tv Boom Bust RT December 14, 2019 9:30am-10:00am EST
block the merging of white fat intake and face into one after 7 close breakdown whether the feds have a case. in zimbabwe president says that while the country's currency is not working even the nation is not going to go back to backing from the u.s. dollar so is crypto the answer so much to get through today so let's get started. and we begin with an agreement on phase one of the u.s. trade deal which will prevent a new round of tariff set to take place on sunday the announcement was made by washington on friday and they confirmed by china though let's face it both sides are being pretty light on specifics and that's being kind there are so few details being given that the markets today frankly seemed confused so let's head to the wall to break down exactly what has been agreed to here because as i mentioned one of the few specifics here actually does come from president trump which states that both sides have agreed to quote a very large phase deal phase one deal with china adding that 25 percent tariffs on chinese imports would remain in place but that the 15 percent levies on other goods
would be cut in half so here's what both sides actually said this morning listen. there's a very large deal that covers tremendous manufacturing farming a lot of rules regulations a lot of things are covered it's a phase one deal but a lot of big things are covered and i say affectionately the farmers are going to have to go out and buy much larger tractors because it means a lot of business a tremendous amount of those are. the agreement would help improve cooperation between china and u.s. in economy and treat effectively manage the differences in economy and trade areas she will note stables development of the economy and trade really. create something a lot of words words words but what are the specifics but we do know this that the new round of tariffs totaling $160000000000.00 that were set to be imposed on sunday on chinese goods will not happen so how is the market responded well pretty
positively today with the market friday but then kind of back down again the markets are confused too let's bring back in my co-anchor because the i and boom bust correspondent sara month as they oka and christine i'll start with you because here's the thing so much about the straight talk right we know about has been about getting this deal done and last week the president made a statement that things one of the deal he said was going to be done until after the 2020 election then the markets crash and so we jump back on that don't at all not true we're very very close to a deal and then we're sitting there today friday and we're looking at the possibility of these new tariffs mean imposed so they get a deal done but no one's saying specifically what is in the deal what do we know so right now the markets don't know anything and that's why today all day the markets start off in the negative and right now as a closing market today the markets unchanged the s. and p. is pretty much flat the dow is completely flat and the reason is the markets don't know how to digest this information it's not exactly positive if you don't know what the specifics are it's kind of like getting an earnings report saying that the company beat but what are the margins like how do they grow did they grow at all
like you're not getting any of the meat so you really don't know how to trade this environment and you. getting a rollback in tariffs but not a complete rollback and there's absolutely no indication that he won't implement tariffs again so you're getting a deal that has absolutely no enforcement whether on the u.s. side are trying to china cannot force us to never protest on them again not to implement if they don't bring back x.y.z. and us has an absolutely no forcible action on china in order to where any of these i p i p trade talks or any yeah so everything they're saying right president trump is saying everything's there that's been said by by china sounds like they were talking when they were negotiating the deal it's not the way you sell when you have a deal done right you should be walking out now and saying all right here it is folks the very very specific terms of the agriculture is a big part of this right and we know that as part of this. administration had said they wanted $50000000000.00 in additional agricultural buy in from china for 2020
that would have doubled the amount that they're supposed to be getting whether they got in 2017 they said they wanted that if you watch other business shows today there say you know the deals done but what makes this show different right is we're looking for facts there is no evidence so far that i have been able to find that or maybe that you have found that indicates that that actually has happened right so neither side has actually confirmed the u.s. trade representative's office or overlay heiser released a statement in that statement nowhere does it say what that figure it looks like as far as more agriculture $15000000000.00 that's a huge number like you said $27000.00 that would be more than double and that's that's not something that we even know could actually be possible i mean china also said they would be buying more agriculture but they did not give a figure so it's still very unclear and looking now at the farmers who have been suffering and really hurting since the start of this trade war they're looking to continue to sell their products a subsidy from president trump isn't going to change that they want their clients back they want their business they've been hurting so badly right now they want to
