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tv   Boom Bust  RT  July 30, 2020 8:30pm-9:00pm EDT

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many countries. this is boom bust the one business show you can't afford to miss there montevideo going to washington coming up the world's largest economy post its worst quarter on record well that's what this does to the hopes of that coverage in the u.s. and around the globe on the trouble coming drawing out the makers of production claims to be slashed after 865 percent drop in revenue we have a lot to get to to let's get started. on thursday the u.s. commerce department announced that the united states economy g.d.p. plunged 32.9 percent on an annual basis in the april through june quarter this is
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its worst 2nd quarter period on record for the previous worst quarter contraction with a 10 percent drop during the eisenhower administration in 1958 but these records don't date back to the great depression while hopes one day old on that v. shaped recovery is consumer spending which actually accounts for about 70 percent of economic activity it brought down the g.d.p. on wednesday the federal reserve chairman powell warned of the lasting damage to the economy of this expectation. even with the improve economic news in may and june overall activity remains well below its level before the pandemic and the contract contraction in real g.d.p. in the 2nd quarter will likely be the largest on record. now this comes as republicans and democrats are working on the one trillion dollar relief package on a looming friday deadline but it appears lawmakers are far from an agreement and they continue to clash during the stalled negotiations. 20 team boeing has had one
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disaster after another well now with the global pandemic going to its 8th month here in the u.s. what is about to go on life support that joins me now fair and that we know boeing has not been losing a lot of money each quarter this dates back ever since $20.00 how much are they losing now so it is quite a doozy sara we're talking $2400000000.00 in just the last 3 months alone not only because of coven $1000.00 but also from the fall of it's $737.00 max aircraft but they're actually when it comes to the decision making over at boeing you have to ask yourself are they trying to fail or are they just plain ignorant i say this because the 737 max has been grounded since 21000 still doesn't have the green light from the federal aviation administration to fly yet boeing kept pumping out the 737 max is making it so that now the company has 450 jets just sitting there again they cannot fly so literally just sitting there now on boeing 2nd quarter
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conference call c.e.o. dave calhoun also gave a dire warning to employees saying quote the prolonged impact of the virus will require the company to further assess the size of our workforce basically they're cutting jobs but how many well there are signals that boeing will cut about 10 percent of its workforce and that's about $16000.00 jobs now sarah it does get worse also discussed on that conference call plans to scale back production of all of the company's commercial jets and possibly shutting down the entire assembly line now calhoun again saying quote. we will also need to evaluate the most efficient way to produce the 787 including studying in the feasibility of consolidating production in one location now let's not forget in the 1st coronavirus stimulus bill 25000000000 dollars were given to boeing and that money could only be used to continue paying their nearly $161000.00 employees till september with no job cuts or layoffs and sara again that all ends in september which is why now we are hearing talk of those job cuts now it's a lot going on for
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a voting it more than a few a few years of them just losing money and like you said the planes right that are just sitting there and many countries that order that airlines that had ordered the $737.00 max jets now canceled their orders so they're still struggling with that but fair let's talk about their biggest competitor airbus are they kind of going through the same situation here with this pandemic you know luckily for boeing or airbus is kind of saying the same thing it's just not as painful as boeing's now later than the end no later than the summer of 2021 air bus says it does have plans to cut 15000 jobs mostly in europe and they could start as soon as this next month airbus reports its commercial aircraft business activities have plummeted by close to 40 percent as the pandemic has shut borders brought mass tourism to a screeching halt and as we've seen it's brought airlines to their knees so while boeing is still continuing to suffer the only positive here is as you mentioned their biggest rival airbus is somewhat going down with them and sara sticking with airlines amid this pandemic you also have russia's aeroflot now requiring any and
