tv Boom Bust RT December 14, 2017 8:30am-9:01am EST
fox merger could mean for the media industry now let's get to today's top business and financial headlines. although google has had a complicated relationship with china the company is trying to work past their differences on wednesday google's owner alphabet announced the creation of the google china center the center will focus on quote basic ai research in beijing and will be led by faith in a statement she wrote i believe ai and its benefits have no borders whether a breakthrough occurs in silicon valley beijing or anywhere else and has the potential to make everyone's life better as an ally first company this is an important part of our collective mission and we want to work with the best talent wherever that talent is to achieve it this will happen even though google's website cloud services and video platform you tube are all blocked in china. republicans have reached an agreement on
a tax cut package earlier wednesday morning senate majority whip john cornyn said i don't want to get out in front of the chairman but we're very close the g.o.p. is hoping to send the official proposal to president trump by next week. for the third time this year the federal reserve has decided to raise interest rates this time by a quarter percentage point following a two day policy meeting while officials are releasing new projections on growth and i'm planning to one say they don't know how the economy would respond to a major tax overhaul just yet and wednesday's press conference was the last for a chairwoman janet yellen who will be replaced by howell on february third. for the latest on block chain bitcoin and other digital currency use we are joined
by regular middleton the founder of veritasium reggie thank you so much for being here really appreciate your time so let's break this into two parts let's talk about block and then about bitcoin are companies adapting to the block chain as you see it not yet companies say they're adapting their. share database technology that allows two disparate or more to a more disparate and cities to deal with each other without a third party so a lot of lip service but why what's slowing them down do you think well a lack of understanding number one the result of dealing with a block change see what the bloodstain does is it out to disparate to a modest report has to work with each other so if your business model is predicated upon charging these two businesses and cities then you're putting yourself out of business so banks brokerage firms exchanges really don't want to put themselves out of business so they're trying to modify the technology to make it do something that they want think of the horse and buggy manufacturers lobbying for cars unlikely
to happen but it's going to happen eventually so that actually get that piqued my interest there so. are the. whether or not it's financial systems but payment systems essential are they going in and trying to adapt their old legacy systems which are pretty antiquated or are they sending in like a new swat team of block chain guys to to rebuild or neither nor well this sending in a bunch of contractors to rebuild the wall to replace the old wall but the problem is the wall is not necessary anymore so what you have is a fundamental change in business model ok the new business models are going to be the new industry if you think of the internet in the blocking. chain a paradigm shift very similar to the internet before the internet you had friction and communication so media companies would get before as four hundred five hundred
you know the guys at the top media moguls that benefited from the difficulties in spreading information or contacting others with google facebook you tube now those revenues are shrunk the margins the shot and how many media moguls the old media moguls members of fortune five hundred i think zero difference at the top this time next year that fortune five hundred list is going to have digital as a billion as all over the place we want to. look when to look guys next year at this time and see if ready is right i actually don't don't doubt you so if the early adopters of block chain are paying out a little bit more lip service than actually you know get in the on the ground excited to do this are there let me just semantics there early adopter technology all those billionaires they're already billionaires now they're just not recognized the people and cities that you're reading about in the media are not they're the adopters these are you know ok now it's very good very good point and
a lot of those those folks not the early adopters but the others who will migrate to this are the more established industries that they have these antiquated legacy sis. which you can't just go in and change one thing it's a lot of silo different systems right so you my question was whether or not there are enough entrepreneurs in the block chain space enough contractors to actually do this work now i mean how many companies are doing block chain work contractors and are there enough now and will there be in the future but of course there will be you learn. companies very tasty which i think that the forefront of course side by is yes. really good contractors and employees from the software engineering space the financial and space etc we train them to work in the space if you try and look for the expertise itself you have a very very small sliver and they have a small sliver has
a very high price tag so we did intelligence and we train them on the subject matter versus finding the subject matter and then looking for intelligence inside to something that i'm not saying it doesn't exist but you know hard to find are your folks primarily in the u.s. or are you outsourcing to the philippines or are someplace everywhere where korea europe. the u.s. and potentially even sub-saharan africa will see oh well good for you in that regard that they need the assistance ok i'm curious just about the people and this is the lip service part that you're probably referring to talk about block chain revolutionizing all sorts of payment systems but what's realistic reggie i mean what sorts of things what sorts of smart contracts and real estate what sorts of payment systems do you think are going to be the first to adopt these sorts of using blocking as a basis for their financial system so let's rewrite the entire landscape payment systems are not the end all be all for blocks and services these used payment
systems because because is the you know preeminent it's the big thing news right now because is technology one point zero you have these two. region which is beyond the simple because change interface think a business model change payment systems when it's time for you to take it over is sort of calling a centralized company such as were incorporated and dealing with that server and then taking thirty percent cut you know pick up if you interact with a small contract that puts you in direct contact with the driver unit driver interface directly with a small contract you know mediating it you don't rely on a third party you don't pay a thirty percent cut is more like maybe thirty basis point cut same thing with finance goldman sachs if you guys but you know high margins by j.p. morgan insurance companies new york stock exchange your next etc basically all high margins get cut to it's essential. as it's well i know that is the.
