tv Boom Bust RT November 1, 2018 4:30am-5:00am EDT
department of justice and the securities and exchange commission they've also reported be low expectations including a twenty two billion dollar loss in the company's troubled power division g.'s all time stock high price was back eighteen years ago in two thousand at just shy of sixty dollars per share the stock the stock sunk to below ten dollars back in two thousand and nine but had been making progress since rising to north of thirty dollars to do years ago but it's back down to around ten dollars per share in trading today at the new york stock exchange. and on china last time we spoke about a key early indicator of continuing export health as data showed reduced goods and closed in those maritime shipping containers which account for about ninety percent of china's exports well that barometer may be proving true as news from china is out regarding reduced manufacturing chinese manufacturing for october was down
lower than experts predicted as new export orders have declined for the fifth month in a row the manufacturing index to fifty point six percent in september it dropped to fifty point two percent in october making this last month the lowest since july of twenty sixteen. and we now look to iran on november fourth the us economic sanctions on the nation will go into effect and the sale of iranian oil will be prohibited by the us and individuals companies or nations purchasing that oil will also be sanctioned by the states according to trump administration yet even now just days away iranian oil is still selling and its hot while exports of iranian oil have dropped by about eight hundred thousand barrels per day for the from a peak earlier this year to about one point seven to one point nine billion barrels they were sold a day that's one point seven to one point nine billion barrels sold per day in september. and here to get a better flavor for the complex issues our t.v.
producer. sayah thanks for being with us again we appreciate your expertise this november fourth is that deadline and that's looming but let's take just a little bit of a step back since one thousand nine hundred seventy nine the u.s. this led efforts to curtail what it viewed as bad behavior on the part of iran that bad behavior included richmond. which is used to course to build nuclear weapons and iran's the nie that but there was evidence that it was going forward without much success sanctions over the years by the u.s. and other nations begin to take a call and not just iran in their economy but on the iranian people and then two years ago we had this big agreement that came out that's called the five plus one that's the permanent members of the u.n. security council the u.s. u.k. russia france and china and the plus one is germany and they agreed to end sanctions if iran stop their nuclear program that has been in place since but u.s.
president donald trump announced the u.s. was pulling out of the deal saying this. that this was a horrible one sided deal that should have never ever been made it didn't bring calm it didn't bring peace and it never will. so here we are and u.s. sanctions go back into place on november fourth but so far a radiant oil is still being exported celebrity accepted him a current circus situation sure well iran which of course is opec's third largest producer was pumping close to four million barrels a day or earlier this year about two point five million of that going to exports now earlier round of sanctions under president obama cut iran or oil exports to about half two roughly one million barrels a day which was from two thousand and twelve to twenty fifteen but now barred the new sanctions aimed to cut iranian sales to zero and iranian exports fell to one
point seven million barrels a day just last month but now barred iran is finding creative ways to sell its crude oil iran in july and now instead he would start selling its crude oil to private companies as part of an effort to keep exporting and that they would take even other measures to counter sanctions going to effect this week and in fact a little over a quarter of a million barrels of iranian crude oil were sold on the local energy exchange this week which was used last time four years ago and then u.n. sanctions now the idea of the exchange is to have private local iranian companies buy the crude and then resell it to foreign traders now this was still put the foreign companies on hook for penalties from washington were doing business in iran however it would make it very difficult to pinpoint who those foreign companies are that are buying iranian crude oil on the exchange now barred let me extend them explain how that you want in exchange works were buyers are paying buyers fors the
first fires which are local iranian private companies are required to pay ten percent cash with no more than two hours of making the offer and if the deal is approved by the exchange rates most or time will given iran's current situation of course another ten percent cash payment has to be paid in iranian currency by the. original buyer now once the original buyer sells the crude oil to the foreign buyer that foreign buyers must pay the remaining eighty percent in foreign currency and in exchange the local iranian company pays their iranian government so as you can tell it's going to be very difficult to trace sayah thank you so much for that report we appreciate it i know we're going to be looking at whether or not companies are cheating according to the u.s. eccentric but it sounds like sort of a clandestine thing we'll have you back talk more r.t. producer saya tab and your thanks thank you. and there is yet another significant earnings report out told you there were a lot this day facebook has reported second quarter in
a row of record low user growth coupled with increased costs which c.e.o. mark zuckerberg says will continue to outpace revenues for some time mr zuckerberg said that the reasons were to be up there were reason to be optimistic once the cost associated with recent scandals and regulatory fines has passed and the company continues to be hacked just a few weeks ago as we reported fifty million facebook users data was compromised so security remains a key component of their future success facebook was listed as a public company on nasdaq back in two thousand and twelve and traded it thirty two dollars per share since then it had been on a fairly steady rise reaching nearly two hundred ten dollars per share even this july but since then it's been on a trend decline trading at one hundred fifty two dollars per share today.
