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tv   Boom Bust  RT  September 10, 2018 9:30pm-10:00pm EDT

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because the only way to be to get there means reacting to these threats i think to trace threats of triumphalism or to go straight for europe. this is going bust broadcasting around the world and covering the world the finance and business and the impact upon consumers and investors i'm part killed in washington thanks for being on board. coming up the missing ingredient in the growing united states economy has been wage growth worker pay that may be changing the c.e.o. of quill intelligence daniel de barge you know both joins us to consider why it's been low and the future and in a twist to the tasty drink orange juice ortiz nicholas o'donoghue reports from
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miami on how brazil has overtaken the u.s. in the one point four billion dollars industry plus as les moonves the scene c.e.o. and chairman of c.b.s. prepares to leave amidst a scandal what will become of the story company without its important and influential leader marco suster professor toward a lecturer at american university joins us to to discuss and campbell's soup takes a turn away from fresh artie's ashley bank reports on the changes afoot at the food companies lots to get to but first we have a few headlines today we lead our global report with a tour of asia as we catch up with regional developments regarding china's economic diplomacy regarding the much discussed belton road initiative or b r i i in fact these are the first negative reports we've had related to be arye we go first to pakistan where the government of new prime minister imran khan has said that they will formally scrutinise the sixty two billion dollar portfolio of investments in packets. and related to be are i pakistanis role in b r i s formally titled the
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china pakistan economic corridor pakistani officials reportedly informed the chinese foreign minister of their plans in a meeting yesterday mr khan who took office less than a month ago has little room to maneuver as he tries to sustain foreign exchange reserves and ménage pakistan's growing debt much of that debt is owed to china and that has invited u.s. secretary of state mike pompei o to rule out loans from the international monetary fund or i.m.f. as a remedy mr pump aoe has disparaged the idea as a bailout for chinese investors. and the belton road initiative has also hit a bump in malaysia as the new government under returning prime minister mohammad has confirmed the cancellation of a set of pipelines related to energy totaling nearly three billion dollars the cancellations of the three specific pipeline projects follows a previous suspensions and review of them the projects are seen as key belton road
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efforts another belt road project the twenty three billion dollars east coast rail link was suspended in july and is still under negotiation mr mohammad has consistently expressed concerns often quite boldly about specific b.r. related projects and other chinese investments on a state visit to china last month mr muhammad rattled his host by expressing concerns about quote a new version of colonialism in relation to chinese investments calling for what he termed fair trade policies that recognize disparities in wealth between partnering nations as a candidate mr mohammed flatly said we gain nothing from chinese investment. we now turn to the jobs report and take a particular look at wage growth for workers to do so we are pleased to be joined by danielle de martino both the c.e.o. of quill intelligence danielle welcome back. thanks for being with us that was
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a pretty good job report two hundred one thousand in august the the unemployment rate remained the same three point nine percent which was great even though the june and july numbers were reversed down both being reduced by a total of sixty thousand cumulative the average monthly jobs increase for this year is one hundred eighty five thousand per month these represent the ninety fifth consecutive months of u.s. drone job growth i mean that's pretty incredible i mean overall things are going pretty well right it really is a startling run that we've seen part and we're seeing quite a bit of resilience for being as late in the cycle as we are at this point you actually expect to see a tempering in job growth which we really haven't seen which speaks to some of the extraordinary environment that we find ourselves in the economic environment that we find ourselves in where there are too few skilled workers to fill open positions which takes us back to that first subject you raise which is which is wage inflation well let's talk about that
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a little bit i mean that has been sort of the achilles heel of the missing ingredient in the economy is wage growth and it's not just been a couple of months it's been for years and then all of a sudden we actually see a pretty good report on friday when the jobs report was released two point nine percent which is increase that year over year not just august year or year from last august or the august which amounts to ten cents that's really good news right . you know it is i would temper the enthusiasm a little bit because there was there was some seasonality involved in it a very weak august two thousand and seventeen number was kicked out of the mix so we might see a little bit of payback when we see the september numbers come out but i think the real point that we should be looking at is that if you consider that inflation is running at a decade high it is finally on par with wage inflation in other words if there was the insult to injury and that inflation has been running above wage growth for a very long time so it's not just the headline number that you see that is very
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difficult for households to get by on but it's the fact that if you account for inflation they're actually going backwards we're finally at the point where depending on who you ask we're at the very least treading water right now in other words people are not falling behind the cost of living bart and i think that that's a key point that we should key takeaway that we should look at from this latest jobs report and there's some sort of debate about you know every administration always has like well we think things should be calculated this way or that way people some like to refer to the use six instead i remember that was one of the things back in twenty fifteen and sixteen where the bottom line is the bureau of labor statistics looks at these things but are we getting the right information on wage growth i mean should we change the calculation to include for example benefits . you know it's possible that we need to revisit a lot of calculations bart but i think that what you should focus on more is kind
