tv Boom Bust RT January 17, 2019 3:30am-4:01am EST
ever such open market action in a single day and just one of many announced or anticipated official actions to say in the chinese growth reducing benchmark interest rates is another more powerful policy lever that officials may consider if other measures fail to yield desired results in a statement on the move the chinese central bank warned that liquidity in the banking system is falling rapidly due to the chinese tax season. and catching up with the breakfast news that was still breaking as we went to air yesterday u.k. prime minister theresa may one day fight for for political survival today rallying three hundred twenty five votes against a no confidence vote filed by opposition leader jeremy corbyn in the wake of the staggering historic defeat of miss may's brecht's that plan earlier today the u.k.'s central bank governor mark carney told a parliamentary committee that a market boost for the british pound following miss may's defeat showed investors are prepared for the prospect of an extension of some kind in the so-called article
fifty process governing national exit from the european union article fifty is the provision in the european union enacting agreement called the lisbon treaty which allows nations to leave key political figures in germany and france have also signaled that an article fifty delay may be best for all parties. and turning to legal news involving corporate narcotics eight members of the sackler is the founding family of oxy cotton manufacturer produce pharma as well of nine purdue board members had been previously implicated in a cover up of that drug deadly risk the two hundred seventy four page filing by the massachusetts attorney general lays out the case that members of the secular family truly made what the aged calls a deadly deceptive scheme to sell opioids a family affair with efforts that included claims that the time release formula of oxy cotton was less addictive than come. p.t.
opioid products perhaps the most notably produced chairman and president richard sackler who is listed as an inventor on the patent for oxy cotton and is the son of producer founder raymond sackler micromanage efforts to push oxy cut and even accompanying some sales representatives on their visits to doctors. and the c.e.o. of global mega bag j.p. morgan chase jamie dimon spiced up a call with reporters by warning that the persistent partial shutdown of the us government could quote reduce growth down to zero if it lasts for a fourth quarter for what it's worth the white house council of economic advisors or the cea has doubled their estimate harms for the shutdown see a chairman kevin hassett says the trumpet ministration now believes that every week of the partial shutdown will reduce quarterly g.d.p. growth by point one three percent by that formula the u.s. is set to lose at least half a percent of growth in this quarter. and
as we always say the numbers matter so we're most pleased to bring in a numbers expert professor of economics americas at the university of massachusetts amherst professor richard wolffe a professor thank you for being with us glad to be here i want to start not just with wages will get to that but i want to get your take on how g.d.p. could be impacted if the shutdown were to continue through the quarter what do you think. well i think it's already having its effect it's going to have an effect larry hard to measure and the debates over exactly how big it is are kind of strange since the effects of this go far into the future let me just give you a couple of examples of people who have debts which is most americans those debts and keeping accumulating if you don't get a paycheck if you're one of the hundreds of thousands of people doing without or if
you're a small store where those people live and so you're not making the sales you normally do you can't pay off those debts which means you have the interest of growing you probably don't have the cash at home so you're using your credit card more and that means you're accruing debt which costs you interest all of that will go into the future it will make people with whatever income they have less able to spend because more of that income is going into paying off their debts so it's very hard to estimate but we know the economy is slowing down in the united states we know it is doing that in europe and china as well we have very bad negative signs of a recession coming the last thing on earth you want is to give a blow to an economy that's already spidering and that's what this shutdown is doing and it's just accumulating week after week you know and you know folks may be
able to get by a little bit you know miss one paycheck of by doing something like you say ramp up their credit cards or even take out money from their for a one k's which will cost them in the long term with taxes and a lot of people will end up eating less healthy food by the way because you can get the calories at i won't mention any names but you'll go some place but you won't eat as healthy as he was moved to wages i want to make sure we get to that today we always love having you but we got to get their wages the national minimum wage in the united states is only seven dollars and twenty five cents and that's a floor but eighteen states are increasing. this year california will add fifty cents this year to eleven dollars per hour but california is not the highest minimum wage it's washington state which is also increasing half a dollar to eleven dollars and fifty cents per hour the raise will possibly impact about four point five million workers in the u.s. but the federal minimum wage has not been increased for eight years there was a lot of talk back of increasing it when barack obama was president but the
republican congress wanted nothing to do with it not a professor is an increase needed and what do you think will happen going forward. absolutely i can't think of anything that is more urgently needed than raising the minimum wage seven dollars and twenty five cents an hour is a is a travesty it's immoral it's unethical to make human beings work a full life of time and effort and earn that kind of money what does it say to americans that some of our states like washington have a minimum wage that's not just higher it's over fifty percent higher because the good people of washington don't want to do to their working people what the rest of the country or a large part of it are willing to do and then as you point out if you look abroad you will see that in a number of countries around the world many of whom are not as wealthy as the united states the minimum wage is more than double what it is here to be what's
