Under fire yet again as they face a Super Walmart over solar panels our correspondent alex mahela just standing by to break down the trouble for the electric giant can one show really cover all that were about to find out go. A threat of sanctions over an arms deal leaves our globe report today as Chinas Foreign Ministry says it will target any u. S. Company involved in the sale of advanced fighter jets from the u. S. To taiwan the island nation and u. S. Ally plans to pay a 1000000000. 00 for 66. 00 f. 16 v. Fighter jets made by the Joaquim Martin corporation beijing still considers taiwan which was founded after Chinese Nationalist forces retreated from the mainland to be a renegade province of their country and previously threatened similar sanctions after a separate u. S. Sale of missiles and tanks to taiwan was announced last month while the chinese sanctions may not have a significant Economic Impact since u. S. Defense contractors are already barred by the u. S. From selling to the Chinese Military the increasing enters. Action of economic relations between the u. S. And china with issues of security and Foreign Policy seems to create 1000000 opportunities for irritants on one track to inflame problems on the other. The region schwarten war has now begun to spread to other sectors stoking fears of recession now for a deeper dive into a global perspective on the reach of the taso we turn things over to our g. s our monsters doka who brings us the view from on the ground in hong kong. The u. S. China trade war is still ongoing with no end in sight and with rattle markets in recent weeks many fear a possible recession but President Donald Trump claims were far from it. I think the word recession is a word thats inappropriate because its just a word that the. The certain people are going to be kind of certain people in the media are trying to build up because theyd love to see a recession were very far from recession he went on to say the u. S. Economy is doing very well adding china wants to make a deal the fact is somebody had to take china in my life would be a lot easier if i didnt take china on but i like doing it because i have to do it trump shocks Global Markets earlier this month when he announced adding another 10 percent tariff on 300000000000. 00 in chinese imports scheduled to take effect september 1st and then tax mostly consumer goods we spoke to vice chairman of hong kongs apparel society for some perspective everyone is quite prepared and there has been a lot of negotiations in the last 1824 months so we have many different scenarios working with different customers already so so if theres a time for some what do we do 25 percent what do we do we have. Prepared for this again somebody has to pay for it so the cost will definitely pos onto the consumer trump and his advisors insist the trade war will not affect American Consumers but some experts say otherwise. Prewar the ones one trade war to continue or you happen because this is the. Situation that both parties saw. The us. And the president to consider the for the benefit of the us people who also for the benefit of people in other countries. Poor stopped launching true war because the president s not only lost in trade war to china you also dont trade war to every other single country according to a recent report released by j. P. Morgan the initial tears are expected to cost the average American Household 600. 00 per year the costs will rise to 1000. 00 thanks to the new terrorists meanwhile u. S. Secretary of state mike pompei o said he thinks a trade war could end by 2020 but chinas possible involvement in the hong kong protests could make this more difficult and with possible trade talks in the coming weeks the 2 Worlds Largest economies are showing very little finds of thawing down reporting in Hong Kong Fairmont to fail our team. And joining us now to respond to recent events in the u. S. China trade war and the larger Global Economy we are fortunate to have Richard Walsh Professor Emeritus of economics at the university of massachusetts amherst and the author of democracy at work a cure for capitalism professor wolff welcome back 1st lets recap you 1st on 3 credit the weeks events so far on the u. S. China trade war as we saw in china say the u. S. Must not raise the issue of their response to protests in hong kong and trade talks and President Trump seeming to take a dare and then suggesting the u. S. May do exactly that now we see a comic sanctions invoked over Security Issues from china in this conflict over time one has jet purchases are we stumbling into a scenario where the economic and Security Issues between the u. S. And china become entangled and more difficult to resolve. I think the short. Answer is absolutely yes its already happening it was involved in the taking on the Way Corporation and arresting one of their executives in canada at the behest of the United States and now you see it ratcheted up look both the United States and china are busy in hong kong and have been for a long time we spend it one way in the United States they spend another way in china but this is not a one sided event this is an event in which these 2 countries are jockeying for position i think it is very dangerous i think history is full of examples where the trade war ended up being a hot war a violent war a military war and in the in the todays conditions thats even more dangerous than it was in the past when we didnt have the Nuclear Capabilities we have now this is a fool hardy dangerous arrangement china is a major player in the world today this is not about whether you like them or dont like them or agree with their system or you dont they are a reality they are growing faster than the United States they are continuing to do that 2 to 3 times faster they will catch up either you come to terms with them or you try to block them and history is full of examples where that doesnt work the United States was a colony of england england tried