Loan prime rate by 10 minutes to 4. 05 percent in an effort to ease Lending Conditions as n. P. A. Now warns that banks face a surge of up to 1. 00 trillion dollars in bad loans but chinas banking regulator and nouns that it will allow the countrys lenders to raise the tolerance for bad debts during the outbreak bad loans created during the crisis should not be counted as nonperforming loans as factories were prevented from reopening and workers were quarantined at home. Now apple i phone maker foxconn is cautiously restarting production at its main plant in china and warned on revenue guidance plans and vietnam india and mexico will continue operating at full capacity with expansion plans underway as it seeks to minimize the impact of the virus and now to give us the latest on the macro impacts is Todd Horowitz chief stratus above the trading so but we know already that apple rescinded its march Quarter Sales guidance and that the i phone i will probably be delayed so do you expect these issues to be trends. Tory are well they continue to plague china 34 quarters down the road given its high exposure both on the demand side and on the supply side. Were going to have to do it thanks for having back you know look i think that we kind of knew was coming and it really depends on you know how this coronavirus expands i dont think it will be much of an issue i think this is just another way of saying hey we might be small but because of that i dont know how much their production is actually being affected right now by this and i dont know if theyve got it in madrid ready to go so i think that it should why should sell fall out as Everything Else does and i think what youve seen especially going to apple they tend to try to get ahead of bad news 1st to get out of the way so they can all their stock to continue to rise kind of like you know under deliver and overall report under a new report over delivers what they try to do i think. Thats an interesting point because i feel like weve seen quite a bit of this and weve kind of heard similar analysis from different out analysts is that you know Companies Like under armor are already trying to get ahead of that corona Virus Outbreak and say oh this is going to hurt our supply chain its going to hurt our bottom line but in reality there were struggles elsewhere i mean do you agree with that whole sentiment across the board. I couldnt agree more i think that this is you know ive said for quite a while that were in the very early stages of recession so i get a krone virus isnt helping the thing but i dont think it has as much effect as we want to believe but i think youve got different motives behind saying whats different places are saying for example you know apple youve got. Or you know and you be there and you are preparing to slow down their sales so that doesnt hurt your stock too much or youre praying or maybe raise prices if you hear from the retailers that things are costing so again the whole thing to me is really a nonissue and of course that really tells you that as i do is look at the stock market is making you know high even today after being down almost 400 came back to close to you know somewhere near on change about the russell was up today well and its interesting too because when you look at tech and you look at apple and and you look at how the nasdaq is hitting record highs and really all 3 indices the major benchmarks here in the u. S. Are hitting those record highs pretty much every week at this point but it does bring in to the point to as you see that the micro chip sector theyre still doing great and you would think they would be hurt because their supply chain in china is hurt as well. Well again this is you know i think what happens is you just you get into these these ruts of trying to make sure that you stay ahead of things and i think that of again you look at whats going on you know where it comes from and we know that theres an effect but how really big effect that is and what areas does that affect all the plants and affect all of china you know again theres a lot of things that we dont know because we dont get a lot of great reporting out of china to begin with but again you would know if there was a real problem the markets would have a major sell off not you know not a 300. 9 ryback they would go and they wouldnt stop for a while if there was a major issues but the market is not recognizing that and for today. The market is the best sense of whats going on in the economy but in the Business World because were going to eventually we know the economy of the stock market split off or is that i think they are doing right now were seeing you know more delinquencies but also higher stock market now retail is the other sector that has been struggling very much this year with the outbreak but victorias secrets problems actually began way before the corona Virus Outbreak so l. Brands is finally selling a majority stake to a private equity firm for one by 1000000000. 00 so whats the story there and how well victorias secrets the brand evolve from here. What i think they 1st showed you look at the retail space itself the burger more is dead as far as im concerned and of course were going to kill again theres so much competition now you know victorias secret at one time was very special right it was a it was a big brand whether you were you know looking for it or you could afford it you know they were a little bit higher price and i think that is become the bigger issue is that now you know you can you let your fingers and walking and you can do all the shopping you want in 5 minutes ok and you can find maybe no secret label its exact same thing for less money so now we come back to a money issue and with people having the flexibility i mean theres a good amazon where you get to break buy anything on amazon so you can now have. More competition and theres nothing unique about many of these products which i mean again victorias secret was a big name but its become not a unique name anymore now lets talk about another major acquisition taking place right now between Morgan Stanley and today for 13000000000. 