tv Boom Bust RT April 6, 2019 8:30am-9:01am EDT
broadcasting around the world covering all aspects of business and finance and how it affects you this is boom but i'm kristie i am for bar chilton and washington we're so glad to have you on board coming up. us john numbers are out for march but what is the landscape for american workers conservative commentator steve joins us to unpack the data. the e.u. has made some bold claims against the european automaker lauren fix the car towed steers us through all the latest accusations across the pond. and later for the world of security tokens and other forms of ideas with a lead advisor with all of that directly ahead but first some headlines. a new level of legal risk for boeing leads our global report today as the first lawsuit is filed in the united states over the crash of ethiopian airlines flight
three hundred two that killed one hundred fifty seven passengers and crew on board the seven thirty seven max jumbo jet the suit was filed by the family of son. mr was a public health expert en route to kenya when she died she is also the great niece of consumer safety advocate ralph nader the u.s. suit alleges quote blinded by its greed boeing has really rushed the seven thirty seven max eight to market with the knowledge and tacit approval of the united states federal aviation administration some other neda spoke to the reporters about why they're aiming to bring the suit against the manufacturer. those in charge of creating and selling this plane did not treat as they would their own daughters. we as passengers need to demand that planes be safe so that no one else
dies profits should not come before safety and we are making this effort here to help prevent a third crash. the suit follows findings by investigators of similar technical problems in the crash of flight three zero two and the october two thousand and eighteen crash of lion air flight six ten which killed one hundred eighty nine people the company's stock has been flailing somewhat over the past month but it has managed to recover around three ninety two today well below its price one month ago around four thirty. this morning the bureau of labor statistics announced the jobs numbers for march and the results were better than expected one hundred ninety six thousand jobs were created last month slightly higher than one hundred seventy five thousand dollars forecasted that is a big turnaround from the very disappointing twenty thousand number in february which was revised up to thirty thousand thirty three thousand in the latest report
the unemployment rate remained unchanged at three point eight percent for a closer look at the jobs report we're joined by conservative commentator steve malzberg welcome steve. it's great to be here thanks for having me steve brandt all of this down for us and tell us about their innovations and how the various demographics did in march and how the way to. yeah well wage is legit asked about that wages increased by just a tenth of a point in march and year to year they were up three point two percent which is a slight decline from the year to year after a february's numbers came in revisions for january you mentioned february up thirteen thousand from twenty to thirty three makes it a little more palatable but for january we were also up one thousand from three hundred eleven thousand to three hundred and twelve thousand a three month average is a healthy one hundred eighty thousand jobs labor force participation that take down for the first time in several months from sixty three point two percent to sixty
three percent even and the demographics remain pretty steady adult and then the unemployment rate was three point six percent women three point three you had whites said three point four black unemployment six point seven and hispanics four point seven percent so not much changes in those demographic numbers but it wasn't a bag among the manufacturing was at. no manufacturing lost six thousand jobs this was after a i think a one thousand job gain in february but still four hundred fifty three thousand manufacturing jobs have been gained since donald trump became president of the united states retail also lost twelve thousand jobs after a twenty thousand decline in february now on the bright side on the plus side health care up forty nine thousand jobs leisure and hospitality thirty three thousand and construction again sixteen thousand and that's
a total of two hundred forty six thousand jobs in construction in the last twelve months that's a lot of number so all are not a very good apart but what is the economic outlook do you think going forward. well i think some confidence has been restored after last month's twenty thousand jobs which i think is proving to be an anomaly. the news on wages is likely to keep the fed in the hands off mode inflation is a concern and many are actually expecting the rate decrease from the fed by the end of the year and i think today's numbers show the economy is not stalling consumer spending is a bit flat gas prices are about fifty percent higher from their low this year but we're on track for two percent growth the wild card china and the trade talks in a trade deal will there be one who knows but all in all i think the economy's in pretty good shape right now so we're definitely hoping that the china trade deal closes very soon this has been dragging its feet for a really long time in the market it's not liking
a very much steve more of our conservative t.v. and radio commentator thank you very much but pleasure. the indian central bank has cut a key interest rate ahead of may's national elections the reserve bank of india's monetary policy committee voted four to two in favor of cutting the rate charges retail banks to six percent down from six and a quarter and official r.b.i. statement cited headwinds in the global economy to justify the second rate cut in recent months on wednesday the sensex stock index and was already trending higher on the expectations of a rate cut coming out of thursday's m.p.c. meeting indian policymakers appeared to be focused on the growth and are allowing some risk of inflation inflation reportedly pushed above two point five percent for february remaining well below the r.b.i.
