Transcripts For RT Boom Bust 20240714

President donald trump issues a quickly contested declaration of victory on friday night mexican and u. S. Officials issued a joint statement on migration issues mr trump soon tweeted that the terrorists who threaten to impose on mexican goods were here by indefinitely suspended the New York Times quickly pointed out that the agreement mostly repackaged or accelerated previous mexican commitments no reference can be found in the text of the agreement for mr trumps claim that mexico committed to major new purchases of u. S. Agriculture products mr trump also signaled he may need a new his Terror Threats over migration issues in the future president Manuel Lopez Obrador reacted to the agreement. Im very satisfied with the deal that was reached with the United States very happy because hes avoided a crisis an economic Financial One where it was no small thing to represent. Even the ones we dont see eye to eye with the impact. Would result from the tariffs. And although tariffs on mexico have been avoided for the time being the threat still looms and this 3rd is still causing jitters in the auto market for obvious reasons as of the end of april the United States had a total trade value with mexico of just over 203000000000. 00 of which the u. S. Accounted for importing 58 percent of that total busy this imbalance has put the u. S. At a nearly 31000000000 dollar deficit with mexico just in 2019 i want comes to autos the contrast is even more stark with 2 of the 3 top imports to the u. S. Being Motor Vehicles and car parts respectively through the end of april this sector accounted for more than 21000000000. 00 worth of imports according to data from the u. S. Census bureau so while automakers can get a gasp of relief for now what could a scenario a terrorist look like in a sucher so reliant on trade here to help us break it all down as lauren fix the car coach lauren welcome back lauren autos were the major stakeholder considered at risk in this sort of contrived convers confrontation even more than agriculture because of the multinational nature of car production in this day and age with some car parts reportedly crossing the u. S. Specs go border more than once in the production process so 1st at the broadest level what is the scenario after this agreement to suspend the Terror Threat do we just go back to the status quo ante on autos or is this flight going to leave some bruises or some dents i should say in the car industry. I dont think its going to impact the Auto Industry in the Bigger Picture or even Joe Heinrichs whos president at Ford Motor Company agreed with my assessment that we knew mexico would bend because obviously the impact financially to mexico to give up 5 percent as of today would have been really expensive and could have impacted growth in mexico in sales going back and forth across the border because for example if a hard wiring harness is produced in mexico it has to be assembled into a come. Conant the u. S. That might end up going back across the border again and then once its completed in a vehicle come back across the border again so therell be 2 terrorists on top every time that cross the border so manufacturers kind of knew that mexico was going to definitely want to be more flexible with 93000000000. 00 a year going back and forth across the border they want to make sure to do something so immediately once President Trump threatened the tariff immediately someone got on a plane got right to washington d. C. Which is what i think they were looking for anyhow to have a discussion about the border i dont get into the political side but i will tell you on the automotive side the impact could have been painful down the road maybe not initially but down the road it would have impacted sales i dont it would impact each individual consumer from an automotive perspective foods a whole nother story and i dont cover that category but i can tell you that right now manufacturers are aware that this is probably not going to impact them in the Bigger Picture the goal was to get mexico to come to the table to have a conversation as long as they stand up to their end of the deal we shouldnt be talking this tariff ever again ok so the point on the damage that was on the table the center for Automotive Research had said that the terror from 25 percent would increase the price of a new vehicle assembled in the u. S. By about 1100. 00 for cars assembled in mexico sooner estimated the prices would have increased about 5400. 00 per vehicle those are both if the 25 percent tariff rate had gone in so yeah it sounds like a pretty substantial price impact that they averted here but you think you think the threat is off for the long term is that right. Im sure that mexico doesnt want to deal with President Trump adding 5 percent per month and the end of october there would have been 25 percent thats where you would have seen the 5400 dollar fee initially the 5 percent wouldnt have been that much because remember each components got its own piece and manufacturing going to absorb the full amount of money theyll absorb some of it because obviously theres a price point for their vehicles so if a vehicle selling at 25000. 00 they dont want to move it to 27000. 00 or even 26. 