tv Boom Bust RT May 3, 2019 8:30pm-9:01pm EDT
by day as you're walking out of the abyss it's just it doesn't get easier. i. broadcast around the world and covering the world of business and finance and how it affects you this is a boom bust and daniel brought in washington d.c. we're glad you're on board coming up to date the latest u.s. job in g.d.p. numbers are showing surprising strength steve malzberg will be here to dive into the details and over is facing a class action lawsuit from australian cab drivers who say the right ride to healing service put them out of business by breaking the law alex and hell of it
will be here to discuss the latest of several global pushback efforts against the dominance of right ailing startups and rick rule c.e.o. spot u.s. holdings will be here to discuss the latest moves in global oil markets all of that directly ahead but first let's have some headlines. a major move by soft bank leads our global report again today as a soft bank group considers an initial public offering for the one hundred billion dollars soft bank vision fund the wall street journal reports the plans were an i.p.o. are the result of soft banks efforts to keep pace with the deal making done by soft bank founder and c.e.o. masayoshi solomon the journal reports mr sloan found enough investment vehicles to utilize the vision fund vision funds one hundred billion and capital in two years rather than the previously planned four years mr sun has also been on an acquisition spree capturing and attractive assets in sectors including banking online food delivery and biotech but also. so quickly depleting funds available
capital at the same time the journal points out that upcoming i.p.o.'s for we work and in which soft bank has major stakes will bring in significant amounts of new capital. this morning the bureau of labor statistics announced the job numbers for april and the results were better than expected two hundred sixty three thousand jobs were created last month coming in way higher than the one hundred ninety thousand jobs economists were expecting the unemployment rate meanwhile has fallen to three point six percent that's the lowest it has been since one thousand nine hundred eighty nine let's take a closer look at inside today's report joining us now to do that is t.v. and radio host steve malzberg steve welcome great to be here sir now stooping down first i know there are. the usual revisions to the figures after they come out and that's happened the usual process in the last couple of months what about that and what about wages and i was going to start with the revisions you know february was a disastrous month it was the revised up last month and it was revised up again
today march was revised down seven thousand jobs so you net gain there is sixteen thousand jobs for february and march the three month average is one hundred sixty nine thousand jobs and the average year to date including april for the four months is two hundred four thousand quite a strong number and labor force participation let's go there it tick down two tenths of a percent from sixty three percent to sixty two point eight percent and of course that could account for some of the lowering of the unemployment number it's but it's the good news is it's the same exact amount and percentage that it was a year ago so that consistency is pretty good if you want to talk about wages let's talk about wages point two percent to twenty seven dollars and seventy seven cents an hour two percent month to month three point two percent year over year and that's where we were. last month as well so wages are going up but they're not doing anything that would make people worry about inflation necessarily as. as the
demographics two glaring blaring boasting headlines hispanic unemployment is at the lowest rate it's ever been since they started keeping statistics four point two percent for hispanic unemployment and for women over twenty years old it's the lowest rate it's been since nineteen fifty three in fact the president started tweeted that out very proudly in a tweet earlier today so seems like good news for the most part all around on the numbers and great to see those wage gains have yeah the year over year you know as always when you see reports come out like this there are six tauriel winners and losers it's generally good news but better for some people than others so who are the winners and losers in the economy here and particularly we always want to talk about retail what's going on retail get to retail unfortunately there are a loser again but let's start with the winners because that's what we do in our society and we have business a professional job seventy six thousand jobs gained in the month of april so that's a significant gain construction thirty three thousand and that's about two hundred
fifty thousand plus in a twelve month period also health services twenty seven thousand jobs and that's over four hundred thousand jobs gained in the last twelve months for health services manufacturing went up four thousand jobs but it's been pretty flat and over the past three months and some say the reason might be the tariffs so that's an area of concern because donald trump and the republicans are very concerned about manufacturing and they boast about it so it's been flat on the negative side as you mentioned retail down twelve thousand jobs again down i say again because the last three months retailers shed forty one thousand jobs and people are starting to ask is this reversible is this a trend something we need to watch this something have to be done mining was down three thousand but everything else was pretty much flat now these numbers come on the heels of some other good news recently on g.d.p. and productivity putting that together with these most recent numbers what's the prognosis what's a pick. looking yeah i mean you have g.d.p.
three point two percent for the first quarter higher than people expected and then earlier this week as you said you get the productivity percentage three point six percent yearly of projected growth the highest in five years people are celebrating that the corks are popping because you have all the ingredients here for our economy we've seen what the economy's been doing donald trump see a c.n.n. poll showed that fifty six percent approve of his handling of the economy that's the highest ever for that that question so you've got wages increasing some feel it might be they might increase to four percent the fed said just earlier this week they're pretty happy they're going to stay the course some people want to see like the president q.e. again and lowering of the rates i don't know if that's going to happen but hopefully they won't be raising them too much too soon and you have the two trade deals the new nafta congress has to approve that and still the seemingly endless talks for the china trade deal if those two things go through it's just another big boost for the economy and very interesting thanks for joining us thank you.
