tv Boom Bust RT November 10, 2018 3:30am-4:01am EST
racing to get these goods to the u.s. warehouses and stay ahead of the future increases in u.s. tariffs from ten to thirty five percent on january one of next year the analyst also said they expect no progress much less any resolution at the upcoming meeting we've told you about between president trump and chinese president xi jinping and the g twenty in burra when a sari's instead they expressed hope that the meeting does not yield an overall setback to u.s. chinese trade relations. in other china news the american express company has become the first u.s. based credit card company to be granted permission to operate in china china central bank took ten years to approve the proposal from american express and only did so with a fifty fifty joint venture partnership split with a chinese firm the ling-ling group the partnership will operate as express technology services company the green light gives amex a head start over competitors
a master card and visa of course who are still seeking approval of similar proposals meanwhile authorities have given amex fifteen months to set up a network to clear payments with chinese financial and technical partners amex will need a second nod from officials to begin full operation. jumping back across the pacific back to amex his home country the us producer price index indicated october inflation at the highest monthly level since two thousand and twelve figures released today by the us labor department's bureau of labor to specifics or b.l.s. show an increase of point six percent for the month surpassing consensus expectations closer two point two percent officials at major russian oil and gas producers are reportedly taking a hard line with foreign oil companies over twenty one thousand pond tracks energy firms in russia the third and fourth largest are pressing foreign buyers to use euro zone for payment instead of u.s. dollars to avoid intel. lament in u.s.
sanctions that companies are also pressing their form customers to agree to pay penalties in the event further u.s. sanctions prevent the sales from occurring according to reuters news of the latest abaft of response to u.s. oil sanctions comes after similar sanctions against iran went into effect this week the effect of those sanctions is likely to increase pressure on outside of oil companies to make concessions to russian suppliers to secure supply. and speaking of oil we now shifted talk about some prices that have been decreasing by a lot lately and those are the oil prices they are officially in correction territory in midday trading today w t i was texas in or made media traded at the new york mercantile exchange was dancing around and sometimes importantly be low that all important sixty dollars per barrel level and the average u.s. gasoline prices two dollars and seventy five cents per gallon that's down five cents in the last week and sixteen cents in the past month that said per gallon
gasoline prices are still above this time last year which were at two dollars and fifty three cents per gallon and here to talk for oil the breaking pipeline news that more is robbie farmer simpler trading welcome raji happy friday let's first get to that keystone x.l. pipeline that a lot of us and thought maybe that was a done deal it was certainly controversial here in the united states but it appears a federal judge in montana has halted construction on the grounds that the u.s. government has not completed a full fledged environmental impact statements tell us more and what do you think it means. thanks for having me great to be here a lot of interesting things happening while as you mentioned we're seeing the relentless lower lows in this market so this this this this judge by this district attorney in montana i think when i look back and i step back both as someone who likes to look at the markets as a trader and an investor the bottom line is i think if we were still sitting at eighty dollars a barrel plus in crude oil this would probably be
a little bit more of a market mover but it simply isn't we're realizing now that we have plenty of production certainly the pipeline going from alberta to nebraska is a blow to trans canada we don't know really what the impact on jobs longer term would be the near term impact could be thousands of jobs that were hypothetically going to be turned into less than one hundred once that pipeline was done so i think what i look back on here is crude oil is heading downward and this probably isn't going to do a lot more than possibly be a near term distraction and certainly did not send crude a higher or lower based on that news i think we've got some other ships that have sailed that are much scarier for where crude is heading i want to get to that in just a minute but i want to stick just a little bit with trans canada i mean how important is this particular thing for them i mean ultimately i assume if there is an environmental impact statement done that it will go forward so maybe it's just
a temporary thing for the company what are your thoughts. this is been what i ten year way in c. project and you know obviously the current administration reversed a position of the previous administration but when i look back on just how long this project has been sitting on the back burner and we're talking about a decade so i just really feel that even those lawsuits were just twenty seventeen and for right now i think this judge has basically said until you complete this impact this environmental impact paperwork and this is the incomplete basically in their mind we're just going to put a pause and we'll see if the administration is going to appeal that decision ok so let's move to oil the the bigger picture and if we look at the longer term prices and go back to like two thousand and fourteen when they were at those not so highs we have still been headed south recently we have i think it's ten days in a row that we've had down days and that may be the longest losing streak since i think somebody told me in one nine hundred ninety four but it is this all about