continue to be able to sell but again we don't know if it's going to. even be possible to do the sale of $50000000000.00 that supposedly the united states wants china to buy rights trump needs the agricultural part of this more the mean i think he needs the intellectual property more than he needs the rest of the reason for that is he has an election obviously coming up later and you want to make sure that farmers are on your side you can say look i've got a great deal for the farmers one of the problems he's been running into is that the farmers have been hurting you have soybean farmers in this country who can't sell their products and who have crops that are literally rotting the president's response to that has been tariffs and then he says out of those tariffs on one. part of the problem with this president is that he the way he views money all right and for right or for wrong he views money in a way that says i need to just cut a check to people because in business that's what you have harmed do i make you whole with the check but that doesn't necessarily work in the agricultural case we're not at all * because they're losing long term clients they're losing supply
chains that have been built in the past decade that have now been separate they're losing relationship ties because just putting a check that pulls you over for the next season what about the next season you're still not going to rely on that check forever you need to make sure you have those clients and right now those cars are going elsewhere to source the soybeans and i'm going to ration right now. i mean is generation to go to pass this thing down and i want to bring it back a little bit to the actual i have something to show you where we kind of put up what the u.s. concession looks like and what they're trying to concession looks like this is like you said where you're going to get your facts through the united states like you've . been and we've repeated that 25 percent on $250000000000.00 worth of chinese imports will remain the september 1st tariffs of 15 percent will be cut in half to 7 point 5 percent and the additional penalties that we're separate summerfest this sunday will completely be removed. tweeted where we got that information but let's look at the chinese side now this includes purchasing of more agricultural strengthening laws protecting foreign companies operating in china and to actual
property theft and providing more transparency around currency movements but again . no specific details intellectual property theft has been the core one of the core issues at this time from the strain of the from the start was of course one of the and china is saying that they will they will work on they have some something in the agreement that discusses this we want specifics we want to know what that entails and is the united states really happy with what their side of the agreement is saying can we put that graphic up for just one second because i will leave it actually on this but i want to show you on that graphic on the chinese side that you look at it there is not one specific thing that china has conceded to that we can point to and i'm just saying on the day when you say the deal is done we've won we are declaring victory this is wonderful for all of us it would be nice to see at least one specific and we don't have one yet and it looks exactly like what we had already on the table in march so we could have just saved ourselves 9 months of as i know i feel before and i don't know is i mean we have 2 weeks left of this year
this probably won't be signed this year and we're going into the election year like you said mr president needs the farmers so well we'll see what happens but i'm sure you 2 will bring us. closer ones as they look at things so much remain on the on your time. australians want us airways chose airbus over boeing as a preferred aircraft manufacturer for jets capable of the world's longest commercial flight from sydney to london and this deal which includes up 212-835-2000 air flights with flight times of up to 21 hours cements air bus as the global leader in ultra long haul flights want us looks to begin these flights in the 1st half of 2023 but it's still subject to a final decision on order by march analysts estimate that these plans will cost between $2.00 to $3000000000.00 with the investment likely to be phased in over 3 years meanwhile boeing is still facing massive delays on its rival 777 x. program and continues to deal with the aftermath following the 2 deadly 737 max crash by the transit of samsung electronics has received
a 16 month jail term on charges of union busting activities according to south korean media. saying worked with others to obstruct the formation and activities of an independent trade union there were a total of 12 people indicted with king a former executive director got a sentence of 10 months in jail in 2016 south korea's supreme court ruled that the dismissal of the employee involved in efforts to form a union at samsung ever led was a harsh sanction and the company reinstated them south korea has powerful auto unions but the country's overall union participation is around 10 percent. markets got a boost around the world as china and the u.s. reached a semblance of a phase one truce let's take a look and see how we ended up the week over in russia was up as the russian central bank cut the key interest rate again to 6 and a quarter this makes it the 5th consecutive interest rate cut and the central bank
