Transcripts For RT Boom Bust 20240712

This is the one business show you cant afford to miss in washington coming up markets are slumping on friday after the Federal Reserve put a halt to buybacks in the midst of the. We breakdown the ruling and what it means Going Forward and while the Airline Industry has struggled in recent months some big changes could be coming to the sector we take a look at some issues daunting the airlines and what the changes could mean for travelers we have a packed show today so lets dive right in. And we lead the program with the United States setting another. A record for new cases of covert 19 on thursday with the nation seeing a spike in cases as certain regions attempt to reopen their economies Johns Hopkins University Reported more than 40000 cases on thursday in the us eclipsing the previous record of more than 36000 cases reported in april this comes as the director of the center for the centers for Disease Control dr Robert Redfield said he estimates that every for every case reported in the country there are likely 10 other infections unreported meanwhile and speaking about the end of the 2nd bowl outbreak the director general of the World Health Organization just how similar measures have been taken to fight the 2 diseases and spoke about what it will take to see an end of the coburn 1000. 00 pandemic its clear that to bring 99. 00. And to save lives we need effective vaccines national sticks and acts in unprecedented quantities and proceeded to speed and its clear that because only people out of 3 schools in all people should have access to all the tools to prevent detect and treat it not only those who can afford to pay for them. As we see this surge in new cases lets take a look at the Global Trends and spread of the virus with our 2 correspondents. So where are we today brand so the global case number it has now climbed to over 9800000 cases and the u. S. In the u. S. It continues to lead the world in both reported cases and also reported that so of course these are all indications that the pandemic is far from contained or over i should say but i want to take you through the numbers and i want to go over the u. S. 1st which this week recorded like you said the highest one day peak since late april and just compared to a week ago thats a 38 percent increase so all in all at least 32 states are reporting increasing cases now thats partly driven by the same states weve been reporting on all week which are california texas florida arizona North Carolina and georgia and right now texas florida and arizona all of which have resisted earlier measures that other states were taken are now actually starting to reconsider so texas reported nearly 6000 cases this week and some of the districts in texas had a nearly 700 percent increase just compared to the last 30 days so i mean thats huge now in order to contain the spread of the virus texas is now also scaling back their reopening plans by closing bars after they had initially been part of the states reopening plans now meanwhile the Florida Health department has also reported close to 9000. 00 new cases on friday and thats the highest one thats the highest single day increase and that florida has reported and florida has also had earlier entered into phase 2 are reopening but is now deciding to suspend all Alcohol Consumption n bars since people really flocking to. Throughout the state without a proper social distancing guidelines out the Florida Governor has also once again announced that he will not mandate facemask requirements throughout the state now im moving over to arizona which has so far reported more than 66000. 00 cases and is really in a state of prices as one in 5 tests are coming back positive brand now meanwhile Arizona Public Health Officials Say that the states i. C. U. Beds are nearly all full which is why arizonas governor is pleading with the citizens to stay at home if at all possible but once again has not impose statewide facemask requirements and brant right now whether all this increase that were seeing will be matched by a surgeon will actually depend on a number of factors like the age of those infected individual risk factors and the availability of medical care all of which will also depend on how the government continues to respond to the pandemic and started now how does the u. S. Compare to other places throughout the world so the pend make it still very much alive in other parts of the world too now brazil is still i hotspot for the virus the 2nd highest number of cases after us and as you can see i mean is just surging for brazil now india and mexico the average of new cases is also going up now russia is averaging about the same number of cases while peru only has a slight increase in cases now meanwhile the u. K. Spain iran and chile are all starting to somewhat flatten a curve but as we are seeing you know countries that are appeared successfully to contain the spread of the virus earlier are now seeing sudden spikes as they reopen and lifts lockdowns so all of this that youre seeing could change at any moments time arche correspondent thank you so much for keeping us up to date. There. Following thursday a spike in share prices for big banks friday was a whole different story after the Federal Reserve announced an imp they would impose new restrictions on the u. S. Banking system now this comes after its annual stress tests show that some banks may face huge shortages of capital under certain coronavirus pandemic scenarios joining us now to just about shows that investigative journalist ben swan now ben in short what does this mean and what will the fed require banks to do. So essentially heres what happened in this really comes out of the doj frank bill going all the way back 220072009 remember when dodd frank was 1st put into action essentially with that legislation came rules where the fed has to annually stress test banks around the country to make sure that theyre able to weather certain economic scenarios essentially and so the fed ran these stress tests and what they found was there was kind of a general sense of Economic