Transcripts For RT Boom Bust 20240713

Is a nerd. Who shakes her house the most sensible so. This is the one business show you cant afford to miss im going to foreign washington coming up the newest demo already well into phase one studies in humans. Terms of the say may be light at the end of the tunnel when it comes to covert vaccines as some trials are making headwinds straight ahead we break down the state of global infections and where the fight against the pandemic stands plus the title observer will meet this week to decide on how to tackle some issues facing the u. S. Economy what moves will they make following recent rate cuts well take a look and later in the midst of shortages due to the outbreak we take a look at the surge in prices for some products and there are reports of profiteering with a boom bust panel show today so lets dive right in. As we continue to discuss the prospects of returning to normal life and reopening economies the truth is many experts dont believe that will fully happen until there is a working vaccine but there is some promising news out of Oxford University in the United Kingdom according to a report in the New York Times scientists at the University Jenner Institute are ready to move forward with trials of an inoculation tested against previous versions of the current a virus which were harmless to humans researchers at the National Institutes for health Rocky Mountain laboratory in montana tested the oxford vaccine on 6 monkeys now the animals were given a single dose and exposed to the current corona virus and after 4 weeks the monkeys are all healthy while other monkeys which were not inoculated and exposed to the corona virus did get sick speaking with the Economic Club of washington d. C. The United States top Infectious Disease specialist dr anthony said he was cautiously optimistic about these tests and spoke about the broader process of developing vaccines there are going to be a lot of candidates out there as you know a few of them are already well into phase one studies in humans to determine if its safe and hopefully we can move along rather rapidly. And are they safe and effective in a timely manner which ive said right from the beginning would likely be a year to a year and a half and then the challenge will be to scale it up enough to be able to distribute it meaningfully both in this country and throughout the world. Well the oxford team says they will not finish the human trials of the vaccine until september but doesnt mean the Worlds Largest vaccine maker is waiting to start production of the oxford drug now the Serum Institute of india says they will produce 5000000. 00 units of the vaccine per month for the next 6 months to get ahead of demand hoping to have 20. 00 to 40000000. 00 doses by september or october when asked about making the vaccine before trials were complete the c. E. O. Of the Serum Institute told the times of india the decision at our own risk and cost has been solely taken to get a jump start on manufacturing to have enough doses available if the Clinical Trials prove successful and the United States now has officially surpassed 1000000. 00 confirmed cases of the coronavirus thats nearly a 3rd of global clase is so lets take another global look at the trends and spread of the corona virus with our key correspondent science having where we today so branded with much of the u. S. Asia and europe in the beginning stages of managing their outbreaks and pretty much deciding in the next steps in their response to the pandemic some countries are actually just starting to see a jumping cases now amongst those countries still struggling to slow the rate of infection we have russia iran saudi arabia brazil and a single poor who are all just experiencing Enormous Growth because as you recall on monday would discuss countries actually flattening the curve and actually seeing a less cases but these countries there are still going up so in more detail in russia the majority of the cases are in moscow all the patients have now been confirmed in every one of russias 85 regions and at the moment russia has almost 95000 cases with over 867 deaths and 7000. 00 of those cases have just been reported in the last 24 hours now. Russia is also now the 8th most affected country in terms of infections having surpassed china and iran this week this is also had russia a lot worse economically as oil prices could pull lapsing which is significantly reducing moscows income from crude exports but now lets move lets move over to iran thats right now facing the worst outbreak in the middle east with almost 6000 deaths and over 92000 confirmed cases but even as the country deals with a jump in cases some mosques are actually scheduled to open later this week now and top of the deaths related to the virus more than 700 people died after ingesting methanol thinking it could cure the virus so its very unfortunate brand and now lets move over to iran neighbors saudi arabia that has over 20000 confirmed cases and 100152 deaths you know even with huge jumps in cases 1400. 00 of which have been reported in the last 24 hours saudi arabia has actually relaxed curfews at the moment due to ramadan and not only that but at the annual muslim pilgrimage to mecca is still of fishley scheduled to late july now the kingdom has asked muslims to book to postpone their trips but has not officially closed. And every year more than 2000000. 