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tv   Boom Bust  RT  March 7, 2019 8:30am-9:00am EST

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endorsement for china's belton road initiative leads our global report today as the italian government considers becoming the first g seven nation to join and risking angering the united states italy's deputy industry minister michel garage confirmed ongoing negotiations for italian inclusion in the belgian road initiative or the b r i as it's known the top reported earlier at a point where it's feasible that initial framework could be signed when president xi jinping of china visits italy on the twenty second and twenty third of this month and a caution that there is no commitment yet to sign the draft memorandum of understanding a spokesman for the white house disparaged the b r i telling the financial times of london quote we view b r i as a made by china for china initiative it only is recession seems to be pushing the government to seek greater economic ties with china overriding any concerns about alienating the u.s. or its european allies. as we all know the trumpet ministration is
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a bark on a trade fight with china right as well as agitating u.s. allies in europe canada and even mexico with the goal of improving the balance of trade but the united states is now officially reached the largest get this the largest annual trade dif deficit ever the latest report comes from the u.s. commerce department today measures the overall u.s. trade deficit with the rest of the world for twenty eight hundred at six hundred twenty one billion dollars that figure also is up twelve percent from the total for twenty seventeen setting aside services the u.s. trade deficit in goods actually measures an eight hundred ninety one billion dollars a ten percent annual increase the yearly trend seems to be building by the month in december the monthly trade deficit number just for the sixteenth was sixty billion dollars that's a nineteen percent increase from november notably the u.s. trade deficit with both china and the european union grew to roughly four hundred twenty billion and one hundred seventy billion die. hours respectively. and
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speaking of those trade fights the organization for economic cooperation and development where the o.e.c.d. has lowered its growth forecast for twenty nineteen once again citing those trade conflicts as well as the ongoing brecht that bungle as factors the o.e.c.d. s interim outlook now forecast global regrowth for this year at three point three percent and twenty twenty growth it three point four percent analysts there shave point two percent and point one percent from both figures and their forecast from last november more dramatically germany's twenty nine thousand growth forecast was have halved down to the point seven percent from november's prediction of one point six percent we now want to talk trade in light of the two new reports which show the impact of the trump administration's trade tariffs are hitting consumers more than any other sector and any other entity here are discussed we're pleased to be joined by the c.e.o. mark hillary for which an arctic correspondent alex mahela bitch welcome to both of
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you alex i'd like to start with you and of these two studies are pretty interesting and they both come out interestingly with that headline that i read there about the largest trade deficit ever alex tell us about the two studies. of art i don't think you're to be surprised by the study as i will ignore those studies as i was not here let me tell you the two organizations we're talking about that would be the center for economic policy research and the national science foundation grant was a group that was working under this grant including a woman by the name a penny goldberg you might know her name she's a chief economist at the world bank so you have a lot of very influential process involved in all this and they've come down with a bottom line here the bottom line is the american the average american has been paying for these tariffs in the church to the tune of sixty nine billion dollars so really when you break it down there's your trickle down all the way to the average american so we're talking about these terrorist two hundred fifty billion you know against china plus tariffs against canada and mexico and japan those are mostly
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dealing with aluminum aluminum and steel so all these tears when it comes down to it i mean there was a breaking up of supply chain because we know that a lot of the lumen of the steel specially like i'm talking from canada so we know our steel goes to their heads to the states to build cars etc companies get hurt if they have to pay for these tariffs so there's been exemptions here as well but still you're looking at the sort of the bigger picture in the winter and all this who else but the united states federal government they get about thirty nine billion dollars of pure cash from these tariffs and who do they get it from once again the american consumer now hillary let's alex mention steel coming coming in so that's one thing but i mean what are the products that are costing consumers more well and you mentioned cost and they consume a small obviously that's absolutely right but the american consumer it's costing all because americans consume spending law that's because the dollar is so strong against other currencies and also of course with high disposable income
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a lot of this is through the actually so the colliding of a tariff not only towers but also the tax cuts that the average american consumer has more in their pocket and consumer confidence is up. and so they're spending more so that's all actually very positive news but in terms of the specific products it's electronics such as televisions toys and mainly b.t.o. games and also a lot of furniture that's also again the economy is booming and of course the american consumer is putting off the american consumer is doing very well with consumer consumer confidence high and if if one does not want to spend more on terrorism one can spend less but know the american to sing with feeling very confident and then maybe washing machines too right hillary and cars i guess i read a figure about cars being bugs more but i mean yes and here's a you're making a check you got a job in your income is way off that actually isn't as bad i think one thing a positive consequence on a positive thing impact is going to be that of course all the nations that have