Conditions being rough and then they ran stress tests on 3 different coronavirus related or specific scenarios one would be a you shaped recovery one is a v. Shaped recovery and one is a w. Shaped recovery meaning that you come out of a recession and then you go right back into it and so essentially they look at these banks and they found that there were at least 30 banks that failed this stress test that what they found was that these banks under certain conditions are right at the minimum level of capital that theyre allowed to have under dog frank in order to not become insolvent and go under and so what the fed is essentially doing is saying for those 30 banks they will no longer be allowed to buy back their stocks and they will limit the size of dividends that can be paid back to shareholders at this time and you just mentioned that capping of Dividend Payments and requiring a large banks to actually resubmit and update capital play of why is all of this well it is simply its because it is what the fed is finding is that under that dodd frank legislation these banks are not holding on to the capital they need to hold on to right now what theyre doing is theyre essentially playing too loose with the capital that they have the whole point of dodd frank was to say lets not go back into another situation where banks find themselves insolvent and where and where taxpayers find themselves having to bail out huge Financial Institutions that are unavailable to take care of themselves so god frank was essentially designed to say thats require that banks prove that they are being response. In the way theyre behaving and that they dont have to get bailed out and what essentially the fed found 4 was 30 of those banks are not being that responsible and theyre really in a position especially with coronavirus related economics at play they could find themselves in a very serious position so again as you said there theyre capping these dividends theyre saying you cant be paying out the shareholders right now youve got to really hold on to what you have is so that you dont find yourself in a position where again taxpayers have to bail you out its fascinating because obviously you know so much of the economy relies on big banks but if you look at throughout this pandemic so many Different Industries have called for those bailouts and some of these are Gigantic Companies who are mainstays here in the u. S. Who are saying basically well go under if we have to stay close if youre like how are you operating on that razor thin margins at least banks are to some sort being held accountable in that situation now on thursday christie and i actually discussed the rolling back of the volcker rule how does this move by the fed impact that decision. Yeah i think that what were seeing right now you know as you mentioned in the lead up here we saw you know stocks and banks go way of their doing well on certainly on thursday they were on news of this right and but what is that new saying the news is saying that essentially the feds are kind of laying back and saying remember the volcker rule remember the rules we put in place after 2008 to make sure we didnt have these problems lets loosen that up a little bit or lets at least loosen up our understanding of the rules were going to change the rule but will clarify gotta love the word clarify which means were going to apply new terms to this rule but its so important as you just mentioned something thats critical the essentially during this pandemic itself we do see a lot of industries that are going to the government same bail us out the fact is it was only a little over a decade ago that wall street and banks and Financial Firms already had their moment and there was legislation put in place that said if we build you up today you have to act like this tomorrow so it doesnt happen again and now just over a decade later were not holding them to that and were going to talk about more about bailouts coming up in the show boom bust cohost and investigative journalist ben swan thank you so much. With so much news regarding regulation in the ongoing kobe 1000. 00 pandemic markets worldwide are mixed on the week so lets start in russia where the mo x. Is up for the week the index launched after our equity trading earlier in the week and the ruble neared a 2 week high on tuesday before weakening on thursday responding to a fall in oil prices but eased up on friday as oil rebounded and the country witnessed a fall in the daily number of newco 1000 cases lets move to asia where the markets theyre all finished up on the weak u. S. Regulatory rollbacks for big banks the shanghai composite is green after fighting back from a slip on thursday over the International Monetary funds updated Economic Growth outlook but saw slight gains at the end of trading the composite was closed on friday due to the dragon boat festival holiday in hong kong the hung song finished up just slightly for the week investors remain cautious over the coronavirus outbreaks in the u. S. And around the world and the market was closed thursday for a holiday and slipped into negative territory friday alibaba shares contributed to that slip dropping nearly 3 percent in japan the nikkei is also up for the week gaining more than one percent on friday Softbank Group contributed to the big gains there with shares raising more than 3 percent the topics index also gained just shy of one percent on friday alone lets check in in india where the sensex ended slightly up on the week the index extended gains for its 4th week 2 of the best performers on the sensex were infosys and bank infosys alone surged 7 percent on the week meanwhile the a. S. X. In australia is down just over half a percent for the week after thursdays sharp losses the index gained 1. 5 percent on friday adding 26000000000. 00 in the final. Still not enough to rebound from thursdays losses and bring the index back into the positive territory the all shares in south africa is just slightly down on the week on wednesday the south african finance minister said the main budget deficit would widen to a record 14. 