00 perform the pilgrimage to mecca brand and now over to south america and brazil is actually emerging as the next hot spot for the virus and brazil of 1st really reported about 4600 that and more than 68000 confirmed cases and and and but the true numbers are there as in many other countries are actually believed to be a lot higher you know some. Scientists even think that over 1000000 people in brazil are probably infected and you know and that crisis could escalate even more as brazil heads into winter which can worsen respiratory illness and lastly i want to discuss singapore which is one of asia small as population thats emerging with the regions highest number of coronavirus cases and just over a month ago brand singapore had been praised for its response to the pandemic and the increase in numbers is because singapore did not integrate the migrant population in containing the spread of the virus and now the majority of them factions are the Migrant Worker workers living in extremely close quarters so a really really major setback for singapores early success brant r t correspondent site have a juror thank you so much for that insight for report and as a reminder you can always find the latest news and information regarding the krona virus on portable t. V. s coronavirus tracker the u. S. Federal reserve is meeting this week and it appears unlikely they will take any action after cutting rates to near 0 in march but has the feds intervention since the start of the economic crisis actually work to stabilize markets and prop up the economy to discuss were joined by todd for which chief strategist ed bubba trading cohost christine thank you both for joining us today chrystia want to start with you are we going to get anything substantial out of this weeks meetings from the fed. Well the markets certainly arent expecting anything substantial to come out of the fed me next week theyre not likely to insure any new directives until we actually have more data points and how they calmly is reacting and digesting the latest stimulus thats already implemented right now we have slowing up these past weeks and this is a result of really the fed put this is the widespread belief that the u. S. Fed can always fresh keep the economy whether its by decreasing rates on mcewen the monetizing everything in sight basically so we recently saw them take on president step by an unlimited amount of treasuries and more new securities. When it launched in march the fed announced a floor of 700000000000. 00 but no ceiling it made very clear that the Market Conditions will then determine the level of purchases so thats basically the number that were going to keep an eye out during this meeting and whether or not to see they issued more explicit guidance on how long these rates will stay low in the announced monday its going to widen the number of local governments which it will buy debt in its upcoming Lending Program and really i just want to say thats just more action that theyre taking it in reality to kristis point you know theyre making all this q. E. There is these rate cuts there is this injection way is any of this actually making an impact we talk about this financial crisis that we are in that was kind of not brought upon by the coronavirus but made worse by the coronavirus. I brought are you going to listen the bottom line is that the only hope good thing they could do tomorrow if anything is to end the fed that would be the best thing they could do theyve done absolutely nothing theyve now intervened about 8 times into this and all theyve really done is torched the middle class once again because theyre going to pay for all this when its all said and done the best thing they could have done is to just make a Lending Program and lower the rates and give them extended time to pay for it and giving away more free money that is that is artificially kept the stock market higher and really chris. Did nothing nor growth you know that this isnt changing until the country opens were not going anywhere and all this money is not going to help anybody because at the end of the day we need a growing and a moving economy where the velocity of money goes through the economy right now the money goes into the hands of individuals and sits there ok plus the the few people who have taken advantage of the program dont deserve to be in the program so at the end of the day this is a benefit in my opinion a total bust and of course the fed in their usual stead has really created a lot more issues down the road than theyve actually tried to cure were at right now its your point but i know its a huge surprise as when theres free money handed out by some organization whether its the government the fed whoever it might be theres going to be some people who take it who dont deserve it and weve seen that with the Small Business program i mean now what there were reports are that the Los Angeles Lakers got several 1000000 in the stimulus so i mean if thats all ridiculous here kristie equities i have been mostly stable today although some would say thats volatile but you know their body of it what are we seeing in markets around the world all the markets around the world those they say are having a relatively good day what are you seeing on tuesday here. On the surface the market hasnt really moved much where about half to one percent but there is