tv Boom Bust RT September 12, 2020 5:30am-6:01am EDT
the deal still needs approval by japan's parliament which would be passed by january well this comes as britain published an initial estimates on the country's growth for the month of july when a summit show that the g.d.p. grew by 6.6 percent this according to data from the office for national statistics the economy showed a decline of 11.7 percent compared to the same period last year and a full u.k. recovery is not expected until 2022. we focus a lot on equities but it turns out many of the biggest movers this year are commodities well oil being one of the biggest decliners down over 40 percent and precious metals were they are taking the spotlight as gold reach new all time highs just this year joining us now to discuss who must co-host and rick rule c.e.o. of holdings rick let's start there the bloomberg piece is it's highlighting this period as the age of disorder where a return to the stagflation of the 1970 s.
would be bad for stocks and even bonds but they actually favor commodities do you agree that that's where we're heading. i think frankly. we're all on we go with. the artificially low interest rates which traditionally. the 2nd part of your. model which i think it's in. our financial instruments for our. long term. if you read it right. so what you're going to see is. later. policy and then the supply destruct. we're.
certainly well on the way. when people are turning to commodities versus you know as as a dollar continues to weaken kristie china seems to agree with this line of thinking as it's announced that it plans to boost its strategic commodities reserves to ease anxiety over both the energy and food security well what disruptions are they preparing for and what are they actually stockpiling. what china announced that starting and 2021 it will make quote men most purchases of crude oil strategic materials as well as farm goods so officials say that this is being done in order to ensure that china can ride out any repeat of this year's supply disruptions or any deterioration in trade relations with the u.s. so this is also part of its greater goal of achieving more self-reliance which is part of its 5 year plan to 2025 so while this announcement just came out traders
have actually been seeing the stockpiling this massive commodities hoarding already happening across the board for some time now china has been buying up raw materials and strategic goods far in advance of what the economy needs currently right now so what this means is that we should expect to see a drop in other imports which are still down heavily year over year as a world's largest consumer shifts its focus to commodities so this gives traders another kind of magic narrative to go along commodities versus other asset classes so in addition to the stagflation worries i read just poke about we also have the largest fire now supporting all of these commodity prices across the board so it seems like china is preparing for the worst and not expecting the geopolitical landscape to settle down and time so we rick you mentioned precious metals and seeing that increase by later in the decade but they are taking a turn lately to down side as the dollar recovered a little bit from the drop against that euro do you expect the gold rally to.
continue or where are we going to see it stand at this at this year's end do you expect macro policy in the 4th quarter to affect these precious metals in the short term. i do. i think. you find yourself. one of the prior who. did so who. really until you know the real interest rate is going through. a balance but my suspicion. is no stock. what about oil where do you see that going by the end of this year. never know what the. who are who or who are. who are.
trying to. play i think about one hour when we were. all in. the car and when. the fire. since it was this is what will bite you around i really. well over the next few months we're going to continue to monitor that given the demand it whether or not it goes up and down again depending also on the. numbers christi the us equity market meanwhile is poised to wrap up its worst too weak performance since march and unfortunately the timing is just bad as companies across enterprise software gaming and even health they're all set to go public next week and it's one of the busiest stretches for i.p.o.'s just the seer what's the
latest. so let's look at some very bad luck for these companies who plan to go i.p.o. next week because just 2 weeks ago it looks like it was the perfect timing for a tech i.p.o. the market was an all time high the optimism was not logical but it was infectious as a tech rally led into all the other sectors and kind of lifted them up too but then all of a sudden the market turned as soft bank exited its texture of the trade so now the market the tech sector looks pushy at best and unfortunately it doesn't look bad timing for all of the scheduled i.p.o.'s that we have on deck so some of the biggest names that are poised to hit the market including database vendor snowflake gaming company a unity software and tele health provider amwell so these come. originally planned to go public earlier this year back in april and may but they had to put their plans on hold due to code red so when the market then subsequently bounced back and next hit all time highs again these companies restarted the prep work to shoot for
post labor day i.p.o. but in their haste to restart the process and sell shares tech companies could find themselves bumping up against a shift in market conditions since reaching a record high on september 2nd the nasdaq has now dropped more than 9 percent ball until iraq and news offerings are not immune to the general market sentiment and it doesn't look like it's going anywhere we're going to keep an eye on that for you boom bust co-host christine and rick rule c.e.o. of holdings thanks for joining us today. on thursday senate republicans failed to pass a new coven $1000.00 economic stimulus measures in the u.s. well all democrats voted against the $500000000000.00 package given it was far from the $2.00 trillion that they were looking for well this leaves many struggling americans now doubting lawmakers will even be able to pass any more stimulus during the final weeks before that november 3rd election for a cross between politics markets and the economy we are now joined by artie's host of the scardino hughes scottie good to see you my friend let's start with the
