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tv   Boom Bust  RT  July 3, 2020 8:30pm-9:01pm EDT

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this is the deal with you. on this edition of to discuss why he was released. in the state. this is boom bust the one business show you can't afford to miss their montecito in washington coming up the new nafta or us them took effect this week but trade tensions between the 3 countries remain plugged to run virus turn us into a capitalist society will a.t.m. usage is already down 32 percent we talk to boom bust co-hosts not have a packed show today so let's go and dive right in. we start today with global
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markets following some strong economic news we're seeing a lot of green arrows across the board but let's start in russia where the mo x is up for the week the ruble had struggled in recent weeks as oil prices fluctuated but following the constitutional reform this week the country's currency strengthened against the dollar it's looking ahead now russia's alfa bank warned that the u.s. could play sanctions on russia if the report regarding bounties on u.s. soldiers is confirmed now let's move over to asian markets where the shanghai composite is up on the week it's hitting new $52.00 week highs the composite gained 2 percent on friday alone after positive data showed increased prospects of economic recovery after the pandemic in hong kong the hang seng also up this week with 3 percent gains on thursday this is after promising news regarding a possible vaccine friday saw gains due to positive economic data and even a better than expected jobs report out of the us now some of the biggest winners this week for hong kong were. the hong kong exchanges and clearing ltd and tech
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giant 10 percent which both hit the $52.00 week highs japan's nikkei also hitting that same trend and is up the end lost 2 percent early in the week due to a global search and coated 19 cases but it clawed back those losses as positive data raised sentiment over to india where the sense that it is also up for the week as it finished with 3 straight days of gains this was pushed up by the country's largest company reliance industries but concerns are growing as india is seeing a record increase in corona virus cases in australia the a.s.x. also in the green again just under 3 percent for the week the market is reacting to hopes of some future stimulus in south africa the all sure was a roller coaster this week it actually ended up on a stronger rand even as new data did show that the economy was already contracting prior to the pandemic and let's move over to european markets we have some
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a little bit of a mix here the footsie 100 finished down for the week as concerns over coronavirus started to grow in the country starts to lift more restrict restrictions well the french cac and german dax are in the green for the week as well both fell slightly on friday over the pandemic but positive economic data really helped to maintain some of those gains and let's move across the atlantic to brazil where the evil best buy is in the green the end x. gained 31 percent in the 2nd quarter of this year but it's still down about 20 percent from year to date these are from highs seen at the end of january the b.m.v. in mexico also managed to stay positive this week after u.s. job numbers reported on thursday the mexican peso also strengthened against the dollar as oil prices saw some gains later in the week in the u.s. all 3 major indices the dow the s. and p. and the nasdaq finished up markets were closed friday for the independent state.
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today now despite new record coded 1000 cases jobs data help the indices also seeing the largest quarterly gains in decades after this huge economic losses due to the pandemic at the end of the 1st quarter finishing things our interest in tow the ts also in the green the end x. was close for a can of day on wednesday and it saw a spike on thursday economic data we've been talking about but the ts x. did take a small hit on friday over a more concerns over the coronavirus job numbers will be a huge factor and what we're seeing in markets in the coming weeks as some areas roll back their plans to reopen due to this recent spike in new cases and that is your global market walk. nafta is out and the u.s. embassy is then as president trump signature trade deal with mexico and canada is now in effect but even though all 3 countries have agreed to the deal there are
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still a number of questions about how it will be implemented and the effects they will have on major industries are free to love and clean now to break down the details rachel what can we expect from the new well the german ministration is branding this as the greatest modern trade deal and they're really amping it up and it's interesting because in a lot of ways when we look at it it is the new version of now and when we look at some of the provisions that are included in it we see that there are new protections for intellectual property and digital trade and its provisions include requirements for mexico to enforce stronger labor laws and oversight for its workers and it notably rolls back a system of arbitration that allowed companies to sue governments for unfair treatment now u.s. trade representative robert light hisor referred to this and that is expected to create tens of thousands of new jobs for americans about something we'll have to see as it goes on and there might be a little bit of an effect here on the auto industry. on that sector what's on that
