Transcripts For RT Boom Bust 20240713

Ship anything that is a. Human activity has brought us to the brink of the worlds 6th major extinction of it and the people in this film just cant take it anymore. This is the one business show you cant afford to miss. In washington coming up markets continue to surge upward but is this just a bump or a sign of Better Things to come. Out of World Oil Prices continue to cover around the storable lows the u. S. May have to make some oil cuts of their own. To and for social distancing in warehouses but privacy and Health Concerns for their workers continue to have a show today so lets go and dive right in. Lockdowns across the globe show signs they are indeed working while the corona virus continues to change the world with a global death toll now at more than 80700 nearly with more than 1400000 confirmed cases as expected japans Prime Minister shinzo abbay declared a month long state of emergency for tokyo and 6 other prefectures to ramp up defense against the spread of covert 19. Thank you some all even louis state of emergency has been declared this is the lake city lockdown seen in Foreign Countries necessary economic in the social services such as Public Transportation will continue as much as possible in our poll see remains unchanged in that we prevent the spread of infections by taking measures against situations that involve the 3 closeness is close spaces close did city in close contacts the move comes as a request for people to stay at home but not an official order and violators will not be penalized the new number of cases in tokyo have surged with 1160 new cases the region has a population of 14000000 people on tuesday china reported 0 krona virus deaths for the 1st time since january thats when the outbreak began the country is slowly opening back up while bracing for a possible 2nd wave meanwhile the World Health Organization warns against easing restrictions to early w. H. O. Spokesman Christian Lynn mayer say that its similar to being sick yourself if you get out of bed too early and get running too early you risk falling back and having complications indias 21 they locked on her means by cases are still growing account rise to more than 5300 a country with a population of more than 1300000000 people british Prime Minister Boris Johnson still in intensive care hes receiving standard oxygen treatment but spokesperson for the Prime Minister has said johnsons condition is stable and he remains in good spirits he was not required or has not required a mechanical ventilator World Leaders came together to wish him a speedy recovery and he look you should have a bike to send wish him some of the coverage on your behalf a lot more you really really dont rhyme minister bored silly antonio but we went down fighting the violin is. He going to your 1st ever medium well i also know a straight say will see that he will drop innermost to resources the capacity to overcome this ordeal i wish him a full and speedy recovery i also want to send best wishes to a very good friend of mine. Another friend during lation tremendous jaybirds johnson americans are all praying for his recovery hes been a really good friend is really really something very special to the u. K. Now with nearly 56000 confirmed cases and more than 6100. 00 deaths now spain which has the worlds 2nd largest toll after italy reported a renewed rise in new cases and death after several days of declines Spains Health ministry reported 743. 00 deaths in the past 24 hours almost 5500 new cases on tuesday thats more than the 1000 reported on monday italy is cautiously moving to ease lock down restrictions after seeing a slight flattening of the curve the u. S. Still has the Worlds Largest number of confirmed cases with more than 383008 death toll of 12000 of states across america are starting to see signs of hope especially those who took aggressive measures early on like California Well the next 2 weeks are crucial for americans and combating the pandemic before numbers and information on the coronavirus be sure to check out our portable dot tv up and look for the section tracking coronavirus. For more on just how this covert 1000 pandemic is affecting markets we turn to boom bust cohost christine chrystia markets are they still rallying. Well sorry u. S. Equities this morning continued to fill in on the strong names from monday as investors grew slightly more optimistic that things were getting under control with the dow up 900 points at one point in the day however later on in the session those stocks gave ringback up all their games in the final hour of trading turning negative as sentence soured on whether or not the outbreak is actually improving the markets closed pretty flat slightly down as investors tried to balance a risk to the downside with the opportunity to see the upside from this point where we stand today while the equity markets is looking up slightly the same sentiment is not shared on main street where pretty much the u. S. Remains on lockdown forcing americans to drastically change their daily life style 73 percent of americans in f. T. Survey polled that their income had been dramatically reduced with nearly half saying that they would be without any income at all if they were unable to work economists have pointed out that the optimism could be premature as investors were failing to price in the long term follow effects of the crisis so this entire move was driven by optimism and are not are investors that sure cited to sustain a rally up over 20 percent from the lows while the us economy is at a complete standstill so another answer is no much of this move has been nothing more than a giant normas bear squeeze rally driven by panic exits from the shorts the worry over the pandemic is not over in fact we are likely to start seeing some of this pop getting faded as investors take gains somewhere to end a digital day and the bear squeeze has run its entire course net short positions have already reduced by 20 percent since its peak april 3rd and we can assume that there are no more forced liquidations coming from funds blowing up so now whats next well as this rally gets faded and we get more data points of what the reality looks like after the pandemic or likely head lower as the market is hit with a wave of insolvency its never seen before unless fiscal policy moves quick enough to support the markets and broadly implement stimulus to jumpstart the economy before things snowball out of control. The u. S. Treasury is now prepared to ask congress for a further 250000000000. 