tv Boom Bust RT July 8, 2020 12:30am-1:00am EDT
join me every thursday on the alex salmond show and i'll be speaking to guest of the world of politics small business i'm show business i'll see that. time after time to repeat the same mantra sustainability. transitions to sustainable transport sustainability. the more equitable and sustainable. they claim their production is completely harmless. companies want us to feel good about buying their products while the damage is being done far away and this is something this must be done even on.
usenet we do. so when. this is boom bust the one business show you care its afford to miss in washington coming up on the show the future of tick-tock is in doubt as the united states government is barring the app for operating in the country this talk comes in the wake of india blocking the chinese company we bring you up to speed plus deutsche bank has been slapped with a fine for its association with the late geoffrey epstein but will it make a dent in the company and later brazil's president has tested positive for the corona virus is the nation has surged to become one of the new epicenters of coal
but now it seems we take a look around the globe to check on the spread of the virus when a packed show today so let's dive in. and china's new national security law is having a huge impact on businesses and finance in hong kong as we have been telling you the new national security law which took effect on tuesday is aimed at banning secession subversion terrorist activities and collusion with foreign forces to endanger national security now but now it appears that millions of companies that do business in hong kong as asia's financial center could be in danger of violating that law now that could mean penalties ranging from fines to having funds confiscated china's ministry of foreign affairs says that those who follow the law have nothing to worry about when the hong kong's national security law regulates for types of criminal acts that seriously in danger national security we punish a very small number and protect a vast majority of the rights and interests enjoyed by
a large number of hong kong residents and foreign institutions and personnel of hong kong in accordance with the law will not be affected in any way after being forced out of the law the legal system of hong kong will be more complete the social order will be more stable and the business environment will improve which is conducive to the prosperity and stability of hong kong but chambers of commerce are warning that businesses could violate the law without even realizing it that includes supporting any nonprofit or profit or charitable work that is deemed to be a violation of the law joining us now to discuss this bus co-hosted investigative journalist ben swan and geoffrey tucker the editorial director with the american institute for economic research thank you so much for joining us both of you ben i actually want to start with you in terms of what is happening with hong kong what are we seeing from business owners and how are they responding to this. well i think everyone's kind of responding to this as if they're walking on egg shells right you have to be very careful because again that the terminology that's being
used quite frankly to describe the this national security law and the things that it's putting down secession or anything that violates national security or creates these dangerous essentially thought crimes if you will or speech crimes if you will means that you don't really know exactly what constitutes a crime and what doesn't the other thing that's important is that hong kong police are not the ones in force in this it's being enforced by beijing so we already see like for instance there are some shop owners in hong kong who there was one in particular who has a clothing store he had a statue essentially set up inside of a protester to kind of recognizing the protesters who have been pushing back against the government there and calling for government reform immediately taking that image down in his store as soon as this law was passed on tuesday because he knew that if that happened he could face penalties for it so essentially it's a totalitarian approach to say if you say something that the chinese government deans is being a national security threat we can find you we can confiscate property we can
essentially take away the funds that you make as a business it's a chilling atmosphere i think for merchants working and business owners working in hong kong you know jeffrey how do you actually see this i mean i mean the law is it could force certain businesses especially western businesses to avoid hong kong will this law and hong kong's dominance as asia's main financial hub because officials there are saying it's going to be good for the economy. you know i don't i don't know for sure that it's going to be good for the economy the problem is under the china model you have supposed to be able to have political totalitarianism and free markets but we've not actually seen that work in china and and i don't think it's going to work in hong kong either i think this is a grave threat actually to hong kong's future and the real tragedy to me is that the u.s. has given up all leverage over the situation by escalating the the problems of china like our relationship is terrible and china's use in the annoyance and anger
at the u.s. to move the n. on hong kong and actually threatens you know this beautiful place that's been striving for so long and actually i think it's an existential threat to hong kong and to the businesses that are operating there you know jeffrey actually does want to clarify what you're saying there so you're saying that because we have these tensions may be over why are way over a trade deal over economic situations where the china that that actually reduces the u.s. is ability to actually weigh in on this situation to be taken seriously. look i think in many ways the blame for what's happened in hong kong right now is really should be addressed in par with the washington d.c. i mean for 4 years now it's been one attack after another has been tariffs we've been been driving this wedge between us and china and that's made china annoyed and it's broken down or influence the collegiality the character has of the relationship between us and china 10 years ago has led to these increasing
