i'm lizzie francis abbas broadcast live around the world from washington d.c. tonight japanese airbag manufacturer adds millions more cars to its recall and replace plants after even more of its faulty life saving devices were found also the boy a bank of scotland's got customer woes of a different sort as it settled for five point five billion dollars with the u.s. over the mis selling of mortgage backed securities also federal reserve chair janet yellen begins two days of testimony my guest former us pretty clear from ourselves and comes in a breaks it down for us there must starts right now stand by. the

royal bank of scotland set to pay out five point five billion dollars in a massive settlement in the united states this resolves claims regarding the issuance of underwriting of approximately thirty two billion dollars of residential mortgage backed securities the settlement follows a deal last month with thousands of investors who sued amid allegations they were misled into buying shares in the edinburgh based bank a sixteen billion dollar cash called fact of the bank's shares collapsed soon after it was bailed out by the government under the settlement wednesday r.b.s. will pay five point five billion but be reimbursed for seven hundred fifty four

million under indemnification agreements with third parties the bank must still resolve outstanding civil and criminal claims with the department of justice for its crimes. is adding two point seven million vehicles from ford nissan and mazda to the long list of those recall to replace potentially dangerous airbag inflators made by the company the inflators are a new type that previously it was thought to be safe vehicles affected are from the two thousand and five to two thousand and twelve model years to qatar inflators can explode with too much force and then spew shrapnel into drivers and passengers at least seventeen people have died and more than one hundred eighty injured due to this problem to console uses the chemical ammonium nitrate to inflate the airbags but it can deteriorate when exposed to humidity and high temperature previously the company thought inflators with a dry agent are safe but the government says new tests show that some inflators

with a drawing agent pose a safety risk. in an effort to mediate tension with avatar u.s. secretary of state rex tillerson is meeting with ministers in saudi arabia this week and he already has an uphill battle ahead of him as the four arab nations boycotting qatar are not willing to compromise on their demands. has more on that for us now how did that meeting with qatar go on tuesday so when tillerson was there on tuesday he signed a memorandum of understanding on financing terrorism but once i was announced the other gulf states immediately shut it down and said this is inadequate this is not a step forward for us and easing the boycott and the tensions with qatar which is why a lot of people are not they don't have high hopes for tillerson trip to just mend the crisis. it's been over one month since saudi arabia the united arab emirates

bahrain and egypt issued a boycott of qatar it's been a tricky situation for qatar to approach considering this is the country's worst diplomatic crisis in decades and so far the gulf states are not willing to compromise on their long list of demands for doha sanctions were imposed on june fifth over allegations of terrorism financing and close ties to iran a known gulf state rival for the terrorism part is one thing but the iran part is just as complicated saudi arabia has not been shy about its feeling toward iran with fears of its government trying to destabilize the kingdom especially its eastern province the east is home to most of the country's oil production maintaining its position as the unofficial leader of opec but it's also home to the shiite minority and any inspiration from outside states like iran could cause a rift in the country and put a dent in oil and we know that saudi arabia and the rest of opec can't really

afford that right now over the past year west texas intermediate which serves as the global benchmark has settled around forty five dollars a barrel as you can see in this chart and it's been hovering around that mark since two thousand and fifteen about half of what it was in the years prior before two thousand and fifteen crude oil was selling between eighty and ninety dollars a barrel and still has yet to recover meanwhile iran's oil minister is saying that they'll be pumping four million barrels per day by the end of the year and based on recent numbers it's not too hard to believe because of previous sanctions iran was exempt from opec ordered production cuts and once those cuts were lifted iran has been trying to its hardest to make up for that lost market share so when you take oil into account that qatar boycott somehow becomes even more complicated but it's certainly not the only conflict that's wrapped up in one of the world's biggest and most important commodities. all right just mentioned obviously oil complicates

other conflicts going on give us an example of this right now so perfect example of this also happening is in yemen which is been experiencing a war since two thousand and fifteen there is a straight located right off the coast of yemen that is a very popular trade route for ships carrying oil because we know that area in particular pumps a lot of oil but because of the way the war has progressed it is no longer safe for those ships to travel that route and of course on top of that we know that the war in yemen is basically saudi arabia versus iran because the saudis are backing the government and iran is backing the rebels so it just kind of complicates the boycott even more than you know it already has been right so let's go back to teller sin for a second any progress made today not exactly i mean the best way to look at it is that he is now spoken to both sides i mean there is no sign of relations thawing between the two you know there's been no comment from either side saying we feel