to keep us that way we ended up having to fight a war the revolutionary war another war in 812 and in the end not only did the british fail the we have become much the bigger bigger economic unit we all understand that its now china playing that role and we should learn from our own history. And you know its interesting you some people have said wall when you call it a trade. War in past history week there were trade conflicts that actually became wars lets not call it a trade war but youre referring to a sort of reverse process where an economic conflict could potentially now its not unthinkable escalate into military conflict but moving on the trump administrations Economic Team over the weekend trying to create some doubt on the issue of whether u. S. Terrorists are increasing prices for u. S. Consumers or dragging on the u. S. Economy at all you go high lighted his Administration Every student who studies tower is informed in the university that a tariff is a tax the tax is put by the United States government on goods coming into this country in this case from china the bill for that tariff is paid by the American Importing Company not by the chinese and the American Importing Company can give the chooses a pass on the higher cost they have to pay the tower of to the consumer who will be paid all charge higher prices so its a question of splitting the cause between american businesses and American Consumers and itll show up if not immediately very soon its already happening and it is simply does on is to tell the American People you could impose a tax on american businesses and imagine that you will not be affected in your pocket book thats Wishful Thinking maybe for the election but it is straight out bad economics and getting a putting a number on these costs j. P. Morgan released a study this week that estimated the average American Family will pay at least a 1000. 00 per year for the trunk to be announced increase goes in in fact in december they say American Families are paying an annual rate of 600. 00 right now for the terrorists is that a reasonable bar ballpark estimate for that. I think so i think there is good. Making these estimates as anybody elses and so those will be the benchmark estimate but let me add or urge you to understand as well that its not just that well be paying higher prices when the chinese tip for tat impose tariffs it means americans for example soybean farmers cant sell in china because the tyra they have makes it too expensive for the chinese to buy soybeans from the United States so they move and buy them from brazil all k. Thats laws jobs and lost revenues for americans on top of the higher prices we pay so the losses are mounting by the way their own losses are mounting in china too but this is a lose lose game in which we should recognise we could really do better than this kind of scrapping around excellent insights as always from professor Richard Wolfe and were fortunate to have him here for the whole show so stick around because well get to some more topics later in the 2nd half of the show. Chinas. Chinas Ali Baba Group holdings has delayed its initial Public Offering in hong kong as protests continue to create turmoil in turmoil in the Financial Capital of asia the ecommerce giant was expected to raise up to 15000000000 dollars in the hong kong i. P. O. Now according to an exclusive report by reuters citing 2 people familiar with the situation ali baba is waiting till at least early october with hopes of raising not same 15000000000. 00 the timing will depend on the state of Political Uncertainty in hong kong and Market Conditions at the time the decision to delay the filing which was planned for later this month was made during a Board Meeting after the companys Earnings Report last week as protests entered their 11th week hong kongs hang seng index fell to 7 month lows. Time now for a quick break but stay tuned. Because when we come back Major Corporate titans are duking it out now as council is under fire yet again as they face a lawsuit from walmart argue correspondent Alex Mahela Mitchell standing by to break down the latest troubles for the electric giant and as we go to break here are the market numbers of a close. Cash cow and. Alfonzo among. Those chasing page changed servo or. His 1st words were at long last year a challenging post youve got to use to me as. I have no doubt that what happened was scriven. Thats causing trademark it is a 1000000000. 00 industry these companies have a huge financial motivation to sow these products there are numerous stocks showing that doctors were keen to test facts right concentrates free insights of its own that Patients Want gives them doctors the wrong to quite long term stuff why they would keep me from secure doses day. And people still die i dont know which question or so i tried being hard to leave when so many have. Seemed wrong. One old rule. I mean you get to shape out these days you can stick to it and engage with equals betrayal. When so many find themselves worlds apart we choose to look for common ground. Welcome back u. S. Based Global Mega Bank Goldman Sachs is reportedly making progress in a big play for a role and the anticipated largest initial Public Offering ever the Financial Times reports that saudi aramco was responding favorably to wooing efforts from the banks chief executive and other top goldman officials the f. T. Cited former champ and ministration official dina powell as a central player in goldmans efforts even as Company Officials hasten to emphasize the team aspect of the Charm Offensive the times points to his palace fluency in arabic and birth and egypt leverage by diplomatic experience including her role in organizing u. S. President Donald Trumps visit in 2017 to saudi arabia as key factors in goldmans apparent progress before an initial attempt at a saudi aramco i. P. O. Was postponed goldman had been notably left off of the list of banks nominated by the company for a loop which a role in the venture while rivals including j. P. Morgan chase and Stanley Morgan were included since then goldman has built bridges with a role in issuing a ram co bonds. Germanys sold 30 year bonds with a negative deal for the 1st time in an auction on wednesday this means that investors will get back to less than they paid if they hold the bond until maturity germany borrowed 824000000 euros bonds are sold slightly above face value so when they reach maturity in 2050 they will only pay back 795000000 euros bond yields have struggled amid worries about the Global Economy and Central Banks easing entrance rates german 30 year bonds are down 28. 