say it was had that high rate but just a particular structure it's essentially. you know a lender gives the money to the utility now and gets all the interest and principal back when the bond matures so is there any let's talk more broadly about puerto rico and their debt is there some agreement because i've seen figures all over the map but maybe i'm reading the wrong places is there some agreement on what the actual number of the puerto rican debt is yes so basically the bonded goes around seventy two billion there is some a fair amount of this capital appreciation debt which depending on how you want to value that could set up there's also another forty to fifty billion dollars of unfunded pension liabilities which most people consider debt and secured so maybe that's part of what you're seeing is this bond in debt in bond debt plus pensions and what role are the banks playing this i know that with prepaid you know city is going to be involved in the auction but there are other major lending institutions

involved in puerto rican overall now so like the last deal last time that was in the market was march of two thousand and fourteen they issued a couple billion dollars of jim obligation to twenty firms. that were helped adroit that but they haven't issued any debts instant city did not participate in the deal in two thousand fourteen. but they have been the financial advisor to the oversight board which is the body that congress put in place to try and straighten up puerto rico so what are they going to do we have a sixty seconds left can you solve the problems in sixty seconds how are they going to get out of debt kate. yes so good basically they need to shrink the government because they have you know a lot of people been leaving because of the hurricane they need to just take some really active anti-corruption measures they need to work consensually with creditors to get this debt restructured and they need to also improve the schools there are very important and you know basically pretty close

a lot of really positive things but they just need to start acting more grown up i thing let me before we go you know we talk about economics and that's what our show is but i hate to you know ask about just that stuff without asking about the people there do you get any reports kate on the recovery effort to after the hurricane you know i talk to puerto ricans are you know many every day and basically in the urban areas most everything is operating you know near to normal and then you go into the rural areas where power has not been restored for a number of people those people are suffering there's no question and you know the army corps pushing hard in the private contractors and i guess prep as workers to appreciate hard to get that last fifteen percent of people in power it's been five months so. you know people have suffered a lot their number of people have suffered a lot so thank you for the update both on the economics and on the personal circumstance kate long the founder of the puerto rico clearinghouse we appreciate your time thanks but. we back in

a moment so don't go far because when we return alex mahela bitch tells us why the chinese government is seizing billions of dollars worth of canadian real estate plus bore a silly estie and i talk about those toxic exchange traded funds and here are the numbers at the closing bell all three major stock markets down for a second day in a row. the war hard sell you on the idea that dropping bombs brings to the chickenhawk forcing you to fight the battles. that you stopped by the tell you that because of

the toddler. doesn't tell you you are not pulling out. of a heart that along. with what. i . was a big push back in south korea over president moon j ends of minimum wage increase of sixteen percent which is in u.s. dollar equivalent six dollars and ninety two cents per hour this was the largest pay hike since two thousand and it's already having a real positive effect on four point six million south koreans who represent about a quarter of the nation's workforce but mr j.n. is also urging the wages go even higher by twenty twenty now small and medium sized

businesses in the country are bucking saying that they will need to lay off workers if it continues a representative a business a business association said the increases are becoming unbearable and a study has shown that ninety nine percent or ninety percent rather of businesses say they may need to cut workers from payrolls altogether. top military officials in saudi arabia have been replaced in the country's continuing shake up king mohamed bin solomon m.b.'s has appointed a new military chief of staff and commanders for land and sea forces in an effort to reshape his military last year hundreds of business in saudi officials and princes and saudi officials were rounded up as part of an anti-corruption effort and held in the ritz carlton hotel while most of those individuals have reached unpublicized settlements some remain under house arrest although they do so in style and speaking of saudi arabia many are eagerly awaiting

a decision on when saudi aramco will be there will be there are initial public offering the i.p.o. as various exchanges around the world including the new york stock exchange vie to be the trading venue for the primo petroleum based stock u.s. president donald trump has supported the around call i.b.o. being housed at n.y.s.e. . and t. boone pickens the famed oil man and corporate raider has a stablished an exchange traded fund himself an e.t.f. it's called the pickens oil response e.t.f. and it began trading today under the stock ticker boon b o o n at the new york stock exchange and why ses says this is the first time it has branded an individual's name with the stock ticker moniker. and now we move north to toronto to hear a tale about how the chinese government is seizing billions of dollars worth of canadian real estate alledge mahela that joins us alex it seems like china is doing

