Transcripts For RT Boom Bust 20240714

I. This is boom bust broadcasting around the globe and covering the world of business and finance and the impact upon us all im doing your burrito and im christine one eye in washington heres a look at whats on track today as the world awaits the meeting between president obama and he at the g. 20 summit meeting this week another western nation has been feeling the wrath of kind of our correspondent alex mahela they have standing by in toronto to break down everything retaliates and again made in force products on the peoples republic. But another day another turn in the meantime scandal that has been in the spotlight i thought effect there lauren fix the car thought it will get into the drivers seat to send us through how the real navy coming off the world Famous Company finally tensions in the persian gulf are still tumultuous the u. S. Has jumped on the opportunity are. Having their joint program today to begin american oil exports in the wake of security concerns in the. South of the lets go and die right in. The setting of the stage for trade talks between president s trump and she leads our global report today as the United States and china jostle ahead of the g. 20 summit in osaka japan u. S. Treasury secretary Steven Newton made headlines when he told c. N. N. B. B. C. Quote we are were we were about 90 percent of the way there and i think theres a path to complete this hasty reports of progress were later revised when reporters and critics took note of mr nugents critical use of the past tense in the 90 percent comments clarification reduced mr nugents comments to a very good expression of hope bloomberg cited unnamed u. S. Sources suggesting that the white house could pledge in osaka to suspend pending tariff increases in the meantime speculation over the talks is obscuring other issues on the g 20 agenda much as the terror of fight is shadowing the global economy. Canada also wants to see this trade deal get done to try to country has been stuck in the middle of a fight between the u. S. And china since its attained an executive from chinas tech giant weiwei on the request of u. S. Authorities now an all out meat ban imposed by china against canada is adding to the souring relationship between the 2 nations our g. s alex mahela joins us from toronto with more alex china has been angry at canada since the detention of. One jew some canadians say that they have been punished with everything from the dissension of its citizens in china to trade issues now were hearing that china is putting a ban an all out ban on canadian meat whats the latest. Well i mean this is massive for canada 2nd largest trading partner were talking about china a lot of our Agricultural Products go there so this is a major hit now heres the reasoning behind this china says that canada out of canada some of the Meat Products that been sent to china had forged certificates of forged custom certificates and here is the Sticking Point and what really is taking off the chinese is the fact that rock pommy scientists out there who probably would be really angry at my pronunciation of iraq to palming it which is the residue that was found on this meat by chinese authorities that is the issue now this stuff is used in veterinary drugs and Food Additives here in canada as well as the United States but its not allowed in china they have Health Concerns over that which might make you think if you live in canada in the states and eat pork this could be something that we might want to look into as well betty went back to china so thats were trying to said you know what this is not cool we dont want to have any of these kind of products coming over canada right now were nobody here saying that this has anything to do with why we see a phobia being locked up or with the trade war this looks like its actually a real thing now even the canadian government has said that. Yeah this type of stuff has happened in the past but not to get a great extent but china wants the canadian government to take this seriously heres a quote from the Chinese Embassy in canada theyre saying we hope the canadian side would attach great importance to this incident complete the investigation as soon as possible and take effective measures to ensure the safety of food exports to china in a more responsible manner the canadian government has already started an investigation which means they are taking this seriously so this could be a situation where china is not just you know barking things like canada has accused it in the past this might be the real deal now of china being kind of the 2nd largest trading partner after the u. S. This must be painful for the countrys economy whats canadas next. Well this is very painful that for the count caught me especially when you talk about agriculture which means we talk about farmer so 2017 canada exported 292000000 dollars worth of pork in products to china so this is just a facet of the meat thats going over there and as you know china and a lot of asia right now has been stricken with the african swine fever that means that they actually need more meat than ever before and now canada which has sort of taken the place of the u. S. Because of the tariff war there is getting doing hard so thats going to be put to a stop we already know that canola products from canada have been put