just. and a very warm welcome to you you're watching on since last. this is boom bust broadcasting around the world and covering all aspects of business and how it affects us all i'm christiane and i'm british born washington here's a look at what we have on debt. a momentous step one that has never been taken before with china toward a future sharing reciprocal trade as we signed phase one of the historic trade deal and it's official the u.s.

and china have their phrase one trade deal but this is just the beginning of was a long negotiation process there's a lot to break down here and we're excited to have richard wolffe host of economic update on here to help us cut through the smoke and dig through the details. and while we have seen a breakthrough on the trade front the tension is still present in the tech sector and the race but we take a look at the latest battleground in the telecom fight taking place in the united kingdom so much to get to and so little time let's go. despite this touted as a quote a landmark signing of phase one between president and vice premier a little the markets are still on enthused phase one has pretty much been priced into the market already so if anything additional detail starts to take the steam out of the rally and it came of the surprise that existing u.s. tariffs on chinese goods will stay in place even after the deal is signed bloomberg reports that the 2 sides have an understanding that no sooner than 10 months but u.s. will review the progress and potentially additional terrorist affected $360000000000.00

worth of chinese imports this period of review is meant to give the trump an ministration time to verify that the pact has been honored secretary student has said that these terrorists will stay in place until there is a phase 2 if the president gets. phase 2 quickly he'll consider releasing terrorists as part of phase 2. interesting tactic moving the goalpost now when we had all expected some sort of tariff rollback in exchange for these massive ag purchases i mean isn't that the very point of quid pro quo in fair to go she asian something in exchange for something else analysts have contended that this is a new level of protectionism that would have been unthinkable before president tom took office and while trump wants phase 2 negotiations which is expected to tackle the big hard issues that touch on sovereignty to begin immediately that's going to be difficult because the people's daily reports that these 2 trade talks may not

start anytime soon now kicking the can down the road is a tradition in politics and china can also play this game to phase one was to get a truce and a cease fire to prevent further escalations from disturbing the markets and phase 2 well we'll say this friction between china and the u.s. is already starting to feel like the new normal in the market it is likely that trade arguments and terror threats and the u.s. investment restrictions will continue throughout 2020 the official text will be released later on to review but there is a nonpublic component of the agreement which is a confidential annex with detailed purchase amounts devil's always in the detail as we wait for the documents to be released kristie i mean this is fascinating it seems like it's a big win for the trump administration but what does china really getting out of actually signing this deal today here in washington exact us i've got a clue what i was getting with the quid pro quo why is china actually getting china is making these huge ad commitments 200000000000 dollars worth in the following 2

years and what is it getting not in return not getting spanked by more terrorist by the u.s. to avoid more punishment by the u.s. how is that exactly fair is not really getting any additional reward in return then why do they sign the deal to do that in order to have a cease fire in order to avoid. again slap by marc has which would have been in place in december and to further prevent more escalation and thereby volatility in the market and this also gives china a little bit of a breather and time to focus on their domestic market they're now looking ahead it's taken more than a year and a half to hammer out the details of phase one which you say already been beneficial really to china at this point so what about phase 2 are we really going to see progress on this i mean the china people's daily they say we won't see this for a while exactly and we've been saying on the shelf for some time along with many of our guests that phase 2 is unlikely to be resolved anytime soon because if phase one took a year to have phase 2 which will probably be broken out into a mini phase $22.00 mini phase $2.00 except that's not all be broken out and who

knows how long i'll take year and a half 2 years but we're going to definitely see on this so let's bring in professor richard wolfe economics to add a little bit of his insight here because he's one of those guys that christy was just talking about a professor i want to follow up on that same note that we just talked about there where do you see things when it comes to actually doing phase 2. well between you and me and the lamppost i don't see much happening i don't see much has happened here either i think this is 95 percent see after it's partly for the trumpet administration because they initiated all of this but partly as you correctly say for the chinese also to look as though 'd they're cooperating they're not interested in being a problem a position by the way which they have successfully promoted around the world where this is entirely seen as an american initiative an american commitment to protectionism not at all blaming china and that by the way in the long run is

a very very important gain for china it has taken over from the united states the position of being the reasonable global world economic power that isn't slapping anybody with tower of at least not as an initial. behavior it's only doing it if it is subjected to tariffs the united states you stop your pie the role of the dominant benevolent global world economic power mr trump whether you like him or not has lost that position for the united states and given the china 2 other quick things one yesterday the united states said they no longer consider china to be a currency manipulator my guess is that was on the table too because they'd the chinese don't want that kind of designation because it interferes in international monetary dealings and finally giving 10 months for