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front right well the auto industry has been hit particularly hard by the coronavirus pandemic in fact they've reported a drop in cells of 30 percent just for the 2nd quarter of this year now when we look at how they're going to be affected by this new deal coming in we see that they will be required to use 75 percent of north american made parts for cars up from 62 percent under nafta then 70 percent of a car steel and aluminum parts must come from north america and a percentage of duty free imports must come from factories where workers make at least $16.00 an hour now all of these new changes are expected to cost the auto industry at least $3000000000.00 within the next 10 years and that's after they've already cut thousands of jobs within the last year that's right that's a huge sector and we know that a lot of the most country's g.d.p. comes from the auto industry because it employs so many people around the world but what about mexico and canada these partnering countries what are some of their biggest and major concerns here well of course president trump has been very
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excited about the fact that they agreed to this deal in the 1st place but that hasn't taken away all of the tensions and we've seen reports that when it comes to canada trump is considering actually re imposing a 10 percent tariff on aluminum if the country does not cut down on the exports like the trump ministration is calling for to and then when it comes to mexico u.s. lawmakers are also voicing concerns and saying that mexico is not doing enough to follow through with those labor commitments that they agreed to in the deal so there are some areas where we could see some conflict moving for a lot of gray areas here locally at least at the to this new deal took effect this week but again so many questions remain as to how they will be implemented especially due to the pandemic that's already affected several countries around the world at least every country around the world by far rachel blevins r.t. correspondent thank you for that report thank you. in the midst of the resurgence of coronavirus cases around the nation more and more people are looking to move to a cashless society well. that means that fewer people worldwide are handling cash
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and more are either using credit cards or debit cards online shopping or they're looking to use digital currency as well a.t.m. use is down 32 percent and according to these us 63 percent of people are using less cash but there could be more reason for this than just germs well joining us now to discuss our boom bust co-host spend and ben let's start with you why are we seeing fewer people using cash these days and is it in part really in fears of transmitting germs. i don't think most of it's about transmitting germs even though money is filthy when you do pick it up it's covered in germs but i don't think that's really the reason here i think the bigger reason i mean is obviously kind of common sense right when you have the economy shut down across the world fewer people would be accessing a.t.m.'s because why do you need cash where people get cash when they go into restaurants when they go to bars they go to nightclubs they use cash when they go to hotels and they use it for tipping people in this case none of those services have been operating for months now and so the shut down in
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certainly the service industry would have a big effect on that plus when people aren't shopping as much in stores and they're doing more e-commerce in order to buy their groceries and have them delivered items from amazon whatever it might be so much of the shopping right now is online not just out of convenience but because you really can't do it any other way so i think that's a lot of it i think that's what we're actually seeing when visa says you know 63 percent of people are using less cash and now using online it's because they have to at this point well in a lot of stores and restaurants a lot of places are actually doing contactless paying where they're not even taking cash right that's true no absolutely true and not only that but you have a lot of places where even if you do eat at a restaurant as you're saying you order ahead of time you don't go inside in order so you're ordering that ahead of time online and then you go in and pick it up and pay ahead as well and i'm christina the senate banking committee is looking into the possibility of now creating a digital u.s. currency as we see another country. do such as about as well and now china how
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likely is it that the u.s. will create this digital currency even in the near future. i think it's very likely because the pressure is certainly mounting for the u.s. to create the c.b.c. as its biggest competitor and the tech arms race just recently began testing its own digital currency that will be launched on we chat and so for us this means that they will fall further behind they've already lost the battle over 5 g. to china so now it's going to be digital currencies which essentially will command the future of international capital flows so right now that's the nurses' biggest concern because if china launches their digital army successfully this will result in a widespread adoption of the digital r. and b. to be used in emerging markets and international trade so countries would no longer be dependent and beholden to the dollar so a lot of this what's driving this decision right now is fall most fear of missing out and it's kind of important to note that in news commission hearings the discussions are now revolving around how rather than if the u.s.