iran is that why we see prices decreasing or there are too many other variables out there rob. i love the not so high mark because actually exactly what this market has been it's been absolutely not so and when we look at the way this market has dropped i think i could probably point a finger at the psychology behind what we're looking at six or seven weeks of consecutive build ups i think we're also looking at the equities market rollover being a pretty big impact on on crude oil and even though the equities markets rallied the first three four days of the previous week you know from a technical standpoint cruta has cropped prost over this all important two hundred period exponential moving average which she has is a technical level on one hand but there's definitely a psychology to that technical on the other hand i think that seeing how eight major countries got waivers for limited purchases but eight countries got waivers the sanctions just aren't perceived as having any teeth and there's still
a drop in production to about one point one million barrels but ultimately it's still very much in line with expectations and and the market simply wasn't jolted to the upside as as many thought it would be and we did see this relentless build up continue to plow through support in this market ok so this is going to be sort of a weird question and you i know you have lots of great answers for trading so don't don't if this is too tough and you don't have the answer no big deal but it's almost like monopoly that board game when you're near the end of the game and you're coming around and you get to where you're about to come up on those expensive park place properties and you get a you know get out of jail free card you don't have to go buy them that's sort of how i look at these sanctions with all the exemptions that came in at the end so i ran produced two point six million barrels per day back in april and the trumpet ministration it said they want that to be zero but then they did these exemptions
so how do you figure out what's going to go on in the future with iranian production. i think it really in production i love the motley boardgame because you're right you kind of feel like you're turning a corner but you're not and i think what we're not going to see is that iranian production is not probably going to slow to levels that we're going to see put them in a situation where the sanctions are really going to have any effect the output in other words their output is still fine they're exploiting though is definitely where we're seeing the drop in the meanwhile they're just going to shove that stuff stuff into storage i think that's what we're going to see india china korea japan we have taiwan and there's a list just a massive list of who really only has now limited access to that oil we'll see how long those waivers last and in the meanwhile i think around is going to keep their output pretty steady this they know that the exports are going to be lower very interesting we thank you so much for your insight it's so helpful rob do you want
to currencies and futures expert at simpler trading have a great weekend thank you my friend. time for our global market weekly roundup we start in moscow at the mo x m o x is down for the week in shanghai by the way shanghai composite index down it's down thirty percent through the year and that that exchange in shanghai no longer the number two valued market as it was before last week the number one valued market course in new york at new york stock exchange the nikkei average to twenty five in japan for the week in australia they s x one hundred index that's up moving over to india to the sensex up for the week even as by the way the airlines did better than expected we talk about those troubled airlines in india but they've done pretty well given or oil prices as of late and if we go down to south africa the south
africa all shares also down by the way gold has fallen by the most in four years based on september data that data is just out so left to be looking at gold related stocks in south africa will do that coming up next week and if we go up to europe the cac forty also down as is the german dax and moving over to the two u.k. to london the footsie is up but they're down by half a point on friday and the pounder is also weaker by the way on friday moving down to south america to the call caf in colombia down as is i believe best we've talked about that before with highball so narrow this election that's been the one outlier for the last month that market's been up but they're down there we told you the other day about how the president elect had opposed increase in funding for the judiciary and the senate in brazil has increased the pay and cost four billion
dollars next year and that pay increase that is the gauge for other public employee increases in br. zille so that could be one reason why we've seen brazil take a little bit of tumble this last week and moving up to the ts accent toronto they are up for the week although energy stocks by the way had a pretty poor week overall moving down to new york to the new york stock exchange and nasdaq both of these here up for the wake of all the s. and p. five hundred by the way snapped a three day winning streak today on friday that your weekly mobile market roundup but time now for a quick break a hang here because when we return eligible heiler bridge which brings us up to date on the large canadian aircraft maker bomba dear which appears to be in some terrible trouble plus our friend andre barlow is back to talk about and i trust was in the u.s. and european union and how they impact companies like google and facebook as we go to break here the daily numbers from new york at the closing bell we backing away.
in a world of big partisan. and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smart we need to stop slamming the door on the back and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks. ministry's police school says in the city administrations of many countries depend
on one corporation like well some people in the. he doesn't feel the presence of god i'm just the dumbest on the guns of the. woods as that's the the on into this it's just a lie from proprietary software you don't know the source code isn't that a such a security risk when you have a black box operating the public eye to microsoft dependency puts governments under a cyber threat and not only that. moment. this is still the only one of them will be almost the these two will do. things with the police and this is. done with the old vision stopping there was a sting of phone calls a fund is up and these cards and the sign.
