tv Boom Bust RT April 17, 2018 11:30pm-12:00am EDT
investigation that some members of congress see as sinclair tries to buy tribune media collins cook host of the big picture here in our city america gives us his learned take on the media all that ahead but first let's get to some headlines. it is tax day and the supreme court is hearing arguments about if states should be allowed to collect taxes from online purchases states cannot currently require online retailers like amazon for example to collect and then return those taxes to states from residents who order them online unless the retailer does have a physical presence in the state in question the case south dakota versus wayfair incorporated is expected to be decided by the supreme in june. according to the wall street journal the demand for lithium what has been referred to as white petroleum since it's so valuable is gaining rekindled traction in europe particularly in germany and the czech republic where there are still areas to be
mined as opposed to australia and south america where it is said that chinese companies have already secured rights to the large majority of mining areas lithium with it with it's very light weight is used in batteries for everything from phones to electric vehicles according to a report in two thousand and by two thousand and twenty five the lithium ion battery market will be worth more than ninety billion dollars. and earlier this month reported that serve martin sorrell the c.e.o. of giant advertising and p.r. firm w p p was being internally investigated for misuse of company funds as a result of concerns of the w p p board well now serve martin is resigning and two long time p.p. executives mark reed an andrew scott will fill his shoes the investigation is not yet complete answer martin continues tonight any wrongdoing also of notes or martin does not have a no compete cause in his arrangement with w p p so at least theoretically he could
start a competitive advertising and public relations firm. and joining us to talk about market moves of bank profits as the c.e.o. of straw mark or which hillary thanks for being with us there's been so much going on in markets in recent days that the trade stuff the conflict in the middle east what do you make of all that how's it impacting markets well as they say if we could have the headlines held at bay it would get the bulls out to play all right so we talked about before and thanks for having me again we talked about volatility will be volatility breeds volatility so what we need is some stability for business however that this is wild people are busy investing people are busy looking at the long term so i would say the market is like the weather is going to come and go and
it's going to change day to day but what's important at the underpinnings the underpinnings are fundamentally good and that bodes well for a business by those well for your audience well for all of us let's talk about a little bit of those fundamentals look specifically move to the banking sector in the last several days we've seen some banking profits j p wells and citi group how did they do well on friday we saw actually the order profits were up i think it wells up by that six the same. and you know what's important about that and for all of us to pay attention to every single person you might say well those are the banks not me it is off you know itself because the bank profitability in anything to do with banks is a precursor to performance the economic performance so how the banks there is a good predictor of the performance of the overall economy so they're up looks like we're going to be up you know with particular regard to wells i i hate that i've had to do this but you know watch them for years as a regulator and then yeah in these recent trouble so my you my usual lead it is bad
boy bank wells fargo i hope they get out of some of this mess but is there any good news on the horizon for them hilary i think so i think it looks like they're settling such a settling you know it's better to have it over and done with you know settle with regulators it's past we keep saying that and there's like another i don't know how many shoes can drop with wells fargo they paid such they played such an important role actually in the history of our country you know they did they got that iconic stage yes right across the midwest yeah that they really did i mean they wells fargo were from san francisco when they started banking and they built up these towns and it's just a shame to see what they've gone through don't get me wrong it's their own doing but i just hope they get back on on on track. real soon now let's go and talk about you mentioned we talk about volatility talk about bank profits one of the interesting things when you dig a little bit deeper and i know you have also into the earnings report is they
didn't actually make as much money from their loans but they did make some money on trading explain that to our viewers what will banks make money on phrases kind of like with your accountant the same as taxes we just finished our tax season and so when your accountant needs to do something like a stockbroker needs to do something that means they're going to make money they make money on every trade so it's the same with the banking industry volatility actually for them is good the more times they need to adjust an account your account the more they need to work on something that course of. helps profits same thing for trading exchanges actually i mean they make money on transactions so if when people are buying and selling because there's market moves they're actually doing pretty well so exchanges do not rely on the markets being up or down i mean that's good for the economy a good first start but it's not necessarily that it's good for the exchanges either way and to some extent it's good for banks either way because of these transaction fees as you talk of volatility is good for the banking industry it just might be i think the bulls come out to play in terms of the stock in the confidence in the
