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tv   Boom Bust  RT  October 25, 2018 3:30am-4:00am EDT

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what is held that may be not correct and to secure the use of people's personal data. well saudi arabia's royal family is trying to soothe investors who may be getting cold feet about relations with the kingdom this week there's a reminder today that saudi economic influence remains substantial at the controversial davos of the desert conference in riyadh we've told you about before pakistan's prime minister i'm room khan made it clear that saudi's large yes is still welcome among regional neighbors as he accepted a six billion dollar package of loans and credit from the saudis ahead of the event mr condit admitted the obvious by telling the media quote we are desperate for possible saudi loans three billion dollars of the packages advertised value comes from a saudi deposit in the pakistani central bank while the other three billion dollars is the amount of saudi oil that pakistan will be allowed to buy on generous credit . and turning back to the us a familiar and iconic company which is
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a merced in the debate on trade and tariff harley davidson has posted their latest earnings report to mixed reviews the famous motorcycle manufacturer reported q three revenue increased to one point one billion dollars topping the figure of twenty seven teams q three by roughly fifty million dollars and slightly exceeding expectations but stock traders seem to a focus more on the negative harley's q three motorcycle sales were down by thirteen percent year over year harley also disclosed a worldwide recall of two hundred thirty eight thousand of their motorcycles related to clutch problems which is expected to cost the company thirty five million dollars harley stock would trades as h g are hard on the new york stock exchange was down as much as four percent in trading following the news and is down about eighteen dollars on the year. and this has been a week of hot and heavy earnings reports and today is no exception here to help us
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examine some doctors add a mash of add a measure training group adam welcome back it's good to have you last time you. here boy remember that day the market was crashing in and i mary said it was a great day to be a traitor but yesterday during the day i thought perhaps we be going back to that pretty bad day and some of that yesterday people were saying was due to caterpillar's and while the markets recover just at the end there yesterday in new york what is it about the caterpillar earnings report that helped put this market sort of in a funk for us thanks for having me back i really appreciate it and the last time when you asked me if i thought we were done going down i hope you remember i said no good advice to your listeners i feel good about that now in terms of caterpillar they are an example of the biggest loser in the trade war because everything they want to buy is becoming more expensive and all of their customers are. being able to take advantage of cheaper alternatives so they're the perfect the loser in this trade war example but i don't think caterpillar is to blame for what we're seeing
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in the markets i think it's a technical breakdown we fell below and the significant trend line that we hadn't broken in over two years and again i don't think all the selling is done and what about microsoft i mean we you know the techs of been sort of the darlings of the street for the last couple years and and you know microsoft is one that people are looking towards what's new with them on their earnings. well microsoft are waiting to see but overall microsoft has been strong this year they're making of ground against amazon in their cloud business and i don't know anyone else who can make up ground on amazon so that's a big achievement right there hardware selling well software selling well again the cloud this is doing well and their purchase of linked in is also working out for them so microsoft has a go or not you know they are they are one of the stronger companies in this environment but on a technical breakdown everything can get brought down right and you know what
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probably should've put these two together add on but boeing which is also one that's been you know pretty impacted by the steel and aluminum tariffs to make those big tubes out of aluminum what are they what housing report going they just reported today well they got to be happy they managed to finish positive in a market that got destroyed today so everyone a bonus of feel good about themselves as traders we always know that the day a company releases earnings it's going to trade in its own world so boeing managed to stay strong because of that news in face of the market but if the self continues they'll probably get bought down a little bit as well but they've signed some great deals they continue to dominate the market and boeing is an example of another strong company in this environment and lastly adam what's moved to automaker to ford out for do today so ford we're waiting to see again on their earnings but we know carmakers have had