some cleaning house which has poured over some into your country what exactly is going on up there so that it definitely has as you mentioned billions of dollars of real estate estate it's a company called and bank it's a massive insurance company from china they bought up tons of canadian real estate and now they're under investigation in particular it's their c.e.o. by the name of lou we they're basically under investigation by the china insurance regulatory commission due to suspicion of economic crimes we know that government there in china president and his government have been doing a lot to weed out corruption this seems to be another step in that direction and just happens to be that canada is caught in the middle of this one now that the chinese government has basically taken these assets they are planning on temporarily holding them for about a year but they have the ability to sell whatever they want off so really these assets that happen to be in canada are in the chinese government's hands this one

of those things that a lot of people here in this country find perplexing is the fact that the chinese company was able to buy so much assets in canada and this is an s. o. we so it's actually a company run by the chinese government it's a government company it's not a private company right so there's are all concerning elements to it now in canada we're going to give you a little. a breakdown of what they have here in vancouver for example they have the ben tall center which is an office office complex in that city also alberta and british columbia affected by this they own a very large senior care company that happens to hold a lot of real estate assets and here in toronto we're looking at the h.s.b.c. building in toronto again this was all approved by the canadian government and that's why a lot of people are right now looking out what actually happened here about how much money and that much real estate is in the hands of the chinese government so alex are they i mean any big buildings like h.s.b.c. bank i mean are they actually taking it back what i mean what are they what are

they doing and so we said we have to have i say they're seizing it we've say they're seizing it what it what are they seizing actually what they're seizing a company's assets and a company that is causing problems for china in china and that's it's this economic crime thing so as might happen here as might happen in the states i mean once you get into this mix of that you're have tons of shareholders or in this case you have tons of clients the government sometimes has to step in to secure those clients and that's what the chinese government's doing is trying to make the clients of this insurance company to secure their assets and to secure their ability to move forward otherwise this company if it gets into trouble if there's actually economic crimes happening well everybody might go under then what sort of economic crimes do you think they're speaking of alex you know you know what will happens in china you have a lot of it like there was a lot of corruption in china in the past we know that president g. is doing all his best to to weave this out and this is something that has been

ongoing in this effort to weed out corruption is massive it's still a moving effort this means that he's digging into his own government into the communist party and nobody here is safe if you're involved in any type of business that you know might smell to high heaven while president g.'s going to be down your back and this happens to be one of these examples of this and for the canadian government the problem here is. we have a lot of chinese investment in this company in this country coming from as always and this is the equation i'm going to just bring up a quick graph here just so you can see how much of it actually is s. so we so this is state owned enterprises compared to a private so you can see that close to six billion dollars canadian but for over six billion baht four point five billion u.s. is in canada and it's just a small fraction we're looking from private to private companies from china so this is the concern also we know the liberal governments now thinking of opening up energy to the chinese government we're in free trade talks with them so a lot of people are concerned with this especially when you see something like this

going down super interesting alex thank you artie correspondent alex mahela bitch take care thank you. and we're here to talk a little bit more about exchange traded products and we're joined again by boris li f.c. and boris is a member of the nodal exchange and formally of the international security exchange and the door to bursa group morris good to be with you again last time we spoke a little bit about exchange traded products and there's been an investigation by the financial other financial regulatory association and perhaps the f.c.c. is looking into this even perhaps my old agency the c f.t.c. because these exchange traded products that we've been discussing the last several weeks we spoke last time that we were together involved the volatility of decks

explain first of all what the volatility index is sometimes they call the fear gauge explain to our viewers what that is sure so the vix at the c.b. only has been around for quite some time and it uses a combination of implied volatility calculations based off of s. and p. five hundred options that is the flagship product of the c b only to create an end . x. that implies near term volatility now over the past dozen years it's become an incredibly successful vix futurist products and a vix options products so the vix itself is just is just a data point though it but it that you're saying that the trading on that a future is related to the vix is now a traded product that's exactly right and it's a traded product first it was a traded product in the futures and options space while the agency regulated that then take it from there but now it's also it's also now wrapped inside of exchange

traded products the flagship and the regulated by the f.c.c. regulated as easy to products of that's right it's an exchange traded product listed on a regular equities exchange that holds vix futures and now that's the v x x and there are other products versions of that product leverage products that either directly hold the x. futures that's the ticker for them or they are exchange traded notes actual over the counter swaps sponsored by banks like credit suisse for example that provider we turn based on the performance of vix futures so that's a great background and thank you for explaining it because i think a lot of people are unclear about where these things fit the vix what is a data point vix futures and options are traded in the futures and options world regulated by the see if t.c. vix related equity products are traded at like the new york stock exchange and

regulated by the securities exchange with little convoluted but you did a great job of explaining that and hopefully you did they're wrapping it up ok so in these products you're just a you're just started to talk about how there is an extra added bonus and i've talked in recent days about when. you are at a casino and maybe you've made a little bit of money and you're walking out and there is this final big slot machine and you can win you know five times your what you put in but it cost you twenty dollars but you're up see a figure you go with it now that may be an unfair analogy to these inverse vix related products but there is a similarity in that you are they are one that the profits for losses are compounded daily so exchange traded funds which people know it have been around for decades are tracking like the s. and p.

