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tv   Boom Bust  RT  February 7, 2020 8:30pm-9:00pm EST

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this is the one business show you can't afford to miss this one and i'm british born washington coming up president trump and president xi are making the case that the phase one trade deal won't be affected by the coronavirus why do they need to make that public we'll explain plus the global global car industry is basically a huge shock from china the car coach lauren fix is here to break it down just the u.s. attorney general really just say that the u.s. government should take ownership stake in cell phone companies which companies and why just minutes away a lot to get through on this very busy day so let's get started. and we begin as president trump and china's president xi are making and reaffirming their
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commitment to implementing phase one of the u.s. china trade deal what was the need for that well because as we have reported inside that deal is a disaster related clause that clause would allow china to avoid repercussions even if they cannot meet the target of purchases of u.s. goods and services for 2020 it's a pretty big deal and that is why friday president trump and president xi both expressed confidence in china's strength and resilience in confronting the corona virus outbreak according to the white house the 2 presidents quote agreed to continue extensive communication and cooperation between both sides they also noted the great achievement of the recent united states china phase one trade deal and reaffirm their commitment to its implementation in quote which on its officials have been hoping that the u.s. will agree to at least some flexibility on the pledges of that deal and bet it's actually fascinating here because of that disaster clause it's almost like we're steps closer to our are good for. and host of boom bust i'm just sitting in her
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chair and today christiane has been saying that those ag purchases are unsustainable and that we will never actually see china make the purchases that they promised to make in phase one and that was without the coronavirus being a part of this are you chris that was already suspicious of that as well as the soybean purchases the chinese agreed to china it seems like has bitten off more than they can chew for lack of a better term in terms of some of these purchases but with the coronavirus it gives them an out where they can say hey listen you can't punish us you can't add additional tariffs because we have this disaster related clause and because the w.h.o. has now declared coronavirus a net worldwide health emergency it kind of triggers that disaster related clause if the chinese were to choose to pursue that we don't know if they will and as we look at it on the american and here you know president trump it doesn't matter whether disaster clause is initiated or not he got a when he completed phase one of the trade deal and he's ready to move on and count on him being hard on the chinese to say i expect you to keep up with it even with
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that clause absolutely. and over the years china has become the manufacturing hub for american european korean and japanese automakers the country produces more vehicles than anywhere else in the world and is the largest market for sales in china alone exports more than $70000000000.00 in car parts and accessories each year but the provisions taken to control the spread of the coronavirus will likely take a toll on the auto industry for instance listen to this toyotas the world's 2nd largest automaker said they will keep auto production in china closed through the 16th of february south korean giants kiya and hyundai will idle their factories until the same date and honda's will one plant won't return to operation until the 13th of february now according to s. and p. global ratings the coronavirus could cause an overall cut in production of around 15 percent in autos in the 1st quarter of 2020 and this is a something that needs be taken care of so let's go ahead and bring in lauren fix the car coach to discuss the coronaviruses impact on the auto industry and some
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other news of the day in the auto world now lauren let's start with this whole production due to the corona virus as a piece that could cause a drop in 50 of 15 percent what's going what's it's going to do to the global auto industry. or it's really going to hurt the global auto industry you've got hyundai and kia they don't have parts in order to build so south korea is begging the country of china to let them go back to work but obviously this is a health scare and if you look you know there's nobody working so other countries that the companies being involved in impacted by this general motors chrysler re no nissan ford motor company these are all companies that don't have product to finish building things that they have other components from other areas of the world so this is going to impact the global automotive industry they're talking about g.d.p. being impacted by up to 5 percent that's huge when you're looking at something that's one country can impact that much on others other companies such as suzuki have were going to go to china to get components and they're sticking with india
