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tv   Boom Bust  RT  May 23, 2019 8:30am-9:00am EDT

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well huawei is not without options in spite of the ban as the 2nd largest phone maker in the world qualities sheer size could create the one true competitor to i o. us as and dry as amazon had previously demonstrated with kendall building an android work devoid of google is entirely possible and with its millions of loyal fans all over the world holloway may realize i google isn't essential or even sun troll to the android experience on their phone. shows and qualcomm have been severely depressed following news they cannot do business with wally one of its biggest customers today the sakata hammered again as u.s. district judge lucy cove ruled that qualcomm used on lawful anti-competitive practices to license patents for modems use in mobile phones the lawsuit was filed in 2017 by the us federal trade commission mirroring similar antitrust claims made by apple apple and qualcomm reached a surprise settlement last month that called for i phone to once again use qualcomm
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modem chips ditching intel in favor of an exclusive deal qualcomm's exclusive deals with apple for close rivals and was cited it is a prime example of its anti-competitive tactics used to maintain its monopoly judge co is ordering qualcomm to change how does business warning it will be monitored for 7 years to ensure it complies. and while the trade or dispute between the u.s. and china left many businesses in a state of confusion and uncertainty and unexpected beneficiary emerges vietnam companies operating in china have been subject to increased tariffs on exports to the u.s. so businesses are making the smart decision to move manufacturers and production over to its friendly southern neighbor vietnam to commie has grown rapidly in the past decade but how much of it has to do with terrorists here to give us a story is richard wolfe professor of economics at the university of massachusetts amherst welcome richard. thank you glad to be here so we've seen an upsurge in
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investment into vietnam recently how much of it has to do with tariffs and how much of it is just the fact that they were cheaper minimum. well i think it's really more of the latter in other words with the is extraordinary economic growth in china let me give you a simple statistic over the last 20 years the real wage of a chinese average chinese worker has quadrupled that is it's gone up to 4 times what it was a mere 2025 years ago compared to the united states for example where the real wage is the same now that it was 20 years ago basically so you have an extraordinary explosion of wage costs as the standard of living of chinese workers goes up very dramatically and for companies both from chinese and foreign in china they looking always for the cheapest labor they began long before the tariffs to look around elsewhere in asia particularly for example in vietnam where the wages were and
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still are considerably cheaper now they have a 2nd incentive not only will they make more profits by cheap wages in vietnam but the united states has not yet put tariffs on the economic ease goods so that they don't have that problem either how long that will last anyone's guess. and what about the entire tech industry i mean vietnam is great as a great outlet for shifting manufacturing over in production cars basically anything that's related consumer goods but the high tech industry would like a lot of education allowed knowledge is there any way that they can minimize the fact that terrorists have on their business when they're forced to stay in china. yes there are many ways to get around the tyrus for example long before the united states even recognized the people's republic of china the quantity of goods coming into the united states labeled made in hong kong was incredible everybody who
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studied this understood that they were made in china shipped to hong kong reshipped out change the label and everybody gets along there are a lot of ways legal illegal to get around the tower of and i'm sure the chinese are clever have had a lot of experience in how to do that and a lot of countries around the world not just in asia but everywhere willing to cooperate because they then get a piece of the trade between china and the united states i would like to underscore of very very important thing what mr trump and the republicans and really the most the most of the american government are doing is playing in extremely dangerous game for the united states every company and every country in the world is watching an aggressive economic nationalism make it risky to do business with an american company or with anybody from the united states because you could be cut
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off suddenly by some politician who is looking to advance his career the way mr trump is a little me taking a step back from business with america cutting a deal with another producer was not an american even if that's not the best price because you don't have to worry about any history of politicians interfering in this dramatic way. a that has to be factored in or else the united states will look back on this period as a period of shooting itself in the foot. now professor wolf vietnam isn't it's a developing country but it's not a huge country especially can ride to the fore you know the principals in this fight us in china but you know when there's a spillover effect of capital seeking seeking other returns how much of that sort of spill off from the u.s. china fight how much foreign investment can be non actually absorbed. while it's limited you know it has a much much smaller population therefore
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a much smaller working class but vietnam is not the only country that chinese companies are looking at others include bunglers poppy ston indonesia philippines and then there's of the rest of the world so the chinese are now of global operation they don't depend on a neighbor like vietnam they have many options and you can be sure they're exploring the possibilities in all of them as they seek a variety of ways to work around the united states we should remember our history when we broke from britain is back in 1776 the british said about americans that they were cheating and they were upstarts that didn't work real well and when the americans pushed even went to war against them the war of 812 that didn't work either the united states is facing a real issue are you going to partner with china or are you going to try to squash
