tv Boom Bust RT December 19, 2018 1:30pm-2:01pm EST
join me every thursday on the alex i'm i'm sure and i'll be speaking to guest of the world of politics school. i'm sure i'll see you then. this is from basra casting around the world and covering the world of business and finance that may impact upon all of us you me the guy behind the tree everybody i fart joke in washington thank you so much for being on board we're glad to have you coming up to day we look at u.s. saudi relations with conservative commentator steve malzberg m.l.s. so our mo the c.e.o. of the stock look at stocks going into next year twenty nineteen that's coming up
but first we get some headlines with daniel britto let's go. to a major market moving address from chinese president xi jinping leads are global reports today the chinese leader defended his policies even as he avoided direct references to increasingly urgent questions about the future direction of chinese economic policy in the face of u.s. president donald trump's china trade crusade threats to china's major tech companies and multiple signs of a slowing domestic economy mr xi dressing communist leaders said the chinese economic success happened quote precisely because we've been here to the centralize and united leadership of the party the speech came on the fortieth anniversary of china's official reorientation towards state directed capitalism under the late chinese leader done shopping markets around the world reacted unfavorably to mistress she's speech today and in the region the a.s.x. shanghai composite hang sang and nikkei exchanges were all down sharply on the news
. british prime minister theresa may rejected the prospect of a second brics that referendum on monday pleading to the house of commons quote let us not break faith with the british people by trying to stage another referendum ms may warned that a second vote would quote do irreparable damage irreparable damage to the integrity of our politics ms may also set january fourteenth twenty nineteen as a date for a second attempt to put her bags and deal to a par. elementary vote the fact that ms may have to reject these supposedly outlandish idea of a revoke reflects her own plans vanishing prospects and her spokesperson now says the government is hastening preparations for a no deal scenario earlier today the u.k. defense secretary told parliament the troops will be on call to handle any possible public disruption following a no deal brock's it the original brock's a vote required three thirteen months of preparations seeming to rule out any vote
before march twenty ninth twenty nineteen by that date the u.k. must accept ms may's deal leave the european union without a deal or has may's deal leave the european union without a deal or cancel their original notification of intent to leave. weapons manufacturer general dynamics is threatening to pursue damage claims if canada cancels a arms deal totaling fifteen billion dollars canadian dollars with saudi arabia even as the saudi war in yemen threatens fourteen million people with famine on monday the company claim in a statement were candidates to unilaterally terminate the contract canada would incur billions of dollars in liability to general dynamics lances times canada the missile maker was responding to canadian prime minister justin trudeau who said on sunday he would try and see if he could cancel the deal mr trudeau had previously resisted pressure from human rights advocates to cancel the arms deal using general
dynamics as current argument about possible cancellation penalties. it's now been over two months of former saudi journalist john rocker's show the end of a saudi embassy in istanbul turkey and was kill you was murdered reportedly on orders of crown prince mohammed bin solomon of saudi arabia president trump says there is no hard proof that the prince. is personally involved but other world leaders disagree and the u.s. senate may force the president's hand to take some action senators from both sides of the aisle republicans and democrats alike were furious after receiving a briefing on that killing from cia director gina haskell back on december fourth here with morris conservative commentator steve malzberg steve thank you for being with us my pleasure good seeber so this is such a troubling story i mean because somebody is actually murdered and
a journalist we both are are a journalist and that's uncomforting but i'm just curious after this briefing in the senate where ms haskell finally appeared and first of all she didn't appear then she appeared even had people like lindsey graham. supposedly you know one of the president's best friends on capitol hill saying no i mean it's obvious what happened here what do you make of all of it yeah well here's what happened there were two briefings one for the entire senate and she was supposed the head of the cia was supposed to show up and she didn't so mike pompei of the secretary of state in madison defense secretary basically gave the president's version where they said there's no smoking gun we don't know for sure and a lot of the senators were upset and said where is the cia director well she met in the second meeting that you alluded to but only with about ten key influential senators and the other senators a ticked off that they were included and what she told was
