there's canada whose yield curve inverted by the most in nearly 2 decades is likely to cut next the bank of japan also announce that it will step in with further cuts and bond purchases in order to keep yields from sliding thailand also plans to step up with a $10000000000.00 economic boost in order to hit their 3 percent growth and counter an economic slowdown so while markets are now enjoying a temporary reprieve getting a lift from government stimulus worldwide this is borrowed time a rate cut will not save us from recession but it can buy us time like a temporary steroids shot by the market as traders now price in a floor a slew of negative indicators are still flashing warnings of a hard landing that should not be ignored. us home building fell for a 3rd straight month in july housing starts point 4 percent to a seasonally adjusted rate of $1190000.00 units last month this is especially bad considering that we are hitting at sitting at super low borger drapes right now

john deere a bellwether for the agriculture and farming industry missed earnings and lowered guidance on friday due to the high degree of uncertainty around the u.s. trade war with china equipment sales at the manufacturer declined 3 percent compared with the same last quarter fell in many men machinery manufacturer caterpillar also mr earnings and revenue estimates last month and cited farmers' disappointment and postponement of major equipment purchases this data falls in line with previous reports of a slowdown in capacity as businesses tighten spending as trade war head winds intensify retail sales in the u.s. were decent for the month of july as it increased by point 7 percent in july versus a cement point 3 percent the study pace of consumer spending is somewhat we assure and of the healthy labor market and the unemployment rate however keep in mind that these tend to be lagging indicators recessions have always followed through an all time low unemployment rate.

and here now to orient us in a seemingly disoriented global economic scenario is steve keen the creator of economics on patron and author of can we avoid another financial crisis steve welcome back fair number of commentators were talking up recession risk in the u.s. earlier this week especially since the final segment of the year yield curve inverted here in the united states and the end of a long shift there but then we see surprising strength in u.s. retail but again on the other hand we see this weakness in the u.s. housing market what's the real risk of the u.s. recession and which of these divergent indicators should we be paying the most attention to. well i found my general framework that ready is so right and that is that japanese are quite her eyes and that is that your aunt had a cross back in not it's not

a good ready spot so much profit. and the out of the mouth that it's been slowly day laborer a level of $2.00 times. that about one finds ons america exactly the same thing on the ballot at 70 s. and it's being ignored by all of my instrument. central banks so whenever these are central banks cross interests lie with it because nobody on any actually cush the private sector data leverage and that kills us all in the matter of suspects recession again so that's what i. that's that's my general framework and what the reserve has done of course in the last couple of days right stop believing they're going to time and i have that meeting call me that's actually. pretty special and to borrow my credit it's a matter that's what's causing a downturn right now so i think does the manager is having stepped down i don't think there's much interest. at the moment instead of the way the. thing

because the. because the end result was. much and it's all been hasn't responded nothing that's a lot of what has happened but it's not. fools. for wanting anything like 2007. so another big slowdown scare this week was actually germany after the official g.d.p. think i showed a contraction on point one percent in q tip so we may already be in a 2nd quarter of the contraction which would meet that textbook definition of a recession is the german recession already on its way and similarly what's the most important metric to follow when trying to make that call. i think it is germany's having a recession and germany's christ didn't have a credit because german banks and german policies are actually discouraged brought in borrowing and they've survived mainly on huge strides. but that is a self-inflicted problem as germans are obsessed with running a balanced budget or even better that i think runs us but there's more monetary

theory in the sauces if the government runs a service because the private sector they have the same deficit and the as a private sector doesn't borrow money to compensate then what you have is actually decline and. so this is an ongoing a lot of the germans they're trading that the entire economy like a household when a house all of them can spend less than a day and they will put my own side when a country tries to do it what actually happens is the attempt to trade the savings actually turns out completely out of line and so generally. having a recession. and steve circling back to asia china also seems to be slowing down but from a higher gear sort of speak clearly not in recession but with growth rates still well above the u.s. but when you back will mated to such high recent growth rates a significant slowdown can still be very uncomfortable at the margins what would you say is china's status right now and where is it heading. now china is actually

