Transcripts For RT Boom Bust 20240713

Indices in the dow s. And p. 500 tech heavy nasdaq all fell by at least 1. 5 percent but turn positive hitting session highs in the final hour of trading markets were initially pushed down by more bad news in the u. S. Job market as the Labor Department reported nearly 3000000 new jobless claims for the week ending the 8th of march now this brings the total number of unemployment claims in the u. S. To more than 36. 00 a 1000000 over the last 2 months due to the coronavirus pandemic now the Unemployment Rate in the country is now over 14 percent now it has been a rough week for u. S. Markets on wednesday alone the dow dropped 2. 2 percent the s. And p. Lost 1. 8 percent and the nasdaq which had been having a really nice run fell by 1. 6 percent this market turmoil is also comes as the u. S. Federal reserve ward of a prolonged recession dashing hopes of a quick recovery for the Worlds Largest economy and joining us now to break down what is going on in markets is boom bust cohost Christine Christy im not going to waste any time here what is happening with markets today is that volatility that had kind of subsided is it back. Now i wouldnt say the volatility is back to where it was before we had those wild swings in both directions of like 2 to 3 percent a day are opposite directions i think actually were past the point where oscillating wildly trying to find a bottom because before that was just so much uncertainty on the future outlook one day its terrible and the market gets oversold the next day of bounces back on optimism and speculation that the fed is going to come save the day but there wasnt any real data points to work off of back in march so the only relevant comp to look at was china so every single model that was put out was based off of how chinas recovery actually looked like but now here in the u. S. Were about 5 months into this and were actually getting real data points here with unemployment with j. P. Imports exports p. M. I. All of that all thats new so are staying at the market is consolidating after just kind of floated up 30 percent on optimism and fed spending so weve had a lot of Government Support this time around we asked for stimulus and we got it so now the fear and the market is gone at the fed one just simply and let everything fail so thats why were not going to get that violent drop again at the equities popped on the real snappers and now were getting that real data saying that the reopening may not be as easy as it sounds and things are just going to go back to normal overnight so all of these names are now getting checked by the new reality and investors are trying to find out where that new reality looks like where that new valuation is in every single sector in this basically new normal that were living in now and of course through the Banking Sector including bank of america j. P. Morgan chase wells fargo and citigroup they all helped push markets up on thursday posting substantial gains by the end of trading why are u. S. Banks doing so well today. All i want to know theyre doing well today theyre just catching up today the financials and Banking Sectors have been one of the new wars performance like this in this entire selloff in the bank and that is still down about 45 percent this year including todays rally and that kind of wiped off a combined 800000000000. 00 and in terms of Financial Sector a quicky valuation from its constituent so its still down about 14 percent compared to the overall s. And p. And nasdaq that ive become about 30 percent and though the u. S. Bank did add billions to the provisions for loan losses in the 1st quarter as we all during the earning more is to be expected and wells fargo is one of the worst performance among eggs out especially in the the arrow Interest Rate environment it is going to be very difficult to see how financials and do well if at all and of course you talked about these metrics that were seeing the real data that were actually seeing now due to the pandemic how concerning are these unemployment numbers as we talk about a prolonged recession due to the coronavirus. Well one of the most disturbing things is that there are far more americans filed for unemployment than the jobs gained during the last decade since the end of the Great Recession so we just kind of stuck took a giant normal step back and today we came in worse than expectations as you mentioned just like we had the previous 6 weeks now with unemployment sitting at 14. 7 percent so now if we look at comps again to get a baseline of what happens at the end of the tunnel you look at china and it took china 2 months to get production back to even half capacity and now consumption still remains sluggish over there so lets just say for the sake of argument that the quantum bias is gone tomorrow and there will still be a noticeable most of a difference in disposable income consumption and savings behavior stemming from unemployment and consumers they will be more inclined to say creating this very vicious cycle of sluggish demand all of cross the u. S. And globally. Now kristie we have another story we need to get your take on the 1st lets bring in boom bust cohost and crypto analyst ben swan and now theres a huge story in the cryptocurrency world as telegram has announced that it will officially abandon its turn network in the graham cryptocurrency no telegram c. E. O. Pavel bure of announced monday that the company is calling it quits on the Telegram Open Network or tone as we just mentioned the late gram tokens thanks to a lengthy battle with the United States s. C. C. Give us a quick background of telegrams krypto project and its battle with the f. C. C. Yes intially telegram which is this massive encrypted messaging service many of you out there know exactly what this is used all the time and now instant 2017 they were going to raise an about 1700000000 dollars to an i. C. A. O. An initial Coin Offering a lot of people were doing it at that time that this was such a nasa of i. C. A. O. Was for one time at one time the largest i. C. A. O. Done by anyone it was later on overtaken by eos but in the meantime telegram was essentially trying to do 2 things and one of the things was to create the tang network the Telegram Open Network and then also the gram cryptocurrency as you mentioned the problem is that the s. E. C. Started fighting them in 28000 the f. C. C. Was claiming that this was a