with more than seven billion people on the planet housing needs to expand to keep up but how's that working out we talk housing in the u.s. and abroad with an expert panel all of that directly in our sights but first we had right just a mad line let's go. a fiscal fight over the future of europe leads our global report today as the european commission declares that italy's budget is creating a risk of contagion within the eurozone italian newspaper la republica has reported that the draft european commission country report for italy expected to be approved in brussels next week predicts that the two thousand and nineteen and tell you in budget is a triple threat to e.u. growth budget balance and overall debt the budget as we reported here was the subject of bluff and brinksmanship between brussels and rome before the italian coalition right wing government was seen to back down the report calls for growth in italy of just two point two percent this year following a year of weak growth in last last year twenty eight teen that is

a full point lower than their forecast in december french predator minister bruno lemaire has already been quoted speaking of an italian recession as a fait accompli saying quote don't underestimate the impact and speaking of impacts it should not be underestimated the chief executive of a volkswagen is warning that the trump administration's auto tariffs could have a nearly three billion dollars negative impact on the company's balance sheet in an interview with trade publication automotive news volkswagen c.e.o. herbert dice responded to a projection from consultants that ever core i.s.i. that terrorists could cost the german automaker two point eight billion dollars or thirteen percent thirteen percent of expected earnings mr di said of the estimate quote in the worst case situation that would probably be close to the real figure. and this is the third intense week of u.s. china trade negotiations this week indeed. while the deputy level meetings were

yesterday the day before chief negotiator negotiators but today for the first of two days of talks here with more from the side of those negotiations at the federal trade center is our two producers. high level trade talks between the u.s. and china opened up today here in washington with the goal of easing a trade standoff that's been clouding the global economy part the chinese delegation was led today by china's vice premier knew he with the u.s. team led by trade representative robert litan these are all the robber lite hisor has been the lead negotiator in ongoing trade negotiations with beijing over tariffs on imports treasury secretary steve and commerce secretary wilbur ross were also in attendance at the talks today several chinese government sources have said that the u.s. and china are basically reached a consensus on easing the trade imbalances but that there are still some

differences on each others or demands that they were seeking to narrow and now a quick recap on china's and u.s. trade wars which started over allegations by president that china deploys hereditary tactics in its bid to overtake us technological dominance a move that china of course has denied so far the world's two largest economies has its hit. on hundreds of billion dollars of good which has significantly slowed global economic growth u.s. and china have. the outline of a deal too and the trade war which includes up to a six a memorandum of understanding. is shoes life force acknowledge the transfer cyber theft intellectual property rights services currency agriculture and non-tariff barriers to trade this also includes a ten item list of commodities and goods that china will buy from the u.s. and on march for. after a ninety day truce u.s.

tariffs on two hundred billion dollars of chinese goods will jump from ten percent to twenty five percent and who has the upper hand part of the economy given that china's growth has dropped to its lowest annual rate in almost three decades china is significantly reliant on trade on the other hand president trump needs a deal that doesn't undermine his pledge to be tough on china so with the march first deadline approaching the u.s. may have the economic advantage by china has a political advantage president trump also sent his strongest signal yet on tuesday that the march first deadline is not a magical date potentially offering negotiators additional room to breathe to scrape a deal all together. and we think so i want to pick up on what she was reporting there and joining us now for the discussion in the u.s. china trade continue continues is the chief c.e.o. of your pacific capital peter schiff agreed peter welcome back there is this late

breaking news and so i was getting to it about sort of what's out there that china has proposed that they would dramatically increase u.s. natural gas and semiconductor imports they've also agree that they're willing to buy more soybeans one of those ten different commodities that so i was talking about how big a deal do you think this is or could be well i don't think it's going to be much of a big deal i think that china had probably had intention to buy american soybeans and other agricultural products we have no idea of knowing whether the chinese end up buying any more products that they might have bought even if there wasn't a deal i mean we do make some for colony of china where we send them raw materials and food and they send us manufactured goods. yeah you know it reminds me of something peter years ago when i was at the agriculture department and i don't know this is still going on but it was at one point to your point we were sending over bird chickens over to china and they were processing the birds and sending them

back to the u.s. so you're precisely right i guess i don't know if that's occurring but i thought it was weird then so i mean do you think that in order for this to be like a great deal to make america great again that there needs to be more than buying some additional goods maybe like you say just what they were before but even if they increase that a little bit is that a great deal or that it need to be more than that peter. there is not going to be a great deal although that's not going to stop donald trump from touting it as the greatest deal in the history of deals i have no doubt that whatever is agreed to trump is going to say it's a huge win and it's a great deal but it's really going to be nothing and it's not going to be any more significant than nafta to which he called us m.c.a. . we're not going to make any significant dent in our trade deficit with china or anybody else in till the dollar really collapses and prices america out of the

