tv Boom Bust RT July 31, 2020 8:30pm-9:01pm EDT
this is boom bust the one business show you can't afford to miss. in washington coming up extra unemployment benefits are running out for millions of americans congressional negotiations stalled for the next release will take a look at the hard hit restaurant industry to see how workers and small business owners are hoping to shut down for now limited capacity we have a lot to get to so let's get started. a looming deadline for democrats and republicans as unemployment expires admin night on friday while the senate republicans want to decrease those $600.00 per week to $200.00 but democrats that will they're not settling for less parties are clashing on several sides including liability protections for businesses and schools and funding for state and local government now this comes as applications for unemployment benefits increased for the 2nd straight week in the week ending on july 18th the number of people receiving those jobless aid well they increased by $867000.00 bringing that total
to $17000000.00 americans earlier this week senate republicans released a nearly one trillion dollar relief package of their own this was to counter the 3 trillion dollars package that the house democrats passed back in may talks are scheduled to resume through the weekend but a deal still seems pretty far from sight. commodities in crypto markets are heating up around the world as traditional equity markets take a breather from their epic rally last quarter well it seems like we are seeing a big asset rotation coming on. in the boom bust co-host christine christie chinese regulators they're rushing to curb precious metals trading in order to temper speculation how dangerous is this for or the speculative market while this could be very dangerous especially when you take into account the huge middle class population in specially in a country like china we've seen this before and there was widespread market from a preview. they which created bubbles we had the tech bubble we had i.p.o.
bubble we had a crypto bubble and this is bad because bubbles tend to burst and they leave disaster behind burning a lot of careless investors who really didn't know any better so this mad scramble this time comes as gold prices hit a record high spurred by what investors hunting for safe haven and also speculators feeling for most seeing these soaring prices and feeling like they're missing out the i.c.c. is now barring its kind from opening new training accounts for palladium platinum basically all precious metals and this is to control risk and price volatility now gold e.t.f. in china they have trimmed train turnover in recent weeks which booked a lot of regulators who are mindful of these respectively so soon after april oil speculation that drove prices to negative $37.00 per barrel and all a lot of gold buying happening going on right now is these investors are turning to to other assets but china it's now aiming to become the world's dominant block chain power through a state backed block chain infrastructure project so this has significant 1st mover
advantage but also there's a lot of risk here break it down for us you know so the 2 assets that a lot of people are turning for for safe haven is basically gold and watch and specially things like bitcoin but this is completely different than because this is called the block chain based service network or b.s. and for short it aims to become the dominant internet services provider for all of these centralized apps known as datz so there is significant risk here given the growing tensions between the u.s. and china b.s.n. is essentially a chinese state sanctioned project but the technology is actually backed and supported by u.s. companies such as and is on microsoft and google all our major cloud service providers of this p.c.n. network so you can kind of see where were going with this already like last year all of the semi's they all got whacked when the trump administration decided to not allowed sales to blacklist a chinese company and to allow for u.s. technologies within these chinese companies so now this could very much play out the same way so china is trying to grab the lead and blow. chain and dominate this
entire space fairly similar to what they do with 5 g. but that will put the b.s.n. further into the spotlight of the us trying to tech war and there is a real risk that technology does not present a national security risk but they will nonetheless be banned simply because the political reasons will christie let's turn a block chain either it's about 50 percent and it's 5 year anniversary month what's behind that rally. well this was quite a month for the entire crypto space especially for a theory and so we always like to talk about bitcoin here but it's theory in 2.0 and the entire defined network is actually what's driving this entire space and this entire rally is over the month so 1st we had the anticipation of the market towards the east $2.00 basically incentivizes users to participate in a theory as the switches to a proof of stake consensus so the p.o.'s algorithm would eventually eliminate all minors from the theory and primarily in order to optimize and also make the network work a lot faster so the final test now for
