Transcripts For RT Boom Bust 20240712

Without support bankruptcy in the next few days the fate of germanys Largest Airline rests in the hands of its shareholders we breakdown new founds a bumpy ride apple is also looking to switch to self sustainability as it plans to ditch intel chips in favor of it so we dig into the details of the move and the latest innovations from the tech giant with a packed show today so lets go into it right in. And we begin with the big news from the Airline Industry as weve peers set to receive a 10000000000. 00 bailout from the German Government now this bailout package had been held up for several weeks as the airlines largest single shareholder drop his opposition that shareholder billionaire businessman herman thiel had been threatening to block the deal as recently as last month his opposition though has faded as has found itself in a dire situation. The airline lost 10300000000. 00 in the 1st quarter of this year at the companys Shareholder Meeting on thursday lou lou thousands of board chair carl loued with clay warned that voting against the deal would mean taking a big risk. We have run out of money to this day we live on the reserves we set aside during the good years but soon we will have used most of it without support the looms in the next few days so the chairman also addressed the terms of the deal which include the German Government taking a 20 percent stake in the airline. Yes its firstly the states stake serves only to stabilize. The states quickest possible withdrawal one stabilisation has been achieved as part of our common business basis secondly there will be no political intervention and lived this business and thirdly the company will continue to meet its responsibilities to all stakeholders for the shareholders the employees for the customers and also for society and the environment. To take a deeper look at this situation lets go ahead and bring in boom bust investigative journalist ben suad now ben on the news of this deal with the shares soared why did more markets actually react so strongly to this news. Well the biggest reason they reacted strongly to it is because without this deal. It was essentially going to be insolvent within a matter of days as you heard in that sound bite there who they were really days away from this just to give you an idea of what this deal consists of as you said its about 10200000000. 00 in terms of a cash infusion into the company but it also allows for 20 percent stake by the government and 2 of the board seats after be given over to the German Government as well now weve heard the German Government say theyre not going to be long term in this that theyre going to get out pretty quickly or soon as they can after everything stabilized but i think theres a serious question here about the issue of picking winners and losers i mean when when government steps in and puts in a huge bailout package for an airline and obviously its a Huge Industry but they are putting in this infusion for one airline and then youre saying were going to take part ownership of the company that doesnt apply to every business that suffer and it doesnt even apply to every industry thats suffering so when you take this kind of extraordinary step i think other industries look at it and say well why did they get this kind of a deal and we dont know ben we just talked about obviously them being on the brink of bankruptcy losing 1300000000. 00 in that 1st quarter of 2020 so so how bad have finances beyond that been for the company and what does this bailout mean in terms of Government Intervention yeah just to give you some numbers here in terms of whats happening here so the company lost about 1300000000. 00 as i think you mention in the 1st quarter of this year 1. 3 1000000000. 00 is what they had lost but they were at a burn rate of going through about 1100000. 00 every hour thats how much they were losing at the point of this intervention has come so you mentioned at the beginning that that the single largest shareholder for the company heinz or herman theo essential had not wanted to do that he was holding off to do this that essentially did not. The Government Intervention nor did he want government to take those board seats and get control control of the company but at the burn rate that was essentially losing money they found themselves in a position where there was really no choice here but when youre losing 1100000. 00 in cash every hour youre not going to last very long so i think when you really put it into those kind of projections and then you look at the fact that corona virus has reemerged in a number of places it may mean that the Airline Industry has an even further protracted slowdown and an even longer delay before its able to come back and thats ultimately a death sentence for an airline like with onza and you know when were talking about this even with the bailout the airline is actually looking at because of the crowed the prolonged nature of this coronavirus situation were still looking at significant losses in jobs and cuts totally correct. Yeah thats right theres about 1300021800 extension 00 employees who work for this company and theyre looking at laying off at least 20000 people at even with the bailout that may still happen at this point so remember you know as Government Intervention comes with this it does not come with guarantees it does not guarantee that people wont lose their jobs it does not guarantee that the airline wont still become insolvent at some point now you would think when youre you know infusing almost 11000000000. 