tv Boom Bust RT December 10, 2019 11:30pm-12:01am EST
this is boom bust broadcasting around the world and covering all aspects of our global economy in the 21st century i'm been swung number a job or in washington here's what we have straight ahead. this is more than a triumph for organized labor it's a triumph for workers everywhere across america but the real question is the new you is will the new u.s. m.c.a. actually be a better deal than nafta we're going to break it down in a way that you won't see anywhere else plus as trade tensions and political turmoil have taken their toll on economic growth worries continue to pile up the report which of the british american business association lends its a hand to break down britain's economic woes and what lies in store for the euro
and things across the e.u. are laying off employees as other banks are moving to try to keep up with the proliferation of online banking so what is the future look like in the banking sector r t correspondent i'll just read and public citizen bartlett naylor will break it down for us so much to get to on this very busy day so let's get started. and we begin with the u.s. in ca because as we told you monday the new north american trade deal between the u.s. and mexico and canada has been agreed to by democrats in congress and that was the final hurdle for the trump administration to get passed in order to have this agreement ratified house speaker nancy pelosi announced the agreement tuesday morning calling it a victory for american workers listen. this is a day we've all been working to and working for on the path to yes we were in range for a while but until we could cross a certain threshold of enforcement for our workers rights floor and environment and . point of the issue as you know they learned the areas that we had played out
there. well so here's the problem though everybody on capitol hill is patting themselves on the back for this historic incredible deeply meaningful trade deal that will impact workers in such a positive way but can we just tell the truth here because politics aside the u.s. embassy a isn't a great trade deal it's an fact only a little bit better than nafta so coming up let's go back over here to the wall where we can break down exactly what is different about this particular deal compared to the original nafta because remember president campaign that nafta was the worst trade deal in history and the u.s. in ca is the best there are 2 major components to the u.s. in ca that supposedly make it a better deal than nafta the 1st is labor standards so here is how democratic congressman richard meale the chairman of the house ways and means committee put it . but this is more than a triumph for organized labor it's a triumph for workers everywhere across america in terms of the working group
members i want to say that they strengthen the labor standards. strength of the environmental chapters the enhance the verification mechanisms for environmental trade. all right so what is significant about the labor part of the deal wall mung other things this agreement requires that 75 percent of automobile components be manufactured in the united states canada and mexico in order to avoid tariffs that number though was under nafta it was only 62.5 percent so it's really not much of a change the u.s. in ca also requires that 40 to 45 percent of automobile parts be made by workers who earn at least $16.00 an hour by 2023 and by the way mexico has agreed to allow arbitration over labor disputes which is certainly a positive for workers in mexico but it doesn't really affect american workers again congressman neil. young fletching leadership of the speaker we also shoot your important changes in us from ca to preserve congress's ability to change your
last law to address the crisis we are facing with respect to high prescription drug prices ok so what are they talking about here well the other big issue with the u.s. in ca was that it rigidly as it was written would have extended patents on biologic drugs to a 12 year patent protected across north america that would have been bad for mexico and canada which don't have such long patent protections on drugs and therefore both countries have many more generic drugs than the us right but the u.s. in ca doesn't do anything to help us drug prices because it only preserves congress's ability to change the 12 year patent period in the u.s. and there is currently no effort to actually change that in place a question of course and that this. is much better than nasha. in terms of here it is infinitely better than what was initially a pope proposed by t. and then it's changed. yeah but ultimately that's not true nancy pelosi and house
democrats have not given us a significantly better deal than nafta and president trump hasn't either and here's the most important reason why because nafta decimated the manufacturing industry in the united states according to commerce secretary wilbur ross the us in ca get this is expected to create 176000 new jobs with a possible possible 589000 new jobs created over the next 5 years compare that with nafta which according to the bureau of labor and statistics cost $4500000.00 u.s. manufacturing jobs the reality here the u.s. in ca is not bringing those jobs back it's not going to bring manufacturing back to the united states it's not going to mean more money for american workers and brant it's not going to mean lower prescription drug prices for american consumers period and meanwhile with all these trade disputes between the u.s. and north america and the u.s. and the e.u. and the u.s.
