tv Boom Bust RT November 19, 2019 1:30pm-2:01pm EST
solomon who is making this i.p.o. the centerpiece of plant economic reform saudi is officially combining the i.p.o. to the kingdom and gulf states aramco is the world's most profitable company but this is a bet on oil at a time when global demand is expected to slow from 2025 due to measures to cut greenhouse gas emissions and the rising use of evey's there's also the overhang political risk as saudi government will continue to control the company given these risks for an institutional have been unwilling to sustain the 1.7 trillion dollar valuation and aramco now has instead that has to rely on local demand this is a huge blow as the i.p.o. was meant to bring in a large pool of quality investors who are also shareholders and around goes competitors such as royal dutch shell and exxon mobil aramco will not be able to sell shares directly to investors in the u.s. and other markets as i.p.o. will be restricted to saudis and a select group of 1500 qualified foreign investors permitted by market regulators.
and for more on this and other market movers we are now joined by peter schiff c.e.o. of euro pacific capital and todd bubba horowitz chief strategist above the trading so let's start off with you it seems like the only way that saudi aramco can sustain its nearly 2 trillion dollars valuation is by artificially buffering it from the global markets and offering a sweetener to investors in the form of local banks making loans available for the sole purpose of investing in this i.p.o. so what is the purpose of this anyways they don't need to raise any more money it's already the world's most profitable company and its previous goal of getting around co circulated and diversified outside of this region seems to be a moot point if now they're limiting it to the only domestic investors so why go i.p.o. now. do we do we know they don't even want to i mean do we know there's a role for a little gumby in the world i mean i think a lot of questions and what the real details are and i'm not saying they're not i'm saying they're coming you're bringing this idea to market because maybe they want to have the. the billions of dollars to play with maybe they don't mind paying the
4.4 percent dividend which is higher than the other is better than their competitors and what they want to i mean again there's a lot of reasons to go public but again i think the other thing we're looking at is the overall decreasing demand plus the fact that they have actually a general competitor in united states i mean we can produce enough of our own oil we are no longer held hostage by opec aramco or saudi arabia so there's a whole bunch of things that could be korea's by the end of the day i mean who couldn't use the extra 20 $627000000000.00 laying around and just to put it back and flush around the markets i mean you know to me it's just easier for them to do so and it doesn't cost them anything and again we know that their profits are really there. all right peter let's look at this in the other current reigning i.p.o. leader ali baba's also planning the secondary h.-k. list in hong kong listing they could raise 13800000000 so it's a trade november 26 why do you think they're looking at this secondary listing now . well you know it's an old saying on wall street that you feed the ducks when
they're quacking and i think that's what they're doing right now and you have some markets making record highs you have some special demand for the right issues not always choose are there a lot of speculative stocks that are blowing up right now but wall street investors are still buying the ones that have momentum and i think the balboa is taking a look at that and they think they could get a good price so they might as well sell so if alibaba has such good momentum behind the stock why this market valuation half that of amazon when currently they do even more business more revenue that even higher than amazon already. well it's hard for anybody to have a valuation is high as i was on i mean there's a lot of speculative money that's in that stock and i'm sure one of these days it's coming back down to earth i just don't know when that is. so now peter let's go back on to the domestic front we have conflicting reports and sentiment yet again from china and the u.s. the mood in beijing right now is increasingly pessimistic as trump refused to scrap tariffs dampening hopes for a resolution the u.s.
