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tv   Boom Bust  RT  September 25, 2018 1:30am-1:57am EDT

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this is boom bust broadcasting around the world and covering the world of business and the impact upon all of us i'm part shelton in washington thanks for joining us coming up today we talk budgets and deficits of national government with a few episodes on the outliers including the tale of two european union nations italy and france with william some of the executive director of the coast guard tech center at american university and we take a look at the german dax with r t correspondent peter oliver plus the auction we told you about last time between twenty first century fox and comcast for control of u.k. sky broadcasting was completed over the weekend the first thirty nine billion bucks is comcast we look at comcast as an entity and i asked our friend steve walburga
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lionel of lionel media what the future holds also i'll tell you about some breaking and curious crypto news out just about two different countries italy and india they're taking decisively different directions on crypto currency and we're jam packed as usual so let's write to a few headlines. china is warning that they are withdrawing from trade talks with the u.s. plan for next week has become more than an idle threat even worse trade issues now seem in tango with geopolitical issues of war and peace on friday chinese trade diplomats scuttled the expected trade talks as promised over president trump's imposition of tariffs on an additional two hundred billion dollars worth of chinese exports to the u.s. a chinese foreign ministry spokesperson told reporters nothing the u.s. has done has given any impression of sincerity or goodwill the chinese foreign ministries top deputy has summoned u.s. trade and bastard terry branstad for a formal. airing of grievances over u.s.
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sanctions not tariff but sanctions against china the u.s. sanction the chinese army and its director over weapons purchases from russia since the u.s. already has economic sanctions upon russia a spokesperson for the chinese defense ministry called the u.s. sanctions quote a blatant violation of basic norms of international relations and there is other sanctions related news with implications for war and peace on another front as the president of iran hasan rouhani the accuse the trumpet ministration of waging war against his country president rouhani comments were made into iran before a separatist group attack on a parade marking the beginning of the iran iraq war similar to pearl harbor day or morial day in the u.s. national resistance claimed responsibility for the attack which killed twenty nine people civilians including a four year old girl among them and wounding seventy inflaming anger toward the u.s. and its regional client states iran's supreme leader accused saudi arabia and the
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united arab emirates of paying attackers president will address the united nations general assembly in new york on tuesday and president trump is expected to personally preside over the security council representing the united states stay tuned on that one. we now turn to budgets and deficits in the u.s. and in the e.u. to help us out we are once again joined by our friend the executive director of the call god tax center at american university professor donna williamson professor thank you so much for coming back with her appreciate it let's start with the u.s. i was so struck and it was maybe ten days ago by president trump's top economic advisor larry kudlow who said and i believe it was on c. and b. c. to becky quick he said look the budget deficits are caused by spending not the tax cuts. and i just thought it odd i mean it you can argue either way but what do you
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make of this well basically it is hard with two blades part obviously if you increase spending your deficits are going to go up and conversely if you cut taxes your definitions are going to go up so in both cases that's what causes the death that's both increased spending and tax cuts which results in less revenue so you just have less to spend and it really depends i mean even if you take professor spending that doesn't mean that that spending might somehow raise some revenues or at least may have some other positive effect that would. ultimately raise revenue you hire a bunch of people for infrastructure and they get jobs and those jobs they pay taxes on their wages that they get you know it may not happen right away and it may not be you know equal apples to apples thing and the same with tax cuts right i mean tax cuts could ultimately reduce the deficit if they work if they work part
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that's the sixty four dollar question will they work now we see the tax cuts in the short term have created growth in the economy there's no question about that but in the long term we just don't know and the economists do disagree on the effect of tax cuts in the long term and whether this will actually increase revenues sufficiently to offset the cuts so you'll have sufficient money to spend well we'll cross our fingers and hope that it actually does result in that now all we know for sure is it's cost a lot of money but maybe to work out for the for the positive so we're happy about that let's move over to the e.u. and i was just struck because some of the news out breaking today is really a tale of two strategies with regard to the budget deficit on the one hand you have a french president mccrone who is being criticized by the largest employers unions president employees union president saying that president mccrone has not cut the deficit enough like he said he was going to in. presidential campaign and they need
