A deal was close or the talks are going well in order to bring the market back up and thats exactly what happened on wednesday after the president made his statement to reporters at a meeting of nato leaders in london so the president said quote discussions are going very well and well see what happens and then sure enough proof like magic stocks rebounded on wednesday as the president also indicated that the 2 sides are closer to agreement on how many tariffs would be rolled back in todays one of the deal and another trade deal on the horizon the Japanese Parliament on wednesday approved a trade deal with the United States which was negotiated by that you could use leaders earlier this year the deal which cut tariffs between the 2 nations will go into effect at the start of 2020 after the deal was made between President Donald Trump and japanese Prime Minister shinzo abbay in september the us president said the trade deal will open the door for 7000000000. 00 in u. S. Beef and Agricultural Products to be sent to japan with tariffs lowered or removed on beef pork we. These corn and wine now in the deal a 2. 5 percent tariff on japanese vehicles will still remain in place japan is currently americas 3rd largest trading partner for foreign products importing roughly 14000000000. 00 worth of products per year now joining us to discuss the latest in the u. S. Trade is Richard Wolfe professor of economics americas at the university of m. Hurst and host of the economic update professor walt it is so good to have you here today. I want to i wanted to start with this trade deal between the u. S. And japan because i couldnt help but think about the fact that the Obama Administration had to go shoot at the Transpacific Partnership which did include japan but it was widely disliked by the Labor Community and members of his own party due to some not knowing what was in the deal due to fast track but is this deal negotiate by President Trump a better deal for the u. S. Than the Transpacific Partnership. No the simple answer is simply no let me explain in the t. P. T. That was negotiated by obama which had a lot of problems its not a question of liking it or disliking it when trump withdrew from that unilaterally the other countries didnt they went ahead and Canada Australia and they are very important in these meat and beef movements they all stayed together and that put the United States as a at a disadvantage because the t p p that they stayed with lowered the tyrus on for example canadian and australian beef into japan all that these new deals have done is give the United States back get them back to where the other countries are its a kind of a catch up by mr trump so he can look like he wont make deals like t. P. P. And then when all the dust clears all hes done is made a private arrangement with japan to get the United States back to where it would have been anyway if it had stayed with the t p p this is a classic game in which your posturing as being mr tough guy who doesnt go along and then quietly later on making the deals to go along after all so professor voted take a macro look at this trade deal especially with what happened there with the t p p and now this unilateral deal in your opinion or just factually are you know lateral deals generally worse than a multilateral deal like the t p p. No it varies depends on whats in these 2 agreements theres no necessary better or worse its a question of how you work things out the more the economy is globalized which has been going on now for decades the more reasonable it becomes to get a deal once and for all get everybody around the table and kind of work it out otherwise every time you negotiate a new deal one on one with another country all the people you negotiated with last month or last year feel that they have been left out that they need an update now you have to renegotiate everything its a chaotic disorganized system so in general folks prefer the general agreements its harder to get the agreement but you have more Something Real to hang on to and remember farmers and businesses have to plan months years ahead they need this ability which are one on one arrangement would be almost certain to do so mr trump postures the tough guy whos not going to go along and not going to be cheated but what hes actually doing is introducing the very uncertain t. That is the problem for so many businesses which is why they are so questioning im being polite here what the president is doing lets move on to the china u. S. Trade talks and i know you have a lot to say about this on tuesday the trouble in the strait and said might have to wait till after the 2020 election for a deal to get done and then of course on wednesday change that the president said as i just mentioned the talks are going very well so heres the thing professor are we in a position now where as weve talked about before there really isnt going to be a significant deal either way a lot of this is just posturing by both china and the u. S. Ultimately but is this a game being played to kind of game the stock market because every time he says no deal he goes down and so hes got to bring it back up if he essentially artificially pumping up the market to make it look like the stock market is doing well. Well i think the way to understand this is to focus