tv Boom Bust RT April 10, 2019 8:30am-9:00am EDT
and then they know as bad wolf. and welcome to boom bust broadcasting around the world and covering the world of business and finance and the impact on all of us i've been swung filling overboard children in washington glad you're with us coming up saudi aramco its first international bond sale has smashed expectations are correspondent alex joins us to drill into the data and how the saudi company plans to move forward plus is there hope on the horizon for trade talks between the u.s. and china on the heels of yet another global downgrade from the i.m.f. former u.s.
representative alan grayson gives us his take on the trade turmoil and farrell and finally chrysler has made a move to dodge billions in fines and their stock is reacting at a match the c.e.o. of the adam mesh trading group joins us to sift through all of the stock and some of the other moves in the market all of that directly ahead but first the headline . and let's begin here with a billion dollar fine for a major london based bank it leads our global report today standard chartered moves to settle with the u.s. government over charges that it violated unilateral sanctions against iran the bank was also separately accused of processing payments for a bank that the u.s. treasury says has links to the self-proclaimed islamic state or isis and involvement in illicit transfers to cuba sudan and syria as well as me m r the full financial sanction for the bank will total one point one billion. dollars it also
resolves a five year investigation that focused in part on the bank's branch in the emirate of dubai the settlement is also a costly sequels of the bank's deferred prosecution agreement or d.p.a. seven years ago with u.s. prosecutors in that case the bank paid six hundred sixty seven million dollars in fines d.p. able now last until at least twenty twenty one. the move on the case involving u.s. sanctions on iran also follows the trump administration's designation of the iranian revolutionary guard corps or i.r.g.c. as a terrorist group that designation places new legal obligations on bangs to avoid transactions with the i r g c expert trita parsi i told democracy now that the designation could cover as many as eleven million iranians. or political controversy surrounding saudi arabia is doing little to repel investors from that kingdoms or oil riches so get this last week of the country's oil giant saudi aramco pitched its first
international bond offering and it looks like investors are more than eager to get a piece of the pie get this saudi aramco bond it's already received one hundred billion dollars in orders yes billion with a b r t's alex me a hell of a joins us now from toronto with this and alex some big players coming out in support of iran cause offering here obviously you don't get one hundred billion dollars if they don't what are we hearing when it comes to the demand for these bonds i think about saudi arabia they were on the naughty list last year nobody wanted to touch them because show you affair which the united states as well as other countries have said the prince of saudi arabia ordered the killing of that journalist and you have a yemen yemen the war they never ends it is one of the biggest humanitarian disasters that we have on the face of the planet ad the fact that saudi arabia for decades has been supporting wahhabi terrorists around the world you think you know what nobody wants a touch of this country but when people doubt lots of money they don't seem to
really care they go where the money is and it seems that saudi arabia is the place to be as you mentioned one hundred billion dollars in these bonds and it look we're talking saudi arabia was looking at maybe ten to fifteen billion that's what it was hoping to raise got a heck of a lot more and there were talks the you know they came in last week a bunch of saudi exacts from aramco and their buddies from places like go. the bigger banks of the state so let's for example in new york they brought along jamie dimon from j.p. morgan chase the chief executive there he was pumping the tires of this company along with the saudi exacts and of course what we see now as people took the bait and they're eating it up the investors both in london and new york city seem to be very excited about obviously this goes way beyond that now as i mentioned they thought that would raise about ten to fifteen billion this is going to want gone way above that this is going to help the saudis big time as you probably remember last year with aramco there was a big deal that the sixty nine billion dollar purchase of sabich which is
a petro chemical company also under the saudi arabian state but look they just got a whole infusion of cash and a lot of people through saying there are critics out there not only criticizing the things on the political side like to criticize like bad behavior politically but also they're saying that this is vastly overrated the whole chase after these bonds have been that actually it's inflated but anywhere you turn it one hundred billion dollars which is absolutely incredible for the saudis yes hard to believe that it's not inflated and when you do have someone like jamie dimon coming out though and kind of as you said pumping the tires on this thing gives it a little more credence i guess to investors but all of this kind of playing into the saudi crown prince mohammed bin solomon's plan he wants to defer diversify he says the saudi economy when the nation off of oil dependence we know he's been doing that a lot of it's been happening in silicon valley is trying to get heavily into the tech space right. well exactly i mean m.p.'s must be rubbing his hands together
right now this is a silly one of those wonderful moments rates where where companies like goober we know that he's been big on that and that's exactly what he's doing trying to diversify what the saudis have moving into the tech spectrum as well you know anyway again you know the banks are now bank backing this and this is all bouvier towards one thing that b.s. is wanted to do and that's an i.p.o. with aramco this is a massive step in that direction especially when you've got the backing of international banks you know the sort of sometimes might leave a bad taste in your mouth when it's that political stuff and i could go on and on but look at the money is their biggest oil company in the world and the investors well they can put their blinders on easily when they smell the cash yeah and then it's unfortunate on some levels because as you mentioned there's this humanitarian crisis that's been created by the saudis the worst in the world in yemen right now the purchase of weapons going to the saudis i mean there are a lot of moral issues associated with doing business with them but as he said
investors don't really care that much about moral issues they care about that bottom line artie correspondent alex the hell of it thanks so much thank you. well there is a new set of trump tariffs in the mix of global trade troubles this time aimed at the european union the u.s. treasury department announced late monday that they would impose tariffs on eleven billion dollars worth of the e.u. imports over a lingering litigation at the world trade organization that case involves e.u. subsidies to aviation manufacturer airbus well the e.u. want to favorable judgment at the deputy a last month on their claim regarding u.s. subsidies to boeing and e.u. officials told the wall street journal that they expect arbitrators to cut down the list of items that treasury targeted for terror of citing w t o rules and process in the meantime stock markets reacted unfavorably trending down on the news the global economy is losing steam.
