Transcripts For RT Boom Bust 20240712

This is blue bus the one business show you cant afford to miss bridgeboro in washington coming up beijing has responded the United States efforts to force a sale of social media have picked up what is reported from china look like and we have expert analysis on the controversial issue and the lockdown orders are going back into effect in some countries as the world attempts to limit the spread of cope 19 well take a global look at these new orders along with the spread of the virus the oil industry continues to struggle due to a lack of demand caused by the pandemic will break down the situation and what it will take for oil to make a comeback impact show today so lets dive right in. And well leave the program with more pushback over chinese social media app ticktock and whether or not u. S. Tech giant microsoft will actually be able to take over as we have reported President Donald Trump has said that he will take back in the u. S. By september 15th unless a deal can be reached for microsoft to buy the companys u. S. Operations but now china is saying not so fast in fact beijing is now saying that it will not accept microsofts acquisition and editorial. Beijing backed china daily states china will by no means accept the theft of a Chinese Technology company and it has plenty of ways to respond if the ministration carries out its plan to smash and grab no specifics were given what were tally ation might look like and the Chinese Ministry of Foreign Affairs characterized the move as unfair and purely political. Talk socalled National Security holds no water at all it is just looking for an excuse to the Relevant Company carried out Business Activities in the us are going to gordons with market principles that an International Union and abide by going to laws and regulations but the us hasnt been whos to research and so on and suppressed unwarranted charges. And joining us now for a deep dive into this is boom bust cohosted investigative journalist ben swan and dean of the miami her Business School john quotes thank you both for joining us today now i know better i want to start here we talked about this monday and you were highly critical of this u. S. Decision to force the sale of tic tac to a company like microsoft are you at all surprised by beijings response. No not at all surprise i actually agree with beijing and i rarely do that but in this case i do agree with them because look i think it does feel like theft it feels like the u. S. Government came in and said a couple of things number one were going to require that tick tock be removed from the country and then suddenly said but if you want to sell it to a u. S. Company you can do that which makes sense for the owner by the way of tech talk because otherwise its lose your company in the u. S. And in india and all these other emerging markets possibly canada new Zealand Australia if you lose that market then the company in those places becomes worthless so the offer thats being made to you is much like the mafia would make it you can either go away or you can sell and if you sell then you know at least you get something for microsoft to take this on and then the president s talking about how he wants a big chunk of the money to go into the us treasury because the Us Government helping to broker this thing i mean it just seems so corrupt that it makes every accusation that in the us we make about china and about their bad dealings i think pale in comparison its interesting that you bring up that mafia and now a g. Ben because on that treasury issue it seems like somebody say oh and we want to cut of this as well and i wanted to bring that up what the president saying insinuating some of this money of the purchase was actually going to go to the treasurer lets play that sound bite. I did say that if you buy it whatever the price is that goes to whoever owns it because i guess its china essentially but more than anything else i said a very substantial portion of the price is going to have to come into the treasury of the United States because were making it possible for this deal to happen now dean quelch what is he trying to get at here why would some of this funds from the purchase go to the treasury. Well its a mystery to me and i think its important to underscore that the level of Chinese Investment in the United States is only around about 5 or 6000000000. 00 but the level of u. S. Investment in china is around about 120000000000. 00 so in terms of in terms of potential retaliation by beijing there are a lot of u. S. Assets in china that could be potentially called the skated and ted for tat escalation so i think this is a very unfortunate turn of events that may be some truth in the issue of 70 or 80000000 u. S. Consumers now being on tech talk and the privacy of their data might be a risk given what we know about chinese law and the requirements on Chinese Companies to turn over data to the government on request there may be some truth in that but to address the issue in a unilateral way just picking on one Chinese Company that happens to be successful in the u. S. Rather than through a general policy does seem to me to be foolhardy and it seems like weve seen this actually kind of over and over again you mentioned one company but obviously we had the situation with weiwei now weve had the trade dispute hong kong has rallied things up and weve also had the i mean there is a lot going on in this back and forth between u. S. And china relations and in that situation the relations have really deteriorated is this a new low for those relations. Well it is a multifaceted downward spiral. For sure going to continue through to november and i think. President trump to secure. Second term. There are some people who would say that his major objective in a 2nd term would be to do to china what Ronald Reagan did to the soviet union but i think that would be a very very much tougher road to hoe so im im nervous about what might happen as this perpetual sequence of. Upsets continues to deteriorate what is the most important bilateral relationship in the world and its very interesting because there isnt a whole lot of new developments since Trump Took Office here in what china