00 in all stock deal this deal comes right on the tail of the other merger between tall suave and t. D. Ameritrade so now at the margins in need entire trading and equities business becoming increasingly slimmer as p. S. Dropped nearly 30 percent last quarter why is Morgan Stanley choosing to invest particularly in this line of business. These guys are all doing the same thing this is a classic theyre trying to buy assets are trying to. Humiliate assets which is what schwab did and what Morgan Stanley is are now because what they really want is that they want debt money thats on deposit because even though Interest Rates are. Low right now and some days are no up again and the big with the brokerage business ok their money is made more on the overnight rate ok so they want to accumulate assets it creates more business thats why they can give away so to speak true trading and things like that because again their big ticket is that money on deposit and the way continue to turn over align them to also invest for you through them to get other things and get parts of the game but the you have the bottom line is its the money on deposit who they want to be bigger and bigger which youre going to see more and more of these small little boutique firms get bought now including put it all going to be consolidated very much like the banks are today. And i want to move to something a little more fun here Virgin Galactic is looking like the new tesla now more than tripling in value over the last 7 weeks despite being profitable and is expected to continue to lose money this year and in 2021 so just like tesla the short sellers are ganging up with Short Interest up 3100000. 00 in the last month or so is this going to be the next cult stock or do you just follow the momentum at this point and throw fundamentals out the window because i want to remind you of something they said they were going to be in space theyre going to have these commercial space flights by to in 2013 and now its 2027 even done it. This is very familiar and i get im not saying the markets are 1009 and all over again but these 2 companies right now the way that theyre trading are obviously trading and bubble territory you have the same pattern repeat which is what happened through the original bubble was that you had short sellers trying to push the market out because it could be of making money and then all of a sudden theyd force them up and theyd run him up and force the trucks out you get these ridiculous valuations ok i mean listen Virgin Galactic i mean you know Richard Branson smart guy great businessman got a lot of good things going on so i cant fault him but again you get that the street gets on momentum and they start chasing these thing and theyre like the mouse running after that right so i get i think again they were they were both the well overvalued at this point so either the markets in the gulf or theyre come back to make the market i think they both come back and hit the market some point but again when that happens i cant cite todd horace case tragedy trading thank you so much thank you. Will invest more than 1000000000. 00 in mexico over the next 5 years the companys c. E. O. Said in a video released by the Mexican Government on thursday. You know every aspect of all look in life is being transformed by computing we have an unprecedented opportunity to apply Digital Technology to create new opportunity in mexico as part of this investment creating a new Data Center Region in mexico to deliver a comprehensive intelligent secure all and trusted Cloud Services to help the organization really get an advantage and drive the Digital Transformation mexican president manuel andrus Lopez Obrador spoke about the investment in its daily morning address saying it proves the country is ready for more Foreign Investment now the president has faced criticism for his economic policies not attracting that it will decline in more than 10 years now this is really interesting that microsoft is assigned to invest in mexico because. Right now in america there is a huge shortage of skilled workers even though unemployment is currently at 50 year lows all the companies are actually complaining that the reason why theyre not hiring as fast as because theres no skilled workers there are no people that are up to do Software Development for High Tech Companies these days well and it seems like maybe theyre just trying to increase their market share by region get more in mexico as well as maybe get a little bit of cheaper labor not very cheap labor because youre still here skilled workers but a little bit cheaper labor than you had previously but it does look like they are expanding their to their footprint into data centers all over mexico which means cheap labor and cheap real estate as well time now for a quick break just on the other side has taken a dive but whats behind this long were going to delve into the dive and break down the outlook for the Going Forward and as we go to break here the numbers at the close. Like. When i was. Going to get my money even a. 10 year period of 0 money velocity were money has gone directly into the pockets of the few oligarchs in countries the doors of america and around the world in these silos like these under 25. 