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tv   Boom Bust  RT  December 20, 2017 3:30am-4:00am EST

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and switched to bitcoin cash although he only reverted to a cash spinoff his criticisms of bitcoin like the high transaction costs and amount of time it takes to complete them came as a shock to many and those surprising comments come on the heels of more bad news for crypto currency with one major exchange in south korea shutting down and filing for bankruptcy after suffering its second cyber attack in eight months the appian which operates the seoul based you but exchange ceased trading on tuesday in a statement yappin said the latest hack caused the company to lose seventeen percent of its total assets but didn't specify the financial value of its losses. and in the latest round of merger news we're seeing big moves in the food and health care industries the new jersey based campbell soup is spending four point eight seven billion dollars to pay north carolina based snyders lance lance is known for its healthy snacks like spiders of hanover kettle brand and pop secret
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all of which will become part of campbell's division that makes pepperidge farm and goldfish snacks meanwhile hershey foods located in pennsylvania is buying amplify snack brand of texas for one point six billion dollars amplify makes skinny pop and other non chocolate snacks at her she is hoping to integrate into its businesses but still the major changes in the food industry have not been able to outshine the mergers in health care at least not yet not long after we learned that c.v.s. is buying aetna humana and two private equity firms announced their purchase of kinda health care for four point one billion dollars the deal mainly impacts kindred at home which employs forty thousand caregivers who serve nearly one hundred thirty patients per day. thank. you after disney announced its plan to acquire parts of twenty first century fox question. about everything from competition to cable bundles quickly
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popped up but there are just as many if not more about the future of sports broadcasting here to talk more about that as victor matheson professor of economics at holy cross victor my main question is if twenty first century fox which is one of the most successful media companies in the world doesn't seem value in holding on to these regional networks why does disney think it can benefit from them well so one of the nice things about these regional networks so there's a twenty two what regional networks that are put into this deal is. e.s.p.n. which is part of the disney empire thing so there's some good synergy between them and these local companies so for example you could imagine the local companies benefiting from the branding of the of the big name like e.s.p.n. as well as access to national talent from the european on on air talent pool
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on the other hand what u.s. pm gets out of this is they get access to roughly fifty you local teams and the broadcasting deals there and so you have this kind of nice deal where both sides benefit the local companies can benefit from the expertise of the national company and the national broadcaster benefits from having all this additional content so as you just said disney which e.s.p.n. controls twenty two fox sports for is a regional networks that have the rights to forty four professional baseball basketball and hockey teams so is saving e.s.p.n. the main reason why you think disney went after this acquisition. so i wouldn't say this is a primary piece but this is probably about half of the deal really is tied up in these the acquisition of these sports products one particularly important thing is in today's modern media world it turns out sports are one of the few things that people still watch live and so it's still one of the things that you can actually
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sell commercial advertising to very well with so many people coming to cable and so many people watching all of their television shows either through streaming or by recording it on d.v.r. those are things we're tarred to get eyeballs and from the commercials we watch sports live which means it's a lot easier to get people to actually stick around and watch those commercials which of course is where yes p.n. makes all their money what do you think this deal long mean for consumers or consumers is there anything that you think could change drastically or will it stay the same pretty much. so consumers it's hard to know whether they're made better off or worse off with this certainly one thing yes p.n. is thinking is if they control both the local sports fans local teams as well as the big national package that makes it much more difficult for that local councillor to cut the cable completely e.s.p.n.
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is typically the most expensive single channel single channel in a person's t.v. cab package for people so yes pm is trying to figure out ways that they can make sure that those local watchers those local viewers that they stick around with the cable package and one way to do it is to make sure that look i've got all the big national t.v. games on e.s.p.n. but i also have all of your local sports teams favorites the of these new newly acquired local regional fox sports networks well on monday as panel president john skipper an announced his resignation and in the summer jamie horowitz president of fox sports national was fired and they both left for different reasons but does it matter that both of them are now gonna mean what do you think this might mean for the industry moving forward in a general sense. well so i think the really interesting question from kind of
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a national broadcasting landscape is what happens to all of the you now box sports networks so what is not included in the disney deal is the national fox sports the epis one fs two whether whether those remain as a big competitor to e.s.p.n. or not one thing that we believe that's happened we don't have all the financials but we believe that the national t.v. contracts for for fox sports the national channels were being highly subsidized with the money they were making from their local channels so it'll be interesting to see whether fox sports as a national channel can survive without all of its local futile shinners buter channels bringing in all that revenue is pianos constantly criticized as being too political so do you think by joining forces with fox sports which has been operated by the same people that run fox news and cox business network well help that all.