has been doing but it seems that hes really the one taking issue with that many may be critical of previous administrations for not doing so but i want to stick on this and take tax situation many in the Tech Industry are split over this decision with take it some say its fair game to stop china as a geo political rival and also point out that china has for years taken advantage of American Companies are those really fair points when it comes to the situation. Yeah i dont think they are and the reason i dont is because look even the u. S. Is standing and saying from the moral high ground china is behaving badly the answer to that is not to say well double down and that even worse i mean the idea that the u. S. Government is brokering and thats the i think the Biggest Issue i have with this is the way that trump talks about brokering the deal so that money flows into the treasury why would the u. S. Government in a Free Market Society ever broker a deal for anybody number one number 2 if to talk is bad then ban it dont hand it off to a giant u. S. Corporation like microsoft who will by the way also use and probably will misuse data as well as facebook has as twitter has as google has look the dean said something thats very important here i think and that is he pointed out that there is no general policy being created that is significant the u. S. Government if they want to deal with this needs to create rules and laws for how data is handled by everyone not simply because data might be accessed by the Chinese Government its bad but if data is being mishandled or even accessed by the u. S. Government its good either data is is something worth protecting or its not. And dean quotes actually want to follow up with you on that exact point that bens making i mean youve been in the Business World for for decades and actually seen as technology has come up and microsoft has come to dominance along with these other tech heavyweights i what how do you feel about this when it comes to control of data should there be more regulation in that regard or or what are you seeing as the dean of the Miami Harvard Business School. Well i think that definitely should be more regulation and. The European Union frankly has done more by way of leadership in this area than the United States or any other country what we have to realize though is that there is a percentage of consumers who are perfectly oblivious to the the dangers of having their data readily shared and there is a significant minority of consumers who are extremely protective of their data so in a sense from a political point of view the elect the electorate not just in the us but in many other countries as split on this particular issue many people dont see it as a problem and a minority do but i think that one thing we havent mentioned thats important in this case so im not necessarily defending the the administrations position but it is interesting that canada new zealand and australia that off 3 of the other 5 ah yes the intelligence subgroup that looks over china issues in particular they have joined in this because the microsoft deal involves taking over the tech talk business in those 3 countries as well as in the u. S. So this is clearly motivated by security related concerns rightly or wrongly boom bust caused and so on and dean john quelch of the Miami Harvard Business School thank you both for your time. They are thank you. And the United States recorded less than 50000 cases of coping 1000 for the 2nd straight day on monday an important milestone not seen in weeks but as the country continues to struggle with controlling the spread of the virus President Donald Trump says a permanent lockdown really isnt in the cards. Its important for all americans to recognize that a permanent lockdown is not a viable path toward. Reducing the result that you want to or certainly not a viable path forward and would ultimately inflict more harm that it would prevent our current phase we must focus on protecting those at highest risk well allowing younger and healthier americans to resume work and school with care for all 3 courses the comment from pres President Trump comes as some areas throughout the world are reinstating lockdowns and for more on this on the spread of the virus across the world lets bring in our correspondents. Where are we worldwide so brand right now more than 18580000 people around the world have been diagnosed with cobra 19 up more than 280000 in just one day now more than 10900000 have recovered and about 700008 little over have died and as of tuesday 4 pm more than 4800000 confirmed cases in the u. S. And almost 160000 deaths but brad id like to go over a specific states in the u. S. That are seeing the latest changes in case counts and that so 1st so 1st these states have had recent growth in newly reported cases over the last 14 days now for example in oklahoma just over the past week theres been a average of 865. 00 cases per day now thats an increase of about 29 percent from 2 weeks earlier and then there is a maryland and missouri that are seeing an increase of 41 percent in new cases and nebraska with a. A 47 percent increase rhode island has an increase of 75 percent and new cases howie on the other hand is seen a 395 percent increase just from 2 weeks ago so clearly these states are listed right here theyre headed into the wrong direction now the next slide these are the states that are seeing new cases mostly the same now for example in new york theyre seeing a 11 percent decrease in new cases so in that state cases are continuously decreasing so thats when theres no sudden change so ive categorized them as mostly the same the same applies to these states right here so there are cases have remained the same within the last 2 weeks now lets take a look where new cases are decreasing again a few that stick out in florida a decrease of 24 percent from 2 weeks ago arizona 27 percent increase in texas 17 percent decrease and all of the and thats great news given that these 3 states that are there that i just mentioned that surging number just 2 weeks ago now lastly lets take a look where new deaths are increasing so these states have had the highest growth in newly reported deaths or over the