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 see a lot more downside in this new front a limitation of u. S. Pension funds to tinys markets with the massive portfolio swings thats the. 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 us 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 one listed on u. S. Stock exchanges but they also say there is no time frame for implementation further fueling the uncertainty so is 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 term can create from the suggestion is that the move itself just to create more uncertainty. I think its part of from you know art of the deal i think its you know its not 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 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 potential capital restrictions on Chinese Companies and if they do so what in these Chinese Companies then instead of i feel in america when they just. Walk over and list over hong kong. I mean they roll us over to hong kong i mean baba want to do all this there anyways i think what youre doing is yours youre in china for years they still have 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 lets 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. A lot 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 and next 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 would we start seeing that negative effect in the earnings reports coming up for this next quarter. Well i was i think the dollar is going significantly higher amount i am looking for at least par when it goes up to i mean weve been looking forwards and that was in the eightys but i think it shouldnt hurt profits but of course these are built in excuse is that the current corporate corporations 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 a more mixed use 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 fee at all 3 i currently system is done through the Federal Reserve is allowed Central Banks to manipulate dollars and the United States dollar is a fair asset so there is money flowing here because of someone certainly around the globe so on the back of the strong dollar 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 the u. S. Treasuries whereas the u. S. Got a 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. Oh 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 then 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 or charging them or are going to try to sell or trade 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. s the sort of troubled i. P. O. Market recently seems to be crumbling in fact the median i. P. O. In 2900 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 pull its own crashed in trading. Well youre going to get 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 theyre 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 in nursing about their own companies so i think were in for a somewhat bumpy road when that starts i cant answer that question but i had to go get them or. Its 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 feel 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 pod super glued onto it the real innovation right now has actually been coming out of china in 2018 the biggest i. P. O. Is listed were Chinese Companies on the u. S. Market which included 10 set which included next which included ali baba back in the day which generate 300000000. 00 in brokerage fees for the u. S. Trading market so all of this information and all this money and revenue into the u. S. Market is actually coming from china so again if the does the u. S. Market actually is harmed from the u. S. 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 surface 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 they always do and theres always a reason why the markets finally get that final selloff after theyve had a 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 its 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. They steal our innovation or whether there may be are very to begin with well go back to those times or would choose to 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 paper. 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 Online 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. 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 our own suspicious 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 Offerings show news corp 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. Trinitarians i. P. O. Suggests that investors are confident and transience future prospects its 1st to trade in the price of tribune stock increased by a 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 stock price would be 6500000000. 00 for the cell phone maker aside from the impressive story of the transit i. P. O. Is also noteworthy for taking place on the store market the stock market is the Shanghai Stock Exchange is highly touted in answer to the tech heavy nasdaq exchange. Time now for a quick break but hair because just on the other side a judge has ruled against has another labor day it would solve even more trouble by they already have a company molly bear a contributor to americas lawyer will be on hand for the ruling was the fact. The long march and the tactical. And as we go to break heres the numbers at the club. So what weve got to do is identify the threats that we have its crazy confrontation let it be an arms race in. Spearing Dramatic Development only mostly im going to resist i dont see how that strategy will be successful very critical time to sit down and talk. Soul reposed gamble is ongoing the whole negative Interest Rates are the same that we work better in the bond market these things are happening or experiencing a breakdown in markets all over the world so what we have we dodged one bullet call the wed work you know but were getting. From financial bad guys shooting at us with impunity. And so many people because they copied them. Im not anybody in. The field let blood she was. What. Is that if you have to say. That is. What did. You know world a big part of. Law and conspiracy its time to wake up to dig deeper to hit the stories that made stream media refuses to tell more than ever we need to be smart we need to stop slamming the door on the shouting past each other its time for Critical Thinking its time to fight for the middle for the truth the time is now were watching closely watching the hawks. Welcome back saudi arabias crown Prince Mohammed bin saul 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 a price spike rather than continued restraint from irans adversaries in a news making interview with the us news magazine show sick. 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. And denies this and has from the very beginning any of involvement in this airstrike which of the drones as well as missiles supposedly involved in this hitting 2 of the saudis biggest a oil refining or a reserve 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 the supply were down by about 5 to 6 percent after the 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 it didnt really hold too long but it was the biggest jump that weve ever seen look at this graph the. 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 hurricanes to strikes to libya war katrina you know the big things happening in this world some of these wars are sustainable. 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 principal you know him and his company are 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 this 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 jus