tv Boom Bust RT August 2, 2018 8:30pm-9:01pm EDT
i. i. this is known by broadcasting around the world i'm partial to thanks for being on board coming up fred thompson the author of the farm how to stop being food joins us to talk about the impact of trade tariffs on livestock and b. and the resultant impact on prices we all pay plus artes alex my hile of it joins us from toronto to talk about the u.s. treasuries plan to deal with offshore tax havens and the earnings that are still overseas plus artes daniel hearkens reports from london on broadband in the united kingdom and the e.u. but first we focus on an issue that is impacting many portions of the planet all around the world the summer of twenty eighteen is setting heat records and moving markets around the world electricity demand is spiking in affected areas causing
outages and some as climate change begins impacting local state national even global economies today we start with a little look at some of the areas being at least partially impacted by extreme weather the commonality for those is like that old glenn fry song the heat is on we go first to the state of california where wildfires have destroyed more than a thousand homes and firefighters are struggling to contain more than a dozen blazes the largest wildfire the car fire is happening primarily in northern part of the state where governor jerry brown had this to say fires are no more part of our ordinary experience the predictions that things would get dry air in the hotter are occurring and that will continue we're in quite a cycle but the predictions that i see that the more serious. predictions of warming in. fires to occur later in this into the twenty
fifth there are no occurring in real time. stockpiles of surge with regard to meet around the u. us another area being impacted by the trade wars and the tariff tiffs in that sector of the economy is experience huge onslaught of excess supply thus reducing meat prices and that may be good news for some consumers but for thousands of companies and communities that rely upon meat and meat related products and the ranchers who are helping produce this meat it could cause a world of hurt and sooner rather than later here for more is the author of bet the farm how food stop being food bred cough and thank you for being again with fred bring us up to date on the circumstances these things are fluctuating back and for all these trade trade wars but where do we see this with regard to meet right now
well of course what we saw is a trade war with tariffs and one of the big exporters of the of the meat producers is pork suggest take the example of china when the trade war first began the tariff of twenty percent was set by china in retaliation now it's up to sixty two percent another great importer of our meat products is mexico that tariff has now gone up to twenty percent and so therefore the sales have gone very straight line down eighteen percent lower to china and of course the effect is warehousing we had this unbelievable bumper crop not only of grain a but of meat last year were producing about one hundred and two billion pounds of meat last year and we can't find a place to put it there is two and a half billion pounds of this meat in storage in cold storage and you know what that takes a lot of energy and it takes up a lot of real estate it does take up or a lot of both let me ask you. when we talk about me we're essentially talking about
beef pork and then poultry is it sort of in roughly that order beef pork and poultry i'm not sure well in terms of the problem and part of export yet that that's that's exactly right and the chicken is not really is not really pinpointed pinpointed here now of course we have to we have to realize that the main market for meat is within the country but what's happened is that one of the great things about iowa and nebraska is that they make more food than they could ever consume and so we've always looked at international markets and international trade as a buffer and as a way to to deal with the access and make some money you know and what are the big companies now and you know i know that smithfield which was a big pork producers are now actually owned by the chinese so that presents sort of a quandary but what are the largest meat producing companies swift what other ones are out there of course you know we have tyson foods and what's what's the interesting case about tyson foods is there kind of saying we're good we don't
really care that much why is that well it's because agriculture and of course we're including including meat production in this has never been vertically integrated in other words the largest producers and the largest manufacturers like tyson are not actually the ones with the herds so once again the people who are really being hurt are the smaller people the people the ranchers and the farmers who are then supplying the food chain that tysons and the smith fields in the hormel zx with their be in with their pork and with their chicken at the very end of this come the retailers like mcdonald's and burger kings and they're of course the ones who get the most opprobrium when in fact there are they're the least responsible and it's very interesting and you know regard to this whole trade war of course when beef supplies are up but they're not producing as much beef then they're not eating as much grain so that is also having an impact on. soybeans and and wheat other feed
grains corn etc right well if we can just get into the politics of this for a second what we're what we're seeing is that sonny perdue who is the head of at or going to terry of agriculture has gone back to nineteen twenty nine to give what section thirty two exactly exactly to get a loan to give these soit farmers twelve billion dollars in support what in other words you take the legs out from under them and give them a golden crutches in the farmers are saying we don't want to aid we want trade and what we're going to see is the same thing is going to be coming up for the beef producers this is that terrible solution this is making welfare mamas out of the farmers which you're already criticizing her take it being on the government dole and this is the classic trump solution same thing with stormy daniels first he screws you and he pays iaffa and it's even worse in this regard in that he did you know this is all his making the twelve billion dollars wouldn't be there if we were
in a in a trade war and they do the farmers do want to trade we ought we know that but this isn't just about being paid once fred they want to create long term global relationships and as we heard mr juncker from the e.u. say recently when he was in japan he said look we are a long term reliable trading partner and by omission he's saying the u.s. is not right and what's going to happen what we're seeing in all the data is once a market is dissipated once the market is destroyed it doesn't come back maybe it best comes back at eighty percent and what people are saying is look you know we don't need to go to you anymore we can go to argentina we can go to brazil we can go to even africa we go to emerging markets develop meat production there this is a lose lose lose very sort of sobering fred kaufman author of bet the farm thank you so much fred thank you part. and the you.