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so i find that pretty hard to believe again there will be a pretty strong break here again fox news is not part of the deal so with it when we say that disney has acquired twenty first century fox they're actually acquiring most of the stuff except for fox news as well as the national fox sports so i would suspect that doesn't do a whole lot for e.s.p.n. political image because i think you know again fox news and the very conservative political arm that's going to stay active and is going to stay step separate from this particular deal right well i want to ask you now about the n.f.l. which has also had some issues over the past year or so to say the least panthers owner terry richardson is selling his team over allegations of sexual assault and making racist remarks to employees so how much of a risk is his sudden departure to the franchise which is estimated by forms to be
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worth two point three billion dollars. i suspect that getting rid of the owner. means that the value of that franchise hasn't gone down in value at all again it's something where the centrally as soon as the public knew about these these allegations the owner is separating himself from the franchise while the franchise is still valuable it's very unlikely that the franchise will be drug down will will be dragged down by the owner you know unlike for example the weinstein corporation getting dragged down by those sexual misconduct allegations probably not the same thing is going to happen here again based on how quickly this happened and and also of course the identity of the panthers isn't nearly as tied up with the owner as for example the weinstein company was with harvey weinstein a lot of notable public figures and business and politic. and even entertainment
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have expressed interest in buying the panthers including collin capper nick so assuming just for the sake of this question if he had the billions of dollars to purchase the team what would happen if he tried to buy it or if he ended up buying it so the n.f.l. does have a fairly strict ownership clause where the fellow and at n.f.l. owners can actually block access of purchasing a team from their fellow owners fairly fairly easily as a matter of fact it is at least rumored and probably more than rumors that the other n.f.l. owners for many many years did not want donald trump. as a fellow owner and and in fact in the one nine hundred eighty s. donald trump essentially started his own rival football league the us a felt it only survived three years before declaring bankruptcy but basically started his only when the other n.f.l. owners wouldn't let him be part of his club i would suspect that you would find the
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n.f.l. owners not looking kindly on an ownership group that is that has concomitant i guess as part of that group they are map us and professor of economics at holy cross thanks so much for your time today thank you for having me. time now for a quick break but stick around because when we were turned will we see big price fluctuations in commodities like gold and silver next year peter schiff will tell us what he thinks we can expect and has the traits bapak following and one party a finally on to one and our chief correspondent alex mckellen that will fill us in as we go to break through the numbers at the closing bell. how does it feel to be a share of the greatest job in the world it's as close to being
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a king as any job there is what business model helps to run a prison now we just do or don't like to see nobody you know visitation i don't no one comes anymore we don't have to sarge them anymore is cost effective that's what they want to do that you know and they don't give a damn if you do the chores or not there are actually paying enough to put it back into the good the louisiana incarceration rate is twice as high as the u.s. in breach what she could is behind such success. everybody i'm stephen bach. wrote american under george bush in our view this is my buddy my biggest financial gurus will use a little bit different i'm. going to the well you know what with all the drama
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happening in our country. every day americans. look to the store to bridge the gap this is the great american. the world's biggest emitter of greenhouse gases is trying to train in pollution now leaders in china announced on tuesday that they approved a plan for a carbon trading system initially it will cover the country's power generation plants but the intent is for it to spread to other sectors like iron and steel aluminum petro chemicals and so on according to the plan power plants will be
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issued in allowance to emit a certain amount of carbon dioxide that plants undershoot their targets and they can sell their excess permits to other generators by having the government put a price on emissions that prevents companies from passing on the environmental costs to the public currently china's power sector releases three point three billion tonnes of carbon emissions per year and this plan might not be in place for at least another year. back in may an infamous cyber attack known as want to cry hit hospitals banks and institutions all over the world and now the trump administration believes they know who did it in an op ed in the wall street journal homeland security adviser tom. cert said that it was north korea that was responsible wrote we do not make this allegation lightly it is based on evidence we are not alone with our findings either other governments and private companies agree the united kingdom attributes the attack to north korea and microsoft traced
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the attack to cyber affiliates of the north korean government he then called on the private sector to quote increase its accountability in the cyber realm to stop north korea and other bad actors from having the ability to launch these types of attacks and applauded microsoft for investigating want to cry on its own. despite rising interest rates or a jump in crypto currency prices a new report from the world gold council says gold prices will continue upwards in two thousand and eighteen to talk more about this we're joined now by peter schiff c.e.o. of euro pacific capital and chairman of schiff gold peter in the world gold council report chief market strategist john reid points to increasing global income as a reason we can see gold rise but where exactly is income rising enough to make that much of an impact. well maria lot of the you come as
