tv Boom Bust RT April 12, 2018 7:30pm-8:01pm EDT
syria isn't the only hot spot yesterday yemen's hooty rebels fired missiles at saudi arabia both at the capital city of riyadh and at the city of design a key oil producing site which produces four hundred thousand barrels of oil per day that's a lot even in saudi arabia while the saudis say they intercepted seven missile missiles both who the statement and the official saudi press agency statement said that one person was killed by shrapnel in riyadh and the increasing tensions have been sufficient to increase uncertainty about the future of oil supplies and move prices up the global benchmark brant crude traded at ice futures europe and london has shot up nine percent in the last three trading days to over seventy three dollars per barrel although prices went down just a little bit ago to seventy two dollars late in the day west texas intermediate the u.s. benchmark traded at the new york mercantile exchange nymex continues to trade in the upper sixty dollars range around sixty seven dollars we went to air will have
the exact closing bell number at the break. and bank of america says it will no longer lend money to gun manufacturers which produce military style firearms for civilian use including a ar fifteen or fifteen style rifles that have been used in multiple mass shootings the moves come as other companies including dick's sporting goods and wal-mart chose to stop selling such products and other financial institutions which have determined they will no longer lend money to companies which produce such products last month citi group made such an announcement. ten the trump said ministration is looking for additional ways to protect domestic auto manufacturing by forcing imported vehicles to meet stricter environmental rules as a condition of entry to the united states the protectionist move if implemented would place a higher price on imported vehicles and thus be a barrier to free trade therefore it would likely be challenged by european and
asian auto making nations at the world trade organization previous u.s. presidential administrations have condemned the use of such non-tariff trade barriers by other nations to. china's ali baba group affiliate payments processor and financial is reportedly entering a massive fundraising round which seeks to garner nine billion dollars if they hit that number the capital infusion would make and which was founded just seven years ago one of the one hundred most highly valued companies in the world the funding round is a precursor to a planned initial public offering which is expected to value the company at one hundred fifty billion dollars and as the largest third party payment processing platform with more than fifty percent of china's sixteen trillion mobile payment markets. iran's currency the reale reportedly has lost over one third of its value against the dollar over the past week trading at sixty thousand to one dollar
on the black market the governor has set the official exchange rate at forty two thousand to the dollar and made it illegal to hold more than ten thousand dollars or the equivalent in europe as iran has a currency surplus of seventeen billion dollars but getting access to the actual currency notes is still difficult and has been aggravated by the reimposition of banking sanctions by the united states international sanctions had been lifted under the multi-nation agreement established to stop iran's nuclear program but us president donald trump is opposed to do. deal is expected to formally renounce it within weeks the currency's dive also has domestic political implications as reformist president rouhani pledged to improve the iranian economy in part by reaching an agreement on the nuclear issues rouhani supporters has suggested that hardliners opposed to ronnie's agenda are hoarding foreign currency. and as global
markets continue with more than expected volatility we now take a closer look and consider of those markets and the underlying economics in the u.s. and around the world with danielle do you martino booth c.e.o. of money strong author of fed up and importantly a former advisor to the u.s. federal reserve daniel welcome back thank you for being with us we've not we've not had to down market days this month and markets are all over the map including nineteen of twenty three days have been in triple digits one way or another and today we saw a real rally with seven of the eleven s. and p. sectors reaching recent highs what do you make of the volatility we've been seeing in markets danielle. you know i think some of it has to do with technicals i have a strong sensation that there were a lot of people who were betting against this market and what it's called in market speak is a short squeeze so in other words they have to run out and cover their of their
bets that the market's going to decline and that forces the stock prices up so i think part of what's going on is technicals and the other is that so much of the rhetoric about tariffs and the chinese president's speech that he made a few days ago it looks like there's not going to be an imminent bombing of syria so a lot of this is just off the cuff quick trading based on tweets that come out of the white house and just generally good feeling that really bad things aren't going to happen we call these relief rallies. don't you know i know you have been looking at some of these underlying fundamentals we reported yesterday about the core c.p.i. being over two percent that's sort of a big deal isn't it explained it to be and our viewers. it really is that the fed has a stated inflation target of two percent so if and when core inflation which which nets out are essential zx food and energy if and when core inflation pops up above
that two percent target then the fed is typically called to action to try and bring it back down to the target you bring it back down by tightening rates further and the persistence in the core c.p.i. i think is going to become problematic for fed policymakers i'm going to have my eyes open in the in the upcoming earnings season as well bart to look for any signs any signs that companies have really started to be squeezed by these rising input costs you may have noticed the producer price index which is much less paid attention to but six of the last eight months we've had that producer price index increase and now it's at the highest level since july of two thousand and eleven now that would include the producer price index includes what it includes labor cost it includes what transportation shipping trucking air naturally all that anything else. you basically covered anything that companies would consider to be