and turning from finance to energy in geopolitics the united states has been dramatically ramping up exports of natural gas to the european union according the latest figures from the european commission commission statistics show exports of liquefied natural gas or l.n.g. from the u.s. to the e.u. increasing by two hundred seventy two percent since july of last year that was when u.s. president donald trump and european commission president john clarke juncker signed an accord to increase cooperation on energy security now that accord seems to be delivering impressive results with more to come energy secretary rick perry hailed the rise in u.s. exports on thursday at an energy forum in brussels where he signed export licenses that will enable us for firms sempra and to luria and export a game changing sixty billion cubic meters of natural gas to the e.u. that is six times the total volume that you imported since it began buying from the
u.s. in two thousand and sixteen. and while the u.s. seeks to expand commerce with europe an old law is being used to place more obstacles in the path to trade with cuba have an adox corporation and heavier garcia bank of china. separately filed suits against carnival cruise lines in a federal court in miami the plaintiffs allege that carnival profits from the use of expropriated properties when the cruise lines ship ships docked in cuba the trump administration enabled the lawsuits with the recent move by secretary of state mike pompei o to apply the previously waived title three of the helms burton regime change law aimed at cuba helms burton was signed by president clinton in one thousand nine hundred five an expert say billions of dollars in litigation could result from mr palm pails and to the waiver of the title of title three the implementation of the controversial provision of helms burton is just the latest effort by the trumpet ministration to fully reverse moves towards diplomatic
normality be. in the u.s. and cuba under president barack obama. australia is the new battlefront as taxi drivers in that country go head to head in the courts against the san francisco based right here when company alex held its joins us in toronto with the latest. alex good to see you alex just days you just days before its i.p.o. spacing we now see a number of struggles globally including this latest class action lawsuit in australia what can you tell us about it. thousands of drivers have actually gotten together in australia saying that uber is affecting their livelihood that the companies operating illegally in australia there's a class action lawsuit in the southern province of victoria that's going on right now and actually kicked in the last friday that's been confirmed and what we're looking at is six thousand drivers who are saying not only is their livelihood
being affected but also the value of their either taxi or limo license has diminished if you have uber drivers around obviously that once coveted taxi or limo drivers license when we have a very similar structure here in toronto i know many other cities do as well because a lot of money to get these licenses so the people paying for these license and then you also you've got all these uber drivers around that didn't have to go through that process so that is a part of the lawsuit we have mentioned six thousand people involved here. though is saying that the spokes person came out and said first of all that they they didn't even know about this lawsuit but second of all they're they're denying all these charges against them so i'm sure they know about if they're denying charges right that's the way to sort of dismiss it they are not taking it that seriously you're not too worried about it but i'm sure i'm sure their lawyers are looking at it other but other than australia there's a lot of other challenges people trying to put an end to sort of these wild west conditions for right healing services where is. where their competitors also facing
challenges. well you know we've seen this through the years ever since we were came out here in toronto when i first came out there was a lot of controversy over that cab drivers were absolutely ballistic there were actually vitus in the streets between cab drivers and uber drivers cab drivers trying to stop these cars so there was a pushback right off the bat and even in new york city as we talked about a couple of days ago or seeing that the minimum wage structure down for new york city which kicked in in february is affecting the way operates wants to have these contract workers these people want to be employees and of course that minimum wage that is in this gray zone the city saying that these people should be seventeen but paid seventy dollars so that the amount that they actually drive around adds up to the fifteen dollars minimum per hour that new york city has so we see that is there as well that if you look at the map of of the world where it is i mean it's in a lot of countries that we know in some countries such as all dairy is outright ban
didn't burn which is the second largest city in sure in the czech republic it's bad as well and certain services also across the world are just simply not allowed guber pop in france it's not allowed to even exist and that's like this really cheap right here program go back to the states look there was a class action lawsuit two hundred sixty thousand or two hundred forty thousand drivers tried to push this to the supreme court the supreme court said you know what we're not going to class actions around here and you got to get out of here y'all got to have your individual lawsuits of course that once you burst of power i wonder how many who were drivers are actually going to step up and try to push that through so there's this controversy there's this fight what is why doesn't want to pay its employees the way that other companies pay its employees what because they're not employees they're contract workers and they'd like to keep it that way they're interesting changing the rules of the road for right hayling services across the world heritage thanks for joining us. thank you.
