Skip to main content

tv   Boom Bust  RT  May 10, 2019 8:30pm-9:01pm EDT

8:30 pm
and i'm daniel bruno in washington we're glad you're on board here is what's moving in boston today. terrorists are booming following implementation today and markets are busting correspondent alex mabel that she joins us today to guide us through the grim performance and what it means for the future of u.s. china trade talks and later as i.p.l. listing gets the green light and it's a view full well it soon be slamming on the brakes danielle. gets behind the wheel and gives us a sling around the street following the listing. a cliffhanger ending for the u.s. trade talks with china leads our global report today as negotiators from both sides sit just 2 hours of talks before passing a decision on next steps to the presidential level after exiting that relatively brief round of talks earlier today u.s. treasury secretary said simply we are done adding that he and his chinese counterparts had constructive discussions meanwhile the threatened increase of u.s. tariffs on chinese imports from 10 to 25 percent took effect friday morning
8:31 pm
president trump has labeled an additional threat to apply that duty to another $325000000000.00 dollars 5 of chinese imports not yet covered for now the prospects and schedule for talks is as unclear as ever with president seeming an ambivalent about the content and direction of the talks and chinese president xi concerned about appearances and backing down under pressure so daniel right now it seems where basically when we started this was the most anti-climactic ending to the week as possible right and if this is become a real life reality show then this is sort of the season finale where you don't find out who the winner is exactly so essentially they're just kicking the ball down the aisle america has escalated china so that they will retaliate but for now it seems like the markets are actually rather content with this ending for now. right now for more in-depth coverage we turn to our correspondent alex mayhill of the church in toronto alex welcome. thank you now alex 12
8:32 pm
o 1 am eastern time on friday u.s. tariffs on targeted chinese exports increased as threaten from 10 percent to 25 percent by all accounts china is not going to take these measures sitting down the government has already expressed deep regret over the new tariffs and his pledge to fight back what's the latest. as you guys are saying season finale there's always another season coming around the turn usually there is it looks like the series isn't over when we talk about this though what we saw today was that basically the u.s. hammering china with new sanctions china's common commerce minister said they're going to use count necessary countermeasures but he gave no details on exactly what china is planning on doing american officials were you know they were a little bit disgruntled they did not get what they wanted 2 they were said that china was backtracking on its commitments and many people would agree it looked like things were moving in a certain direction and now will obviously it looks like they're not moving in that
8:33 pm
direction any more even the president trump said just last sunday you know what this does not have to necessarily mean this is going to be the last round of tariffs we're ready to toss more at china if necessary now keep in mind we're looking at 25 percent tariffs now $200000000000.00 the u.s. consumer is going to feel this 10 percent yeah there were buffers in the market in the you know the could have been mitigated but at 25 percent we're looking at u.s. consumers being hurt by these tariffs as well here's a chart graph basically to tell you what is going to happen here what's being hurt the biggest industries electrical machinery sound a t.v. equipment machinery in appliances furniture motor vehicle parts iron and steel goods we know that americans use all of the above and with a 25 percent tariff oh my goodness prices are going up the average american family of 4 could expect to spend $500.00 more if the. terror do kick in and if
8:34 pm
is the big question what we're seeing here also is the fact that these tariffs are kicking out 12 a one and this includes ships that have not left port out of china it takes 3 weeks for these ships to get here think about it there's ships of the ocean right now what's happening within the next 3 weeks this is a buffer zone my friends a buffer zone so things can change by the time those boats get to the states those tariffs could be gone if the u.s. and china decide to continue with these negotiations don't call it over until that fat lady sings everything seems clear as mud right now you know so there is this the tariffs are in the price pipeline they could be canceled by the time ships may get here on the other side if there is if and when china retaliates i know we don't have specific but to specifics but what's a ballpark for what their reaction might look like. a look we were to know that china retaliated with $110000000000.00 worth of tariffs against the u.s.