well the global economy is losing steam and that is the word from the i.m.f. or the in an international monetary fund the organization has downgraded global growth to three point three percent for twenty one thousand that is two tenths lower than the global crisis linder forecast in january it is four ten slower than in october china and india continue to show the highest growth rate six point three percent and seven point three percent respectively but one of the biggest factors being cited by slow growth globally are the threats of tariffs by the trump administration as well as u.s. china negotiations whether you agree with president trump's hard line with china it is unquestionable that he is getting some results that many thought he was not going to get joining me now to discuss this former u.s. congressman of florida alan grayson thank you for being with me. so u.s. china trade talks appear to be reaching their apex at least that seems to be the word right now what do you foresee as these talks finally start to wrap up here.
i'm not sure they're going to i'm skeptical of that i think what the chinese were doing a very artfully is stalling president trump as soon as he took office started what amounts to a trade war with china and we've seen some activity in that regard but frankly trying to spin spitting into the ocean when it comes to u.s. china trade relations that we're talking about trillions of dollars of trade and billion here and a billion there just doesn't make a difference i think that the chinese with the election coming up next year have a strong incentive to stall and i think that's what we'll continue to see maybe i'm wrong if they do make a deal i've got a lot to give up i mean there are forty percent tariffs on u.s. cars sold in china for instance and they have been cheating and adopting mercantile his policies against united states and stealing intellectual property now for three decades so they can certainly give a lot and still end up ahead yeah you raise a good point there you know white house economic adviser larry kudlow said recently
that for the very first time china has publicly acknowledged issues of intellectual property theft cyber hacking force technology transfer the issues that you're raising we know that china has been cheating for a long time but for so long china hasn't really acknowledged it at least in these talks they've acknowledged it but does acknowledge it is not quite the same thing as doing something about it right. well it's structural i mean first there is the headline grabbing attempts they make to actually literally steal our intellectual property i think that has less of an impact than what they do on the sly they force us and e.u. companies and other foreign companies to stablish joint ventures with locals and then the locals basically learn how to do what the foreign companies are doing and then set up their own shops and competition with them that's the primary part of what we've seen in terms of intellectual property along with the more obvious stuff that i and i mentioned before and i think it really doesn't accomplish too much it's nice that they start to understand how we feel but that's
a long way from actually changing the system when you've got a system which is rife with state owned enterprises doing joint ventures with foreign companies that's not going to change overnight the five day forecast that we've seen for the stock market if we could put that up guys obviously we've seen over the last five days or so some significant drop offs here looking at the dow jones right now and obviously kind of up and down over the last five days and then though obviously we hit tuesday as you can see there and we drop off pretty dramatically as we're watching the stock market obviously that has been a congressman a huge talking point for the administration about how well the economy's been doing as we see some struggles right now and obviously this is just you know a five day forecast that we're looking at but as we see some of those dip some of those struggles does that put some pressure on the trump administration to rein in some of this talk about you know not only the chinese trade talks but also this discussion about now eleven billion dollars of tariffs on the e.u.