a we have mixture of both governments that we have the sas luxury theory that's popping out as much government money as necessary to run a leave the structure it's creating both in china and out saw china was so proud. it but at the same time they got through the 2000 and cross bar i don't think credit demands will compensate for western exports and you've had a pretty much a doubling of the difficult and shauna a huge amount of speculation. about a lot of which is coming coming across now but what you've got is even the usual government spending balancing the decline in profit spending with credit not necessarily slowing down but. a lot of those credit buy sed projects going bankrupt so sean islamists it's very hard to answer for the fundamentally with the government spending and its spending its infrastructure in trying to continue

growing very very vaults all my worry about china of course is not. very levelheaded in ellis' is always from steve keen the crown funded professor of economics on petrie on check out that content very interesting and author of can we avoid another financial crisis thanks for joining us. next week with the last leg of the yield curve the 2 ten's now in markets got spooked and lost some of the worst sessions of 2019 let's see how they ended up in moscow the molex ended down hitting a one month low where industrials and materials lead the decline as we see the 1st real signs of a recession on the horizon net capital outflows in the 1st 7 months increased by $1.00 times to $20000000000.00 as investors now seek safety over in asia the shanghai markets rallied up in a ball of how weak and they are 1.3 percent china's central bank now set the daily

midpoint weaker than 7 per dollar for the 7th consecutive session markets seem to be bouncing back as the terror threat has been pushed back temporarily until at least december 15th giving exports a little boost over in japan the nikkei recovered from its midweek scare when the benchmark member. but it still ended up down 1.3 percent for the week as investors are now betting that the bank of japan will ease further and expand stimulus of a global slowdown the economy recovery there quickly shifting to a more preemptive easing stance rather than waiting for any hard evidence indicating a loss of the momentum down in hong kong in the hang seng continued to fall closing down about one percent for the week as a rise continue for the 11th straight week disrupting multiple businesses and shutting down the airports now this resulted in a huge disruption of the day to day functioning of one of the world's most important financial centers it is now turning into a struggle of wills between the bears betting against hong kong equities and the mainland chinese investors who are now rapidly buying that dip and attempting to

restore stability short selling volume on the climbed up to 17 percent this week in total turnover the highest since 1908 main then now remains the net buyers for the 21st straight day on friday over in india the sensex managed to eke out a very small game barely a percent the positive market reaction to all the data released showing that retail inflation had eased to slightly in july however the upside right now is limited as the rupee is now the worst performing asian currency in august slipping 3.2 percent since august 1st down australia suffered this worst week tumbling down 2.9 percent leading into the weekend the dailies on the chart look nasty as were breaking all sorts of major support levels here the market actually lost a total of $60000000000.00 in value wiping out all of the gains it made over the past 2 months and finally the all shares in south africa they ended down as local

sentiment still remain bearish treasury yields for the developed markets have continued to high with all eyes now on the inversion materials mining and resources also declines as forecasts are now being adjusted for a slowdown in the near future now let's head over to danielle for that years and then america. thanks kristie there is a big trend in this week's arrows in europe in the americas see if you can spot it starting in paris with the cac down for the week in response to that week's events significantly down on monday rallying mid week before another sharp drop on thursday then up by more than one percent on friday not enough to make up for those earlier losses and in the week in the red the dax another red arrow no surprise there with the gloomy news this week on german g.d.p. growth contracting point one percent in quarter 2 footsie in the u.k. also down with a similar story with gains of 7 tenths of a percent on that index on friday not enough to offset the results from earlier in the week as breck's it drags on and we'll have more on that later in the show