hostilities and made china's government a little bit paranoid about anything that seems to be pro western so we're actually reverting back to a kind of a and all you call it a like in 1000 forty's fifty's model and you know the attacks the attacks on what about while they have been completely outrageous and the tree sad to me because the u.s. has failed to back the movement of private enterprise and china rather has punished china for attempting to adopt a western style free enterprise or enterprise model and i think it's been a disaster yes i do think that the washing d.c. and the trump administration particularly bear some blame for have an escalated the tensions just systematic a month after month after month for years now and this is where you see now the u.s. has absolutely no interest but i want to move on to kind of another aspect of this we're seeing social media companies responding to the law facebook microsoft google twitter and zoom of all announced that they have suspended products the processing
of requests for user data from the hong kong authorities while they study the new law now meanwhile chinese apple tech tuck says it will stop operations in hong kong as well what do we need to know about this situation with all these social media sites yeah i think it's kind of funny that facebook and twitter are acting as if they are putting some brakes on what the chinese are doing essentially facebook and twitter about to get kicked out of china completely and they're trying to exist in hong kong what's happening there with tick tock it's really interesting because to talk obviously it's the fastest growing. chinese app ever growing at an enormously fast rate we just saw a band in india but what's happening in specifically in hong kong is that tick tock is no longer going to be available as we know it as to talk in hong kong but the company that owns to talk by dance actually has an identical version of tic talk that is strictly for chinese and it's not an english version that is what exists currently on the chinese mainland so that service is now available in hong kong so
essentially what dance is doing is they're treating hong kong like the way they treat the rest of the chinese mainland in terms of lack of access to those western influences and very quickly i think jeffrey is exactly right in that china while it seemed like it was opening up more to western influence over the past couple of decades now seems to be in rapid form closing ranks and moving away from that and this example of social media i think is a good example of that jeffrey i want to get to to one more here speaking of tick tock secretary of state mike pompei oh so the u.s. is looking at banning tick-tock and other chinese apps is this something that you believe could happen at the trump administration continues this battle with china that you actually just mentioned. you know the i'm sorry but there seems to be this apocalyptic spirit in washington d.c. every every sense corona thing came along we were banning fire from europe of cracking down with the lockdowns and and now crazy things are now the idea that
we're going to have extreme protectionism about the single most popular app among all that's under 25 year olds is is unbelievable think it's a lot and also get away with it maybe it will trump ministration seems to know or believe there's no limits what they can do but when if you're looking for a silver lining to this it's a way to recruit the entire young generation into a pro free trade. but actually push the panic that's kind. of going to. settle in on all 2025 year olds it's just inconsiderate figure out the streets . jeffrey tucker and bones one thank you both so much for taking the 3rd and break a little levity to the situation as well thanks so much. the u.s. treasury department on monday released the names of more than $650000.00 companies received p.p.p. loans as part of the $520000000000.00 program intended to prop up the economy as stay at home order shuttered businesses throughout the country and now this is just
a fraction of recipients of the loan as the government only identified those who were approved 415-0000 or more now according to the data while most of the loans seem on the up and up some of the companies and industries that received loans raise some questions nearly 600 asset management and private equity firms which allowed most of their employees to work from home received loans from the program while rapper kanye west yeezy brands which produces clothing and high dollar sneakers also received a loan of between $2.00 and $5000000000.00 and the list of head scratchers really goes on and on including large chain restaurants like p.f. changs and t.g.i. friday's billionaire west virginia and virginia governor jim justice's family business that work in the coal industry the girl scouts political advocacy groups and even modernist sculptor jeff koons so let's go ahead and take a look at the distribution of p.p.p. loans and how markets fared on tuesday with our friend tobin smith c.e.o. of transformative research tobin thanks for being here today good to be with you
now what do you make of this data released by the treasury department is this a misuse of the program when we see sculptors at restaurants with hundreds of locations receiving money or is this just business taking advantage of opportunity afforded to them and really being creative with paperwork. well i think if you go back to the beginning of this is that i've to my knowledge we've never had a type of grant that went to a business and said if you. began with 80 percent of this money goes to paying salaries that you can will forgive this loan now they didn't say who couldn't do it number one number 2 i mean i hear people are moaning about of sidwell friends up in washington d.c. oh that's a left wing school or or bush in washington these private schools getting the money they're big employers number one number 2 they employ you know the number of employees they have then you know by dry cleaning and by fast food now there is a ripple effect here so i don't think it makes economic sense to go after
