Well this of course is more positive than what the president said on tuesday when he indicated that a trade deal might have to wait until after the 2020 election wed be clear here every time the president says that the trade deal may take a little bit longer stocks take a dive which didnt requires the president to say that a deal was close or the talks are going well in order to bring the market back up and thats exactly what happened on wednesday after the president made his statement to reporters at a meeting of nato leaders in london say the president said quote discussions are going very well and well see what happens and then sure enough proof like magic stocks rebounded on wednesday as the president also indicated that the 2 sides are closer to agreement on how many tariffs would be rolled back in the states one of the deal and another trade deal on the horizon the Japanese Parliament on wednesday approved a trade deal with the United States which was negotiated by the 2 contract leaders earlier this year the deal which cut tariffs between the 2 nations will go into effect. At the start of 2020 after the deal was made between President Donald Trump and japanese Prime Minister shinzo abbay in september the us president said the trade deal will open the door for 7000000000 dollars in u. S. Beef and Agricultural Products to be sent to japan with tariffs lowered or removed on beef pork wheat cheese corn and wine now in the deal a 2. 5 percent tariff on japanese vehicles will still remain in place japan is currently americas 3rd largest trading partner for foreign products importing roughly 14000000000. 00 worth of products per year now joining us to discuss the latest in the u. S. Trade is Richard Wolffe professor of economics at the university of m. Hurst and host of the economic update professor wolf it is so good to have you here today. I want to i wanted to start with this trade deal between the u. S. And japan because i couldnt help but think about the fact that the Obama Administration had to go she did the Transpacific Partnership which did include japan but it was widely disliked by the Labor Community and members of his own party due to some not knowing what was in the deal due to fast track but is this deal to go should by President Trump a better deal for the u. S. Than the Transpacific Partnership. No the simple answer is simply no let me explain in the t. P. T. That was negotiated by obama which had a lot of problems its not a question of liking it or disliking it when trump withdrew from that unilaterally the other countries didnt they went ahead and Canada Australia and they have very important in these meet and beef movements they all stayed together and that put the United States as an at a disadvantage because the t p p that they stayed with lowered the terrorists on for example canadian and australian beef into japan all that these new deals have done is give the United States back to get them back. To where the other countries are its a kind of a catch up by mr trump so he can look like he wont make deals like t. P. P. And then when all the dust clears all hes done is made a private arrangement with japan to get the United States back to where it would have been anyway if it had stayed with a t p p this is a classic game in which your posturing as being mr tough guy who doesnt go along and then quietly later on making the deals to go along after all so professor voted take a macro look at this trade deal especially with what happened there with the t p p and now this unilateral deal in your opinion or just factually are you know admiral deals generally worse than a multilateral deal like the t p p. No it varies depends on whats in these 2 agreements theres no necessary better or worse its a question of how you work things out the more the economy is globalized which has been going on now for decades the more reasonable it becomes to get a deal once and for all get everybody around the table and kind of work it out otherwise every time you negotiate a new deal one on one with another country all the people you negotiated with last month or last year feel that they have been left out that they need an update now you have to renegotiate everything its a chaotic disorganized system so in general folks prefer the general agreements its harder to get the agreement but you have more Something Real to hang on to and remember farmers and businesses have to plan months years ahead they need this ability which are one on one arrangement would be almost certain to on do so mr trump postures the tough guy whos not going to go along and not going to be cheated but what hes actually doing is introducing the very uncertain t. That is. The problem for so many businesses which is why they are so questioning im being polite here what the president is doing lets move on to the china u. S. Trade talks and i know you have a lot to say about this on tuesday the trouble in the strait and said might have to wait until after the 2020 election for a deal to get done and then of course on wednesday change that the president said as i just mentioned the talks are going very well so heres the thing professor are we in a position now where as weve talked about before there really isnt going to be a significant deal either way a lot of this is just posturing by both china and the u. S. Ultimately but is this a game being played to kind of game the stock market because every time he says no deal he goes down and so hes got to bring it back up and if he essentially