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tv   Boom Bust  RT  March 21, 2020 6:30am-7:00am EDT

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24 hours to more than $3400.00 surpassing china's deaths brazil's cases more than doubled in just 2 days with more than $621.00 infected and 7 deaths it's the senate move to approve the state of emergency over the pandemic the united kingdom also is taking measures of its own to help its citizens and it steps. voice floating around. we have strict measures on. all the very good that we all the nations of you can do with all these regimes we could be 10. 10 copies of those risk rules to use to this day care. goes. to more. stress that we grew here the situation.
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so we could really use any of these measures as president donald trump said he's not considering a national lockdown but is limiting nonessential travel on the u.s. and mexico border summer of the one taken with the u.s. canadian border. we're working with canada and mexico to prevent the spread of the virus across north america very closely you heard what we did yesterday with canada is a joint comprehensive effort in collaboration with our neighbors. to measure and all of those measures that we're putting in place will protect the health. a little 3 nations and reduce the incentive for a mr lobel migration that would barely deplete the health care resources needed our people and so we are working very closely with mexico very very closely with. with canada and the relationship has never been better world working for the same
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toward the same goal. and new york is also taking more aggressive measures asking for all nonessential workers to stay home as cases climb to more than 7000 stating that businesses that are not in compliance will be fide california the nation's most populous state with nearly 40000000 people has also ordered its residents to stay home unless they need essential goods california was the 1st to employ them and mandatory statewide restrictions this could have a great economic or cause great economic disruptions to put it into perspective if california were its own nation it would be the world's 5th largest economy approximately 50 percent larger than anneliese. and markets around the world are continuing to face turbulence as we've talked about as central banks and governments look at what can be done to mitigate the effects for more on the latest economic impact of the covert 19 pandemic we bring in coverage with jim buss co-host christy i and ben swan but i want to start with kristie let's start with
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what is going on in markets on friday after just a hugely wild week kristie what's going on here. and despite the fed and the e.c.b. implementing its biggest asset purchase week ever the u.s. equity markets refuse to hold a bid lower and lower highs every papa sold off that's going to be the running theme for the next few months until we get a catalyst to either side futures had a limit up in overnight trading but the gains were quickly faded as we swung between small gains and losses friday only to accelerate into further into the close with the dow now and in the week down over 16 percent but the sell action today is needed as quad witching friday has crushed ball and essentially ended the mechanical sell now going forward the fed reserve is likely to boost its treasury purchases beyond the $500000000000.00 stated by now in addition to treasuries and m.b.'s the fed has also expanded its facility to include new bonds now this is a move that they have never played during the 2008 financial crisis so the question
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is how long before they expand the facility to include corporate stocks and bonds like japan now over on the fixed income side we have reported 2 weeks ago on fallen angels when debt has been reduced to junk status while bloomberg has just calculated that the amount of distressed debt in the u.s. alone has doubled to half a trillion dollars most of it does come from us shell companies have been beaten down by the falling oil prices and more are expected to come out of retail and travel industries within the coming months and as gold and other precious metals are getting sold off bitcoin is rallying once again up nearly 4 percent tonight at $7000.00 so that's a 90 percent gain in just a week as the as a turnaround from its deal. bridging panic drop momentum on decline built up following fresh announcements obliquity printing by the central banks which added another 356000000000 to the balance sheet so as pile when called oxygen i stated quote bake wine is not a hedge pandemic it is a hedge to ffion regine now kristie i want you to hang in there for just
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a few minutes because we're going to bring you back for more of your expert analysis. now the coronavirus shutdown has left employees in hundreds of different sectors without work and in many cases without paychecks as a result hundreds of thousands of workers have been applying for unemployment benefits in fact the labor department reported thursday that 281000 people applied for jobless benefits just last week up 33 percent from the week before but some companies are not choosing to not lay are not just to lay off workers and instead placing workers on unpaid furloughs which means no paycheck and no employment this is where we bring in boom bust co-host ben swanson ben thanks again for joining us today now marriott hotels has made the decision to close some of its hotels and furlough workers without pay now the company says the positive side of this is that workers could still receive health care benefits is mary out doing the right thing here. why i think it's a tough question whether it's the right thing i think if you're an employee who