a large company or a private equity company for that matter and say hey wait a minute you know you're a big money bags guy this money is all supposed to go to small guys on the other side of it those same 660000 above 150 grand that was 3 out of $4.00 that was put out so if the goal was explicitly to keep it to true true small business then we totally failed by the way i want to clarify that it's 2 between i apologize let me look at the number here the county west received millions not billions of dollars just i had a good idea i'll give me a call right now i do apologize to get him on the line but but the but the point here is toby into what you're saying is so is that a messaging issue with the whole situation because more so they said these were small business loans but now they're going to these giant firms when that really wasn't what it was it was just a messaging issue. right now and they stood they then follow up with this main street lending which is a different program there's also emergency group credit scuse me emergency
condition grants which are like $10000.00 of free money i mean the goal was and it was accomplishes that we had to push in fill it this giant hole that have been created sinkhole in the gut in the economy otherwise those ripple effects would just turn into a tsunami of facts so it has accomplished that but like anything else if you throw something together quickly and you have to get people in congress and senate to vote for it quickly they're going to do act 1st and they're going to figure out later i think when we get to the next to the list and it is coming certainly by the end of july there's going to be at a lower number is mitch mcconnell kamel said let's really get it to the under $45000.00 your households because they're the ones who are actually going to be thrown out on their arses if they can't pay rent and i don't think having a nation of 6 to 10000000 new homeless people many with children is is what the greatest country in the richest country in the world wants to see happen but i want
to hit one other point here quick before we go markets fell today after a pretty good run over the last week citigroup analysts said monday they didn't expect markets to be much higher from their current levels at this time next year and you've said we're trading on 2021 were trading 2022 has your outlook changed at all. no it hasn't been we're sort of co bit on cobe it off days right but the market his is now pricing in the fact the good old america will not go back into this lockdown mode you're never going to see that again it's not politically palatable at this point so if that then we're going to have higher rates and we're just going to have to live with that because because the alternative is too painful for all involved and that's what really i think the markets are voting on and so you look at any time you have a market go up with strange as it has now you've got to have days to cool off otherwise that thing really blows up with c.e.o. of transformative research always appreciate you coming in and break it all down for us. thank you brother. time now for
a quick break but hang here because when we return brazil's president has tested positive for the corona virus as the nation has surged to become one of the new epicenters of covert 19 we take a look around the globe check on the spread of the virus as we go to break here the numbers of the quotes. the arrest and charging of glenn maxwell and. what about the timing and the specific indictments what kind of defense can be expected is a deal in the cards will justice be served.
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welcome back new york regulators have deutsche bank in their crosshairs due to the bank's relationship with jeffrey epstein r.t. correspondent john hardy is following the story. deutsche bank agreeing to pay the state of new york a $150000000.00 fine for sketchy financial transactions related to jeffrey epstein new york state department of financial services superintendent linda lacewell saying in a statement quote deutsche bank failed to adequately monitor the activity of customers that the bank itself deemed to be high risk in the case of geoffrey epstein in particular despite knowing mr epstein's terrible criminal history the bank inexcusably failed to detect or prevent millions of dollars of suspicious transactions lacewell said the bank processed hundreds of transactions totaling millions of dollars at the very least should have prompted additional screwed. me in light of epstein's history including payments to individuals publicly alleged to
have been abstains coconspirators in sexually abusing young women settlement payments of more than $7000000.00 and legal expenses of epstein and his coconspirators of more than $6000000.00 payments to russian models hotel and rent expenses and consistent with public allegations of prior wrongdoing payments directly to numerous women with eastern european surnames along with all that suspicious cash withdrawals of more than 8 $100000.00 over 4 years deutsche bank had a financial relationship with epstein from 2013 to 2018 and according to this consent order to assure bank was aware of suspicious cash activity throughout the relationship and the bank continued to maintain the relationship for years despite additional red flags the bank cut ties with epstein in 2018 after the miami herald published its investigative series about epstein sordid history and questionable prosecution under the contentious 2008 plea deal the statement doesn't name any