five hundred really a legitimate thing and i'm not saying the others aren't legitimate but they're way more complex explain not just the inverse and the three times but explain why they are complex the reason they're complex is that a lot of people don't realize that they reset daily as you point out a regular stock e.t.p. one the tracks the s. and p. or the russell they simply hold a basket of stocks and reflect their day to day value a lot of the leverage products and the e.t.f. ends they don't do the exchange traded notes they reset every day so every day is a brand new day and at the end of the day whatever happens it happens and that's one of the reason some of these funds and you could lose two sometimes three times what you lost that day so it's not just a little bit it's not just what the market moved it's multiplied amplifies right that day up or down which is why they are really to me and i'm curious of it in

your view to me they require a little bit different level of disclosure for average investors or maybe they're just not a product for an average investor maybe they're only as sophisticated investors i mean i'm not saying that these aren't potentially good products for risk management but what's your view well i think that's an excellent point i think there are a couple of it. it's one of the major ones that's being discussed now in a way that it hadn't before is in fact suitability so these are f.c.c. approved exchange listed products available to every securities account institutional retail investors of all levels retail investors who can't even trade options because they have been approved in fact can freely purchase these inverse leveraged products now it's up to the individual brokers to decide whether or not it's suitable and each one of them has the ability to prevent access to those products and some of them have some of them have done so after the fact but the

f.c.c. is now also looking at whether or not these products perhaps should have never been approved in the first place and what additional disclosures might be required the fact is most people don't read disclosures and that doesn't just apply to retail investors most sophisticated investors don't read disclosures either however those investors tend to have a broader and more generally sophisticated understanding of the dangers and the implications of being a long or short some of these funds well you and. many of our viewers may find this surprising but as a former regulator i agree that there's too many disclosures out there because there's so many pages that you'd eat that don't mean anything and you just it so but for these products so i'm also a big believer in trying to have regulations that live and breathe new change and maybe they should go through and find out which one of these disclosure requirements that they need to delete and then after they've done that perhaps they

should go back in and put in big red twenty four point type with a skull and crossbones and be careful about these a.t.p.'s. thank you so much for being with us sure appreciate it thank you for having me. and finally aircraft maker boeing has reached a tentative deal with the trump administration for two new replacement air force one aircraft the total cost of the seven forty seven's is estimated at three point nine billion dollars a white house spokesperson claim that president trump haggled the price down by one point four billion dollars you may recall that the president had complained about the cost of the aircraft on twitter prompting boeing to point out the unique and costly needs of a presidential plane while there have been some cynics sniping at the president if it's actually save some money good for him now he can go on to the other four hundred forty billion dollars in annual deficit godspeed thanks for watching be

sure to catch boom bust on youtube youtube dot com slash boom bust r.t. see you next time. feel.

good news is the state of the nation address to unveil russia's new strategic asin all including a nuclear capable missile that said to be able to smart all existing defense systems. also to come for civilians are killed by militants in the syrian district of eastern that is a third humanitarian cause established by russia collapses it comes the un security council debates possible solutions to the crisis in south africa's parliament passes a motion that could see all white farmers across the country stripped of their land without compensation we hear different opinions on the move.

watching r.t. international she's gone five o'clock here in the russian capital now our top story president vladimir putin has delivered his annual state of the nation address to the russian parliament sharing his vision of the country's future during the speech the development of new strategic weapons which he claimed maneuver all existing missile defenses. as more to tell. did me a putin's fourteenth address and the first step out of it was largely dedicated to domestic issues it was incredibly ambitious the things he called for in the things he said russia must do now he said it needs improvements across the board massive new funding and expansion in infrastructure and you also address outside concerns security concerns namely the united states and nato which had been expanding

building up. the stablish ng and setting up their own missile defense complexes surrounding russia basically vladimir putin said but no longer. is through russia or is a major nuclear power but basically nobody want to talk to us nobody listens to us . so listen to us now which are things have changed since two thousand and four which is when vladimir putin was referring to in the speech led to me a putin unveiled the whole range of new strategic weapons to get more advanced with greater range and more powerful than ever before and first and foremost among them perhaps is a new nuclear powered nuclear capable cruise missile that has unlimited range and that it can reach anywhere in the world as well as being very hard to track or shoot down june through an unpredictable flight path and its new flight

