this is broadcasting around the globe and covering the world of business and finance and. i'm daniel britto and i'm washington here's a look out today. the markets. are now what could be the impact of such a law and take that on a spin through just how they live on it in the lamb on the break. we get a bird's eye view of baghdad and its impact on business in great britain hillary ford went on a british american business association london to hand her way through the coffee waters. and their newest shipping endeavor and finally defense stocks are on the again as raytheon and united sec knology strike a deal that would make them a behemoth in the sector molly barrows of america's warriors on hand to give us an

aerial take on the newest player in aerospace we've got a packed show today so let's go ahead and dive right in. a deal to avoid u.s. tariffs on mexican imports leads our global report today as u.s. president donald trump issues a quickly contested declaration of victory on friday night mexican and u.s. officials issued a joint statement on migration issues mr trump soon tweeted that the terrorists who threaten to impose on mexican goods were hereby indefinitely suspended the new york times quickly pointed out that the agreement mostly repackaged or accelerated previous mexican commitments no reference can be found in the text of the agreement for mr trump's claim that mexico committed to major new purchases of u.s. agriculture products mr trump also signaled he may need a new his terror threats over migration issues in the future next can president manuel lopez obrador reacted to the agreement. i'm very satisfied with the

deal that was reached with the united states very happy because he's avoided a crisis an economic financial only when it was no small thing to represent this and economists even the ones we don't see eye to eye with the impact that would result from the tariffs. and although tariffs on mexico have been avoided for the time being the threat still looms and this is still causing jitters in the auto market for obvious reasons as of the end of april the united states had a total trade value with mexico of just over $203000000000.00 which the u.s. accounted for importing 58 percent of that total this imbalance has put the u.s. at a nearly $31000000000.00 deficit with mexico just in 2019 i want comes to autos the contrast is even more stark with 2 of the 3 top imports to the u.s. being motor vehicles and car parts respectively through the end of april this sector accounted for more than $21000000000.00 worth of imports according to data from the u.s. census bureau so while automakers can get

a gasp of relief for now what could a scenario a terrorist look like in a sucher so reliant on trade here to help us break it all down is lauren fix the car coach lauren welcome back lauren autos were the major stakeholder considered at risk in this sort of contrived convers confrontation even more than agriculture because of the multinational nature of car production in this day and age with some car parts reportedly crossing the u.s. specs go border more than once in the production process so 1st at the broadest level what is the scenario after this agreement to suspend the terror threat do we just go back to the status quo ante on autos or is this flight going to leave some bruises or some dents i should say in the car industry. i don't think it's going to impact the auto industry in the bigger picture or even joe heinrich's who's president at ford motor company agreed with my assessment that we knew mexico would bend because obviously the impact fire. actually to mexico to give up 5 percent as

of today would have been really expensive and could have impacted growth in mexico in sales going back and forth across the border because for example if a heart wiring harness is produced in mexico it has to be assembled into a component in the us that might end up going back across the border again and then once it's completed in a vehicle come back across the border again so there would be 2 tariffs on top every time that cross the border so manufacturers kind of knew that mexico was going to definitely want to be more flexible with $93000000000.00 a year going back and forth across the border they want to make sure to do something so immediately once president trump threatened the tariff immediately someone got on a plane got right to washington d.c. which is what i think they were looking for anyhow to have a discussion about the border i don't get into the political side but i will tell you on the automotive side the impact could have been painful down the road maybe not initially but down the road it would have impacted sales i don't it would

impact each individual consumer from an automotive perspective foods a whole nother story and i don't cover that category but i can tell you that right now manufacturers are aware that this is probably not going to impact them in the bigger picture the goal was to get mexico to come to the table to have a conversation as long as they stand up to their end of the deal we shouldn't be talking this tariff ever again ok so the point on the damage that was on the table the center for automotive research had said that the terror from 25 percent would increase the price of a new vehicle assembled in the u.s. by about $1100.00 for cars assembled in mexico sooner estimated the prices would have increased about $5400.00 per vehicle those are both if the 25 percent tariff rate had gone in so yeah it sounds like a pretty substantial price impact that they averted here but you think you think the threat is off for the long term is that right. i'm sure that mexico doesn't

want to deal with president trump adding 5 percent per month i mean the end of october there would have been 25 percent that's where you would have seen the 5400 dollars fee initially the 5 percent wouldn't have been that much because remember each components got its own piece and manufacturers are going to absorb the full amount of money they'll absorb some of it because obviously there's a price point for their vehicles so if a vehicle selling at $25000.00 they don't want to move it to $27000.00 or even $26.00 they may split the difference and say this is part of the cost of doing business there's quite a bit of profit on the sale of a vehicle and they're not going to absorb all of it but they will absorb some of it not turning over to a deal that didn't happen chrysler drop their merger with we're not last week now we're not has had some well known troubles but the new fiar chrysler c.e.o. seems to have some challenges on the table why did talks fail and where do the players go in the process from here. well our national e.f.c.a. offering to join this merger of reno nissan and mitsubishi was kind of strange to