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of the man and woman on the street and what companies have been reporting and why this probably has federal reserve chairman to ron paul's attention and that would be because companies have been reporting that they have been spending a lot more on labor for months and months now and the aberration the anomaly if you will was that it wasn't coming out at all in the weight statistics so it's very possible that we need a broader safety of broader net to capture what what households are truly taking home an income because it might be a more robust rate than what we're looking at given the current calculus i mean it seems to me it would one you know benefits included i mean because benefits shift right to me maybe you have a bad year depends who the employer is and if you're an employer you don't think about what is the hourly wage you think about what is the cost of this employee in total so that's the metric you're using i don't know what the right calculation is but i would love having these things always be looked at and get the right things
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so it's an important data and let me ask you this one when you look at what's going on with regard to the jobs report with the anticipation two rate increases did you know they were still on track for that some had said middle last week maybe december the december rate increase the theoretical rate increase we pushed off to next year what do you think. well i think that i think that the fed is definitely much more engaged than they were before that jobs report hit the wires on friday morning and i think september the twenty six most would agree we've already got that built fully into the markets but i think that the fed absent any major shift between now and the mid december meeting that shows that this was truly an aberration in the things that we can substantially and that would come out and other types of data i think that that would that would put the fed on their back heels but you know we just got a fresh data report out on consumer credit and you know those numbers were much stronger then than what they had been if households aren't making more money
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they're certainly not going to be borrowing at a brisk pace than they were but again fresh data seem to corroborate those those strengthening wages and what you talked about the consumer price index a little bit ago we talk about wages but let me ask me if the distance played for folks if the c.p.i. is going up that generally does that mean workers have less money because prices are higher and what you'll be looking for going forward with the c.p.i. and the p.p.i. both of those. well that p.p.i. really does speak more to what you were speaking about a moment ago which is companies costs and when the p.p.i. goes up that means that that company's margins are getting compressed because whatever their input material is to make whatever they're good or services is going up at a faster rate that actually puts companies on their back heels and makes them more compelled to try and reduce their biggest line item that they can control which is their labor cost but again as i said earlier the most encouraging thing about the
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run up that we've seen in inflation is that wages are finally keeping pace with that such that households are not falling behind anymore if we were to start to see a break away once again when the c.p.i. was running at appreciably faster pace than wage inflation of course that becomes problematic and i think that jay powell and those at the fed myself other economists and strategists who follow the markets are going to have an eagle eye on those data points in the september report in the november report going forward for any signs that this second longest expansion in u.s. history is losing steam we can't thank you enough for your help in explaining all of this daniela really insightful and just this helps us all help me danielle de martino both the c.e.o. of quill intelligence thanks danielle appreciate your time thank you. the one point four billion dollar orange juice industry has a new leader or she is nicholas o'donovan reports from miami on how brazil has
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overtaken the united states. orange juice is big business according to the department of agriculture the average american drinks around twenty three pounds of orange juice pe year florida california and texas all grow oranges but the sunshine state is the source of most of the fruit that makes its way into orange juice but the reality of the matter is that a big part of the product isn't actually from florida at all it's from brazil so juice labels are that once read one hundred percent florida juice have been changed to read one hundred percent juice in fact today more than fifty percent of all orange juice bottled by major u.s. companies such as tropicana or simply orange is supplied by brazilian companies shipped up from the south american country in specialized fruit juice tankas for decades orange juice production has been growing in brazil in twenty seven danes
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the orange juice export market was was a staggering one point four billion dollars the u.s.d.a. estimates that brazil's total output of orange juice will rise around fifty percent this year with exports rise in twenty eight percent and brazil's production lead over the u.s. has doubled since two thousand and three and that gives us an idea of what things could look like for local farmers in the near future but brazilian produces on only dominate in exports they use in the benefits to come here to florida and buy out production facilities effectively make in brazil a thigh a natural backer much of america's orange juice brazilian production isn't the only thing hurt in the orange juice industry here in florida back in two thousand and five the citrus green in disease affected hundreds of grows across the
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. resulting in a fifty five percent decline in production over the next decade since then florida's orange grows have raised prices by nearly two dollars per gallon coals and bottle is to turn to cheap brazilian already juice and then last year we had hurricane plundered florida's orange belt leaving a trail of up rooted trees downed fruit and flooded grows making it even more difficult for local grows to compete. with picnic o'donovan for that juicy report sorry time now for a quick break but stick around because when we return a remarkable story and lecturer at american university joins us to discuss media giant c.b.s. is chairman and c.e.o. les moonves prepares to leave amid the scandal what does it mean for the story company without its important and influential leader plus artes actually bank