a 2.0 is expected to launch very soon in august and then we also have the explosive growth of the entire defined network on the back of yield farmy so several major defy providers they have emerged such as compound lend curve except for a and as we mentioned the total defy market is now almost $4000000000.00 in a mere 2 months so you can kind of call that a bubble as well so there is a ton of traction behind 8th right now you can also see that in the futures market as open interest climbed to a record high in july and with each 2.0 it rewards users for staking their corn so likely you'll start to see a really good stable base of hodler is and use those which will really help to stabilize prices and demand well christiane we have a little over a minute left a quick answer here but every time we see prices go up we see an increase in users jumping into crypto this time apparently is coming from russia how the landscape there yeah for years russia has blown a lot of hot and cold over crypto currency regulations all very much similar to
china actually but now we're seeing the 1st signs of another rally starting to see russian use or joining exchanges such as paxil the new users have actually increased about 350 percent over the last 12 months in russia russia is reported to be of the largest p.d.p. bitcoin trading market in the euro but a lot of training takes place on local bitcoin in peter peer with volumes about of about $32000000.00 changing hands every month. so it seems like adoption is growing at pax while manager for the russian market said quote russia has always had a model of the banking system that is dominated by a few players and the sentiment we get is that russians are increasingly looking to find alternative ways to grow their earnings and participate in the financial market looks like russia is also joining asia and the entire block in space definitely looks like they're going to continue to do so given the state of the economy co-host christi i thank you thank you. cove in $1000.00 surges and many states have stalled restaurant reopening is adding yet another
detrimental setback to the end a story that's been hit hard by the pandemic well it's resulting in billions of dollars in losses both in the u.s. and across europe parties john he takes a deeper look at where the restaurant industry goes from here no matter where you live chances are one of your favorite restaurants has probably closed because of the kobe 1000 pandemic it's hit america's restaurant industry hard and the hits keep on coming the consumer research firm n.p.v. group reported this week the u.s. restaurant industry recovery has stalled with no improvement in transaction declines in 6 weeks adding quote major restaurant chain consumer transaction declines have been between negative 11 percent and negative 14 percent versus a year ago since the 2nd week of june compared to the steady improvement in declines from the last week in april through the 2nd week in june while the reopening is in some states that started in late may in early june helped recruit some of the financial losses rollbacks in those reopening is because of covert
surges as it is history hard once again the national restaurant association estimates that in total between march and june eating and drinking sales levels were down more than $116000000000.00 from expected levels with a total shortfall of more than $145000000000.00 during the 1st 4 months of the. and demick and just as the restaurant industry started to bounce back with $47400000000.00 in sales in june compared to $30000000000.00 in april several states started shutting down once again with california and new mexico among others banning indoor dining altogether the national restaurant association reports that since the start of july 2020 roughly 100000 dining rooms have closed again because of these orders europe's restaurant industry has also taken a hit much like the u.s. restaurants from the u.k. to spain have to adhere to covert 1960 restrictions such as outdoor dining only
limited capacity and earlier closing hours in the u.k. after almost 3 months of lockdown restaurants were allowed to reopen july 4th provided they adhere to strict hygiene conditions and while some diners started coming back sales were still down almost 50 percent a week later since then the numbers have reportedly started to gradually increase in france where the hospitality and restaurant industry plays a big part in the economy officials announced this week that the french economy shrunk by 13.8 percent during the lockdown lead i still assume hotels restaurants they were hit will frontal by the price of the metal still the case today as i'm talking to you so they need more cash flow from early august on a woman who will put in place new loans guaranteed by the state oh it will go as high as 80 percent of the sales revenues of the hotels or restaurants and ask for it until now the maximum of 25 percent from now the ones will go as high as 80 percent of their revenue and she flew to fail back in the u.s.
