Global Tech War and Auto Industry Prices

Global Tech War and Auto Industry Prices


[Music] this is will bust broadcasting around the globe in covering the world of business and finance and impact upon us all I’m Daniel Brito and I’m Kristy I in Washington here’s a look at what’s on deck today there’s a big tech news as Softbank group raises their investments in the sectors and manufacturers start to focus on reliable supply of microchips plus the latest u.s. growth figures are out and professor richard wolf is on deck to explain how we’re doing beneath the top-line growth figures and finally we’ll check in on the auto sector with the car coach lauren fixed as major players unveil a secret deal that emissions that may surprise you we have a packed show today so let’s go and dive right in japan Softbank group is rolling out a second tech mega fun even bigger than the first 100 billion dollar vision fund vision Fund 2 now has MoU commitments totaling a hundred and eight billion dollars in capital from investors including Apple Microsoft Goldman Sachs Kazakhstan sovereign wealth fund and Japanese banks Softbank itself is committing 40 billion dollars into the fund pending board approval the first fund led by the visionary Masayoshi Son delivered a stellar forty five percent rate of return to partners after fees on a net equity basis after successful investments in names like uber slack we work Flipkart and more he announced that this second fund will focus on investing specifically in artificial intelligence technologies around the world robotics and autonomous vehicles Masayoshi is known as a legendary investor with a penchant for pursuing out-of-the-box ideas under his leadership the first fund invested in 24 of the 377 global unicorn startups that are now valued over a billion dollars and in other tech news Apple confirmed it would acquire Intel smartphone modem business and a deal valued at about 1 billion dollars this will result in about 2200 Intel employees joining Apple’s workforce and is expected to close in the fourth quarter this deal is a win for Intel who is reportedly losing as much as 1 billion dollars annually in the modem segments for Apple this deal will allow it to have more control over its supply chain the broad release of 5g Apple is concerned that the only relating remaining smartphone modem chip supplier rival Qualcomm would control too much of the company’s supply of a critical input by moving production of the chip in-house Apple has now housed further control over the core chip design rival Huawei is also making headlines today as it released its first 5g phone make twenty acts in China and announced it will soon launch Smart TVs equipped with its own hongmen operating system this puts the launch ahead of schedule as analysts were expecting it to be available at the end of the year the 5g phone offers lower latency and higher speeds than the current 4G networks often 20 to 50 times faster [Music] the US Commerce Department says the economy grew by 2.1 percent in the second quarter down from the previous quarters 3.1 percent here to give us his take on this and other recent developments around the world is Richard Wolfe professor emeritus of economics at the University of Massachusetts Amherst professor wolf welcome back I’m sure you’ll have a lot to say about these latest growth figures the last four quarterly figures for perspective have been 2.9 1.9 1.1 3.1 and now this latest quarterly figure of 2.1 percent fill in the details for on the big picture for us of what this really means well it means several things number one these are disappointing results the American economy is simply not growing not as fast as President Trump promised it would not as fast as secretary of the Treasury minuchin promised it would it’s a demonstration that what they say and what they can do in the way of boosting the economy leaves a lot to be desired and it’s doubly significant because we had the greatest tax cut for business in history that was justified in December of 2017 on the grounds that it would yield much more rapid economic growth the second thing it tells us is that the trade war that mr. Trump launched against China after he did it also against Mexico and Canada and so on that this is having a negative effect not only on the Chinese and the rest of the world which it is but also on the United States and the third big aspect of this is that the Chinese announced a couple of weeks ago that their annual growth rate is a little bit over 6% that makes China growing three times faster than the United States and reminds us that they are catching up to us and it isn’t very far off before they will become a bigger economy so I think these are very serious reality checks on a lot of hot that ought to be deflated to face reality mmm and among those other predictions Larry Kudlow the White House economic height man predicted 3% growth and with these latest figures that result seems to be moving further and further out of reach but looking at the future trend for the US economy you took note also on Twitter of some