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tv   Boom Bust  RT  January 4, 2020 1:30pm-2:01pm EST

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the life out what i found that today. americans actually know anything is an act of terrorism and by leeching of iraq's sovereignty i mentioned the middle east have roiled markets that the u.s. has assassinated an iranian general in iraq we break down how the attack has moved markets and what this could mean for the future of geopolitical relations but the saga of multinational businessman carlos going takes another turn as he has managed to escape japan's r.t. correspondent sara as much as aopa and lauren fix the car coach are both on hand to help us break down the caper we have a pack show today so let's jump right in. and we begin the program with reaction to the assassination of a top iranian general in baghdad general custom somani who led a special forces unit of iran's revolutionary guard was killed in a u.s. drone strike on thursday the pentagon has confirmed the department of defense issued a statement on the attack saying the direction of the u.s. at the direction of the president the u.s.
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military has taken decisive defensive action to protect u.s. personnel abroad by killing so a money the head of the iranian iranian revolutionary guard corps could force a u.s. designated foreign terrorist organization general so the money was actively developing plans to attack american diplomats and service members in iraq and throughout the region the d.o.t. release added that general stolen money was responsible for the deaths of hundreds of americans and coalition service members as well as the wounding of thousands more following the announcement that from the u.s. iran's foreign minister mohammad javad zarif commented on the attack friday in toronto. america's action. is an act of state terrorism in violation of iraq's sovereignty which is murdering her sons who dedicated their entire fighting terror any russian terror is. through. to be outdone u.s. president donald trump held an address at his palm beach resort moral law go on
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friday rationalizing the attack and issuing a warning to anyone who would harm americans divided leadership or murders policy under review is to terrorists who are harboring to do harm to any american. we will find you we will eliminate you we will always protect our diplomats service members all americans and our allies. so let me just been. perpetrating acts of terror to destabilize the middle east for the last 20 years what the united states did yesterday should have been done long ago. now global markets are reacting to the assassination as equities tumble and are now swimming in a sea of red with few pockets of green around energy stocks utility and defense names recenter min is now fragile as geopolitics has come back to the table now this is something that could have major across asset implications among those safe haven currencies such as the japanese yen jumped to the highest in months as
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a message flock to safety with the holidays in tokyo this may 4th then conditions exaggerating the move the swiss franc also search a 4 month highs and the hong kong dollar hit a 2 and a half year high against the dollar even the alternative safety asset is rallying up almost 5 percent meeting the entire market up u.s. bond yields fell to their lowest in 3 weeks now as the market participants are now calculating the risk of retribution from the iranian side gold another safety asset is now sharply higher as a jump over 1.5 percent as investors dump riskier assets in equities for the precious metal gold continues to rally after its enormous run in 2019 as analysts. the main constructive with the late cycle concerns political uncertainty and slowing growth to support demand the fear gauge of wall street the vix was up 18.4 percent friday as energy stocks popped on fears that an oil spike might spark a recession like it has historically back in 1017 that risk is also heightened as the global economy has been struggling amid a worldwide manufacturing slowdown. and now from our well miss we're joined by
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former pentagon official michael maloof welcome thank you so michel there is a ton to unpack here as we go over this attack but before we get into the economic advocation and market moving why was this an act of war it could lead to it and. just 2 weeks ago for example you had the secretary of state pompei o and netanyahu talking actively about regime change in iran and and they the iranians and the iraqis the israelis rather and and the united states for years have monitored. actions activities in fact he was openly invited into baghdad and arrived at a judge very openly and but yet the united states chose now to. take action against him whereas in 2 administrations prior even the israelis they could have done something years ago but they never did why because there were