a completely apparently different story because lindsey graham comes out and says all right there's no smoking gun but there's a smoking saw reference to the fact that he was probably caught up in his in his gruesome death and bob corker the head of the foreign relations committee also republican he made a statement saying that this is a no brainer that any jury would take thirty minutes and unanimously come back and find that the prince was involved so the intelligence they got from the cia director was much different than the meeting they had with the secretary did. fence and the secretary of state so that's that's the two meetings and that's why all the anger after the meeting with the cia director i mean we both know over each other comes off politically but quite frankly i've always thought even though i don't agree with a lot of lindsey graham's policies that that he's just a really amiable and level headed fellow tries to get things done for the good of the country and when he came out steve and said look if the democrats were in the white house and they did this we would say it was a ball and
a cover up but it's his own administration its own republican administration and it's not just some of the people that secretary of state pompei oh it's actually president trump himself and which just begs. credulity from the president on this why do you think he can't just say look this is a big deal and it appears that the evidence points to the crown prince but we have important economic relations and so we are going to take some efforts whatever they are. and we're not going to but we're not going to stand for the killing of people but we want to keep our economic relationship with the saudis open they're an important ally in the middle east why do you think he just doesn't do that well when he issued his written statement a couple of weeks ago and he said that maybe the prince was involved and maybe the prince wasn't involved so he kind of did that but he talked about good and evil and that let me say it's a world is
a dangerous place and he point painted iran as evil and i think that's a very important element here it's not only financial the military purchases of hardware that's the saudis make oil but he he led the letter with the relationship the military relationship we have with the saudis and basically to counterbalance what he called the evil of iran who are involved in funding terrorism all over the world they have their hands in yemen they have their hands and with hezbollah in lebanon etc so i think that's his main concern they fit into his foreign relations strategy. and he doesn't feel that they can afford to alienate them now he could very well have said what you said and still say but i don't think we should be doing anything rash because he we need them for the following reason so he could have prefaced it with what you said he didn't and now we'll see what the senate you know might or might not do and what they will do in congress so i wish you would have said exactly how you set it up to say like i said it you said it eloquently actually and because right now the sort of hit on the president is even more basic
it's that he's avoiding a human right here in favor of defense contractors which is not you describe that you really parsed it fairly well and when you talk about the military relationship with the saudis you know one of the things they could do is say. that the us is not going to have the role that we have been providing training and weapons in the fight in yemen which as you know the un now says it's the worst human catastrophe going on over there so it seems like there's all sorts of actions but i wonder with this conflict steve between the administration particularly the president and the senate lindsey graham bob corker and others although senator corker is leaving at the end of the year but whether or not the senate may ultimately not just in the next little bit of time but here going forward take a divergent view and actually force the administration's hand on taking a policy position opposed to what the administration would like to do i mean i
don't see that happening i mean they could pass they could pass bills and laws and . people in the senate now they're conflating the participation that we have with the defense contracts with the selling of weapons there that putting everything on the table and this senator says yes to that and no to that and i like that but i don't like that so i don't know if they'll ever get their act together there may be some kind of resolution binding or otherwise i find it hard to believe that they will take some. your reaction although we've sanctioned seventeen saudi individuals european nations have a travel ban some twenty some odd nations a travel ban on eighteen saudi individuals and they've cut off in the european union some arms sales to the saudis but again i just don't see any big policy change they'll be a lot talked about especially when the democrats take over the house but i don't see any real change and you know i even hate moving to this but i love my views be known on the economic relationship is important between the u.s.
