Transcripts For RT Boom Bust 20240712

Or if you work. Youve got 2 eyes 2 ears and one now. So you should be seen here and a whole lot more than youre saying if you dont take that advice easy going to dig yourself a hole. This is boom bust the one business show you cant afford to miss in washington coming up the fate of thousands of Airline Workers hangs in the balance as Congress Continues to debate stimulus for the ailing industry straight ahead we dive into the struggles of the aviation sector and where their fate lives on capitol hill and later controversy continues to stir in europe as the e. U. And the United Kingdom continue to spar over their divorce a deal later on were going to break down the Details Behind the friction of a packed show today so lets dive right in. And 2 of the United States air carriers have announced the furlough of more than 32000 employees after lawmakers failed to extend a bailout for the industry ravaged by the copen 1000 pandemic the layoffs from american and United Airlines come as carriers have called for another 25000000000. 00 in payroll support to save the jobs for another 6 months. A provision in the last bailout which banned furloughs expired at midnight wednesday House Speaker nancy pelosi and treasury secretary Stephen Menuhin failed to reach a deal when they on more stimulus measures causing the cuts but did say they will continue discussions american chief executive doug parker did tell employees the airline would reverse the furloughs and recall workers if a deal is reached adding quote unfortunately there is no guarantee that any of these efforts will come to fruition the news comes as the u. S. Labor Department Released its report on weekly jobless claims for the week ending the 26th of september that there were 837000 new claims down from 873000 the week prior while continuing claims came in at just over 11700000 down from just over 12700000 the week before but considering these massive layoffs in the Airline Industry and news this week that disney laid off 28000 workers what does the future have in store well joining us now to discuss is Jeffrey Tucker author of the new book liberty or lock down and boom bust cohost christine thank you both for joining us today christy i did want to start with you as no deal was reached when their lines have start to furlough employees as we just mentioned however they say theyre prepared to reverse course if a stimulus deal is reached whats the latest and should the Airline Industry get another bailout that seems to be the 25000000000. 00 question here i am the Airline Sector is one of the hardest hit sectors with losses now topping over 10000000000. 00 in just the 2nd quarter alone so demand for travel has basically evaporated and airlines have slashed services to match this weeks demand and basically with the travel restrictions now in place the once very lucrative International Routes all those have pretty much all been canceled so airlines right now are not just shutting employees theyre forced cuts thousands of employees have also accepted a buyout temporary lease and also early retirement packages except for in order so its been a very difficult time for the entire travel and astray so while thats. Its been an overall very unfortunate situation the reality is that another bailout isnt really going to make the problems go away because what will happen once this next package once money runs out once again in march and then again another 6 months and another in another 6 months so they will constantly be dependent on these bailouts to survive basically turning it into another one of the Zombie Companies that weve been talking about so even the Airline Executives themselves they have admitted that they dont expect demand to recover for at least another 2 years so there isnt absolutely no reason to have all of this excess staff excess carious excess routes all sitting idle for 2 years adding to the costs because no one expected this pandemic to last this long thats why they got the 1st bailout package but now that we have a better picture of what the new normal looks like Going Forward companies are going to have to make some very difficult adjustments in order to be able to weather this out for the long haul now jeffrey i know youre not a huge fan of Government Intervention so i want to pose that same question to you about whether these airlines should get a bailout and more importantly do you see a new stimulus package coming through before novembers election. On the 2nd proto dont actually have grave doubts to happen it seems Like Washington is politically locked everybody to scream at each other all the debates that i would recommend it is just wash and semester i doubt it and the thing is that the money is real is running out right now and workers are starting to feel it on the question of an alliance you know thats thats a complicated. Christie tells the truth i mean that was a brilliant little so little quip i did only say that the problems are entirely government cause to me and a centrist International Travel which is like. That you can go to paris and paris and come to the us old thing is crazy and people cant travel anymore but its even when. In the United States