import market i mean it's actually imports cheap imports and foreign credit foreigners loaning us money so we can keep buying stuff that's been artificially helping to prop up our economy and our standard of living and ultimately i think the world is going to cut us off but it's not going to be until the dollar really plunges and i think we're headed in that direction now because the federal reserve has finally done what i've been saying they were going to do since the beginning and that is aborted their attempts to normalize interest rates and shrink their balance sheet but the next step is going to be a return to zero percent interest rates and more q.e. and that is going to knock the bottom out of the dollar and that's what's going to ultimately bring down our trade deficits when we're too broke to afford to buy anything so it sounds like you speaking of buying anything it sounds like you have bought into those fed note that sort of make it seem less likely that they'll be an interest rate hike coming up in the next couple of months right. well no i mean

we're more likely to get a cut and i think we're going to go all the way back to zero and we're going to start printing more money but it's not going to stimulate the economy or stimulate bubbles like you we one two and three it's going to be a sedative for the dollar the dollar is going to tank commodity prices are going to rise i think the cost of living is going up we're headed for stagflation in the united states and yes that's going to bring down our trade deficit but it's going to be a painful you know reduction in our standard of living and you know i think the chinese and a lot of other people countries that have been export their surplus consumer goods to the united states i think they'll be much better off consuming those goods themselves or trading amongst each other so they can enjoy the higher standard of living that they used to help provide to the american consumer but then they'll be able to enjoy themselves while we're left to face a diminished standard of living when the chickens finally come home to roost. last

question peter do you think that separate from buying some more goods they really need to address the intellectual property theft those sorts of issues. well look i mean that would be great if we could get them to do that but i mean i don't see that that's going to happen you know i mean so they may pay to play lip service to that but i don't think that at the end of the day that's going to change i mean a lot of the chinese economy is benefiting from from that but you know i don't think that's the source of america's trade imbalance with china because after all china has trade deficit with a lot of other countries i mean they don't have a huge surplus net they have a big surplus with the united states and they have trade deficits for a lot of other countries like japan and germany so they don't have any problem having a surplus when we china see the problem is we're just not competitive in the things that the chinese want to buy we have too much government we have too many

regulations we have too high taxes and that hasn't changed under trump that's why he hasn't made america great again he's just made deficits greater again peter ship c.e.o. of europe it's a big capital thank you so much peter really appreciate your perspective here. and the wave of labor activism among teachers we touched on last time is reaching the shores of the bay area in california today as teachers an all clear go on strike demanding a twelve percent raise over three years teachers in the oakland unified school district reportedly are paid the lowest wages in the country while the local tech boom has pushed housing costs higher and higher the president the oakland education association keith brown call for solidarity on the first day of the strike. we stand united to make sure that our students have the schools that day desire. and turning to the race for the market share in the

quickly developing right ailing sector lift is expected to reach the u.s. trading floors before their major american rival over the plan listing of the company's stock on nasdaq as it has been reported multiple reputable outlets throughout although it's still there gold attributing these things to unnamed sources but it looks like it's going to happen shares could be traded on the exchange before the end of march quarter to the wall street journal which notes that lift seems to have chosen a maximally favorable moment to pull ahead of hoover and into the stock market while the listing is also a bit of a coup for nasdaq which is also recently hosted the tech related i.p.o.'s for spotify and snap. and we're going to squeeze in a quick break here but stick around because when we return we talk housing in the u.s. and abroad with debbie boyd boris rashard and steve walz burke it's going to be fun and as we go to break here the numbers of the closing bell will be back in a play. after

the previous stage of my career was over everyone wondered what i was going to do next that the ball different clubs on one hand it is logical to sit in the home field where everything is familiar on the other i wanted a new challenge and the fresh perspective i'm used to suppressing and i saw you. i'm going to talk about football not the or else i just think i was going to the. by the way what is a punchline here. join me every thursday on the alex salmond show and i'll be speaking to guests of the world of politics small business i'm show business i'll

see than. most people think to stand out in this business you need to be the first one on top of the story or the person with the loudest voice of the biggest raid in truth to stand out of the lose business you just need as the right questions and demand the right answer. questions. what is stupid so we came here where did you work before you came here where did you live well death row in many us states capital punishment is still practiced convicted prisoners can spend years waiting for execution but most of the time to victims' families they are very much experience with it there are some people because of what they do have given up their rights as live among us some