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fearful that it would lead to the conditions that we're seeing today salute now i want to talk about the economic impact here because obviously a business and finance show now we've seen oil markets move pretty substantially today and things are going up what are we seeing here and how important is oil to this situation where the oil is going to be more important to other countries in the world then to us because we produce are in mono we're not exporters i think that if the iranians take retaliatory action of of some kind the say in the persian gulf that street. war moves basically blocking through mining or sinking ships which could be one of the responses to what and just occur it will bring virtually overnight an economic depression because you're because of 40 percent of the oil comes through there for other countries that are net importer soil china would be
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dramatically affected and the world economies would be very affected by this literally overnight so they iranians have weapons and i think they may now begin to demist plus they could hit refineries oil refineries and what have you in the g.c.c. countries in countries that are housing u.s. personnel they want hit the americans per se but they may hit in directly those structures the oil structure so the the it's very very we're at a very serious moment here that the iranians could do things without directly confronting the us but attack it's the economic basis for the world if they cannot if they can't survive economically no one else is going to. so we've watched as the u.s. markets they've taken ahead following the news and it's no surprise that some companies nyc northrop grumman general dynamics and monkey martin they have all had
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made some gains quite substantial gains of over 5 percent today do you think that it's that war that war actually tries the market in this case is very. very clear because if you're going to be didn't vesting in these. defense companies you've got to have a crisis somewhere in order to justify the spending and we're talking big bucks a lot of jobs and invest in your investors for example are going to be the ones that want to get in on the winning and make money so you gotta have a crisis somewhere in order to justify it and that's that's the concern that we have here are we as a as a. people prepared to go to war so that some few investors can line their pockets this is a question people have to answer for themselves and i know what i think you should be the case because at some point you've got to say you nuff enough it's going to be an interesting dynamic because every single time there has been a war in the history the markets have always rallied as
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a response but on the flip side with the oil with the oil crisis now and what potential oil embargoes this might lead to the same situation as back in 170 has led to why well you know and this is what we're talking about i mean it could it could really have an impact i mean the chinese for example important 90 percent of the oil maybe more and it's and if this is cut off and saudi arabian oil and the other major source of theirs would be affected the only other source that would not be affected is what they're getting out of russia right now so this is china and russia have a have a lot at stake here as well absolutely former pentagon official michael maloof thank you so much for being at leisure. and we need to catch you up on the latest happenings in the u.s. china trade war president donald trump earlier this week said he plans to sign phase one of a trade deal with china at the white house on the 15th of january it is unclear which high level representatives from the chinese government will be present for
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the signing however recent reports say chinese vice premier league. could be in washington to make the deal the news marks an easing of trade tensions between the 2 nations but in a tweet announcing the player signing of phase one president trump said he will be traveling to beijing in the near future to begin phase 2 talks which could reinvigorate the contentious relationship between the 2 sides. it's been a turbulent start to 2020 with markets soaring on the 1st trading day of the new decade only to tumble and crush risk appetite let's see how we ended up over in moscow the mo axis up as oil surged over 4 percent giving a boost to its index heavyweights russia has expressed concerns over the assassination and in a statement said that the us actions have the potential to seriously aggravate the situation in the region now down in japan the nikkei is down 5.7 percent for the week after ending $29000.00 at 29 year highs auto lost ground and led the declines
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with honda mitsubishi and suzuki all falling by more than one percent way heavily on manufacturing retail also solid declines now japanese companies are growing more and more pessimistic about the economy due to worries over a prolonged china u.s. trade tensions as many still doubt if a phase one will improve conditions over in china the shanghai asian equities were up over 2.5 percent as china's latest economic data showed better than expected growth momentum that easing of china u.s. trade tensions lifted demands for chinese goods and boosted factory production in december with the next coming in at $50.00 now this figure shows that manufacturing expansion for the 2nd straight month after showing contractions for the last 6. called the hang seng traded up for the week primarily led by mainland chinese companies while the markets have been battered by the rise in civil unrest the numbers are in and hong kong still remains number one for i.p.o. listings in $29000.00 new york for the 2nd year in