and the south you're right sure oh absolutely i mean. for the oil i mean i know we produce more oil now and then we have and that any time in the past so it's not doesn't seem to be as important but it's very important and you know we're talking about purchasing hard military hardware and parts of their etc and planes from people like boeing and others and that's a big deal and if that goes away it does hurt people it was our jobs yeah those are jobs so it's a very important relationship it's a two way relationship it really is i wish the president all the luck you know threading that needle is tough but he has not got it right in the center yet steve malzberg conservative commentator thank you so much my pleasure. time now for a quick break but hang here because when we return daniel britto is a few more headlines and melissa arm of the see over the stock solution helps us take a look at stocks going into twenty nineteen as we go to break here the number is at the closing bell we'll be back in
a day with the big fleets own you get an idea why. we have to understand we can stay still and just. be witness the deal going. i'm doing this because i want them for the future world to future generations to have and enjoy the ocean we have. to. meet up with the principal emotions covering petitions is this a. medical doctor or a woman him to do his will need to like him so i try not to attach any party can the personal feelings maybe something had tickled objections i would have but in
politics history is a judge and history will judge who's presidency. in the future has been there with a victory for the nation and. that which was not. the u.s. senate struggling rebuke saudi arabia over. because shogi murder and calls for an end to the american involvement in the war on yemen is this the defining moment for this by lot of relationship will so-called values. political reality. that will venerable german automaker volkswagen is leading a chorus of european automakers who are pushing back on the european union's
updated plans for staving off the most disastrous effects of human caused climate change a master's from european union nations are expected to endorse the new greenhouse gas limits in brussels on wednesday the plans approved in forwarded by the european parliament would require new cars in two thousand and thirty to emit thirty seven point five percent less carbon dioxide both swag and had planned for a thirty percent reduction in that figure and says the new goals will require them to fast track production of electric vehicles and increase electric vehicle sales to forty percent of their total. french economy minister bruno the mayor says his government will begin collecting what has been dubbed a digital tax at the start of twenty nineteen the tax has also been called the g eight tax an acronym for the names of tech giants google apple facebook and amazon the french government expects the tax to reap about five hundred million euros in government revenue and mr lemaire announcement moves its implementation date
forward from the previously announced march twenty ninth team the government of french president emmanuel macron previously pushed for the tax to be applied across the european union. and speeding up france's plans to move ahead of other e.u. nations president macron seems eager to shed his image as a president of the rich and to shore french finances after rich recent promises made to so-called yellow. best protesters pushed projected french brands of budget deficits above the e.u.'s stated limit. and finally turning to the business of education and student debt the u.s. department of education says they will have to start over on a project to create a new software system to manage the payments of thirty five million borrowers saddled with one point three trillion dollars in student debt the cancellation came after seven companies vying for project bid said the department's chosen process quote improperly created an unlevel playing field. meanwhile britain's office of
national statistics or awareness has confirmed that major portions of that nation student debt burden will never be repaid the own us confirmed previous testimony to parliament that between forty and forty five percent of the current total of debt and interest cannot be paid by borrowers and should be written down as a loss the owner said this change would add twelve billion pounds of writing to government accounts for twenty eighteen. and we now move to talk about stocks and companies going forward into twenty nineteen to do so we are once again pleased to be joined by melissa armor the c.e.o. of the starks wish so great to be with you in person was signed i am going to say i'm happy holidays happy holidays so let's start with the one that's made so much progress in the last two years although this year's been a bit of a downer lately that's a tech sector what do you see going forward i know it's unfortunate because that
sector started out the year really with a bang i mean when you look at the fact that i am is on head up over two thousand and twenty fifty was a previous high it's nowhere near that today and even netflix had a great year to even apple head over new highs all of these companies look so great i would say facebook probably had the worst year even if you look back in february facebook just fall off a cliff early in the year and never looked back it was that cambridge analytical scandal was the thing that really and then it just it was like the energizer bunny right because more and more of them then in recent days they've been looking at it more memos that have been so great for mr zorra a lot of problems i think even more as more to come so when i take facebook down out of that sector when i look at the whole thing for performance of where it's going so it's sort of an outlier again because there's so many things we don't even know and so many scandals about but facebook's not going away i don't know but it doesn't mean that it's the one something that you would consider investing in right now or buying you know what i'm saying so if you're looking at something strong.