economy when things are more stable and that's the way business looks at everything to my clients global clients they want stability when you're looking to invest you're looking to hire it's the same thing as an individual if you're going to take out a bank loan you're going to buy a new house what do you want you to have a job if you don't have a job if you want to show you're going to lose if you're going to lose your job you don't make the same investments so investments and also risk risk is a big issue people are more likely to take greater risks and them eggo more profit for the banks if they sense stability and they know how they can project and plan right and i should give short shrift to the other economics of bank profitability because one of the things that impacts those loans and therefore their profitability of course is interest rates we're seeing interest rates great for them right because what one that i have and thus they get more money comes in or later at higher interest where they can charge higher interest rates also because at that point you know going to shop around as much you've got a deal you want to do you have an investment you want to make you're not going to be as picky as interest rate you got to make a lot of money and then you'll pass high interest rate and or whatever we all
bought houses back in the eighty's unfortunately some of us that are already you know was thirteen percent you know absolutely able to get a better remember that and for homeowners who are seeing these interest rate increases the reserve expecting to maybe three more one of them are saying i'm going to want to do a deal now before we go that puts pressure and makes people act you right two hundred twenty percent ahead of the now before we go i want to talk you mentioned tax day to day the last. people can file not the fifty the set the seventeenth and for the good things that the president has done and how many there's a few and one of them where the tax cuts we can argue about where they want and how much they are is not crumbs two thousand dollars are not crowds not to homes to average folks would it would last longer they're not going to the business tax well that's not the tactical that's ten years that's right however will these gains from the tax benefit that individuals have been getting are those going to be done away with by higher prices from these tariff tantrums when people go to walmart or buy
cars or i think that people are talking about the tough talk trends it's very interesting to think about this spot because you know the chinese as we know you know they were twenty five percent we've actually been in people like to say we've been in a trade war for twenty years no we haven't we've just been the one that is being penalized and we accepted it so finally we want parity with just one party so in terms of trade wars and tariffs if it becomes fairer remember this with regard to true in the in the tiny chinese they have a lot of investment in the u.s. they invest and import a lot of pork so they bought smithfield and the fact that they bought smithfield there's a lot of companies they now own and they've invested here and then not going to want to have them penalize so i think it's more huffing and puffing and worries and tom's of the we need to i think the terrorists are going to be close at a party that will be good for everybody in the u.s. and actually good for the global economy but i hope it works out you know we've noticed in the last several days that the president's task larry kudlow in the u.s.
trade representative robert like hisor with trying to reenter the training camp in a partnership i never thought they should have left that thing but it was a big campaign move by a statement by the president to get out of that thing but i think it's good to get in so good for the president more power to larry kudlow an ambassador or a light hisor hillary for which c.e.o. of straw mark thank you as always for beyond salumi any time thank you. and once again we can't. get away from the tax they should five percent appear too small be thankful they don't take it all how dated are those lyrics we'd love to have five percent right now right guys r.t. correspondent ashley banks give us some tax related numbers that might surprise you she reports from the internal revenue service headquarters here in washington. at the time of year again where your taxes are due and i.r.s. office like the one behind me will determine how much money you get back or if you're not so lucky how much will oh if you're filing your taxes today you are not
alone statistics show most people file their taxes within two weeks of the don't like for those who aren't able to meet the deadline they asked for an extended debt line which will allow them to file throughout the year according to the i.r.s. one in ten tax filers get a six month extension that's about fourteen million americans who don't meet the schedule deadline the good news is there's a grease period the bad news is if you take the six month a grace period it won't only delay any refund you have coming your way but if you owe taxes it won't exempt you from having to pay them today every year the i.r.s. process is about one hundred fifty two million individual returns the company expects about one hundred fifty five million returns to be filed this year federal income taxes are the main source of revenue for the federal government however some americans don't have taxable federal income because they are either unemployed
students or foreign government employees but those who do have taxable federal income must file their taxes to make it easier more and more people are filing their taxes from the comfort of their own home using sites like turbo tax h. and r block and tax act usually these sites are free for customers up until april first saving people hundreds even thousands of dollars which would be spent getting assistant. for those who prefer to consult a tax professional experts warn tax fraud is becoming a bigger issue and cyber criminals are targeting tax professionals who are filing on a behalf of individual tax payers experts say cyber criminals are able to obtain private information of clients and can use the ip address and the computer belonging to the tax professional and order to file tax returns with the i.r.s. cashing in for billions of dollars according to reports just last year i.b.m.