a decision about continuing maybe 2 years for the purchases by the chinese that are being talked about that's more than enough time for china to do and to play and to do many things that can undo the effect of tariffs let me remind you a tariff is a tax if you put a tax on chinese goods it makes them more expensive but if the chinese figure out ways to cheapen their goods well then they become competitive again even with our earth and they've already been doing that in the last 12 months they will now accelerate that and that is a long term competitive advantage to them because as they're having to keep in their products americans protected by the tariff wall have less of an incentive to do that and in the long run that's also favoring china you graham an excellent

point about america who used to be the dominant stabilizing power in the global stage and he has kind of a kind of lost that now so is 2020 said to be a repeat of 29000 with rampant volatility in the market as a kind of gets charged around by more tweets from the white house because as a manager as they got totally destroyed last year from trying to reposition their portfolios every other day according to trump. well i think here's what you have for 2020 and for 2021 you basically have conflicting pressures the uncertainty around china which in this deal perpetuates for the rest of the next of this year and probably into next year as well that's not good for the markets number one that's bad number 2 every 4 to 7 years capitalism everywhere in the world has a downturn we call that the business cycle every 4 to 7 years the last downturn here was in 2008 and 9 we are overdue and everybody in the stock market who knows

anything about history knows that and no one knows exactly when it will hit but that it will hit in the next year or 2 you can bet on it and that means that the stock market is going to be under a lot of pressure on the plus side the federal reserve keeps pumping wild amounts of money into the stock market the government just announced that we just passed $1.00 trillion dollars in government deficit spending so you're boosting the economy by the way done by a republican administration which used to criticize all that kind to behavior they're doing that that will boost the economy but i don't think that strong enough for the headwinds from the business cycle and the chinese uncertainty of course we'll talk further about this in the coming weeks but a professor of i want you to hang in there for about 90 seconds we want to set up this next story and get your reaction to it so just hang there for just a moment. on wednesday russian prime minister dmitri medvedev announced the

resignation of the country's government of the resignation came shortly after president vladimir putin gave his annual state of the nation address where he announced plans constitutional reforms following that speech the president the prime minister announced his resignation and president putin thanked him for his service. which we as a government of the russian federation should have lined the president of our country with an opportunity to make all necessary. decisions are changing the russian political says you know could you lead and in these conditions i believe that it would be right that the incumbent government of the russian federation resigns including the vertical zone the $17.00 of the most of the russian federation 2 of them for my party and i'd like to thank you for everything that has been done at this stage of our joint credit with it and i'd like to express my satisfaction at the results achieved that you would not everything of course he succeeded in everything never works out in its entirety and during the state of the nation the president said he plans to create a new position of deputy secretary of russia's security council which would be offered to medvedev under the proposed reforms of the state duma russia's lower

house of parliament will be given the authority to dame the prime minister and the rest of their cabinet so the process will not go into effect until after a referendum from the russian people the kremlin said today that president putin met with the head of the federal tax service mikhail mistrust and and offered him the role of prime minister which he has accepted so we're going to bring in bring back a presser richard wolffe right now host of economic update back in to break this all bound up with fessor wolf what do you make of this resignation of the russian government or what are we seeing here. well i think we are seeing an adjustment inside russia to the new and different global situation that they face they want to make some changes economically they have done really quite well they are looking at exports of energy to western europe far larger and more lucrative than what they had as little as

a few years ago all their strategy which in part they chose in part was full forced on them did not depend russia on exports of non energy goods the way for example the chinese economy is dependent on exports of manufactured goods so they haven't been hurt as badly as germany and other countries in the united states include. good bye this trade war it's kind of a peculiar moment for them and i think they're looking at a new and more powerful and economically more secure situation in the world you see that they've kind of moved in to become the key player in syria so they are they have expansion a little bit of their range of influence i think they're feeling their oats and they're going to make some changes and they feel that they are in a stronger global position and a stronger don't mess that position and they probably are now knows the situation with their government signing have any impact on the russian economy or any of

their economic relationships and market seems to be approving this as it's rallying the model x. as rallying 1.6 percent yeah i think that most people don't think that will have very little effect if this is very smooth everybody is congratulating everybody else everybody who's quitting is doing it without a murmur of opposition or resistance so this is all very choreographed very smooth and i think it's being read probably correctly by the markets as a sign of the self-confidence and their security there are problems inside russia there are problems within the equality in that society ever since the transition from the old soviet union those problems are not going away they're building up as they are elsewhere in the world that's going to be a problem for mr putin part of this is probably an attempt to see how to manage that that's a kind of an uncertainty but broadly speaking the markets see this as russia

becoming a more important player than it has been since 1909 and the collapse of the old soviet union professor richard wolffe of fear of understanding socialism thank you for breaking this all down for us we needed it today. my pleasure thank you. as wall street analysts initiate coverage on saudi aramco most agree that the upside has already been priced in and issued a neutral rating all except j.p. morgan christian malar issued an overweight rating with a price target of 37 reales representing a 6.6 percent from current levels new is predicated on stephan growth outlook and iran goes ability to sell oil at a premium it also has a lot of debt to equity ratio which will allow it to distribute a higher percentage of cash flow now saudi's production capacity is rising from

