tv Boom Bust RT May 1, 2019 3:30am-4:01am EDT
found in the stomach of the fish the brand is part of the coca-cola company which sells millions of bottles of soda every day the idea was that let's tell kids there are the bad ones that are the litter bugs are throwing this away industry should be blamed for all this waste the company has promised to reuse the plastic. that's. going to stay in your own hands are. on the line your best bet is year and a very pretty well from now the mountains of money only grow.
broadcasting around the world covering all aspects of business and finance and how it affects you this is boom bust i'm kristie i here in washington d.c. coming up political turmoil and sanctions are affecting the worldwide or oil landscape energy historian doug ellin boss and energy policy analyst bill had a minute joins us to drill into the issues at hand plus it's another big earnings week with general electric and google's parent company out of that reporting we'll sift through the numbers of these market giants and finally the u.a.e. has become a major player in the token sale cryptocurrency analysts taylor a lot of men will stop by to talk about how regulation is affecting the factories and how quick those are holding up worldwide all that directly ahead but first let's have some headlines. that entry about a new major player in the fight to acquire anadarko petroleum reserve global report today. as berkshire hathaway prepares
a ten billion dollar intervention on the side of occidental occidental made a thirty eight billion dollar bill last week interrupting advanced merger talks between anadarko and rival chevron now occidental has a big name with deep pockets on their side should they decide to top chevrons thirty three billion dollars bid by a greater margin occidental is successful and willing anadarko berkshire will invest the ten billion dollars into one hundred thousand new preferred shares of oxy stock the annual dividend would be eight percent the wall street journal reports that a successful bid by occidental would grant berkshire the opportunity to buy up to eighty million occidental at sixty two dollars and fifty cents a share today occidental stock fell before rise rallying above fifty nine dollars by early afternoon and a dark zero has been trending higher over the past week and was pushing for seventy three dollars an afternoon trading. the oil markets are clearly having
a huge focus right now and we anticipate a higher consumption in the summer driving months u.s. sanctions on iran oil planned for may on top of the earlier ban in mina's wailin crude are driving up prices for scarce or barrels but consumers are resisting the higher prices and holding back the standoff comes from uncertainty of just how much arraigning could may still flow to its top consumer china after may analysts expect china to flout restrictions and lift its imports from sixty thousand barrels per day to one million while export another five hundred thousand barrels per day under the sanction radar buyers are counting on this and it would make it harder for sellers to maintain their higher prices here to give us a full story as energy historian doug ellin boss and bill had are men senior fellow at the university of pennsylvania climate center for energy policy. the buyers are better. that these high oil prices are temporary that they can rely
on china's exports to push back down push it back down what do you think. well the price is that people are getting the production has been cut back a little bit by saudi arabia and russia to maintain prices and so china likes the idea of trying to draw the prices down but that usually comes by having a lot of production or lot of consumption increasing consumption would drive the prices down. so bill there are already expecting china to not really comply with the sanctions they have a lot of buying power is out there some of the u.s. is biggest clients for liquefied natural gas why can the u.s. do about it if anything at all. thanks chris and sorry to be mean you under such circumstances but. i think that
the sanctions around iran sanctions. the u.s. knew would be difficult to enforce but most strategist find that it's easier to stand up to u.s. military power than to the sanction power and i think that china will try to find a way around the sanctions but i suspect that this will be part of much broader negotiations between the u.s. and china and. as you say china's purchase of l. and g. is another part of that. the deals between china and iran and by land versus by by crude.
carriers is another area where. one is a lot easier to track than the other. and i think that they'll be negotiations around this have been around so many issues between the two countries right now. i would say that. i would probably disagree with you about the way to lower prices would be more more consumption i mean you might be able to get some kind of bargain on unit price but usually. an increase of prices in global energy markets. and the us had when they actually do because if china's not going to be punished for their actions then what's stopping them from just starting the sanctions. well the sanctions the sanctions can be pretty.