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should put together a c.b.c. so right now there is still no active development yet for this any time soon but there certainly is a notable shift in tone which signals that this is a very real possibility especially when states like china and even corporations like telegram and facebook they're actively trying to take finance into their own hands ignoring the u.s. students hedge money as a limiting factor definitely looks like the u.s. is just about ready to join in then do these digital currencies harm some of the most vulnerable in our society i mean people without bank accounts for instance. well it certainly can look some of the people in society who do not have bank accounts are obviously affected by the digital currency or even the cashless society as i mentioned before to people who work in service industries who are reliant on tips don't necessarily get them as often when you don't have cash and cash to society so i think there are certainly some issues there but remember the crypto currencies themselves were originally designed to go around the banking system not to be part of the banking system so the whole idea behind crypto is that you have
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a digital currency that allows you to bank yourself you become your own bank without having to go 'd through these other systems when the u.s. government starts talking about doing this they're not talking about going around the banking system they're talking about doing the exact opposite of what crypto currencies are designed to be which is anonymous decentralized and peer to peer instead the u.s. government wants it to be completely centralized they don't want to be peer to peer they wanted to be still running through them or through banks to you and they still want k y c know your customer and that way there is a control of the system but i will say one other thing i do think of the u.s. moves into the space it's very likely we're going to see a collaboration between silicon valley and the u.s. government to create it i think that's what mark zuckerberg is ultimately trying to do with libor i think he wants it to become a coin that the u.s. government would use but remember the u.s. government constantly outsources right now so many issues to silicon valley i think this will end up being one of those things so what about the most vulnerable people that will that we're talking about society not just of who don't have bank accounts
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but the homeless who usually take cash from people. yeah absolutely it's a it's an enormous issue for them it's an enormous issue again for anyone who doesn't use a digital system so when you eliminate cash from the system you have to create some kind of method by which people are able to still engage in society financially and right now that doesn't exist really on the digital space unless you at least at the very least have a cell phone right christi if the u.s. does actually move to this national digital current. see how does that affect decentralized currencies such as a big point that really become true competitors to than the digital dollar. well i mean if the us does adopt the same b.b.c. which is a very real possibility right now but quantum would be more valuable than ever because it's exactly what ben said they're not even competitors this is like comparing apples to oranges because the central digital bank currency will never replace because that is not a true crypto currency it's still centrally monitored and maintained it will still
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be subject to exact same problems that currency has today they'll still be subject to inflation and they're open to manipulation by central banks and make it even easier for the central banks to either tighten or loosen the quiddity over so c.d.'s these are merely a digital version of the our currency which makes it more dangerous than ever because that means every single purchase every single action will be tracked and we just talked about the currency crisis in lebanon yesterday and if there was ever a currency crisis in the us and we ran on c.b. can you see us do you think that you'll be allowed to swap into a safety currency do you think that you can even swap to gold or yen or anything for that matter like no you'll be locked up and forced to watch the value plummet and right now state control is downright just offensive to bit quine which was created to challenge the financial system and return ownership of money back to the people beyond the reach of state so on the surface it seems like the did old daughter dollar might displace the coin simply because they're all digital but that's actually the complete opposite it will help that client popularity because
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i'll make digital currency and contact list payments mainstream forced adoption of the well but more importantly people will realise that big point is special because it's cares and uncompromising a political and waterless well thank you for clarifying and breaking that down for us because there is that confusion that it would be become some sort of a competition and we know the u.s. really is looking to move forward with with this who must co-host spend so on and kristie i thank you again for joining us. thank you. time now for a quick break but hang here because when we return our teams rick sanchez joins us to discuss global politics and then the pandemic crisis as markets point to some optimism will be back in just a moment. in american slums that are growing at propitious rates because america empire right
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because it's easy for the top to feed everything and leave nothing for everyone else america will be better off if it was not an empire so the collapse of the us dollar will be painful for a period of time but what comes on the other side will be i think a lot more amenable to nothing. you cannot be both with the yeah you like. the one guy you appear he was a may found him literally dead like this standing up. a guard appeared his girlfriend they were found in their apartment that they just. cuddled up and they
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were dead for like 3 days holding each other this wall so people who have lost their lifes early to edition yet this is from akron. not crown is better known as the myth capital of the high and it's a city where the number of drug addicts keeps growing every year. i came up when i was 14 and my whole family were drug addicts. throughout my. much of the 1990 s. and beyond and the doctors were encouraged in some cases incentivized to overprescribe. to sedate the small country why you should also hear about people all that good stuff man we gotta go get dad dad go crazy get you might you know what are you doing. and they are coming you know one after the next.