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getting furloughed it's pretty frustrating thing right now because keep in mind you've got general managers housekeepers and and staff all in between who are being furloughed right now but no executives at mary out of being furloughed and at the same time you know when you get this furlough you're essentially told you're still an employee you're not unemployed and so a lot of these employees believe that they can't go and and collect unemployment at this point and that's pretty frustrating for a lot of people because while healthcare is nice it's not going to put food on the table tomorrow or this next week or over the next couple of months and who knows when these people get back to work and meanwhile many restaurants and even some hotels are moving employees to 0 our schedules instead of laying them off again does that prevent these employees from being able to get unemployment benefits as well. so it actually doesn't a lot of employees believe that it does so what happens is instead of being fired or being let go you are given 0 hours for the week the reality though and and for those who are watching right now if you're an employee and you're saying look my
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boss has told me that i'm getting 0 hours this week or i'm going to be one of those marriott employees who for a load understand this that a lot of experts are saying that you do not have to be unemployed to go down and get unemployment and to file for unemployment benefits a lot of employers are telling their employees you can't get it because you're not being let in 0 revenue coming in from your employer to be eligible you don't have to not have a job so if your employer is telling you you have 0 hours this week you can still go and apply for unemployment benefits and a lot of by the way brant employers are telling their employees you can't go get this don't listen to them they're not the one who makes that final decision the final decision comes from the unemployment bureau and so you need to go down there and file if you have any questions about it and this is definitely an interesting aspect which you have to keep an eye on as more of this comes out i want to shift gears to another issue and bring back christiane here to be part of this discussion there is a report that 4 senators sold stock shortly after a january briefing in the senate. the corona virus outbreak
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a loading shares that plummeted in value a month later as the stock market crashed in the face of this global pandemic now according to the hill senators kelly loffler of georgia james inhofe of oklahoma dianne feinstein of california and richard burr burro of north carolina each told hundreds of thousands of dollars in stocks within days of the senate holding a classified briefing on january 24th with president trump administration officials on the threat of the corona virus outbreak so ben what can you tell us about these stock sales. yeah it's pretty sketchy to say the least look at this kelly loffler who by the way is a senator right here in georgia where i am right now she is maybe the most egregious in this in terms of at least the appearance of impropriety we don't know that there was but it there certainly appears to be she sold at least $355000.00 worth of stocks that was from january 24th until the 31st she and her husband who by the way is also the new york stock exchange sold 890000 stocks from february 5th
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to the 14th in all she sold she and her husband sold between 1200000 and 3100000 worth of stocks and all of that kicked off the very day she began selling the very day that she and the city committee that she is on had a private briefing from the c.d.c. about the coronavirus and then she tweeted out that same day saying hey nothing to worry about folks there shouldn't be panic democrats are trying to scare people but don't worry president has everything under control meanwhile she starts selling now she's saying and i like christie speak to this part she's saying that she doesn't do this herself that she has 3rd parties that do it and she's not responsible for it at all but it's not just her it's also as you mentioned richard berke on the intelligence committee he sold between 581001 point 5000000 in publicly traded stocks after getting his briefings he sold it but he didn't buy a single stock during that time and by the way there is something called the stock act he actually opposed that back in 2012 now kristie for their part the senators there saying that the sales were made without their knowledge in the case of
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loffler she says the investment decisions for a portfolio are made by multiple 3rd party advisors without her husband's knowledge their same blind trust gets brought up a lot does that reasoning actually make sense to you. it does make sense because a lot of people and in positions of power as if you're a legal defense attorney or if you are a senator and position of insider information it is a fact that you actually do go through. a white notion such as this when you could . being accused of insider trading having insider knowledge so it is it is a fact to be but to think of not however the fact that they actually then went out to reassure everybody and they their actions spoke opposite of what they were telling the public so that kind of while it's not insider trading it is sketchy to say the least and if they were not and if they were actually doing something against what they were personal many. believed to have done then that is something to cause an investigation for us co-host ben swan and kristie i will get definitely