senator good to see you too sir on thursday it failed to pass this this big new relief package this could have been the last vote before the election what's going on. well that's the thing once again politics is crossing right here and if the republicans would have passed this while yes it would have brought some relief to those on main street who are continuing to hurt after being crippled by the coronavirus it would also put a win in the democrat column because this was a democrat bill from the house we have been somewhat at a stalemate for the past few months since the 1st round of stimulus plans and so the republicans and their response to this very large bill that you mention that the democrats were pushing was they were going to very scaled down slimmed down bill that took out the stimulus check this 2nd round of stimulus checks but did include an extra $300.00 per week for unemployment fund as well as $157000000000.00 for small business so it would have been some extra early but that would have passed and the republicans would have had
a win so like everything else they are this year republicans and democrats refuse to give each other any credit even if it means those of us and main street america are different to be the ones suffering the consequences definitely our stimulus talks like you said have been of a stalemate for quite some time now now we're really close to the election obviously republicans want no more than that 1.5 trillion now there's a difference between the economy and markets the economy is obviously not doing well at all markets while they're struggling but they're up and down in volatile how is this going to impact the election. well obviously when it comes to the market you're going to be more stable going into any election but what it comes down to it on election day the number one thing that matters to voters is the price of their gas the price of eggs their milk and if their children are safe in school the economy is still the number one issue to voters today in recent polls it hasn't changed but if people aren't able to actually afford the lifestyle they want for their family and don't feel like they're going to be able to afford it they're going to ask for a change at the voter box so obviously if you are republican right now you are
wanting to stabilize it and make sure that the american dream is back if you're a democrat you're trying to show guess what we are far from recovery and the plan that we're on right now there isn't one according to democrats so this definitely is going to have an effect on the election as the economy basically just depends on whether or not you are feeling the true facts of the coronavirus yet or if you're afraid your might feel them in the future well that's what's interesting here when joe biden announces vice president pick kamel harris wall street cheered right they cite relief because they are part of the elite is this a win win scenario for those nations elite. well that's the thing the nations either way donald trump himself but he never really play you played the wall street game but he didn't actually play the wall street game call herself has actually very progressive she was noted as the 2nd most progressive. person in congress of the last term so wall street might be kind of
a false assurance they might be thinking they're getting more of a savage with her policies some saw herself actually more aligned with bernie sanders the same type of group that inspired the occupy wall street movement a few years ago so i don't know if it's a win win for anybody because unfortunately sometimes when wall street wins america loses so at this point the politicians are doing whatever they can to make sure that it's more about winning and getting back into their job not really worried about americans keeping their son i want to get one more question and before we end the segment about this stimulus. americans are suffering and employment rate is less a little bit less not as much as it was before but it's still close to a 1000000 that's still a lot now there's been talk about president signing the executive order to provide some funds to the sectors that need it most what are the likely what's the likelihood that's actually going to happen before the election. well the thing about this do is just remember this is 300000000000. years krone relief funds and this is money the president feels like he has the right to use it if it's going to
get him people and some relief to those he has no problems we've learned to sign executive order the question is it would have looked better to have it go through the right channels through congress if they could release to greed but it makes you want to work as 300000000000 that's already been appropriated why is it being used yet where is that money coming from why is it not going to the small business groups that still are looking for some sort of relief in order to keep their doors open ryan a lot of them that have had to close scottie nell hughes host of news is hughes thank you for making time for us my friend good to see you. thank you so there. goes your friday global market walk where we start in russia where the marks is down for the week russia's economic data showed a contraction of 8 percent in g.d.p. year over year for the 2nd quarter beat expectations of a drop of 8.5 percent now the ruble rebounded this week after hitting 4 and
a half month lows in asia now the markets there the shanghai composite is in the red for the week despite some gains on friday it lost nearly 3 percent on the week its biggest weekly drop in nearly 2 months as tensions continue between the united states and china in hong kong the hong saying is also in the red the index fell on that wall street tech sell off on friday 10 cent added nearly 2 percent while semiconductor manufacturing international corporation it actually jumped 6.8 percent in japan the nikkei has our 1st green arrow of the week this is despite its biggest drop in a week and a half in response to that movement on wall street the nikkei closed up pretty strong softbank group gained one percent on friday alone in india the sensex is actually also in the green for the week again. 1.3 percent reliance industries added 12 percent on rumors of a possible $20000000000.00 deal with amazon over in australia the a.s.x.
