Transcripts For RT Boom Bust 20240713

And. This is boom bust broadcasting around the world and covering all aspects of our Global Economy in the 21st century and im. In washington filling in and heres a look at what we have on deck for you today. You know the push to see china and europe also share the same rejection of the trade war in which everybody loses. As the u. S. China continue their poll long traits that the peoples republic has look to your business professor Richard Wolfe joins the program today to sift through the latest developments in what trade and what the latest. Element for the state of the World Economy class. Bring back professor while for. A few 1000 for the sake of the Macro Economy in the way of increased trade tension and what the chances are for a recession and states and abroad and later as u. S. China tensions continue on the rise tech programs have found themselves in the crosshairs christiane is back on the show today to bring down her bring down how video sharing app and tick tock has come under fire in congress so many stories with so little time lets do it. The prospects of the United States and China Signing a phase one trade deal may have to wait at least beyond next weeks bric summit in brazil the South China Morning Post is reporting that sources close to beijing say president xi jinping this trip to americas may be too soon for the 2 sides to prepare all of the particulars needed to finalize that portion of the deal officials from both sides have been working to find a location and date for a meeting between President Donald Trump and she since the cancellation of the apec summit in chile which was set for this month meanwhile chinese officials on wednesday offered an olive branch to india over the Regional Comprehensive Economic Partnership saying the trade pact would open the door for indian exports at the 11th hour india exit of the trade agreement between the asian nations which may be the Worlds Largest trade deal citing a lack of benefits for the country Chinese Vice Foreign minister leo chang said while theyre moving forward with the deal indias concerns are not going on heard. So there wont be any problems for the 15 parties assigned the next year we are also considering the concern of india we are taking an attitude whenever india is ready it is well to get on board. Amid tensions with the u. S. China appears to have found Common Ground with fruits and a recent meeting between leaders from the 2 countries is increasing hopes for a more global stability and trade argues Rachel Blevins has the details a trade deal has been made but its between china and france and its not clear yet if the United States will follow suit during a meeting in beijing on wednesday but leaders from china and france approved 15000000000 dollars worth of commercial agreements that include the fields of finance aviation and Environmental Protection chinese president xi jinping praised the talks and so they helped give a booster free trade. To focus on the long term cooperation between the 2 countries and large scale projects making the new consensus in agreement reached by the 2 sides. Energy Aviation Aerospace the progress between china and france comes at a time when there is hope for phase one of a trade deal between washington and beijing that could mark the beginning of the end of a 15 month long trade war french president emmanuel mccrone said he hopes his visit to china will help increase the chances of a deal with the u. S. Joint or in your share the same feeling to trade war only results he loses just one which is the only way in discussions between china and the United States to repartition tensions and taking into account the interests of the great commercial partnership between china and the European Community the talks in beijing also resulted in a deal between the European Union and china and which they agreed to protect 100. 00 european regional food designations known as geographical indications in china and 100 chinese geo. Indications of you now in china also renewed its commitment to intensifying International Efforts in the fight against Climate Change through the 2015 paris climate agreement this comes as washington announces that it will formally withdraw from the agreement and when commenting on Environmental Action mccrone appeared to take a shot at the u. S. Regarding the struggle against Global Warming he designed we have been consistently moving together for years very effectively with a lot of engagement you dont get to prove the choices that some others have made but i prefer to look upon them as marginal value because when showing that europe and russia Work Together the isolated choice of somebody what i was going to change global agreement is a good approach meanwhile the u. S. And china are still the siding on just how much they are willing to give up in order to finalize phase one of a possible deal as the losses from the trade war between the worlds 2 largest economies start to add up to tens of billions of dollars reporting for boom boss blevins artsy. Foundering zinc face says the Chinese Telecom giant doesnt need the United States as he sees washingtons campaign against them as ineffective mr ron told the wall street journal we can survive very well without the us we dont expect the us tour move away from the entity list they may as well keep us there forever because well be fine without them he went on to say hes not concerned on us trade talks us china trade talks that is with virtually no business dealings in the United States and no confrontation with america mr on said he would welcome a visit from President Trump now or in the future this while wall way confirm the Telecom Giant is not yet directly engaged in conversations with any u. S. Companies over the firms proposal of selling its 5 g. Technology in september mr wrenn offered was always 5 g. Patents licenses codes and even a know how to u. S. Companies for a one time sale he confirmed there are currently no companies talking to while we directly because. As middle men who have come to talk do not necessarily represent the big u. S. Companies this is a big and difficult introduction meanwhile