For the u. S. As well this designation would prohibit American Companies or citizens from trading or conducting Financial Transactions with qual way and freeze its x. 6 held in the us this would also put pressure on u. S. Allies that already rely on a hallway for their 4 g. Networks and have broad widespread implications severely impacting businesses in europe and asia outside of china so with huawei sprawling size and dozens of subsidiaries it would severely complicate us in force and make it difficult to foresee and prepare for major fallout both foreign and domestic while a is finding itself increasingly unwelcomed in the United States and is planning to relocate its Research Center from the u. S. To canada hallways spend almost 5 110000000. 00 on its u. S. Research facility last year and since the us started its campaign to block wa way under the guise of National Security concerns wa is has had to trim its research arm by 600 bodies down to 250 talent recruitment became a child. Top u. S. Universities including princeton stanford u. C. Berkeley all cut ties with while way so instead huawei is looking to russia where in the last 6 months 8 top russian universities and Research Institutes have announced or expand a partnership with way with a focus on advancing the ai ecosystem neural nets data storage and processing now this is fascinating this back and forth that weve seen with way the u. S. Has taken a lot of action against them has this actually affected their business at all so so far in the latest Earnings Report no it really hasnt always still continue to expand its 5 g. Coverage worldwide including europe where in america has tried to block all of them as well as within china while way has expanded its 5 you coverage as well as they sold out does like hundreds of thousands of their phones and basically tripled their phone sales in the last quarter than what was previously projected so this entire polarized nation between us versus china this actually created a lot of nationalistic feelings towards hallway where people were customers who previously preferred apple i phone now made the conscious decision to go into a National Phone such as well way and weve also seen it in europe especially in germany where theyve said were not going to rule out while away from using them in our 5 g. Capabilities as they start to implement those as well now theres another question i do have on this is the Banking System now they want to drink drain them out of the u. S. Banks is there a precedent here so there is and this is this is as they said this is a Nuclear Option so by banning them from the u. S. Banking system this essentially means you cannot transact with u. S. Dollars companies cant pay them for their services in u. S. Dollars and this is here to has been president previously they sanctioned russias Resound Company which is one of the largest Aluminum Companies in the world also russian oligarchs iranian politicians and venezuelan drug traffickers so thats the list of everybody who has been on the s. And d. List previously and while we would represent one of the Largest Companies ever to make it on to that list were going to see what goes on here and this certainly isnt the end. The wall way versus the u. S. Debacle. And once again the back and forth between trade deal and no trade deal has finally landed on no trade deal seriously after 16 months this should have been obvious to people especially people who saw the profession is to bet on the market direction and actually have money on the line but no equities saying tuesday after President Trump suggested he may want to delay a trade deal with china until after the 2020 president ial election markets had their lows after the white house reported plans of moving ahead with this summer 15 tariffs on chinese goods tech names lead the market lower as volatility is back sending the s. And p. Down for its worst loss since of october analysts have remarked several potential reads on trumps comments one of which is that hes simply raising the stakes as a negotiating tactic indicating to china that he is under no pressure to get it done meanwhile china responded the u. S. Appears to be backpedaling in trade talks as officials threaten terrify the director of Chinese Foreign ministry in her latest press conference compared to a mentally ill woman shuttling sol a character from the novel who keeps repeating her stories over and over again you know kind of like hold or what shes illustrating is a poem pale and tromp have been repeating the same rhetoric over and over again for 16 months promising the markets that a deal is close to but never actually delivering anything we pointed out this dichotomy 2 weeks ago when we said the us was unusually optimistic about a deal with markets pricing it in already while over on the china side they were more subdued pessimistic saying that there was a lot more work ahead of them in order to finalize a phase one deal its starting to look more and more like a trade war will be a semipermanent facet of Global Commerce throughout 2020. And france of the united then the rest of the European Union said they will respond if the United States follows through on a threat to impose tariffs of up to 100 percent on imports of 2. 4 1000000000. 