Transcripts For RT Boom Bust 20240713

Kind of signal to some issues in terms of political unrest as it does because hong kong has actually entered a core of technical recession and because of this g. D. P. Actually shrunk by of almost 3 percent and the government country contribute 2 percent of that to the unrest and turmoil and this is going to be a major thing going into 2020 and whether or not these unrest whether hong kong can or cannot recover and become the Financial Capital financial safe haven that it once was and as you point out this is a 5000000000. 00 isnt really a lie and a lot of that is due to ali baba because of the i. P. O. Just last month that actually gave a lot of credibility and a lot of confidence has resurged in hong kong and the u. S. And other western powers continue to show support for hong kong does that kind of ease some of the tensions for investors who are keeping money in hong kong i think it does but then because of the uncertainty that we see right now there are actually a lot more inflows going into singapore into australia right now i think still going to be on the back burner on tell in 2020 when you get a much clearer picture of whether or not theres going to be a resolution all right lets talk about those other asian markets well. While markets in asia and the us gained amid high optimism analysts reiterate that we still dont have a trade deal signed yet and there are still a number of things that can go wrong further details including structural changes to intellectual Property Rights remain unclear and as a trumpet ministration is splitting hairs between the right and wrong translators nothing is going to hide the fact that the benchmark import targets are completely unfeasible theres also a general euphoria across all markets because uncertainty has come down there is another escalation but investors should not be complacent playing into the santa rally asian markets got a slight boost after a surprise improvement in novembers and production and retail numbers but this could simply be a seasonal rebound as a result beijing sees no reason to launch major fiscal stimulus yet and is saving its tool box for a rainy day as china wrapped up its annual economic work conference stressed maintaining the countrys steady growth against the backdrop of Global Financial crisis accelerating profound changes and an increasing sources of turbulence worldwide doubling the size of the economy and 2020 is still at the top priority for the communist party next year. For the Boris Johnson era as britains Prime Minister is starting with a drop in the pound as a fill more than one percent in early trade tuesday the reason well media reports of the British Government will block a delay to oppose the transition period media reports indicate the johnson will add a revision to the brigs that Withdrawal Agreement bill that would explicitly rule out an extension of the transition period beyond december of 2020 currently the u. K. Is due to leave the e. U. By january 31st 2020 the fear is that the new Prime Minister will steer the country toward a holder briggss and that means under the legislation britain would have only 11 months during the transition period for a trade deal to be struck with the e. U. And there are concerns that 11 months is not in. So lets take a deeper dive here bringing in hillary for which board member with the British American Business Association hilary glad to have you here pleasure ben christy there are concerns about this hoarder turned towards briggs it but isnt that what johnson has to do hes been pushing for this for some time the markets may not be excited about it but doesnt this at least give them some clarity to their timeline absolutely ben and this is what he ran on you cant run on Something Like build the wall and not build a wall you cant run and get it done and not get it done and i dont know if you are christian our audience saw the Boris Johnson vote conservative actually at the parody on love actually movie but what was really important about that was he actually stood on the doorstep with the placards just like the movie laying out what he was going to do he said this hes had his placards hes had his ads yes he has to get it done i actually would defer to the j. P. Morgan analyst malcolm barr who said theres about a 25 percent chance that there will still be sort of a no deal hard breaks it. 25 percent is still rather high and now currently the transition period has the option of being extended for up to 2 years and if that both sides in the u. K. And the both agree on this so isnt part of the problem here that there has been a lot of talk about whats going to happen and what will happen but very little has actually materialized here because were talking about bureaucrats because youre absolutely right and this is happened time and time again and that was the problem with may and now Boris Johnson completely different he has a mandate that you have not seen certainly in the u. K. With an 80 seat majority since 1935 thats when the labor party lost last this march the conservative party hasnt seen this majority since 1907 with Margaret Thatcher the iron lady so a couple of things with regard to the trade deal tying those 2 points together it took the e. U. 7 years to do a trade deal with canada so when you juxtapose that with 11 months its basically left this is what i would say is very different you got Boris Johnson what is Boris Johnson doing he has got. Dont trump up his sleeve and he also has china he has the rest of the