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all passengers to be tested for coded 72 hours before departure this now being the standard as their flock plans to resume its flights starting this saturday well fare and this has many questioning whether or not actually can aeroflot can that do this are we going to see more do this if they're allowed we're going to see but you know the federal air transportation agency says that they sure do have the right to do this air flight also noted that it's only the p.c.r. method of the code test that will be allowed no other. including the and a tie and a body tests won't fly pun intended and that p.c.r. ties that's the one that goes all the way up your nose that's not fun you know we're going to keep our eyes on that because if the united states are 3rd doing the same us airlines are across the globe then flying will be much more restrictive exactly in that case and that was already correspondent there in france i thank you for that report. now let's turn back to those 2nd quarter numbers we just spoke about for more on this we bring in boom us co-host christine christie the markets
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are tanking today this is as the 2nd quarter numbers g.d.p. were released of that falling 32.9 percent break it down for us yes the markets tank this morning but manisha stage a rally away up ahead of major tech earnings coming up this evening so basically tech is the only sector the only thing that's basically holding up the markets right now as these numbers night of the great depression or even the great recession or any other slump in basically the past 2 centuries have ever caused such a sharp drain on the economy we saw a very sharp contraction and personal consumption exports in the tory investment in spending by local and federal governments so right now personal cars bust sumption as you spoke about has historically accounted for 2 thirds of all activity in the u.s. and that dropped heavily and in the past we also have reiterated that consumers and strong u.s. consumption that was the only thing that single handedly drove grows all of 2019 and right now that is in danger because consumption is not returning to previous
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levels as before because the pandemic has fundamentally changed the way that consumers shop and interact with one another not to mention it's also brought about a great amount of uncertainty to people so right now they're more risk adverse and more likely to save so bottom line the u.s. has dug themselves into a very deep hole that they now have to climb out of it sounds like people might be changing their viewpoint we've heard this this conversation before about the subway system away from it from luxury goods to not only that also just people who are like you said are now saving that money instead of can. booming and spending here and there on online shopping or even going to to the mall like they used to well it sounds like a good thing but then if you think about it the entire u.s. economy is driven on consumption and services that right we are a very consumer base country so it will be really interesting to see how this all plays are going forward with the millions who continue to be unemployed but i want to turn this over a little bit to overseas to germany's g.d.p. which also fell heavily it fell by 10 point one percent in the 2nd quarter how are
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we comparing this to the united states how does that look so germany is pretty much in the same boat as the u.s. as this is also the sharpest quarterly decline since g.d.p. calculations began in 1970 so this data came ahead of both france and italy figures which will be released on friday which are expected to show a similarly dismal fall and output so european stocks tumbled as much as 1.7 percent dropping to the lowest since july 1st and right now there is this complete vacuum on e.u. positive news as the ratification process for this historic recovery fund has now begun so meanwhile germany has also recorded the highest number of new cases in about 6 weeks so markets right now are very stretched and nearing their limits without any further stimulus and much stronger recovery is needed so the 3rd quarter is likely to be much more challenging as the markets could see renewed volatility as the current stimulus measures don't seem to be able to prop it up any longer well especially because all eyes right now are on europe because of their recovery that they seem to have handled the pandemic
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a little bit better than the united states at least contained it for that matter but there are more restrictions being placed because of this the 2nd wave possible 2nd wave however i european tourism is really struggling because of the panic and americans right exactly and that is why it's hard to compare apples to apples but right now they do seem to be in the same boat yes there are indications that europeans there are recovering a little bit better than the u.s. but because of the 2nd wave that is now hitting asia and europe and germany now is reporting increased numbers kovan 1000 is not becoming joy. an american problem is also becoming a worldwide problem because it seems like even europe even with their stricter measures there is still growing in numbers so they seems like their containment efforts while while they have been working it's not enough on they're definitely still looking for that 2nd wave because some are tightening some of the restrictions that have been eased off obviously their culture too is changing through this pandemic but the west coast christiane thank you so much for being with us today thank you. well rhetoric from the u.s.
