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tv   Boom Bust  RT  August 24, 2017 1:29pm-2:01pm EDT

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adverse to the impact of his close loss of life in egypt this is a bold robel situation. i linsey francis is broadcasting around the world from washington d.c. knights wall street reacts to president trump claims that the government will shut down unless it builds that wall between the united states and mexico adding to it is his statement about scrapping now also the time warner mega merger faces pushback in brazil we've got details on that also it's been a wild a year for airlines from talk of privatizing air traffic control to major airline customer service problems how is the industry holding up and what changes could we see as the summer travel season winds down my gas ways and standby starts right now
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. in a speech tuesday night in phoenix arizona president donald trump said something that wall street felt this morning take a listen you know the obstruction is democrats would like us not to do it but believe me we have to close down our government we're building a wall. after those words hit the airwaves the value of the mexican peso debt against the us dollar a dollar was worth seventeen sixty eight pesos and closing stocks had some gains on tuesday then sunk on wednesday across almost every industry however it must be said that they didn't compare to dip so we have seen in recent weeks investors of course
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as you might guess scrambles for safer ground in treasury bonds and gold also turning to trade with mexico and canada the president asserted in his speech that the north america free trade agreement would probably end up terminated by the u.s. . and a week into nafta negotiations it seems that the people at the negotiating table are unfazed by president trump's remarks about scrapping the plan. joins us now from toronto with more alex what exactly did the president's what did he say to actually stir the pot about the nafta negotiations the let's expand on that before we get to the actual reaction. well as you saw the president was speaking to the converted already so he was just basically saying what he's been saying over and over again and we're still over now if there's all this is what was the told that he held before he became president the tone kind of dissipated over the past few months and now i guess maybe it was kicking steve bennett out of the white house i
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don't know what it is but he's become a little bit braver and his words have returned at least in some respects to what he was saying before but what you want to listen to me let's hear from the president himself. personally i don't think we can make a deal because we have been so badly taken advantage of they have made such great deals both of the countries but in particular mexico that i don't think we could make a deal so i think we'll end up probably terminating nafta at some point. probably i told you for the first day we will renegotiate nafta or we will terminate nafta i personally don't think you can make a deal without it terminate you but we're going to see what happens ok you're in you're in good hands i can tell you. in good hands and that's what the president's goal but it seems but again as i mentioned preaching to the converted here he's talking to an audience in phoenix arizona that are you you know trump stores to the
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degree and then that's basically that's basically it i mean the guy was speaking to his audience and when it comes down to it we've seen trump flip flop in the past and i think this is one of those situations again but also he's expounding on something it's a long of fame that he has he has said the talks are going on and so it's sending a message but maybe they were nonplussed how are canada and mexico reacting to this prat. both canada and mexico expected this it was just a question of time when was it going to happen you know it's hard ball the go shooting everybody looks at you know if you look at as businessman these are tactics used in the past said the same thing about nafta a couple of times over so when it comes to mexico and canada they're like oh well this came a little bit sooner than expected but we did expect to hear this at one point in the process of the nafta negotiations now let's really get realistic about this let's bring up a graph and why trump has to think twice about something like this these are the
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annual export growth under nafta now exports are on par between canada and the u.s. and mexico seems to be the big winner here but let's remember what mexico is mexico is the pure poorest of the three countries obviously labor's poorer day and they're sending more exports up our way to the u.s. and to canada especially now when you look at that we're helping these guys out we knew going in so now who we're dealing with the u.s. knew who they're dealing with so from that respect this is just something that we again are looking at as a negotiation tactic because really stepping out of nafta totally well you know what point to even to trump wants to step out of nafta totally the u.s. and canada and mexico are prepared for that they have heard this type of right they were rhetoric and if something was to happen yeah the waves would be felt but we saw what happened today after the speech of with donald trump yesterday in phoenix that lutie the canadian dollar didn't budge and mexico yes the peso was hit a little bit because it is the poorer of the three economies but in the long run
