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i'm cmon dollars ario filling in for lindsay france you're watching the bus broadcasting around the world from right here in washington d.c. coming up the rattling rhetoric global markets are jolted by rising tensions and even words between the u.s. and north korea and spending season americans are spending more than adverse since the financial crash nearly a decade ago does it mean the economy is back on track plus banking blunders wells fargo plan to win and we keep. hearing about scandals how it cheated customers out

of cash this time. starts right now. stock markets around the world took a hit wednesday reacting to rising tensions between the u.s. and north korea global markets are used to inflammatory remarks from pyongyang but usually the u.s. days while more diplomatic president donald trump's valid tuesday to unleash fire and fury on north korea if it continues its threats that was enough to make markets dip all over from the u.s. to europe japan china india most markets reacted negatively to the news tokyo's nikkei index dropped to its lowest point since june first while south korea's

plunged to seven week lows on set of heating trump's warning to stop threats just hours after his comments north korea announced it was considering a missile strike on guam a u.s. territory that's home to a military base the u.s. and north korea have not yet made good on any threats and analysts are unsure how much volatility the rhetoric my inject into the markets but true to form assets that typically do well during geo political tension reacted in color and gold bounced up more than a full percent and treasuries rallied as well. while we're talking about global uncertainty venezuela is getting a boost from russia despite its worsening political and economic crisis russian oil company has pledged to continue working with that as well as state owned energy firm p.b.s. say according to a statement released by the russian company this week it gave the venezuelan company one billion dollars as an advance payment for future crude supplies which brings the total amount of prepayments to six billion dollars the advanced payments

have been viewed by some as a lifeline for the venezuelan government keeping the company and the economy afloat despite the unpredictability facing p.d.s.a. and venezuela as a whole russia's rosneft says it expects full repayment in oil and oil products liveris before the end of twenty nineteen it also said bennis whale is making those deliveries right on schedule what could hurt in the long run though is that announce right now it has no new plan to advance payments to to venezuela the country's at risk of default fitch ratings lowered various well as credit rating to a triple c. meaning potential failure to service its debt. americans are spending the most they ever have since the two thousand and eight financial crash that should mean good things for the economy let's take

a look. americans on average are spending one hundred nine dollars a day according to gallup polling that's the highest spending average in nine years and the sixth straight month where daily spending is more than one hundred dollars meanwhile small business owners optimism is at a ten year high they're generally more optimistic about the future than present conditions these phrases coincide with americans confidence in the economy which jumped four points in july on gallup's economic confidence index while an improvement from the past couple of months it's still near the low for twenty seventeen still july marks the ninth straight month americans rated the economy more positively than negatively the longest streak above zero since gallup started tracking it in two thousand and eight. view the current economic conditions more positive with thirty three percent describing it as excellent or good and only

twenty two percent saying it's poor but looking ahead more americans see the economy as getting worse rather than getting better so we know what americans think but is that really the case is the us economy headed for a downturn the data tells us different things some analysts think the confidence in expectation or end up being greater than the reality let's see what marshall our back thinks the research associate at levy economics institute marshall in a recent interview the c.e.o. of chanting go global gina sanchez she said she thinks there are several signs pointing to softer earnings and economic growth she thinks the economy is going to under deliver on a lot of fronts by the end of the year do you agree with her. not particularly i mean the data has actually been pretty good for the most part as you pointed out the consumption good you had very strong housing starts as well in june you know the judeans median price for single homes was at a record you also had

a very very strong university michigan consumer confidence index i think it was the highest since july two thousand and one you had good durable goods numbers and you had the ascending trend in g.d.p. i mean you include first quarter was one point two percent the second quarter about two point six percent and you know the atlanta fed is expecting it to come in is to . four percent in the third quarter so it's possible that we could have a geo political upset like say north korea which could put a crimp in the whole situation but you know a canonic conditions are starting to manifest themselves with more robust data right and to add to all of the things you mentioned were just coming off of a better than expected jobs report last week and as we mentioned before i introduced you american spending is up and it's up not just for lower income families but higher income families as well and confidence is strong so what might be pulling down the momentum and then because it sounds like everything's good

right now. well what could pull of the ultimately the one of the problems is that you still haven't had enough to leveraging savings rates are also starting to come down again which implies that the personal consumer sector is starting to go more into debt which is always problematic in that sort of thing that creates a future financial for julie especially if rates start going much higher so that i would say that is one risk and again the gains have not been very very broadly spread your still seeing most of that going to the top tier of the economy and those people have a greater. save than to spend so those are two problematic factors that create some headwinds i think down the road and how far down the road marshall are we talking short term or we could be seeing this soon or are you pretty bullish short term you know what i want to. always seems to be