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it if you try to squash it and it doesn't work you will regret having chosen this path. and you know one obvious method to get around labor higher labor costs and terrorists would be to move your production sites of production we arrange your supply sourcing do you think that's enough those typical. those typical measures that have become easier to do since the ninety's certainly with this globalised marketplace is that enough for most businesses to get through even a really tough and prolonged trade war. it will be tough for some it will be manageable for others the big question here is the retaliation factor this has been the great that by mr trump and the g.o.p. in selling all of this to the american people it's a mistake when we do this blacklisting wild way blacklisting other companies interfering in 3rd parties you are giving
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a lesson to every other government in the world protecting itself from the affects of what the united states is doing by replicating it and that has together with all the countries that will be tempted to do it that will be disruptive to global supply chains on a scale beyond anything we see that's why i keep suggesting you're taking a step down in the economic nationalist path that is extremely dangerous and always an excellent insight from presser richard wolffe professor emeritus of economics at university of massachusetts amherst thanks so much for your time. thank you i'm glad to be here. officials at diligent bank already under fire for over allegations of failing busy to report suspicious transactions are now blaming a software glitch for some of those oversights a bank spokesperson said that in the fall of 2018 bank employees discovered problems and software installed around 2010 that reviewed transactions for signs of
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suspicious activity the bug blaming follows a recent new york times report that quoted anti money laundering employees at deutsche bank who said that ins 20162017 bank executives chose not to alert the u.s. treasury department to suspicious activity reports prepared by bank employees concerning accounts tied to president donald trump and his son in law jared kushner those ignored reports were prepared after reviewing electronic alerts similar to the ones deutsche and now says were blocked by a software glitch this news broke at the day before a shareholder meeting that was already expected to feature a controversial push from some shareholders for the resignation of deutsche bank's chairman paul. and the news has been reflected in their stock price. time now for a quick break but then your because when we return boeing is back under fire again this time from beyond america for us from china to europe r.t.
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correspondent alex my heritage gives us an aerial view of boeing situation and as we get a break here the numbers at the club. really there's there's not much happening in the global economy as a result of the u.s. trying so called trade war just to put things in perspective you know most things that are exported from china's the united states are exported as finished products the same holds true for most things exported from the u.s. to china so any tariffs on those products while they might affect price levels in
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the u.s. or in china and they might affect the level of trade between the u.s. and china they simply don't disrupt the global supply chain and so the rest of the world is hardly affected at all. we ought to shy to talk about to turn chinese navy into a blue water navy actually we have but it's clear that if i need a century. will be developed hopefully. some military. would even crude less the closer the chinese navy. lake says and see it forms part of a high altitude nature reserve. it's one of the
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famous indian easy is principle which a way starts its journey. and . it runs 300 kilometers from source to mount and there are over $200.00 industrial facilities ranged from. a madman your muscle. room to regain 4000 rice fields and supplies drinking water to 25000000 people. will get. so many possible that.
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there is more news about major brazilian mining company valley and their dangerous dams holding back waste at mining sites valley has warned residents of the town of by around. that the company's sole superior dam 8 miles away is an imminent danger of collapse and almost certain to do so by saturday about 1000 people have already been evacuated from the town with many others in the area on alert this warning comes after the collapse of a valley dam in late january killed 10. $270.00 in the town of burma do you know dolly employees were arrested on suspicion of murder after a judge investigating the human genome collapse discovered evidence that dolly was
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aware of the risks of a collapse at that site to bring with dino collapse occurred 80 miles away from the town of marianna where another dam operated by dolly another company collapsed and killed 19 people in 2015 at the time of that deadly disaster the company adopted the slogan marianna never again. more news on the u.s. opioid epidemic and unsubtly refer poured from a bipartisan pair of us members of congress alleges that the opiate manufacturers have corrupted the world health organization in order to prevent the w h o from taking actions that could lower sales one of the authors representative catarina clark of massachusetts alleges that the w.h.o. appears to be lending the opioid industry its voice and credibility and as a result a trusted public health organization is trafficking dangerous misinformation that could lead to a global. demick most more specifically the report cited the role of purdue pharma
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the maker of the infamous prescription opioid oxy conant and pushing the w.h.o. to issue the average advisory on opioid risk in 20112012 that use phrases and framing more compatible with produce claims and marketing strategies the report says those advisories contain dangerously misleading and in some instances outright false claims about the safety and efficacy of prescription opioids. boeing is taking a $12.00 punch from the east and west as asia and europe consider the possible return of the $737.00 max to their airspace there are calls for compensation from boeing on both continents and the distrust for u.s. aviation authorities is also rearing its head due to the plane's issues with more we're joined by r.t.s. alex mahela. alex welcome so thank you so before we get to the money let's start with the international concerns about boeing and the u.s.
