tv Boom Bust RT April 12, 2018 3:30am-4:01am EDT
headlines u.s. house speaker paul ryan the republican from wisconsin and former vice presidential candidate in two thousand and twelve said today he would not seek another term in congress the move places a republican controlled house in somewhat uncertain footing amidst the ups and downs of the trumpet administration in his remarks the speaker noted his efforts at completing the tax reform law and acted late last year as one of his key legacy policy accomplishments listen to a little about what he had to say about why he was stepping down you know my story my dad died when i was sixteen the daughter the age my daughter is and i just don't want to be one of those people looking back on my life can i spend more time with my kids when i know if i see one another term they will only know me as that we can father good for him although it is a loss for the nation is a good guy at boom bust we try not to focus on politics or we do so primarily as politics impact finance business and economics and that's certainly the case with regard to speaker ryan has had an important impact on all of those things. the
managing director of the international monetary fund christine lagarde is warning of the risk involved in any escalation of global tensions over trade guard told an audience in hong kong that tariffs raise prices and limit scheuer says and warned against protectionism in all its forms the guard also suggested the united states could offset the effects of trade deficits by cutting spending and increasing revenue and that germany could invest a portion of its huge trade surplus into infrastructure but the guards most head turning comments warned of potential collapse of the contemporary global trading system remember the nitty lateral system that transformed our world over the past generation helped reduce by huff the proportion of the global population living in extreme poverty. it doesn't reduce the cost of living particularly for the poorest consumers and it just created millions of new jobs with higher wages
the next meeting of the international monetary fund in the world bank as explained will be taking place in washington d.c. next week and we are to america will be there coverage and exxon mobil is negotiating a deal with katter that could grant the country ownership over a supply of u.s. natural gas and allow exxon to get more of their gas to more markets with higher prices the fate of the talks is likely to determine the future of what's called the golden pass a gas export facility at a site in east texas exxon is seeking to secure the qatari investment to expand the tare own facility a ten billion dollars project that would allow exxon to process and export more natural gas from the u.s. and meanwhile regional rival saudi arabia has made a surprise announcement of the sale of eleven billion dollars worth of bonds the bond sales occurred without the usual fanfare of what they call
a road show where investors are brought are pitched in where the announcement is made at a later time this time qatar was actually in the middle of their own road show for the first bond sale in two years when they heard about the saudi sale in two thousand and seventeen saudi arabia and other regional allies escalated their campaign against iran by seeking to punish the tar for diplomacy with iran by means of including travel and trade bans. and all prices are trading at roughly a three year high around sixty nine dollars just before the show started we'll have those numbers at the new york mercantile exchange at the break the final numbers and brant crude the global shark was trading around seventy two dollars a barrel on ice futures europe both benchmarks have hit their highest level since december of two thousand and fourteen the average price for a gallon of regular gas in in the. i did states is two dollars and sixty six cents that's up thirty cents in the past year and here discuss energy and oil in an
increasingly conflicted geo political world is horner a futures and currency expert at simpler trading thank you again for being with we sure appreciate it as i just noted we have seen the highest crude trading the highest level since twenty fourteen as conflicts in the middle east continue to escalate or these price increases pretty much based upon the fear of supply disruptions in the middle east i think that's part of it i think we had a terrific boost from chinese president jiang as far as the trade war tensions turning into maybe a trade war trade arm wrestle and sort of a trade war the equities markets like that crude oil market like that and you're absolutely right you know when you add the syria narrative into the entire mix you see where crude sat but i think i caution a lot of traders could be sitting at an over sold a temporary over bought level we could be looking at a ceiling here in the near term before we push higher if we push higher well that's
interesting i mean some some folks in the middle east reported thinking that it could get up to eighty dollars a barrel you don't see that happening. well the eighty dollar a barrel narrative and i love that you mention it because that right now is definitely taking a lot of the spotlight at the moment and that's coming from the saudis the saudis need that eighty dollar a barrel level their government budget demands at the aramco i.p.o. really will require that but on the other side you've got say india's oil minister you've got your on's oil minister talking about seventy dollars a barrel so i think the saudis are going to do their best a job on its eighty and i think you're going to see iran in india trying to pull the reins back on that the india story is one that not enough people may be looking at and that is they're the third largest oil consumer the saudis have been have lost a lot of market share to russia providing china and india so i think the indiana
