Transcripts For RT Boom Bust 20240714

Officially found that former c o 2 jane was not informed about the spying john tanner the chairman of the Audit Committee impaneled by Credit Suisse characterized their findings. The Credit Suisse youve already. Decided to initiate your position. There is no evidence to suggest that you discussed the decision with the chief executive officer any member of the executive board or the chairman. Of the group leader. And the hits keep coming for the venezuelan state as they lose yet another round in court in their waning struggle to keep their us refining and sales out lets go out of the hands of alleged creditors the u. S. Court of appeals for the 3rd circuit released an opinion on monday that lists the lifts stay in there by a while as former investors in the defunct Canadian Mining Company crystal works to move forward with efforts to collect on. The previous 14400000000. 00 judgment against going to spoil it passed award was to satisfy crystal x. s claim towards from the elected venezuelan governments nationalization of a gold mine once owned by crystal axe opponents of the current elected government who have sought sponsorship from the United States as part of ongoing regime change efforts have attempted to fulfill their claim of ownership to said go by paying 71000000. 00 of interest on said go bonds due in 2020 but theyre believed to be struggling to attempt to make the next payment of 913000000. 00 near the end of this month. In the United Kingdom Prime Minister Boris Johnson is disappointing in his latest apparent plans to resolve the u. K. s exit from the e. U. And perhaps the e. U. Custom union with the provisions of the good friday Peace Agreement for Northern Island reports on monday said that mr johnsons government was considering erecting strains of custom checkpoints a few miles away from the border between Northern Ireland and the republic of ireland the Prime Minister told the p. C. C. Radio interviewer that this is not what we are proposing at all Patrick Robinson a member of the group border communities against drugs that describe the reactions and attitudes of its neighbors regarding the apparently. Its at the regulation of the good friday agreement that the peace treaty between the you know if you go to kindergarten. Any sort of break to friction destroyed. Completely correlates to. The ongoing strike by General Motors workers represented by the u. A. W. Has cost the automaker more than 1000000000. 00 during q 3 according to estimates by j. P. Morgan j. P. Analyst Ryan Brinkman pending no 2 investors on monday saying quote g. M. C. Us production stopped immediately when the u. A. W. Walked off the job on september 16th and we asked made its canadian and mexican facilities became progressively impacted throughout the 1st week those numbers are in line with j ps initial estimate that a halt in production due to the strike would cost. The detroit based company 75000000. 00 every day nearly 50000. 00 workers represented by the new United Auto Workers union have been picketing since the start of the spat between the union and the automaker while reports last week indicated the 2 sides could be closing in on a deal nothing has been agreed to as of yet this week workers will start to feel the pain as u. A. W. Members will start to receive strike pay of up to 250. 00 per week instead of their standard paychecks since the start of the strike g. M. Stock has traded down nearly 2 points. Finance now to take a closer look at this new breed of c. E. O. s disrupting the space is that correct occurrence the analyst bends one. Give our viewers who havent been talking at this corporate car crash of a sense of we work and what this unsettled board of investors that they read on the profile that they successfully pushed to remove the supposedly visionary c. E. O. In terms of his personal quirks but also his business irregularities such as a felling the word we to the company for 6000000. 00. Yeah i think thats thats really what it comes down to look every one of these c. E. O. s whos running the kind of new Age Companies if you want to call we work a tech Company Really is that its a Real Estate Company but you know i think we need every you look at these c. E. O. s and theyre young and theyre Visionary People dont really have too much of a problem with that they are some strange characters and we can talk about that a few minutes but i think the thing that really did add a new minute is the fact that quite candidly the fact that he created essentially an l. L. C. Which is what we company was as an Umbrella Company and then he licensed to we work the right to use the word we for 6000000. 00 as you just said i mean that kind of business practice it works when youre not an i. P. O. You can do that stuff because you can get around tax law and theres ways to to make money off of that but when you decide you want to enter the realm of an i. A. P. O. And have an initial Public Offering you want to open up your books to everyone else when the rest of the world looks at it they just seem like a big scam or oh youre shifty money from over here to over here youre personally benefiting from it and why would i as an investor want to put my money into that kind of a system so i think that ultimately is what did it meant and bend the comparison that cries out here is perhaps Travis Kalanick of goober boob are obviously in there they made it there but not without major drama what are the parallels between this we were case in case and what does this apparent repeat of this cycle suggest about the cutting edge accomplice culture in 2019. Well i think theres some big differences between what happened with travis and whats happening with adam and largely because again look travis was also a very visionary person theres no question about it he still is and since hes left it where he has started up a venture fund where hes still d investing in 2 Big