the united states spends more than three point two percent of our gross domestic product on military expenditures that fence complex this compares to russia at five point three percent and saudi arabia at a whopping ten percent of their g.d.p. and the states that money has been used for a variety of things but one key component is on defense weapon systems produced by what are called prime contractors but as we've reported there's been a bit of a shake up going on here discussed as former pentagon official michael maloof michael welcome back and we've got these five big ones out there you know northrop grumman and lockheed eccentric but there's this new one elf three harris that we've talked about which is a big home and are they already shaking things up they have begun to shake things up even though they're listed as number ten in the pecking order they are very see . if for example they are teaming up with others with the other prime contractors for sensor systems and electronics systems that will go into
aircraft primarily for not only for military but homeland defense in the on the military side that putting more electronics into aircraft and this is where they ran into a little bit of competition with some of the big guys they they actually air force actually allowed them to choose the aircraft in which they wouldn't incorporate what's called the compass call it's an autonomous electronic attacks system and they actually could name the aircraft the air force said so that is a big deal for a. contractor you to choose what aerial craft to put in means that it would favor l three zero harrison is this case and are that is this defense money that you know usually would have gone to you know lockheed or some other big defense because some of them like boeing or what have you they do an electronics but this is quite significant for all three so it's it's a rising star and they're they're involved in increasingly
a lot more in conjunction with other major contractors and if they're beginning to electronically equip all these aircraft that's quite significant because that will you then go into the lockheed's the boeing's the jets and the and they raytheon's and what have you i mentioned lockheed there i know we have a stock chart on them how are they doing they're the really one of the largest of the large they are the largest they are they they have over one hundred thousand employees they make the f. thirty five the f. twenty two they make missiles drones fire control systems the f. thirty five the super expensive one that's the that's how much will it cost at the . lower cost about ninety million a copy ninety million a copy and they did they were just grounded once again and so the whole fleet was grounded until ninety million dollars and they can't fly that's basically the problem but they've had. an oxygen problem with the pilots you know that tends to make them blackout they don't know why so that's been resolved and but but but lockheed martin remains the largest contractor about how about boeing and general
dynamics boeing general dynamics the number two and three respectively. boeing makes the case c forty six although a lot of the lot of their stuff is mostly civilian that's not military but what they do in the military realm is quite significant such as the aerial refuelers which is the k.c. forty six the f.a. eighteen hornet and and also the apache helicopters these are very significant systems for for the military and how about raytheon and northrop grumman michael how are they doing raytheon is doing about twenty five billion dollars a year they have sixty four thousand employees they make the missiles the radar systems the sensors guidance systems and they're involved increasingly now into cyber security and the other one unit mentioned was general dynamics they are they make the abrams tank they make and they also do information systems and technology
so the top five basically are lockheed boeing general dynamics raytheon and northrop grumman northrop grumman of course make sure. it's the aerospace division . they've teamed up with boeing to on the f. f. eighteen but they also make the b. two bomber they're also working on the brand new bomber and they also do the a ten warthog which was supposed to go out of service but because of popular demand and good ground support which is the only system we really have that's effective that they've been called back so they're going to continue and you mention that all of these except for bechtel which is lower down the list are which is a private company or publicly traded companies michael maloof former pentagon official thank you michael pritchett your helplessness pleasure. and time now for a quick break but hang here because when we return christy i a counterpart jack. back and she'll give us her thoughts about the recent relative stability of all things crypto currencies this is really be funneling to some on
wall street experts which is kind of fun for me and later many nations are seeking to ingratiate themselves with india steve malzberg joins us for the tale of how all the farming and flattery is foremost about big money and as we go to break here are the numbers at the closing bell we'll be back in a flash. welcome to max ties are plentiful survival guide. looking forward to your pension account. yanks this is what happens to pensions in britain. watched kaiser report.
says hahn and kentucky. boy says he was very funny. a coma and he says he would almost no coal mines left. that jobs are gone all the coal miners the said. that it was a lot of these people the survivors of disappearing before their eyes. i remember thinking when i was younger that is anything ever happened to the coal mines here that it would become a ghost town but i never thought in a million years i would see that and it's happened it's happened. in this us. and we are.