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and its allies point to an international effort to try to contain china will the even superpower continues to expand its presence in foreign markets well to those fearful of china the trend is pretty disturbing artie's alex the hell of it has the latest from mines in canada's ordered. to farms in america the sleeping dragon china is continuing to spread its wings and some don't like it if the free world doesn't change doesn't change governments china will surely change. the can't be a return to the past practice because they're comfortable because they're convenient currently reside he is high amongst anti china factions in canada as chinese state run shamed on gold mining company moves to buy a mine in the arctic circle some experts fear that chen dongs plans put canada at risk as the gold mine sits in a strategically important region known for resources and shipping routes richard
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fadden who is national security advisor to both prime minister trudeau and former canadian prime minister stephen harper has gone as far as to say this purchase should not go forward they are clearly adversaries and i think we have to take that into account every time they seek to buy something although the toronto based company that is selling the mine has approved the deal as with all canadian assets being sold to foreign state owned companies the federal government has the last say and could stop the transaction from happening the final outcome has not yet been determined meanwhile in the states it's farmland that is front and center data from the u.s. department of agriculture shows that foreign investors control at least 28 point $3000000.00 acres of farmland in america that's about the size of ohio and it's worth upwards of $52000000000.00 of that according to the u.s.d.a.'s economic research service chinese entities control about 191000 acres worth $1900000000.00
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chinese owned w.-h. groups smithfield the world's largest port producer owns about $150000.00 acres. although china holds just a small fraction of u.s. farmland critics say that when it comes to agriculture it is about u.s. food security and that the current estimates of foreign ownership do not reflect the reality which includes unregistered interests efforts to limit foreign ownership of american farmland are in place in a number of states hawaii iowa minnesota mississippi north dakota and oklahoma have banned it altogether as for china it prefers to take up business as usual approach and says that the u.s. has little to fear from chinese companies to you and they. should the chinese government has always required chinese companies to conduct foreign cooperation in compliance with walls and regulation it's weird some people in the u.s. to correct their mentality abandon prejudice stop using state power to suppress
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chinese companies and do more to promote china u.s. relations not the other way around that ultimately it cannot be ignored that china is a world leader and that it is an integrity part of the international community as companies from countries such as canada and the us own foreign assets so to their chinese counterparts although some of china's players are state don't china insists that like all entities operating on foreign soil their companies have to abide by the host rules for r t i'm alex my love it's. time now for a quick break but stay here because when we return a big week for the world's largest tech company after a full day facing questions on capitol hill all morning reports are due i think got a break in the number thought that.
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well the pandemic no certainly no borders and is blind to nationalities. has emerged we're told that with the we don't look like seeing the whole world beats to be. judged. coming every crisis sleaze the system. we can do better we should be. everyone is contributing to each of our own way but we also know that this crisis will not go on forever the challenges create the response has been masked so many good people are helping us. it makes us feel very proud that we're in it together.
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a dark industry comes to life in los angeles every night. dozens of women sells the bodies on the streets many of them underage. police reveal a taste of their daily challenge you're going to exploit for a child here in los angeles oh they were going to come out as a offices going undercover as 6 workers and customers to fight the trade. u.s. secretary of state mike ok ok he's on a mission he claims the world must change china or china will change us oh should we interpret this the cold war to be waged against me this is also implying force regime change china is certainly a major global competitor but is it now or in. the
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sudden and illegal takeover of a government by a small group. rather than revolutionaries all soldiers to that small group the corporations when you have a tiny group of people who have all the power you have to have some means to make sure the rest of us don't get together and take it back. these are sacrificing. places that capitalism exploited and destroyed for profit and left behind misery poverty environmental devastation and so you see things like voter suppression building more prisons you seem gerrymandering all sorts of undemocratic practices were well into through that world for well focused. question that the. it's
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definitely something for the dark it's a small. sure we. may want to get vaccinated. if you want to overcome the restrictions through every restriction 6 centimeters through then we have to have a vaccine. thursday global markets fell after the us reported its plunge in g.d.p. well this after wednesday's federal reserve meeting where fed chairman jerome powell expressed concern over economic recovery yet promise to continue to use all