quite a fair bit of volatility in between the sectors right now you see the biggest tech stocks that have held up the market the founding stocks theyve turned sharply lower today while investors shift into undervalued names names that have actually sold off the worst strain the peak of the outbreak so its basically a rotation day the russell in next is gaining double the s. And p. In those markets are known for the high risk high reward scenarios and right now investors are piling into that high risk betting on the economy reopening and in addition just as you also see me tell its like a pretty holdings th and others that rally double digits today theyve sold off the war strain the outbreak and theyre still down you know great so this is a bit of a relief so today getting in the allocation of funds investors are cashing out of the corona by. When i say names like mark dr pepper stang pfizer and actually started to bottom cheaper names the names that will balance in me a vent and reopening not a recovery by any market stunned a down today dragged down by the nasdaq as most investors theyre selling out into tech arnies that we had this week out from that just requires day and we have facebook and the like as well in the above what are you seeing in markets i mean like i said were relatively stable today although it appears that we might be ready for another sell off i dont know what the catalyst for thats going to be but what are you seeing today. Well i mean if you look at the Bigger Picture a mark is a really good stock in a very wide consolidation range and theyre going to break out big one way or the other and again theyve made a couple of attempts to break out to the upside and have failed not in that doesnt mean that were going down right now but there are in the range and look at the end of the day big tech has been on fire until the last couple of days and its been a pressure but youve got Google Facebook apple amazon and a host of others that are report the next 3 days so its not a surprise that maybe there is some profit taking it head of these but overall the market looks fine i mean it looks like it wants to go higher and of course keep getting free money why not let it go higher but i want to touch on Something Interesting and quickly here before we end this today that was reported on monday the government of saudi arabia a Sovereign Wealth Fund disclosed they bought a 5. 7 percent stake in live nation thats the Parent Company of ticketmaster that was worth roughly 500000000. 00 the fund also took a nearly 800000000. 00 stake in Carnival Cruise lines as well recently what do you make of the saudi investment arm buying up piece of these Companies Hit hard by the pandemic. This is theyre making a great bet you dont you have you got that kind of capital to play with which they do youre making a great bet youre saying that the American Economy is going to come back and that were going to go back to theater concerts and things like that for a live nation and were going to go back on vacations or go back on cruises so my opinion listen theyve made a great bet theyre not going to get out tomorrow theyre not kind of panic this is a phenomenal play for them that will probably double or triple their money over time for beat making this investment at the absolute bottom thats a Warren Buffett to have a play by a company you know is going to be better and buying it for cheap horace chase strategist at bubba trading and boom bust goes christie i thank you for that expert analysis. Thank you. Time now for a quick break but hang here because when we were churn in the midst of a shortages due to the outbreak we take a look at the surge of prices for some products and reports of profiteering with a boom bust and as we go to break here the numbers of the clothes. Get out im fascinated by bad condition protection labels they find out sticker ads very find out household cleaning substances dont apply to Financial Products even though they should because many of them are hazardous to your health because theyre poorly constructed and theyre full of toxins. As the u. S. Economy was booming growing numbers of people when they do. You can work 40 hours d in a week and still not have enough to get housing everybody believes america still is the land of opportunity the reality of it is were not financially equality and unlike an Affordable Housing living minimum wage give many people no choice you know theres been a problem with the city and all those turn around and told me stay away i dont listen. To that. Because you know its the reports. The most vulnerable are abandoned on. Streets to become not only invisible comes. Your city but i. Just let me see yes. I was on the floor some days in my bathroom you know trying praying. Theres slime westfield out words i was having children fever i didnt have any sense of say source now im in the most you know in the words world with you. Recently she was on the oldest each tuesday. Night when simon is on the mound for the search. I hope they didnt. Push myself to do for me in the 5 im going to. Go. Welcome back in the midst of this corona d virus pandemic there is still a huge need for p. P. C. Or personal protective equipment now peepee includes everything from face mask to gloves protective clothing and i wear there are now a large number of reports indicating that p. P. Sales are being taken advantage of by p. P. Profiteers who in some cases have raised the price of the equipment by as much as 1000 percent and in some cases equipment that has been marked up by 10000 percent so joining us now to discuss is our boom bust cohost christine and ben swann thank you both for being here with this again now ben lets start with what is actually going on here what are some of the worst examples of these markups and this type of profiteering off of the coronavirus. Yes so essentially the story now is you know for several weeks theres been talk about you know you can go on amazon and you would find Hand Sanitizer for 300. 