to a stop so thats were doing now as for your question what is canada going to do well canada has a ready gone to President Trump the Prime Ministers asked him to talk on its behalf one meets with at the g. 20 summit in japan thats our hope it were putting all our hope on donald trump right now were hoping that he addresses the people that are that have been detained in china that were canadian citizens and we also hope that he addresses the wall the situation of course the trading situation that were having with china which does not look good at this moment we just wanted to go away here in canada that would be the best thing possible just seems to get more complicated by the day r g correspondent alex mahela bitch thank you very time. Thank you. China managed to dodge trans terror tactics by rerouting billions of dollars worth of china made goods through other countries especially those such as vietnam thailand and malaysia the Trump Administration is clearly frustrated by this practice of trance shipment which threatens to crimp the u. S. Plans as it prepares to add an additional 300000000000. 00 worth of tariffs on chinese exports ranging from toys to electronics washingtons campaign to sloppiness of duties on chinese goods that the u. S. Commerce department identified as being transept has been ineffective at best as trade data indicates in the january through may period exports to the us rose 54. 4 percent year over year compared with a 6. 7 percent rise globally at the same time imports from china roast one. 9 percent around twice the pace posted for worldwide imports an original as always is now singling out vietnam as almost the single worst abuser of everybody and in the case that he is considering tariffs on getting these goods as well in the meantime vietnam is clearly benefiting from these trade tensions as americans and u. S. Brands are also looking to see what they can make in vietnam so they dont have to pass on higher prices to american shoppers. While vietnam is benefiting from attention received from businesses in china and the u. S. It is also seeking the approval of the European Union e. U. Ministers on tuesday approved a landmark Free Trade Agreement with vietnam which will reduce tariffs on 99 percent of goods over a period of 10 years the 2 parties will sign the agreement in hanoi on sunday but will still need the approval of the European Parliament this is the most ambitious free trade deal ever concluded with a developing country through the accord vietnam more secure quotas for Farm Products such as rice garlic and sugar while the e. U. Will benefit from the elimination of very high import duties this agreement will also open up public procurement and Services Markets for post post banking and the maritime sector. The carry trade has been one of the investors top players of 2019 returning on average 5. 5 percent so far this year this strategy involves barring currencies where Interest Rates are low in order to invest in countries and emerging markets where yields are high pocketing the entire spread the current environment has been perfect with the ball being crushed and the Central Banks now having pause on Interest Rate rises lets take a look at some of the key currencies. The russian ruble is up over 7 percent against the us dollar after a large appreciation in december 28th seen however many investors are still wary for the potential of a currency depreciation as it is still highly dependent on the state of the oil markets over in japan the yen is one of the best performing currencies this year and it could actually strengthen further in the coming months the us is one of japans largest trading partners meaning that the yen is highly sensitive to the u. S. Is demand for japanese like onyx and cars it is also a safety currency that many investors fled to between the china and the u. S. Trade wars the c. N. Why and china has also strengthened in the past week after it had come under scrutiny from washington who accused it of artificially devaluing the currency in order to make exports cheaper and more attractive it is now back up comfortably at 6. 88 for one u. S. Dollar over enron the reality is trading down in the free market near an all time low as annual inflation is near 50 percent the reality is severely devalued losing its value over 4 fold in relation to the dollar as a result of stringent economic sanctions over the last 15 months and over in turkey the lira has suffered its worst fears in nearly 2 decades in 20 teens but it has been deemed the comeback kid this year with investors barring the u. S. Dollar and investing in the lira and returning over 6 percent from the carry trade the lira is now up and rebounding with the central bank expected to leave its key Interest Rates unchanged at 24 percent and finally break wind rally past 13000 just 5 days after breaking 10000 the all coin market followed up with many of the top 20 all points pushing double digit gains on the day now lets turn over to daniel from our thanks christi turning to was strong europe in the americas we start in the United Kingdom where the pound sterling is down against the dollar at midweek perhaps no surprise there is a u. K. Models to brag sits and waits to see who their new Prime Minister will be on the continent the euro used in 20. 