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more expert in else from you thank you so much. and as we've been talking about all week global markets are still mostly reeling from the economic impact of the kobe bryant teen pandemic so let's take a look at where things that add up this week in moscow it's actually one of our few green arrows in the week things looked rough for the russian exchange heading into friday the index was up 5 percent on friday alone so kind of bounced itself back aeroflot the airline again roughly 10 percent at the end of the week but it's still down around 40 percent year to date now markets throughout asia they're down all across the board on the week shanghai the shanghai composite was battered as western markets took big hits earlier in the week falling nearly 5 percent the index did end the week strong led by gains in the consumer sector although investor sentiment is up as beijing is getting ready to release trillions of you won in
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stimulus in hong kong the hang seng is down 5 point one percent for the week again having a rally on friday making up 5 percent of the previous losses again the stimulus measures seen throughout the world helped push things up near the end of the week and japan's nikkei is down on the week and it's hit 52 week lows and that's a trend we're seeing quite regularly lately in moving to india the sensex is also down on the week but made positive moves on. on friday regaining more than 5 percent of losses amid hopes of a stimulus package from the country's government state run oil and natural gas corp saw a nearly 15 percent spike on friday alone moving to australia a.s.x. also down on the week earlier in the week the index fell by 6 percent falling in line with the rest of the world and moving to south africa the all shares is also doubt but did see some gay is saw bounce on friday after the south african reserve bank announced additional emergency liquidity measures to ease some of the concern
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from the banks caused by this pandemic now i want to take a little bit of a walk to the other side of the studio and we're to take a look at western markets where we're seeing a lot of these same trends in europe it's a bit of a mixed bag between red and green arrows in france the cac is actually up and after seeing a 15 percent decline last week that's a big move measures by the european central bank to stimulate the economy made a big impact here in germany the dax fell 14 percent last week it's up as well a troubling week but closed up nearly 4 percent on friday on the back of stimulus hoax now there's still a lot of concern here data released this week shows business sentiment in germany poland adding facing the biggest drop since $991.00 the footsie in london also down london was not able to break even on the week after the bank of england announced another surprise interest rate cut on thursday so let's go ahead and cross the
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atlantic to the americas brazil's ebo best but also down after taking a beating early in the week as oil continues to struggle pressure across is down 7 percent on the week the oil iron ore sector also slipped quite a bit let's move north to mexico where the b m b is down on the week as well credit suisse this week up projections of mexico's economic growth saying they see the economy shrinking by 4 percent in 2020 very bad for that country's economy. here in the u.s. all major indices are down despite an early rate cut by the federal reserve and trillions in repo injections having the worst day this week in nearly 30 years and finally the ts x. also down the comp closely down after doing its best to rebound from the massive losses earlier in the week in fact on thursday the last 8 per cent pushed down as the canadian oil fell to its lowest level of record so there's
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a lot to look forward to moving into next week and that is your global market walk now time now for a quick break but hang here because when we return amid the coronavirus the developments in the u.s. embassy a trade agreement have fallen to the wayside we take a look at the future of the north american trade and how the pandemic has slammed the auto sector and as we go to break here the numbers today is that close. i'm going to fulfill repeated promises oh politics to the people i promise to be you know it's all bots to. be.
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pretty. pretty good. now you want to 1st. know. the last 10 or 15 years we've moved to an era of big data where so much from our reality and our environment in our society is governed by experts interpreting data
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and now thanks to corona virus this is all being stripped away it's all nonsense the krona virus is now bringing back to america some intuitive sense of self-reliance is going to be difficult and just don't don't get you.