u.s. hopes to end what is called the lock out effect on earnings being stuck overseas reforms are being put into place which will addressed an estimated three trillion dollars worth of corporate earnings being hoarded offshore archy's alex mohai live at is in toronto and joins us with more on this story thanks for being with us alex how does a government plan on collecting these trillions of dollars from multinational corporations that are holding these overseas investments profits i guess right alex exactly so the treasury has a draft plan that they're working on that's been dorris by some senior officials they're looking at a collecting about three hundred forty billion dollars over the next ten years using a system of basically taxing these people but taxing them in not not what you think in the some in vast amounts so it's seems to be a system that can actually attract people to start playing ball fairly now look if there's a lot of money offshore and we have a graphic here they'll show you just how much that really looks like these are just tech companies that we're talking about in this graph from two thousand and
fourteen of those of four years ago and you can see apple one hundred eighty one point one billion microsoft one hundred eight point three billion i.b.m. sixty one point four billion so obviously plenty of money hoarded abroad and that's just these tech companies and just imagine how many other companies there are out there and different types of businesses so stephen utian he's a here's a quote from him and this is basically the idea that the treasury has the tax cuts and jobs as creates a historic opportunity for american companies to bring capital back home from overseas to invest in our domestic economy and create jobs for hardworking americans though this means big companies can no longer do what they've been doing that's about basically avoiding taxes. and keeping their international profits outside of the country now the proposal has the tax rate right here for this proposal is about fifteen point five percent for all cash earnings and then another eight percent on the remainder at. i mean it's
a good incentive and i mean this is the way business needs to be done these people need to pay taxes and once paid once this money comes back into the country it's all it's all done there's no more paying any more of these earnings so it's you know it's an interesting way of doing it i mean it's something that has been hard to be done probably decades ago we've all known that these offshore banks exist that people are hoarding money abroad so what's interesting here is that it's the trumpet ministration that are actually going to bring some of this money home and they're going to be pushing hard to do this it's definitely a way to create income for the country and it's definitely fair and i think that's what people want to see fair play when it comes to these multibillion dollar corporations well alex i mean they've been talking about this for years and to the credit of the administration in oh they've been talking it out about it particularly and it it seems like a great plan on on paper but you know these places these these foreign
jurisdictions they're all about hiding the money so i assume there's some sticking points of this plan what do you think. and you're absolutely right i mean look they were we know of dictators that have had money you can just look at you know a couple decades ago you had a dictator like let's say slobodan milosevic all his money was in cyprus he was basically draining money out of his country and says out of serbia and down to cyprus and you have these people doing this all the time so this is really nothing new but when it comes to these companies what's interesting here is that a lot of companies are complaining about it and the ones that are complaining about it are not necessarily american companies it's european companies that feel that these this type of tax these tax measures might affect them negatively i mean they've already talked about how taxing that they have been treated fairly by the u.s. so this is just another step here and and this is of all a part of a bigger plan if you look at it really i mean we remember just last year that was signed into law one point five trillion over ten years this was
a part of the tax reform so that part was reduction in taxes at home so of corporate taxes dropping from thirty five percent to twenty one percent so again another mechanism to make money even though you're reducing here you know you've got to fill those those coffers from someplace else and what's interesting here is that even the u.s. congress budget office says because of those tax reductions the deficit is going up so we're looking at about eight hundred four billion dollars deficit this year and one billion in two thousand and twenty so you have to somehow mitigate that and this is one way of doing it now really as renting cars as a response to balance one hyla bichon toronto thank you alex appreciate your time. and time now for a quick break we're going to try to get back to some of that climate change news we're talking about earlier so hang around for that plus melissa arm of the c.e.o. of the stock foolish joins us to discuss media related stocks and artie's daniel hearkens reports from london on broadband in the united kingdom and as we go to the
numbers and stocks of note today is that apple has just become the first american company to move above true a one. willian dollars valuation ever the first public company ever good on them the numbers mixed results in stocks but while notably up two percent for the day back in a flash. russia is one of the countries that most buy capacity and although very high population does that mean russia does need to be concerned about sustainability i would say yes absolutely you are no lucky situation where you have
a lot of farm per person so to say you know you have a lot of wealth ecological wealth but the word is very scarce so that's a huge economic advantage as well and saying wow this is an amazing farm let's look after it well because that's our said that will enable us to live well in the long run. join me everything on the elec simon chill and i'll be speaking to guests of the world of politics small business i'm show business i'll see them. some people. use indigenous people as you know we that the. people the trees.