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a function of more money right of people earn more money because central banks create more money they use the additional incomes to bid up prices for everything so i think a lot of prices are going to be rising not just the price of gold but i do believe as more people perceive the threat of inflation and see the dangers of what the central banks have been doing i think the price of gold will rise faster than a lot of other prices as people brace it as a hedge against inflation as a store of value. well then lengthy the founder of echo bay partners said that we could see gold prices hit seven hundred dollars per ounce in two thousand and eighteen which would be a four hundred fifty dollar increase from the current price we see now if you think he's right i don't know i mean i don't know how quickly the price of gold is going to rise he could be right but it might go a lot higher than that but it might not quite get that high i mean i think it's going higher i think eventually it's going to take off right it's hard to know
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exactly when that is going to happen whether it happens in twenty eighteen or twenty nine hundred twenty twenty but i don't think you have to know in order to profit from it i think you just have to buy it because i think that the path of least resistance for gold is up and it's been creeping higher ever since the fed first started raising interest rates back in december of two thousand and fifteen everybody's been expecting the price of gold to go down yet it continues to climb a wall of worry but it's some point you're going to get more buyers coming in off the sidelines of the price is going to take off but before that happens you know just by now well earlier this year we saw gold rally after the fed announced increases in the short term interest rates and the fed has signaled a rate rise of two percent for twenty eight hundred two point five percent and twenty nineteen and three percent by two thousand and twenty so going into twenty eighteen with that in mind what kind of price fluctuations should we expect in gold or silver. well what regardless of what the fed is posturing it's hard to know if
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they're going to deliver on those rate hikes but even if they do is going to be against the backdrop of rising inflation or where real interest rates are actually declining even as the fed is nudging up nominal rates much too slowly you know if you look right now at the yield on u.s. treasuries in euro's hedged back to the euro it's at an all time record low you know not too long ago you could get two hundred fifty basis points of yield in europe buying u.s. treasuries and hedging your currency risk today if someone in europe buys the u.s. treasury the yield is about negative sixty basis points so despite these rate hikes the yield on treasuries is lower not higher and i think that yoga is going to go even lower as the dollar continues to fall against not only the euro but just about every other currency on the planet while the dollar is down as congress is pushing hard to get a bail in front of president trump before the holiday break so do you think investors eyeing the dollar in gold are starting to maybe worry over the actual
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impact of the new tax bill. well they should be worried if they're not worrying now because what this tax bill is going to produce is much larger deficits because while there is some relief from taxes there are some tax cuts here it's not tax reform it is tax cuts but the tax cuts are going to deplete revenue coming into the government as government spending is increasing unchecked and in fact i believe they are underestimating the impact of the deficit because a lot of americans are going to change their behavior as a result of the changes in the tax law to take advantage of the loopholes that they are opening up a lot of people who are now employees are going to become independent contractors and they're actually going to pay twenty percent lower taxes than what is being assumed when they are judging the impact and i also think a lot of the states are going to change the way they tax their citizens i think
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they are going to lower their income taxes on wages and salaries and instead have taxes on employers who pay wages and salaries the impact on the employee is the same but what it means is that now the employer can deduct those costs on their taxes and so the government is not going to raise anywhere near the revenue they think from the limitations of the salta duction so you're going to see a huge impact on the deficits which are going up anyway so rising budget deficits are very bearish for the dollar because they mean the fed is going to have to print a lot more money to buy up all the bonds that the treasury is going to have to sell to replace the tax revenue it lost some have suggested that bit coin has been responsible for gold's depressed returns but others say that it can be a bit quine because the assets have different uses so what do you think the cause of recent depressed returns on gold are. well i think you've got the tail wagging the dog i think one of the reasons that bitcoin has been so successful is because
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gold has done nothing really is spend so quiet the last year and i think a lot of people maybe who might have bought gold have bought bitcoin but i don't think that has done much to depress the price of gold but i think that has done a lot to cause the price of bitcoin to skyrocket and i think probably one of the most dangerous things for big quite if you're involved in that bubble would be a big increase in the price of gold because once the price of gold starts to move now people want to own real gold they don't need to own what they believe to be digital gold but what i believe is is nothing more than fool's gold and so gold going up could really be the pin that pricks the coin bubble peter schiff the hero pacific capital on chairman of ship called thanks so much for your time today my pleasure. canada and britain are at a critical point in a battle with the u.s. aerospace giant boeing on thursday the u.s.
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international trade commission spent the day listening to testimony with both sides accusing each other of breaching trade rules artie's alex and hell that is in toronto with more for us alex what's the latest from the tribunal. we've been waiting a decision all day but nothing yet this tribunal is going on the hearings are still going on but look let's break down what's going on what is boeing's complaint here now the main complaint with bombard j. is they basically are saying that bombards dumping planes into the u.s. and we're talking specifically about seventy five c. series jets that were sold or a deal was made with delta airlines the planes were sold at twenty million a pop at the list price is thirty three million and what boeing is saying is that this just is not fair it's because they get subsidies from the canadian government that they can bring the prices down so low now we know that back in october the u.s. commerce department ruled in favor of boeing putting a three hundred percent tariff on the c.