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a row there is already about $160.00 companies that have applied to get listed on the hang seng for 2020 already giving investors confidence in the strength of the hong kong capital markets to weather the slums now over in india the sensex is down for the week as the u.s. airstrikes dampen appetite for risky assets and pushed oil prices up fears of a supply disruption. global investors turned risk adverse on fears of a geo political conflict and fled tech and healthcare names in exchange for utilities and consumer staples down australia the a.s.x. is down over 1.2 percent despite gains and gold and oil global economy still remains dominated by uncertainties and the i.m.f. now expects the australian economy to grow by 2.4 percent in 2020 and finally the shares and south africa are flat slightly up as the gold rally pulled up south africa's metals mines and material sector the rand is now under tremendous pressure as volatility and uncertainty returns to the market and investors rotate from risk
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on emerging markets over to risk off to safe haven now over to browse with the rest of america and europe thank you so much kristie markets of the e.u. and the americas are a bit of a mixed bag for the holiday week in paris we see the cac slightly down for the week after hitting record highs there was a trader selling off big chunks right before the new year only to get a big bump on news of a phase one trade deal signing later this month but the u.s. attack on the iranian general well it caused markets to slip before rebounding and in the week nearly even the german dax fared similarly for this week however was not able to rebound the same way we witnessed in paris when we talk about how the oil prices have surged this week it's most important note that this has an effect on airlines had their worst day in a month on friday with their stock plummeting 6.5 percent now the footsie in london also down facing the same issues as most of the western markets there were some bright spots though as food delivery just had reasonable gains and tobacco stocks in the u.k. are doing well after the f.d.a.
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announced a ban on flavored east cigarettes and i just want to point out we're going to talk a little bit about that coming up in the show now moving to the americas in south america the brazilian vessel is not just up for the week it's renewed historic highs of over 118000 points continue a trend that saw the index gain more than 30 percent over the last 12 months brazilian i. nor mining company ballet headlined the games with their stock price moving up more than one percent on the week going north to the b.m.v. in mexico for the week even after their central bank warned that the recently announced minimum wage cut could create inflation issues and the manufacturing sector took a hit in the month of december now in the u.s. we have 3 indices here and we have the similar up and down experience as we witnessed in europe a massive sell off before the new year a surge in trade hopes and then after the assassination of general soleimani the nasdaq and s. and p. were able to rebound to near even however the new york stock exchange and it up on the weeks the lightly negative we're going to wrap things up north in toronto the
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ts x. is down on the week basically the same factors at play but we did see air canada led the losses dropping 5 percent while mining company 1st quantum minerals which predominately mines copper fell by more than 6 percent on friday alone and that is your global market walk for the week. time now for a quick break but. the saga of multinational business takes another turn at the internet if there is. a line. on how to help us break down the paper and how to get a break here are the numbers at the close. that
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gap.
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when you. look at the distance was most of the book and movie about. it's going to states that. there's. just too little. but is physics physics is nothing but the harmony you can create on vibrating strings but it's chemistry chemistry is the melody the melodies you can play on strings what is the universe the universe is a symphony of strings. china's
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shalmi is investing $7200000000.00 into artificial intelligence and 5 g. over the next 5 years as management intends to make shall. a global leader in ai shalmi which started off as an affordable cell phone maker and 30 percent of the china smartphone market now competes with it which has 42 percent it's since expanded its brand to various internet enabled products such as smart t.v.'s smart watches and smart rice cookers looking forward for 2020 shalmi plans to make 5 g. phones more affordable and pioneer the field of connectivity and smart devices. and the united states food and drug administration will bar the sale of fruit and mint flavored east cigarette cartridges the regulatory body said on thursday the f.d.a. said the ban will not currently affect the sale of tobacco and menthol flavored
