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tv   Boom Bust  RT  December 17, 2019 1:30am-2:01am EST

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would go into mexico would walk through factories would determine whether or not mexico is living up to standards as the u.s. and canada see fit he says it's not going to happen and it makes sense because if you're talking about the sovereignty of mexico and what they're doing they can have other countries coming in there determine whether or not you know they are in violation of this agreement exactly and of course ability is always going to be a problem no matter which kind of trade agreement or talk about whether it's with mexico and canada or with china as we're just about to break get into what's going to the u.s. markets soar to record highs monday as a so-called phase one trade deal between china and the u.s. boosted sentiments and relieve fears of another terror scale ation this deal announced on friday after more than 2 and a half years of an on and off negotiations will reduce some u.s. tariffs on chinese goods in exchange for increased chinese purchases of u.s. ag more details have emerged from the u.s. side now an $86.00 page agreement which ranges from intellectual property to ag purchases where china is to buy up to $50000000000.00 over the next 2 years raising
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total imports to $200000000000.00 while u.s. trade representative said that this deal is totally done absolutely quote china took a more cautious tone reiterating that this would be quote a huge challenge to fulfill those commitments made a statement focused more so on the broad principles of phase one and refrain from mentioning any specific targets during his press conference why well as multiple analysts pointed out the scale of these purchases seemed completely implausible given the slowing chinese economy the us is now asking for an increase in purchases over that of 2017 during the pre-trained war times this is asking for a 110 percent year over year increase in purchases and 2020 which is obviously not visible meanwhile the u.s. has still been unclear about how and when it will roll back other tariffs a condition that china has firmly maintained so it seems like this is only a trade deal for the public eye and to hold for escalation. merely to prevent
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things from getting worse because clearly compliance is an afterthought the u.s.t.r. notes that this agreement quote allows each party to take proportionate response of actions that it deems appropriate in order to resolve disputes in other words if china does not comply with what looks to be an impossible target then us can accuse china of breaking terms and terrorists can go back up again. and now march 8th on trade deals involving the u.s. we're joined by todd about horowitz chief strategist above the trading so is this concerning that we still have no real specifics from china on the terms of the trade deal and are the markets kind of getting ahead of themselves here because the narrative really hasn't changed and now it looks like we have more downside than ever if there are any hiccups in these terms and let's be real these times are impossible so it's not really if it's when. well good afternoon you know the markets are going higher regardless the markets have continued to go make your
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highs rigger or whatever is going on with the china the oh we don't know that what the deal is for sure and are still the negotiations and still could fall through however there's one fact that still remains in the world today there's really only one investment or investors are going to go to chase yield and right now it's still the united states stock market so deal or no deal the market people are chasing you know u.s. stocks and again it may be right it may be wrong but you know we've gone up basically 25 percent this year throughout all the talk of trade wars no trade wars i'm not sure and here we are still yet making yet another new high you know again i believe the next major move will be down but that doesn't mean we can't go up 110 percent before the down moves start. yeah and to that point you know we have to look at humans in the you know the kind of the excellent stock market we've had all year long it's gone up up up but part of that has not been puppet tyrian on the part of president trump i mean he's on a great job whether you like him or not of being able to really talk the markets
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into moving without having to do a whole lot he would just say things are going to happen in the market comes up again and he said a pretty good job of puppets here in that but at some point do we not have to say if the china deal is a real deal there have to be terms to it it has to actually have tangible results that are good for the u.s. economy in order to sustain that isn't that true or not no i agree with your 100 percent i mean look. the markets have done a remarkable job present troubles in a remarkable job and i think he's in a very good job in office but when you look at the overall markets again you go back to we're also going to go with your money yes do we need a real deal yes we have to get a real deal but and our markets getting well ahead of themselves yeah they are but again unfortunately there is no does no way to say that they're not going to go and as long as as long as the federal reserve and central banks around the world remain active participants and backing up these markets just look at japan from
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ninety-nine again is long is are going to keep giving free money to big corporate that means that these markets are going to continue to go i are because we're going to go number one and number 2 it's the only game in town so is long as the fed continues to manipulate their rates and keep them under control in their mind because the free markets would justify higher rates but at the way it goes markets go either until that changes now let's go back to this issue of the s.n.c. and the concerns of the mexican trade official he makes the point and perhaps rightly so that this issue of compliance is about the u.s. dictating terms to other nations nothing that still allows mexico to inspect u.s. factories so is this part of this agreement unilateralist term meaning forced to comply. well you know i think you know we're still in i think one of the big problems is is the house is still not voted on this thing right so i think that everybody is getting a little bit impatient that the deal isn't done i mean the deal is you're been done
