Will you do johnson and johnson maybe a major breakthrough in the Opioid Crisis and a disaster for j. And j. That their stock is doing just fine. Simply training joins us to break down the latest opioid expose Drug Companies and the rest of the farmers all that in the supply bottlenecks slowing down the latest in the fast food craze in one spicy show lets go. Another step toward a hard break between the United Kingdom and the European Union leads our global report today as the queen of england approves Prime MinisterBoris Johnsons request to suspend Parliament Queen elizabeth specifically granted the Prime Ministers request to prorogue the parliament in september effectively narrowing the window in time for the opposition or dissidents in mr johnsons coalition to legislate a barrier to a no deal brags that mr johnson has given every indication of being dead set on taking the u. K. Out of the e. U. Want to 31st without a deal if the e. U. Does not submit to his demands regarding the socalled backstop on the border between ireland and Northern Ireland some experts on the u. K. s unwritten constitution say the move effectively makes parliamentary prevention of a no deal braggs at nearly impossible the pound sterling was erratic in currency markets on the news with action on the Options Market showing expectations of volatility reaching a new high since the beginning of this year. The u. S. 30 year bond yield fell to a record low of 1. 907 percent early wednesday morning while the yield curve inversion continues to worsen we talk a lot about this 210 and version as this is a notable and highly water session indicator that has correctly predicted the recession the last 7 times the spread today fell 6 bits as extending the losses from previous sessions when it registered its lowest level since 2007 in addition the spread between the 3 months and the 10 year sank to 3054. 00 bits now we havent seen it that low since march of 2007 the 310 has now been inverted for 3 months and history has shown that we have had a recession 100 percent of the times where it has gone negative for at least 3 months the bid for treasuries began overnight as johnsons announcement sparked fears of a no deal brad pitt and loss of the largest trading partner you can see yields actually falling worldwide its howling yields fell below one percent for the 1st time ever german and french yields also fell to record lows global risks have now increased as we monitor trade developments between the u. S. And china the white house is scheduled to impose the 1st stage of u. S. Terrace of 300000000000. 00 worth of chinese goods on sunday meanwhile china is paired to respond with cash on the u. S. Product on the very same day so with all of these negative data points why is powell still suggesting that we are myths eichel that is the big question on everyones mind are we currently mid cycle like 9095 or 98 or are we late cycle like 2002007 polls answer was not satisfactory for the markets and right now the balance of probability is leaning towards late cycle its hard to argue mid cycle from the real data that were seeing here Profit Margins and growth are outright declining on a year over year basis for both public and private Companies Housing has failed to rebound despite having lower rates now and cyclicals are underperforming significantly. Cyclicals are the most sensitive to macro changes in the economies and they have sold off hard this includes transport industrial materials construction all of these look like theyre in late cycle some might actually even argue the end of cycle theres also concern now that the fed is impotent and lacks the stimulus capabilities to jumpstart a recovery the fed has become like the e. C. B. There is nothing that they can do to generate the kind of growth we need to offset this like they did in 2015 now coupled that with a strong dollar the fed might actually be forced to cut rates faster the strong dollar as we mentioned before is the big risk in the equation it has every law opportunity to break lower with everyone cutting rates but it didnt so if we get that uncontrolled rise in the dollar it would take the dynamics significantly towards a fast or slow down and Global Growth a much faster slowdown in commodities and a much faster deceleration of emerging markets so what were experiencing right now is eerily similar to the 1900 cycle that was one of the longest cycles we had in history was to fall slowdowns exactly like the one right now so eventually that broke so will break this current cycle people right now i just dont think i want to believe it because were seeing equities markets at all time highs and unemployment at record lows but remember unemployment is a lagging indicator unemployment was at record lows in 2002007 the equities market was also at all time highs in 2002007 so thats why you dont trust the equities market you trust the bond market the bond market tells the full story and right now it is screaming that the Global Economy is quickly slowing down the world has traditionally been dominated by equities but today we have to shift our mindset across multiple Asset Classes to piece together all the data points and assess the situation from there we saw the 1st signs with the f. X. Markets with the grob in asian currencies and the dollar unbridled strength then comes the fixed income markets when it started to invert and now you have the cyclical starting to roll over in equities and soon. Commodities will be the next to fall. And here to break down the Global Economic scene are there is a rich professor ritter one of professor of economics emeritus at the university of massachusetts amherst and the author of