chief executive says she can see a way out of the crisis which now seems headed for a collision with the trade in terror a fight with united states 1st we go to hong kong for the latest with our. who filed this report. for this weekend's mostly peaceful protest demonstrators are saying that they're not giving up on their 5 demand they fear their economy is shrinking earlier today hong kong's chief executive kerry lam spoke to the public about setting up a platform for dialogue with various sectors of society we will start immediately a platform for dialogue with people from all walks of life so this is something that we want to do in a very sincere and humble manner i am my principal shows me to it to listen school what the people have to tell us and we want to reach up so the community as soon as possible when asked about the 5 demands lamb said the independent police complaints council will be conducting

a fact finding study to be released in approximately 6 months their report will include police brutality and those who have filed complaints on the anti extradition bill although lam again reiterated the bill is dead the crowd pushed on why the word withdraw has not been used meantime anti-government protesters are gearing up for another weekend of demonstrations we spoke to one organizer who included an additional demand on allegations of surveillance in the kuantan district we'll continue to insist on our 5 demands and on top of this we are going to voice our concern on the intelligence street lights is bought by the government on various districts including the quinton district we'll go with that when the government setting up these kind of smart street lights you know and in our city there are comes all of this kind of like street lights and then these kind of can be. equipped with ai technology can recognize our faces and when we

were captured by this can stand we will be under surveillance of the government but some on the pro-government side don't understand why the protesters are not yet satisfied i have been trying to to find know what it is you know something like that extradition bit we want to say i want to extradition bill is right. even if you say is wrong is not gone so why are we why is hong kong's to hold this term or despite the government in protesters role the media has also played a major part in the movement at the forefront since day one principal reporter from the local stan news described his struggle as a journalist and i seem to be this new. society. where my seems to have some 70 degree of freedom

of press about. getting. worse and suspecting it to get even worse because. according to some reports. chinese officials when the evaluate what happened from june to august. they think that one of the favorite is. the player to control the media this all while twitter and facebook banned hundreds of social media accounts believed to be connected to china those targeting the ongoing hong kong protests and accusations of an alleged propaganda campaign to control the protests narrative if there's any common ground from both sides perhaps that that they want to avoid a prolonged conflict and restart stability to their island reporting in hong kong fairmont to stay oka r.t. . meanwhile chinese state media is warning the united states not to connect the

hong kong protests to the ongoing trade negotiations between the 2 nations and an editorial published by the state run people's daily on monday the publication said the 2 situations should not be linked characterizing the hong kong protests as an internal matter writing quote making off for us about hong kong will not be helpful to economic and trade negotiations between china and the u.s. they would be naive in thinking. china would make concessions if they played the hong kong card another editorial published in the global times which is run by the people's daily shared a similar sentiment saying the u.s. should stop its meaningless threat of linking the chinese us trade talks with the hong kong problem beijing did not expect to quickly reach a trade deal with washington more chinese people are prepared that china and the u.s. may not reach a deal for a long time. and despite the calls to not relate the protests in hong kong to the trade talks president own trump waded into that exact territory at an airport in

morristown new jersey on his way back to the white house. i think it would be very hard. if they do. violence i mean if it's another the tiananmen square i think it's a very hard thing to do if there's violence. during an address to the detroit economic club u.s. vice president mike pence also urged beijing to resolve differences with protesters and that it would be harder to make a complete trade deal if there is violence in hong kong. but for the. beijing. it's beginning. to respect the hong kong laws to just. say yesterday it was much harder to make. these things.

there is certainly a lot to unpack here and to do just that we are fortunate to be joined by surat group senior asia pacific international policy specialist at the institute for china american studies. thanks for coming back and 1st of all the u.s. and china seem to be making parallel or mirroring statements here and while the chinese government may have been trying to push the hong kong issue away from the table where they're negotiating with mr trump it seems like they've still affectively by invoking them created a connection between the issues and mr trump just waited right into and created a bit of a red line here are these 2 tracks of the trade negotiations and the hong kong protests already effectively intitled entangled and isn't a chinese intervention and therefore u.s. pullback from trade talks becoming increasingly likely the longer the protests continue. yes they are partly in tangled and there have they will

