tv Boom Bust RT December 7, 2019 1:30am-2:00am EST
how does time together. and this is the bus broadcasting around the globe and covering the world of business and finance and the impact on us all i've been one and i'm bridgeboro in washington here's what we have on the show today we're taking a look at the auto markets as we move more towards the electric vehicle economy who is winning big and who is laying off tens of thousands of workers lauren fix the car coach will join us to break it down plus it's been a bad week for 2 of the biggest ride sharing companies there's reports of sexual assaults are hitting both and a live heart we have team coverage of the accusations and how the companies are responding and we're also taking
a look at the markets around the world who's up who's down this week and why the u.s. china trade talks continue to impact so many economies it's a packed show so let's get started. and we begin today with an actual concrete step in the u.s. china trade talks because every day both sides say that they are close but then nothing really happens friday something happened as china has agreed to waive tariffs on some u.s. soybeans and pork as what they call a goodwill gesture those tariff waivers were reportedly based on applications by individual firms for u.s. soybeans and pork imports according to china's finance ministry keep in mind china had impose tariffs in response to the tariffs launched by washington over allegations of china's stealing and forcing the transfer of american intellectual property now speaking of tariffs december 15th that is the deadline for phase one of the u.s. china trade talks to advance otherwise a new round of you have to u.s. tariffs will kick in those tariffs will cover about $156000000000.00 in. on these
imports china's move to issue these waivers on key agricultural products may be a signal to washington its commitment to get a deal done soon and certainly before the deadline. germany's industrial sector is struggling facing the steepest decline since 2009 put in the euro zone's largest economy fell by 5.3 percent year over year for the month of october according to the federal statistics office analysts expect issues with the german industrial sector will affect the overall growth of the eurozone economy in the 4th quarter of this year german manufacturing in october also fell by 1.7 percent with production of capital goods buildings vehicles machinery and equipment dropping by 4.4 percent the auto industry alone which employs more than 80800000 people in the country and actually affects nearly 2000000 people's jobs has watched as vehicle production fell 14.4 percent year over year.
and speaking of the auto sector it's got a real shocker on our hands here tesla announced on friday that its chinese built model 3 cars will receive government subsidies tesla's model 3 cars being built in its 2000000000 dollars factory in shanghai were on a list recommended for subsidies for new energy vehicles which included plug in hybrids battery only electrical vehicles and those powered by hydrogen fuel cells 2 variants of the tesla model 3 vehicles are on the list for the generous subsidy program so joining us now to discuss this is the car coach to lauren fix all the way from lancaster new york lauren thank you for being with us today. thank you for having me tesla is aiming to make more than 1000 vehicles a week by the end of 2019 and ultimately push that number up to 48100 a week and a lot of this is about gaining access to the chinese market but it's not incredible . but it was incredible how to look at to use to exist based upon government
subsidies so what you make of this government subsidy program. well the government subsidies program put in place by china was to entice people to switch over to alternative types of propulsion for their vehicles and what's happened unfortunately is when they did 1st put it out people took advantage of it but nowadays cut it cut it back and now only down to $3500.00 people of course are not buying it as rapidly as they were now with tesla and their model 3 they're going to get $3500.00 of credit to a new consumer on a $50000.00 car now we don't have exact numbers yet of what the tussle will cost of course how you option it will also make a difference and there are 2 different variants this would be very helpful to get some cash flow in pay for the cost of that plant that's in shanghai it's going to be very expensive and it's going to take quite a bit of time for them to even pull a profit out of china but in the number one car market anytime you can sell
a vehicle that's great remember that a lot of chinese consumers will get the same credit toward other vehicles so he's not the only vehicle out there selling with a $3500.00 credit also keep in mind is that china's talking about cutting that credit down to 0 so we just don't know when that's going to happen exactly seems like electric vehicles i mean everyone's moving in this direction we reported thursday g.m. and l.g. they're spending 2300000000 to build an electric battery plant in lordstown ohio it's really good news for certainly the people in ohio where lordstown g.m. once had a plant that was shuttered there a lot of this is the pave the way for g.m. plan to introduce what about 20 electric models globally by 2023 is that right. that's that's what they're saying by 2023 to have 20 electric models the biggest problem for general motors at least here in the u.s. is that consumers are not buying them we're still less than 2 percent of people purchasing electric vehicles they tend to do well in other countries based on infrastructure and we still had a problem over the thanksgiving holiday where people are waiting 2 and a half hours in line. charging station and most people are not going to be patient