last 14 days since new deaths tend to rise a few weeks after a rise in infection for example florida broke its record for the most deaths reported in a single day several times in the past week and is now seeing an increase of 22 percent increase in deaths and another example is mississippi with an increase of 13 percent in deaths now over all new deaths in the u. S. Are up 36 percent from 2 weeks ago but still remain well below their peak levels and brenda spied ongoing surges the new cases and deaths that i just went over right here which as far outpace many other countries like you mentioned President Trump insisted are shouting that. In the u. S. And attempt to lower a new cases and thats would cause more harm than good but other countries like the philippines and are strange how one the other hand decided to go back to a partial lockdown in order to stop the spread of the virus brad our chief correspondent sorry to have been to thank you for that insightful report and time now for a quick break were hearing here because when we return the oil industry continues to struggle due to a lack of demand called by the pandemic going to break down the situation and what its going to take for the sector to rebound as we go to break through the numbers at the close. Look forward to talking to you all. That technology should work for people. Must obey the orders given to human beings except where such orders would conflict with the 1st identification we should be very careful about our personal knowledge and at the point of use the. Trust of the shia. Areas and with Artificial Intelligence will some of the. Most protect its own existence and. How can you explain love. Ive been to 82 countries i did intro but i came here and in those 3 days i just filled with hope. And. Sick show. I made my decision to come here because d i felt i knew i could build a new life suited to who should know companies and. Those who prefer. Good decided that this money is no good to be free. My one dream is that all my children d find the same kind of happiness i do. I love my home i love cold weather i like the culture like the history like everything about it. Its on those months and i know that i. Am. Russian from. And welcome back the prices are easing up near 40. 00 per barrel odd concerns that a fresh wave of coke with 1000. 00 infections will hamper a Global Demand recovery news from asia and europe is adding to concerts that the infection crisis may be spreading in a global 2nd wave not just in the u. S. And brazil to break down the impact of the economy and the oil industry lets go ahead and bring a bus cohost christiane recruit president and c. E. O. Of Sprout Holdings thank you both for being here always appreciate both your faces lets start with you kristie i mean where do we see crude oil prices go in the near term well right now were starting to see demand slow down again a city such as melbourne are once again tightening down lock downs and restrictions in arkansas all these new coven infections you also have cruise lines and flight volumes are about 50 percent from where it was at the start of the year and elsewhere in the u. S. They cation travel season all. So known as the summer driving season that is looking weak as a memo to americans are staying home so meanwhile you have on the supply side you have opec producers raising output this month adding about 1500000 Barrels Per Day of supply so the us producers of meanwhile are also planning to restart production as well as theres a slight uptick in manufacturing which theyre saying as very optimistic data so with lowered expectations and more supply coming online we would definitely expect to see some more downward pressure on the near term curve but i dont think well see what we saw earlier this year as the entire curve slight negative and no rick i actually want to talk to you about something youve said actually on the airwaves here several times you always tend to tell us the cure for low oil prices is low oil prices and traditionally in an economic downturn that makes sense because demand will go up as oil becomes more accessible but when were in this Global Pandemic where people are forced to stop traveling some businesses completely so want to haul people are going to the pump because theyre working from home it is those that seem to be the case whats going to take for this oil sector to actually rebound at this point. In time but its true markets do were price cure low price near Term Economic slowdown the decline in automobile traffic the decline in airlines the sort of precipitous decline in Global Economic activity demand is calling on it make no mistake this 40. 00 price over 2 years or 3 years will take its toll on productive capacity opec wont need to slow down production production because they wont have made this. Necessary to be production so in the near term weakness but weakness setting up strength 2 years out 3 years out 4 years out i really cant say where. Rick i want to move to us shale because it looks like the shale industry is looking to add another round of bankruptcies and this is after 23. 00 companies. With over 30000000000. 00 in collective debt filed for bankruptcy already in the 1st half of this year you said its going to be a different us shell sector after this whole thing is over but at this point were little concert is it actually going to survive this downturn as creditors are no longer lending to these troubled companies what are you seeing here. Well were going to see were troll in the show business certainly it is a cost to capital business and the cost was gone up equity prices will fall which is to say that we cant who is more expensive and debt is less available so an example intensive business more business reduces margins you will see certainly seashell business continue in some way shape or you will continue to see technological innovation. And you will also see strong who are weak from what we see i think would really location. The recomposition. But i dont. Show you a little the street meeting in. Its current production. Given the software will write the much higher cost. Now kristie i want to keep on this loans bank load standards have actually tie into considerably in the last