8:35 pm
a products are being exported from the u.s. to china but we know that really that's not that big of a thing just simply because china doesn't import as many u.s. goods as the goods going the other way around also china's use some of its legal abilities and baking it's just difficult for u.s. companies to operate in china slowing things down that's one of the big plays as well also when we're looking at china it's not over it's not just about tariffs here there's other ways china can do things that can drop its currency basically to mitigate what's happening and also don't forget about those treasury bonds china owns 1 point one trillion in u.s. treasury bonds that's something that they could put into the game as well and then we just reach a different level we're not hearing that from china right now again 3 weeks that looks like everything is over but it's not over and there's still room for negotiations america is playing hard ball and china looks like it has about ready to hit back. america's definitely playing hardball here they decided to implement
8:36 pm
this terrace right after the gold only cala day when a lot of asian investors were actually caught off guard they were celebrating and everybody was feeling very hopeful and optimistic goading into gold and weekend may day in asia however the tears came out over the weekend and a lot of the investors and traders were a couple caught completely off guard so we now hear that canada also is trying to get its $0.02 and when it comes to these talks what can you tell us. well canada comes to canada prime minister trudeau called president trump earlier this week and he was basically asking president trump to can you get in there and ask for our 2 guys back we know that the chinese arrested 2 canadians people are saying that's in retaliation for canada arresting the wild way while the c.f.o. that was the big question here look at it all this we're talking about how this these trade talks are affecting the global economy another thing that's happening in canada canada looks like we're going to be different wave than the rest of the world our economy is looking pretty good and some stats came out the cording to
8:37 pm
statistics canada the economy added 101-061-0650 extension 0 jobs in april that's the biggest number of the country seen since 976 this is good news for prime minister justin trudeau who needs a lot of help the polls are saying that he is done and over with come october when the next canadian elections are but it's a long time just like we've these trade talks and nothing's over yet and we could see things turn around quite quite quickly in both accounts a quick trip around the world with our g. correspondent alex mann hell of it thank you. thank you. let's take a walk around the world and see how the global markets are doing this week in the light of the trade drama most of the markets are down i will start off and my. at
8:38 pm
the most 2.5 percent this was primarily led lower by a lot of the industrial names names like oil and gas and mining sectors now going over to aig they have had a very rough week as the entire market whiplash on the uncertainty of the u.s. china trade war in shanghai they were actually on trying to close down more than 5 percent for the week but beijing at the last minute took efforts to stabilize the market the yen strengthened and the next close 3 point one percent higher on friday to end the week slightly down a little more than one percent the saying over in hong kong follows mainland and they gained one percent following beijing statement but they still ended the week down more than 2 percent however moving on to japan and nikkei the market was down more than 3 percent on trade war worries the nikkei ended the week lower as cyclical names guys that are really heavily affected by macro economic changes they drag down the entire market the markets in asia were actually closed week in celebration of golden week investors were quite optimistic going into it and they
8:39 pm
had expected the u.s. china trade talks to be resolved soon but they were actually quite surprising cafard issued his tweet over the weekend unlike mainland japan and was not reassured by beijing stabilisation and they did not rebound into the close moving over to india the sensex is down 3.9 percent lower this week clocking in their worst week in over 7 months several factors contribute to this continued decline including trumps efforts to seeing around oil exports to 0 this will have a direct impact on india as iran is one of its main suppliers oil prices shot up to 6 months high impacting the broader indian market and the currency the market is also cautious ahead of the lok sabha elections leading to a high level of volatility moving over to australia. slightly better just down less than one percent for the week as a waits for the us china drama to clear up the market was quite volatile as austria . is