up. not what. welcome back turning toward more awnings reports the walt disney corporation has released a real head turner for the third quarter disney beat q three expectations on earnings per share and revenue at one dollar forty eight cents per share at fourteen point three one billion dollars respectively that must have been some
disney magic because that revenue figure top predictions by nearly six. hundred million dollars disney shares rose by two percent on the news reports biggest surprises a fifty percent revenue increase in their movie studio unit buoyed by a string of movie hits including the sequel to the incredibles and black panther disney media networks unit also be revenue expectations while revenue from the theme parks and resorts unit was just below the mark. amos investor warren buffett's berkshire hathaway has made another market moving investment warren watchers are buzzing about mr buffett's latest publicity play the purchase known as a leavened percent stake in credit card payment processor stone co brazil reportedly brazil's fourth largest processor for three hundred forty million dollars berkshire hathaway made the purchase during stone co's initial public offering in late october it was released in s.c.c.
filings the investment in stone co complements birchers recent acquisition of a stake in indian payment processor we told you about pay t m. canadian plane and train maker bomba dear will be cutting five thousand jobs as its stock plummets the drop is the biggest the company has experienced in three years and some say this time things may be headed south for more we head north to our tease alex mahela vich who joins us from toronto alex bombardier seems to be taking some drastic measures what's going on with this company. well the stock dropped about twenty four percent yesterday climbed a little bit today the problems though the cash flow is a massive issue and also barb r.j. is in debt so when you put those two together the numbers don't look too good for that company now what do you do when you're in a problem like that well you cut jobs that's the first place people usually go five thousand jobs company wide are going to be cut twenty five hundred of those
bombards workers are in come back the next eighteen months are going to see these people get fired as well as six hundred here in ontario and two thousand more occurring overseas around the world we know this is a multinational company the company said it's going to sell to parts of its mass assets as well the q four hundred turboprop aircraft program that's going to give them about three hundred million and as well as they have a flight training business they're looking at getting around six hundred forty five million u.s. for that as well so a lot of money coming their way if they get to get these drop off these assets are hoping to cut cost by about two hundred fifty million annually as well now dropping the q four hundred program what that will do is that they can rejig towards their program which they think is their future and that's larger business aircraft so you know the private air airplanes that we see there are thinking go a little bit bigger a little bit more because you're and that's the market that they can get into now
the announcement was made and this is when you're looking at bombard over the years this is the past three years haven't been that great just look after that the mass layoffs three years ago fourteen thousand five hundred people around the world and this does not seem to be going in the right direction for them i'm not sure this is the correct recollection but didn't they get some government help a few years back when they had some problems did that happen and if so should they expect the same this time your recollection is absolutely correct and what we saw last time around. the quebec government putting a billion dollars into their investment into their c. series program as well as the feds here in canada they gave them a loan of three hundred and seventy two point five million it was an interest free loan so that they can get their business back on their feet but the deal with go back there was one particular part of that that was not fulfilled and that wasn't to lose jobs it was actually to gain six thousand jobs barbe r.j.
was not able to do that so i'm not quite sure of call back we'll go back and we comes to terrio you know maybe we have less workers here but we've been ripped off and hurt by barge as well especially here in the city of toronto street cars are built by bombard get this last summer out of the first sixty seven new street cars that they gave us actually have the first eighty nine sixty seven had to go back in for inferior frame weld so they're not doing a fantastic job here of the population you talk to people in canada bombarding a six i don't know how many people would actually cry about it this is not a too big to fail the situation as the government sometimes may think and when a company is putting an inferior products well hey you know what this is an economy just like the u.s. it's free and better people will come along the way bombard has to watch itself and it has to actually improve its production has improved everything that it's been
doing because we're still waiting for street cars here that were supposed to come ages ago and you know that doesn't only harm the general population of a city well as five million plus when you look at the surroundings of toronto but also harms business and it also harms our government for giving out loans and giving out cash to a company that doesn't seem to be going anywhere i love how you are so unvarnished in your coverage and thank you so much alex mahela big have a great weekend alex you to thank you. and check it we've got another earnings report we get to actually this time we look first to the beauty industry where red line has reported earnings per share of fourteen cents that's which is a gain from rather from last year when revlon was facing losses of thirty eight cents per share their stock got a slight bump on the news also reporting their q three earnings today is the car rental company hertz with nearly two point seven billion dollars in sales this
quarter that's a seven point two percent increase over year over year as you would expect the company's stock got a jolt on the news and shares climbed by more than sixteen percent. and turning to consumer protection news in the united states the justice department has charge swiss multinational bank u.b.s. with misleading investors on the risk of mortgage backed securities or m.b.a.'s before the burst of the housing bubble that precipitated the global financial crash and crisis of two thousand and eight the lawsuit claims that u.b.s. securitize more than forty one billion dollars and m.b.'s is in forty separate deals before the crash u.s. attorney richard donohue allege that investors who bought the talks that financial products from u.b.s. quote suffered catastrophic losses which not only caused direct harm to those investors but also contributed to the financial crisis the u.s. is taking