00 in french good. The threat from the u. S. President donald trump follows an investigation that found a French Digital Service Tax would hurt u. S. Tech companies and could escalate an ongoing trade dispute between the e. U. And the u. S. During a meeting in london for the nato summit with french president emanuel mccrone President Trump defended american tech giants. You know theyre going to be comforted if you. Going to people because this is not exactly ok here we go. And we want to. Support and we dont want that and thats not the sum of the. Meanwhile french finance minister Bruno Lemaire claims the digital tax in question is not particular discriminatory to u. S. Tech companies. Should all say it wants to get the sanctions would be unacceptable we question the legal analysis by the u. S. Authorities of Just National tax on digital giants and the can i said so yesterday the u. S. Trade representative said is this. Going to dilute the french digital is going to be called Digital Company days including u. S. Companies but also a strange european and. The u. S. Has already imposed a 25 percent tariff on french wine and cheese in response to the block support for e. U. Plane maker airbus now to break all this down the scuffle between the u. S. And the e. U. Were joined by hilary ford which board member of the British American Business Association now its great to have you here as always hillary and you heard it yourself president is no fan of those trump is no fan of these Tech Companies but he wants to tax and he doesnt want a foam going on here so what do you make of this whole back and forth the tit for tat that we have seen between the e. U. And the u. S. And especially france over trade well couple of things 1st point obviously this shows that trump really isnt just out for himself i mean the Tech Companies are extra biased you can look up any topic on any subject the tech this. Changes like google that obviously and facebook puts out nothing but and news so i think is rather magnanimous of him for once and we dont often get to say that so very magnanimous but 2nd point though this is definitely a hit on American Companies the sentiment generally in france is that you know this is these terms of all us American Companies even though it benefits us citizens so the crux of the issue is the dire circumstances d that president finds himself in hes not popular at home he has about a 62 percent disapproval rating so whats he going to do he needs to find an external enemy who better to look at the tax than American Tech Company and actually 63 percent 63. 4 percent of all of the global unicorns these big Global Companies are u. S. Companies so 13 percent do come out of china but 3063. 4 percent according to the Marshall School of Business University of South Carolina so it is about the u. S. Companies or is it in your opinion is it unfairly going after u. S. Companies or is it just the u. S. Companies happen to be the big tech giants well actually yes its not yes its not my opinion that if i were to say and ill quote you the Washington Post that all of the 30 companies this will tax the majority are American Companies so again theyre not saying lets go after American Companies it just so happens they are and by the way they could be a lot more french high Tech Companies if they did not stifle entrepreneurship ship and if they didnt have so many regulations and they didnt overtax our citizens maybe wed have more high Tech Companies coming out of france so now this french hill of tax has been quite a contentious issue so why are french regulators so set on taxing Tech Companies in particular rather than focusing on say any other sector well you know what im christy because its an easy target because there are no products there are the its difficult to sort of identify and so is their services and also again to my point because the majority of them are american without actually pointing and saying now were going after the American Company it is almost like. A soft way from across to try to dig himself out of his fiscal ditch that hes already in now weve seen these existing tariffs that are already on french goods at this point are they doing any damage to the French Economy or even the european economy or is it really just hurting the u. S. Consumers as weve seen or it is actually hitting both in france according to c. N. N. Both louisville and. Hennessey their stock is down 2 point one percent and amaze stock and down another 2 percent in paris so its hitting those stocks the other thing you look at i look at instead of just the short term consequences of maybe some towers maybe not lets look at the long term consequences if and when it looks like theyre going to 100 percent taxes go on french luxury goods American Consumers at least at the high end of the market maybe they dont really care moneys less sensitive to them and it is to regular people like our spa when a bottle of burgundy is another 50. 