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tv   Boom Bust  RT  October 15, 2018 9:30pm-10:01pm EDT

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weekend and british prime minister theresa may went before parliament to try and shore up her curious political position over the weekend talks between ms maes government and their counterparts from the european union turbulence over the challenge of the irish border we've talked about that before while all sides are scheduled to reconvene for more negotiations on wednesday earlier today ms may asked members of parliament to support her approach to brecht's that talks. we have made real progress in recent weeks on both withdrawal agreement and the political decoration on our future relationship and i want to pay tribute to both negotiating teams for the many many hours of hard work that has got us to this point in march we agreed legal text around the implementation period citizens' rights and the financial settlement and we've now made good progress on text concerning the majority of the outstanding issues and here to give us the latest on brac so it's a see our strong mark will reform which hillary thank you for being my pleasure so what's the latest on this we've been on
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a couple of times talking about this we appreciate you coming back to update us what's happening well what you heard theresa may say that was obviously both sides still want the best deal for themselves right what i've heard specially coming out of the e.u. is this rising tide of mutual appreciation that's good everything went through the weekend until basically it was late sunday night that it actually broke down so what they call in the irish border is sort of a bridge too far the irish border is significant of course the one thousand nine hundred eight peace agreement which ended all the sectarian violence is what's causing the issue what the e.u. wants and is kind of going up against this very very issue what the e.u. want is to have this back stop which would be a guarantee of like sort of having the the europe starting at the side of the border we cannot have a border which is going to be disrupting business and we cannot push that border back into the irish sea so there you just to make sure i get it correct that you you want northern ireland part of our look at northern ireland to be part of the
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customs union still to have free trade in the u.k. so you know there would be. the integrity of the u.k. member of time before when i said it's not really brics it's really upset because it's the u.k. and the u.k. is not the great there's the greater land mass of great britain it includes northern ireland yes so because of those peace accords remember that there was a lot of violence around that time and what the open border did was it does. pated that for trade and for peace it is very important to keep it as one unit so what i predict is both sides now are actually sort of on or swim for their british friendship and so i think this riding tide of mutual appreciation by wednesday you're going to see probably each side soften a little because them forget europe just gave the u.k. twenty four hours breathing space and still we have plenty of time to go i do think it solvable but there's no way that the great britain or u.k. is going to accept a bore border which is going to break up island so you are or what we're sort of chances would you give it some sort of breakthrough before wednesday sorry to hear
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. actually i would say this i would say that stephen hawkins said ask me anything about nuclear physics but don't ask me about drugs that it's too complex i don't think anybody knows the answer to that what i would say is i would say there's a a high percentage chance that both sides want to agree and it doesn't have to be by wednesday well then we will ask you again to come back and tell us what you think once there are some think you told me sure appreciate it. and a major investor conference billed as davos in the desert seems to be melting away in a snowball on the arabian peninsula after the disappearance of washington post columnist jamal khashoggi crown prince mohammed bin solomon m.b.'s was to be seen as a global leader in business and finance but after the journalist a mild critic of saudi monarchy entered the saudi consulate in turkey but was not seen leaving and turkish authorities allege that mr cruz shogi was murdered inside
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the possibilities for success of the conference have been diminished dramatically and has that of the in the image of m.p.'s and the saudi monarchy itself most media partners except for fox news have pulled out of the futures investment initiative conference and over the weekend j p c e j.p. morgan c.e.o. jamie dimon signal he no longer plans to attend today the chief executives of black rock and blackstone investment group larry fink and they've been schwartzman followed suit joining over a c.e.o. the executive chairman of ford motor company among the announced pull outs meanwhile and other negative news for the saudis and others the united nations is calling for an end to air strikes in yemen by the saudi led coalition which includes the united states as thirteen million people are facing starvation the u.n. says that is the worst famine in one hundred years the coalition which also includes france and the united kingdom have been part of the civil war in yemen which has already taken the lives of ten thousand people millions more have been displaced.