world to deal with and thats what hes vying for i personally think hes playing hardball and the threat of a even albeit 25 percent is going to do very well in terms of making the e. U. Actually do something instead of yes kristie just talking about it as recently as friday President Trump was immediately tweeting out saying lets get the deal done really between the u. K. And the u. S. Right now u. S. Is ready for a deal forget about europe is that he say yeah we know that this would actually play really well for trump in terms of always talk about trade deals if you want to get something done Boris Johnson they seem to be almost kind of birds of a feather in many ways they carry themselves certainly but we know that this is britains factory sector has suffered its worst quarter since the financial crisis right a lot of that all primarily driven by automobiles because several car makers held shutdowns in november and they were worried that britain might crash out of the e. U. By the end of october so were seeing some of that but again going back to this idea of getting it done at some point britain has to say were going to go forward with because up until now hasnt been that politicians are saying we know were supposed to but were not really going to be here thats what the entire election was about the global elites watch it no trace of a was a remain a fundamentally she took over from David Cameron to step down off of the British Public 17400000 of them voted for breaks it he sets down theresa may remain a comes in to do the deal and yes theyve watered what the people voted for what labor was hoping for and the remains were hoping for that with the this election would prove well see a lot of people still want to remain with the absolutely not now there is a mandate what i would say is this puts the e. U. Really on notice why because the u. K. Is going to thrive off the everything said and done you think about the pound the pound is actually held relatively steady there was none of the doom and gloom that was predicted remember there was predicted to be Something Like you know you know hundreds of thousands of jobs lost from the. The financial district they were going to go to dublin they were going to go to frankfurt has not happened so what have we seen the predictions all that the pound is going to hold somewhere between 130 and 140 straight through till june i would think the best probably pretty accurate 2nd thing youre going to see that the e. U. Is on notice you know why they have to treat the other countries in the better because now theyre losing 11000000000. 00 a year coming from the u. K. One of the largest contributors to the budget if they dont treat germany better they dont treat the dutch better than the swedish better they will be gone theyll be next in the beeswax it and it will be the breakup of the well its very likely that its coming either way but again if it comes back down to trump and johnson getting the deal done i would bet on it i would say it would which were member of the British American Business Association thanks so much for your insight pleasure. Time now for a quick break but hang here because when we return oil bank thats is our prices are down what does this forecast look like point money and what does that giant saudi aramco i. P. O. Look like moving forward well break it all down and as we go to break here the numbers at the close. During the great depression. Remember it was. It was much worse. But there was an expectation that things would get better. There was a real sense of. Reason. Todays america was shaped by the 10 principles of concentration of wealth and power. Reduce democracy attack solo down engineer elections manufacture consent and other principles according to no on chomsky one set of rules for the rich opposite. Thats what happens when you put her into the. Narrow sector of wilf which rule is dedicated to increasing power for chills just as youd expect one of the most influential intellectuals of our time speaks about the modern civilization of america. Is youll be via reflection of reality. In a world transformed. What will make you feel safe. Isolation community. Are you going the right way or are you being led. Away. What is true what is faith. In a world corrupted you need to descend. To join us in the depths. Or remain in the shallows. This is a stick for the water bottle found in the stomach of a fish the brand is spawns of the Cocacola Company which sells millions of bottles of soda every day the idea was that lets tell consumers theyre the bad ones theyre the litter box theyre throwing us away industry should be blamed for all this way. Yes the company has long promised to reuse the plastic. That seems. Their plastic. And i knew. That special projects funded me. On i knew that that is the end of it for. The mountains of please only grow. Join me every thursday on the alex simon show and ill be speaking to us of the world of politics or business im show business ill see you then. Well come back it is done boeing has officially stated it will suspend production of its 737 max jetliner in light of 2 deadly crashes that resulted in the deaths of over 340 people as weve reported that 737 max has been grounded by the f. A. A. As well as worldwide well the company is attempting to resolve issues with it well now not much to resolve it appears boeing is giving up on the idea of bringing back the 737 max boeing is the largest manufacturing exporter and one of the nations top private employers and the max its best selling plane boeing says it will reassign workers from the max project and does not expect for a lowes or layoffs the company has also not said how they expected duration of the production shutdown impact suppliers around the world will last. Well meanwhile news of the discontinuation of the macs meant that shares were up for European Aerospace group airbus airbus shares were up 1. 