potent on the companies or the individuals upon which they are imposed and while the sanctions at the governmental level against china ones that will be. offensive if you will to china the ones of around individuals who are not cooperating with the point of the sanctions . could be quite serious penalties that's why you're seeing the actions in western europe that are now you know there are countries there who are not particularly aligned with what the u.s. is. trying to do here but the company cannot afford to oppose the demands of the u.s. in this area because. the financial transactions they need to do to conduct business i think china will in the long run try to have greater freedom around.
those issues but right now they may have to pay attention at least and so i think i think it will be a negotiation and hopefully it can come out in a way that each side can accept. back to you the u.s. sanctions also came into effect to block menace way allies oil exports in the hopes of toppling president nicolas maduro oil accounts for right now ninety six percent of all of its exports and the country is already facing major economic crisis inflation could soar up to ten million percent this year opposition leader. called for military backing to rule but materiel seems to have the military leaders loyalty how do you see this entire situation playing out it's escalating very rapidly. venezuela currently has significant problems maintaining their oil production and the us is making it even worse they've had an
infrastructure that has been decaying for a long time and that's what really has driven their production down you know the united states is trying to prevent additional production and to damage the duro. regime and it is difficult to see how venezuela can profit export oil or turn this around once there is a new regime because their oil production and infrastructure is decayed so much. bill as we were talking china and india are two of the most impacted by the iranian sanctions and to counteract this they're setting up an oil as buyers club to kind of get them a say in pricing in the sourcing of crude oil give us the details on that so the idea of a buyers club as a way to counteract some of the market. makes some sense i would expect
india and china would try to include other nations in asia certainly south korea and japan make sense to be. in a group by like that over the long. oil markets have penalized asia in the basically was a mark up that counted for billions of dollars each year that were more than one would expect from the smooth functioning oil market pricing that would have come from the bread prices in the us prices and the transport costs to move to the destinations so make sense for those countries to be at least communicating amongst each other and i think that it it will be of some help i don't think i mean opec's power is pretty limited the secretary general of
opec spoke recently this year in meetings. and he was pointing out that opec is really seeking price stability more than trying to exercise any kind of. ballistic power and i think seeking that same sort of predictability in the buyers makes sense. buyers club seems to be the only answer to our pack which is essentially a big sellers cartel saudi arabia recently announced that they will not rush to boost the oil production to make up for iran's loss and that while they will instead stick to the global oil production deal which could extend to the end of twenty nineteen they currently don't see any shortage in global all supply but opec supply right now has hit a four year low in april analysts are now speculating that saudi arabia isn't onboard with raising oil production how did the u.s. back itself into a corner here. the opec nations along
with russia it's in their interest to try and stabilize the market to try and keep the prices where they need to be so many of these nation. ans need that oil revenue to stabilize to keep their economy stable and so they are highly motivated to limit production to keep the prices high the problem what happens is that with all the geopolitics sometimes the market can gyrate based on a few simple statements by people in power and that can send the price up by a couple dollars or down by a couple dollars so i think. the producers and the sellers would like to keep that price stable or slightly higher and control there by limiting the
production crissy could i just said a point on that chart so this ties back to your first question about the temporarily high prices heavy crude is normally less valuable than light crude but at the moment people are willing to pay more for the heavy because the refineries are set up to process so if they have to change the kind of crude they're dealing with that becomes a problem for the economics of the refinery so that ties into that that part of the market dynamic here thank you so much for insight and energy a story and. bill had our men senior fellow at pennsylvania climate center for energy policy thank you so much welcome thank you.