enough for that until there's more infrastructure quicker charging it's going to be hard for the average consumer to take on that but what's good about this whole thing with general motors and l.g. is the deal they made with the u.a.w. is that they would try to reopen the lordstown plant and they're putting the company in there used to be called work course what they're doing is we're going to build vehicles that are electric powered at that plant the problems we are not guaranteed even if there's 20 of them how many need to be built how many jobs will be given back and now moving on there are a number of automakers kind of hitting harder times right now dialer said friday that it will cut at least 10000 jobs worldwide over the next 3 years now this is a move to cut costs as they move towards electrical vehicles are corrected sticking with that electric vehicle. right many manufacturers of time up to 10 percent cutting both white collar and blue collar workers that's pretty serious quantity of people and why are they doing that is because i'm not making money on electric
vehicles there's no one today who is making money on an electric field with autonomy coming in or at least all those great new technology the biggest concern that they're having is how do we make that up before doing the laws on the vehicle we need to make a profit at the end of the year across the board so they're cutting back on employees because they can't come cut back on production costs and that's good big concern because if people don't have jobs they're not going to buy new cars lauren i actually want to follow up on this electric vehicle kind of segment that we've been there and you know you kind of make these points over and over again that people really are buying these cars they're not really a money maker for these brands we're seeing people just cut jobs due to electric vehicle manufacturers when are the manufacturers going to give up on this is bad i guess if that's what you think it is. well i think the answer is going to be a mixture for consumers it depends where you live what you do what your lifestyle is if you live in a city and you have infrastructure available it makes sense if you're living in manhattan plugging in is a problem because there's no place to plug in especially. older buildings back from
the turn of the century i actually live in a building that's from 1929 there's no place to charge there's no parking garage nearby that has charging so that for that type of situation is a challenge but if you look at a mixture of things especially some of the new technologies that are coming out with hydrogen they're looking at using algae in other forms of propulsion using compressed natural gas those may be a mixture of some of the solutions that will allow consumers to have options keep in mind that gasoline powered cars are not going away probably not even in our lifetime it's going to be a mixture of options for consumers electric vehicles the biggest challenge i have right now is the earth minerals are using to build those batteries and china owns all of those mines and that is a huge factor until battery technology changes there's not going to be a profit margin yeah we're short on time here before we go i want to ask you real quick about nissan and what's going on there because you're talking about all these different cuts that are going on nissan is now foreseen it's u.s. factory and office employees to take 2 days off without pay the u.s.
sells this year down 7.8 percent how bad are things for nissan right now and how do they pull out of this. they are really bad and part of it is this carlos go india where they accused him of stealing money we still don't know where that's going to unfold of course he's saying he didn't steal money they say he did but the bottom line is sales are down about 80 percent and as far as the profit margins are down 80 percent that's pretty serious and if you don't have the cash flow then you tell people you're going to have 2 days extra off but you're not going to get paid and that's not good because it causes good employees to look for jobs elsewhere and that's not good for nissan they need to really start turning some things around lauren fix the car coach thank you so much for navigating us through these stories any time thank you oh it is official saudi aramco is the biggest i.p.o. in history saudi arabia state oil giant has priced its i.p.o. at $32.00 rials or 8.48 dollars and 53 cents per share raising $25600000000.00 and beating the previous record holder ali baba's 2014 listing this
will give the company a market valuation of $1.00 trillion dollars when the shares start trading on december 11th the listing is oversubscribed soliciting biz of nearly $4.00 times with the saudi government claim that it wanted meanwhile the i.p.o. pricing came as the saudis were locked in discussions with opec and members of the so-called opec plus like russia to restrict oil production the o.p.'s opec plus group appears very close to an agreement here. this week was a bit of a mixed bag for the markets as global trade and certainly hit a fever pitch with china and the united states not be able to get on the same page in finalizing phase one of the landmark trade deal that has been news all over the world let's start with the mo x. exchange in russia which is down slightly on the week but there is some good news that the world bank reported the country's economic growth will be higher than expected and will continue to pick up over the next few years now in shanghai the
