tv Boom Bust RT June 12, 2019 3:30am-4:01am EDT
right now to say the least in the u.s. china trade war one of the world's biggest employers taiwan's foxconn technology group says that it is preparing to move its production facilities out of china why is that. foxconn is worried about what investors are thinking investors are seeing this long war between china and the u.s. get longer and longer this trade war is something that a lot of people in the business community in the investment community want to see go away and foxconn is one of those companies that is affected by this now what foxconn is saying is listen which is their biggest client and that happens to be an american company there saying we can start moving our operations or productions out of china to one of our many other facilities that we have across the world and we can supply you a valid way now of china is not of when it comes to foxconn foxconn is taiwan base so as you can see here it's a bit of a split moving away all these operations out of china into different parts of the
world but again you know these guys make i pads they make i phones they assemble these things so apple is very reliant on them now looking at the current situation and with these demands that apple has from them. saying we'll move to one of these other countries they have operations all around the world to japan vietnam. the czech republic brazil and mexico but here is the issue at hand apple might be a huge 2 clients of foxconn but so is china so we're looking at this 1st of all 50 percent of fox conn's revenue is related to apple so massive and analysts say only about 25 percent of their manufacturing facilities are outside of china so how they expect to meet these goals. quite clear on that but if the company says it could do so well it might be able to do so but there's another angle here which is political the guy who's the chairman of this company terry go he is going to be running for president of taiwan or at least he hopes to he's learning for the leadership. the
nationalist party there and if you know anything about taiwan nationalists they're not friends of china but this guy is friends of the united states and also friends with tim cook and donald trump has given them a thumbs up so he's playing the american card here stepping away from china though when you think about the amount of business that china gives you it's going to be a hard sell i'm sure that not all investors will like to hear that. and another aging u.s. ally also seems to play an america came when it comes to the china u.s. trade war what can you tell us. you know looks like a japanese company has pledged allegiance to the united states of america and that would be tokyo electron tokyo electron is the number 3 supplier of some conductors in the world and what they're saying is that any company in china that is blacklisted by the united states well they're not going to do business with them and that's a hit against china because china is really trying to these guys actually make the benefactor equipment for semiconductors and china's trying to make its own so the conductor saying that it relies heavily on the u.s.
europe and japan for this type of equipment so these companies saying that we're going to stop it well you know what it might be opening up the floodgates and other japanese companies may follow suit this is the american style of hardball they're expecting other companies around the world to basically listen to their rules and not do business with china and when you see somebody like this in japan falling into line well you know this could be a bit of trouble for china but then again it could spread a little bit a little trouble for japan as well because look the proximity those 2 nations very close and like it or not they do a lot of business with each other. you know the u.s. may be playing hardball but not all the companies are responding to those tactics and moving in the same direction as the u.s. would like them to when it comes to the trade battle with china and specifically the this attempt to isolate huawei but there's also some resistance to that ban coming from the home front on american soil and i read. it true enough you know and looking out while we have been while we would be hit by. tokyo elect. if you'd stop
doing what they're doing with china but looking at the state the big things going on there as well we're talking about the u.s. budget chief russell voight he's basically saying listen this is not a good idea for us to just start walking away this quickly from china especially wall way wall ways a company that a lot of our people rely on to get things done especially in rural communities so we need time to be able to wean ourselves off of while we products in 2 years isn't enough we have to extend that to 4 years he's also saying you know this is just the way things are we do not want to affect businesses at home because of some tariff war and of course the bottom line is the tariff war is hurting everybody but when you look at the rural communities in the states that's when the americans get really sensitive alex mayhill of the chinese up a lot of loose ends are from toronto thank you. just. why the u.s. markets popped up nearly one percent this morning they are quickly losing steam as the tech stocks failed to break out major headwind stemming from the trade war are dampening the queues despite several positive headlines the kids flat line they are
quickly turned negative mid day as traders are pessimistic with more on that we turn to add. that a match trading grip so this is an ominous sign when the day looked to be so good in the mornings but on good headlines but then conditions quickly deteriorated but let's focus on the positives here for a moment amazon just overtaken google and apple to become the world's most valuable brand at $315.00 to have $1000000000.00 it seems to have businesses in a variety of sectors from health care to airlines to food give us the latest there and what can we expect from amazon going forward. thanks for having me in terms of amazon. what's even more remarkable than what they've accomplished is the speed at which they've accomplished in the last 20 years they've passed so many companies that have been in existence in double or triple the amount of time when i look at the other names in the top 15 for biggest brands you see. it's like mcdonald's and
