tv Boom Bust RT December 18, 2019 3:30am-4:01am EST
so much to get to today so let's get started. and we begin here with reports that the hong kong protests have resulted in over $5000000000.00 pulled out of hong kong by investors since april the report from the bank of england shows the protests across hong kong have highlighted political risk as a key vulnerability in hong kong and the political tensions in that city continue to pose risks quote given hong kong's position as a major financial center and quote certainly not a huge amount of investment by any means in fact when you look at hong kong's monetary system that $5000000000.00 is equivalent to 1.25 percent of the gross domestic product meanwhile dollar deposits in hong kong total almost 900000000000 and the increase between september and october according to the hong kong monetary authority is a kristie let's break this down here because obviously in reality the numbers of investment kind of flowing out of hong kong is not really that high again 5 percent is a teeny tiny considering how massive investment is in hong kong and what this does
kind of signal to some issues in terms of political unrest as it does because hong kong has actually entered a core of technical recession and because of this g.d.p. actually shrunk by of almost 3 percent and the government country contribute 2 percent of that to the unrest and turmoil and this is going to be a major thing going into 2020 and whether or not these unrest whether hong kong can or cannot recover and become the financial capital financial safe haven that it once was and as you point out this is a $5000000000.00 isn't really a lie and a lot of that is due to ali baba because of the i.p.o. just last month that actually gave a lot of credibility and a lot of confidence has resurged in hong kong and the u.s. and other western powers continue to show support for hong kong does that kind of ease some of the tensions for investors who are keeping money in hong kong i think it does but then because of the uncertainty that we see right now there are actually a lot more inflows going into singapore into australia right now i think still going to be on the back burner on tell in 2020 when you get
a much clearer picture of whether or not there's going to be a resolution all right let's talk about those other asian markets well. while markets in asia and the us gained amid high optimism analysts reiterate that we still don't have a trade deal signed yet and there are still a number of things that can go wrong further details including structural changes to intellectual property rights remain unclear and as a trumpet ministration is splitting hairs between the right and wrong translators nothing is going to hide the fact that the benchmark import targets are completely unfeasible there's also a general euphoria across all markets because uncertainty has come down there is another escalation but investors should not be complacent playing into the santa rally asian markets got a slight boost after a surprise improvement in november's and production and retail numbers but this could simply be a seasonal rebound as a result beijing sees no reason to launch major fiscal stimulus yet and is saving its tool box for a rainy day as china wrapped up its annual economic work conference stressed maintaining the country's steady growth against the backdrop of global financial
crisis accelerating profound changes and an increasing sources of turbulence worldwide doubling the size of the economy and 2020 is still at the top priority for the communist party next year. for the boris johnson era as britain's prime minister is starting with a drop in the pound as a fill more than one percent in early trade tuesday the reason well media reports of the british government will block a delay to oppose the transition period media reports indicate the johnson will add a revision to the brig's that withdrawal agreement bill that would explicitly rule out an extension of the transition period beyond december of 2020 currently the u.k. is due to leave the e.u. by january 31st 2020 the fear is that the new prime minister will steer the country toward a holder briggs's and that means under the legislation britain would have only 11 months during the transition period for a trade deal to be struck with the e.u.
