tv Boom Bust RT September 17, 2020 8:30pm-9:01pm EDT
this is a bust the one business show you can't afford to miss friendship or in washington coming up in the fight protect tack continues as china claims it will need to have a say in the oracle deal straight ahead we dive into the ongoing fight for the world's hottest social media and another week another round of u.s. jobless claims amid the coven 1000 pandemic later on we break down these numbers and the state of u.s. markets with a packed show today so let's dive right in. and it's a strange concept to think about but within the next 24 to 36 hours president donald trump will rule on whether social media company tick-tock will be allowed to continue operating here in the united states in a move that is unprecedented president trump will decide whether or not to allow to deal with oracle to move forward details of the agreement would give oracle a 20 percent ownership stake in tic-tac and we're now learning would give wal-mart's c.e.o. a seat on tic-tacs board now the deal would mean that chinese company by dance will
continue to own the majority stake in tic-tac something president trump says he does not like we're looking into that from the standpoint of buy dance we don't like that i've been just conceptually i can tell you i don't like that. that has not been told to me yet that has been reported but it hasn't been told to me it could be very accurate reporting for a change so if that's the case i'm not going to be happy with the only this is china which i think it probably is yeah the chinese foreign ministry also responded to the latest reports thursday continued to label the situation as unfair. so we urge the u.s. to respect the principles of market economy and fair competition abide by international economic and trade rules stop politicising normal economic and trade cooperation we can provide an open fair and nondiscriminatory business environment for foreign companies in the u.s.
. and joining us now to discuss our boom bust co-host christine benz swan and thank you both for being here as always kristie so at this point by dan says it has to be able to comply with both the chinese government and the u.s. government are they going to be able to thread that needle. and it's going to be difficult because by again this feeling the same way he did last year now that they're the ones in the spotlight so they have to very carefully balance the demands of the u.s. with those of china while also not neglecting the expectations of the public users tips because already by dan has faced a wave of criticism from chinese citizens for seemingly to giving in to u.s. pressure after it was reported it was just contemplating a sale so this led to hundreds of meeting aplenty during the chinese version of tech talk and also influence and announcing that they would stop using the platform if it got sold to u.s. company so it's trying the best it can to appease the 2 countries and that will require now double sign as in order to go through so that's an extra layer of uncertainty and we've been talking here as if the biggest hurdle to get this deal
done what the trumpet mr asia and perhaps it is but chinese regulators are being lax about this either because they have now made it quite clear that tick tocks underly algo is not to be sold under any circumstances and that they would rather prefer that u.s. operation a tick tock to be shut down rather than to see it sold to an american mire you know there's a new development in this whole deal which we mentioned there at the earlier in the show wal-mart which had originally joined the bit with microsoft now it seems to be part of the oracle deal but how did that happen yeah it's kind of a strange twist in all this because remember originally the deal was coming down to either oracle or microsoft then won't. jumped into it and said well we'll partner up with microsoft will sweeten the deal and it should come to us and then it didn't go into oracle instead so now somehow wal-mart has jumped off of the microsoft ship and they're now jumping into this with oracle apparently as you said here in the lead up the c.e.o. doug mcmillan of wal-mart is going to get a board seat on to talk as part of this deal and wal-mart with own an equity stake
in the company in fact what treasury secretary steven nugent has said is that u.s. companies oracle and wal-mart he claims will together own a combined 50 percent plus of ticket no we don't know that that's true that's just what he's saying but he's saying those to us investors which calling these guys investors is ridiculous right because it's not investing it's almost like highway robbery or like bandits that are jumping into this force to sell of to talk but essentially that's where we are now so wal-mart not to be outdone by anybody else has decided no matter what they're going to force their way into this deal well seems like if nothing else that they might be a situation where they are investing in it they're putting in money and they're just going to collect the benefits because it doesn't appear they're getting into trouble and to that point you know take that as not being sold to an american company at least not in a majority stake as we just mentioned but how does the trump administration make that work kristie when the president has said repeatedly it's
a deal breaker if it isn't sold to an american company. well they're trying to find a compromise and i think they cut down a very logical one is divesting some of its assets rather than all and it's putting in a buffer oracle to safeguard the data of the millions of americans which is apparently the big national security concern so actually it did address all of the concerns that trump raise but unfortunately doesn't like this compromise because this means that he would have to amend his executive order that he signed on august 14th something that no u.s. president has ever done in the history of national security reviews so this would force him to backtrack is where it's so at this point it's also an image matter for him but at the same time trump may also not want to alienate the 100000000 or so american tick-tock users so close to the election and also his silicon valley heavyweight buddies who had huge stakes in the social media companies so this is going to be a very difficult pill for the tribe ministration to swallow because to talk solution is actually based on past presidents so if he has allowed foreign firms to keep sensitive u.s.