very interesting data points from earnings report conference calls what do we see when we look into the u.s. economic future through that lens a lot of anxiety many of the biggest industries in the United States are watching let me give a few examples watching a downtrend housing is really off and that’s a serious shaper of our economy automobiles seriously off the projections very poor I mean I could go on but what you’re seeing is in a sense the chickens coming home to roost the stimulus of that tax cut is behind us the costs of the trade war the costs of the alienating relationship between the United States and the rest of the world for example today’s tension between the United States and France over tit-for-tat tariffs etc these are all taking their toll and they point to an economic difficulty coming down the pike which is mostly dangerous for mr. Trump because it questions and challenges his chances for reelection and I think that’s going to be the key issue around which much each election activity but also economic policy swirls mm-hmm and turning to high-tech in the US trade relate tensions with China there was a remarkable climb down this week when Treasury secretary minuchin sort of cleaned up a statement by President Trump last week that he the president might order a treason inquiry based on Google’s work in China based on an allegation by infamous billionaire Peter Thiel mr. minuchin said the P and the president did their due diligence and found no reason for concern after looking into it but what is this what is this incident tell us about the state of regulatory enforcement and the US and 2019 the state of regulatory enforcement is 0-2 – there isn’t any regulatory enforcement going on there is a theater around it there are these crazy remarks like president Trump’s about treason which if he actually followed through on it would put a lot of companies in trouble and would make the leadership of most American mega corporations turn against him and then he can kiss his election goodbye so that’s why that had to be walked back but I think you’re seeing more and more executives American but also foreign that are beginning to see the erratic unpredictable herky-jerky policy governed by the reelection effort to the detriment of everything else is becoming a serious burden and they’re speaking out about it that’s why the pressure on the nutrient from high tech after that remark about Google made the turnaround happen super quick mm-hmm so now let’s move on over to Europe you took know on Twitter of Boris Johnson’s election as leader of the Conservative Party and as a result British prime minister and the context of the recent vote by British Airways Pilots to enable a strike during the peak summer travel season what is your take on Johnson’s rise of the risk of No Deal brexit and the possible disruptive labor action well I think you’re beginning to see a conflict that is going to be very very important in Britain and that in many ways mirrors with its special conditions what is going on here Boris Johnson is Britain’s Trump in personal style in off-the-cuff remarks in a kind of vendetta policy against his political enemies etc etc but the difference between Britain and this country is that the opposition in Britain is much more organized much more unified and much more radical the Labour Party there is a much different animal than the Democratic Party here so you’re going to see real head-butting and that strike of the b/e a British assuming British Airways corporation that strike is that the labor movement and the Labour Party are gearing up to make his life much more problematic than the Democrats have at least so far done to mr. Trump always excellent perspective in international global perspective Richard Wolffe professor emeritus from the University to be emasculated Amherst thanks for joining us thank you [Music] markets around the world are struggling for direction as traders digest the latest earnings reports and macro headlines the ECB surprised the markets by holding rates steady contradicting the previous statements the hawkish tone led to the Euro hitting two year lows and markets are tumbling in the overnight trading let’s see how the week ended up the mo ex ended the week up as Gazprom the world’s largest conventional gas producer led the rally it received bids worth three points two billion dollars for three percent of its own shares as it continues to expand and improve efficiencies across the board over in Asia the Shanghai index rose 0.7 percent for the week following developments on the us-china trade Fund as negotiators prepared to meet early next week the market saw big gains in tech following the launch of the star index as Beijing makes bold moves towards a less regulated market for IPOs and trading the Shanghai Stock Exchange also signed a pact with the Bombay Stock Exchange in India to explore joint venture cooperation for the growth of the markets and focus on dual listings and the development of joint trading platforms for the offshore RMB products this is a big step for China as it works