security says cyber criminals net four hundred forty five billion dollars from tax fraud so in filing your taxes make sure your cues a tax service that will protect your information for the to avoid being scammed and washington lastly banks art. we're going to squeeze in a quick break but before we do here's a quiz question for you when was the first u.s. government income tax imposed on individuals was it is seventeen seventy six eighteen sixty one or nineteen thirty four while the outro we go back. about your sudden passing i phone leatrice learnt your yourself and taken your last turn. your act caught up to you as we all knew it would i tell you i'm sorry i
could so i write these last words in hopes to put to rest these things that i never got off my chest. i remember when we first met my life turned on each parent. but then my feeling started to change you talked about more like it was again still some marshawn to view those that didn't like to question our arc and i secretly promised to never be like. it's one does not leave the funeral the same as one enters the mind it's consumed with this one to. speak you never know what they're trying. to play games that mainstream media has not make. for a world cup twenty eight team coverage when you've signed one of the greatest goalkeepers of all the time but there was one more question by the way i was going to be your coach. guys i know you on the us he's
a huge star among us and the huge amount of pressure you have to the center of the problem here with you and we will go through all the great game the great game you are the rock at the back nobody gets past you we need you to get the ball going let's go. a low as i want and i'm really happy to join the team for the two thousand and fifteen world cup in russia. the special one come on south appreciate me just to say to redo the aussie team's latest edition to make it up as we go so i need to just say look. welcome back our quiz question is when was the first u.s. government income tax imposed on individuals was it seven hundred seventy six eight hundred sixty one or nine hundred thirty four and the answer is in order to assist
paying for the civil war effort congress congress imposed the first personal income tax in eight hundred sixty one incidentally a year later congress approved the revenue act of eight hundred sixty two instituting a three percent tax on incomes above six hundred dollars which rose to five percent for incomes above ten thousand dollars. and the cows godfather. gambling is retiring at the long age of ninety six stanley ho who is credited with bringing gambling to the chinese territory is stepping down as c.e.o. of s. j.m. holdings in june macau the largest casino gambling jurisdiction on the planet which years ago surpassed las vegas and gambling rez produce brings in more than thirteen billion dollars each year there are currently thirty three macau casinos including of the nishan m.g.m. and when casinos and other casino related news we don't often have casino related
news but billionaire investor carl icahn is selling the tropicana entertainment casino group for roughly one point eight five billion dollars the deal calls for gaming and leisure properties to take over tropicana real estate while eldorado resorts absorb the gaming in hotel operations mr icahn is assisted in renovations of tropicana since he became an investor back in two thousand and eight tropicana own that operates eight casinos and resorts not only in las vegas and at lenox city but in indiana louisiana missouri mississippi and in aruba. the proportion of young adults who don't leave their family nest has steadily increased in recent decades and accelerated after the two thousand and eight financial crisis across education levels race gender and region no group has been immune from the trend to researchers think that twenty somethings are boomeranging back home because in contrast to previous generations that this stage of their lives they are less
likely to have a well paying job and less likely to be married it turns out that no job and no partner makes living with your parents a lot more appealing although perhaps not for the parents. general motors company will cut fifteen hundred jobs in ohio eliminating a shift from their lordstown plant where workers assemble chevy cruze cars the compact sedan the move comes as all. makers including g.m. and ford are effort ing to rebalance their in inventories to be able to keep up with demand for more sports utility vehicles and pick up trucks the sales for which is increased due to lower gasoline prices the current average nationwide price for a gallon of regular gasoline is two dollars and seventy cents which is actually up eighteen cents from one month ago. as a trumpet ministration up the rhetoric on trade and tariffs president paying of china announced that they would be willing to lower auto tariffs at least that's