you say why i really want to get in the stock facebook technically speaking now is in a down trend apple is still in an uptrend amazon even though they've fallen off the highs still enough trying netflix is still in an uptrend so some of these companies even though they've dropped off and they're not near the highs they are still in uptrend so facebook is not technically speaking that is and talk about one more question on facebook thank you for your patience on this but you know they always say buy the dips right but when do you know the dip has died and it's going to go back up how do you know that with facebook but i don't buy that if that's that's what everybody else says ok what do you say by momentum by the gap when you get something called a gap now for those people who don't know what a gap is explain the gap is the difference between the close and the open the u.s. stock market closes at four o'clock eastern time and opens at nine thirty in the morning so there's post market trading and there's pre-market trading and buying when buying comes in a big way after hours or in the morning that's what you want to look for in a stock and that's where you want to buy into that momentum or you want to sell
into that momentum if something gaps down but in the case of facebook it would have to be just a massive gap up for me to ever be convinced that stocks that turn out i would definitely wouldn't buy any dip in anything right now the market's too uncertain going into two thousand and nineteen we're looking at all this volatility it's been happening in the last really the last couple of weeks this is like a fall and it's like a sign of what's going to happen in the two thousand one thousand two thousand and eighteen is going to be like a lamb compared to two thousand and one thousand for the volatility so get to it this is what it is and if you're a person that it gets scared when you look at your portfolio and see a fall or a drop off even in stocks that are strong then you need to kind of get your head straight about it before two thousand and nineteen because expect more of this to happen and we've spoken about it before a few weeks back about volatility particularly during this time of year when markets are thinner there's not as much liquidity because people are on vacation on holiday and so even some moves that might otherwise not move markets they can
really. move markets so keeping an eye on the vix at the cboe the fear gauge as they call it is something important to watch speaking of which one of the things which has moved the vix in the two thousand and eighteen has been this whole interest rate idea we've seen interest rates increased but let me ask you when we talk about things that are impact sectors housing is going to be a big one autos to some extent but housing is the main one right how do you look at housing starts going forward into twenty nine to one they may come back but with interest rates on the rise now people may be you know thinking that twice about purchasing a home right now not knowing where it's going now if you have on the horizon that you want to buy you might want to get in quick because you want to get in a lock in your rate before before the prices go up that being said housing stocks that some of them just reported recently in the last month and they haven't looked that great but they're being drug down by the market and everything else in the last two months so it's really hard to say that any of them are a buy right now but look for interest rates increase but still when you look at you
know if you want to go out and get a thirty year mortgage interest rates are still relatively lower than what they were even you know say thirty years ago you can still afford to go out and buy a home but they're going to go up i mean i'm not saying we're going to get to a percentage than for a thirty year fixed but it's not out of the woods i mean we could not it's not going down and that's what i mean yeah i mean it's more likely that the rates will go up to over seven or close to a six point seven five seven seven and a quarter that they would ever go back down to three and a half three point seven five again i remember you know a few years ago you could get a thirty year fixed rate mortgage for like three point seven five you know crazy crazy stuff let's shift and talk about both manufacturing and i'll put this together agriculture because they're both really impacted by a lot of the trade tensions that have been going on how do you think they're going to fare going forward in next year well specifically you know i mean it's just really all depends on what's going to happen with with everything but from the chinese president i just don't know if these things are going to get we see. within
this ninety day break of the interim period they still have tariffs on and it came out the other day peter navarro said oh we've taken in seven billion in tower of profits well that's a lot of money for the u.s. government to collect now everyone saying well yes but our consumers pain that when you go into a store think of it like this before you go in a store say you want to buy just a normal life that's not that big of a deal not a brand and so you want to go buy a light bulb so the light bulb costs ninety nine cents for a chinese made by paul but the american made light bulbs say a brand name that she would recognize maybe g.e. or something might cost a dollar ninety nine and you would normally sell them to get the ninety nine center it's a light bulb now that chinese light bulb by cost one seventy five i don't know exactly they're just starting out there as an example you say well i'm going to get the one that i know is a better one for twenty five more sense so what it's doing is that people are being forced now to pay more to buy american which obviously is what one of the things that trump ran on to support american workers but then consumers are paying for this extra thing so what is it going to get resolved chinese people truly believe
