this is boom bust broadcasting around the world and covering all aspects of business and how it affects us all i'm kristie i and i'm bridgeboro in washington here's a look at what we have on day wells fargo's stock continues to slump in the wake of its major accounts scandal with fines taking a big hit on the company's bottom line start with nearly a public service and gives us his take on what lies in store for the breaking goliath and how the sector has performed in recent times then as one bank has left another has their j.p. morgan on you for profit we take a look at the stuff in the final quarter of 2900 and what this means for the forecast of the u.s. economy going forward without a mess of the other mess things are so many stories so little time so let's go and dive right in. the head of the anticipate assigning a phase one 'd the u.s. treasury has decided to remove china's designation as a currency manipulator never mind the fact that china should have never even been

labeled that in the 1st place according to the i'm a commodity traders and analysts are now doubting these insane amount that china is committing to buy from the us under phase one of the trade deal china will pledge to buy over $50000000000.00 more in us energy and increase ag purchases by 32000000000 over 2 years which is above the 24000000000 base line these totals will supposedly trim about 300000000000 annually from the trade gap between the 2 countries however commodity experts remain skeptical that china can even absorb these quantities without threatening trade ties with other suppliers global markets are lackluster today as they struggle to digest the news and analyze how this deal will affect them how will the china's commitment to by $200000000000.00 of trade impact other countries and their access to the world's biggest economy analysts also point out that depending on the wording and the implementation the agreement could also violate the principle of most big. nation treatment

a treatment which prohibits governments from discriminating between their trading partners it could also potentially violate the b.t.o. rules that prohibit quotas and other numeric restrictions on imports and exports so while the very legality of phase one is being questioned it's very fortuitous for the u.s. that the w.t. happens to be crippled and has lost its ability to rule on new disputes cases why is that a veto coupled only because the u.s. has been blocking appointments for 2 years paralyzing the appellate body render it frozen and unable to issue rulings smart move getting rid of the referee so that he can't blow the whistle at you for cheating now kristie i think there's an interesting question here with the w. cio being hamstrung because they don't have enough of an appellate body to actually make any rulings anymore what happens if that agreement of keeping up these purchases with products and whatever else it may be if china doesn't buy those from the u.s. and frankly if the u.s. doesn't sell them what happens then that continues to be a question that the analysts are remaining very skeptical of phase one how it will

be enforced in the 1st place because as we previously mentioned it's not a matter of if china will be fall in this phase one it's when because these purchasing amounts are just just rationally completely except in saying they topped the over the baseline previously before the test or even implemented and i think i have one more question on this is you know when we look at the currency manipulator status 1st actually more important than the christian polluter status why make the agreement if you can hold it up the agreement is just good optically for both sides it's good for president trump because he is going into reelection and this way he can tout that oh we are decreasing the trade deficit we this is a complete win for the u.s. look at all these new ad purchases that we've got china to commit to and for china it's a win for them because in this case they cannot focus on trade they got some tariff rollback so the industry isn't hurting as much and this gives them an opportunity now to focus more so on the domestic issues at hand and to the. point we were

talking about with a currency manipulator status was to their currency manipulator then the i.m.f. says no they're not and then the u.s. backs off on it when they get their 1st part of the deal it was a trump card that the u.s. kind of played and tried to use as a leverage calling a country a currency manipulator was actually a very bad thing back in the days and 2 decades ago even but nowadays with the internet and with everybody of getting available to public information saying that the i.m.f. is calling them not a currency manipulator that kind of defeats the purpose of even playing that card in the 1st place so the fact the car was non non gamer and so the u.s. now pulling back they're making a big show of it saying oh we're pulling it back in good faith when really it was a nonstarter to begin with what phase one being signed on the 15th wednesday that's tomorrow we'll keep an eye on this for sure absolutely. ford is investing $82000000.00 to expand its plan to eastern vietnam in an attempt

to boost capacity from $14000.00 units to $40000.00 units per year the company reported that it sold over 32000 cars in 2019 up 31 percent from a year earlier in contrast to its performance and mainland china where sales were actually down 26 percent this additional investment will also help to reduce vietnam's reliance on imported vehicles and lower the country's trade deficit for also plans to further expand its network of $22.00 dealerships and outlets and will continue to introduce enhanced sales and after sales services and programs ford is extremely bullish on vietnam's growth and potential future market investing heavily on infrastructure and becoming one of the country's biggest foreign direct investment automakers. and amazon is planning to ask a judge to temporarily block microsoft from working on a high profile cloud contract with the united states department of defense the commerce and web services giant has taken issue with the government awarding the $10000000000.00 jet i contracted to microsoft saying the trumpet ministration had