what they said but is this an olive branch gesture or anything genuine behind it or is it just another reason china is offering a concession hitter to discuss is the car coach lauren fix lauren what do you make of paying this statement about the tariffs. well i think china has said this before you know if you lower yours will lower ours if you raise yours will raise ours i think the truth is the fact that it may just have to be a statement in the air because the truth is if i'm going to charge you twenty five percent and you're going to charge me twenty five percent then just zero it because it just offsets each other which is really what it should be it opens up trade for the whole world and i think that be a smarter choice because if we start adding tariffs cars get more expensive for us going the other way they just won't buy our cars so we have to figure out some way to make it work for everybody you know ford and general motors have these joint venture factories over in china and i'm not sure exactly how those work or what's required but they just seem like they're odd duck can you explain them to us sure
a lot of manufacturers have joint ventures including b.m.w. and audi volkswagen a lot of lot of brands what they're typically doing this is what they same project they offer tesla is will own twenty five percent of your company now the words they get a piece of the control of your company you're not functioning a business within their basically communist country so because the rules are different you follow the rules or don't do business with them. well i guess they've got the upper hand in that deal i want to ask you also about shifting gears to ford they're building a new premium they're using lincoln over there in china making a new vehicles five new vehicles by twenty twenty two i would have thought that lincoln would be real popular in china but does that mean what do you think lincoln's very popular in china it's a sign of success i've spoken with some executives there and they have told me that the reason they sell these vehicles it's because of the service that goes with it
they take away all the pain when you do then this is really interesting when you drive around the corner they can track your license plate know that you're coming in and they know that mr or mrs so and so is a ride they have a cup of tea waiting for you there are no used cars in their country so and they don't do the same type of service and. maintenance that we do they pick up the vehicle they maintain it they return it so that really ultimate customer service is really what it's all about cadillacs doing the same thing and that's why those two brands sell so well in china those that have money are buying american cars it's a sign of success oh that's really interesting had no idea wealth of information lauren one other thing we see that they're closing some chevy plants that are building the cruise and the rationale with at least what was reported is that they're going to that to meet up with demand for s.u.v.s as it is they put it in how people are looking at as i can have the same exact can deal call that drives the same as all the same accessories or it could have the same thing with more space would want more space the price is about the same it's
a safer vehicle so people are not that one safer and one's not but in the eyes of the consumer it is and so that's why s.u.v.s and crossovers are hot and sedans and sadly just are not and finally lauren what about tesla must seems to have become involved in a big spat with the national transportation safety board not a good idea in my view to get into fights with regulators what's that all about it's about one of the self driving the s.u.v. that had an accident and killed the driver or the operator right the operator was behind the wheel of a model x. which is the rescue v he was in the pro in the auto pilot mode which which is not so actually it's not time in this mode but it is sold as such and people get that impression by its name it hit a bridge abutment or a i'm sorry it hit a center media and the driver passed away so tussles been blaming the driver or the
n.t.s.b. the national traffic safety board's a hold on just a minute you can't be putting that information out to consumers without us doing our investigation so why they're in the middle of the investigation typically and manufacturers involved but in this case they told them you're not involved anymore because you're put. out this information until we have an actual answer that's not very smart to go against regulators because they can really make it painful for you that they can and you know tesla is going to want something their future whether or not it's from n.t.s.b. or somebody else we covered a lot of ground in a big hurry the car coach lauren fix thanks as always for joining us and into. the u.s. federal communications commission is will not investigate sinclair broadcast group or distorting news coverage even after the urging to do so by prominent u.s. senator maria cantwell and eleven other senators including bernie sanders the letter was sent after it was revealed and we reported it here on boom bust that
sinclair news anchors that two hundred plus stations around the united states read identical scripts warning viewers about fake news meanwhile sinclair is in discussions to purchase tribune media for a reported three point nine billion dollars and here discuss all of it our media expert and a host of artes the big picture with holland cook holland cook of all people go of all people thank you for being here are you surprised i mean the the f.c.c. has the ability to investigate and grant licenses eccentric but are you surprised that they didn't take these senators request and go ahead and investigate sinclair the f.c.c. is very loath to regulate content but they're very strict when it comes to making sure people know what kind of content they're watching and in december they find sinclair thirteen point three million dollars for running seventeen
