Transcripts For RT Boom Bust 20240713

Plus as the virus continues its spread across the globe so as misinformation about the outbreak and tech giants are teaming up to take it on and later the global Aviation Industry has been battered by the virus could help for the sector be just over the horizon we have a packed show today so lets dive right in. And after the worst day for the u. S. Market since 1987 were seeing a bit of a rebound following an early rate cut from the u. S. Federal reserve as the central bank tries to mitigate the Economic Impact of the coronavirus markets tumbled to yearly lows losing more than 10 percent and on tuesday things are back in the green but the question is for how long were going to get to that shortly with some expert analysis but thats whats going on on wall street what about whats happening on main street please pardon the political cliche there an increasing number of businesses have been forced to close in major cities throughout the United States as of tuesday the United Auto Workers have called for a 2 week shutdown of plants operated by ford General Motors and chrysler to safeguard their members from a crow Virus Outbreak Movie Theaters Movie Theater operators amc and regal will close for up to 12 weeks Department Store nordstrom will close for 2 weeks apple stores have closed and the list keeps growing on tuesday at the white house u. S. Treasury secretary Stephen Moore nugent spoke about what the administration has planned to stimulate the economy and help those working americans. Well the president likes the idea of the payroll tax holiday i will tell you what weve heard from many people and the president said we can consider this the payroll tax holiday we get people money over the next 6 to 8 months were looking at sending checks to americans immediately and what weve heard from hardworking americans Many Companies have now shut down whether its bars or restaurants american state cash now and the president wants to get cash now and i mean now in the next few weeks and for more on all of this and the state of the markets we bring in t. V. Watkins chief market analyst at Simpler Trading and Todd Horowitz chief strategist at bubba trading thank you so much for joining us now baba here in the u. S. The Trump Administration is pitching this roughly 850000000000. 00 stimulus package which would ease some of this economic pain were talking about payroll tax cuts theres a possibility of a 1000. 00 paychecks going out to america if thats what mitt romney wants really is this going to work and is it going to actually prop up the economy. You know its not going to work i mean it may probably not for a minute but people are running out to go to the store you know people are talking and covering and looking so they dont get sick ok so again will that will it help i mean it certainly will help people that are very tight on rent and things like that but everybodys kind of being understanding and understanding that you know maybe people just cant pay right now i dont think anybodys going to go after the consumer and pressure them if theyre going to be late on the round or whatever so i think this is just another temporary measure that can be taken in but again all work we just we just like we had more debt lets see if we can get this 30 trillion so i mean it just it just another you know 850000000000 what the heck it just lets pass it on and it really does seem odd because if youre talking about putting money in the hands of americans yes could it help with rent and bills that need to be paid while these people are out of work but but in reality a stimulus measures are supposed to be there to support your Small Businesses to prop up the economy that way and if all these businesses are closed its very hard to do that now t. G. When we look at these stimulus measures what are they going to do to actually help the u. S. Markets when we look at that. Going to be really tough to see whats going on i think a lot of people are waiting to see when the market actually stops going down and turns around a little bit i know that the government basically is trying to fire a bazooka at the market and say hey were here were going to try and put liquidity and what were seeing on wall street main street is that just people arent doing anything and if we continue to see that events and concerts and airlines and just everybody stops doing everything i think its going to make investors a little bit nervous to continue to put money back into the market if we just see that everything is on hold and on positive now. Ive been waiting for this one for you know all day you know you said from the beginning the fed was doing no good to help this problem and the day after an early rate cut of one percent markets had their worst day since 1970 now the fed has injected 500000000000. Dollars just tuesday afternoon in the markets and things are looking a little bit better but what do you make of the situation with the fed injecting all these funds. The fed is coolest as usual i mean look if they were going to cut which everybody kind of knew it was kind of telegraphed why didnt they have their meeting like they were going to have and have it tomorrow and cut tomorrow you knew the minute they cut on sunday that it was a panic move the pad the fed choked out and couldnt take the pressure of trying to facilitate the markets which again if you let markets trade if you let everything trade free then you dont have these issues what you could do to try to manipulate i mean the whole entire move has backfired on them just take a look at the u. S. Dollar i mean theyre trying to keep the dollar under pressure here the dollar is once again trying to push up against par so theyve shown that they have a lack of knowledge of how the market works and how a free market works and set up letting prices coverage happen and work because the markets will find a level whether its you know whatever price level that when im at woods 2. 