time now for a quick break but hang here because when we return we get an expert look at the world's oil markets and whether or not the trumpet ministration can really cut iran out of the global oil trade and as we go to break here the numbers of the closing bell. has nothing to do with the propaganda that the daily mail is pushing but when you have a population that might be susceptible to propaganda they can easily be manipulated into thinking that fracking is something other than what it is it's not economically viable it costs more to frack then you can profit it's cash. it's also environmentally negative you destroy the environment incredibly.
busy this is a stick of water bottle phone 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 consumers. the litterbugs are throwing this away industry should be blamed for all this waste the company has promised to reuse the plastic. on the. phone now the mountains of waste only grow heigho.
i. welcome back british banker h.s.b.c. says profits are up despite lingering uncertainty over brags that the asia focused lender says they had a better than expected first quarter with a net profit of four point thirteen billion dollars that number is up nearly thirty four percent from just over three billion dollars a year earlier h.s.b.c. was looking to net at least three point seven billion dollars according to their own estimates last month and while h.s.b.c. has beat their own expectations this quarter there are still worries about credit and banks that related bumps in the near future h.s.b.c.'s chief financial officer ewan stephenson told the wall street journal if there is one market in the world we're watching closely for credit it would be the u.k. we have been growing the top in topline nicely but obviously accident certainly
creates issues for business and consumer confidence and that's what we're seeing. in less favorable news italian american karma car maker chrysler says profits were down by a third in the first quarter company management blame slowing sales in its most important markets and losses in china and europe for the disappointing results in fact the company said sales were down fourteen percent across all of their markets but such was sure market watchers at the side still falls in line with their expectations chrysler also plans to give nearly two billion dollars to tesla in order to help that troubled company the emissions targets chrysler plans to buy missions credits from the electric car maker in order to hit carbon dioxide goals and avoid heavy fines in the u.s. and europe. and norway's trillion dollar sovereign wealth fund is riding high on the results of investments in. tech stocks the latest figures from north as bank
which administers the oil fund formally formally named the government pension fund global document the funds third best quarter ever in the first three months of twenty nineteen and q one and twenty nine thousand the oil fund posted nine point one percent return again and again of roughly eighty four billion dollars investments in the tech sector pulled the overall number higher with a seventeen point six percent return on investment in familiar names including the so-called fang tech stocks oil fund see a sling stud held the result as quote the funds best quarterly return measured in cronan ever slinks that also caution however that quote as a major equity investor we must be prepared for large fluctuations in the funds market value in line with developments and global stock markets. and joining us now to give us an expert perspective on the state of global oil
markets is the president and c.e.o. of sprue u.s. sprott u.s. holdings rick rule thank you for being here rick and welcome to boom bust. my pleasure thank you now first of all one global factor we've been keeping a close eye on here is u.s. sanctions against iran waivers for imports of iranian oil by other companies officially expired on thursday per the previous announcement of the coming move some major consumers lost their waivers notably china and india as well as major allies of the u.s. japan and south korea but market reaction so far seems pretty muted what outcomes do you think the real do you see for the end of the impact of the waivers and the full application of these sanctions what do you think the effects will be alternately in global oil markets. i think in the near term it will make markets more volatile the united states' ability to apply extra territory. real sanctions
is diminishing over time as other countries find ways to trade with each with each other irrespective of the wishes of the u.s. government that being said iran is its own worst enemy in the sense that they haven't made sufficient sustaining capital investments in their own oil industry to be a viable competitor over the long term there's been too much diversion of free cash flow in iran from the oil business to politically expedient domestic spending programs so in the longer term iran has itself to worry about rather than the us now when secretary of state mike pale announced the end of the waivers he set a goal rhetorical at least bringing iranian oil exports to zero experts don't seem to think a total cutoff is feasible but how low do you think they can get that number. i think in the near term they can cause a lot of problems for reining in exports but we've tried that when i say we the united states has tried that before and borders are notoriously porous you'll
recall that the united states also tried it in bar goes against iraqi oil which worked sort of but didn't work as well as had been intended. right and then with sanctions you know there's always the collateral impacts and then in some cases sanctions if the government has them properly or reacts to them in a certain way rhetorically they can in some ways sort of get people to rally against an outside power so we'll see if that happens we also discussed earlier with steve these new u.s. job in g.d.p. numbers and those signals seem to be pushing oil up higher today alongside and of the waivers of course in this deflated coup attempt this week in venezuela are those factors enough to hold prices up for a while or or are they even the factors that we should be watching if we want to know where oil is headed. you know i think that's a very interesting question which is a long way of saying i don't know my suspicion is that the cure for high prices this high prices and the cure for low prices is low prices the truth is again the
venezuelans are our own worst enemy not sanctions venezuela's ability to export oil like mexico's ability to export oil has had a lot to do with a lack of sustaining capital investments war more that than to do with politics i would also point i'm not an economist i'm a credit analyst but i would also point to the fact that a lot of oil pricing has to do with the strength of the global economy we have been in a nine year economic recovery in my forty years of experience a nine year old recovery is becoming long of tooth to the extent that we can continue to enjoy global growth particularly growth in big countries like the united states the oil price will stay strong but oil bulls need to pay attention to the broader economy and in particular as an example to signals like a rapidly declining copper price which might suggest that the economy going forward will not be as strong as it is today very interesting data point at the end there and looking ahead crude oil inventories in the u.s.