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and i think you're going to see a lot of other companies looking to other places to get parts lord i do actually have a follow up on this because when you talk about almost every auto manufacturer being affected by this i mean china is the number one producer of autos are actually manufactured there not to say that the companies are chinese necessarily so is anybody going to come out a winner on this is there anybody who's in a position to actually move you know move past this or is it basically the whole industry is kind of suffering and nobody gets a leg up. i don't know if anyone's going to get a leg up because the parts industry isn't being impacted they call it the rock candy mountain there because literally a lot of components are being built for all over the world and so this is one of the things that you know we think about not just automotive but everything from cell phones to any component any thing that has electronics is going to be produced in china these these impacts are so dramatic that you're going to see maybe not today but let's say they started production back up on the 14th the 17th like a lot of manufacturers are hoping for because that's not in concrete as we know
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you're still going to see a pipeline problem that it's going to take time for once they get everything back up and running to get these components typically you're looking at a 3 month variance so 3 months down the road we may see a shortage of an impact that's quite dramatic and a shortage of parts and components and cars being. so the production element in especially when it comes to parts is a big deal here as you mentioned but as i was talking about china is the world's largest auto market nissan is already witnessed a 12 percent fall in their china sells in january what are we seeing as far as vehicle purchases in china have those kind of ground to a halt as well. they've definitely ground to a halt consumer confidence is way down when you think about china being the number one car market if nobody no one's working it's definitely going to be a major impact on consumers and their confidence once they get back to work they still have bills and things they have to pay so this is going to take some time to catch back up so i think the impact is going to be quite dramatic because auto sales have been definitely down in china year over year. lord take it a step away from the whole coronavirus situation ford motor company on friday
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actually you know its president joe heinrich's is retiring after nearly 20 years with the company jim farley will take over as c.e.o. which positions him to eventually take over for c.e.o. jim hackett now this news comes as ford posted losses of $1700000000.00 in the 4th quarter of 2019 what does all of these changes would do all of these changes and what does the change in leadership mean for the future of ford. well let me this i want to clarify this because no one's talking about this on any network the reason joe heinrich's was basically asked to step down is they're blaming him for the debacle with the ford explorer in the lincoln aviator on the launch there were some problems but i can't believe it's his fault and then there's other things going on with maki sales not being what they claim they are so jim farley who is the head of that marquee program will now be taking joe heinrich's position he'll be working hand in hand with with hackett unfortunate looks like heck its contract is due in march and so it's highly likely that he will step down which would leave an opening
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for jim farley to be the next c.e.o. and i'm very concerned because jim was an excellent car person our job was an excellent car person and love cars and you have to be truly passion about cars although jim farley is it's a different kind of passion he wants to do all electric autonomous cars and although the market isn't buying that here you have to look at your number one bread and butter which is f. series trucks and you can't be making those looking like mustangs and making them all electric because you will upset your base and they'll go to other companies to buy cars so i think we will see by. very concerned about this change and speaking of going to electrics we talked about this earlier this week the u.k. prime minister boris johnson he did it down to the government plans to ban the sale of gasoline hybrid cars he same i think 2035 germany similar plans to do this kind of thing do you ever see this actually happening yes eventually we might get there but at this point is it just lip service to the world that's kind of. i think it is a lot of them they're 5 years earlier than we had expected but you have to remember
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if you're in london you live in a flat how are you going to get a cord to plug in your hybrid so again this is going to be some serious problems i'm here in new york city we have the same problem i'm going to pre-war building there's no place to plug in there's no garages you park on the street so forcing people to purchase vehicles they don't want is not working their sales of electric vehicles are down gas and diesel vehicles are 90 percent of the sales in london right now so how in the world are they going to switch it all to electric vehicles by 2035 i don't see that i think it might be just a lot of lip service and anyone even the people that are totally into electric vehicles have said you know what this is not going to happen this is a future disaster and and there's just too many too much impact on the electric grid there grid can't support it neither can ours more and are we seeing this push to because you know i mean i think i think tesla has made that push for go further because when you look at tesla they're cool they're technologically advanced i mean they look like the concept cars that some of the big autos are putting out now but