democracy at work so richard this is the big question on all the traders and investors mind right now are we meant cycle are we late cycle because the evidence seems to point to a late cycle or where do you think we are right now. Im with the people who say were at the late cycle i literally am waiting almost every day now for the kind of straw that breaks the camels back if you allow the metaphor of for the vent that really takes us over the edge and it may indeed have happened over the last 24 hours with the end of the parliament in Great Britain let me remind everyone the foundation of british democracy was the creation of a parliament to replace a king so that no Single Person or single party could dominate british politics that there would be a place for debate disagreement and arriving at his decision in that way for Boris Johnson to Cancel Parliament to use a maneuver to get rid of this body is a statement of refusal that the problems of english capitalism are so severe that they have to take this action its a little bit like the disruption that is coming from the trade war between the United States and china it edge to the late cycle danger of recession another variable risking to take us over the edge and professor with markets today despite these troubling signs in the fix income market the christine pointed to is there anything holding up the equities market right now except perhaps expectation that the fed will sort of for. I think youll have to see the equity market. As now a kind of bubble in and of itself all of the increase in the quantity of money pumped into this economy since the crash of 2008 and 9. 00 all of the low Interest Rates because theyve been low for a long time they rise and fall but theyve been low and theyre now getting lower and still that is an enormous amount of money that is not going in to producing goods and services because the mass of americans dont have the money to buy them so where does the money gold thats being pumped in the answer is it goes into the stock market it provides a kind of boost that brings the stock price further and further away from the basic economy and history teaches us as that gap grows its only a matter of time before people realize that the only thing keeping up the stock market is this money creation and that will come to an end at a certain point and then lord help us as to what happens as the stock market crashes right and staying on the u. S. One datapoint that has developed is that higher income consumers have started to pull back on their spending which poses a significant threat to a comic expansion in a. Increasingly unequal economy where high end consumption accounts for so much output is there any way to regain that confidence at the top of the income scale its become so important right now. I dont see any on the horizon i think when you see as you open this story when you see the 10 year treasury falling below 2 Percent People are not are so nervous people in the Investment Community which is what generates high incomes for a large number of americans people theyre all so afraid of whats coming down the pike that theyre willing to invest in the very low amount of money interest coming under 2 percent after you pay your taxes which you have to one federal interest thats virtually nothing youre youre holding. Your money in what is safe only because despite that it doesnt earn anything for you its at least safe in the hands of the government and youre so afraid of every other investment thats what you do when you have that in the Financial Community its only a matter of time before it seeps into the rest of the community and of course they hold back on big expenditures because they become afraid to sell us our life cycle i think our life cycle as well why those policies tell insist that we are currently in a myth cycle situation right now and do you think that the fact right now is behind in the yield curve and they will have to later on be forced to drastically cut rates in order to try to. Control of the environment. I think the reason mr powell says it is he wants a little bit of security and safety before he cuts rates more i think youre right he will have to do it because the force of the decline threatening the United States economy is simply too strong but he does not want to be seen as providing what mr trump wants when he wants it mr trump has claimed the economy is great it isnt and if people recognize that because of all the signs youve discovered and youve discussed today then he is in deep trouble for his reelection next year so he needs to juice the economy to boost it and he wants lower rates but if the fed does that it looks like its in his corner pumping up his political survival which is a dead devastating break from its notion of being above republican versus Democratic Politics so he has to try to create room but i think in the end he will have to do it mr trump will abuse the meaning of all of that and will push this recession may be back enough months to get mr trump reelected but remember the longer you pull. The correction for one of capitalism cycles the worse that cycle often becomes we should have learned that lesson in 2007 it seems we havent and were going down that road again professor with Richard Wolffe author of democracy at work find him on twitter and patriot and thanks for your time. Thank you. B. P. Is selling their Oil Drilling Operations in alaska to private whiling gas farm hill corp in a 5600000000. 00 deal while the oil giant has faced criticism from environmentalists to halt Drilling Operations in the region they said that it had no bearing on the sale b. P. Owns a 26 percent stake in the prude hold the oil feel the oil field has produced more than 13000000000. 