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to do so what do you make of that one well that is my view bart because fifty six percent of the g.d.p. france is attributable directly to french government spending so to cut spending in france would result in serious impact upon their economy that said again as we said earlier if they can cut the spending and generate more hiring and have more revenue to spend on other effects then perhaps it will work but i was puzzled by that one because for a labor union to suggest that you need to cut spending rather than raise taxes i found it was sort of odd to hear that from labor usually one wanting spending on either programs that help their members or programs that like i was mentioning infrastructure earlier that create jobs for their members so i was struck by it too but i'm so glad that you said the g.d.p. ratio to the deficit because it actually is a big part of it in this case and the spending for better or worse it does help to
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growth that's the only growth. either from government spending or tax cuts that give rise to more money in the private hands to create the spending there that's the long term issue and this week we have the finance minister for italy sort of the other tale of these two strategies on deficit who is to release the budget for the next year giovanni tria and the call there is for mr trius to increase spending to accommodate the president sergio. promises that he made in the presidential campaign and italy is already on a rough and rocky road with their economy right they certainly are and it's very interesting to see they're going into a stand a campaign political campaign and so to cut spending there will be very interesting to see in fact italy has declared they're going to increase spending which is very interesting insofar as it runs against e.u. . debt limits the e.u.
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has very strict rules about debt limits there not being more or less than three percent of g.d.p. so we have to wait and see whether that. says they're going to care more about italians and they're going to care about the e.u. so they're going to increase spending i think for political reasons as well so interesting before we let you go professor i wanted to circle back on a matter that we talked about once or maybe twice and that is something that i assume is not going to happen but i quite frankly have not paid a super lot of attention recently and that is the trumpet ministrations proffer to try and reduce taxes yet again going no place faster is there anything new you've got it doing no place fast tax reform to they're calling it and the house is going to take that provision up i think this week or next but needless to say it's not going to gain weight of the senate we're going in the midterm elections we know what's going on there absolute the midterm elections coming up in november possible that the house could change from democrat to republican hands who
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knows we'll have to have to see but very hopeful thank you so much professor thank great to see good to see you. and not long ago we took a look at the french stock index that cac today we look at the german dax r.t. correspondent peter oliver from berlin. the dax is germany's blue chip stock market index and amongst the global names listed there are the likes of siemens the farmer sooty coal and chemicals giant buyer the automotive international daimler group they're the guys that bring you miss a.d.'s how does the dax look right now it's been affected by a ten point plus drop in the zandi w. indicator of economic sentiment well what that gives an indication of is the opinions of economic columnists sound of analysts of how they think things are going to pan out and it's not making good reading at the moment ten points plus
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down it is however better than the thirteen point drop that was predicted now this drop in the city w. it didn't affect the currency markets we see it we saw the dollar in the euro route trade relatively as they had before however it was the dax the took a hit and in fact any type of recovery of those numbers has been incredibly sluggish as germany's stock exchange is being slow to recover. and we thank peter oliver for that report and as he mentioned a few of the largest stocks traded on the dax there's a little more on those siemens a german technology engineering multinational started off the year here seventy dollars per share but is down to about sixty four dollars in trading today and buyer a bear the drug maker and newish owner of troubled one santo which we've spoken about related to their weed killer problems has seen a decline as we might expect in stock prices this year especially following that ruling which awarded two hundred eighty nine million dollars to
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a plaintiff in california who said his cancer was caused by a month's santo's weedkiller the stock went from just over thirty dollars in january to just above twenty two dollars in trading today and dimer agena which owns among other things british sadie's benz has faced some troubled times related to admissions scandal that expanded to other automakers outside of the first bolt swag and including done work at the start of the year di more stock was roughly eighty two dollars per share but it has dropped also to sixty six dollars in trading today. a meeting of policy makers from the organization of petroleum exporting countries and select group of non opec allies and stakeholders russia most notable in that second category concluded without any action to increase supply and lower prices the defacto decision to take no action came after u.s. president donald trump demanded action to lower prices via his favorite method of
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communication twitter mr trump's online shouting seems not to have swayed anybody at the meeting though the saudi oil minister tried to move the issue of the ministers in action saying quote since june saudi arabia has met the demand for every barrel that has been requested the minister seems to have protested perhaps too much when he said flatly i do not influence prices. ten time now for a quick break but hang here because when we return after the weekend are. comcast is purchasing u.k. sky will look at comcast as the energy and ask our friend steve malzberg a line of why no media what the future holds plus i'll tell you about some curious crypto news out of india and italy which show the nations are headed in decisively different crypto directions as we go to break here are those numbers at the closing bell back and forth.