become even more entanglement if china makes sticks of violent action in hong kong i would submit that the chances of the chinese entering and taking a while into action to to quell the protests is very very low and therefore the protests the trade talks will stand or fall on their separate merits and not so much because of hong kong and frankly i believe i would say that the sale of the f. 16 still taiwan is a big a factor in determining china's responses and its growing lack of trust in the united states than the situation in hong kong frankly that's a very interesting insightful comparison and that's very helpful and looking at how this could play out executive kerry lamb said on tuesday that she could see a way out her words from the impasse what's being discussed what she proposing and how likely is this trial balloon to fly and produce

a real resolution here. this trial balloon act. we could group could create the basis of a resolution it is a starting point what i will say about the hong kong protests is it's been going on for a long time but there's no guarantee that it will continue for just as long as the protestors effectively exercise during night time during the week and on weekends throughout the week and concept tembo a lot of the students are going to be going back to school there's talk of a boycott of school on monday as a cetera et cetera but so long as there is no violence i think the hong kong government has begun to bend in terms of being open to a to a judge led police inquiry inquiry of police actions there's again repetition of the extradition bill being dead and i presume the the word withdrawal is being held back once once the negotiations actually begin but what i would think she's trying

to do is begin an ongoing dialogue with broader civil society including the protesters once a while and seems to get tamped down we'll have to see if that comes about to not and even before this latest round of tough talk between us and china we saw some other economic consequences of the protests in the resignation of the c.e.o. of cathay pacific airways now a legislator who sided with the protest movement has also resigned from a position with cathay why did he quit and are we going to see more similar scenarios i can say and perhaps at other companies as a project go on. cats it has been a very interesting example out here simply because it is so heavily linked with with hong kong it's one kong from a main carrier i was in hong kong last week and the and hong kong international airport are still with cathay but cathay pacific aircraft the legislator resigned

he had been an expired lit with cathay i think he was he felt he was bringing negative publisher. he took after making things harder for them but also as we've known beijing as applied some stringent rules out here including denying any captive pilot caught up in the protests from not just one cafe but flying over chinese airspace and so i think beijing has really targeted on the place a finger on cafe hong kong government have followed that line and i would submit that kathy is a very specific info company and that this is not necessarily the case that will be more widespread i believe there was a full page advertisement recently by by by forbes who worked at some of the big accounting phones what they did it in their names and not under the name of anthony young et cetera et cetera and the companies have been has. have chosen to not not to be at associated with that advertisement so i think companies will be in there

there's a lot of money frankly to be made in hong kong and companies are just going to be a little cautious on this front and rather than get ahead and support the protests that spread inside is always from siragusa of the institute for china american stories thanks for joining us. you're most welcome. and even with a 90 day reprieve in the contentious fight between the united states and china and states and while way of china the chinese telecoms founder said in a monday memo that this is a live or die moment for his company in the internal memo ranging fake called on his team to work more aggressively to meet sales goals and said the company will go into quote battle mode to stay relevant in these trying times adding the company is facing a live or die moment if you cannot do the job then make way for our tank to roll and if you want to come on of the battlefield you can tie a rope around the tank to pull it all long everyone needs this sort of

determination mr wrenn rand went on to promise the firm will remain steadfast during this crisis and he ultimately expects survival for a while way. meanwhile the world's lot 4th largest smartphone suppliers shalmi reported an 87 percent drop in net profit for the 2nd quarter 2019 the beijing based tech companies net profit fell to 2000000000 yuan in quarter 2 down from 14600000000 for the same period last year revenue grew by 15 percent in the same period to up to 51900000000 yuan up from 45.2 in the 2nd quarter of $28.00 team the revenue increase was fuelled by an increase in the price of the company's phones on the news the company's stock saw a 3 percent increase in trading on the hong kong stock exchange. time now for a quick break but stay tuned because when we return there is big news for the banks as the f.d.i.c has adjusted the much discussed vocal rule but more importantly what

does this mean for consumers bartlett neighbor a public citizen lend a hand to break down what the rule change means especially in the wake of all those rate cuts and finally hop over to you for the latest crisis is unfolding in italy as the nation's prime minister has announced his resignation harveys alex hill that strong is the show to give us a look. commune folding in the euro zone. and as we go to break here are the market numbers up close. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race. spearing dramatic development only mostly i'm going to exist i don't see how that strategy will be successful very critical

time to sit down and talk. going back to medieval days at the church which is like the monetarist present day 21st century where they would discuss how many angels can dance on the head of a pin and they were in power and they enclosed this little model and now we've got neo feudalism or you guys central bankers discussing how many derivatives can be stuffed into a worthless action fund and we've got folks in san francisco in newark new jersey dyson medieval diseases.