analysts say could take years to recover from the economic hit as the nation cities and counties continue to assess the damage and try to recoup some of the costs through local state and federal funding in miami dade county officials announced a $35000000.00 relief plan for miami's hard hit hospitality industry giving grants to restaurants and employees hit by the pandemic. one small step in the long road to recovery for boom bust john hoodie. for more we're joined by new york attorney and bar owner andrew much more andrew thank you so much for being with us today you're a restaurant owner yourself in brooklyn and your business is currently closed what is that recovery looking like for you. only a bar of music here in brooklyn it's called much more hours and while the bar and restaurant business is going to come back a little bit music venues simply don't exist as they used to. well and are these
these rollbacks with all these rollbacks and reopening like like john mentioned in his package some restaurants have in the past refused to shut down some say they're not actually going to and they're making space for even more outside dining now that might change in places like new york when the weather won't allow for that does the law protect these businesses who choose to stay open. which is route we're getting so quite a bit but it's a good solution for the summer but once we start getting into the winter months it's going to be much more. ok in 20 and 19 andrew now the restaurant industry in the united states i want to show you here it employed more than 13000000 people these are restaurants that are are open and are operating right now are actually at less capacity there they have much many less employees working there some jobs may not even be coming back are these
jobs are they going to come back or are they are a lot of them gone forever many of them will not i just made it about a quarter or some restaurants probably will not reopen in new york with the high rents. are. there simply isn't enough. what for them to afford 34 months 0 revenue and still having to pay rent so you think a great deal will not come back. the paycheck protection program from the small business association they've managed to offer some help but but the state of these loans are really uncertain if further action isn't taken at the federal reserve level than the p.p.p. loans they'll seize on august 8th now this is pretty significant according to earlier predictions from the end dependent restaurant coalition around 85 percent of independent restaurants could go under by the end of the year what are the chances of these this new round of p.p.p. funding and could we see just a major wipe out of restaurants that without the systems. it will depend on the
specifics of the renewed bill but the existing paycheck per. se are to address is addressed many other treats many of them to close completely free of months and it covers payroll so if you have no period it really doesn't bother you if it's that period and even as bars and restaurants reopen but isn't the largest cost restaurants at least to new york rent is usually the largest cost and cost of goods sold so the amount of help that will drive it will be significant but i don't think will be enough to save a large number of businesses are we going to see a lot of these these small mom and pop shops restaurants essentially go out of business and more of these these big chain restaurants come in and take advantage of the cheap real estate. it is to express the country but in new york. it will be person restaurants are more appreciative a local market i think which one survived and which ones are going to come down to
if they're really with their landlords and whether their words will grant them the right to be around them to make it through this difficult period well there are plenty of restaurants here and the nation's capital too that are struggling and even chains that have been struggling like cheesecake factory much that they weren't even able to pay their rent during the pandemic that was that new york attorney and bar owner andrew much more thank you so much for making time to be with us today. now for a quick break but stay here because when we return sports leagues across the world are planned playing this is despite the pandemic but the money being made in the salvage season flux to be a fraction of what a normal year would be well discussed what are sports and now they've got a break here the numbers of the for.
54 jets and more than 1300 military personnel are headed to heal some air force base in alaska where is that to say come on i'll show you what's the reason for any type of enhanced u.s. military presence in this area rush up. what is it suddenly about the south china sea that makes it so of added 11000000000 barrels of oil. you take a look at this map who really owns what china says. it belongs to us india says no we claim that that belongs to us both of these countries have nuclear weapons capabilities there is reason for concern so that's why we're going to drill down on
the operation when you have a tiny 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 sacrifice. 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. in that world are well. chose seemed wrong. but old rules just don't go all. the way to