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when it was when it was written it should have been done and recently as a couple of weeks ago we had everybody on board unfortunately when you bring the paul political issue into it it creates problems so now you know is mexico having 2nd thoughts about part of the oh they were willing to make or they try to negotiate over more i think everybody's trying to force the house to get off their you know what in vote on it and get it passed so we can get this flow of goods going back a. between mexico and ited states and canada and i think that's more of this problem whether talking about inspections or all the other stuff i think that's really more of a a point of contention and a point of disappointment that is not done yet but doesn't this blow up the deal in some ways because look house democrats essentially went into the president said nafta was the world's worst deal ever this is us in ca's a great deal than the democrats wanted to to declare victory over it by saying well actually we're trying to put together the u.s. it was the way it was terrible but we fixed it and the way we fixed it was we created these provisions that essentially allowed the u.s.
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to control they were standards in mexico of mexico says no no no we're not doing that part of it doesn't that kind of blow up the deal on in terms of the house democrats how did they save face by being able to still go along with it. they're trying to save face by their impeachment but that they're trying to tweak things and make it harder but at the end it's not going to work listen one thing we know right i mean we're nobody wants child or slave labor but we cannot control labor crossover wells and that will not get done and if they vote out that way that's the only way to is that would be their way of actually blowing it up and saying see it's not going to work so i get this is the bigger issue which is why it needs to be voted it was already agreed on by you know in principle by the 3 major players and if we could just get them to quit trying to screw it up which is what they're doing we'd be down to be over and we'd be we'd be shipping our grains and everybody working great back and forth throughout the 3 nations tahara started up on the tank thank so much for that day. thank you so much.
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boris johnson has a plan to invest in parts of england that heavily supported him johnson is telling newly elected m.p.'s on monday that he will direct billions of pounds of investment into the midlands and northern england again to areas who support delivered his crushing election victory last week reports indicate that johnson will use an 80000000000 pound fund to fuel an infrastructure blitz in those northern and midland regions the 2 major points johnson will make to the $109.00 new conservative m.p.'s that the government will start pouring money into parts of britain that had never previously voted tory and secondly to push ahead with briggs it on friday mr johnson will introduce the new withdrawal bill which will pave the way for britain to leave the e.u. on january 31st it includes the prime minister's northern ireland protocol that puts a boarder in the irish sea. well meanwhile prime minister johnson's pledge to invest
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heavily in public services will be crucial to meeting his campaign promises host of artie's going underground action review written c. files this report from london. 29. in british general election campaign was characterized by political parties on all sides of the spectrum announcing policy pledges that of course would impact on the treasury impact on the pound sterling and the impact on the deficit and debt of the british economy but now that boris johnson has got it isn't he seems to realize that his pledges for $33900000000.00 pounds in extra public funding for the health service are going to be very very important to health service in britain stitching the fabric of british society together it's where people from all classes meet and where society takes place on like of course in the united states where you have the health insurance system but
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within 24 hours the government or at least senior tories were talking about the introduction of a health insurance system and in the that even though spending may be increased on public services it shouldn't alarm the city too much in fact share prices of city companies involved in private contracting of services for public bodies has been the whole mark of british society since tony blair's labor government so the fears are that this extra spending will merely find its way straight down through a rabbit hole to big corporations that are the private contractors that make the money from public services not only that but quite a few of these companies some of them even going bust like karelian in multi-billion dollar bankruptcies the thing is as these services do not get good responses from the public so the political dimension multiplies as it were
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more blame is heaped on the public services and more privatisation is therefore called for and more companies get involved in public services in what its detractors call a vicious cycle. so basically any public spending will benefit corporations in the city i'll give billy more than the people the service is their aim to help. time now for a quick break but here because when we return venezuela's president is ready to airdrop the nation's pepto currency to the public just in time for the holidays so how much will be given away and why is nicolas maduro doing this we've got the details and as we go to break here the numbers at the club.