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with mexico really suffer if nafta disappeared maybe it would go through some bumps but whatever happens to nafta supp they would have to come along to replace it but as for now it just seems to be a lot of talk you talk that isn't hot air god for bad from our president thank you very much alex and i live and having us from toronto. the merger deal worth eighty five point four billion die. dollars between eighty and teen time warner may have hit a snag in brazil is one of the world's largest telecoms and time warner owns warner brothers h.b.o. c.n.n. just to name a few and a sticking point to remember eighty also holds a ninety three percent stake in sky brazil after it took over direct t.v. in brazil that could run afoul of a law prohibiting pay t.v. providers from owning programming content sixteen countries have so far offered regulatory approval for this merger to lay brazil at the us are still holding on
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that reports have surfaced of the department of justice calling into question what this possible merger could mean for negotiations over access to customer data which telecoms routinely sell to one another. last week minutes of the fed's july meetings were released and we all learned that the fed itself isn't sure on how and when to raise rates one side is worried about our current low inflation environment while the other half is worried about what happens if they continue to delay joining me to discuss gerald slanty founder of the trends research institute thanks for joining me on this now which do you think we should concern ourselves with the low inflation of the delays. depends on who i was sells is so if i was sells the law the gamble is that the markets they don't want higher rates so they can keep gambling borrowing cheap money all
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those stock buybacks merger and acquisition activity even though it's slumped down a bit still high on the other side of the yeah was selves is it's a war against the savers we have no place to put our money once upon a time you put your money to the bank and got a thing called interest so now even afraid to go up just a little bit it's really not going to affect us that much in terms that i'm giving us more but our credit card debt our household debt which is at record highs that starts going up so we're really in a catch twenty two situation here but the low interest rates overall have only helped generate growth in the equity markets and hurt the every day person it's a war on the savers yeah you're right especially with student loans coming in second and household that now let's take a look at this chart we see that since two thousand and nine the dow jones
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industrial average has risen from a low point below eight thousand to this year where it peaked at twenty two thousand indicates obviously this recovery since the financial crisis are there any indications that the fed's concern on how to proceed with a rate hike could effect this anytime soon. yes they don't know what to do just like they don't know what to do it on why during unwinding that four point five trillion dollars worth of debt that they have they're really if again if interest rates go up too high the markets crash and there's been no global recall no recovery of any sorts for the average person because again lindsey just look at the facts median household income right now is below one thousand nine hundred ninety nine levels twenty people in america as they all this wealth grew they own. as much dough is half the nation's population and then you look at all the jobs that have been created on the obama since two thousand and nine according to the harvard
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princeton study ninety four percent of them a chance for every job so they're really in a catch twenty two here because if the markets go down this whole thing goes down ok well former senior official to u.k. treasury has said that the quantitative easing policies that the central banks have undertaken since the two thousand and eight financial crisis has been like heroin for the economy do you think that with companies currently depending on central banks to cheap money for things like stock buybacks and mergers and acquisitions that it's an accurate statement or is it just hyperbole. well go back a year ago watch two thousand and sixteen you had the dallas share richard deficient former fed chair saying that the rally was driven by quote coach k. and jack nothing. everybody knows about this what's going on but they don't teach you this in economics one o one there's never been
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a thing called negative interest rates zero interest rate policy and quantitative easing they've made all this stuff up and in all it's done the facts are there of boosting the equity markets and they don't know what they're doing don't believe me go back and aspect bernanke it back in two thousand and five if there was going to be a housing bubble and he said no go back to two thousand and seven when the markets are ready to on fold ben said no we're going to see growth in two thousand and eight that will mirror two thousand and seven they don't know what they're doing well just real quick the argument has been made that the fed should acknowledge that there is weakness in the current job market which a lot of people say it hasn't done and that we should keep rates low until there's a clear sign of wage and price increases set of just assuming that low unemployment will lead us to higher inflation so what's your take on that well they're not going to see it unless wages go up the reason we have low inflation it's
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a supply and demand issue again all the money's gone to the top so the average person doesn't have money to spend on a lot of different things that's why you see low inflation it's supply and demand and all the supply of the equity is gone to the top with the middle shrinking down and people having less and spend but we will see how these this indecision plays out in the fed's next meeting coming up in september thank you so much for em put on this gerald celente founder of the trends research institute. time after a quick break stick around though when we get back to euro zone business manufacturing is. exceeding expectations and the airline industry has been shaken with scandal in two thousand and seventeen by gas and i take a look at where it might go from here as we go to break check out the numbers at the closing bell.