15000000 from the current 12000000 citing increased appetite by the kingdom to regain its share of global oil demand as the entire oil markets tighten meanwhile saudi aramco speer abu dhabi national oil company is also slowly fund raising add nok is seeks to reform and modernize similar to iran co and has raised more than $19000000000.00 over the past 3 years from overseas investors including k k r and black rock and knock plans to invest $45000000000.00 to expand its refining and petrochemicals operation and is looking to boost its international market share for crude and fuel the reforms are spearheaded by abu dhabi's crown prince shaikh mohammad bin ziad who seeks to restructure the company to run more efficiently more like a major than a state controlled monopoly. there is time now for a quick break but stay right here because just on the other side of this break the bible is a lie it's coming under new stresses the u.s.

has slammed britain over its decision to pursue wobblies role in its 5 g. development board which of the british american business association is on a tear and to help us look into the details of the pressure campaign and what the future of 5 g. in the british isles may look like it is we get a break here the numbers at the close.

back. money printing leads to the stock market going higher which makes anyone think the geniuses of. our strategy of bombing innocent people make said the crack of money and then the fed accommodates of course because we do so for national security and the stock market it's a good long time that everyone gets really smart thank you. so much more people killed personally the school system our soldiers our money and the stock market goes higher that's the cycle that we're in it's called genocide for profit it's

called america. descriptions. even for the owners so how to choose head food industry is telling us what to feed our pets more based on what. sounds necessarily good for the turns out may not be. people believe we have animals that have. allergies we are actually creating these. huge problems i believe can be linked to very simple problems. and some dog owners so heartbreaking stories about their pets streets the larger corporations are not very interested in proving or disproving the value of their food because they're already making a $1000000000.00 on it and there's no reason to do that research. welcome

back amazon will invest $1000000000.00 into small business in india over the next 5 years the company's c.e.o. jeff bezos said at an event in new delhi on thursday basis says the $1000000000.00 will help manufacturers resellers and brands in the country who rely on the platform the c.e.o. added that he hopes the investment will help export $10000000000.00 in indian made goods over the next 5 years the pleasure sports and in prime minister and hendra modi's make in india campaign during the event in new delhi the amazon founder touted the relationship between the u.s. and india saying i predict that the 21st century is going to be the indian century the most important alliance is going to be the alliance between india and the united states the world's oldest democracy and the world's largest democracy and as i had already promised more than $5000000000.00 towards growing their indian

business and the latest pledges come after the competition commission of india said it was invested in investigating amazon and wal-mart's flipkart for alleged anti-competitive practices. goldman sachs is up over one percent today on our names added beats analysts estimate for revenue but profits. dropped due to a $1100000000.00 litigation charge quarterly profits rose 23 percent and excluding the legal expense front which stems from the settlement of the one m.t.v. scandal profit was at 7 dollars and 60 $0.04 per share the bank's global markets division posted a 33 percent increase in revenue mainly driven by bonds now in the private banking side revenue grew by 52 percent investment banking revenue however declined due to a drop in emanate activity at the end of the year in summary net income was down by 24 percent to $1920000000.00 partially due to the legal expense and partially due to the 42 percent surge in operating expenses the bank is now in advanced

discussions with the d.o.j. to pay about $2000000000.00 to resolve the investigation into one m. d. later on this month goldman will hold its 1st ever investor day where c.e.o. david solomon will disclose the results of a business review and his plans to restructure and drive growth. the international fight over hallway technology continues as britain's new prime minister boris johnson says that if critics of follow want to oppose the technology they need to give a reason for its exclusion in the government contract and provide an alternative johnson went on to say quote the british public deserves to have access to the best possible technology we want to put in a gigabyte broadband for everybody now if people oppose one brand or another then they have to tell us what's the alternative the prime minister also pointed out that he wants to protect britain's role in the 5 eyes intelligence sharing