moving to the americas starting with the cold we get another red arrow on the board for the week despite a favorable report out last friday from colombia predicting 3 point one percent growth for colombia in 2019 overall from 2.7 percent in the 1st half of the year another red arrow at the brazil and if you look at the 5 days across these markets and exchanges it's remarkable to see the pattern falling on monday rallying mid week before sharper drop on thursday muddling through friday and we see that pattern again here turning to north america and why you see the nasdaq and s. and p. 500 index all down for this dramatic week we see that same shape i mentioned in the charts for these exchanges almost to the minute tracking the market movement moving events of the week and finally ends iran so canada it's no surprise following the trend all red arrows as we can europe in the americas the ts acts like the dow had its worst day of the year this week on wednesday and that is your global stock

market wrap for the week. time now for a quick break but hang havoc as miley attack. as they i guess that's continuing coverage from china with an exclusive interview with the vice president of strategy we just. implications if boris johnson pulls the rumor early august greg said and as we get a break here the numbers at the close. range to. put themselves on the line. to get accepted or rejected.

so when you want to be president injured. or some want to. have to go right to be close to support them before 3 in the morning can't be good. i'm interested always in the waters in the. west sydney. came here where did you work before you came here when you live well. in many u.s. states capital punishment is still practiced convicted prisoners can spend years waiting for execution but most of the time the victims' families they are very much in favor of the death penalty there are some people because of what they did have given up the right to live among us somebody's been proven innocent of 2 years on death row and how many more exonerations is it going to take before we as a society realize that this is not working and we actually do something about it.

so what we've got to do is identify the threats that we have it's crazy going foundation let it be an arms race. spearing dramatic development the only. mostly resist i don't see how that strategy will be successful very critical time to sit down and talk. join me everything. simon chill and i'll be speaking to get us out of the world of politics. i'm show business. in this community there are people who believe that it's ok. it's really hard there

are no jobs and you see the kids ask and as a parent. i can come up with arguments there's a lot of conflict within the game between the teams most of the conflict i would say overall is around money and most of them money is made. close one of the children's each other is good business the state of california alone makes $6000000000.00 a year of prison complexes you get some 20 alive where. you don't care. anything. welcome back hong kong airline cathay pacific c.e.o.

rendered his designate tendered his resignation on friday the move comes amid tensions between the airline and beijing over the company's employees taking part in anti-government protests that have gripped hong kong for the last 2 and a half months the airline's chief customer and commercial officer paul lu who also serves under hawg resigned from his post hogg issued a statement about the situation saying quote these have been challenging weeks for the airline and it is right that paul and i take responsibility as leaders of the company augustus tonkin wing who serves as c.e.o. of heiko an engineering company owned by the airlines parent company swire pacific was tasked to take the reins of cathay the company's stock price has suffered having 10 year lows this week the chinese aviation regulatory arm issued a safety demands of cathay and required the airline to give full information of flight crew flying into the country's airspace. china as well a technology based accusations of technicians helping the african governments to

spy on their political opponents this is just the latest in a series of concerns about the telecom giants aspirations to penetrate world markets r.t. america sara month is our fans and headquarters and sat down with one of the company's heads to discuss these allegations. great tension between the united states and china have only gotten worse in recent months and the telecom giant has been the forefront of a lot of these united states that the telecom giant close to the national security this is something while we have repeatedly denied party america has been. we head quarters here in st john's diving deeper financer we sat down for an interview with vice president of strategy andrew williams and it's a private company owned by its employees as i say is about 100000 shareholders and to me as someone that's come to this company i think it's extraordinary the benefits of running an organization like that because people don't necessarily just

pick up their paycheck at the end of the week of the end of the month they have a real vested interest in the commercial success and the quality of the products and services that the company produces and the latest allegations against wall way the wall street journal reported while we technicians in at least 2 cases personally helped african governments spy on their political opponents unnamed senior surveillance officers said it was always employees received help from the offices in wally's headquarters uganda's top digital supplier while we were a few did the claim and said they'd never been engaged in such hacking activities we have neither the contracts nor the capabilities to do so you really have to check everything assume nothing. and trust almost nobody and that's that's a process in the system that we stick to and work with many of our partners around the world on that basis during our visit to always cyber security lab the telecom giant highlighted security as top priority and said they're the most transparent