announce that it might take a pause now and assess the ruble which had been the best performing currency in emerging markets this year pared gains after comments that further cuts were less likely over in asia japan led the entire asian markets higher this week with the nikkei hitting fresh $52.00 week highs today boosted by the positive trade headlines japan is now poised to issue a forecast of 1.4 percent in economic growth for the fiscal year starting april 1st taking into account the expected boost from an upcoming stimulus package this was a surprise as most analysts estimated this to come in lower this stimulus package is now worth $121000000000.00 in public spending and this is in addition to other private sector outlays over in shanghai the markets got an early christmas present from the fed as it reiterated its dovish stance to the markets stocks then jumped higher friday as u.s. trade negotiators had offered to cancel a new china tariffs and reduce existing levies on chinese goods by up to 50 percent on $360000000000.00 worth of imports to end the week up almost 2 percent done in
hong kong the hang seng recorded its best week in 6 months on trade deal reports real estate am property value rebounded and tech stocks such as shalmi and ac they led on the introduction of new 5 g. phones however the protest still continued to ravage its streets over in india the sensex gained as conflict between china and the us appears to be resolving a decisive victory of britain's conservative party in the elections further strengthen the process prospect of a smooth bragg's it and the market is now expected some fresh gun. stimulus to further address the slowdown in the local economy down in australia the assets and then the weak point 5 percent boosted by macro tailwind obviously trade but also on oil as a benchmark could now. hire the australian dollar jump to its highest value in almost 5 months much further appreciation while requires some clear improvements in the australian domestic economy and finally in south africa the all shares were up
holding on to gains this by very disappointing mining production data and slowing retail sales in the domestic economy obviously overshadowed domestic news and boosted the index closing that week up modestly now over to bend for the rest americas and europe all right christine thank you for that well let's give you a little spoiler alert here because the americas in europe they were all up this week over in europe let's start there the cac and the dax they are both up this week with futures pricing pointing to better gains for the german and french indices over in the u.k. the footsie is also up as the surge in sterling in the ways of british headquartered multinational corporations futures pointed to a 0.3 percent gain for the footsie but a 1.3 percent jump for the german dax and the 1.5 percent for the french cac over in south america continues to push into record territory they are doing very well there the brazilian exchange reaching an all time high this week of 112829 sliding up to north america and b. in b. and mexico is up the s. and p. 500 and the nasdaq all in positive territory for this week and i don't need to tell
you why the u.s. and china are agreeing to that phase one deal has pushed the markets higher this week though on friday the markets were kind of up and down with limited details of the deal leaving the markets pretty unsure on how to respond and finally north to canada also up again helped by word 'd of the u.s. china phase one deal being reached and that is this week's market walk. time now for a quick break but hang here because when we read federal regulators i can today firing and the injunction against. but to block the merging of what that instagram and facebook into one out service will break down whether the feds have a case and zimbabwe's president says while the country's currency isn't working the nation isn't going to go back to backing from the u.s. dollar so it's crept up the answer and as we get a break here the numbers at the close.
a maid in the shallows. i had a spiritual experience. and i have a little girl that died in the fire sent there collins. $5000000000.00 or. more looking for a kidney reaching. 54 years old and 21 years on good role model. crime i didn't commit. to that even in the sense. that nobody would. you know. it was pretty much before. they already had him guilty or that. nobody.
i think kenny hasn't forgiven himself for something. i knew she was there and i mean exactly what obviously. people. sometimes there's no explanation. welcome back facebook stock is down is the federal trade commission is considering filing an injunction against the social media giant over its plans to connect its whatsapp messaging service with the chat features of instagram and facebook as i said the f.t.c. is only considering the move because the injunction would still need to be approved by a majority of the 5 person commission and then
a lawsuit against facebook would have to be filed facebook and other tech giants like google amazon and apple they have been under increasing scrutiny over whether they've taken actions that are eliminating competition in their respective markets there are also been a number of presidential candidates who are pushing the idea of breaking up big tech companies so you know chris i know you're not a fan of that look i don't necessarily think that this is the kind of thing that antitrust you know applies to so what if they spoke already owns whatsapp and instagram and facebook and they don't how are they holding up the market by combining exactly they're really. and that's why i believe this is actually a very unfair attack on facebook and i and again i'm no fan of face rather they have had privacy issues a tremendous amount of privacy issues but the fact is that all they are doing is a volcano social media company they're not just going to stick to one thing they're just not going to be a facebook platform for ever they've evolved evolved into a streamlined chat they've evolved into photo sharing and that's why they want to just combine and merge all these services it makes sense it's a process of evolution but why does the f.t.c.