an input and get people follow our lee wages but i happen to follow weekly wages because weekly wages is what's called a pay check it's what people bring home after working for a week those wages are up three and a half percent again that is well above the fed's comfort zone when it comes to wage inflation and i think policymakers are going to be at the ready to push through three if not excuse me two if not three more rate hikes this year which was exactly what was reflected in the minutes that were released from the from the fed yesterday i was going to ask you about that anything else in there in the fed notes of of interest i have not had the time to read all through them but i know you do it as part of your daily with your daily cup of tea anything interesting don't you know well i thought that the most interesting thing was that there was not a single not a single member of the federal open market committee to say that they were worried about downside risks to inflation part that has not happened since two thousand and
eleven when they started gathering this information from individual participants on the federal open market committee in other words there is a blanket consensus that there are upside risks to inflation again investors need to be on the lookout for more rate hikes than what i believe that the market is pricing it at this time yesterday if you were on the show i would have spent ninety percent of our time together talking about a potential shooting war you know within syria and asking you how that might impact markets now today you know it seems like maybe some adults got a hold of somebody who tweets a lot and had things calmed down a little bit what do you think would happen with markets if there was a military strike by the u.s. and some reciprocal action by russia right now in any any idea. i would be pretty that you know i'm not as reassured as many other and festers who by the dept are
with the volatility on the upside that we've seen to me it exhibits that there is a tremendous amount of nervousness in the markets so they would they would they would shoot first and aim later they would i think they would be running for the hills this is a very nervous ten us market and i think that volatility has not finished rearing its ugly head and i think any kind of an event such as that would be highly problematic for the stock market and if i had been interviewing you two days ago i would've spent ninety percent of the time talking about tariffs and trade. it's just been reported that the president has charged. larry kudlow in. his route with actually jumping back into the trans-pacific partnership at eleven member trade deal but many of us including me said what the heck are you doing there's five hundred million people there we could have a lever with china there do you think that's actually going to help markets and is
it a good thing well i think it does show the immediate impact that larry kudlow has had on trump's thinking because that's certainly something that he would be advocating for but bart at some point you really do start to feel as if you've got a really bad case of whiplash and that's i think that's i think what we get from this administration we've only got about thirty seconds left but i want you to help our viewers by entering this quiz question it's not an oh i know you're going to get it volatility in markets while some people might say all that bad some people like that who likes that you know oh the bank trading desks like it if there's no volatility there's nothing to trade on with markets are complacent they don't move when markets move bank trading desks actually have something to do and they make money whether the market's going up or down as long as it's trading they love this volatility we'll probably see some hints of that when banks begin releasing earnings tomorrow. ding ding ding delta had a good earnings report today too thank you so much danielle de martino both founder
of money strong thank you very much for your time thank you. and time now for a quick pause but hang here because when we return our t. correspondent dan cole one looks at the economics of the boycott divestment and sanctions movement in the middle east plus what's going on down south of the border wall will thousands of national guardsmen help anything todd miller author of storming the wall joins us from the border area to discuss as we go to break here the numbers at the closing bell bitcoin is in a major rally in the past twenty four hours pushing back over eight thousand before pulling back back and apply.
those strong pressure by a security cap and that's by the pentagon and by the media don't donald trump to do something about it so you could probably at some stage he might get into this pressure but i don't think it is his intention to what i consider more likely down another u.s. military attack on syria is the united states policy build the need to recognize any effort to buy the russians to texans iranians to find a political solution. to. apply to many flips over the years so i know the game and so i got. the ball isn't only about what happens on the pitch for the final school. it's about the passion from the fans it's the age of the superman to just kill the narrowness and spending two
hundred and twenty million on one player. so it's an experience like nothing else on here because i want to share what i think of what i know about the beautiful guy a great so well more transfer. and thinks this minute. welcome back i hear the swedish found a dutch based multinational company famous for customer assembled furniture and other home accessories is set to make a major change over the next three years by shifting to online sales and moving stores to more urban areas according to ikea c.e.o. jesper broden the move alters like his previous strategy of placing stores further from city centers to save store cost as customers drove to the more remote
locations and then assembled the furniture themselves now with more urban dwellers without vehicles will long with competitors from the likes of amazon i can't says that they see the need to change their strategy one additional potential change i can't is also reportedly considering leasing furniture to customers like good buy be good for college kids right i kiss currently the world's largest furniture retailer by sales. and sticking with sweden spotify the sweden based music podcast and video streaming company that started back in two thousand and eight is partnering with hulu the u.s. based subscription video on demand service to offer seventy five thousand television programs and movies to spotify his current forty million song music catalog spotify which also offers limited free music service currently has seventy one million paying subscribers while apple music has thirty six million although apple has been making recent gains particularly with customers in the u.s.