turning to the earnings report be out of a disappointed investors after they report a less than stellar earnings after hours on monday google's parent company didn't meet initial projection as their major sells can't category perform worse than expected alphabet reported first quarter earnings of six point sixty six billion or nine dollars and fifty cents per share on revenues of twenty nine point four eight billion sales grew by just sixteen point seven percent down six point seven percent year over year the tech giants are names would have been eleven point nine dollars per share if not for the one point seven billion dollars fine in europe due to their shady online advertising practices following the report out of about stock opened down just over one hundred dollars or roughly eight percent. general electric shares spiked tuesday following their better than expected earnings report g.e. reported a revenue of twenty seven point three billion versus the expected twenty seven
billion or a gain of fourteen cents per share versus the expected nine cents a share the positive report comes as g.e. and now that they've burned less cash than initially expected only going through one point two billion the company warned last year that they anticipated their cash flow could dip by as much as two billion this year executives with g.e. also claim the problems with the boeing max fleet could delay a nearly two hundred twenty four million in cash flow in the second quarter of this year. on the news shares of g.e. were up nearly four percent from monday's close peaking at just over ten dollars and forty cents a share. time now for a quick break but hang here because when we return the united arab emirates has become a major player for crypto currency token sales come to a currency analyst a lot of men will stop by to talk about how regulation is affecting the sector and how does are holding up worldwide and as we go to break here are the numbers at the
club. this is a pretty the sort of the i suppose it's first lady. and you will well be the man you would need to because you know i do a good. look. losing is if you look up all of the good of the team you know that all you want to go to the but you know none of us does that. mean that you'll fall . it up well it was pretty let's get away from this. kind of what you say which can only be done on. your
do you leave room or you're going to you know did you. do you sort of my look go from. doing the clue which are coconspirators. we have no political agenda here we just if it if it costs more to get out then what you get when you get it out that's a call. all loss it's a minus sign that's it if you can't figure that out you think there's a political agenda. you're blinded by your by. my son doing drugs my nephew was still in drugs my sister just with doing drugs it was like an epidemic of drug abuse america's public enemy number one in the united states is drug abuse. users in
a prison population. we started treating sick people people who are addicted to these drugs like criminals while i was on the hill i increasingly became convinced that the war on drugs was a mistake there are countless numbers of people who are in prison for. four owner minor offenders in the drug trade it's a lot watching your children grow up and miss you in waves and say by daddy as you're walking out of a business it's just it doesn't get easier. there's this it will be. easy. to live better lives a little. used it's
a phone call though. welcome back checking in on china the asian powerhouses latest purchasing managers' index shows another fall in manufacturing activity. after surprising many expert observers and hitting a six month high in march of fifty point five the latest figures from china's national bureau of statistics shows the p.m.i. falling back in april to fifty point one in the p.m.i. a number below fifty indicates a contraction in activity and above that the register's growth near the end of twenty eighteen signs of a chinese slowdown seemed to be accumulating the march p.m.i. and other positive figures shifted some expert assessments of china's economic
trends for twenty nineteen in a more positive direction now the latest figures suggest a more muddled path for the middle kingdom in two thousand and nineteen perhaps delivering a slow recovery rather than a mild contraction. taking a big leap across the pacific from china to mexico that country also has turned in some surprisingly weak numbers mexican g.d.p. contracted by point two percent in the first quarter of this year delivering a very unwelcome surprise to president andres manuel lopez obrador who took office in december the disappointing first quarter of twenty nine hundred figure follows a meager point six percent growth of g.d.p. for q four of twenty. on another front mexican industrial production also contracted in the first quarter by point six percent more hopefully mexican agriculture which. has focus on revitalizing shows signs of life with two point six percent growth in the first three months of this year. previously stated
a goal of two percent growth for twenty nineteen an average growth of four percent for his single six year term as president the latest numbers makes those goals even more ambitious and challenging. we said we wanted to hold support above fifty two hundred after forming the golden triangle in order to gain confirmation of another bull run well it has struggled and failed to hold on to gains above the fifty week at that the four hundred from here it looks like a make or break set up we could see it make another attempt to break resistance but a slew of bad news is weighing down on the short term price in particular bit the next one of the largest exchanges has been accused by new york's attorney general leticia james of covering up the laws of eight hundred fifty million here to talk