00 for the Small Business Lending Program increasing the total size of the Payroll Protection Program to 600000000000. 00 as banks have been overwhelmed by application already since the Program Began operating on friday the fed has moved to bolster these p. P. P. Loans by allowing the banks to turn those loans over to u. S. Central banks for cash this will ease concerns among the banks about getting Stuck Holding low interest loans and encourage banks to make loans under the p. P. P. So if that sounds familiar to everyone this program is an exact repeat of the arrangement the Us Government has had with the mortgage agencies like fannie mae and freddie mac. And now finally as we turn over to the oil front the w. T. R. Is down another 2 percent today as we wait for further guidance out of saudi arabia and russia ready sources reported that they are meeting on thursday and are likely to agree on a Production Cut but only if the u. S. Joins the effort without the us there will be no deal other countries mentioned by opec to collectively reduce production include canada and brazil. Kristie i thank you for that analysis but from our we are now joined by editorial director of the American Institute for Economic Research Jeffrey Tucker and she started just above a trading target of a horowitz gentlemen thank you for joining me today markets seem to be rallying a little bit at least for now jeff i want to start with you will we see more fiscal policy being rolled out in the coming months and when will we start seeing its a fax actually taking hold what kind of policies should we really expect to see. Theres no chance for there to be any stimulus so long as the economy is basically closed i mean i dont even know what that means what are you stimulating i mean right now weve got Grocery Stores opening open and essential what the paul Political Class calls essential businesses but theres stimulus can have no effects long as this is the economy is not opening right now markets are rallying at the slightest hint of liberalization and in the last 24 hours we saw a little bit of that some opinions change in some editorial writers begging for a smelt in the us and that gave a little bit of optimism to the markets that are desperate like. Water like a person starving in the desert so thats giving a little bit of. Buoyancy to the markets but but theres not going to be any stimulus at all in till we see markets open and they can they can pass some of the trillion dollar stimulus package and 2nd make any difference into the markets reopen a lot of them are looking at even the danger of even more hyper inflation when were already seeing now but a lot of like the fed the government still making these moves toward i want to ask you which country do you think is best positioned during this pandemic to it to recover quickly more quickly and even better and sooner i guess you could ask. Good evidence for us and the United States is the best country thats going to recover i mean we were in reasonable wroth although we were in the early stages of a recession we still have the greatest opportunity to grow and were going to were going to come out of this just fine and when its all said and done well get back on pace again weve still got this recession to deal with however its being forced to be quicker based on the coronavirus so a lot of these things are going to shake it out but the stimulus is not going to stimulate the economy but it is going to keep people off the unemployment rolls if they can borrow the money and it will continue to keep Grocery Stores in amazon and countries like that selling goods so i guess. Its ugly its a bad situation it will get better and we are by far the best equipped to move forward once its over when the problem is that once its over even dr fox he said on monday that there will be a new normal that there will no it will never be the same essentially but todd there is hope on optimism and optimism that the curve is as potentially starting to flatten but the real challenge begins once we reopen the Economy Markets right which is the cleanup and the rebuilding after the fact what lasting changes do you expect to see after this pandemic is actually passed. I mean 1st of all of you do you treat this like a war which is kind of what it is we will grow we will grow quickly and Strong Companies will survive and make a lot of money but i think the biggest problems are going to see is getting back into theatres concerts sports venues you know theres a lot of employees there that their whole lives depend on working in those venues and those venues are not going to come back for months of not year or year i mean were not going to see full house stadiums with 60000 or 100000 people there so thats the 1st thing were going to see and the lack of people going to rust runs crowded bars those are going to be a long time in coming before we get people to go back there because were going to still keep our social business and until we have a solid vaccine and we have a better understanding of what this is which is probably no more than the flu once its figured out is that well get back to normal but until then its going to be very cautious and proceed with caution and i think all the venues are going to proceed with caution as well which means that were not coming back quite so fast when it comes to the big thing and even once they open the not so big things restaurants well even traveling getting on a plane that does somebody want to sit that close to someone when youre stuck in the middle seat for over 6 hours of during a flight but jeffrey i want to ask you this now the fed is moving and saying that theyre going to announce. Announce more details about. The s. B. A. Loans to Small Business loans administration loans the new term technically the finance arrangements for a long under that p. P. P. Program right now these loans are essentially theyre there when theyre giving back to the banks with cash but theyre the central bank now what do we expect them to announce later this week. Look heres the irony of this for 10 years the regulators have been telling banks be more careful be more cautious do your deal do Due Diligence dont be throwing money good money after