8:40 pm
a commodity heavy nation and if the trade war continues many other large cap names will be impacted names such as rio $10.00 to and $40.00 skews metal script and finally over to all shares over in south africa this was also down as macro headwinds weighed down on the economy annual inflation rate increased to 4.5 percent amid a sharp rise in fuel prices the trade war has depressed the global commodity prices and its local clock currencies coupled that with a decrease chinese demand for imports and that would throw african markets further off balance now let's turn things over to daniel who are take us through western europe and the americas danielle thanks christi moving quickly we see a big global trend this week see if you can spot it as a global trade and certainly resonates throughout world markets in europe we see the u.k. is full of down for the week in germany the dax down in france the also down moving quickly to the americas in colombia the cold down for the week in brazil also down
8:41 pm
for the week weakness across the americas moving to standard and poor's index down for the week new york stock exchange and nasdaq also down and completing the perfect perfect week of red arrows the toronto stock exchange all global exchanges down the global look at markets this week. time now for a quick break but here because when we come back over as i feel this thing finally gets the green light and it's a view well it's in the slamming on the brakes. a simpler trading gets behind the wheel and gives us a swing around the street following the listing and as we go to break here is the numbers at the closing bell. it's a church or economy. there is to cater for
8:42 pm
a world that unless i just in america sell if i go into a big bank bank of america citibank wells fargo bank and i say i want to borrow $100000.00 and i want you to charge me is 0 percent interest rate on that and then i want the cause of that $100000.00 at your bank and i want you to pay me 5 percent and i want to therefore collect all having. to get a tax free ok can i do that now but a bank can do that. exists is a stick of water bottle phone in the stomach of a fish the brand is spawns of the coca-cola company which sells millions of bottles of soda every day the idea was that let's tell consumers there are the bad ones there are the litter bugs are throwing us away industry should be going in for all this waste the company has long promised to reuse the plastic. and mainly that seems cool sets for some new plastic. away and i need to stay on
8:43 pm
you especially objects from the me. on the new vest that is the end of it for the teak but for now the mountains of moist only grow higher. after the previous stage of my career was over everyone wondered what i was going to do next the ball different clubs on one hand it is logical to sort of go from fields where everything is familiar on the other i want to the new challenge and the fresh perspective i'm used to surprising people by salt or not if you think. i'm going to talk about football not for you or else you think i was going to go. by the way ways of the flying here. you know world is
8:44 pm
a big part of their lives and it's time. to dig deeper to hit the stories that made stream media refuses to tell more than ever we need to be smart we need to stop slamming the door on the shouting. it's time for critical thinking it's time to fight for the little for the truth the time is not for washing clothes for watching. there's an interesting shift going on right now between the private and the public markets the average age of us companies that went public in 1909 was only 4 years
8:45 pm
old however in 2018 the median age of companies going private public was 12 years which means that they are 3 times older wiser and mature and that's supposed to be a good thing right companies are maturing and stabilizing before entering the public market where they are subjected to the obligations and the scrutiny of the world they have time to build themselves up and grow the business again management and operational experience before having to report to the millions of shareholders they are of the do sherry duty to but not necessarily it really depends on what camp your end for the company this phenomenon is a real big positive as that means that there is enough funding and capital to raise in the private market in order for them to grow they don't need to turn to the public markets to raise the necessary funds 2 decades ago this was not the case as the private markets were not so established so there was no way for a growing company to raise hundreds of millions of dollars in funding without debuting and i. now you have mega venture funds like soft bank and n.e.a.