a look at you you laws and i trust laws do for size this comes after president drum commented earlier this week saying his administration is looking into antitrust violations from companies like facebook and google but can we us learn anything from the e.u. here discusses our friend and i trust lawyer andrew barlow thank you for being here andrea thanks for having me it's always great and i love you giving us the latest on this and today we're talking about and i trust globally and this is an issue that we were talking a little bit earlier that frankly my hat goes a little bit off here to president trump who has been sort of sounding the alarm not just about privacy but about and i trust on these issues so good for the president but can we actually the u.s. learn anything from the e.u. regulators in this regard i think we can and i and i agree with the president has been on top of this right from the very beginning when he started running his administration talking about and i trust concerns with big tech. but what can we
learn from from europe i think what we can learn from them is their experiences they've actually initiated investigations into a big tech companies such as google they've conducted investigations and they've actually impose fines of park. seven billion dollars in two different investigations of google whereas the us an atrocity agencies they haven't engaged in that same type investigation in over seven years or so so it's been a while since the us senator s. agencies have been engaged in investigations so i think they can learn from those experiences in terms of the law the law is a little bit different on both sides of the atlantic so i think it's going to be difficult to harmonize that where we're all on the same page on merger and forstmann and cartel enforcement but when we talk about unilateral conduct and that's what we're talking about with google facebook and amazon is you know how do we measure that and if you're a player explain that a little bit what is unilateral con unilateral conduct like like we know a collusion is right you know collusion is and cartel behavior and illegal merger
unilateral conduct is more about a firm taking a unilateral action an action on its own and whether that is and i comparative in the united states we look for evidence of. foreclosure foreclosure or do they take any action to exclude their competitors for closing their competitors from the market that is illegal in europe once they prove that a company such as google is a monopolist in the android market or in the search market well then that company google has a special duty they impose a special duty on a monopolist we don't have that same so a lot higher standard once you sort of have what you have a monopoly in the e.u. there's a higher bar and if you take some unilateral action you could be fined that's right and in the united states if you take a unilateral action you know. it really comes down to do you have the evidence to show for closure of arrivals or exclusion of arrivals for you so we could learn
that we could learn something but we might not harmonize that seems like not something we should learn but something we should implement do you think given these changes that we've seen you know the democrats now control the house do you see that you know this doesn't seem like a party. clipart is an issue to me do you think that provision we just talked about or other provisions with regard to and i trust or privacy might actually see some legislative solutions that's interesting because because maybe you could have some legislative solutions here but at the same time i think the u.s. senate seats are working on. learning more about big tech you know in september you had the department of justice brought in state a.g.'s and they all came in and they met with jeff sessions and make and over him the antitrust head and they talked about some of these issues with big tech and whether or not to open and i trust investigations and consumer protection investigations so they're working there and the federal trade commission is also in gauged in
a number of hearings that started in september and they're going on throughout the to the end of this year aimed at learning more about big tech and double sided markets remember these big tech companies are double sided markets we as consumers know google because of free google search free google apps free facebook free social media and amazon giving us access to a number of online retailers so but there's another angle there right they all have data and they have data that they can use to exclude their rivals and harm their rivals and that's that's where we're going to have to wait and see if we get some real investigations i know of no better antitrust attorney and barlow partner at doyle barlow and his art thank you and your being here. and before we go there is news on that story we told you about earlier in the week as venezuelan president nicolas maduro is trying to get physical gold back from some banks
including the bank of england well now news just breaking the banks have refused the bank of england specifically has refused to release five hundred fifty million dollars worth of gold to venezuela we'll keep you updated on that story and that's it for this time. thanks for being with us ever great weekend we'll see you next time. suitable to sleep for. my little for sunday and the syria. rolls going to say the boy understands what the must be so it. is needless for. a lot of fellow buffalo bust out all because i am.
ok cynic i know and that nobody else will look at them out on the funniest applause most home from the show such as the flu it's almost. noon neutral and you must. move. it's been seventy years since the united nations that don't did the universal declaration on human rights but in many places in for mainz a declaration and not a reality how to bridge the divide between practice and preaching.
in twenty forty you know bloody revolution to to crush the demonstrations going from being relatively peaceful political protests to be creasing the vile. revolution is always spontaneous or is it. the former ukrainian president recalls the events of twenty four. those who took part in this to do over five billion dollars to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. subscribe
to rep get in for just twelve euros fifty per month. more divisions emerge in the u.s. this time over a video involving c.n.n. reporter jim acosta some claim the material was doctored in order to justify the bombing of the journalist from the white house. trying to. posts a tweet in support of yemeni children at the u.n. warns tens of thousands die every year as a result of the saudi bombing campaign. also coming up on the program the syrian army rescues over a dozen hostages from the grip of this law makes state while the u.s. report reveals american aid money is ending up in the terrorists' pockets.