00 basis points in august likely setting the stage for the biggest monthly drop since 2016. And back now for a 2nd round of insights on the stories of the day is richard was Professor Emeritus of economics at the university of and in amherst massachusetts amherst and the author of democracy at work a cure for capitalism so round 2 lets go to this boom what of talk in the u. S. Recently about a recession the white house seems to be spooked despite all the noticeable effort to push a positive spin but at the same time some companies you might expect to be good indicators of the core health of the u. S. Economy home depot lowes and discount real terror target filed strong Earnings Reports in a sector that used to seem to typify the hollowing out of the u. S. Economy target stock jump jump nearly 20 percent on the news what do you make of this surprise signal of apparent strength and u. S. Retail. Well im not surprised and i let me explain why we have basically a tradition of dividing the economy into what we call capital goods those are goods produced for other Companies Used as inputs in production and consumer goods those are the goods that you and i buy to consume and to sustain our lives the economy moves from one to the other whats been slowing us down is the decision by businesses that the future looks grim for the American Economy so theyre not investing theyre not buying crap at all goods machines equipment vehicle fleets things like that thats why the automobile business is in such trouble meanwhile it takes normally a little bit longer for the consumer to feel the same pinch and we have had a higher employment rates so consumption what you see at target or home depot all is still ok because it hasnt yet caught up to what is clearly going on in the capital goods sector when you add to that the severe economic downturn in your. Rope in china in the latin america it is really now pretty certain were going to have a recession and the great anxiety of the trump administrated which explains everything theyre doing is theyre desperate feeling that if that we say shouldnt comes in the let 6 to 12 months mr trump can kiss his reelection goodbye so they have to do everything to deny it and to delay it. And speaking of corporate earnings and shifting to the economic epidemic of inequality in the u. S. In this new gilded age study this week from the Economic Policy institute found that in the 40 years between 178 and 2018 after inflation average pay for corporate c. E. O. Is in increased by 1007. 5 percent while the median workers wages grew by 11. 9 percent the report says c. E. O. s are getting more because of their power to set pay not because they are increasing productivity or specific high demand skills the economy would suffer no harm if c. E. O. s were paid less so professor will give us a ballpark sense of how much the increase in pay for ceos overshoots on the increase in productivity and how much increases in worker pay may under reward increases in worker productivity over that period. Well basically let me tell you a story as a way of answering i know a good number of c. E. O. s including some at the very top of the American Industrial hierarchy even they and even after 2 or 3 martinis would never claim that their productivity has increased a 1000 times whereas the average productivity of their worker has increased 11 percent thats crazy what ever may have happened to the productivity of the people who run our industries we could not have survived the last 40 years if the productivity of everybody hadnt gone up with the addition of computers. With the addition of robots with the improved education and so on and so forth it is clear that the c. E. O. s like the dividend receivers who own the stock have been able to line their pockets with the growth of the American Economy and not share that with the vast majority of people look heres a simple statistic in the 1960 s. And seventys top c. E. O. s got about 30 times what an average worker in their business got today its 270. 00 times there is no way to explain that in terms of productivity thats the power to take a large amount of money which the c. E. O. s have found and have you this is a system that rewards the people at the top and the real question is whether the rest of us will continue that lopsided arrangement which is not to our advantage thats the earning burning question in certainly here in the 9th United States and aggressively for the world in this 21st century globalized economy experts insights as always from Richard Wolfe professor of economics emeritus at the university of massachusetts and person thanks for joining us. Glad to be here. And there is once again trouble in the news for tesla as its relationship with walmart goes up in flames walmart is suing on most company alleging tesla solar panels caught fire at no fewer than 7 Walmart Stores between 20122018 archies alex mahela bitch going just in toronto with the latest alex tesla and walmart have been partners in clean Energy Tell Us why it is bon as a now apparently going up in smoke. And these 2 companies were tight that one point were talking about 240. 00 walmarts with tesla Solar Systems built into fuel them also walmart ordered 45. 