Skip to main content

tv   Boom Bust  RT  December 14, 2019 1:30pm-2:01pm EST

1:30 pm
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. this is a very large deal the giant it 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 us in economy and trade effectively manage the differences in economy and trade areas she will note stables development of the economy and trade really. great selling 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
1:31 pm
sunday on chinese goods will not happen so how is the market responded well pretty positively today with the market up friday but then kind of back down again the markets are confused let's bring back in my co-anchor because the i and boom bust correspondent sarah month as they ok kristie i'll start with you because here's the thing so much about the straight talk right we know that 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 said oh no 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 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 on 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 complete. flat and the reason is the markets don't
1:32 pm
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're 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 really implement tariffs if they don't bring back x.y.z. and us has an absolutely no forcible action on china in order to or any of these. 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 no 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
1:33 pm
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 were 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 the $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 we. you know with the farmers who have been
1:34 pm
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 are 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 50 $1000000000.00 that supposedly is the united states wants china to buy right so it's a truck 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 you see as an election obviously coming up and you want to make sure that farmers are on your side you can say look i 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 is 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
1:35 pm
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 cutting a check that pulls you over for the next season what about the next season you're still not going to rely on that child forever you need to make sure you have those clients and right now those kinds 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 were separate december 15th this. sunday will completely be removed. tweeted where we got that information but
1:36 pm
let's look at the chinese site now this includes purchasing of more agriculture 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 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 if 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 if 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 we don't looks exactly like what we had
1:37 pm
already on the table in march so we could have just saved ourselves 9 months i know before and i don't know if 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 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. australia's quantize airways chose airbus over boeing as a preferred aircraft manufacturer for jets capable of the world's longest commercial flight from sydney to london this deal which includes up 212-835-2000 air flights with flight times of up to 21 hours cements airbus as the global leader in ultra long haul flights quantize 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 would 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.
1:38 pm
program and continues to deal with the aftermath following the 2 deadly $737.00 max crash the vice president of samsung electronics has received a 16 month jail term on charges of union busting activities according to south korean media king 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 efforts to form a union at samsung ever learned 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 the most was up as the
1:39 pm
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 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 jump higher friday as u.s.
1:40 pm
trade negotiators had offered to cancel a new china tariffs and reduce existing levies on goods by up to 50 percent on $360000000000.00 worth of imports to end the week up almost 2 percent down 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 are jazz 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 got. 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
1:41 pm
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 the week up modestly now over to bend for the rest of america and europe all right christine thank you for that well let's give you a little spoiler alert here because the americas and 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 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
1:42 pm
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 right 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 of the u.s. trying to face 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 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's isn't going to go back to backing from the u.s. dollar so it's kind of the answer and as we go to break here the numbers at the
1:43 pm
close. while a phone. china is the apollo 11. this decade. it's defining the technological landscape for a whole country going to happen for a long time. i would hope to. put themselves on the line to get accepted or rejected. so when you want to be president if you. want. to go on to be the
1:44 pm
person that's what look for reasonable people. interested in the war. they should. join me every thursday on the all excited i'm sure and i'll be speaking to guest of the world of politics sports business i'm sure. i'll see you then. welcome back facebook stock is down as. 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 percent commission and then
1:45 pm
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 but 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 called in at the market by combining exactly they're really not 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 like 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 and make sense of the process of
1:46 pm
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 have. some obvious president. vowed that the country would not revert back to using the u.s. dollar after the new local currency that was introduced this year plunged against the u.s. dollar is a dollar has now lost 61 percent of its value against the u.s.d. and analysts expected to weaken even further as the governments familles by the u.s.d.a. to pay for imports of grain following the severe drought economists businesses and opposition have accuse the government of rushing to reintroduce is a dollar without properly backing it with. 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
1:47 pm
a currency that is immune to government employees 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 struggles really highlight the need for a different alternative the 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 crypto capital so despite being down from the record highs of december 2017 large cap still had a great year with big point almost 110 percent year to date meanwhile the s. and p.
1:48 pm
year to date is only up 26 percent so given these results why are so many asset managers and wealth managers in the us now still claim that kryptos is not a real asset and is not a sound investment. well i think the big thing that holds a lot of people back is just the volatility and. who invest 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
1:49 pm
cryptocurrency 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 and you're absolutely right volatility is clearly an issue with crypto whether you're all in on crypto or not we all understand that but when you look at a country like zimbabwe i mean they're in a position where volatility is the result of central planning it's the result of what government is doing there and this is now multiple times that the government has decimated the savings of the currency that belong to the citizenry doesn't isn't bob what kind of state is a great example of where a decent currency controlled by the people it couldn't do worse could it and that's what how to. yeah absolutely zimbabwe's
1:50 pm
a great example but part of the problem with that would be crypto 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 a record 7 year high of 4 and a half percent so china has been confronted with multiple trials and challenges amid this ongoing trade war with the u.s.
1:51 pm
and now in order to counteract those problems china's central bank decided to pump into the system in order to stimulate the economy the p.t.s.d. at the same time will 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 there are all expected to participate here so the question is will this be a successful launch and will it be able to successfully while it's a relation crisis or will it still just inherit the exact same problem being a centrally backed. you know that's a lot of yeses to that yes it will be a successful launch the next question you should ask is. 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
1:52 pm
buy a cup of coffee and they're trying to replace that with a. 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 wade editor of carroll thank you so much for being here. absolutely glad to have you go. you know before we go to the next to his point i mean zimbabwe even as well. there are multiple examples that you can give right where government central planning has not worked with currency so why not see what's going on in turkey as well as that turkey and as well as all the south america countries in there as well 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
1:53 pm
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 dollars apiece customers received an email from the founder nick evan 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 funding end quote so where did the $150000.00 in start of capital and nearly 2 $150000.00 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 the email from evans claims that unfortunately the cost of the ads because he's blaming facebook ads were too expensive and to build
1:54 pm
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 other do 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 school. already and you go into any manufacturing budget and you say this is good i want to build it for me it really doesn't pay 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
1:55 pm
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 yeah 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 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 how to 80 or screen 247 on blu t.v. the free t.v. app 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. when there is only. just got out of prison. 41 yes. 72 years so. i got arrested so.
1:56 pm
you know. just every day taken out of. work. that looks a little bit. about. were tough. that's to go. on i'm afraid of trying to frighten. us not
1:57 pm
a good song for granted. and
1:58 pm
a very warm welcome to you watching us and see us. it's a let me. ask i would name will. pick i could not
1:59 pm
predict record. this show more than. you love food in general not the. sound you make to see because don't want to cut. the what do i have all of the kook on the scene do it in the out now as you hunch up the next bush. and then the 5th book on tape. on you and those 2 morons to move them along to the snooze through learning one thing for not. so when you hire tied to use in do. not. want to meet your house on the net passing them.
2:00 pm
south america. human rights violations. protest. i was frightened because i couldn't see any i couldn't think what had happened. percent. conservative party suite biggest election victory. the scottish national party also. renewed impetus to independents look into the possible.


info Stream Only

Uploaded by TV Archive on