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a rough go of it and as we start to enter a rising interest rate environment that could hurt them even more so what we might be seeing is when people ask if you've driven a four they really more people could be saying no great adam in general do you expect the market to continue i mean we have another big down day to day do you expect that to continue or think will be some stabilization. now that we've broken a key trend line when you look at the support going away i expect us to test those february lows that we hit i think we could have at least another thousand point drop on this technical breakdown and when you as a trader start to ask how much lower can we go the market will always show you so i tell people for the individual traders in this environment your best opportunities will be to buy things cheaper if we rally from here it would kind of be a weird event and i wouldn't get too excited about it so what i'm looking for is to
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be light closer to the sidelines and i'm going to look for better prices down below well adam will remember your prognostications about where there was more to come there certainly was adam mesh of adam mesh trading group thanks ed appreciate your time thank you so much i appreciate it. in the asian energy market today in pecks corporation says the first shipment of liquefied natural gas from a plant in northern australia isn't route to japan in pics says the shipment from the elegy processing plant in darwin is the first shipment and part of a larger project called it thius to develop l n g a broad for the japanese market japan already reportedly purchased eighty percent of australian elegy output company officials say they expect japanese prime minister shinzo abhi to tour the plant on an official visit next month. and oil
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prices a fall of more than four percent this week joining us to break down the factors that should be contributing to it and hitting. the producer saya tab and you're assigned to tell us what's going on and why i don't want to play. well bart as you know there's a huge correlation between oil prices and market trading which is what's happening right now and with all the violent tilley t. coming out of the middle east what traders have been doing is actually trimming bets that oil prices will rise in coming weeks and reducing their exposure to risk which is currently crude oil the other two major factors are saudi arabia and iran as you know the iran sanctions are just around the corner and going to affect event before and even before the geopolitical concerns around saudi arabia there was questions of how much to kingdom can really step up in a way to offset supplies for iran and iranian exports are now expected to fall to
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a significant a low level just earlier this year iran was exporting around two point eight million barrels a day but now it's expected to fall to one point four million million barrels a day after the sanctions going to effect and the question really is bart if saudi arabia is able to step up who else is ready to step up to make up for iran's missing exports to the market and also remember there is still embargo atar by saudi arabia and the united arab emirates and of course ongoing issues an event as well as production which is continuing to decline but even with the death of jamal khashoggi there hasn't been much effect on oil prices as you would expect in such a geopolitical situation arises from a major opec exporter which is saudi arabia so now you think aren't we all these geo political situations and uncertainties why hasn't the market really reacted much to or oil prices until now even though everybody has already been anticipating
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the sanctions and there. iran and the answer really is the us which is the biggest game changer right now us is now a major oil exporter which was not the situation just a couple years ago but how much u.s. or oil exports will rise to offset iranian export sanctions for that we must really wait and see and there's also just a lot of question now on lots of uncertainties as the world continues to watch how the market will react to iran sanctions and the geopolitical situation in saudi arabia so everyone is really watching closely especially in the region for a long term implications and so i just briefly you know you spoke with us the other day you know it quickly about that humongous oil spill in the gulf of mexico what's the latest on that how the to clean this thing up well just to give you a recap we reported earlier this week that of course the oil is still surging since two thousand and four and right now it's surge more than one hundred and fifty three fifty three million gallons or the fourteen year spam so what's being done
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right now since the actual distance of fourteen years really the short answer is absolutely nothing there is no plan by industry there's no plan by the government to do anything so we're really following the story very closely to see what's going on we're going to keep talking about it to something needs to be done that's not right to do it thank you so much i appreciate your help of course. time now for a quick break but hang here because when we return with mcdonald's also reporting earnings we take a long look at the good bad and the ugly of the largest restaurant chain by revenue in the world and the iconic retailer sears has not only filed for bankruptcy but today was delisted from naz but that we consider the last bit of life in the fabled