00 of the new semi trucks that tesla is building the electric semi trucks which everybodys waiting to come out of c. N. N. This is that you know it was that was a really Good Relationship and now this is all gone downhill and its because of a bunch of fires this is what walmart is alleging theyre saying that there were a lawsuit alleges breach of contract gross negligence and failure to live up to industry standards now theyre saying this because 7 walmarts were set ablaze basically and theyre saying by these solar panels built by tesla the problem is this whole system for some reason wasnt only faulty to a certain degree according to walmart but also the upkeep was faulty that these the technicians that were coming werent trained properly to take care of the systems that were in place so walmart is coming out screaming theyre saying theres millions of dollars worth of damage here they even told back in 2018 they told her you know what shut these babies down we dont want the working anymore we dont want to have anything to do with this because of these fires that are starting up and even when they were shutdown what walmart is saying that in california it actually yuba city california one of these things after they were shut down these still started a fire like i said millions of dollars worth of damage and when you get news like this even though were just looking at allegations at this point how well you know tesla must be shaking a little bit in its boots right and weve already covered some of the past problems with tesla products bursting into flames their cars and we joke that perhaps the production lines of the cars intersected with the boring flame throwers somehow but given those past problems in p. R. And legal and with as he see how does this latest kerfuffle really doesnt. Make things that much worse for the company all Things Considered well you know what i know no better way of explaining this than through a chart look at this and this basically tells a story of how slow whats happening there right now so the stocks had some major up and down in the downs of the past 52. 00 weeks they hit a high of 380. 00 at one point now looking at a low of 17699. 00 this past spring and just at the heels of this is now we saw about a dollar dip today from 225. 00 you know the stock was kind of moving around up and down but not by by too much its a big problem obviously and just this past sunday elan musk came out and hes talking solar hes talking about private solar for residential customers that you know of now they could rent these solar panels for about 50. 00 a month in 6 states instead of buying them flatow but who wants solar panels that are legit lee blew up in flames obviously this is going to be bad news for tesla bad news on top of bad news that theyve already had with solar panels at the height they were building a boat 200. 00 this is 200. 00 megawatts in one single quarter this 1st quarter in 2019 it was down to a mere 29 megawatts so news like this obviously not great and the fact is you know you mentioned something daniel cars like a book you know how slow they look sleek theyre great and everything but within the next 5 years every manufacturer is going to be rolling out the electric vehicles and when you have powerhouses like audi b. M. W. Ford did nice said toyota except youre rolling out these things tesla is going to have one battle ahead of it and now its soccer only be in the car business is also going to be in the solar business it looks like shedding light on a hot story r. T. Correspondent alex mcgill of edge thanks for joining us. Thank you. And life in College Campuses in the United States is about to get much easier for students self driving robots from starship technologies are preparing to deliver pizza sushi products from starbucks and just about anything else a main need with the exception of all kohol but company has formed a partnership with Food Service Companies like sadak so encompass groups that operate on many campuses throughout the nation and new university of pittsburgh and Purdue University are joining george mason and Northern Arizona university and having access to robo deliveries the Company Hopes to provide Delivery Services on 100 campuses in the next 2 years students can use the companys out to order goods busy at all hours and can pay with their meal cards the delivery fee will be between 1. 00 and 2. 00 and delivery times are roughly 30 minutes. Thats it for this time you can catch boom bust on direct t. V. Channel 321 dish Network Channel 2 any or streaming 247 on pluto t. V. To free t. V. Temp channel to 79 or as always put us up at youtube dot com slash boom bust our to see you next time. So what weve got to do is identify the threats that we have its crazy for indication let it be an arms race in. Spearing Dramatic Development only mostly im going to resist i dont see how that strategy will be successful very critical time time to sit down and talk. Why a paradise with some ground turned into a round the experimentation field but agricultural chemicals we know that these chemicals have consequences they are major irritants theres no question otherwise why would that the Chemical Company workers themselves be geared up that suited up locals attempt to combat the on regulated experiments that often in day 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 this because the people have less political power. Oh the. Number one of the many Little Things you know i mean if you let it was. Canceled a state visit to denmark after calling remarks by its Prime Minister announced you have rejected his offer to buy greenland adding the proposal was absurd for. Antiwar campaigners revealed the extent of arms sales to the saudi Like Coalition since the start of the war in yemen in 2015 and. Also this hour Aid Organization oxfam launches out of g 7 countries ahead of their summit this weekend it accuses their policies of driving global and appalled. The quality how to increase the last year. Well. As was growing. Poor start
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