shown quote improper pressure and quote and bias against amazon u.s. defense secretary mark esper shut down the insinuation saying the decision to choose microsoft was done fairly and with any without any outside influence now according to the court filing on monday amazon will file a motion for the temporary restraining order on the 24th of january with a federal court issuing a decision on the matter by the 11th of february the jet i project is part of a plan to modernize the u.s. army sort services with greater technological capabilities it will eventually give the military more seamless access to data and the cloud from remote locations. time now for a quick break but here because. well continue to take a beating in the wake of a major account with find this is a company bottom line naylor public citizen gives his take on what could be in store for the embattled banking how the banking sector one time. and one bank

has left another has surged j.p. morgan has seen of some of that we take a look at excess in the final quarter. and what this could mean for the u.s. economy. is you'll need a reflection of reality. in the world transformed. what will make you feel safe from. the isolation community. are you going the right way or are you being led. directly to what is true what is great.

in the world corrupted you need to descend. to join us in the depths. or a maybe in the shallows. as the democrats gear up to officially start their 2020 presidential primary it is fitting to assess donald trump's performance in office a report card of sorts where is he kept his promises and where has he come up short will any of this really matter to november. 6th geysers financial survival. when customers go buy your display. in elf well reducible our. that's undercutting but what's good for market is bucket for the global economy.

good food descriptions sound up to tell using even for the owners so how to choose pet food industry is telling us what to feed our pets really more based on what they want to sell us the most necessarily good for the pet turns out and touch food may not be associate people believe we have animals that have you know diabetes in arthritis they have auto immune disorders allergies we are actually creating these problems it's a huge epidemic of cobham's all of them i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pay. streets the larger corporations are not very interested in proving or disproving the value of their food because they're already making $1000000000.00 on it and there's no reason to do that research. i.

i i. i. i i. i. 6 the names volkswagen welcome back by the way 6 the name volkswagen managers have been charged with fraud by german prosecutors who say they deliberately misled officials and consumers ahead of revelations of the diesel emissions scandal in 2015 you were a member of that volkswagen was found to have intentionally program some vehicles with diesel engines to only activate emissions controls during testing now the indictment says that executives knowingly and willingly participated in the development refinement and improvement of manipulation software german prosecutors

said 3 more executives aided and abetted the acts related to the scandal in a statement on tuesday prosecutors allege 9000000 vehicles were illegally cleared for the road due to the falsified testing now vehicles meant for the domestic market were also incorrectly exempted from a german road tax in $2900.00 charges of a similar nature were brought against volkswagen c.e.o. martin winterkorn and 4 other employees investigations into 32 more defendants are ongoing. nissan and renault shares have tumbled to multi-year lows monday as investors grow concerned about the state of the 20 year old french japanese alliance rumors have surfaced over the weekend that nissan plans to separate and dissolve the alliance the relationship between the 2 companies has. toxic according to the financial times and dramatically worsened following those arrests and 20 after you reported that discussions for separation were underway and that a full split would force both carmakers to seek new partners in an industry that is

contracting year over year nissan denies these rumors tuesday claiming that nissan is in no way considering dissolving the alliance critics see this as it is growing increasingly difficult to navigate for an independent company and to find a new partner in this rapidly consolidating industry were not is recovering 1.3 percent after nissan denied a separation. wells fargo bank on tuesday reported devastating earnings for the 4th quarter of 2019 citing low interest rates and legal costs hurting their bottom line now the bank reported a profit of 2700000000 for q 4 that's a 53 percent decline year over year from $6060000000.00 in q 4 of 20 team wells fargo has faced restructuring in regulatory issues since 2016 and at that time the us government cracked down on the bank to 2 wells fargo's employees creating millions of fake accounts for customers to meet sales goals newly minted c.e.o. charles scharf said of the issues wells fargo is a wonderful and important franchise that has made some serious mistakes and my

mandate is to make a fundamental make the fundamental changes necessary to regain the full trust and respect of all stakeholders sharf added that his focus since taking the helm has been doing the required regulatory work and improving the bank's financial results so joining us now to take a look deeper into this we are joined by bartley taylor financial policy advocate with public citizen and partly it is so great to have you here on the show again and i want to 1st ask you know all of this really is stemming from a 2016 situation where we saw these wells fargo employees and really we would say employees as if it's the employees fault but in reality was the bank pressuring them to make sure that they met sales goals and they were basically threatened. with their jobs so but this all stems from that so that's were 2 years out from that situation. where is the bank now and have they cleaned up this situation in the 1st place i don't know that they've cleaned it up that's where it began when regulators began to take a closer look at once was considered