company in the world this despite facing growing international scrutiny we refute it quite vociferously. again it just feels like it's one of those stories that come up now and again go to completely verify it it sounds like even other companies that have been cited in terms of involvement have made it very clear they don't even have contracts in. one of the countries involved so it looks like the story is unfortunately really just fake news and we have to suffer with you know as i say periodically why. a pledge its commitment to continue to provide the best technology and support for its customers all while continuing to fight the u.s. ban reporting in shenzhen china. are. turning to climate politics and asia and oceania australia is not making any friends this week after an acrimonious regional meeting the australian delegation led by recently

reelected prime minister scott morrison reportedly demanded the removal of references to keith climate protection goals such as phasing out coal limiting temperature increases to $1.00 degrees celsius and reaching the 0 greenhouse gas emissions by 2050 the foreign minister of the island nation of ghana want to set the talks were fierce at times and nearly broke down as other island nations facing existential threats from rising sea levels prost for urgent action the prime minister of tuvalu n l a civil war the told mr morrison in a joint press conference you were concerned about saving your economy in australia i am concerned about saving my people into vall who later australian deputy prime minister michael mccormick aggravated the row mr maccormack scoffed at his neighbor's demands for a phase out of coal which he says would cost australian johns' while he said of those neighbors facing rising seas quote they'll continue to survive because many of their workers come here and pick our fruit pick our fruit grown with hard australian enterprise and over.

and the ongoing reality show are so we know as brags that had another interesting episode this week as a major character who's been trying to keep himself on the edge of the straight finally made his big play here to give us the tea people say is hilary for which a board member of the british american business association so hillary let's just get right to the main event of this week on brags that which was jeremy corvet who has been remarkably cautious and slow to make a clear moved. brags that he finally made his big move and essentially called out the opposition members and conservatives opposed to no deal breaks that he joined forces with labor to prevent that outcome so what was their work or been proposed and where are we after his play yes of course as the leader of the labor party the opposition party and what he wants to do at all costs is to be in power so what he's trying to do is he's trying to sort of muster

a coalition he says he's going to call a no confidence vote and he's aiming to yes he's aiming to rally those tory backbenchers many of whom were originally remain as the liberal democrats and anybody else basically that will join him in trying to walk to the crux it no bricks that deal that johnson is going to push through by october 31st and so he's we're basically looking to head a caretaker government and sort of a transitional government which would be a coalition of all those different factions and know what about those m.p.'s who have said that no deal would be a grave threat to the u.s. should u.k. economy and perhaps even the stability the integrity of the u.k. as we know it with regard to northern ireland and scotland how safe or dangerous it is is it for them to pass on an opportunity to be seen as blocking a new deal bragg's it over their discomfort with a caretaker even a caretaker government headed by germany corbin we saw the mayor of london so he can try to force the question essentially for the lib dems with that sort of

pressure tactic work you're right he did try to force it i would say that the greatest existential threat is jeremy corbett because he would have a socialist government the markets would collapse he would be very anti-business and pro-union and that is at a time when actually we've seen you know the rate wages raise to the highest level they've been in many years to the british worker so i actually think he's more of an existential threat i think actually m.p.'s are going to be very reluctant to join him because boris johnson is such a force that of course what boris johnson has in his back part pocket is his relationship with donald trump on him and impending potential. all trade deal so i think it's going to be raillery risky for anybody who backs jeremy corbyn so i think they're going to try and stand fast and not cave to that pressure now the other dramatic event of this week was this m.p. the chair of the foreign affairs committee in parliament a member of prime minister johnson's conservative party he suggested that the pm could unilaterally pull out of the e.u.