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retailer with steve malzberg as we go to break here the numbers at the closing bell stocks are down sharply today with all three major exchanges on our big board posting losses between two point four and four point four percent we'll be back in a flash. so what we've got to do is identify the threats that we have it's crazy confronted ation let it be an arms race on all sides very dramatic development only closely i'm going to resist i don't see how that strategy will be successful very critical time time to sit down and talk. pranking gave americans a lot of new job opportunities i needed to come up here to make some money i
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could make twenty five thousand dollars as a teacher or i could make fifty thousand dollars a year trucks or chose to drive truck people who rushed to a small town in north dakota was among them climate rate of zero percent is like a gold rush it is very very similar to a gold rush but this beautiful story ended with pollution and devastation a lot of people have left here i don't know too many people here in. slowdown is much the last jobs that laid the american dream is changing and it's not what it used to be. it's a tough reality and the only. welcome back to players in the field of crypto currency is an online payment say they are partnering to push a new so-called stable coin option coin bess said they will partner with online
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payment platforms circle to list a u.s. dollar coin or u.s. d.c. on their online exchange calls us dca stable coins said by boosters to be different in key respects from other crypto is because it's pegged to a specific physical good in this case the u.s. dollar the two crypto players say the new currency is just one project which they hope will work to speed up development and integration of the crypto currency market in the financial sector. british manufacturer dyson which many would call from a yellow vacuum cleaners has announced their planned electric car factory will be built in singapore dyson specializes in motor designs as advertised in commercials for those facts cleaners their most favorite products of course but now dyson is planning to dramatically upgrade the horsepower of their designs to power electric cars that they say will roll off assembly lines as early as two thousand and twenty one dyson has said they plan to invest two billion pounds in the project including
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two hundred million for research and development within the united kingdom the dyson does not currently manufacture within the u.k. the company's choice to build their prestigious product abroad was still unwelcome at home as britons remain anxious about their bret's of process and highly uncertain of the outcome dyson has tripled their u.k. workforce in recent years to forty eight hundred and company officials flatly denied that bracks it impacted their decision to build a broad. the largest restaurant chain by revenue in the world is mcdonald's and they have reported earnings which have beaten expectations mcdonald's reports revenues of five point three billion dollars in the third quarter and individual store sales averaging two point five percent increase in the u.s. and four point four percent increase internationally that's averaging out to three point seven percent increase worldwide mcdonald's stocks rose on the news by more than six percent is trading around one hundred seventy seven dollars per share and
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sticking with mcdonald's we now consider burger nomics and take a longer look at the company around the world the economist magazine publishes something every year called the big mac index which seeks to measure purchasing power around the world based upon the price of you guessed it a big mac hamburger with the u.s. serving as the base it's a burn around since one nine hundred eighty six and at least theoretically the actual burger should cost the same since the cost of inputs should be roughly the same or similar across the world but currency rates are the obvious differential where so if a big cost a lot more in a certain country then the currency may be overvalued and if the burger cost less then the currency may be undervalued so looking at the big mac index which is an annual report issued by the economist as i said it shows the most expensive big macs are in countries which indicate a much higher currency valuation some would say over valuation of their currency the highest prices big macs are in switzerland and sweden and the least expensive
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big macs meaning the currency is undervalued are in egypt the ukraine russia malaysia and indonesia and tell us out on bergen nomics we bring in the c.e.o. of marco report which would argue correspondent alex by hail a bitch welcome to you both alex let's start with you in the western hemisphere and how are the big donald's restaurants looking in this part of the world are going to have more of a logical approach than when we. we're talking about business here like in north america mcdonald's has been in trouble for years or talk about the millennial basically here just turning their backs towards mcdonald's so you see those companies changing constantly changing up its menu moving towards a more mcafee type of idea here in canada you know there's a are there tim hortons chain and and mcdonald's have been going head to head selling coffee and mcdonald's has come out on top on a number of occasions being the biggest provider of coffee and then tim horton's back and forth tim hortons is a sort of a canadian institution hard to really knock out of the ballpark when you've got
