tv Boom Bust RT October 30, 2020 1:30pm-2:01pm EDT
a few days ago we had republican senators accusing twitter or other platforms you've got going through of anti conservative bias cut it have a say in the election. these things can't have impact it's notoriously difficult to actually establish where influence is and we do of course exist in an environment where the media environment where there is quite a diversity in a sense that people go to so impassioned in fact it is always difficult to assess in broader sense because of that because of the kind of reach and power of twitter and facebook and you shoot today yes these things can't really happen on little clout. certainly and that's why it's such a dangerous territory to have any kind of any formal sense you know that appears to be well intentioned and sort of misinformation absolutely obliterate our cap dangerous to go out piers as always thank you for your time in speaking to piers robinson independent research your life on the program thank you. if you feel like
delving deeper into any of those stories i'd suggest a good place to start is r.t. dot com you can't add always being out there to help you ease into the weekend by for no. one else seems wrong but we'll just don't have all. the world yet to see how this day comes to cancel. and in again because the trail. went on many find themselves worlds apart we choose to look for common ground.
i. this is boom bust the one business show you can't afford to miss for in washington coming up with less than a week until the united states election g.d.p. that it is out in the nation of the seen its fastest growth ever amid the copen $1000.00 crisis but the economy is still far from a full recovery straight ahead we break down the spike in growth and the economic state of the nation plus big tech is back under fire as some of the most powerful people in this sector face down congress later on and we bring you up to speed on the meetings and what regulation we could see moving forward with a packed show today so let's dive right in. and we lead the program with the latest economic data out of the united states the u.s. economy grew at a record 33 point one percent annual rate for the 3rd quarter of this year
increasing 7.4 percent over the 2nd quarter now according to data from the commerce department reported thursday that the gains however were not enough to recoup the massive decline in the 1st half of this year the economic expansion for july through september comes after a 31.4 percent contraction for the prior quarter meanwhile weekly jobless claims fell to the lowest level of the copen $1000.00 pandemic the labor department reported thursday weekly jobless claims came in at just over 7 750004 the week ending the 20 for the back tobar down 40000 from the week prior now this was the lowest numbers seen since mid march continuing claims or those receiving benefits for at least 2 weeks dropped by more than 700007 point 75000000 now it slightly charge that number is the latest wave of coping 1000 cases in the u.s. is raising alarms about the recovery so let's go ahead and get some act. analysis from boom bust co-host christiane c.e.o.
of pimco portfolio strategies michael plant thank you both for being here michael i want to start with you today government debt the government that on thursday showed a record setting rebound in economic output as we just said growing at its fastest 3 months avar but this is quite misleading as unemployment is still pretty high and demand is being depressed so how should we interpret this data point at this time when the unemployment rate is still 8 percent. skyrockets up about this state a look i'm not a republican i'm not a democrat i'm a libertarian so i'm going to give you the honest truth if an economy crashes could you shut it down in the 2nd quarter and then you open everything up in the 3rd quarter guess what you know we're big short rebound where the sharpest rebounds in fact the sharpest rebound in history but you won't hear the republicans talk about how trashed the most in history during q 2 here here's the man we're still down 2.9 percent in g.d.p. year over year and there's a spike and then drinkin over 3 trillion dollars through hell it's not
the money in handing it out to people you know we haven't read trillion dollar deficit all that was modernized mindset and guess what now all street d.c. of wall street wants now they're begging for more this school debt and deficit and more helicopter money guess what rent chant prints enough money to destroy your fires sorry. christie you know we just talked about the stock market there and michael put it so eloquently but stocks worldwide have attempted to stabilize after the worst rout since june people are starting to talk about more of a w. shaped recovery rather than the v. shape we have talked about before how is market sentiment now going into the 4th quarter. i think a lot has changed in basically last few days after we've seen some very significant spikes and a virus in europe and the u.s. stock market sentiment is starting to sour and let's keep on making these very optimistic projections so for us we talked about of
a shaped recovery and then when that didn't work it turned into a new shaped recovery now it's a doubling you know so all that really depends on having it workable vaccine and a sharp bounce all of which not of which are were were mostly even close to right now so they're still too much optimism and wishful thinking at this point especially since the fact that yesterday we saw global stocks losing nearly 2 trillion dollars over fears of the 2nd wave and it addition investors are also increasingly wary of a contested us election that could also a wave of risk assets selling and liquidation so meanwhile have a lot of air asia x. is experiencing a very different story from the u.s. and europe stocks are only moderately lower this week and while it echoed concerns over the us elections it isn't partaking in any of the 2nd or 3rd wave story because it's got largely under control so as a result domestic economies in asia they look quite stable relative to the west taiwan especially which has it just best performing currency anything even recently