is target a limit of four percent. the demand for smartphones is on a sharp decline and major players in the industry are feeling it samsung says that it may see a sixty percent drop in operating profit year over year as a chill hits the market r.t.s. alex mahela vege joins us in toronto with more hi alex aria. christie area as if a again so i like that stylus and sam what's the latest well as you just said the me we know samsung is there a massive technology giant at sixty percent in operating costs year after year that's when you're considering the first quarter of two thousand and nineteen much of this obviously has to do with smartphones as we're talking about and one big indicator here and when you think sam so you know we might think of their galaxy phone or their phones but samsung goes beyond that samsung supplies many parts chips and screens etc to other cell phone makers so they've seen
a big drop in orders for that as well and these are all indicators that the whole entire market has lots of scent is just samsung is feeling this drop in consumers want to for so phones or shall i say smartphones in general now one of the big factors here is when you turn this around the amount of money that is being lost here so the company estimate that operating profit for the first three months of two thousand and nineteen will total five point four billion dollars now that's lower than expectations from analysts that have are ready lowered their expectations so you can see that this is definitely a trend all across the board all across the world when it comes to these phones they're looking at when they're going to publish their report in their earnings in later in april brought a fourteen percent drop in earnings so that is substantial for a company like samsung. absolutely i'm sure others my phone companies are feeling this as well such as apple but why do you think there is a sudden shift in consumer behavior why the sudden decline in demand. well that's
a good question and it's also like what are these other companies of what's happening to them we know that wall way who is actually doing very very well is has also seen a decline and as you just mentioned apple we're looking at nine billion dollars and from there they were brought revise their q one so the guidance forecast is dropping by up to nine billion dollars in revenue that's absolutely because of as you know when it comes to apple core part of their business is the i phone itself so they're seeing exactly like samsung they're seeing this decline and they're seeing it massively now that a lot of times you have tim cook coming out and say you know this is what's happening to being the c.e.o. of apple you say well the american dollar is strong that's one of the issues and then of course the overall economic weakness in some countries so people just aren't buying this vote these types of phones and then you have also pointing out pointing fingers at china here's a quote from tim cook and self when it comes to china so what he's saying is lower than anticipated i phone revenue primarily in greater china accounts for all of the
revenue shortfall to our guidance and for much more than our entire year over year revenue decline we know that while weight is dominant when it comes to china but that was perceivable the decline is real never and why in the other competition out there. do we see like a so this is a chart for the global smartphone share where you see the new opportunities how can these smartphone companies pivot to make up for their losses you know that and this i think is one of the big specs of this all in let's go to the consumer the people that are buying these phones this phone that i have in my hand here it's an i phone six s. it's almost four years old do i need to upgrade no absolutely not why am i not upgrading it in the new phones cost a lot of money and i think that's what a lot of consumers are coming saying but more importantly why. the presides where's we're is the catch what in the new phones is so much better than the old photos nothing really and that's something that tim cook is pointing out as well he's
saying that you know what the phones haven't really changed that much so why buy a new phone and i think you know there's just basically a lot of new technology and the phones are expensive so people are waiting to see what's next and if they don't wow us the phone makers won't be making big bucks like they used to. thank you so much higher spano alex the hell of it thank you so much. thank you. time now for a quick break but hang here because when we return the e.u. has made some bold claims against european automakers lauren fix the car coach stares us through the all of these latest accusations and later we find the water and other forms of i. leave at five there with holly. and that break here the closing number.
