tv Boom Bust RT December 28, 2019 1:30pm-2:01pm EST
for the shanghai car plant and to repay the 3500000000 r m b debt due next year china construction bancorp agricultural bank of china shanghai put on develop a bank and i c.b.c. are the main lenders according to the filing is china's 1st holy foreign owned car plant and reflects the chinese government broader shift to opening up its car markets this shanghai factory is tesla's 1st car manufacturing site outside of the us and will be used to boost sales in the world's biggest auto market and avoid higher import tariffs imposed on u.s. made cars it aims to produce $250000.00 vehicles a year after production of the model why after his attitudes initial phase also started building service centers and charging stations across china to assure customers a standardized after sales service that china made cars will be priced at $50000.00 before subsidies and tesla says that it wants to start deliveries before chinese new year on january 25th and with more we bring in lauren fix the car coach so
lauren we come into year and these are some very ambitious goals that set for themselves and in the past houses performance didn't really give us any confidence and analysts now don't have any confidence in their execution for 2020 they predict that the shanghai factory probably won't be able to make model threes in high volumes many a 1000 cars per week until mid 2020 so what do you think. i agree with that i know initially they're going to be delivering 15 cars by the end of the years we can say that he delivered cars in 2019 that's more of a publicity stunt than anything else but in reality initially one must consider going to produce 3000 cars a week which is not possible and it's not fully automated like he had stated they still need manpower which is really good because it means jobs but i think we're not going to be talking about a 1000 units a week until you're right about the middle of the year we also have to remember we need sales and if there's no sales there then you're producing a product that just sits and that's part. what's happened here in the u.s.
where there's lots of vehicles sitting in different locations around the country you can look it up online but it's a good surety airforce base and they're just parked and that's not good you never want to build a product that's not being sold you're better off having consumers wait but this is going to be a problem when he owes $1500000000.00 back to the chinese government and you certainly don't want to take that money from the chinese government and not be able to pay it back and now also in china as regulators have now fine japanese carmaker toyota $12500000.00 for price fixing on their lexus cars in the province so what's the story there and how has lexus been able to continue to grow their sales despite the fact that the chinese autumn market which is the largest auto market in the world as a whole its strength. right when you're looking at lexus and this situation this is really not good to have a fine although ford had a fine with one of their partnerships the chinese company your number that when you're going to build in that country you have to partner with an existing chinese company in order so you don't get all the money and all the profits so increasing
the price or doing praise fixing or playing around with the chinese government regulations is never a good thing but there's still a high demand for luxury vehicles and lexus is a luxury high end vehicle and it's a sign a success for the chinese resident to be driving around in a lexus so they are going to continue to sell of course there is a big push for electric vehicles even though the subsidy has dropped off dramatically so now 2020 looks to be an increasingly tough year for all automakers japan's nissan is now slashing their non-essential spending yet again as sales contain a slum so while they aren't facing any entirely big cash crunch as yet in november it reported a loss of 70 percent in operating profits so how are they going to dig themselves out of this hole and is their turnaround plan enough to save them. why i think you put that right to digging themselves out of this hole remember when nissan was in trouble last time the 1st they did is they hired carlos ghosn who had turned around
marino and carlos go and then turned around ray know and nissan and worked partnership with mitsubishi but now they have this massive coup that we've talked about multiple times to get rid of the c.e.o. now they've lost their the brain trust essentially of the company and product needs to be upgraded it needs to have a different look at different quality you know they've updated the center and some of their other vehicles they still are getting the market share they need and so here in the u.s. they've said no non-essential travel no travel for meetings they're cutting back on a lot now currently nissan brings a lot of journalists to chicago auto show which i typically go and i'm hosted by them but they're cutting back on everything and this is not good when you need to be spending money in order to promote your brand so they really cutting back to the huge cash crunch huge nail in their profits and part of that is all that negative press from getting rid of executives and of course getting rid of carlos going we don't know if this true there's been no facts proposed to the consumer or to the