and there are concerns that 11 months is not in. so let's take a deeper dive here bringing in hillary for which board member with the british american business association hilary glad to have you here pleasure ben christy there are concerns about this hoarder turned towards briggs it but isn't that what johnson has to do he's been pushing for this for some time the markets may not be excited about it but doesn't this at least give them some clarity to their timeline absolutely ben and this is what he ran on you can't run on something like build the wall and not build a wall you can't run and get it done and not get it done and i don't know if you are christian our audience saw the boris johnson vote conservative actually at the parody on love actually movie but what was really important about that was he actually stood on the doorstep with the placards just like the movie laying out what he was going to do he said this he's had his placards he's had his ads yes he has to get it done i actually would defer to the j.p. morgan analyst malcolm barr who said there's about a 25 percent chance that there will still be sort of
a no deal hard breaks it. 25 percent is still rather high and now currently the transition period has the option of being extended for up to 2 years and if that both sides in the u.k. and the both agree on this so isn't part of the problem here that there has been a lot of talk about what's going to happen and what will happen but very little has actually materialized here because we're talking about bureaucrats because you're absolutely right and this is happened time and time again and that was the problem with may and now boris johnson completely different he has a mandate that you have not seen certainly in the u.k. with an 80 seat majority since 1935 that's when the labor party lost last this march the conservative party hasn't seen this majority since 1907 with margaret thatcher the iron lady so a couple of things with regard to the trade deal tying those 2 points together it took the e.u. 7 years to do a trade deal with canada so when you juxtapose that with 11 months it's basically
left this is what i would say is very different you got boris johnson what is boris johnson doing he has got. don't trump up his sleeve and he also has china he has the rest of the world to deal with and that's what he's vying for i personally think he's playing hardball and the threat of a even albeit 25 percent is going to do very well in terms of making the e.u. actually do something instead of yes kristie just talking about it as recently as friday president trump was immediately tweeting out saying let's get the deal done really between the u.k. and the u.s. right now u.s. is ready for a deal forget about europe is that he say yeah we know that this would actually play really well for trump in terms of always talk about trade deals if you want to get something done boris johnson they seem to be almost kind of birds of a feather in many ways they carry themselves certainly but we know that this is britain's factory sector has suffered its worst quarter since the financial crisis right a lot of that all primarily driven by automobiles because several car makers held shutdowns in november and they were worried that britain might crash out of the e.u. by the end of october so we're seeing some of that but again going back to this idea
of getting it done at some point britain has to say we're going to go forward with because up until now hasn't been that politicians are saying we know we're supposed to but we're not really going to be here that's what the entire election was about the global elites watch it no trace of a was a remain a fundamentally she took over from david cameron to step down off of the british public 17400000 of them voted for breaks it he sets down theresa may remain a comes in to do the deal and yes they've watered what the people voted for what labor was hoping for and the remains were hoping for that with the this election would prove well see a lot of people still want to remain with the absolutely not now there is a mandate what i would say is this puts the e.u. really on notice why because the u.k. is going to thrive off the everything said and done you think about the pound the pound is actually held relatively steady there was none of the doom and gloom that was predicted remember there was predicted to be something like you know you know
hundreds of thousands of jobs lost from the. the financial district they were going to go to dublin they were going to go to frankfurt has not happened so what have we seen the predictions all that the pound is going to hold somewhere between 130 and 140 straight through till june i would think the best probably pretty accurate 2nd thing you're going to see that the e.u. is on notice you know why they have to treat the other countries in the better because now they're losing $11000000000.00 a year coming from the u.k. one of the largest contributors to the budget if they don't treat germany better they don't treat the dutch better than the swedish better they will be gone they'll be next in the beeswax it and it will be the breakup of the well it's very likely that it's coming either way but again if it comes back down to trump and johnson getting the deal done i would bet on it i would say it would which were member of the british american business association thanks so much for your insight pleasure . time now for a quick break but hang here because when we return oil bank that's is our prices
are down what does this forecast look like point money and what does that giant saudi aramco i.p.o. look like moving forward we'll break it all down and as we go to break here the numbers at the close. during the great depression. remember it was. it was much worse. but there was an expectation that things would get better.