in the world of political much making the european union has long put values before wealth as its most desirable and tribute. to the time it takes for the e.u. to make a policy decision china can set up a whole new industry. lose that's attractive to potential partners. u.s. veterans who come back from war often tell the same stories. were going after the people who were killing civilians they were not interested in the wellbeing of their own soldiers either they're already several generations of them so i just got this memo from a shirt that says we're going to destroy the government and seven countries in five years americans pay for the wars with their money others with their lives if we were willing to go into harm's way and willing to risk being killed for
a war surely we can risk some discomfort or easiness for. the very made up at our army has said if you don't buy into my ponzi scheme on going to shoot my god. even though the bodies came with well known to be. on steam m.d.s. you see it investigated bernie madoff at least twice before they finally busted him and they it was a well known ponzi scheme invested by well known people massive bernie had an army now apply that to the u.s. dollar the u.s. dollar is a ponzi scheme why do people want the u.s. dollar because if they don't the u.s. military sets in and they're obliterated whether it's iraqi or libya or some other place like this around and so that's what i'm going to send to new york times right he said the u.s. dollar is worthless it's backed by. you know world of. law and conspiracy it's time. to
dig deeper to get the stories that mainstream media refuses to tell more than ever we need to be smart 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 troops the time is now for watching closely watching the hawks. welcome back in today's episode of the brags that drama u.k. prime minister theresa may is pushing for an extension of the exit date while french president emmanuel mccall is asking other even leaders to deny the request unless the u.k. brain significant new offers to the table miss may has asked for an extension to
the deadline to june thirtieth with an allowance for an earlier date if and when an agreement is passed the request was in response to european council president donald tusk suggestion of flexible year long extension programs that m.p.'s in miss may's conservative party are frustrated and very wary of further extensions they worry that the bread's a process could be diverted or. even derailed during a long extension as of now the u.k. is still on track to exit the e.u. on a full twelve with or without a deal. european union authorities accuse german automakers b.m.w. time lerner and volkswagen of collusion to limit the development of emissions clean technology in cars the three automakers broke antitrust rules by acting together to delay the introduction of two emissions cleaning systems between two thousand and six and two thousand and fourteen these two new systems would have reduce harmful nitrogen oxide emissions from diesel cars and filtered emissions in gasoline
vehicles here to help us understand the situation more we're joined by lauren fix of the car coach in new york hi lauren how are you. thanks for having me so good you can join us this so this is a very bold claim to accuse them of collusion how did this investigation even come about like what instigated this probe. well this all came up with the v.w. diesel gate where v.w. initially and of course the other german manufacturer producing a lot of diesel many of these manufacturers were selling up to forty percent diesel vehicles here in the u.s. and even higher percentages in the in the across the world and they are still selling diesel vehicles from many of these manufacturers in other countries so at one point volkswagen group engineers said that they are they over promised under delivered said we can produce diesel vehicles with what's missing there's a tank which has blue fluid and it's your rio that's called blue is a bunch of names for it but it's a blue fluid that actually reduces the emissions now that is true in all the diesel
vehicles being produced today but they did over promise not deliver and produced two liter diesel vehicles that were sold in the us and across the world without this tank and that's where the problem stemmed this would cause a lot of concern when they realised that the emissions coming out the tilt pipe were actually higher because there was a cheap device put into the software so when the car was idling and it knew it was in a mode for being tested it cheated the device and otherwise it was polluting at higher rates so this caused a lot of problems billions of dollars have been fined against volkswagen they've gone after b.m.w. and mercedes and all of the groups that are underneath them so until that point there was a lot of diesel vehicles now there's less diesel vehicles in a lot of manufacturers such as folks were getting decided to go electric but now we're looking at the e.u. saying wait a minute you're polluting we want to piece of this pie so there's going to this is going to have to go to court but the the pain part of it is going to be
