tv Boom Bust RT October 2, 2020 12:30pm-1:01pm EDT
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yet to shape out it's just a chance to come to advocate and in gains from it because the trail. went on many find themselves worlds apart when she's to look for common ground. i. this is boom bust one business show you can't afford to miss branch of war in washington coming up just straight up thousands of airline workers hangs in the balance as congress continues to debate stimulus for the ailing industry straight ahead we dive into the struggles of the aviation sector and where their fate lives on capitol hill and later controversy continues to stir in europe as the e.u. and the united kingdom continue this bar over their divorce deal later on we're
going to break down the details behind the friction of a packed show today so let's dive right in. and 2 of the united states largest air carriers have announced the furlough of more than 32000 employees after lawmakers failed to extend a bailout for the industry ravaged by the copen 1000 pandemic that the layoffs from american and united airlines come as carriers have called for another $25000000000.00 in payroll support to save the jobs for another 6 months a provision in the last bailout which banned for a lowe's expired at midnight wednesday house speaker nancy pelosi and treasury secretary steven failed to reach a deal wednesday on more stimulus measures causing the cuts but did say they will continue discussions american chief executive doug parker did tell employees the airline would reverse the furloughs and recall workers if a deal is reached adding quote unfortunately there is no guarantee that any of these efforts will come to fruition the news comes as the u.s. labor department released its report on weekly jobless claims for the week ending
the 26th of september that there were 837000 new claims down from 873000 the week prior while continuing claims came in at just over 11700000 down from just over 12700000 the week before but considering these massive layoffs in the airline industry and news this week that do. his new laid off 28000 workers what does the future have in store well joining us are destructors jeffrey tucker author of the new book liberty or lockdown co-host christiane thank you both for joining us today christy i did want to start with you as no deal was reached was their lives have started fertile employees as we just mentioned how were they say they're prepared to reverse course if a stimulus deal is reached or what's the latest in should the airline industry get another bailout that seems to be the $25000000000.00 question here oh yeah the airline sector is one of the hardest hit sectors with losses now topping over 10000000000 dollars in just the 2nd quarter alone so demand for travel has
basically evaporated and airlines have slashed their services to match this weak demand and basically with the travel restrictions now in place the once very lucrative international routes well those have pretty much all been canceled so airlines right now are not just shutting employees through forced cuts thousands of employees have also accepted early buyouts temporary lease and also early retirement packages except for in order so it's been a very difficult time for the entire travel industry so while this has been an overall very unfortunate situation the reality is that another bailout isn't really going to make the problems go away because what will happen once this next package once money runs out once again in march and then again another 6 months and another in another 6 months so there will constantly be dependent on these bailouts to survive basically turning it into another one of these be companies that we've been talking about so even the airline executives themselves they have admitted that they don't expect demand to recover for at least another 2 years so there is
absolutely no reason to have all of this excess staff excess carious excess routes all sitting idle for 2 years adding to the costs because no one expected this pandemic to last this long that's why they got the 1st bailout package but now that we have a better picture of what the new normal looks like going forward companies are going to have to make some. difficult adjustments in order to be able to weather this out for the long haul and jeffrey i know you're not a huge fan of government intervention so i want to kind of pose that same question to you about whether these airlines should get a bailout in more importantly do you see a new stimulus package coming through before november's election. on the 2nd part i don't actually have grave doubts anything will happen it seems like washington is politically locked with everybody to scream at each other all the debate to let me i would recommend it it's just a matter wash and semester i doubt it and the the ancient thing is that the money
is real is running out right now and workers are starting to feel it on the question of airlines you know that's that's a complicated seeing a guy. by the christie tells the truth i mean that was a brilliant little so little quip i would only say that he had that problems are entirely government caused to me and a centrist international travel which is like a stunner she in that you can't go to paris and paris and come to the us whole thing is crazy and people can't travel any more but it's even within the united states there are very very complicated kind of slightly scary restrictions if you fly to the wrong side of 7 the wrong state could find yourself in a 2 week quarantine and you have to fill out all kinds of forms for contact trays scene and mask up and everything people just don't like this so they're just deciding not to travel so i really kristie i don't see any kind of recovery anytime soon unless people get sensible and figure out that we need to restart the economy
again. jeffrey vivekananda me saw another historically high number of 1st time unemployment insurance claims but the market doesn't seem to care because it's still better than 1000000 which is what we saw before other markets kind of dip a little bit later it did the day today but with all of all this unemployment how is the recovery expected to take place i mean like you said does the government just need to get out of the way in your opinion. your way yes of course that's the answer to show you the funny thing about the financial markets and the jobless claims numbers you know it's like everybody is expecting calamity and they only got catastrophe and it's like bye-bye. about the expectations. but i tell you what there is another flurry of numbers that came out this morning say vince raines and personal income not those charts blew me away they're so it's so devastating so shocking and part of the reason they're so bad is that the data collection from governments have been terrible also at the spring and early summer
