Skip to main content

tv   Boom Bust  RT  February 12, 2020 8:30am-9:00am EST

8:30 am
plus a federal judge has approved a merger between t. mobile and sprint what does it mean for the cell phone market in the united states and the amazon is suing the department of defense and now they want to depose the president of the united states to approve the bidding process summative $1000000000.00 contract was rigged details straight ahead in a live report so much to get to on this very busy day so let's get started and we begin as fed chairman drone pal gave the 1st of 2 year early updates to congress on tuesday where he was pretty upbeat about the outlook for the u.s. economy but he is concerned about the potential economic format for and fallout from the coronavirus in china 1st the good news here the u.s. economy he says is in its 11th consecutive year of expansion which is the longest on record now let's be honest here because much of that expansion is simply fake expansion made possible possible by cheap money artificially low interest rates thanks to the fed and also thanks to the fed a massive pumping of money into the economy. economic expansion is well into its
8:31 am
11th year and it is the longest on record over the 2nd half of last year economic activity increased at a moderate pace and the labor market strengthened further as the economy appeared resilient to the global headwinds that had intensified last summer. well as for the coronavirus paul says it is too soon to know how much of an effect that virus will have on the u.s. economy especially manufacturing listen. for ticker lou we are closely monitoring the emergence of the corona virus which could lead to destruction in china that spilled over to the rest of the global economy. not surprisingly powell also issued a very muted warning about the growing federal deficit largely because the fed is helping to create that deficit the u.s. deficit is expected to reach more than one trillion dollars in 2020 despite the relatively strong economy so joining us now to discuss is just the writer for the american institute for economic research who joins us here in studio jeffrey good to have you know you're going to see ben the ok so the idea here is that the fed is
8:32 am
warning of the growing federal deficit it's almost laughable right because it kind of really it is the one entity more than any other that is contributing to the deficit and the influx of cheap money into the market propped up market and it's all thanks to the fed correct well i mean that's been the hope one of the central banks from the beginning right to back federal debt to be to make the country to big to fail and thereby guarantee all the banks and the problem is that creates a moral hazard that's why all the spending restraints from the politicians don't work a constitutional amendment wouldn't fix it all the railing against high spending that is never worked and the reason is because the fed is there to bell everybody out and print all the money anybody needs the states can't get away with this you can't get away with this families can't get away with some of the. already the level of that maybe because of the central bank which is interesting too because when you hear the president say you know we will never be a socialist nation isn't that exactly what a socialist nation is where the market doesn't survive and instead the government. everyone i know your show it's
8:33 am
a funny capitalistic form of social. lots of paper and if you look at i don't know if you had chance to look at trump's new budget but you know you've got the entire media screaming about how this is cutting everything and slashing domestic spending levels and i look at the numbers this morning from the actual report itself it's not it's true that spending is going through the roof in every category of domestic discretionary the total budget everything is on an upward slope it could mean kriesel up a slope just because they change the baseline a little bit you know they call it a cut so it's all this strange mythology and strange dance that washington does where they establish a ridiculous baseline you turn it slightly this way and then everybody starts screaming about how the poor are going to be a dime in the streets because of trump cutting the budget so it's a kind of fake drama that washington's been planed really for for decades but what's appalling to me is how just over the last several days you pick up any
8:34 am
newspaper in the country headlines have been exactly the same none of it is true there are no budget cuts in this in this budget in no jeffrey i actually we're going to maybe get back to the budget yes more time here but you know one of the big portions that drone paul was actually talking about today was the coronavirus he says a little too early to tell and in speaking of media you may hear a lot about the trouble but you're here in a ton about what the coronavirus is doing to every aspect of life here and abroad right now not to say that you shouldn't because it is an import thing but he's basically saying that he's not sure where this is going we know right now that it's hurting manufacturing but how long do you think we're going to see is the impact on the economy from what is happening or are they just the impacts so far has been not the coronavirus but the government response to the coronavirus you know the quarantines of the travel restrictions and china factory workers staying home widespread panics not just in china it's actually in this country too everybody is freaking out about this. i mean maybe for good reason but i tell you the to to
8:35 am