event seems coconspirators f.b.i. agents and n.y.p.d. detectives arrested gilling maxwell in new hampshire july 2nd on charges of sex trafficking minors and perjury she's long been accused of helping to recruit and abuse the young women and girls epstein allegedly abused for many years some of them as young as 14 years of age maxwell is currently locked up at the metropolitan detention center in brooklyn on 24 hour suicide watch one of the big questions what incriminating evidence to she potentially have on epstein's rich and powerful friends who have also been accused of being involved with his nefarious behavior federal authorities are intent on keeping maxwell alive to answer that question and many others unlike they were able to do with epstein for boom bust john harvey. and brazil's president gyre balsa naro on tuesday announced he had tested positive for coven 19 the brazilian president has faced criticism for downplaying the situation
regarding the virus in his country for months and continue to do so in speaking about his diagnosis on brazilian t.v. . but the world everybody knew that sooner or later coded 1000 will reach an important part of the population a lot of people like me for example if i would not have done the test i would not know about the result that was positive. and let's take a nother look at the spread of the virus with our 2 correspondents our tablet or so our world we worldwide so brenda's where we are right now global cases there is more than 11800000 confirmed cases global deaths at least 5 143000 in the u.s. there is more than 30000000 confirmed gay says while at deaths there's more than 133000 and i want to start with latin america that's again seeing a huge surge in cases and brazil right now is only 2nd to the u.s. and number of infections and deaths where more than 66000 people have died of the
virus in brazil and almost 1640000 cases have been confirmed so far 21000 just in the last 24 hours and it doesn't help when president also narratives encouraging the country to reopen even as the number of cases are going up and brand while the president can afford the best health care in brazil to treat him it's the country's poorest that are struggling to access proper medical care and because brazil has a deep inequality and depend demick has had poor communities the hardest for most people even like running water and are cramped in housing so isolation has been impossible for many residents who work doing things like cleaning homes or are delivering food and i want to go over of peru that has just jumped past 305000 confirmed cases the 5th highest in the world and perugia with a population of 33000000 people had
a countrywide lockdown back in march but really struggle to enforce a nationwide quarantine. because many of its citizens were facing just too much of an economic hardship to stay at home so we're seeing the numbers going up now now moving over to chill a which was very slow to implement lockdown measures and granted a large number of exceptions for session essential workers back in early may and now is the 6th country with the highest number of cases in the world with over 300000 cases and mexico that's now 5th in the numbers of deaths globally with 31000 and over 261 confirmed cases and you know get this residents of the town of solenoid which is a very popular seaside resort in mexico and a short drive from arizona are now blocking the main road leading cells from the
u.s. border or are fears are people from the u.s. traveling to mexico could bring the virus with them from brazil now lastly i also want to mention colombia where cases are over 120000 deaths and deaths and deaths are surging along caribbean coast as the region mccombs that pick center depend demick with doctors warning that many more deaths are actually going on reported brant. what about in the u.s. what are we seeing here as far as the trends so once again 3 states arizona texas and florida keep showing up as hot spots now arizona has reported 117 deaths just in the last 24 hours with over 102000 cases and arizona has also been setting record high daily deaths counts about once a week while also reporting the lowest ever number of ice you bet vailable on
tuesday and then moving over to texas. where more than $9000.00 new cases were announced across texas as the largest single day total for the pandemic bringing the cases to over 210000 meanwhile texas just announced a public face mass order which is a company late reversal by the governor who earlier downplayed the severity of the outbreak in his state and finally florida you know which initially avoided the worst of the pandemic in its 1st few months now has the 3rd highest number of corn and ice cases in the us 206000 and counting and brand despite all of this florida's education commissioner issued an emergency order on monday mandating that all schools open for the paula for the fall and the order appears to follow president trumps wishes were he tweeted schools mosques open in
the fall. are to correspondence are tabular thank you for keeping us up to date shares in india's largest company reliance industries hit a new record high monday afternoon following the company's telecommunication arms geo releasing its new meeting app for the general public geo meets release comes as web conferencing apps have taken off amid the pandemic with zoo microsoft teams and a host of others seeing huge traffic as face to face interaction just isn't possible with me users can hold a meeting of up to 100 participants and if you can't get enough of online conference call their website states mexico for 24 hours reliance geo recently received huge investments from social media giant facebook as well as intel corp and that's it for this time you can catch boom bust on demand a brand new portable t.v. epic which is available on geo platforms as well as smartphone through google play and the apple app store by searching portable t.v. or but you can also download it on newer models of samsung smart t.v.'s as well as roku devices or simply go to portable t.v. so you next time.
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