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covered 1000 cases continue to spike ahead of a holiday weekend here in the united states but this didn't stop president from gloating over the roaring a condom a falling thursday's job report the one that showed the country added nearly 5000000 jobs in june as unemployment fell to 11 point one percent but the 2 presidential candidates for the november election had 2 very different takes on what this means. like you just announced the spectacular news for american workers and american families and for a country as a whole there's not been anything like this it record setting it was just. put out there that the united states economy added almost $5000000.00 jobs. in the month of
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june shattering all expectations so this president faces going to country our economy is going to remain at risk today's report is positive news not thankful for it for real but make no mistake. we're still in the deep deep. because donald trump is so badly bungled the response to croon virus and not was basically given up on respond you know. from our we bring in rick sanchez host of the news with rick sanchez rick happy birthday thanks for being with us today. thanks and let's start with this question can president donald trump run on these record highs for the nasdaq and the 11 point one percent unemployment. you have a good point one percent can you imagine of rather the united states trying to get elected with unemployment at 11 point one percent last time a president did that it was george bush and he got trounced because that's
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look. you know the expression right it's the economy stupid it's always been used in politics it's true the economy is down people blame it on the president whether it's the president's fault or not it doesn't matter the fact of the matter is that's just the way things are set and it's really a triple whammy for this particular president because he's dealing with the coronavirus and the fact that our government has done a horrible job dealing with it whether it's his fault or not doesn't matter the economy is not in a good position despite the fact that any one day you might get good numbers and. the racial unrest that's been going on also makes people feel uneasy so look elections are won in the middle right the people who have over truck know they going to vote for drop people going to vote against no they get a vote against rob so it's who decides this election that 10 to 15 percent of americans who eventually have to say to themselves do i have trumped the tea and my comfortable with this person last go around so many people dislike hillary clinton
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that donald trump was able to win because people felt like they needed a republican in the white house it's going to be very difficult this time around in fact let me just share some numbers i just checked real clear politics which is a sample of all the polls that are done right now. and here's what i just found this is right off the presses they say was gone some drums down by 7 florida drums down by 6 michigan drums down by 8 pennsylvania drums down by 7 north carolina which trump won it's a red state trumps down by 3 arizona trumps down by 3 again republican state ohio is tied texas is tied if you can believe that these are not good numbers if the election were held right now donald trump would be trounced by a guy who doesn't have to do anything except sit in the background and hopefully get that position let me ask you this rick that last election we saw the fame up poll numbers in 2016 we thought hillary clinton had it in the not better than like
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the no no no about it no no not at all but nothing close the numbers that i just read to go don't have anything to like what hillary clinton hillary clinton a best at one point was winning by 4 or 5 points and by the way the polls were right about hillary clinton she did win the election. polls so right now 'd if you're going to ask that by the way that's a great question what are the national polls now most some there are some national polls now that have doll drop losing by 16 at best i don't know honestly up by something i mean i guess it all myself i'm a little skeptical myself i hear you i'm just from from what we saw in the past and i hear what you're saying but a lot of investors and business people who who vote for trump who are watching and keeping a close eye on the market for them doing while because you know they're making their money they're going to go out and vote for trump are they not. know they feel like biden is safe. they think the stewardship that they did not trust
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hillary clinton with. their more apt to trust joe biden with because joe biden's a caretaker he's not a revolution. should marry he's not seen as a communist he's not seen as all those things that were fairly or unfairly cast that cast on hillary clinton so if in this particular clip case when you take the economy when you take the racial unrest when you take the coronavirus and the bad handling of it and you put all that on top of donald trump it really if anything else favors the candidate the democrats are running who's a guy who by the way is you know. well he is who he is he's even but it's not my place to judge any candidates i'm just live here looking at the notice the fact of the matter is joe biden can sit in his bunker and end up doing very well because of all the things that the america that america is going through right now and that's