and they're just now getting updated we're getting a clearer picture of the devastation and it's a bit of a shock to me to see what's happened to personal savings in this country and so people are digging deeper and deeper and deeper into into their nest eggs just to survive and i would like to see the stat data suggest i get desegregated between people who kept the jobs of people who lost their jobs but nonetheless one of the things we've seen as the employment situation is not nearly as bad in western states that largely stayed open source or some such kotor are doing well in iowa and i think arkansas is doing so there's a few states where you're starting to see this recovery take place but in the still locked down places like the north east and california it's getting worse by the day however i'll conclude with this. the budget crisis is foreseen some of these governments to rethink their locked up in all cities and even in the presence of rising cases i think we're going to still continue to see gradual opening up just
because the terror created by look at those charged today and of course the pandemic isn't going anywhere for for quite some time or at least that's the way it would appear even if a vaccine is developed for the end of the year which is unlikely it still would take a long time to roll it out kristie it looks like the summer are beginning to lose faith in the recovery story as evidence by the price action in the commodities market what are you seeing there well for traders it looks like this balanced out with promise in the 3rd and 4th quarter that's not materializing anytime soon so now with hopes for further stimulus now just diminishing day by day we're now seeing traders start to hedge their bets bets so right now we have seen disappointing growth and manufacturing data in the u.s. and i have just sent the commodity space crashing so you have crude now collapsing fact beneath the $39.00 per barrel mark and with demand completely shot i would be just spoke about with airlines not only our worldwide commercial flight demands down but car usage as well that's also slumping amid the new virus or stiction so
let's also talk about copper copper is the other industrial benchmark that we look at and that is also dropping as the recent rally was based on growth and recovery so you had a ton of speculative long that have increased steadily over the last 6 months and there they were near all time highs in terms of numbers of contracts so the prices have also been pushed up by waves of chinese buying and aided by the government fiscal stimulus and intervention but all of that came to an abrupt halt on thursday as the market then quickly digested the increased kovan 1000 cases as well as the ballooning in the tory of copper so it's been a bit of a perfect storm and the rally was shaky to begin with as we've all been saying because now the december 20. 5 percent today so no one. now bind the debts and traders have been very surprised at the severity and the violence of this downside trading. christiane jeffrey tucker of the american institute for economic research thank you both for that expert analysis as
always thank you. and the u.s. food and drug administration has expanded its investigation into an illness in astra zeneca as quote a virus vaccine study now according to a report from reuters wednesday the late stage u.s. trial has been on hold since the 6th of september when a participant in the u.k. became ill with what was believed to be a rare spinal inflammatory disorder regulators in britain brazil india and south africa have already allowed the pharma company to resume trials in their countries according to the report the f.d.a. is investigating whether similar side effects had presented in other trials put on by a team of scientists at oxford university astra zeneca is a partner in developing the potential vaccine the latest inquiry casts doubt on when the trial may be able to resume here in the united states the us government
has pledged $1200000000.00 to support the development of the vaccine and secure 300000000 doses for the country if it proves successful so with this in mind let's go ahead and take another look at the trends and spread of the virus globally with our key correspondent cited tablature so i where with their brand right now very close to 35000000 in global cases again it's very important to mention that over 75 percent of these global cases have fully recovered while over 1000000 have died in the us close to 757500000 have been infected while deaths have surpassed 212000 and now there are some positive trends for the us right now too because new cases have actually been taking slightly slower on a weekly basis for the. 3 days on wednesday there were 41984000 cases still up 11 percent compared to last week but that number has actually gone down all of this week now deaths there
were 974 reported wednesday a 16 percent decrease from the numbers that we saw last week sold out too soon to celebrate but that data is headed into the right direction brant and so are we just spoke about astra zeneca and the f.d.a. broadening their inquiry into these side effects from their back see what are some of the other companies that are facing these similar side effects in the backs and drugs so right now so these are the 3 leading pharmaceutical companies all in a phase 3 here in the u.s. now out of what point all 3 of these companies they promise a vaccine by the end of this year as the end of 2020 but modernity and pfizer now they have both just announced that a few of their trial participants experienced a mild side effect after receiving the cauldron 1000 shot so other side effect of new significance to stop the late stage trials probably not but did just announce