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coffee and you're going against them but you know what's interesting though is if you look at this whole hemisphere is what does big donal's actually means of people so if there's an someplace like colombia hey it's a pretty high end dining you'll see families going to a mcdonald's all dressed up every once in a while it's not something they can afford to have every day so they'll do it maybe once a month or one twice a year once a year it's a big occasion for these people and you know that's the dynamics of mcdonald's also when we're talking about menus how dynamic the menus are when you go around the world and even in north america here on the east coast of north america we're talking about maybe even though the states that are in there in that area and then you move on up to nova scotia one big seller was the mc lobster now back in two thousand and seventeen was the last year here in nova scotia they had mccluster because lobster prices went up but listen make lobster sounds pretty delicious and also if you go down into mexico you'll have a different treats in colombia you have a breakfast combo that's called all of them a creole low and that you know this has different things in there that things that
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we would never see here in north america so mcdonald's adapts to its market is not always about the burger they're doing a good job obviously when you are talking about their stocks going up the way they are and just the value of the company but here in north america it's been a little bit of a troublesome region hopefully or i should say luckily globally it's been a very different game for them and hilary tell us briefly about mcdonald's in the u.k. and in the us it is not a different matter. is different of course around the globe i would say one of the most distinct differences and in england the u.k. is that the portion sizes tend to be smaller and there are healthier options they have had been nona's and pineapple for years and there's been served organic milk to children not chocolate milk organic milk which has not been available in the us something that's rather interesting though is that donald in england says english muffins and the english have never seen english muffins because they actually on to english so that's also rather taken rather humorously by the english and then also
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they have a lot more tea served in a lot of them mcdonald's so they do obviously like alex said they adapt to the countries in europe in norway actually there's been a t.v. program that has started a finding the best burger in the world and they have gone may chefs are out to produce those and they have some of those samplings in some of the norwegian branches but if you go to france or russia a lot of protests to try and stop mcdonald's coming in on particularly important is there was a zoning regulation by the local town hall that to try and stop the mcdonald's and also an island that's the second largest of corsica off the french coast are thirty miles west they actually want to bama donal's and they have t. shirts with a with a slash sign through it no burgers allowed so they don't want mcdonald's and that's that's quite prevalent in many places in france except for of course paris where mcdonald's is very popular i think what donald does well is to take a local taste and to tailor it to that market like they have done in the u.k. they've also done so in germany and they do so in the netherlands where they offer
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mayonnaise for their fries which not many other european countries have and alex i know in hong kong when i was there what first of all they don't even call the gunnels they call the golden arches but i remember instead of apple pies which we have here in the states i think they had corn fritters but the same in asia they're trying to add to the menu to local trains right. well it. is not only a purely to a local population the sort of food but a sense of having a distant need. so mcdonald's in asia if you've traveled to ration the past few years many of the mcdonald's have been rebranded completely to make cafes now mcafee is more of a again a coffee oriented place the coffee is the muffins etc but there's usually that the mcdonald's menu as well and when you go to these places these are meeting places for people in asia i know if you're in the philippines mcdonald's is one of those places that actually people meet in the morning to read their newspapers and talk over coffee about the latest in politics etc and in the philippines what's really interesting is that there are because of mcdonald's other companies have been
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inspired such as jolly b. with jollibee is also kind of a burger joints lives k. of c. type of thing but they're head to head with mcdonald's and they've actually come to canada that also there's a couple of jolly b. locations here so in that sphere of things yeah the donald has adapted things with like shrimp burgers in korea and spaghetti and and chicken in the philippines and they do in india there's a premier burger so instead of having beef which is completely not allowed at mcdonald's in india they have one which is cottage cheese or put here so mcdonald's has adapted and it means different things to different people it seems don't have time right now but i do want to get into fast food hopefully with you to again and obesity i mean it's sort of like the u.s. is exporting obesity not just mcdonald's i'm not saying that but that's a significant problem with fast food and we hope you guys will come back and join us again to talk about how the u.s. may be at least in part exporting obesity that's alex mahela that could help pay for tix thank you so much guys thank you pleasure.