press or even to carlos ghosn so until this is resolved i think it's going to put a big hurt nissan and they're going to come up with a better way to do business and finally turning back to the states and in los angeles the mayor is now considering to forcing over and lift to use these as a city seeks to cut down on emissions and get more electric vehicles on the streets so this will be a serious blow to her and left who are already facing many many regulatory battles ride sharing was originally hailed as a huge a structure when i 1st came out but now with the tidy new regulatory environment with this kill off this nascent segment of right hailing. it might actually kill off right heeling you're correct when you think about making everybody who's a ride share drivers a lot of drivers use your own personal cars you're saying if you're in los angeles is what the mayor is saying that if you are going to be doing right sharing with a lift or any other company you're going to have to have an electric vehicle if this does come into a law this is going to put
a nail in the coffin for all this ride sharing business which is what they're trying to get consumers to use because in order for someone to buy a new car and only get a subsidy outside of los angeles of $20.00 extra per week in los angeles 30 not giving you any sort of subsidy just trying to educate you that electric cars are a great solution maybe so but if you could afford a new car you would have bought a new car and you would have had actions of buying an electric car or a hybrid or gasoline powered vehicles there's a lot of prius is out there which are really a good mix of hybrid and gasoline that's a lot of drivers use that are left but forcing someone to buy an electric vehicle then pay for that charging is going to be another nail in the coffin for ride sharing and we'll see any other $1000000000.00 you know harm blow up lauren fix the car get stank you so much for having. thank you. oil prices rose friday hitting a 3 month high as optimistic messages come out of china and the u.s. to restore confidence and global growth yes because stockpiles are declining and china's industrial foreign support and profits rising at the fastest pace in 8
months in november with more there partly bring in our to correspondent alex made by all indicators brant crude looks set to end the year with 25 percent gains u.s. crude at 35 percent and there was a boost during the month of december analysts are appointed to a few factors at play in the china u.s. trade war being a key element the market is reacting to a cooling of the 17 month long trade hostilities between the 2 nations a phase one agreement has been announced where some u.s. tariffs are to be reduced in exchange for china buying more u.s. foreign products another factor is the steep drop in u.s. crude stockpiles the american petroleum institute showed a drawdown of 7900000 barrels in inventory for the weekend to december the 20th this was much bigger than the analysts forecasts of 1800000 barrels and all this happening while gasoline inventories were up for the 7th straight week which is
a sign that people are driving and therefore spending now u.s. consumer spending has also contributed to the confidence in crude with record on light holiday shopping showing consumer confidence which the oil industry of course sees as a good sign for things to come for them as well and to top things off opec and its allies agreed to put cuts which have helped boost prices all about supply and demand however there are some signs that this boom will be short lived russia said that the opec plus alliance will discuss ending the curbs next year and some analysts believe the market is overbought arguing that the current state of oil is just simply unsustainable. most major markets were closed this week in a shortened trading session let's see how we ended up over in russia the most was up for this week as the markets crept up on government plans to spend 19.5 trillion
rubles that's 310000000000 dollars and 2026 point 5 increase compared to 2019 now over in shanghai the composite was flat as the markets cooled off from the recent rally on trade optimism liquidy was then this week due to the holidays with many major global markets closed for christmas shanghai is now gearing up for a major i.p.o. for the beijing shanghai high speed rail way set to raise 4.3 $1000000000.00 in january of 2020 now this will be the largest offering for this exchange since 2015 over in japan the nikkei advance ashore in trading week however it pear gains on friday as retail sales data for november came back worse than expected retail sales declined 2 point one percent causing the next heavyweight such as fast retailing to fall more than 2 percent in trading down in hong kong the hang seng looks to be recovering as opposed to its best level in 5 months up 1.3 percent the index is now up 9.2 percent for the year over in india the sensex was tanking this week after
setting a record session the previous week markets suddenly turned volatile in the expert of the december futures and the benchmark sank led by losses and heavyweight such as reliance industries and h d f c bank down in australia the a.s.x. is up less than one percent for the week as the stocks are flat coming into the year and health care and energy where the lead performers on very thin trading and down in south africa the all shares were up as gold is sneakily turning bullish as we approach year end leading miners and resources up in the process and now over in europe the cac the dax and the footsie are all up this week as markets have been closed on a shortened trading week and all 3 of these indexes advanced less than one percent on very small trickling volumes over in south america the evil of a great week finishing up as it continues to stay in record territory up another 1.3 percent this week making it one of the best performing emerging markets this year. and now sliding into north america the b.m.v.