us in the automotive industry which didn't make a lot of sense to us because stands alone and does make some profits especially on ram truck and jeep but to merge in with this group we knew that there'd be a problem because we've discussed this about carlos going and the fact that he is in prison unfortunately or and he's being accused of something or may have may not have done so with that in play we knew that nissan wouldn't vote yes they did abstained from voting and that caused it to be re no one mitsubishi to decide what they wanted to do and the french government said sure we'd like to talk to you and we want a larger stake in reno in a larger stake into f.c.a. and so that's one of the talks fell apart and following up on that the french state is as you alluded to a major stakeholder in renault and the french find finance minister brule amir in an interview with the reviews seem to clearly from a fuller nissan were. no merger that they had floated he said if we have also he

went further and he said if we have to cut or no stake in nissan to have better governance one that is more efficient takes us through decisions we are open so that what's going on there on the front. well is as far as the whole auto industry and. reno and u.k. are every manufacturer right now across the globe is losing sales sales were not with they were and i think that's a big impact you can't sell 17000000 cars this year 175 the next year $18000000.00 the next year especially here in the u.s. and with sales in china are down sales in europe are down and it's always going to be oscillating just like the stock market too you have to look at the impact politically here's a look at the impact from the stock market and the impact from consumers so this is going to cause an oscillation when you're talking about the u.k. versus your versus u.s. they're going to be different markets and they're going to have different impacts against them that would cause an negative sales versus positive sales now moving

across the channel from france to the u.k. car production dropped by 24 percent in april now that sector has had a 33.9 percent fall in manufacturing overall for the month are these recoverable losses or as the u.k. car sector had a far structural downsizing postgrads it. well we don't know how that's going to finally end up because we're going to have a new administration over there but as far as u.k. car production where they're making mini and rolls royce and other cars like jaguar and land rover where they're hand built over there that has to do with the sales of the brand on a global basis unfortunately. hurt them we don't know what the final deal is going to be there's a lot of speculation saying that it's going to hurt the brand and i think that's why you're seeing a downturn on sales overall let's hope that it will turn around and not shrink those brands because they do make some great quality product excellent insight as always from lauren fix the car coach thanks for joining us thank you.

despite the tariffs the rating trade war and other challenges chinese exports faced in recent months china surprise the world's announcing that the trade surplus for meg grew to $41650000000.00 doubled than expected there had been widespread expectations of a lower surplus as economists predicted china's dollar denominated exports to slide 3.8 percent year over year but data actually show that exports grew 1 point one percent while imports fell by 8.5 percent chinese trade activity demonstrates stiff resistance against the ongoing trade war with the us however the us is accusing china of allowing its currency the rand to slide as a way to neutralize the impact of the trade tariffs a weaker ground makes the chinese exports more attractive giving them a competitive advantage in international markets and also setting the cost of tariffs on chinese goods again had weakened more than 2 percent since the start of the trade war and today slid to its weakest level and 6 months versus the dollar

the p.t.o. see warned that the currency could be permitted to slide even further. and updating the story from last week the brazilian central bank the shooting down the idea of a monetary union with argentina to the. idea was floated during brazilian president her bows and arrows visit the iris an argentine finance minister had suggested the 2 neighboring countries would pursue the creation of a common currency called the real pay so according to an official statement though the central bank of brazil does not have any plans or studies in progress for a monetary union with argentina. time now for a quick break but hang here because when we return we get a london eyes view of and its impact on business in great britain or whether the british american business association says i had to wade through the choppy waters of trade and there. and finally. and

united technologies strike a deal that would be met in the sector. of america on a plan to give us an aerial take on the newest player in the air. and as we go to break here the numbers out to close. the border.

what are. you doing for these. but i hoard you know i don't know what the local which is somewhat well to start your own work or your. church which. you decide which. you do with. your. on this edition of the program we discuss what drives the russia china relationship critics claim it is a marriage of convenience proponents say otherwise it is the pivotal relationship

of the 21st century. leaders of italy's increasingly fractious coalition government are meeting monday to try to resolve differences within their camp and with the european commission over the country's $2.00 trillion euro debt burden and a political push for tax cuts prime minister does that become tired renewed his threats to resign ahead of talks with his governing partners on how to satisfy e.u. authorities mr carter warned against the consequences for italy's ability to finance its debt if the commission follows through with an official inquiry called an excessive debt quote procedure or e.d.p. that could lead to sanctions from brussels members are reportedly preparing to vote to pursue the e.d.p. on june 12th italian leaders refused to back down on tax cuts and new spending.