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is that why we're seeing this push. well the push freebies is part of this green new deal in this climate summit trying to everybody's trying to come with a better way not to pollute i get that and i understand that but the electric grid can't support it and there's no way to recycle these batteries and we still have tons of solar panels and the zeevi batteries sitting around with no way to recycle them we might be having a much larger environmental problem down the road but we're putting the cart before the horse and i'm really concerned without having the infrastructure you know are boris johnson is jumped in with both feet and we shall see but he may end up with a gun a space lord fix the car coach always critical of the evy sector but i love that thank you so much for your time today. thank you. global stocks studdard on a friday after what had been the best week for stocks since june and the strongest week for the dollar since august it was a big week as the market pushed back against fears of the coronavirus and thanks to a $400000000000.00 wipeout on monday shanghai was facing its worst week in 8 months
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for more on that let's go to this week's market walk. after the coronavirus wreaked havoc on global markets in recent weeks we are seeing a lot of green arrows on the rebound let's start in russia with the mo x. it is barely up on the week now there were substantial gains before russia's central bank cut its key interest rate to 6 percent on friday which caused the market to take a bit of a plunge but it stayed positive now moving over to asia we're going to star in shanghai where the composite is up mostly regaining the losses that happened due to the coronavirus prior to the lunar new year celebration which had markets closed for the entirety of last week now markets were reacting quite a bit to reaffirming phase one trade deal between the u.s. and china and a slowing of tariffs in hong kong also another green arrow as we said the hang seng is actually had its best week in nearly 2 months shares fell on friday but were
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more than 4 percent higher for the week policymakers help the market with the liquidity injections and instituting some restrictions on sell offs in japan the nikkei also up on the week making up for recent losses now they were also pushed up by the cut in tariffs announced earlier this week and as we discussed earlier in the show there were some concerns for the likes of honda and toyota as manufacturing has slowed in china now going to move over to india this sensex actually jumped 1500 points on the week and yet the markets were really climbing on the back of strong market manufacturing and services p.m.i. numbers which continued to go up for the 2nd straight month now the services sector also surged to 7 year highs in january in india were. in a move down to australia where the sex is also up again rebounding after a tough week last week as is generally the case with australian markets that were positives in the mining and metals and materials sectors and finally moving to south africa the all shares it's another green arrow however on friday to be south
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african rand 3 month lows against the us dollar causing markets to dip at the end of the week so there is that to be concerned about in south africa let's move it over to ben to check into markets in the e.u. and the americas all right well over in europe as i mentioned just a minute ago just about everybody was up this week and as we start over in europe the cac is way up things the news that china would have tariffs on some u.s. imports as part of that phase one u.s. china trade deal the dax over in germany also in very good territory it had a very strong week as did the footsie over in the u.k. and for european markets it's been pretty much the same thing markets pushing back on fears of the coronavirus continuing to spread plus there are hopes that the chinese will infuse even more stimulus to help boost up markets over in south america is also up for the week even though it peaked on wednesday it has been dropping ever since sliding into north america now the b. and b. in mexico the only place we were actually down this week but here in the u.s.
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all 3 major indices are up as well and as i said up isn't even the right word we are in record breaking territory all throughout the week let's be honest because all of this is not about less fear of the coronavirus doesn't even really make sense right it is about the federal reserve pumping money like crazy injecting $94500000000.00 into the banking system and repurchasing government securities from banks that is what has got everything up so high and jumping up north to canada the t.s.a. is up as well this week as canada's main stock index so help from crude oil and the canadian dollar being up and the april gold contract that's up as well and that is this week's market walk. and time now for a. break but hang here because when we return did the u.s. attorney general really just say that the u.s. government should take ownership stake in cell phone companies which companies and why right after the break in the as we go to that break here are your numbers at the close.
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i walk through the streets of moscow now blood 100 people i was down 8 of them would have the changes of leukemia in the blood that they don't have leukemia because in order for them to have leukemia they need to d.n.a. changes they also need an environment that's receptive and one of the biggest areas of growth and medicine in the future is be targeting. changing news so the cancer
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doesn't want to. suffer and. the way to go through a food. bank itself mukti about. closing this way got to do so hard not to think of the mother disappeared this is the work of the day i work and i don't miss our benefit if. this is the only thing that we do is music because everybody fights his way to. the floor you can feel the 50 who found his bill frist would it. have been a lot of. what i think is this is the fund that is all come food stuffs.
