tv Boom Bust RT January 5, 2019 8:30am-9:00am EST
let's go. to the latest signs of growing concern over china's future growth leads our global report today is the people's bank of china that's the chinese central bank for a significant stimulus the bank lowered the required ratio of deposits to loans for chinese banks by one percent affectively making one point five trillion or nimby that's about three of two hundred eighteen billion dollars two hundred eighteen billion of vailable for lending according to an announcement earlier today from prime minister chong mr lee's comments seem to confirm an economic slowdown has already occurred and may continue the prime minister promised what he termed countercyclical measures including previously pledged cuts in taxes and fees the bank cut the reserve requirement ratio four times back at twenty eighteen and few doubt the chinese central bank will hesitate to do so again in order to meet a growth target of six point five percent for twenty nineteen.
meanwhile the latest employment figures from the us department of labor's bureau of labor statistics show the job market appears hearty and healthy with three hundred twelve thousand new jobs created in december twenty eighth that number blew away expectations of one hundred seventy six thousand despite that healthy increase the unemployment rate edged up slightly from three point seven to three point nine percent a number that is still remarkably low also notable was a three point two percent increase in wages for december last year compared to december of two thousand and seventeen that year over year increase tied with october twenty eight hundred figure for the best since october of two thousand and eight. and to dig deeper into the report and more market moving news today we are joined by conservative commentator steve walz bergan the founder of peak prosperity dot com chris martenson welcome to both you guys it's great to have you with us steve overall a great report give us some of the more interesting numbers were of most jobs
created steve. well you had the most first of all every private sector industry gained that jobs with the exception of information so that's huge the most jobs were created in health care over fifty thousand jobs and that's the most ever since they started keeping numbers for for the health care industry you also had construction did well education and number two on the list actually was the restaurant and drink the the bar restaurant industry they gained about forty thousand jobs so it was a good good jobs report all around i will point out also that there were visions upward for october and november fifty eight thousand total more jobs so the average monthly jobs number for two thousand and eighteen checked in that two hundred twenty thousand which was the highest since two thousand and fifteen you know it reminds me of something when you talk about those numbers being revised sometimes
or numbers are revised down and and do whatever it is republicans democrats people say all the numbers are being jimmied around well the you know the answer here for the last couple of months the actual revisions as you say steve went up so it really didn't help if you were doing it from a political standpoint these folks at the bureau of labor statistics are career folks they don't really mess around with these numbers despite what you hear particularly around election time here in the states and one thing i want to get chris your take on this too but while all the sectors increased in jobs when we look at markets health care was directionally one of the few the market sectors that did well but chris what did you make of the report first of all. well it was a very strong report you know this is of course a lagging indicator employment is one of those things if you remember back in february two thousand and one we had a really great report it was really very very strong so we have to take this all with a grain of salt i was just
a little bit mystified by one component in there that was construction we just came out with a dismal construction report from another source b.l.s. as they added a ton of jobs in there i think closing in around thirty thousand so there's a little mystery in there and but otherwise it was a pretty strong report and chris i mean there has been some you know not not dismal but down housing news in the last month or six weeks so maybe that somehow land lends to it but there really were three good market signs today and i guess the market's needed them if you're at least if you're long you're on the upside after that six hundred sixty point drop yesterday and they started with these jobs numbers we've been talking about followed by that statement from the chinese about trade negotiations next week on the seventh and six with the u.s. in beijing and the third thing was jay powell was speaking with ben bernanke d n a with janet yellen today in atlanta i want to get your take on the other side of this chris take a listen there is no pre-set path for policy. and
particularly with the muted inflation readings that we've seen coming and we will be patient as we watch to see how the economy evolves. but we're always prepared to shift the stance of policy and to shift it significantly if necessary in order to promote our statutory goals of maximum limit and stable prices understand seems pretty safe to me oh well what do you make of it chris. well i was actually a little surprised by this this is such a stark reversal from many of the things that he said in december wasn't that long ago and the most important thing wasn't quite caught in that clip to me was that he talked about how that they would adjust balance sheet normalization if needed and that's a really big deal because before in december he was saying hey it's on autopilot we like to let these things run we have a fifty billion dollars a month balance sheet wind down we're going to let that go now he's talking about if needed that to me was the big market moving news of the day we saw futures