assets on several occasions by imposing oversight and restrictions on how they're operate at i mean that was the case when china's leno acquired i.b.m. and also when japan softbank acquired spread so bite and has now proposed similar measures so it's agreeing to be a good sport and play ball according to the u.s. his own rule book so to reject it now well that just won't be a good look there's another potential deal breaker and that's the fact that under this deal the u.s. treasury department is not going to get their cut now if you remember the president had said in the past this would happen because the president really get any kind of a win here i mean we know he likes to say he wins even when he doesn't but what do you think. what he's going to say wins no matter what happens whether to talk survives or not it's a win but according to him but look that's a very really important point you and i have actually talked about this before and the reality is it's insane to say i'm going to broker a 4 cell of a a private company and we're going to take a chunk of that money and we're going to put it in the u.s. treasury because i made the deal what are you talking about again i refer to
highway robbery before i mean that's really feels like that and apparently lawyers for the administration let the president know last week you can't do that you can't broker a deal and then put a bunch of money in the treasury and say i made this money so that couldn't happen we all kind of knew that was going to happen but the fact that it's not going to happen it's just another moment where the president has to backtrack on this what christie said is important she made a really good point that you know the president would have to back off a little bit but you have at least 5 senate republicans including marco rubio who have come out saying if by chance retains any control any control at all over the data or the algorithm then this should be a nonstarter what the reality is by dance will retain control of the algorithm because the chinese government says you have to retain control over the algorithm they're not going to give that up and by the way nor should they should not give that up to a u.s. company simply because a us president declares it to be so and now kristie i think that the $1000000.00 a $1000000000.00 multibillion dollar question really here is if this deal going to move forward what's your take on that. i mean it's far from anything but
a sure thing but i think there is a good chance of something happening especially with oracle spearheading it on the u.s. side and kind of massaging it through the messy politics because after all the federal government is currently oracle's largest customer with all 4 branches of the military also using oracle products so who apparently it's better to safeguard data if not what you're already using for the military and ben same question do you see this deal going forward with all of these issues that we've just covered here the senate the president the chinese government is going to move forward i think it does move forward for the same reason the christie said because you have oracle and you have wal-mart you have 2 massive u.s. corporations that are really going to push it through listen if sort of republicans make too much noise wal-mart will simply send them a check and say hey we'll support your reelection campaign because it's good for wal-mart and what's good for wal-mart is good for america i think that ultimately those are the powers that win this thing and ultimately the chinese are happy
because they say we didn't give up the algorithm and the u.s. is happy because they say we took control of the most successful tech company in the world right now that's a heck of a advertisement for wal-mart what's good for wal-mart is good for america blue bus co-host. christine thank you both for your time. thank you. i i. and one of the leading drug makers searching for a coronavirus vaccine now says it could have enough data to prove its efficacy but durness c.e.o. told c.n.n. b.b.c. the data might be available as early as next month but it will likely not be available until november still scientists and medical experts are concerned the white house may be pressuring the f.d.a. to approve a vaccine before adequate testing has been done now madonna is part of operation warp speed backed by the united states and one of 3 in late stage testing madonna's stock has soared more than 250 percent this year alone the company's shares gained
