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tv   Boom Bust  RT  May 12, 2018 3:30am-4:00am EDT

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more than one way are cuban milledge chan explained some new and novel moves by one of the largest companies in the world and how our new sanctions being imposed by the trump administration on iran impacting oil prices and opec will last name a slum the chief market analyst at the markets will join us from london plus big pharma and prescription drug prices are in the news as president for the stuff this is just moments ago our tease ashley banks takes a closer look plus we take a look at the economies of the euro zone and the u.s. with the founder of money strong and healthy mark you know who will join us from dallas and kanye west and beyond so they are in business news but not for good reasons we'll explain lots to get to but first let's get some financial as. the world's biggest second best fund got even bigger this week three japanese mega banks have decided to join the vision fun led by the soft bank group mizuho bank reportedly will ante up on the level of tens of billions of years on wall m u f g
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bank and sue my tomo which is a bank also in japan will join with the automaker dime or chrysler oracle co-founder larry ellison and buy her rain sovereign wealth fund to invest in the vision fund and the new capital infusion will get the fun to its one hundred billion dollars goal the fun launch with seed money from saudi arabia state investment fund is a project of soft bank founder maybe shay osan who is now looking ahead to a vision fun to. tech giant apple has abandoned plans to build an eight hundred fifty million euro data center that was planned for western ireland this is the dead end of a long and winding road for the project which was first challenged in court in twenty fifteen but recently won what seemed to many to be a decisive court victory before the challenge was accepted for a hearing in the irish supreme court. apple reportedly feared that
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a court decision could result in elements of the case being referred to be european court of justice creating more challenges and delays so apple pulled the plug despite solid support for the project from the irish government but said the setback will not dampen their enthusiasm for future projects in ireland opponents of the project said that the environmental impact would have been severe in that it would have created six to eight percent in additional demand on the electrical system in the nation and despite apple's decision in ireland which would have been a boon for the western ireland area near galway apple still is making some impressive moves ortiz middle chan's explains us joins us to explain middle east so they are getting greener but not just in one way tell us yes absolutely that's right part apple is trying to go green in the environmental sense as well as trying to rake in more dough as you might imagine but now in the credit cards here so let's hop right to that let's first start with apple's attempt at cutting down their carbon footprint apple is investing ten million dollars in
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a venture designed to rid emissions and making the aluminum that goes into their i phones and i pads ten mil that's just a drop in the bucket for the cupertino based company who posted nearly fifty three billion dollars in earnings in the fourth quarter of twenty seventeen alone this green effort will be a joint venture between their aluminum producer alcoa and their mining and smelting company called rio tinto now that partnership with alcoa and rio tinto will be called alisa's and based adequate back now they're hoping to eventually go into future large scale production and commercialize they are a loon process without producing any greenhouse gases at all now this is just one more step that this nor cal company is making to eventually turn there and tire supply chain green just last month we saw apple announce that one hundred percent of its electricity came from renewable sources and that about two dozen of their suppliers have now made the commitment on becoming fully renewable them. so really
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cool stuff for the environment there and now onto a different partnership that i think many crunchy is an environmentalist probably won't be too thrilled about apple is joining goldman sachs to create a joint credit card yes apple is going into the debtor sphere the move comes as apple is shifting focus off their online services and into revenues while goldman sachs is seeking to increase their revenues from the consumer banking side now apple has yet to make a public comment on the joint venture but the apple branded credit card will probably be similar to say a cosco city card where card holders get five percent cash back or something similar to that making whenever they make apple purchases so they're hoping this card venture will encourage customers to buy more apple products and this apple credit card will likely replace the existing apple barclays rewards card partnership that has largely been a big flop so bart consumers can look for this new goldman sachs card to come out early next year which is kind of surprising to me because you would think that
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they'd kind of make a rush to the finish line for the holiday season of twenty eighteen but it looks like early next year they're certainly innovative and goldman has been looking to do something for a while i know i've got some of people that i know that are there and it does follow you mentioned in your explanation the city and cosco card city was really the first big large global investment bank to tend him up with the a large retailer and so i think they sort of paved the way for goldman here it was quite expensive actually for city to do that with costco at first but now they're glad they did and my guess is a year from now gold medal probably be glad to our g.'s military and thank you so much at it. will prices have reached a three and a half year high. both w.