00 into a company youre giving it some for lack of a better term runway to be able to get through but i think its also important to remember that this money is also set up so that dividends are not paid to shareholders and executives are not able to take bonuses on any of this money. That investigative journalist ben swan thank you so much you got it. And u. S. Equities have been mostly stable throughout the day surging in the final hour of trading to stay green now most of the Forward Momentum is coming from big banks which have seen share prices pop thursday after u. S. Banking regulators signaled a move to loosen restrictions created following the last 2nd. In a crisis now officials from the federal Deposit Insurance Commission said on a call that they will ease some restrictions regarding the volcker rule now the rule was established in 2010 and essentially stopped banks from acting as hedge funds and making risky moves with their investments share prices for Wells Fargo Bank of America Morgan Stanley Goldman sachs and j. P. Morgan chase all of which are traded on the New York Stock Exchange saw spikes of at least 2 percent on this news for more on this date us markets and the economy lets go ahead and bring in boom bust cohost christine chrystia want to start with the volcker rule what does this entailed what does it mean to ease these restrictions. Like when you said earlier right now the volcker rule that was established it was established in order to discourage banks from apparently taking too much risk and bar them from using their own funds to make certain types of investments and speculative trading activities in order to increase profits but now were looking at which was an idea that was floated earlier this year this would allow banks to invest more of their own capital into Small Businesses and start ups alongside with clients so this will loosen up restrictions to allow banks to make a large investment in the Venture Capital and summer of funds while boyden have been set aside a bunch of cash for derivatives trades and would potentially free of billions and cap over the industry thereby enhancing liquidity which is something we all need given the economic slowdown so shares of all the major u. S. Banks were trading up more than 2 percent thursday after being beaten down with the crowd a virus which resulted in surging big falls on loans and last quarter the f. B. I. Scene is now set to vote on the what changes that would free up an estimate about 40000000000 dollars for the entire industry as its capital would then be used to help bolster other parts of the business that are being squeezed by code that chrystia want to do with banks here for a 2nd now were seeing some consolidation in the industry as National Commercial bank which is so largest leader by assets is trying to acquire rival some a Financial Group whats going on there. Well all the banks around the world are being being up by the screens and doing faults and right now as you rightly point out the start of consolidation is happening as all the banks have been weakened by the facts of coronavirus and the economic slump so this is a 15600000000. 00 to cover and this is likely to be the biggest banking takeover this year so saudi arabia has been taking steps in order to shore up its Banking Sector and in the double whammy its taking from both the slowdown in growth and also to Lower Oil Prices so the Saudi Arabian Monetary Authority has already unbelted almost 27000000000. 00 in stimulus packages in recent months in order to help but it seems like war is necessary in order to prop up their very well dependent economy especially as a former he has failed to materialize and no christo i have about 30 seconds left but we have so jobless claims reach to an additional 1480000 americans filing for unemployment last week what do we need to know and what does this mean for the average american at this point. Well back in early march and april there the americans were apparently sure that these jobs were and they were a temporary measure and so any job lost it would look a lot worse on paper than it actually was but the problem is right now that bounce that were pretty much pricing in thats not happening and right now topping 30 percent of americans didnt make the housing payments for june and missed payments our rates are the highest for rent terms and that has traditionally been a very strong indicator in the coming months because once you fall into debt its a very quick downward spiral from here so that means julys its going to get uglier and theres increased concern for addiction notices in the near months boom bust cohost christy i will follow up more on this in just a little bit thank you so much for your time. And you. Take a look at the Global Trends and spread of the crowbars with archie correspondents so are were we worldwide so grand right now there is more the 9500000 cases quoted 19 worldwide and pieces in latin america have also tripled in the past month surpassing 2000001200000 which are in brazil and almost 300000 of that in chile and the number of new cases in europe has also increased last week for the 1st time in months while india is almost surpassing the u. S. With new cases and getting to the u. S. I want to point out something that the u. S. Center for Disease Control and prevention said today so the c. D. C. Has been looking at and body tests done across the country to see how many people had passed infections that were not diagnosed at the time and now are reporting that the u. S. Has probably only counted about 10 percent of the people infected so with more than 2400000 officially diagnosed that would mean that another 24000000 americans have been infected also means that 90 percent or more of americans have not been infected and are fully susceptible to the virus so right now here in the u. S. At least 30 states are reporting an increase in cases out all of those 13 states of 13 are reporting a 50 percent or greater increase and then new cases are also trending down in 11 states while 9 are seeing steady numbers now specifically 4 states have said new records and these are california. Arizona texas and florida and brant these 4 states account for almost 30 percent of all the of 330000000 People Living in the u. S. So you can see. This would be so it would be worth some for some but 1st i want to take a look at california which was actually the 1st state to implement a lockdown and now has more than 200000. 00 cases and although the percentage up here of their positive rate seems a lower than other states at 7. 4 percent its important to know that just a couple weeks ago they were at 3 percent and right now theyre also reporting anywhere from 5. 00 to 7000. 