tv Boom Bust RT January 29, 2019 7:30pm-8:01pm EST
this is boom bust broadcasting around the world and covering the world of business and finance and the impact on all of us there is a lot to get to today i'm part killed in washington and we're sure glad you're on board coming up this time we drilled deeper on venezuela's to mulch with turmoil and their oil reserves with producer science have injured plus the partial u.s. government shutdown may be over for now but predatory lenders are still on the prowl bartlett nailer public citizen joins us to analyze the industry and how they target the most vulnerable among us and later here inside the washington beltway huawei has been charged with myriad crimes as senior u.s. government officials ramp up the rhetoric in the ongoing conflict with china on the eve of the u.s. china trade negotiations here in washington they begin wednesday mail edition the owner of which join us to discuss all that in our sites but first we had right to some headlines let's go. brinksmanship leads our global report today is u.k.
prime minister theresa may opens her draft agreement to amendments from the british house of commons ms may effectively conceding that parliament has disregarded past precedent and their way to the breakfast table spent a full day of rollicking debate in an editing session on her draft plan ms may is especially anxious for changes on the matter of the so-called backstop issue on the irish border changes to the status quo on that front could violate and perhaps destroy the good friday peace agreement for northern ireland ms may's minority government includes the democrat unionist party of militant protestant party from northern ireland her current political position the result of an election ms may chose to call gives gives to the de facto veto power on the backstop issue meanwhile with only fifty nine days left until the u.k. is set to leave the e.u. on the continent even a go shaders seem perfectly content with the brits a plan they agreed to with ms may and seem to be saying no in numerous. ways each
time renegotiation is raised we'll continue to follow the story. and heading south the span that country has posted their best official job report in a decade the national statistics institute reports that in twenty eighteen the unemployment rate fell significantly by more than six percent from the twenty seven thousand level but no one seems to be pouring sangria over the news as the unemployment rate in the final quarter of last year still remained remarkably high and get this fourteen point five percent to give you some sense of depth and breath of spain's doldrums the unemployment rate has not gone below ten percent since before the global crash of two thousand and eight check out the chart there look at that high point back in twenty thirteen spanish unemployment was more than twenty six percent more than a quarter of the working population while i mean i guess everything's relative. and the latest review on the trump tax cuts one year after is here it's another plan
and from a source that may surprise you the national association of business economics or n a b e reports their business decision makers found that eighty four percent of respondents in a poll say they made no change to their plans on hiring or investment due to the tax cuts president trump and his tax called tax cut supports famously argued that cuts in rates paid by the wealthiest would boost they've actually increased both hiring and investment well not so much more broadly the n a b e surely indicated survey indicated responded to expect investment to slow in the near term expectations about employment also shifted significantly downward. and turning to venezuela the u.s. state department revealed last friday it gave control of venezuela's state assets located in the u.s. to their attempted appointee as president opposition leader one would doe among those assets are funds owned by the venezuelan central bank but physically. hold in
the federal reserve bank of new york yesterday trump administration officials announced against both wales state energy company p.t. via say blocking access to about seven billion dollars in assets in the u.s. drug national security advisor john bolton told fox news quote we're in conversation with major companies now in the us it would make a difference if we could have american companies produce oil in venezuela it would be good for venezuela and the people of the united states follow the money or in this case the oil money i suppose and here to catch us up on the history of that coveted oil supply is our own. thanks bart and bart as you mentioned u.s. government officials this week announcing venezuela's state on oil a company known as p.d.s.a. now raising the risk of destruction to oil supply from venezuela well then as well has the world's largest proven oil reserves followed by saudi arabia canada iran and iraq but now if you look at the top of world oil exports you'll see that
venezuela is not even and top twelve men as well actually comes in number twelve and that's because venezuela is potential has not been realized due to a lack of investment and now is short of a history of venezuela's oil industry bart venezuela's oil production reached an all time high in one thousand nine hundred seventy when the country produced three point eight million barrels per day in one thousand nine hundred seventy six venezuela officially nationalized its oil industry and that was when venezuela's state owned oil company p.v. essay was formed but between one thousand nine hundred seventy and nine hundred eighty five or oil production and venezuela experienced a decline over fifty percent but then production began to grow and venezuela sought to attract foreign investments opening up its oil industry to foreign investment and by nine hundred ninety eight venezuela's oil production had recovered to three point five million barrels per day in one thousand nine hundred ninety nine hugo chavez became so. serving as president of venezuela during the venice and during
the venezuela general strike of two thousand and two president chavez fired over nineteen thousand employees of p d vs a and replaced them with employees loyalist to his government and now all the venezuela has the world's largest oil reserves most of venezuela's oil consist of extra heavy crude in the orinoco belt this oil is particularly challenging to produce part which is by venezuela invited international oil companies in developing these reserves and companies like exxon mobil b.p. chevron total and konopka phillips invested billions of dollars in technology and infrastructure to turn the extra heavy oil into crude oil exports now the challenge in producing these oil requires significant capital investment and u.s. is venezuela's biggest customer exporting and venezuela exports about forty eight percent of the oil exports to the u.s.