hundred promos actually commercials disguised as news stories because sponsor identification is supposed to make it clear what's news and what's a commercial and they fail that matz. find could have been eighty two million which is not small change that would have been three percent of sinclair's annual revenue so it's a slap on the wrist but that's where the f.c.c. gets into it now it makes me think when you say say that remember the whole i'm trying to remember the name of the law but it was the essentially the equal time the vision of the fairness doctrine the fairness doctrine a lot of people people don't know about it is centrally said you've got to give the other side of an argument this happened a lot in politics but the fairness of the fairness doctrine or whatever what that's gone now right got tossed out during the reagan years around the time talk radio came about and the internet was yonder and the promise of the fairness doctrine was
in olden times when there might have been three or four t.v. stations and one or two newspapers that very few voices provided us our information well now we've got the internet and all of that so it is no longer necessary to regulate equal time because if you don't like what this channel saying that channel saying the opposite got it i still like that i still think there is to be equal sides on some things i get the first amendment but i remember with some melancholy that then i sort of liked it. but the f.c.c. the f.c.c. while they have not chosen to investigate sinclair there are some members of congress who want to different investigation of the actual chair of the f.c.c. what's that about well and it's going forward there are two democratic members of congress frank pallone from new jersey and elijah cummings from maryland who want chairman pai investigated apropos this sinclair tribune merger because they're wondering if the recent regulation he has pushed through is tailor made for this
merger and i'll try not to get into the weeds with this but there were two aspects they're concerned with what was called the newspaper cross ownership should they relax the rules to let a t.v. station and. the newspaper b. cohen did in one town again the argument that with the internet and all that there are many voices and maybe that's an arcane rule curiously the chairman also took away what was called the u.h.f. discount and in olden times when v.h.f. was the big brother t.v. station and we fumbled with the tuner on u.h.f. the f.c.c. allowed a station owner to count us stations as a less than one for purpose of meeting the maximum number they were allowed to own well since the digital transition most of t.v. is moved to us chef so it's really moot but this favors sinclair and tribune merging because they're going to get that keep more stations they've got one hundred ninety three now they're going to be well over two hundred and the f.c.c.
commissioner job is the most lucrative revolving door in washington you do your seven years there and you get picked up on k. street or by one of the big telcos mr paey himself was a verizon lawyer before he's kicked out net neutrality who knows where he will retire. it happens all too often in the swamp i guess although it's some how things keep working here on before we go let me ask you about that merger a little bit whether or not and it is like we know that the whole time warner deal this is something that the tribune and the sinclair merger would really be something before the department of justice the and i trust division on whether or not they would be too big what's going to happen with that again this is something f.c.c. chairman applied to net neutrality he says get the f.c.c. out of the business of regulating the internet because the federal trade commission
will sit up straight if somebody gets too big we'll see. colin cook coast of the big picture and media expert in-house media expert thank you my friend always good commish for shit. that's all for now thanks for watching be sure to catch boom bust on you tube you tube dot com slash boom bust catch you next time.
it is going it alone because it's a world leading country will make trade deals left and right because we got a dramatic fashion capacity develop at a factory every week because we're a great britain. full of clothes so it says so. i mean i love it. but. i don't know the full. tone of the film called. for. a u.n. security mission enters the syrian town of duma
a day before chemical weapons experts start their probe into it and. edged attack. members of the european parliament voiced their anger over the bombing of syria as french president emmanuel might call gives his speech. understands row over the alleged chemical attack in syria that led to the strikes british media outlets frowned on academics who question the government's claims. the latest on these stories head to our to call at the top of the hour rory sushi will be here with a full news bulletin on that next it's the kaiser report finding out what a free trade deal with the u.s. could mean a post written.