a penalty you're talking about up to and percent of global revenue that is a very large number i'm sure in the end it won't be that high but still that is a large number that is enough to hurt these manufacturers but what they have to remember is that all these german manufacturers are the number one employer in germany and other countries so if you're going to hurt those employers that means there's going to be job losses so there's got to be a happy medium where you penalize them but you don't bury the company. i guess they also in this case also have to actually prove that they colluded so their alleged accent would have actually limited europeans opportunities to buy cleaner cars but from what i'm saying like it does not have affected the price so how would the companies have profited in this collusion scenario like well would be the upside. exactly and that's what doesn't make sense in order to prove the menu factures colluded which i don't think they did to to make products that were actually
polluting they would be really hard to prove in court a lot of times it's a money grab or the e.u. will make a statement trying to get something out of this because every single country went after each manufacturer and you can only hurt a company so much before eventually it's going to start impacting jobs in the economy so are not really sure other than to be able to prove their statement and it's really hard to prove collusion unless there's some sort of financial gain and there isn't one. of our two nissan chairman carlos known he's been arrested again in tokyo for the firths fourth time accused of diverting millions and to a separate company that he controlled so what is happening here and is this because this arrest seems to be out of the ordinary is something else happening because it is very out of the ordinary carlos going was the savior of nissan he helped them work together were three no one mitsubishi and together the three companies were able to thrive because they were sharing platforms and sharing information well at some point he wanted to merge all three companies together and nissan didn't like
that and they were literally weeks away from that becoming a done deal someone at nissan didn't like it they made an accusation all we know at this point is that he was arrested he was released on a nine million dollars bond a few weeks ago he was about ready to do a press conference and literally tell everyone what was going on and conveniently about two nights ago they came and arrested him again at five fifty in the morning i find that interesting that they do a raid so early in the morning and hughes. i told today he was going to try to get off they said they were going to extend his hold for an additional ten days because in japan if you're accused of something they cut a western right away and then you can extend that by up to ten days and at that point either have to charge you or release you so we'll see what happens but right now there's a lot of drummed up statements from nissan another people that are making accusations some of this is a bit farfetched they're saying five million dollars was funneled to a middle eastern company who then funneled it to his son i mean that's really hard
to prove so i'm sure that if it did happen at that time that the son has a huge accounting department they would have been able to track that pretty simply so i'm starting to wonder how far this is going to go and what's going to happen when this actually reaches court you should be aware that the percentage of conviction in japan is very high so if they do accuse you it's not like being in the u.s. where you're innocent till proven guilty it's a pretty tough court system absolutely lauren fix thank you so much for a time that was super insightful. but. this has been an amazing week for cryptocurrency with steadily at five thousand and volumes rising across the board with the markets getting healthier we would expect interest and appetite for initial coin offerings to return in two thousand and seventeen we saw nine hundred sixty six. that number skyrocketed to two thousand
two hundred eighty four i.c.'s in two thousand and eighteen but the krypto winter of that year forced many of these startups out of business leaving the projects and tokens dead in the water many see it as a good thing that we had this correction because it forced the bad products out of the game survival of the fittest killing off over one thousand five hundred point eight k. dead coins dead coins are coins that have been abandoned and have dead web sites no notes no social updates. wallet's low volume risk is now returning two thousand one thousand and the mark as a markets are stabilizing but how is the i.c.l. market looking here to talk more on that is. advisor of polymath and managing partner block change founders fund thank you so much for joining us. thank you for having me on the show kristie yeah so how is that i see a market shaping up in two thousand and nineteen so we've heard a lot of commentary that the i.c.l. market right now is dead and over as michael novogratz of the galaxy digital said.