coca-cola so to see amazon is number one when they started off selling books just a remarkable story and in terms of the pullback today we just have to remember that last week was the best week of the year for markets so we got to determine if this is a real pullback or just profit taking. and like facebook amazon seems to now be dipping its toes into the banking sector as well they'll be soon launching a credit card bill there for customers who have bad credit to slowly rebuild their credit score why do you think they're going in this direction and why is this an attractive market segment for amazon. 2 main reasons why amazon's moving into the sector number one is the majority of americans live paycheck to paycheck so they need to finance their transactions number 2 over the last 3 years what i call m.v.p. as outperformed fan and v.p. is master card visa pay pal so that has been the best place to be in and amazon
which gets its hands into anything that has any chance of success is certainly going to move there of its outperforming fan so it's a logical move for them and not surprising what will be interesting to note though is when apple moved into this sector they couldn't go around visa and master card american express they had to go through them because they were too ingrained in the space amazon currently works with the biggest providers but i'm wondering if they could go round them which would then be a hit to the biggest names in that space. and the current interest rate let's look at this is looks very high of 20.45 percent and as you mentioned it's aimed at people who have a poor credit rating is a really high rate like that really a good option for someone who has had trouble making their credit payments and is a little tone deaf maybe at a time when proposals to cap interest rates are being put on the table. i think
tone deaf is the perfect word i saw that i can believe it and and so they're looking to build up people's credit but if they're late to payments they're going to get charged 28 percent and these are people with a history of not paying their bills on time so it actually to me just seems mean and amazon did the deal with synchrony bank when i bought my house i bought a whole bunch of gym equipment at the same time and they said it's 0 percent financing with the bank i pay the bills on time but when you get those bills the fine print shows you essentially that if you're late at all you will be destroyed and it's the same thing here so i think i don't know if it's worth it for them to do it because of the potential reputation hits for what they could do to people that don't pay their bills on time so i agree i think tone deaf is the perfect word and turning back to apple who's been different on here by amazon it looks like apple and broadcom have struck a new deal for radio frequency components do you think that apple is shopping
around for new suppliers right now because their global search supply chain is endangered by these trade wars. well be irresponsible if they didn't keep their options open but broadcom a someone they have had a relationship with for many many years so them continuing to have that relationship isn't surprising the language because they didn't show the monetary value but the language was one thing i call it was it says that they intend to but are 1 not required to so that does give them some wiggle room in the event that the landscape changes but in terms of the deal i don't think it was a surprise and i don't think the stocks reflected any major announcement in that sense i think it was kind of business as usual at a match about a match trading at thank you so much for being here. thanks for having me. there is a corporate casualty report to report in the still building scandal over the u.s. opioid addiction an overdose crisis insists there are pubic says declared
bankruptcy after a $225000000.00 settlement with the federal government over their marketing practices as part of that settlement that insists admitted last week that it had created a fake speaker program that was a vehicle to deliver bribes to doctors who were granted agreed to prescribe instances opioid product called subsurface the u.s. attorney who led the settlement process said for years insists engaged in prolonged illegal conduct the prioritize its profits over the health of the thousands of patients who relied on it and says the stock price had reached as high as $46.20 in 2015 and says stock has lost more than half its value in the days since a settlement falling as low as $0.62 per share before tumbling today to $0.26. time now for a quick break here because when we return hands on mexico have been out voided for
breeding stocks the epidemic which is sweeping several nations is seen by many as the worst animal disease outbreak in history and is expected to cause china's pig population to decline by 20 percent by the end of this year traders are expecting the situation to raise pork prices to eclipse record highs set in 2016 hunan province pig farming company mill you want foodstuff has witnessed stock price increases of 102 percent over the last 12 months and young sea show has run skyrocketed 260 percent over the same period with between 150 and 200000000 hogs cold due to the disease since the outbreak began in august of 2018 chinese imports of pork are expected to rise by 41 percent this year but with the ongoing trade dispute don't expect the u.s. to fill that void as pork exports to other countries have been down 5 percent year over year for the 1st quarter of 2019. china is mobilizing its diplomats 2 g.