even allow facebook to buy instagram and to buy what's up into one company if now they want to break it up if they merge the technology that's the part that doesn't make it so it really doesn't. symbolize president. vowed that the country would not revert back to using the u.s. dollar app in the new local currency that was introduced this year plunged against the u.s. dollar zimbabwe dollar has now lost 61 percent of its value against the u.s. and analysts expected to weaken even further as the government scrambles for the u.s.d. to pay for imports of grain following the severe drought economists businesses and opposition have accused the government of rushing to reintroduce is a dollar without properly backing it with foreign currency reserves given the scarcity of foreign investments in the country the resulting shortage of u.s.d. to pay for imports has led to fuel and electricity shortages crippling businesses and important sectors of the country such as mining now cash shortages rising fuel costs and hyper inflation of 440 percent emphasizes and wobblies need for
a currency that is immune to government influence to say that zimbabwe's government has mismanaged the nation's fiscal policy would be a massive understatement as we find ourselves now in the exact same predicament as in 2008 where hyperinflation reached its climax in november hitting 79.6 trillion percent now unfortunately for zimbabwe the governments have banned foreign currencies and made it extremely difficult to obtain crypto currency as well unfortunately if nothing is done to resolve this hyperinflation will ultimately result in the transfer of wealth of citizens to the government. zimbabwe's struggles really highlight the need for big point or a different alternative a centralized currency in the country as a citizens have been disappointed time and time again for putting their trust in the government now to give us more we bring in eric wade editor of the capital so despite being down from the record highs of december 27th seen large have still had a great year with bitcoin up almost 110 percent year to date meanwhile the s.n.p.
year to date is only up $26.00. percent so given these results why are so many asset managers and wealth managers in the us now still claim that crypto is not a real asset and is not a sound investment. well i think that the big thing that holds a lot of people back is just the volatility and the crypto investors have come to understand extremely high volatility is just part and parcel with this different asset right and setting aside the fact that a lot of a lot of professional investors maybe their charter doesn't even allow them to dip their toe into crypto currencies but i think over time we're going to see more and more of them try to adopt maybe a looser charter we've had. recently there was even a. publication by yale that said adding a little bit of this different asset class even though it has high volatility of
crypto currency adding it into your portfolio can even work to reduce how much volatility your overall portfolio has right so it's just a matter of time until professional investors see maybe if i can work with the volatility instead of have it work against me that could even actually help my returns in the long run but going back to the issue of zimbabwe for instance you're absolutely right volatility is clearly an issue with crypto whether you're all in a group there we're not we all understand that but when you look at a country like zimbabwe i mean they're in a position where. that is the result of central play that it's the result of what government is doing there and this is no multiple times that the government has decimated the savings of the currency that belong to the citizenry doesn't zimbabwe kind of state is a great example of where the. currency control by the people couldn't do worse could it and less well is how to. yeah absolutely zimbabwe is
a great example but part of the problem with that would be. currencies come with a lot of technologies that work together and decentralization is just one of them and i think there's a lot of central banks that are that are tempted to maybe cafeteria plan this right to just pick and choose where we want this aspect of crypto the fast transactions and the low fees but we don't necessarily want decentralization which means that we're not in charge and you can't really expect to get the benefits and the results of a well run decentralized cryptocurrency if you don't bring that decentralization with you when you adopt it doesn't make any sense at all now let's look at china china is also facing some problems with inflation they're going to start trying to test out their digital r. and b. this year when inflation hits record 7 year high at 4 and a half percent so china has been confronted with multiple trials and challenges amid this ongoing trade war with the us and now in our to counteract those problems
china central bank decided to pump into the system in order to stimulate the economy the p.t.s.d. at the same time we're also now start trials of this digital army ad sense at the end of this year and next year so the 4 major state owned commercial banks 3 leading telecom operators as well as far away alibaba and tencent they are all expected to participate here so the question is will this be a successful launch and will it be able to successfully well it's a relation crisis or will it still just inherit the exact same problem being a centrally backed. yeah that's a lot of yeses to that yes it will be a successful launch the next question you should ask is successful for who and it will be successful for the central banks maybe more so then anybody who relies upon cash for their business because what they're trying to do is they're trying to replace the cash part of their currencies the piece that we carry in our wallets or that we handle someone when we buy