welcome back the world's largest smartphone and semiconductor maker samsung has also released their q three earnings and they have done well making it three consecutive positive quarters in a row for the south korean company with a net profit of thirteen point fifteen trillion wan that's about eleven point five billion u.s. dollars that figure is a record high for the company and again and again of eighteen percent year over year. and the third largest pizza delivery company in the world papa john's which has been embattled due to racist comments by its founder john netter who stepped down as chairman in july and owns thirty percent of the company reportedly has several buyout suitors coming to press them. we're trying to take over the company bain capital c b s partners n k k are all of appear to be interested in acquiring
papa john's share of the company rose on the news by over nine percent to more than fifty three dollars although the company has lost more than a fifth of its value year over year. and coca-cola has also reported earnings posting a one point eight eight billion dollars profit profit global soda sales group for the company by two percent year over year and were led by get this diet coke and the new coke zero sugar which replaced coke zero in the united states last year and taste supposedly more like regular coca-cola all the leading sales for the company were other dry it drinks including low and no calorie sprite and fantasy although those sales for diet for right and banta were actually down in some central american nations where the company appears to have altered the recipe too much according to coke officials they are course correcting in those markets coke raise prices in north america following a trumpet ministration implementation of tariffs on chinese imports but that price
rise does not appear to a penalize profits coca-cola stock was trading around forty eight dollars per share at the new york stock exchange today. and the last earnings report for you today under armor profits have increased the baltimore based company did so amidst a massive restructuring with increased sales of two point four percent those sales increases took place overseas while north american sales declined the stock got a big boost of twenty eight percent at the stock exchange in new york on the news rising to about twenty three dollars per share it was ten dollars per share last december the high for our by the way was back in two thousand and fifteen when it traded at just north of fifty dollars per share. and we now turn to a fun story one key area of finance was not was not on a roller coaster ride this past week crypto currencies the coinage some pessimists perceive as just a pesky problem well how super strange is it that crypto is where the stable ones
in these markets will at last here to help us out is christy i have counterpart x. christy thank you for being here it's i mean we were laughing at. before the show who would have thunk that this is happened what do you make of it exactly it's super strange but not in a bad way at all this just means that the crypto currency market is slowly maturing and that the gradual civilization is actually a gradual exit from specular traders and a growing interest from traditional institutions coming into the market let's take a look at some of those specific. you were mentioning to me earlier that i don't know it was ten days ago or two weeks ago that we did something on it's been ten years since bitcoin a block and a bit out there but you told me today is actually the day that bitcoin was launched so from whence to came and how did it get here what's happening with that going prices yeah ten years ago today because it was traded for the very first time establishing a monetary value for the very first time the first trade ever recorded on the block
chain was ten thousand bitcoins for two pizzas from papa john's ten thousand and papa john's we did what you could we could buy all of papa john's if you really had ten thousand bitcoins right now at last sixty three hundred right now so ten years to the. and talk a little bit about bitcoin price so where are we where are we now when we know what was it twenty thousand last year but it dipped into the six thousand recently yeah so right now it's currently trading at about sixty three hundred actually just achieved a seventeen month low volatility rate so it requires the highest stabilisation rate in a four since two thousand and seventeen and this is actually huge for a big one because it's been very relatively stable trading sideways and this has been great for a lot of the institutions who are coming in because right now they're saying that decline has finally bottomed and they seem like a very consecutive buying interest at this very low level so well that i thought it was just anecdotal that i thought that the crip those were fairly stable in these
wild markets but the volatility index you say is at a low so thank you for confirming what i thought was sort of happening there i hadn't seen the volatility number. let's talk a little bit about ripple you know when we talk about precious metals we talk about gold and people don't want to spend twelve hundred bucks on gold we say well the poor person's you know precious metals silver but in the crypto space it's really sort of a ripple and a theory and to a lesser extent because people can't afford the sixty three hundred dollars for a single point these days tell us a little bit about ripple so while big question is kind of more so like gold it has a monetary value established to it ripples more sort of a utility token and right now ripple has a very strong fundamentals here as we just heard the ripples fall conference out in san francisco where they launched x. rapid and now ripple has confirmed that they have at least ten banks are actually implementing or testing out its extracted for ethics transaction explain it again so it's use for f.x. conversions so specifically instead of sending u.s.