6 percent in early trading while boeing shares were down 2 point one percent. Earlier this year in february swiss pharma giant roche tendered an offer to acquire Spark Therapeutics and aka. Transaction Spark Therapeutics is a fully integrated commercial company developing gene therapies for genetic diseases including blindness hemophilia and other neurodegenerative diseases the lead acid is a gene therapy for the treatment of haemophilia a and b. And make spark the only Biotech Company to successfully commercialize a gene therapy for genetic disease in the us together with russias deep wallets sparks should be able to accelerate the development of more gene therapy now this acquisition has been fraught by delays by the antitrust commission but finally monday this 4300000000. 00 acquisition has finally been cleared sparked has ceased trading on the n. Y. S. E. And will continue to operate as an independent company under roche who popped up nearly 2 percent on the news oxygen manufacturer produce pharmaceuticals paid out nearly 11000000000. 00 to the cycler family during the u. S. Opioid crisis the latest audit of the Pharmaceutical Company found that cycler family members who own the company shifted the massive sum of money as legal pressure intensified on the opioid maker arties alex miller held that she joins us over the following the story so alex according to the audit cycle family members withdrew 8 times more from perdue between 2008 and 2018 compared to the 13 previous years its an incredible number what can you tell us. The information we have is from Alex Partners which is a Consulting Firm theyre saying that this money was moved it was shifted to during one period of time that the one that you just mentioned actually basically the world started to the family to get billions out of the company out of purdue. After they were fined 635000000 and they were this fund was for misleading marketing about the very addictive drugs that we all know as oxycontin now and the money that was shifted was shifted to family trusts it was also Holding Companies 1500000000 of that went offshore so you could see there was a lot of motion going on at the time. That produce fuel that the us open epidemic when it is that intensified thats when the family started shifting stuff around thats when they started getting worried about wheres our money going to go so the attorney generals believe basically across the country you have attorney generals are talking about this 24 states actually speaking out against the family and a plan by the family to settle 2700 a lawsuit against purdue now the attorney generals believe that more needs to be done to hold the family accountable for what happened here the Opioid Crisis believe this or not its blamed for 400000. 00 deaths in the United States that is absolutely massive so thats just a from the year 2000 to now so Massachusetts Attorney general this is a pretty important here more of a healey she was the 1st attorney general to sue or to sue the Sackler Family the family members and this is what she had to say so todays report confirms what we revealed in our lawsuit that sakuras pocketed billions of dollars from purdue while thousands of people died from the addictive drugs this is the very definition of ill gotten gains now that we knew this information we have since october with this has been out but what this report does it tells us when the money was actually moved and this gives you a good idea that the money start to get shifting with the lawsuits started popping up after this fine and obviously somebody got scared that their money might be taken away so a lot of claims and a lot of raise directed at the family but what are we hearing from the sacrifice my side. Well the Sackler Family there theyre trying to address these 2700. 00 lawsuits against them it looks like theyve agreed to pay out at least 3000000000. 00 also theyve stopped on the down from the boards with their daughter the board of directors of the company anymore although they do own it. So get this this is the lawsuits are happening in nearly every state and even though theyre giving up control of the of the come. And it might rise up to about 12000000000. 00 once everything is said and done the sock lawyers are basically stepping back because there is a big but included here Purdue Pharma says the family could back out of the deal if the lawsuits against the progress so its basically a threat if youre going to keep suing us we might not give you any money in the end so one important thing here 2013 if you look at the Sackler Family on the forbes list they were among the 20 richest families of the United States of america im sure there are up there still and this is a whole thing that i think these attorney generals are really digging into what is this a question of 400000. 00 people dead a Family Moving billions of dollars you know its one of those situations that the legal system really has to take a deep look at because something doesnt seem right you know well certainly the idea that you going to cap liability at 2700 people when there are as you said 400000 deaths doesnt seem very likely to correspondent allison hell of it thank you very much. Thank you. Bankruptcy filings by Us Energy Producers through mid august this year have nearly matched the holdall for the whole of 28. 