however seems more optimistic with the markets up today and larry kudlow we had already yet again that they are getting close so why are we getting that conflicting reports here. well 1st of all i think the chinese are actually posturing for a negotiation you know if you're negotiating with with somebody you don't want to admit that you're close to a deal you want to say that a deal is far away because that way you can try to extract more concessions from the other side to get a more favorable deal so i think when you hear the comments for china that's what the chinese are trying to do but i think trump has a different agenda i was in trump only cares about boosting the stock market and he knows that every time. he comes out and says that a deal is close we have a deal it's going to be great he gets another $1200.00 out points and so that's what he cares about and so as long as the market is going to keep running every time he cries wolf he's going to keep crying wolf what do you think about that but do you think that's true that this is just about boosting the market and ultimately
is there ever going to be a quote unquote winner associated with this trade war anyways. first of all i don't believe that we all know the president wants the markets go higher but i don't think that he's using the china deal as a reason the public higher because typically get some bad news it flushes right down for a few months i was but i think one thing you're seeing here is this in the markets are going higher because there's no place else to go with your money today if you want to get old you have to go to united states stock market so that's what you're seeing is this money chasing and chase and is the market overvalued probably will it sell off at some point it 100 percent will sell off heavily at some point but the question is is it tomorrow or is it a year from the morrow or 5 years we don't know when that sell is going to come we know it's coming it always does it's been the history of all markets that there's always a meltdown but again do we know what example we have no idea we have to continue to chase it up and that's what you're saying you may be seeing as they say the fools rush in right now maybe this is near the top but at the end of the day the markets go up until they don't and we just have to be prepared to sell it you know as
a trader and to be prepared to sell it when it's time to sell it and that wouldn't be until it started come down certainly you don't want to try to pick that up with bubba speaking of unsustainability here despite the trade to the downside the market continues to grind higher like we're talking about but is this really due to trade optimism or is it more likely the fact that the fed and the e.c.b. they keep injecting these billions tens of billions of dollars in liquidity every single month which you know clearly is artificially boosting the market so how much longer can we sustain that. well that's where he's out of there is out. there from here peter for you but. go ahead get a yes as lays long as a market share remaining with free money is long as they continue to give it away you debts where the money's going to go right i mean you're going to go to get the highest return the lowest borrowing cost of the highest return and that does this liquidity issue is ridiculous ok because if you know negative rates and what they're doing it is totally off course and of course the fed you know the
manipulated the dollar and manipulated the rates forever and they have no idea what they're doing with it i mean it is really a lack of common sense but at the end the day present have to be right and they could lower rates here only because the old we can still borrow that money which is what we're doing that we're borrowing money we could write a lot less a rate because we're still at it at one full point earth there are 3 quarters we're still the best game in town. the idea that that sentiment that right now there's nowhere else to for investors to pull but that money company u.s. equity markets for the precious metals have been getting a lot of love killed especially with palladium leading the forefront instead of the regular gold. i disagree with that completely i think there's pretty much a lot of good places that you could put your money long term that are going to be much better than the u.s. stock market i think u.s. stock market is dramatically overvalued and the reason it is going up is because the federal reserve is creating money it's doing q e $4.00 but you know investors expect q.e. 4 to be like q e 3 but there was a big difference you see when the fed did q
e 3 investors were still foolish enough to believe that that was the last time they were going to do it they actually bought the fed when the fed said that they had an exit strategy they were going to shrink their balance sheet they were going to normalize interest rates the markets were looking forward to that and they thought that what the fed was doing was working but it didn't work it was an abject failure that's why they're doing it again but soon the markets are going to discover that q.e. is permanent and that there's never going to be a real reduction in the balance sheet the balance sheet is going to grow in perpetuity and i think we're going to have a dollar crisis i think we're going to have a sovereign debt crisis i think this is going to end very poorly for people who have been enjoying the paper gains in this stock market bubble and i think the smart money is already out but if you're if you're if you're in you need to get out and look at other stock markets that will benefit from the dollar's demise and that will benefit when money is allocated out of u.s. assets to assets in other parts of the world and yes you mentioned precious metals
gold is a much better place of the u.s. stock market i know that gold has been outperforming the stock market over the last 510 years but it hasn't been outperforming gold since the beginning of the millennium you know gold is doing better than the dow if you start in 2000 but i do think over the next 5 to 10 years the price of gold is going to dramatically outperform the dow and paid a big unless there was a meeting monday between. and the fed chair powell now trump is known to attack and disparage powell for not doing more to stimulate the economy for not dropping rates negative and so right now are we seeing the independence of the fed in question and that can rely on the fed now as a backstop in a trade war with china. well i've questioned the independence of the fed for a long time in fact i think and it was really just a smokescreen i think the fed has been working hand in glove with congress and presidents for decades and i think that is continuing now under trump that is why the fed is cutting rates that is why the fed is doing q.e.