in mexico is down and here in the u.s. the dow jones and i see and the s. and p. are all up as well once again all had a new record highs with the nasdaq topping $9000.00 for the 1st time ever sentiment is soaring on trade and a record holiday haul as consumers continue to spend and jumping north over to canada the t s x is up as well this week as canada's main stock index pushed into a record high in late morning trading powered by gains in key financials and industrial sectors and that is it for this week's market walk. time now for a quick break but hang here because when we return as the use of been taken to explode some nations are setting their sights on the sector we recently caught up with give the block chain founders fund to analyze what certain nations to do with the emerging technology and as we go to break here the numbers at the close.
dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door. and shouting past each other it's time for critical thinking it's time to fight for the middle for the troops the time is now we're watching closely watching the hawks. who are there see below diluting the room light up and the sound a little. my name is drawn more than i was for it is to die in prison by the exploration of love my life. take a stick grab some media attention and it's a shooting in a 16 year old's 16 birthday party found something the police are telling a lot of pressure channel close to kids. 40 is.
just down it's like i couldn't believe those. coming out of the front edge are all more than the sure don't want peace be with us that's all of the issues because i was standing right next to. me for is the son you got to keep in mind one thing dealing with 1617 years old so. this could lose monday night is clung to his fear of a train. pull through the only. one more that is close to drool he got to know the truth. the e.u. has called on the u.s. government to ears. rules financially squeezing all nationalities citizens who are
unknowingly liable to pay its taxes brussels has a complicated rules are putting an estimated 300000 u.s. residents in europe under pressure many who haven't lived in the u.s. and they were children charlotte dubinsky has and find out more about these so-called accidental americans. can you imagine living without a bank account no yet that's exactly the situation potentially hundreds of thousands of so-called accidental americans across europe had to do to get solari harder to do paying you you can and do you have been putting in more even more pressure. i mean it's hard to thing to leave hahaha do you get your salary claire is one of these accidental americans a u.s. citizen by birthright to be born thera because my father was on the train people fix months r. and i always knew i. was american what i didn't know it was
a tax consequences claire only lived in the united states for a few months and has no other connection she is for all intent purposes french yet there is a crucial few months have left a heavy burden actually until americans don't have a us social security number something their banks even here in europe are now asking for in 2010 the us inactivate fact this is the foreign account tax compliance act that requires all non-u.s. foreign financial institutions to check if customers have a u.s. connection if they do those assets and identities are to be reported back if they don't the bank faces itself a fine now once the link is made then the problems begin across europe accidental americans have started receiving letters like these informing them that they must
be. vide that normally existing social security number without their occurrence would be closed all that they bank cards simply aren't being renewed here in france alone some 40000 bank accounts face being closed over the new year elsewhere some have already had access to the banking services terminated no one person told me that they have to use a friend's bank accounts just to get by and with the clock no ticking brussels has joined the fight it's urging the u.s. to clarify the rules affecting accidental americans and to cut the cost for known seeing american citizenship a step that claire has already taken it's not available so not doing anything it's also expensive i mean i can't afford it but there are people put by me to huge huge amount of money it's stressful process i have nothing against america it's not my country yet even of 2 or no seeing citizenship the rest till demands 6 years of
back taxes to be filled leaving some with a hefty bill and there appears to be no thought despite that intervention by the e.u. with just days to go before the deadline accidental americans across europe are concerned that the start of 2020 could mark a freeze on access to banking systems and financial institutions. for boom bust in paris. the central bank of france is planning to launch a central bank digital currency and 2020 francoise valorize the governor of the french central bank announced the organization will start the pilot program soley for financial institutions before the end the 1st quarter of 2020 according to a tweet from the bank of france the country hopes to be the 1st to issue the so-called c.b.c.
