Portfolio inflows into china and limits on exposure and also blocking new chinese i. P. O. s from listing nasdaq is already cracking down on i. P. O. s a Small Chinese companies by tightening restrictions and slowing down their approval process stocks in Mainland China fell to the lowest in almost a month as the u. S. Further escalates into the planned trade talks discussions this opens up a new front that we have not seen yet in the china u. S. Conflict the big question now remains are these just loose headlines and make threats from the white house using capital flows as a bargaining chip or is this a real threat while a treasury official reported over the weekend that there are no immediate plans to eventual u. S. Companies from listing the market is not reassured as the source also said that there is no time frame for their implementation and a crackdown can come without warning there are now at least 2 bills circulating in congress that could result in capital controls if passed markets now. A lot more downside in this new front in the midst haitian of u. S. Pension funds to tie his markets with the massive portfolio swings that spells disaster for the tech sector china could further retaliate and dump u. S. Treasuries but what is most worrisome is that this is an extreme departure from the u. S. As longstanding free market orthodoxy the u. S. Has long advocated for opening Financial Markets around the world to capital the fact that this discussion is even taking place is shocking to the whole International Finance community. Now with more on the field of battle for this Global Capital war we bring forward chief strategist of the trading welcome back now a treasury person says now that there are currently no plans to block Chinese Companies from being listed on u. S. Stock exchanges but they also say there is no time frame for implementation further fueling the uncertainty so is that in your view is this a real threat or is this more of a bluff or is the uncertainty that the he can create the mr president can create from the suggestion is that the move itself just to create more uncertainty. I think its part of you know art of the deal i think you know thats in my opinion thats never going to happen there never the less these companies because it just it doesnt make sense it takes away money out of the flow of our markets so theyre not going to do that and of course the chinese stocks did recover a little bit today based on that information you know could happen i dont think so i think that this is more of a play and good president trying to slow down sure theres a lot of things you can do but i dont think that he would do this is this would be this would be a very bad idea and i dont i dont think he have it done and they can get past i think theres too many things going on here they would create this from ever happening so while the market doesnt think that they would actually delist there it is pricing the fact that the u. S. Can place a 10. 00. Capital restrictions on Chinese Companies and if they did so what indeed Chinese Companies and instead i feel in america when they just walk over and list over hong kong. I mean they will listen over to hong kong i mean baba want to do all this there anyways i think what youre doing here is youre in china for years they have these live cattle restrictions on what can go out so theyve finally opened up the markets to their people so you can see anything happening but again i dont see any real restriction i think this is more of a waiter pressure of the chinese to say hey lets get this deal done lets get the free trade going lets get all these tariff wars over and thats play ball and i think this is whats going to happen and i think youll see you see the reaction in the china markets which has been pretty much disasters and but then what and this actually does end up hurting the u. S. Rather than china. Well i dont listen i at the end of the day if they did the less they would do i think we would survive and we were provided still flourish but i dont think that again i dont believe that were going to go back into just the American United states of america only without having International TradeInternational Things going on so i dont believe that will happen i dont think it is i dont really think its an issue to be honest. And meanwhile bubble of the u. S. Dollar is at a high for the past 2 years against both against both the euro and the dollar index basket the ice dollar basket sounds good but of course in International Trade a higher value currency hurts your exports is this trend in the dollar trending higher going to start affecting corporate earnings and will we start seeing that negative effect in the earnings reports coming up for this next quarter. Why are those i think the dollars going significantly higher amount im looking for at least par when it goes up there i mean weve been looking forward since it was in the eightys but i think it shouldnt hurt profits but of course these are built in excuse is that the current corporate court. Asians will have when it comes to earnings because certainly they know enough to be able to hedge the dollar if you want to protect against dollar exposure you can certainly hedge it in the open free markets so i think this is more america skews when they do start using it its the same as you know whether because it certainly could be hedged relatively easily i mean we try to globally and were able to hedge dollars overnight so its certainly something that could be done and should be done but they rather would use it as an excuse for not making their numbers the kind old back as far as the export and look this is what the currency wars created this is what the fia currency system has done through the Federal Reserve is allowed Central Banks to manipulate dollars and the United States dollar is a fair answer so there is money flowing here because of someone certainly around the globe so on the back of a strong dollar 7 the u. S. Right now isnt it needs to borrow money lots of money and china is 1. 