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and brant trading in the seventy dollars per barrel range for the second week in a row of gained this week prices have buoyed by reduced oil production projections based upon the imposition of sanctions on iran but it's never as simple as what it might appear to be with global oil and here to help us sort out the current circumstances and look to the future we go to london in one am a slum the chief market analyst at think markets now welcome and thank you for being here and not even two weeks ago it was reported that the saudis were seeking to have oil at eighty dollars per barrel and yesterday bank of america merrill lynch predicted a price target of ninety dollars per barrel in brant by the second quarter of next year and even a risk of one hundred dollars per barrel sometime later in twenty nineteen what do you make of all this. first of all banks were hiring me when i was that it was these laws by you were predicting that oil would merit the dollar i mean that's the
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question that i would ask when i look at the positions like that i think the important factor here is that we are. in a minute supply from the global arena. because of the easy. gap because they are sitting on my privacy i do not see the case for the crew touching nine hundred daughter unless there is a major eruption of geopolitical can say. in the middle east then. the then guys that live in because if there is a war which by the way it looks like that's the way that we are heading to us because geopolitical tensions that take in a completely different then that eighty nine hundred forty dollars would be very much but just looking at it in the demonic way jim i need you not the case for on the dollar let's let's get into
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a little bit more and obviously you know if you see. missiles being continuing it rather to be launched an all out conflict you know we've already in syria have sort of a mini world war there but if things get out of hand even even more so we could see prices i'd agree with you one hundred percent but let's talk about iranian production a little bit. when we had the last sanctions that production was cut by about a million barrels a day as i recall but that was with the e.u. and others imposing sanctions so what should we expect from iranian production cuts to the sanctions this time name. i think there are two important aspects that i really wanted to touch and they're very key points a iran is well prepared this time this is no longer two thousand and thirty so they know how to deal with the same joints and how to go around it true as you correctly
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pointed out it's the was only the us which has backed out of the iranian nuclear deal and then putting those same genes in you is very much on board and we know of american that i mean porter meeting basement there are you get germany and the u.k. so these going to be very important meetings between the two parties so what we want to see is i think this is a lifetime opportunity and i published this report in the morning i think this is the live to try opportunity for the e.u. to show that they are bulk affable of salvage the deal which was always under the front administration to curb the iranian nuclear ambitions and at the same time just like we know their dollar has a very denominated presence in the tire wall especially when it comes of oil while
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countries like russia and europe other have already nodded to the fact that yes we could actually accept another alternative currency i love big coin just arrive and remember that a certain countries are often tries action but we sit at the central banks like other bigger countries like germany france u.k. they can go there ok we can start doing negotiations or we can cite except in another benchmark currency which is very quiet because big quite is an accepted bear but they can certainly can have that they can say look you're all can certainly be a bank smart yet rich and replace the dollar at all or trading had been done in europe they even got the same generic. it's out of that. name i was wondering if where if where you were headed was that you know the e.u. who and china and russia who want to keep the sanctions are the one to keep the nuclear agreement in place they could actually make further commitments to purchase
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oil from iran which would continue to entice the iranians i suppose and maybe we can the u.s. hand but that would be one strategy to consider but i want to go back because now that we've got sort of circumstances changing in the middle east back in two thousand and sixteen i wrote an opinion editorial about how the u.s. was such an increasingly large player as well as russia and russia continues to be in the u.s. of course that opec's influence on global oil prices would demonstrably diminish by even use that old eagle song lyric with all this whining crying and pitching a fit get over it get over it get over opec but my question to you is has opec regained some of its price power prowess due to their self-imposed cuts in the last year and a half and now due to sanctions do the trump sanctions actually help opec become stronger name opec doesn't have a can ok game both be on track if the u.s.
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you know reaches of the major trouble and remember that high oil prices are going to bring more production on the u.s. side because it's only right and russia trying to cut that supply nothing was meant from the u.s. side there for the dutch it is that all time high so that is the answer yeah and with with prices this high and my guess is that we will consider continued to see ramped up production in the u.s. and other places niamh islam we sure appreciate you being with us always delightful to speak with you the chief market analysis at think markets thanks for your time. thanks prime. time now for a quick break but stick around because when we return our choose ashley banks updates us on the big pharma circumstance with president trump is just finished discussing his plans not long ago in the rose garden last danielle de bark you know
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book the founder of money strong helped us take a look at the economies of the eurozone and the u.s. can't not for good reasons kanye west and beyond say are in business news we'll get to all of that as we go to break here the numbers at the closing bell the dow went up more than one hundred points today to complete a seven day rock that's it will be right back. the iran nuclear deal was one seen as a major achievement of american diplomacy but that's no longer the case donald trump's decision to pull out of the deal has reopened a major international problem and they have to analyze the trade and adverse stories confused how should the world perceive. the.
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united states can always had a tool to use and its tax on other countries. economic sanctions or are often just the beginning another thing you like to do is place some military pressure on the countries a talking about. and their past to be an effort to demonize that country and the leader of that country . as a responsibility for the. so we can make the arrest. as without us then.
