tv Boom Bust RT October 20, 2018 1:30pm-2:01pm EDT
all that directly has but first it's of headlines already. the economic expansion in china appears to be slowing as it is as weakest point since the q one of two thousand and nine the gross domestic product came in at six point five percent that's two tenths of a drop from the previous quarter of six point seven percent last year as china annual g.d.p. was six point eight percent and in twenty ten the rate was a whopping ten point six percent by the way almost every nation on earth would be pleased with the g.d.p. of china's six point five percent save india i suppose which had in two thousand and seventeen a g.d.p. rate of seven point seven point three percent and that's expected to grow to seven point three or seven point four percent and twenty eight hundred twenty nineteen. russian president vladimir putin has said there is no reason to take any steps to worsen relations with saudi arabia in light of the disappearance of and most people
assume earlier of washington both journalist jamal khashoggi who was last seen more than two weeks ago entering the saudi consulate and istanbul turkey many business leaders and government officials including as of yesterday it was late when he got there u.s. secretary of treasury stephen the new chian they are boycotting an economic summit in the saudi capital of riyadh dubbed the davos in the desert summit named after the annual economic conference boom bust was there in davos switzerland. and the large spanish banks and ten dare is under the microscope by authorities over an alleged scheme to defraud the german government and others of tax revenues the alleged scam involves what some say could just be a loophole that allows multiple parties to use these same dividends for beneficial tax purposes under the circumstances both sides of a trading transact and have been able to claim and get a refund of withholding taxes paid on those dividends investigators in europe. say
as many as ten european states could be impacted the prime minister of denmark lars locke rasmussen said quote it's large scale greed and we will pursue the culprits until the last crone is paid back the crown is of course the danish currency. and today we take some time to catch up with one of the world's economic trouble spots of venezuela venezuelans are reeling from the impact of u.s. sanctions hyper inflations and many of the historic problems that often afflict economies based upon one lucrative export in this case that oil this past week the venezuelan government said they like several other nations will try to move away from the u.s. dollar while u.s. officials signaled that they planned it tighten the screws even further to push for regime change but not quite yet here to explain is our own daniel britto daniel thanks for being here good to be with you part ok so first of all give us just
a little background everybody that followed venezuela all the time like you do but give us the current status right so then this will has some serious problems right now the two biggest ones being hyper inflation and food scarcity and hyper inflation inflation reached a level of four hundred eighty eight thousand percent for the year ending in september according to reuters there's also a problem of food scarcity right now behind that is a historic problem that typically affects oil states petro states like when as well as so-called dutch disease where you have a lucrative export that makes imports cheap you develop a taste for and ports like whiskey cigarettes things like that luxury imports domestic production stagnates particularly particularly in agriculture and that's what we've seen in venezuela it's a historic problem that when president chavez was elected he saw on the horizon and talked about grappling one day one year unfortunately he he passed away and president duro does not seem to have moved quickly on. phil finishing that
unfinished business the president has left behind you know we've talked about how you know people are leaving the country a sort of mass exodus because of these economic troubles but what's the current status we talked about sort of decoupling from the dollar what's the latest on what's happening there in venezuela right so this week the minister of industries a national production tarik on the scene he said that what they're going to try to do is to eliminate the dollar in favor of the euro or the juan or any tradable currency in domestic business and devers and this is a response to the u.s. sanctions that i mentioned earlier in august twenty seventeen and that according to even an opposition economist opposition associate economist is when oil production which is the pillar of the venezuelan economy really started to tank and so we see a link between u.s. policy and the critical meltdown of the venezuelan economy right there with the sanctions even according to opposition comments that being said the u.s. this week said that they're considering oil sanctions on minutes wait all that
sanctions have not yet specifically targeted that important key import for the united states similar to iran it was the oil imports sanctions were the last to go into place they said hold those in reserves for now now that is way it is a citgo and so we do get sued coal oil but they are bad some of them troubles lately if we look to the future daniel i mean it seems like a president trying to throw everything at you know but the kitchen think it may be that to what do we have briefly for the future what do you expect the it doesn't look good part u.s. sanctions as even as i mentioned even opposition economists acknowledge that the u.s. sanctions will make it very difficult for venice while it's recover even if that were taken off the table it's not clear as you mentioned that president under oath is really serious or has a political capital to take on these historic problems the oil subsidies of oil it's cheaper than literally cheaper than water it's not clear the solution even from sympathetic economists is that you need to do a man. float of the exchange rate and there's no sign that they're serious about