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and we now move to talk about markets and are pleased to be joined by danielle shea the director of operations and trader specialist that simpler trading who joins us from new york and john grace the founder and investment of investors advantage corporation who is in our los angeles studio welcome to you both you know i want to start with you john are the biggest gains that we've seen of this recovery are they passing us. well we've all no bart right until some time elapses they could very well have been the case that the best is. has is behind us excuse me we've been suggesting since january that we prepare to enjoy the rising but prepare for the down draft and only time will tell if we're in the middle of that and did you know the you know that have been the darlings of this recovery you think text maybe have topped out they certainly took the biggest tumble of all of them last week. you
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know they did take quite a tumble but honestly to me it looks like a very similar poll back to what we experienced in february and march and it looks very similar in nature so i think here it's bottoming out and i think it's an oversold buy and i think it's a good entry point ok so you think folks should should buy the dip is there do you think did you know that there is something perhaps that could be a is there something that could be a stimulus that could get things back on track or do you think it will happen without any external forces. oh absolutely i mean the biggest stimulus right now is going to be the earnings season so it really comes back to what investors are expecting and i think there are there are very high expectations around in this earnings season so if the tech companies can. hold up what they're what they're expecting and i think they could see a nice rally after earnings season and however if that does not come through then of course we can look for those that take out the lows and john do you think if if
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investors are saying you know john i i maybe you want to not be in some of these things that have been going so gangbusters recently would you look at maybe domestic small cap stocks that that may not have the exposure to the tit for tat trade wars with china is that a place that you would suggest investors go or are there other places. well certainly going to look for quality if we see a lot of negativity and so you're going to see the growth stocks take it on the chin but maybe the higher dividend paying stocks being a safer place to be at the same time you never know when this thing just comes apart at the wheel so we hope that earnings stay strong we hope that consumers continue to march with their checkbook whether it's cash or credit but i'm going to submit that you want to look to see what kind of losses can you withstand and then set those parameters and see if your portfolio can perform with the those parameters that you don't have to worry about how low we could go i want to ask you
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both about the fed and john we'll start with you and then to daniel but you know the probably not is states let janet yellen yellen go he said she was doing a fine job but i guess he wanted his own person in this case a white dude but it seems that jay powell the president's pick was confirmed by the u.s. senate looks to be just like every other traditional republican and the president says the feds going crazy there loco john what do you make of it. well the president is a great guy rightly saskia will tell you he's a great guy and he does seem to be very fond of people who look exactly like him older white men in difference to the rest of the economy who aren't looking like kim whether it's gender or and color now you know when everything is going gangbusters of course he's going to take all the credit for that and when things start coming a rider not performing just the way he thinks they should under his magical watch then he's going to be mad at you and blame you for this as though it's your fault
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at the end of the day we give too much credit and too much blame to the president or the leaders it's the primary driver is the consumer and that's the behavior we need to watch and danielle same sort of question to you but also answer this if you can larry kudlow the chief economic advisor for the president came out after these comments that the president made about the fed being local and tried to walk it back a little bit but what do you think about it and do you think that that has any impact sort of your writing the fed on what they may or may not do coming up so i don't think that has an impact on what the fed a mayor may not do but i do think it has a huge impact on the market and just investor confidence because when you have a situation where there is instability in the market that is what actually causes the problems and said of you know and nationally when the fed came out and raise rates sure we got a little bit of a pullback but honestly i think that the pullback and the deeper correction was
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more caused by instability in the markets because that is not a situation that traders like that don't you know do you think we're going to see another rate increase in december. i do think that we're going to see another rate increase and i think that that's expected so i don't see that that would necessarily impact the markets in a huge way but i think that if trump is going to react the way that he is reacting to it i think that that could absolutely cause a negative reaction in the markets and if that makes sense. john were low on time but what's your thought on that and what are you going to be looking forward to in markets going forward here. well we're going to look for stability we're going to look for consistency i think the earnings will probably stay strong but we're also prepared an event that the that we have a turnaround here because it's when the markets go way south like the titanic hitting the iceberg that that makes all the difference in the world particularly for people who are needing withdrawals whether that's something that they're doing
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in terms of required minimum distributions or they need those withdrawals that's when they can ill afford another forty fifty sixty percent loss great john grace the founder and president of investors advantage corporation daniel shea the record operations that trader specialist at some point traded thanks very much to both of you thank you so much. and to u.s. companies will carry out the largest merger ever in the defense industry l three technologies of new york and harris corporation based in melbourne florida say the thirty three point five billion dollar deal will close mid time next year l three is the larger partner in the deal with forty eight thousand employees and about sixteen billion dollars in annual revenues l three is the sixth largest defense contractor in the united states making electronics with a variety of applications and in warfare and security operations in twenty fifteen l three made news when it paid over twenty five million dollars to settle a lawsuit that allege l three knowingly sent faulty optical equipment to u.s.