during his visit to china french president emanuel mccrone also raised european concerns over chinese tech but thinks while way is right to invest in 5 technology. That is one of the stillness i think were always right to invest in 5 g. Not because its the technology of the future i think there are lots of european telecommunication operators that buy wont play very happy with it while way ericsson and all the others are providers and i am simply saying that at some point in some part of our network its an issue of sovereignty so on the top piece without targeting any company the state must have a say european states must have a say thats completely normal the same way china has a viewpoint on the technology of. Global markets are hopeful that the u. S. And china will reach the phase one to trade deal by the end of this month but will it be enough to relieve these economic tensions for more we bring in professor of economics at the university of massachusetts amherst Richard Wolffe richard thank you so much for being with us today lets dive right into this president xi jinping is scheduled to travel to brazil next week now this is seen as the next possible chance for him to travel to the United States to sign that these one deal but as bret mentioned earlier a source close to the matter is saying that it might be too soon is it. Yes but i think theres more going on it could be too soon but you know if they wanted to bed and. They would speed up the calendar i think theres Something Else going on here 2 things one. The relationship between china and brazil is extremely important to both those countries and in a way i think theyre sending a message to washington that if its going to be the odd man out if the trumpet administrations war trade wars with everybody are going to continue theyre going to get along real well without the United States just as mr monk craw is saying in france just as the head of weiwei was able to say for his company and i think that the mission to brazil was to make sure that the whole world could understand the chinese and the brazilians have other priorities and if the United States does not want to engage them theres plenty for them to do with and for one another and now professor wolf china has been trying to get the u. S. To drop these tariffs 1st off to cancel the tariffs coming up on december 15th secondly to roll back some of the existing tariffs that have already been in place do you see this happening at all. Yes i think its been going on a little bit below the radar because you know the tariffs allow for exemptions lots of Chinese Companies have asked for exemptions and a good number of them have been given one or another kind of exemption in the United States so there is this ongoing game publicly mr trump is the tough guy whos getting the chinese to do more for america 1st thats his political theater thats what hes continuing the demand for fundamental china in these changes have been rejected by the chinese from day one and theyre just as much off the table now but heres the new problem the economic costs to the United States as well as to trying it are becoming a political problem here in the United States for mr trump who has enough other problems with his impeachment and so i think youre beginning to see and well probably see more of a shift in which mr trump hopes to get a publicist a boost by being making a deal with china because the benefits of the war on china have a pretty much been exhausted and thats my hope that will finally see what the whole world wants with an end if you like to this tit for tat trade war well professor even like you said even if a phase one deal is signed theres more to cover like these intellectual property theft issues structural issues the United States keeps arguing for china to change and that china will not its part of its government but President Trump has touted like youre saying time and time again the state of the u. S. Economy in part he saying that its due to his handling of the china trade deal that china trade war after and decides to remove some of the existing terrorists do you see any backlash. Well i dont really know and frankly as a professional. Columnist all my life and being a person in touch with my profession nobody with a handful of a few a very few believes that the u. S. Economy is great to begin with it isnt but even if you think its failure to fully strong the war the trade war with china is not the reason for it its strength if you believe it is this spite not because of the trade war which is a hurtful phenomena so my guess is were going to see a preliminary deal then were going to see more deals and suddenly mr trump is going to have to change the story from the American Economy is great because of the trade war now its going to be the American Economy is great because i ended the trade war the game here is to position himself as doing something significantly positive for the economy and the reality is nothing like that has happened and the recognition of it is making that war look less politically attractive now than at any time from the beginning where to remind you mr trump said these wars are easy to win and wont take long the truth is theyve taken very long and he hasnt won anything but well see if it is actually too soon next week up probably is but one trade deal will even be signed by the end of this month a professor of economics emeritus at the university of massachusetts amherst richard well thanks for your time but dont go anywhere for you has dont go anywhere because there are some key stories we want to get your take on in the 2nd half of the show time now for a quick break were having here because when we return we bring back professor wolf for his take on the state of the Macro Economy in the wake of increased trade tensions and what the chances are for a recession in the u. S. And abroad and later as china u. S. Tensions continue to rise tech programs have found themselves in the crosshairs christiane is back with the show today. To break down how video sharing app has come under fire in congress and of course as we go to break here your numbers at the close. So what weve got to do is