3.8 percent in premarket on thursday on news that madonna now plans to start developing a seasonal flu vaccine but have since fell off in a news release madonna c.e.o. sell said we are increasing our investment in vaccines and we will develop a seasonal flu vaccine given the unmet need for highly effective vaccines the world health organization is calling a recent spike in coben 1000 cases in europe a wake up call during a press briefing thursday the. regional director for europe spoke about the significance of the latest outbreak we do have a very serious situation unfolding before us we have no exceeded those the but the pandemic 1st beaked in march more than half of you have been countries have boarded a good 8 to 10 percent increase. in the past 2 weeks of those
7 countries have seen. more than 2 fold. and with this in mind let's take another look at the trends and spread of the virus globally with our 2 correspondents so there are some brand we have finally had the 30000000 mark in global cases by 22000000 actually over to over 22000000 have fully recovered and these 33000000 cases now officially more than 5 times the number of people who get the flu annually so remember the beginning of the pandemic they were saying no the flu is a lot of worse well guess what it's not but deaths globally were close to 950000 now in the u.s. more than 6800000 occur from cases while now deaths there once again surprise 200000 now here is where we are in daily new cases and that's in the u.s. for wednesday and wednesday 39216 new cases reported
a decrease of 3 percent from last week and 997 reported that's only a one percent decrease from last week and brant while much of the talk has been about vaccines right we're hearing when are where the vaccines one of the going to hit the market but now a new numerous polls are suggesting that most americans would actually be has attempt to get vaccinated and right now only 40 percent of americans say that they would get a vaccine short of the 60 to 80 percent of the population doctors say isn't needed to achieve the herd immunity and suppress the virus so while having a vaccine for frontline workers and the vulnerable population is great but it really one makes much of a difference if not at least 60 percent of the population is in fact vaccinated brant and sorry i want to go back to the best point we made at the beginning of this segment about the spike in covidien cases in europe what are we seeing there
so exactly like you're said in europe is seeing new cases right now and there are again what you said getting a whip. wakeup call so here are the top 5 european countries with most new cases reported in the last 24 hours there spain now there were already had the highest number of infections in europe so they reported over 11000 new cases and new lockdown plans are expected to be announced this friday now meanwhile of france the number of new daily cases reported on wednesday was actually the highest ever reported and ali that there i.c.u. unit being used for cover 1000 patients is also on the rise in the u.k. which has the 3rd highest number of cases in europe now they just announced earlier today that almost 2000000 people on the north east parts of england and that that that's the current hot spot they're going to be banned from meeting anyone outside of that area and only 6 months after italy's crisis became
a warning to everyone not just to europe but to everyone about just how quickly the virus could spread now italian officials are once again reporting new cases on the rise so although not get anywhere near the last peak of about $6500.00 new cases per day but still a significant rise from the 200 they were having earlier in july now even germany you know they've always been the example to the rest of europe and how good they contain the virus there are slowly seeing their daily case also a job with nearly 2000 infections and that's a double from where they were having august 1st but there's also a caviar to keep in mind when examining europe's new. new case count because europe is actually testing has dramatically changed over the course of the pandemic you know we're as almost all of the cases that are reported at the beginning of the pandemic there were symptomatic meaning these are people that showed symptoms
because only symptomatic people ring tested because there were very few tests well that's the exact. opposite of what's happening right now they're not asking everyone to get tested so testing alone can't fully explain the current case increase by lees not in every country in europe brant r t correspondent side tabular thank you so much for the insightful report and time now for a quick break but hang here because when we return u.s. jobless claims are and while they have been below 1000000 the picture remains dire in the wake of the quote a virus pandemic and as we go to break here the numbers at the close.