00 of the main main buyers of u. S. Treasuries so given the strong dollars and this very bad economic front here china can actually refuse to buy for their u. S. Treasuries whereas the u. S. Going to bomb money from. Again though you can always get to a rate or some reason alone your money now i would find it very hard to believe that china would actually stop borrowing money and buy u. S. Treasuries because theyve got too much invested you know its all bank 5000 they own you have your own 5000000 you own them and i think right now based on the amount of money an amount of treasuries that china is holding theyve got no choice than to keep supporting this or they may not get paid back so i get these go into a lot more complex things then theyre going to theyre not going to buy more or theyre going to try to sell or trade as they sell them you could simply just manipulate everything down so its not that simple and it will never happen. And todd this upcoming earnings week may be very revealing in terms of gauging the health of Corporate America weve been touching in on these i. P. O. Is the sort of troubled i. P. O. Market recently seems to be crumbling in fact the median i. P. O. In 2019 is drastically underperforming the russell 3000 is the worst on record right now surpassing the negative returns at the peak of the financial crisis from 2009 so my question is did we just weve just gone through witnessing an i. P. O. Bubble bursting now that we work i. P. O. Has been postponed and political own crashed in trading. Well you can look at a couple of ways you can say investors are friendly getting smarter and theyre not chasing these i. P. O. s up but it certainly indicates there are some problems and of course you know weve been talking about this for about 6 or 7 weeks that i believe that were already in the early stages of a recession to begin with you know recessions like markets dont announce themselves and say hey were going to recession there already i think its already started and you can see that showing up in some of the earnings that are going to be out this week i believe and the new i. P. O. s that people are not going to chase into them the only thats really confident right now is the consumer because they can afford to pay for it by the month and theyve got jobs but if you look at underneath the surface Corporate Executives are selling their stocks are already you know ahead of time because they understand that there are some issues and theyre seeing them in their own companies so i think were in for a somewhat bumpy road when that starts i cant answer that question but i its you know again the markets going to continue to drift higher but eventually theyre going to have theyre going to have to come to a meeting because we are certainly starting the very early stages of recession not so lets go back to the i. P. O. Market right here we work was essentially a Real Estate Company and peloton for lack of a better word is just stuff overpriced stationary bike with an i pad super glued onto it and the real innovation right now has actually been coming out of china in 2018 the biggest i. P. O. Were Chinese Companies on the u. S. Market. Which included 10 cent which included net which included ali baba back in the day which generated 300000000. 00 in brokerage fees for the u. S. Trading market so all of this information and all of this money and revenue into the u. S. Market is actually coming from china so again is that does the u. S. Market actually is harmed from the us implementing capital controls on Chinese Companies. Well again i dont believe theres going to have a controls but if we get down that you already saw the very beginning service on friday when the when the the news item came out of bloomberg so certainly thats going to create a much bigger selloff but again these things will resolve themselves as they always do and theres always a reason why the markets finally get that final selloff after theyve had it really thats going on and on and on and that could be that it might be the black swan that shows up but eventually it will work its way out and it will there will not be restrictions because again we go back to is a simple dollars and cents game and were not going to give up those dollars thats a little bit different than the dollars that were talking about for turf and for true. While america is going to lose out on a lot of innovation if they do try to restrict all this couple if they steal our innovation or whether there may be are very to begin with well go back to those times or would choose try to just above the trading day so much for and say thank you. Chinas central bank in accordance with their promise to further open up their Financial Markets has granted Pay Pal Holdings to buy its 70 percent stake in Chinese Payment Company this makes paypal the 1st foreign player to operate in the nations 24. 