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soldiers in iraq harris's most well known product as sting ray phone tapping technology in twenty fifteen wired magazine named paris as one of the five most dangerous people or corporations for their efforts to conceal information about sting rays used by law enforcement officials assuming regulatory approval the combined company will operate as l. three harris technologies time not for a quick break but hang here because when we return businesses that once had little to say about climate change are now putting their money and brains to work in an air. to protect themselves and the environment well it's my oldest joins us from toronto and tyson slocum and steve molesworth help us take a look at once a deeply divisive issue and increasingly dire circumstances as you go to break here the numbers at the closing bell backing up what.
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i would hope and change to. put themselves on the line they did accept or reject. so when you want to be president and you. want to be rich. to go on to cross the sea level before three of them or ten people. i mean push the holes in the waters in the. area where should. obama codified the worst tendencies of wall street to institutionalize the kleptocracy turn a blind eye to the excesses of the really the the rats on on on financed in america who are pilfering with impunity and you know this is draining the sloppy
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fortunately i must say that it does mean that interest rates are going to start going higher and this is for the first time in thirty two years the bond market bull rally we've had with thirty two years or longer this looks like it's coming to an end and that is a fundamental shift a huge change in the economy for the world and for the united states going forward so that will be the big story of the next twenty four months. you know in the. home the world. total. not even on our. own. yahoo go to post piece is the move for you to.
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join me every thursday on the alex simon show and i'll be speaking to guests of the world of politics sports business i'm show business i'll see that. welcome back in an unprecedented move eighteen central banks have warned about the financial risks from climate change the banks ranging from england to germany and france to japan and china say the risk our system of system wide and could be irreversible if not addressed the united states federal reserve is not one of the central banks and related to that news the bank of england today is requiring banks to not only improve planning related to climate change but to assign a senior executive as the point person on climate change issues according to the bank of england only about ten percent of banks are taking the needed precautions
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and have scant a scant four year time horizon on the future the information was gathered from a bank of england survey of banks according to be o. officials need more to be done to assess lending practices to high carbon related projects such as those dealing with coal and to assess risk associated with lending and other financial related matters in areas prone to flooding. and for more on climate change and how players in the financial sector and other businesses are coping we turn to our t's alex mahela bichon toronto alex is so good to see you back i know you're on assignment and we're glad to have you with us you know climate change isn't just an issue for a scientist an environmentalist and a more it's really starting to impact the financial sector and and these folks care about bottom line so it seems to me that's like a natural place to do cost benefit analysis that's what they're doing right. hobart great to be back and yes that's exactly what they're doing but we have to start with the scientists when we're talking about climate change and of course one of
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the most trustworthy sources that i could possibly imagine would be something like nasa now check out this chart it gives us a bit of a coverage of the basically what is happening here at nasa says it is extremely likely that current warming trends that means extremely likely meaning to the ninety fifth and above percentile that is a result of human activity and you look at this chart a big basically shows with dramatic c o two rise just in the past decade or so and they're saying that it's unprecedented this is what's been happening since the mid twentieth century so it's about nine hundred fifty to now there's never been this type of rise this type of rise in sea otu unprecedented is important to note that especially when the united nations we saw the report come out just last week with some dire numbers basically saying if we don't change what we're doing within the next couple of decades and dramatically change what we're doing we're going to be in a lot of trouble a lot of trouble means drought means food shortages means animal species disappearing from the face of the planet so a lot of people argument as well is this a manmade issue is it not