00 percentage rates one percent 03 percent we know that the markets going to handle and the system can handle higher rates because you have you have all these peer to peer lenders and sub or sub prime but you know lesser lenders that are lending like crazy and what are they doing theyre turning around and sign those loans back to the banks so the banks can once they get over leverage and of course that will eventually come out and say were over leveraged and theres a problem and this is what they do all the time but again you keep giving that free money and giving free access to the repo window dont make them pay and all the sudden you end up in a problem because all the people who are selling these subprime loans are these lesser loans are selling them and picking up 203 to 4 basis points just for facilitating alone with no risk i mean what kind of business is it absolutely not c g i want to talk about some other Market Metrics that were looking at the volatility index top to where it was during our last financial crisis. This in 22009. 00 that the vix more than doubled so far just in the month of march you you were trader do traders have actually any confidence in markets and what can we expect in the coming weeks and months. Well yes us as traders we would like to see whats happening as far as confidence of the market we know that eventually it will come back but you know ive gotten a lot of phone calls recently from people who know what i do and theyre saying hey its now the time to buy because everythings so cheap and i always tell them the thing about dont you dont want to try and catch a falling knife right now were still going down were still under major moving averages you know if we talk about the fed coming in and trying to add this liquidity sure i think it might hold the market for a little bit i am looking for a bounce at some point just because the market is so oversold if it can continue to keep good oversold the volatility is so high its likely to come back down at some point but what im concerned about is that any kind of bounce any kind of a drift a bet that we get back up is really going to be an overall reversion to the mean and start meeting running into these down trending moving averages and we might roll over again after that most of times what were looking for is a retest of rose and right now we still havent even put in the 1st low and thats what were looking for is something to come later horowitz at t. G. Walk ins thank you both so much for your time could spend hours on this. And the European Union will close external borders for 30 days german chancellor Angela Merkel announced tuesday movement of people within the e. U. Member states will still be allowed barred restrictions of specific nations and border restrictions are quarantines are starting to take place more and more all over the world specifically in latin america now after peru chill a in argentina announced they would close borders to nonresidents on monday colombia will now close its seal and river borders to noncitizens close to rican ergo i also know its border closures as well el salvador will also suspend flights from mexico amid allegations the countrys government allowed passengers who tested positive to both. A flight to el salvador ecuador and paraguay are imposing National Curfews venezuela has also instituted a nationwide quarantine after cases in the country doubled moving to Asia Hong Kong has also announced all visitors will be under a 2 week quarantine and medical surveillance starting at midnight on the 19th of march officials in hong kong have also asked residents to avoid nonessential travel around one of the countries hit hardest by the pandemic reported on tuesday more than 100 deaths and nearly 1200 new cases of the virus in a 24 hour period meanwhile going back to the e. U. Leaders are facing criticism from serbian president alexander over the refusal to export needed medical equipment adding the only option will now be to seek help from china earlier today former u. K. M. P. George galloway joined the news with rick sanchez to discuss the situation. So weve had a succession of sub and governments thought the e. U. Well they are friends then they are asked if they could buy wasnt jotted rick if they could buy medical equipment to deal with the go to nevada us and i said no to even though they are a candidate. Mr lover off the foreign minister of russia stepped in and said we will help and support. Its always been president thanked him for extended the handoff friendship to china called president being his brother and try to not right on cue is flooded with medical aid and as the number of confirmed cases nears 200000 with more than 700. 