even proven innocent years on this group and more exonerations is going to take before we as a society realize that this is not working and we actually do something about. welcome back there is news in those tech the tech com sector in central america is a major regional carrier acquires new assets and coaster rica nicaragua and panama from a player who is moving out the seller to phonic a telefonica rather essay announced today that they will sell their subsidies in those three central american nations to millet com international cellular for roughly one point six billion dollars the deal will complete telefonica exit from central america after their previous divestment of subsidiaries in el salvador and

guatemala millet com touted the benefits of the acquisition saying the deal equips a company with cable and cellular business vehicles in all of their latin american markets in which it operates mil com stock which is traded on nasdaq by the way it jumped three dollars on the news today. and turning to the south go to brazil president hardball so narrow has unveiled his highly anticipated plans to raise the retirement age brazilian workers currently are allowed to retire after thirty years of work but mr balsam narrow has proposed raising the bar to sixty five years old for men and sixty two for women the balsa narrow been astray sions says the bill would save the quibbling of three hundred ten. billion dollars over ten years while the pension systems deficit was estimated at fifty five billion in twenty eighteen mr balsa narrow admitted that he had shifted his position on pension issues as you unveiled the proposal saying quote i was wrong in the past and we have the opportunity to really guarantee to future generations

a pension that everyone can benefit from seems like many politicians the world over have that trait of changing positions once elected the brazilian in global business classes have cheered mr paulson errol on and the lead researcher for latin america at goldman sachs alberto ramos praised mr ball scenario's pension proposal as quote robust and comprehensive. we now turn to take a look at the housing and the u.s. both in the u.s. and outside and we start outside of the us with sort of commentator steve malzberg hey steve let's start with the e.u. you told me earlier when we were talking that construction prices of really been growing steadily in the e.u. where are the costs the highest and how is it impacting you how say in prices. well thanks for having me bart yeah you know construction has not kept up with the rising housing prices in the e.u.

according to housing europe get this construction as part of the g.d.p. in the european union is that one a half of what it was back in two thousand and six so that's a that's a tremendous drop most expensive most recently construction in sweden norway switzerland and you have a housing prices continuing to rise at their fastest rate throughout the european union in general since the financial crisis most of the most prominent rising of late was in countries like czechoslovakia hungary and lithuania if you could believe that so that's where we are right now construction is getting more expensive and home sales for the most part are still going up well it's part of the e.u. for now but let's just hop over the channel to the u.k. i mean to save london which we've done multiple stories on how high prices are in

the city of london but is housing generally more affordable in the u.k. and if so can people even find places deliver are they just highly sought after. well let you know for twenty years it's becoming less and less and less affordable but last year the trend was blocked if you will and housing became more affordable the most that it's speed that the most jump in affordability in the last eight years so that's that's big news but that does not apply to to london which we'll get to in a second and other big cities the reason for this jump in affordability most people cite is that wages went up in the u.k. last year an average of three point six percent and home prices overall on the average remained constant so that you know is what most people are attributing the the little merge to work it's more affordable now in london you talk about that prices still go up people blame foreign investment and people in rural areas buying

a second or third home in cities like london there's also a vacancy issue in cities like london where people buy houses don't live in them so the government's thinking of instituting a one percent tax when it happened in vancouver that tax drove the vacancy rate down sixteen percent and raise thirty five million dollars for affordable housing so that might be the road that the u.k. is going to take here very interesting i want to ask you just briefly about australia we've been doing a lot of stories about. lately what about housing there. yeah well over the last ten years housing prices have gone up seventy percent seven zero but in the last year two thousand and eighteen they decreased on the average four point eight percent and get this melbourne and sydney led the decline with the kleins of eight and twelve percent respectively in those two cities so that's a very interesting to say to stick for melbourne and they say that it's because in

part more scrutiny on foreign loan applications to buy property they decreased that the foreign loan purchases and it helped bring property values prices down hey steve just real quick there are several lectures coming up on australia's housing issues particularly with younger voters they're absolutely adults we have a chart or not but twenty five to thirty four year olds in australia have been left out and not only in australia but in the united states in the u.k. by the way from the eighty's until now their purchasing of homes has gone steadily down so that thinking of limiting tax breaks to make it easier for younger people to purchase they figure if they take away the tax incentives and tax breaks for the rich then you know more average young people be able to get into the housing market so the labor party them the party not in power right now is running on that steve thank you so much for going to do a little mini tour for us sure appreciate it conservative commentator steve