but it's not really stimulating the economy it's stimulating the bubble that's all that's happening and donald trump was correct when he criticized janet yellen for pursuing these tactics when obama was president and now he's applauding or actually still criticizing powell for not doing enough he wants negative raise he wants even bigger q.e. because he doesn't care about the u.s. economy all of this is counterproductive if you care about the u.s. economy all he wants is to make the numbers look better he wants to get the stock market to go up so we can claim that that proves that he has a successful presidency but the reason the fed is pursuing these policies is because his presidency is that big a failure as obama's and get your last word on this because we're almost out of time but what are your thoughts on that because obviously connecting not only the fed to interest rates and and the printing of money but also to unemployment the fact that they have this dual mandate that really doesn't seem to be under their purview does that muddy the water even more. there are many that supposed to be
for ever the fed is stayed away from what the real mandate is forever they they're worried about a number of things that don't make sense and are probably not totally legit is what they've done but they do in many ways because they do have congress but again one thing is to peter's point the overall the best investment last 100 years but the u.s. equity market you can say whatever you want about the bubble and they're going to collapse. but the best investment in 150 years is when the u.s. equity market continues to be the best investment eventual so often break and will be time to maybe run somewhere else but for now there is money going to continue to chase this market up i thought the time we have now taught horrors about the trading peter chef of europe with a capital thank you. if you. are the c.e.o. of t. mobile john leisure will be stepping down next year as you will be replaced by the current t. mobile president c.e.o. mike severed the news isn't exactly shocking several was already expected to take
over after t. mobile is $26000000000.00 other merger with sprint is complete leisure to go over to mobile in 2012 making aggressive moves including being the 1st to offer unlimited data plans and paying early termination fees on behalf of customers who would switch over from virus it by the way everybody has copied him since then so the question now is this where is leisure heading just last week it was reported that he was approached by softening to take over as the c.e.o. of we work but only a few days later ledger said that he is not interested and that he was never in talks to take over we work. air b.n. b. has close to $500000000.00 deal to partner with the international olympic committee to sponsor 5 olympics and paralympics over the next 9 years that includes the upcoming 2020 tokyo olympics all the way through the 2028 l.a. olympics the i.o.c. president says that the deal will not replace the olympic village where all the athletes from around the world stay but instead will guarantee accommodations for
families of athletes visitors and officials one of the goals of their agenda is to make the olympic games more feasible and more sustainable there the partnership will greatly help because it will provide a combination that will greatly reduce the costs for the olympic games organizers and all the stakeholders the total list for cities for upcoming olympic games include tokyo beijing paris milan and los angeles who are all major rental hotspots for air b.n. b. . and so what do you think about that i mean obviously it's it seems like it's a little bit of a forward thought for the olympics to say well let's connect ourselves in this way but they do want to retain the olympic village so they're not all the other b.b. no and now the biggest. how is air b.n. b. going to manage all of this because they've already previously had problems and lawsuits concerning with parties in their house should any of the lyrics are going to be the biggest party of them all so how are the hosts going to manage all of this rioting essential letting go and then the very thing he is obviously when you're in a city like tokyo or beijing or even los angeles right air b.n. b.
it can be spread out all throughout the city so do you have centralized locations that are close enough or people having to commute from pretty far distances and i guess that might just be the case regardless of where you are when you're at an olympic event not to mention now at these high profile events safety is going to be a major issue is that how is air b.n. b. going to consider that safeway safety and privacy rights by the way in the last segment we just did they were talking about storing value and all that nobody even bothered to mention cryptocurrency which maybe they should have by the way speaking of which after the break crypto it's known as banking for the unbaked right but where do crypto firms go when their business is needed because sometimes you do you can for a promise is that they're going to be just that we're going to tell you how it works and why that company sees a bright future for the sector. plus the us supreme court is looking at a case involving google and oracle and it could have enormous implications for copyright law whether existing software can be used to build new computer programs or break it down and as we go to break here are the numbers of the close.
tough and on the flipside is the mcconnell way or both of us who. could so smooth to. a close in this way got to dog him so hard not to think of the other dismayed to see the look of a coward and i don't mean to start then if. this is the only thing that we do that is music because everybody fights his way.
to. the floor lookin for the feet found is the priest woody allen called the evil of the truth of. what i think is this is the fun that is all come from. same wrong. but all wrong just don't call. me old yet to shape our disdain comes to educate and in games from it because betrayal. when so many find themselves worlds apart we choose to look for common ground.
join me every thursday on the alec simon show and i'll be speaking to get us out of the world of politics sports business i'm show business i'll see you then. so i know as shocking headline but the u.s. banking system has never been a fan of crypto currency and for businesses that work in the crypto industry finding banking services has always been a challenge but now there is a new option for banking services for the crypto industry coming here to the u.s. it's u.k. based cash which describes itself as a banking service platform and it's about to launch bank accounts for crypto firms in the u.s. earlier this year r.t. producer brigid war spoke with kumar garage of about cash and the business opportunity of providing banking to crypto firms that have been shunned by
traditional banking and what they figured out that it's not like all the banks does not to want to give a construct to companies it's just there are plenty for that so the point here is that these banks have really want to go ahead and take also try these new technologies the problem is they cannot do that the existing one of it's the cloud . yeah and by the way banks do not want to work with crypto companies because their competition cash is new service is a partnership with metropolitan commercial bank that bank has said that working with crypto firms has brought more than a 300 percent increase year over year in the bank's non interest income. the metropolitan commercial bank has been in partnership with multiple capital currencies arm in addition to that they've been in partnership with pay basis for cryptocurrency credit card as well as the new one minera that has just launched in the u.k. as well yeah you know it's look i think it's great that they're doing this but the idea that banks are only doing it because they just don't understand is not true that if you're if you're a bank you control finance across the board they hate the idea of losing the swift