there are very very complicated kind of slightly scary restrictions if you fly to the wrong side of 7 the wrong state can find yourself in a 2 week quarantine and you have to fill out all kinds of forms to Contact Trace scene and mask up and other people just dont like this so theyre just deciding not to travel so i really kristie i dont see any kind of recovery any time soon unless people get sensible and figure out that we need to restart the economy again. Jeffrey vivekananda me saw another historically high number of 1st time Unemployment Insurance claims but the market doesnt seem to care because its still better than 1000000 which is what we saw before although markets kind of dipped a little bit later it did the day today but with all of all of this unemployment how is a recovery expected to take place i mean like you said does the government just need to get out of the way in your opinion. Your way yes of course thats the answer to show you the funny thing about the Financial Markets and the jobless claims numbers you know its like everybody is expecting calamity and they only got catastrophe and its like byebye. Tell about the expectations but i tell you what there is another flurry of numbers that came out this morning say vince raines and personal income not those charts blew me away there so its so devastating so shocking and part of the reason theyre so bad is that the Data Collection from governments have been terrible all sorts of spring and early summer and theyre just now getting updated were getting a clearer picture of the devastation and its a bit of a shock to me to see whats happened to personal savings in this country and so people are Digging Deeper and deeper and deeper into into their nest eggs just to survive and i would like to see the stat that aside desegregated between people who kept the jobs of people who lost their jobs but nonetheless one of the things weve seen is the employment situation. Not nearly as bad in western states that largely stayed open source or some such kotor are doing well in iowa and i think arkansas is 25 so theres a few states where youre starting to see this recovery take place but in the still locked down places like the north east and california its getting worse by the day however ill conclude with this. Budget crisis is foreseen some of these governments to rethink their lock up all cities and even in the presence of rising cases i think were going to still continue to see gradual opening up just because the terror created by look at those charged today well and of course the pandemic isnt going anywhere for for quite some time or at least thats the way it would appear even if a vaccine is developed for the end of the year which is unlikely it still would take a long time to roll it out kristie it looks like the summer are beginning to lose faith in the recovery story as evidence by the price action in the commodities market what are you seeing there well for traders it looks like this balanced out with promise in the 3rd and 4th quarter thats not materializing anytime soon so now with hopes for further stimulus now just diminishing day by day were now seeing traders start to hedge their bets bets so right now we have seen disappointing growth and manufacturing data in the u. S. And i have just sent the commodity space crashing so you have crude now collapsing fact beneath the 39. 00 per barrel mark and with demand completely shot i would be just spoke about with airlines not only our commercial flight demands down but car usage as well thats also slumping amid the new virus or stiction so lets also talk about copper copper is the other industrial benchmark that we look at and that is also dropping as the recent rally was based on growth and recovery so you had a ton of speculative long that have increased steadily over the last 6 months and there they were near all time highs in terms of numbers of contracts so the prices have also been pushed up by waves of chinese buying and aided by the government fiscal stimulus and intervention but all of that came to an abrupt halt on thursday as a market then quickly digested the increased kovan 1000 cases as well as the ballooning in the tory of copper so its been a bit of a perfect storm and the rally was shaky to begin with as weve all been saying because now the december 20. 5 percent today so no one. Now bind the debts and traders have been very surprised at the severity and the violence of this downside trading. Christiane Jeffrey Tucker of the American Institute for Economic Research thank you both for that expert analysis as always thank you. And the u. S. Food and Drug Administration has expanded its investigation into an illness in astra zeneca as quote a virus vaccine study now according to a report from reuters wednesday the late stage u. S. Trial has been on hold since the 6th of september when a participant in the u. K. Became ill with what was believed to be a rare spinal inflammatory disorder regulators in britain brazil india and south africa have already allowed the Pharma Company to resume trials in their countries according to the report the f. D. A. Is investigating whether similar side effects had presented in other trials put on by a team of scientists at Oxford University astra zeneca is a partner in developing the potential vaccine the latest inquiry casts doubt on when the trial may be able to resume here in the United States the Us Government has pledged 1200000000. 