stick up to now have to do not show this is just occasion for this level of panic if you compare those to to the flu it's $10000.00 times more likely that a china or person in china travel to the us and picking up the flu than it is for an american traveling to china to get the corona virus and it's very interesting that we talk about the economic impact of the corona virus and what we've seen record highs in the markets for the last 2. that we saw get killed for one week in the last 2 weeks we've hit 15 people just in the markets love to panic over this kind of news i mean the markets are looking for news anyway so somebody like the prospect of a pandemic in the middle ages style black death is really exciting for a couple of days but as you've seen you know the markets are recovering very quickly from it so the other thing drone powell did today see kind of defended the fed's plan that was announced in october to ease the strains on the banking system you know we need to ease the strain by purchasing treasury bills injecting liquidity through the repo operations long term even short term how much damage is
8:36 am
the fed doing to the economy we mentioned at the beginning here that we're in our 11th straight year of growth that's not because the market is this wild animal that's running free in it's growing it's completely based upon the idea that the central bank is pumping money and but even with the coronavirus you know mentioned the markets are up but they're up because the p.t.o. see the people's bank of china infused a massive injection of cheap money no more than say let's keep every do you see a great example of that in china's have you know now what's interesting about the fed in these repo operations and it's really the case that monetary economists have only recently started to come even come to terms with the fed is doing because it's so opaque and so strange and frankly so difficult to understand but starting last year in an attempt to unwind this balance sheet from 12 years ago interventions the fed has started these overnight operations in the repo market buying and selling. problem is that as they try to unwind the balance sheet is trying to put pressure
8:37 am
on treasuries so now the feds having to find other new tools. to try to try to manage the money supply and this is complex a balancing act between infusing money into the money money base while making sure that banks don't lend it out for fear of sparking hyperinflation and to try to keep interest rates low partially forward to keep the recovery going they call it the growth going and then to avoid the political trouble from the trump ministration so you get these very difficult complicated money operations that overnight linny markets that aren't even in the textbooks terry so it's actually difficult you know for even the biggest experts to understand this sometimes i doubt whether power understands it himself when you hear him testify it may be that i think how certainly understands his role which is the big picture banking that is his role to prop up the job of the fed right and to keep the markets high the job the fed is
8:38 am
not to to allow the market to do what it needs to do at some point we have to see a dip we have to see a correction of some kind but it's a go have already happened but i don't know the problem is the problem with if we see that correction and the fed tries to do anything remotely like what they attempted in 20082009 there's no more room to move and that's actually the really big worry some think is the fed's balance sheet will not tolerate it. the activities in the reposed market are a little small tools that they're using and there is a tremendous risk of really. tremendous economic disruption because they cannot do again what they did in 2009 so he better be praying that the recovery has some real aspects to it and that's going to continue for another few years and those if there's if there's a recession he will not have the power. to do what they did in the past absolutely
8:39 am
jeffrey tucker editorial director for the american institute for economic research great to have you here it's good to have him thank you. and a united states federal judge on tuesday approved the merger of wireless carriers t. mobile and sprint judge victor morocco did not believe the combination of the country's 3rd and 4th largest mobile providers created antitrust concerns in the 173 page opinion the judge said the new company would continue t. mobile's undeniably successful business strategy for the foreseeable future based on the information provided the judge also suggested sprint would have a tough time remaining independent writing the overwhelming view within sprint and in the wider industries that sprint is falling further sure farther shorter of the targets it must hit to remain relevant as a significant competitor now the new group will be forced to divest some assets which will actually go to dish network corp as they make an effort to enter the
8:40 am
competitive telecom space on the news sprint stock shot up more than 70 percent on tuesday t. mobile had modest gains of just 10 percent going over the $90.00 mark and dish stock spiked more than 10 percent before leveling out around 6 percent at the end of the day now for more for journalist market movers we're joined by t.g. watkins director of stocks and simpler trading to thank you so much for joining us today now absolutely now everyone's making money on this clearing of the way for t. mobile and spirit now what do you make of this is it a move forward and what do we need to know about these big gains that we're seeing in the market today. well if you're a sprint just kind of like the judge said you basically got thrown a life a life raft i think that they were they've been going down for quite some time they're very low cost carrier and they needed some help and then getting picked up by the mobile i think was a very very good thing for them if you happen to stock i think you should probably take your blessings here and. cash out just went up 70 percent and it had been
