right here on the news with rick sanchez where you know as we always like to say we do believe but dollywood strive to do news again. this is a boom bust the one business show you can't afford to miss unfair montecito in washington coming up markets are mixed as a result of us plaguing us trying to tension after beijing proposed new national security restrictions on hong kong and the fight nearly every sector being hit by the pandemic the defense industry thrives after being deemed essential we have a packed show today so let's go and dive right in.

the global economy is on its way to a long lasting global recession and its latest global financial stability report the international monetary fund said the bank sector will struggle to generate profits through 2025 and white house health adviser dr anthony fauci told the n.b.c. prolonged lockdowns could end up causing arab reparable damage while still warning that states over relaxing social distance restrictions to quickly well new coronavirus infection surged in latin america the region surpassed the u.s. and europe with the largest number of new cases in just one day and mexico are also contributing to those high numbers mexican health authorities reported a daily record spike of more than 2001 $173.00 infections on thursday alone while argentina pushed its critical deadline for its $65000000000.00 debt latin america's 3rd largest economy agreed to continue talks with their creditors. through june 2nd

and in a rare move china dropped its g.d.p. target for 2020 the world's 2nd largest economy made the decision this was due to uncertainties over the coronavirus of china's economy contracted by 6.8 percent in the 1st quarter well it was as its 1st decline in more than 4 decades and in a virtual meeting the world health organization said it's working nonstop since the start of covert 1000 to really help coordinate a response to this the beginning of the fundamental doubloon jobs word day and night to coordinate the global response to the levels of the organization we are today did the plan earlier this month we don't estimate that joe really grown $1700000000.00 is dollars to fund a response to 19 this year. so far almost $800000000.00 u.s. dollars has been plagued or deceived leaving just all that

$900000000.00 this comes as oxford university announced plans for its vaccines to start phase 2 trials the university said it's looking to recruit up to 10260 adults and children the 1st trial result is all that are involving about a 1000 people have not yet been released. u.s. china relations are under more pressure as beijing was to impose some controversial national security laws on hong kong well this was a centrally put an end to hong kong's anti-government protests that rattled the region last year for more money trying to bust co-host kristie i kristie how are the markets reacting friday to this escalating tension between the united states and china. all right now it seems we're back to precursor on a times where the tensions between us and china are rising again and today while the major indexes plunge as morning we're still sitting on top of some pretty solid gains for the week primarily led by the russell 200 small caps that are up about 7

percent for the week now the plunge today resulted from overnight news where china released the draft legislation over the new security measures as you just said but that was nowhere near as bad as what the hong kong market saw the benchmark saying index drop more than 5 percent on friday which is the worst one day percentage drop since 2015 now the hong kong dollar traders right now are especially susceptible because they're seeing unprecedented screens in liquidity as well spiking to new all time high surpassing the levels even seen during the financial crisis now this new law sparked by the news that china is now set to start a set of laws related to national security to meet boated on on the 28th well let me ask you this now the ministry of foreign affairs actually had a response of their own to take a listen. to the national security laws legislation on the hong kong special administrative region do away is merely china's internal affair and no foreign country has the right to tell you that we chinese government is determined and

safeguarding national sovereignty security and development interests trawling through the policy only one country 2 systems and then opposing any external interference in hong kong where we've heard this rhetoric before it sounds like a record broken record player the u.s. that should stay out of china's internal affairs how is this going to play out and how is the u.s. going to respond to this. well this is what we're witnessing right now is basically just politics play out on the world stage and that's what politics really is it's influence and control so this entire thing is about control and seeing who blinks 1st so as soon as a coronavirus news start to fade you have washington striking back at our limiting chip sales not only on u.s. companies but also on foreign companies as well. so then why is that not considered overreaching to get a foreign company to submit to washington decisions on washington's demand how is that overreaching when china is merely trying to bring home back on there is one

country 2 systems where it's just said in the name one country overreaching to be trying to dictate some law some new mandates on your territory so right now we're seeing another tit for tat battle going on washington wants to make life difficult for apollo and other trades companies idealists or restricting how market access china on the other hand goes ok we will establish national security laws in hong kong and i'm like what i was saying that this is quote a death knell for the city state autonomy that's not really china's intent at all the real attend intent is to cut off u.s. influence in the territory now hong kong is currently home to over a 1000 u.s. businesses and now use new laws will certainly put the future of these businesses at risk but tension in forcing them to relocate that's right there are a lot of u.s. businesses there we know that the united states china phase one trade deal china said that they were still going to hold up to those at phase one deal the promises that they made back then but we'll see how all this plays out because it does all