violation of Securities Law and then in 2019 began to find them and try to crack down on them and then in october of 21000 a judge ruled against telegram essentially saying that this project could not move forward and that they had violated the law not just in the United States but that the project cant move forward anywhere in the world because u. S. Users and investors mice tried to still access those that graham cryptocurrency and so as a result of that tom is now dead in the water a telegram announcing that they are no longer going to pursue this project because they say that the u. S. District court judge didnt just shut down the project for the u. S. But has blocked it for the rest of the world and thats not just a shocking thing its a pretty scary thing you know kristie winter off announce that telegrams 10 Network Project was over with he said that american courts shouldnt have the power to stop the sale of crypto currency beyond u. S. Borders is that what happened here as ben was just kind of mentioning there. Absolutely that was essentially the ruling judgment that apparently there might be might being the operative word a u. S. Citizen might find some way of accessing the ton platform after it launched even if its launch in every single country and every other country in the world except news and everything so this actually creates a very very dangerous precedent right now because it shows that the u. S. Is willing to just block and put a giant robot when it comes to finance a technology and being the worlds superpower right now it does currently have the leverage to do that so thats kind of where stand on this that the u. S. Judge is right about one thing that everyone is still dependent on the u. S. When it comes to finance and technology and so this is came as a surprise and its very disappointing how backwards the u. S. Is when it comes to corrupt us actually when you have countries such as japan who has declared that big quiet is just as good as now one of the reasons i think is that the ground was meant to be a currency not just of security and this was supposed to be out of the s. E. C. Jurisdiction and at the time the as then mentioned this is one of the biggest i. C. s with the largest influencers groups aside from libra so if this actually took off this would have made been a tremendous threat to the current currency structure as we know it but i thought it telegraphs oh i wouldnt say i was going to say but it kind of bizarre if you look at the way the United States laws are made up in the 1st place where you have states who have their own jurisdiction so state the state it changes a lot of what laws are changed i mean if you look at you know the cannabis industry here in the United States in some states its legal some states its not so for them to do this on the world stage and say hey you guys can have this legally because americans might have the opportunity to do this how do the far the authority there. Well they dont have the authority to do that its simply just like the money its a fee order that says we have the authority to declare that people cant use this service and cant access this crypto currency in christie that made a very important point there which is that this currency this gram crypto currency is a real threat because it was not a security it was an actual currency that was going to build on telegraph network and remember telegraph was essentially doing the same thing that libra was later trying to copy them and do through facebook which was to create this peer to Peer Exchange and were going to bank the Bank Telegram was actually do and i apologize about that it looks like were having some technical difficulties with christi and ben so christi and ben swan bus cohost thank you so much for your type. In the World Health Organizations chief scientist says it could take up to 5 years before the quote a virus pandemic is fully contagious during a conversation with the Financial Times global boardroom dr sonia swamy nathan added a vaccine could be the best way out of this dire situation but questions remain so lets take another global look at the trends and spread of the current of virus with r. T. Correspondent sites have a day or so tell us where we are in the u. S. As states start to reopen sobran there are so much political pressure ad the moment you were started there kind of me and released people from isolation and law President Trump on monday claimed that all throughout the country the number of new infections were in the creasing well that clashes with a leaked White House Virus Task force report that shows that some will areas of the u. S. Are actually seeing infections spiked by more than 1000 percent in a week yet states are rushing to reopen after lock downs but Public Health experts warn that new surges could trigger a 2nd stay at home orders of course its not get clear if lawmakers from states that are revolting who i might add were slow for the most part to lock down the 1st place whether that we willing to set another lockdown if cases do in fact search so looking at this map right behind me now these are hotspots where in more mostly populated cities like Seattle San Francisco l. A. Denver dallas houston chicago moving on to the east coast like atlanta boston of course new york where it all started and what i want to break it down for our viewers and 3 different categories so 1st we have here where new in new cases are increasing and now these are among the areas. The largest spikes reported and there are states like montana south dakota arkansas region and maine then we have states where cases have actually remain the same and these are so these are cases where the states are reporting the same amount of cases as the prior week in states like oregon california texas florida and but there is no point that i want to make so whereas big cities in texas like houston and dallas are seeing the same growth rate as in the previous weeks smaller cities like amarillo recorded an enormous 650 percent increase in confirmed cases compared to the previous weeks so sometimes the new cases remain the same could be a positive but thats not always the case because you have to count every small city in that state lastly we have new cases were new in states where new cases are actually decreasing we have places Like Washington idaho. Arkansas wisconsin where were seeing the state is actually has come out of the lockdown where theres a lot of videos emerging with full bars and the governor putting everything back to normal and new york pennsylvania and georgia so in these states were actually seeing the number decreasing brett. Looking at it globally and lets take a look at the mortality rate when it comes to these countries how do they compare it well thats a great question because one of the most important ways to measure the burden of covert 19 is mortality and countries to rob the world have reported very different. Ratios now for example if you see usa which has over 1400000. 