have reportedly been rising in recent weeks but at least one columnist at reuters says that's you know that's the usual seasonal trend and it's actually below the level of past years the usual rise at this time of the year despite a lot of maintenance work at refineries and suggest that that could mean tighter supplies and higher prices later in the year what's your take on that. again i think that's a function of the summer driving season the strength of the economy the truth is the tonight a states is doing an absolutely spectacular job with production growth as a consequence of very low interest rates like low cost of capital and the convergence of technology that's making shale plays work so well right shale is certainly a hot topic in the in energy sector right now we've got the end of darko deal fight and fight for that acquisition going on right now in the permian basin as well turning to another area of your expertise from oil to precious metals there is this case of the former precious metals trader of j.p.
morgan john edmunds mr edmunds pled guilty last year to trying to manipulate markets for a six year period at morgan from twenty in two thousand and nine to twenty fifteen just this week his sentencing was postponed for another six months now edmonds says he learned those illegal tactics from other more senior traders at morgan and his case resulted in a blizzard of lawsuits against the firm so what is the current and future impact of this case on confidence in metals markets or is there still a corrosion of confidence in them in the markets. i think people close to markets are always concerned about short term manipulation if they can manipulate a market as large as life board that is global interest rates the ability to manipulate a smaller market like precious metals is of course always always present now many people in the gold trade like to blame what they see is low gold prices on manipulation i would suggest that instead that's due to the strength of the us
dollar but again i'm not an economist i'm a credit analyst right right and in your work you know that we look at a lot of different factors we try to look at the economy the world and finance from a lot of different angles from your view as a credit analyst looking at the global economy what is there one factor out there that we that our viewers should be looking. that isn't getting attention right now what do they need to know that they're not hearing about. you know i think global debt is a big problem on the one hand i'm amazed by the pace of technological change in the fact that we can do more and more with less and less that's a good thing because we all owe each other too much in allegedly the strongest economy in the world the united states there's twenty two trillion dollars in on balance sheet liabilities at the federal level that's before state and local and also ignores off balance sheet liabilities so if i was going to be afraid of one thing i would be afraid of the fact that investors around the world seem to confuse
liquidity the fact that there's lots of cash in the system with solvency in the sense that we can expunge the debt that we owe each other at the public and private levels yeah that's a very important distinction there liquidity versus solvency very very up distinction thanks for joining us that was rick rule president c.e.o. of sprott us holdings thanks for joining us. thank you. that's it for this time you could catch boom bust on direct t.v. channel three twenty one dish network channel two eighty or streaming twenty four seven on pluto t.v. the free t.v.'s channel one thirty two or as always hit us up at youtube dot com slash boom bust our to see you next on.
they can come and blow our brains out at any given time and we can't really do anything actually america is the only country in the world where you can kill people outside of war and legally get away with. all of the fire crawls still berea all the trouble here's three failed the point it's hollow flying to k.k.k. exists because america wants it to exist they have the biggest terrorist group to ever operate in this country and they're dead to media worse also than the people who destroyed the world trade centers of the scroll why. is it
a period of sort of little bit special if bush bloody. well the money would be needed it was my job to. look. losing because its appeal is a couple of a good enough at him yet that all laong solicit the good it would put me on the net if that is the liberal socialist that mean that you'll know paul. enough well it was pretty good way to lose a. little bit of what you still do which could be a hope of it only done long ago but i think. your idea. is your money you know did you storm the lead you see them i looked up the mood should badgered you in the clue trick of crystal some are very. good politicians to. put themselves on the line. they did accept the reject.
president putin and a trump discussing the unrest in venezuela and a potential nuclear deal for north korea in an hour long phone call. a u.s. congresswoman says washington is partly to blame for the turmoil in venezuela and the secretary of state brands her comments and a disgusting. french interior minister is accused of lying out for claiming may day protesters attacked staff at a paris hospital. and a facebook is accused of censorship after banning some prominent right wing commentators for alleged hate speach.