to expand its capital markets over in Japan the DK rally 0.9 percent for the week a soft Bank led hopes for t-mobile and Sprint merger approval chip makers and electronic makers also climbed following and comments that the chip demand was likely to recover over the rest of the year over in Hong Kong the Hang Seng fell at the end of the week to lowering 1.3 percent as protests continue to disrupt businesses shares tracked overnight losses on Wall Street after the ECB held interest rate steady unexpectedly over in India the Sensex fell as the index was weighed down by weak corporate earnings warm front outflows and weak global queues equities fell for six straight sessions this week marking their longest losing streak in more than two months as concern over bad debt risks dampened future outlooks down in Australia the ASX rose to within 50 points of their all-time highs it was helped by the reserve thanks to cuts to the cash rate and the prospect of more cheap money to come from the central bank’s shares got a boost despite the fact that region had lower growth outlooks and subdued earnings and then finally the all shares ended up down as the ratings agencies Moody’s put South Africa on notice that it might downgrade the country following the bailout of Escom which is likely to widen the government’s debt to GDP now over to Daniel with the rest of the news and America thanks Christy starting as we do in Paris with the CAC that market is up for the week and a big gain of more than half percent on Friday to close out a winning week moving to Frankfurt the dax we see a trend i’m market also up for the week with gains close to half a percent for friday media software and consumer goods sectors let the gains there adidas AG notably gaining by two-and-a-half percent on the final trading day of the week jumping across the water to the fletc in london that index is up for the week shrugging off this week’s political transitions a new Prime Minister Boris Johnson’s tough talk on a No Deal brexit even as uk-based stocks lag jumping to the Americas the cold cap is down for the week one notable strong performer there chemical energy hitting a three-year high in Brazil the eyeball vespa index is also down for the week that index hit an all-time high two weeks ago writing huge gains for the year to put that in perspective also this week president bolster Naro pope proposed to get brazilians access to severance and Social Security funds calling it an emergency measure in saying Brazil’s economy is not doing well moving to North America we have another regional trend here in the US with the NYC the S&P and Nasdaq all up for the week one notable prominent winner Kodak stuck up 1.2 percent and finally moving north to our final stop in Canada the Toronto Stock Exchange down for the week with just barely essentially treading water also this week an announcement of a new stock coming to the TSX Mehta farm labs specializing in medical cannabis the company says their shares will start trading on TSX on Monday and that is your global stock wrap for the week time now for a quick break but hang here because when we return the trend of lower interest rates keeps rolling around crown the globe will tell you what the central bank is the latest to announce a monetary relaxation and then we’ll check in on the auto sector with the car coach Lauren fix as some major players unveil a secret deal on emissions that may surprise you and as we go to break here the numbers at the close [Music] in a world of a partisan movie lives and conspiracy it’s time to wake to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the backs and shouting past each other it’s time for critical thinking it’s time to fight for the middle for the truth the time is now for washing clothes for watching the Hawks what do you have for breakfast yesterday why would you pick those shoes how fast is your Wi-Fi let’s get dog to me why’d you name them that now I’ve interviewed you two what is anymore I’m Li camp the corporate parasites in power today might think their control will continue forever whether they’re right or wrong we have to keep fighting question more [Music] the tide of lower interest rates we reported on yesterday is still rolling across the globe Russia’s central bank has lowered that country’s key interest rate by cutting it by 25 basis points to 7.25% the cut is the second consecutive monthly pullback and follows an interest rate cuts in Turkey as well as continued indications of upcoming cuts from both the European Central Bank and the US Federal Reserve the Bank officially cited the expected US Federal Reserve action later this month as well as a lower inflation figure in June of 4.6% as giving the monetary space to lower the rate to give growth a nudge while stay on track to reduce inflation to 4 percent in 2020 market watchers expect the key Russian interest rate to fall to 7 percent before the end of the year though governor el vira Nabiullina is expected to take a gradual approach for major global automakers have reached an agreement with the state of California