get to shape our disdain because the educated and indeed trained equals betrayal. when so many find themselves worlds apart. just to look for common ground. markets are mixed on the week as the world keeps its side on these new spikes we're seeing in coronavirus cases as well as 2nd quarter u.s. economic data let's start in russia where the molex it's up for the week this is despite breaking a streak of about 10 consecutive days of gains earlier the week now the ruble rebounded after facing a 2 month lows against the u.s. dollar oil prices are also propping things up as prices rose after a drop in u.s. crude inventory let's move to asian markets the shanghai composite in the green and
it actually rose on better than expected factory production in china the index gain nearly 11 percent in the month of july whose was its biggest gain since february of 2019 in hong kong the hang seng it slipped for the week eyes on economic data out of the us but there were some pretty bright spots as the tech sector saw some pretty big gains throughout the week the overall index posted back to back monthly gains for both june and july in japan the nikkei it's actually down for the week soft bank dropped nearly 4 percent on friday alone shares of fujifilm saw a bump earlier this week u.s. president donald trump well he announced the company had been awarded a $265000000.00 contract to manufacture a coronavirus are seen in india the sensex also in the red this week after the indexes the best 2 month run since 2009 having gained about 16 percent since the
end of may well next month is looking pretty rough as india faces its worst economic outlook in 40 years while the country tallies the 3rd highest number of coronavirus cases in the world it's moved to the a.s.x. in australia which is also down for the week it actually fell more than 2 percent on friday a law. and the index really felt that u.s. g.d.p. drop the all shares in south africa are actually up for the week it's posting its best month since 2017 that mining sector is really thriving now let's move to some european markets where all in the red this week in london the footsie took a hit on that u.s. g.d.p. data aviation and turns them stocks also one of those losses as of the coven 1000 cases remain on the rise the french cac and the dax also followed similar suit the dax fell by nearly 3 percent and a half or going to half percent rather on thursday alone but both indices saw some gains on the final day of trading for the month at least on those big tech well
moving across the atlantic over to brazil the evil best in the green this week the index touched its highest point in the early 4 and a half months well it's still trading about 13 percent off pretty pandemic numbers the index gained roughly 2.5 percent this is despite having the 2nd highest number of covert 1000 cases worldwide in mexico the b.m.v. is down for the week actually mexico's g.d.p. fell by 17.3 percent for the 2nd quarter compared to the prior 3 months that is felt by 18.9 percent year over year that and the g.d.p. drop in the u.s. really weighed on investor sentiment here in the united states stocks are mixed the dow ended the week in the red the s.n.p. and the nasdaq finished in the green of course that 32.9 g.d.p. contraction it's really hurting those markets but strong tiger earnings really did help prop up the markets by the end of the week although google parent company also
a bit posted their 1st revenue decline ever now finishing things out in toronto where the ts sachs actually finished up this week or oil prices fell on friday but expectations grew dimmer on a 2nd quarter g.d.p. estimate and that is a global market walk. sports teams around the world are expected to take a massive financial hit due to the coronavirus pandemic will leads like the n.b.a. and they'll be an n.h.l. they all face losses in the millions of dollars from lack of attendance retirement and revenue from broadcasters artie's america's. ham joins us to discuss regina welcome to the show thank you for having me now the n.b.a. they started playing again after almost 5 months that they took off what kind of financial issues are we looking at here so the bigger concern for them sara is it's
so exciting to see from a source of taxes that they're back to see that yes we're talking billions of dollars this is in an industry where you're just a couple $1000000.00 off you're talking almost $1200000000.00 could've been lost about $40000000.00 per team in the league had they not come back in july well the team did come back and they decide the league came back and so they are going to make use of that revenue but they're not making review from hospitality which includes by fans buying tickets selling concessions at the game broadcasters to are also having to ask for money back because when you're having a sports that's televised like the n.b.a. the league does get a percentage of the money that is spent with broadcasters so when you have to lose half or 3rd your season that money is just gone so that also will affect the salary cap and that is tied to how much really gets back there's a percentage that that affects so when you're talking the n.b.a. you're seeing millions of dollars that's also going now into a product in florida it costs $150000000.00 to put on the bubble in florida i mean
you're saying at the grand floridian so of course it's going to be a lot of money but you're going to see sports leagues like the n.b.a. they will make it through but you'll see a lot of strategic cuts that could be downsizing of personnel that could be television deals that are renewed at smaller amounts so it really could be a big issue moving forward for leagues like the one national exactly they don't have the money like the n.b.a. . we're looking like much like you said for the n.b.a. $150000000.00 to set that up isn't that much for them you know that's a drop in the bucket when you're talking about overall revenue one point $2000000000.00 and much like you mentioned a lot of the concessions here that they sell at these sporting events that's where they get their money without that and we know how much they charge in those places you know i mean you don't want to go to a game and not have gear on or buy something there i mean it really does really drive a lot of fans and demand and money when you see those those games so much like you said they're fanatics are called fans for a reason i mean we see sports returning to the united states but we saw sports