drifting up starting at about eight o'clock last night well before the jobs report number came out and but the fuel today part absolutely was that another series of statements where he basically said the markets rule i give if the markets are really going to be dry reading here we may adjust accordingly so he's saying that he's market dependent that's bringing him back to a little bit of where yellen was during much of her tenure and yeah that comforted markets it appears and steve there's a lot of consideration as we attempt to sort of predict what the economy will look like go important twenty nineteen it what sort of indicators do you think we should be looking at well i think that i think that's a great indicator what what he just had to say and let me let me give a little credit maybe to donald trump and his harsh criticism of the fed chief who by the way also said he wasn't concerned with the wages going up three point two percent year to year he said that's not inflationary and he's really not concerned about it at all i think that was another thing that some investors took note of
when it comes to predicting interest rates as we go forward but you know geopolitically speaking china which there was encouraging news today you don't know where that's going to go so that's always something that you have to keep a lookout for and what the fed does do but then again you have you know you have more people into the workforce a labor force participation is at sixty three point one percent that's why you get so you think you saw the slight uptick in. employment to begin with and there are higher paying jobs people are being lured back into the economy for better jobs and better wages and i think there's reason for optimism but always reason for caution how's that for you to play ball you should be a politician to chris let me ask you real quick we've only got a couple a couple seconds left but what are the sort of things to look forward in the near future to indicate what investors might want to do. well obviously in our earnings have just been through a monster cycle we're looking for some pullback in those of course that's just reversion to the mean it happens but oil is the market i'm tracking very very
closely there's almost a half a trillion dollars sunk into the shale space at these prices sub fifty there's a lot of damage happening there so the longer we stay below fifty and oil has been having a nice move the last five days but if that somehow stays down stays depressed a it's give me a read on global conditions we call is not coincident with strong growth but b we would have to start watching for some real pain to start showing up in the oil space and i'm talking the usual stuff back in two thousand and fifteen bankruptcies and failures and things like that because it's a pretty stretched industry particularly in that shale area i will be talking about that more in the coming days chris martenson the founder of peak prosperity dot com and conservative commentator steve malzberg thanks you both appreciate it guys have a great weekend it's lighter. time now for a deeper look at markets and we start with a review of last year twenty eight team
a downer year for almost all stocks almost all the china stock indexes c.s.i. which is the combination between that shanghai composite index and the share and then index down thirty one percent overall the nikkei was down eighteen that's the nikkei two twenty five in japan and hong kong down twenty two percent of the hang sang and in south korea a market we don't always cover down twenty percent twenty one percent rather for the year and the stock six hundred index in the european union down sixteen percent the dax there in germany down twenty two percent and the footsie in london was down fifteen percent the all shares down in south africa down eleven percent and mexico another market we don't always cover down nineteen percent for twenty eight to eighteen and the t.s.a. stock exchange down eleven percent last year the new york stock exchange. down five point six percent and nasdaq down six point six point two percent those are the best at the best of the bad as they say and the only highlight around the world in
markets is that stock exchange we've talked about down in brazil the eyeball vest up fifteen percent on the year and by the way on the key commodities side of things or oil last year twenty eight the worst year since twenty fifteen with prices settling on monday just above forty five bucks per barrel that's a twenty five percent drop for twenty eight and remember they were trading up oil trading up at seventy five dollars per barrel in october hughes louie's and gold went down for twenty eight thousand from one thousand three hundred seventeen dollars per ounce to twelve eighty two but has been making a comeback as we reported the other day it was down to eleven seventy three in mid august and trading at around twelve eighty five for much to defend day and definitive down here for all markets let's hope for this year being better for markets and economies around the planet now we move to look at this week in markets around the world and we start as we like to do with the mo x.
in russia. there we go and in shanghai the shanghai composite profit index down as was the nikkei two twenty five in tokyo and the hang seng the hang seng was actually up and down under the a.s.x. three hundred index down the sensex in india in mumbai up and the south africa all shares was actually down the cac in france the exchange there up as was the dax in germany and also the footsie in london down in colombia at the coal kept up for the week as was the eyeball and even up in tronto by just a little bit the toronto stock exchange and also just a little bit the nasdaq and the n.y.s.e. in new york and that is your quick market round up for the week time now for a break but hang here because when we return we go to canada in the wake of thirteen canadians being detained in china and some saying china's wall way is the
reason well it's my hell of it just standing by in toronto plus the u.s. government has been partially shut down for fourteen days the result is having a deeper and wider impact and many may real money furrows joins us to discuss and as we go to break here is the daily new york numbers at the closing bell we'll be back in a flash. one else seem wrong. but i. just don't. get to see
a pallet just to come out to. and it. equals betrayal. when so many find themselves worlds apart. just to look for common ground. hello my name's peter and i've been living in bushnell for about seven years and this is a film about just some of the crazy things i've got in the time. when you're going to get. along you've got this interesting there's still a duty from because i had such. a stance and i just see it.