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during the great depression which are old enough to remember that it was most of my family were working. there wasn't it was bad you know much worse objectively that day but there was an expectation that things were going to get better. there was a real sense of hope. there isn't today today's america where shape by the turn principles of concentration of wealth and power. reduced democracy attacks. engineer election manufacture consent and other principles according to. one set of rules for the rich.
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that's what happens when you put her into the. sector of will which will. just dedicated to increasing power for chills just as you'd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. over the school hoops it has been absolute. since a behavior that appears even in death and dying babies even if you never heard of. tickles by parents. and then we learn how to use this in a more complex way i am one of the things that we. had to join in would love to contagiously to love somebody else even if you don't know why they're laughing. join me every thursday on the alex salmond show and i'll be speaking to guests of
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the world of politics. i'm showbusiness i'll see that. welcome back bow we made temporarily halt production of its problem prone 737 max jet well now the aerospace company stock is following legal journalist molly barrows contributor with american lawyer is here now with more on that molly thanks for being here. how big of a dip is the company's scene right now and how much of this has to do with the whistleblower we heard from last week who essentially said that not only did both we know about problems with the mix $737.00 max but also the f.a.a. knew about it and nobody did anything. that's exactly right still
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a lot of questions surrounding those ongoing investigations of exactly what caused the 2 fatal crashes that contributed to the grounding of the 737 max the boeing shares did take a hit they fell more than 4 percent premarket trading to $328.13 and they're not the only ones being hit by this the company's biggest supplier spirit systems their stock also fell 3.4 percent spirit makes the max fuselage along with other parts now according to some media reports analysts are suspending production say that they're suspending it that happen it will likely mean more significant charges for boeing as well as its main suppliers that's why you're seeing the hit in the stocks that they're taking until now a lot of those suppliers have been shielded from the financial toll that has hit boeing the playmakers continued to make these jets even after they were grounded in march and so their suppliers were continuing to make parts because boeing's been saying hey we're going to get cleared by the f.a.a. to have this plane back in the air again by the end of this year and now it looks
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like that's not going to happen so other suppliers are also expected to be impacted by the this disruption if it indeed happens they are french aerospace companies saffron in the u.k. based manufacturing company sr and again the 737 was grounded after 346 people were killed in 2 different crashes and boeing and many other investigators are blaming a software problem that they say that they can fix it they've been meeting regularly with the f.a.a. to do that but so far the f.a.a. has not cleared them to allow the jet to fly again and it seems to be that after this latest meeting between the f.a.a. and boeing that that's when this decision to halt or slow production started reports of that started to surface so what's the latest on the production of the plane's on the halt. we don't know for sure. apparently word that may come after the markets closed today here in the u.s. but boeing is reportedly deciding whether to suspend it altogether or just continue to current production of the $737.00 max but we took a nearly $5000000000.00 after tax charge in the 2nd quarter to compensate carriers
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for that flight but the total cost isn't clear yet they have not made some of the details of these settlements like with southwest. you know they've not made that transparent to the public but the f.a.a. zz top administrator has been telling the media that research vacation of the plane would stretch into 2020 and of course that dash boeing's forecast that regulators were going to sign off on the jet by the end of this year now it looks like that is definitely not going to happen so we'll find out more or maybe by the end of the day again going back to that i'm sure that's going to have a huge impact on the reef certification as well right how do you as the f.a.a. go back to recertify and the public trust that you actually are doing what you're supposed to be doing how this is affecting also boeing's business with other airlines airbus seems to be making a big push here to pick up new clients. yeah absolutely airbus a number of other carriers around the world are not only mistrusting of problems within the 737 max but also the f.a.a. like that whistleblower indicated even after you had the 1st crash the f.a.a.