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welcome back johnson and johnson was ordered to pay $750000000.00 in punitive damages to 4 plaintiffs who say the company's baby powder caused their cancer now the ruling by a new jersey jury will be reduced to $185000000.00 to $2.00 state laws which kept going to damages 5 times the amount of compensatory damages now during an earlier portion of the trial a separate jury awarded the plaintiffs 37 point $2000000.00 in compensation johnson and johnson issued a statement saying that they would appeal both rulings claiming there were numerous legal errors that subjected the jury to irrelevant information and prevented them from hearing meaningful evidence on the news of the burdick stock was down more than one percent on friday the company now faces more than $16000.00 lawsuits in
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relation to the claim that their powders contained a special dose and the company failed to warn consumers well a big day for wireless companies ericsson and nokia thanks to the trumpet ministration floated the idea that the u.s. might buy a stake in either of these companies as a way to counter while way the idea was brought up by attorney general bill barr in front of an audience in washington on thursday barr who along with the rest of the trump administration has been attempting to block while these development of 5 g. technology said that the u.s. should consider taking a controlling interest in the 2 nordic companies ericsson is a swedish company nokia is based in finland it's also worth noting that barr is a former general counsel of cell phone carrier verizon communications which is also a big customer of ericsson and or right now this is just a floated idea that may not have any merit but if it were to take shape the more likely candidate would be ericsson as the company does not have any state ownership the finland government actually holds a 3.8 percent stake in nokia of course all of this is again an attempt to weaken
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wall way meanwhile wall way itself. partnering with a number of others chinese cell phone carriers to build a new operating system in order to completely abandon google's android system during the summer which played out part of the story is google's correspondent there is a month thanks for being here thanks for having me all right so let's talk a little about this because the idea here is that we're going to see wall way and other chinese companies abandon the n. word operating system is that the idea and essentially create their own well that's kind of the idea that we're looking at even though necessarily while way is not mentioned on this it's a global developer service alliance the g.s.a. where we're seeing 3 chinese companies show me open and they're saying huawei possibly which are uniting now to kind of create their own i o. s. software application now we know that their software we do know that while way the partnership they had with google is now obsolete at least for now they're there
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they don't have any google apps available on their phones but we also know that way is building their home harmony o.-s. software application that is due to be released probably in the next couple of months and if these companies were to actually come up with an android alternative route we're talking about 4 or 5 of the actually largest manufacturers of smartphones they hold what about 40 something little about 40 percent of the android marketplace as far as cell phone so if they want to take it they would take a huge chunk out of google's business which i mean is not necessarily reliant on android but they were probably make quite a bit of money on it they are in the most interesting part is that they're they've come out said that they're not trying to compete with google and even huawei with their harmony alas there said that they're not looking at this as a competition but that they're going to create something bigger than the android google play so i mean really looking at it we know that they're probably trying to find an alternative after a while i was banned there thinking who could be next but i mean you know well
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because that's kind of the point when you go into competition with someone you're saying i see what you're doing and try. going to share of that market that's not what's happening there this is more of a self reliance and almost a survival mode for these companies to say we can't be dependent on android it's also got an interesting you know google made a decision to not really pursue having a success i don't know if it's a decision but a successful developing company they have google pixel but let's face it. the likes of google phone but instead they have the enjoyed operating system which was much more meaningful to their bottom line than having phones has been but if you cut out 40 percent of that business that's a pretty significant amount especially especially of the data collection part of the business right it is and even looking at wall way who's been trying to develop this harmony alas for quite some time now originally they said it was going to going to take years last november they said it's going to be anywhere from 6 to 9 months so they're obviously pushing that process because again like you said it's
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competition who will be next we want the bigger and better thing even if it comes from china right and you have to look at it too as right now the majority of that market is android. so that's all it is there's room windows but mobile has what one or 2 percent i guess who has that. so there's an opportunity for a nother big operating system and if you have companies that own about 40 percent of the android market anyway why wouldn't they come up with something on their own well 'd and again if you're talking about this development overall as to what is happening here in the united states there's this big stigma right now about china but the rest the world doesn't necessarily feel the same way and while way you have to know is around the world its 2nd largest market is europe so and i think the latest decision with the u.k. for example allowing their 5 g. networks i'm saying also that they're so far ahead of 5 she has other competitors i think this this is really kind of looking at that race for 5 g.