other vaccine won't be ready until spring of 2021 completely opposite of what the what the company said earlier which was to seek emergency authorization as soon as november 1st now the same goes for a fire hazard because even if they get past the side effects the vaccine shows and if the vaccine shows promising signs now that's still a big if the company will not have enough lake the data out to say with confidence that it's safe and effective in time to be distributed does year and like you mentioned earlier astra zeneca obviously they're remained on hold since the september 6th trial so there's obviously a huge financial gain for all of these 3 companies to be the 1st come. with kovan $1000.00 vaccine you know already we're seeing their stock prices skyrocket so you see their urgency but it appears none of them will have any kind of vaccine ready
for distribution this year brand and what are we seeing with vaccine development outside of the united states so chinese pharmaceutical companies can see no bio logic's soon evolve and soon a farm there all release are called in 1000 vaccine but for a limited use so people who have gotten out already have been the chinese military and some chinese front line workers but nothing will be distributed in mass scale until mid 2021 then we have russia that's working not just on a 1st but a 2nd coronavirus vaccine now after they announced in august that they had come up with the world's 1st vaccine that's the sputnik v. now even though medical experts did raise some concern about just how quickly russia approved the sputnik the moscow is going forward with trials and the mass distribution plan but as of right now nothing from any country or any company
that's ready for mass production in 2020 brant. r.t. correspondent saya tablature thank you for bringing us the latest and time out for a quick break but hang here because when we return tensions are on the rise between the european union and the united kingdom over a disputed divorce lawyer on the other side of the break we had a live the details of the split now as we go to break here the numbers at the close . one sunday make no sense you know blood is just flying to nationalities.
as much. 2 as commentary is listening to. we can do better we should be. everyone is contributing. but we also know that this crisis will not go on forever the challenge is crazy to respond. so many good people are helping us. it makes us feel very proud that we are in it together. and there are no dog birds or head. far behind or if you go by side.
welcome back denmark has granted the russian led nord stream to approval to operate in its waters the country's energy agency released a statement about the situation saying north stream to a.g.d. has been granted an operations permit for the north stream 2 pipelines on the damage danish continental shelf adding quote the permit has been granted on a number of conditions to ensure a safe operation of the pipelines and the natural gas pipeline is under construction and will run from russia to europe across the baltic sea and danish waters. and the e.u. has now launched a legal action against the u.k. claiming that the country did not withdraw legislation that would breach the breakfast deal which was agreed to by both sides last year issue is new legislation put forward by boris johnson's government that would override specific parts of the
withdraw agreement called the northern ireland protocol the president of the u. commission said that the e.u. had invited the u.k. to quote remove the problematic parts of their draft internal market bill by the end of september and that they have failed to do so. problematic provisions have not been removed. therefore this morning the commission has decided to send a letter notice to the u.k. government this is the 1st step in an infringement procedure. the next invites the u.k. government to send its ups and nations within a month. and besides these the commission will continue to work hard to wants a full and timely implementation of the withdrawal agreement we stand by our committee. so what does this mean for bret's it joining us now to discuss his book told that investigative journalist been sworn in hillary ford which board member
with the british american business association thank you again both for being here though i want to start with you here because i want you to lay out how this proposed legislation by boris johnson's government violates the agreement or at least from their perspective pleasure to be back brant a couple of things here 1st of all what we're referring to here is commonly known as the market bill it is passed in the house of commons the lower house but it's up for debate in the house of lords what the market bill really does is it puts back in place the unilateral right of the u.k. to be able to oversee and to judge on rules particularly with regard to trade because the issue its hand here as the quote mentioned is the northern ireland protocol the northern ireland protocol overseas trade between northern ireland a mainland britain the fear in the u.k. of course is that there will be sort of some of the irish border sort of in the middle of the sea and that would be a tremendous hindrance to trade freely across the border
a couple of points though i would say brendan in terms of big picture number one these infringement proceedings sound very drastic you know the u.k. is violating international law while the e.u. does this often in fact last year there were 800 of these cases in the e.u. with other countries 800 and the proceedings take quite a long time to progress so big picture i think this is sort of a hardball play by the e.u. and of course they have to take a hard stance because quite frankly bent they can't let all the countries leave they can't make this easy for the u.k. it cannot be easy otherwise you'd have other nations like the dodge leaving you'd have next it and you'd have so what's it with the swedish leaving so they're trying to make it tough with these are for infringement and trying in for an infringement proceedings and trying to play hardball. you cases asians cannot trade. really with each other after breakfast if there is no new trade deal with the you without breaking this divorce deal provisions on this sensitive border. hillary is just