hopeful that we can resolve this the gulf states have made it clear that they will not take anything less than a submission to each of the thirteen demands that they have asked for. thanks for that. well if you use the internet today is the day you want to take special note activists and policymakers from around the country are drawing attention to net neutrality the need for a free and open internet especially if you are watching this online right now let's set up our to correspondent on your part is here to explain why we should care and what was said today very important meeting today. tell us what the fight over net neutrality is actually about because it does get very complicated it's also often described as one of the most boring sounding terms just tune it or not lying to you now the minute they know your net neutrality but it's very important as you said especially as you mentioned if people are watching this online for example because the way the internet works now lindsay all content and information is in syria treated. really at least in terms of how much you're. the speed at which you're

receiving your access. if you're watching this on our team because web site it's going to stream basically the same way any other network would on their website if the telecommunications companies have their way however lindsey they would like to make the internet pay to play system where essentially a company like netflix for example could pay to have faster streaming capabilities and shut out competition you pay. and in fact former as you see chair under clinton gloria she was on the hill today to kind of put in her own words why the fight for net neutrality is a fight for basic rights really in the modern age. the internet has become integral to everything we do. whether it's to communicate with our congressmen or our city government whether it's to get government benefits whether it's to organize you

cannot do it. it has become the modern public square we were used to go to that we still do go to the squares to let our voices be heard the public square is now. considering lindsey comcast for example or as often rated americans that most hated company at work who are comcast would not be a company americans want making decisions about their internet absolutely not so let's talk about lawmakers. interesting situation with them always very partisan issue with them on capitol hill what are they saying about this issue well senator ron wyden for example democrat from oregon has come out swinging very vocal proponent of net neutrality saying this is something we need to work very hard on slamming current f.c.c. director occupy who used to work for horizon is largely seen as a tool of the industry and he's now in house with overseeing it let's hear what wyden said today on the hill. volunteering net neutrality isn't going to cut it

because with bone neutrality we're still going to have. prioritization approaches hole laying. about where we go. we started heading back to it in. america you hear it in there speaking very strongly in writing words like aristocracy lindsey and the reality is while it is true the democrats have taken clear positions that least and white in this case in favor of net neutrality this puts them largely on the side of major corporations or internet companies. like facebook amazon they're not necessarily the good guys lindsey and the reason they're the fight is the way we see it is because if you look at the internet like a bank the internet service providers are a bit like the bank they're controlling the flow of information the way the bank controls the capital these companies are upset because if you get in the. country

the telecommunications companies the extra hand. they are forcing the competition pay more for their they're going to track it back and they basically are represented in the interest of the democrat right they're trying to say this is like a public library we need to keep it thank you so much our case on your part things that we had to break for the numbers the closing bell. i've observed events of the past few years and asked myself several times what's going on in my native germany. really of refugees. u.s. intelligence agencies in discriminately listening you don't jump in citizens of the

government. and once again judgments except at least. many politicians from various political parties and various independent experts and journalists in an effort to understand just how independent germany really gets when it comes to decision making. whether it acts on its own national interests ok resound someone else's will. we've got these enormous international. we've got issues in syria we've got issues with migration we're going to choose the ukraine. going to visit should be sold i think without their operation with that with president putin that's why i think

when you have something that's hard to do for suspicious mind. to do your best or suspicion. it's an ironic turn of events the chief of sweden's largest security for it was declared bankrupt after being hacked and having his identity stolen the perpetrator used the identity of security c.e.o. alpha goran sent to seek a loan after which a bankruptcy application was filed in gore instance nate he didn't know he'd been hacked until this week when a one page bankruptcy document bearing what was purported to be his signature was placed in his hands he has now won an appeal of the july tenth bankruptcy decision by stockholm's district court sweden's the leads the way digits digitise ation of

consumer spending on goods services and loan seeking so of course this has raised rates of identity fraud with over twelve thousand eight hundred hacked identities reported in the first six months of this year alone. and federal reserve chief janet yellen has begun two days of testimony the world is set to hear more about the fed's take on the state of the economy and hence of another interest rate hike but let's back up first this is what she said just weeks ago in london when asked about the possibility a calamity happening of another financial crisis. which i see you will never ever be in those or financial crisis. you know probably would be going to four but. i do think we're much safer and i hope that it will not be in our lifetimes and i don't believe it will be. not in our lifetimes well yellen indicated many systems

are in place to prevent such a thing now international monetary fund chief christine legarde has just chimed in saying she plans to have a long life and the dangers of another crisis are never far away take a listen where it will come from what form it takes how international and broad based it will be is to be seen. well the guard stressed after that that the predictability comes from the cycles seen over the last decade she also emphasized the importance of tightly monitoring economic health in all areas just to backtrack the financial crisis nearly a decade ago meant that seven point five million americans lost jobs in the u.s. housing market crash fueled in part to put it simply by a drop in mortgage values. according to federal reserve chair janet yellen testimony on capitol hill today the economy is growing steadily and interest rates given current circumstances would not need