bad and so on and so now the regulators are expecting banks to ramp up loan applications from you know a sows on a month to a 1000000 a month its not going to happen they can bribe or stamp this stuff but they also run a real risk that once this economy reopens the regulator is going to come after the banks in the banks again for being reckless just like they did in 2002008 so this is not the banks are not going to be just ready to go along with this and ultimately the liability is borne by the banks both in terms of the financial liability and the regulatory liabilities so you cant just like convert a regime from being extremely strict to being outrageously liberal overnight because a few politicians want it so i dont you know washington can order these things the fed can order these things but ultimately it comes down to the local banker and their Risk Portfolios and what it will and to accept and essentially its a loan on top of the law where the u. S. Central bank is getting involved in helping these banks so that they are still able to lend to these other companies for a higher Interest Rate so theyre not losing but thats all the time we have today gentlemen Jeffrey Tucker editorial director with the American Institute for Economic Research and todd horwitz from the trading thank you so much. Time now for a quick break but hang here because when we return well tell you the lengths amazon is willing to go to enforce social distancing for their employees plus we work we work filed a lawsuit claiming softbank is dropping out of a 1000000000. 00 deal and as we go to break here are the numbers at the close. This is a story of women women with troubled histories and complex cold cases you know some of those deadly leave the law who lives out there. Where not to believe the person that theyre accusing this in to be considered the most dangerous of criminals shes in a still. Well below 23 hours a day tell me that its not enough and it. Will do women on death row. City on. Its. Mind you know been in pieces no you can see them they dont know yet but i mean dont. Learn the missing mom because weve got to me im a strong. Family i dont. Think. Its. Very im certain. Part. Of the baby had a fever of 38. 00 so point 30. 00 were hoping thats. All ok. More problems for amazon as the company is reportedly now warning employees that they could be fired for violating social distancing rules now amazon has reportedly ordered workers at warehouses across the country to stay 6 feet away from their colleagues among other protective measures in order to limit the spread of the coronavirus the facilities that make up amazons vast Logistics Networks vary in size and headcount depending on their function some fulfillments others are the size of 26 football fields and employ thousands of workers making it challenging for amazon to ensure these social distancing rules but is there more to the story well joining us now to go deeper into the ticket of reporter and boom bust cohost ben swan ben why is amazon taking the step right now. Well look amazon would say that theyre doing this because they need to protect their workers and look out for them in terms of the covert 19 and prevent it spread right by instituting really by an incredible use of force social distancing guidelines theyre not even rules they refer to them as rules are not rules or guidelines but amazon says if you violate them will fire you but the real reason i think amazon is doing this remember sarah is that it was just what last week that we saw amazon make headlines for firing a warehouse worker in stanton island new york as it was chris smalls and chris mauls remember this this guy organized a walkout saying that amazon was not protecting workers amazon fired him and then said oh it had nothing to do with that that walkout that he organized even though they fired him the same day they say it was because he was violating the social distancing rules and were read to you the statement that amazon has made about this they said quote we had some instances of employees intentionally violating our clear guidelines on social distancing at our sites which in danger is what the individual and their colleagues we are taking intends measures to ensure the health and safety of employees across our sites who are performing in the central role role for their communities during this crisis what this looks like to me is that amazon messed up by firing this guy the same day who organized that walkout they said they did it for that reason and now theyre trying to play a game that we would refer to as see why a in order to say no its not just him we do this with many people so now theyre trying to make up for some of their mistakes that they made last week even not reporting when i remember we discussed a ban on employees that were infected with the virus but one of the concerns being voiced by these employees is that while there are these rules being put on the warehouse workers theres also concern that they will not be equally applied to that Warehouse Manager is that true yeah oh thats thats one of the Major Concerns here because it seems like these rules are being focused on warehouse workers in fact some of the statements coming from ems on a kind of strange saying things like we saw people gathering around a water. Cooler at one point to talk to each other and they werent 6 feet apart and those people would essentially be eligible to be fired under this guideline but theres no rules about managers approaching people talking to him again so you made a really good point there and i dont want viewers to miss it amazon is the same company that has had 10 different sites where house sites where people have tested positive for covert 1000 they have coronavirus and the employees at those sites were not notified notified by amazon nor were they notified by a manager they found out because of facebook posts they found out because of local news reports so amazon has not been forthcoming with employees and for them to now turn around and say we are so concerned with protecting the ploys that will fire you if you get too close to another employee this thing just stinks it smells like an attempt to again cover up the fact that they fired some employees for organizing and walking out and so theyre trying to protect themselves by saying you know it wasnt an isolated case and maybe its also being done to prevent other workers from organizing in the near future if thats the case they should be fair across the board and also apply to managers and everyone working there will be one of the best cohost an Investigative Reporter thank you for your time sir thanks. For the trouble of co working at start up we were is suing the companys largest Investor Soft Bank for withdrawing its 3000000000. 