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on the idea that dropping bombs brings. more explosive new to the battle. to do socks for the tell you that will be gossip and probably worth. of advertising telling you are not cool enough to buy their product. along the border. what is it when the swiss national bank the central bank and other central banks on behalf of governments are now the biggest owners of stocks when japan is the biggest holder of exchange traded funds that's called nationalization that's socialism and combined with the central bank of poland bureau that is fixing the price of money it's not a free money market for money and combined with purchases of open houses and
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nationalizing those assets that's pretty good communism that's nationalism that's why this isn't just global economy is shrinking because the social banks amount to what danny blanchflower power says they're not operating in ways to stow free markets. and book a queer little place called the gay police a key to keep. the us there. was a lot to. get in we were going to commit there were feared and i think. the last one for the whole saga of such was when did one of the joyful for the what he
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said i feel we should i should think almost as you pull thank you for such. a big gun. hoover faces accusations of stealing trade secrets that duped government regulators along with numerous claims of sexual harassment and massive driver complaints mistreatment wall street has now reacted for mutual funds have marked down stakes in the right hailing company by as much as fifteen percent after more than
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a dozen leadership exits from the company this year has named a new vice president of leadership and strategy shoes francis frey associate dean at harvard business school she admits it was a leadership vacuum is unusual she also points to the fact that the company grew a standing way fast and oversight just did not keep up but things will change in her leadership now this comes as we wait for the board announcement of a new c.e.o. those close to the situation now say that the top three c.e.o. contenders all male include general electric chairman jeff i'm old as for the drivers who were is now offering an app tipping and the ability to opt out of pick ups without having their rating affected. it's been a wild year for airlines we've had president trump announce a plan to privatized air traffic control and major airlines are scrambling to up their customer service game after the david dow incident the list goes on from there let's take a look at how this has affected the industry and how it might be able to shrug off
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the bad attention not to mention the bad practices please welcome gary left chairman and c.e.o. of miles and points consulting and founder of view from the wing dot com thank you very much for talking with me today and overall how the airline's been doing are they holding strong are we seeing a slight slump. well you know the airlines are remaining quite profitable there in the first half of the year the u.s. airlines are and nearly eight billion dollars in profits that's down from where it was two years ago primarily driven a difference in fuel prices they really didn't see a whole lot of dips from the scandals in the spring. well let's look at some of the . aftermath shall we collett of the david dow and so then it does seem that airlines have now had to rethink how they thought passenger is a big issue for a lot of flyers and if you look at this graph we see that in the first six months of two thousand and seventeen we've seen fewer bombs passengers since that apartment transportation began tracking those numbers and ninety's how the airlines
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learned their lesson or is it too early to tell if there had been any real changes . so the first piece of context that's important is that there's been a long run trend of fewer involuntarily denied boarding as over the last forty years or less have gotten better at this even at their worst than the statistics that you're looking at showing between you know one one hundredth of a percent or one one thousandth of a percent of passengers being involuntarily denied boarding so it's very rare it did become a problem a flashpoint in the spring with the david dow incident the south west stopped overbooking united adopted a ten point plan to reduce their problems and they certainly have reduced them further but that's the general long term direction that they've been going in i think it's a little bit too early to tell whether behaviors are going to be meaningfully different as a result of those incidents especially because passengers have been booked away however it's also worth remembering that even airlines that don't overbook their flights still do and voluntarily deny passengers one of the airlines that doesn't
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the most is jet blue they've since their inception haven't overbooked passengers but instead find that occasionally they have to substitute smaller aircraft on a given flight and then they have just too many passengers in the seats so it still happens and will continue to happen just increasingly rarely cable that's something the customer still feel as as being bond or something that people may overlook is the fact that airlines do also make a pretty sizable income off of those for awards programs they are now about to get are not to two point five cents per mile and they've racked in billions over the years but some are saying that these frequent. higher miles are actually becoming worthless as an expert on airline miles an airline rewards what's your take on that . so the programs are not becoming worthless they are however becoming worth less which is to say that as airlines have been generally whole flights just are not they don't spend nearly as much to fill incremental seats they're not as rewarding