. no i don't think so the underlying truth is that china has been playing a merc game now for thirty years what they do is they arrange for the e.u. in the united states to buy goods from them which puts their people to work and in return when they pay for these things they simply buy our assets rather than putting our people to work that's what mercantile ism does so their net result of that is in fact that we lose jobs and we end up deeper and deeper in debt and for better or for worse artfully or in artfully the administration is trying to remedy that and that would have a positive effect on the economy over time and even a positive effect on the stock market over time in terms of the chinese and the e.u. separate from the united states they have finally drafted it looks like an agreement to reach an agreement so it's not a whole lot right now but it's an agreement to move forward on building something called an investment pact the draft kind of includes commitments from beijing to
speed up talks and on industrial subsidies and opening china's market more broadly to european companies this is been a discussion congressman that's been going on for about a decade now do you think there'll be some progress there and will that impact the u.s. discussions with china. well it's a dramatic contrast to what we're doing i mean trump and his usual fashion of simply bashing people and bullying them and trying to get his way that way in the us trying to do it through patient negotiation i'm not sure either one is going to work i mean china system is fundamentally different from the us system in the us system and it's kept their people prosperous and at work now for thirty years they run a half a trillion dollar trade surplus with the entire rest of the world if they didn't they'd have a system that's right for the unemployment they would not be growing at six percent a year they'd be lucky if they're growing at all so they have an incentive to keep the current system which works enormously in their favor in tact and i'm not sure going to be willing to change it whether we bash them or whether the e.u. patiently negotiates with them because they'll be negotiating against themselves if
they do in the end their system works for them. the way it should be former u.s. representative alan grayson thanks so much for your insight thank you. for a quick break but don't go away because chrysler has made a move to dodge billions in fights and their stock is reacting to the c.e.o. of the trading group joins us to sift through the stock and some of the other moves in the markets and as we go to break here are the numbers at the closing bell.
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kaiser one more of my guide to financial survival this is fun and a device used by professional scallywags to earn money. that's right these hedge funds are completely not accountable and we're just getting more and more into them . totally destabilize the global economy you need to protect yourself and get informed as we. came here where did you work before you came here when you live. in many u.s. states capital punishment is still practiced convicted prisoners can spend years waiting for execution but most of the time the victims' families they are very much in favor of the death penalty there are some people because of what they did have given up the right to live among us some even proven innocent to years on death row
and. boards are asians is it going to take before we as a society realize that this is not working and we actually do something about. welcome back french banks will see it a general has roughly eight percent of its workforce announcing that they will eliminate six hundred jobs out of a workforce of twenty thousand the savings from the trimmed payrolls will total about five hundred million euros that's according to the financial times the union representing workers at the bank says about seven hundred fifty of those workers dismissals will be voluntary departures from the bank's operations in france the french paper in the figaro published the first reports of planned cuts over the weekend the first detailed report of the bank's previously announced restructuring plans focusing on its troubled trading unit in a statement bank officials said that they will focus on financial engineering
expertise that forms the core of the bank's d.n.a. . sticking with the banking sector now and turning from job cuts to wage increases bank of america has announced that it will raise its wage floor b. of a says a new minimum in-house wage of twenty dollars will apply to their labor pool of two hundred five thousand workers at forty three hundred us locations the banks wage floor is currently set at fifteen dollars where it's been for the past two years the bank's chief human resources officer sherry brownstein acknowledge the market pressures behind the move saying in a press release quote we are raising our minimum wage because we believe to best serve our customers and clients we need the best teams in quote many of be evasive rivals have recently announced increase in their base wage as well as bonuses as tallied by the american bankers association on their website the raise that b. of a that will come into incremental with a quick boost to seventeen dollars per hour that will be and may follow by smaller progressive bombs until they reach twenty dollars an hour by two thousand and
twenty one. chrysler has struck a deal with tesla to count the electric car maker as part of its fleet in the e.u. this is because chrysler was coming up against strict new emissions rules in the e.u. for two thousand and twenty one and that could mean billions of euros in fines instead essentially chrysler is purchasing emissions credits from tesla it's a similar process to how regulatory credits can be bought and sold here in the u.s. those credits will be worth hundreds of millions of euros for tesla joining me now to discuss is adam mesh of the adam mesh trading group adam good to have you here. thanks for having me appreciate it so we know that tesla has done this before making one hundred three million selling emissions credits in twenty eight thousand two hundred eighty million in twenty seven thousand two hundred fifteen million in two thousand and sixteen this is not new to them but really it's only