00 a bottle or facemask you know a box of 50 of them for Something Like 500. 00 so those have existed out there and amazon said they were going to crack down but the new angle to this story brant is the fact that hospitals are having to buy a lot of protective equipment right now face masks and p. P. E. Like gallons and gloves those kinds of things hospitals have to have this now the way new york law is written essentially in new york state you cannot and then when i read it to you you cannot increase the price of the Consumer Product by an unconscionably excessive price during an emergency but thats a Consumer Product for individual consumers those are personal family or household purposes thats the way the law is written in this case what were seeing is hospitals saying wait a minute as as a professional into tea we cant get this stuff because those prices that been marked way up for instance the one hospital says this they say that the price of a gallon that should normally cost about 0. 50 to create is costing 7. 00 and a shield a face shield thats worth about a 1. 25 its being sold for 25. 00 a shield so the hospitals are saying that they are going to try to buy equipment and the pricing on them has gone like off the charts and now kristie i mean some would say that this is truly a supply and demand issue and that the price of these items has the actually gone up as they become more and more scarce but were talking about 15. 00 times what they normally cost but we also know that a doctor 3rd of doctors treating her about his patients and hire a settings are still unable to get all the protective equipment that they actually need have leaders have warned this is also a moral issue and not just an economic one what do you make of this whole situation. Sure it is a moral issue and that these doctors should get all the people even a need in order to save lives but people also need to understand the how the entire supply chain works so yes the price and manufacturing has gone up because of the price of Raw Materials latex for example there is a worldwide shortage of latex right now Chinese Manufacturing Companies cant produce enough nitrile gloves they source the latex and 1000. 00 Manufacturing Companies are bidding up the prices themselves in order to try to fulfill the millions and millions of quantities that are order and thats the same thing with the filtration materials used for the mass and. The volume of the orders coming through is producing backlogs and remember these manufacturing plants just are operating at full capacity now so with everybody starting to get production going at the same time you now have back once in orders backlog that barge backlogs at the at the air freight station and that increases the price of shipping as well so really the price increases at the manufacturing level has been consistent its the price of the Raw Materials and the price of transportation and that makes sense given the principles of competition there are thousands of factories in china so if you try to price gouge at the production level the consumers will just shop somewhere else so really a lot of price gouging where thats coming in thats in the middleman and thats here on u. S. Soil. And youve also called this generally a supply demand issue to a certain extent but theres also another issue here of heavy demand leading to other issues whats going on there yes so you know the supply the main issue is one but the bigger issue is this when you have a huge demand for things like p. P. E. This personal protective equipment what happens is you have government going out and trying to secure this stuff whether its a State Government a local government a federal government what they say is hey we have a stack of money we need supplies very quickly and as a result of that you get all these companies that come in and say oh i got you i can take care of that i can supply you with the masks that you need and then you get you get a contract written up you send money to them they create mass they sell them to you and the mass dont work properly or they never come in at all but theres a company. That essentially got a huge government contract saying that it could procure facemasks from the department of defense because they were sitting in a warehouse someplace but those mass never came in theres also a company that Bethany Frankel remember her from the real housewives series she was actually in touch with a warehouse owner who claimed that he had a warehouse full of these masks and made a lot of news in new york that all of a sudden the masks never showed up and so one of the things that you find right now is theres a lot of scammers who will go out there and promise they can provide this because theres such a lack of supply out there that everybody