agreement between the united states britain canada new zealand and australia the us has been applying pressure on multiple countries to block all way from building out its 5 g. infrastructure now in fact should the trumpet ministration officials have said that allowing it to have access to the u.k.'s intelligence sharing would be nothing short of madness now joining us to discuss this further is hillary ford which board member of the british american business association because they're so boris johnson was extremely careful to talk about keeping the 5 relationship why did you feel the need to make that point so heavily well because it's been a very long standing global agreement of course as you mentioned the us canada australia new zealand and the u.k. and i think i would go though to defer to andrew parker he's the head of m i 5 and he was charged with the investigation as to whether this is safe or not which was initiated by bob c. bob seeley was on the is on the u.k. foreign affairs council

a conservative politician and they had extensive investigation as to whether it would be safe or not and basically because boris johnson was caught between a rock and a hard place he's made the pledge you just mention to the british public to to maintain compatible with being very competitive and maintain that versus this investigation it will in the end andrew pollack of them live. 5 has said he does not think that while way will jeopardize national security i think it's not so much a case as what is happening now it's what is the possibility of what could that software do because we know back to 2010 michael hayden the head of the u.s. and u.s. agency actually has said look this is nothing more than a vehicle for chinese espionage. this is actually interesting because of this that they could be there's so much concern over while great technology but there's never been any actual evidence that the company does allow back door access to the chinese government. at this point how are they able to continually say this well they might well everybody might rise in my sprint. so what do you make of that i

think it's the fear with the unknown and with the chinese i think it's because there have been cases against while way on the national security advisor i just mentioned michael hayden it was again going back to 2012 cases were opened want to about fraud and one about espionage commercial espionage and i think it's because of those cases there's always that expression where there's smoke there's fire and i think that those sort of like basically expose some sort of fear was that's never been that way with apple or verizon or any of the others and you have a question actually to follow up on that when it comes to apple who's receiving what's happening right now about the back door in the back before as we saw this after december did you know who you were so you had terribly the terrorist attack yes absolutely awful situation yeah but the u.s. government wants them to give a backdoor access into those phones because it's you know there is the line that is that is a global debate which is when it comes to terrorists do you want to have that access or not i mean people want it but then like you say it could be anything it

could be for commercial espionage absolute yes in the end it's about whoever is abusing the technology really can't blame the technology is it going to be is going to be a bad element and of acting grokked so now germany was also recently threatened by china's over its possible exclusion of way over its country's 5 g. build so what was the. well with germany they're in a very different situation of course germany is in a different situation because a quarter of that kamani factoring goes into china and so this situation is the ankle a muckle is very pressured by this the members of her party have actually opened a case where they want to pos legislation to ban while way into germany problem it is less so dependent on the 3 manufacturing access into china and the ambassador to germany from china who he has actually threatened that you know we might not accept those calls into china anymore so the issue there is this legislation that's being started by members of the opposing party and absolutely i mean it seems like

a lot of this i mean especially with what was happening in germany and now in the u.k. it's a lot of pressure from the united states who kind of started this battle against weiwei or at least made the biggest push on it and a lot of pressure from trump absolute hiller for it for which member of the board member of the british american business association thank you so much for joining us that azure. and finally some good news for the legions of nintendo and video game fans out there universal studios japan says it will launch super nintendo world in osaka in the summer of 2020 the new mario centric theme park is slated to open in time for the 2020 summer olympics which take place in tokyo which will funnel massive amounts of tourist to the country universal studios japan has been awfully koyo about giving any details but launched a new website and probably on tuesday with a little bit of fancy stuff so with that announcement they promise that the park will be a blend or will blend the physical world with the world of the video game and allow

visitors to feel as if they are playing inside their favorite nintendo video games now kristie it seems to me we're stepping away from the idea of virtual reality and now we're going to reality reality but still it's a video god still of the games are as they are gaming in reality how like an escape room thing but way more fun an animated kind of. and i saw some tech journalists who actually were at the a lot at the event in tokyo and they actually had these cool little watches that were branded with the nintendo characters and they were able to interact with the blocks and things around that will be around there yeah it'll be around the bank park so it's going to be it's going to be fascinating to watch out. for this time you can catch a boom bust on directv channel 482-1280 or is going. to 79 or as always you can hit us up at youtube dot com slash boom bust archie see you next time.

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6 these are the headlines this hour the russian president's now appointed chief. as the country's new prime minister off the problem to overwhelmingly voted in favour of his. meantime reaction from outside russia western media suggesting that but even a potential plans to devolve power to the russian parliament a part of a plot to study 2024. libya's rebel general this is new. reportedly agreed to abide by the ceasefire currently in effect in the war torn country comes hours after president he would be sending more troops to support the u.n. .