and so. all of a sudden a man just. told we tell you what. i said i wouldn't enter it in the if they would not allow it. you know should we. had all along a million million indeed i'm not i'm not going to be didn't that you could have been killed by the feeling that i become utopian i mean the economy i use. the term problem.
and turning to south asia the indian central bank formerly the reserve bank of india or r.b.i. has raised interest rates by twenty five basis points to six point five percent the increase is the second in three months and puts indian interest rates at a two year high. the increase is a second to three months of i said and r.b.i. governor urge it to tell announce the increase in mumbai on wednesday citing concerns about the impact of global trade tensions one pressure point on the rupee could be weakness in the chinese you one which is supposedly dragging down the rupee the rupee did gain point one percent on the dollar in trading earlier today
and within india of the most direct result of the impact on it might be the impact on inflation rather which has been outpacing the dollar but overall the r.b.i. was optimistic in a statement saying quote various indicators suggest the economic activity has continued to be strong and elsewhere in the indian subcontinent pakistan is accusing united states of attempting to block a planned aid package from the international monetary fund it is reportedly under negotiation currently officials there say the u.s. is also seeking to d. rail of the china pakistan economic corridor plan a joint plan for sixty billion dollars of chinese infrastructure investment in pakistan pakistan is reportedly seeking as much as twelve billion dollars in credit from the i.m.f. on monday u.s. secretary of state my palm told the rival network quote there is no rationale for i.m.f. tax dollars and associated with that american tax dollars as part of i.m.f.
funding for those to go to bail out chinese bondholders or china itself a senior pakistani official told the financial times that the incoming government of celebrity athlete com will pursue other options if the u.s. succeeds and blocking the i.m.f. aid. amidst all of the media madness and mergers which media stocks are set to do well and which well not so much for the answers we now turn to our friend was the arm of the c.e.o. of the stocks which was a great to be with you in person again given everything that's going on out there which a lot of media starts have the possibility of doing really well going forward but i love this disease strong this is an uptrend with disney buying this huge package of fox assets and the twenty first century fox studios and california that is really
going to put disney on the map i love that stock long term i love it right now and i think disney probably and that bucket of stocks i think is the best buy and you know i wouldn't i wouldn't wait i guess it's a best way i'd say it i wouldn't wait on that one how about comcast now you know comcast is in the middle of a bidding war to try and get part of the sky the the pay t.v. european t.v. company over there which could make them more competitive do you feel like they're also if they get the sky deal are they a good investment or should maybe investors look at that no i think it's a wait and see and wait to see what happens with that one because the stock does not look as good as disney and also they're probably going to fight hard for those assets because they didn't get the fox assets so they dropped them and they didn't really hit them for another bit on fox after disney put a second bid in for that they dropped it and decided to go after sky's that they're probably going to go hard pushed hard for that to go through and who knows how long that could take i would wait on that because we don't know if that's going to go
through and that stock does not look as good as in remember those other stocks you can buy that are creating content in this marketplace which you might not think as content providers or creators like that flex one of the reasons netflix stock looks so great i mean that is one of the strongest stocks right now in the market that's a good buy you don't think of now lexa same as. it isn't and yet now thinks it is doing so well because they're selling subscriptions but also they're creating shows if you want to watch a.b.c. show or whatever you have to actually subscribe to netflix to see the show you can't to turn in until you're on the dial and so that is the future and apple is starting to create content to still look to see them in the future as well even though apple does many other things they're going to push themselves out there were content i'd say the next five years apple is going to look very different as a competitor against the likes of netflix and even disney and that's what's so great about disney getting that fox and those studios disease really going to go for i think are going to see a lot from that stock you're going to turn a lot of the content or whether or not it's x.-men or anything else that they have
the does they get from parts and say rides and everything else and more and more merchandise let me ask you another question and this one's about a media company but it's really not be if you could judge it on media and that's an amazon to me you know we think of them as as the store that you worldwide store we think of them as the no food delivery of the whole foods but they do have an important media component but can you really separate that out and basically media determinations on their stock or not amazon is just a behaved mess i think anything that amazon wants to do it will derail and it will i make an attempt not necessarily to do it better than anyone else which is which is problematic for consumers but they will have time to do it cheaper and so that's that's that's the problem personally i like quality when i'm going to watch a show or i'm going to buy a product and i'm a zone is all about price like for example when they decided by whole foods that i