Idea Companies he says profits and for profit and Nonprofit Companies but again the difference here is you had in travis kind of this reputation of being a bro right he had this reputation of somebody who was very kind of loose with the way he talked to people the Sexual Harassment within his company was that he was going to korean Escort Services on the company dime so you have all these these personal issues that he was dealing with during the i. P. O. And i think thats why the i. P. O. Ultimately was successful because one persons personal issues is one thing but is the companys solid is it able to survive thats why you brought it obviously it is a Solid Company we work is not necessarily a Solid Company because as we open up those books at newman aside if you take a look at what we work is doing theyre not making money the easy almost appears as if they have an unsustainable Business Model in terms of of the amount of money theyre paying in rent the fact that for every dollar theyre bringing in theyre losing 2. 00 and so a lot of investors also look at that and said well we dont really have a lot of confidence that necessarily the companys going to survive because if we had a recession already on the hook for long term leases that we cant turn around and sell for short term so thats i think the concern there so its different in terms of that but in terms of adam and travis you have 2 characters and they really are characters who are extremely eccentric in very different ways and whether or not the public can trust them or not i think it comes down to investors say i dont want to trust that guy with my money kind of got booted before they even when i pm one thing when invited to r. T. So we also have to manage in. Before we go perhaps the architect of this corporate character and. He famously made up a farm south of the f. C. C. With a suspected pot related tweet about a possible i. P. O. And then unsettled investors by smoking marijuana on camera in a podcast and so this isnt exactly a boys club lets also mention Elizabeth Holmes and her fantastic claims about blood test so it seems that there is a link between these fantastical business aspiration sending humans to mars or revolutionizing medicines with a blood test so what are all these people what do you think of the behavior of all of these eccentric. Characters will look i think when it comes to if you are a person who is so visionary that you can look at the world as it is and you can see Something Different it takes a visionary person to be able to do that you love must know question is that person no question that that travis was that person as well because i was looking at the world and say theres a different better way to do this and he was right about that steve jobs is one of those people visionary person who looked at the world and saw a different way doesnt mean theyre all good people it doesnt mean that you necessarily want to have a personal relationship with them but theyre brilliant people and the line between being a genius and being insane is pretty thin but i think whats important for people to remember here is that just because someone is a visionary and has great vision does not necessarily mean that theyre able to run a successful business and thats what were seeing with a lot of these inflated i. P. O. s is that its a great idea and it does well but maybe the person who has that visionary idea is not the same one to carry it through you know the line between genius and insanity worry you find it bends to one investigative journalist and cryptocurrency analyst thanks so much for your insight. This time for a quick break but hang here because while we were tank fresh off of an ongoing legal battle over Libra Facebook is back in the hot seat courtesy of the audio file their plans for antitrust Legislation International regulatory edwards is on hand to give us a legal view on what could be in store for a tech giant as. You got to break here the numbers that the. Legal. Sole reposed scandal is ongoing the whole negative Interest Rates are the same is that we work better in the bond market these things are happening or experiencing a breakdown of markets all over the world so what we have we dodged one bullet call the wed work you know were getting. From financial bad guys shooting at us with impunity. By north and so many people because they cant beat him. That even such a bad puppy is sending. Im not kill anybody and. Im here to find the next guy. To feed the dog she was. Already a c. E. O. Say is a deflection what is happening. That is going to be the top of many answer. About. You know on the bottom theres a bonus ritualized beach who cannot hold. Onto a new person and later today what did. You then go to mark you joined you. Would hope that you should. Put themselves on the line. To get accepted or rejected. So when you want to be present and should. Want. To write. This is what. Reasonable people. Are interested in the water. And then more news regarding detroits big 3 Ford Motor Company has agreed to sell 51 percent of their India Business to one of the countrys biggest auto manufacturers Mahindra Ford said the sale as part of a 2 175000000. 