00 to support the development of the vaccine and secure 300000000 doses for the country if it proves successful so with this in mind lets go ahead and take another look at the trends and spread of the virus globally with our correspondent side of tablature so i where with the. Brand right now very close to 35000000 in global cases again its very important to mention that over 75 percent of these global cases have fully recovered while over 1000000 have died in the us close to 757500000 have been infected while deaths have surpassed 212000 and now there are some positive trends for the us right now too because new cases have actually been taking slightly slower on a weekly basis for the. 3 days on wednesday there were 41984000 cases still up 11 percent compared to last week but that number has actually gone down all of this week now deaths there were 974 reported wednesday a 16 percent decrease from the numbers that we saw last week sold out too soon to celebrate but that data is headed into the right direction brant and so are we just spoke about astra zeneca and the f. D. A. Broadening their inquiry into the side effects from their back seat what are some of the other companies that are facing these similar side effects in the backseat drugs so right now so these are the 3 leading pharmaceutical companies all in a phase 3 here in the u. S. Now out of what point all 3 of these companies they promise a vaccine by the end of this year is at the end of 2020 but modernity and pfizer now they have both Just Announced that a few of their trial participants experienced a mild side effect after receiving the cold 1000 shot so other side effect new significant enough to stop the late stage trials probably not but did just announce other vaccine wont be ready until spring of 2021 completely opposite of the what the company said earlier which was to seek emergency authorization as soon as november 1st now the same goes for a pfizer because even if they get past the side effects the vaccine shows and if the vaccine shows promising signs now thats still a big if the company will not have enough lake the data out to say with confidence that its safe and effective in time to be distributed does year and like you mentioned earlier astra zeneca obviously theyre remained on hold since the september 6th trial so theres obviously a huge financial gain for all of these 3 companies to be the 1st come. With kovan 1000. 00 vaccine you know already were seeing their stock prices skyrocket so you see their urgency but it appears none of them will have any kind of vaccine ready for distribution this year and what are we seeing with Vaccine Development outside of the United States so Chinese Pharmaceutical Companies can see no bio logics soon evolve and soon a farm theyre all release or called in 1000 vaccine but for a limited use so people who have gotten out already have been the Chinese Military and some chinese front line workers but nothing will be distributed and maskil until mid 2021 then we have russia thats working not just on a 1st but a 2nd Coronavirus Vaccine now after they announced in august that they had come up with the worlds 1st vaccine thats the sputnik v. Now even though medical experts did raise some concern about just how quickly russia approved the sputnik the moscow is Going Forward with trials and the mass Distribution Plan but as of right now nothing from any country or any company thats ready for mass production in 2020 brant. Archie correspondent saya tablature thank you for bringing us the latest and time out for a quick break but hang here because when we return tensions are on the rise between the European Union and the United Kingdom over a disputed divorce split on the other side of the break we had a life the details of the split and as we go to break here are the numbers at the close. Its an amazing country with so many friends in russia and im very excited to be here. I love that idea i think i can do the. Different nice to make a lot of money with a good name with millions and hundreds of me. Here is the. Great wall and nobody feels a lot better than me believe and ill build a very inexpensive like a great great wall. And just in case youre worried about whos going to pay for it mexico will pay for. It well see what happens. I always say who knows what well see on the field will be 6 of. Their own doing the books or dead. I dont what if you get us out. Of our group. Every day is that you. Just fit into the commercial good. Because we moved. When i met you fish you know my best coffee. They are the house of. God sits with. Me and dont hate. The skin or. The learn to. Look over the system definition in. The new shithead. And welcome back denmark has granted the russian lead nord stream 2 approval to operate in its waters the countrys Energy Agency released a statement about the situation saying north stream to a. G. D. Has been granted an operations permit for the north stream 2 pipelines on the damage danish Continental