tv Boom Bust RT March 2, 2020 9:30pm-10:00pm EST
entries are though questioning the united states' efforts to restore stability and security in parts of africa last year there was a record high level of islamist activity currently there are roughly 2 dozen militant groups operating in 14 different countries but despite the rise in violence washington believes it's a positive influence in africa tomorrow security demands leadership today we're trying to make sure that we are efficient with our resources and we're not depleting efforts and whatever it is doing on the african continent is complimentary so the bottom line is the united states is not walking away from africa we're committed and we remain engaged military claims that this is a light footprint but you know it's hard for an elephant to leave a light footprint and certainly the pentagon is a giant elephant and its presence in any country instructive is a place of and if it comes at the same time that there is comes
a concentrated economic dislocation then the whole thing the stabilizes the entire country and that's what it's meant to do it's meant to assert u.s. military power not economic growth and development as a matter of fact economic growth is there's an effort to destroy that and to push countries backward into almost a colonial position of the past and that is really us. is an attempt to do to restore it to old colonial elations. headlines in 28 and a half minutes this is arch international. world is driven by a dream shaped by those. things
times kind of an inside the country breakdown of how it applies to tell us what's going on in the u.s. and chinese markets are on the rebound but the manufacturing sector has taken a hand due to the fire it will break down the recovery effort. some of the outbreak tick-tock has played a major role in popular culture but now the platform is playing a key role in global health efforts we'll fill you with so much to get to on a very busy day so let's get started. the number of confirmed cases of the crowbars has increased more quickly outside of china than inside the country over the past week. and yesterday china reported 206 cases of 19. 22nd john what 8 only 8 cases were reported outside who'll be probing 8779 cases of 19 have been reported to. 61 countries the it makes in that it probably. cornea italy.
and japan out of religious concerned with the largest number of cases outside of china south korea has reported $26.00 deaths with nearly $4500.00 total cases and according to iranian officials deaths in the country due to the virus have risen to 66 on monday new cases of the virus in italy alone and jumped by 50 percent. the total number of people who are currently infected with corona virus is $1577.00 of those $798.00 equal to thinking one percent total are in home isolation so they have no symptoms are asymptomatic or of absolutely mild very mild symptoms so there is no need for hospital treatment 139 are hospitalized with symptoms of 41 percent of the total and 140 people equal to 9 percent of which $106.00 in liberty are in intensive care the european union commented on the situation announcing that on
monday the risk level from the virus has risen. the c.d.c. has announced today that the risk level has risen from moderate to high people in the european union another with the virus continues to spread worldwide there are now more than 90000 cases of the virus with just over 3000 deaths now we should know however more than half of the individuals who have reportedly been infected have recovered. meanwhile here in the u.s. officials are reporting 6 fatalities related to the virus and the 1st contraction in the country's largest city r.t. correspondent trinity charges has the latest the 1st case of the corona virus confirmed here in new york the patient a woman in her thirty's who contract of the virus after traveling abroad in iran and although with the 1st confirmed case here in new york officials say it's not the last today concerns growing as the number of coronavirus cases across the country continues to rise seattle area officials now confirming 4 new patients have
died from covert 19 bringing the total number of deaths in the u.s. to 6 this as new york officials confirm the 1st case of cold in 1000 in new york city the patient a 39 year old health care worker who is self quarantined in her manhattan apartment contracting the virus after traveling to iran there is no doubt there will be more cases. where we find people who test positive for washington state currently has 18 cases 14 of which are in king county where a nursing facility is now suspected of being the site of america's 1st outbreak of the new coronavirus washington now in a state of emergency room the beginning stages of our investigation and new details and information emerge over the next days and weeks and while rhode island and florida are also reporting cases the number of patients are growing in california and illinois now at least 95 cases in the u.s.
and more than 89000 cases worldwide now travelers entering the united states are facing new protocols all this as u.s. officials are increasing the travel advisory for italy and south korea to a level 4 which is the highest level now many are wondering if officials are going to place a travel advisory on domestic travel as well to stop the spread of this deadly virus reporting for boom bust trinity charges are to. the rumors of an emergency rate cut have grown louder as bloomberg reports the fed is now prepared to reduce interest rates later this month goldman sachs sees reductions tolling 50 bit by march 18th coming in tandem with cuts from the euro area canada and the u.k. we should point out that the last time an emergency cut was delivered and in tandem was in january of 2008 the bare hope of a rate cut is giving the markets a boost as we popped up this morning up over 3 percent following the steep losses last week in spite of the horrible china economic data report and where manufacturing activity came in at the weakest level ever both china and the u.s.