end up turning very much political blue west coast kristie i think you and you. supply chain 1st several sectors have ravaged the economy since the start of the pandemic well the auto industry has been hit hard but it's not stopping 2 european auto companies from moving forward with the merger chrysler and france's p.s.a. owner a few have not changed their terms for the merger deal that would create the world's 4th largest carmaker for more we are joined by lauren fix lauren good to see you. good to see you as well all lauren this deal was made months ago this was pre pandemic and many thought the deal structure would change given the market conditions right will turns out the deal hasn't changed and chairman john said that that the details are actually set in stone is this an overly confident statement of on the chairman's part. no this contract is already set in stone it was supposed to be put in place the 1st quarter of this year because of colvin they moved it to

a year from now but it really is going to help bolster the italian auto industry which is really what it's all about so it's a $5050.00 merger and since this is already in place there's not going to be a chance to change it we're talking about a special dividend of about $6000000000.00 so that also go back into the economy so that could help italy a lot. stuff at least something that they need given the circumstances now lauren when we last spoke we discussed just how heavily the united states actually relies on mexico for auto parts when it comes to manufacturing about 40 percent it was now currently there there is some conflict in our neighboring country over its electricity generation companies from foreign investors that provide these renewable clear power are in conflict with the government because those governments also provide their own electricity and how is all this affecting the auto industry and how is it going to affect the global supply chain. well it's starting off with the plants themselves who are $44.00 test plants are going to be solar and also wind the thing is they only have $23.00 of them that were in test mode and the

federal government of mexico said we want less private sector and more government controlled electricity they want to rely more on fossil fuels and coal because they've got a problem going on right now throughout the country and until this is under control and they don't really have real numbers like we do in other countries they're saying we don't want to invest in this but they have allowed 23 of these plants to continue producing electricity because you need a lot of that in order to produce vehicles so this also leans into the supply chain if they're not producing product in certain areas of the country and that means it's not coming. north america or other countries and this is actually causing a slowdown in production with general motors their most profitable segment pickup trucks so their 2nd shift is now running they've only got one shift running right now because they don't want to run a parts and that's something that could potentially happen they are seeing that they might be looking into some lawsuits for that as well and down in mexico yes but also lauren changing gears here a little bit this week 2 americans michael taylor and his son. peter taylor now

they were arrested over allegedly helping former nissan motor company chairman flee japan he was facing charges on financial misconduct they could be extradited to japan and they face up to 4 years in prison now there has not yet been a formal request for a formal extradition request from japan what do you see that the future holds for them. well that we don't know they have to have a formal request right now these are the older person the gentleman who's the father is an ex green beret so they were possibly part of it they were in japan during the time of carlos ghosn diskeeper there were also 7 people who are from turkey that were arrested there was 4 people that worked with them 2 of them were pilots and 2 flight attendants so we don't know who's involved in what but right now obviously they're trying to cover themselves because karl is gone said he was a hostage and now he is free in his country of lebanon and supposedly he's working on a movie end of books are the real curious to see what he has to say the whole escape

from from japan was definitely an interesting one so we'll be sure to follow it to see what happens here lauren fix the car coach it's all the time we have for today but thank you for your time. thank you. markets are mixed this week amid growing u.s. china tensions and hope of a possible corona virus vaccine let's start in russia where the mo x is up on the week the ruble hit some 10 week highs on thursday at $71.00 versus the u.s. dollar but it weakened on friday as oil prices slid russia's central bank said friday there is no need for negative interest rates but it is expected to cut rates by $100.00 basis points in the month of june while moving into asia the shanghai composite it's also down for the week taking substantial losses on thursday and friday as tech and semiconductors really took a hit to close out the week in hong kong the hong saying also down for the week

this is due to the increased tensions between the united states and china will the index fell by 5 percent on friday alone with china set to impose this new national security law in hong kong to combat the months of anti-government protests now to japan where the nikkei is actually up on the week we're seeing a green arrow here gaining just shy of 2 percent for the week the nikkei did take a hit on friday losing point 8 percent this was due to some of the factors that we just mentioned in india the sunset is also it's up on the week well this is despite the reserve bank of india taking an emergency measures on friday the worst that to mitigate the economic fallout of the coronavirus cutting the repl rate by about 40 basis points down to 4 percent in australia the a.s.x. now or seeing another green arrow up for the week after some big gains on monday the a.s.x. was relatively stable throughout the week but it did take some losses of just under one percent on friday mining company b.h.p.