and china for that matter a huge impact has been made on the world trade organization the w t o has now lost its ability to intervene in trade wars that is because for 2 years the trump administration has blocked appointments to the w t o as appellate body which acts as the supreme court for international trade to have 3 members have accepted and now the deputy o. is unable to issue rulings. and that also includes by the way negotiations with china over soybean production and purchases it's a major part of the u.s. trying to trade negotiation and it's been over how many soybeans china is going to purchase from u.s. farmers and while that this feud has been underway though brazil has been racing ahead of the u.s. as the world's largest soybean producer the latin american country will for the 1st time ever in early 2020 get this over take the united states as the largest soybean producer president trump has threatened to impose tariffs on steel and aluminum from brazil and argentina in response to. what he called weakness in their
currencies which he says is quote not good for our farmers argentina is the 3rd biggest soybean producer in the world. and the united states labor department reported tuesday that worker productivity in the 3rd quarter of this year fell by the largest amount since 2015 now the government says non-farm productivity the metric of hourly output poor worker decreased at 8.2 percent year over year rate in the last quarter now from 2007 to 2018 productivity increased by an average annual rate of 1.3 percent which is much below the average annual rate of 2 point one percent which we saw from $1047.00 all the way to 2018 now the labor department added that american g.d.p. grew in the 3rd quarter at a 2 point one percent rate revised up from the initial estimates of 1.9 percent i. i. and meanwhile looking at economic growth the u.k.'s office of national statistics is reporting great britain's economy has grown at its
weakest pace since 2009 the u.k. economy showed no growth in the month of october after declining in august and september and the services sector which generally accounts for the majority of the country's economy only grew by point 2 percent in october while construction output fell by 2.3 percent gross domestic product in the u.k. was up just a point 7 percent year over year for the month which was the slowest annual rate growth in 7 years now there are plenty of factors at play here so let's get right to an expert hillary or switch board member of the british american business association joins us in studio always great to see you hilary and i mean when you hear these numbers about what's happening in the u.k. economy i mean what is affecting this growth that is the slowest since 2009 well couple of fact that brehm one you mentioned the construction down actually it was one of the wettest. as it's called autumn in england. that's.
exceptionally what it was one of the worst is one that really did impede construction i think what you've also seen is a lot of stockpiling leading up to all the political uncertainties of course impending election coming up so i think there's been a lot of stock piling that has also slowed things down i will say though that the pound has hit an 8 month high the guardian i mean it was reported yesterday i think it came out was $131.00 on the b.b.c. has said that employment is at the highest rate it's been in over a year so i think you seen some kind of conflict in fact is there i think what it is is that the u.k. next to the u.s. is one of the largest global trading nations and this is also related to a lot of what's happening in the globe which is the global slowdown so if there was a resolution to the u.s. try to trade war and all of the trade wars that are going we might see a bump in the economy in the u.k. i think you will in lots of places also yes because the worst thing for business always is uncertainty as soon as the certainty businesses plan around it they invest more they produce more and they can plan yes let's talk about this report that came out monday that germany's industrial sector dropped more than 5 percent