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cartridges and would not restrict fruit or mint flavors from refillable tank based faithing systems so they will be focused focusing primarily on cartridge based systems like the products made by jewel health and human services secretary alex is our says the policy seeks to strike the right public health balance by maintaining the cigarettes as a potential off ramp for adults using combustible tobacco while ensuring these products don't provide an on ramp to nicotine addiction for our youth the cigarettes are currently a $6400000000.00 industry in the united states according to analytics from wells fargo on the news altria group which owns more than a 3rd stake in jewel so their stock dropped by more than 2 percent before rebounding slightly on the day in december president donald trump signed a federal spending bill into law which will also raise the age to buy cigarettes and e. cigarettes from 18 to 21 years of age. the
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ongoing investigation on auto executive carlos ghosn continues after he vanished from house arrest in japan just this week the fugitive stereoscopic is an open investigation but details continue to emerge are to correspondent salmaan to say ok a has a story. former nissan c.e.o. carlos ghosn sin left in japan on sunday. right where he was on house arrest awaiting trial goes in faces 4 counts of financial fraud for misreporting his salary compensation and could face a lengthy jail term in japan he was arrested back in november of 20 teens earlier this week the former nissan chairman announced i am now in lebanon and will no longer be held hostage by a rigid japanese justice system or guilt is presumed discrimination is rampant and basic human rights are denied he went on to say i have not fled justice i have escaped injustice and political persecution i can now finally communicate freely
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with the media and i look forward to starting next week details of his escape are still emerging but here's what we know so far goes in secretly took 2 private jets 1st to istanbul and then to his native home of lebanon people familiar with a turkish probe claim goes an escape the country hidden in a box meant for audio gear equipment goes and who is a lebanese also holds french and brazilian passports french attorney for carlos goes inside his client of here to be filled with combative spirit after fleeing to lebanon. and i have a feeling that he is at the same time relieved combative very impatient to be able to explain himself i believe that he is impatient to explain himself and all the transparency to all the questions and to answer all the questions that may be put to him. on thursday lebannon said it received a red notice from interpol these red notices are issued by one country to another
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but they have no power to enforce the request interpol website points out a red notice in international wanted persons notice but it is not an arrest warrant meanwhile turkish authorities have detained 7 people connected to go through the state from japan including 4 pilots of a private airlines company and then according to istanbul and. an employee falsified records that excluded goes in the name to fly him from japan to lebanon the lebanese authorities said goes and entered the country illegally on a french passport using his lebanese id it remains unclear just how the government will proceed this since japan does not have an extradition treaty with lebanon reporting for boom bust sarah montecito r.t. . for more on this incredibly fascinating and frankly bizarre story is the car coach lauren fix laura thank you so much for joining us today. you're welcome yeah this is been a really interesting james bond. that is we don't get these of the auto industry so
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this is like super exciting and intriguing doll of us and there's been constant changes and i just got some fresh information as well so it's been a lot of changes on the story to start with a fresh information we might as well get there 1st ok so we all thought that he was this he escaped in an instrument box because he had had a band come in play so we thought of like a double tube or maybe our harp that was a theory because harps have to go in these big wooden boxes and they have to go out on 2 wheelers we all thought that was how we got on the plane but they would have had to manually inspected at consol airport which is a 3rd largest airport so we did find out that he did show up at a private lounge no one is record of them showing up but he walked right out of his apartment and there was no one stopping him i guess that was part of the. security i'm not sure how that security he was picked up by a v.a.p. service he was taken to the 3rd largest airport he must have waited in this privacy lounge which people pay about 875 dollars u.s.