give me too much. time we said. there's enough money but i'm also the most companies you know so i've been the good news is you. know most of when i meet will. yeah you know because you didn't you know it's just. you. see in the little. kid is. always the in the. to your list. so to. speak is the.

welcome back the spotlight of scrutiny on big tech companies in the united states is about to become brighter as attorney general from as many as 20 states are reported to be preparing a massive anti-trust investigation the new york times and wall street journal both reported on the investigation planning with the journal citing sources that say forming processes could start as early as next month amazon apple facebook and google all face obvious and serious risks from an investigation into anti-competitive behavior given their increasingly integrated roles in many sectors of commerce creating many niches for market power to be exploited and for investigators to scrutinize over a very long term big will now have to deal with state level scrutiny added to a broad investigation by both the justice department into antitrust issues in tech and an antitrust probe into facebook by the federal trade commission. and staying

on the regulation and enforcement be a much discussed financial post when you have a crisis form the so called so so called vocal rule is set for a significant change out of the federal deposit insurance corporation or f.d.i.c gave the green light to a proposal involving 5 agencies with. relevant responsibility is here now to sort it all out for us is bartlett naylor financial policy advocate at public citizen now bartlett 1st of all let's remind ourselves what was the volcker busy rule why was it so important that it be passed post-crisis and what was the role of that rule in solving this problem of proprietary trading that we hear about the 2008 financial crisis took place for a number of reasons but one of them was that large financial institutions made some pretty disastrous bets bear stearns went bust because some of the positions on its trading book were found to be far less valuable than bear stearns had represented to the public did a layman brothers even after the financial crash j.p.

morgan self professed best managed bank in the world lost something like $6000000000.00 when a couple of guys made a bad bet so the financial crime crash and banking stability generally can be jeopardized when proprietary trading that's the speculation that takes place goes awry section $619.00 of the 2010 dodd frank law known as the volcker rule after the former federal reserve chairman basically says don't trade with the positives money that has a bunch of exceptions those exceptions are the problem what happened today and will happen is that the regulators are relaxing those guardrails on proprietary trading right and so the specifics of what they voted on today center on the definition of proprietary trade in the essentially expanded that can you go into the details of exactly what the term now will be construed to mean they took what they took away from a proposal last year was the so-called fair value accounting prog

fair value means that if you have a whole bunch of assets and accounting rules require you to mark them as if they are traded today we're going to consider them subject to the volcker rule restrictions and they took that away. a what does that mean numerically director marty grunberg enumerated that about half of the speculation assets or half of the assets at f.d.i.c and shared banks more than $600000000000.00 will no longer be subject to the volcker rule they basically will be able to be traded at will with no cops watching whether or not that's that's a problem and could blow holes through the bank's capital base right and that member the vote was 3 to one at the f.t.c. in the dissenting vote see board member and former f.d.i.c chair martin groom burge said that under the rule approved today on tuesday he said the vocal rule will no

longer impose a meaningful constraint on speculative and proprietary trading by banks and bank holding companies benefiting from a public safety net that sounds pretty serious what's the worst case scenario of what could happen after this change what's worst case scenarios that thanks can blow through their capital and again capital is simply assets minus liabilities and the banking sector is only about 6 but that that difference is only about 6 percent so when you allow the likes of j.p. morgan to be morgan has $1.00 trillion dollars in deposits $800000000000.00 of that goes back out in the form of loans but the other $600000000000.00 is being traded if only a small amount of that is lost and you lose money in speculation far faster then you lose it and alone then we can have serious problems on our on our hands we can blow through that very thin level of capital at the likes of j.p. morgan right and it's striking that we're talking about this relaxation of this

guardrail as you say at a time when recession fears are increasing so following the logic through what could happen if when this intersects with perhaps a coming recession the single biggest problem with big banks right now is that they are making too many leverage loans that means loans to company that are already. in indebted when the economy falters those are going to be the 1st companies to default what a bank will do trying to maintain margins is double down arguably on its prop trading to make up where they're making losses in its loan portfolio so it can hasten the insolvency of a big bank very interesting times of living through get good to be guided by par bartlett naylor a public citizen thanks for your time thank you. they split in italy's populist ruling coalition has prompted the country's prime