in october it seems like it's been trending this way it's the worst rate since 2009 and again we're watching this trend take place we're seeing the worst economic growth since the last global recession what does this tell us about the european economy maybe more specifically the like we've talked about this before the german economy they have some real challenges when it comes to the industrial sector they absolutely do and you're right it was bad enough september as it was worse in october i think what was actually the most scary of concern for the european economy is that germany is sort of the bellwether of europe so if production is down in germany is a bellwether of what's going to happen across the entire. and i think again is to point that he just mentioned i think a lot of it is due to global uncertainty i think there has been the investment that has been the production and certainly trade negotiations and particular of course everything that's happening with the e.u. in the u.k. that has impeded german production particularly because the german so wanted 7 cars goes into the u.k. and germany to do. that and you did mention that they're kind of
a bellwether is part of the reason that there are a bill whether because germany doesn't prop up its economy the way that some of the other absolutely yes. no sticking in the e.u. in another strong economy for that you in france we've seen 800000 protesters have taken to the streets in the changes occur country's current retirement systems demonstrators are made up of union activists there were airport workers join them on tuesday as well the teachers. as you can imagine this record as you can imagine the scars a lot of what is going on here in france what do we need to do about this in a couple of things actually i mean the worst thing is i mean obviously everyone is being towed schools are being closed the restaurants are being closed when the restaurants close in france that's when you know it's going to talk about the rating of the where the restaurants close it's really bad what this all goes back to 1905 when failed to secure the whole painting for the pension plan so you think about the pension in france pensions in france thought were instituted in 19561956 the life expectancy expectancy was 50 to 60 years old it's 82 years old now the
failure of european nations and we've had this across the world i mean we've had riots in russia and in the us has been talk about the pension issues that we have here on the funded is that what should have happened is when pensions were instituted they should have been indexed to life expectancy then we would have no problem i mean you wouldn't have riots and people said ok we'll baby's life well that will be you know working and do your baby will be working until they're 70 or 80 nobody writing about what their babies had to do they're writing about themselves now or in them in the near future so the underpinning of the problems in france was the failure to index life expectancy to pensions and people living the pensions you were supposed to have a pension for a couple of years after you retired and states can revive that we simply called provide across the world for 2030 years on pensions and we could do a whole show about both sides of that argument for sure but right now we're out of time which. british american business association thank you so much for joining us
today. well japan is getting pressure from the trump administration to choose a u.s. defense contractor to replace its f 2 fighter jets tokyo has been considering british company which is currently developing a 6 generation tempest stealth fighter the current f. two's will be retired around 2035 which means the plans for their replacements begin next year tens of billions of dollars will be spent on this project which is why the trump administration is now attempting to apply pressure to japan to push them to send that contract to a u.s. company in july the us said it would request a 4 fold increase to $8000000000.00 from the allies renegotiated the special measures agreement that determines how much they pay toward maintaining their reliance president trump has made japan nervous by threatening to withdraw troops unless tokyo pays more but he has also simultaneously touted japanese purchases of u.s. weapons in his meetings with the prime minister of japan the us has proposed jointly developing a fighter get this based on the f. $35.00 an f.
$22.00 but they would also limit the japanese technology resulting in a black box fighter with no access to the source code required for independent upgrades and that's something that many japanese lawmakers say is essential for japan sovereignty. and time now for a quick break but hang here because when we return banks across the e.u. are laying off employees as other banks are merging to keep up with the proliferation of online banking what is the future look like for the banking sector r t correspondent atocha sweet and public citizen bartlett nailers will break it down for us after the break and as we go to break here are your numbers at the close.