very mechanisms plasticity that enable stretch to get under the skin and to the negative effect on our mind in our body those same very mechanisms can be torn to distribute good to promote resilience to promote flourishing. imax keyser one more of my guide to financial survival this is a device used by professional scallywags to earn money. that's right these hedge funds are simply not accountable and we're just getting more and more to the. totally destabilize the global economy you need to protect yourself and get in for
a while because we are. over the last 3 presidential election cycles there is clear evidence voters are trying to. the message of not interventionism and are very weary before and this is most certainly helped trump in 2065 his time in office is spotty at best now joe biden appears to embrace the same foreign policies as bush and obama i guess nothing really will fundamentally change. ellwood forward to talking to you all that technology should work for people. i robot must obey the orders given by human beings except where such orders would conflict with the 1st law show your identification for should be very careful about artificial intelligence at the point obesity is too great trust ever the shia. muslims might take on various chimes in with artificial intelligence will summon
the demons. the robot must protect its own existence and existence. will. join me everything on the alex i'm unsure and i'll be speaking to guess of the world of politics sports business i'm show business i'll see you then . welcome back airline c.e.o.'s and unions representing their workers on wednesday called for another round of federal aid as a prohibition on job cuts in the industry will expire in just 2 weeks as part of a 25000000000 dollars aid package passed back in march companies were banned from
laying off or furloughing workers through september 30th starting on the 1st of october more than $30000.00 jobs in the industry could be in jeopardy if more relief is not provided as the demand for air travel has not come back amid the pandemic airline c.e.o.'s met with white house chief of staff mark meadows on thursday asking for another $25000000000.00 to support the industry through march of 2021 while a full 1.5 trillion coronavirus. trillion dollar coronavirus aid package remains in limbo meadows told reporters if house speaker nancy pelosi was willing to move a bill to keep people from being laid off in the airline industry that stand alone that stand alone that the president would certainly support it the 1st time jobless claims in the united states were less than expected for the week ending september 11th the labor department reported 860000 new claims 15000 below wall street expectations of nearly 30000 less than the week prior continuing claims fell by
nearly 1000000 to 12630000 for the week meanwhile u.s. equities had an up and down day thursday ending in the red responding to the fed policy positions released wednesday and new data showing an economic rebound losing a little bit of momentum so let's take a look at the state of the markets with tobin smith c.e.o. of transformative research always great to have you on tobin i want to start with this volatility we're seeing in markets thursday everyone's going to blame it on jobless numbers are going to blame it on the fed they might blame it on some i.p.o.'s but these issues will be here for the forseeable. future are we on deck or another sell off like we saw last week in the week prior what are you seeing in the markets yeah 1st off the market is tired and it's tired because if you have new money to put to work today if somebody came into our management account business or here's a 100000000 bucks i would not put it in the same stocks that we put it in in march or the same stocks we did in june it's been $25.00 names of stocks that have worked
well because it was an easy construct you would say that in a world that is not growing or actually is shrinking companies that have subscription based software that people have to pay or they go out of business or growing like this so growth becomes very rare and everybody got on the same meme you know and everybody got on the same vibe and then all of a sudden we had snow come out yesterday now this is a wonderful company this is a company that will do maybe $700000000.00 in revenue and yesterday it was worth $78000000000.00. and what that told me was 1st for people to buy that they had to sell something else right so what they did is they sold what they own and that's what i think we're seeing here we were not going to value because that would value is impossible to come up with today but but if i own stocks some of ours are up 3400 percent and i don't want to get in this new game because the new game is
i.p.o.'s and special acquisitions spec that's where the energy is if i want to continue to beat the market i got to be there which means i'm going to take profits in these great wonderful companies that are selling for 50 or 60 times their revenue i mean it looks tired we broke $11000.00 and nasdaq that's really the support so i be looking for another 10 percent just simply to we get sellers exhaustion right now the game is i.p.o. suspect baby and i want to talk about that i.p.o. of snowflake because it was up more than 111 percent close of trading on wednesday the company raised more than 3000000000 dollars based on an just the opening price alone that's more than any software company ever but of course it's already lost 10 percent on thursday more than 10 percent really what's your take on this i.p.o. beyond what you just said there ed do you see this downward trend going going to last for a while because like you said they're not making anything close to what their market cap was. yeah i mean it was an outlier because one above was putting money