checking in on the u.k. the bungalow the u.k. bragg's a process continues to weigh on the u.k. economy as the political uncertainty increases prime minister teresa mayes resignation on june 7th having failed to deliver bragg's it. but on another front the u.k. has gotten some good news on train this time from asia here to tell us more and bring her unique insight is hello before but a member of the british american business associations board of directors hello welcome back pleasure christy president so that you can assign a trade agreement with south korea to ensure of business continues from both countries after bragg's it how important is this for the u.k. and how important is south korea as a city as a trading partner when i think it's very important actually in 2 regards primarily of course psychological this is a huge boost because of the what the scaremongers have been saying there have been predictions that any trade agreements would take up to 7 years with other countries that's actually just been proved to be ludicrous and again scaremongering so one

was psychological but to factually and in reality this is the u.k. and liam fox dr liam fox are making trade agreements and his goal is that of the 40 agreements now in place to replicate them 63 percent have already been replicated among those other countries of the 40 with 12 countries some of those are for example with switzerland norway chile to name a few. and then hillary obviously it's a confidence boost to get try to be logical a psychological boost to get this trade agreement in the middle of true difficulties but on the specific terms of it what do the 2 parties get out of this agreement it really mirrors actually the existing agreements there's nothing really drastically different i think what's important to note though is that i mean most of the products that go there are sort of cars and fuel and accept from the u.k. but i would say this what they both get out of it is the u.k. gets out a huge bargaining chip here the u.k. now can turn around to any other nation something's already in place and with the

e.u. it strengthens the u.k.'s position what does south korea get out of the deal south korea now has a definite market and a trading partner and security in terms of whether there's a no deal or not so security for both but gives the u.k. a huge amount of labor. no this deal with south korea is the u.k.'s 1st major trade deal in europe since the 2016. have been busy signing continuity deals with all the nations however their critics do say that deals may not cover as much trade as existing in grangemouth and that they are still incomplete what do they mean exactly by that what they mean by incomplete kristie is that this deal in particular if you want to look at this one this is still to be ratified yet by the south korean polymer it is expected to be ratified by the end of october which would be before the oct 31st how are we in deadline of brics it but there's still a ratification needed so that's what the critics mean the critics also looking at the fact that they're not all in place yet one of course not because it takes time but the good news is the critics can't refute that this is nothing like 7 years

this is been a number of weeks one stocks only of fox has been unleashed to make these agreements and on another front moving from trade to 5 g. to build 5 g. mart to build infrastructure and market share is heating up and 3 the company 3 just announced it will be launching in the u.k. in august through has apparently more than twice as much 5 g. spectrum as their closest competitor which is supposed to deliver significantly faster speeds for its customers what can you tell us about this in the works well couple of things 1st of all again this is a boost to the u.k. because this is a big this is a london based company what's important is this is only being launched just in london to begin with but then it's going to be predicted to be in other british cities a couple of things number 15 g. of course offers vos degree of extended to pretty and this is what certainly the younger generation wants also this sort of pilot program its initial program in london is very much plug and play what it will do for the youth market that does

not want to have so they don't they don't have things in place they move to offer they want plug and play this is very important and i think it's another indication that as the k p m g technology study predicted and reported the u.k. . it's the 3rd best technology market in the globe after silicon valley and a couple of others it's the best and this is what's important for breaks it a lot of those u.k. customers are outside of the u.k. so now with this being is that in london what does it prove it proves that a british company can deliver something like 5 g. and it gives superior connectivity in the city of london that's very appealing to many many companies that are looking to on the brink of what should we do should we leave or should we stay in the u.k. very good as a differentiator so this is actually one of the 3rd largest carriers we've seen vodafone either they've all come out and said that they are actually not going to be using our infrastructure to build out their 5 g. 3 s. so far has not made a decision on whether or not to carry devices later on do you have any and so you

can write it for you i'd be surprised if they go with what way because of all the controversy and the obviously that you know the fear all over and i would say you know. it's purported to be obviously from the chinese a capability to actually have you know cyber. espionage ramifications i think that whether it's image whether that's a brand of one way whether that's the truth i think most people think that is the situation that is a big negative on our i would be surprised if you see huawei used in this instance particularly in london. thank you so much as always hello for which board member of the british american business association creatively here. monday there are certainly mergers on the table cloud software but here of course announced today that it would. blow for $15700000000.00 in stock the move is seen by many industry analysts as

a response to google's purchase of looker that we reported last week sil's forces hoping to bolster their business with the purchase of the seattle based tablo a company that puts focus on data visualization the company's c.e.o. mark benioff served as march in a statement regarding. the purchasing blow helps people see and understand. helps people engage understand computers or understand customers on the on the new sales force stock took a hit down as much as 8 percent in early trading but has since rebounded meanwhile tablo has seen increases of as much as 35 percent on the news topping out at a one around $170.00 per share. and united set knowledge on our emerging to create a new company that executives say will define the future of iraq space and defense the consolidation is happening at a time when both industries are looking to cut costs and improve technology molly barrows contributor with america's lawyer has more on the merger molly welcome back