00 cases there were tallied the rate is about 6 percent versus the u. K. With over 233000. 00 cases what their mortality rate is for. 4 percent and russia thats really climbing up the list is our mortality they are less than one person which theyre contributing to wide testing and then we have countries like france that have over 878000 cases and their mortality rate are the higher 15 point one percent so this is really paints a picture of whats going on when you take it when you compare the top 10 nations that have the most cases brant r. T. Correspondent side tablature thank you for keeping us up to date. And as a reminder you can always find the latest news and information regarding the quote of virus on portable t. V. As credible as tracker its time now for a quick break here because when we return the movie industry has taken a big hit in the midst of the coronavirus outbreak straight ahead we get some insight from an industry analyst and as we go to break here the numbers of. The old. And the 1007. 00 days i recall supplemental advertising was illegal you know like soft drink companies would run. So fast in the commercial of somebody you know what it does or. Just mine and. All all communication. Me. Im going to member. Lead. Him to earth do we. Really. Mean you. Are going to how are you going to protect. You and. Where theyve been able to x. Private information on the cell phones and see if you have crossed off. And if you are. On to somebody. Or are in the same city. 54 jets and more than 1300 military personnel are headed to heal some air force base in alaska where is that to say come on ill show you whats the reason for any type of enhanced u. S. Military presence in this area russia. What is it suddenly about the South China Sea that makes it so coveted 11000000000 barrels of oil. Take a look at this map who really owns what kind of says no it belongs to us india says no we claim that that belongs to us both of these countries have Nuclear Weapons capabilities there is reason for concern so thats why were going to drill down on this story for you today right here on the news with rick sanchez where you know as we always like to say we do believe by golly its time to do news again. Welcome back as the pandemic is causing many to stay Home Television ratings are up but revenue for advertisers is spiraling downward and now Many Companies are looking to take advantage of a new out in their contracts with networks are to correspond it natasha sweet has the details on where the money is going. Some of your biggest advertisers for Television Networks are cutting their existing deals pepsi General Motors Dominos Pizza General Mills are just some of the major Companies Looking to take advantage of an out in their contracts as of may 1st companies have the option of canceling up to 50 percent of their 3rd quarter ad revenue spending and now ad buyers are estimating that up to 1500000000. 00 in commitments could in fact be. Cancelled insiders say this out if you will has always been in contracts but taking advantage of it is almost unheard of but the future of the pandemic a known owners of the Major Networks are concerned over what the future spending could look like all the revenue for long term ads are down the last minute opportunity buying when Companies Purchase ads closer to the air date is also reportedly low by a com c. B. S. Chief executive bob baucus calling Quarterly Earnings on a call this week quote not pretty amc networks caution an ad revenue could drop about 30 percent but its not to see these companies in key and categories like automotive pharmaceutical food and beverage arent spending some are taking their business elsewhere like facebook and google mexican food chain to pull a is just one of many looking to shift their ad dollars into streaming videos on social media chris brandt to police chief marketing officer saying weve seen a lot of great returns with facebook and instagram serial jayanta General Mills also transferring some of their t. V. Advertising investments into digital video and ecommerce well some of these Companies Set up their ad contracts with networks well in advance its certainly not business as usual during this pandemic as of right now fox is the only Major Network to release its fall lineup the future of ad spending could decline or shipped all depending on how the economy reacts to the effects from the coronavirus reporting for boom bust natasha sweet r. T. And for more on this in the pandemics impact on the Entertainment Industry we are joined by senior media analyst with com score paul bigger beauty and paul i want to head on that last story from natasha 1st viewership has been up since the start of the pandemic but value for advertisers just isnt there how big of a deal is this for the Big Media Companies to lose these dollars from advertisers. Well brant i think everythings been sort of turned upside down and with so much fragmentation of the audience meaning people are watching a lot of streaming theyre watching content everywhere theyre getting content on their social media platforms its giving advertisers a lot more options as to where they can put their products where they can get those messages out to people and with the pandemic right now its kind of turned everything around and well be getting this of course and in a minute or 2 its changing the landscape of Movie Theaters which also is related to the whole streaming. Explosion right now because people are at home but theyre watching a lot of Different Things on a lot of different platforms this is a big deal but i think like with so many things going on right now its unprecedented whats happening because of an unprecedented situation causing things to change in a way nobody could have foreseen and no want to shift it to the movie industry here as you said oh how big of a hit is the closure of these 3 theaters for studios where to