welcome back u.s. authorities are seeking the extradition of three former bankers at credit suisse two a better arrested and charged in london and charged in the u.s. in the so-called two no bond scandal in. mozambique to know bonds that the nation's former finance minister man well chang was recently arrested in south africa on related charges in the case of more than two billion dollars of shady bonds that were supposed to fund projects including offshore energy exploration and the notorious two enough fishery the u.s. attorney for the southern district of new york is now seeking the extradition of mr chang and the three bankers on charges including violations of the us foreign corrupt practices act. and turning back to china i love this story that country's dominant ride ailing service d.d. we've spoken about so many times on the program as introduced a new financial app
a financial app quite how this week deedes move into finance seeks to build what the company calls a more connected ecosystem of services that can be accessed via mobile phone the same method deedes five hundred fifty million users already used to get around d.d. says the apple our users to access services including familiar crowdfunding appeals car loans and health care insurance the expansion for d.d. is notable after recent troubles and a rhetorical wrap on the knuckles from the government after two well publicized murders murders of d.v. writers by drivers d.d. will be back to their new venture by deep pocketed investors including get this apple and japan's softbank group. and other transportation news the u.s. airline sector took a collective this week after delta airlines revived residue projections downward
the carrier stocks fell nine percent on the report and stuck in rivals united american and southwest all saw losses between three and seven percent in other airline news the story co-founder of southwest airlines herb kelleher has died southwest founded in one thousand nine hundred seventy one with a fleet of four. planes took off once it was able to fly outside of texas offering cut rate fares financed by short flights to secondary airports and simple service from happy employees at a company that integrated a sense of fun into its corporate culture mr keller her credit is his mother with instilling in him the values that guided southwest labor relations he told fortune magazine you have to treat your employees like customers when you treat them right they will treat your outside customers right that has been a powerful competitive weapon for us. and since the arrest of wild ways see a fall in vancouver on december first thirteen canadians have been detained in
china which vowed to retaliate against canada after mangal one joe was taken into custody and some say that's exactly what the country is doing with more we're joined by r t alex. of a hell of a lot of alex i thank you for being here and following this you've been following this ever since she was taken into custody what's the latest over the dozen canadians that have been detained in china. well as we all remember being one zero was arrested on december first in canada this happened in vancouver airport she is still being detained under house arrest in vancouver one of her two homes there and as it stands right now canada says and what it said from the beginning is that it's been fulfilling its duty this is an agreement would they have with the united states the united states asked for the arrest and canada did that so far she has not been extradited to the states that might be a step those coming up or maybe it's just going to be status quo remain like this and who knows she might eventually even be let go and sent back to china but as
from china china's point of view this was a violation against the human rights of one of their nationals and that's where this kind of kicked in this tit for tat so many people are saying well look there's been thirteen canadians arrested since being was arrested back on december first so does one have to do with the. well china did threaten to do so did threaten retaliation so there could be some connection here especially when you're looking at two of the more higher profile cases and those of cases include two individuals you part might remember michael carberry keys a former diplomat a canadian diplomat as well as a businessman by the name of michael spout board now the chinese are have been talking about this just this week a prosecutor general said in beijing that these two are accused of endangering national security and had without a doubt actually violated the law so the chinese are sticking to their guns when it comes to them one other high profile case at least here in canada was with a woman named sarah mccarver she's an english teacher she was detained in china has
since been released and is now back in canada so least one of these people are back home right now hey alex real quick i mean do you think this is a story is being overblown at all. well she's back home right now thirteen people arrested eight have already been released so there someplace in china when you look at the numbers let's look at the big picture here so just looking at the past few years google figures can't say at least first of all eight of these people but only released at least and also two hundred people canadian nationals in one form or another are dealing with prosecution in china some of these people are out on probation some of these people are out on bail so this is really nothing new if you look at the numbers there's not really some sort of substantial increase in canadians being arrested in china sort of business as usual. here this number will kind of put things in perspective let's look at canadian american relations currently there are nine hundred canadians detained in the united states so when
you look at these two numbers you know who is our friend who's our vote here either way but you the chinese i mean this seems to be business as usual sure they probably wanted to send us a message especially with the high profile arrests but as it stands out they haven't really done anything that's too outlandish which makes you think what's coming up do they were it was that retaliation or should we be waiting for something else very interesting as always thank you for staying on top of the story alex my hell of a great weekend alex you too. and portions of the u.s. government shutdown shut down for two weeks due to the president and congress not being able to agree on future funding this is day fourteen in the toll it's taking is wider and deeper than many assume the u.s. department of homeland security agriculture housing treasury commerce justice interior and the state department have all been shuttered except for essential employees interestingly just three blocks from our washington studios here stands
the old post office which now houses wait for it trump international hotel the building boast an iconic clock tower known as not only a landmark. but it's depicted in novels and as a tourist destination the clock tower is owned by the u.s. government and run by the general services administration or g.s.a. which is part of the shutdown even though all of the other g.s.a. facilities are closed due to that shutdown it the clock tower in the trump hotel remains open to enter the two hundred seventy foot observation tower one must walk through the trump international hotel while it remains open just outside trash litters the national mall as government workers have been laid off during the shutdown and that shutdown is a having a deeper and wider impact than many of us have assumed here with more is molly barrows contributor as america's lawyer molly happy new year we're so glad to have you back great to see you the g.s.a.