dollars u.s. dollars to india and having an india bank to receive that and convert it into rupees which will take an average of about like three to five days. makes that entire transaction seamless and done within eight seconds oh my gosh super quick time travel tell us a little bit of theory of where you are you saying that's trading a couple hundred dollars yes on monday it actually diplo two hundred dollars which was slightly unsettling but we have reports that right now saying that with that we've detected a pattern saying that all these recent i.c.'s that we talked about because of the depressed cryptocurrency prices they've been selling out of ether in order to pay their employees and keep the lights on within the company just so at the end of every single month we notice a trend that the ether price came down because at the end of the month that's what employees get paid and so those employees need to take that either and actually convert it into dollars for spending transaction and daily lives. we're running out of time but i want to ask your quick take on coin base which had this huge
valuation of eight billion dollars i mean they were they just raised three hundred million would you make a coin because right now they're taking that. big cash in they're focusing on four primary goals they're looking to expand their global reach they want to add more quine's and right now they want to pursue a lot of decline licenses overseas and most importantly they want to get institutional players and currency states krissy counterpart x. thank you so much kristie appreciate it as always. what do japan south korea taiwan and australia all have in common well besides having close tiles ties with the united states they are all currently seeking to strengthen economic ties with india and all four of america's closest allies are courting india for the very same economic reason fear of the u.s.
china trade war here with more on this story is conservative talk show host steve malzberg steve nama stead welcome what is the big fear on the part of these countries oh well thank you for their greeting i appreciate it well the big fear is that this trade war if that's what we call it is going to get worse or if it's not a war yet it's going to become a war and they're going to get caught in the middle here because of a fifty percent of their import export business is with china and here's what they're caught up in they're caught up in this production network in these countries are where they make and send over into media goods and. and raw materials and then china puts them together makes them into the products and then ships them out to the united states in the west and so they're very nervous about about this situation as as the war could get worse there could be all kinds of not only tariffs but product bands etc so they're looking for another outlet and that's what they're that's what they're doing they have to protect themselves and expand
their horizons and hedge their bets really and all four of these nations steve they've already begun to sort of work on these economic ties with with india right . yeah everyone that we've mentioned for instance australia they have a grand plan in place that by two thousand and thirty five which seems a way off but nonetheless two thousand and thirty five they want to make india one of the top three export markets and we're talking about exporting everything agriculture energy education tourism you name it and south korea has basically the same kind of goals in mind maybe a little quicker japan in two thousand and sixteen committed to heavy infrastructure research and development in india and in australia you have companies there like fox com that are heavily investing in india as well so they're all cementing their ties they're all well into this they're not just starting it right now last minute so if it's possible they have
a good shot of accomplishing it if it's possible well it makes me it makes me think about that movie of member a few good men jack nicholson says you can't handle the truth and i mean can india handle all of these love and flattery and flattery and all these agreements coming to help their economy well the problem is there's lots of problems since the economic liberalization back in one nine hundred ninety one it's been a very bumpy road that's for a long long time right now the economy's not firing on all cylinders they have problems with agricultural subsidies they have unemployment problems they have naturally a lot of poor people in the population income inequality so their economy has a long way to go plus this is perhaps key they are notoriously bad with trade deals they have a history of being bad with trade deals and i'll give you an example that just took place here in august the u.s. and india negotiating a deal in india proposed tariffs on twenty nine u.s.
products that since been withdrawn but india it really has a long way to go and one other thing these countries are not just worried about the trade war they're also worried about china is using. ticks to influence economics for instance when north korea went south korea took us defense missile system they punish south korean companies china did japan had travel companies punished and so it goes on and on and on if you don't act politically the way china wants you to they could just you know tighten the screws so that's another reason they're looking for alternatives these countries and steve just real briefly do you think things are going to get better or worse in the near for say the end of the year on the u.s. try to china tensions well i think there's one more round of talks coming up and that's going to be key if they if they break off and go away and and both parties leave and there's no progress it's not going to be good now the reports the other day on the chinese economy faltering that might influence china a little bit maybe tramples see that you know things are turning around here after
a defeat he doesn't want to risk going into the next congress with a bad economic situation made worse with china so he may bend a little bit i'm kind of optimistic i think both countries need it and want it. i'm glad that you are optimistic and i'm going to hope you're right i'm optimistic you conservative t.v. and radio commentator steve malzberg thank you steve thank you bart. and that's it for this time thanks for being with us you can catch boom bust on you tube dot com boom bust r.t. so long for now. join me every thursday on the alex salmond show and i'll be speaking to guests of the world of politics sports business i'm show business i'll see you the.
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also take our things all the power just for themselves. and twenty forty you know bloody revolution to quit the demonstrations going from being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it you know here i mean your list put. you pulling you to the former ukrainian president recalls the events of twenty four . those who took part in this today over five billion dollars to assist ukraine in these another that will ensure