vision and i've heard a lot about it you know just with my expertise in the financial sector that that that's what people want to do and i know a lot of the folks involved in. you know digitals in general are sort of. alternative freaked out by the currencies and i get all that and from a consumer point of view i mean. if you can get rid of middlemen who we really don't need in the future through technology so i can i get it with your consumer guy but there are some that are out there and i know this really well like in the banking sector so instead of having a public distributed ledger among everybody out there they want to have a close distributed ledger for block change so for the banks for example they don't want to lose out on being the middleman they want transaction fees like we all pay with our debit and credit cards right now right right ok so who is going to when
are they going to develop their own internal ledger system among all the big institutional banks ok and then there was the cause of your hypothesis it may work in theory but in that space particularly you think it might get toward it you know they will develop their own internal system we've seen this movie before does go back to the internet when the internet sort of say in one nine hundred ninety two in one thousand nine hundred six that anybody develop their own internal networks such as internet you know well you know it well you've got mail those that's where you got mail last time i watched the rerun the movie exactly right and the reason why you don't have it anymore because america online is close network was so common that people found out that you was coming to market forces and everybody found out the regular guy found out i could access the internet close to free and i don't need to go through well you know and i have much more freedom capability at lower costs the same thing with a banking system they have their own networks and to each other and it's going to
be run over by the public networks a much greater network effect when one person uses the product and one product has value when two people use it it has two times of value plus a small amount two hundred million people use it as one to me intel is a value plus x. y. z. . really fascinate. we could do this like for the whole time but we've only got like thirty seconds left so i can't let you go without just talking about bitcoin i know you talked about it on the program before you've always been a trolley when i've listened to it but what are your thoughts about what's going on just in the last six weeks maybe two months with the with the price well everybody's anticipating the futures market opening and you'd be an absolute fool to write futures without having underlying to hedge yourself and so there's a lot of demand for pickling to underwrite headship it confucius that's just with. c.m.e. opens later on this week i think next monday and next monday then you have japan ok following and then you're going to have other derivative products once you have
futures you have. yes and then you have the ability to actually do these directly using our product you can have direct we want to want to without the risk with the exact same business model that i assume it's very tasty in dot com right very tasty . reggie thank you so much c.e.o. . i think a lot. time now for a quick break but stick around because when we were turning we'll take a look at the implications of the possible deal between disney and twenty first century fox and we'll hear from our chief correspondent alex mahela bichon wide canada decided to snub boeing and buy their fighter jets elsewhere they weren't there when their i fact.
i played for many clubs over the years so i know the game and so i got. the ball isn't only about what happens on the pitch put a funnel school it's about the passion from the fans it's the age of the super money kill you know news and spending two hundred twenty million and one player. it's an experience like nothing else not to because i want to share what i think of what i know about the beautiful game but great so will bowl chance with. the base it's going to take.
tromp benefit. very much from the existing plurality rule system because he was so different from the other chairman if you took any one of those mainstream candidates and you put him in a head to head contest with. that other candidate might well have won. it's a visible. one when the. outcome of the city. is blue you wouldn't give them which are going to. let.