for example is more than just the old post office clock tower of course there are some big bucks involved right. you got that right and happy new year to you too bart great to be back on boom bust but back to the g.s.a. yes they are the country's largest public real estate organization you're talking about a lot of rental space to some one point two million federal workers in seven hundred metro areas so yes that amounts to some big bucks the biggest area where they are out of course is the washington d.c. area annually they're collecting close to two billion a year and rent and you can go on down the line but some of the other top collectors in those areas new york new jersey i think that's close to almost three hundred million two hundred eighty in the kansas city area is about one hundred ninety million so there is a lot of money that of course is at stake and they do manage properties all over the country as well as territories and what's interesting about the clock tower that you mentioned it did close down when the shutdown started it is owned by the g.s.a. but it's maintained by the national park service again one of those other agencies
that has taken a big hit do this shut down and the national park service did close that clock tower but only briefly before the g.s.a. reopened it basically saying that the money to keep the clocktower open is not impacted by this year's fiscal budget which is impacting the other agencies that are affected by the shutdown so it is back open it was closed to the public but now the g.s.a. says it's ok i can open it back up again well if those workers those g.s.a. workers aren't working they're not collecting all that rent and those leases and by the way i happen to know this little fact the reason there's so many folks with so many g.s.a. facilities in kansas city in the middle of the country is because the workers there are cheap my old agency we had an office in kansas city we used to be an exchange there but it's gone but we kept the workers there because it's it's cheap but having those people throughout the country trying to collect those those leases and collect the money that's not happening now as long as those folks are out there apart from those facilities taking
a toll really some of this is being the less fortunate among us the most tell us about that molly. yes this is so sad of course you know the folks that are obviously the least among us are often the ones that are affected when there's a downturn whether it's in the economy or if you have an incident like we've got right now with the shutdown the that are most vulnerable are going to feel it first in the hardest the department of housing and urban development is no different of course it's one of those agencies that is also impacted by the shutdown most of their workers have been basically not working since shortly before christmas that means they're working without pay so not only are those families impacted but they are not allowed to do their jobs and so a lot of that includes that they're missing out they're not able to do some housing and emergency services like hands on services for the homeless to help place them as well as some emergency inspections perhaps there's and there's already reports in fact as various places throughout the country that have been having problems whether it was with mold or repairs and they can't provide those emergency
inspections and can't go in there and address those things and of course who's getting impacted by that are just millions of poor people so there are some seventy percent of hud housing is made up of low income families and half of those are elderly and disabled so they need those emergency services they need that hands on help along with the homeless but until the shutdown ends that's not going to happen or at least it's going to happen hit or miss and then they say if it continues to shut down into february then that could be a real problem because that could end up possibly suspending some of the public assistance that's necessary to do to provide housing for these folks so we'll see how quickly it wraps up but the longer it goes on the more these vulnerable people could be impacted even worse thank you for looking at this molly barrows contribute with america's lawyer thank you all a great weekend. you know you are today this time we sure appreciate you being on board you can catch boom bust on directv channel three twenty one dish network general two eighty or streaming twenty four seven on pluto t.v.
the free t.v.'s channel one thirty two or as always you go to youtube dot com pleasure both of us are to. we'll see you next time. nobody could see coming that false confessions would keep that in the spot relational form for conversion. and any interrogation out there what you'll see is threat promise threat promise threat lie a lie a lie the process of interrogation is designed to put people in just that frame of mind make the most comfortable make them want to get out and don't take no for an answer don't accept their denials she said if our words are already set on the statement then i will be home by that time the next day there's a culture on accountability and police officers know that they can engage in misconduct that has nothing to do with solving their crimes.
from. the headlines this hour a man detained in russia on spying charges appears to be a citizen of britain canada island and also id us that is media speculation. that he was seen by moscow to be used as a bargaining chip. we could call a national emergency because of the security of our country absolutely you know we can do it i haven't done it i may do it i may do it. states of emergency if there's no consensus on funding his portable democrats meanwhile are reviving talking to. police don't play and maybe they don't because we're going to go in there really the mother. is from the u.k. spent nearly a cool.