traded on monday as traders have been conditioned to buy on any weakness the shanghai composite closed up more than 3 percent on talk of opec supply cuts as factories start getting back to work japan stepped up as well with the b.o.j. aggressively by $926000000.00 worth a record amount worth of japanese stock e.t.f. on monday to stabilize the market amid all the debt buying treasury yields are massively lower on the day. as the 10 year hit a record low of 1.03 percent and gold caught a bid rebounding back above $600.00. can you give us their take on the market outlook and how things are shaping up we bring in todd horwitz chief strategist of baba trey and t.j. walk ins director of stock at sublight trading so about let's start off with you the last time we seen this coordinated central bank after it was in 2008 but that's still wasn't enough to hold back the correction and then subsequently the rest so will this just be a repeat is it still too little too late. the
more than a dead cat bounce today i think you already saw the fed is starting to panic when they came out friday afternoon and said that everything's ok you know every time something tells me everything's ok that means it's probably not they're going to probably cut $25.00 to $50.00 basis points and it's not going to be enough the markets are still overvalued and already seeing today is a giant dead kid pouncers they say a rip your face off rally this should probably fade and we will see a lower price once again i still think we'll take out the lows of last week and probably lower than that nothing is changed from the data you know of the bad made in fact in the bad numbers that are out there so again we've got a lot of issues out here and the fed is trying to catch up which is always the case they always run behind which is why they always screw it up and i want to follow up on that will cutting rates even do anything it won't help to insulate the u.s. economy from the negative effects of the outbreak and we just saw now the effects it's had on the chinese economy and how much that cost them is the u.s.
prepared for the outbreak to hit. well i think the u.s. is going to be somewhat prepared and the rate cut is only making dollars cheaper which means it will benefit the very wealthy it will not benefit the air average guy in the street the average business street will not have any benefit from these already because they have no access to him so it's really more of a of a a mirage that you see when these rates. lower the endgame is is that the fed can afford to lower rates because of the worldwide and we're borrowing that money so we can pay less is still attract a lot of cash to borrow from them so i think that would be the only logic behind it but there are actually as usual you're parroting what it's well to let the system all right now to g. futures are implying a full 50 basis point cut by the u.s. fed but that seems really aggressive given drone policy reluctance what's going to happen if the market only gets a $25.00 basis point cut will we start selling off all over again to see the exact
same thing we saw last week. is going to be challenging to figure out what the market's going to want to do i mean $25.00 basis point cut is probably going to do something there's probably going to be a bounce but we need to figure out if the market's actually going to throw a bit of a hissy fit and didn't really like that it didn't get a full 50 basis point cut my concern though is that if we do get a 50 basis point cut then it might actually reinforce the panic situation for power in the fed and so i think that they're probably going to be a little bit more measured and say hey i think we got this under control ok we'll cut a little bit but we don't want to give any panic signals by cutting 50 basis points but right now we have green arrows all across the board as like the market is pretty much already pricing it that we are going to get a $50.00 basis point cut so we're up over a 1000 points on the dollar ready simply based on rumor and speculation alone so t.j. we have manufacturing data out now and in addition to china we actually have japan germany france italy and south korea all of them reported
a contraction and output so the i.m.f. and the world bank are now ready to extend emergency financing in order to blunt the impact so well if something like that look like. this kind of stuff is actually very concerning for me what i kind of look at this i just say that they're they're just having steroids to ration anytime there's a little bump in the road they're going to be throwing money at it as. said earlier it's like well this doesn't necessarily. effect the little guy on the street or the manufacturing like we need to be better prepared for a of for individuals for individual companies to to handle and weather situations like this they need to have their own plans in place for disruptions in product supply and they're there down lines and all that but when it comes to just throwing money at the economy and just putting money in the market i think it really misses the point and isn't going to really help us bring back any kind of structure i mean we need to take care of what this thing is and how it's affecting the mechanics of our economy and not just the financial side of it. now but in
china there are also paying playing the bad news is good news narrative too with the awful manufacturing data traders are now expecting more fiscal spending by the government and more infrastructure spending how much longer can china sustain this for given all the measures it has already put into place as well as its widening fiscal gap that we're seeing right now. because certain there are you know they're already on 55 percent of the japanese stock market i mean you look at japan started this a 99 when they made the horrible decision to buy a pebble beach and well over paid for it they've been chasing that since 1989 here we are 30 years later and they're still in the same predicament so they keep buying so i think this is if you want to lower your currency to 0 you could continue to pretend that you're monetizing this central banks of these entire systems are all i get a big mirage they don't do anything but destroy the wealth of the average guy they
take everything away from small guys because this one guy still got to go out and pay a ridiculous right so they could go ahead and do it they want to do but at the end of the day they better figure nobody but the very top end of the curve and that's just ridiculous it's not t.v. i'll be getting overly bullish today and extending this rally on that step by the market is up over 3 percent now but the data released on both china and the u.s. they showed back on love so did we win. bottom out or is there still more room to fall farther as more date negative data gets released subsequently. one thing that i've been telling my subscribers this whole past week is just because they're moving averages or their support areas or there's price congestion doesn't mean anything when people hit the eject button and want to get out of the market when prices go down they just blow through everything and i think this week has been a very clear indication and signal of that actually people are just watching it maybe for the 1st time because we've been in such a strong bull market for so long as far as today yeah i do think today is
a bounce i prefer to usually look at and actually see if we retest some lows i wish i had my charts right here but i'm looking for price to get over the 50 minute 50 eventually the hourly 50 to use those support lines for moving averages and i want to see price actually come back down and if it's going to retest this low that we had from late last week i got to see a hold in order to go up and then we'll kind of reassess it from there everything just bounce right off the 200 day horowitz thank you both. thank you. and time now for a quick break here because when we return chinese markets are on the rebound but the manufacturing sector has taken a hit due to the virus will break down the recovery effort. has played a major role in popular culture but now the playing a role in global health will do it and as we go to break here the numbers that.