00 joint deal between the 2 and is intended to develop market and distribute ford branded autos in india as well as ford and mahindra branded vehicles in emerging markets around the world ford added that they will transfer the majority of their operations to the combined venture although ford will maintain an engine plant inside iran as well as the Global Business Services Unit for credit and Ford Smart Mobility the draw. Venture between the 2 companies is expected to be fully operational sometime in 2020 must act thats all we manage by mahindra leadership will be made up of representatives from both company over the last few years ford has entered into partnerships with other Auto Companies and the effort to break into more markets on the news for stock was down more than one percent today. Regulators policymakers and owners all continue to mobilize in the quickly developing fight over how to regulate the compelling contemporary tech based economic sectors and facebook is once again the face of this big tech big tech in this fight now a leak of 2 hours of audio from an internal corporate meeting at the dominant social media site is allowing the rear view of the c. E. O. And founder Mark Zuckerberg xnews and plans on how to push back on moves to curb his corporations economic and interrelated political power at the center of the odd link to audio published by popular tech news site the verge is mr zucker briggs response to proposals from president ial candidate and senator warner Elizabeth Warren to break up big tech like the swarm of 6 of the right answers afraid of the media you know i mean she is a lobbyist for the but i would say we will have a legal challenge in our that we will win the legal so to do it. So basically. This is a hillside for us made up of a major city and our own government and the show you want to know when youre. We care about what to work with our government to do. But i would love to do today some of the from some of the really good bye and here to give us his expert perspective on this and so many other big regulatory issues affecting the Global Economy were glad to welcome back International Regulatory attorney miles edwards now miles. Frames the idea of breaking up Big Companies here in this section of the recording as sort of the push to regulate as a force opposite to what he calls the rule of law i. E. Facebook continuing to do whatever it wants to do whats your take on his basic framing of the regulatory and Public Interest issues here. Well i think in some ways hes absolutely correct because at least in the United States theres really only a few mechanisms in place in which you could break up an entity like facebook ive spoken before on the show about is it a monopoly and so they would have to prove that they were extraordinarily competitive in their nature they colluded with others and they basically shut out all other social media type platforms its absolutely surprising to me that at least here in the United States an entity is largest facebook is really not under any regulations at all and even though mr zucker berg has been in front of congress on more than one occasion we dont have a cohesive way to regulate and many of the proposed legislation in congress has never really gotten that far to do it so i think that if you were to ask me the dynamic and the favor is absolutely for facebook and against war in the United States some mysteries that cover the size of this media regarding senator warren and the rest of our plans that and she got to like a president that i would bet that we would have a legal challenge and i bet that we will win so you would bet would you bet against facebook and thats an area. Well i think i would bet for facebook because ive never seen warrens plan for life after facebook and so theres really only 2 options warrant has one is to create this Regulatory Environment where they are going to be regulated like any other type of. Entity out there here in the United States or 2 like we saw in their early 1980 s. Like with a t. And t. And bell is to break it up and so both scenarios face a lot of challenges i hear a lot of rhetoric from senator warner but im not seeing a cohesive plan that would regulated or legislated or maybe even decouple the advertising component from the social media component so i guess im at a loss d because i havent seen anything propose that i would be that i would consider to be viable and interesting and also checking in on one of the biggest recent regulatory scandals in the u. S. There is the abuse and addiction Opioid Crisis here in the United States the Inspector General the internal watchdog at the Drug Enforcement administration has sanctioned or has criticized the dea for allowing the limit on opioid production to rise to meet the dramatically growing demand after x. Oxycontin was to unleashed on the market by f. D. A. Regulators and this is something many people may not know that a fundamental factor in this crisis was the da actually raising the limit on how many of these legal corporate opioids could be legally manufactured tell us about the i. G. Spawning and what are the implications here for the ongoing lawsuits regarding opioids. Absolutely so oxy cotton like many other prescription painkillers in our cottage are considered controlled substances and as such the regulation of and the enforcement of their abuse falls within the so the da had a situation whereby they could control the production of oxy cotton they chose not to in fact it is the exact opposite an increase of production some of that was based upon lobbying and some of them was based on the compelling interest of people who were suffering from certain illnesses needed pain medication and so what happened is that. The market to be flooded with oxy but one thing that people dont really recognize is that its not necessarily your abuse problem as much as it is a prescription problem and the fact that the da only recently started to look at doctors who are overprescribing these medications and what they should have done when they increased the production or allowed to increase the production of oxy cotton is also to take a look at those doctors or those institutions that were prescribing oxycontin heavily and start to look at what their protocols were in place as far as how they would allow these drugs should be prescribed they failed to do that so it was really the worst Case Scenario as far as litigation is concerned we have seen litigation against the manufacture of oxy cotton and we may also see some litigation against those institutions that perhaps overprescribed it but the da was certainly complicit to a degree. In the opium oil crisis itself right and