6 percent of g. D. P. In 20202021 with public debt topping 80 percent the country has continued to borrow money to help its ravaged economy due to cope at 19 so lets go ahead and take a walk across the studio to look at europe and the americas were markets have been mixed due to concerns over a 2nd wave of the coronavirus pandemic as well as economies we are seeing reopened in london the footsie its down on the week it slumped throughout the week due to factors we just mentioned still the index rose on friday as sentiment grew over more u. S. Stimulus now u. K. Investors are closely tracking brechts it as talks are scheduled to resume next week despite rising u. S. Coronavirus cases the german dax and the french cac they are both up on the week germanys back to a 10000000000 dollars German Government bailout package while reuters is reporting the netherlands has agreed to a 3400000000. 00 bailout to help air france and. Now moving across the atlantic over to brazil where the evil vessel is down for the week i. M. F. Projections released this week show an even gloomier forecast for the country the nations treasury secretary said the deficit could top 11 percent g. D. P. While the economy is said to shrink 6 to 7 per cent the ex is down more than 38 percent year to date just north to mexico the b. M. P. Is also down on the week official data released on friday shows a record contraction as the countrys lockdown has devastated the economy particularly the Manufacturing Sector which plummeted 25 point one percent since march moving north to the u. S. All 3 major indices in the dow the s. And p. And the nasdaq the. All down as the country saw a Record Number of new coronavirus cases investors are also digesting the Federal Reserves move to suspend share buybacks for banks and suspend dividends thats a big deal as well finally moving into toronto the t s x is also down on the week dragged by the Energy Sector that dropped 1 point one percent concerns grow over that spike in coven 1000. 00 cases in the u. S. Which could stall the recovery and just take an overall toll on the index as we continue to see more cases of coping 1000 confirmed in the u. S. The world will be watching as the economy attempts to stay open as always we hear a boom bust well keep an eye on things and bring you the latest and that is this weeks Global Market walk. And time now for a quick break but hang here because when we return while the Airline Industry has struggled in recent months some big changes could be coming to the sector we take a look at some of the issues and what the changes could mean for travelers and as we go to break here the numbers at the close. We go to work you straight home. He said he had to quit or at least for good and he knew other than those. Who won. But on the better side going to the brooklyn is so so let me just. Instead of. The emotion learning t. M. Must go if it was to the east of korea muscles from the quiz for you which mrs jim that of ocean is just located. We think he minds be soldier the boots hes wearing. Which so so looks like to move the opposing opinion more than with the new im going to be sure stuck in that summarizing the police force swindles hold. And welcome back labor unions representing thousands of airline employees have asked us lawmakers for another bailout as the mayor has plummeted due to the pay and. Mc you will remember us passenger and Cargo Airlines as well as a series of contractors received a 32000000000. 00 in aid as part of the 2 trillion dollar cares act back in march now the terms of the aid prohibited airlines from cutting jobs or lowering pay rates for employees through the end of september now the latest ad from the union consists of another 32000000000. 00 which will protect jobs until the end of march 2021 u. S. Lawmakers are planning to start negotiation on the next rate relief bill next month a letter from the unions in question calls for a clean extension of the cares act saying this is the simplest and fastest way to maintain congress is historic commitment to keep aviation workers on payroll many of whom are on the front lines of this deadly virus now for more on this in the state of the Airline Industry lets go ahead and bring in gary last author of you from the wing gary thank you so much for joining us always appreciate having you on here now were seeing this latest call come from the unions representing Airline Workers and basically saying that they want to make sure these people are on payrolls till may it would hurt to march of next year which is totally understandable but really what theyre also saying is they dont expect travel demand to be picking up before this years end and i just read on view from the wing today that some airlines are starting to talk about selling at full Capacity Starting july 1st so what do you make of all this. Well airlines are recovering theres more travel than there was no last week 2 weeks ago a month ago and thats probably going to continue with some stops at some starts but at the end of the year and the early ones are going to be smaller than they were on this not troubled them and then there was and thats going to be true next year and probably in 2022 also so all the airlines are going to need fewer people at this point a bailout isnt like your original idea that maybe it would just be 6 months and everything would be back to normal we now know that airlines are going to be smaller in the future need fewer people in the future sir. Paying to keep people attached to their employers simply delays moving on to their next opportunity because if we keep everyone on payroll till march then theyll be let go at that time and there was a lot of back and forth regarding this 10000000000 dollar bailout of germanys Largest Airline live donz over the last few weeks of their life that it was essentially out of money and risked bankruptcy how crucial is it for this government to continue with these bailouts to prevent these companies from going fully under as we just talked about maybe actually happening at some point here. Well so the bankruptcy rules are going to married and. Travelled