oil minister's comments at seventy dollars could be a whole lot more have a whole lot more punch than people thought and raji do you think that the production cuts in place by opec and russia primarily but some others other than opec is going to are going to stay in place i know there's an opec meeting coming up in in june what do you anticipate. i think that the production cuts will likely still have high compliance and in that june meeting i think you're right they're probably going to stay put the real battle is going to be how the saudis can get that oil production cut to get the prices to eighty dollars while still appeasing a lot of the other opec members or even consumers like india who want prices much much lower and they think that as these prices rally the shale story becomes even more a threat and iran knows this and this is a tug of war that we're going to say and it's going to get very interesting in june i have a feeling though the saudis are they might get their their way just because they've
got the loudest megaphone in the talos podium they're going to do their best to talk the market into that eighty dollars target or gee i want to do a little fanciful although i hope it's fanciful discussion about syria and what could potentially happen with oil prices and if we do see some sort of increased conflict you know president trump has tweeted essentially watch out and you know the russians are certainly in there i mean what if there was some sort of shooting war over there what do you think in that horrible circumstance might happen to prices i'm thinking that maybe are your estimate about made or topped out might not stick. absolutely and that's the wildcard right what would happen if that were to escalate now if i'm going to use a sort of rhythm so the geo political slash you know tweet fest rhythm we've seen there's a lot of hyperbole that precedes any kind of negotiation so i'm just thinking that
perhaps this is that tweet storm that we tend to see oftentimes in a myriad of topics that precedes more level headed and negotiations and it really doesn't serve anybody at this point other than perhaps anyone who's looking for price to head up towards eighty but in the bigger picture i don't think it serves anyone and i think we'll see cooler heads prevail and that's i believe what the markets making a bet on as well and i will hope and pray that's that's the case as you let me ask you one final thing before we go we reported the other day about these eighty billion barrels that were found off the coast of bahrain is that a big deal for them and i mean it's a huge discovery but you think to be able to extract that make a profit i know they're one of the poorer. members of the middle east over there. you know bahrain had previously much smaller proven oil reserves somewhere the vicinity of a hundred twenty five million barrels and now we're talking about eighty billion
and i believe you spoke about already the fanta narrative is going to be a big one for them the problem is there they've been challenging to deal with the international community communities have a difficult time with the contracts in bahrain they're very very stringent about those contracts and the way to the way the oil is situated to tight reserve it's going to be tough to get to it's going to be costly hala burton and schlumberger have already begun their test wells so the challenge now is going to be how much of that eighty billion is actually recoverable and from a geological standpoint it may be very little there's also a huge thirteen trillion cubic feet of natural gas as part of that discovery so both are significant discoveries but the extraction is going to be costly and that's why i think it may not be as good news as people think and it's at least five years off from where we are right now to actual extraction roget we appreciate your expertise it's always informative for me and our viewers futures and currency
expert at simpler trading reggie horner thanks for being with us. and in the united states the benchmark consumer price index the c.p.i. used to measure inflation was up two point one percent in march according to the labor department here in the u.s. the increase in the so-called core c.p.i. was the biggest since february of two thousand and seventeen health care and rent were among the expenses with the biggest increases analysts point out that inflation is steadily edulis edging outside of historic averages over the past ten years of one point eight percent in the past year the average c.p.i. increase has been two point four percent these numbers and trends as well as a weakening u.s. dollar tightening job market and the tax cuts late last year all expected to factor into further increases by the federal reserve later this year. and time now for a quick pause but stick around because when we return former pentagon official michael maloof helps us continue to analyze the escalating conflict in syria plus
natasha squeak takes a closer look at the state of u.s. ports as part of our infrastructure endeavor and as we go to break here are the numbers at the closing bell we'll be right back. because the slowness of the bluto them so moving. and good news who've local was before. much of those who couldn't support you are moving soon we will. we will.