Shelf adding quote the permit has been granted on a number of conditions to ensure a safe operation of the pipelines and the natural gas pipeline is under construction and will run from russia to europe across the baltic sea and danish waters. And the e. U. Has now launched a legal action against the u. K. Claiming that the country did not withdraw legislation that would breach the brics a deal which was agreed to by both sides last year at issue is new legislation put forward by Boris Johnsons government that would override specific parts of the Withdrawal Agreement called the Northern Ireland protocol the president of the u. Commission said that the e. U. Had invited the u. K. To quote remove the problematic parts of their draft internal market bill by the end of september and that they have failed to do so. The problematic provisions have not been removed. Therefore this morning the commission has decided to send a letter notice to the u. K. Government this is the 1st step in an infringement procedure. The next invites the u. K. Government to send its up some patients within a month. And besides this the commission will continue to work hard to once a rule and timely implementation of the we still an agreement we stand by our commitments so what does this mean for breakfast it with joining us now to discuss his book investigative journalist ben swan and hilary ford which board member with the British American business. Thank you again both for being here though i want to start with you here because i want you to lay out how this proposed legislation by Boris Johnsons government violates the use agreement or at least from their perspective pleasure to be back brant a couple of things here 1st of all what were referring to here is commonly known as the market bill it is passed in the house of commons the lower house but its up for debate in the house of lords what the market bill really does is it puts back in place the unilateral right of the u. K. To be able to oversee and to judge on rules particularly with regard to trade because the issue its hand here as the quote mentioned is the Northern Ireland protocol the Northern Ireland protocol overseas trade between Northern Ireland a mainland britain the fear in the u. K. Of course is that there will be sort of some of the irish border sort of in the middle of the sea and that would be a tremendous hindrance to trade freely across the border a couple of points though i would say brendan in terms of big picture number one these infringement proceedings sound very drastic you know the u. K. Is violating International Law well the e. U. Does this often in fact last year there were 800 of these cases in the e. U. With other countries 800 and the proceedings take quite a long time to progress so big picture i think this is sort of a hardball play by the e. U. And of course they have to take a hard stance because quite frankly bent they cant let all the countries leave they cant make this easy for the u. K. It cannot be easy otherwise youd have other nations like the dodge leaving youd have next it and youd have sweats it with the swedish leaving so theyre trying to make it tough with these of infringement and trying to inflict infringement proceedings and trying to play hardball. Cannot trade freely with each other after breakfast if there is no new trade deal with the you without breaking this divorce deal provisions or that sort of our border. Is just mentioning there what do you make of this is this true. Well i think hillary if i get a couple of important points here which is that the e. U. Is trying to make it as difficult as possible and one of those difficulties of their putting in the way is something called state aid clauses essentially saying that state aid to ireland into some of these countries has to be a part of this briggs deal which the u. K. Says should not be the case they say that thats not typically part of free trade agreements to include state so theres a lot of questions about precedent but a lot of this is unprecedented i mean keep in mind this is the e. U. Choosing the u. K. Is the 1st real block of nations to step away from the e. U. When they say were going to break off from this and were going to renegotiate all of our trade deals the e. U. Of course doesnt like that and the more that they can create a situation where they say were going to create hardship for you and that goes into holes host of areas including in financial areas manufacturing areas every place that the e. U. Can make this difficult and can make this painful they send a centrally a warning flag to any other countries that might be arrogant enough in their words to try to do the same now hillary if this breakfast deal falls apart this would have a huge impact on u. K. Carmakers what it said have said it wouldnt and bens point was absolutely right about the state aid and that goes across many Different Industries not so much the car industry but yes with regard to the car industry couple things id like to make a point 1st of all that the o. E. C. D. In the end of august actually stated that the u. K. Economy is doing better than many other countries in the u. Such as spain and italy and actually have above and beyond germany so the u. K. Is doing much better than expected a much better than you read about in the press with regard to the car industry yes the issue here is something called cumulation and that is that the percentage of parts that are actually assembled in the u. K. To be considered british on the rules of brac said they supposed to be over 60 percent in quotes of british of british origin what the brits arguing and in the u. K. Is that all the components should be even if theyre assembled in the u. K. Many of those parts currently come from japan. And actually many from turkey so its estimated probably only 44. 