3 countries around europe is also edging down against the dollar since monday on to the americas where the argentine peso which has been on a bad slide for some time is showing some perhaps surprising stability this week flat since monday against the dollar and in the United States we turn to a different standard measuring the dollar against the euro and on that score the worlds main reserve currency is up against the euro holding up after indications last week from the u. S. Federal reserve that lower Interest Rates are on the way and despite growing signs that the u. S. Economy may be slowing down there is your global currency you up for that week. Time now for a quick break here because when we return another day another turn in the names on scandal that has been in the spotlight of the auto sector lauren fix the car coach will get into the drivers seat to spend us through how the wheels may be coming off the well Famous Company. Pensions and the parting gulf are still small to us the u. S. Has jumped on the opportunity are. Having their join the program today the day until american exports in the wake of security concerns. And as we get a break here the number. Of. Media. The answer to every single the economic problem every single number every single statistic every Single Market reactions to lower rate thats the old its like an alcoholic who drinks when theyre happy they drink when theyre drunk because its tuesday they drink because the day time they drink because theyre not a holiday they just drink drink drink how rates whether the economy is expanding whether its. Present it doesnt matter is the dog bit his wife is going to lower rates makes no difference thats the only thing that. Were going to St Petersburg International Economic forum and the topic on our panel is are we witnessing a paradigm shift in the Global Economic order the answer of course is yes its a matter of degree. Well Services Company technically f. M. C. Has agreed to pay authorities in the United States and brazil more than 300000000. 00 to settle charges that the company paid bribes to secure contracts and brazil and iraq officials at brazils petro bras on the Iraqi Oil Ministry were allegedly among the recipients of illicit payments from. Prosecutors at the u. S. Department of justice specifically accuse a london based company of conspiring to violate the foreign corrupt practices act now technically f. M. C. Will pay roughly 82000000. 00 to the u. S. And fines equal to. 214000000. 00 to brazilian authorities while a former consultant to subsidiary technic usa will admit to one count of violating the corrupt practices act as settlement marks the largest penalty for the Company Since one of technic f. M. C. Is to predecessors technic as a paid 240000000. 00 to settle settle a similar case in nigeria. And from one scandal to another japanese regulators reported are reportedly ready to propose a fine for Nissan Motor Company a 4000000000. 00 yen or roughly 37000000. 00 for the alleged underreporting the former c. E. O. Carlos gomez compensation japan certain securities and exchange surveyance commission is planning to recommend the fine because they believe goans underreported salary had an impact on how investors evaluate the Company Going was arrested in tokyo in november over the allegations which include the underreporting of his salary by what 9100000000 yen or 84710000 over the decade he spent in the post going was also charged with transferring personal losses to nissans books dont has been released from prison one on the charges all of which he denies joining us now to break this all down is lauren fix the car coach welcome lauren welcome thank you for having me lauren catches up on this corporate so properly here what is the latest scandal for those who havent seen the last episode involving carl is gone. Well we all believe that at least most of us in the Auto Industry believe that this is very unusual situation when you are a publicly held company such as nissan you have to disclose salaries of your executives we thats pretty much a known fact but now they are saying that he was taking money and it wasnt disclosed so now the country of japan is saying theres going to be some fines to pay for this and of course that was unexpected i think its a coup personally and many of us in the industry believe that it was very strange that suddenly out of the blue a gentleman who saved me from going out of business by partnering with mitsubishi in reno and use utilizing similar platforms and technologies is someone theyre now turning on and the reason we found this out is that carlos ghosn who was c. E. O. And on the board of both of these other companies wanted to get them into one company and of course japan didnt like that so in their effort to get him out of the position which i think they have gone pretty far beyond what most people would think theyre now going to incur a very hefty fine because if they didnt disclose this in this truly is true japans going to hit them with a very hard foreign. Now do we expect this large trying to actually hurt japans number 2 automaker. Oh im sure from the bottom line its going to hurt think about have any time you get the word be in there for billions its going to impact profits because obviously with the Auto Industry shrinking on a global basis right now and it doesnt like the stock market it goes up and down but when youre in a downturn right now were just starting that slight downturn to lose billions of dollars about 37000000000. 