00 doesnt that make your regular americans consumer and we are the number one purchasers of all luxury goods doesnt it make you think well instead of burgundy maybe i can go to one in california you buy a doctor or you buy some other California Wine so the unintended consequences i think the long term are that the American Consumer might find alternate luxury goods in the u. S. Isnt that the purpose of tariffs in general we often look at the tariffs as a way of hitting those Foreign Companies but in reality its a longer run situation where what youre trying to do is hurt that you have the American Consumers feel the pain and that way American Companies can pick up in the situation of course American Companies could pick up that slack yes exactly and if you go back to the old days i mean this isnt something new i remember when we had that you know maybe in usa campaign and then in japan they actually founded a town called to use usa so they can. Say so this is not a new subject yes yes and then the ultimate long term consequences are youre going to have a worldwide breakdown of trade and commerce there are starting to see that already this year well i dont know that well see break down what well see is well see strengthening of you. Markets because theyll be a strength in the u. S. And also i do think with obviously lots of things coming on the horizon you could see a strengthening of all the English Speaking speaking countries rallying particularly with what one might call is doing and he doesnt realize hes driving other consumers within the 2 u. S. Products that weve sort of seen that the u. S. Is looking to impose further tariffs on the e. U. After the deputy a ruling regarding air bus yes right now they already have 7500000000. 00 have been awarded to tariffs have been allowed by the w t o. Is this strain in the relationship and we were talked with there are no issues but is it straining the relationship between the u. S. And the e. U. I think it is that it is actually what the w t o ruling found as to your point is that not only the french subsidizing our boss but the spanish and german governments so thats what the ruling actually determined and i think the issue with the cio is a big issue and that is that many say that its unfair china should in was allowed entry in 2001 and maybe should have been allowed entry because they dont have free markets so what youre doing is youre actually splitting free markets against controlled markets and that isnt fair to the average consumer let alone a quantum ease where we dont have the same subsidies for boeing as we do for the french to for very interesting who are for which board member at the British American Business Association thank you so much for your time pleasure fred because the. Time now for a quick break but hang here because when we return Christine Legarde has taken the reins at the e. C. B. And she has already made some Firm Commitments for the central bank professor of economics on page one and steve keen joins us from amsterdam to break down the banks move and how Central Banks have come under fire around the globe and as we go to break here are the numbers at the close. Up. Up until recently politics were about policy preferences and ways to implement them that is not the case today your political views are now what define you as a person and there is a moral dimension bias against those who are not politically correct is the last acceptable form of discrimination this is the end of politics. Thinking of getting a new gun the ones we got in our shoes no problem why is he didnt know until he was trapped in this tiny little wired we dont need a crate with him he will stir freaking out and she will want to spray him anywhere near. Breeding dogs or caged in the into lane conditions on the phone i mean 67 years you know theyve been locked up in a cage outside you see no protection from the weather the heat you know the cold air the rain the snow the founder nothing they have no protection. Because you. Know its ok. To cross the u. S. Cruel puppy mills are supported by dog shows and it still has most of the puppies that are coming from these large Scale Factory farming kind of operations are being sold in stores even joined a Group Businesses are involved like ogling mom santa there has been a shocking amount of organized opposition to adverts to increase the standards of care for dogs bred in commercial breeding for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with dogs dont buy dogs. My feeling with this world its white males who are so confused and fearful and the certain generation thats controlling all the Politics Around the world when that generation. And children that are brought off the smooth really are less materialistic dont really care. There about these things even more automobiles on the right the side job want to ride a Bicycle Movement its global and its going the world is going to cost to go this direction and its going to change. Cyber monday shoppers set a record this Year Spending 9400000000. 00 online according to data released by Adobe Analytics sales this year easily eclipsed a record breaking 2181. 00 shoppers spent nearly 8000000000. 00 early estimates from adobe predicted sales of fall short of the 9400000000. 00 that was expected but retailers rallied late into the evening with shoppers racking up 2900000000. 00 of goods between 10 pm and 2 am and as we talked about monday sales via smartphone users made big gains breaking the 3000000000. 