this rogue reserve than you're. going to be in all three men to me when i put on the clip. is from another from the yes i will get on the one that was in the building because you know. i thought that the ample. if disney gets its way at all by a large chunks of twenty first century fox in what could be one of the most significant media deals in history if the deal is approved disney would be in control of one of the country's biggest movie studios in the us and some of the most popular channels like f.x. and national geographic it would also give me a majority ownership in. hulu one of the major streaming networks and might relieve
them of their problems with sports coverage by buying parts of twenty first century fox disney would get access to sky sports stars sports and other regional coverage which could offset their struggles with e.s.p.n. however the deal would take at least a year to close and would still be subject to regulatory approval. across the world people are familiar with names like snow white the simpsons mickey mouse and family guy as well as companies that own them disney is synonymous with entertainment media global empire and twenty first century fox says their own huge media company covering nudes animation and movies now the disney company is set to take over twenty first century fox in a massive sixty billion dollar deal if we take a look at the last month both disney and twenty first century fox saw sudden price
increases after the deal was made public what does this mean for media for entertainment industry now that these two titans are already to seal the deal joining us to discuss is professional lecturer dr margo of american university margot welcome thank you for being here thank you this is this is pretty huge big time deal right what do you make of it this is a massive deal that's set to make disney an even larger player in the theatrical and television and streaming market here in the united states and across the world this is a mega media merger when you compare this with you know other. mergers and folks getting together in this space there's really no comparison is there well i think that the eighteen thousand time warner deal that's under scrutiny now by the department of justice and some other newspaper deals and broadcast. deals have been large on the scale but i think in terms of films and the size of the
studio this deal really is one that we haven't seen the likes of in decades it would essentially merge disney and twenty first century fox so the first and third largest film companies in the world and you're talking about a global audience on the scale of which is is just unprecedented so part of justice they have their antitrust division that i know you follow all the time what are they going to think about this i mean they're required by law to look at these sorts of things right absolutely i can't believe that this deal if it were to you know to be started i can't believe that this deal wouldn't be under intense scrutiny from the department of justice in the same way that the eighteenth tee time warner deal is is is under is a lawsuit now pending without one so i think this one is going to get the same level of scrutiny you have essential human up a list of conditions that are going to be created in film potentially television
and sports and i think they're going to take a really close look at this deal what are because they both own lots of things right what are the things that twenty first century fox. might be the. particular is it sports sure is it something you know so i think the sports is one of the concerns and would be interesting to see in the deal how sports plays out in your spirit right straight does disney owns e.s.p.n. it also owns a b c but twenty first century fox owns a number of regional and national networks in addition to a european channel so it would be interesting to see how sports looks under this deal if fox is going to keep some of its more national sports channels in order to spin off its regional sports networks in order to kind of maybe lay low in that area but i still think that the department of justice is going to be very interested to see how film looks under this deal us. have lucas films marvel
studios fox searchlight pixar they would all be under the same umbrella of this you know this new disney twenty first century merger and i can't believe that that's not going to get some intense scrutiny so there's so many questions are fascinating so the d.o.j. they could look at this deal i think they've done in the past but you're the expert and said look you know we're not ok with it for these certain reasons and then you know does the for example could sell off that thing and then. redo the deal reapply for the merger well and it would be interesting to see yes absolutely the department of justice and you know there is supreme court precedent here the paramount decision when film studios had so much power in the middle part of the twentieth century and production distribution and exhibition there is precedent here for what happens when companies get too big in the entertainment and media industry so will be interesting to see how d.o.j. hand d.o.j.
excuse me handles it and what that might mean for a future merger but let's remember here that they were a year away even if they said on thursday yes this is something that we want to make happen we're likely looking at twelve months of you know before something actually gets done and finalized who i don't know if you can even equate to which who would benefit more i mean when you think about does the you think about kid stuff and i think about the grandson of jake and the pirates and stuff. you know they really they don't get blocked by you know any adult content thing so by taking by with being with twenty first century fox is does the essentially going to be maturing itself for older audiences are they going to need to they need twenty first century fox more than twenty first century fox needs disney it's a good question and i think that disney does right now need twenty first century fox's television properties really more than anything if. it's going to want to compete head to head with netflix so disney has tried streaming service as
a kid streaming service and it's just doesn't have the content to compete with netflix it doesn't have what twenty first century fox offers f.x. programming like sons of anarchy films like deadpool that that i think consumers in the streaming service really would hope for so in that way i think that disney needs that content and remember the disney has already said it's going to stop allowing netflix to run its films in two thousand and nineteen so i think that we're preparing for they're preparing for a battle here and be really interesting to see how it shakes out one of the things that we like to do on this program is not just talk about you know that the u.s. economy business and poignant stuff but how this impacts people all over the world tell me about how this would impact things going on internationally well i think that the international implications are huge for this deal let's remember when i talk about disney being the leader in theater and the twenty first century fox