on pollution standards including climate killing greenhouse gases in defiance of a push from the Trump administration to lower standards the White House is in the process of sabotaging an Obama administration rule on auto pollution while 14 US states have said that they will seek to salvage the improved standards to protect human health and mitigate the global climate crisis here to discuss this and other recent auto market news is expert detail is car coach Lauren fix so Lauren let’s talk about this deal where BMW Ford Honda and Volkswagen of America worked together with California because they prefer that the guarantee that they can efficiently and effectively follow one national emission standard versus one standard for these 14 states and another for the remainder so what is your take on this perhaps counterintuitive outcome okay you have to remember that the four manufacturers that are trying to work with the California air Research Board known as carb are large electric car manufacturers on a global basis so they want them to continue with the cafe standards because they should be able to meet those numbers and just you know the current corporate average fuel economy no manufacturer has reached those numbers so they right now it’s supposed to be 37 miles to the gallon and if no one’s reaching that including the electric cars into the MEC that’s going to be a problem the current standard that the Obama administration put in place wanted by 2026 to be fifty miles to the gallon and they knew they couldn’t make that it was totally unobtainable so these four manufacturers have gone to carb and said can we work a deal it’s a voluntary deal now this is not enforceable this is not a law this is not an agreement this is a conversation so what makes the news is they’re trying to go against with you what the Trump administration has put together but they’re also the ones that went to the Trump administration and said we need a break on these cafe standards we can’t obtain these we’re getting fined by the EPA we need some sort of break so he went to bat for them and now they want to go back on that so this is where the this is where it becomes a little bit of a mess so what will happen is in the next few weeks the Trump administration is going to change the rules and freeze the and I don’t think he’s going to change his mind just because the way he operates at 37 miles to the gallon for corporate average fuel economy this is not emissions coming out the tailpipe this is specifically on fuel economy regulations it’s also going to eliminate the electric vehicle tax credit for hybrids and for plugins but plugins are not selling well and when they’re mixed with gasoline they’re only selling low in their EVs and overall here in the US we’re finding that consumers even with a little urge incentive of $7,500 are not buying electric vehicles so that’s part of the problem so they’re trying to continue to push an agenda and California of course is behind it and one state should not tell the regulations for the other 49 so speaking of electric vehicles Tesla just reported earnings this week and recorded the worst day in 2019 with shares closing down 14% after a big miss short sellers earned 1.6 billion dollars in profits on Thursday banging three billion dollars year-to-date in net profits so now these positions are actually still open which means that they believe that there is still more room to fall so what’s happening with Tesla now and how much further do they have loved to fall well it depends on who’s speculating it’s funny how they were all behind Tesla for the longest time especially the short sellers they were in playing the game every single day but now with losing one of the core people for Tesla which is Straubel if he’s leaving that gonna impact people’s trust their confidence in this brand even if you’re a true Tesla enthusiast you have to remember also when he sold ninety five thousand vehicles and still took a loss and you can’t have a loss like he’s continuing to do from the first quarter of the second quarter and try to make that up he’s of course Elon Musk did say that he’s thinking that we’re gonna have Robo taxis everywhere but in the truth we are at least a minimum of ten years off we’ve got tons of government regulations insurance regulations and there’s other factors that are in play every state’s got their own regulations so I don’t think you’re even going to see it in ten years if ever you’ll see it in certain areas of the country I think that he’s gonna struggle he’s gonna have to raise some cash because he’s got a lot of bills that are due and you can’t take a loss and make it up in volume mm-hmm and speaking of losses Ford also had a tough week is a tough time is they lost their net profit fell eighty six percent they’re blaming a lot of this loss on one-time charges due to their redesign do you buy that right restructuring reasoning for their lot other falling profits and do you think ultimately the pain of the restructuring will be able to turn around that company well I think Ford’s got to make a lot of