00 deaths the us is preparing to test possible coronavirus vaccines the 1st us trial will be at Kaiser Permanente Washington Health Research Institute in seattle it will be a 6 week study to test safety and dosage of an experimental vaccine developed by the National Institutes of health and biotech for. Mcdonough it should be noted as always it is early in the process and it will likely be at least a year before a working vaccine is widely available. And the Biggest Tech Companies in the world have come together they say to combat against fraud and misinformation about covert night teens in a joint statement between facebook and google linked in microsoft reddit twitter and you tube the companys released a joint statement monday evening explaining their efforts that statement in part reads we are working closely together on covert 19 response efforts were helping millions of americans stay connected while also joining jointly combating fraud and misinformation about the virus elevating authoritative content on our platforms and sharing critical updates in coordination with Government Health care agencies around the world we invite other companies to join us as we work to keep communities healthy and safe so what exactly are these companies cracking down on while joining us to discuss is boom bust cohost and investigative journalist ben swan ben always a pleasure to have you wish it was always under better circumstances as we keep up with the continued coverage on curb the coronavirus and covert 19 now it makes sense that these Tech Companies would be working to prevent misinformation what are some of the biggest issues these companies are trying to crack down on. Well theres a couple things brand that we were talking about obviously you have the issue of price gouging and you have you know all kinds of sellers who are online who are trying to put out you know products at ridiculous prices but then you also have just Bad Information misinformation thats going around about a lot of different issues so for instance you know already this week the white house has had to put down a rumor that President Trump was going to call for a National Lockdown where everyone was going to be required by law to stay in their homes that was not true the white house had to debunk that there are claims online that the new york subway system has been completely shut down that was not true so theres a lot of misinformation thats out there and i think there is a you know a usefulness to Tech Companies saying hey were going to do whatever we can to prevent that from happening however when they use the terms like authoritative sources that gives me pause because just because someones in authority doesnt mean what theyre saying is true and so we have to be careful about it also seemed like a weird choice of words authoritative for some reason this move this move by Tech Companies was preceded by a call with the white house held account because of its call with many of these Companies Last week on that call were some companies that did not sign on to the joint statement we know why they didnt joy. Yeah im not really sure about that but the companies that did not i. B. M. Amazon i mean these are companies that were on this call but they didnt join in this statement and so you have to wonder why is that obviously you know theres other issues going on with both i. B. M. And amazon right now after that pentagon called contract not saying thats the reason for it but it was interesting that they were not part of that joint statement its also interesting that you know while a lot of these Tech Companies said that they are really trying to take on the issue of misinformation amazon is the one that really has to take on the price gouging issue because right now at this point theyre the ones who are dealing with it more than anyone else with you know having products that are put on their marketplace that are ridiculously priced again you know if youre going to spend 200. 00 on a bottle of purel thats your issue im not even sure that it causes the price gouging it seems like incompetence by the buyer well and i think now theyve actually kind of changed some of their rules as well and how that works and theyre done has now meanwhile the Cyber Security and Infrastructure Security Agency the department of homeland securitys cyber agency is warning that with so Many Americans at home right now there are concerns that hackers may be stepping efforts up to take advantage of work from Home Networks and that could be a real problem whats going on there. Yeah wall the asli you have you know a lot of people who are remote commuting telecommuting who are online and so the warning is just to say hey you got to be careful when youre online but part of this is also by the group which is that Department Homeland Security Agency asking for more funding and i think what they see is theres a lot of money out there right now and they say hey we need more funding because hackers could be on the loose and unfortunately in these situations i dont like it hackers take advantage but Government Agencies who want more money i mean all that is really the same apparently boom bust cohost ben swan thank you so much for your time today. Thanks. And time now for a quick break but hang here because when we return the global Aviation Industry has been battered by the virus could help for the sector be just over the horizon