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tools his disposal we are committed to using our full range of tools to support the economy in this challenging time. we have held our policy rate near 0 since mid march and have stated that we will keep it there until we are confident that the economy has weathered recent events and is on track to achieve our maximum employment and price stability goals. well this comes as wall street awaits the much anticipated big tech reports that make up nearly 5 trillion dollars in market capital well for more let's bring in founder and chief market strategist and traders dot com chris romulan and c.e.o. of pentode portfolio strategies michael pena toe gentlemen thank you for joining me today. thanks for having me michael let's start with you with the federal reserve made no changes this week after its meetings of 2 days of meetings the chairman powell also even argue that the pandemic is pushing down prices and that overall inflation is actually running well below the fed's 2 percent target we are seeing
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some prices driven up in food prices is the u.s. at risk for hyperinflation. well 1st of all and i hate to disagree with you being a you know coming against on your show but 1st of all that said i think what made 2 changes to their statement number one is they added a thinking about to their statement so they used to read it that it wasn't thinking about thinking about raising rates now they're not thinking about thinking about thinking about raising interest rates that was change number one and the other change as a 1st time i ever heard mr powell of how that the feds target is symmetrical it's 2 percent target symmetrical meaning that there is many years that it was below 2 percent on the coup or p.c.t. deflator it has to now be above 2 percent and this particular metric that measures everything except what is rising in the economy so since the core p.c. deflator has been below 2 percent we're pretty much the last 20 years with rare exceptions mr powell or whatever is running the fed now wants inflation to run
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above 2 percent for 20 years so god help us all well and do that and they're going to keep the rates at least where they are he said until the economy can and can actually recover on its own that's when essentially we practically have a vaccine tonight it's a pivotal moment that we're looking for here in the market but for the big tech companies reporting earnings much like christie said they've been holding the market up the last couple of month they have guys basically led the rally what should we expect to see. yeah well i think we're going to see a lot of big movement going after tonight's earnings and it's going to be interesting because they've obviously led the way there of the heavyweights i mean you look at the nasdaq they really carry 5 trillion dollars or 35 percent of the nasdaq value they're roughly about 17 percent of the s. p. $500.00 so when they move they move the market and of course these big guys have been driving the markets higher and you know we've seen a huge rally going into earnings the big question is what's going to happen
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tomorrow because typically we see kind of buy the rumor sell the news so they've got a huge run up you look at amazon you know. a 100 percent just since the march lows and we might see some profit taking and that's what we've seen in the past with companies when they come out with good earnings that we're all expecting and so you sell into that news so we might see some type of pullback just around the corner here now michael let's go back to the fed right that their next move is possibly to to yield the curve control explain that a little bit we know we saw this in japan they were the 1st to actually try this and they're keeping their rates around there and so far they say it's been working so it is working great in japan so you see the banking system is crumbling in europe so young turk intro you'll curse and pressure means that you want to take a long term rates the equal what are short term rates and so they're both going to be 0 that is not a recipe for a healthy banking system i should return to 'd what chris was talking about before also if you take apple microsoft and amazon those 3 tech stocks are now equal to
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25 percent of u.s. g.d.p. which is plunging at a 32.9 percent annualized rate so this is the most narrow and most expensive stock market in history you better know where to invest and how to get out of your investments when the time is right. well chris we have talked about this whole pandemic trade before right names that have benefited from the coronavirus such as health care names consumer staples and even a lot of telecommunication names but as a rally started we saw that rotation out of these names than into higher beta tech names right it seems like the pandemic trade isn't over contrasts and u.p.s. reported these huge surges what's going on there and is it still too early to rotate out. yeah it's tough to say there's a lot of mixed signals whether it's the technicals the market breath you know fewer stocks holding the market. economy just in general there's a lot of mixed signals out there but what we're going through with this pandemic is
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it's a change it's like a you know we kind of thought we were a tech world already but now the krona here really it's forcing a new wave of how we live life how we work people are going to be doing the rat race running commuting to work every day they're forced to stay at home they're they prefer staying home and so now we're seeing everyone spend money on technology they're turning bedrooms into offices services are being used so we're having this this world change in how we do things and of course is going to be big companies benefiting shipping companies obviously u.b.s. amazon is kind of the grocery store the shopping mall of the world so there's a big change and i think it could carry on quite a bit longer as this market tries to really adjust to this new way of life well a new way of life definitely we're seeing this fall to lety in the markets originally with the v. shaped recovery than a possible use shape and now we don't what we're seeing even president trump a saying a really bad day for the markets and still waiting on that tiger earnings report