00 they may split the difference and say this is part of the cost of doing business theres quite a bit of profit on the sale of the vehicle and theyre not going to absorb all of it but they will absorb some of it not turning over to a deal that didnt happen Chrysler Drop their merger with were not last week now were not has had some well known troubles but the new fia chrysler c. E. O. Seems to have some challenges on the table why did talks fail and where do the players go in the process from here. Well our nationally f. C. A. Offering to join this merger of reno nissan and mitsubishi was kind of strange to us in the Automotive Industry which didnt make a lot of sense to us because f c a stands alone and does make some profits especially on ram truck and jeep but to merge in with this group we knew that thered be a problem with the sun because weve discussed this about carlos going and the fact that he is obvious hes in prison unfortunately or any hes being accused of something or may have may not have done so with that in play we knew that nissan wouldnt vote yes they did to abstain from voting and that caused it to be re no one mitsubishi to decide what they wanted to do and the french government said sure wed like to talk to you and we want a larger stake in reno and a larger stake into f. C. A. And so thats one of the talks fell apart and following up on that the french state is as you alluded to a major stakeholder in renault and the french find finance minister brule amir in an interview with the asian review seemed to back off clearly from a fuller Nissan Renault merger that they had floated he said if we have also he went further and he said if we have to cut or no stake in nissan to have better governance one that is more efficient takes us through decisions we are open so that whats going on there on that front. Well 8 is as far as the whole Auto Industry and. Reno and u. K. Are every manufacturer right now across the globe is losing sales sales are not what they were and i think thats a big impact you cant sell 17000000 cars this year 705 the next year 18000000. 00 the next year especially here in the u. S. And with sales in china are down sales in europe are down and its always going to be oscillating just like the stock market so you have to look at the impact politically heres a look at the impact from the stock market and the impact from consumers so this is going to cause an oscillation when youre talking about the u. K. Versus your versus u. S. Theyre going to be different markets and theyre going to have different impacts. Again so that would cause. Negative sales versus positive sales now moving across the channel from france to the u. K. Car production dropped by 24 percent in april now that sector has had a 33. 9 percent fall in manufacturing overall for the month are these recoverable losses or is the u. K. Car sector headed for a structural downsizing postgrads it. Well 1 we dont know how thats going to finally end up because were going to have a new administration over there but as far as u. K. Car production where theyre making mini and rolls royce and other cars or jaguar and land rover where theyre hand built over there that has to do with the sales of the brand on a local basis unfortunately. We dont know what the final deal is going to be theres a lot of speculation saying that its going to hurt the brand and i think thats why youre seeing a downturn on sales overall lets hope that its able to turn around and not shrink those brands because they do make some great quality product excellent insight as always from lauren fix the car coach thanks for joining us thank you. Despite the tariffs the raging trade war and other challenges chinese exports faced in recent months china surprised the worlds announcing that the trade surplus for may grew to 41650000000. 00 doubled than expected there had been widespread expectations of a lower surplus as economists predicted chinas dollar denominated exports to slide 3. 8 percent year over year but data actually show that exports grew 1 point one percent while imports fell by 8. 5 percent chinese trade activity demonstrates stiff resistance against the ongoing trade war with the us however the us is accusing china of allowing its currency the rand to slide as a way to neutralize the impact of the trade tariffs a weaker ground makes the chinese exports more attractive giving them a competitive advantage in International Markets and also setting the cost of tariffs on chinese goods again had weakened more than 2 percent since the start of the trade war and today slid to its weakest level and 6 months versus the dollar the p. T. O. See warned that the currency could be permitted to slide even further. And updating the story from last week the Brazilian Central Bank the shooting down the idea of a Monetary Union with argentina to the. Idea was floated during brazilian president. An argentine finance minister had suggested the 2 neighboring countries would pursue the creation of a common currency called the real pay so according to an official statement though the central bank of brazil those not have any plans or studies in progress for a Monetary Union with argentina. Now for a quick break but hang here because when we return we get a london eye view of. American business. And a way through