00 threshold adobes data found that consumers also spend 6 percent more per purchase than last year top selling items include apple laptops new tennis which consuls and samsung t. V. s toys from frozen to and surprise dolls also sold big adobe estimated Online Shopping throughout the Holiday Season will hit 143800000000. 00 from the beginning of november to december 2nd shoppers have now spent 81500000000. Italys largest Bank Unicredit is playing substantial job cuts as they promise Share Buybacks and dividends and creases for their shareholders the bank added that they plan to grow organically rather than targeting more big acquisitions unicredit will cut around 8000. 00 jobs or 9 percent of their workforce and close nearly 500. 00 branches through the year 2023 the bank said they would return 8900000000. 00 to shareholders over the same time period including a 2. Point 2000000000. 00 Share Buyback on the news unicredit stock is down slightly for the day but is down roughly 3 percent over the last 5 days unicredit joins the likes of h. S. B. C. And Deutsche Bank which have announced large restructuring plans this year including cuts of 10020000 jobs respectively just this year alone banks have announced more than 75000 job cuts mostly in europe do you do a slowing economy. European Central Bank President Christine Legarde says her organization will be resolute in restoring price stability in the euro zone during her tenure in her 1st appearance at the European Parliament since taking the reins as e. C. B. President misled guard spoke about the weak economy in the block euro area growth remains weak with the groups domestic product growing by only point 2 percent quote unquote to in the 3rd quarter of 2019. And this weakness has been mainly due to Global Factors as the sex to move east directly exposed to these Global Developments the Manufacturing Industry has been suffering the most misled garda said to hold her 1st Monetary Policy meeting at the central bank on december 12th the us been has been unable to return to the target inflation rate of below or close to 2 percent despite intervention from the Union Central bank now to break this all down and what it means what and what we can expect from the e. C. B. Under the guard we are joined by a. Professor of economics on page one an Honorary Research fellow at University College london steve thank you so much for joining us today now Christine Lagarde is holding her 1st Monetary Policy meeting on december 12th as we just mentioned what can we expect to come of that. Very little. Theres been some sense of change to the use of c. And the a c. Big since the whatever it takes place. And thats going to check and now because its the its the overall constraints on her which determine her behavior rather than run personality Yanis Varoufakis i made this point very well just recently that the state a does what the the master tree and the lisbon treaty get but not a choice but to do and then in a vise within that prison where this crazy situation of negative rights and one is that of a single come from but they know trying to look at what was happening before them saw national actually has to deal with a lot of side effects left by her predecessor dodgy so what are the side effects exactly of that you see these ultra loose policy and what can the central Bank Actually control to fix it. Well it cant control the treasury and this is the real problem not only does it not have a treasury through to backstop this happens with the United States treasury and backstop but the Federal Reserve it also. Doesnt have any control over the fiscal policy where you can drive is not the same place to me like the economy will with fiscal policy but of course the fiscal rules are constrained by the the 3 percent limit on deficits and the 60 percent but on government on Government Debt which means that you know economy can seem like its prada say that by having all obvious excess spending so a lot of the point you made about it being external factors thats false its fundamentally internal factors that the sonnet the a you was always de flash mary and the prediction that legally made back and not enough money to win the crossest these years does not make it worse has been well and truly blown out on the facts and now instead of finance ministers are now pushing back against the c. P. P. For their negative rates saying it is having a detrimental impact on say. Beings and pension systems they want to hire but you know President Trump here stateside is big claiming that the fed didnt lower rates enough and blame fed chair drone powell for the deepening u. S. Manufacturing slowdown it is voluntary possibly a policy just inefficient and effectual now. Yet always has been and only the nearby spill economics arguing that you can many middle of the economy by at least trying to interest right twice as much on the opposite direction from the consumption to 2 already in the same direction by single process stops inflation come down to lots of slobs and save a lot more at this fictional idea of a natural right of interest that would get the economy and the librium and eminently off as a whole and their fantasy. Is the theory that striving how they see the census policy is a theory a plan that doesnt exist in those offices some in this galaxy so its. The only i think it wise to have a treasury that runs and runs a deficit which when that was just must because that episode actually creates the money the private sector used to spend and because of the role of the united impossible then that the worst of this go all the and it constrained Monetary System so what they actually helped to have additional fiscal policy as the thing that i alluded to. Has to look like as getting rid of the ridiculous construct of the trade the sense that as an absolute sailing to getting off your house the average deficit for the American Economy since not since not 800 has into all this energy thats the average take out the was is 2. 