within 10 days so how did they react to this suggestion and what did this tell us about how we're doing here actually because the us you're referring of course to tom took in hand he is the m.p. from canada mailing and this was sort of a twitter statement that he made and so actually what's the opposite of a twitter war to twitter proposition part of me thinks that it's just he's floating that idea almost like sort of like a worst case scenario maybe it was to brace the markets i actually think it would be unlikely within 10 days only for mainly 2 reasons i think that that would would shock international markets number one businesses are ready but maybe not within 10 days and also a lot of british holidaymakers of course are in europe at this time so that would throw them into a little bit of a conundrum returning to that back to the u.k. with this happening when people weren't prepared passport and customs wise and hillary pulling back for a bigger picture you mentioned the news on wages this week the national to statistics office said this we could be sick pay rose by 3.9 percent in the 2nd quarter the fastest rate of growth on that point since june of 2008 point food in

with the other elements in the larger picture what i think actually is it's great news it's great news for the british worker and of course what it does is it proves the brics it was all about the work of bracks it is about those that want jobs and want good wages in the u.k. not about global leaders not about those that are what the out of touch with the average worker across the u.k. and this actually fits very well with boris johnson strategy and i think it's great news for him and great news for anybody who's going forward with a no breaks it because it shows stability and an underlying on the line prosperity for the british worker. now looking forward here the story broke earlier today that the prime minister is going on a diplomatic blitz this coming week meeting with his counterparts in france and germany and ireland as well as the european council president oliver thomas ahead of an upcoming g. 7 meeting so we can kind of safely assume that brags there will be in the agenda but what do you think mr johnson's pitch will be when he sits down with these other decision makers are totally right of course breaks it will be on the agenda i'm sure i did just come at this news to just come out i think there are 2 factors here

i think that both mccraw and markel are going to be completely different to talk to the jury so they ever had she did not have a microphone to talk to who has a 14 percent or so it's 27 percent approval rating and angela merkel uncle merkel is facing 14 percent of german products that were born in germany from from germany by the u.k. and now bought from the u.s. so both macro and merkel are weakened and i think that's going to bode very well for boris johnson that's another reason i think he's going on the splits he also needs to sort of bypass the e.u. and go directly to those leaders because those leaders are being pressured by businesses in their countries. and so there's always hold for which board member of the british or american business association those are joining us pleasure. and that's it for this time you can catch boom bust on direct t.v. channel 321 dish network channel 280 or streaming 247 on pluto to be there for

channel 279 are as always had us up there you did our car boom bust r.t. see you next time. a lot of people talk about ponzi scheme. to people we know to parties game. so what we've got to do is identify the threats that we have it's crazy going foundation let it be an arms race is on offense spearing dramatic development only loosely and going to exist i don't see how that strategy will be successful at very critical time to sit down and talk.

with the truth of this twosome it will. be my real course on 3 and this is their. role is going to say to the board of business with the most disorder because. this isn't with. a lot of slow slow slow slow slow motion i am. on. the basis that i've got to go and that nobody else to look at the money but it's diplo

it's most it's so much more of a show such as the flu it's almost a. moon when you must. move. and it's community there are people who believe that it's ok to sell practically food on my table it's really hard there are no jobs and you see that i've got kids that ask heat and as a parent. i can come. there's a lot of conflict in the game between the 2 most of the conflict i would say. is made. close one on each other. each other is good because the state of california alone makes 6000000000 dollars a year of prison complexes you get some 20 year life where. you don't care and.

the trumpet ministration congress to permanently reauthorize a suspended mass surveillance program prompting an outcry from rights groups. u.s. issues a warrant seize an iranian oil tanker off the supreme court ordered its release earlier this week the vessel was impounded by british royal marines in the mediterranean last month. on the family of a young girl blocked from joining one of germany's most famed boys quiet gender discrimination in the cases thrown out by colton bennett.

weekend update from out.