identify the threats that we have its crazy for them to let it be an arms race is also an experience Dramatic Development only really. I dont see how that strategy would be successful very critical. If you sit down and. Join me every thursday on the all excitement and ill be speaking to us of the world of politics or business im sure both of those ill see that. Airbus has announced its plan to boost its jet liner production in china adding pressure to rival boeing airbus chief executive for a leader of Chinas National Development and Reform Commission of china signed a memorandum of understanding to build more single aisle and wide body aircraft in china we attach great importance to our Long Term Strategic Partnership with china and its Aviation Industry airbus is committed to serving this growth sector the france space plane maker is expanding its a 330 wide body Completion Center to handle its bigger model the a 350 their 1st delivery is slated for 2021 this all while lifting local production of its a 320 neo this is its 737 max competitor the airbus factory line is located in tianjin this is just 90 miles southeast of central beijing but this also comes as boeing has been forced to cut back on its production this is on its 787 dreamliner. Citing u. S. Trade tensions with china and the lack of demand from chinese carriers meanwhile boeing is looking at other potential asian markets india all while it continues to deal with backlash after 737. 00 max fatal crashes but boeing shares have had their ups and downs sense at 1st crash but they seem to be pretty resilient. The International Monetary fund has projected that the european economy will grow at its lowest rate since 2013 in the organizations latest Regional Economic outlook report the i. M. F. Predicts real g. D. P. On the continent will level off to 1. 4 percent this year down nearly one percent from the year prior but will see a bump to 1. 8 percent in 2020 growth year over year for the eurozone was just 1 point one percent that we can see and will growth rate as we mentioned since 2013 weakness in manufacturing and trade are pushing the numbers down in europe while the Services Industry throughout the continent remains strong dime off also suggested european officials make plans for a synchronized fiscal response that may be necessary to counter stagnating in this stagnating economy in the region now to break this all down and what this all means for the state of the Global Economy we welcome back professor Richard Wolffe author of democracy at work a cure for capitalism thank you for being with us again professor worth what do we need to know about the stagnating growth in the euro zone. It is a very severe problem the entire european economy and lets remember its one of the 3 or 4 great economic units in the world there are more people in the European Union than there are in the United States the total output of that part of the world is larger than that of the United States they are a major player what happens in europe ramified all over the world and so if they have a very severe low growth problem which they do and which this i. M. F. Report validates then its a problem for the whole world i would want to stress one thing coming out of the crash in 20072008 the European Union the countries of the union all of them to a greater or lesser extent decided that austerity was what they had to do they had lent money to bail out the corporations as we did here in the United States and having lent borrowed money the government did to bail out all those companies the government said oh my goodness we have all these debts so we have to pay them off we have to be very prudent so they cut employment and they were unable and unwilling to continue Public Services many people said this austerity will come back to haunt you its not the way to respond to a collapsed economy you should be doing the opposite what we see now is the i told you so moment for the critics of austerity and that should not be a lesson that forgotten because most people see another recession coming in europe in the world and then the same question will be posed how do you handle it and hopefully they will have learned the lesson that this crisis is coming now these slow growth rates are of result of what they did last time well and bring it back here to the United States Bloomberg Model that determines the likelihood of a recession in the u. S. But the night. 12 months shows that the number declined slightly to 26 percent now this is down from 27 percent but thats where it was early in october but according to that model recession chances are higher than they were just a year ago but lower than other points this year is this just a response to some of the positive movement that weve seen within these trade talks. No i think its a more fundamental issue look at the capitalist Economic System that we live with in this world today wherever it has existed for 250 years on average every 4 to 7 years it has a downturn we call them recessions if theyre worse we call them depressions downturns crises crashes we have a lot of words because theres so recurring that called a Business Cycle because it keeps coming back if the average is 4 to 7 years everywhere including the United States will do the arithmetic the last downturn was in 2008 and 9 if you add 7 years the outer limit were already overdue anyone who follows the history of capitalism knows were going to get one the only question is whether were going to get it in 4 months or 8 months and whats going on in america that has to be understood is that the single most important goal of the trump and Republican Administration is to postpone the inevitable crisis of capitalism until after the election otherwise mr trump goes down to defeat and so thats the struggle how long can we hold it off but the flip side of that is theres a danger the longer you hold it off the worse the downturn will likely be and that dynamic is the one that really ought to concern us absolutely professor wolf and i wanted to make a transition here that i dont think is too far off but i want to change the gears a little bit to what we have seen with we work and softbank facing backlash for banking back backing the Tech Developers like we work in other companies now the jeopardy japanese powerhouse reported its 1st quarterly loss in 14 years of 6500000000. 