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and detroit's big 3 automakers have temporarily closed all u.s. factories as businesses and citizens do their part to control the spread of the kobe 1000 pandemic now union leaders and members called for the closures to protect workers beyond general motors ford and fi at chrysler's closures toyotas and nissan said they would also shutter their north american facilities the move comes as auto sales worldwide have but nearly ground to a halt analysts at r.b.c. capital markets believe the pandemic could drive global auto production down 16 percent this year due in part to an expected 20 percent decline in sales in 2024 more on this let's bring in the car coach lauren fix was always going to give us expert analysis on this particular subject and many other lauren i want to shortchange you here lauren let's start with the downturn in auto sales at this time we have no idea how long this pandemic will last and how long these social distancing controls will go on how bad is this expected hit for the auto industry.
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for the auto industry on global basis we're looking at a huge impact with every single manufacturer pretty much shutting down production we're not just talking about high end cars but everyday cars we've already seen a huge negative downturn when it comes to china they're off by about 80 percent so far for the 1st quarter but that may change they're starting to get back on line but here in the u.s. we're looking at last year's sales 17100000 cars. is recommending and they're stating they're somewhere around $14900000.00 we have not seen a downturn like this since 2008 this is going to impact a lot of us because if you look at the dow jones half of it is impacted by the auto industry either by a supplier or something that supports the auto industry so this is going to be a huge impact and it's going to go a long time for us to recover. i don't to be to doom and gloom here but we have had guest after gas telling us we are already facing a recession maybe even a depression is coming will all of these auto manufacturers the giants will they
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make it out of this crisis or we could see consolidation what is going to happen moving forward. i think you're going to see some consolidation it makes sense that companies partner to share technology to share platforms and share drive trains everybody makes it to a leader turbo engine if more people start sharing that technology what that's going to do is allow them to make it personalized when it comes to the vehicle the features themselves so i think you're going to see a lot of consolidation i don't think we're going to see anyone going out of business but the impact to the stocks is going to be a long time turnaround. you know we've seen the airline industry call for a bailout already just a couple of weeks into or maybe a couple months into this pandemic do you see the call from the auto industry out there to start at those calls or are we a little bit early on that one. well i know the auto industry is here and they want to continue obviously selling cars building cars making cars but you know i think there's going to be a shift in what their plan was you know initially like g.m. was going to go all evie well there's been a lot of changes that may change because they're now. making money on making
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electric vehicles nobody is any brand they're going to start shifting to cars that make money and that would be pickup trucks sedans s.u.v.s that's are going to see a shift so you might see a region direction from a lot of global companies as far as future planning and now there's also some talk about the auto industry wanting to delay the implementation of the u.s. embassy a trade deal known as the new nafta do you know what's going on there. yeah the us n.c.a.a. supposed to start on june 1st but everyone's now off no one's working and so this is a problem so they can't get the regulations in place so they're asking to push it back to delay because that's going to make 75 percent of cars being built here for north america using north american components which is good for restarting the industry but we don't have the regulations in place so they're asking to push it back just a little bit supposed to go in place june 1st and that all depends on this pandemic and how long it takes for us to start recovering and i want to talk a little bit of market analysis here so far this year the big 3 stocks are really
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feeling the pain year to date ford g.m. and chrysler all down more than 50 percent honda and toyota are very much better 2515 percent down respectively how bad is that market impact for the auto industry as a whole oh it's huge i mean think about when general motors came out of bankruptcy and i think they got on the market too early they were at $30.00 a share and they were absolutely flat $3438.00 a share just kind of floating around they're now looking at closing today's market at $18.00 a share that's that's horrible and they actually should be very profitable it should be helping them but their stock is way down i have not seen for down at $4.00 a share since 08 and at that time even i purchased ford i no longer have a stake in that it's disappointing but unfortunately you have to know and buy and when to sell i think it will come and turn back around. any of the supplier stocks i think you're going to start a good time to buy if you've got the cash flow lauren fix the car coach thank you
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so much for your time today. thank you. and small businesses worldwide have been feeling the pain from the code 19 pandemic and as more and more people practice social distancing the government is also an acting force closures on businesses dealing another blow to the economy so console businesses survive another financial crisis for that we could argue correspondent side editors joins us on said side. thank you so much what's going on here you know this pandemic is hitting every industry and the latest victim is small businesses now we're talking about anywhere from restaurants bars dry cleaning day care services long services i mean you're name it they're being hit and you're seeing signs everywhere force closures due to c.d.c. government mandates so these are all small businesses being really hit but you know small businesses make a significant portion of the u.s. economy in fact service industry accounts for 77 percent of the qana mean so that's huge and here in the u.s.