in the red for the week the index hit 2 month lows and it fell by one percent on friday alone australia is facing tensions of its own with china in south africa the all shares is up for the week with its best week since june despite data released with a contraction in the mining and manufacturing sectors for the month of july will the ran again weekend against the us dollar on the news moving to europe in the americas in london the footsie for the week energy stocks were actually up while concerns over another round of lock downs really sent those travel and restaurant stocks down the french cac and the german dax also up on the green now the markets closed pretty flat on friday on that brags that being in limbo and the european central bank not moving interest rates on thursday moving across the atlantic the evil best in brazil is down for the week the rel was near one month highs but stocks fell again on that wall street sell off on thursday brazil's government
introduced a constitutional reform bill that would give president variables annatto the ability to eliminate public sector jobs without congressional approval now heading to mexico where the b.m.v. is also in the red mexico's finance ministry said they're working with private banks and the central bank to extend credit rules that will limit default due to the pandemic moving north here to the united states where all 3 major indices the nasdaq the s. and p. and the dow well they're all in the red they're just short of completing that rebound from that big tech sell off tech market really struggling coming out of those lows the nasdaq had its worst week since the month of march finishing things out in canada where the t.s.a. acts in toronto for the week generally some weaker oil. prices drag down the t.s.a. x. but that's not the case this week and are companies all their concern over the government's contention that they reduce the carbon intensity of fuels which the government says
will improve the economy and that it's a global market walk. time now for a quick break but stay here because when we return amazon is under fire for reportedly price gouging essential for in the pandemic well discuss the boom bust co-host spent so long that as we go to break here the number is i thought. was a pandemic no certainly no borders just like nationalities. summary .
judgment commentary says. we can do better we should be. everyone is contributing her own way but we also know that this crisis will not go on forever the challenge is crazy to respond. so many good people are helping us. it makes us feel very proud that we are in it together. but we've been talking about saslow for you know a number of weeks a few months because it is a phenomenon and the point i've been making from day one is that it's a me me me that as a market valuation at one point over $400000000000.00 and it taps into people who trade means a nasar generation z.
and the millennia old the robert of apps and other forms and meaning the have no fundamental value there's nothing there it's just it's a murmur ation like starlings in the sky they conjure day and then they disperse. drugs has come from unscrupulous dealers but from pharmacies to in every state in the united states we've seen very sharp increase in the number of people seeking treatment for addiction to prescription opioids invited to america under the banner of medicine persisted with the pain but instead of trying to wean him off though she did go after dose after dose after dose and really became his drug dealer soused to blame. don't use manufacturers.
you just have to fly between 200 and as fast as you can. do much out of the produce push for the. first time the. russians in racing use competition in the extreme to have a full use the specified routes between the teams with the fastest time just beautiful. if you're going to be true to what you should. or should. i. mean.
amazon is coming under fire from a watchdog group claiming that the e-commerce giant husband price gouging the public over essential items needed during the pandemic well according to a new report from the nonprofit watchdog group public citizen amazon listed 15 of its own essential products including disposable face masks hand sanitizer toilet paper paper towels markups ranging from 76 percent to as much as 1000 percent compared to previously listed amazon prices or other retail prices well joining us now to break this down. and investigative journalist button swan but in this report it's pretty critical of amazon's behavior what specific examples are listed in it. you know there's a couple of pretty interesting ones one for instance is like a company like clorox for instance one example given clorox was selling the canister of 75 disinfectant wipes they were selling it on amazon for $37.95 on
august 11th you can compare that though to that same canister being sold at wal-mart and target on amazon clorox was selling it for 8 times the amount they were selling it at wal-mart and target on the same day 4 but what's really interesting about this isn't the 3rd party sellers it's amazon itself in fact the report found that the highest percentage increases in products actually came from items that were quote sold by amazon for instance they give the example of a 50 pack of disposable facemasks that cost around $4.00 before kobe 1900 amazon about a 3rd party seller amazon was selling them for $40.00 so essentially what we're talking about here is remember you know i believe in free markets you know that i believe in supply and demand but amazon has actually made the rounds of the press say that they were going to punish and remove 3rd party sellers who were galchen the public now it turns out amazon was doing the same thing they said they were going to punish others for well their press punishing others while doing it themselves pretty ironic here as an amazon knew they were in
a room for themselves of course and of course their competition right right then i mean i was an amazon user i definitely saw those prices skyrocket and i found it pretty interesting but didn't go as far as to question why not maybe the the demand was just extremely high but amazon has that in the past that it's been working like you said to ban these 3rd party users who weren't price gouging but now in this report amazon continues to do this right well meanwhile there's new reporting that amazon basic products they've been reported as fire hazards as well but apparently not dangerous enough for amazon term move them from the marketplace. yeah apparently there's a whole set of these one guy was saying that apparently there's a u.s.b. chargers u.s.b. cables that have melted one that melted inside of a room and started to fire when his baby was in the next room over but here's the things there are it's not just one or 2 complaints or we're talking about over 1500 complaints according to media reports have been filed in just the last couple of months of people saying this item started a fire in my home or exploded or burst into flames and they still remain on amazon