and as their biggest foreign asset is citgo the u.s. based refinery and now currently venezuela accounts for about six percent of u.s. crude oil imports so any disruption of imports could easily cost u.s. refineries a lot of money now u.s. refineries are among the few customers that pay cash to venezuela for its oil and that's because venezuela's oil shipments to china and russia are usually taken as you pay been for billions of dollars in debt now let's take a look at the causes of venezuela's oil decline as in two thousand and seven oil prices were right were rising and the chavez government saw more revenue then vestment made by international oil companies began to pay off venezuela demanded changes in agreements made by the international oil companies that could give p.d.s. a majority control of their products exxon mobil and conoco phillips refuse and as a result their assets were cease and when oil prices were high chavez spend billions of oil of. money from the oil industry into the country's social programs
but he failed to invest adequately in its capital invest in tense of oil industry and by twenty eighteen venezuela's oil production fell to one point five million perils a day so venezuela's oil industry cannot currently recover without significant reinvestment and that's when china comes into place which has lent over fifty billion dollars to venezuela through or oil for loan agreements over the past decade securing supplies for its fast growing economy so countries like china who are desperate for oil stand to lose a lot of money event as well as oil industry collapses so a great report just makes me wonder whether or not folks out there whether or not it's china russia or the u.s. in the u.k. are more interested in profits than the people of venezuela thank you for that and lightning report so i tavenner.
back in twenty fifteen headlines of the demise of so-called payday lenders those companies preying upon the less fortunate and income strapped families with loans that incredibly high interest rates some of you even like at one hundred percent those terrible troubles were the result of many individuals and families having no other way to make ends meet and take out these incredibly unfair loans what many inevitably did was they couldn't pay the loans off with those high interest rates so then they did what wait for it take out more high interest loans further deepening a disastrous debt spiral the reason the stocks on payday lenders like easy corp and easy money were seen to be about to crash and they did take a real tumbled you can see there in twenty sixteen on that chart was due to new regulations imposed by the administration of us president barack obama which would treat lenders with more fairness as well as all the other consumers that rely upon
these payday lenders but things have surely changed since twenty fifteen here to help us understand what occurred and to look at how this sudden surge of new high interest bar words could soon again be on the hook in the find it is by natural policy advocate a public citizen and we're sure glad you're there bartlett nailer thank you for being here my friend thank you so first of all did i mess up on the history if i did tell tell me the history is accurately told. an important point is the rules themselves were devised starting in two thousand and fifteen over several years of a lot of input both from industry and consumers they were set to take effect last year and the truck administration under mick mulvaney now the chief of staff for president trump was the acting director of the consumer financial protection bureau creation a creation of senator elizabeth warren and they were stopped and now any day now perhaps the new rules will. i'm in which will basically got the current look as though they never they put the proposal out there the bank the stocks and they did
go down i never really never actually got implemented that's true they delayed and so what is the circumstance with what they're going to are they just going to let them die or are they re promulgated redrafted the rules so that they're more favorable to the payday lenders it will be the latter they'll be more favorable to the payday lenders basically payday lending works by basically giving money to pretty much anybody some of those who are poor are able to repay one hundred percent four hundred percent interest rates they pay they sell everything they go to their brothers to pay it back they take out another loan they go to their churches some of the biggest advocates for reform are churches because they're actually having to pay these are the poor people the really poor people are simply unable to pay so this is a business model where the poor are subsidizing the even more poor what the new rules were going to say is that the lender had to do a little bit of research to make sure the person could repay it if not they