composite is up just over one percent and it was a lot of a bit of an up and down this week trade worries really rocked the market falling on tuesday after president trump said a trade deal could be delayed until after the next u.s. election but picking up on positive trade news later in the week the market was also boosted by news of a strong factory activity in china than initially was expected with the country's p.m.i. hitting 50.2 in november in japan the nikkei up as well as seeing similar results up half a percent and japanese stocks were able to push into the positive following the rise of u.s. equities amid the positive swing in trade talks plus japan was able to ratify a unilateral trade deal with the u.s. of their own and in hong kong the hang saying it is also up slightly on the week facing similar turmoil due to trade negotiations it's a definitely a theme here between the united states and china taking a dive after it looked like we would have to wait till next year for the deal but picking up steam later in the week as china announced they would waive tariffs on
u.s. soil beans in a goodwill effort moving to india the sensex is down on the week falling 334 points close on friday following all time highs just 2 weeks ago the losses fall mostly in the banking and auto sectors and there's oeuvre bank of india maintained interest rates at their current levels while predicting slowed economic growth now moving south to australia more than 2 percent. on the week while trade and certainly played into this conversation the reserve bank of australia actually chose to maintain cash rates at a record low point 75 percent which was expected although the central bank has cut rates 3 times since june and then we're going to south africa the all shares index is down on the week south african rand face losses on thursday following news of continued economic weakness in the country and data from the nation's central bank showed their current account deficit has narrowed slightly but not by as much as they had originally expected there was however
a positive news for south africa mining companies in the platinum and gold fields now they were able to make positive growth so we're going to toss it over to ben now for european union and the americas brant thanks for that well heading over to europe to start with the cac in the dax they are both down for the week as they were hit pretty aggressively on monday after consolidating for the better part of november this initially set up the market for some more downside but may still relatively make a strong snap back keeping sellers at least for now a day in the u.k. the footsie well it had a absolutely terrible week there were a few highlights toward the end of the week as the pound pushed up having hit the highest level against the euro since may of 2017 new car sales did fall by 1.3 percent in november compounding a sharp drop the month before an aston martin shares they are up as a canadian billionaire is eyeing a stake in that company over in brazil it was a very very different story here as the able vessel had a very good even record breaking week this on paolo stock market it actually rose
1.2 percent this wednesday december 4th and for the very 1st time closed above the 100110000 that's the word point benchmark breaking a new record wall street banks have broadly bullish bets for brazilian stocks with j.p. morgan and morgan stanley seen an acceleration in economic growth and strong rotation to equities from fixed income boosting the local markets in north america the b.m.v. was sharply down this week falling on tuesday and wednesday the s. and p. $500.00 the nasdaq. new york stock exchange all finished the week basically flat in some cases just slightly up it's an improvement from where they were at the beginning of the week remember on tuesday president statement that phase one of the trade deal may not get done till after the 2020 election that caused a huge drop but by wednesday things were moving north again when the president said that u.s. china trade talks were going very well keep in mind december 15th that is the date when new tariffs would hit china if one of the deal is not done both the u.s. and chinese negotiators are now saying that they are optimistic to get
a phase one agreement before the deadline and finally we go north to canada the t.s.a. is down for the week as well the week has seen shares of major banks including the royal bank of canada falling sliding investment banking fees pressure on margins and an increasingly weak credit environment led to disappointing results and that is this week's market walk. in time now for a quick break but hang here because when we return it's a bit of bad week for 2 of the biggest ride sharing companies as reports of sexual assault are hitting both hoover and live art we have team coverage of the accusations and how the companies are responding as we go to break here the numbers at the close.