00 team as Oil Prices Remain under pressure this slowing oil industry sits heavily on the u. S. Economy as the boom in the shale added about 10 percent of growth to u. S. Economy in the last 5 years now the shale sector has just started generating cash flow but many small to midsize shale farms are already pulling back on production targets amid weak price production and now banks have also begun trimming back credit lines for american shale producers further undercutting the industry thats been struggling to regain Investor Confidence for the 1st time since 2016 producer surveys expect to see declines at least 15 producers have already filed for bankruptcy this year and market values across the industry have plunged an average of 21 percent many producers are now struggling under huge debt loads accumulated earlier but other issues have also played industry as well many have turned to lower quality sites and others have begin drilling wells too close together resulting in a loss of overall Performance Industry surveys show that a handful of Large Companies are on the edge of bankruptcy as there is about 15000000000. 00 of outstanding debt at risk and investors remain dubious that further opec cuts can boost prices with more on the state of welcome David Mckelvey nice c. E. O. Of mcilvaine a Financial Group now david when we talk about oil need generally talk more broadly about the whole sector but lets be very specific here who is feeling the most pain along the supply chain and why is it the drillers the exploration refineries production pipelines or the offshore guys whos the most lever and whos the most exposed here. You Service Companies are dealing with the toughest times right now i think theyve got the most acute pain youve got over capacity and theres just not the jobs that they are used to doing so they still have to service debt and thats a tough thing to do. Taking a lot of dad in your business slows down thats why theyre in the crocs theyre in the midst of some tough times so a lot of these majors are trying to insulate themselves from a downturn theyve expanded their wealth to refinery networks in order to control costs and sustain periods of low prices but its kind of a catch 22. 00 is it not that in expanding theyve also kind of over leveraged and now carry huge amounts of debt so how can their vertical integration help them and can they whether 2020. Were not very concerned with the majors and obviously you have in absolute terms large amounts of debt but if you look at their capitalization to debt ratios theyre actually right in line with other non oil Type Companies so i think again youve got to go down the food chain to see where the real weakness is and where the likelihood of greater consolidation would be and also where you might see further bankruptcies so the pressure is not on the majors and you can see this across the share prices if youre looking at a a c. Drill or a neighbors or a trans ocean these are places where the pressure has been more acute so back to the earlier question yes its the Service Companies its also your offshore guys it is also some of your drillers as well one of the e. M. P. Guys a lot of these oil plays havent really materialized the way that we expected in the projections a lot of them have claimed that the drilling sites have not resulted in what they expected to do again and a lot of them have been over leverage and over expanded in terms of just gaining market share and in the Permian Basin but those players have not really materialized at all because these shell plays have been underwhelming to say the least. 2018 was sort of rampant speculation in the Permian Basin thats where you saw kind of a and overbidding of a lot of asset prices and already youre seeing you know groups like chevron this last week writing off 1011000000000. 00 and we think well see more of that as 2020. Fold so yeah i think the overpaying in the permian is now hurting some of your Oil Companies but where you do see. I think positive mergers and acquisitions youre seeing things in alaska youre seeing things in in the eagle ford youre seeing things much more broadly distributed in 2019 the core on track for between 85100000000000 dollars and mergers and acquisitions so the real i guess i think where you overpaid significantly was where there was a lot of speculative energy in the permian last year in the year before so as he has said that we can probably expect to see a way of america among the smaller players right now in the Permian Basin and some of the other shale regions so who are some of the right acquisition targets and whos portfolio and what they fit into. Its a good question its a good question i think time will tell as we get into 2020 coming back to what youre saying in terms of financing i think one of the key things that is happening here at the end of the year are based loan redetermination and as you see these loan rates redetermined thats where youre seeing a lot of pressure is is folks who thought they had x. Amount of production its not going to be that much production is not as strong as as you mentioned kristie and so thats where all of a sudden were beginning to see a squeeze and where the opportunity lies on the acquisition side is really where the pressure is born as we come through the 4th quarter now the irony is not only do we have a tightening in bank credit but we also have the loose in Central Bank Credit probably in well not quite World History but if you got to go back to the 4th quarter of 2007 to see the amount of free flow of capital and cheapness of capital in the Capital Markets and thats particularly relevant to the oil market because youre finding hedge funds and private equity funds find workarounds its no longer liquidity from the Banking Industry but theyre even finding access to liquidity in the repo market if you can believe that yeah lets shift just a little bit sticking with commodities but over to gold its obviously done a very well this year but it really cannot hold a torch to palladium the best pool for me in precious metal on. 29000. 