couldn't extend it and in the end that person is going to have to go to his brother his sister his church so why tack on the four hundred percent interest rate in the first place now those rules are likely to be stymied and they will take away that underwriting requirement they will take away the limit on how many times the person can take out a new loan to pay for the first loan so it's a part of the interest rate though set by the state so is there like a federal cap it can't be higher than this amount if i remember and it may have been when you were here last year in the spring talking about this issue i remember some crazy chart we had with you know like mississippi was i don't want to quote the number but some crazy high interest rate number there is no federal cap a couple of dozen states have caps the way the payday lenders get around that is by aligning themselves with a. bank you got to back it says acme national bank it's a nationally regulated bank and as i just said there's no interest rate cap there
and so virginia for example which has an interest rate cap can basically do payday loan shark lending by affiliated with a national bank it's called the red to bank scheme ok now one of the reasons we were thinking about you last week and we're so pleased to have you as always bartlett but the partial government shutdown the eight hundred thousand people federal workers going to food banks going to their churches and then wilbur ross adding insult to injury saying why would they you know why would they go to food banks they could get a loan well yeah what sort of long could they get will they get a payday loan darn it just abysmal disconnect from from the commerce secretary but we could be right back there. on the fifteenth of february if there is not a deal if the deal's not reach this is a problem for not just the poorest of the poor people who are working and not being paid by the federal government or the contractors right and i am sure a significant percent of this eight hundred thousand that went a month without
a paycheck have already fallen into the trap because again these high interest rates are going to be charged so so the average american doesn't have four hundred dollars to for an emergency car repair so i'm sure a significant number of these eight hundred thousand could not make rent could not pay the bills probably took out the easiest type of loan they could a loan shark payday loan and starting now they will be learning about these hidden interest rates and we're going to be learning these stories from this current this just recently ended government shutdown let alone the one that may start up in two and a half weeks this is probably unfair to ask you on the spur of the moment but some of these companies and maybe we don't the mentioning names if you do know the answer have they been big supporters of one political party or another oh yes they are heavy supporters of the republican party generally the house financial services . committee and mick mulvaney who was a congressperson from south carolina received a prodigious amount of money from the payday lending industry and you can see what
he's done he's stymied the rule so is his successor likely to stymie the rule and he pulled punches on some of the c.f.p. cases against payday lenders he eliminated the penalty reduced the penalty in one case he charged the guy one dollar. i start i finish where i started off and say thank you for being there looking out for average consumers bartlett nailer an actual policy advocate of public service thank you thank you. and time now for a quick break but hang here because when we return here inside the washington beltway while the way has been charged with myriad crimes as senior u.s. government officials ramp up the rhetoric in the ongoing conflict with china on the eve of u.s. china trade negotiators here in the nation's capital in d.c. alex behala vision hillary for it will be with us on the other side of the break to discuss and as we take a super quick pause for the promotional cause here the daily numbers from new york at the closing bell we will be back in
attempting to force regime change in venezuela brought to you by the trumpet ministration washington's gross interference in the internal affairs of this lot an american country is risky illegal and the possibility of large scale violence is very real one thing is certain the people of venezuela will suffer the most.