00 and all of this really stemming from the. Giant investment that they made into we work now is this a trend were seeing whats going on here is this an economic concern as we look at the Macro Economy. I think its a very important issue to keep an eye on and i cant answer the question nobody can whether this is the beginning of the great unraveling you know in the beginning of the mortgage or the subprime mortgage crisis back in the summer of 2007 there were some people who thought it was the beginning and there are others who thought no its just one of those events in the end we discovered it was the beginning could this be that beginning again you bet one of the most successful biggest richest japanese banks just made to call a loss a lead bad investments losing billions of dollars because they overreached and they blew away their assets on investments they should never ever have made is it an isolated event it would be is it the beginning of other discoveries were going to be making in the months ahead of investments that are going bad how bad will it hurt softbank who will suffer among soft banks customers because they have to cut back having lost so much on and worley and so on all those are the big question and i think youre absolutely right here professor wolf because we look at a place that has always made great Investment Decisions and now they really last year professor Richard Wolfe author of democracy at work cure for capitalism thank you so much for your time. Thank you. Social media tick tock which allows millions of users to watch 15 2nd videos is facing a federal investigation over concerns that its acquisition of another at the music really poses dish security threats christiane is in los angeles on assignment but filed this report for us. Take the Popular Video owned by chinas dance and apple is the latest social Media Company to come under heavy fire in washington in a hearing and titled how corporations and big tech leave our data exposed to criminals china and other bad actors take talk of apple both declined to testify at the congressional hearing tuesday which as the name stays is inherently biased and unnecessarily villainize the 2 companies the assembled group of experts at the hearing accused an apple of being a Cyber Security threat while currently stores user data in the u. S. Its Parent Company by dance is headquartered in beijing and analysts are alarmed that this may change in 2020 when china will fully Institute New Cyber Security laws these new Cyber Security regulations lay out precise instructions on how public and private Sector Companies both chinese and foreign must secure their networks for foreign firms this could mean switching to chinese equipment adopting international strategies. Beijing is it determined to become a Technology Powerhouse and these new regulations are meant to protect us manufacturers researchers and developers from Cyber Attacks Us Intelligence analysts have interpreted these new regulations to be a threat as it could potentially give china access to American Consumer data and profiles and as weve learned from Facebook User data is the precious currency of social media because of this tick tock is now seen as a threat to National Security take dog is now being targeted given its links to china as well as its surging popularity in america it was the most downloaded nongame. In the u. S. And 29000. 00 and the worlds 4th most downloaded nongame app last year. Responded saying tick tocks data centers are located outside of china in addition we hired a leading u. S. Based outside Auditing Firm which analyzed and its Data Security practices and we are committed to doing this type of audit on an ongoing basis while this in curry and to take talk is not a formal investigation yet it is happening while global tensions between china and the u. S. Are high as they are engaged in high stakes talk over trade technology and internet issues it is still unclear what the true focus and issues are hidden under the guise of National Security note that this was the same excuse used against huawei and now with congress as the new focus on targeting big tech it seems more and more like today were guilty until proven innocent. Social media giant facebook quietly revealed another privacy breach this time it involved approximately 100. 00 Developers Facebook structure of partnerships constantino is pop of announced in a blog post as part of our ongoing review we recently found that some apps retained access to group number of from ation like names and profile pictures in connection with Group Activity from the groups a. P. I. For longer than we intended this also comes more than a year after facebook crackdown on how much personal data 3rd parties could actually access major changes were made by the social media giant back in 20 teen following the cam bridge analytical scandal but still these 100 App Developers had access to users data through facebook private groups in the last 60 days the blog post said there was no evidence of abuse and while no specific apps were named he said they were primarily social Media Management and video streaming apps but no further details were provided for this time you could catch on youtube. See you next time. When i almost show same wrong. Roll just dont hold. Let me. Get to shape out this day to come out to it and engagement because betrayal. When so many find themselves worlds apart we choose to look for Common Ground. Time after time corporations repeat the same mantra sustainability. Transport sustainability. The more equitable and sustainable. They claim their production is complete. Companies want us to feel good about buying their products while the damage is being done far away. Cuckoos in the. Former twitter stuff with being. Critical of. The new year from. Being in washington will protect their identities is blocked in the u. S. Coming up on the program talking hate. Growth and. Racism by threatening to withhold treatment for people who. Control