yeah absolutely so what we've seen is a ninety five percent decrease in i.c.a.o. funding since the start of twenty eight so as you can see this is pretty significant imagine that in the venture capital industry the private equity industry so that is made a really big difference but i wouldn't say it's dead for good i would say that we've got a chance for this is going to pick back up as the markets start to recover what we're looking at a box in founders fund is anticipating a return of i c e o o's when a theorem is above three hundred to five hundred so as it starts to pick up we'll see increasing interest in these c.e.o.'s as people have more disposable income from their increase in valuations from their theory and holdings. so i hear a lot about s.t.l. is nowadays too because it evolved from an i.c.l. can you explain to us like the main differences between the two. absolutely so i c
o o's don't have an underlying asset essentially protects or that investors can go to afterwards if something were to happen the difference between a security or a security token offering is there's essentially. underlying security that has the value of this property and so if we break down the types of securities there's essentially three. so first you've got company ownership structures this could be things like equity dividends revenues that could be promised the second part is you've got assets that could be securitized or tokenize this could be things like property plant and equipment for example and then the third one would be debt structures or debt securitization this could be things like government debentures or bonds or things like that that could be tokenized so it's a pretty exciting market as this transforms but looking at you know how are we able
to fall all securities legislations in each of these jurors different jurisdictions and that's one of the challenges you know with i.c.a.o. is where it wasn't necessarily complying and they were trying to use things like crowd funding legislation or assuming there was no legislation and security tokens as using existing securities legislation in different countries and working on decreasing the costs of fundraising across the world across these different jurisdictions as well as bringing properties like fractional ownership so being able to buy smaller properties of of these securities and then ideally increase liquidity in private securities and i think like even last year the f.c.c. actually said that most of the i.c.'s that came out were actually supposed to be sick carry it out and they just circumvented the system in order to try to crowd fund cheaply and in doing so try to skirt to carry a lot even though these tokens were clearly there they were clearly within the how we test limits so they should be qualified absolutely yeah and this is one of the
one of the things that also you know frustrated us because when we look at this we could clearly see violations in securities legislation we could see a clear you know discrepancy between interests of token holders and security holders so so equity holders and this is also where interest have been misaligned in this is allowed to a lot of investors in i suppose getting burned where individuals have song. you know. but they were in reality securities that just weren't classified properly. really quick what do you think what do you think about this recent boom in initial exchange offerings how does this validate your trust in trust in all of these exchanges. yeah so i mean there are very interesting i mean we've seen a traditional and traditional v.c. and p. we've seen a consolidation right now into betting bigger on key companies to try to dominate
their industry and this is where transformational funding from i see ozer io's in this case can be very good one of the things that infuriates me though is the fact that we've got we've got a century funding to these companies without proper due diligence and this is where di goes are decentralize autonomous i suppose can hope to essentially create protections for investors into these and i think that would help to avoid some of the mistakes that were made in the past thank you so much. polymath thank you so much for your time as a pleasure. thank you for having me on the show. half times is hoping some new products will help bring them back after the stock plummeted to an all time lows in february following a net loss of twelve point six billion dollars for the fourth quarter and two thousand and eighteen now the packaged food giant is seeing slight gains after the
announcement of two new products on two thursday the company announced a new product cranch saucy sauce an amalgamation of ketchup and ranch dressing something we've absolutely all been waiting for while on monday which also happened to be april fool's day the company announced bunch of balls a new take on their lunchables brand that has been on the shelves since one thousand nine hundred eighty eight. that's it for this time see an ice time. young elephants have come to us off the. west basically brutal budging incidents because sadly the baby elephants often do see their mother as the need be killed but also be cut off unfortunate. i do believe and laugh and
smile i see it in these little ones they all say so they express some changes. to be. what politicians do something to them. they put themselves on the line to get accepted or rejected. so when you want to be president. or somehow want to. have to go right to the press this is what the before three of them or can't be good i'm interested always in the waters about how. this should all. their bread for a single purpose. they have a soup of money. they start training very young.
eight months of intensive schooling. rats. and they save lives. and when he wakes up pains what it says is a press strategy agreed by aqua door and the u.k. to be used in the event where he leaks founder julian assange is x. . dieted to the u.s. for their feeling rumors the whistleblower is about to be expelled from his embassy refugee in new london. the u.n. security council calls on libya's rebel factions to avoid bloodshed as a commander from the east of the country advances his troops towards the capital. of government. but in the struggle and as israel prepares for elections some vying to be prime minister sparked controversy with their tough. platforms.