on your 1st point where i think you really hit the nail on the head nothing fundamental is going to change the chinese have a model that has given them Economic Growth that is the envy of the world this year they will grow 6 plus percent the United States will go 2 plus percent it speaks for itself theyre not going to change something that has worked so well for them so that they are now the number 2 economy in the world is simply not going to happen mr trump cant make it happen and it isnt going to happen so what were left with is the Little Details here or there yeah theyll cut a tariff here theyll cut another one theyre each side will claim that they stuck to their guns and they really did well thats for their domestic Political Support but were watching shadowboxing game here that isnt real nothing fundamental is going to change i think this stock market stuff is stuff that nobody else cares about the people playing the stock market see and up and down they can make some money there but the president is busy playing the political game hes trying to get reelected and hes trying to keep the attention on him not his impeachment not his problems but where he can posture as the savior of the American Economy and fighting the chinese and all of that drama is positive for him especially given the problems his actual situation creates for him here in the United States professor wolf stick it on the theme of china theres the big nato summit going on right now in london and the need to secure a 5 g. Communications came up during the summit which of course brought up the issue of Chinese Telecom giant huawei now President Trump said when asked about the use of weiwei tech in 5 g. Implementation i do think its a Security Risk its a security danger i mean weve talked about this before but is the u. S. Is going to continually be left behind as they make these points about why our way over and over again to try and get back at china. Absolutely it is a process in which i think we will all be looking back at mr trumps regime and saying this was a time when the United States economically speaking was shooting itself in the foot this makes no sense why way announced over and over again what everybody who knows about Technology Already knew which is they are the leader in 5 g. Technology theyve been mad for a year or 2 now theyve now produced their own smartphone with no us components theyre racing ahead every other country was making deals with weiwei its a kind of peculiar argument this National Security argument until the chinese caught up and surpassed the United States everyone in the world was using u. S. Equipment and they were worried about the National Security implications suddenly when the chinese are a real competitor everybody is worried about the National Security implications the weiwei has promised and many European Countries have accepted this promise that they will not do anything that is not understood by the west and accepted by the west that is the deal that has to be made by them and they would be selfdefeating if they undermine their own deal they need to grow they want the world as are our system or just as apple and google and amazon do and thats the real driver of whats going on the host of the economic update professor Richard Wolfe thank you so much for joining us today. My pleasure thank you. But we are now only hours away from the saudi aramco i. P. O. Price is being locked and so far what has been billed as what could be the Worlds Largest i. P. O. Has not disappointed december 4th is the end of the Book Building process thats for allocating shares to institutional buyers were talking about Asset Managers insurers and Pension Funds well so far the institutional tranche of saudi aramco is i. P. O. Have been almost 3 times oversubscribed receiving orders worth 189000000000. 00 reals which is worth about 50000000000. 00 when i say it again the saudi aramco i. P. O. Has been 3 times oversubscribed oversubscribed is the term for when i. P. O. s demand is greater than the number of shares issued typically i. P. O. s in saudi arabia tend to be subscribed many times over although the unprecedented size of a saudi aramco listing means its harder to benchmark the level of demand around co as previously said that point 5 percent of the offering will be allocated to Retail Investors and will leave about one percent or 2000000000. 00 shares for institutional buyers again this deal could be the worlds biggest i. P. O. If it tops the 25000000000 dollar listing of Online Shopping site alibaba well meanwhile speaking of oil opec says that it expects to deepen production cuts later this week but still has to get agreement from allies like russia which is not a part of opec and instead is part of a grouping known as opec plus opec plus has been curbing output since 2017 trying to counter the oversupply as a result of booming output here in the u. S. Which has become the Worlds Biggest Oil producer and will not be taking part in these cuts. Time now for a quick break but hang here because when we return there has been a major shake up in the tech sector as google continues facing heat from regulators to do walk ins of simply trading joins us just after the break to dig into the recent moves and how a trust threat may have played a role plus a new space for. This