more is taylor letterman cryptocurrency analyst at simpler trade. now we see big point drop over five percent in a matter of minutes after this was filed as traders move to withdraw their funds from bit panix for a liquidity run tell us tell us what happened when the next they had this problem are ready with their last year and didn't they address these concerns why is it happening again. yes of but the next and other both have been releasing sort of news been coming out of them always at the wrong time right so you mention the support around to do one hundred they're going to do pretty well until that news came out so right now we're kind of taking a step back and waiting for more information is that the next tether scandal to go out of resurface again so what we're seeing is a loan from one company but the next into other shifting back and forth between hands and then what we really want to pay attention to in this situation is the payment processor the processing company behind both of these companies which is a crypto processing company that has been seen as sort of the main problem by the
capital those funds were seized by the u.s. in a couple other countries that cripple capital is holding for a bit the next and so but the next had to take a loan from another company to cover a loss to either be in that other company that they can operate closely with sister companies and so we're watching right now is was going to come out of this suit and what allegations are effects untether will be able to kind of subside as a report back some documentation so there's still a lot to be seen but still has really shook the market as we can see with the price of big point appears rally now but we still see a very high premium on big queen and the u.s.d. pairing on so we're still waiting for that premium to shrink back down to what we're seeing on other exchanges like when baser gemini some u.s. exchanges so it's clear that the u.s. is attempting to really read try to regulate the industry on the one hand it's a really good thing as it's protecting the consumers from fraudulent behavior but on the other it can be pretty overbearing and in
a new emerging industries such as it could result in a lot. lost opportunities earlier this year we witnessed bittorrent i.c.l. a widely anticipated event that raise seven point two million dollars in fifteen minutes it subsequently traded and gain over six hundred percent and that was highly profitable for some traders but unfortunately this i.c.l. was not open to us citizens and we missed out is this fair. i think i don't think it's mostly unfair overseeing is sort of the regulatory pressure being put on the i c o's so we've seen those dampening to twenty nineteen we've seen a lot less of those expressions of ones available to us investors were seeing now is sort of a disguise of the i.c.a.o. we're seeing a slight difference for region into it we had these exchanges releasing tokens as an initial exchange offering so they're releasing these tokens and investing via the exchange token so the exchanges are now be able to take a little cut of that but also open up to their customers who they already have sort of verified their country of origin as well as whether
a credit vest or not so i think exchanges are doing it sort of in a better way than we saw previously where these companies are releasing their own tokens so the exchanges are doing the due diligence and so on but i still think i.c.a.o. is in a lot of these are still going to be a lottery ticket and i think it's good that u.s. investors are kind of protected from that we're going to see that as a compromise between security and convenience compromise between having these exchanges not allow customers in the u.s. to invest in i think it's i think it's of ok deal so the u.s. was dominating these token sales but however due to the regulatory climate we see a lot of these companies actually move away the u.a.e. is now the world's biggest contributor to the token sales raising two hundred ten million since the start of twenty nineteen so the u.s. has now fallen to sixth place and the u.a.e. is surging and this is very sudden the new feature in the top ten countries for digital token sales in twenty nineteen how is the u.s. expected to compete and remain a leader in the industry when its innovation is leaving its shores. i think how we
. can be here in the us is going to be through working with enterprise companies developers and so i don't think we actually have to compete on the investment side of things so much as we need to compete on the people that are actually working in building the. protocols and working on the companies and the enterprise projects to kind of expand the corporate networks and as developers or spinning ad dollars in terms of marketing and this kind of continuing to expand who's working on it i think that's where a lot of innovation in com is working to educate people on the space rather than actually putting more money into some of these projects that will just die off and initially well it's certainly keep an eye on it right now you're a isn't first place followed by cayman island and singapore tell a lot of men crypto currency analysts assembler training thank you so much for your time. they haven't. that's it by this time you can catch boom bust on direct t.v. channel three twenty one dish network tell it to eighty or streaming twenty four
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your room go to. move for your. eleven am mosco time venezuela's all position leader one boy called for another day of anti-government protests heavy clashes reported on the outskirts of the country's capital caracas tuesday while president says the government has quashed the coup attempt we've got the latest for you on this big developing story these days plus to. the loss of a cold a new cold war the u.k. government looks set to make the house of lords declare all business ties with russia and china saying it's just about making. the ticks were transparent. and the russian national jailed in the u.s. for working as an unregistered foreign agent has been fielding reporters' questions