a month or something dramatic has happened so it could have you know maybe if donald trump decides to take his if he's serious about his threads maybe this will be a more interesting month than we hope it to be but look if you were just to look at the economic data on its own and ignore the the geo political noise it looks like we could have a pretty good summer and into the autumn but again you do have a very very high eve you have very high debt levels and also the other point i would make is that if the republican congress and the president are serious about introducing more fiscal restriction into the upcoming budget then that will also be very problematic that could be something which could crimp the economy say five six months down the road ok when we look for signs to see that we are having a strengthened economy and we also look to see how the fed is reacting what signs do the does the fed turn to to decide how strong the economy is. you know the fed

keeps moving the goalposts all over the place but i think the main thing they seem to be targeting right now are wage gains which are still fairly tepid janet yellen has a a more liberal bias i would say than a lot of the other people that have been head of the head of the federal reserve and i think she is wary about. normalizing rates raising them too much if they if it could actually impact on the the the the segments of society that. are just starting to reap the benefits of the economy right now and pulling the plug on that promise surely so she think quite cautious and in terms of trying to. in terms of her conduct of monetary policy i want to take a more global view of this now and the world growth is growing it's going in the right direction how do other countries impact each other when it comes to things like inflation. well of course you know the more that you have

a synchronized global economic recovery the more excess capacity is taken up and the more that ultimately leads to price pressure so that's i suppose the main thing and i think the the interesting wild card here is china in particular there's been an analysis recently done by charlene chu who is one of the best creditor that analysts of the chinese economy and she's talked about to the chinese government making as much as four trillion dollars worth of credit available for the balance of this year not that's true then you're going to have more inflationary pressures stoked up from abroad particularly in china that's something we have to keep an eye out for as well right i mean china is the second fastest growing major economy right behind india those two countries specifically are helping push up world growth according to the i.m.f. should we be concerned though that china's outstanding credit is expected to grow to thirty three trillion dollars by the end of this year that will be about two hundred twenty three trillion won. yeah it's it is

a concern the the biggest concern is how much of that is foreign debt and the there has been a significant rise in foreign debt but you know the chinese economy it's in this interesting push poll type of situation and whenever the it starts to become overheated particularly in areas like the stock markets property sectors things like that the government makes a move to try to slow it down but there is so much debt in the system already that there is this concern about pushing it down too hard and setting off these debt deflation dynamics and whenever that seems to be on the verge of happening the chinese seem to send in the state owned enterprises and they seem to pick up the slack and inject some more into the economy so that seems to be the push poll that we have to keep an eye on because one of these days they won't be able to manage that balancing act is as well as they are right now and that could cause problems for the global economy real quick and i know it's hard to estimate right now but you say one of these days how long in the future are we thinking right now i was

afraid you were going to ask that. marshall look. i expect that at some point. this year there will be an accident occurs i blessed word about china but i am about it happening right here in the united states because i think this president has already shown that he is temperamentally suited for the white house and who knows we could have some sort of wag the dog situation where he initiate something globally some sort of conflict to take away from what's what's happening with him domestically the loss of popularity in his declining ratings at least this summer though americans seem confident marshall our back research associate levy economics institute thank you so much for your time thank you for having me. and it's time now for a quick break but stick around when we return tells us why we keep on covering new wells fargo scams and we're getting more familiar with driving cars but would you take a chance on a cell phone. as we go to the break or the numbers for the closing bell.

why would you put those up. what your biggest fear is in the bill mcveigh right wing so let's talk a little bit bored you say if you ever. consider but what about. exploring the topic doesn't belong to you now due to. more. i do not know if the russian state hacked into john podesta emails and gave them to

wiki leaks but i do know barack obama's director of national intelligence has not provided credible to support his claims of russia i also know he perjured himself in a senate hearing planned three months before the revelations provided by edward snowden he denied to be n.s.a. was carrying out wholesale surveillance of the us. the hyperventilating corporate media has once again proved to be an echo for government claims that cannot be verified you would have thought they would have learned something after serving as george w. bush's useful idiots in the lead up to the invasion of iraq. it is vitally important that the press remains rooted in a fact based universe especially when we enter an era when truth and fiction are becoming indistinguishable. here's what people have been saying about rejected in the senate just pull along

with the only show i go out of my way to lunch you know a lot of the really packs a punch oh yeah it is the john oliver of marty americans do the same we are apparently better than blue and i see people you've never heard of love redacted tonight. president of the world bank so very. seriously send us an e-mail. almost a year ago we learned that wells fargo was making phony bank accounts without customers knowing about it ever since the bank was caught it's been subject to internal and external reviews and through them even more instances of misconduct have been brought to light at this point now we're onto our third scandal machine he has more for us now bianca. we have the bank account scandal the auto insurance scandal is this third one related or is it totally new now it's totally new and separate from