is heating up but with some new characters and with some new goals our chief correspondent the toughest which helps us to understand how companies are racing to launch their own stellar explorations as bad we go to break here the numbers at the clubs. Wow. I i. I. Was it. Easy to do. Thinking of getting the music on the. Shelves no problem was he didnt know until he was trapped in the. Building near the crate with him he will just. Freaking out and he wont let us bring him anywhere near and thousands of breeding dogs are caged in in human conditions on puppy farms i mean 67 years you know theyve been locked up in cages outside you see no protection from the weather the heat you know the cold air the rain the snow the funder nothing they have no protection. For the you. Know its ok. Across the u. S. Cruel puppy mills are supported by dog shows and pet stores most of the puppies are coming from this large Scale Factory farming kind of operations are. And stores even a good businesses are involved like. There has been a shocking amount of the organized opposition to adverts to increase sandor to care for dogs bred in commercial breeding so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with jobs dont buy dog. The European Unions tendency to believe that. It represents europe has long been a major gripe for russia but as the e. U. Experiences significant internal difficulties it is starting to reassess what it is and what it stands for what does that process mean for the countries sharing the continent with. Well a major shift at google as the companys long serving c. E. O. And president are both stepping down from googles Parent Company alphabet larry page and sergey brin are stepping down as state and federal regulators along with the department of justice and congress are taking a look at googles possible abuse of privacy practices and whether antitrust laws are needed to curb their market power as we reported google is facing a heavy scrutiny here in the United States but has received several enormous fines in the for violating privacy standards page in britain they have already disappeared from public view at least in the role of Company Representatives and it will be no surprise that sunder pushup shah who acts as the chief executive of google has been groomed to take over alphabet so hell run the whole thing u. S. Semiconductor giant qualcomm says it will appeal a south korean courts ruling on wednesday to uphold 800 73000000. 00 fine over antitrust concerns but that really was initially. By the Korean Fair Trade Commission in 2016 citing unfair Business Practices regarding patent licensing and sales of their mobile modem chips the fine in question was the highest ever levied by the k f t c judge no 10 of the soul of the High Court Says in its ruling the defendant exerted a significant influence over mobile phone manufacturers either through unfair relationships or making them depend on the dependents supplies of my modem chipsets qualcomm continues to face antitrust suits throughout the world including one by the Us Federal Trade Commission now ben i actually want to bring you into this conversation because we just had those to begin to trust stories and youve been covering this for quite some time and it appears were hearing more about these maybe theyre not more actual suits but were hearing more about it in the news why are we seeing more and more about this of these unfair competitive practices being like publicly yeah i think i think the question is do they ever actually become suits or are they just threats right veiled threats about sites look Tech Companies have done something that really has not happened in a very long time if you go back to the original purpose of antitrust all the way back to Teddy Roosevelt right antitrust was done in order to bust monopolies and to create fairness in the marketplace we really havent seen companies expand the way that Tech Companies have until recently and so what happened with these Tech Companies is they arent just massive Tech Companies theyre in the everything so we talk about google right being involved in health care and google being involved in the Cloud Computing amazon being you know not just an online retailer but also doing a department of defense contracts the bottom line is these companies are enormous and theyre in so many areas and the thing they have in common that needs to be broken up is the tech part of it the fact that they have all this essentially tech data on consumers and theyre using that data to transfer across industry and across companies and i think thats where youll see the break and now weve weve seen you know these big fines but for a company like facebook or google or even qualcomm who is one of the largest chip makers in the world you know they dont. Anything they dont hurt the company because it doesnt bother their bottom line in fact facebook it set their money aside so what is really going to be done to affect these companies yes the fines are a joke the only way you affect them is to either break them up or to ban them in certain countries in fact what i would say is that the fines are actually a positive if youre a google or an alphabet or you know facebook you benefit from fines and the reason for that is because it essentially creates a system where you dont get competition necessarily coming in because competitors cant pay the fines but the behemoths can so the fines are actually positive for you because you set aside as you said facebook sets aside 4000000000. 