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federal aviation authority what can you tell us. well kristie as you may recall you 1st accident that happened with the 737 max in the past year was in october and that was an indonesian airliner and then that was followed this past march march and 10th to be exact with an ethiopian $737.00 max nearly $350.00 people in total died in those 2 crashes so obviously countries like indonesia are a little bit hesitant when it comes to putting these airliners back in the air and it has actually said when it comes to the federal aviation authority in the states they are not really taking their word for it when they're talking about this new software that's supposed to help the plane fly better and not get into these type of accidents indonesia said it wants a 2nd opinion most likely from either europe or the canadian aviation authorities that are in this country so as you can imagine countries are not really set to jump on what the f.a.a. is saying and when we look at the f.a.a.
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itself right now its reputation is not really stellar i mentioned other countries are really looking at them as somebody that's willing to protect them because we know that boeing knew there was issues before these crashes happened and that's a big part of this whole picture and these things were f.a.a. approved now looking at the u.s. officials they're keen to keep this sort of status quo going were one aviation authority says something everybody else around the world follows and there's a couple reasons for that firstly if you have everybody checking these planes before they get up in the air that could be very very costly and of course they're saying and this is to scare you and me that those costs those costs will be passed on to the consumer people who travel so there's a lot of facets to this but as it stands right now both boeing. and the f.a.a. aren't the most trusted people or companies in the air or agencies for that matter . so it sounds like it will be a while before 737 max is get up in the air again meanwhile on the ground in the
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money situation china and other key countries are asking for compensation from boeing for the difficulties and controversies and all the problems resulting from the groundings over the past couple of months what's the latest on that. well as you can imagine that could be quite costly and i mean the 737 max was one of boeing's most popular planes ever and these countries were buying them up looking at china alone the 3 biggest airlines that one smaller airline it's a huge fleet of planes that were talked about air china we're talking about china eastern china so they're in a smaller carrier for airlines combined they have a boat half of the 100 of these planes that china actually purchased and they're saying you know they want to see some compensation for this and this not only them we're talking about poland we're talking about norway and as well as india saying hey we want some of this money that we're losing back in exports are some experts are saying this could cost boring to the tune of $100000000.00
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a month which is obviously a very expensive venture when you push it in that direction so i mean boeing for all the good that it's done in this world and this is one of those debacle that has caused the airline a lot of problems it was a small fix according to them it was something to do with software but as i mentioned nearly 350 people died once these planes go up in the air everybody expects them to be safe and once you have american aviation authorities saying that this is good to go countries around the world and their aviation authorities up to now have trusted their word now that has all changed and if this actually keeps snowballing in this direction just the way we fly might turn into something very different down the road. as you said this is absolutely huge breach of trust by the america aviation authorities so what can actually what can america do to rebuild and reinstall that trust. the only one what can america do is what america has to
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do if you want boeing to be a successful company the u.s. has to move forward in a certain way and that is to build trust boeing one of the biggest criticisms here of from countries like indonesia is the way the pilots are trained they're saying that you know what these pilots are trained in simulators on computers they don't actually take these planes up in the air and that's a big deal and for a navy aviation authority to be ok with that well you kind of have to scratch your head we're talking about people's lives here we're talking about people like you and me we're talking about the every day passenger of our viewers are to correspondent allison hair that's thank you so much for joining us. thank you. well actually in technology can be used in a variety of ways whether it is very crypto currency transactions monitoring the supply chain or even protecting patient information in the medical field but what about the traditional banking industry or spoke with swift head of capital markets and standards for the asia pacific region we saw o'connor during the hong kong week
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. of the bank it was set up over 40 years ago it is considered to be the oldest private cloud for the financial services industry we have 11000 members in our in our cooperative and those members all leveraged with services in different ways many people know swift as the payments company but in fact we do many things to our members can be corporates they can be asset managers they can be pros they can be banks and they leverage the network for many different things including payments treasury transaction securities transaction etc and on top of that we offer value added services things like compliance tools on top of the network also things that help with screening payments to reduce fraudulent transactions and we also offer consulting and services to our members notice will differ from the traditional. so we are owned by the banks so we are owned by the banks we have