a cup of coffee and they're trying to replace that with a crypto back to type of currency so it won't change the inflation whatsoever and any bad habits that they have are going to come straight over with that but considered a successful launch because they're going to eliminate the paper bills in the callings and switch it all over to digital but that's not going to change their inflation rate one bit. eric laid out after that carol thank you so much for being here. absolutely good to have you here i i. i. you know before we go to the next story just to his point i mean zimbabwe venezuela there are multiple examples that you can give right where government central planning has not worked with currency so why not see what it is not in turkey as well at that turkey and as well as all the south america countries in there as well right all right as we wrap up today we want to finish with a story that frankly left it shaking our heads this week east scooter company
unicorn have you heard of them well they have officially shut down so you're not going to hear much they have lost all of their investors' money and they have not produced a single actual scooter even though it pre-sold $350.00 scooters at $699.00 apiece customers received an email from the founder nick evans saying that he was very sorry and that he was trying to sell unicorns assets to offer partial refunds isn't that kind of him adding quote we unfortunately do not have the resources to deliver your unicorns nor are we able to provide refunds as we are completely out of funds. and quote so where did the $150000.00 in start of capital and nearly $250000.00 in preorder money go it went to facebook and google ads payments for loans and quote my favorite other expenses we know what that means somebody is getting paid for evan's claims that unfortunately the cost of the ads because he's blaming facebook ads were too expensive and to build
a sustainable business and if that is not ridiculous enough for you how about this the company had not posted on facebook or instagram since june 20th but then 4 weeks ago wrote on its website that it was on track to ship scooters on december 15th adding that customers would have their orders in time for christmas and hanukkah you asked me earlier you said what's the deal that you order one of those where you so angry about this no but this kind of story infuriates me because they knew they were out of money they blew money on facebook and google ads which i don't believe by the way i believe that what they absolutely did was spend the money on loans and and all the founders got paid and not one single scooter can get delivered not one of those. is ridiculous it's not like this is an entirely new concept there have been scooters already and you go into any manufacturer budge and you say this is good i want to build it for me it really doesn't take that much time stealing investor money because that happens a lot right now investors know when they go when that things can fall apart but selling preorders on a product and then not delivering any of them i personally believe that some kind
of criminal charges should be filed here because it feels like fraud it does feel like fraud and embezzlement that there was a lot of personal gain and here they make money and you get nothing. unfortunately this happens a lot and you see a lot of these deals on it and you go go and have all these sites ask for crowdfunding as well that's right that's it for this time you can catch a boom bust on direct t.v. channel 321 dish network counted 80.47 on t.v. the free t.v. ad counties i mean i or as always you can do this up at youtube dot com slash boom bust r.t. and we will see you next time. little bit of let me. ask i wouldn't. take i could. not be known to show more than.
you love clues you know nothing. to do make it a stupid don't want to touch. what do i have the kook on the standards of that now as you. know most of the think political. knew of those damone. much of this news for not in 1000 from the. so would you hire them to use in to do. one thing with your house on their not classroom. match geysers financial survival guide liquid assets are those that you can convert in zigzags quite easily. to keep in mind no as if i'm into
a place to watch guys or for. facebook and google started with a great idea and great ideals unfortunately it was also a very dark so. they are constructing a profile of you and that profile is real it's detailed and it never goes away turns out that google is manipulating your opinions from the very 1st character that you type into the search for their. will always favor one dog food over another one comparative shopping service over another and one candidate over another they can suppress certain types of results on what they think you should be see if they have this kind of power then democracy is an illusion the free and fair election doesn't exist the more rope we give them the sooner we're all.
i was frightened because i couldn't see anything and i couldn't think what had happened and i've lost 90 percent of the vision and one i. got seems from chile and. what the un accusing the army there of human rights violations to government protests this was a left severely injured in the crackdown by chilean authorities. also coming up as britain's conservative party sweeps through its biggest election victory in more than 3 decades the scottish national party also with. slide north all the border giving renewed impetus to independence hall as we look into the possible repercussions. on the us.