00 as we can pay fines on the giant bucket of money but your competitors cant they cant come along and do that well this is interesting were going to follow because we see more of this and more and more of this every single day so lets bring in t. V. Watcher and. The director of stocks simply trading to give us a little bit of insight on what this is doing to these Companies Bottom lines and what the what its doing to the markets thank you so much for joining us today has gone great so even though qualcomm is facing this 873000000. 00 fine from a south korean court the american chip maker is still thriving in fact on tuesday they unveiled their new snapdragon 8 65. 00 processor 5 g. Phones to be released next year and the chip will power show me is me 10 and the high end models by another chinese manufacturer apo qualcomm stock is down more than 10 points over the last month but where can we expect it to go i mean youve seen these big contracts. Well coming from my perspective from simply trading and being somebody that looks at the market and stocks and charts you know the chart for qualcomm is in an uptrend and its looking fine we look back a little over a month ago they had earnings and the price skyrocketed for earnings and coming from our world and what we look at it just outran support outran its moving averages support and we say what what comes up must come down and its coming back down to some major support levels and were looking at that just saying well you know when it goes up like that sometimes they just look for news to bring it back down but overall qualcomm is in an uptrend and it just kind of need to get back down to some reality and start walking back up. You know images just a minute ago about the heads of alphabet both stepping down at the same time how much of this do you think is actually to prepare the way for sudden or push i did take over the company and not be as related necessarily the antitrust is just their time is past. Yeah seem quite a bit like that you know i would say 1st of all having one leader one boss is better than having 3 you know theres kind of a teamwork there that might have kind about run its time in its duration the other thing theres really no piece of information thats very interesting is that this year is a record year for c. E. O. Departures from u. S. Based company i dont little over 1100 and the only other one thats come close to this was 2008 so it might be that theres actually something bigger going on or maybe theres a generational thing but theres something about this year where a lot of c. E. O. s are departing and the google situation might just be kind of one of those in this bigger broader range of whats going on you know i know you said you know it may be the time here but i mean what does google actually have to could be concerned about here alfabet if you will in this move with their c. E. O. Stepping down with some type of you know as we talked about the trust i mean is this something that concerns number one investors and the company is more antitrust lawsuits coming against google. As far as the investors there have been really seem to be any kind of problem i mean googles been up its been doing well over the last several weeks if not a few months you know we just dont see anything really wrong or bad as far as the stock in the performance of google itself and as far as the you know whats going on with the rest of them you know were starting to see that there might be a little bit more political pressure going on you know some of the candidates that are out there trying to run for president are talking about breaking up big tech and that there might be some pressures coming from that the other thing is that with all this technology thats come out there there might be a need a new breed of c. E. O. s that need to come out in order to run these companies that its a new era for them and theyre trying to adjust. Yeah its kind of fascinated when you look at the fact that right now you have americans who love the products of these companies they dont necessarily love the companies and so whether youre on the republican side or the democratic side everybodys kind of against these Big Companies wants to break them up and it seems like its more or less kind of a Winning Strategy but i do want to ask you quickly about the stocks that jumped today after that 3 day slide much of it the result of what the president said about very good discussions taking place on phase one of the trade deal you know Richard Wolfe was with us a few minutes ago made a comment that the markets its all kind of a side show doesnt really matter but it seems to matter certainly in terms of what the president constantly says about his record with the markets he gets record high stock markets and by continually saying how theyre getting close to a deal he keeps the market up does he not. Yeah i kind of have to laugh at that you know again us with the traders in the stock market were a little bit jaded to this we see the news all over the place we see conflicting headlines you know down close not close theres a hesitancy