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we'll come back it is done boeing has officially stated it will suspend production of its 737 max jetliner in light of 2 deadly crashes that resulted in the deaths of over 340 people as we've reported that 737 max has been grounded by the f.a.a. as well as worldwide well the company is attempting to resolve issues with it well now not much to resolve it appears boeing is giving up on the idea of bringing back the 737 max boeing is the largest manufacturing exporter and one of the nation's top private employers and the max it's best selling plane boeing says it will reassign workers from the max project and does not expect for a lowe's or layoffs the company has also not said how they expected duration of the production shutdown impact suppliers around the world will last. well meanwhile news of the discontinuation of the macs meant that shares were up for european aerospace group airbus airbus shares were up 1.6 percent in early trading while boeing shares were down 2 point one percent. earlier this year in february swiss
pharma giant roche tendered an offer to acquire spark therapeutics and aka. transaction spark therapeutics is a fully integrated commercial company developing gene therapies for genetic diseases including blindness hemophilia and other neurodegenerative diseases the lead acid is a gene therapy for the treatment of haemophilia a and b. and make spark the only biotech company to successfully commercialize a gene therapy for genetic disease in the us together with russia's deep wallets sparks should be able to accelerate the development of more gene therapy now this acquisition has been fraught by delays by the antitrust commission but finally monday this $4300000000.00 acquisition has finally been cleared sparked has ceased trading on the n.y.s.e. and will continue to operate as an independent company under roche who popped up nearly 2 percent on the news oxygen manufacturer produce pharmaceuticals paid out nearly $11000000000.00 to the cycler family during the u.s. opioid crisis the latest audit of the pharmaceutical company found that cycler
family members who own the company shifted the massive sum of money as legal pressure intensified on the opioid maker artie's alex miller held that she joins us over the following the story so alex according to the audit cycle family members withdrew 8 times more from perdue between 2008 and 2018 compared to the 13 previous years it's an incredible number what can you tell us. the information we have is from alex partners which is a consulting firm they're saying that this money was moved it was shifted to during one period of time that the one that you just mentioned actually basically the world started to the family to get billions out of the company out of purdue. after they were fined 635000000 and they were this fund was for misleading marketing about the very addictive drugs that we all know as oxycontin now and the money that was shifted was shifted to family trusts it was also holding companies 1500000000 of that went offshore so you could see there was
a lot of motion going on at the time. that produce fuel that the us open epidemic when it is that intensified that's when the family started shifting stuff around that's when they started getting worried about where's our money going to go so the attorney generals believe basically across the country you have attorney generals are talking about this 24 states actually speaking out against the family and a plan by the family to settle 2700 a lawsuit against purdue now the attorney general's believe that more needs to be done to hold the family accountable for what happened here the opioid crisis believe this or not it's blamed for $400000.00 deaths in the united states that is absolutely massive so that's just a from the year 2000 to now so massachusetts attorney general this is a pretty important here more of a healey she was the 1st attorney general to sue or to sue the sackler family the family members and this is what she had to say so today's report confirms what we
revealed in our lawsuit that sakura's pocketed billions of dollars from purdue while thousands of people died from the addictive drugs this is the very definition of ill gotten gains now that we knew this information we have since october with this has been out but what this report does it tells us when the money was actually moved and this gives you a good idea that the money start to get shifting with the lawsuits started popping up after this fine and obviously somebody got scared that their money might be taken away so a lot of claims and a lot of raise directed at the family but what are we hearing from the sacrifice my side. well the sackler family there they're trying to address these $2700.00 lawsuits against them it looks like they've agreed to pay out at least $3000000000.00 also they've stopped on the down from the boards with their daughter the board of directors of the company anymore although they do own it. so get this this is the lawsuits are happening in nearly every state and even though they're
giving up control of the of the come. and it might rise up to about $12000000000.00 once everything is said and done the sock lawyers are basically stepping back because there is a big but included here purdue pharma says the family could back out of the deal if the lawsuits against the progress so it's basically a threat if you're going to keep suing us we might not give you any money in the end so one important thing here 2013 if you look at the sackler family on the forbes list they were among the 20 richest families of the united states of america i'm sure there are up there still and this is a whole thing that i think these attorney generals are really digging into what is this a question of $400000.00 people dead a family moving billions of dollars you know it's one of those situations that the legal system really has to take a deep look at because something doesn't seem right you know well certainly the idea that you going to cap liability at 2700 people when there are as you said