8:41 am
going down for well over a year so take a little your account there as far as the other stocks t. mobile they've been doing pretty well dish has been doing part pretty well they're kind of slow and steady movers and i'd say that they're reliable so no big change with them they got a little bit of a boost and i think that it was a smart move that they picked up sprint and kind of acquire those customers well let's take a look at the other 2 big carriers here verizon wireless and 800 t. do they have anything to be concerned about as the combined company mobile and sprint kind of gets going here and now dish which obviously the satellite t.v. market is disappearing so they now enter this telecom market space. i don't think there's anything that they really need to worry about you know they're big companies they've got plenty of market research and market share i think they knew that this was going to happen and i don't think this happened in a vacuum or surprise to them i think they need to be aware of what's going on and make sure that they stay on top of their game and make sure that they're good with the competition but this seems good to me the competition is great and picked up
8:42 am
a little bit of a company to probably help you know work better with these bigger companies and get a little bit more robust but i think it's all going to be fair and in the name of competition but real quick in terms of competition is it good for the consumer to go from having you know for essentially 4 choices which seems like very few to begin with to really only 3 choices for carriers. sounds like a very few to begin with but you know sprint was going to probably go under anyway so if you were with sprint they were going to bankrupt and go defunct and we're going to go after that right i think this was something that was going to have to happen anyway and so now we've got 3 instead of 4 ok the 4th was probably going to just go up in smoke anyway and you know now we have dish that we're going to remove rope so we create a 4th one plus we have other smaller regional carriers as well now i want to take a move off of the telecom space under under armor has shared concerns about shipping delays in taking a big sales hit due to the ongoing coronavirus situation now and today alone their
8:43 am
shares were trading down 20 percent what is your take on this situation and are we going to continue to see retail and clothing struggle during this corona virus outbreak. well actually under armor just had earnings and this is why for me as a trader i don't trade earnings i just never know what's going to happen form earnings can oftentimes just be occasion for a price to be wildly moved and under armor in general looking at that we look at nike we look at apple you know they're over there dealing with the coronavirus situation also and their stock hasn't really been affected now i do think that as far as corona and some of the business is slowing down shipping concerns concerns i do think it's going. maybe a thing but i don't think it was worth the drop in the under armor stock 20 percent i think that was probably just a situation you know facebook slid more than 2 percent on tuesday essentially after a pivotal research downgraded the stock from sell to hold does this have to do with the ongoing trial were it with the i.r.s. the source this week no more what i'm reading about it with this particular
8:44 am
research group wanted to downgrade it is that google came out with their chrome 80 and then apple came out there i was 13 and a lot of these are starting to deal with cookies and they're interplay from there across content or cross-platform content and i think what it's actually happening having is that their marketing their advertising is going to be having some issues so i think what they're looking at is that facebook is going to be not making as much revenue from marketing because the way these platforms talk to each other it's a little bit with the tech side it's how they structure these new platforms the new chrome stuff and i think that's really what they're they're basing their downgrade on and now we're also seeing gains of 2 percent in chip makers a.m.d. and a video. today what's pushing these to higher. well m.d.a. is just on fire anyway i mean they've been a really good stock they've been one of these underdog stocks that have been outperforming part of it is i mean obviously with their chips they've been in the 7 nanometers space and they're just really doing a good job believing with that their stock overall has been doing pretty well you
8:45 am
know as we talked earlier the stock market has kind of rebounded so it's going to just be catching some updraft with it but andy been doing great in the video is going to be doing great right where they're with even i.b.m. you know their last earnings has done pretty well so far but really a.m.d. is killing it when it comes to the 70 nanometer space and all their chips out there the 7 and 0 meter space t.j. watkins director of stocks at super trading thanks so much for your insight today thank you. time now for a quick break but hang in there because when we come back amazon is suing the department of defense and now they want to depose the president himself to prove that the bidding process on the 10 $1000000000.00 contract was rigged details straight ahead in a live report and as we go to break here are the numbers of the close.
8:46 am
24 you know bloody revolution. the demonstrations going to be relatively peaceful political protests to be increasingly violent revolution is always spontaneous. is it. in the. lead up to the fall of the ukrainian president recalls the events of $24.00. invested over $5000000000.00 to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic.