welcome back turning to some earnings news reports previews and others weapons manufacture a locket martin turned in a mildly disappointing set of results although it didn't seem to move the stock price much lockheed's total revenues reported at fourteen point four billion dollars with adjusted earnings of four dollars and thirty nine cents per share lockheed reached an all time stock high priced last february of three hundred sixty dollars per share as a massive federal contractor lockheed seems to have been dented by the partial government shutdown we're just speaking about before the break the trump administration's move to suspend the scale of one hundred lockheed made f. thirty five fighter jets to turkey also crimped lockheed's profits c.e.o. marilyn hewson flagged the possibility of another federal funding failure on february fifteenth morning reporters and investors that twenty nine thousand contract awards and orders could be delayed if no deal is reached to keep the
government open. fame motorcycle manufacturer harley davidson has also hit a bump in the road reporting fourth quarter earnings of nine hundred fifty five million dollars in revenues and per share profits both below expectations harley davidson stock took a skid following seven percent on the news the all time high for the stock by the way it was back in december of two thousand. six at a price of seventy three dollars per share like lockheed harley was hit hard by the drop administration's trade related turbulence with tariffs acting as a brake on the company in june of last year president trump said an angry tweet at the company after harley had said the president's trade tactics pushed the motorcycle maker to move some production outside of the united states. and construction equipment giant caterpillar also seem to be on a trend with a disappointing earnings report with ties to china and or trade issues total revenue for the company in q four twenty eight thousand was fourteen point three
billion dollars an eleven percent increase over q four of the year before twenty seventeen earnings at two dollars and fifty five cents per share were also below expectations of two dollars and ninety nine cents the company said mr trump's trade tariffs hurt their bottom line by an estimated get this one hundred million dollars and look at the five day chart here and that dramatic drop on the news see that one hundred thirty six dollars per share down to one hundred thirty three bam they've gone from booming all time high last january january nineteenth of last year twenty seventeen twenty eighteen rather at one hundred seventy dollars per share to one hundred twenty four in trading today caterpillar has been especially vulnerable to cycles of boom and bust as it tries to chase enormous profits from the chinese construction sector now apparently in a cooling period. senior
levels u.s. government officials have announced that they will prosecute no prosecute the massive chinese telecom company while wafer myriad crimes including theft of corporate secrets evasion of u.s. economic sanctions on iran and obstruction of justice as we know the daughter of the company's founder and chief financial officer for wildlife main one joe is under house arrest in canada for evading the u.s. sanctions on iran. by selling products to iran using a phony front company set up by huawei the u.s. is seeking her extradition from canada to the united states meanwhile in china the government has arrested two former canadian diplomats and what some suspect is retaliation for ms meng's arrest for more we go to canada and to our teams alex behala bitch for the latest hey alex u.s. officials say that this isn't anything new in fact the case against wall way goes back a decade and reaches all the way up to the. c. suite of the company what's the reaction in canada and do we expect that she will
actually be extradited to the states. well as it stands the canadian government is working with the united states so all expectations are are that the canadians will hand man over to the u.s. now the question is when will this happen this process could last about thirty days we're not expecting any motion until but the beginning of march but when you look at canada here and as it stands with me right now the government itself has in a state of flux probably heard our ambassador to china was fired by prime minister trudeau this because he came out nice said two of the chinese media here in toronto that there are a couple of factors here that could actually get mang out of trouble including the fact that president trump has basically said that she could be a political chip to get a china deal done between the u.s. and china so from a canadian perspective right now look we're been put in between a rock and a hard place we know that the u.s. requested this but at the same time china is our number two trading partner and the
u.s. is number one we're not having the best time with it with president trump right now so for us to turn our backs on the number two trading partner it's not really going in our favor at this point and what we heard from the u.s. from the today when when the this big announcement was made about mang and all the charges against her well we got a thank you and that's pretty much all canada is going to get from this the country's been put in a very bad position but at the same time i can see more than a thank you there's still aluminum tariffs and steel tariffs up against this country from the u.s. and that doesn't seem like it's going to change even with arresting mang and doing the u.s. a lot of favors yeah and you know the president was calling justin trudeau all sorts of names i mean just didn't seem like a great relationship i mean this entire situation comes as the tit for tat trade war between the u.s. continues with a deadline of march first as a point at which the trumpet ministration say more tariffs will be imposed upon goods from china imported to the u.s. earlier and i'm in the month u.s.