mentioning there what do you make of this is this true. well i think hillary if they get a couple of important points here which is that the e.u. is trying to make it as difficult as possible in one of those difficulties that they're putting in the way something called state aid clauses essentially saying that state aid to ireland into some of these countries has to be a part of this briggs deal which the u.k. says should not be the case they say that that's not typically part of free trade agreements to include state so there's a lot of questions about precedent but a lot of this is unprecedented i mean keep in mind this is the e.u. we're choosing the u.k. is the 1st real block of nations to step away from the e.u. and to say we're going to break off from this and we're going to renegotiate all of our trade deals the e.u. of course doesn't like that and the more that they can create a situation where they say we're going to create hardship for you and that goes into holes host of areas including in financial areas manufacturing areas every place that the e.u. can make this difficult and can make this painful they send essentially a warning flag to any other countries that might be arrogant enough in their words
to try to do the same now hillary if this breakfast deal falls apart this would have a huge impact on u.k. carmakers would it not yes it absolutely would and ben's point is absolutely right about the state aid on that goes across many different industries not so much the car industry but yes it's gone to the car industry couple things i'd like to make a point 1st of all of the o.e.c.d. in the end of august actually stated that the u.k. economy is doing better than many other countries in the u. such as spain and italy and actually have above and beyond germany so the u.k. is doing much better than expected a much better than you read about in the press with regard to the car industry yes the issue here is something called cumulation and that is that the percentage of pots that are actually assembled in the u.k. to be considered british on the rules of brac said they supposed to be over 60. sent in quotes a british of british origin what the brits arguing and the u.k. is that all the components should be even if they're assembled in the u.k.
many of those parts currently come from japan and actually many from turkey so it's estimated probably only $44.00 about 44 percent of cars made in the u.k. that stated to be british are actually originating with all their parts in the u.k. so that's going to be very problematic and there are billions of jobs that are at stake here on a lot of international cars such as land rover nissan ford of course they u.k. common you factories and they depend on those parts from other nations so the issue yes is cumulation and the issue at hand are hundreds of thousands millions of jobs it could certainly throw another wrench in the works when it comes to trade and tariffs for sure. as the u.k. prepares for this for come january there is a new report that indicates that more than 7500 finance jobs in a trillion pounds in assets have already left britain for the european union are we expecting to see more of this as we move forward as we move towards the end of this
year. i think we absolutely could it goes back to what we've been saying kind of the theme of this segment today right which is that the e.u. is doing everything in its power to make life difficult there's a statement that came out saying essentially that the e.u. is saying they are only going to work with select access for the city of london's range of financial services after a break that takes place essentially saying when they're trying to create something through a program called equivalent systems that have been set up in europe to try to say that they're only going to have certain select financial operations that could take place in london look it's again a go it goes back to this idea that they are attempting at every level to make the u.k. the pariah in europe its terms of finance in terms of manufacturing the more difficult things are in in the u.k. the more of a message it sends but i do think that as it does take place because no matter what the e.u. attempts to do. it's going to happen once that takes place i think we're going to see that it was not as bad as the e.u. would hope that it would be robust co-host bents lawn and hillary ford which of the
british american business association thank you both for breaking that down for us today. thank you. and finally a video of a giant moving robot in japan is racking up millions of views across twitter video showing a $59.00 foot tall $25.00 ton gundam in this japanese city of yokohama has pulled in more than 6000000 views over the last week mobile soup gundam is a cartoon about giant robots piloted by humans while the series debuted in japan in the seventy's going toys have since gained a cult following worldwide and there's been more cartoons and other television shows involved now the robot is the focal point of the gundam factory yokohama which was set to open in october as a tourist attraction but was delayed due to the pandemic the park set a new opening date this week of december 19th in the video you can see the gun walking as it exits storage before taking a knee and putting its arm up in the air. fascinating stuff and that's it for this
time you can get boom bust on demand on the brand new portable t.v. ads which is available on smartphones and tablets through google play in the apple app store by searching portable t.v. you can also be downloaded on a newer model smart samsung smart t.v.'s as well as broken devices or simply check it out portable t.v. we'll see you next time. please please please. please. please please.
please please. please please. financial survival. housing bubble. oh you mean there's a downside artificially low mortgage rates don't get carried away that's cause a report. first presidential debate exhibited lots of light but not much one can argue neither candidate last night there was a perfect reflection of the nation's politics put the campaign coming to an end to the debates have any meaningful impact is there such a thing as an undecided vote. probably
the heaviest shelling since the we arrived the main city in the. polling did by a nurse trying sounds like conflict between our media and. deepens our correspondent is in. russian from say jihadi militants from the middle east and north africa are being brought into the conflicts in the saga says pas the warring sides trade. also ahead on the program the white house is saying president trump is suffering and mild symptoms after he and the 1st lady test positive for coburg 9 months before. me for.