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roughly $3232.00 small businesses employ about 47 percent of the private house 4 so right there that tells you the story and in the threat of permanent closures could have a lasting impact on the economy if there's been businesses survive you know during the financial crisis of 2008 we lost 1800000 small businesses and they never came back and we really really saw that pain we saw that impact in the financial market but actually a study by j.p. morgan chase institute published out 1400000 small businesses in september now this is even before and think overnight in pandemic they showed that only 29 percent of the businesses were net profitable and they had less than 2 weeks of cash in hand so these small businesses are practically living paycheck to paycheck to paycheck and it's something we've talked about on the show a lot is be economies already been struggling in these types of events are making them worse what are governments and other institutions private sector institutions
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doing to kind of support the small businesses are right now the small business association and they're offering low interest loans where businesses have been ahead so we're talking about metropolitan cities d.c. new york l.a. and also senate republicans are also now working on the phase 3 of a coronavirus aber they're going to offer a loans to small businesses where they're actually the portion that goes to paying employees won't have to be paid back. and that's the big problem here employees they just employers can't afford to pay their employees there in such a time but larger businesses are actually stepping in and helping like for example yelp which is the online search engine which gives reviews to small businesses now they're offering free advertising up to $25000000.00 to relieve to small businesses and also facebook they're offering about $100000000.00 in free advertising and although this is a very small amount to these businesses it could be very significant to the smaller businesses and advertising for
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a small business is so crucial so it is great that they're actually stepping out and we'll keep following the story sites have a job thank you so much. and that's it for this time you can catch boom bust on demand on the brand new portable t.v. episode on smartphones through google play in the apple app store by searching portable t.v. or streams to your t.v. by downloading the portable t.v. app on apple t.v. and online at portable t.v. or you can also catch the coronavirus tracker on the portable t.v. up or you can get the latest news and information about the spread of the virus and as always check us out on you tube dot com slash boom bust r.t. see you next time.
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blushes and thank you to the chico to hold more snow bleach to cut a hole close to each senor he said it's not that it's indeed some chances that all wish me to. let him into. the uniquely built in a circle included. a little bit i was called but i'm counting that in the scheme to show. born in the country and leave you families. given to us but to the south korea is just tell them not to be come forth summed up . the money approachable british mr west imo sure but.
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a fairly superficial porsha look at all the little try to if there was a news new york at the salon in china to start the new shirts with a cheerful last look you feel and i've been a stressful war for your clothes now i don't need to because maybe i'm for push mobile push if you're so foolish are going to kill us no hershey a good look at the system is. correct yes. or a little bit messed up by our d.n.a. in some way or another the complete i'm bored that surely isn't such
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a quick thing you know i'm sure you look better now than when you had hair come on it's nice of you to say so but i went bald when i was 25 i knew it wasn't so great that. you are no fan speed you're no longer a young woman in fact you are one of the last living survivors of the nazi yeah. i'm aware of it. all you like. you can never forget no auschwitz was really like to be inhaled close you would never believe it want to go to as a hobby of course for 30 years of both and be very bad it all seems so logical for by your side to make it feel right when i get out on the farm saw you know what. makes the place and hopefully bless my heart hurts.
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bad loans and it's a nice office it's the deadliest single day during the pandemic 620 lives lost and i bring france police officers threaten to quit unless they are provided with better equipment themselves from the virus and volkswagen becomes the latest car giant to hold production amid the pandemic is the health crisis ever more jobs at risk also to come this hour u.s. senate says make use of insider trading after they sold off their stocks twice ahead of these.


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