to be raised much further after statement the dow jones industrial average reached a new intraday high surging over one hundred sixty points here to look at it in more detail is former u.s. attorney mr barr shelton bart you are a veteran of capitol hill how's your testimony received today the hill rep they call them and. it was received pretty well you know these fed chairs are fairly a twosome their responses they try to not go too far either way alan greenspan famously said if you think that i've been very clear on a point you've misunderstood me and she was like that to a large extent she got grilled on a couple of things there was a congressman who wanted to know if they would not do in the additional regulations on big banks at that at the fed until vice chair was confirmed by the senate who was nominated just a couple of days ago on monday and so overall it was it was well received she

actually testifies tomorrow also before the senate they do the the house financial services committee one day when they do the senate banking committee tomorrow but she was fairly positive as you said she said there may be more rate hikes but not that many rate hikes wink wink smile smile who knows let's look at some of the economic indicators that the fed examines and talks about. the as they make their decisions for thought growth and inflation key data points good but not great you say yeah i mean you know we were we ended up one point six for gross domestic product last year and we're not doing that great the first quarter was one point four and you know the main numbers weren't great either and as we recall the benchmark for the trumpet ministration shifted from six percent growth to down to sort of a new realistic low in their minds of three percent but even that being charitable three percent would be a big challenge to reach so it's growth but it's not overly great growth the

average by the way to go back in the ninety's we had three percent growth in two thousand and sixteen there were two thousand fifteen rather there was two point six percent growth that we are looking pretty good then but over the thirty forty year history it's usually two percent growth so we're below par we need to do better hopefully things will change we will well looks like at employment is not doing too bad the positive numbers last week you having that need to be under twenty eight come on to talk about writing a report came out and averaging one hundred eighty thousand jobs per month so again good not great like some of the other things ok housing and mortgage applications what are we looking at i mean there's a tighter focus on not allowing twenty credit here but i think that housing is a mixed bag lindsey so on new housing starts they're up over last year three point six percent but on existing home sales down eight point six really over last year yeah down more than people would have thought and we can combine it with that

is that you would assume the mortgage applications are down because people don't want to buy new homes and those are down significantly upwards of thirty percent from this same period last year so not as positive as it had looked earlier in the year but still a mixed bag and i think sometimes that the seasonal thing now i mean they will they always get a legit. right and they have you know if your progress is until the fall so you know april may june but not it so they have increased the sales had increased but not at the rate that they had in again eight point six percent on new and existing home sales from last year down so it could be better yeah ok oil prices we can't seem to get away from that right now it being their warring mid to upper forty range kind of lower sometimes last several weeks we've seen about made forty range effects exactly forty five forty three as of i don't know

a little bit ago and i'd check samus that doesn't yesterday doesn't seem to have that much of an impact on gasoline prices by the way which are like at two twenty six i think worth you've seen worse and they are worse in a couple of places alaska and california but by and large they're only three cents above where they were a year ago but the interesting thing and this is just sort of breaking news from a few hours ago when opec put out their monthly porton the energy information agency put out a report that the saudis and as you recall opec along with some other nations had a cap of one point eight billion cutting production by one point eight billion per day the saudis exceeded their own cap there the adults and they're the ones that are supposed to be leading this so some of the other opec and non opec participants in this production may be looking at that part of the reason by the way are opec members who are not a part of the deal because they were exempt and it is in libya you got it exactly and so we'll have to have to see what happens the energy information agency earlier

today said that they do in to supply a demand will increase somewhat being a little bit more than supply going into next year but there's nothing on the horizon that says that we're going to have some wholesale change in oil prices that doesn't stop the bank researchers by the way from making predictions goldman said in the last couple days down to forty. dollars in the near term city said up to sixty dollars ideas if you just get so frantic when they get in this is that like you know a new show you got to fill your rundown with information but it's got to be correct information you know what's up with the come on all right interest you know it's maybe an off the air conversation from somebody who looked at what the research arm some of their banks predict and then how their traders go and trade on that so maybe maybe at some time in a different form i'll explain i'll get some coffee and talk about that let's move to retail sales huge compound of g.d.p. what are we looking at so far this year well not as good as we had hoped you know