a benign bank and since then at least 11 more unrelated regulatory actions have taken place so the total number is is is 12 now yes you have the fake accounts where people were given various credit card and other add ons to their account without knowing it but then you have auto insurance fraud you have investors being scammed you have mortgage modifications being done you have over charges for overdraft fees you have so many more part of me thinks the regulators are simply looking carefully at wells fargo if they looked as carefully as some of the other banks you might see some similar problems one that's what i was going to say you say they were relatively benign because if you remember after the financial crisis of 2008 into the 2010 section when everything was being restructured wells fargo was kind of they came out kind of clean they were like we don't need the bailout but the government kind of forced them to take the bailout so they could be part of the the greater bank brotherhood and they took care of it they got out of it very quickly and yeah they didn't have so many problems but now it seems like ok maybe

those were those under the surface or did this kind of come following all of that i i think that it was their public citizen put out a report that the increase in add ons to accounts has been true since before 2000 that they were showing for example when they purchased walk cobia during the middle of the crisis that they could continue to grow accounts and touches that every account had with the with the client and i we believe that was was fake that they were actually fabricating some of those numbers and as you say they were terminating employees that didn't meet their quotas they had this 8 is great you should have 8 inner interactions with each account i think one of the problems with wells fargo is its crimes are easy for you and i to understand mortgage securitization for. it's a little bit more difficult i mean and they did commit that one too but j.p. morgan goldman sachs did some stuff whose vocabulary is beyond many of us to understand but in terms of perversion i would say that j.p.

morgan goldman sachs and others are just as problematic as is wells fargo is just that wells fargo screwed people on a retail level as opposed to a higher level now prior to this entire revelation well it was actually a growing bank with huge profits and a really fast lender division as well since they have since this entire scandal blew up they've had stagnating earnings of just under 7 percent year over year compared to citibank and bank of america who are up more than 30 percent last year so are they doing enough at this point to get back on the right track or is this all is this regulatory issue to death now. they're actually under a size restriction growth i mean the federal reserve has put them on a cap that they can actually grow i actually think in addition to that that consumers looking for a bank while banks are sticky it's kind of hard to leave your wells fargo or any bank account when they have the choice there is so much bad news about wells fargo that they are deciding to go to one of these other banks. and finally to your

question i would say that there could well be managed accounting going on right now you have a new c.e.o. he would like to paint as black a picture as possible so that he can look good in the next quarter or the next year contrasting with that with jamie diamond who is arguably in his his final years he wants to show that he's leaving with a bang with a bank at wells fargo is 2 trillion dollars i'm sorry j.p. morgan is 3 point something trillion dollars they're only earning one percent or roughly of assets there's a lot of management decisions that can be made to either stifle or expand on what you're reporting as a profit and then a given quarter absolutely and moving on to j.p. . i want to talk about them because they're on the other end of the spectrum here their q 4 profits they grew 21 percent which marked a record reference revenue for any bank in a 4th quarter for their regular in the 4th quarter now as we look at possible

economic downturn in the coming months and that's what we've been talking about i mean are these numbers inflatable should they be making this big jump is everything on the up and up with them as of right now yeah i get i bring a natural skepticism to all of what they report and they get and i think that management has a decision about what to report and when that said i think that all of the big banks are playing with fire because they are highly leveraged for every dollar of their own money they have $9596.00 of borrowed money with interest when the cost of that borrowed money changes just a little bit they're going to have a whale of a problem so i see that the banks as we saw in 2008 didn't weather the crisis and we have a very generous federal reserve with relatively low interest rates and when that cost of money goes up i think they're going to see some problems in bartlett i want to get to this but i can make you have time today but el paso electric and j.p. morgan chase bank and what that relationship with the bank actually purchasing energy concern but we're going to get that to another day so i appreciate you

joining us bartlett naylor financial policy advocate with public citizen thank you so much for joining us here today thank you. and standing by to give us the market reactions to bank and to break down the latest unicorns that are attempting to go public we bring and. try to grip so the banks finish 20 on a tear outpacing the broader stock indexes in the 4th quarter but banks now face pressure this year as interest rates still stay low or even quote potentially even be flash further earnings are decent at the bulge bracket liquidity seem to still be an issue the fed still has to continuously prop up the repo market and now the latest 2 week term it was the most oversubscribed since december so what's happening here as last week the fed just. $259000000000.00 into the market. there hasn't been a clear answer as to why there is a lack of liquidity if you go back to september 2019 there was that time where we

saw the quick flash to 10 percent and people didn't know if it was because it was a sketchy person wanted to buy them a sketchy company want to borrow the money or what the reason was then it kind of blew over fed injected more money but there's not a clear answer as to why there's a lack of liquidity which for me is always a little bit concerning i don't know if it's going to blow over or it's going to turn into a bigger issue the one thing i will say is look at how fast it went from 2 percent to 10 percent and then it makes me think back to the stock market in general december 2018 how hard we came off we always go down faster than we came up you see these big moves quickly when there's any kind of uncertainty so it's just a reminder to always have your guard up as an investor and expect the unexpected. goldman sachs is set to report their earnings on wednesday this comes as their reorganizing the business to do more closely resemble their peers and grow in retail banking category now it seems like they're diversifying their revenue