and welcome back the corona virus has caused a key metric for china's economy to drop to its weakest point since 2004 china's manufacturing purchasing managers index fell to 35.7 in february according to data released by the national bureau of statistics on saturday this marks a steep decline for the world's 2nd largest economy which recorded a p.m.i. of 50 in january the country's non-manufacturing metric fell to 29.6. professor you worry as well the lowest reading ever now the slide in p.m.i. is mostly attributed to the measures taken to control the spread of the virus including quarantines restrictions of travel and factory closures and to take a closer look at the state of the chinese economy and how it might rebound we are joined by sue robb gupta senior asia pacific international policy specialist with the institute for china american studies throughout thank you so much for being here with us you know what now we already anticipated a slowdown in the already unstable numbers we've seen in recent years out of china but what does this use manufacturing slowdown mean for the country's economy when
we look at it in regards to the coronavirus it means they've taken a very significant hit from the buyers in terms of economic activity we don't know how far how the if they're going to have a v. shape rebound on aunt but it's a nice live taking a very very slow significant hit i think 1st quarter numbers will be very low and for the chinese government per se a day of very varied in terms of employment related issues and in terms of this s m e's getting access to finance the big guys can call paul there but although i mean most of the people who work in the in small and small and medium size industries. firms on its they're not they don't have access to money they don't and that's fine and they have made some significant efforts to try to stimulate the economy in recent weeks in this unclear lowering the cost of borrowing standing alone time extending terms on non-performing loans the p.t.o. he has also injected funds into the market and on the back of that the market is
over 3 percent bounce today on monday a lot so what else can they do in our testimony of the economy and is that even sustainable are we going to see a recovery given all of this injection or are we looking at something that will take some time a couple quarters to get back on track they could do more if they wanted to but i don't think they want to go down that route you know they can goes up the property market at the time it has been their goal to go to sort. to really boost the economy a kind of an automatic stabilisers for the economy but the chinese government consciously has moved away from that group model over the past couple of years and even to the depths of the recession that they had in the depths of the trade war that they had they did not stimulate the economy with with those tools so i don't foresee them doing it even now they're very their communication is still very focused on what it was in 2018 they need to take care of things like pollution anti-poverty and financial deidra skiing and i would also add out here that people
cards realize that the financial transmission mechanism doesn't work that well in china they can't toss a liquidity out into the markets it doesn't find its way to their semi's so you need much more targeted measures and they're trying to go down there and are we really going to be waiting to see what actually happens with the virus how this all plays out whether it's eradicated in the next month 3 months or 6 months before they really can make those moves to stimulate the economy further yes up to a point but if you want some sources and you want stimulus you want it now because the economy is going to boom on its own down the line so this is the moment to do that but but but as i mentioned you know what what is a little not as well understood here is the chinese government has been very very focused on containing this wires but actually from our early february onwards it became also very focused on the economic elements the world lot of various high level meetings on the how to manage the economic elements and that's where getting money to is so means ensuring that it doesn't take an employment doesn't take
a hit because people lose their jobs and just will not come back and small farms can't hang on hang out for longer than 6 months without financing so they have been very very focused on this round you actually mentioned you know coming off of the trade war fight that they have you know united states and really we're still kind of there but we're moving to phase 2 but in phase one you know with. what's happening with the crowbars are we concerned about the force majeure clause being instituted because they can't keep up with all those buys that they promised whether it's agriculture goods or steel or whatever it might be. perhaps still a little early to say in this regard i think they would like to have 4th quarter data in of course they have february daytime but they want to use without a little longer to understand exactly the nature of the hit their economy is taken before actioning those provisions and it's also important to remember phase one apart from the market purchases had a lot of other small targets which they needed to with the chinese side need to do