doing that even if the us part of this were taken off the table. daniel britto thank you for the update daniel very good job appreciate it thanks. and we now turn to an oldie but a goodie the rail industry continues to play a key part in moving goods and people around the world this past year in canada and the united states the industry has shown that it's far from being outdated in fact we're seeing some record numbers coming from the tracks archies alex joins us from toronto with more alex thank you for being here and how is the railroad business doing here and generally in north america. well a guy got to do is turn to warren buffet you know that guy likes putting money into rail is obviously the guy knows what he's doing if you look at something i just like canadian pacific railway ltd here in canada they have record profits for the first time one hundred thirty seven years are seeing like the highest profits ever and if you really break it down these are q three earnings that we're talking about
they're up with the september's number show earning around six hundred twenty two million that's up from five hundred ten million the year before and if you're looking at adjusted earnings it's up forty two percent that's a huge jump beating all analysts thought was going to happen now there's reasons for this and one of the big reasons is pipelines so as you know canada has rejected some pipeline projects that means that crude has to move by rail so when it moves by rail we were looking about twenty three thousand containers or car loads i should say of crude moving just in this past quarter what c.p. wants to see is about one hundred thousand moving in next year so that number will be even increased meaning more action on the rails and of course there are some other industries that are involved here and seeing these numbers go up it's not just potash automotive and intermodal as well as you know canada's got a big forestry industry and as well as mining industry up here so now also one thing that we're seeing is with things changing with the relationship with the states and proving once again with trade we're hoping to see more rail movement and
talking about the u.s. things are great in the u.s. to so dropping down to the u.s. just across the border here what we're seeing is q three profits for c.s. x. also very high they their performance was fourteen percent top line growth and the over one hundred percent surge in earnings that's absolutely massive attributed you can attribute this again to things like what's moving on the rail but also cost cutting product prices have gone up coal that's what's moving and intermodal now here's a graph to show you what intermodal what's happening here with intermodal when we talk about intermodal we're talking about containers that we take from boats to trains to trucks trucks are performing the way they used to gas prices are a little bit higher but more importantly in the states there's a shortage of truck driver so where do you put your cargo you put it on a train. alex give us a just a brief summary if you can of anything that's going on internationally outside of the u.s. on rail when you think about rail i think the first thing
a pop in my head would be india you get these pictures of trains with thousands of people on them and that's exactly what's happening in india you know it's not just about moving product is about moving people and that's a big thing when you go down there look you have these are some stats is absolutely incredible twelve thousand six hundred seventeen trains run carrying over twenty three million passengers a day that the population of australia each and every day moved throughout india and of course they have plenty of cargo trains as well we're looking at seven thousand four hundred twenty one freight trains moving three million metric tons a day they're up there with china russia and the u.s. when you're looking at that but their system isn't working that great because they're not really making money they're working at about one hundred percent a cost so they're actually having to put this money back into their train system they have a long way to go and it comes to the fact that they haven't raised their prices with inflation the prices are cheap to move up the tribes the prices are cheap to move people and they haven't been able to put back into their infrastructure they
need to bring their costs up so that they can actually afford a building and expanding their railways always excellent are to correspondent alex mahela bench thank you alex appreciate it thank you. it's time to return to a new and continuing feature on our boom bust program or our weekly global market round up and the shanghai composite index on friday at rally but down significantly for the week off two point two percent for this week at friday's closing bell some market watchers are talking about a growing crisis of confidence in those slowing official chinese g.d.p. figures that i told you about earlier in the program and jumping across a secret japan's nikkei two twenty five also down for the week that's the third maybe the fourth week in a row with a net negative for traders in tokyo moving back to hong kong for the hang seng down for the week in a regional trend may be starting there will keep an eye on that for. and hopping over the sea down to sydney australia to the australian securities exchange the a.s.x. one hundred is up for the week going back over here to the sensex to india to buy
stock exchange it's down a tough week in general per stocks across asia and then we head to africa we go down to johannesburg all shares index puts another red arrow on the map after a very big up and down week and lot of looking north to europe we see a split decision there among the three we're tracking both the cac and the dax the french cac forty of course then it's the german dax there and in london the footsie footsie is finally up a little bit at the footsie one hundred and that's just up slightly a big lift across the atlantic to south america we landed in colombia also down a coal capital index down for a week by about eight percent from where we follow our cup is due south east of the border to the brazilian amazon and the bible best in that index is up for the week the rest of the world may see
a likely win for that far right presidential candidate we've spoken about the narrow and the second of the final round of voting that's coming up on october twenty eighth and people may see it as a big red flag but brazilian investors seem to like what they see fueling a continued rally and in new york the tech heavy nasdaq is down we talked about these tech stocks have been down really for the last week or so although across manhattan at the new york stock exchange the dow jones industrial index is up just slightly for the week as our neighbors to the north tronto stock exchange they're doing ok that your global weekly market summary a mixed bag this week and as we go to break here the daily closing numbers in new york we back in a flash with a look at right hailing around the world and the car coach lauren fix.