the water. And theyre. On hand to give us an aerial take on the newest player in the air. And as we. Did. So you know exactly that brings us to the end of the series if we could just let josie marino walk away so we decided to truly talk still goes to a very special farewell. But this time to go back to the punch line thanks for putting the body. With. The only thing i didnt enjoy was my. My. Well thankfully we nailed it literally that we can. Intervene in truth time weve never been off the gulf and. People say we left the Gold Standard but in fact Central Banks clear all their. Dealings with gold and now after this period of experimentation with a purely run currency. Of the globe various countries are recognizing that. They need to go back to pure Gold Standard as they should. Leaders of italys increasingly fractious Coalition Government are meeting monday to try to resolve differences within their camp and when the European Commission over the countrys 2. 3 trillion euro debt burden and a political. Pushed for tax cuts Prime Minister does that picante renewed his threats to resign ahead of talks with his governing partners on how to satisfy e. U. Authorities mr cantor warned against the consequences for italys ability to finance its debt if the commission follows through with an official inquiry called an excessive debt procedure or e. D. P. That could lead to sanctions from brussels e. U. Members are reportedly preparing to vote to pursue the e. D. P. On june 12th italian leaders refused to back down on tax cuts and new spending. Checking in on the u. K. The bungled u. K. Braggs a process continues to weigh on the u. K. Economy as the Political Uncertainty increases Prime Minister teresa mayes resignation on june 7th having failed to deliver bags it but on another front the u. K. Has gotten some good news on trade this time from asia here to tell us more and bring her unique insights is hillary for a member of the British American Business Associations board of directors hello welcome back pleasure christy so that you can assign a trade agreement with south korea to ensure of business continues from both countries after braggs it how important is this for the u. K. And how important is south korea as a as a trading partner when i think its very important actually in 2 regards primarily of course psychological this is a huge boost because. The scare mongers have been saying there been predictions that any trade agreements would take up to 7 years with all the countries thats actually just been proved to be ludicrous and again scaremongering so one was psychological but to factually and in reality this is the u. K. Liam fox dr liam fox are making trade agreements and his goal is that all of the 40 agreements now in place to replicate them 63 percent have already been replicated among those all the countries of the 40 with. Some of those are for example with switzerland norway chile to name a few. And then hillary obviously its a confidence boost to get the treasury. Logical a psychological boost to get this trade agreement in the middle of trade difficulties but on the specific terms of it what did the 2 parties get out of this agreement it really mirrors actually the existing agreements theres nothing really drastically different i think whats important to note though is that i mean most of the products that go there are sort of cars and fuel and etc from the u. K. But i would say this what they both get out of it is the u. K. Gets out a huge bargaining chip here the u. K. Now can turn around to any other nation somethings already in place and with the e. U. It strengthens the u. K. s position what does south korea get out of the deal south korea now has a definite market and a trading partner and security in terms of whether theres a no deal or not so its security for both but gives the u. K. A huge amount of leverage now this deal with south koreas the u. K. Its 1st major trade deal in europe since the 2016. Have been busy signing continuity deals with all the nations or the critics do say that deals may not cover as much trade as existing in grangemouth and that they are still incomplete what do they mean exactly by that what they mean by incomplete kristie is that this deal in particular if you want to look at this one this is still to be ratified yet by the south korean polymer it is expected to be ratified by the end of october which would be before the oct 31st how are we deadline of brechts it but theres still a ratification needed so thats what the critics mean the critics also looking at the fact that theyre not all in place yet one of course not because it takes time but the good news is the critics cant refute that this is nothing like 7 years this is been a number of weeks one stock only of folks has been unleashed to make these agreements and on another front moving from trade to 5 g. To build 5 g. Mark to build infrastructure and market share is heating up and 3 the company 3 Just Announced it will be launching in the u. K. In august through has apparently more than twice as much 5 g. Spectrum as their closest competitor which is supposed to deliver significantly faster speeds for its customers. Well can you tell us about this in the works couple of things 1st of all again this is a boost to the u. K. Because this is a big this is a london based company whats important is this is only being launched just in london to begin with but then its going to be predicted to be another british cities a couple of things number 15. 