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always in the water. pleasure to. welcome back morgan stanley is planning to cut $1500.00 jobs or roughly 2 percent of their workforce students certainly in the global economy there's a trend here the layoffs will focus on employees in technology and operational positions according to sources familiar with the situation now the bank which has roughly $60000.00 total employees will also take charge of between $150000000.20 due to the layoffs in october morgan stanley and now its earnings which beat expectations rising it by 2.3 percent to $2.00 it or $2170000000.00 for the 3rd quarter of this year. and on that note the global banking industry is seeing
a bit of a shake up from mergers to restructuring some banks say they're even shifting their focus to asia r.t. correspondent atocha sweet has more from los angeles the day the industry is evolving and as more people bank online more visible branches are closing but it's not the only change we're seeing some banks like sun trust and b.b. and t. are merging and causing even more ships in the markets she copes in changes are bracing the financial markets sun trust has completed its bank merger with b.b. and t. creating truest that he brings combined have created the 6th largest bank reportedly serving as some 10000000 households when the merger was announced back in february officials were expecting a cost reduction of 1600000000 annually overlaps led to closures and layoffs the charlotte based bank value the all stock deal at 66000000000 operating and 65 countries h.s.b.c. is seen obstacles but the protests in hong kong is why. as breck's it impacting
europe's economy so now they're hoping new management will mend the issues plaguing has pc's to home markets new hires have been announced this week as the company's 3 most senior executives are set to either retire or move into new roles h.s.b.c. did say it's aiming to grow in asia as it stands right now h.s.b.c. makes more than 3 quarters of its profits in asia and as the economy in europe weakens insiders say european banks may be cutting up 260000 jobs the president of europe's central bank says she's concerned over europe's gross domestic product growing only point 2 percent in the 3rd quarter of 21000 and this weakness has been mainly due to global factors the world economy outlook remains sluggish on uncertain and this in turn lowers demand for euro area goods and services and it also affects business sentiment and investment employment at
europe's 10 largest banks has fallen a 5th since 2008 and in the us is 10 largest banks employment has dropped roughly 7 percent deutsche bank ranks number one with 18000 job cuts planned and this will make way to dispose of $288000000000.00 euros of unwanted assets so the reasons for the job cuts in the financial sector are 3 fold 1st european banks are cutting jobs in general to save money and 2nd it's also a reaction to the decline in revenues and 3rd digitals ation is also one actually going the way to less employees in los angeles and harshest suites starting. to go deeper on this issue of what's happening with the banking industry and bring in hardwood naylor he is a financial policy advocate a public citizen thanks for being here thank you let's talk about following up with what natasha saying there about the proliferation really of online banking services european banks they're cutting jobs they're closing branches to save money how widespread is that and how isn't playing out here in the u.s. oh. it is widespread and it's i think an imperative that as online banking and the
internet becomes more pretty pervasive we are going to bank more online peak in terms of branches and shared branches in the united states was about $80000.00 that's just before the crash of 2008 and it is slowly declined 2 or 3 percent each year and so it's in the low $70000.00 branches now. at public citizen we are concerned not simply is the average person of the rich person but how low income people bank they are not online as much as others and so we're concerned that the decline of branches hits hardest on the poor and i think that's an interesting point when we talk about online banking too because it's not that everybody is moving to online banking like the consumer yes we like the convenience of it but the fact is if you go into a branch today they're going to tell you oh you know you could do this online or oh you know you can do this at the a.t.m. and essentially that caused a problem as well right that's right you are given a benefit if you go online if you go paperless for example you you have to pay
fewer fees there are some retail firms outside of banking that want you to use a credit card or something and it won't even take cash again we understand the convenience when to stand less paper is good but again lower income people are being disenfranchised by that trend so as it is only increasing the issue of kind of banking the unbanked there's a pretty large population and you wouldn't think that in the united states right maybe in other countries but in the united states there would be so many people who are unbanked fairly significant part of the population is this only making that worse it's only making it worse that's right and now we were talking about in an attack just piece there the merger between sun trust and b.b. and t. and it's creating truest now these are probably of course regional banks and as most banks start in the region and then you have now we have wells fargo blows up bank of america and even bank of the west you see them sometimes but what is the reason behind this merger and are these big mergers of regional banks is that hurting the does that concern if i know. policy advocate certainly does we did not