studio being the third one we're talking about billions of dollars in revenue that are generated from films a majority of that comes from overseas ticket sales so i think that part of this is in order to to gain more power in international markets emerging markets like india but i also think that china is going to be really interesting to watch in this if this deal goes through and how a mega company like this is able to try to negotiate with the chinese government which really makes its own own rules when it comes to exhibition and release states and it would be interesting to see if this gets a bigger more seat at the table for a mega company that would emerge in its wake and i'm sure. we could talk about another time but the issue with china and all of their the trademark protections are true that's got to have rules but they don't always abide by even those on weak real quickly we've got about fifteen seconds just going to this merger happens good or bad for. consumers i think that it's going to be good for consumers and that
it's going to force netflix to create even better original content and maybe disney too so in that view i think it's going to be good margot thank you so much for being with us here appreciate it very informative insightful. canada's shopping for fighter jets after ditching a plan to buy new super hornets from the u.s. manufacturer boeing the u.s. imposed an eighty percent import tariff on canadian bombardier jets and now in retaliation canada is looking elsewhere for the planes artie's alex mahela bitch has the latest from toronto hey alex thank you for being with us sure appreciate it canada seems really dead set on buying from boeing where does it plan to get these things that dead set against buying them from where it's going to get the jets. that's basically a slap in the face to boeing that's what the canadian liberal government's trying to do with this maneuver billions of dollars response to go to boeing for these
jobs but boeing is complaining over and over again about bombard ga and its low prices for its passenger planes so the canadian government said no we're going to go someplace else and where they're going well they're going to australia to buy eighteen used fighter jets also f. eighteen not super hornets these f. eighteen that are used are actually pretty much exactly the same things canada has that its current fleet they're both thirty years old they're from the 1980's and they're going to be spending hundreds of billions of dollars to buy these jets also send a message to boeing this is a stopgap measures the canadian government is calling it before they actually buy some new jets others say they're going to save on equipment they're going to save on training. pilots already know how to fly these f. eighteen s but critics say you know what they're going to be spending billions on hundreds of millions because these are old jets and as much as you might have parts in stock there could be new parts that you're going to need to fly these things and we all know flying fighter jets is
a very expensive prospect now the canadian government the number one message that they're trying to send here is that companies that harm canada's economic interests will not win a contract in canada that the methods they're sending to boeing and i think of bastards are trying to send to everybody before the bidding comes in for new planes . and don't knock the eighty's but i get you on on the eighty's planes etc so what do you think they're going to end up doing i mean i understand that dilemma but what are the options for canada when they decide to buy new planes and i love the eighty's also but when it comes to planes sometimes you need new things in the air too right so canada has a lot of money right now at stake they're looking at twenty six billion dollars they're waving it around to everybody and they want to have eighty eight new jets by two thousand and twenty five so what are some of the options well lockheed more . for example the f. thirty five a u.s. built plane this is something that the government before trudeau was deeply invested it didn't happen once or new prime minister kicked into place and kicked
this prospect out just simply because it seemed very expensive at the time but we know it's always going to be to expensive then the euro five years the thai food is also on the list the raw file from france the group of which is a swedish plane it's built by saab and guess what that list still includes the super hornet by boeing because who knows what's going to happen in the near future or even in the long term there's a few years left here before these judges have to the order has to be made so boeing might stop harassing by barge and that everybody will be happy we'll see about that so what year did you say twenty one did you say they want to develop two thousand and twenty five twenty five want to know there will be another presidential election here and maybe some of this talk about nafta. will be resolved some of the trade issues so that's why they probably have it still on the list right absolutely yeah as well as a knows what kind of government we're going to have here by two thousand and twenty five as well that could change quite quickly to think you are to correspondent alex
mahela that's thanks very much and you give. it point is taken over the twenty four hour news cycle data with skyrocketing price there are plenty of other cryptocurrency is and related products that are doing well now too like crypto kiddies crypto kiddies in think game where users and breed and trade digital came with a theory and based smart contract and its popularity has been soaring recently and fact total sales in the game have reached twelve million dollars with some crypto kiddies selling up to eighty thousand dollars in an interview with the verge one user said he's made more money through the game and he has in his ira retirement account but he also expressed the risk associated with that and said he wasn't sure how much longer the game would be around. i'm not tempted by digital kiddies anyway thanks that's all for now be sure to keep. boom bust on you tube at youtube dot com slash boom bust r.t.d. thanks for watching the next time.
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that the. president vladimir putin concludes his annual marra think q. and a session with journalists after i'm sure more than seventy questions in almost four hours will bring you the highlights from that coming up. ahead to the nation's call for east jerusalem to be recognized as the palestinian capital while rejecting the u.s. role in the whole middle east process. every possible step must be taken the implementation of this illegal action by the us administration i mean for the u.k. and say please that rebel against their own prime minister backing a parliament to any final deal on leaving the e.u. .