00 trillion dollar Payment Service market pay pals acquisition of go Pay International technologies has obtained licenses for on line mobile and cross border r. And b. Payment services this is a huge accomplishment for pay pal who has been trying to secure this for 5 years it will now compete alongside tech giants hourly pay and pay in china however it will focus more on cross border payments being the preferred method of payment for foreign consumers shopping in Chinese Online Stores pay for owns a space as the most popular cross border Online Shopping destination globally with one 3rd of its 210000000 users having bought products from chinese websites. The biggest player in the african mobile phone market may be adding. Insult to injury for companies with high profile botched delayed or otherwise disappointing initial Public OfferingsChinese Corporation transmission makes and sells mobile phones or the techno brand in africa which captures just under the african mobile market according to Market Research firm i. D. C. Transience i. P. O. Suggests investors are confident and transience future prospects its 1st day of trading the price of stock increased by head turning 96 percent before moderating to a still very impressive 1st a gain of 64 percent the net result of a valuation calculation at that price would be 6500000000. 00 for the cell phone maker aside from the impressive start the transition i. P. O. Is also noteworthy for taking place on the star market the stock market is the Shanghai Stock Exchange is highly touted answer to the tech heavy nasdaq exchange. Time now for a quick break but hang here because on the other. End i labored even more by the already. On hand. And that. The world is driven by shaped by. The. We dare to ask. So what weve got to do is identify the threats that we have its crazy to. Let it be an arms race. Period Dramatic Development the only posts really. I dont see how that strategy will be successful very critical time to sit down and talk. Paradise with some around and into a round the experimentation field for agricultural chemicals we know that these chemicals have consequences they are major irritant theres no question otherwise why would the Chemical Company workers themselves be geared up that suited up locals attempt to combat the on regulated experiments that often in day you have many of these people 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 why and its people so one has to ask the question whether there is a form of Environmental Research going on in hawaii whether these Companies Feel they can get away with this because the people have less political power. Welcome back saudi arabias crown Prince Mohammed bin sol mon is warning that oil prices could spike if allies do not join saudi arabias push to isolate iran the crown princes suggestion was arguably counterintuitive as most observers have seen aggression against iran as the more likely cause for rape. Spike rather than continued restraint from irans adversaries in a news making interview with the us news magazine show 60 minutes the monarch in waiting said quote if the world does not take a strong and firm action to deter iran we will see further escalations that will threaten world interests or supplies will be disrupted and oil prices will jump to unimaginably high numbers that we havent seen in our lifetimes in some on again claim without offering additional evidence that iran was culpable in a recent attack on a saudi saudi Oil Processing plant and farmar and on the much anticipated i. P. O. Of saudi aramco were now joined by r t correspondent alex mahela from toronto so like saudi crown Prince Mohammed bin salmaan is asking for action against iran but in his words a political and peaceful solution is much better than a military one so why the restraint all of a sudden. Look iran denies this and has from the very beginning any of involvement in this airstrike which is which was drones as well as missiles supposedly involved in this hitting 2 of the saudis biggest day oil refining or of their production facilities one of those actually the biggest in the world now for the saudi prince one thing that he knows is that in this case war might be bad for business because what we saw and some investors kind of like that when you know where the numbers jump when it comes to oil they jump price wise when the propriety goes down their supply were down by about 5 to 6 percent after this airstrike we saw the initial jump of 20 percent per barrel in the prices and then it just dropped to 10 percent so it was nothing you didnt really hold too long but it was the biggest jump that weve ever seen look at this graphic because its kind of breaks it all down for you because this really is very very telling major all Oil Supply Disruptions we have everything from wars to. Hurricane strikes the libya war katrina you know the big things happening in this world and some of these wars are sustained and this was the biggest spike that weve ever seen it because this was the most a massive of things when you look at 5 percent 5 to 6 percent of oil supply be cut off now the principle you know him and his company here of the ram co which is you know the state company in saudi arabia for oil well theyre doing all right theyre doing all right everything jump back into shape aramco actually somehow magically is doing their production is just under what it was before so thats pretty incredible in itself and according to the principle to this is the worry so according to the prince he said the middle east region represents about 30 percent of the Worlds Energy supplies about 20 percent of global trade passages and about 4 percent of the world g. D. P. Now this is where he knows that a war with iran could be devastating not only for his own economy which was hit by 20 percent ok when you visit happened right so this is this is massive here so its for the globe and so he does not necessarily want to go to war because he knows that on the other side of things things might not look too good for anyone and alex youre joining us from canada and we know theres been some bumps in the road to say the least between diplomatic relations between saudi arabia and canada perhaps most remarkably this threat to from a government associated twitter account basically threatening to 911 canada just about a year ago but there se