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reports on the changes afoot at the global food company. they are taking a turn away from fresh product offerings and as we go to break here the numbers at the closing bell back in a place. of its face for the next actual threat like china becoming a superpower and get its act together and like we did during the cold war oh after russia put up sputnik the u.s. landed on the moon that's fine mission the moon and look if we have an existential crisis coming down the path guys like trump and other entrepreneurial. leaders will mobilize the country and i walk on this challenge because right now america doesn't
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have anybody else out there to play with the. or. welcome back currently as have suffered a significant setback in their march toward the mainstream of global finance and
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economics after the us securities and exchange commission or c c temporarily suspended the trading of to exchange traded notes or securities issued by h b x b t e provider a b. the suspension took effect on sunday evening u.s. time it was announced via twitter the official statement cited their legal authority and said quote the commission temporarily suspended trading in the securities c x b t f and c. eighteen h. f. because of confusion amongst market participants regarding these instruments the issuer of these two financial instruments x b t provider a b. is a division of quine shareholdings based in the u.k. and essence they offer investors a chance to invest in a crypto currency through these products without having to actually purchase bitcoin or other crypto currency directly. while the future of sweden's new government is not yet certain one thing is clear the nation's election sunday had
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seen the greatest support ever for the far. right party the swedish democrats the party increased their percentage in the national elections from twelve point four percent and twenty fourteen to seventeen point six percent yesterday depending upon the final tabulations it could be sixty three of three hundred forty nine seats and the parliament that's the riksdag swedish democrats currently have forty nine seats the social democrats largest party in sweden received twenty eight point four percent of the vote so it is a nation of roughly ten million people joining the e.u. back in one thousand nine hundred five but rejected using the euro in two thousand and three known for tolerant social justice and free markets sweden has the lowest debt of any e.u. nation in twenty seventeen sweden's g.d.p. was two point three percent a year in year over year currently stands at three point three percent the unemployment rate is six percent. the influential media mogul les moonves the chairman and c.e.o. of c.b.s.
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may be stepping down at some point and he does so amidst a scandal if he's found innocent of the allegations he could leave the company with a reported one hundred million dollar deal but the c.b.s. board has hired a law firm to investigate the assault and harassment charges he could end up with nothing and the c.b.s. board will be revamped in a settlement with c.b.s. parent american amusements and c.e.o. sherry redstone what will become of the story what will become of the storied company without it support an influential leader professorial lecture at american university joins us to discuss now margo thank you so much for being here thanks bye and now there's breaking news out i mean literally it handed it during the break here that c.b.s. has spiraled with the f.c.c. saying that mr moonves it may be there for another year is thinking he was collecting things out of his desk we don't know any more than that right now do we know we don't fox news is the first to report it saying that this i.c.c.
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filing said. that he'll stay on for an additional year ok so that could give the board time to have this law firm to do this investigation theoretically but look he's a bit in this important employed chill guy i mean what does that mean for the company whether or not he leaves this week or in a year i mean things could get really bad i mean i can't imagine that if some of these allegations go forward that they would keep him on for for that time period regardless of what they're telling the f.c.c. he may do at this point you know what does it mean margot well the board of directors was aware of allegations that had been brought forward to the los angeles police department actually months before the new yorker first reported that six women had claimed sexual misconduct allegations against moonves so really there are big questions here about what the board knew when it knew it did it act swiftly enough and did it acts swiftly enough at a time when c.b.s. was making double digit profits you know each quarter it felt like c.b.s.
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couldn't live with these big shows and moonves is known as a big t.v. person he brought shows like survivor and c.s.i. and the big bang theory he brought c.b.s. a much younger audience and it had in the decades prior to him coming on coming on board as the c.e.o. but there are real questions here about leadership about transition and about c.b.s. is culture a toxic culture some are saying now for some women you know it's a far too often we hear about these horrendous stories or not but i pay talking about it it's important to bring them to light but they're the energy so bad with them that i don't like them because of the tell me there's also this change the parent company american amusements a parent of c.b.s. national newsman national news it's thank you and sherry redstone they've been having this ongoing dispute what's that been about and how are they resolving it right now with the board so the way that what's happening right now is that cherry
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red stone is. that that bickering if you will between c.b.s. and national news national news misremember owns eighty percent or controls eighty percent of c.b.s. corporation stock and what it is said now is that with moonves his ouster that that any pending litigation between between them will go away will disappear how this this news just literally said just broke in the minutes before we the show started how that alters that landscape i'm still not sure right now but what moonves is credited for in addition to being a t.v. powerhouse and bringing a younger audience to bring the advertisers bring younger audience excuse me to its advertisers well moonves is credited with is holding off of viacom c.b.s. merger so national amusements now if they're saying that c.b.s. and its new board it may be up on the chopping block so here yet again we could be seeing another merger remembering that there are companies out there distribution