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in a world of big. and conspiracy it's time to wake up to dig deeper to hit the stories that mainstream media refuses to tell more than ever we need to be smart we need to stop slamming the door on the back and shouting past each other it's time for critical thinking it's time to fight for the middle for the truth the time is now for watching closely watching the hawks. i've been saying the numbers mean something they matter the u.s. has over one trillion dollars in debt more than ten times happy each day. eighty
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five percent of global wealth to the rich eight point six percent market saw a thirty percent rise last year some with four hundred to five hundred three per second per second and bitcoin rose to twenty thousand dollars. china is building a two point one billion dollar ai industrial park but don't let the numbers overwhelm. the only numbers you need to remember is one one business show you can afford to miss. one can only. it's hard to imagine decades after the war a nazi don't it was still active. in the nineteen seventies crittle had as the chair of its poet a man convicted of mass murder and slavery ash was a german company going to develop so that to mind a drug that was promoted as completely safe even during pregnancy. to have terrible
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side effects what has happened to my baby is anything but. yeah she said she's just . minix of it mind victims have to this day received no compensation they never apologized for the suffering that not only won't the money i want the revenge. i. welcome back the government of indian prime minister narendra modi is having trouble procuring three dozen new fighter jets opening a rift with france and a window for a u.s. plane maker boeing that is to push for changes in indian picture mitt policies for as president mannion mccrone angered indian officials when he suggested that official pressure had been used to coerce french just made jet maker decide into doing business with troubled tycoon bonnie the charge set off
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a predictable political storm in india given the important wall of corruption as a political cudgel used by president modi is party the b j p against the congress party and through the president of boeing in india who has called for india to weaken its procurement policies that require inclusion of in country companies as partners the so-called offset program critics have suggested the offset program can create corrupt arrangements such as the one to lead. by president mccrone. and sticking with india jet airways of india is writing currents of increasing financial turbulence this week that carrier owned and founded in one nine hundred ninety three has been hit by unfortunate headlines recently after jet airways crews failure to properly pressurized a flight from mumbai which left passengers bleeding from their ears and nose a messy report seems to punctuate a series of setbacks for jet perhaps the most serious news coming early last month
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when the directorate of civil aviation declared that they would audit jets books later jet announced its second quarter of losses after the initial release of the report was delayed in twenty eighteen jet was denying a bid to merge with a subsidiary and did not muster an attempt to bid for air india reports are that the indian government is now concerned enough to measure which could lift jet including a cut in jet fuel prices and aircraft servicing taxes as well as more generous credit are being considered considered to help. and we now move to that media auction over the weekend that we told you about last time where comcast a twenty first century fox were bidding to own telecom and broadcasting giant sky u.k. sky is the largest of the u.k. pay t.v. companies and comcast has one although some might question if it is a winner at a cost of thirty nine billion dollars here to help us understand a little more about comcast and which some outside of the united states and some
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within the states might not be aware of and the future of what holds for both the company's line of wine old media conservative t.v. and radio commentator steve malzberg gentlemen welcome thanks for being here ally and first let's start with you tell us a little bit give us sort of the fifty cent tour of comcast a big deal here in the u.s. people may not know outside of the u.s. tell us a little. comcast is the second largest cable in broadband company here in the the in. u.s. it owns a number of forty states or so out of the fifty and has a number of programs over that. programs and devices and the like it also by the way oh and can see universal and b c m s n b c it has a news footprint as well but it's looking to go elsewhere because the bottom line is that everybody else will tell you the bottom line is going to be subscribers and subscriber platforms and especially when we have a cut the cord mentality in this country they have to either diversify or perish
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and arresting and steve we spoke about this on friday. the auction before it occurred now that comcast has won the bid at thirty nine billion bucks are they going to really be hands on or begin to go and pretend they know what's going on and europe what do you think. well if you listen to brian roberts the head man at comcast he says that sky will operate independently me with the backing i get all choked up when i say these kinds of figures with the backing of a one hundred fifty billion dollars company which is as you pointed out that all their businesses he likes the leaders to act independently he favors entrepreneurism and also he favors the spirit i should say and the fact that everybody has their own input and decentralization is an important part of the company i have to feel that and by the way he also speculate