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raised these that our us they are the ones that are responding to trump with the long term goal of course of the administration that eventually other nations whose economies are hurting far more than ours are going to have to eventually then import either us more u.s. goods or the lower that our if that's the long term goal and this is the first administration and many many years that it's put their foot down with power it's just some goalball of power thirty to some degree and i think we should take a long term perspective also and look back historically the second world war with the marshall plan of course we did rebuild europe and we did want europe to do well and these towns were set many many years ago now the issue is let's get some global parity and i take your point hilary i'm actually really pleased to hear them you get them but i mean there is a point here and alex i want you to respond to this too where you know i mean i'm almost tired of winning where you got the largest trade deficit ever you know i'm
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tired of making america great again again if what it means is that we have these huge trade deficit you are so right hilary to point out the other parts of the economy you don't want to lose that but the idea initially. alex said not my words i mean proposed by the president the foreign companies were going to pay for these things how come that's not happening. we're talking about parity here's parity four years ago the prices of things of goods have gone up in the states that u.s. manufacturers of steel cost more or some other products cost more their product at the end has to cost more and what foreign manufacturers do will they raise their prices at the same time that's one of the facets the other facet hey it's a big world out there you know it's not just the united states of america so a lot of countries are just switching over to different markets why stick to the united states of the united states says it doesn't want you and third of all you have to look sort of from a global perspective as well what the trumpet ministration is doing and there are literally hundreds of companies and especially when you come to down to steel and aluminum aluminum that have been they don't have to be they're not there they're
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not actually subject to there's these tariffs and that again comes back to supply chain i mean trump couldn't disrupt the whole supply chain specially when you have parts and materials needed in the united states that come in from other countries do you think there's countries that are just as i should say companies that are just out there that are affected by this at all so there you go three times around ding ding ding hey guys we've only got like thirty seconds so i want to get a one word answer do we think we're going to get a deal with china by the end of the month alex you first. yes politically speaking they have to hillary what do you think i think the reason is because the chinese economy is hot hurting fall more than we are not she of course. is also also really off all of his minions to pay attention this face full of civil unrest festival of civil unrest so i think they're going to have to concede on tasks and don't forget the impact we're talking about in
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a twenty one trillion dollar economy it's actually somewhat negligible yeah good point but what's said to us is we'll keep you on the record at hillary for what you announced mileage thank you both guys that was fun thank you. thank you. and there's big news coming out of the discount retail sector today as family dollar has announced that it will close just shy of four hundred stores this comes as the company is looking to shake up its fortunes and rebound from what had been mediocre results since it was acquired by dollar tree back in two thousand and fifteen as three hundred ninety stores are going to be closed outright full stop another two hundred stores will rebranding themselves and operate as dollar tree stores following the release of the news dollar tree which trades on nasdaq pushed over that one hundred dollar mark which they first breach back in december of two thousand and twelve. and time now to squeeze in a quick toss for the promotional cause but stay close because when we return we
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look at natural gas and a humongous natural gas joint venture in the news today with energy historian doug ellin boss plus adam asked of the ad a measure creating group joins us to look at some companies in the news including kraft heinz who some say may have cooked their posts and will they think companies be invigorated by the resignation of the hardliners food and drug commissioner who just announced he's leaving adam will give his take all that as we go to break and here the numbers will be back in a flash. join me every thursday on the alex salmond show and i'll be speaking to guests of the world of politics sports this list i'm showbusiness i'll see that.
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after the previous stage of my career was over everyone wondered what i was going to do next the multiple different clubs on one hand it is logical to sit in the home fields where everything is familiar on the other i wanted a new challenge and the fresh perspective i'm used to suppressing and i saw one on t.v. . i'm going to talk about football not the or else you can sink i was going to the. by the way ways and such like here. this is a stick from the water bottle found in the stomach of the fish the brand is spawns of the coca-cola company which. millions of bottles of soda every day the idea was that let's tell consumers they're the bad ones they're the litterbugs for throwing
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this away industry should be blamed for all this waste the company has long promised to reuse the plastic. and soon. their plastic. special projects funded. on the. fun now the mountains of noise only grow higher. so what we've got to do is identify the threats that we have it's crazy confrontation let it be an arms race. and spearing dramatic developments only really going to exist i don't see how that strategy will be successful very critical time to sit down and talk.