2 percent so the whole idea is matched to mention the rate is a ludicrous constraint and its all based on a fallacious they cannot see coming out of near a lake in all of us which of course of the mounting on buying the theory leads to a real rules to control real economy. And it necessarily causes economic disasters as were seeing in europe by the time now speaking out about has many many complaints he had he recently lashed out at the european allies ahead of the nato anniversary summit claiming that they dont contribute enough. So we have a lot of countries stepping up and putting up a lot of money. As if this is over this exactly 131000000000. 00 thats a year thats a tremendous amount of money but its not enough does he actually have a valid point here are his he trust trying to exert more pressure and dominance again over the nato allies. 5 is it money putting more pressure on obviously i mean the whole idea existence of nato is something you should actually question is that it was didnt surrender soviet union what is going on there is going to is this the soviet union follow the last 30 years ago its things its increasing tension are brought the suit dissolved and iraq the wondering about who funds that. Role the main thing the troposphere wing is reduced from to ensure balanced trade around the world while he has another go eat currency because the american dollar is a constant National Pride and it should not be so and i just illustrated im going to sit back and watch the fun. Fascinating insight as always thieves and professor of economics im patriotic thank you so much for joining us today. Chinese students are now the smartest in the world in the latest try any all study conducted by the organization for Economic Cooperation and development 15 year old Chinese Students tested better in reading math and science and students in any other the 78. 00 participating countries in math and science by a significantly wide margin and in reading only singapore came close when rounding out the top 5 in each category china singapore macau and hong kong consistently place in the top 4 and a stony i came in 5th place in science and reading American Students on the other hand performed above the o. E. C. D. Average in reading and science but below in math on average across the o. E. C. D. Countries girls significantly out of form boys in reading by 30 points so with education being more important than ever in this new digital age the quality of education in the students will feed into the strength of the next economy now kristie when i see this and i read this all i can think is you know here is an american of course is that you know our Public School system has kind of started to fail but why do you think the Asian Countries are being able to kind of be superior in this regard that i think is more so they have stricter standards state stricter standards across the board and thats kind of like the benefit of having like a lets just call it a communist country when they implement something they implement it wide across the board versus here in the United States you have state power versus federal power and things like that in every Single School districts very different everybodys independently operated and thats kind of like the pitfalls of a democratic country. The pitfalls of a democratic i doubt are that are a lot simpler thats why in america and last us lets talk about last month when we looked at the economic employment numbers there was actually not enough significantly Skilled Labor workers across the board people actually couldnt have workers to hire that were skilled enough to work in the Tech Industry in the Health Care Industry bears today what we got to go thats it for this time you can always catch boom bust on youtube dot com slash boom bust our teeth see you next time. Oh. Cool. And a very warm welcome to you youre watching us in just a few join me every 1st week on the alex im unsure and ill be speaking to us from the world of politics sports im show business ill see you then. I. Really. Feel a stomach writes hunger trump impingement hopes on a new House Intelligence Committee report now but not everyone believes its contents and they said theres nothing new in it anyway. The u. K. Government faces a backlash after details were exposed of a plan 3 years ago to create a positive image of the controversial fracking industry among the general public. And the investigation that discovers a popular fried dating ups like tatum doing ok cupid dont scream whether or not theyre members of registered sex offenders we asked our guest and who should be responsible for people safety. We need the company to take a moral stance or at least have some
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