a very small part of their business correct. right it is a billion dollars and selling emission credits that they don't need because they're electric. but it's it's not a viable business model for tesla and chrysler is the tory is for carbon dioxide emissions so this is a way to get themselves out of trouble or avoid fines but with stricter regulation coming in twenty twenty one i view this is a band-aid not a cure for them yeah definitely a band-aid is kind of hard to imagine though a billion dollars worth of credits that you're giving away and it's not a viable business model however the move did affect chrysler stock how did that happen. well i think when they look at it the market was down today so we don't know if it was the news or if it was the market so the stock to take a little bit of a hit but i think the reason why they didn't pop on the news was because again this is a long term solve they keep getting fined they keep getting into trouble and they haven't
found a way to avoid this so until they find a long term solution you're not going to see the stock reward them for this if they don't have an answer to it yet certainly not let's run through a couple of other stocks here as well when resorts stock down today after it cut off talks to acquire australian based crown resorts apparently the company is discussing it was like a fifty percent cash fifty percent stock proposal told totaling about seven point one billion dollars but that deal is now off right. it got leaked and wind was not happy about that or maybe they're posturing because they want to do it later but it got leaked and you know when has seen growth slow in macau so they were looking for areas of growth elsewhere this was supposed to be it now they're saying that deal's off. the stock did ticket today the market did not like this but again it's possible that we could be posturing deal's off and maybe they're just looking for a better terms maybe so how about let's talk about a stock that's up you mention the market overall was down today but apple apple is
doing something it has not done since two thousand and ten apple stock has actually gained for tin straight days now we know that that comes on the heels of all kinds of talk about the i phone not necessarily being the future of apple the apple now moving into the content creation industry and that particular fairly crowded field what's happening with them why are they up so much. apple is having a great year on the actually i'm most excited about you know we have the fanning acronym but there's a new acronym people are talking about and it's m.v.p. because master card visa and pay pal have been dominant stocks and apple has a credit card of its own that's coming out it's going to have two percent cash back to doing the conjecture was goldman sachs and think about the perks you could get having an apple credit card i think there's a lot of buildup for that i'm excited i know i want one and i think that's part of
the buzz going around apple they did also lower the cost of their i phones in china and they got upgraded because of that they weren't able to close positive so they didn't make that tempted they were up earlier still of twenty percent for the year versus market twelve percent so all things looking good for apple and i can't wait to get an apple credit card and then use my reward points to get apple products so i think that's going to be huge for them yeah let's talk about that for a minute because obviously you know this is a whole new area right apple products obviously that was their bread and butter for so long and even though apple still makes great products the development of their technology especially when we talk about the smartphone i mean for years i've talked to people about the fact that apple was behind so many other smart phones while way phone certainly you can't get those in the u.s. so really but even samsung a lot of the technology that apple adopted to their phone is about two years behind what samsung is doing and yet the brand has been strong but now is the shift away from the brand in particular of the core products and they move more into these
areas of content creation that's a big one and then also this area of kind of shifting apple pain to the credit card is is apple morphing into a totally different kind of company than it was even two or three years ago. the certainly using their brand to expand beyond the nine hundred million or so i phones that are out there and when you have that kind of a reach why wouldn't you i'm azzam has become the example of how to do that you look at whole foods they expanded to every business amazon started selling books apple started selling phones look at amazon now i think apple's looking at what amazon has done and said you know what they've surpassed us they're bigger they're wider we can do that too so they're getting into apple streaming they're getting into credit cards and they are looking to not be product dependent we saw earlier this year when the i phone sales were down the stock took a big hit it was down like fourteen points the next day and what do they do they
turn around they start focusing on all these other areas of growth so i would never bet against apple certainly not a new binge and you mentioned amazon very quickly you know amazon has become people like to say amazon is taking over the world right that's what it feels like is that the new business with about thirty seconds here at the new business model for a lot of these mega companies is to diversify as much as possible. i think by definition we're all competitive so whoever you are you're looking at the person who is a little bit above you and you want to be them apple was the king apple was the king and now amazon's the king if us what the number one company in the world is nobody is saying apple they're saying amazon so with apple who are you going to look to they're going to look to amazon and even though i want to scribe them as competitors the model of expansion taking over other areas is clearly a blueprint they're taking from amazon and you know with all the money they have in reserve there's nothing that's going to stop them from being successful and with
the bond sale today saudi aramco would argue it's the biggest in the world at a measure the c.e.o. of adam is trading group thanks so much for being with me. thank you. well that is boom bust for today now remember you can catch boom bust on direct t.v. channel three twenty one dish. network. twenty four seven on pluto t.v. . channel one thirty two there as always you can also hit us up. we'll see about here tomorrow have a great day. i
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so. most of the votes counted benjamin netanyahu looks that for a record fifth time israeli prime minister berlusconi and have already expressed concern that it will lead to a father line style ations in the occupied west bank. the british prime minister ready for another extension to breakfast in brussels that they take down towards friday's no deal that line. and war stories for rewriting history as it continues to reject russia's involvement in the memorial project and a former nazi death camp in.