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that the head of sky will remain on so all these statements and actions do indicate that sky will maintain a great deal of independence but because as lionel correctly pointed out obviously owning n.b.c. universal and being that it's such an important get for comcast for the future of n.b.c. going forward i can't help but think and call me a skeptic that they will you know have their hands and noses and faces in there and rightfully so to an extent because it's not just another business it is key to a big part of their business surviving and going forward and lionel tell us about that key tell us about the footprint of you know i noted in our opening that they were the largest pay t.v. in the u.k. but they're more than that tell us more. well again keep in mind that the future right now you know in the old days it was content content content and who are your
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stars and what are your programs and what is your fall line up today it's how many subscribers you have where are you with about twenty five million new individuals including europe and italy in the u.k. and ireland and that but also interestingly enough what some people are saying is they're finding that the regulatory bases in the regulatory labyrinth that they have to deal with and so i think a lot of you are are a lot of these concerns are right and you know did steve do you think they may have overpaid for this thing part it's incredible when this bidding war started in two thousand and sixteen since that point to the final forty billion dollars of a bit of offer if the price is more than doubled their share price is more than double the offer double i mean it's incredible how does a company like sky's value double in two years when basically it's offering the same product so yeah and i think disney played a hand in that because in the bit in the betting comcast paid ten percent more than
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disney's highest bid so i think either smiling all the way to the bank right now and lionel finally is also going to go right ahead you know it's interesting because both sides accuse others you know when this thing first started off. comcast is being played as the genius by playing this couple blanka chess move by forcing uyghur to to to overbid and there's a ok fine it's yours that he stuck with ha ha now it's switched all of a sudden now comcast says we want sky and uyghur sits back so sky comcast looks like it loses so in the long run what the street is saying is it's a wash share and maybe too much it may be over bought not only over leveraged as well but in the long run who knows but both of them were both guilty and the recipients of this particular move. boy i thank you so much guys steve malzberg and lionel of lionel media we appreciate your time thank you bar thank you. and
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before we go we check in with crypto says india's central bank the reserve bank of india has told the supreme court that not only will they prohibit the use of crypto currencies but that their ruling should not be challenged by businesses we'll keep an eye on that which is pretty interesting for the fastest growing economy in the world. and in a tell you news today i fand token cryptocurrency will be offered by the juve's ball club that's the football or soccer team that both star player christan e o. naldo rather the team has one of the largest fan bases of any team in the world and a massive social presence the tokens will be tradeable and will be offered on the socio us platform that's a crowd management block chain text lab platform which is seeking to monetize the sport it remains unclear if the token will go through a traditional ishall point offering and i.c.a.o.
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to raise funds but the concept of sports block chain encrypt those is not only interesting but could be a great goal for all of sports and that's it for this time thanks for watching you can catch boom bust on direct t.v. channel three twenty one dish network channel two eighty or streaming twenty four seven on pluto t.v. the free t.v. app channel one thirty two or as always catch us that you tube dot com slash boom bust r.t. so long for now. not actually distances leeks lawrence look out to feel.
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good when you. present them with some good things to present to. the but. chose to squash the states of a scene. there's. just too little. of the high frequency trading game it's all about speed look at goldman sachs could figure out a way to go backwards in time and still money from trades in the history they would
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do it but the second best option is to just increase the speed in the here and now to steal better much rapid pace. medical use downs through leaks doors lead guards cardio. police. and when you. look at the distance was most of the book about.
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trust in school still it's about seeing mean there's. just too little.

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