artificially pumping up the market to make it look like the stock market is doing well. Well i think the way to understand this is to focus on your 1st point where i think you really hit the nail on the head nothing fundamental is going to change the chinese have a model that has given them Economic Growth that is the envy of the world this year they will grow 6 plus percent the United States will go 2 plus percent it speaks for itself theyre not going to change something that has worked so well for them so that they are now the number 2 economy in the world is simply not going to happen mr trump cant make it happen and it isnt going to happen so what were left with is a Little Details here or there yeah theyll cut a tariff here theyll cut another one theyre each side will claim that they stuck to their guns and they really did well thats for their domestic Political Support but were watching shadowboxing game here that isnt real nothing fundamental is going to change i think this stock market stuff is stuff that nobody else cares about the people playing the stock market see an up and down they can make some money there but the president is busy playing a political game hes trying to get reelected and hes trying. To keep the attention on him not his impeachment not his problems but where he can posture as the savior of the American Economy and fighting the chinese and all of that drama is positive for him especially given the problems his actual situation creates for him here in the United States professor wolf sticker on the theme of china theres the big nato summit going on right now in london and the need to secure a 5 g. Communications came up during the summit which of course brought up the issue of Chinese Telecom giant weiwei now President Trump said when asked about the use of y. Y. Tech in 5 g. Implementation i do think its a Security Risk its a security danger i mean weve talked about this before but it is the u. S. Is going to continually be left behind as they make these points about why our way over and over again to try and get back at china. Absolutely it is a process in which i think we will all be looking back at mr trumps regime and saying this was a time when the United States economically speaking was shooting itself in the foot this makes no sense why way announced over and over again what everybody who knows about Technology Already knew which is they are the leader in 5 g. Technology theyve been mad for a year or 2 now theyve now produced their own smart phone with no us components theyre racing ahead every other country was making deals with wild way its a kind of peculiar argument this National Security argument until the chinese caught up and surpassed the United States everyone in the world was using u. S. Equipment and they were worried about the National Security implications suddenly when the chinese are a real competitor everybodys worried about the National Security implications the weiwei has promised and many European Countries have accepted this promise that they will not do anything that is not understood by the west and accepted by the west that is the deal. It has to be made by them and they would be selfdefeating if they undermine their own deal they need to grow all they want the world as are our system or just as apple and google and amazon do and thats the real driver of whats going on the host of the economic update professor Richard Wolfe thank you so much for joining us today. My pleasure thank you. But we are now only hours away from the saudi aramco i. P. O. Price is being locked and so far what has been billed as what could be the Worlds Largest i. P. O. Has not disappointed the summer 4th is the end of the Book Building process thats for allocating shares to institutional buyers were talking about Asset Managers insurers and Pension Funds well so far the institutional tranche of saudi aramco as i. P. O. Have been almost 3 times oversubscribed receiving orders worth 189000000000. 00 reals which is worth about 50000000000. 00 when i say it again the saudi aramco i. P. O. Has been 3 times oversubscribed oversubscribed is the term for when i. P. O. s demand is greater than the number of shares issued typically i. P. O. s in saudi arabia tend to be subscribed many times over although the unprecedented size of a saudi aramco listing means its harder to benchmark the level of demand around co as previously said that point 5 percent of the offering will be allocated to Retail Investors and would leave about one percent or 2000000000. 00 shares for institutional buyers again this deal could be the worlds biggest i. P. O. If it tops the 25000000000 dollar listing of Online Shopping site ali baba well meanwhile speaking of oil opec says that it expects to deepen production cuts later this week but still has to get agreement from allies like russia which is not a part of opec and instead is part of a grouping known as opec plus opec plus has been curbing output since 2017 trying to counter the oversupply as a result of booming output here in the u. S. Which has become the Worlds Biggest Oil producer and will not be taking part in these cuts. Time now for a quick break but hang here because when we return there has been a major shake up in the tech sector as google continues facing heat from regulators to do walk ins of Simpler Trading joins us just after the break to dig into the recent moves and how a trust threat may have played a role plus a new space for. This is heating up but with some new actors and with some new goals