now obviously is a big deal but let's go into this why is this why is it such a significant deal. well it's quite a big deal because you know the technology and raytheon are joining forces to create an aerospace and defense powerhouse kind of a 1st of its kind if you well it is one of the biggest corporate mergers of the year so far u.t.c. is an industrial conglomerate makes everything from jet engines to elevators and it owns the company pratt and wind whitney which is also an engine maker you may realize or not that they made the f. 35 you know which is the big defense jet fighter plane that's been in development for some time as well as collins air space than that so racing on is rooted in defense and produces missile defense systems as well as cyber security solutions so the 2 companies supply the likes of other companies like airbus and boeing this new company will be called raytheon technologies corp this is according to a statement from the company which was announced over the weekend and the company

said it will offer expanded technology and research and development capabilities all to deliver innovative and cost effective solutions that are going to make their customers happy as well as who they hope to really make happy which is the united states pentagon who decides on who gets a lot of these national defense. tracks as well as their allies and friends i think that's really what this is about what makes it so interesting is that this merger is going to hopefully appeal to a number of business cycles on a number of fronts whether it's aerospace. defense strategies that sort of thing and the merger also comes another interesting point after united technologies announced it would spin off its odious elevator division and carrier building systems unit so that means they've broken it up where their company can focus primarily on aerospace so the merger with raytheon exclude excludes those companies and they are expected to completely separate from united in the 1st half of next year and of course it's all happening at a time when so many aerospace and defense industries are looking for ways to cut

costs to please their potential clients and they're also getting more pressure to use their own money to invest in new technology but it's hard to do that when you're just trying to keep your businesses afloat i think that's what they're hoping will happen by combining these 2 businesses they're going to be able to survive a number of business cycles and my house is affecting the stock before mrs do the shareholders approve of this deal. well i think. if they approve it and i don't think that's going to happen till later in the year but so far i think it kind of caught a lot of people off guard you've seen a little bit of. difference in a reaction raytheon a seen a slight uptick of over one percent today in their stock on the new york stock exchange while united technologies has dropped about the same a little more than the same so this all stock deal is what they call a merger of equals and the 2 companies say it's expected to have a nearly $7574000000000.00 impact in annual sales of course it is subject to approval by government regulators as well as the shareholders but they've already

unveiled this website and veil the merger on their web site they're all excited about it it's not expected to require chinese regulatory approval it's not expected to get much scrutiny from the department of justice so under this new deal raytheon technologies will consolidate its operations into forbes. business is one will be intelligence in aerospace another based on defense and missile systems racing on i didn't realize this i looked into it but they're the biggest manufacturer of missiles in the world so it's really it's really interesting these company executives say by joining forces they're going to basically have unsurpassed technology and really be able to expand the research and development to make customers happy and keep their business going all year long they will be subject to the ups and downs of their suppliers like sor boeing who you know boeing we've seen their struggles with their 737 lately so you know if they were to downsize for any reason you have a supplier like united trying to supply them they don't have to worry about that as much if they're finding business in other areas including defense big step into a brave new world goalie barrows contributed to america's lawyer thanks for guiding

us around. and finally the ongoing trade war between the u.s. and china has had an unintended consequence dishonesty it turns out vietnam said on sunday they have found dozens of manufacturers illegally claiming their goods were made there when they actually originated in china why lie about such a thing well to avoid the 25 percent tariff imposed on $200000000000.00 in chinese products the fake products origin certificates have appeared and products from agriculture to textiles and even steel the deputy prime minister being me said that the issue has quote affected the reputation of the enemies businesses and goods adding that one noise will increase the punishment to terror cases of goods claiming to be in the music goods and other markets in the 1st quarter of this year u.s. imports of goods from vietnam have risen 40 percent year over year according to u.s. trade data standing sign of the times you know in the past maybe people might have

put. brand labels on there but now it's good value is really on having that made in vietnam label and they are concerned about their quality suffering from other people trying to masquerade their products as vietnamese. like you've updated on this that said by this time you can catch on youtube dot com bust r.t. c.n.n. . you know to go 2017 the german newspaper developed published an article claiming that the european union that last 30000000000 euros as a result of its

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didn't i never saw any contact with. any kind of went back to where they were so the officers back here there try again 15 feet apart at this point and that's when the officer pulled out his gun and. rights groups condemn saudi arabia for seeking to execute a teenage boy of his involvement in an anti-government rally. costanza jim invoked his term shall know why tween candidates whose favorites become better to motown often use the location for all they would. run thousands of videos on face the chop from you chamber he spots like a sonic stream is that one of the issue is really that straightforward.