quarter at a time when most Companies Small businesses and consumers need it the most whats going on there well its the start of this very vicious cycle because youre right this is the time that people need the loans the most especially the consumers in the u. S. As the u. S. As a consumer is driven economy but banks right now are tightening their loan standards and you see j. P. Morgan actually leading this entire this entire sector. Theyre accepting theyre not no longer accept a new home equity lines of credit they halted all non p. P. A. Based loan so now you have almost all of the u. S. Commercial banks halting all of these lending halting loans and in tiny lending standards all across the board from commercial industrial to home credit cards and auto. To commercial real estate loans and so the loan standards for all of these products they were hiked so much that they are almost matching the standards during the last financial crisis when it was virtually impossible to get any sort of loan for the average consumer so in short every single thing that is not explicitly backed by the government such as the p. P. P. Loans banks just simply wont go near any more as they have 0 visibility on the future outlook and the possibility of repayment so right now the credit standards for approving credit card applications theyve tightened to 72 percent on net versus 39 percent of what it was previously earlier this year and the standard for auto loans they have that has tightened to 55 percent on net to 16 which shows that there is going to be a huge liquidity crunch for consumers in the near future which will only feed into a more sluggish slow recovery rick rule c. E. O. Bro holdings kristie i cohost thank you both for joining us to breaking that all down well have you both back real soon thank you thank you. And finally lets shift our focus to a medical breakthrough that sounds like its right out of a movie researchers in singapore have created artificial skin able to feel a concept that was actually inspired by a scene in star wars are to correspond to treat each other as has more of the story. Remember this scene from the star wars movie trilogy were Luke Skywalker loses his right hand and its replaced by a robotic one seemingly able to experience touchtone stations again well according to a team of researchers in singapore that was the motivation behind their latest creation aces or a secret select tronic skin its made up of 100. 00 small sensors and is about a 16th of a square inch in size the researchers at the National University of singapore say that it can process information faster than the human nervous system is able to recognize 20 to 30 different textures and can read braille letters with more than 90 percent accuracy and by adding algorithms it allowed a device to learn quickly the team leader benjamin t. Said in a statement humans need to slide to feel texture but in this case the skin with just a single touch is able to detect textures of different roughness when you lose your sense of touch you essentially become numb and prosthetic users face that problem he has that by recreating an artificial version of the skin for their prosthetic devices they can hold a hand feel the warmth and even feel that its soft even how hard they are holding the hand now technology is still be experimental stage however the researchers say that there has been tremendous interest especially from the medical Community Reporting for boom bust Trinity Chavez are taking a. Fascinating advance but there are thank you so much tony job as for covering that story and thats it for this time you can catch boom bust on demand on the brand new portable t. V. App to be able on smartphones and tablets through google play the Apple App Store by searching portable t. V. Portable t. V. Could also be voted on new model same so smart t. V. s as well as roku devices or you can simply check it out a portable t. V. Well see you next time. We go to work see you straight home for. Summer solution. Episode. One 0 its going to be exciting very exciting im excited i know youre excited i know stacey is excited. Is youll media a reflection of reality. In a world transformed. What will make you feel safe. High salacious full community. Are you going the right way or are you being lead so. Direct. What is true what is faith. In the world corrupted you need to descend. To join us in the depths. Or a maybe in the shallows. Thinking of getting a new phone the ones weve gotten or shot from around why does he know until hes trapped in the final why are we going to use a crate with him he will just start reaching out in she will want to spray him anywhere near and thousands of greeting dogs are caged in inhumane conditions on the phone i mean 67 years you know theyve been locked up and. Cage outside you see no protection from the weather the heat you know the cold air the rain the snow the funder nothing they have no protection. Particularly you. Know its 2 kids. Across the u. S. Cruel puppy mills are supported by dog shows and pet stores most of the puppies that are coming from these large Scale Factory farming kind of operations are being sold in stores even joined a good businesses are involved but cant get them santa there has been a shocking amount of the organizing opposition to efforts to increase the standards of care for dogs bred in commercial breeding for so many most of that opposition is coming from huge agricultural groups and industries that have nothing to do with jobs dont buy dogs on o. T. God nothing to do. Breaking news on our t. V. An enormous explosion hits in the lebanese capital beirut leaving at least 78. 00 people dead and thousands more injured. The blast has caused massive damage across the city destroying buildings in the 4th district and leaving many residents without electricity the exact cause of the disaster is not clear although it is believed to be linked to the improper storage of explosive materials in the wear. On social media a lot of lebanese are very sensitive on fortunately there are for and through at 11 conspiracy month. Countries including turkey and israel russia to offer burgeon seat renteria and a medical aid to lebanon where hospitals are already under immense