is jumping on board because basically when you when you get a demand like this you get stupid money and government source throwing stupid money at everything not realizing d that theres a lot of people out there who will say they can provide that in fact they cant you know i kind of wanted to add on top of that then because right now as you said the problem is supply and the reason for that is because the trumpet ministration they quietly in both the defensive protection act in order to force medical suppliers to sell to it 1st ahead of states hospitals or foreign contracts so this is a cold war era law that gives federal officials the power to edge out the competition and force contractors to provide supplies to them before filling in orders for their customers and theres absolutely no transparency about what the federal government is doing with the equipment that they do purchase even when they are states and hospitals so in fact now you have reports from fema seizing imports of private companies without pain that they have been dozens of oppression famous eating some importers and employers are out millions and millions of dollars and their lives have been lost his father and yet it still continues so now private companies that are actually out 1000000. 00 these importers that are actually getting all these facemask their product has been seen so with them losing money on c s because they just decide to flout stop importing further contributing to the shortage and the price hikes. Not to not to cut you out of this conversation and. No problem we go back to. That because theres also another porton issue that people understand christians have a right when but the other important issue is this you know when there was the swine flu issue a few years ago the government had a similar response at that time demanding the need for masks and they said how badly we needed them and there were mass creators in the United States companies that bought equipment they started producing these masks and then from one day to the next it all dried up and so what has happened since then is is before the swine flu the u. S. Was creating about 90 percent of all of the medical facemasks in the world 90 percent within one year china was creating 95 percent of those face masks right now theres a lot to complain about china saying well theyre Holding Equipment they will send it to us it is not chinas fault that the u. S. Is not producing its own equipment or producing its own masks and that has been going on now for years and theres been a lot of warning about that and it has not been heated kristie got a last word 20 seconds here. Well exactly what ben said the u. S. Needs to be able to stockpile their goods and right now with the with the destruction of the private import of the import that used to be an import w2w masks on a weekly basis but because of out of caution a fee might see in a posh right now they are supposedly down to only 300500000 masks per shipment so the fact is the federal government is actually exacerbate an situation making march the boom bust cohosts christiane and ben swan excellent segment thank you so much. Thank you. And finally distillers are also helping fight the coronavirus and for quite some time and they have been creating hand side of thais are to fill the void now a whisky distillery in new england is getting creative with increased amounts of stale craft beer on the market the Craft Beer Industry has a 29300000000. 00 market here in the United States and the plunge of on site consumption has greatly impact the business causing hundreds of thousands of kegs to lose their luster for instance highly hopped i. P. A. Is are known to lose their identity in just weeks well distiller whistle peg so they have been receiving stale beer from breweries throughout the region free of cost to turn that skunky brew into high end whisky with a pig c. E. O. Jeff kodak said of the situation we are tentatively calling the project the great beer rescue adding as the liquid develops in the cask well work with each brewer on an aging strategy that best benefits that specific beer so when life throws you lemons make lemonade or in this case stale beer time to make some whiskey and thats it for this time you can catch boom bust on the brand new portable t. V. App available on smartphones through google play and the Apple App Store by searching portable t. V. Or you go to portable dot t. V. To get more information and as always check it out on youtube dot com slash 2 by start to finish time. Economic system known as comparable is and has generated more wealth than any other system in history in many ways it is defined maternity itself hundreds of millions have been lifted out of poverty however competent lism has also witnessed growing income inequality the appeal of socialism currently on the rise can complement. Who we heard. Walking into the words we no longer know what were walking into. March. So. Live from the World Headquarters of our t. America in our Nations Capital this is the news with rick sanchez. And hello again everybody im rick sanchez who all of you who are watching us from all over the world either on regular t. V. Or on portable t. V. Using the portable t. V. Out of course were so glad that youre there i want to try to tackle today in the question that deep down most of us have asked ourselves or our asking ourselves what is it about