400000 deaths doesn't seem very likely to correspondent allison hell of it thank you very much. thank you. bankruptcy filings by us energy producers through mid august this year have nearly matched the holdall for the whole of $28.00 team as oil prices remain under pressure this slowing oil industry sits heavily on the u.s. economy as the boom in the shale added about 10 percent of growth to u.s. economy in the last 5 years now the shale sector has just started generating cash flow but many small to mid-size shale farms are already pulling back on production targets amid weak price production and now banks have also begun trimming back credit lines for american shale producers further undercutting the industry that's been struggling to regain investor confidence for the 1st time since 2016 producer surveys expect to see declines at least 15 producers have already filed for
bankruptcy this year and market values across the industry have plunged an average of 21 percent many producers are now struggling under huge debt loads accumulated earlier but other issues have also played industry as well many have turned to lower quality sites and others have begin drilling wells too close together resulting in a loss of overall performance industry surveys show that a handful of large companies are on the edge of bankruptcy as there is about $15000000000.00 of outstanding debt at risk and investors remain dubious that further opec cuts can boost prices with more on the state of welcome david mckelvey nice c.e.o. of mcilvaine a financial group now david when we talk about oil need generally talk more broadly about the whole sector but let's be very specific here who is feeling the most pain along the supply chain and why is it the drillers the exploration refineries production pipelines or the offshore guys who's the most lever and who's the most exposed here. you service companies are dealing with the toughest times right now i think they've got the most acute pain you've got over capacity and there's just not
the jobs that they are used to doing so they still have to service debt and that's a tough thing to do. taking a lot of dad in your business slows down that's why they're in the crocs they're in the midst of some tough times so a lot of these majors are trying to insulate themselves from a downturn they've expanded their wealth to refinery networks in order to control costs and sustain periods of low prices but it's kind of a catch $22.00 is it not that in expanding they've also kind of over leveraged and now carry huge amounts of debt so how can their vertical integration help them and can they whether 2020. we're not very concerned with the majors and obviously you have in absolute terms large amounts of debt but if you look at their capitalization to debt ratios they're actually right in line with other non oil type companies so i think again you've got to go down the food chain to see where the real weakness is and where the likelihood of greater consolidation would be and also where you might see further bankruptcies so the pressure is not on the majors
and you can see this across the share prices if you're looking at a a c. drill or a neighbors or a trans ocean these are places where the pressure has been more acute so back to the earlier question yes it's the service companies it's also your offshore guys it is also some of your drillers as well one of the e.m.p. guys a lot of these oil plays haven't really materialized the way that we expected in the projections a lot of them have claimed that the drilling sites have not resulted in what they expected to do again and a lot of them have been over leverage and over expanded in terms of just gaining market share and in the permian basin but those players have not really materialized at all because these shell plays have been underwhelming to say the least. 2018 was sort of rampant speculation in the permian basin that's where you saw kind of a and overbidding of a lot of asset prices and already you're seeing you know groups like chevron this last week writing off $1011000000000.00 and we think we'll see more of that as 2020 . fold so yeah i think the overpaying in the permian is now hurting
some of your oil companies but where you do see. i think positive mergers and acquisitions you're seeing things in alaska you're seeing things in in the eagle ford you're seeing things much more broadly distributed in 2019 the core on track for between 85100000000000 dollars and mergers and acquisitions so the real i guess i think where you overpaid significantly was where there was a lot of speculative energy in the permian last year in the year before so as he has said that we can probably expect to see a way of america among the smaller players right now in the permian basin and some of the other shale regions so who are some of the right acquisition targets and who's portfolio and what they fit into. it's a good question it's a good question i think time will tell as we get into 2020 coming back to what you're saying in terms of financing i think one of the key things that is happening here at the end of the year are based loan redetermination and as you see these