just marked its $200.00 strength day without local transmission on thursday meanwhile france germany and the u.s. were preparing for additional lock downs and now michael i want to talk about this because we talk about this we don't obviously you don't believe in the rebound because i don't i don't believe in the rebound but you don't the numbers don't tell the whole story because those are about what britain they're not there was a rebound why there was a rebound what is it is a design the answer is that when you but not an issue on its own it is not really a lie will rebound because it's predicated on helicopter money so we don't get a blue wave we're at least at the he said it doesn't stay a republican if it's lips a democrat then you might get some more and look up the money and you might get some more you know fiscal deficits going but until then there's 22 mil. people still collecting unemployment benefits in this country that number was 1400000 people a year ago initial claims 732000 that's way above where they were last year there were 2 this year at this time 200000 initial unemployment claims oh absolutely
eternity is not sustainable unless you continue this force of massive deficit spending all that much noise by the fed and in my opinion where i come from it's not a viable recovery you can't create that ringback and michael i hear this sentiment a lot but it's not a viable recovery that we can't continue to bring in and as you put it helicopter money so what is the solution at this point are we supposed to let the economy fail because frankly if you look at this pike overnighting case is there is a realistic possibility that we may also go back into a lockout and like you said that's what drove us about in the 2nd quarter in the 1st place so what do you see things going at that point you know listen i'm a libertarian again you know i'm sorry you know this is an imperfect world this isn't have it sometimes guess what sometimes the stock market goes 'd down and you know what sometimes recessions happen but guess what the market is beautiful it
reconciles all these imbalances it lets people that are making typewriters go out of business and then 20 percent of zombie companies in the united states don't belong there they should get a business do now very sorry people i get the wires and they're in trouble that's why we have c. units in this world ok i'm all for safety that's why do we need to pay people more money than they would if it were working games where you would that's ridiculous to me so i guess you have to live in reality soon or otherwise the currency will collapse and or the bond market will collapse that's eventually were headed and then rather not of what i really want to wait that inevitability with with all this data coming in today i want to bring in adam ash. c.e.o. of atomised trading as well to that conversation to talk a take a look at further at markets adam thank you for joining us in this in this panel as well we're just adam we're just 5 days away from elections now as we just mentioned so are we expect to see even more high into levels of volatility going into this
our best position going into the elections and how do you think markets will react i think that even if there is a contested election volatility will be less than expected markets forward looking i think in prices that in and we also have a history of events that didn't go the way we thought and what happened afterward surprised as well briggs it was supposed to be catastrophic and it was not president trump getting a left it was supposed to be a catastrophic event it was nothing so there's a contested election to last for a couple of days there might be a temporary sell off but i think if you sell on the basis of a contested election that's going to be a short lived strategy and you can get really burned on the rebound and now kristie equities are rebounding. after a couple of days of bad things sell offs as we just talked about the market is being led by big tech ahead of earnings as g.d.p. tops expectations how are earning shipping out so far. well it's like what we've
been saying since basically in march the market is kind of being driven by big tech at this point but tech and a fault with a tech in them today is really no different as alphabet apple amazon and facebook there are again between 2 and 5 percent of propping up the entire market so all 4 of these companies are slated to acquire earnings thursday after market close and so far more than 270 of the s. and p. 500 companies they reported 3rd quarter earnings and all of those 85 percent have reported better than expected however once again we've seen these very high beats disappoint as the stock then sell after the results so essentially we could interpret this as you know market fatigue that even with strong earnings there's just no more risk appetite for these names we can also interpret this as once again the bar was hard to beat with that way too low do you do use the code excuse so any beat let's just underwhelming so once again analysts looking for forward looking statements they will disappoint us management they provide a little guidance on what to expect to going forward so how do you look at how they
interpret it the market is looking increasingly squishy and there is a lot of downside from here especially for big tech names you know adam what are you seeing with this big tech awnings day here on thursday. it's crazy apple amazon google if you add them up it's a $4.00 trillion dollars market cap that's bigger than france and spain combined so these are countries at this point was so many factors going into it but again i don't mean to him that i think the theme i've been through is markets forward looking at what they say right now won't be as big a deal as what they see the future so if you think about as if you were betting on a boxing match it doesn't matter if the fire once the night it's well if i would be when you're down the road 2 years down the road and that's what they're going to be listening for so you might hear one number it's exactly what you thought the stock was a totally different direction. there's so much weighing on this somewhat uncertainty now if you look at just a couple there on what happened there i think netflix sold off an earnings but it's
coming all the way back up and it was a present day and then look at snap to death earnings so that soared up so these things could real big but we don't know which direction adam mesh kristie are and michael poto thank you all for your time today. marion. and one of the front runners in the race for a covert $1000.00 vaccine is preparing for a global launch of its potential drug biotech firm the dearness said thursday is already taking $1100000000.00 in deposits from governments awaiting an effective vaccine now the company said it has agreements in north america the middle east and other regions throughout the world that are not announced last week it had completed the role that for its $30000.00 person late stage trial company c.e.o.