. the interim director of the consumer financial protection bureau or c f p b mick mulvaney admitted yesterday in testimony to the house financial services committee that he has not initiated any enforcement actions since taking control of the agency last november veiny who was run. the c f p b as a second job in addition to serving as director of the office and management budget said quote i have not burn the place down and that he visit seep c.f.p. almost daily i mean not burning the place down and being at work almost every day seems like a pretty low bar guys even for government workers with all affection for my former government worker colleagues representative joyce beatty of ohio told motivating it's impossible to do two full time jobs and ranking member maxine waters of california question mulvaney legal right to leave the agency pointing to the letter
of the law which seems to say that the former deputy director landry english should have taken over after the resignation of founding director richard cordray any has called c.f.p. be a sick sad joke and as we reported here on the broadcast before he's asked congress to eliminate the agency's guaranteed source of funding today mulvaney testified to the senate banking committee where he sparred with senator elizabeth warren we'll have that tomorrow. and climate news new zealand's prime minister just send arjun says that her island nation is affectively banned further oil and gas drilling off its coast by ending the granting of permits the government said that twenty two permits currently unable such operations and acknowledge that some of those could continue through twenty thirty greenpeace actually hailed our decision as a historic step noting that a just transition to a clean energy future can provide jobs and
a big boost to our economy our durance new zealand first new zealand first prime minister that's a female she was elected last october at the age of thirty seven on a pledge to make the nation's energy grid one hundred percent renewable by twenty thirty five and carbon neutral by twenty fifty. i. and as we've been talking about the middle east is not exactly known for being a stable region and some businesses are starting to take a bit of a political stance such as in israel where the government has been expanding into palestinian territory to the outrage of some on the international front r.t. correspondent dan cohen looks at the economics of what is called the boycott divestment and sanctions movement or b.d.s. move it in the middle east where businesses are hoping to make an impact well critics of the boycott divestment and sanctions movement say its impact is minimal
its string of successes suggest otherwise in two thousand and fourteen the b.d.s. movement scored a significant victory when the soda stream company was forced to relocate its factory from the occupied west bank to inside israel that's the same year the presbyterian church voted to divest from u.s. corporations profiting from israel's occupation that followed similar measures by the united methodist church the united church of christ quakers mennonite central committee the catholic conference of major superiors of men and the alliance of baptist and twenty fifteen the french infrastructure company veolia sold its investment in israel and the brazilian government canceled a two billion dollar contract with the israeli firm international security and defense systems trade unions have also joined the boycott of israel following refusals by dock workers in the us south africa and sweden refused to unload israeli products norway's largest trade union called for a blanket boycott of israel in twenty sixteen the multinational telecom giant ended
its contract with israel's partner communications following a six year campaign i spoke to ali abunimah co-founder of the electronic intifada he says that while israeli government officials are publicly has a tent to acknowledge the impact of b.d.s. they see the silent boycott as a major threat. silent ploy means that companies individuals institutions don't necessarily declare that they're going to boycott israel but they just don't do business with it they don't go there either because they support palestinian rights or even just because they don't want to be hassled or criticized for doing business with israel a leaked report from key israel lobby groups and twenty sixteen revealed that most of the collateral damage being done to israel by the b.d.s. movement is a result of a growing silent boycott another indication of how serious israel takes b.d.s. is the money it spends to fight it in december two thousand and seventeen the
israeli government approves seventy two million dollars to combat b.d.s. with the israeli government showing no signs that it will respect palestinian rights the grassroots b.d.'s campaign will likely continue to grow reporting from boom bust dan cohen. president trump announced earlier this month that he wanted to send more than four thousand national guardsmen to the us mexico border to support border patrol texas arizona new mexico have pledged a total of sixteen hundred troops even california governor jerry brown will be sending four hundred guardsmen as well according to the american immigration council the u.s. government has spent more than two hundred thirty six billion dollars on immigration enforcement since the last major overhaul in one nine hundred eighty six but will sending troops really mean anything and just what kind of impact will this have on the border towns in california new mexico and arizona here to talk to
us about it from tucson arizona todd miller author of storming the wall todd thank you for joining us again we sure appreciate it as you and the rest of the country is aware that president trump says he wants to put all these four thousand guardsmen on the border however isn't it the first time this isn't the first time that we've put folks on the border but is it going to do any good what are your thoughts. you know it's not it's not the for the first time that that the united states has put your son the bar in fact if he really goes along with a long history of border military as a sham and that he could leave him look at it up with it that way is why and since one thousand nine hundred ninety there's been a continuous presence of u.s. military on the on the border on for a long time and you know and and smaller unit you know a hundred here are four hundred or six hundred and then the george w.