move. move but i. will show you the stupid you are the liberal media collectors who are. more misled most of these girls will be do films for good girls. to go to shows so look i do the same you belong to the show the story you told me you should go. to starbucks to hold of some take it to me to fill it with the little blue mist they say look it is it's. himself some understand just need the money don't try to stop to think that your company's future needs more students. those were two shoes too close to the store to snoop the most of you of course are those the girls who. were his supporters to whom she looks the nation should
experience you could do if we were one who's doing. so well we've got to do is identify the threats that we have it's crazy fun fun station let it be an arms race based on scary dramatic developments only really i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and taunt. the largest u.s. supermarket company kroger is set to hire eleven thousand new employees in an effort to increase customer service and efficiency at its more than twenty eight
thousand locations the two percent increase employees will bring the total number of workers at kroger to four hundred fifty thousand by hiring strategy as part of a three year plan to refocus on existing stores as opposed to opening new location so the move comes as grocery stores are facing increased competition and white of amazon's purchase of whole foods last year and pressure from grocery deep discounters like european based all the and others which are expanding in u.s. markets. a so-called fat finger error by an employee of the giant south korean electronics firm samsung has created one hundred five billion dollars debacle at the firm's stock trading arm last friday an employee at samsung securities attempted to share dividends with pensioners but instead of giving them eight thousand one hundred baht a dollar per share instead they were sent one thousand. shares of samsung stock and what is termed a fat finger error of course that set in a massive amount over two thought to two thousand pensioners that means that one
move the company released more than thirty times the company's total existing number of shares or two point eight billion worth over one hundred billion dollars at least sixteen employees jumped on the air and sold shares despite an immediate warning not to do so the company was able unable to start blocking sales until thirty seven minutes after the air south korean regulators are examining the matter . and corporate sporting news the former owner of formula one racing c.b.c. capital partners of luxembourg is trying to get back into the fast lane by acquiring a stake in motorcycle racing series moto g.p. c.b.c. is doing this by seeking to purchase a portion of moto g.p. parent company dorna based in spain in two thousand and six c.b.c. sold their stake and dorna to fellow equity partner bridgepoint for five hundred million dollars that sale was made to comply with european regulators insistence
that require divestment and on condition of work c.b.c. to acquire formula one the complete your union and c.b.c. will need to defeat other interested parties who are expected to compete for a share of moto g.p. . european commission investigators have raided fox offices in the hammersmith neighborhood of west london the commission has released a statement about the raid acknowledging that it had conducted unannounced inspections in several member states over rights related to sporting events the commission cited concerns over possible violations of e.u. antitrust rules and one cartels and characterize the raids as a preliminary step noting that there is no deadline to complete their inquiry london's daily telegraph which broke the story says print and electronic documents were seized in investigators are expect to remain on the premises through. thursday . and last we left potential merger merger talks between t. mobile and sprint all talks were off that was
a november and since then sprint shares have lost more than a fifth of their value as they are saddled with a thirty two billion dollar long term debt burden the merger talks however are back on game on combining t. mobile the third largest wireless provider with sprint the fourth largest would establish a customer pool of one hundred twenty seven million people thus creating some crazy competition for the number one and number two largest u.s. wireless providers of arisan and eighty n.t. . and shares of russo all one of the largest global aluminum producers based in russia has lost more than half its value as a result of u.s. sanctions on russian companies all of guards and some government officials investors are questioning how the sanctions could impact the company's ability to trade with counter parties and do business around the world as a result the russian government has said it will provide short term liquidity to resell and admits the moves one resell board member ivan gallons per the chief
executive of mining giant glencore has resigned resaw employs one hundred seventy thousand workers. and the sanctions aren't the only geo political uncertainty impacting companies and markets the controversy and conflict in syria about which u.s. president donald trump tweeted this morning that russia should prepare for missile strikes in syria has also caused some investors to be increasingly concerned about what may occur in that regard we're joined by former pentagon official michael maloof michael thank you for being here our viewers you know look at markets all the time and they look at foreign policy but they look at it from the perspective a lot of times of how markets are impacted so give us the lay of the land in syria where are the players who's on which side and what he thinks going to happen well we have the u.s. u.k. and france versus russia china and iran and syria that's those are the key players at this point and also on the side of the u.s.