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all i mean those are the numbers that's a fact one bite and we know what to expect with biden well we'll wait and see how they actually are covered but speaking of the handling or mishandling or the krona virus pandemic let's take a broader perspective here we're still seeing the coronavirus cases spike a lot of states are now shutting down or halting their reopening the u.s. purchased nearly all stock of the corona virus trigram does appear this is a drug made by gilliatt right that provides useful treatment to the sickest kogan 1000 patients is this the u.s. being a protectionist what do we think. well. the answer to whatever issues come out of this cove in 1000 situation will have to do less with red as a fear which by the way has really been a very effective drug and for people who are hospitalized and in the secondary or tertiary stage of this disease it is very effective in other words not for somebody
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who just got it bright somebody who's had to be hospitalized with it it's very expensive so they're going to do very well with it the real answer here is going to be from johnson and johnson from sanofi. a french firm mcgurn a ad from astra zeneca if you've got a couple of extra bucks and you want to put it in the stock market look at those companies because those are the companies that right now have the edge when it comes to the vaccine right and one of them the french company sanofi already has tested starting in april something like 300 people in other words they've already injected people with this particular vaccine and they're making $100000000.00 doses of it hoping that it works but at the beginning of next year most likely will start seeing vaccines roll out if they roll out some time in the summer of next year so we still got a long ways to go will they work will this particular virus mutates so if it works
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it doesn't work on everybody and it may not work in the ranger and there's just a lot of uncertainty out there which is why the market is going to remain somewhat unstable for some time and a lot of uncertainty even as the that we're putting billions and billions of dollars that buying doses of these acting that we don't know whether or not will work if they're going to be at each country fend for themselves is a you have to do the u.s. have a big advantage in getting a vaccine. this is but by the way think about what you just said this is crazy the idea of the manufacturers would be producing 100000000 doses of not just one but maybe having that they don't know if it. right but they don't even know if it's going to work yeah i mean modernity i think has a plan to have. $100000000.00 now by the end of the year or something like that while they're still testing the vaccine i mean that's i mean that's like manufacturing a $100000.00 cars without knowing if the tires work or if they run i mean it's
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crazy but i'll tell you what is interesting look at this graphic look at this graphic that we've put together to show you what's going on right now in the united states. regard to your question about how we're being affected. look at the united states there which is the yellow line so that my team goes up then it starts to flatten but it never really goes down and now it's going straight up right look at the other countries they were able to bring it up and then they were able to bring it down the fact of the matter is because we have failed to deal with cold 19 and maybe the worst country to deal with this right now it's a bad place for the united states and the world is seeing it that way which is why americans are being banned from going to europe right if you believe the other way around where the how he's behaving or where the when the banning placing the bans on other countries rick sanchez thank you so much for your time today we're out of time my friend have a happy birthday and a safe holiday weekend. that's it for this time we'll see you next time.
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the world is driven by a dream shaped. thinks . we dare to ask. you to level at least they should have occupied territory is evil under international law but this is exactly what israel intends to do when it comes to
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the west on this edition of the biggest goes flying israel is doing this international reaction and the state. all of club became a household name really now states and other world over. washington cease to be a city that. gender corridor compromised by what is a sure national interest people talk about gridlock in congress with years people go to the ballot. for the right salt the radicals in both bodies so will this. be a solid bipartisan centrist approach to politics both domestic and foreign. explained that's really.
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acting. let's take a look at today's menu to see what we're serving up on the press donald trump is them body men of white supremacist terrorism anything goes c.n.n. anchor brooke baldwin listen silently as her guest calls president trump a terrorist in chief and more when baldwin does respond. those are strong strong words what she says and doesn't say may surprise you and has been terminated from fox news out at fox morning anchor and rising star ed henry was abruptly fired by the network we'll tell you why did the l.a.p.d. pressure the l.a. times to fire cartoonist ted rall because of his anti police strong.


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