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welcome back speaking in the white house rose garden not long ago u.s. president donald trump abandon a campaign promise to allow medicare to negotiate lower prices for prescription drugs mr trump's two thousand and sixteen campaign pledge was notable as a rare embrace of a proposal largely identified with democrats well there's bipartisan support details of the plan were unclear as we prepared to go to air but one proposal currently being considered is cutting out the role of pharmacy benefit managers or p.b. ems peter mayberg director of public citizen's access to medicines program said quote fundamentally the administration is not challenging the monopoly power of corporations and is passing on a historic opportunity to make medicines more affordable for everyone government analysts predict that prescription drug inflation will be six point three percent this year outpacing overall inflation and wage growth earlier this year
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a white house report found that seventy percent of corporate profits on generic drugs are made from u.s. consumers form. and for more on big pharma and the cost of prescription drugs let's hand over to our correspondent ashley banks president trump says that a pharmaceutical companies are getting away with murder however his proposed policies could possibly have major consequences for the rights of the world's worst drug prices in american history this comes amid rising trade tensions between the u.s. and key trading partners according to reports trump and his administration have blamed high u.s. drug prices on foreign countries a senior administration official says quote the u.s. tax. here through our publicly funded research efforts as well as through patients and consumers are largely paying for the vast majority of the our indeed that goes into the development of new biologics adding other countries take advantage of the u.s. and don't pay their fair share for the us and that's meant and medical research allez
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as our health and human services secretary says quote as part of president trump's bold plan to put american patients first ass is focused on solving a number of the problems that plague drug markets including foreign governments freewriting off of american investment and innovation as our says high drug prices can leave crucial medicines out of reach for a lot of people pharmaceutical health care companies are preparing for a string of new regulations designed to lower drug prices and the u.s. . during trump's presidential campaign in two thousand and sixteen he made the warring of drug prices a key issue so far trump's administration and the u.s. congress have failed to deliver any meaningful changes until now during a speech trump said we will have tougher negotiation more competition and much lower prices at the pharmacy counter and it will start to take effect
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very soon my administration has already taken significant steps to get drug prices under control we reformed the drug discount program for safety net hospitals to save senior citizens hundreds of millions of dollars. on drugs this year alone many believe trumps policies on trade its inhabitants transparency and intellectual property rights are advancing the drug and destroys the entrance over u.s. citizens however a senior administration official says quote we're talking about something different we're not calling for medicare negotiation and the ways democrats have called for adding new reforms to things like medicare will allow the government to secure a lower prices and reduce and center halves for doctors to prescribe high cost medications making prices more affordable for the every day american yet some experts say the tribe administration could possibly be creating a climate where the price of drugs rise affecting both the rich and poor countries
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across the globe and washington actually banks art. interest rates are making news this week in the black sea area where eastern europe meets western asia in romania the central bank voted unanimously to raise rates by twenty five basis points to tap down inflation the third increase this year the decision was criticized by the leader of the ruling social democrats who denied that fiscal policy was driving him and in turkey president aired one dramatically demanded that interest rates be lowered calling them quote the mother and father of all evil president aired one also wrote that turkey's enemies quote are hiding behind currency rate speculators the interest rate lobby or credit rating agencies the lira which has been booming fell to four point three to the dollar after his
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comments and hit a record low earlier this week turkey central bank raised rates last month to curb inflation and market watchers expect that another rate increase will be needed to support the lira and now here to. catch up and explain everything you need to know about economics and interest rates in the u.s. and in europe is danielle de martino booth the author of fed up and the founder of money strong danielle it's always great to see you thank you for being with us let's start with europe if that's ok how has the eurozone been doing so far this year. you know it's interesting bart i've been studying up on the euro zone i'm headed that way i'm giving a speech in brussels next week at the european parliament and things there are really slowing down and if you look at the situations in romania in turkey the political tender going on right now in italy where there is there are calls in
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stampedes and that the people want more fiscal stimulus that really does complicate matters for the economic policy makers for the eurozone overall i'll just throw a few a few statistics out there if you look at the aggregate your area we've seen retail sales come in in a contract in way for the first time in over one year for the first time since since march of two thousand and seventeen a separate gauge of investor confidence throughout the eurozone again in the aggregate show that confidence has fallen to a fifteen month low and you and i have spoken about this before the fact that the citi group. economic surprise index is over a two year low so it really really does complicate matters if you have inflation being stoked by fiscal policy at the same time that you've got negative interest rates throughout so much of europe and a slowing economy and there are a lot of cross currents and i do not envy mario draghi. you know it made me think
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there are there q one g.d.p. was just point four percent that's down from point seven q four and we saw this week also that the bank of england kept rates stable didn't didn't do anything and we look forward to hearing from you after you give your speech at the parliament that's a big deal and i hope you have fun i know you'll give them a lot of great information daniel let's head back to the u.s. or some reports today economist steve rattner put out some numbers and his case was that president. trump likes to tout that his economy is better than all others particularly likes to say it's better than president obama and mr ratner put up some numbers there about the jobs created and there were one hundred eighty three seven thousand jobs per month so far on average under the trumpet ministration and that if you look at the eight years of the obama administration it's two hundred