get on last week actually mention many of them a bank on finnick ation rights you know for big shows like friends and science feld rather than the box office draw what are you seeing here. Well most certainly in mid march we saw a pause button hit on the Movie Theater because the protocols were in place that was stay at home orders and all that that the Movie Theaters really had to close of course thats not good news for the Movie Theaters but it was great news for streaming because people were literally stuck at home and they need content but the Movie Theater will be back and when it does i think people are going to be really anxious to go back but for those who think that maybe streaming is going to take over the Movie Theater is something of a bygone era i think thats completely misguided you look at the drive in Movie Theater right now. And people are going they want to get out of the house theyre going to drive ins this is true in north america its true in germany all over the world people are embracing that communal big screen experience but most certainly were going to at the end of the year have to put an asterisk next to the Box Office Numbers because the box offices. Really it had a stoppage in mid march were hoping that in july 10th it can open if things are safe and audiences feel secure going back to Movie Theaters i think theyre going to be really excited to do that but tenet thats the 1st big brand new movie that everyones waiting for and if the date shifts so be it often movies are going to be beholden to the social distancing protocols and the requirements of any given city state or country and i mean i know Christopher Nolans really pushing that new film to be the 1st big blockbuster out of the gate and we know that everybodys moving towards the streaming right now but weve seen a lot of these pushes where you saw the trolls movie which weve talked about quite a bit here which is right of changing that for Universal Pictures but also now you had disney plus they Just Announced what that hamilton is coming right to disney plus the obviously you dont get direct revenue besides the right drivers off of that but this is going to change things and when they see people watch that and in the next 18 months when people may not be so ready to hit those Movie Theaters dont we look at that and say this could be a lasting effect. Yeah i think there is a natural tendency to say look if theyre moving some of these movies to streaming and they can do well financially with them why they just do that for every movie people would love to have brand new movies in their home but the exclusivity and prestige of the 1st run the actual release is super important and the whole idea that the actual window is to instill that idea that he this is a different kind of movie this is a film that youre going to come home from the Movie Theater and youre going to want to preheat purchase it so that you can watch it at home down the road but of course films like the trolls movie and scuba and family films i think what the studios are trying to do is just give families with kids something brand new that they can watch in their home i think as bob shape back said from disney its on a case by case basis and lets face it if you have a movie that has a 200000000. 00 budget i dont see how you could ever earn that back with streaming alone and thats where youve seen a lot of big movies waiting for the Movie Theater to come back and a lot of big films being pushed not only to the end of 2020 but certainly in the 2021 day i think we wont know the lasting effect and if this does happen to go by like weve been talking about that 12 to 18 months we dont know what the future is going to hold we could talk about this for hours paul paul there in a calm score thank you for if i will have you back. Brant thank you for sure i appreciate it. And finally while the super rich have access to resources that allow easy travel amid National Porn teens many countries have closed their borders to stave off infections even for the wealthy for them restricted travel could mean more than just last time globe trotting it may mean new complicated tax issues from declaring residency and high tax places most laws require individuals to declare residency when they spend more than 6 months living in a city or town while the i. R. S. Recently extended its limit to declare residency by 60 days this may not be long enough Simon Goldring a partner at a london based law firm said its not coming to an end anytime soon adding theres going to be people stuck in different jurisdictions who inadvertently become residents there so while the rich may have yachts and planes it looks like their ticket to low taxes will require complicated paperwork rather than high ticket travel and thats it for this time you can catch us on the brand new portable t. V. Apple billboard smartphone through google play and the Apple App Store by searching portable t. V. And as always you can check us out on you tube dot com slash boom bust r. T. See you next time. Descriptions sound appetising even so the owners so how to choose industry is telling us. More face time when they want to sound the most necessarily good for the terms of may not be. People believe we have the utmost. Have you know diabetes and arthritis they have auto immune disorders they cut allergies we are actually creating these problems its a huge epidemic of problems all of them i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pets last treats the larger corporations are not very interested in proving or disproving the value of their food because theyre already making it a 1000000000. 00 on it and theres no reason to do that research. And this is the problem in studying pandemics you dont know until you know its easier to be reactive than proactive but i hope were entering a new renaissance here only really more news to show us that this is a vitally important problem. Workers versions employers businesses vs the government consumers versions all of the legal aspects of the code the 19 pandemic on this edition of. Welcome to politicking on larry king according to market watch nearly 1000 federal and state lawsuits already been filed in relation to the cole the 19 pandemic so what will Legal Protection for console or and employees look like and how will lawsuits against governments for force closings play out for analysis im joined by Vinnie Politan am leaving anchor for called diva