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after several years of steady decline department store giant sears declared bankruptcy last week the once mighty iconic slice of americana is expected to close some one hundred forty sears and kmart stores by the end of twenty eighteen this is in addition to the forty five closures that have already been slated for november leaving fewer than five hundred stores. still in operation heck sears sold everything including actual kits to build homes they had about four hundred fifty different home designs to choose from in their big catalog and news today is that sears stock was delisted from trading on nasdaq when a stock trades at less than a dollar per day for thirty days it triggers the delisting so how did sears wind up here how is the bankruptcy being viewed and while the major pain is to be sure felt by a series of employees the closures also impact malls and shopping centers where the
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stores now stand and there's an international angle to hear talk more about it is conservative commentator steve malzberg steve thanks for being with us what is the impact of this country a company that started eight hundred ninety three but now seems to be going down and going down hard well you know it was psychotic as you mentioned i remember as a kid getting the sears catalog you have to understand sears was adam is on before there was amazon or an internet that catalog contained everything you could order watches you could order clothes you could order tires for your car you name it and you could get it sears so that's that that was the impact it was a slice of americana for sure and there are two schools of thought here made maybe more one is that it was not inevitable that it was serious fell victim to modern day capitalism for instance when eddie lampert it is the hedge fund merged kmart and sears and then and oh thirteen he took over as the c.e.o.
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people say some say that the quality went down management went down the product quality went down the stores were dirty the management couldn't get help in one department or they wouldn't go come over from another department and then they bought up they sold out of debt and made loans that they had fun and someone says benefited so the priorities changed and that's that's why the. many people attribute to the downfall and by the way to be first in line in bankruptcy court others say hey. celebrate sears no companies forever it's not too big to fail empires fail companies fail you go back to the dow jones original dow jones industrials twelve and eight hundred ninety six and none are still on there and only a few of the companies are left at all in any form so you have to look at it for what it was and that this was bound to happen especially when they didn't take advantage of the advent of the internet they fell behind at that point steve i want to put the two questions into one the first is we talked about these mall vacancies
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that will result from sears and secondly internationally addressed both of those ok some mall owners are going to do well with these bacon stores because sears was a big attraction they were able to get long leases that didn't go up in rent so they might be able to charge five times the rent they're getting out there in good locations bad locations malls that are struggling some smaller vendors have outs in their lease that says if a big vendor like sears goes we could go or you slash our rent so they could be in trouble to tale of two to malls kind of if you will and canada can sixty five years canada had sears now all gone bankrupt mexico it's. carlos slim he owns it all and they're flourishing they have seventy five stores built three new ones this year conservative t.v. and radio commentator steve. thank you see preaching your time my pleasure and that's it for this time you can catch boom bust on you tube dot com slash boom bust
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r.t. so long for now. join me every thursday on the alex simon shore and i'll be speaking to guest of the world of politics sports business i'm showbusiness i'll see you there. when lawmakers manufactured sentenced him to the public will. when the ruling classes protect themselves. with the financial
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merry go round me the one percent. that's not going to nor middle of the room see. any real news is really. running out of the blow to the burst out of georgia. to hide says it's a pain to perform i had to actually prepare myself to die. in our state. as most of. it was slow in home will stop her clown. this country was. really
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good so i don't see a. soul getting. it was any good where steve was just that yes scared did make sure that. the. toilet b.s. get. up. but. prosecution will need to be criminals and this should be false because all the take on where you. just read the finds can also buy the number one place you do i mean yeah i mean i've moved out political pressure on that god you've finally moving closer to security jenison knows where to put your kind of business models used by american corporations doubts of loss and conflict is sold on good mental disease has failed to use the controls yet i know what's more costly. the solution.
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alys up an association between. the new good he saw swindle as it is just me or deleted an investigative documentary. ghost war on oxy. to seventeen years of war in afghanistan the country is stuck in a vicious cycle of violence elections assassinations and reconciliation talks with the world around afghanistan changing the country be able to escape its bloody cycle.
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come. back. top stories here on our team international donald trump is slammed for the media and hostility off of the c.n.n. headquarters as well as a number of prominent us democrat politicians were seif packages containing crude explosive devices he just sent a ball into c.n.n. and the president doesn't say a word about that and then tells us we are to blame chemical giant monsanto faces accusations of aggress.


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