going on this is a society that could be generous and make a much better community for all of us by giving people a decent minimum wage and yet we are at the back end of the list of countries that are doing it last point and one of the we're going to stimulate an economy you know one of the ways you stimulate an economy is give people more purchasing power people earning seven dollars and twenty five cents an hour if you give them a one two three four five dollar an hour increase they will spend all that money that will create demand and other jobs so you're not just helping them who deserve and need it most but you're helping the whole economy it trickles up if you like if you help people at the bottom and that's both more moral and more ethical and more economically affective than giving to the top who need it least and hoping it trickles down which it really does and just let me ask you briefly because only a little bit of time i mean this is an issue the world over but we talk about
inequality but i mean australia i mean you were really pointing to it fifteen dollars an hour luxembourg right fourteen eighty i mean this is not just a u.s. issue this is an issue all over even in france at twelve sixteen hour more than the u.s. that at one sixty seven euros didn't seem like anough as being done does it. absolutely and again in a society where the majority of americans say we shouldn't have the level of inequality that we do so we know the majority of people support it and we're already doing very poorly by the people at the bottom lord knows it's overdue to raise that minimum wage and lift this society up by helping the people who need it most a professor thank you as always i we never have enough time but we always get the best stuff from you thank you professor richard will thank you very much and look forward to talking with you again. and time now for a quick break but hang here because when we return danielle shay of simpler
training and add a measure of adam at training will join us to look at some key company stocks as q four earnings are starting to roll in and iconic retailer sears which has been going through a bankruptcy is not dead yet the malls for joins us with the details as we go to break here the numbers of the closings fell back in a flash. sounds or maybe.
did. happen. back to where they were back here again part of this. and trump when he was running in two thousand and sixteen articulated a vision of foreign policy that was clearly at odds with what you would consider the sort of post-war liberal international consensus that that american one policy is held and there might be some claim that there are elements of that critique that have some validity here's the problem though it's not enough to offer a critic you can say that there are problems with the existing foreign policy and then you have to offer something that's better person period alternatives and this is where i think trump is has failed miserably.
in a world of big partisan. law and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smarter we need to stop slamming the door. and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now we're watching closely watching the hawks. there's albeit a whole costs going on in america for profit and the drug companies are killing millions of americans for profit and if no politician does anything about it i mean i look around the world and i see this relational and the frats protests and i see
that as growing going globally and john locke said in sixteen ninety i believe that if the social contract was broken that it's up to the people to revolt the social contract has been shattered revolution is the next step. when they came back from iraq oh marijuana. her cocaine methamphetamine so anything that's altering trying to get this out. than. using the chemical that would be so. i want to be drinking and drinking just killing myself but drinking alcohol links don't drink to get drunk alcoholics drink to feel normal. that's why alcoholics this way drug addicts do what they do shop for in their. star cool under which these guys
are going through to do it it just means to. need to be helped and pushed on by the v.a.'s are as drugs you need to be helped. and they've really should be looked at like numbers they should be looked at like people if they go to a veteran center for health issues be considered as someone who really needs attention. welcome back major news out of the global organized crime sector yeah we had a sweatshop sector the other day so today it's the organized crime sector mexico's political foundations are shaking as a former top aide to a reputed sinhala drug cartel boss joaquin el chapo guzman testified that former president and pena nieto or e.p.
and requested a two hundred fifty million dollar bribe from the suspected narco traffickers and received one hundred million dollars alex a four went to is testified at his boss's trial former bosses trial in a us federal court in new york that the one hundred million dollars was delivered to the disgraced president in october of two thousand and twelve after eight pm with aleck did but before his inauguration and meanwhile new president andress memo low pres obrador. sam low is trying to plug leaks in the nation's oil pipelines which have been plagued by illegal skimming and siphoning by organized crime often in complicity with employees of the state oil company p m x m o is closing pipelines well leaks are being plugged in pushing as much of that volume of oil as possible on to delivery trucks but that method is slowing deliveries leading to long lines that mexican filling station polls indicate that mexicans are willing to deal with the delay for now if on low can deliver results and stop the criminal
conduct. and bank of america and goldman sachs both delivered stronger than expected earnings today for q four and there's been other earnings news for more we are pleased to once again be joined by danielle shay of simpler trading and adam mash of adam mesh trading i thank you both for being here it's great to see you we always have such great information danielle i want to start with you yesterday on the program reported the news about j.p. morgan beating expectations big time and wells fargo doing better than expected although it cost them seven billion bucks in stock buybacks to prop up the stock but what do you make of the goldman sachs and the bank of america news today. so bart i think this is absolutely critical to the economy when we go back and look at the problems that we've seen in the stock market slide that we saw throughout november and december one of the major issues that investors were looking at was rising interest rates right and at this point we've now had some of our major banks