all. 5 the great in the special can somebody we can benefit so is one of the men of the. book just put us in the gulf where. you thought the whole doping can russia think was over for get it. through a complete but i sure would have lost the some of the muscles of the of. russian outlets eligibility for the international competition says that state this includes events like the to kill him fix and the fifa world cup in qatar if i am in the early as last. year when you can one of those just as it was 4 years ago in moscow anti-doping plavix at the center of the scandal so who tampered with the duping samples database and one does greegor you want you just have to do with it and you know she's stupid because we've got to pull zameen is not. mean that he's the push
on that we should say you will ship by to expose me in the ocean touch a little bit with the pollution you're doing is noble. and welcome back treasury secretary steven nugent said. as he is following with facebook's digital currency libra but adds that the project must comply with anti money laundering rules manager went on to say quote i'm fina facebook wants to create a digital currency but they need to be fully compliant with financial secrecy and money laundering rules in no way can this be used for terrorist financing really and as that same rule applied to the u.s. dollar of course it doesn't even know currency can be foolproof against being used in criminal activity it's literally ridiculous statement but that aside one of the
biggest questions surrounding libor is what is it is that it is your digital currency because mark zuckerberg when sitting in front of congress has consistently been inconsistent about how he defines libra he most recently referred to it as a payment processor really not a currency not a token management says that he has met with facebook a dozen times to talk over regulatory concerns meanwhile the house financial services committee is unsure about whether facebook will be allowed to proceed because they claim that a libra the wallet that libra would be stored in would actually act as a bank. and now ben actually i want to talk about the kind of wild aspect that we were just talking about there because trading and investing platform has actually confirmed that they are working on a debit card to be released in 2020 and reports indicate that it the card will be used to support crypto as they do all kinds of trading on there but what do we know about that so far well ok so you're right the reports are that it will support
crypto but when you actually ask as reporters have about it they're not saying anything and they don't want to give any details about what services will be covered by the debit card and it raises serious questions about crypto because how do you remain anonymous if you have a crypto account but you now attach a debit or credit card to it that has banking information right so you would essentially be out in yourself so it truly couldn't be cryptic but there are in fact actual crypto credit cards that are popular throughout the fin tech community how does this meet the standards of like yourself and christy i truly crypto officiant is right so obviously when we talk about crypto right in order to truly be crypto you have to be anonymous or else you're not crypto you're just a digital currency so there are some crypto credit cards out there they're not actual credit cards and debit cards as we would know that what they what they actually are are prepaid cards so if you wanted to walgreen's you got a prepaid that's what it consists of there are a couple cards that have said that they're connected to visa but this is backed
away from that because of know your customer laws so yet there's no true critical credit card absolutely bottom line. has seen a drop in its stock after releasing their safety report from last year the report reveals thousands of documented sexual assault cases are key correspondent natasha sweet has more from los angeles. says it received more than 3000 reports of sexual assault across the us and 28 but they're not the only ride sharing company on fire lift is in the middle of a lawsuit with 19 women claiming sexual assaults allegations you see them everywhere and now ride sharing has become even more common than taking a taxi at last $1100000000.00 last quarter the company says rides are still profitable but after releasing thursday's safety report the question many are wondering will the sexual assault cases impact future friday alone solid drop according to her safety report there were 3045 reported sexual assaults in the u.s. 235 of those were non consensual sexual penetration $280.00 reports of attempted
non-conceptual sexual penetration and the remaining assault reports included and want to kiss scene or touching of body parts of these reports include both writers and drivers in a tweet or c.e.o. says quote i suspect many people will be surprised at how rare these incidents are others will understandably think they're still too common some people will appreciate how much we've done on the side of safety others will say we have more work to do they will all be right the us isn't the only place you seem controversy of the 70 countries the right sharing company operates in london is banned for a 2nd time and is maris's transport for london has uncovered a number of serious breaches some of those include at least 14000 occasions where somebody may have been using the. driver driving the missing the person they thought it was so these are not surprised drivers manipulates. to drive people
around london when they should be doing lift is also under fire 1000 women sued the company this week saying led to failed to follow up on complaints or enact basic safety measures to prevent a solves san diego based attorney michael berger representing the left victim says quote lifted. isn't even tell our clients who the driver is so they can get a temporary restraining order he goes on to say what lift is doing on so many levels is done with the intent of silencing the victims and protecting their brand houston woman who says her lift driver took her on an alternate route into a warehouse when the car and called police over says it puts drivers through a vigorous background check but as of right now new york city is the only city in the us where drivers have to provide fingerprints the same mandate which taxi drivers also follow in los angeles and harvest weeks r.t. .