site and by the way one more quick note about you know amazon removing the other 3rd party sellers just going back to that for a 2nd 10000 amazon said it removed 10000 accounts of 3rd party sellers because they were in the wrong for price gouging again amazon did it themselves and now apparently seems to be leaving up items that explode or catch on fire even though they have credible reports that it's happening let me ask you the spend how do you think this is actually going to impact if at all consumer trust because people find it so easily to just click a button amazon prime you know free shipping within one or 2 days and it's the convenience of it right it's a company that's doing amazing during the pandemic. you know it is to an amazing here's here's the reality amazon is a very unique just like a lot of tech companies are right now that we've never seen this phenomenon before which is simply this that you have lots of people out there who love what a company does but hate the company they don't like the company they don't like what amazon stands for they don't like the way amazon treats its workers they don't like the way that amazon price gougers or the way that amazon is essentially kind
of hurting 3rd party sellers on their site by competing with them but because that e-commerce giant is so huge and so convenient people will tolerate it or put up with it which simply means the market needs to provide competition for amazon a company that's better run treats people better treat employees better and has better products and that's how you'd be them as well right now much like you said that there is no competition there is something new i think at wal-mart we've talked about it before unite wal-mart right is trying to. do something similar with some of the some today free shipping. yeah wal-mart is but people don't like wal-mart either it's just it was not as a sara lee a very good company and their way of competing with amazon is in 2 days you can drive to wal-mart and pick it up there will have it for you who wants to do that you have to compete with amazon to the level that they are getting products to people but i also believe by supporting and actually encouraging mom and pop shops encouraging 3rd party sellers there is space for competition for amazon because
they are destroying an entire set of the middle class in this country through e-commerce there's no reason why e-commerce cannot co-exist with those companies it can't if there is greed involved but if the goal is to actually build in and support small businesses i think there is space there is just someone has to do it with the right motivation well again i'm bases has become even richer during this pandemic i mean everybody is turning to amazon like you said because of the convenience or looking past that now you know all the issues that amazon is having to do you see anybody really coming in i mean yes there's an opportunity there but who. yeah i don't see anyone right now i think it has to be something that's birthed and this might sound a little preachy but it has to be birthed out of philosophy and ideology and secondly out of business you say we take this philosophy that says what are we trying to accomplish are we trying to become the biggest richest company on earth or are trying to have a a chairman and c.e.o. who's worth a trillion dollars if that is your motivation you're never going to be able to be
that instead you have to have the motivation of i don't need to necessarily be be richer or more powerful but i want to empower people if we can create a system where people want to do that i think customers will flow to it i think businesses will flow to it competition will come when you're doing the right thing not just having a profit motivation having being creative here and innovative and presenting something that's close to or better than than amazon will be the key west coast an investigative journalist bent on thank you. thank you that's it for now has been based on the man on the part of the app available on your avalon and. devices are simple check it out on portable the t.v. you know that. is your media a reflection of reality. in
a world transformed. what will make you feel safe. isolation full community. are you going the right way or are you being led. directly. what is true what is faith. in the world corrupted you need to descend. to join us in the depths. aura made in the shallows. you just have to fly between 2 kinds of low and as fast as you can. go much i think i was watching the producers in which the push for the quebec. massless nature 1st
and other natures that. the engine was there was in 1st no sense prevailed of course moral russians in racing is competition in the extreme to have a full use the specified route between the lines with the fastest time whims just a beautiful little boy loses nothing but you're going to there but you should check your dish 1000000000 plus loucheux diluted their beauty for a little over a. problem drugs don't always come from unscrupulous dealers but from pharmacies to in every state in the united states we see me very sharp increase in the number of people seeking treatment for addiction to prescription opioids it invaded america under
the banner of medicine persisted with the pain but instead of trying to wean him off though she just goes after dose after dose after dose and really became his drug dealer so who's to blame patients doctors manufacturers all the governments are. going to use there's a world of all of them were fleecing of the whole new music the more the major issues are the. good songs the guy. has a name clearly missed. the . boat both of you saw. the point was good to use good news to cook with of course discussing the films with
use of these is the police using the media of course. this is the scene in france right now i would go in there too just a bit scores of the rest sold ready as the yellow vests defy. all rallies to resume protesting for those affected by the lockdown this front set said a new daily record for covert cases to a correspondent in just a minute. other headlines coming up to. germany agrees to cooperate with moscow on a probe into the alleged poisoning of opposition figure aleck's in the valley as the russian side looks to travel to berlin for more information. and the issue riles german lawmakers as they clash over how best to try to deal with the kremlin in their eyes a fiery debate in parliament.