were on a good roll and it is all kind of all over the place and really when we look at this we were as a as a team and as Stock Traders were looking at this kind of running out this trend that we had in the market running out and looking for a pullback and then yesterday i just gave a class saying look at us were going to bounce probably tomorrow off of this other moving average you know we just look at the news and say ok this is explaining what really were seeing in the charts so which came 1st the chicken or the egg about this absolutely fascinating stuff and well keep watching everything to jaywalk walk ins of similar trading thank you so much for your insight today thank you very much i i. I i i. The race to space is a worldwide effort and the cost of it isnt cheap the Current Space endeavor actually has its own economy which is growing exponentially r. T. Correspondent natasha sweet has the details from los angeles. The global fascination with outer space is hitting an all time high and now commercial activity is skyrocketing in the space Industry Private companies are jumpy men hoping to make the most of inhabiting the final frontier the good news as satellite and Rocket Technology evolves costs are coming down and now private Companies Like space x. Blue origin and Virgin Galactic are hoping to make big profits on the future of space there are 3 major sectors of the space economy products and Services Everything from Television Radio cell phones to weather tracking makes up 55 percent of the Economy Infrastructure like space vehicles space stations and terminals make up 25 percent of the economy and government which would consist of space agencies like nasa and the European Space Agency Account for 20 percent of the economy. To be developing the viper rover that i got a firsthand look at which will allow us to explore and perform experiments on the south pole of the moon in preparation for our return of human american astronauts to the. As you can see the excitement to revisit the moon as a priority for many in this day and age Vice President mike pences the viper rover will allow the u. S. To take a big leap toward mars and even develop technologies to live on the moon for years developing a new generation of Nuclear Powered spacecraft that left actually help us fly further and farther faster than ever before the investments being made in the space industry are astounding from the year 2000 to 2051100000000. 00 was invested but from 2012 to 28. 00 that number exploded to 10200000000. 00 and according to Goldman Sachs a whopping 13300000000 has been invested into newly launched space startup since the year 2000 showing just how much of an interest this has brought to the private sector and a big part of that now were volves around the interest of tourism. The origin and Virgin Galactic are hoping to launch the 1st space vacations next year but the concept isnt exactly new in fact dennis tito an american businessman paid 20000000. 00 to become the very 1st space tourist back in 2001 prepaid tickets for a 90 minute suborbital flight with Virgin Galactic is currently priced at 250000. 00 now technologies are continuing to evolve all while the interest to explore the unknown grows with a space 1000000000. 00 industry who knows just how high that economy will soar over the next few years in los angeles and sweets are. A fascinating report from natasha there and i found a couple of things interesting number one did you know that after our Space Capabilities are so much worse after the initial moon landing and they now than they were then its crazy because we we werent developing it and more importantly Vice President mike pence thinks were going to put human americans im glad there are humans on the moon he seemed very unsure about about his statement or i like that is trying to parse it very carefully like maybe we werent there originally. But you know what i do think its interesting i didnt see it so i thought what was interesting was the guy who paid 20000000. 00 for a sub orbital flight and the price is now 250000 i mean the party made 20000000. 00 the prices are always going to you know if you didnt have to pay the 250000. 00 but would you go yes i go for the truth if you paid for that is our report for you today. Youtube dot com bust r. T. I. The 4. Leg. Length. Play. Play play. Please. Play. Play. Lists lists lists. Lists. Playing. And very well might continue watching us and see us. You know world big part of. 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 smart 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 troops the time is now for watching closely watching the hawks. Midday here in moscow in the headlines for you. Germanys decision to expel 2 Russian Embassy stuff is calling the move unfriendly and unjustified germany claims as evidence to link russia to the murder of a Georgian National what happened in berlin several months ago will bring you up to speed elsewhere. Elections looming delayed the leader of britains labor party is smeared by spreading socalled russian this information the main accuse in the Daily Telegraph newspaper is a probably used the same dossier of the fool itself. The u. K. Universities under fire for guidelines set for stuff travelling to its new
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