group led gains on the week jumping more than 12 percent now in south africa the is also on the on the green this week this is despite diving. on friday after the country's central bank slashed interest rates by 50 basis points will now let's move over to europe where the 3 major indices are up for the week in london the footsie 100 ended up in the green but it closed out struggling as a rise in u.s. and china tensions continues to weigh on investor sentiment the german dax and the french cac also ended up on the week but it took a hit on thursday of 1.0.4 percent and 1.2 percent respectively eurozone up p.m.i. was at about 30.5 percent for may this is a substantial jump from 13.6 in april so there is some hope for an economic recovery as countries for their ease lock downs and their stay at home orders and weaving across the atlantic brazil's evo best buy also on the on the green this week this is after brazil stock market well it is down however about 48 percent for

the year in terms of dollars but goldman sachs did point out brazilian stocks are an ideal spot candidate well moving north so mexico where the b.m.v. is down on the week the peso looks a bit stronger on the week as the mexican economy did start to reopen but it wasn't able to stop a drop in the market at the back half of the week in the u.s. all 3 major indices the dow the s. and p. and the nasdaq are all up for the week this is bringing the overall new york stock exchange positive u.s. china tensions just simply weren't enough to drag down markets more positive to vittie about a possible run of our socks and actually helped push things up here in the united states and finishing things out in toronto the t.s.a. also up on the week on friday the composite did finish on a downward trend as it weakening oil prices pushed energy stocks lower and that is your global market walk. time now for a quick break but hang here because when we return despite nearly every sector

being hit by the run of our spend the defense industry is actually thriving and this is after workers for the industry were deemed essential as. going to break the numbers up above. leg.

length. the world is driven by a dreamer shaped by one person of those. who dares thinks. we dare to ask. all the team. no

shots. actually. let me stress over posts with. which your thirst for action. while the majority of the us economy suffers there is one industry that booming weapons american arms manufacturers are working full steam ahead and president trump is making sure that the coronavirus doesn't get in the way alex mahela bitch has the story. as a mere consider to be an economic sectors come to a standstill. the war machine keeps turning. in the past couple of months the u.s.

has raised tensions with iran and venezuela air strikes in somalia have intensified america has provoked russia by suggesting the deployment of nuclear weapons in poland and u.s. warships have sailed towards china when it comes to china just this week but u.s. has made matters even worse approving the sale of 18 advanced or paedos to taiwan for $180000000.00 needless to say china is not happy. with finally burnley opposes the u.s. arms sale may highway she has made. in total the sale of weapons to foreign entities by u.s. companies stands at around $180000000000.00 a year and coronavirus or not the trumpet ministration is making sure that doesn't slow down with covert 19 lockdowns standing in the way of manufacturing president trumpet his team have made sure to remove that hurdle when it comes to the arms

industry especially in terms of foreign sales added to the government's march list of essential workers which includes health care professionals and food producers in april president trump added defense industry personnel employed in foreign arms sales to the list by all accounts this order is also helping weapons makers fuel domestic demand as well we've spent $1.00 trillion dollars since i've been here more than that $1.00 trillion dollars on a military that we now have the strongest military we've ever had we have the best equipment the best missiles planes the best of everything according to the stockholm international peace research institute the united states remain the world's biggest defense spender in 2019 with a budget of 732000000000 representing 38 percent of all military spending in the world although slightly lower in. the pentagon released its 2021 budget request at

705000000000 placing an emphasis on weapons that could be used against nuclear powers such as china and russia combining domestic and international sales the u.s. arms industry is pushing to nearly a trillion dollars that is not something that the trumpet ministration is willing to stand in the way. even if american workers are put at risk. with covert $900.00 still raging in the states employees continue to work at military industry factories and offices around the country and with business booming the workforce is expanding weapons manufacturer northrop grumman is planning on hiring 10000 more workers this year raytheon is bolstering its military wing advertising 2000 new jobs boeing which has laid off thousands in its civilian wing is looking to hire hundreds on the military and security side of its business and the world's biggest arms dealer lockheed martin has added 2365 new jobs since the beginning of the

coronavirus lock down with the intention of hiring another 4600 people while some see national defense as essential to the u.s. many are wondering how manufacturing weapons for foreign entities fits that bill with the willingness to put american workers at risk by military industry assembly lines u.s. government priorities become even more. for our teeth and alex my heart of which. joining us now to go further and that is co-host an investigative journalist ben ben thanks for being with us today start by telling us more about this memo and what exactly does it entail and cover. yes so just to be completely clear with the audience so they understand this the trumpet ministration has decided that when it comes to essential workers back in march the defense industry workers were considered and deemed essential i think that makes sense in most people's minds but

what they didn't know was that in april a memo was sent and was adjusting this declaration to also include workers who were working on arms sales to foreign countries now the question becomes you know this is the big problem with talking about essential versus non-essential workers when we're talking about essential workers how is that essential to have people in factories working to build weapons for other countries these are weapons of war so creating a weapon of war and sinew overseas to another country is deemed an essential job here in the u.s. but people who work in salons or in restaurants and bars and are in danger of losing their entire livelihood are not deemed essential and i think that seems crazy to most people especially the air like you're saying the small businesses who are now having to file for bankruptcy who are on the job now that are no longer coming back now alex did just say he spoke about some of the companies that are profiting who else could be involved in this and how who are we even selling arms to yes so apparently 100 and. we just pulled up here