return to soccer specifically to europe a little bit ago it's well under way and are they anticipating the same kind of issues with their financial backing they are it won't be as extreme but soccer in europe functions very different than soccer here there is relegation where if you have a horrible season you may be relegated to a division 2 division 3 of soccer will take legal where this is but i see barcelona they are going to experience a significant loss in about $3040000000.00 of revenue just from fay and experiences alone throughout the league but there's nothing fans there i know the fans are not allowed to see as either which is why you see that drop and if you take a look at this graph the premier league this is their the 1st bar right there the average over 5 years their majority is made of broadcasters they have had to cut from about april till now premier league games so that revenue that they would make from broadcasters is not there anymore so premier league is actually expected to take if they had never come back at all another 1000000000 pound hit which is about $1.00 u.s. american dollars you're seeing leagues in the in england in germany in spain that
are the top leagues they will be ok but when you get down to the lower leagues likely to league 3 you're not going to have that much revenue i want to touch on one more question before we were time that other parts of the world south korea they've been playing baseball as well they've made strides to welcome fans back right they had a say in don't ask there's only about 10 percent of fans but a lot of these leagues the elegy twins samsung lions are. sponsored by l.g. and samsung so they're not hurting necessarily for advertisers but a lot of them make their money from game day experience is about $147000.00 u.s. dollars per game per league our protein is made in revenue sales in tickets well that accounts for sometimes 2 thirds of these teams budgets so the concern is if the k.b.r. did not allow fans back they would actually start taking out loans to pay salaries for their staff so the fact that they are kind of are these places a anyway i mean you get what you really have you got you know they're about they say about 1015000 people there not as big as them all the parks here but that's still a significant loss of revenue well especially for them when they need to as much as
they do but i'm sure a lot of people here across the world and in the united states are really happy to have sports back i know i know a lot of people were bored there was nothing to do and we're going to run out of content soon so the goodness 1st sports leagues that was going to have our team sports had a quarter's regina thank you for being what he said. that's it for this time you can catch boom bust on demand on the brand new portable t.v. app which is available on smartphones and tablets through google play and the apple app store by searching portable t.v. portal t.v. can also be downloaded on newer models samsung smart t.v.'s as well as roughly devices simply check out a portable dot t.v. see you next time.
we go to the. street home. begone. now why does he know it still feels trapped in this tiny little wired coach we're going to use a crate with him he will stir freaking out into the wall when it's pretty much anywhere near and thousands of breeding dogs are caged in in human conditions on puppy farm i mean 67 years you know they've been locked up in cages outside you see no protection from the weather the heat you know the courtier the rain the snow the thunder nothing they have no protection. to get you. to get through k. . across the u.s. cruel puppy mills are supported by dog shows and pet stores most of the puppies are
coming from these large scale factory farming kind of operations are being sold in stores even giant a good businesses are involved like ogling mom santa there has been a shocking amount of organized opposition to efforts to increase the standards of care for dogs bred in commercial breeding for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with jobs don't buy dog on a hottie. a dog industry comes to life in los angeles every night. dozens of women sells abilities on the streets many of them under-age. los angeles police reveal a taste of their daily challenge no if you're going to exploit our child here in los angeles there we're going to come out you see officers going undercover as 6 workers and customers to fight the 6 trade.
gap. in your back or. a low everyone let's take a look at today's. menu to see what we're serving up on the tracks u.s. attorney general william barr testifies before congress giving the media get another chance to let their audience know just how they feel about him. today and hopefully. with one m. s. n.b.c. host openly urging a congressman to trip up bar during questioning project $1619.00 many believe it's no more than revisionist history u.s. senator tom continental says he plans to introduce legislation to prevent schools receiving federal funds from including it in their curriculum so what is it project $21.00 is horace cooper will be here to explain.