that americans can exist or afford to live without chinese products because they're so cheap so that's part of the reason why they're hanging on and they've made a lot of money as well selling things to us u.s. customers the matter what it's never going to equal if china continues to raise the tariffs and us raises a terrace it's never going to meet because obviously there is more on our side than there is when there are sides you know what i'm saying and i know exactly what you said my fact i'm smiling as you're talking about it because. i shouldn't to admit it but i was at a dollar store not too long ago and i bought some detergent that was really cheap looked like tide and then once we got home and we washed our clothes and started breaking out with rashes and saw that was from a country which i will not name so you know jews there is a distinction and there's a big difference here but if the price changes to your point melissa that really will make a difference in buying and i want to ask you generally and you've disagreed with me in the in the past and you may do it right now but i'm curious so i think the. a
lot of this the trade tensions were really going to start seeing that come up in the data when we see q one earnings reports that all the things for the holidays they were ordered back in may and june before a lot of these tariffs went into effect but when we get if we start seeing really negative or not good not as rosy earnings report you know in the beginning of the year after the first quarter rather i think that could really send markets on a downward spiral it's all overlapped so it's all overlap it's ninety days is coming your first quarter earnings season starts like towards the end of february and a big i mean end of january into beginning of february when all of these things the big names up all of these companies start to report in that period right in the first two months of the year so this is going to be an overlap one hundred percent so you know her could come in a hurry it could but again i'm still bullish long term in the market because i think the market's going to shake around
a lot so even though we've been down we're going to have green day still so overall are we going to is it going to look like we might fall and break that down and break into a down trend yes but are we going to do it no i don't think that with the market overall is going to go from an uptrend to with john trend unless we have some kind of world war which isn't without the realm of possibility something could happen like that i you know god forbid but other than that i'd say the market holds the uptrend could companies actual companies go into down trends like facebook could apple go from an upturn into a down trend with the batteries report yes it could so i don't know and that's one of the companies that's a big big watch right now because it is tied into china where they sell a lot of their products so. i don't know what's going to happen next year i think the market holds the up trend but with individual companies you may see some of these very strong companies drop off doesn't mean are going to drop off or the end of time it just means temporarily it could happen until all of these things get resolved which the longer this trying is on and the longer it seems like it's going
to take and that's one of the reasons the market has been selling off and taken a dive because it scared we thought things were all why i didn't but i mean the market did think things were resolved right after that summit and it had that big gap up but that didn't even last even twenty four hours that it was falling off a cliff it didn't saw a lot of volatility melissa are no c.e.o. of the stocks so interesting so insightful thing people are saying they could see it and all of that i think there. that's it for this time thanks for being on board we sure appreciate it you can get it boom bust on direct t.v. channel three twenty one dish network channel two eighty we're streaming twenty four seven at pluto t.v. that's a free t.v. channel one thirty two or as always hit us up at youtube dot com so i will bust our t.v. so long for now. imagine
. this is thirty five and you have a career and career involves using your eyes on your computer and things that have been in an office. perhaps you sort of things have it circulates you could have to stop doing all this and this is how you lose the minutes must be from my world became smaller and smaller and smaller until i ended up living it in a box. of very strong magnetic field on the field in my head. it's like a real hard pressure on my skin burned and that wireless access point here just continues on saying with our students in the schools. we are just continually bathing our citizens in this microwave radiation it is certainly electro small and it's getting worse.
so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race off and spearing dramatic development only personally i'm going to resist i don't see how that strategy will be successful very critical time to sit down and talk. what is the pin that's going to pop the global bubble back in two thousand and eight it was a two thousand a subprime crisis. today i think we can safely say that the bubble popped but the collapse of. the all.