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companies that are begging for content at this time and whether or not a new board thirteen member mortar board is going to be willing to entertain deals that's going to be something to look forward to to beyond just moonves in the culture at c.b.s. there are going to be real questions about its leadership and its stability and what it might mean for big media deals so. sure she always wanted this viacom deal that is correct that's what the actual will be of the thirteen person board will give them enough to move forward my understanding is that eleven members will be independent from national amusements and how that board will look at how they're taking shape is is i'm i'm i'm sure one of the board members is a former head of time warner who was credited as shepherding out shepherding them out of a disastrous deal with a.o.l. in two thousand and one of these are board members that know media these are also
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board members that include william cullen for. or secretary of defense a former dean of the harvard law school and we've got big names on this board in the new board members whether or not they'll be willing to entertain these mergers i think it's a wait and see time finally before we go margot you've helped us out on others the other mergers we've talked about in the media space would this be one. deal would that be one that would raise and i trust issues or not i don't know that it would raise antitrust issues viacom right now is operating i believe as the ninth largest media company c.b.s. certainly has big holdings in television and they both have properties in film so whether or not it reaches the level of some of the disney twenty twenty century fox i don't think so but you know anytime you have you have one of the big some merging with one of the bigger i think that it's going to fail it's going to face some d.o.j. scrutiny. professorial i could never get that professorial lecture at
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a very good university get better all the time thank you for being here so much by i think we should. have the company is making some big changes and throwing their healthier offerings overboard the company with the iconic suit him by andy warhol and first displayed in one nine hundred sixty two began selling soup tomato soup back in eighty ninety seven and until recently that have been on a roll selling roughly four hundred forty million cans each year roughly forty five percent of that soup is what type her to guess two hundred million cans are chicken noodle and as a global manufacturer campbell's has production plants the united states of course but also in canada australia germany bowl asia and in the united kingdom well now the company is taking a step back arctic correspondent ashley banks at the details hamilton has been
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around for on. one hundred and fifty years however over the past decade many consumers are finding that their taste for the canned goods has changed campbell soup company is known for selling canned soups and vegetables however many consumers are now interested in fresh food. the former chief executive denise morrison one to camp old to have a wide ranging portfolio focusing on health and well being however the company isn't doing so well in that category so what announcement let's fresh food and overseas businesses to offset the loss and revenue adding it will focus the company on two distinct businesses campbell snacks and campbell meals and beverages and its core and north american market after the announcement was made shares of campbell which have a market value of around twelve billion dollars by two point six percent to thirty eight dollars and ninety five cents shortly after midday campbell shares have
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fallen by a third over the past two years and the company is in a lot of debt campbell is hoping by returning to its canada roots it can read the company of any debt by the fiscal year two thousand and twenty two historically campbell's has been able to resist a major changes and has held off calls over the past thirty years for the company to sell itself however in the past few months with the number of hedge investors buying positions in the company pressured to sell is higher than ever before experts say shareholders are finding it a bit disappointing on the company is selling a part of itself as they are eager to revamp the company and make a profit however activists investors like the hedge fund third point are urging campbell to sell itself completely campbell's interim chief executive had this to say the board remains open and committed to evaluating all strategic options to enhance the value in the future although campbell's is making. efforts to ensure
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the company stays up the loot selling the company and its entirety isn't completely off the table and washington actually banks art. and as a note campbell stock closed at forty dollars and fifty four cents per share at the close of trading at the new york stock exchange today and that's it for this time thanks for watching you can catch boom bust on direct t.v. channel three twenty one dish network channel two eighty or streaming twenty four seven on pluto t.v. the free t.v.'s channel one thirty two as always hit us up at youtube dot com slash boom bust r.c. see you next time. my body told me that i belong with the born but my thoughts my mind was that along with the girls. i was drawn to the surgery starts to be of any particular.
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football person's doctor. i was born a male had a sex change when i was thirty years old. i've now been living as a woman for twenty eight years and i fully recreate this. problem should have gone away from by now but they hadn't so these surgeries are nothing more than plastic surgery i've had several female to male friends and you look at it and you just go oh god you paid for that it's horrible nobody can change genders it's impossible it is still lucian it's a mental illness. this is now one of my bones and flesh of my flesh she shall be called woman because she was taken out. in twenty four to you know bloody revolution to the demonstrations going to be
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relatively peaceful political protests. to be creasing the violent revolution is always spontaneous or is it you're still with. us. in the new bill is that i knew you needed to the former ukrainian president recalls the events of twenty four. those who took. invested over five billion dollars to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. i. i. i i
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i fear they are. the french president emanuel mark sparks backlash online as video emerges of him talking to a group of migrants some of whom claim they have been living illegally in the country for years. sweden's ruling social democrat suffer their worst election result in a century while the insurgent sweden democrats make a major gains with of their hard line anti immigration platform. and despite iraq declaring itself a free from islamic state almost a year ago we report on how the terror group remains active across large swathes of the country. open the final straightaway.


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