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a manmade issue look pollution is bad no matter what so even if climate change is not manmade we need to fix things and this is definitely a catalyst that will push us in the right direction one thing you mentioned banks are looking at this now when you have the bank of england talking about this telling people that you know what you better put people in executive positions that will be looking at climate change a climate change alone and you better get start getting off of the fossil fuels and investing in that start lending to more green were the type of initiatives you know that something's rashly happening because banks this is not something that interest them and less like you said it affects the bottom line and it isn't just the banks either insurance companies are taking a second look right absolutely not a candidate we have we have a great example here of sure you remember the wildfires in alberta by fort mcmurray just a couple of years ago so there's a company called of you guys out of the u.k. they've been in canada since eighteen. thirty five these guys felt the effects of what happened there the insurance companies the numbers game they were thinking
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there's no chance that something like this was going to happen and it ended up costing them three billion dollars so this is a big number two insurers and now they're looking at things differently they're looking at climate change and the study that if you did is actually showing that yes one is related to the other when you have wildfires and this this type of thing happening around the world so insurers now of course premiums need to go up so since two thousand and sixteen premiums have gone up six percent when it comes to home insurance in that area in canada and besides the premiums a lot of people are saying well i haven't really seen surance go up too much less because a lot of investments have been made in insurance and also the fact that the insurance companies are in a pretty good place right now but that doesn't mean and here's a factor every year i mean is when we pay insurance then we're reinsured and that's the whole thing they complete the short term gain and then if they see that something's changing the premiums are going to go up definitely and i know alex that there's other folks in the real estate industry for example we had nickel so
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donna do something for us down in miami not long ago about some of those properties that aren't worth as much even though they are currently right on the ocean i got to run but thank you so much alex we're glad to have you back pre-shared it thank you. and here it is gus even more on this unusual circumstance of the business which of have traditionally been opposed to addressing climate change but now are doing so are friends tyson slocum the director of public citizen's energy program and conservative t.v. and radio commentator steve malzberg tyson let's start with you insurance companies are nothing if not constantly updating their actuaries and they are by their very nature sort of a risk adverse so when they do this thing that alex and i were talking about that was that fort mcmurray fire a couple of years ago it really is a big deal right of course i mean now you've got. millions and millions of more homes and businesses that are in flood plains that weren't there
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a generation ago you've got more areas of the country in the world that are affected by significant droughts the impacts of climate change are significant we are seeing more frequent more intense storms we're seeing more intense droughts and it's absolutely being driven by the unprecedented rate at which we're burning fossil fuels and burning of those fossil fuels releases greenhouse gas emissions which are at the highest levels ever and so it's clear that the insurance industry they should have been a leader on this long before now but it's clear that the unanimous. point of view in the insurance industry is we've got to start changing our models because climate change is significantly altering. our risk assessments well i mean it's really i mean it's as horrible as it sounds like but we're a business program it's about the bottom line for these folks to i'd like to think
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that they you know are all green and you know the eat tofu and everything but the bottom line is they are doing this because it's in their interest and steve you know exxon mobil we saw in recent days they're actually putting a million dollars in supporting something they have long opposed and that's cap and trade that is a carbon tax essential i mean what do you make of this is up to. well they're doing it to protect themselves in a strange way and i don't know if they tofu i would doubt that seriously but what they're looking around the world and they're seeing that country after country are putting more and more regulations on oil companies fossil fuel companies et cetera and they're trying to preempt that from happening and prevent that from happening here in the united states so they're giving five hundred thousand dollars a year for two years. which as you mentioned is a million dollars but we're talking about a three hundred fifty billion dollar company towards instituting
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a carbon tax which is something that has not gone over well the talk of a carbon tax here in this country and this is a carbon tax that would pay a carbon dividend back to americans supposedly in the end it's also interesting that exxon i believe is doing this because now everybody would be involved in this carbon tax anybody with a carbon footprint so the focus goes off of fossil fuel and oil companies like exxon and it's on everybody all of a sudden so i think they're what they're doing here is really in their bottom line interests and i don't know how far it's going to go because even though three republicans trent lott and two former republican secretaries of state are involved in this carbon tax push you know when you talk about even climate change it's at the bottom of the list of concerns of the voters in the united states so that would have to change first it's not a sexy issue reminds me of