loan rates redetermined that's where you're seeing a lot of pressure is is folks who thought they had x. amount of production it's not going to be that much production is not as strong as as you mentioned kristie and so that's where all of a sudden we're beginning to see a squeeze and where the opportunity lies on the acquisition side is really where the pressure is born as we come through the 4th quarter now the irony is not only do we have a tightening in bank credit but we also have the loose in central bank credit probably in well not quite world history but if you got to go back to the 4th quarter of 2007 to see the amount of free flow of capital and cheapness of capital in the capital markets and that's particularly relevant to the oil market because you're finding hedge funds and private equity funds find workarounds it's no longer liquidity from the banking industry but they're even finding access to liquidity in the repo market if you can believe that yeah let's shift just a little bit sticking with commodities but over to gold it's obviously done
a very well this year but it really cannot hold a torch to palladium the best pool for me in precious metal on. $29000.00 that's up more than 40 percent this year primarily use for automobile catalytic converters right and if so is that what's behind the rally why is it doing so well in $21.00 thing. then i think you're looking at spec that have mania i mean it's a little bit like looking at nikkei stocks 2530 years ago or even bitcoin just a few years ago did it justify those high levels maybe in the fullness of time will see that it did but at the fundamentals driving the market don't support these levels you're looking at speculative mania in part because you had a significant curtailment of auto production so whether it's china the largest market in the world or in europe in the u.s. we see the same kind of declining trends in terms of auto sales so how do you get to 1900 to get to 2000 you get that you get there on a speculative manic basis so that's what i think you see there unjustifiable above about 13501400 it's just momentum at this point how to traders miss it if you care
about fundamentals you would have missed it because this is nothing but momentum so you're better bet in terms of value at this point gold silver as you mentioned 2015 percent 10 percent in the case of silver these are much better values on a relative an absolute basis as well it's not like it's something that with an emerging technology catalytic converters it's like are they even going to exist in 20 years they did not call me about any financial thanks so much for your insight. thank you ben thank you christie. well billboard has announced a major change to the way a rank album charts that it's really going to completely shift the music industry that's because billboard will now include a you tube streams in its billboard $200.00 album charts starting early next year and it's not just you tube that's going to be included here billboard will also include apple spotify title and the evo billboard charts of historically been seen as a barometer of success within the music industry you know that we should mention that
since 2013 video streams have counted toward billboard song specific charts but now again will count toward the billboard 200 so it's probably a good thing for a lot of artists but i'm not sure it necessarily helps in terms of independent artists which kind of you tube and spotify and some of these emerging you know break away from the music industry technology should have taken us there and they just kind of become a regurgitation of mainstream too and i think a lot of this comes into the fact that music video production quality has gotten a lot better now so it becomes a lot more difficult for these independent songwriters an artist to be able to match something that's professionally put together by one hundreds of thousands of people be seen in the winter song now a music video can talk about low low in video very successful that's it for this time you can catch a boom bust on directv channel 321 dish network channel 284 streaming 247 on pluto t.v. it is the free t.v. ad channel to 79. head of that you. are the next time.
in the troubled 19 seventies a group of killers rampage 3 cups of mills an island that was corded loyalists attacks particularly callously population tens of solutions were forced to flee their homes and what was striking to put these attacks was that the or you see the police. actually took part in the attacks so instead of presenting they were active participants in the burning of coal streets in belfast at the take more than a 100 innocent civilians were unloaded as the you can see in years and we found out more i was surprised about the extent. to which the pollution was involved in some of those cases the killers would later be named goodwin and we're getting i think it went to the very very top i think it is.
the water where politicians knew. and gave the go ahead. all of us will hopes it has been absolutely true a baby but says about a view that appears even in death and dying babies even if you've never heard or seen love to you will love if you're tickles by your parents. and then we learn how to use this in a more complex way i'm one of the things that we learn is to how to join in with love to contagiously to love somebody else loves even if you don't know why they're laughing. at her her. problem not theirs exactly.
the headlines this hour with us high sets of photon impeaching president donald trump on wednesday some are warning that the whole process could actually backfire on the democrats and cost. in 2020. parents in the u.k. are angry after school changes the words in traditional christmas to be more inclusive we get reaction. and they want a true movement reference as well as jesus being king and jesus being savior if we don't have those things what are we celebrate so if we want to have. a religious education that includes all strains of all walks of life. and germany brands washington's to see.
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