well break it all down and how manufacturers are responding as we go to break here the numbers at the close. Blushes and i think she should utica total more than the bleach he cut a hole close to each seam youll be set its not that its indeed some shots that always sting against. Them into. A huge clear because you know i said you needed. A use of it i was quite numb from wanting that in the skin to show yeah. But you believe you shirleys. Given to us not to the such users tell them not to be come forward summed up. The money approachable british mr west i am all sure but. Is your b. G. A reflection of reality. In a world transformed. What will make you feel safe. Isolation from the community. Are you going the right way or are you being led so. What is truth lost his faith. In the world corrupted you need to descend. To join us in the depths. Or a maybe in the shallows. Welcome back saudi arabias decision to maximize production and Sell Crude Oil at discounted prices is sending shock waves through oil markets and now more than a dozen u. S. Republican senators are pleading to the crown prince to urge him to take action in the oil market at a time when the economy is already hitting being hit hard by the corona virus in a letter the senators wrote the United States has been a strong and reliable partner to the kingdom for decades in the light of this close strategic relationship it was greatly concerning to seek guidance from the Kingdoms Energy ministry to lower crude prices and boost output capacity this has contributed to a disruption in the Global Oil Prices on top of already hard hit Financial Markets now the letter was signed by senators who represent shell industry states like senator dan sullivan of alaska kevin kramer of north dakota bill cassidy of louisiana tom cotton of arkansas ted cruz of texas and james inhofe of oklahoma among others now the senators are scheduled to meet with saudi and the saudi ambassador to the u. S. Later this week to discuss the Oil Price War in more detail so just how much longer can the kingdom maintain this flow before giving up from the pressure for that we go to our to correspondent saya tavenner so this is what were dealing with add them and currently non opec members are producing close to 68000000. 00 barrels of oil per day we have paid producers producing about 34000000. 00 Barrels Per Day so we have a total World Oil Consumption at 100000000. 00 but the production is at 102. 00 so ready there is a surplus of 2000000. 00 mostly to do with china as slow growth and then we had to crown a virus and now we have the Additional Oil and met a price war where saudi arabia is promising about 2. 00. Barrels more into the mix with the u. A. E. At a 1000000 now iraq has even joined this price war and is adding about 800000 barrels of oil whereas russia is promising at least a minimum of 500000 barrels so we have all the surplus at the moment and additional surplus is 4900000. 00 and then you take in consideration the previous or applause which is out of 1. 00 so the total oil soar plus at the moment is 6870000. 00 so were talking about excess oil right now in the market and oral demand in the next 2 months could actually be down by as much as 10000000 Barrels Per Day and you know the last time there was such a global surplus of this magnitude well was never and thats because even tiny cuts in demand for crude price drive price down dramatically and saudi arabia basically drove the price down 30 percent with a production increase of lessen half of percent of current Global Production and this is the exact reason why the u. S. Senators have sent this letter to the Saudi Crown Prince now in the past senior saudi government leaders have repeatedly told american officials that the kingdom is a force for stability and Global Markets but the way that the saudis are filling the market with cheap oil well thats really calls the role into question and then amid the market meltdown we have a shale billionaire harold who basically put us in this the shale industry on the map and the founder was the founder of Continental Resources and now its that he wants to file a complaint with the u. S. Department of commerce against saudi arabia a legal dumping of crude meanwhile other Oil Companies are pleading to the u. S. Government for aid ranging. From lower interest federal loans to just plain all bailouts but this is not just about the u. S. Shale oil industry occur in our prices wont slash the oil revenues for mana roll or line developing condom use by up to 80 percent so were talking about countries like iran eyes out by nigeria algeria then as well all who rely on oil exports for them and come. To the Aviation Industry continues to feel the effects of the coronavirus across the globe no according to reuters United States jet maker boeing among others are seeking billions in federal aid as passengers and investors flee the companys u. S. Airlines are also looking for a bailout the wall street journal reports Companies Like delta and american are asking for as much as 50000000000. 00 this would be 3 times the amount airlines were given after the september 11th attacks the aid could come in the form of grants loans or tax relief now the United States treasury secretary steven minucci made reference to how the coronaviruses impact on travel compares to what 911. 