8:46 pm
available to fund a series d. round if necessary for the private market this also this is also a really big positive because they're getting in at the ground floor and they're subsequently funding the company's growth at higher and higher valuations each time which means that they're capitalizing on most of the growth and value creation before the company even enters the public market and by the time it i.p.o.'s most of the growth has already been taking out think of the company like a child the private come market profits off the growth of the company from infancy stage before as a company matured into a teen it would i.p.o. and the public would benefit from the company's growth now as a teen is staying private so the bulk of its growth years are now only benefiting the private market by the time it i.p.o.'s there are only very slow steady growth ahead the public market doesn't get to see the teenage growth spurt years anymore the most recent examples of this where lift and snap chat it is almost like
8:47 pm
a 0 sum game developing between the private and the public markets as a private takes more of the public loses more a successful company will allow v.c. to over 10 times their initial investment over the years the public market however will only see maybe 50 to 70 percent return in that same time period and here to give us the latest on the most recent hyped up i.p.o. hoover is daniel shay's developer of options simpler trading welcome. thank you so much for having me so over i.p.o. today and this was hyped up for years and today they're off to a very disappointing start. yes that's correct so what i look at any i.p.o. particularly something like hoover that's been hyped up for busy quite a long period of time as a traitor for me what i want to do is i want to wait until that hype dies down and at that point that's typically what i'm going to love to get into the stock but not on the 1st day of the i.p.o. . as overpriced at $45.00 which was already on the lower end of its offer range of
8:48 pm
$44.00 to $50.00 and it opened at $42.00 below its i.p.o. price and now it's struggling to stay afloat so the private market actually still gain from this because even at this current valuation it's still higher than their last round of funding so right now tell us about the early investors of how are they making out. so in this situation just as you were talking about earlier the early investors the early executives the investors the venture capitalists those are the people who are making exponential gains right now you know i mean they've been maybe even since 2010 but at the end of the day i mean if you're looking at it today and you're looking to get in it you have to think about what you want to do with the stock so while those people were lucky they had good timing they were able to have this company fall into their lop and you know at the end of the day they also made the decision to invest in it you have to look at what you want to do with
8:49 pm
it and if you're thinking hey you know maybe i want to buy and hold this for the next 1015 years if you're looking at it as a difference of $5.00 or $10.00 in the share price then does it really make that much of a difference probably not. again on this point that christie was raising in the intro this increased. of a company when it goes to the i.p.o. what's your take on why that shift is happening and what the effect is is that it's having on these i.p.o.'s it's almost like the you get to the orange it's already been juiced. yes and i do agree with your take for sure but at the same time you know for the public that really didn't have the opportunity to get in the beginning this is really the opportunity that they have now and so when you look at it you say ok well the valuation has grown exponentially over the course of the past 910 years we didn't have. opportunity now is that opportunity so when you're
8:50 pm
looking at it you can say ok well if i'm interested in getting into this about $40.00 a share and holding it for 1015 years and if it grows to like you said you know if it grows 50 percent or 75 percent i mean for me about still a good return on a long term investment so as an investor while the situation has changed you still have to look at what you're trying to get out of it and there's different ways to look at this to sort of counter your expectations here but is it yeah simple that this news just disappointing news is even worse than it looks when we compare results to other sort of tech peers ali baba facebook lift and snap the new york times pointed out that they all popped you know had this tech pop of roughly 1020 percent i should say after their i.p.o.'s why isn't delivering that same tech pop and that's design it suggests there's more fundamental weakness in that hasn't yet been processed in the prevailing market attitudes. honestly i think it has to do
8:51 pm
with a lift so i mean i think that lift was so hyped up the lift was the one that came in 1st you know out of the 2 companies and because lift has been in the news over the course of the past several weeks and all it has done is basically straight lower i think that it really tainted as i.p.o. and so people coming in now today looking to do better they say who are lifted their very similar we've seen what lift has done do i really want to put my money and zuber and honestly i think that's what's happening here with today and one other thing happening this week is the strike that happened drivers going on strike do you think that had anything to do or how much did it have to do with these results today. oh absolutely i mean any type of negative news when a company is going out and having an i.p.o. that isn't helpful so you know you have a situation where
8:52 pm
a lift has i think it's about 30 percent lower than the initial i.p.o. price and then we're supposed to follow up with that pool was the trade wars situation that's happening this week plus the strike i mean all of that i think what it's going to do is bring down that initial price after the i.p.o. and what's going to eventually happen is that price is going to kind of level out and at that point if you're really interested in picking up some of which i am honestly but i want to wait for it to level out a bit. i think that's going to be the point where you can come in and do that but not on the 1st day. for the public market this is going to be a really interesting opportunity because then we actually get to see how gross from now we are you know that a lot of value has already been extracted out of over by the private markets are ready and now they have an accumulated debt of i think $7000000000.00 of community losses so given that given the astronomical numbers. it's