00 g. Of course offers vast degree of extended economy to pretty and this is what certainly the Younger Generation wants also this sort of Pilot Program its initial program in london is very much plug and play what it will do for the youth market that does not want to have sort of the they dont they dont have things in place they move to office and they want plug and play this is very important and i think its another indication that as the k p m g Technology Study predicted and reported the u. K. Is the 3rd best Technology Market in the globe after Silicon Valley and a couple of others and this is whats important for breaks it a lot of those u. K. Customers are outside of the u. K. So now with this being instituted in london what does it prove it proves that a British Company can deliver Something Like 5 g. And it gives superior connectivity in the city of london thats very appealing to many Many Companies that are looking to on the brink of what should we do should we leave or should we stay in the u. K. Very good as a differentiator so this is actually one of the 3rd largest carriers weve seen vodafone either theyve all come out and said that they are actually not going to be using our infrastructure to build out their 5 g. 3 s. So far has not made a decision on whether or not to carry devices later on do you have any and so you can write it for you id be surprised if they go with one way because of all the controversy and the obviously that you know the fear of and i would say. Its purported to be obviously from the chinese a capability to actually have you know cyber run of the Cyber Espionage ramifications i think that whether its image whether thats a brand of one way whether thats the truth most people think that is the situation that is a big negative on our i. Be surprised if you see huawei used in this instance particularly in london. Thank you so much as always helen for which board member of the British American Business Association ok to be here. If its monday there are certainly mergers on the table cloud stock where behemoths sils force announced today that it would purchase a Data Analytics firm tablo for 15700000000. 00 in stock the move is seen by many Industry Analysts as a response to googles purchase of looker that we reported last week still sources hoping to bolster their business with the purchase of the seattle based tablo a company that puts focus on Data Visualization the companys c. E. O. Mark benioff said as much in a statement regarding the purchase saying tablo helps people see and understand data sales force helps people engage and understand computers or understand customers on the on the new sales force the stock took a hit down as much as 8 percent in early trading but has since rebounded meanwhile tablo has seen increases of as much as 35 percent on the news topping out at a one around 100 70. 00 per share. And united said knowledge is an raytheon are merging to create a new company that executives say will define the future of aerospace and defense the consolidation is happening at a time when both industries are looking to cut costs and improve Technology Molly barrows contributor with americas lawyer has more on the merger molly welcome back now obviously is a big deal but lets go into this why is this why is it such a significant deal. Well its quite a big deal because United Technology and raytheon are joining forces to create an aerospace and defense powerhouse kind of a 1st of its kind if you well it is one of the biggest corporate mergers of the year so far u. T. C. As an industrial conglomerate makes everything from jet engine to elevators and it owns the Company Pratt and linde. Whitney which is also an engine maker you may realize or not that they made the f. 35 you know which is a big defense jet fighter plane thats been in development for some time as well as called aerospace and that the racy on is rooted in defense and produces Missile Defense systems as well as Cyber Security solutions so the 2 Companies Supply the likes of other Companies Like airbus and boeing this new company will be called re ffion Technologies Corp this is according to a statement from the companys which was announced over the weekend and the company said it will offer expanded technology and research and Development Capabilities all to deliver innovative and Cost Effective solutions that are going to make their customers happy as well as who they hope to really make happy which is the United States pentagon who decides on who gets a lot of these National Defense contracts as well as their allies and friends i think thats really what this is about what makes it so interesting is that this merger is going to hopefully appeal to a number of Business Cycles on a number of fronts whether its aerospace. Defense strategies that sort of thing and the merger also comes another interesting point after United Technologies announced it would spin off its odious Elevator Division and carrier Building Systems unit so that means theyve broken it up where their company can focus primarily on aerospace so the merger