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passengers who are flying and in fact now a majority of miles are and for things done other than flying such as through credit cards those are the prime drivers of the profits of the programs each of the largest three programs are earning in excess of two billion dollars a year revenue from their credit card cobra and feels the banks are paying them for miles that they have been awarded customers are responding them on credit cards and these programs have better than fifty percent profit margins that however is likely to erode as there is increasingly competition for credit card customers from the banks themselves more engaged in creative destruction so american express has their delta deal but their own platinum card is seeing a greater investment than ever before chase with their sapphire reserve card of seeing greater investment competing against their own united credit card and you're with more investment than ever from the banks the airlines are going to have to increase the route the rewarding nature of their programs in order to retain these customers because they've been awarding fewer miles for flying and they've been
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charging more miles for those rewards seats it's just not been as lucrative a value proposition as in the past at a time when they're seeing more competition than ever you can see how that turns into a real sticky situation for the consumer as at the end of the day it's the consumer that really matters and what drives airlines to make these rewards programs more appealing as you said so how can the average joe who's just started in the in the rewards program fear how can you take advantage of these for awards and save some money it's very confusing and they want to get a leg up on these airlines how do you even approach that and from mrs martin angle . well so remembering that fewer than half of miles or even are in from blowing i would say that the most important thing for somebody just getting started is not to choose an airline on the basis of the miles that you're going to earn but definitely sign up for the program when you do flying an airline and you want to track your miles i use a free website called award wallet dot com to track mine one click updates my
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account so i can track all my passwords keep everything in one place and they'd also help me learn when miles are going to expire or to keep that from happening as well over time you're going to accumulate enough points for free trips so the idea is don't spend more money chasing the points but make sure you do pick up the points that you're able to earn along the way without extra cost keeping us airlines on their toes thank you very much for that ariel have chairman and c.e.o. of miles and points consulting and founder of view from the wing dot com. thank you . august saw a stable euro zone business growth on the back of the best business manufacturing performance and six and a half years it's considered a good indicator of overall economic growth as measured by the flash euro zone composite purchasing managers index it edged up slightly to fifty five point eight in august this is up from fifty five point seven beating a previous estimate of fifty five point five anything above fifty is an expansion
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now analysts point to cheap oil prices and even a weaker euro for these numbers it's also increased expectations that the european central bank will move forward with the scaled back of its multi-billion euro monthly asset purchases the p.m.i. strong manufacturing growth in germany and france surge particularly above expectations as well the euro sounds largest economies there. after the u.k. voted to leave many e.u. member nations moved quickly on plans to make themselves attractive to businesses fear. those bricks it implications that includes isto neo which saw an increase in its eve residency program allowing people all over the world to become digital residents and now the baltic nation is taking it a step further. it's here with more on that for us now what is tony are proposing now well because of the success they had with their digital residency program the
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government of dystonia is now proposing a government backed crypto currency so we can see estonia create their very own point essentially in a quest to keep the digital momentum going a stony and may create its own digital currency and if it happens stonier would be the first country to do so in a blog post casper choragus who runs the country's didn't see a program wrote as coins could be managed by the republic of a stoney but. my apologies for interrupting our regular programming we do so though to bring you some news just in from the united states police in charleston south carolina who said that there is an active shooter situation in a restaurant located in a popular tourist and commercial part of the city there is now in lockdown the authorities are urging people to stay away from parts of charleston and we will go