in a previous career i was very shocked to discover that at the core of this is the essential he says you can make a certain amount of these drugs and its not as if we had a sudden epidemic of painful cancer cases. In this country that necessitated this dramatic expansion. As opposed to their regulations of illicit drugs as opposed to legal corporate narcotics they always say with regard to say marijuana cocaine that if there is more of it more people will use it they made the opposite argument in this case. Yeah correct and what they should have done is again look at who is prescribe the its a prescription epidemic and also to drill down deep in speak to these docs and then to see if there was alternative ways to alleviate the pain other than oxy cotton itself and so its really an educational effort but its also letting the prescribers know that there is oversight and its really only been recently that there has been any perceived level of oversight for those who are really the individuals who are prescribing these types of medications now lets move on to fannie mae and freddie mac. Weve touched on this before on the question is how do we launch these core institutions of the u. S. Housing market as profit making and there are growing concerns right now that the Trump Treasury Department has announced that they will allow fannie and freddie to keep more of their profits so walk us through this new policy and what this means for the Housing Finance department and the u. S. Well what its going to mean is that theres going to be more i believe a perceived difficulty in the Financial Markets with the obligations pertaining to freddie mae and fannie mack and the situation is they also issue bonds they also issue other types of securities which are bought by large institutions and investors and theyve always enjoyed a certain guarantee by the fact that they were issued by. A federal agency or a federal agency that was at least simply. Sadly associated with the government when you start removing that privatizing it then whats going to happen is the rating agencies such as moodys and s. And p. Will come in and basically rate these obligations based on their overall credit worthiness and if we see a decline in that then were going to see a decline in their overall value and also how interested investors are in it and then they have an impact on those organizations which will trickle down on to as ive spoke about before the ability for consumers known only to get mortgages but also enjoy a wide variety of mortgages with different terms so its fraught with a little bit of hazard its which i dont think has been perceived yet and probably will only be perceived once everything goes through completely right always fascinating International Regulatory attorney miles edwards thanks so much for joining us thank you. October 1st marks the 30th anniversary of the founding of the peoples republic a massive celebration shut down. Where the parade told the story of the founding of china and 3 chapters the founding of the country reforming and opening and now finally the great renaissance the celebration came as the finale it with 70000 pigeons and 70000. 00 balloons were released to symbolize peace and joy the progress made in the last 70 years has been astounding in 1949 banking assets in total only 149000000. 00 r. And b. Today total assets have exceeded 281. 00 trillion r. And b. And in terms of market capacity the total market cap of chinese equities market now ranks 2nd in the world only to the us 70 years ago china had 650000000 people and half of them didnt even have enough food now and china has 1400000000 people and lifted 70 percent of the population out from abject poverty to middle class. To highlight this achievement before months representing food delivery workers made their way through the parade on electric scooters from not having enough food to food for all delivered to your door all through the app may 20 m. Ping not only has china been boasting its impressive Food Delivery Network which is both faster and cheaper than grub and over 8 ali baba now promises delivery and urban areas and less than an hour undercutting amazon prime now which is still at 2 hours and thats it for this time you can always catch boom bust on you tube dot com slash boom bust hard to see you next. 2040 you know bloody revolution of you tube the demonstrations going to be relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it you know or here i mean your list put the video at 3 in the new bill is that i do believe it or the former ukrainian president recalls the events of 24. 00 g. And. Those who took. Youve invested over 5000000000. 00 to assist ukraine in these and other goal that will ensure a secure and prosperous and democratic. 70 years ago this week china started down the path of communist rule over the past few decades china has emerged or rather really emerged as a leading world power rivaling the us the communist party can rightly claim a string of stunning successes but challenges remain. Whats next for chinas extraordinary revolution. Seoul riposte candle is ongoing the whole negative Interest Rates are the same is that we work in the better in the bond market these things are happening or experiencing a breakdown of markets all over the world so what we have we dodged one bullet call the we work i. P. O. But were getting gunned down in a hail of financial bullets from financial bad guys shooting at us with impunity. Around them to follow and then comes out of a war. Of the sort of one among one of them. A fondness for the main tea made to hide not the high i might i mean. Some of the set on montreal in front of the sensor on. The front close to the muslim youth shook a lot of those. And then it is someone who did the board. Do. A little walk does. Your youre misusing the flag. Giving it. Should be. Should be able to speak. To refute any charges they try to shut up. Everybody has