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series jets but this is what they're discussing right now and of course this could be overturned but as it stands discounting chet's really in the big picture is is not something that is uncommon like we've see it usually and usually about a fifty percent discount to how many here with a little bit different is that we're looking at about sixty to seventy percent that's a big difference so that's i think really what put this on the radar now from the other side we're talking about from the canadian the british side they're saying that there's speculation that boeing itself was also getting subsidies or at least help from the u.s. government that's the brits argument and the canadian ambassador also came out and he said that when we're looking at boeing aircraft there really is no proof here that boeing is losing anything in this deal that bombards j. has with delta that's a first lady and second of all there's a lot of jobs on the line not only in the u.k. and in canada but in the u.s. as well and to give you a quick quote from the canadian ambassador the next step up here is what he's
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talking about is that this is really sort of the trumpets and the the whole fact of isolation of policies that are coming in states and this is what this is whittled down to what are we seeing what we are seeing here is because in large measure. the rhetoric that exists in the united states at the present moment and i'm not just referring to one source of rhetoric i'm talking broadly about the n.t. trade rhetoric it's given us companies the permission to take action they wouldn't have taken before and that's a canadian ambassador to the u.s. so really this is a big picture thing and he's saying that boeing is brave enough to do this right now just because of sort of the trump policies and the way they're moving so it sounds like there is a lot going on here and we need to sort of touched on this this could mean a lot from jobs in both countries but what else could this mean for about size song soured well really look at and i think you just hit the nail on the coffin last night in the coffin right there maybe it's in a coffin actually let's take the auto company out of their question but you hit it right on the head there were saying that it really comes down to the jobs there are
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thousands of jobs in the u.s. alone we're talking about twenty five thousand jobs that rely on itself and when you see jobs think about what happened now recently with the canadian government it was going to buy super hornets from boeing and because of this trade dispute it pulled back on the deal that's a lot of jobs in the united states both companies can be harmed by this and like i said a little bit earlier there's really no proof that what bombard is doing the sale to delta that is harming boeing at all so really this is just an emboldened company right now trying to make its way elbows up push its way into the market in a bigger fashion that it would necessarily if the trumpet ministration was not in place are actually correspondent allison halifax thanks so much thank you. a cheating website is accusing a new rival of cheating by trademark infringement ashley madison is
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a self described married dating website and app that uses the slogan life is short have an affair. ashley madison parent company ruby life is suing a new site casual x. for using the slogan life is boring desire a fling groovy life's lawyers also say that casual ex's use of an image of a masked woman pressing a finger to her lips is too similar to their services branding a representative from casual acts told a british tabloid that while their slogan quote took inspiration from ashley madison pitch quote our image and their trademark are quite different he said madison's marketing targets married people while his company targets a broader customer base while casual x. insists they are not infringing on ruby life's copyrights they do worry that they may not be able to match the larger companies legal firepower and that changing the image for the app in the apple store as lawyers demand would undo some of their success and branding that's all for now but be sure to catch boom bust on you tube
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at youtube dot com boom bust or thanks for watching we'll see you next time. altie we have a great team we need to strengthen before the free world cold and have been a legend to keep it so it's at the back. in one thousand nine hundred two that must qualify for the european championships
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at the very last moment no one believed in us but we won and i'm hoping to bring some of that waiting spirit to the r.c.c. . recently i had a lot of practice so i can guarantee you that peter schmeichel will be on the best fall since my last will come from that steroids are asleep. thousand zero zero zero zero he didn't rush out. left left left more or less ok stuff that's really good. across europe municipalities are taking their water supply back from private companies to me to keep out the cells with simple song alone even some company elsewhere they invite private companies to take over the utilities anybody tell us
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that opel. might be cool. this is us to quote them now to put it somewhere you know until philip bill brought up locals are ready to stand up for the basic human rights of access to water it's about water but it's also over much more than water it's about to hurt the redistribution of all or west birds. date downwards be won or lost. the single most important social equalizer of our time the internet is under great threat the decision by the federal communications commission essentially gives internet service providers the keys to the internet without net neutrality will be economic opportunity only for all. how does it feel to be a sheriff the greatest job in the world it's as close to being
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a king as any job there is a business model helps to run a prison now we just do it on video visitation i don't know why we don't have to serve them anymore. they don't give a damn if you do not. put it back into. the louisiana incarceration rate is twice as high as the u.s.n. breach. is behind such success. no you don't need to keep me going to get.
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the headlines on international. in an attempt to combat hate speech but it's a huge list of being selective over the profiles in. the battle between the german and keep of movement police sees the two sides crossing swords again this time publishing shaving photos stories. of polish anglo looks to a fishery in the u.k. . banning people from eastern europe. and austria new government and quickly into a rile with. the people and solve to roll opens old wounds.


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