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a very strong governance structure that's around us but the banks own us and they direct our activities we have a board of directors that is made up primarily the banks how does play into what does so from a certain perspective we certainly have done a lot of proof of concepts around. we started back in 2016 even working on a few of them we've done some research around where a chain from a technology perspective we said on the technical committee. standards organization level to look at the development of the technology but in general we've done proof of concept. or evolving those as we go but the idea is from a certain perspective not that flushing is always the answer just that it may be a technical solution that is part of the answer and what i mean by that is we always look at what is the business problem you're trying to solve so for example proxy voting is not very efficient business problem and then after that why do we
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want to solve it and what advantages put certain technologies bring to that and that's how we net everything together how do you expect it to grow moving forward i think that it's really interesting because swift from its its essence is really a platform company right it's a it's a platform of $11000.00 members and from a block chain specific perspective we are looking at applications in our own right that we might develop and we're also looking at how we might look to work with 3rd party so again back to that proxy voting example what we did was we worked with a 3rd party application provider who looks at everything in the proxy voting chain and does that on the d l t and stems and we looked at how we could bridge our messaging and our a.p.i. is and the use of international standards in that platform to make it most efficient for all of the people involved including the banks and the exchange that we're working with in that case how. can you mitigate the issues where you know i mean what i know of swiss is the controversy so how do you mitigate that with all
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the the broad work that you guys are doing i mean obviously there's the iran sanctions issue and i know i don't know whether you get into that or not but i mean just because what you're saying is this great movement within you know a group of banks using the block trade and everything but the problem is is you know the only media attention you see in the united states about swift isn't about the actual use of the product but it's about the controversy which is very interesting because actually we've been very deeply involved with the federal reserve and the u.s. working with them on their use of international. it's in the next generation a member form. and we've been very closely linked with a lot of i would think very good developments around payment systems in the u.s. but of course that's not the interesting stuff that probably gets in the news but i would say in general you know we're owned by the banks were directed by the banks and what they want to achieve. i know that as it relates to technology there's been
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a lot of buzz around swift as well in the press but i would say as it relates to cross border payments which is really the core of our business. there have been comments about swift maybe not be very fast in taking days to make payments that is the answer certainly in our opinion and in the opinion of our members that's not necessarily the answer because we've been working on payment innovations something called the global payments innovation. which is actually already today doing 300000000000 in payments today across 143 currencies so a lot of the challenges that have come from a technical perspective towards where i think the numbers speak for themselves. well thoughts are moving interview and there's of course so many. locations lot of stories coming out every day we were talking about one just before the show something hilarious that happened craig wright the self-proclaimed developer and
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create a bit quiet apparently tried to copyright this a toshiba paper as a national crazy. yeah but that's it by this time you can catch a boom bust on direct t.v. channel 321. or 27. or as always. google started. with a great idea and great ideals unfortunately it was also a very dark so. they are constructing a profile of you and that profile is real it's detailed and it never goes away turns out that google is manipulating your opinions from the very 1st character
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that you type into the search bar it will always be one dog food over another one comparative shopping service over another and one candidate over another they can suppress certain types of results on what they think you should be see if they have this kind of power then democracy is an illusion the free and fair election doesn't exist the more road we give them the sooner we are all. answering and. the end of flag money no money with flags on it or the orchard of a tate or royal good day. what is it calling. magic the new type of digital currency the centralized digital scarcity chancellor. of 2nd or bank that's called the
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genesis blog for reason calling it civil disobedience a source of optimism because i can control my own financial destiny it's just a new way of coming to consensus it's a game changer in the human history and this is columbus discovering a new world this paradigm shifting technology that transforms economics and finance in a heartbeat the apollo 11 landing. to the max and stacey. is a tense situation in venezuela is still all over the news the problem. in venezuela is not that socialism has been poorly implemented but that socialism has been phased only implemented for inside venezuela things are different we're going to announce sanctions against. venezuela so if you. have a supplement to. get out of that. battle so on the keep the
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mad moment the focus of the who story isn't new makes him cold henry kissinger to tell him not be tolerated in latin america an alternative economic and social system could take hold and therefore the policy would be to make the economy scream so wants now making the economy of venezuela screed.
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hidden dangers as they report claims hundreds of household items sold in the e.u. could contain a powerful chemicals. syrian army positions are targeted by johannes and province for use tanks and explosive packed vehicles at a simple rebranding exercises apparently absolve them and the west's eyes. and it's revealed democrats and the us have been spending twice as much as trump on digital campaigning for the 2020 race to the white house despite making a show of winning big money or.


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