changes remember they shut down some plants in Europe because they weren’t doing well but they are increasing their reach in India but at the same time when you are doing a restructure there’s costs involved I know that their trucks are doing very well still the number one selling truck their sales are thirty eight point nine billion dollars that’s a lot of revenues and when you’re thinking about that that’s great when they’re making trucks that consumers want but you should also know that global auto sales on a global basis are 92 million and that’s expected unfortunately there’s a huge glut of vehicles on the marketplace which is good for consumers because they can get great deals but on the other hand when Ford is producing a ton of product just like a lot of other manufacturers you’re seeing losses Jaguar lost 492 million dollars Nissan’s profits plunged 99 percent those are dramatic and in those cases manufacturers should have seen that coming in advance and pulled back earlier expert inside perspective from the car coach Lauren fix thanks for joining us thank you [Music] the Nuclear Regulatory Commission is considering fewer inspections in America’s nuclear plants a cost-cutting move raising new concerns about safety at the nation’s nuclear reactor sites as more of them continue to shut down our t’s John huddy reports from South Florida the only nuclear power plant in Massachusetts the pilgrim nuclear power station has been shut down Entergy the plant’s owner said it was hit by years of falling revenue and increasing costs well now comes the hard part what to do with all the radioactive waste one company whole tech International says that it can be commissioned aging US nuclear reactors in eight instead of 60 years whole Tech has deals to take over several nuclear power plants in New York Michigan and Massachusetts including the pilgrim power plant Kevin Kamps of the nuclear watchdog organization beyond nuclear says while it makes sense to expedite the transfer of high-level radioactive waste into hardened on-site storage containers his concern is about howtechs safety standards their containers are highly suspect so they have major Quality Assurance violations they’re not well designed to begin with so what we’re calling for is a much better design a much better fabrication of the dry casks and then requirements of fortification against terrorist attacks howtechs website says it specializes in the dry cask storage and transportation of radioactive waste and the company has proposed building a multibillion-dollar 1,000 acre facility in southeastern New Mexico where radioactive waste from all over the country would be stored in hundreds of underground steel canisters until a more long-term storage location is found Yucca Mountain in Nevada was supposed to be that long-term location until those plans hit a political roadblock there are 60 commercially operating nuclear power plants with 98 nuclear reactors in 30 US states according to the US Energy Information Administration as of 2017 a total of 10 commercial nuclear reactor in the United States have been successfully decommissioned and another 20 are currently in different stages of the decommissioning process nuclear power like the coal industry has been struggling in recent years against competition from cheaper natural gas and renewable energy in a move to cut costs the US Nuclear Regulatory Commission or NRC has recommended cutting back on inspections at the country’s nuclear reactors a move only adding to the concerns about the safety at America’s remaining nuclear plants like the Turkey Point facility near Homestead Florida Florida Power & Light the company that owns turkey Point has asked the NRC to extend the operation of the two nuclear reactors on the site for another 80 years that request the only of its kind in the nation may serve as a test case for other aging nuclear plants looking to extend the license as well in 2018 the NRC authorized approval of licenses for two new reactors at Turkey point but the estimated 20 billion dollar price tag is holding those plans up Turkey Point is also the only plant to use cooling canals and environmentalists have demanded that FPL switched to cooling towers saying rising sea levels could put their reactors and public in danger in the early 1990s hurricane andrew went directly over these two reactors and we have no evidence that nuclear power plants can safely get through hurricanes or earthquakes we just had an earthquake 20 miles from the Perry nuclear plant in Ohio natural disaster of course took out Fukushima and we don’t know what’s gonna happen next but other people we talked to including one man who with his family was visiting Florida from Texas said he wasn’t too concerned about the risks at nuclear sites like Turkey Point as long as the rules are followed as long as we keep the regulations and we keep the safety standards that they have to keep on the nuclear plants there should not be any issue for RT John huddy thanks for watching see you next week you


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