00 tender offer a legal journalist molly barrows contributor with americas lawyer joins us now with more on the lawsuit softbank controls we work now molly what is the basis of we works claim here. I dont know that they really have much of a legal standing i mean thats just my opinion clearly they think they do they filed this lawsuit but basically the gist of it is hey you backed out you violated our contract and you know i think we worked our rather soft banks position is that we dont want to dig ourselves into a hole any deeper than we already are it was already a mistake i think the c. E. O. Of the tech giant out of japan was saying to even attempt to invest. Originally. 9000000000. 00 so this 3000000000. 00 was going to go towards if that had gone through towards shareholders itself paying employees and some of the money was also going to go to buy back shares from the founder and former c. E. O. Adam newman who has certainly been the center of controversy but basically soft bank said theyre pulling out because of civil and other criminal investigations into the company for a variety of other reasons but that was the reason where we work said were not buying it you should have done the and here we are well what damages is the Company Actually seeking i mean what happens to we were going forward. Yes and so i think that is the big question isnt it they were the darling of wall street now theyre pariah because the businesses continued to fail and basically again the c. E. O. Of soft bank said that he felt like he put too much trust in the entrepreneur of the founder adam newman who started this because thats what this investigation is about you know well the answer your other question they do want to can but they want the deal to go through thats what theyre asking for because they need it they need it to restructure their debt and what will happen is that bank has remained committed to this company theyve already poured 5000000000 to help them with their debt as it is they said customers employees are going to notice a difference we work a saying that our smaller shareholders d will because this by backing out of the deal theyre not going to have liquidity for those smaller shareholders but basically adam newman is the focus of some of these criminal investigations at least by the a. G. Of new york the Attorney Generals Office who are self dealing buying properties then renting them back to work he also plan to charge them 6000000. 00 because they were going to rebrand the company to a different name and he wanted to charge for that name the use of that name so it looks as if adam newman was part of the concern that softbank had even though hes no longer heading up that ship if you will theyre going to keep the money that theyve invested they said again customers employees wont notice a difference but it looks certainly like they are backing out of this deal sarah and i dont think what works threat of a lawsuit is really going to affect them they said it wouldnt especially now during these times or in the pandemic i mean its affecting a lot of a lot of companies but we work is one of them as well it but it still seems to be receiving a vision fun like you mentioned from softbank of millions of dollars for aids so just because they withdrew is doesnt mean that theyre not still helping the company but well see where where i am far this lawsuit will go really barrows contributor with americas lawyer thank you so much for your time. Thanks sarah. Showing an ounce to plans to launch a 2nd unmanned test flight of its c. S. T. 100. 00 starliner crew ferry ship now this comes after the initial flight last year encountered so. Offer glitches that prevented the capsule from reaching International Air space boeing said the mission will allow the company to complete all flight test objectives and evaluate the performance of the 2nd starliner vehicle at no cost to the taxpayer adding we will then proceed to the tremendous responsibility and privilege of flying astronauts to the International Space station now going said that it will pay for the reef flight and set aside 410000000. 00 earlier this year for that the starliner is part of nasa as commercial crew program to allow nasa astronauts to reach space from american soil now that fly is expected to take place later this year in the fall possibly in october or november well thats it for this time but you can catch boom bust on demand on the brand new portable t. V. Out of a long smartphone through google will play on the our full app store by searching portable t. V. Or stream us to your t. V. By downloading the portable t. V. On apple t. V. And online a portable dock t. V. And as always check this out on youtube dot com slash boom bust party see you next time. City on. How. When you dont think this is know you thought it sunk in so then they dont know yet but i mean dont. You love the. Missing mom because weve got to me im a strong. Family dont you think some emotions are. Very uncertain. And the baby had a fever of 38. 00 so point 30. 00 were hoping thats. What is the difference between embarrassing gaps in elder abuse joe biden certainly excels at the former and maybe is the big name of the latter we are told mention of Mental Health is off limits to what degree does the public the right to know. Join me every thursday on the elec simon chill and ill be speaking to guests of the world of politics Small Business im show business ill see you then. The so. We ought. To be. As talk of a new task force to get the u. S. Economy rolling again what will that look like when might it starts all on this edition of politicking. One of the politicking on larry king reporting from my home oh im older than most angelus the trumpet ministration as you know that creating another task force this winter we started the u. S. Economy in the cold in 1000 epidemic or pandemic subsides someone whos written about this very subject is philip k. Howard no time in jail or on Us Government legal reform and share of common good