three percent three point six percent was the increase last year three point eight i'm sorry maybe they'll get to three point five percent this year but the tough part has really been two major segments one is restaurants people are eating out as much and two and this is sort of the eight hundred pound gorilla and that is auto movil sales those are way down now yeah i think all the time they unfortunately the average going back to like nine hundred sixty seven is six million vehicles per month produced in the u.s. we're down under we were at four point one a year ago now now we're down at three point four million per per per month so it's not as good as we'd hoped you know autos were on a tear up until december since december auto production has been going down so not so great right now let's say retail sales also you and i have talked about the analysis of retail sales used in these measurements it's changing a lot we're looking at online retail sales some stores are changing with

acquisitions they're classified differently do you think it's course sort of an antiquated approach that we've gotten used to look at these consumer spending trends particularly yes in a word but particularly with regard to e-commerce so e-commerce is what supplanting a lot of these brick and mortar stores whether or not it's you know wal-mart or j.c. penney or sears or something the. the e-commerce is really the saving day for the restaurants and the autos so e-commerce is up thirteen percent last year and it will be well up above thirteen percent this year but i do think that looking at e-commerce and figuring out the formulaic way that we look at retail sales is something that they should be doing all right trade comes into retail sales how real looking with that with trade that's a fact often not so great two thousand and fifteen two thousand and sixteen over five hundred billion with a b. dollar trade deficit that so far today if it continues would be seven point five

percent higher so the trade deficit could even surge this year now but you know maybe with all these fantastical trade agreements maybe we'll have some that will change things in the future it's certainly not going to impact the trade deficit this year the thing that could make the trade deficit even worse would be whether or not there's some sort of trade war some retaliation we've talked about steel quotas either of us looking at all those things could have a negative impact on our balance of trade but trade still an issue as the president needs to be worked on do you know just to get your opinion on this do you think that the punitive measures on steel would actually come to come to fruition i know that he's talking about china to corner the market globally but with that do you think that would actually come to fruition there i've got to get your take on that i think they're going to do something you know i've had i do it it's going to be messy and i don't particularly like it i was

a former steelworker member the largest steelworkers union high school so i hope they don't from my old buddies perspective but i think they're going to talk about real quick before we go the latest rumor and this rumor filled town is that president trump's national economic council council director gary kahn is the president's top pick to replace janet yellen as fab chair next year yeah maybe that should have been our top line top. point here when you think that that's when then he's like one of the adults in the room mr cohen so i sort of hope you know personally which doctors best day is there that he's a god that i think the president looks to that he's thoughtful him and secretary minucci not that there's not others but mr cohen in particular he'd probably be very good but i'd like to see him do this now you'll recall that last year then candidate trump criticized janet yellen that they've sort of come back to an accommodation with her right now and so if i were a betting man i'd say she's going to stay and she get that happens early next year

all right thank you so much for your insights on this pleasure as always former u.s. attorney commissioner bart chilton. it's always captured people's attention from tales of a new world flush with that stories of pots of gold at the end of rainbows well in germany two men who may be getting into a whole lot of trouble over a stolen gold coin the coin heist took place at berlin's bode museum in march not far from chancellor merkel's apartment after months of searching more than three hundred police officers took part in an early morning raid this week and now have two suspects in custody so why all the fuss over a simple coin well this canadian coin is called the big make believe it's over two hundred twenty two hundred twenty pounds with a market value of over four million dollars the fear is that it's already been

melted down and turned into jewelry perhaps or even gold bars most of us just want to know how the thieves hauled it away. that's all for now everybody check out the show on youtube you to www dot com slash r t thanks so much falafel. colonies still exist. rico's treated as one visitor annoying co-equals on the hind fulsomely throw some throw ins and then milk and thrown him along and up until three cool i see no one else can i do a lot of seats and they can be seen like the island is controlled by the us government and some puerto ricans crave independence jello it was the only god you

know it was getting about on a global like the sequel either way like that i mean to sort of randomly go over that again again way and. still many do wish to join the us hundreds more leave every day. on time along the fall mania. beings. with the country at a crossroads for anger on the island is on the rise. there's

a growing backlash against social media and magically the smog. the most independents the most interesting people particularly young people are actually giving up social media and i think over the next few years we're going to see is that only losers will be left on social media. as one of the basic instruments to drive an economy but it can also lead to tragedy i did it. and. i came and it was. excessive to the banks.

on the banks but i didn't think of. the. creditors people see no future. no relationship breaks down and become a casualty is a lifelong trust or is there a way. to judge. a scale from what.

paris no longer insists on an assad free future for syria as fighting terror is now the top priority the french president emanuel my call made the statement a joint press conference with donald trump. human rights watch says the iraqi military is holding at least one hundred seventy families in a de facto detention camp over there and ledge ling's two islamic studies. found america's hoping to sell its new f. thirty five fighter jets to germany despite increasing concerns over that combat readiness cost.