sticking with the shared economy air b.n. b. announced new policies to crack down on the other authorized parties and guests it's an effort to crack down on its platform the company is under pressure to gain the trust of travelers neighbors and lawmakers this is always a prepares for its planned initial public offering next year so what is the author joins us now to break this all down what exactly is this new band how does that work how is it going to be policed. well one of the new bands has it is going to prohibit these open invitation parties those are the ones that are usually promoted on social media but that doesn't mean that all parties are events are prohibited now air b.n. b. announced quote that this policy does not impact parties that were authorized by hosts and convened respectfully by guests in stead our goal with this new policy is to address the small number of guests who act irresponsibly and those rare hosts whose homes become persistent neighborhood nuisances so not everything is going to be prohibited but this does come they will allow invitations by and single family
homes so these a large parties in apartment condos and buildings will be prohibited but this all comes in the wake of that fatally fatal shooting that took place in the air b.n. b. house outside san francisco suburbs where 5 people were killed so essentially air b.n. b. is saying we want. make everyone happy we don't want nuisances we don't want danger involved in this but how this is going to be plain to address is. an unauthorized polity is exactly that it's an authorized it's people given to social media doing this how do you track this how do you stop all that's where it gets a little tricky now we're looking at some citizen surveillance here so they're going to set up a 247 hour hotline where people can call in this is the c.e.o. of. a b. and b. he said that there will be a hotline where people can basically call them any time with patrols but there are some that both sides these these bans are actually setting up some 5 new standards and these include excessive noise there is unauthorized guests unauthorized parking
an author i smoking and some major cleanliness concerns that require excessive cleaning after checkout now these standards are going to take place in early 2020 there are some of the bans we're talking about here where they're banning the parties some of the excessive gas standards but these one so one it one instance one violation will be a warning and 2 could be suspension or complete removal of the account well ok so it is in column e. right it kind of affords you a lot of new opportunities to make money that's the reason that people get behind this in the 1st place you put your place on the air b.n. b. to make a little green how safe is all this well that's a problem that we're living in a shared economy and it's not necessarily that we're living in a more dangerous world but it's more so that there are more users now so these these types of the sector really grew so quickly and rapidly that that's where they have been issues now we see this from like natasha reporter there was a lift yeah now there's there's a few air b.n. b.
instances where we saw you know the last one was unfortunately a fatal of it led to 5 people being killed the recent there's another one in salt lake city where 28 year old r.j. walker he took to twitter to tell his story where he lived in a home for 9 years apparently he came home one night his landlord had air b.n. b. to brant. out the other 3 rooms just for the night he came into a bunch of strangers he reported that called his local news where he was a victim after the local news told his story so this is where more regulation also needs to occur with air b.n. b. and who basically the people that allow us to to sell their house so rent their houses out to so i think that we'll see a lot more to come in the coming months if not early next year thanks so much for your time and that's it for this time you could catch boom bust on directv channel $3.00 to $1.00 dish network channel to 80 or 247 on the free to be 79 or as always it is up at youtube dot com slash 2 bus start to.
join me every thursday on the i like simon chill and i'll be speaking to guest of the world of politics sports business i'm showbusiness i'll see that. imax kaiser one more of my guide to financial survival this is it's a device used by professional scallywags to earn money. that's right these has flaws are simply not accountable and we're just adding more and more to the. totally destabilize the global economy you need to protect yourself and get informed guys are. thinking of getting you probably. should want to know what do you track in this time you are a liar if you don't use
a crate with him he will. freaking out when it's pretty much anywhere near. paged in the conditions on pumping i mean 67 years you know they've been locked up in a cage outside you see no protection from the weather the heat you know the cold. the rain the snow the funder nothing they have no protection. because you. know it's 2 kids. across the u.s. cruel puppy mills are supported by dog shows and pet stores most of the puppies that are coming from these large scale factory farming kind of operations are being sold at stores even joined a group businesses are involved like cargo there has been a shocking amount of what we're going to 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 rooms and industries that have nothing
to do with dogs don't buy dog. at 10 am here in moscow in the headlines 3 people are left dead after a saudi air force trainees opened fire at a u.s. naval base in florida authorities are investigating whether or not the incident was terror related. vast majority of americans want less political division in the country says a new pope well some democrats are already lining up more impeach trouble for donald trump if he does with 2020 cover him out this week. for the user form of facebook content moderator is taking the company to court lodging with his work caused him psychological damage. and people in the u.k. fail to see the funny side of a christmas card poking fun at a sufferer.