and the. Gate the planes are all going to still be there for new investors to take over bailouts are primarily bailing out equity holders and bondholders and its certainly i think appropriate for taxpayers to ask whether those should take care of us before taxpayers are on the hook and now meanwhile the e. U. Is actually set to rule on whether they will open their borders to americans in the coming weeks now how will barring americans from visiting europe especially over the summer months when the when Summer Vacation not that i dont know whether you should be vacationing amid the pandemic but that is what were looking at how is this going to affect the industry Going Forward. So that it varies by airline an airline like southwest or like alaska whose predominately domestic carrier isnt going to be affected nearly as much as United Airlines or a 3rd of their seats are international the inability to carry passengers is going to delay recovery quite a bit but its certainly something we expect to see not just from europe but many Asian Countries are going to remain off limits to the u. S. As well and now some executives from airlines here in the u. S. Were actually set to meet with the trumpet ministration today friday now according to those reports one of the big points was going to be the industrys push for a federal mandate on temperature checks for passengers are we going to see a whole new set of requirements for air travels or air travelers for the foreseeable future i mean not to say this is similar to what happened after 911 but after 911 the entire way we flew changed. You know i think here we have a situation where its not even clear the legal basis for the t. S. A. To do temperature checks probably requires legislation and if they move forward you know its going to be its going to be help security theater because there are certainly positive people who dont have the worst there are people who arent yet showing symptoms yet who are spreading the virus carry left author of view from the wing thank you so much for that expert insight into the Airline Industry. And the quest for finding life on other planets continues but scientists arent simply looking for signs of life with water or an obvious form of existence a nasa grant focused on extraterrestrial intelligence outside our solar system using an unusual method archie correspondent sasha sweet has more on this study and how scientists plan to find signs of other technical logical civilizations. Scientists have discovered a new way to seek out signs of advanced alien civilizations through a nasa grant scientists are conducting a study to find extra terrestrial intelligence outside our solar system but its not as plain and simple as it sounds when scientists have tried to find early in life on exoplanets through gases such as oxygen or methane the search is obvious as both point to some type of existence but here on earth signs of life may not be as natural with pollutants artificial lights and even Tall Buildings these fingerprints are called techno signatures and now the nasa funded study is looking to see if there are comparable techno signatures visible outside of earth one of the study authors saying these techno signatures of advance ilian technologies could be similar or perhaps more sophisticated than what we possess the team will reportedly focus on solar panels and air pollution as techno signatures in the study solar panels are. Created with an ability to absorb particular wavelengths of lights and reflecting others scientists believe Something Like this could be detected by way of a telescope when studying exoplanets when it comes to air pollution the team will be looking for artificial gases that dont naturally occur in nature Scientists Use the example of aerosols which they recently discovered were destroying the ozone layer scientists behind the study are hoping to find out more about extraterrestrial life not only here now but also in the past reporting for boom bust natasha suites art. And thats it for this time you catch boom bust on demand on the brand new portable t. V. App of ala on smartphones through google play and the Apple App Store by searching portable dot tv can also go to horrible t. V. To get more information and you could find it on a bevy of smart televisions see you next time. Is your media a reflection of reality. In a world transformed. What will make you feel safe. Isolation community. Are you going the right way or are you being led. By. What is true whats his face. In the world corrupted you need to descend. To join us in the death. Or a mate in the shallowest. Need to build the start of you know when youve been imaging less but thats only sid it. From the regular morgue youre more your partner not going to move into iraq. Bush or secular all but us lucifer this photo is just that im like i dont im just nobody it is not my achievement mr davies r 5 you have plans for can see the need and get it out by the people themselves if they would produce or even flirted with the idea of making a film like this theyd probably be branded as crazy. How is the sentiment during the war the soviets were brave heroes resisting the nazis thats going to change of course after the war once the cold war begins. Little people think that hollywood is a free place but only what is strictly defined by. The business and it is. It is the ideal of. How would i define it all it is a call to dream manufacturer which i thinks true but i think equally its a problem in the fact. I know to no crow. No shots no. Action just belts because. Well its true i know the 1st. Point ch your thirst for action. Runs his much anticipated gotta be tracing api she used to send just 14 alerts in 3 weeks so theres half a 1000000 things for him to meet it from their phones we search the streets of paris to find somebody who is using. That number and its a no no no no no no we have to say americas reputation in europe is there was a big blow by its handling of the coronavirus a new poll suggests that as the u. S. Hits an all time high id be cases clocking up 40000 on thursday alone and more Companies Join up