to saudi arabia and israel and it looks as though the notion now is to go for regime change as a result of the alleged chemical attack and in syria last week and the regime is the assad regime which is which the that the russians and that group are supporting the assad regime and we're with the rebels is that we're well aware where with the west and what's what it seems to be occurring is a creeping effort to for the west basically isolate and contain mr putin who has been very strategically. resourceful and very good in in terms of strategic thinking versus the west and i think that this is bothered a lot of the western forces particularly the u.k. and the united states particularly the middle east now lot of this is ramped up and marketed starting to see a real impact to abide by some of these the president's tweets this morning but really escalated a lot with this. chemical weapons attack or or what the u.s.
and others a complete. say is a chemical weapons attack but the russians and so. others say it was even a chemical weapons attack i mean this seems like a basic fact we should know what's one to think about it well the the west doesn't want to know the facts they have refused to allow inspectors to go into the area even though moscow has a guaranteed safety for the chemical weapons because this is going to this is in an area controlled by the russians controlled by the russians and the syrian army and so the. notion was let the inspectors international specters go on and that has been vetoed and so we don't have the facts and you have nikki haley the u.s. representative to the u.n. . calling for murder and and and chaos with the with syria you have bolton who is who just came on john bolton who just came on as the national security advisor
to trump everything has reversed one week ago when mr trump said he doesn't want to have a more to do do you want a whole lot of water and i want to have missiles you know it seems to me like chemical weapons would be something that you could figure out if they were use that there would be a residue is that the case that that's what needs to be examined what was it that went in that occurred nobody seems to know was there a chlorine attack now i will say that the josh al islam one of the jihadi terrorist groups which was negotiating with the syrian government in the duma area outside of damascus has that capability and there was no reason for the syrian government to do it as far as anyone could reasonably see because they were on the verge of taking over the entire area so it raises some very serious issues which are not going to be addressed because of the of this heightened tension that's occurring right now from the west what do you think's going to happen to have a shooting war over there michael well listening to mr trump it sounds like it but
this is part of his business style you talk about the art of the deal and you go to chapter two the elements of the deal come on initially. in a bombastic way to try and leverage we still have a little time for mr putin and trump to talk on the phone but the military is gearing up and from my experience in two thousand and three with iraq once the military gears up it's very difficult to call that back while president trump says that president putin is you know that they get along really well i assume they both have telephones that work and they can talk to each other yes they could be a horrible thing to see this get out of control you cannot particularly with the mixed messages from president trump is to really judge a troubling and markets will certainly be roiled by it we are speaking with rosita horner a little bit markets of course but i think also the stock market's not just to the u.s. but global right you're going to have because what's what i just spoke to a source very well connected sources morning who said that if there's
a shooting war you can not only have russia but china and iran engaged so this could easily escalate into something that we don't want to see happen could be a monstrous mess michael moore a former pentagon official thank you for being with us appreciate your help pleasure. and as part of our continuing focus on infrastructure we're pleased to be joined by r.t. correspondent natasha sweet who takes a long look at u.s. ports ports make up a huge portion of the u.s. economy from new york to new jersey alone while those ports make up roughly twenty percent of the nation's gross domestic product and here the port of los angeles ranks as the number one container port in the country bravest some three million jobs but the question remains of just how long things can operates the way they are
man and seaports help connect american farmers manufacturers and consumers to the world marketplace in fact every u.s. state lines on roughly fifteen seaports to handle imports and exports totally require eight billion dollars goods each day every one billion in u.s. exports fifteen thousand jobs are created in fact twenty three million jobs are supported by seaports alone four point six trillion dollars are tight economic activity surrounding u.s. seaports and this infrastructure holds twenty six percent of the u.s. economy to night i'm calling on congress to produce a bill that generates at least one point five trillion dollars for the new infrastructure investment that our country so desperately needs during the season the president struck me that not clear he was dissatisfied with the country's infrastructure as a. recently comparing it to