was. are on. additionally vladimir putin presented the new super heavy intercontinental ballistic missile as well as an advanced underwater drone capable of delivering nuclear weapons at speeds much greater than before new advances in laser technology as well but unites all these new weapons is that it is incredibly difficult to track will intercept them or to nullify their effect but the point of all of these new weapons is not to scare anyone it isn't code words any want to force russia's will in any other country and certainly not to invade anyone else it is to protect and defend russia's deterrent and its sovereignty and us to show why in the emotion i see russia's growing military might is not meant to threaten anybody we have no

plans and have never had plans we're going to use this potential to achieve offensive will aggressively and russia's enhanced military power is simply a guarantee for peace on our planet for preserves the strategic balance of forces in the world here in russia vladimir putin speech was greeted by. thundering applause but how his message will be received a broad in washington for example will have to wait and see what mr payton also spoke about the economy and we spoke to the russian minister of economic development and the minister of finance right after the president's address and they told us what they think of the goals friday may putin has set for them but the signature of all these restrictions stimulated russia to increase production and we've been drug growth not just in sectors such as agriculture and every day goods we see the reorientation of our economy in science towards what we previously received while inputs we're developing our own high tech industries. creature

prettier the key priority is taking a konami growth rates above the global average the goal set before the government of vital and will require more investment but all six key initiatives highlighted by the president obama development increased life expectancy improved business climate developing human capital as its workforce productivity and reducing poverty have already been making progress for half a year now we're going to take them to the next level. but when you might say. ok we can discuss this a bit further to because we're joined live now by defense and political commentator and they are in good afternoon thanks for coming on just let's start with what we're said in terms of military developments because that's what's grabbing the headlines at the moment how do you think western leaders will react to what was said. well defense experts in tel aviv have

watched quite closely and with great interest and by the way one of your ministers mentioned life expectancy obviously an increased life expectancy means no nuclear war between the powers so first of all the tone that they know to the experts in tel aviv was that it was defense terence competition and containment no aggression no thoughts of starting off initiating a war which is reassuring now as for the convergence of strategy and technology it brought to mind some speeches by unique it a crucial in the late fifty's and ronald reagan especially his strategic defense initiative because the defense versus the often in missile technology and enter the chronology has probably reached a new phase with putin's speech and the americans even though they have known

at least in general terms that these weapon systems are in the pipeline will probably react with some surprise at the advanced stage in which they were unveiled . think there's a chance they could turn around inside this just proves what we what we have been saying russia is a threat and now it's an even greater threat. well you know it's a cat and mouse game president drum only a couple of weeks ago came out with a very bellicose statement regarding the u.s. nuclear posture promising that the u.s. will have a nuclear arsenal the second. if rhetoric really reflects reality we are in for a tense period but this seems like the opening gambit. in

a conversation between leaders which once they meet face to face they could tone down and get to some more sobering ideas ok i mean let's just play a sound bite from president putin today just to give people an idea of what he was saying this was his reasoning for increasing russia's military capabilities let's just listen. and despite all our protests the u.s. machine started working the conveyor belt started rolling there are missile defense systems in alaska and california as a result of natives eastward expansion they've set up missile systems into new european locations one has already been deployed in romania and another will be set up in poland soon even now they're working at full speed. from that you can see can you i mean this isn't something just this is coming to this is something that's been brewing for some years i mean russia's always been mourning that we feel we're

being encircled by nato and now this is their response. well encircled may not be the right word obviously russia has been aggravated by the missile defense systems in europe originally poland and the czech republic now poland and romania but the american missile system is aimed at a more limited threat like north korea's both in quantity and quality it is no match for the full thrust of russian missiles so the problem is really more diplomatic or strategic because obviously russia has many assets including. and in other places. easily bypassed american based missile systems but the americans want to show the european countries that they

have an umbrella over them they have a healed over them and that they could remain. quite clear about american intentions even if all they know globally america is in retreat america is not forward based and if the told his people to asia so it is only done to reassure the europeans no entry russian schemes involving. a really good to get your thoughts on this we have to leave it had it was to me over and defend some political commentator thank you thank you. now let me today four civilians have been killed by militants in syria. while the. humanitarian pause was in place russia's reconciliation center said the desk angel demonstrations in the district and as a result the third humanitarian pause was then.