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and trying to build up to while away and while we're really as a part of this and this could be big for these these other chinese. companies salute r t correspondent sarah motors there but thank you so much q. so the secret service has arrested 2 people at the center of what they are calling a crypto ponzi scheme that reportedly defrauded more than 100 investors including former professional baseball players and all authorities say that at least $7500000.00 was taken from investors over the past 18 months the 2 people at the center of this john michael caruso the founder of zima digital assets that's the 1st mistake. of the michael jordan of algorithmic crypto currency trading that's the 2nd mistake and zachary salter an aspiring r. and b. singer 3rd today according to court documents caruso who declared an income of just 22800 dollars in 2018 so he didn't have any money convince dozens of people
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including these former him i'll be players who had a lot of money that his company which was poorly named was skillfully playing the crypto market in generating big returns prosecutors say that what makes this a ponzi scheme is the pattern of investor payments against investor payouts with no investment of funds actually taking place stating quote no evidence of any investment funds have gone to any crypto currency digital asset investment or to any investment of any kind in quote sounds bad so where do the investor money go but you can guess according to prosecutors to fund a psalter in crusoe's lavish lifestyles including luxury cars flying around the world to exotic locations and 30 trips to las vegas where caruso reportedly lost more than $1400000.00 gambling in a 13 month period so he wasn't even good you couldn't even figure out how to game
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and really mean it was good at anything he wanted by the way i just want to point out that michael jordan of digital assets. rhythmic trading and r. and b. are aspiring r. and b. singer all we had was a club promoter in this mix and we really have the worst type of people involved in everything it is and one of the things that prosecutors are using are instagram posts these guys have put up where they're buying fancy cars one of the guys salter i believe bought a mercedes or something for his girlfriend and he had pictures of it on there and these guys drive me crazy because this is if it's true and it appears to be the worst kind of news that you can get about kryptos a cripple has a lot of great positive things about it and then there's some really ugly nasty negative things including scams that have been run by people like this when they just take money from people because it's so new you don't really know if you're being right but at least but these guys weren't even they weren't even like bad script oh investors they didn't even invest the money in crypto they were just
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having crypto in the name is actually wrong it was just a scam scam it was even a crypto scam it was a scam to get that's it for this time you could catch boom bust on demand on the brand new portable t.v. app available on smartphones through google play and the apple app store by searching portable t.v. or stream is to your t.v. by downloading the portable t.v. app on apple t.v. and online it portable da t.v. t.v. is coming to more devices very soon i guess you could call it and legit scam as always you can have this up at youtube dot com slash boom bust our t. and we see you back here next time. we're going to fulfill that promise is possible for the people. you know we've all bought the. pretty rough.
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now you want to work. on no. all the. big. thinking of getting your music on the ones we got in our shoes no problem was as he didn't know until he was trapped in this tiny little wired coach you don't need a crate with him he will just stir reaching out into the wall when it's freedom anywhere near and thousands of breeding dogs are caged in the in 2 main conditions
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on puppy farms 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 air the rain the snow the funder nothing they have no protection. because you. know it's 2 kids. across the u.s. crude 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 in stores even joined a good businesses are involved like the mom santa there's been a shocking amount of organized 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 groups and industries that have nothing to do with jobs don't buy dog on o.t. . stuff and finding another one of our is the
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mcdonald's way to go for a food. benefit so. moving to. close in this way got to dog so hard not to think of the mother disappeared this is the work of the day i was and i don't miss dorothy and i think if. this is the only thing that we do is music because everybody fights to aim his weight. to. the floor you can fall to the be pulled out of his will for this would be a whole new level of knowledge of the whole. what i see is this is the funds that is all come from. you.
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global chemical watchdog slams to former inspectors who questions the o.p.c. w. reports into the alleged chemical attack on the syrians on the. a passenger plane in syria and narrowly avoided being hit by air defenses reportedly find in response to an israeli missile attack. on britain's determination to stop terror offenders getting automatic early release from prison that's one kind of collision course but it would be you have a human life before the issue for to break. up people particularly when it if they're going to start applying it to people already been convicted already been sentenced already so part of the.


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