streams tell us about the shift into becoming a digital bank and what do you expect to be their main focus there. the digital back is going to be called marcus i don't know who's in charge of their marketing. but it's being run by adam dell who is actually the brother of michael dell so that families had a history of success and when it comes to goldman sachs i don't think it's a near term success story i think this will play out over time but they're like. someone you just don't bet against because they find a way to win that's always been goldman sachs' reputation they make good relationships they win so they're never a company i would bet against but i don't see this as immediate gratification i think this is something that will take time to build and for people to feel comfortable with now let's turn over to the new i.p.o. market this year casper slate the mattress company is now filing for an i.p.o.

and its founder philip is apparently obsessed with getting a $1000000000.00 valuation now recently with a look at the comps like time for the sealy and sort of simmons all that valuations have plummeted in recent years and the street is no longer being friendly towards the cash burning profitable silicon valley startups so what makes them think that they're different from any of the other we work live on all the others are blown up before them when hitting the public market. what makes them think that it makes me think that because i don't think that you know they have they have a unique c.e.o. believes in that he wants what he wants but let me tell you a quick story why this was an amazing baseball player he got offered 140000000. a contract by the detroit lions after his trade from the rangers he turned that down he thought he was worth more the next year he agreed to a $10000000.00 deal and his numbers never went out from there so when you could

have had a $900000000.00 deal with target and you turned it down because you think you're worth a 1000000000 i mean if it's that close i call it possible questionable leadership but then we look. you know the former c.e.o. of snap chat who held out for the better deal and he proved to be right so you know we don't know what they're seeing on the inside sometimes you get a leader who's just too bold other times you have someone who has the vision to realize what they're worth i don't know enough to comment on which were there you go but i have a conservative personality so for me i wouldn't be stingy about needing that $1000000000.00 number $900000000.00 would be just. another me about the detroit tigers they're not the lions but let's go into the next one here there's another crop of unicorns gearing up to i.p.o. this year 2020 air b.n. b. robin-hood door dash posh mark and more now did they learn from these last years disasters or are they going to be hopping on hoping for the best here and to exit on the top of the market now and quickly here we got about 30 seconds left. i think

what you saw last year has to humble them a little bit so you could see lower prices and they're also going to want to get it ahead of the election the election brings uncertainty and volatility and those are negatives for i.p.o.'s and that's imagine you know you look at what happened with lift once they went public all the lawsuits that come out i wonder if air b.n. b. is a sitting duck that once they go public you're going to start to see all the lawsuits because now the public is funding the defense of them so i think they're going to be less greedy than the c.e.o. of casper when it comes to valuations at a mesh of the administration group thanks so much for your time today. thank you. as the new apple generation embraces era pods which were one of the best selling presidency after 2019 what do you do with that piles of outdated cord and wire ear pods while most of us trash it but artist alam morales ski and samuel copland are repurposing them into fashion statement earrings these babies cost $40.00 and

according to the artist represent the chaotic tangled journey of our past they aren't the 1st to think of turning your pa's into joy at the sellers have been doing this for years monetizing on the fact that apple ear buds are instantly recognizable now kristie your are the fashion icon well when ben swans are here of course you're the fashion icon of boom bust would you wear. earrings i am not that big of a techie to wear something like this but it is your birthday today so would you like a 40 dollar by hearing my ears have appeared since i was in high school so i don't think so and that's it for this time you can catch boom bust on youtube dot com slash boom bust archie see you next time.

and we're going to fulfill that promise is probably to the people come on you know we've all thought you were really. really really really. pretty good. that you want to. know. all.

the money was in my. time about what it was it was. more about. what in the side of the might. see in the car going to him but i'm before. him but i. believe. you or some you. use the least.

you see in the. most with. your legal. view you. know what. this is a story about what happened. it kills a young girl in the streets. who happens to have family and daughters in florida you know the mother daughter is buried in a cemetery in meaning messes with your head what happens to the community the public was screaming for a scapegoat the police needed

a scapegoat so why not choose a 19 year old black kid with a criminal record who better to pin this on than him and what happens in court b b b b. shot after shot as far as a side deal that we don't know kills genesis for the. end of this trial unfortunately you. will still not know who killed just. you know world of big partisan. loftus 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 smarter we need to stop slamming the door on the bath 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. russia's prime minister and his entire cabinet resigned to allow the president to make a series of amendments to the constitution. under the new head of government for a place that made 3 med. changes will give power to appoint ministers a task which is currently the responsibility the president. according to the constitution of the russian federation the president needs only the state duma's consent to make official appointments the president appoints the cabinet his deputies and all the ministers i propose shifting this power to the state duma and also.