also told investors thursday the 1st analysis of the efficacy of its vaccine is expected in november on the news but during a stock spike as much as 10 per cent on thursday. and as the us recorded another 80000 cases of coke at 19 on wednesday to go ahead and take another look at the trends and spread of the virus globally with r.t. correspondent sigh a tablet or so where are we thursday surrender right now more than 45000000 cases and almost 1200000 deaths have been reported worldwide from the virus and as of thursday afternoon more than 9000000 confirmed cases in the u.s. while over 233000 have died now and once again record numbers here with 81457 new cases on wednesday and cases i've also read to record levels in more than 20 states including illinois add tennessee new mexico nebraska and utah now and nor it's to code out or cases are actually up
55 percent which actually long ago the new now have that many cases they have gotten so overwhelmed their system that they're ended most of their contact tracing so that's where they're going and of course if that's wrong going up that would mean people are. covering but that's just not the case because deaths are now up 10 percent compared to last week with over 1016 deaths reported on wednesday now in fact in 25 states are where the deaths are once again increasing tennessee for example there are putting a 91 percent jump from last week a record high for the state while the number of average daily deaths in idaho rose about 77 percent and some 26 states are also dealing with a record high in patients being hospitalized now brant i want to compare this to what's happening in europe because also in countries that age out for example they
have a largely brought the virus under control but the writer is right now threatens to bring europe's health care system to the edge of collapse but i want to viewers to take a look at this graph right here so the e.u. countries and the u.k. they have already surpassed to us in new cases you know in the past week countries throughout europe including italy croatia the netherlands france and germany poland and the u.k. have all recorded their highest daily caseload since a pandemic started but 2 countries right now and that's a belgium and czech republic and that's the blue and the yellow that you see the yellow is belgium the blue being czech republic you see there have surpassed the u.s. u.k. and e.u. countries as a whole to gether now these 2 countries the czech republic had a daily record of $16000.00 new cases while belgium there were also just a rat a record of new cases at around 700000 now while medical experts there can't right
now point to anything specific associated with the job but they think population density may be a huge factor and like many other european countries both the czech republic and belgium they're working very quickly to. downspout of the virus now in addition to closing all our restaurants and bars so eating stablish month plus all entertainment events bell that also suspended all non-urgent surgeries for a month to free up hospital space for corona patients that are going and checking and i.c.u. but is it too late to avoid a deadly 2nd way we'll see that in the coming weeks around r t correspondent side savidge thank you for keeping us up to date. and time now for a quick break but hang here because when we return we bring you up to speed on the grilling of big tech leaders from capitol hill and what sort of regulation could lie ahead for the sector as we go to break here the numbers of the close.
100 makes no sense you know borders just lying to nationalities. as a. sitting. judge of. commentary this is the sentence. we can do better we should. everyone is contributing each of our own way but we also know that this crisis will not go on forever the challenges created just a response has been so many good people are helping us. it makes us feel very proud
that we are in need together. even after russia gate was debunked as a hoax this conspiracy theory lives on in fact it appears to become part parcel of our political discourse if you will post someone or an idea all you have to do is play in russia no facts necessary slurs in fact those claims now suffice. an entire village in alaska. if another country trying to wipe out an american town . we do everything in our power to protect. want of a escaping climate change poses the same threat right now alaska does seem some of the fuss just coastal erosion in the world's most about 30 feet.
35 feet of ground in just about 3 months while we were measuring. is fast and it's the river is 30 closer. than it was near or i think we're part of the earth from the cross. and welcome back c.e.o.'s of the largest tech companies in the world were grilled by congress when they had what was supposed to be a hearing about section 230 protections and instead spun into arguments over antitrust and tech censorship mr dorsey how does a coin by chinese communists that the u.s.