$202200000000.00 excuse me $2200000000.00 in possible weapons sales to india to morocco and to the philippines $2200000000.00 again to those countries in addition to that there's a $150000000.00 blanket fund for the united arab emirates to sell them weapons as well listen that means and by the way some of these workers don't want to be at the factories they complained about people with coronavirus or covert being at the factory there are questions about you know whether or not the factories are safe but that's a separate issue i think then the issue of this which is that when we use the term defense it is it is unacceptable in my opinion to use the term defense when you're describing arms sales go into other countries when we're selling to the saudis when we're selling arms to the united arab emirates these are not weapons that are being used for defense the saudis have been launching the absolute most horrific genocidal war in modern history against yemen killing off millions of people

who are dying not just from the war but from starvation and the u.s. is providing all those weapons and yet we still term that defense spending and as we said that right now we're sitting in this moment of this pandemic around the world where people are being told you cannot work but then all these carve outs and exceptions are being made for certain special interest groups and that's again the problem with essential versus non-essential not to it's a very interesting them considered essential right now they're working on on weapons to sell during the pandemic it's even and crazier to think but meanwhile the trumpet ministration they're pulling out of another treaty now surprise this time it's the open skies treaty with russia what was this treaty and why did the trump and ministration pull out yeah it goes all the way back to 1902 was put in place by george h.w. bush james baker was a secretary of state at the time related to when russia the soviet union 1st fell and russia was a very young country this open skies treaty was signed to essentially say that. you

know russian planes not carrying weapons and u.s. planes not carrying weapons could fly over russia and vice versa this is been in place since 92 apparently the trump administration doesn't like it nato doesn't like it because they're saying that there are certain cities and areas that russia won't let them fly over and they don't like russia flying over there isn't so the u.s. apparently trump had a golf course that a russian plane flew over and was angry that they flew over its golf course and so they're saying that they're going to pull out of this treaty and they're going to go back and renegotiate interims words as always a much better deal because that's what he always says he's going to do that's what he claims to do but the u.s. has pulled out of a lot of treaties as of late is this something i had in that were saying they pulled out of the 2015 iranian nuclear deal that they have the new start which expires next year in february with with russia as well that it doesn't look like they're going to renew it the united states wants china involved in some other quick answer what what do you see happening here i think

a lot of it is political i mean remember president truman ran on pulling out of the iran deal he did do that i think he wants to say that he's tough on these deals and he's making better deals but the question really becomes are these actually better deals that are getting done there is no deals no deal going on right and and with russia who knows what will get out well and had an election year so what that time taking not sure we'll get any deals here but was co-host an investigative journalist thank you for that report. so there are things. that's it for this time you can catch boom bust on demand on the brand new portable t.v. avondale on smartphones their vote will play on the apple app store by searching 1st of all t.v. and as always check it out on you tube dot com fresh from bust our t.v. will see you next time.

you tryna be with yeah you look. tough and i mean i'm on the pull of i used to my fellow huevos assumes. they could still smooth exterior on the plaza in this way got to dog so hard not to see the other dismayed to see what the look like that i was and i don't need to start then if. this is the only thing that we do is music because everybody fights in his own way. to. the floor from 5 to 50 miles out of his will to switch

it on the drum corps leave it at the top of the tables on the. what i see is this is the funds that is a lot from food stuffs. so what we've got to do is identify the threats that we have it's crazy on sunday should we let it be an arms race this is all off at this very dramatic development the only place really i'm going to resist i don't see how that strategy will be successful very critical guy time to sit down and talk. join me every thursday on the alec simon show and i'll be speaking to us of the world of politics sports business i'm show business i'll see that.

when i came out from this sale i really could not even shill heppy ever and sometimes even people are joking about something i would catch myself if i was even electing i feel guilty. and it's very probably due to cooled for a normal person to get a spin understand you live with that all your life i want to punt it out to you we live with it we did not receive help like now when our boys are coming you know from the wars in then finally they need to mend you know for the how do you call it depression when we didn't have to tell. the beatings were all the time gone. and. there would takeoff you know where you are but never your wearing and sometimes i would you know do it to

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