you know world a big part of a lot of things and conspiracy it's time to wake up to dig deeper to hit the stories that made stream media refuses to tell more than ever we need to be smart we need to stop slamming the door on the past and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks. news in the morning. on the.
total wrong. oh boy. oh. oh it's a good move for you. north korea's history this to be seventeen years we are one of the only few countries that has seventy years of peace to have diplomatic relations with them we are. nuclear free status country and this policy is working for us and we're trying to communicate you know this denuclearized you know situate. we contributed much spitzer to their security then. nuclear you know program.
welcome back after a major bond sell off yesterday italy may be seeing some white at the end of the economic tunnel italy has been in a major bond sell off after the e.u. told the nation that they would need to rethink their latest draft budget which e.u. officials said was in violation of their own rules on friday however things changed here moscovici the economic commissioner commented on the situation indicating a willingness to continue a constructive dialogue with italy those comments have help slow the bond sell off even after it was also announced that their growth data only showed an increase of zero point one percent in q three the italian government has until october twenty second to revise their budget proposal. south korea's samsung the
largest phone maker on the planet blew past its expected earnings in the third quarter of this year reaching a new record for a single quarter profit of seventeen point five trillion dollars trillion one that's fifteen point five billion dollars on total revenues of fifty seven point five billion dollars that's a twelve percent higher than the previous record the record quarter in q one of this year and twenty percent increase year over year. and sticking with the electronics sector the swedish telecom giant ericsson is expected a sizable find from the u.s. securities exchange commission related to corruption and bribery in eastern europe and asia which resulted in the company's sacking of roughly fifty employees related to those charges the news comes even as the company's revenues for. the third quarter increased by nine percent year over year c.e.o. b. jorn ericsson noted it was the first profit for ericsson since twenty sixteen while
the amount of any potential monetary penalty is unknown at this time ericsson says it is expected to be a material fine indicating it will impact the company's bottom line. move or has received investments worth two billion dollars in the form of bonds as investors rushed to get a piece of the largest right ailing company around the world the bonds come only days after over executives say they would take the company public next year probably in the early part of the year as opposed to the later part of the year which they had said would happen earlier they value the company at hopefully a hundred billion dollars over appears to be headed for a strong profit or roughly ten to eleven billion dollars for the year that's up from last year's seven point eight billion dollars. at the same time a company is reportedly about to launch a staffing service called hoover works the idea is to create an app that would match people who work in jobs like security and then match them to events that
would need them so far sources say that such a system has been undergoing testing in l.a. and in chicago. and speaking of over we now take a little trip around the world and look at right hailing companies all over the globe and the biggest one out there is of course which operates in more than seventy countries that's where the double the closest rival china's d.d. which we've spoken about on the program by the way d.d. is a has a major investment from soft bank and actually sold its chinese operations two years ago to d.d. some other startups are efforts to take a segment of the sector in china like ali baba's auto navi and d.d. took that money from expansion and actually went into japan also they wind latin america will talk about that in just a moment coming up here but china is not the only place or has merged and sold a portion of its business in russia for example who are merged with the end x. which is the major ride hailer in the country still big in hong kong of course
although i tell you they're a little bit slow my experience in south korea who hit a roadblock and then another roadblock after it tried to launch a twenty fifteen only black seems to be doing well in south korea the major market share in the south korea right hayling business is controlled by korea's own cow taxi which has been around since twenty fifteen and in southeast asia over surrendered and sold its business to singapore based grab which dominates markets there although there is some competition from the local go jet called go vietnam or go d.s. in vietnam and others in indonesia go isn't unusual also they're planning to move by the way into thailand and then. australia guber is big down in australia followed closely by the spanish ola and the stoney of bass tax the five and of course d.d.
the local go catch an australian firm trying to make inroads but that competition is really fierce in australia and moving to india we go over here we see we have both hoover and all of their really splitting the lion's share of the market there and in africa we go and as you might imagine not many of the nations there actually have rides sailing services but there are some in south africa and uganda tanzania nigeria over and taxes by dominate the markets and in egypt we see up in egypt here they have both labor and karim the karim is the deal by based right hailing service and they've doing pretty well and in the middle east over here we have kareem also as market share in the united arab emirates in turkey and although in turkey the biggest player by the way is the local favorite called by taxis t x s i and in israel we have the right hail or get that used to be it was
started actually in israel it's get taxi and it's actually a carpooling service which is also in several other e.u. states to some extent like italy and belgium and some others but whoever is there and provide some competition in israel and moving through europe we go a little bit further and we see the places like germany and france over is a really big in and measure competition from blah blah car blah blah car get that name and tax apply and blah blah a car by the way is also a car pooling a server service and so there's also kava fi by the way the spanish based kava fi is there and of the united kingdom over here we go and we've got a bunch of we've got a local favorite there addison lee is there with over. four thousand vehicles plus get and plus and they still have those famous big black taxi cabs and going all the way under the ocean here or over the ocean as it were we do go to brazil with d.d.