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one thousand when he was in charge and then the same on wage growth the average for president obama was point eight percent and trump it's point four now those are just two data points but he was trying to make the overall case that not so fast president trump on saying everything's great certainly markets haven't reflected anything negative what are your what's your reaction to that danielle. well i would actually have to say not so fast mr ratner. the data are the data and the reason that we've seen a slowdown between the two administrations is because we're running out of warm bodies look we had we had initial jobless claims on a weekly basis this past week coming at the lowest level since december one thousand nine hundred sixty nine i mean this is before i was even born bart and i'm not i'm no spring chicken so what we've had we've had job openings hit six point five five million this is by far we haven't seen these types of job opening numbers
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in years and yet you hear from small businesses you hear from big businesses they are lamenting the fact that they cannot find workers to fill these positions and i lay some of the blame for this because there are certainly people out there who would like to have more robust incomes bigger paychecks part but i lay some of the blame for this at the feet of the federal reserve of the united states which by the way everybody in europe wants to hear what the fed is doing next week but i lay some of this blame at the fed because if you keep interest rates at an artificially low level for the better part of ten years as an administration as a congress you're able to expand the size of the social safety net such that you end up making people dependent upon the government rather than forced to stay inside the labor force and that's why we have this conundrum today where we have tremendous demand for labor but an inability to fill the positions there's just a huge skilled labor gap in this country while you can't tease you know everybody's
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wondering about what the fed will do next week without me asking you about what you think the fed will do next week although as it might by my calculations it will be eight o'clock at night in brussels where you will be when the announcement comes out about two o'clock i think usually here on the next wednesday right so what do you think the fed will be doing danielle. well it's going to be interesting the minutes are going to be released at two pm eastern standard time and of course the main meeting that we'll be looking back on was what we call a lame duck meeting because there was no press conference that followed it so that all eyes will be on those minutes when they're released at eight o'clock i'll be paying attention obvious stepping away from dinner because we know that there's a lot of discussion and disagreement among members of the federal open market committee because they're trying to get their head around whether or not the inflation that has really started to hurt corporate profits it really is beginning
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to black and decker they came out yesterday tyson chicken these higher transportation costs are eating a lot of these companies alive so it's it will be interesting to see the feedback that of the discussion on inflation because that all keys off of whether or not we're going to see two or three more interest rate increases this year so i'll be stepping away from dinner in brussels part well we look forward to get hearing from you when you return or from over there whatever works for you danielle do more to know both the author of it up and the founder of money strong thank you as always for your time and safe travels. thank you appreciate that. and before we go music streaming service title has been accused of artificially inflating play counts in the region researchers reportedly found evidence of over three hundred twenty million false plays in total for beyond seas lemonade album and west life of pablo the false plays would tilt royalties toward beyond say and
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west at the expense of other title artists jay z. has touted title as an artist own service that would pay them fairly jay z's wife beyonce and west are all listed as title owners title reportedly paid sony a total of four point eight million dollars for streams of the albums in their first two months after release as kanye has said quote we came into a broken world and we're the cleanup crew seems like there may be some cleaning up to do at title the company denies any wrongdoing. and with that we're at a time thanks for watching be sure to catch a boom bust on you tube you took dot com slash boom bust archie enjoy the weekend. meet. her.
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ministry as police forces in the city administrations of many countries depend on one corporation and another by michael hoping the board doesn't implement the presence of god i'm stumped just adama's coming down to the. woods as f.t. that he got into the sea it's enough to supply britain proprietary software you don't know the source code isn't that a such a security risk when you have a black box operating in the public eye to microsoft's dependency puts governments under a cyber threat and not only that some to think office can put the same old. post office of the offensive zone selling missiles the little one woke the most vocal to moving to most of the wool didn't listen born to some of those the small things this is the arsenals of the host i'm done with the old business stopping them also
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still owns a fund is up and his cards on the fine. i've been saying the numbers mean something they matter to us is over one trillion dollars in debt more than ten white collar crimes happen each day. eighty five percent of global wealth you long to be ultra rich eight point six percent market saw thirty percent just last year some with four hundred to five hundred treat her stricken first shot and bitcoin rose to. one hundred thousand dollars. china's building two point one billion dollar. but don't let the numbers will be. the only number did you remember it was one you know for him it one can only be.
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a russian company charges parts of a trump russia collusion investigation pleads not guilty in court and made prosecutors' efforts to thinly the case. iraq goes to the polls in parliamentary elections but the vote has raised concern in washington as none of the candidates back its policy of countering iran. a top u.s. state department expert on nuclear proliferation resigns in the wake of trans withdrawal from the a wrong at nuclear deal rejecting the agreement has come under fire in america and in europe. and sweden comes on the public pressure for a new study into the link between immigration and crime despite fears it could.


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