officials traveled to beijing for to go. this week on wednesday chinese official who be here in washington for the latest on that we turn to our friend and to the c.e.o. of us dr mark hillary for which hillary oh what do we expect will happen at this point at least you never know with this crew if these negotiations don't reap in the real rewards well i do think there are going to be some rewards and that is regardless of any deal we know that robert lighthouse of the u.s. trade representative has already said that he wants to maintain those ten percent at least as they exist today and that is because he says that we need to have some kind of enforcement we need a verification of enforcement so as reagan used to say trust but verify we need to verify that they're actually do that they actually do what they promise i'll do so they'll be that reward they'll be some towels that slowing down of the chinese economy so they've come here we know with this huge vast delegation coming they've come for a reason and that is because with their economy slowing down they've had to try and
adjust to trump who is far more of a hard bargaining businessman than we've ever had in the white house pretty he's denigrated former presidents but nevertheless it's true so we know definitely they are going to be arsed to do two things they're already saying that they are going to offer us some some be a big buying spree they've actually said six years very interesting six years because of course two more years maybe a trumpet maybe another four and then who knows what would happen after that so they're already saying six years and they're also going to offer a modest concessions in terms of what we're requiring the u.s. is requiring that there be some tremendous. modifications in terms of the way that they operate the theft the intellectual property and the subsidies that they already offer to their chinese companies of course we can't though dictate that to all nations even in europe i mean ever ask is subsidies receive subsidies from the european union and so we are we have to fight this across the world but we are
going to ask for those concessions they're willing to make modest i would go. well it cosmetically concession so those are the two things i think we'll see some movement on alex real quick we've only got about thirty seconds here should we learn anything from the canada us mexico trade negotiations with regard to the china u.s. negotiations what do you think the big thing we can learn here is it ain't over till it's over the nafta is still in effect and the new deal has not taken place yet we know that the house democrats now are standing in the way of trump they're asking for stricter labor environmental laws or basically stipulations to be put into the new agreement this goes along with what canada's been saying from the very beginning so this deal can change trumpeters should not pass himself on the back quite yet this is not over and you know what it might not even happen might not even happen this year it might take a couple of years of renegotiating because things are changing on the ground he's not holding the house in the senate anymore and stances trump has not caught in the
wind quite yet we're out of time but we want to continue the conversation again they'll be more time i am sure hilary for which alex male of age thank you guys appreciate it. and that's it for this time thanks for being with us you couldn't catch one boss or you tube dot com slash one of us r.t. so long for now. the united states can always. use its tax on other countries. economic sanctions are often just the beginning another thing you like to do is place some military pressure on the countries that you're talking about.
and there has to be an effort to demonize that country and the leader of that country. we have a responsibility for the whole. and we need to make rules for the rest. because without us there will be. we see a. good jump from a thought china's into town trains and jump from thought crime to face crime you know to facebook should rename itself as face crime because they are assisting in a baby this move torture child journalism and the question i guess is why why now why is the child chinese i'm rearing its ugly head in america at this time just
. read the stand. alone one has. run out of good armor our trove of the for our brothers profit off the floor for the america of america. i'm going to let compare to my next question then you can keep an eye on what i did lose a child for truffle that it. was going to. punish . the hatefulness and. get this whole food. the i knew you didn't pay all the time in syria says.
he she ought to have a. model for them after the whole fuck around with mr hate for jim and lawyer for one of our freddie macor. british m.p.'s approve a brags that amendments to renegotiate the backstop with ireland which could change the course of trees amaze you divorce plan. venezuelan supreme court freezes opposition leader why does assets and bans him from leaving the country that comes right after washington sanctioned of the state oil giant unhandled and ed why don't control over venezuela's u.s. based accounts.
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