00 new infections per day for more young people are testing more positive and then in turn spreading the virus to the more vulnerable population which does require to require hospitalization which is why hospitalization hospitalizations are also up 30 percent and because of all this surge in cases california is this is their land has also now delayed reopening which was set to open later in july now moving over to arizona which is also seeing their high as number of new cases plus its highest number of hospitalizations now their positive rate is at 23 percent which has prompted their governor to announce that the state would actually now repository anywhere you opening plans for the next 3 weeks and actually for the 1st time require people to wear a mask now testing has also become extremely challenging in arizona as theyre starting to get a real strain on the u. S. Tests testing system and move over to texas now they have a 16. 8 percent positive rate and if their current case numbers if they continue their numbers are soon going to rival bills in brazil and Texas Governor also announced today that hes going to pause any further phases to reopen the state plus suspend all elective surgeries and hospitals in 4 counties after houston intensive care unit started running out of available beds for coated patients and lastly i want to talk about florida which has reported over 5000 new cases for the 2nd day in a row why. Now florida is also one of the states that does not have a statewide requirement that mask be worn but with a 20 percent positive rate under testing many are urging the governor to reconsider so all in all simply put brand the us right now is not heading in the right direction our chief correspondent cited tavenner thank you for keeping us up to date. And time now for a quick break but here because on the other side apple is looking to switch to sustainability as it intel chips in favor of it so we dig into the details of the move and the biggest move the company is planning as we go to break here the number that put. Her. As the culture war d rages on if they did the billionaire class is only getting wealthier their wealth is iraq 20 percent or 584000000000. 00 since the start of the pandemic. How will this street become the country and is exterminate under the new normal. Secret prisons and usually what comes to mind when thinking about europe however even the most prosperous can be deceived within the 0 zone there were too few houses were allowed to leave prison and were located only see how you can fool head. Access to the story. Dealings of the secret service is what i mean. Justice. 54 jets and more than 1300 military personnel are headed to 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 that it 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. Thats geysers financial. They say money the balance. The budget these are this is the Central Banks are dying at the moment of the problem right now so i stopped. And welcome back earlier this week apple held its annual Worldwide Developers conference where the tech giant gently announces its latest innovations and the future of its. Technology d. C. 2020 was the 1st of its kind as it was held virtually as the pandemic continues to limit crowd sizes as was expected the company now through the latest updates and features 2 operating systems throughout its line of products including the i phone i pad an apple watch as well as new features for the companys wireless air pods but the biggest headline out of the conference was apples plans to cut ties with processor giant intel in its mac line of Computers Apple says it will start using the same chick uses in mobile devices to bribe Processing Power for the next generation of facts on the news apple stock has been up this week while intel actually lost more than 2 percent on thursday alone so lets take a look at this new wave from apple with carolina mellon s. C. The founder and principal analyst with heart of tech carolina thank you so much for joining us today of 1st question i have here is how big of a risk is this for apple to step away for one of the leaders in the processing sector. This is you know a Long Time Coming as you pointed out and. You sure in your own hands with expertise. Over the past 18 years we need to remember. Barack ships. We watch. Didnt so you know. And a lot of expertise to be able to make this a success and now in an interview with p. C. Gamer publication a former engineer at intel actually said the decision has to be about all of the bugs in the companys sky like processor infrastructure now is this actually going to be a concern moving forward for intel as you know they sell chips to pretty much everybody. Now i dont think thats the case 1st of all i really think that for thinking about risk for a long time and. Its about making sure that the link between basilica and the o. S. The operating system and hardware is becoming more and more important and hes part of how you deliver and use the rest areas to your users that is unique to you and so being in control of that its become more important over time and you seen others like mike just of taking some steps in customizing chips as well. That the steam market is not being the keening for a few meters now and you know they just centers is where they are cooler or revenue is coming from and where maybe you look at continued growth and now when we talk about debbie w. D. C. That happened earlier this week what announcements at the show caught your eye. There was a lot i think if i look at trends rather than individual announcements for me there are a couple of things that are really indicative of where our all is going one senior real focus in trying to make it easier for i phone users to build the bear. To be out more ecosystem with our products and so the act not just the with the shift to but from the trauma User Experience perspective and what were trying to do with us and the ability to have high us so i phone apps run it it really on a mac is really trying to build the. Ability for consumers to move up and so now you know for many years we always about offered this tool for an instant running windows 2 and not running matter less and now are pretty strong shift that discourse if you like to not moving from a p. C. To a man from an i phone to a match and i think thats you just are at the opportunities that were bringing to our Mission Share fascinating stuff of course i. Phone users who are waiting for the next model probably have to wait till september to hear of the latest announcement carolina mellon