00 you are saying that is going to be a really large impact on the bottom line and sales are not so great for them right now theyve got a mass exodus of executives at the corporate level theres a big shift in moving around of people leaving the sun here in the u. S. People coming over from europe and new people being added that could be a good thing for them but right now they would have to pay that fine if they find them to be guilty of that problem and lauren on these important internal corporate politics youre alluding to during the suns annual Shareholder Meeting on tuesday hiros psycho was reelected to the companys board but also at the meeting he apologized to shareholders for the companys financial indiscretions and specifically the actions of mr go on mr psycho was said the company would move quickly to implement a new Corporate Governance structure which shareholders approved at the meeting in hopes of preventing another similar situation will these changes help to improve and the concessions he made helped to improve Investor Confidence in nissan. I think it will help Investor Confidence it may take a while a time youre looking to improve a company like this its good for investors to support those efforts and those changes and voting them in is also good but still you still have to perform and show that these have made an improvement in the brand overall in the respect of that brand on a global basis and if that is true then you will see an improvement for nissan as far as from an asset base all the way around now renault who is the member of the Worlds Largest car making a lines along with nissan and its a b she also drew the ire of shareholders the Biggest Issue being that the failed chrysler deal which fell through due to try petition from nissan chairman john dominic who was present at the meeting talked up how the deal would have created a substantial benefits to the alliance and it sounded like a real soap opera playing out here is there anything going to be done to strengthen the alliance mired in a controversy well im sure once with a nissan makes these changes youll see a big improvement mitsubishi is trying to also be a part of the strengthening of this alliance as well as reno and i think if you add in ca which i dont know if thats completely off the table but the reason it was off the table was more drama because the french government wanted to have a place in car manufacturing because they cant seem to get it right they didnt do it right in the u. K. They didnt do it right in germany and any time the government gets involved in running private industry its never good for the shareholders and even in the case of the us when we had the u. S. Government involved with General Motors it just wasnt a good mix now that theyre out of g. M. G. M. Could run as a standalone business which is the best way to operate. Inside or inside as always thats why they call in the car coach lauren fix things through and say thank you. In other Regulatory News the d. O. J. Has to close that it is pursuing a criminal investigation into price fixing in the chicken market the justice departments investigative interest in the issue was revealed when the department intervene in a pending civil suit brought by the new york Food Service Company maple vale farms walmart and cisco a little later filed similar suits maple vale named 28. 00 companies defendant in their complaint including industry majors purdue pilgrims pride sanderson and tyson tyson Industry Trade publications report that those 4 company collectively controlled a majority of market share in the sector the d. O. J. Specifically asked the Court Hearing the pending private suit to delay the disclosure process for 6 months while prosecutors present evidence to an impaneled grand jury as a prelude to a possible criminal charges. And Global Oil Markets have been round by numerous fractures in recent months perhaps none more important than the tension between the u. S. And iran this is cause some fuel for oil coming through the strait of hormuz well now some miners are finding a way around the turmoil are 2 producers and are joining us now with more size that is right daniel in the past week the worlds tightest and more fragile choke point for the world trade the strait of hormuz has seen of activity and none of it has been good tankers have been attacked in the gulf of oman a u. S. Military drone has been shot down and now even more sanctions on iran all adding to the hostility between washington and tehran and putting Energy Markets front and center of all this conflict and after new sanctions were announced again against iran this week u. S. Crude oil climbed but not as much as you would expect u. S. Crude today is hovering at around 59. 23 just sub nearly 0. 70. From yesterday now iran has contributed to the rising price of oil but interesting really not as much as weve seen historically when there is a major tension in the middle east now is take a look back back in 1973 an arab bargo an oil exports to nations supporting israel so Oil Prices Rise around 400 percent 6 years later prices doubled during the iranian revolution and there was another 100 percent balance in 990 as iraqi tanks rolled into kuwait so why hasnt the latest conflict with iran cause greater alarm 1st iran export have not entirely dried up although as much lower levels now iran still exports around 3 100000. 