00 barrels of oil since exploration began officials from b. P. Said the deal is part of an effort to raise 10000000000. 00 over the next 2 years to boost their bottom line b. P. C. E. O. Bob dudley said that the sale will help the company to pursue new advantage opportunities b. P. Started operations in alaska 1959 and it was a key 4th behind building the 800 mile transit lask a pipeline. Now for a quick break would stay true because just on the other side the ruling against johnson and johnson may be a major breakthrough in the Opioid Crisis but you can tell by looking at their stock price and youll share is simply trading joins us to break down the latest news for jay jay and the rest of the farm sector and as we go to break here are the market numbers at the. Scene. Just dont. Get to see. The outer. And inner. Worlds apart if we choose to look for common ground. Said she stressed to. This or that the british. Pressure was so huge she. Could you see which. Which im not what you. Remember since you took over or to ship. It to mr ellsworth. Or does it seem to be. That its a studio actually that was. For sure. The speed. We are in a depression in america populations all over america there is poverty and more than half the population lives below the poverty line so theyre already has a bit of a ghost depression going on which has developed into a full blown depression because of neither policies work from the central bank so maybe the problem is the subtle. Welcome back the government of canadian Prime MinisterJustin Trudeau is rejecting calls to suspend trade talks with mercosur trading block over major member brazilian president gerry bolster narrows policy and clearing the amazon rain forest to make way for logging and agribusiness opposition parties had pressed mr trudeau who faces an election later this year to follow up on statements from his fellow fellow leaders in france and ireland who said the European Unions trade deal with mercosur could not proceed if brazil did not commit to protecting the longs are quickly warming planet. But on tuesday International Trade diversification minister jim carr said kim of the will proceed with the talks on a trade deal which could take years without any commitments from mr burleson narrowed to protect the amazon on one say the president s of colombia and peru announced a regional summit on saving the amazon on september 6th in the colombian Amazon Region of the. The amazon ranges across brazil bolivia brazil colombia ecuador guyana peru and venezuela. And there is more news in the quickly developing legal endgame around the staggering corporate profits that fueled the opiate use addiction and overdose crisis in the United States yesterday we reported on the blockbuster Game Changing 570 2000000. 00 judgment against the u. S. Drug giant johnson and johnson for their profit while corporate complicity in the nations deadly addiction crisis the judge in the case found that Johnson Johnson had deceptively market addictive products and the judgment against seem to have galvanized other Market Players with other major exposure to opiate related risk to subtle perhaps most prominently the poster family for the crisis are the factors the founding family of the drug firm Purdue Pharma and they are preparing to cede ownership of the company and that it declared bankruptcy as part of a settlement that could value between 10. 00 and 12000000000. 00 a reported 3000000000. 00 of that total will come directly out of the Sackler Family fortunes other Drug Companies including and no international and allegan are also reported to be in very advanced settlement talks. And joining us now to take a look at the market reactions on the Opioid Crisis and pharma stocks is danielle a director of options Simpler Trading welcome back daniel in the way in the wake of this Opioid Crisis johnson and johnson was found guilty and find a record 572000000. 00 but that amount as big as it is was significantly less than the penalties sought by oklahoma and the other states and tribes that are part of this lawsuit sending the stock actually trade. Up after the news so it seems like a fine was you know perhaps a drop in the drop in the bucket for j. And j. Who brought in revenue of 81000000000 dollars last year its similar to the split you spoke line over privacy issues earlier in the year there are still in prison actually won because people have already priced it in as enforcement or regulation on these companies in this day and age really affected at all. I would say it is and i mean just by looking at one day of price action sometimes were going to see a weird move like that however if you go back and look at last december this situation with johnson and johnson is that ever same c. Is best so scandal came out the stock prices never recover those levels and so while today may show one thing i think in the long long term its going to continue going down and right now is there any benefit to actually being this big the Pharma Industry has consolidated drastically over the past 10 years but if you look at the big names j. And j. And millie pfizer. Is mark on pop them out against the s. And p. 500 most of them have actually underperformed the exception was jan jan abbott my hairline so is there a point to holding these big pharma names as opposed to a smaller biotech that continues to actually drive innovation and drug discovery. So for me biotechs are very volatile and so i dont really prefer to hold those actually do like Holding Health care names specifically mark just because it is a nice slow and steady name and so investors have to look and think ok wh