malzberg thanks dave my pleasure my pleasure. and we now turn to housing in the us where following the great recession which was predicated on those bad mortgages we've seen a decade of booming housing markets to help us out we are joined by debbie blois the c.e.o. of d.l. b. financial services and boris rashard of managing director consulting hey guys thank you both for being with us and making the effort let's start by getting a little bit of a baseline so good to see you first time this year the last ten years have really been great haven't they i mean for prices and sales right. it is that it funny that when two thousand a day out then we thought that the world was coming to and we could never recover now ten years later we're looking back like it was the best of times the best thing that happened was that interest rates went way down that allowed so many more people to purchase a home than ever before and boris what's your take sort of on you know the last decade just generally i mean generally have been

a few interesting trends number one the underwriting standards to remain fairly conservative in the mortgage universe you look at a credit scores which is significantly higher compared to pre-crisis the loan to value ratio is significantly lower you don't have right now exotic products like option arms and other you know complex mortgage instruments and again the lenders are requiring much more of a full documentation for the borrowers again in contrast to what was happening you know right before the crisis so i would also mention you know there is definitely in the shoe with a very tight supply of housing in the united states. so you look at completions to look at the housing start of they're running really you know twice below the pay's that you would normally see in these types of expansions if you look at a longer term horizon. you know housing affordability has been declining i mean over the past six years probably starting from two thousand and thirteen the

housing affordability was declining because of high home prices you have had an increase in mortgage rates last year so that's something to take note of that and lastly i would also mention that you know the non-agency mortgage market basically mortgages that are not conforming to the standards of the government sponsored enterprises that the market has never really fully recovered after the crisis i mean it still comprises only ten percent of the overall delegate your originations and debbie is that what you're seeing i mean the you know some of these signs out there that things are slowing a little bit and then how about in your area also. yes things are slowing you know people have to have better credit they have to have money for a down payment the only loan that's available out there now is a v.a. loan with one hundred percent or credit and then it's are you able to buy the house that you really want and a lot of people are finding those are just right over there price points they want a lot more than they can afford i should have said what i said where you are debbie

you're in austin and you're actually a little west of boston right but are there areas in the country they're doing particularly well now even though we're only thirty years and how about the other side places not doing so well. oh sure i think you know the extreme coasts are going to have problems because rights keep rising san francisco has got a huge problem they've got four in five people in apartments because they can't afford a home they can't even afford to rent something by themselves they're in homes that they just take out a bedroom and and these are your big i.t. tech people that are making lots of money there's nowhere to live texas we got a lot of space so come down here dallas they're dropping off eight or nine hundred people are moving in a day there are subdivisions in areas that are booming in north dallas so come on we got plenty of room for everybody it is a big state a boris last time you know we had i don't know who is seven or nine million people actually lost their homes with the great recession or we had that sort of danger

this time if the economy goes south or maybe not so much what are your thoughts not at all i mean the consumer and the borrower is a much better shape these days for a variety of factors number one you know we have had a solid income growth number two. if you look at the equity that people have accumulated i mean it's much higher compared to what you had you know prior to the crisis according to some estimates you know there is approximately a six trillion in home equity that people can tap in before heating the eighty percent of the t.v. so obviously you know the downturn in home price. is it not going to affect the borrower at the same level and it's not going to create the same pace of foreclosures and delinquencies if you have six trillion in equity in your homes so yeah we're in much better shape i mean you look at a delinquency rates right now for all for the entire mortgage universe in the u.s. it's had ten year low if you look just at the conforming loans you know cordin to

some estimates the delinquency in foreclosure rates are as low as they have been since the first quarter of two thousand so basically you know nineteen year low so now where my where much better shape right now plus you don't have an oversupply in overbuilding of homes again that was one of the major reasons why home prices you know declined in nosedived in two thousand and seven two thousand and eight you don't have that factor right now playing against the home prices super interesting discussion thank you both debbie boyd of bore thank you thank you so much for the time guys appreciate it thanks a lot thank you. and that's it for this time thanks for being with us you can catch boom bust on direct t.v. channel three twenty or you could also catch us as always at youtube dot com slash boom bust r.t. see you next time so long for down.

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headlines this hour the. saudi arabia is germany refuses to lift a ban on the components. he used to faking a hate crime against him so let's claim that he was assaulted by supporters led to an outpouring of sympathy and support for the president slammed the staking tensions. position to fire a ban on u.s. aid. is promising to get it into the country by saturday with clashes already breaking out.