00 thats up more than 40 percent this year primarily use for automobile catalytic converters right and if so is that whats behind the rally why is it doing so well in 21. 00 thing. Then i think youre looking at spec that have mania i mean its a little bit like looking at nikkei stocks 2530 years ago or even bitcoin just a few years ago did it justify those high levels maybe in the fullness of time will see that it did but at the fundamentals driving the market dont support these levels youre looking at speculative mania in part because you had a significant curtailment of auto production so whether its china the largest market in the world or in europe in the u. S. We see the same kind of declining trends in terms of auto sales so how do you get to 1900 to get to 2000 you get that you get there on a speculative manic basis so thats what i think you see there unjustifiable above about 13501400 its just momentum at this point how to traders miss it if you care about fundamentals you would have missed it because this is nothing but momentum so youre better bet in terms of value at this point gold silver as you mentioned 2015 percent 10 percent in the case of silver these are much better values on a relative an absolute basis as well its not like its something that with an emerging technology catalytic converters its like are they even going to exist in 20 years they did not call me about any financial thanks so much for your insight. Thank you ben thank you christie. Well billboard has announced a major change to the way a rank album charts that its really going to completely shift the Music Industry thats because billboard will now include a you tube streams in its billboard 200. 00 album charts starting early next year and its not just you tube thats going to be included here billboard will also include apple spotify title and the evo billboard charts of historically been seen as a barometer of success within the Music Industry you know that we should mention that since 2013 video streams have counted toward billboard song specific charts but now again will count toward the billboard 200 so its probably a good thing for a lot of artists but im not sure it necessarily helps in terms of independent artists which kind of you tube and spotify and some of these emerging you know break away from the Music Industry technology should have taken us there and they just kind of become a regurgitation of mainstream too and i think a lot of this comes into the fact that music Video Production quality has gotten a lot better now so it becomes a lot more difficult for these independent songwriters an artist to be able to match something thats professionally put together by one hundreds of thousands of people be seen in the winter song now a music video can talk about low low in video very successful thats it for this time you can catch a boom bust on directv channel 321 dish Network Channel 284 streaming 247 on pluto t. V. It is the free t. V. Ad channel to 79. Head of that you. Are the next time. In the troubled 19 seventies a group of killers rampage 3 cups of mills an island that was corded loyalists attacks particularly callously population tens of solutions were forced to flee their homes and what was striking to put these attacks was that the or you see the police. Actually took part in the attacks so instead of presenting they were active participants in the burning of coal streets in belfast at the take more than a 100 innocent civilians were unloaded as the you can see in years and we found out more i was surprised about the extent. To which the pollution was involved in some of those cases the killers would later be named goodwin and were getting i think it went to the very very top i think it is. The water where politicians knew. And gave the go ahead. All of us will hopes it has been absolutely true a baby but says about a view that appears even in death and dying babies even if youve never heard or seen love to you will love if youre tickles by your parents. And then we learn how to use this in a more complex way im one of the things that we learn is to how to join in with love to contagiously to love somebody else loves even if you dont know why theyre laughing. At her her. Problem not theirs exactly. The headlines this hour with us high sets of photon impeaching President Donald Trump on wednesday some are warning that the whole process could actually backfire on the democrats and cost. In 2020. Parents in the u. K. Are angry after School Changes the words in traditional christmas to be more inclusive we get reaction. And they want a True Movement reference as well as jesus being king and jesus being savior if we dont have those things what are we celebrate so if we want to have. A religious education that includes all strains of all walks of life. And germany brands washingtons to see