with raytheon exclude excludes those companies and they are expected to completely separate from united in the 1st half of next year and of course its all happening at a time when so Many Aerospace and Defense Industries are looking for ways to cut costs to please their potential clients and theyre also getting more pressure to use their own money to invest in new technology but its hard to do that when youre just trying to keep your businesses afloat i think thats what theyre hoping will happen by combining these 2 businesses theyre going to be able to survive a number of Business Cycles and my house is affecting the stock before mrs do the Shareholders Approve of this deal. Well i think. If they approve it and i dont think thats those happen till later in the year but so far i think. It kind of caught a lot of people off guard you see the little bit of. Difference in a reaction raytheon a seen a slight uptick of over one percent today in their stock on the New York Stock Exchange while United Technologies has dropped about the same a little more than the same so this all stock deal is what they call a merger of equals and the 2 Companies Say its expected to have a nearly 7574000000000. 00 impact in annual sales of course it is subject to approval by government regulators as well as the shareholders but theyve already unveiled this website and veil the merger on their web site theyre all excited about it its not expected to require chinese Regulatory Approval its not expected to get much scrutiny from the department of justice so under this new deal Raytheon Technologies will consolidate its operations into 4 businesses one will be intelligence in aerospace and other based on defense and Missile Systems raytheon i didnt realize this so i looked into it but theres a biggest manufacturer of missiles in the world so its really its really interesting these companies that have paid by joining forces theyre going to basically have unsurpassed technology and really be able to expand their research and development to make customers happy and keep their business going all year long they will be subject to the ups and downs of their suppliers like air by store boeing who bell when weve seen their struggles with their 737 lately so right you know if they were to downsize for any reason you have a supplier like united trying to supply them they dont have to worry about that as much if theyre finding business in other areas including defense big step into a brave new world goalie burros contributed to americas lawyers thanks for guiding us around. And finally the ongoing trade war between the u. S. And china has had an unintended consequence dishonesty it turns out vietnam said on sunday they have found dozens of manufacturers illegally claiming their goods were made there when they actually originated in china why lie about such a thing well to avoid the 25 percent tariff imposed on 200000000000. 00 in chinese products the fake product or. Gen certificates have appeared and products from agriculture to textiles and even steel Vietnams Deputy Prime Minister are being me said that the issue has quote affected the reputation of being enemies businesses and goods adding that one noyo will increase the punishment to terror cases of goods claiming to be in the music goods entering other markets in the 1st quarter of this year u. S. Imports of goods from vietnam have risen 40 percent year over year according to u. S. Trade data fascinating sign of the times you know in the past maybe people might have put false brand labels on there but now its value is really on having that made in vietnam label and theyre concerned about their quality suffering from other people trying to mask their product as vietnamese. Update on the us thats it by this time you can catch boom bust on you tube dot com bust r. T. With this manufactured sense of public wealth. When the ruling classes protect themselves. In the final merry go round. The room. Paradise with some around turned into a round the experimentation field cultural chemicals we know that these chemicals have consequences they are major here theres no question otherwise why would. The Chemical Company workers themselves being geared up and suited up locals attempt to combat the on regulated experiments with often in you have many of these people one foot into the biotech pharma and the other foot in the government regulatory bodies this kind of collusion is reprehensible while the battle goes on the chemicals continue to poison hawaii and its people so one has to ask the question whether there is a form of Environmental Research going on in hawaii whether these Companies Feel they can get away with lives because the people have less political power. Thank. God. Leaks messages suggest a Corruption Case against brazils former president Lula Da Silva wasnt fact a stitch up designed to destroy his reelection bid. We look at the controversy figure whose death in syria is being mourned by parts of the Mainstream Media outlets are dumping the men who condone to harvest fought against president assad and praised the 911. 00 attacks. And of u. S. Meddling in british politics after americas secretary of state might come pale pledging to push back against u. K. Opposition leader Jeremy Corbin becoming Prime Minister