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was slow to respond as far as grounding the 737 early signal and that there were concerns that needed to be looked at before they allowed other planes fly then you have the 2nd crash where there was a lot of mistrust if you will or discussion about where the f a's priorities lie southwest is the largest operate of 737 they haven't released the details of a settlement but they did announce that they had reached one last week with boeing according to southwest to compensate the airline for some of the financial damage that was done by grounding that plane they didn't disclose the exact terms but they said they would share 100 $25000000.00 of it with their employees so a christmas bonus for those employees but certainly boeing is going to take this has we talked about what their stocks but it's going to be interesting even though investigators are investors rather have lost some pay. what the company analysts are saying this isn't going to destroy boeing by any sense of the word that once the plane is given the green light to continue production into fly again that you're going to see boeing's cash reserves go right back up again the cash is going
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to start flowing so this is just a bump in the road according to some analysts but how they go we're going to find out maybe more tonight with the whistleblower complaint as well that's right molly burls of the murders lawyer thanks so much for your insight on this. thanks. men as well and president nicolas maduro is planning to airdrop the national crypto currency to everyone in the country as part of the holiday bonus men as well has government control of digital currency called the petro and men as well and citizens can all be airdropped happy petro which is worth about $30.00 and in order to be eligible citizens will 1st have to sign up to the petro app so in short this is clearly a way of encouraging more venezuelans to download the government crypto wallet and to accept the government currency on the other hand the petrel act can then be used to exchange to other actual keep their currencies so in theory citizens could accept the petro and then exchange it for big one like one or even dash. and while
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petros be basically given away for free in order to incentivize users other all coins around the world have fared better the center for information and industry development in china released its 15th update of its crypto project rankings where it evaluated them based on basic tech application and innovation eos top the list followed by a theory i'm trying on knolls and list respectively in the top 5 and with more on bring in jeff or men see i am at arca so meanwhile asia has absolutely no problems jumping on top of new technology unlike us while a social media tick-tock is now apparently launching a joint venture with shanghai don't newspaper in order to develop a block chain and powered. content delivery features so recent reports show that blocking technology is rapidly maternal and seeing wide adoption in china and japan so how is this divergence and technology capabilities going to play out 10 years from now when countries like the u.s. fail to let's not even say adopt let's say they haven't even innovated get at this
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point. i don't think the issue is who's 1st i think that you always need some innovators and you always need some pioneers to test new technologies but i don't think it's about who's being 1st i think is making sure you're not last so while the u.s. you know appears to be falling behind or maybe isn't as progressive as you're seeing over asia they're monitoring this very closely the regulators have been talking about this the f.c.c. knows all about this they are certainly aware of what is happening here and i would say we're falling behind so much as we're not aggressively being the leader but certainly as you start to see more breakthroughs and as you start to see some real success whatever the case that may be i think the u.s. will be there just as quickly as other major developing countries. so 2019 was a pretty good year for big coin it's up over 100 percent if you go back year to date obviously it's still lower than what it was in 2017 but still well $29000.00 seems to have trouble right now breaking out of the $7000.00 range we get and been trading there for the last month what do you think is holding it down and can we
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attribute any of that to the recent inflows in the u.s. equities where we are now with all time highs. i think you can i think i think because it has trouble sticking with the same there is a very doubt i think that that's normal for an emerging asset class where we're trying to figure out what is the theme or what is the sticking points that really have long lasting repercussions and earlier this year there was certainly the narrative of. inflation that was creeping back into the picture you also had devaluations by the chinese you want in some other currencies these were all things that were there were positive backdrops for new from money to flow into bitcoin into other digital assets but when equities are up 27 percent year to date you're not going to get a lot of rotation out of equities into digital assets i think you need a little bit of a shock or some sort of a hiccup maybe like what you're seeing in the repo market to get people to pay attention to other asset classes where it's the same thing with alternatives we've seen money coming out of hedge funds you see money coming out of other alternatives as equities have done really well generally you're not looking to new asset classes