bush administration in two thousand and six really ramped it up when he sent six thousand national guard to the border during what is called operation jumps jump start and then the obama administration actually had you know about it they maintained i think with about a thousand troops through much of his administration through much of his eight years and so this idea of putting more national guard troops on the border actually has a long trajectory and history to it and the other part of it that i would like to mention is is that on light for example when bush put six thousand troops on the border it was actually as a placeholder as a train to. more border patrol agents during a hiring the most massive hiring surge that the u.s. border has ever seen as far as asians are concerned and the reason i mentioned that is because when you look at u.s. border military zation you have to look at the border patrol the border patrol itself describes as a as
a paramilitary organization they are on they have been trained by the military they have a kind of good crank camp training themselves they on these military equipment and technologies that have these been used in wartime operations and they they operate in hundred mt jurisdictions along the border with extra constitutional powers so it's a my it's a kind of a low grade state of exception in which they can put up or. side checkpoints and on the fourth amendment rights rights of people have not to be searched in our seas can be somewhat mangled in these situations so in those two you have c. you have to view this kind of this this deployment in this longer history and it kind of actually is not it's not really new but let says it's trumpet stukely finally sounding the alarm bells just how much has actually been put on this or onto the border over the years tom let me just ask you a quick i'll give you
a quick answer on this because i've seen all sorts of numbers but over time over years the crossings have reduced i've read but then i guess they might have been up in the last month is that correct that's what the administration is are courting that they've been up for the for the month of march and by crossings what they mean is it a bird or a apprehensions but generally speaking they bent down over over trend of the last ten fifteen years later i mean to me move if you don't mind to another area i want to get your take on so we're all worried about a release the president's worried others about these crossings and there are probably some legitimate economic reasons i know it could be argued away but there is a heck of a lot of commerce going on between you know san diego and tijuana millions of people crossing and there is a real economy that are happening there is that important to keep that border open
to some extent for legal transit back and forth. well the it as you sat at the border economies a lot of it relies on the fact that people come from across the border from mexico for example and near and close to where i live nogales sonora mexico has for about four hundred thousand people compared to nogales arizona which is twenty thousand people many people from nogales sonora have come across the border to then shop in the supermarkets in the valleys arizona i believe even the wal-mart in nogales arizona is the largest per capita in the country because of that resent and so and so the economies of a border a border towns the adly they even though they're very poor to like when you look at different border cities and border towns across the two thousand the us mexico border they tend to be very poor and so on and so you have this kind of cross
border economy but you also have a lot as as these as these border go if this continues over this long period of time and billions and billions of dollars and poured into it you have this law enforcement economy too that's that's been developing while people like you know the lack other basic services such as education and health care and you know housing and that sort of thing so there's a lot of there's a confluence of many different should be terry's going into the end of the quarter economies todd thank you so much for sharing your expertise as always we appreciate that todd miller author of storming the wall thank you todd thank you. that's all the time we have for now thanks for joining us be sure to catch boom bust on you tube youtube dot com slash boom bust archie we'll catch you next time.
was one of them is that guy the product of google also guides the actions of the employees within a google and they can't stop the algorithm isn't this just like fantasia the disney movie with mickey mouse worry goes to war with the dancing groom and he tries to chop it down it creates more dancing from clinic france to flood with in the wizard alice i mean these are algorithms that are out of frickin control and employees within the company can't stop them now warren driven by algorithm who's in charge of the algorithm or the head of google who's running the show. to take you had to take matters into its own heads to provide its own security and securing the border radius now this is a very vivid images of it cools. who are the british to be there. has to
be the who are the british to be. what holds his hands to. put themselves on the line. to get accepted or rejected. so when you want to be president and you. want to be preached. to going to be press this is what the before three in the morning can't be good. i'm interested always in the waters of my. pursuit. this is harlan kentucky. we've all read this move the voices people were going street families remain in.
a coma any city with almost no coal mines left. the jobs are gone all the coal was a federal ban that's. live to see these people the survivors of a world disappearing before their eyes. i remember thinking when i was younger that if 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 happening this happens. to everybody.
u.s. defense secretary admits that his country has no concrete evidence there was a chemical attack in the syrian city of duma but might strike preemptively to defend american troops there. after a lengthy cabinet meeting theresa may fail to shed much light on london's course of action on syria merely stressing the need to coordinate with allies meanwhile the german chancellor gives a firm no to military airstrikes against damascus. good stunt with an even to end its chicken and chiding you for that's not much good to meet you the smart soon to tighten. and the u.k.'s foreign secretary is in no doubt russia was behind screwball poisoning after u.n. watchdog confirms the substance used in the attack and that is despite investigations not confirming russia as the source of the nerve agent. also.