20 nations to drum up support against us you know louder as before the meeting and at the end of this month since trade talks have brought down and the ever present escalation of tariffs beijing is looking to appeal to the international community to stand together at this darkest hour protection of them to avert a looming trade war and support the global trade order beijing implied that the us was the real troublemaker for raising terrorists and investigated and instigated a trade war with officials saying that the us is a is a terrorist are inconsistent with the principles of market competition on basic business ethics china is defending its position saying that they refuse to be bullied or pressured by the us who undermine trade talks by demanding hundreds of changes to chinese law she home advisor to the stakeout. so revealed that in essence the trade war is not about reducing the trade surplus between the u.s. and china but rather the trumpet ministration overreaching their power and
inserting themselves to change how the communist party runs the nation's economic activities at home meanwhile trump continues to try to force china back to the negotiating table by threatening to stop tabs on another $300000000000.00 of chinese exports to the u.s. if president xi jinping does not meet him at g 20 beijing hit back saying that the u.s. should bear the sole responsibility for the stalled talks because they kept making demands that threaten china's sovereignty. u.s. president donald trump has declared victory in his confrontation with mexico over migration issues but critics say it's another case of the u.s. president over selling the results of his the air trix some experts are saying the episode will do lasting damage to cross border commerce and diplomacy between the neighboring nations here to give us her perspective as mexico city based laura carlson director of the americas program at the center for international policy law or welcome to boom bust. thank you laura let's start with just the premise of the
drama we just went through that there is a crisis at the us mexico border that demanded these remarkable threats from president trump you call that promise sensually falls how would you characterize the current conditions at the border and in the region. there is no crisis at the border in terms of immigration the numbers that we're seeing now are not historically unprecedented there been higher numbers in the past in the in the early 2000 and they're not unmanageable there's also been a change in the flows that we're seeing from central america primarily from guatemala honduras and el salvador in the sense that more women and children are coming up and there are more asylum seekers then migrants that are just trying to cross the border. and an. go into the country as undocumented workers and usually single adults which has been the pattern in the past so what this means is that these people have a right to due process they have
a right to seek asylum in the united states and the response to what's happening it should be twofold it should be 1st of all having more asylum officers on the border who can process these cases and secondly to go back to these central american countries and say what's going wrong here that's causing so many people to feel forced to flee because of the violence and political crises that are happening in those countries that's why instead of seen this as a border crisis we have to see it as a humanitarian crisis people who need it and have the right to protection and deal with it as such now on the agreement between the u.s. and mexico has been contested in terms of how much it's near and why it actually does walk us through what the mexican delegation agreed to and how much of a good or bad can be attributed to their trying terror threats. were the agreement says that they will send $6000.00 national guard members the new military
police and that was formed by president under his manuel lopez obrador to the southern border to basically stop the flows of immigrants not stop them because nobody can do that to crack down there and so human rights groups in mexico are not happy about that but it's not new in the sense that there's been both military and police carry in crackdowns and raids on caravans of migrants for some months now the other part of it is the expansion of what's called remain in mexico program and although that it's called the migrant protection protocol in the united states which is a misnomer because it's anything but protection for migrants and what it means is that people who seek. in the united states are then sent back to mexico to await their asylum hearings and with the backlog that exists now that can take up to
a year or so we've got a lot of people coming back to those border cities in mexico and creating a huge strain on infrastructure and the ability to attend to their basic needs on the mexican side of the border and they didn't give figures and there is an expansion of that program it will now include more border cities it's benty one an air power primarily and now will presumably include more border cities on that it also includes in this is something that doesn't talk about commitment by the u.s. and mexican governments to the regional development plan that mexico developed with the united nations for honduras el salvador and guatemala again there's no specific figures in terms of what the investment will be in that plan or even the real details of what u.s. involvement would be in it but that's the other feature of it it's true that these programs existed before but they didn't have the same measure of commitment and in
some ways it's irresponsible for the press to say that this agreement accomplished nothing because what's happening and we can see it now as we look at the tweets that are coming from donald trump is that it provokes an anti immigrant and very aggressive and abusive president in to taking perhaps harsher measures if that were to happen we could see even more massive violation of human rights and moving forward laura you noted the national association of manufacturers as one of the most notable establishment voices raising alarm when the terror threat was on the table we've discussed auto makers face fear in the terrified you know for these stakeholders does. this agreement mean a simple return of the status. there are going to be lingering uncertainty with mr trump calling tariffs indefinitely suspended. there is uncertainty because
they have been suspended mostly because not of the green men but because the republican party and major industrialists as you mentioned and trade associations immediately told him that would be a very bad idea in terms of their interests but there it creates uncertainty uncertainty is a real problem for the mexican economy is so dependent as it is on the u.s. economy and it's a problem for importers and producers in the united states as well the relationship was already in a crisis since trump came to office because of his pattern of mexico bashing and using economic instruments to bully countries into doing things that are unrelated you know yes it's shaken the relationship you know when you start a fire like this with your neighborhood it doesn't end well it's clearly not going to end soon recall some of the center for international policy thank you so much for your insight. thank you.
they are the venti salad are monday has been m.i.a. since it sold at auction for a record of 450000000 dollars and 2017 but now the famed payday appears to have been located by art net dot com where you ask it is being kept on the saudi crown prince mohammed bin solomon superyacht the serene according to 2 principals involved in the transaction who refuse to be identified in the art net piece it was reported by the new york times after the auction that another saudi prince bought the painting on behalf of m.d.s. at the 27000 auction christie's were not confirm the report at the time but that it in a sea of the painting has been in question ever since the spawning of a book called the. the n.r.o. where the author ben lewis attributes the painting to venture a studio rather than a painter himself this is such a great story to me as having taken art history in high school the province of this
painting it's really remarkable it goes through all these twists and turns it was at one point sold by the illegitimate son of the duke and of buckingham as in buckingham palace the person who sold the palace to the king at one point they forgot who had done it it was sold saw the reason 158440 pounds and before eventually setting that record so twisted and tangled stories in our history and that amazing painting is a floating on a yacht all this time it's hold up boat doesn't sink that that right down you can catch on youtube dot com side r.t. time.
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