00 about 44 percent of cars made in the u. K. That occur stated to be british are actually originating with all of their pots in the u. K. So thats going to be very problematic and there are billions of jobs that are at stake here on a lot of International Cars such as land rover nissan ford of course they u. K. Common you factories and they depend on those parts from other nations so the issue yes is cumulation and the issue at hand are hundreds of thousands millions of jobs but it certainly throw another wrench in the works when it comes to trade and tariffs for sure and as the u. K. Prepares for this for come january there is a new report that indicates that more than 7500 finance jobs and a trillion pounds in assets have already left britain for the European Union are we expecting to see more of this as we move forward as we move towards the end of this year. Yeah i think we absolutely could it goes back to what weve been saying kind of the theme of the segment today right which is that the e. U. Is doing everything in its power to make life difficult theres a statement that came out saying essentially that the e. U. Is saying they are only going to work with select access for the city of londons range of Financial Services after a break that takes place essentially saying when theyre trying to create something through a program called equivalent systems that have been set up in europe to try to say that theyre only going to have certain select Financial Operations that could take place in london look its again a go it goes back to this idea that they are attempting not at every level to make the u. K. The pariah in europe its terms of finance in terms of manufacturing the more difficult things are in in the u. K. The more of a message it sends but i do think that as it does take place because no matter what the e. U. Attempts to do its going to happen once that takes place i think were going to see that it was not as bad as the e. U. With hope that it would be robust cohost bents wanted hillary ford which of the British American Business Association for. Both for breaking it down for us today. Thank you. And finally a video of a giant moving robot in japan is racking up millions of views across twitter video showing a 59. 00 foot tall 25. 00 ton gundam in this japanese city of yokohama has pulled in more than 6000000 views over the last week mobile suit gundam is a cartoon about giant robots piloted by humans while the series debuted in japan in the seventys going toys have since gained a cult following worldwide and theres been more cartoons and other Television Shows involved now the robot is the focal point of the gundam factory yokohama which was set to open in october as a tourist attraction but was delayed due to the pandemic the park set a new opening date this week of december 19th in the video you can see the gun walking as it exits storage before taking a knee and putting its arm up in the air. Fascinating stuff and thats it for this time you can get to bust on demand on the brand new portable t. V. App which is available on smartphones or tablets through google play in the Apple App Store by searching portable t. V. You can also be downloaded on a newer model smart Samsung Smart t. V. s as well as broken devices or simply check it out portable t. V. Well see you next time. My name is sucking. On the social media mr jackson wanted on seats which are. A bit over you know. What weve got to get it out. Too cause hes. Moving out you know. He speaks and i use i dont think hes making any babies here you know suits me school on drugs used to people. Who. You know. Who comes before the school clubs because the clubs do really hes trying to fit a music that. I love to jazz because he makes me copy i love he dies because he makes me copy the plane flew to. And when you go to church you have nothing. To do beyond that i said because its back off my ass and im not sitting down because. You know. I think. That i dont. Join me every thursday on the alex salmond short and ill be speaking to us from the world of politics or business im show business ill see you then. Go on. Fighting between azerbaijan and armenia and has a 6 day taking an increasing toll on civilians and journalists also among those killed in the crossfire. Russia and france say syrian militants are pouring into that conflict zone as trade accusations over foreign mercenaries. And other used reveals he in the 1st lady have tested positive for cope with 19 the world quarantined in the white house. Busted for sanctions belorussian officials over allegations of election rigging with minutes