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welcome back at one point of clarification by the way back when i was talking about dollar tree and dollar general at that one hundred dollar mark that dollar tree breach was back in december of two thousand and seventeen i said two thousand and twelve i looked at that chart it's a very in a. resting that went up for the first time i think it was sometime mid december of two thousand and seventeen above hundred and it's been going down below that but on
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that news today they breached up over the one hundred dollar mark and following up on a story we told you about are the other day algerian business leaders are visibly stepping away from the north african nations and battle president as protesters continue to manned an end to the presidency. of flicka his presidency a number of prominent wealthy algerians have now quit the business advocacy group known by the french acronym as f c over the issue of whether the president should hold on or step aside after scheduled elections the f.c. and members were previously politically aligned with the president the vice president has now quit the group and remaining f.c. members say they want to replace their leader ali hard dud who remains loyal to the president the reign of mr betta fluke or at least those around him has also been shaken by a resignation of the foreign minister and a number of other politicians from the president's party the f. l. n. . global mega bank j.p.
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morgan chase has relented to a campaign from critics including immigration justice activists and declared that it will stop it will stop investing in private prisons and retention centers j.p. morgan has financed both the city c.e.o. group and the core civic group the two largest private prison and detention center companies in the us j.p. entered into a partnership with bank of america and wells fargo back and last year and twenty eight hundred to raise one point eight billion dollars in debt the bank has been under fire over their complicity in an unjust immigration system here in the us most pacifically the policy of torturing children by separating them from their families nearly two thirds of detained immigrants are held in for profit facilities while only ten percent of prisoners produce profit for the companies by simply filling the cells. and today we look at. key energy commodity natural gas and there's a major move to the tune of twenty seven billion bucks being made with
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a humongous natural gas pipeline carolina's expertises energy historian doug ellin boss who joins us from grand rapids michigan usa we love graham rapids and we're so pleased that you've taken the time to join us let's start with some basics if we look at global energy usage what sort of metrics are there what percentages are are out there with regard to natural gas compared to say coal or oil or right now. natural gas is probably about twenty three percent of the market and coal about twenty seven percent you have to remember that natural gas isn't always available all the way around the world and so cold still a big player but crude oil of course is the highest and whereas crude so you said twenty three and twenty seven for net gas and thirty two percent for crude thirty two percent are the rest sort of you know renewables hydro that sort of stuff
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yes yes and of course you have nuclear in there as well your c i don't want to there's the traditional ones yeah ok and which are the primary countries i know there's a lot of them but but i mean if you look at the main countries in the world that produce that gas which are the ones that produce the most well the ones that produce the most of course are the united states and then second is russia and then it drops off considerably after that you know iran is in there cat or canada china we've got a chart chart up there and yeah you know the same there are those countries doug are they the ones that are consuming the most or are there some that really have energy needs that they you know use pipelines etc to get the natural gas to their country. that's right well the united states is the biggest user and russia also is a big user as well then it then it gets broken up
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a little bit more beyond there but russia in the united states are still the highest it's much needed and states and tell us about prices we look at them from time to time but euro energy historian i love that title but from historical perspective doug and maybe also sort of an annualized per perspective because i know prices go up and down with temperatures and hopefully with supply and demand but explain you know how prices a bet on that gas i guess are below the five year average now but give us more texture to how that gas pricing is generally working. well i want to go a little ways back you know back to the maybe seventy's or eighty's where it was a very controlled market. is the producer and the. and the final buyer they were all matched up it all went into one price and then once the it became more of a commodity things got a little bit more complicated and a little bit more volatile right now we have the situation when gas is produced the
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gas and they need to market their gas to someone who's going to buy the gas who also is probably going to be supplying it to a number of different players the producer also has what's called post production because their gas coming out of the ground is not of the quality that would go on to a pipeline so maybe they have to do some processing and for sure they have to do some compression to get to that metering point so there are costs that go back to the lease that are detox from the natural gas price that would be received from the producer very interesting and then you mentioned you know rush rush at us and production earlier but that country seems to provide a lot of gas to europe russia that is will tell us about this project in the news today that you lawler l. and g. project a twenty seven billion dollar joint venture with nobody told tall c n p c and the
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silk road fund what's going on with your mom. well traditionally the russian gas has come by pipeline into europe which now people in the european areas are getting a little bit more concerned about so they like to bring in some l. and g. now this mega project that is up inside the arc arctic circle. it's coming on in maybe two or three trains and the production is from gigantic fields that are right there at the location so their costs are a little bit lower that hasn't have a lot of pipeline cost plus it's a little bit easier to. make it into l. and g. when you're in such a harsh cold climate also very currently the original design was to send the l.n.g. to asia but this year because of the cost differentials a lot of that gas l.n.g.