the previous two scandals however there is one similarity between this month's scandal last month and that is it has to do with the auto industry in particular looms ever since the fake account scandal was exposed wells fargo know it was no longer able to hide other scams that may have been operating that's because the bank started conducting its own internal reviews which have played a part in uncovering additional malpractise but so was the government which just discovered that wells fargo wasn't refunding core insurance money the issues with guaranteed auto protection insurance popped up after an inquiry from the federal reserve bank of san francisco where the bank is based gap insurance usually costs between four and six hundred dollars and isn't mandatory but most drivers like it because of the protection it offers especially since cars to preach in value and if customers pay it off early they're entitled to a refund because it's no longer need it according to fed officials wells fargo

customers that did that weren't getting their money back posing big problems for the bank now in nine u.s. states it's illegal to not give unused insurance money back not to mention it had a big effect on customers who had their cars repossessed resulting in damage to their credit scores in a statement a big spokeswoman said we're reviewing our practices and actively working with our dealers and have already begun making improvements to gap processing if we find customer impacts we will make customers whole however it remains unclear how many customers were affected and to what degree we don't know how long it was going on either but we do know is that this adds to the skepticism over wells fargo's internal management and oversight and that will impact customers and shareholders down the road as well as government oversight committees that want to take down almost all. the bank's directors. bianco we're learning about this because wells

fargo is in some ways trying to be transparent at least with their investors and this came out during a conference call but as you mentioned there's a lot we don't know about this scandal still so we do not know how many people were impacted but how many people have been impacted by the previous two scandals well if those are any indications wells fargo is in a lot of trouble started out by saying that in the most in july scandal eight hundred thousand customers were affected by purchasing unnecessary current turns ok so two hundred seventy four thousand of those people were pushed into delinquency and twenty five thousand cars were wrongly repossessed so hundreds of thousands of people were affected in that scandal and of course in the initial one with the fake bank accounts there were one hundred millions of accounts that were created which led to millions in fines so even if this specific scandal does not affect hundreds of thousands or millions in that case it still doesn't matter because it makes it

really isn't helping wells fargo as you said they're trying to be transparent they're having internal reviews and publishing this information but any additional scandals at this point could really hurt their bottom line and impact their business down the road and another thing that could or lawsuits and the financial costs associated with that there's a separate lawsuit that was just filed against wells fargo last week what can you tell us about that two small businesses one in pennsylvania and one in north carolina filed a lawsuit against wells fargo merchant services excuse me unit for basically overcharging them through the credit card processing fees they said they've been overcharged and they said that a lot of other small businesses have been impacted in the same way so they actually want to turn it into a class action lawsuit so if other companies around the country get on board if they're allowed to of course obtain that status it could be another massive problem on wells fargo's hands i know this is not going to be the last time you're covering wells fargo for us on t.v. who. thank you so much.

the cost of flying just keeps going up no matter what is the price of fuel or how small airlines make the seats well one firm found a way to save airlines billions of dollars let's see if you're on board with it a recent study by investment bank u.b.s. discovered that if airlines were to remove human pilots and make flights completely automated costs for airlines would drop by more than thirty five billion dollars a year the cost has broken down in three parts by removing more highly skilled workers aka pilots airlines would save more than thirty one billion dollars they would save another three billion dollars by reducing training costs and one billion saved on fuel these cuts would also out allow airlines to double their profits while current data shows that no surprise most flyers are wary of the idea of an automated flight a survey u.b.s.

conducted from eight thousand passengers showed that fifty four percent of them would not physically get on board but just because they're wary now does not mean it'll last u.b.s. believes that sentiment will change as we become more used to automation another factor is that we have a younger generation that will grow up with automation and come to see it as the norm boeing revealed in june that it is testing a fully automated jetliners in simulators and air bus announced it's completed its own trials on an unmanned aerial vehicle. well speaking of unmanned german car maker daimler the maker of mercedes benz has its eyes on a new venture it'll be co funding an electric flying taxi project with the aviation startup bolo copter these flying taxis would be completely autonomous and investors have already poured in more than thirty million dollars into the project the vehicle would have five seats and be able to lift off and land vertically it would have more than eighteen quiet rotors and be able to reach an air speed of sixty two