8:47 am
we know in psychology that the more people are told that they can't or shouldn't do something whether it's sexual or otherwise the more it makes them want to do it so trying new things violating taboos are some of the most common and pervasive elements in our sexual fantasies. i can't show you my face but i'm going to teach you must store in 9093 this man was sentenced to death. charged with capital murder even though he didn't have the gun didn't pull the trigger didn't intend to kill anybody imagine living in your bathroom for that week with the scent of a 23. i found out that i did serve to be. confined within 4 green walls. using. believed in this room.
8:48 am
or amazon is looking to depose president trump defense secretary marc esper and former defense secretary james mattis over a $10000000000.00 pentagon the cloud contract awarded to microsoft in court documents unsealed and filed on monday amazon's cloud computing arm known as a ws is looking to the post 7 individuals who were instrumental in the jet source selection this is a $10000000000.00 cloud computing contract that for months amazon believed that it would receive instead the contract with microsoft joining us now to break this down to small barrels contributor to america's lawyer molly good to have you here. so this request. to be a p.r. stunt right because executive privilege we've been hearing a lot about it especially during this whole impeachment process it would prevent the president from ever being compelled to testify about private conversations with the stuff correct. yes i think you're exactly right but it does seem like it's
8:49 am
something of a p.r. stunt a way to get their case out into the media even if the court doesn't necessarily side with what they're trying to do which is to halt that big base of the throw out that fit and to award the contract a new but the supreme court has consistently upheld that a president can keep certain communications confidential the burden would be on anyone in this case amazon. to want to show that information they've got to show that the president has information that's essential to what they would call the justice in this case so it's interesting this is amazon web services an arm of amazon that was seeking this contract and of course they realize the president presents unique circumstances as they put it in their order so maybe they don't really hold out much of the actually get a chance to depose him but it certainly giving him a chance to air their concerns are you of course working with america's lawyer you know precedent is key here is there actually any precedent for a military contract being denied the president of the united states being deposed or even the defense secretary for that matter. not that i know i'd have to dig
8:50 am
into that a little bit more to see if there are any specific precedents or other cases where they were in fact opposed but for the most part it seems as though in previous cases where a public official whether it's a president or another military or congressional leader was asked to be subpoenaed whether it's you know president clinton and his impeachment trial or whatever else they eventually find a way to make a compromise if you will before it gets to that point well in this point you know trump is certainly shown a history of not answering subpoenas as we've seen in his recent impeachment hearing and other cases as well but i think in this particular instance again this is amazon trying to get the facts out there i don't think that they necessarily i mean i think they would be thrilled if they got these guys deposed because. the lies they have no evidence for the claim that they're making which is that put pressure on the d o d to award the contract to microsoft when as ben said earlier clearly they were leaning towards amazon and they decided not to and amazon listing all the reasons
8:51 am
why they say there were changes made in the bid process right up until the last minute that there were some errors that they made in awarding the contract to microsoft but their real complaint is that trump pressured them and they can't prove it without deposing them so even if this is turned down which is exactly what the dia d. and of course microsoft want to see this case dismissed and they plan to file motions to that extent but even if it were to be heard before the court i think that's the point that they want to make like hey this is not fair he doesn't like our boss jeff bezos as we all know the president and i guess what they're kind of banking on also is a statement the president had made where he said that he specifically told the department of defense to go back and take a look at this but it wasn't his idea actually came from there were 4 companies right that did this it was oracle i.b.m. amazon and microsoft to bid on this thing but oracle and i.b.m. actually complained ahead of time saying that this contract $10000000000.00 over 10 years and one company doing the whole thing goes against industry standards that the industry standard for something this size would be to use multiple cloud
8:52 am
computing companies so that you're not putting everything into one cloud and that was what the president was actually saying was to take a look at was the situation it's interesting because amazon was fine with it all being one company until it wasn't their company right. exactly and i think their argument was to that point even in this particular motion where the biggest in the baddest in the best you need to give it to us we've got the infrastructure to handle this microsoft being a smaller and this particular company that was awarded a contract as again they're smaller arm of microsoft that was going to handle this contract and it is apparently a hand of contract but to your point to earlier it was i think the bidding process actually started well over a year ago in 2018 and it was in august of last year that said hey i want to hold the process i want to take a. look at it i'm hearing complaints from other businesses these are legitimate businesses they say the process is unfair and then you know again microsoft didn't necessarily say anything then until they were awarded the contract it's expected to be a pretty expedited process because they want to put this contract on hold at least
8:53 am
amazon wants it on hold they don't want microsoft start working on it until they've had a chance to have their say so everybody is great and this needs to be fast tracked and we could see a decision as soon as march the very least i think they probably want to now split the contract contributor to america's lawyer thanks so much. thank you. j.p. morgan chase is making a big move in the block chain space the nation's largest bank in terms of assets is in talks to merge its market with its mark e. block chain unit quarrel with brooklyn based startup consensus j.p. morgan has already been involved in the blocking space using the technology to run interbank information networks or in its a payment network that involves about 300 banks with a merger with consensus would really affect that business with a quorum is also expected to issue a digital currency called j.p. morgan coins which could be used to make instantaneous payments using block change and now when i always look at these things when you see j.p.
