i think its been a lot of positivity and that added well dr lee and focusing money on making these trade agreements is added to the power of the realization that yes it is a reality and that certainly the u. K. Is prepared and thats been in a state that gray roundup of you can news from hillary ford which board member of the British Business as usual always a pleasure to have you here. And finally in the European Union the General Court on wednesday supported a decision by e. U. Intellectual property authorities which stated that athletic and street where brand adidas could not trademark this the 3 stripe design that crosses nearly all of their merchandise Athletic Apparel companies have seen an uptick in trademark disputes with adidas taking on skechers usa earlier this year over a 4 stripe shoe and last year nike took on puma over the Technology Used in their shoes the court stated that the German Company was not able to prove that their trademark of the 3 parallel stripes was specific enough to warrant the trademark adidas does however still hold trademark protection for their slanted 3 stripe logo very subtle adidas now has 2 months to file an appeal to the top court added this time you can catch boom bust on direct t. V. Channel 321 dish Network Channel 280 or streaming 247 on pluto t. V. The free t. V. At channel 132 or as always hit us up at youtube dot com slash boom bust our team. Live. Pled. The 5th. Leg. Length. Live. Live live. Live. Live. Live. Oh. Please. Live. Lists lists leg. Lifts. Playing. Very well now continue watching on since last. We had one man 3540 years old. This child in the water. Some 30 fisherman well this judge made a misstep. I guess to some. And then some of the hit. Another one of the most stubborn and hurt the most. I believe that this is one of the therapy is. Tom. Absurd its really harsh things that happen in life. Ringback you know world of big partisan movies lot and conspiracy its time to wake up to dig deeper to hit the stories that Mainstream Media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the back and shouting past each other its time for Critical Thinking its time to fight for the middle for the truth the time is now for watching closely watching the hawks. As long as 11 am moscow time submerged on evidence used to accuse rush hour of hacking Democratic Party emails in the run up to the 16 president ial election it seems the f. B. I. Never saw a final report of private side of the security which had placed its conclusion. Judgment day for british arms sales to saudi arabia a u. K. Courts to decide if they should be suspended as peace campaigners claim the weapons are being used on civilians in yemen therefore international. Prosecutors charged 4 suspects over the downing of Malaysia Airlines flight m. H. 70 over Eastern Ukraine in 2014 but joint Investigation Team members