a foreign country supports which is what drives the economic growth nick my s.u.s.e. professor and executive director of the center for global supply chain management agrees with the president we are almost like a third world country especially when you start to crawl. to asia or not like china and some of the emerging markets where they're really emphasizing in terms of space investing and this infrastructure i think we have actually really taken a backseat vias believes the main issue looming over the country is the vast political polarization happening in congress spending more time arguing mean one thing getting things done i don't think you could be a global power a global economy and be the superpower without having the infrastructure and for michael smith running for darryl i says forty ninth congressional seats says the issues surrounding the country's infrastructure is enough reason to declare a national emergency that would allow us to do things like suspend the davis beacon
are now the davis beacon eric was a a a good idea at the time it was done in one nine hundred thirty three during the depression and the idea was because people were so desperate for jobs not not for them to be taken advantage of with below market wages are you do you think it's possible when the president is saying we can do things ahead of schedule under budget right but the behemoths that has become a national the federal government regulations contributes to a lot of the problems in getting those things done look on trees freights is projected to grow some forty five percent by two thousand and forty five and the u.s. is trade volume is expected to quadruple after twenty thirty by twenty thirty seven the u.s. will export more than fifty two million should be containers through domestic ports and to meet this room demand price is all of the country's infrastructure needs to be updated we have now come to the point where we simply cannot ignore the fact
that we need a massive acquitted door infrastructure sports airports mass transit highways and in our model the rail network and all this. has to be connected but the white house has not laid out a specific plan for the country's infrastructure just yet but it is something that will indeed need congressional approval to move forward at the port of los angeles and hottest weeks r.t. . snap incorporated a unit of snap chat despite losing a reported forty million dollars on its original camera glasses or spectacles as they call them were released a second version of their video camera glasses later this year followed by yet another version next year the glasses the glasses this year will be water resistant of bailable and multiple colors and have an updated camera software that accompanies it next year's models expected to include two cameras which could even
allow a three d. a shit depth effect in recorded videos my grandmother would say what will they think of next and while the camera glasses seem kind of cool sort of spyware type of stuff right and perhaps they would be really great for police and security personnel or maybe even journalists i'm pretty sure i don't want to hang out with people wearing them how bout you. that's it for today's broadcast thanks for watching be sure to catch boom bust on you tube you tube dot com slash boom bust r.t. so on for now. algorithms that guy the product of google also guides the actions of the employees within a google and they can stop the algorithm isn't this just like fantasia the disney movie with mickey mouse worry goes to war with the dancing broom and he tries to chop it down to creates more dancing to rather than a craze a flood within the wizard alice i mean these are algorithms that are out of fricken
control and the employees within the company can't stop them now war driven by algorithm who's in charge the algorithm or the head of google those words are shown . to. exist says harlan kentucky. over all of this move them poised to go green is very funny. a co money since it was almost no coal mines left. the jobs are gone all the coal mines just said. that it was love to see these people the survivors of disappearing before their eyes. i remember thinking when i was younger that is anything ever happened to the coal mines here that it would become a ghost town but i never thought in the million years i would see that and it's
happened it's happened. off a total trump by itself a series of contradictory tweets for us threatening russia but they took toning down his rhetoric the white house spokeswoman had a hard job to put. the president's exact. power maintaining that we have a number of options and all of those options are still on the table what is needed they certainly mean i think there's a lot there that you can read from but at the same time the president has a number of options. and a statement through british police so she will refrain from media contacts and has refused help from the russian embassy and relatives at least for now we explore the facts behind the poisoning of the script in the u.k. if this was a variety of the movie. a single drop is enough to kill.