are to correspondent. Helps us understand how companies are racing to launch their own stellar explorations as we go to break here the numbers at the close. In a world of big. And conspiracy its time. To dig deeper to hit the stories that Mainstream Media refuses to tell. We need to be smart we need to stop slamming the door. And shouting past each other its time for Critical Thinking its time to fight for the middle for the truth the time is now for watching closely watching the hawks. They put themselves on the line they did accept the rejected. So when you want to be president. Wanted. To go on the road this is like the 3 of them or people. Interested always in the waters in the. City. Up until recently politics were about policy preferences and ways to implement them that is not the case today your political views are now what define you as a person and there is a moral dimension bias against those who are not politically correct is the last acceptable form. Of discrimination this is the end of. The European Unions tendency to believe that. It represents europe has long been a major gripe for russia but as the e. U. Experiences significant internal difficulties it is started to reassess what it is and what it stands for what does that process mean for the countries sharing the continent with. One major shift at google as the companys long serving c. E. O. And president are both stepping down from googles Parent Company alphabet larry page and sergey brin are stepping down as state and federal regulators along with the department of justice and congress are taking a look at googles possible abuse of privacy practices and whether antitrust laws are needed to curb their market power as we reported google is facing a heavy scrutiny here in the United States but has received several enormous fines in the for violating privacy standards page in britain they have already disappeared from public view at least in the role of Company Representatives and it will be no surprise that sunder shah who acts as the chief executive of google has been groomed to take over alphabet so hell run the whole the u. S. Semiconductor giant qualcomm says it will appeal a south korean courts ruling on wednesday to uphold 873 1000000. 00 fine over antitrust concerns the time really was initially imposed by the Korean Fair Trade Commission in 2016 citing unfair Business Practices regarding patent licensing and sales of their mobile modem chips the fine in question was the highest ever levied by the k f t c judge no tape of the soul of the High Court Says in its ruling the defendant exerted a significant influence over mobile phone. Manufacturers either through unfair relationships or making them depend on the dependents supplies of my modem chipsets qualcomm continues to face antitrust suits throughout the world including one by the Us Federal Trade Commission now ben i actually want to bring you into this conversation because we just had those to begin to address stories and youve been covering this for quite some time and it appears were hearing more about these maybe theyre not more actual suits but were hearing more about it in the news why are we seeing more and more about this of these unfair competitive practices being like publicly yeah i think i think the question is do they ever actually become suits or are they just threats write veiled threats about size look Tech Companies have done something that really has not happened in a very long time if you go back to the original purpose of antitrust all the way back to Teddy Roosevelt right antitrust was done in order to bust monopolies and to create fairness in the marketplace we really havent seen companies expand the way that Tech Companies have until recently and so what happened with these Tech Companies is they arent just massive Tech Companies theyre in the everything so we talk about google right being involved in health care and google being involved in the Cloud Computing amazon being you know not just an online retailer but also doing a department of defense contracts the bottom line is these companies are enormous and theyre in so many areas and the thing they have in common that needs to be broken up is the tech part of it the fact that they have all this essentially data on consumers and theyre using that data to transfer across industry and across companies and i think thats where youll see the break and now weve weve seen you know these big fines but for a company like facebook or google or even qualcomm who is one of the largest chip makers in the world you know they dont do anything they dont hurt the company because it doesnt bother their bottom line in fact facebook had set their money aside so what is really going to be done to affect these companies yes the fines are a joke the only way you affect them is to either break them up or to ban them in certain countries in fact what i would say is that the fines are actually a positive if youre a google or an alphabet or you know the. Look you benefit from fines and the reason for that is because it essentially creates a system where you dont get competition necessarily coming in because competitors cant pay the fines but the behemoths can so that so the fines are actually positive for you because you set aside as you said facebook sets aside 4000000000. 00 as we can pay fines on the giant bucket of money but your competitors cant they cant come along and do that well this is interesting were going to follow because we see more of this more and more of this every s