think we've talked about this before going shopping in the store is not the same experience you do not get the same customer experience so if they decide to embark on this new thing to go up against the likes of netflix disney don't necessarily look for the best experience there are out there because they have so much. so much everyone's attention is just if you say i was on this no one that doesn't know amazon so when you're going out and you want to turn around you want to buy something or you want to get somewhere do something you just think it automatically amazon amazon so it's really hard to compete with them but i think the nice thing about the disney's enough lexus of the world and even apple that's starting to get into this too with the content is they're starting to do it before amazon so it's not that they won't look into it but they're starting to do beforehand but i don't i don't have necessarily a lot of conviction that amazon would be some place that i'd want to go and buy a subscription to watch a show or think that they would produce some great shows because everything they've touched has not been the type of quality that you've seen for people who really
focus on that thing whatever those are doing whether it's food shopping whether it's team being whether it's production content whatever happened retail clothing whatever happens to be super interesting and insightful and intelligent as always most of the c.e.o. of the start of those things was anglia. and turning now to the issue of infrastructure at the sickly broadband internet access britain's opposition labor party pledges this week to invest one point six billion pounds to improve broadband capacity in the case of a no deal brecht's this labor says that their plans could deliver a minimum speed of thirty megabytes per second or m.b.p.s. is by twenty twenty two. the incumbent conservative government of theresa may said last week that they could deliver as much as greater speeds with a one gigabyte per second but did not indicate any new funding funding for the goal now here to give us a broader perspective on the issue of broadband access the u.k.
in the u.k. and the e.u. is r.t. correspondent daniel hawkins. the countryside somewhere you'd go for greenery or fresh air perhaps to escape social media the slow internet here will help with that but we're not in the countryside. we're actually in rather i thought a london suburb just a few miles from the city as you can see behind me is one of a number of areas both here and another urban centers where internet speeds are among the slowest in the country. while internet speeds normally see a consistent urban rural divide it's britain's major cities that often see internet black sports frustrating both residents and businesses recent studies have shown the u.k. dropped to twenty first place of twenty eight in europe an internet speed rankings one improvements have been made broadband speeds rose by twelve and a half percent over the previous year average global speeds jumped by over twenty
percent meaning the u.k. was overtaken by countries like france luxembourg poland and madagascar with much of the u.k.'s network based on old copper wire phone system a government report estimated f t t p the fastest type of coverage could take over twenty years to reach most of the island's population meaning one of five gigabyte h.d. movie takes more than thirty six minutes to download in the u.k. it takes seventeen minutes forty seconds in romania and just over eleven minutes in singapore the government aims to have the country covered with super fast speeds by twenty thirty three a big ask given the billions needed for that infrastructure rollout the alternative though is the u.k. being left very much behind in the super fast internet race. and that's it for this time you can catch boom bust on directv channel three twenty one or dish network channel two eighty or streaming twenty four seven on pluto t.v.
the free t.v.'s channel one thirty two are always hit us up at youtube dot com slash boom bust r.t. we'll catch you next time. see it is like that is appendix and you can take your panics out your body and the body continues on it's just an appendage. so this is what people don't understand is that the u.k. leaving the e.u. the e.u. continues on great but if you take the appendix out the body is just going to wither and travel and die because it has no body to exist anymore and this is what's happening in the k. and it's going to be a lot of fun to watch because there's a living beyond their means for somebody hears found out coming all.
this is. a church secret indeed just like priests accused of sexually abusing children can get away with it would literally like to call this to do graphic solution so what the bishop needs to do then he finds out that the priest is has a purpose through is simply moves him to a different spot were the previous standards not the highest ranks of the catholic church conceal the accused priests from the police and justice system to that end of that's known as the end and then i include at tuesday's out in. this. case felt.
in the philippines city of angeles when the u.s. military moved out the six tourists moved in. and now a whole generation of fatherless children is growing up here i think that. then. i think gays are generally right that i need. so. sorry it isn't the first time the t.v. crew to see you or takes you were no don't answer is known better now and that it's true or. that's it that you want my god if. they. can take the gilliver but you can't take the little girl. you know woman you know.
u.s. national security and intelligence chief doubled down on trying to tackle alleged foreign interference as it jitters grow over the upcoming midterm elections. refugees in jordan are being required to hand over biometric data in order to gain access to aid and food journalists from the redfish group investigate the ethical concerns around the practice fundamental principle but we need to go by is informed consent wasn't going to let us put up with it. develops a game to teach players how to spot fake news but critics say it is simply a propaganda tool. and a german sports where giant d. does says it will.