into sales for success or a but remember they left $3800000000.00 on the table in other words that's the whole reason why these special acquisition deals specs are being done because then you negotiate your price upfront you're not leaving money if you're looking to raise $1200000000.00 you raise $1200000000.00 and you're not then the next day having your stock be up 150 percent which meant you probably only needed to sell half the amount of shares so that's why the specs are doing well the i.p.o.'s now you know you know wall street they smell blood baby blood decision money and so you're going to see i mean all these. private companies that have been on the sidelines for a long time have palin here coming a direct listing you have many other guys had been a long time and of course down the road air b.n. b. you're going to see a smattering of that but a deluge i'm sorry that deluge is the sign just like it was you know late 99 in 2000 that all the guys were going to rush to the portal they're going to take for
me to buy those stocks i got to sell the ones that have been up and so that's what we're getting we're not getting a rotation of value we're getting a rotation to get me and at i.p.o. get me in that new spac because actually is making money that's where you're getting alpha that's where you're getting up performance right it's quick money and hedge funds are making their entire year's worth of funds for people in that one day i absolutely know i want to touch on this airline c.e.o.'s asking for another 25000000000 dollars bailout i will remind you they weren't giving us any breaks when air travel was going they weren't giving us any cheap flights but it will continue their travel sector of course have been decimated since the start of this pandemic now if they don't get another round of aid and are forced to lay off tens of thousands of workers are we going to see the sector even continue to drop further yeah you know we are i mean for a couple of days as you said we had 800000 unemployment of this last week a year ago we had 200000 of the same week you know that that industry is not only flat on its back but remember they also bought a whole bunch of money i can't say that bad word in buying new planes getting these
so they're upside down multiple ways the united states only has one choice really here they're going to hold a gun to the head of some of the large ones with big debt to combine there's going to have to be mergers there is too much capacity and it secondarily you know as you know the money in the airlines is made in the in the 1st $8.00 rows and that's where almost all the profit comes everything else in the back just pays for the gas in the in the you know the pilots accept it so as a commercial flight people who like me paying 800 bucks a seat. i haven't i've paid any dollars for a seat in 6 months and am i going someplace else well i have enough miles if i'm a you know gleick me i going to pay for tickets the next 2 years i get points out that was you right so now we have this issue that they have to consolidate maybe you know southwest survive certainly because they have shorter runs and maybe some of you know jet blue who are interested states but the big guys have to consolidate and by the way china is trying to you know they're adding many more planes that
were boeing but now they're on chinese planes so they're going to be doing to our end to what i have about 30 seconds for this but back in april you were touting electric start up nickel at $16.00 a share you mentioned that you guys sold that around $80.00 a share and now the company is facing investigation from u.s. regulators saying they may have misled investors about the technology and the company even admitted this week that a promo video of a prototype truck that was released about 2018 well that truck was rolling downhill and not using technology 30 seconds quick take on that. it's toxic right now it's a shame i they're going to survive because they raised money but they were you know trevor is a great guy but he should never have been given a microphone to talk with the f.c.c. listening so i'd stay away for a bit of a while tobin smith of transformative research thank you so much for your time. thank you. and that's it for this time catch us on portable t.v. you can find it at portable that saving of cross the bevy of other devices we'll
see you next time. everybody's gaslighting everybody cooperations or gaslighting here central banks or gas finding you can understand a gas line is you know that it's not pleasant it's rude it's downright rude. to get the bullies to sneer those who really can show you. show that they can just be sweet but.
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appears to embrace the same form it was used as bush and obama i guess nothing really will fundamentally change. is your media a reflection of reality. in a world transformed. what will make you feel safe. isolation little community. are you going the right way or are you being led so. direct. what is true what is faith. in the world corrupted you need to descend. to join us in the depths. or a maybe in the shallowness. god
. of god and. moscow slams the e.u. for jumping to conclusions with quotes missile regard for the truth of the european it'll make this part a resolution for tougher sanctions on russia and that you know with a clip about the nation attempt against opposition figurehead alexei novell me mr van himself is claiming on social media he was poisoned in his hotel room in this liberian city of tomsk when assessed how possible it could have been. has been a new twist in a decade long and whole saga between russia and poland and we look back on the polish presidential plane crash in 2010 over western russia as moscow rules out extraditing the air traffic controllers on duty that day.