8:54 am
morgan getting involved in block chain and cryptocurrency and i know they've been in the space for actually quite a while. but when i see an institutional get involved i get excited because i think that's adding credibility folks on the block chain a critic really don't always feel that way right not necessarily because listen blog chain and big point was created to free us from banks right and from that relationship and yet when j.p. morgan gets involved it's not necessarily a good sign number one number 2 and there's this is where so disingenuous remember that jamie dimon who's the head of j.p. morgan actually criticized the coin for a long time saying that it was worthless and it was garbage and now all of a sudden you want to issue your own j.p. morgan coin so there's a hypocrisy there over 10000 today by the way just in case anybody is worth less and so i make my own and then that'll get worth something. battled office sharing startup we work announced a plan tuesday to become free cash flow positive by 2022 the company which recently named real estate better and sundeep ronnie as c.e.o.
8:55 am
have struggled after a 200-1009. 101st ever $1000000000.00 revenue quarter in 2020 and hopes to have free cash flow over $1000000000.00 by 2024. they also announce that the news of 3 members of their board of directors having stepped down we work is hoping to reach 1000 locations worldwide by 2021 an increase from their current 739 locations meanwhile the company's executive chairman marcello clere clarified reports that ousted c.e.o. adam neumann walked away from the company with more than $1000000000.00 in an interview with c. and b. c. clowery said he called the news totally false so that was totally false there and finally warner music group is planning to go public again the company announced last week the labels decision comes after warner reported their fiscal 1st quarter earnings in which they are $1250000000.00 in revenue and $122000000.00 in income
8:56 am
this was a 42 percent income increase from the previous year and now is streaming services such as spotify and apple music have become a big for the music industry's bottom line after cd sales drop in the early 2000 record sales now have gone up by an average of 7 percent annually since 2014 thanks to streaming services according to analytics from bloomberg warner music had has printed been private since access industries purchased them in 2011 for $3300000000.00 they are looking to join the likes of universal mood music group which announced a similar move in december and that is it for this time you can always catch boom bust on demand on the brand new portable t.v. app available on smartphones through google play and on the apple app store by searching portable t.v. or stream it to your t.v. by downloading the portable t.v. app on apple t.v. an online app fordable dot tv portable t.v. will be available on more devices coming up soon and as always you can hit us up at
8:57 am
youtube dot com slash boom bust r.t. the back your neck. and the united. presidential candidates debate the future of the u.s. and the world. every week. student. money. as the election cycle rages on the media highlights or even invents what they deem to be important even radical what they don't tell you is how the political center is collapsing in la today's campaign is what voters think about the status quo.
8:58 am
is your media a reflection of reality. in a world transformed. what will make you feel safe.
8:59 am
keisel ation for community. are you going the right way or are you being led. by a. what is true what is faith. in a world corrupted you need to descend. to join us in the depths. or remain in the shallows. thank. you.
9:00 am
but 5 o'clock from moscow the news is one person's reportedly been killed as a gun fights broken out between u.s. troops unarmed locals near the syrian city commission with a russian patrol arriving at the same to media correspondent tell you all about it head to rewarding occupation the palestinian president rails against donald trump's middle east peace plan at the u.n. security council saying it rips palestine apart in favor of israel. this is the state that they will give us which is like swiss cheese which of you will accept such a state. sitting on a powder keg greased.


info Stream Only

Uploaded by TV Archive on