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is going to europe and actually they've been the biggest supplier to europe of the past winter super thank you so much doug appreciate you tell us about that story and some history on natural gas a dog album bus thank you so much bridget your time to. thank you bart. the u.s. food and drug commissioner scott gottlieb has announced he's resigning his bed a real hard liner cracking down on companies ranging from those that produce opioids to those pushing bathing on kids and fact is produced a sharply opposed rather sharply restricting the sale of flavored cigarettes to slow the surge invading by under-age minors which the commissioner argued could if left on a baited lead to an entire new generation of people addicted to nicotine here to help us out on the company's impact in is out of mesure they had
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a message trading adam we're so pleased you'll join us again now jewel labs is one that a lot of people know they're not publicly traded but a big company that is a investor in jewel is tria maybe thirty five percent i think at least last the last i read i mean how might the commissioner leaving assuming the policy changes how might that impact algeria or other companies who either are involved or have exposure to they've been companies. yet it's a shame that's kakalios sent down he was fighting the good fight and it was a sudden departure which makes you think they could be more lenient which would be positive for the industry in terms of jewel which is by altria. they invested thirteen billion dollars in jewel jewel took two billion dollars and paid out a dividend to fifteen hundred employees turning them all into millionaires so the job losses are great but in terms of all of that as an investment in algeria on
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behalf of the jewel i wasn't there for the wedding i don't want to be there for the funeral they already control seventy five percent of the market share and have a thirty billion dollars valuation i think if anything they lose market share and if there are lawsuits that this sector because it is still related to the nicotine effect then jewel who owns seventy five percent of the industry controls and if i was is she will be the first to be hit with that so i think there's more downside than upside at this point ok so no go for your view and i made this bad joke earlier but let's catch up with kraft heinz there's news today that famous catch up and kind of it maker might be cooking their books or at least tailoring their financials to make the results look better than they really are and the issue is specifically about earnings which now the company reported is twenty four billion bucks but using standard accounting rules it appears at least some say that they may have only made six billion dollars and i'm a what do you make of the story in the company. it has disaster written all over it
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whenever you hear cooking the books you think of companies like world com and enron and i'm not saying it's that but even that association is bad it was hit by six downgrades right away on the news and lower costs but they forgot about making tasty products and that's been a big thing so the companies got hit across the board plus they lowered their dividend which is always a bad sign i went touch this stock with a ten foot pole i am going to not ask you about mail chop which i thought was like the best thing in the world and now they have two other things mail cumana isn't bar and barbecue and mayo mustard you know mayo and muster i'm not going to go there because i want to get to urban outfitters which is another one that reported early earnings rather and clothier for teens and young adults they've had a few down years in store traffic but last year seems to a boosted them up a little bit they had nine point three percent to sales increase which i think
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worked out like four billion books is urban outfitters a good buy on. i don't think it is they had lower than expected first quarter sales urban has as shown the ability to survive it's been around for a long time it hasn't shown the ability to thrive it's sitting on a fifty two week low just above it in the year we've seen a lot of stocks do very well that for me is a red flag i don't want to buy a stock sitting on a low because the momentum is not there and urban outfitters is not attractive to me and i have one fun fact for you because i heard you like mayo chop you know it was invented in argentina by a nobel prize winning chemist and then and in looking into it it's more popular than i would have ever guessed so there is an underground they call it developing and you might be adding to that. well i thought i invented it i thought i had better get yours ago adam ok so we're going to stay away from heinz kraft and we're
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going to stay away from urban outfitters and we're going to stay away from algeria so we'll have to look for a good one next time you're with us adam mesh of the outer mesh training group i think you as always add a lot of fun pre-shared it thank you so much. and that's it for this time thanks for being with us you can get boom bust on you tube dot com slash boom bust our teeth so long for now we'll see you next time. i don't. i'm on a teacher. at least some of my ex in the future crocker.
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they all. say. yes to all this is how them through. my seven years doing drugs my nephew was still in drugs my sister just with doing
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drugs it was like an epidemic of drug abuse america's public enemy number one in the united states is drug abusers started going after the users in the prison population so we started treating sick people people who are addicted to these drugs like criminals. the war on drugs. there are countless numbers of people who are in prison for. for. minor offenders in the drug trade it's a lot watching your children grow up and miss you in waves and say bye daddy as you're walking out of a busy. it's just it doesn't get easier. it. was just on the more considered and the most city against india encouraging on the mostly among to its national interest any one of its neighborhoods as
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a good state but this is right this is we have pakistan is very different then. then india right now if they go on this trajectory unfortunately even not be able to give responsibly is in the speech and the speech in the cell phone for far too long because of this ongoing conflict between these two giants in the region.
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and alleged cyber attack on a british institute that seeks to counter russian descent permission is now being investigated by the u.k.'s crime agency despite having no forensic evidence the head of the institute already insists that russian intelligence is to be blamed. thing which makes and this is the reaction of our assessment that it is up for him to prove. that you are you. the cia will no longer need to say how many civilians its drone strikes kill after a new order by president trying. out. and fans of pop legend michael jackson and their theory or a new documentary alleging the stark.


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