minister to step down giuseppe conti who held the position for just over a year is blaming his right wing interior minister matteo salvini for the political crisis which could potentially weaken italy's economy and status in the european union with more we're joined by our t's alex a hell of it in toronto al it's good to have you back italy's now former prime minister is saying demands for a fresh election from within his coalition are both selfish and irresponsible what do we know about this latest squabbling within this fractious coalition. as you mentioned he's blaming everything on the table salvini who is an interior minister and also the leader of the league party now think back to the lead party used to be a separatist party you for the for northern italy to separate from the south and then they became all loving italian party but they are far right and they've joined forces with contacts party 5 star which is also seen there both seen as populist

and euro skeptic now there are differences though obviously which of fracture these 2 parties immigration being one of the big things the league is anti immigration conti is not that kind of man he hasn't signed off on keeping immigrants off the beaches and salvini was ticked off by this as well as many other things like conti's done he just basically said. contant hasn't done enough for italy what condi is saying those of you just taken advantage of a situation here there's a rift in the party the league is polling high this guy is all about himself and his party it's not about italy well salvini will say it's all about italy i am the guy who's the nationalist and i'm fighting for my country so this is what's happening here and this is why this coalition is split and our continent has resigned and as you mention immigration has been an area tend to within the coalition also economic issues have caused the leaders to butt heads so what does this sort of stalemate now mean for italy's already fragile economy. makes things

worse obviously we're talking about it unstable government a government that's cracking at the seams which means that both the financial institutions of that country as well as government institutions are weakened at this point which is obviously not good for the economy now we're a lot of people are looking at this as a chance for an another election to be pushed that's what everybody thinks salvini wants but that's not a certainty we have a prime minister we have a president the president of italy can stop that from happening he can actually form a coalition with the democratic party that would be moving more center left and leave so totally out of the equation so as it stands right now obviously this isn't looking good internally in italy it's a ready a country that. debt even though it is one of the 8 largest economies in the world and when something like this goes down well it just makes the country look on stable to investors right and speaking of the view from the outside the e.u. is also very concerned about this obviously when you have

a prospect the trivial prospect of a collapse in a euro zone economy the e.u. takes a big interest what's their view of this and others in other stakeholders on the continent. but obviously the e.u. and other investors in italy are worried about this as i mentioned you know that you have a massive public debt. there and that's very worrisome and on a side from that when you have a unstable government like we're seeing right now that signals a lot of bad things but you know what when it comes to bondholders there is a bit of an upside here here let's look at this chart it gives you no idea what's actually going on when it comes to money being invested in the country and what's interesting here is that you definitely see a dip when this crack happened a few weeks ago when you things were looking at red alert here that this is this coalition is going to fall apart but now just with the word put out just a simple word that there might be no reelection there actually is are no new election i should say that they might be avoided and that the country could build

a new coalition as weak as that would be because just imagine the democratic party with 5 star these are 2 very different parties it would be a weak coalition and but it's still there is the chance of avoiding another election what bondholders are as well as the e.u. are worried about is a sell vini government which would go far right and obviously salvini has been talking about just putting the country more in debt getting you know spending more money on italy which worries everybody especially europe which is so worried about that debt in the 1st place very interesting situation he's just back from mentally 10 rested ready and well informed our correspondent alex mail that thanks so much. thank you. that's it for this time you can catch boom bust on you tube dot com slash boom bust our team see you next time.

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so what we've got to do is identify the threats that we have it's crazy confront dacian let it be an arms race off and spearing dramatic development only personally i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk. kass calendar is drawing alfonzo along. this changing page he's dard. his 1st words were that allow a c. or a choice he post you've got 2 years to live. i have no doubt that what happened was criminal.

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i i i i'm. following with the finnish president vladimir putin the timing of a controversial new u.s. missile tests. for washington. such weapons. confirms previous claims that america's oil and gas industry persuaded the government to criminalize protests against pipelines. 6 years to the day since a major chemical attack in syria as we look at what progress has been made the official investigation into that case and others across syria.