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until there's an impetus and right now over least over the last 6 months you know the surely has made a lot of pressure on investors to get into anything new i'm so glad you brought the repo market because right now the fed is once again ramping up its repo purchases and it's just about to inject at least $425000000000.00 of nonexistent money into the economy couple that with q e $4.00 and you're looking at and action that's about 3 times the size of the entire market cap a big point in a single month so isn't that alarming should we be concerned about this isn't this a big catalyst for big going. yeah it definitely is i mean you know you can call it anything you want and call it an i.q. you can call it q.e. 4 you can say it's just you know it's tapering. the repo market so the reality is it's leverage and leverage comes from money printing and money printing means that they're debasing the u.s. dollar and that is all very positive for bitcoin i think we should be scared i think you know in general people tend to ignore news like this for one of 2 reasons right either it's it's either it's ignorance or it's incentives right from an aider
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and standpoint it's often easier to just assume that problems like this will eventually go away and be swept under the rug and it's just easier to hope for that than to actually learn about what's happening from an incentive standpoint if you work for a large bank or you work for a large financial institution your stock is up 4050 percent year to date you just are really incentivized to try to figure out what's really happening here and i think it's a big problem i mean i remember back when i was a trader at merrill lynch on the corporate bond us one of the most senior traders there told me there's no incentive to ever go short the market because if you're right you're not going to get paid anyway and if you're wrong you know you're going to get paid so what's the point most will go along and i think that's the entire view of most market participants right now is that there's just no reason to fight the fed there's no reason to fight the markets just go along ignore all the risks that are out there until you know they come to a head in which case you'll react. jeff garment the out arca thank you so much. thanks for having me. finally today how much is a babe ruth autograph worth depends on the bat but the bat used to hit roots 500th
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home run was sold for a $1000000.00 s.c.p. auctions the not to defy the buyer as for that 500 homer it was hit august 11th 1929 in a game against christie's favorite the cleveland indians according to the auction house the ball cleared the right field wall with league park and then rolled down lexington avenue babe ruth was the 1st of just 27 major league players to reach that 500 mark by the way another babe ruth bat the one used to hit his 1st home run out of yankee stadium and i think 23 that sold for just under 1300000 in 2004. fascinating stuff that separate us time you can catch on youtube dot com slash been must see you next time.
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i had a spiritual experience. and i had the little girl that died in the fire cynthia collins. said even if there were some more looking for a kidney reaching. on 54 years old and 21 years on good role model. of a crime i didn't commit. my own stupidity was in a sense designed red to blue prints that nobody would miss. you know in the. trial was pretty much a farce. we already have them guilty before the trial. tell you nobody. stopped. nothing not people you will learn
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a little. of from through to me has been forgiven themselves for something. i knew she was there and i knew exactly what i was doing. people life. sometimes there's no explanation. i'm going to fulfill the repeated purposes oh politics to the people i promise to be there weaves or buts the. most beautiful. for a. partner. pretty
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good. if you want to. no. stacey. the fight. thank you for. destroying that's true. lavery.
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in the troubled 19 seventies a group. that was coordinated. population . were forced to flee their homes to put these attacks was a p.r. you see the police actually took part in the attacks so instead of preventing it they were active participants in the burning of the streets and. more than 100 innocent civilians were. seniors and we found out more. about the extent to which. was involved in some of those cases. would lead to be named. i think. very very top i think. where. you. give the go ahead.
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this is a failed french authorities warned of the dangers of using military grade gas grenades against demonstrators crowd control devices caused injuries to some yellow vest protesters. throwing is to suspend making its notorious 737 max jet from january as regulators keep the flight data going after 2 fatal crashes claimed hundreds of lives. and the u.s. family entertainment t.v. channels course in the crossfire after it apologizes for dropping an l g p c themed commercial we get reaction. this was just a handful. of women who love each other christmas is all about love and coming together i'm going to top.


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