8:53 pm
a big number to have to dig themselves out of before they have to start growing again so for the public or the public market viewers how at what point is this actually worthwhile of an investment because that means. they cannot sustain this valuation for long. exactly and so i think that for me particularly as a technical analyst i love looking at the fundamentals as well but for me when you have a recent i.p.o. you do not have that technical chart pattern and you just have to give it some time and what i tell our traders in our trading room is when you're looking at a brand new i.p.o. you have to think of it from the standpoint of is this a company that you use is this a company that you believe in is this something that the younger generations such as millennial zx you know are using and going to continue to use in the grand scheme of it because if you compare it to something like amazon and netflix who
8:54 pm
weren't profitable for years you know you have lists and you have in that same situation doesn't necessarily mean that it's a bad buy just means that if you're going to invest your money in it you have to believe in it in the long run and i don't think there's anything wrong with that but from a technical standpoint for me i just have to wait until that price levels out before i can get a little bit more confidence and putting my money into it so we don't have to see if this is actually dead in the waters are not because we have seen a lot of i.p.o.'s that have been dead in the water once they i.p.o. so a lot of the earlier ones saying there was also king digital and i like snap chat go pros those are some very big means that gotta go like they got so hyped up. and it went up like 3040 percent and it just plummeted and some of them actually never recovered but you see like facebook facebook actually manage expect tackler recovery do you think the same thing. i do think that it work and pull off the same
8:55 pm
thing and i think that the smartest thing that they did was coming in at such a lower valuation because i know that initially they were talking about coming in much higher and then when they saw what happened with lift they decided to come in a lower number so i think that might have saved them at the end of the day. but you know for me i just have to have a little patience and i have to look at a couple of the other most recent i.p.o.'s like you're discussing i mean we've we've had zoom this year which is actually doing quite well beyond me so far it's getting really hyped up but again that's another one that all wait for it to kind of level back down and pinterest is also a great example and i think it's my favorite example because if you look at a chart of pinterest i think it's been out maybe 3 weeks now about if my memory serves me correctly but you know initially it had that move up higher directly and then it started to fall sunk down
8:56 pm
a little bit and now at this point it's starting to slowly shift higher and that for me is just the perfect spot to look to add some more. interactive option that's something training thank you so much for having being here yes thank you for having me. and german engineering and steel conglomerate thiessen crip has abandoned plans to split itself into 2 companies instead the some group will please proceed with an initial public offering for its elevator manufacturing unit the some group stock rose roughly 20 percent on news of that change of plans and after the company also disclosed that they expected proposed joint venture with tata steel of india to be effectively blocked by the european commission company management says the commission's conditions on that proposed deal which may remedy antitrust concerns would be deal breakers meanwhile the stock balance only restored about half of the losses in peace and crops price since the plans to split were 1st
8:57 pm
announced. and that's it for this time you can catch boom bust on direct t.v. channel 321 dish network channel 2 a b. or streaming 247 on pluto t.v. their free t.v. channel 132 are as always has. been must see you next time. during the great depression which are old enough to remember that it was most of the family were working. there wasn't it was bad you know much worse objectively day but there was an expectation that things were going to get better. there was a real sense of hopefulness there isn't today today's america where shape by the
8:58 pm
turn principles of concentration of wealth and power. reduced democracy a tax on no doubt engineer elections manufacture consent and other principle it's a call. going to know on. one set of rules for the rich. that's what happens when you put her into the. roof will switch who is dedicated to increasing power of virtue of just you to one of the most influential intellectuals of our time speaks about the modern civilization of america. what is it calling big one is magic internet a new type of digital currency essential eyes digital scarcity chancellor.
8:59 pm
second for bankers call the genesis blog for reason to calling it civil disobedience a source of optimism because i can control my own financial destiny it's just a new way of coming to consensus it's a game changer in the human history and this is columbus discovering a new world this paradigm shifting technology that transforms economics and finance in a heartbeat the apollo 11 landing on to the max and stacey. a
9:00 pm
former u.s. government security analyst is facing up to 50 years in prison after being charged with leaking classified documents on u.s. warfare tactics to the press. us president orders tariffs to be raised on all remaining chinese imports worth about $300000000000.00 and that is after he characterized the trade talks as constructive china is promising to retaliate. when rights activists attempts to block france's arms shipments to saudi arabia as concerns approach to weapons are being used against yemeni seville.


info Stream Only

Uploaded by TV Archive on