00 did to that industry this is worse than 911 for the Airline Industry this is they are almost ground to a halt the president wants to make sure that although we dont want people to travel its critical we want to maintain for critical travel the right to have to most incredible now in europe the British Airline Association Pilots Association Says British Airways is looking to cut costs with pilot redundancies in Russia Airlines are looking at losses of about one point 4000000000. 00 and possible bankruptcies flights have been drastically slashed to countries affected by the quota virus including china meanwhile in Asia Singapore Airlines Says it will cut capacity to as much as 50 percent until the end of april as border controls continue to ramp up across the world now i actually want to bring you back into the conversation because youre so great as i was pleasure to have you on here could you go. Is it up to date on what airlines are actually facing at the moment you know under any other circumstance the airlines would be ecstatic a static ride because at the time diamond oil prices are so low it would be great for the airlines because after all accounts for fuel accounts were 20 percent of the operating cost for airlines but at a time like this its actually not because number 1. 00 travel is down of course due to corner virus we have all these now regulations but theres also another problem a lot of the airlines have actually fuel at a much higher price meaning that theyre actually locked into prices in the future that they have a way with airlines that theyre going to agree to pay so a lot of airlines and im going to give you some numbers that are really going to tell the stories like for example take europes largest carrier ryan air they have actually had a 90 percent of their fuel requirements for the year at 77. 00 a barrel and then you have airlines like lufthansa out about 63. 00 right at the good news is that the u. S. Airlines dont actually had and neither do chinese and Indian Airlines so they are going to be able to benefit about on the Lower Oil Prices sorry to average or thank you so much for joining us as always. And while many of us are scrambling to get our hands on basic goods like Hand Sanitizer clorox wipes toilet paper and other essentials the wealthiest one percent are taking a different approach if you didnt already know about this well there is a booming 4. 00 trillion dollar wellness market this includes an urgency go bag with a james bond like gadgets with a price tag of nearly 5000. 00 this bag includes items you made an emergency and then some you may not like night vision goggles at a luxury price tag those who still have the choice d of purchasing other goods could afford a necklace that serves as a personal air purifier worth about 149. 00 or the sanitized sleeper safe haven for about 100. 00 made from. Real or micro. Microbial fabric that kills nearly 100 percent of bacteria fungi and viruses but no need to go searching for these gadgets now because most of them are either sold or on back order the super wealthy are finding other ways to escape the virus as well by ditching commercial and flying private many planning their escape to their private cabins if things get worse and others opting for isolation at sea on their yachts the rich are also turning to concierge doctors for v. I. P. Care services during these difficult times we know one thing the ultra wealthy may have just a few more options than the rest of us and thats it for this time you can catch boom bust on demand on the brand new portable t. V. App available on smartphones through google play and the Apple App Store by searching portable t. V. And as always you can check it out on you tube. Star t c n x im. No fan speed you no longer a young woman in fact you are one of the last living survivors of the nazis. And the letter that. You leave for a day. Well you look. At this from. There you can know. Was it really like to be. Close you would never believe it. If you met him to ask a course for 32 years of the. Earth it. Seems so lets go for it thank you. When i get out im going to find somebody you know im going to take my son to the next you so he can piss in hopefully bless her. Blushes and. More from the beach he cut the host for senor he said its not that he shouts that all the shooting against. Let him look into. The utility bills you know i said. You needed. A little bit i was going to have. To show. For it to leave you shirleys. To the session just tell them the tea come for to come to. The mummy approachable british mr west i am all sure but. The outbreak of the spread of the corona virus has become a black swan event for the Global Economy is no longer whether the u. S. And other economies will slip into recession the question now is how do you know how long the recession will last its going to get worse before it gets better. The European Union shuts its external borders for a month in a bid to limit the spread of covert 19 this france in force is a nationwide blog dot com correspondents experiences what its like. Anybody leaving the pope. Its also the thing. Thats so to say. The World Health Organization urges countries to take a leaf out of beijings book and impose tougher restrictions. Is the situation in china itself begins to ease. With the world distracted by covert 19 a controversial bill that critics say would practically