military is to blame for cove it remain up for 2 months without a fact check and the president's tweet about security mail in ballots get labeled instantly. and we did take action on the tweet because we saw it we saw the confusion it might encourage and we labeled it accordingly and the goal we were labeling speaking of the president's tweet yes the goal of relabeling is to provide more context to connect the dots as the people can have information so they can make decisions for themselves. and there's a lot to go over so to do so joining us now is boom bust co-host ben swan and international regulatory attorney miles edward thank you both for joining us today now bend over there you hear alphabet c.e.o.'s in our pichai talk specifically about section 230 and he had to say. let me be clear we approach 0 or without political bias stall to do otherwise would be contrary to board their business
interests and our mission which comforts us to make information accessible to every type of person no matter where they live or what they believe. of course our ability to provide access to a wide range of information so only possible because of existing legal pretty marks like section 2 go to. our guest ben the 1000000 dollar 1000000000 dollar question here is is he right you have a multi-billion dollar question and no he's equal yes he's right and no he's not right he let me break this down yes he's right that section 230 is critically important jack dorsey talked about at this hearing as well section 23 who has allowed the internet to create all of this vibrancy that it is created in because of the protections and that yes yes yes i agree 100 percent but our tech companies are violating the spirit of section $230.00 when they act as publishers and remove content that they don't like especially the in the process that they've been using which is a no matter what some says jack dorsey says or mark zuckerberg says it is very
clear that certain kinds of content by moderators and fact checkers is removed some of it for political reasons some of it because of special interest groups but it is removed not based upon any clear criteria regardless of where you find yourself there is no clarity in this process and that becomes a problem section 230 is needed but tech companies should not have a right to it simply because of the fact that they exist and miles now we know that the d.o.j. has launched its air to trust case against google that is over anti-competitive practices due to these discussions of fairness and pull it actually cloud that discussion. well yes but if you look at who's clouding the discussion here is the online source community plan by allowing some users to post their content and then discriminating against other users for on a very very subjective basis in this is been going on for
a number of years so if you even remember any truly wish democrats in the states are still trying to get through and republicans say no so what's happening in the election year or so should be. and the internet have come whether or not but it's also important to note in denver of this that under section $22.00 law was a social media platforms to remove content even though that constitutionally protected speech we allowed somewhere else so we began politics or in the foreground of this right now and will continue to do so until section 2 gets resolved now ben and mark zuckerberg are from facebook actually spoke quite a bit about the role that facebook plays in trying to create accountability and its content removal process take a listen here at facebook we publish our standards 'd and issue quarterly reports
on the content that we take down we want an independent oversight board that can overturn our decisions and we've committed to an audit of our content reports but i believe congress has a role to play too in order to give people confidence that the process is carried out in a way that balances society's deeply held values of corporately and that's why i've called for regulation. ben what do you make of that the i don't i don't agree at all look mark zuckerberg is saying something that i think is factually untrue 1st of all facebook does not have a clear process for overturning these fact checking organizations when they cancel content or remove content because i've had gone to the remove and it is not clear how that works they have actually outsourced it to these outside groups that are 3rd party groups that have very questionable funding mechanisms of their own because special interest groups fund the fact checkers that facebook is a hands everything over to but something else mark zuckerberg said which i do not think is the answer is he says congress needs to be more involved no congress does
not need to be more involved in what speech is allowed on the internet and what isn't is not allowed congress does not need to be involved in that instead what we need is clarity from these organizations as to who is a fact checker what constitutes a fact check what is the natural process for this because it doesn't make sense and just a quick example you know this whole hunter biden story which is brought a lot of this to the forefront and ted cruz was yelling that jack dorsey over the bottom line is there still to this day no clarity as to why that content was taken down and other content remains up there's no standards and you see the political nature of this so much that it's hard to to sometimes take it serious when they start throwing tweets from this person why do you allow this versus why do you allow that it becomes very hard to to suss out if you will miles is there any way that congress actually takes any action on section 230 separate from these actually trust cases that are going on. it's absolutely i mean just remember where 230 comes
from and comes from the communication decency act of 1996 much unwished was overturned by the supreme court so there's 2 options one you can go ahead you can amend that section. but what had been on september 8th street republican senators where graham black her injured you see on line freedom and view going decency act where i'm sorry diversity act so they want to have to come under versity in the name and with this says is that ok facebook and twitter you can have some of these protections but only when you restrict certain types of content and also that you have to be together and shut up they're not subject to a standard protocol that tells us how you can content and you have categorized because you now are what i've had to be true and they say otherwise i'm cherishing
the well and what is new when you really are they want you to categorize and just protecting terrorism or arms were emerging terrorism you know. the united states or so on and so forth so there's a number of different ways and made sure it usher in it is to create media and digital regulatory 'd agency that would have power or not in the legislative stands to and act rules and laws when they could do is a mom there are facebook and say ok ari do we are it's an absolutely you have to end of the mother of. course i we're out of thought i'm so we're going to have to cut you off a very regular thought. of that word and ben swan to both coasts thank you both for your time and that is it for at this time on both of us you can catch it on demand on portable thing. we find it out portable da t.v.
we'll see you next time. even after russia gate was debunked as a hoax this conspiracy theory lives on in fact it appears to become part of parcel of our political discourse if you oppose someone or an idea all you have to do is play in russia no facts necessary slurs in fact those claims for now suffice. to show it's seemed wrong all right all roads just don't all. mean you won't get to stamp out these days to come as a whole and in again because of the trail. when so many find
themselves worlds apart we choose to look for common ground. this hour's headlines stories the french interior minister tells the country to brace for more. all. fronts is a weird war with an enemy from within and from without we are not with any religion we are with islamist ideology. protests grip muslim countries over among the friends of the right to major in his previous remarks islam is a. master. under the pretext of the.