s. C. Well have you back soon founder and principal analyst at the heart of tech thank you so much for lending your insight. Thank you. And sticking with the tech theme here microsoft announced monday it would be shutting down its Live Streaming platform mixer and attempting to move viewers in broadcasters to Facebook Gaming now microsoft has been struggling to gain market share in the streaming space over the last 3 plus years against competitors like amazons twitch t. V. In googles you tube gaming now mixer will officially start redirecting viewers to Facebook Gaming starting on the 22nd of july but we want to talk about this so for more on this and some other uses of the video Game Industry lets go ahead and bring in entrepreneur and video game analyst used to enjoin and who is also the author of one up creativity competition and the Global Business of video games use thank you so much for joining us today now i want to start with this mixer story we know microsoft pumped a ton of money into the platform integrating it into x. Box obviously theres promotion but they really also spent a lot of money getting the exclusivity deals with streamers some of them who are at the top of their game like ninja enshroud who received as much as 30000000 and 10000000 respectively to move over when they were tapped in from twitch dot t. V. So was the mixer experiment just a huge failure from microsoft. Thats a good observation i think you make a lot of sense when you compare them to the other microsoft. Likening they also experienced mobile they were too late to the game and they spend that much money but doesnt really get to market should they need to be clear whats different this time around is that Richard Fisher and historically microsoft as weve hard time kind of you know giving up this habit of chasing a bet thats exactly what they did they looked at it and they think rightfully just started off rather than spending in a couple more 100000000 something thats not going to go anywhere nearly amazon runs the show and clearly you tube and google state are you know are on their own ground and they have most of the market share. So there is no real place for microsoft there and then you know as always hes at a 10 seconds. And you have to wonder how much this may be had to do with obviously this Holiday Season were going to see the next generation of video game console. Has their series back here and in reality when youre starting to build that infrastructure would you start to put the software in there and get everything put together well its hard to build things around a streaming platform that you just dont think youre going to hold onto so i wonder if that has to do with it as well i mean why is it just that they were too late to the game is that why you think that they just werent able to make any market share because weve seen especially amid the pandemic year over year in april of this year you tube and twitter about t. V. Both doubled their streaming capacity and that timeframe and mixer didnt move at all thats for so many ways. Lives and the people watching other people play the games and thats been off in a tremendous amount of numbers and so you see this of course the same quarter unequal the same month of april last year want to continue to doubling daraa. Just a number of hours and you know microsoft has been unable to kind of emulate or replicate that level of success so what they did well and what was a hopeful attempt was to figure out can we purchase something exclusive like ninja and have him come over to the platform and attracted to the crowd with a its in the midst underestimation or as if the mistake that was made in the strategy said that people really follow titles and at the celebrity of certain streamers or hes critical to some degree when youre in the stance of the game they want to see that they want to hang with their friends and they want to talk to their other loyal customers in the context so its all thats reason to see the Community Play more of a celebrity stage and i think microsoft just kind of missed out on there but the number as you point out correctly theyve been ups significant i dont want to touch on something quickly before we head out here a video game juggernaut for tonight has been holding d in game concerts recently and theyre also holding a movie night on friday of this week i got about 10 seconds for you here but how big is this using video games as a promotional tool. 10 seconds or less does into the future in many ways younger audiences are going to be watching online on their phones are going to be doing this to get their friends and so music video and there are segments that are hard time reaching that audience are going to lie and gamey to get access to that on. Print or in video game and if you spend your own in sorry to cut you short thank you so much for joining us today. Thank you. For the thought that as a portable t. V. Joining me everything on the alex salmond and ill be speaking to guest of the world of politics. Im showbusiness ill see that. We go to work so you can stay home. He said he had to go as a police so he the good can each other than the human one. But on the butter side going to the book are useless so let me just. Sort of. Remove learning t. M. Month school if you wish to least stop korean missiles from the course for you which musician of ocean has just woken up from the gut feel that the church. Is who. We think he minds be so it soldier dickys off the boots shes wearing. Which to the soul looks like to move the opposable to pull your more than with me then youll leave it on the shore still in that summarizing the police force to behold the. Law of from the World Headquarters of the r. T. E. America in our Nations Capital this is the news with rick sanchez and all going to buddy im rick sanchez and i want to welcome all of you who are watching us from all d over the world whether youre watching on your t. V. Through your regular provider or on your phone using the portable t. V. App which you can get for free by. The way so once again many here in the United States will feast their eyes today on that iconic statue in our Nations Capital its a beautiful statue its a statue of Abraham Lincoln arguably the greatest u. S. President who ever lived it depicts him freeing