system they hate the idea of anyone being able to go around them remember the original calling the original white paper for big koreans describe it as removing the banking system upset in it and moving the peer to peer transactions and so why would beings like anything that disrupts their business model this is absolutely perfect for every single segment that the bank currently considers a high risk segment that includes everything from the thing to porn to cannabis to all those sectors that the banks currently refuse to work with it's called opportunity my friend. for the united states of. the united states supreme court has agreed to hear google's appeal of a controversial ruling that many experts believe is detrimental to the software industry the case enters on who has the right to use complex software programs that were once considered open for everyone to use legal journalist martin contributor
with america's lawyer joins us now with more on why this case matters. this is a big deal so what is the ruling that google wants the supreme court to overturn. it is a big deal and i have learned a lot about software today so in 2000. routine the federal circuit appeals court offended a longstanding belief that no one could use copyright law to restrict the use of application programming interface or a.p.i. that's essentially the glue that holds complex software systems together building block a few well but all that changed when the federal circuit appeals court ruled that a.p.i. has can be copyrighted and google has violated oracle's copyright by reimplementing a.p.i. as from their java programming language oracle sued google for infringing its copyrights when google created an independent impled implementation of that program and the case has been working its way through the courts ever sense with the federal circuit court issuing a 2nd controversial ruling in 2018 related to the same case which basically said
software developers are not free to use existing software interfaces to build new computer programs and that google in fact was not free to use the java a.p.i. back in january google asked the supreme court to overturn that controversial ruling and this week the high court agreed to hear the case but we don't know exactly when that will happen yet so why the scholars right now think that the federal circuits ruling thought detrimental. well it goes back to simple communication really some experts including public interest groups and software companies will never have weighed in on the case saying the decision has far reaching implications that threaten what they call the interconnected software ecosystem in other words the software programs need to be able to communicate with each other they're very similar in a lot of ways and many ways they communicate are basic building blocks so in order to be efficient they want to be able to to use these programs and using similar a.p.'s can do that so this ruling has created some uncertainty as well about how
the law will be applied in the future if you're developing a software program how do you make sure you're not going to get sued if it looks something similar if you've you know accused of ripping off someone else's program so legal scholars say the supreme court also needs to weigh in on this to create a uniform legal standard because if they don't it could cause some legal chaos yeah . obviously it makes sense you don't want everyone building in silos because as you said the software can't talk to each other and then always obviously there's going to you know a position of open source software where everyone is kind of sharing it's not like google couldn't pay kind of a royalty in order to use java they just choose not to do that is there any case law that backs up google's position that ultimately says we don't have to pay for this because unlike basically every other industry in the world this one is the exception. and that's essentially what google is saying and there's a fundamental principle of copyright law that said it's the protection of creative works but it does not extend ideas procedures processes methods of operation things
like that's why news operations can bounce off somebody else's new step they just have to do their own work to look into it so in the early 1990 s. one company lotus suit another company borland for allegedly ripping off some of their software and the 1st circuit court of appeals ruled with borland saying that they didn't that the software structure was a method of operation and outside of copyright protection so google is arguing that same logic can be applied to this dispute with oracle while liberals contributor to america's lawyer great stuff thanks for your insight. kylie jenner the baby of the car dash in general is selling a majority stake in our beauty business kylie cosmetics one of the world's largest companies and the largest fragrance companies with brands including marc jacobs and moore has agreed to pay $600000000.00 for a 51 percent stake valuing the company at $1200000000.00 cody who is sales based on covergirl and max factor has been on the decline as a struggle to appeal to the younger demographic will be relying heavily on kylie
and her 150000000 followers to lead its creative efforts and communication for kylie this will allow the brand to expand globally and enter new categories outside of the cosmetics still maintains control of kylie skin her skin care line and kylie hair her line of hair extensions she also filed for 16 new trade. back in may including kylie baby and the use of kylie for spirits liquor wine cocktail mixes non alcoholic cocktail bases energy drinks beers and smoothies this application also extends to restaurants bars and cocktail lounges in addition to booze the 21 year old billionaire is also applying her name across furniture home accessories and cookware the undisputed queen of trademarks is now trying to trademark the catch phrase rise and shine from her viral video in order to launch a line of hoodies and merchandise but unfortunately that didn't force it was that good copyright the phrase rise and shine which people have been the same for what 200 years and the part of the problem is that
a lot of times these like influencers want to pick something that is commonly used and they forget that with you know a trademark and copyright law if it's commonly used you can't suddenly decide that you're the coolest one saying that therefore belongs to you there was also someone who tried to trademark taco tuesdays as well that was me i confess no i really wasn't but you know what i'm saying you just can't do that on the other hand kudos to the general mean she's making so much want to know what to do with it and that's saying a lot for kurdish and because they just seem to turn everything into 60 more appliances trademarks coming up it's like living in kelly's world that's it for this time you can catch boom bust on directv channel 321 dish network to 80 or so me 27 i'm pretty easy to feed he acknowledges that me 9 i was sure this was christie's world and we all just live in it you can also hit us up at you tube dot com slash boom bust r t c m r. a
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