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though michael let me ask you this the dollar main concourse for the worst performance and decades what the rest can we continue on course with us all to loose monetary policy for years to come. it's a very big risk let me tell you why because the fed is now forced to permanently monetize our debt our national debt is now a 130 percent of g.d.p. we're looking more and more. greece as time goes by and i say this is even worse you're raising to that debt load 4 trillion dollars in fiscal 2020 julian agenda's 20 twentieth's it's 20 to 25 percent of g.d.p. when the way that did it is now 1000 percent of our revenue we are permanently forced the manzana says that it is not going to be able to extricate itself from this problem just like it wasn't able to extricate itself out of the great recession i remind all your your audience then 2019 before anyone ever heard who on drivers if that was cutting reached reach on. so weird we're trapped in this
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endless cycle of yield repression great very very long time and debt monetization unfortunately well cut cutting rates so far there's no change to that as far as if they would go negative i know many are pushing for that but i will have to wait and see until their next meeting in september chris marmion founder and chief market strategist of the technical traders dot com and michael pentode president and founder of penta portfolio strategies thank you so much for making time for us today thank you. as kovan 1000 continues to dominate headlines day after day there's one medical story that starting to get some well deserved attention well new research shows that a sample blood test could soon be used to diagnose alzheimer's disease in fact lab tests have proven to be 98 percent accurate. it has the details of this incredible new discovery. scientists as we did as university of london have developed a way to detect all simers with a simple blood test
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a promising breakthrough that could make the diagnosis process simple affordable and widely available all simers the most common form of dementia affects more than 50000000 people worldwide and according to the world health organization that number will likely triple by 2050 apportions quite common but the lot of people we have alzheimer's disease to not get diagnosed and thereby do not get the symptomatic treatment that they should but now scientists have developed an experiment a blood test that was able to detect all simers 98 percent of the time the lead author of the study has already carried out the test on more than 1400 people enrolled in dementia studies in sweden arizona and columbia the findings published in the journal of the american medical association indicates that a blood test can detect the tell protein one of the homework signs of all simers with their opera portsmouth's so no higher power concentration on the lower. lower carb considering the blood test which was just as accurate as more invasive
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methods including m.r.i. brain scans c.t. scans and spinal taps provides a much simpler and more affordable way to diagnose whether people with cognitive problems were experiencing all simers as opposed to another type of dementia sparking new hope for patients yet the ball is then a thought that's very good instead of taking spinal fluid you can just have a simple blood test it means you can learn about the condition before it gets worse and have support and help from people so you can live a so-called normal life even so normal day but no now the researchers say that the blood test was also able to identify symptoms of alzheimer's 20 years before the patient was expected to start experiencing thinking and memory problems however they do add that more testing is needed and it could be years before this kind of test is available to the public however they do say these results are promising. morning in new york trinity jobbers r.t. . that's it for this time catch boom bust on demand on the brand new portable
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t.v.'s which is available on smartphones and tablets through google play on the apple app store by searching portable t.v. portable t.v. can also be downloaded on your new our model of smart t.v.'s as devices are simply tech it out a portable the t.v. with you next time. please. u.s. secretary of state michael j. o. is on a mission he claims the world must change china trying to change us oh should we interpret this war to be waged against me this is also implying force regime change china is certainly a major global competitor but is it now more and. fullest
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and illegal takeover of a government by a small group. so rather than revolutionaries or soldiers could that small group be cool for relations when you have a tiny group of people who have all the power you have to have some means to make sure the rest of us don't get together and take it back. these are sacrificing. places that capitalism exploited and destroyed for profit and left behind misery poverty environmental devastation and so you see things like voter suppression building more prisons you seem gerrymandering all sorts of undemocratic practices. the wealthy insist that the world the wealthy.
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the question the critical. attorney general bill barr testifies on capitol hill he claims he's impartial and independent from the president his critics say otherwise we'll get perspective from a former federal prosecutor on this addition to. the politicking on larry king our says he's independent impartial and a defender of the rule of law critics say he's behaving as a political actor serving trump's interests and not those of the people let's start there with former federal prosecutors.


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