00 barrels a day per month old are down from their 2500000. 00 Barrels Per Day just a year ago now the other big difference is the shift in the us from an Energy Importer to a net exporter in fact in 2018 the us are passable russia and saudi arabia as the Largest Oil Producer and is currently producing an astonishing 12200000. 00 barrels of oil per day which makes supply fears very minimum were also seeing something very very interesting happening in the Energy Markets which is the difference in price difference between international and u. S. Benchmarks which has narrowed and this tension in the middle east theres now a less than a 7. 00 difference between the 2 and the slimmest it has been since april and thats all because u. S. Crude oil exports are in a big rise currently u. S. Is exploiting their own close 2900000 barrels of world per day almost more than 150000. 00 from june of last year so if we dont have to buy a barrel oil that comes through the strait of hormuz you certainly wont do so and were seeing other countries like india. A leading purchaser of iranian crude which is now changing suppliers from iran to u. S. Crude oil now all of this is extremely dynamic and could change any minute specially since opec exploiting countries plus russia are scheduled to meet next week to come up with a permanent solution to iran well cut back r u r g produces science alan guard thanks very time. Nike has stopped the sale of a line of limited Edition Sneakers in china after the designer indicated support for the hong kong protest against the proposed extradition bill chinese retailers stop the sale of shoes which were designed in partnership between nike and undercover the studio of designer june talk a ha she after undercover posted a photo of insta on instagram of protesters with the words no extradition to china chinese instagram users took issue with the post which was deleted undercover said the post was an individual opinion and should not have been posted at all but now faces backlash from chinese consumers who are calling for a boycott of the brand the limited release nature of the issues means that it wont likely affect nikes market share in china the company has recently witnessed growth in china saying 18 percent spike in sales in 28 teams from the Previous Year this is very interesting kristie you know corporate consultants have talked about controversies in the United States obviously it may be the biggest one being call in cap or nick getting his endorsement deal and theyve you know consultants war worn brands they say wading into social issues can be a winner it can be a loser but its always very dangerous. They seem to absorb that wasnt but in this case you can account for perhaps if the designer goes out as in this case and expresses an opinion that it is anger is a major market yes but nike has also been known to support these very controversial issues but the problem is right now that they are doing business in china and the fact is they actually have not issued any formal letter of apology or any form. Statement for that matter to its consumers so thats why the consumers of china are actually taking up to instagram and. Instagram and posting very furious comments asking for undercover to actually pull out of china entirely because why should they benefit and make money off the chinese consumers when they are making these messages against the chinese consumers but no one wants to lose a huge market over just one shoe exactly and this isnt the 1st time weve seen that gap also did something very similar and they paid a very happy price for a seen their corporate stock share price drop and. Thats it by this time you can catch boom bust on direct t. V. Channel 321 dish network. Or streaming 247 on t. V. The free t. V. Channel 130 to war as they always have a you tube. So you next. Join me every socially so i will be sure and ill be speaking to us of the world of politics. Im sure. Ill see that. Description summed up to tell using even for the owners so how to choose had Food Industry is telling us what to feed our pets really more based on what they want to sell us than whats necessarily good for the. May not be this people. Leaf we have animals that have you know diabetes in arthritis they have auto immune disorders allergies we are actually creating these problems is a huge epidemic of problems all of them i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pets last treats the larger corporations are not very interested in proving or disproving the value of their food because theyre already making a 1000000000. 00 on it and theres no reason to do that research. World leaders are touching down in the japanese city of osaka for what could be a turbulent g. 20 gathering this year session is expected to be dominated by trade tensions the Climate Crisis on the threat of conflict in the persian gulf. In the run up to the Forum President double trump a speech threatening china with a further 300000000. 00 worth of tar of south us as a culture a sacred place that american for. A true. American farmer a casualty of the trade war i think they are one of the casualties they are of the trade disruption. Also ahead a rabs foreign minister gelb and zarif accuses the