00. Dollar properties when they when the infrastructure for that starts to crack and illiquid he starts to see balance you get inflation for real for stuff like food and were seeing this happen now where people are noticing that the cost of every day living is starting to spike. Bob dylan once said money doesnt talk it screams former republican new york city mayor Michael Bloomberg is proving this just the sheer force of lavish spending has made him a serious contender to capture the democratic nomination ill be experiencing peak trump derangement syndrome. And welcome back the Trump Administration is continuing its Pressure Campaign against the hugo u. K. Regarding their decision to allow weiwei equipment in a limited capacity as a nation builds out its 5 g. Infrastructure u. S. President Donald Trumps acting chief of staff Mick Mulvaney spoke at the oxford union on wednesday saying the us is very much concerned about that decision mulvaney warned about the situation with regards to sharing sensitive security data adding we are very much concerned that the integrity of that information is hardwired into your Computer Systems and if you folks go forward with the decision to allow while way it will have a direct and dramatic impact on our ability to share information with you period end of story earlier this week we were joined by andy purdy the chief Security Officer with wildly technologies usa and he had this to say about why the u. S. Has been advocating against the telecom giant. The u. S. Is worried that china wants to take over the world so the u. S. A basically pushing back and part of this is related to the trade talks phase one so far but other phases perhaps will will come about so the u. S. Is basically trying to hurt china in terms of the compared. Of race rather than concentrating on how to help strengthen the u. S. Which has the best technology the best innovation in the world but is not on a pair to really drive forward and continue to increase if you miss the interview be sure to check it out on the portable t. V. App or youtube dot com slash boom bust our teeth joining us to discuss this story is who are for rich board member of the British AmericanBusiness Association hilary thank you so much for being with us today because now 1st off i want to go talk about this because the u. K. Is going to eventually get annoyed with us i mean we continually keep telling them youre making the wrong decision so you need to do what we tell you is that going to be a problem i mean just this overall demeanor that the u. S. Is going to have in towards the u. K. Well you know it reminds me of the movie 2003 actually you know hugh grant played the Prime Minister member was a scene in there which was like the big like oh yes here were not going to be bullied by the us so yeah youre right brained this paternalistic attitude does not go well in the u. K. And of course theres the insinuation that because the policy column and the Intelligence Committee did a very deep dive in terms of investigating huawei and those backdoor methods and they ruled that it is safe now one thing i will say the caviar it is we know that while way has only been stored in what are considered to be non essential places theyre not considered in terms of any of the Network Cards in the u. K. They havent been installed there they have not been stored in terms of any military bases and have not been stored in terms of any nuclear so i think theres a middle road here the middle road is the u. K. Is trying to appease china obviously theres a trade partner and that is using huawei in these nonessential sections of the Telecommunications Industry in the u. K. And yet theyre trying to oversleep try to not alienate the tribal ministrations so i think theyre caught in the middle but its almost insulting because the us is almost like saying like hey you guys didnt do your research or Due Diligence enough so its almost like a little bit demeaning at this point yes a journalistic absolutely to say yes see any scenario. These 2 nations wont be able to share security and Intelligence Data together due to disagreements over huawei i think youre right because if it isnt solved it definitely could escalate i think one thing thats an indication is of course as the 5 eyes agreement and that is the sharing of intelligence information between the u. K. Canada the us Australia New Zealand and just recently very recently the Australian Government cancelled a group of their polman tyrion that were going to be visiting the u. K. And instead directed them to the us so i think youre beginning to see a crack in that 5 eyes relationship if this isnt solved it will escalate yes and if we see any other movement from those allies within the 5 nations who have made moves towards us throw you know them or not not not none that i know of except the Actual Council of the polish meant ariens absolutely i want to move on to germany because theyve been also. In this holds that while we situate us president officially named Richard Grinnell who is the currently the ambassador to germany as the director of National Intelligence grinnell actually recently tweeted i think was on sunday that he spoke with the president and any nation who used unsavory Telecom Equipment huawei is what he didnt say but thats what he meant what he said any nation i believe in germany so where do you think see this situation going now in germany especially now that goodell who is the former ambassador to germany is now with the d. N. I. Here in the us well a couple of things thats why i think that mark was in the same situation and for once that Boris Johnson is which is shes caught in the middle she sees