in terms of its agricultural biotechnology approvals regime by this need this has to be done the strain that had to be done a lot of that is bureaucratic and regulatory and those things can be done it's just market purchases are being held back but at this point it's too early to actually activate their claws i would say and now i mentioned earlier we think more cases of the crab are buyers popping up outside of china than inside the country so with all the quarantine central restrictions being left dead what i hear about the situation with the virus inside of china well i would still say it's grim out there i think the government feels that they have by and large kind of got it under control so right now it's kind of it's the digging out stage there into that stage but i mean there were 200 cases yesterday and that is a significant number by any standards anywhere and i may be places like south korean or have large numbers but china's right on the top still in terms of new
infection rate numbers and so i mean it's still very grim out there and this is not a time to ease or relax frankly d.c. manufacturing being shifted outside of china the model that we saw in the early days of the war to a point but not really you know though there has been kind of there's past and alice with so many of the of these natural disasters which happen for example. you know thailand had huge floods bangkok a lot of japanese car auto investment there and the tendency is for manufacturers not to shift out because of these reasons because this could have happened in vietnam they go to vietnam and this happens in vietnam 3 years later it doesn't i don't sense that happening it's more to do with china trying to scale the ladder to high quality growth and many of the other countries companies seeing that china is becoming a high cost production location and moving out but not the wire asperse as well.
of the institute for child american studies thank you so much for your time that it welcomed. the u.s. is still making life difficult for huawei barring the tech giant from doing any business with u.s. suppliers including selling at the chips needed to make its base stations the huawei not to be the terror is finding a way around the strict limits and as ramping up its own capabilities to manufacture the gear its efforts to become self-reliant are paying off as huawei in the 4th quarter sold more than $50000.00 of these next generation base stations that were free of u.s. technology these devices were outfitted with chad from high silicon made by taiwan semiconductor manufacturing co the world's largest chip foundry hollow exact and dank says that the longer huawei goes without access to u.s. suppliers the more unlikely it is to be able to return to using them that's a heavy blow for the us i mean sector which in 2018 are no more than
$10000000000.00 from huawei purchases alone chip maker xilinx intel micron and broadcom have all report of falling earnings or reduced or eliminated sales to holway american chip makers are arguing that the banning the supply of parts the huawei can get elsewhere is counterproductive and that the lost revenue hurt as r. and d. budget and its ability to advance chip technology in the future washington meanwhile has not given up on accusing the company of being a threat and continues to look for ways to curb the world's largest contract maker on the grounds of national security. and the united states trade representative's office issued its annual report to congress on friday saying the plan to hammer out trade between deals with the u.k. the european union and kenya in 2020 in the 3 $138.00 page report the u.s.t.r. said $2100.00 was a quote historic year for american trade touting the phase one agreement with china deal with japan and getting congressional approval for a new north american trade deal now the trade representative also applauded
a world trade organization decision giving the. u.s. the right to impose tariffs of $7500000000.00 in e.u. goods after a spat regarding aircraft subsidies given to airbus now that was where the positivity regarding the w t o had ended as robert light hiders office said it will presume pursue reforms to the trade organization claimed the body had strayed far from its original mission and purpose taking issue with the quote outdated tariff framework and quote that is no longer plausible in the current global economy. tick tocks relevance is growing as a w.h.o. join the social media platform on friday in an effort to spread accurate information about the coronavirus to the apps user base of 500000000 active users tick-tock is full of names about the coronavirus music post the everything from coughing pranks to protecting to be infected other videos share posting claims that vitamin c. and garlic can protect you from the illness the w.h.o. is attempting to get accurate information out and fight misinformation regarding
the virus on platforms like facebook twitter and instagram now interestingly enough one point of contention being brought up is the efficacy for face mask the w.h.o. is saying that face masks are not effective in preventing the spread of the virus and not necessary the video went as far as to say that people should not buy face masks as they create a shortage for health care professionals who need them so that's it for this time you could catch boom bust on demand on the brand new portable t.v. have available on smartphones through google play and the apple app store by searching for double t.v. or stream it to your t.v. by downloading the portable t.v. app on apple t.v. and online a portable t.v. and you can also find our coronavirus tracker on the bottle t.v. ad where you can get the latest news and information about the bottom right of the virus and as always check us out on you tube dot com slash boom bust archie say next on.
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