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per year just to hide in the executives and and famous people can slip in and out well the security guards if they did not a good look at his face he couldn't have been hidden in the luggage but they think that he had a disguise he then landed in love but on. ball with a french passport he had 2 french passports and of course he was a lebanese citizen and in these hailed as a hero i mean he had his picture on a stamp i mean he's pretty famous when it comes to that and even though those 4 pilots were detained they'll probably be let go and the live person will probably get in a minor bit of troubles a person who falsified the documents not either not knowing that carlos go in was on the plane or most likely he was in disguise possibly with a secondary passport that's still to be found oh well this is your question because you kind of mentioned the fact that i mean he's out of space with his face on it and i mean he's very well known very well liked but in reality if you're an airport employee. how what are the likelihood that you actually know what carlos go looks
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like i mean have we been following the story what i know what carlos ghosn is going to look like i think you could probably sneak on in my car if i needed to. yeah i'm sure i mean i would know him because i've had lunch with him but i don't see most people wouldn't walk right by him and not recognize him unless you're from london and he's also very famous in france and as well as in brazil but what's interesting about all of this is that we had nothing to do with his family it's been assumed and we're still looking will hopefully have more information before the 8th when he has his big press event which i am very excited to see because this is like oh like our movie we're loving it exponential forces officers we think that he hired a team of them that specialize in extricating people in captivity which is possible a lot of these expressions forces guys do things like that course it takes money and he has a lot of money and he did very well over the years remember he's done a lot he's been a very successful very smart man he was told the big thing that caused this trigger
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in my book is he had been kept almost a year in change and then they said we're going to put the trial on april of 2020 well during christmas time he asked to speak to his wife just speak to his wife is in spoke of dirt over a month and they denied him that so then they moved his trial to april of 2021 and i think that was like that's it we're done because in japan there's a 99 percent actually higher than the percent chance that if you are accused of something you're going to be found guilty so he knew that you know you stay here and he's going to jail this is the rest of his life or you take a risk and you plot and you play and i think i would probably have done the same thing now we all know that there has been an interpol arrest warrant issued from japan to lebanon but 8 have we seen any other reaction from japanese officials regarding the situation. yeah the japanese officials degraded his apartment that he was living in i'm sure they've secured his attorney who knew nothing about this of course but and this was a this was well planned out this was not something that was planned out in the 24
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hours it's not like mission impossible we've got 24 hours and this is more this is something that was probably thought i meant he's been detained for over a year so at that point but remember we still have great kelly who was his 2nd in command who's still being held as a u.s. citizen he's still being held in japan and no one's been able to find out where his status is at all i doubt he's going to get i'm sure they're going to have an extra watch on him but we don't know if he's in prison or if he's in some private residence we have no idea and that's a concern also because he is a u.s. citizen typically in the u.s. government gets involved in this and again there's still really no true information on whether money was laundered or it was just misinformation that was submitted to the government as far as what someone salary was it's hard to believe you can get away with that when you think about the stock market is constantly monitoring and all this f.c.c. and securities information is being monitored how much each executive makes per year i mean how could they not know that it's starting to sound very fishy to me
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it's very james bond though i do love it well it definitely seems like lore and i think maybe maybe after april 2021 we're going to see the movie of carlos go to we're going to actually see how this all played out at least in a fictionalized version thank you so much and you see it before that. takes the car goes thank you so much for your. thank you. that by this time you can god bow must i new to dot com boom bust r.t. say next time. thousands of american men and women choose to serve in the country's military and the decision lotos sheltered lives every song came to a complete. the day that i was right to be instructed you know told to shut up
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they'd kill me and i see how it destroyed my life any screamed at me and he made me come in the gram my arm and he write me this berthing area if you take into account that women don't report because of the extreme retaliation and it's probably somewhere near about half a 1000000 women have now been sexually assaulted in the us military is a very very traumatizing have happened but i've never seen trauma like i've seen from women who are veterans who have suffered military sexual trauma reporting rape is more likely to get the victim punished than the offender and almost 10 year career or chose very invested in and i gave a sex offender who was not even put to justice or put on the registry this is simply an issue of our and violent male sexual predators for the large part of target whoever is there to prey upon whether that's a man or woman. in the united states presidential candidates debate the future of the u.s. the world. mexico is
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a red state you see her but to get into the burning questions of this election cycle one self big every week will fix student debt trade wars corporate money universal basic. and more church up with what's front running this sunday exclusively on r t. time after time corporations repeat the same mantra sustainability it's very important to accelerate the transition to sustainable transport sustainability. a more equitable and sustainable world. they claim their production is completely hama's. us. companies want us to feel good about buying their products while the damage is being done far away and this is something i'll just want any minute i'm even looking. in unison we do want to. underscore that with
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superman and. breaking news this hour multiple rocket attacks are reported in a rock. or a base where u.s. troops are stationed also the green zone close to the american embassy in baghdad also a residential area we've got the latest on not. coming up a senior police chief says levels of child criminal exploitation in britain are back to big boy and euro levels blaming a star at c.n.n. priestley powerful drug on. children a risk in our media city where a criminal scheme has been revealed helping foreigners illegally.

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