miles per hour the self flying taxi can stay in the air for twenty seven minutes and has nine lithium ion battery pack systems that can be fully charged in under two hours development is being sped up things develop copter bringing on more engineers that have experience in software design electric propulsion and flight software the company has claimed that it will be demonstrating their new vehicle as soon as this year's fourth quarter. as more unmanned items take flight u.s. law enforcement wants to be able to track all unmanned vehicles in the sky while the pentagon has okayed a new policy that allows the military to shoot down private or commercial drones deemed a threat artie's trinity charges explains. what the use of drones becoming increasingly popular the president has issued guidelines that would allow the military to

destroy disable and otherwise these drones flying near u.s. military bases. the guidelines issued friday are meant to help installations keep their personnel and equipment safe if faced with a new reality the policy outlines the rules of engagement for a base when a private or commercial drone is approaching upon its airspace this after classified policy documents were issued in early july for how the military can counter drone threats a spokesperson for the u.s. department of defense told r.t. that military installations retain the right of self-defense when it comes to you a visa or drones he said in a statement the department of defense is committed to the safety and security of our personnel installations and equipment as well as communities near our d.o.d.'s elations we support civilian law enforcement investigations and the prosecution of unauthorized u.a.s. operations over military installations although we will not discuss our specific force protection measures d.o.d. personnel retain the right of self-defense. in april drone flights over one

hundred thirty three u.s. military facilities were banned because of security concerns currently the federal aviation administration is working on rules that would require drones to be registered and tracked. in june the f.a.a. establish an aviation rule making committee that will help the agency create standards for remotely identifying and tracking so-called rogue drones while the full requirements have yet to be determined the idea is to give police officers on the ground the identity of the drones operator in the same way a car's license plate can be tracked back to the owner the agency says whose drone is that it's a critical question for law enforcement and homeland security when an unmanned aircraft you a asked appears to be flying in an unsafe manner or where it's not supposed to fly kenji's to get here or who owns companies that fly drones for farmers and filmmakers and also policy director for the drone user group network told bloomberg i don't want to be. everywhere people are very worried about their personal privacy

the f.a.a. is considering related issues as well as other matters pertaining to the trucking and i get occasional dros like air traffic management and possible legal considerations reporting in new york turn it into us r.t. . and trinity joins us now from our new york studio to talk a little bit more about this trying to be nice nice color dress there. but why is this push from the pentagon happening now. while simone there has been a concern about the possibility of intrusions by an enemy or the possibility of drones being used against the u.s. by terrorist organizations now we already know that isis has been able to weaponize drones that are commercially available so the department of defense is trying to take all the measures they can to make sure that this does not happen meanwhile a spokesperson for the pentagon said protecting their force is a top priority which is why the department of defense issue very specific yet classified policies that detailed how the d.o.d.

personnel may counter those possible threats samone trinity do we know how some companies like amazon who want to be able to use commercial drones do we know how they're reacting to this right now. while something military can respond to so-called rogue drones they see fit and i would tell drone owners that if you're planning on flying there draw a drone near a military base well i would think twice that is if you don't want one it to get shot down but the f.a.a. regulators are grown owners to know the rules and regulations governing the use of the equipment before actually using them especially since an estimated three point six million drones are expected to be in the air by twenty twenty one but all that information is on the f.a.a. is websites that's incredible and i imagine that the drone that you were using for your piece was in fact within those rules in the streets of new york archies trinity charges thank you so much for that report thanks from.

if you're not a new yorker feel blessed because new yorkers are in the middle of what's being called the summer of hell commuters are experiencing huge delays on the subway because of construction go figure they're miserable and one brewery is more than happy to cash in on that misery let's set the scene for you here bluepoint brewery president todd ashman along with his. master alongside of many others were waiting for a delayed train at penn station amtrak officials are working on a massive reconstruction plan that's going to last in the city at least through labor day now while others complained ashman here saw an opportunity he said he wanted to create a beer that reflected what riders feel as they wait for those delayed trains so he and his brew master came up with a bitter brew to match the bitterness that comes along with public transit making you late the pilsner the can is even designed to look like

a railroad schedule board bluepoint brewery plans to sell the beer at penn station where ashman is positive people will have time while they wait for a drink a one beer delay maybe a two beer delay but what do you call a beer that is born out of frustration and misery over a train schedule the answer to that one is obvious the laid all right that'll do it for us for now check out the show on youtube youtube dot com slash boom bust our teeth safe travels when you're on those trains thank you for watching see you next time. we don't. know if.

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on larry king now boxing champion amir. we looked at a few points one of them could be money if. the weather would division the u.s. is. amazing big names in that even. i'll just call them of a muslim. pilgrimage. one hundred and then a hundred put on is. a picture of my face in a box and fight i think it's all floyd so i just kind of walk to where he's going to make him look. floyd's defense is amazing is what is going to him.