officially did not certainly support this merger we didn't officially oppose it. since the 1980 s. when interstate banking became legal you have seen a fairly consistent consolidation of the industry from 16000 banks down to 6000 banks that by itself is bad for consumer choice the problem in the southeast where b.b. and t. and sun trust operated is that while that merger doesn't actually create a lack of choice you've got wells fargo and bank of america dominating with almost 50 percent market share so you already have the problem of lack of consumer choice to us doesn't make it that much worse but it's certainly not a step in the right direction why are they doing it they call it center g. it means they can have one person do the job that 2 people used to do it and honestly i worked in my younger years at wells fargo while they were going through the work over a merger and that was exactly it trying to figure out where they could pair everything down in markets that i mean they obviously want to grow beyond the markets but the fact was they had places like atlanta where they had both wells
fargo and cobia and they had to figure out how to pare all that down which meant cut jobs and make it easier on us right right i mean well when and when you have a situation with wells fargo and fewer options in terms of consumer choice it also makes it easier to get away when you have issues like the banking scandals they've had opening up checking accounts in people's names without their permission when there are fewer choices to go to as a consumer you just kind of have to take it in some cases and that's that's right in the scandals that we've seeing happen almost weekly bi weekly at wells fargo because there isn't that much choice the other big banks have similar problems and if you ever try to change your checking account it's a pain in the behind it's pretty difficult to say you know and started shopping at giant i'm going to shop at safeway it's not so simple with banking let me ask you about h.s.b.c. mentioned that as well they go in there with a significant number of changes right now but especially at the top right now we've seen a number of high ranking executives either set to retire or being shifted and moved to other positions. within the bank what's happening there well i like to think of
it as too big to manage a problem if i'm wrong or can do i have a lot as an individual influence over the direction of that canoe with a company of 250000 people it's pretty hard for one guy or 2 guys or 3 guys at the top to actually make change to respond to a problem in lack of. derivatives trading or or a lack mortgage interest rates are rising or falling and so one can scramble the deck chairs as quickly as possible as frequently as possible it's not clear what is going to change with an empire and h.s.b.c. certainly is. a 3 trillion dollar bank of $200000.00 employees it's very difficult so i think what you're saying is is wandering around in the dark right now i don't know i doubt they know what's going to work part of the name of the financial policy advocate a public citizen thanks so much for your time thank you. and
finally today here's an unlikely partnership no one could have seen coming high end fashion house louis of aaton and free to play video game league of legends have released a cross platform line of designer clothing now the collection branded l v x lol was designed by the fashion labels artistic director for women's collections nicholas guess here the line features t. shirts sweat suits accessories and even a leather jacket inspired by one of the world's most popular video games but here's the kicker the luxury brand is charging exorbitant amounts for their products t. shirt featuring one of the champions goes for $670.00 a pair of leggings well that's going to set you back $1140.00 said maybe you're looking for a mini backpack to put all your many things well that's going to run $2310.00 and that biker jacket that we were talking about well. had a clock in it $5600.00 now this isn't the 1st time the 2 have teamed up to fashion
house work with lead developer riot games for louie baton inspired cosmetic items for the games but those only fetched $10.00 apiece when you were purchased and i bet i don't know what that's like a $100.00 times multiple times and i think i don't know you have kids do they play video games and do they don't play league of legends but they do play a lot of it and would you buy them a $5600.00 leather jacket i wouldn't but i suspect there are some people in this building who might like christie iowa i totally see her go into getting this house i think you'll win here who can afford i think it there louis baton on anything and the crowd i want to i don't want to blanket statement that but i think i might be interested only i think she has a little bit what about you i mean do you think it's a little bit out of touch i think a little bit out of to know your audience and i might buy something a little more high end but that being said i'm going to spend you know $100.00 on a t. shirt there's no doubt some good and bad set for this time you can catch boom bust on directv channel 3 to one dish network show to 80 or on pluto t.v. the free t.v.
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down in the pool sheds light on how top american officials have been routinely distorting facts and figures on the war in afghanistan and attempts to convince the public that drawn out war is winnable. us president donald trump says he looks forward to more dialogue with russia after meeting foreign minister sergey lavrov at the white house nuclear arms reduction was a key focus on those told. mason with u.s. officials triggered a wave of democrats accusations of trumped russian links in the foreign minister brushed off but i don't think that. he might as well throw doping accusations against russian diplomats involving the case with the athletes and called for our criminal liability.