. it appears that the central banks are trying to get a head start with the likes of facebook which hopes to launch their own digital currency in libra very soon during her 1st press conference as a president of the european central bank christine lagarde even said that she sees a clear demand for stable coins while a new survey from the bank of international settlements show $55.00 of $63.00 central banks are unlikely to issue a c.b.c. in the near 3 years nearly 70 percent of central banks are looking into issuing their own at some point in the future and with more on these c.d.c.'s were caught up with the managing partner of the block chain founder spawn who brought down the subject with artie's branch of war we began by asking him about france's move to explore digital currencies. so according to the bank of international settlements as you mentioned 70 percent of central banks that were surveyed are actually looking at doing a storm of a c.d.c. or a central bank digital currency 50 percent of those are actually already working on
proof of concepts and so there's a very clear case here for a lot of countries looking at it in the case of france where there are trialing is a wholesale c.d.c. so it's not for general citizens or for retail payments where they're actually looking for is actually creating a fission sees from the from a from a cost perspective and a risk perspective and that's actually going to translate for where they're looking at is to translate that into actual benefits from interbank payments as well as across the board with assets as they start to digitize and tokenize furthermore a c.d.c. actually in the current environment of 0. interest rates or negative interest rate as we're seeing across europe actually allows us to have an effect of a lower bound that would be lowered even further which gives additional tools to central banks no influence specifically. appears that the government is trying to
get ahead of this whole digital currency phenomena craze or whatever you want to call it due to the eventual roll out of facebook's libra now is it a good sign that governments can avoid the coming change of the guard or is it that they're going to do it poorly to try and beat out facebook. so what the big concern here is actually a currency that circulating outside of the money supply in outside of the financial system this actually brings across financial stability risk according to the central banks and so this is actually the case with something like facebook libra in the case of for example project venus from buying as they're actually looking to work with governments to actually launch locally pag fiesta currencies or central bank currencies from an external perspective working with those central banks and so that actually has a lot more potential and is much less threatening to these central banks and so
that's something definitely to watch and how that goes across what central banks and looking how they continue to focus on issuing central bank currencies it is interesting to think of having a. a digital currency that's not necessarily controlled by the central bank but worked in tandem with the central bank like what you were just talking about with bioneers doesn't that risk having a central bank involved in currency which seems to be the problem in some places that have currency crisis right now. yes so in the countries where we see in political crisis this is actually where we've also seen a bigger uptake so where there's political turmoil where there's actually some sort of instability or high levels of inflation in those countries you actually see them naturally gravitate towards crypto currencies as earlier adopters and they've actually already been able to adopt it from the perspective of spending saving receiving and sending. only in friends and so this is something that's quite key
that probably doesn't actually get solved with a central bank digital currency if there's a lack of trust in the institutions but where there is trust a central bank digital currency does make. now if we're looking at the surface level of this we notice that central banks are looking at quote digital currency is rather than quote crypto currency now this is a big distinction that our friends christiane ben swan bring up regularly but only can you clear up that distinction and more importantly why are they choosing digital over crypto. so with a central bank digital currency they are looking to maintain control of it and maintain the tools that central banks have at their disposal and so essential bank would likely actually issue using a private not a public meaning regular citizens like you or i wouldn't be able to see the public ledger having said that we would expect that these would have increased
transparency internally to parties and would help to lower things like counterfeit or any sorts of issues that might arise for a private block change they do need to have much higher throughput on transactions and compared to public lock chains they do offer that as a reference point you could look at pay in china on singles day a couple of years ago they process $256000.00 transactions per 2nd and so if you were to actually have a financial system with a block chain layer we would need to at least have that sort of throughput for it to be viable in most countries. now we're running short on time so i do want to bring this up here because i respect your great. as we come to an end a 2019 here what are you looking for as the big trends and innovations in black chain technology in the coming year because we've seen it grow bigger and bigger
every year. so in 2021 of the areas that we're particularly looking at is actually crypto monitoring and so companies like chain analysis are very interesting to watch because this is where they can actually work with law enforcement or tax authorities to monitor crypto transactions some people might not like but it's actually an area that's one of the hottest with several acquisitions that have already happened to date another interesting to watch to watch in 2020 is actually the gaming sector we've seen actually games such as gods unchained or splinter lance actually star and continue to gain a lot of traction a corner stated that right now which is a web site that tracks these sorts of top down we're actually seeing something like splinter land which is a trading card game continue to grow so these are both very interesting sectors to continue to watch in 2020 in addition to central bank digital currencies.
daily fantasy sports company drop case and now this week that it would be going public after our merger with diamond eagle acquisition and s.p. tech the deal is expected to be completed in the 1st half of 2020 with diamond eagle changing their names to draft kings ank and re incorporating in nevada while remaining a nasdaq listed company under the new ticker symbol the combined company will have a market cap of roughly 3 point $3000000000.00 and have more than half a 1000000000 in unrestricted cash on their balance sheet during an interview with c.m.c. on monday tracking c.e.o. jason robins said that they're looking to acquire better and technology company s.p. tech and then go public or go public and then make the acquisition later but was happy to do everything in one step daily fantasy sites have faced issues with regulators in the united states since inception over whether or not it constitutes as gambling the distinction being that fantasy players say it takes skill while gambling is pure luck. that's it for this time you can catch boom bust on youtube
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