come out and say hey look guys we have had some blowout earnings reports we're not seeing an issue here we're seeing a strong consumer sector we're also seeing a strong business segment and i think that this honestly is creating a complete switch and trend especially when you go back and look at the technicals of the charts the stock the stock movement that we're seeing i think these reports can take the stocks back into into bull territory good observation adam the other day we explained the new york stock exchange market index that the airline index and how it had taken this really deep deep dive and the earnings you know and some of the guidance from delta and american and then delta report of course didn't look so good but united airlines a did pretty well what do you make of united atom. you know a year ago see munoz came out and said we have a darn good plan the stock sold off on that news but
a year later he's been proven right they increased the cost of their seats they increased the number of the seats and they opened more roust and they have their competitors this year and the results so the numbers that beat across the board with the nice guy in the stock today so it looks like he had the last laugh you know i love looking at these charts. you know the five day charts because they sort of go along you know and then there's whatever news or an earnings report and they shoot up or shoot down there they're really demonstrative of what you're saying adam danielle boeing has done fairly well at talking about planes in recent years but there's been some concern about the trade war and how these aluminum tariffs might in impact the manufacture but there's some good news out today for boeing about a new contract with the air force they've got a prominent history boeing does a sort of splitting stocks i read someplace that like eleven times between the
fifty's and the ninety's they'd split stock so how did boeing going to do in twenty nineteen if they got a splitter are they going to maybe splat. so i like boeing here honestly and yes you're absolutely right boeing has been hit by a lot of the tariff wars but i'm thinking if we can see an aloof resolution with these tariff wars and the next month or two that can especially have a positive impact on boeing i'm looking forward to trade up to about a four twenty price point and you know as far as the stock split yes boeing does have a history of stock splits and if boeing does have a stock split that would make me even more bullish because that would bring down the price for other investors to be able to come in at a lower price and continue pushing up the stock of one of the best airliners out there so i really like boeing and. intimating anything here but that boeing ward today i thought it was interesting and you know patrick
shanahan the acting secretary of defense back in the day worked for boeing so i'm sure that doesn't help i'm not saying anything different whatsoever but that usually never never hurts maybe he's recused himself or for all i know. people love and i love to talk about cosco i love to talk about it because it's really cool and fun talking about a twenty seven pound container of macaroni and cheese that they sell that holds a hundred eighty servings with a shelf life of like two decades thing but and it's and but they've also famous for their rotisserie chicken right and it's been less than five bucks for years tell us about cosco stuck out with them been doing and how do you think they're going to do going forward adam. so cosco had its worst december that i can remember in a really long time along with the rest the stocks unlike united airlines which raise prices and did well cost the lower prices to compete with their competitors
and it didn't pan out so well for them one thing they are doing is they just bought a chicken farm which they announced recently and they're you know they were just there you go yeah so they're going to be able to keep their prices low which is a good thing they have such a head start in their demo so i think costco should consolidate around here i'm not a big fan of the stock here but i would be shorting it either just more of a neutral outlook for the near future but they're doing some fun things and the macaroni and cheese is real big of. the doomsday yeah right you put it in your survival hut and are you still big on paper hell look at it i mean it's kids go and it's still one of the stronger stocks i'm nervous with everything this is a really big earnings season we're heading into so i want to see how these earnings play out for the stocks before i continue with my guidance but pay pal's been great and danielle finally we just about thirty seconds anything you're looking forward
to next week with regard to earnings or markets. so right now i'm primarily looking for the run into earnings that i mean speaking of pay pal that's actually one of our favorite picks as well four of them run into earnings we're looking at microsoft and amazon to continue trading higher into those earnings reports and then i mean we have to see what the companies report and the end but i am looking for a bullish run into earnings in those tech names well we hope you'll both come back and share in lightness with your great information and intelligence and fun to daniel she and adam mesh thanks to you bill. so if i can has nine lives it appears that iconic retailer sears may not be far behind we've been watching the saga unfold as the company which filed for chapter eleven bankruptcy protection back in october had been left for dead by most observers but after a couple of last minute offers to save the company and
a bankruptcy auction that we told you about last week it took place this week in a new york courtroom sears has been sliced this week in a new york courtroom sears has been saved but it what cost here to fill us in is conservative commentator steve malzberg hey steve thanks for being here sure so it reminds me of that scene in that old money python film holy grail that movie where the death collector is picking up bodies and a fellow turns to the death collector and the guy is trying to turn and says i'm not dead yet and the other guy tells the death of the actor but he will be soon just hang around for a few minutes he's very ill will sears or ultimately be dead i mean what's the latest on them. ok well the latest is that eddie lampert the chairman who many believe ran the company into the ground when he took over in two thousand and thirteen and merged with kmart he won the auction that took place in