but there are some minor players there with easy taxi and cab a cab if i was actually founded in brazil in twenty four to fourteen and then there are some other minor markets not big markets but there's argentina colombia ecuador peru and it's really cabo five and in those and the right hailing craze in central america has not really taken off but in mexico it's really. easy taxi and again the spanish blah blah car the french and spanish blah blah car and in canada its taxes by up here along with lift and over in the good old us of a lift and then the via and juno those are new york based startups that are trying to get a hold there and that market and that's the entire world of ride hailing i enjoyed the trip but i've got to drop you off right now but hang on there is more. and with
that more we now give us a perspective from the car coach lauren fix lauren thank you so much for joining us welcome back thank you for having me back so you know you just saw or heard that little tour. you know the world of writing but there are some of those less talked about a company i mean one of the reasons i wearily wanted to do this is because i hadn't heard a lot of those names and we always talk about over and lift and you know outside of the u.s. and canada people wanting to know lift but i'm just curious you know what you think about all of these start ups whether or not it's yen dexter grab or go i mean what do you make of all these things are becoming more and more commonplace right. it is becoming more and more commonplace mostly in urban areas and think about where parking issues are if ever been to europe and walked around especially in like italy we're going to park there double triple parked and you can't get to your vehicles and parking is that a massive issue in some of these older european cities as well and i was just in
portugal seeing the same type of situation so this is a great solution for people who one don't own cars maybe they need a vehicle instead of using mass transit for transporting children or a bunch of items it's best to use a car service but you will note that especially here in the u.s. car service is a very popular big cities and now it's starting to spread to some of the smaller mid-size cities and one of the interesting things i'm noticing is this is taking a big chunk out of the taxi cab services which were typically either privately owned or like in new york city of yellow cab and then you find the governor and the mayor saying wait a minute now you can jobs away from the taxicab industry which supports the politics of that particular major urban area so they're trying to stop the growth of the left and adding and companies like via in juneau which i do see running around the city a lot but i will note something that's very important if you're a person that says i'm not getting a car i'm going to move slowly to these ride sharing apps aaa just an interesting
study and found that it's actually almost twice as expensive to use them on a daily basis and rather than owning your own vehicle so i think it depends you have to do the math and things like that in most cases it is substantially more expensive especially when there is a higher rate based on the day or time of the week or if it's raining outside you know i've noticed. for example you know the difference between just the regular from the black has expanded exponentially and boy seems like the g.p.s. never gets better i wonder about you know is bigger always better with some of these folks and and do they even care that they're so they're so big but i'm curious what you were mentioning taxis there and particularly in new. your commute our global viewers may not know but they they you have to get from the city one of these medallions to drive it in the used to be worth hundreds of thousands of dollars but they've gone down in value and i guess a hedge fund is now buying these things because they do think that there is
a life for taxis do you that they won't go the way of the dinosaurs. you know i think taxi cabs make a difference there are times when you get to the airport and you order a ride healing service and you have to wait the same as everyone else when there's a whole string of cabs there waiting so typically when i look at the airports of cabs make the most amount of sense they have kept fees from like j.f.k. into manhattan so and that same is true in san francisco los angeles and chicago there are kept fees and so that's that where you don't get into a car service which i have had happen who didn't know where they were going even though they're supposed to follow the app that's built ten and so this is a concern that a lot of people have like i would say please don't drive me through times square and then the guy drives me through times square and so i give him one star and then i got to contact whoever the right healing services i do have problems with that the other thing is the background checks is really a serious issue see in the news every couple weeks you know this person was a little nuts somehow got through one of their filters or there never was a background check so one of the ones that's best we're finding is that if you use
some of these right healing service instead of the pool or those the lower end using the black service and you were talking about and some some countries are black you're actually getting professional drivers who are having the actual license for doing this not just over a license and those are the ones you're going to get the better service but you pay for that and you don't have to listen to. whatever the music is of the day that the driver has and sometimes it's really inappropriate i'll tell you i just drive oh yeah crazy we do not have time to get out of the admissions i do know that opal has to recall seventy thousand vehicles because of those you know cheating devices but we hope you'll come back in the next few days and talk about that and i hope you have a great weekend we know if you never have enough time with you lauren fix the car coach thank you lauren. thank you bart. and that is it for this time thanks for being on board you can catch boom bust on you tube dot com slash boom
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