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a story you know you. know there's a sewer for tom daschle the majority leader at one point the minority leader was trent lott that you just mentioned stephen after mitch mcconnell ended up being the . minority leader i remember senator daschle saying boy i never thought i'd say i'd miss trent lott but he is a reasonable fellow and has been for a long time tyson in that regard you follow the hill a lot and it takes a long time to change views there and the administration has not yet changed their view larry kudlow had this to say about carbon tax yesterday. the issue here though is magnitudes and timing personally i think the u.n. study is is over it with way way too difficult i won't say it's a scare tactic but i think they'll overestimate these models have not been very successful in the last twenty years and we have to be cognizant of the work that
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needs to be done i'm not denying any climate change issues george i'm just saying do we know precisely and i mean worth modeling things like how much of it is manmade how much of it is solar how much of it is oceanic how much of it is rain far as and other issues i think we're still exploring all of that i don't think we should panic i don't think there's an imminent catastrophe coming. and i remember i saw that on a.b.c. yesterday with with george stephanopoulos i my i thought but wait a minute if you're wrong about this is a dire circumstance it's not like we get a do over and the un does say there are twelve years so you know just like the businesses we've been discussing or trying to be risk adverse shouldn't politicians be risk adverse and with regard to cap and trade ties and i know you try to get that done back after the way election and it just didn't happen even though john mccain at the time was in favor of it do you think this changes the math on capitol
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hill for getting something done i think it starts to i mean i mean first of all getting back to cuddlers comments with all due respect he's an idiot he has no idea what he's talking about the the reports actually clearly show what is driving climate change this is all settled science and so i'm sort of sick and tired of continuing to debate with people who have no idea what they're talking about like larry kudlow second of all when you've got big businesses right like exxon mobil saying look we need to have some sort of long term planning on how our energy and carbon intensive business is going to coexist with needed regulations or strategies to address and mitigate greenhouse gas emissions you understand that businesses need that regulatory certainty and if you look at the details of what exxon mobil is pushing they're pushing for a federal carbon tax in exchange for kicking the environmental protection agency
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out of the business of regulation it is an explicit deal that exxon is pushing you would think that republicans would be all over this just like republicans should have been all over the paris climate accord because the paris climate agreement right which was this global framework it was a voluntary framework there was literally no penalty for noncompliance again. this is what republicans have been asking for for twenty years a global plan with no legal consequences for the u.s. and here exxon mobil is saying just price carbon address the accident ality and get rid of regulations you know i republicans are attacking this is a mystery to me sorry we don't have time for more we'll bring you back together and dogs and cats will be one i thank you conservative t.v. and radio host steve malzberg and tyson slocum director of public citizens energy program thanks for. thanks for being with us take care.
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and your own pal. i'm not that. type of time to all put enough. in film in there is a trade in young girls sold into an underground six in the street sometimes but the people they trust the most.
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you cannot operate as united nations this is not just about un d.p. world health organization and in fact other international organizations like the international committee of the red cross you cannot work in a place like gaza with pragmatic cooperation with the local authorities which are hamas in this case here on or has been for most of the last few years. it was government official of president i don't have faith in the system. i've got it's up to the broken system designed for people like me who are moved. as well as the. different people who are here for different reasons but also job we also have.
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most people in philadelphia are only about two paychecks away from homelessness. says' voters have lost confidence in politicians after the chancellor's key ally as tough as an upset the various regional elections. turkish investigators search the sound a consulate in istanbul of a claims that a journalist was murdered by a hit squad inside the building reacts denies all accusations. and sources close to julian a staunch confirm to on t.v. that he's been given instructions on how to behave online having his internet access partially restored by the ecuadorian embassy.


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