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to a correspondent to get updates on the story very shortly in the meantime u.s. backed iraqi forces are making fresh gains in their advance on useful positions that in the city of tal afar the heavy fighting in the area has already seen thousands of civilians displaced say that they're forced to flee both coalition bombs and the threat of terrorism. we ran from the shelling from we left and the people from islamic state along. with. our children a sick we're stranded here without saying that there is no fresh water anymore some of the aid workers have been here but very few of them this is my son he is
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suffering we have no electricity. and telephone is the latest objectivity in the u.s. bank war on islamic states it comes after the recapture of mosul. campaign that left much of the city in ruins of the operation to liberate which has been on deisel control for three years as a little to ease the suffering of civilians as the explains. downtown mosul or what's left of it and now is drawing west. side out flaw the new ground zero in iraq and that huge a rocky army backed by u.s. led coalition air power is facing off against isis which has been entrenched for three years and brute sides are throwing everything they've got. trapped in the middle of thousands of videos who think there's a stark choice still risk being killed in
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a coalition air strike while being used as human shields by isis or make a run for it. you aren't in the crossfire but you do make it through the desert the most in this heat. isn't an easy choice. we are hungry we need clothes we need food and water yesterday we get contaminated water even the animals one drink it we're living in terrible conditions the u.n. fears disobedience travel. deadly danger and the suffering that the jewels are getting out of thought of far you get the relief from ice it may be the first step there's plenty of all particles to go if you travel throughout iraq it's very heavily militarized. numerous checkpoints on magic transport routes to get through those checkpoints you need documentation if you don't have this or if you have the
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wrong kind of documentation you are prevented from moving further on the people who fled to understand it being prevented from going into east mosul and settling then and also coming into the could. bill and other places and could astound way that displacement camps on top of all of that there's a sense of paranoia here imagine. you're a soldier manning the checkpoint and you see one hundred people approaching you how are you going to tell the real refugees from isis infiltrators or indeed suicide bombers who are just trying to get close to their vest so the security precautions are absolutely necessary but they don't make the lives of refugees and the easier the operation to liberate has only just begun but we can hope it doesn't than like this like mosul city in ruins thousands dead more missing and buried
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under the rubble and with nobody to hold accountable. those operations to liberate telephone intensifies many have spotty striking similarities with the mosul campaign that left thousands dead indeed both cities where i still strongly holds you see spy us bank coalition forces just like telefon now thousands of millions were trapped inside mosul and bombs or those trying to flee caught in the crossfire and those remaining no access to monetary and aid with food water and basic necessities running out quickly you spoke to me from the red cross who says tell of far may will face the devastation witnessed in mosul. until christians have been moving forward of course we see that there are a lot of others have been of course that he. needs similar to what the. french love food water is that he's the man who was going to get along and the people who are leading the careers
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of the men you know when. ninety one being shot. kids get an update on the breaking news story this hour concerns an event in charleston south carolina where police and said that is an active shooter situation in a restaurant there it's located in a popular tourist and commercial part of the city the area now down in florida is as you people to stay away from part of the city let's go across now to the mayor a call there you go boy from ation on this what can you tell those yes well police are reportedly responding to an active shooter in downtown charleston south carolina charleston police told residents to avoid the four hundred block of king people area via twitter as they blocked roads to motorists and pedestrians due to
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an active shooter emergency responders including a swat team swarmed the downtown restaurant where the shooter reportedly entered locked himself in and told patrons he was the new king of charleston and this is just coming in the mayor said that. disgruntled run a restaurant employee shoots one holds hostages in charleston south carolina i mean this is it just a developing story but now we're getting more and more information as time goes on . local businesses were evacuated and the charleston school of law campus was put on lockdown as responders work to resolve the situation. were also called to a possible shooting on king street just after noon local time. and. yeah and this is obviously a developing story.


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