a new york court room monday tuesday and very early yesterday morning very early today late last night he won and he originally came in with an offer of four point four billion to save the company last week that was turned down it went up to five billion and then he went up to about five point three billion and that's the offer that stands now the judge has to sign off on this february first but reportedly the wall street journal says the judge was pushing for this to say four hundred stores and fifty thousand jobs so he'll probably sign off on it a lot of creditors are not happy because eddie lampert is going to benefit here number one he's not going to be responsible for any liability and the lawsuits that come from creditors number two his hedge fund gets one point two billion dollars debt forgiveness so some of these creditors are saying you know i wish we would just liquidate this whole thing we get more money and why should he get these advantages so it could be very interesting to see going forward how serious adjust
but the question is bart as you talk about dying and may be dead soon what what if you could this series have been what are they going to sell who's going to run to sears you know how do they compete with wal-mart and home depot and adams on i mean it's going to be very interesting to watch and the serious store is as we all know being they were really in these these malls many of these malls which are just shuttered i mean the whole thing they're just sitting in suburban areas all across the united states and and not doing anything so i mean. there's no hub there that's really going to bring in volume so it remains a big question steve before we go we've got a couple of minutes i want to talk about and this is really for our younger viewers who may not know i mean talk about the significance of sears back in the day they really were in the amazon before there was an amazon you know how did they get to this point i mean these to sell houses for gosh sakes. well there are one hundred
twenty six years old and because i'm a hundred and ten i know you i've old enough to remember of all that up there remember when the sears catalog used to come every year sears was really adam is on before there was amazon in a sense they that catalog of theirs where you could order call up an order what you want and eventually you'd get the delivery had everything we're talking about tires for your car we're talking about appliances for your kitchen we're talking about furniture for your house clothing everything you could imagine sears had in that catalog and had it in their stores and you could get your car fixed oil changed at this year's auto center when you go in to go shopping for washing machines kenmore washers and driers sears was it it's iconic it's america khana and a lot of people say that it went downhill when eddie lampert and his hedge fund took it over in two thousand and thirteen he didn't pay enough attention he was
more interested in buying debt and and doing financial dealings that benefited his financial well being and his hedge funds financial well being and the stores didn't keep up they were in his run as well not enough attention to detail and they didn't take advantage and fall in line with the internet boom they fell behind so you know a lot of people are saying maybe the death of sears would be a good thing unnatural thing don't cry over it embrace it it was a wonderful run but it's time to go so a lot of people would miss it but maybe that's so many and that's going to be what we have to watch going forward absolutely among all those things that you mentioned steve i also remember they sold firearms they sold guns you order it again out of the catalogue and those famous craftsman tools they still sell those things but yeah craftsman they really branded it so it was very important it was the amazon
back in the day we appreciate you so much filling us in on all the details steve it was not only informative but as always fun conservative commentator steve malzberg thanks for being with us. thanks barr prescience. chance thanks to you for being with us you can catch boom bust on directv channel three twenty one or dish channel two eighty or streaming twenty four seven on channel one thirty two at pluto t.v. or as always hit us up at youtube dot com slash boom bust r t c n x time so long for now. when i came back from iraq now oh mary was her was cocaine methamphetamine so anything that's altering trying to get us out of. that bad mindset using the chemical that would be self medicating. i want to be
drinking and drinking just killing myself drinking alcohol links don't drink to get drunk alcoholics drink to feel normal. that's why it's this way drug addicts do what they do shop us over and they're right here star cool under which these guys are going through to do it it just means to. need to be helped and not good pushed on by the v.a.'s are as drugs go and stuff they need to be built. they've really shouldn't be looked at like numbers they should be looked at like people if they go to a veteran center for health issues be considered as someone who really needs attention and. trial when he was running in two thousand and sixteen articulated a vision of foreign policy that was clearly at odds with what you would consider
the sort of post-war liberal international consensus that that american one policy is held and there might be some claim that there are elements of that critique that has some validity here's the problem though. it's not enough to offer a critique you can see that there are problems with the existing foreign policy and then you have to offer something that's a better person period all true and this is where i think trump is has failed miserably. because as you know provision of my point i wanted to. ask but i. owe. you for your height oh i lost his boss because i just got then you just got to go which was you know just anybody among my fellow those in prison but the pressure on us i don't mean has been. so nice as you know but i was you know. you know just i mean what it i'm already but it was sped up out of me just
a lot of the media and the i mean the law. has been up as well i must say i mean i really feel that you will get off on getting worse but those were the office. people are going to respond on one of these but i was listening to this where this part of this i'm with. my family feisty you could look at obama just but that's already yes it will be and he thought if you think of it i think with you you're seeing him in ticket my thought aloud problem you just got to go to. this job and just failed on a conference on two feet from the government's front piece of this house has expressed its confidence in the gulf. that british prime.