Transcripts For RT Boom Bust 20240714

Effectively been steering opec policy in consultation with russia russia is not an opec member but is attending the meeting as part of the opec plus alliance or winds oil minister hinted at some of the growing tensions around the cartels de facto Decision Making methods mr big john zangana a warned of what he called the problem of unilateral a zation and more gravely said opec quote has lost its authority and is on the verge of collapse. Oil prices are up as opec and its allies agree to extend supply cuts to at least the end of this year what could have been a hurdle in the decision on iran agreed to the production deal but the country has voiced concern over the current dynamics within opec alex mailed its joins us in to watch alex 1st of all tell us about this opec decision what do we need to know. Also a lot of what you mentioned is true when it comes to Decision Making here we look at saudi arabia as well as russia making the decisions now that the decision was backed by iraq and also as you just mentioned iran and they put their 0. 02 and they said you know were going to back this even if were not friends with saudi arabia this is something that we could definitely go for for the next 9 months or so busy and its just an extension of something thats been going on since 2017 we know that these cuts have been in place for quite a while now the prices Oil Prices Going up this actually gave a bit of a boost oil prices but not for long because theres other factors that are in play right now including the fact that the u. S. Is producing more oil than ever so it is theyre pumping it out more than anybody else and theyre not a part of opec as well as the fact that we still have that trade dispute going on between china and the u. S. Which of course production is down so people are using oil as much so those 2 factors what saudi arabia was hoping to see here is that Oil Prices Get pushed about 70. 00 and they were hoping also the fact that the rand now is under sanctions as well as Venezuelan Oil so they were hoping that this would somehow push the the price of oil up really really didnt see that big of a boost happen was a little bump but thats about it that has a decision to maintain supply has affected a lot of i think now lets go in 5 now lets go to a straight to the brant crude just to the numbers so we see exactly whats going on the decision as you can see did give it a little bit of a boost but it rose as much as 2. 00 a barrel today towards 67. 00 but that did not last very long just did not even with the output curve we saw that that actually crude settled down at around 65. 00 so this magic boost that was supposed to happen i was supposed to push everything up while it did for a bit but again like i mentioned theres other factors here at play and those factors have. A little to do with you know weve seen the since 2017 the supply cut but you have other people producing oil and also you have the other countries norways producing more oil canada brazil so. Its a much bigger world out there and when you have even opec by itself it doesnt have the power that it used to wield and as we mentioned in the intro iran has endorsed the outcome of the decision but is also voicing some very serious concerns about the process and the future of opec we quoted some of the oil minister some of his comments there what else did he say. Well you know 1st of all iran as we know has a problem saudi arabia so saudi arabia making decisions of this magnitude feels that theyre too influenced by the United States of america so thats one of their issues the other issue is that we know that this is this idea that this was basically pushed through not in vienna at the opec summit but g 20 so by by russia and by saudi arabia so they kind of overstepped and it kind of didnt really matter this decision was already made so thats what it was you were on it saying is like whats whats with opec this is this is actually ruining the stability of the organization and as you called the opec plus russians very close to the opec alliance and with but with russia theres talk about actually how the deals made so that it would even be entrenched more so with alongside all packed anywhere and saying hey its not time for that right now because were having problems at opec were losing power and this organization is in threat of falling apart so we need to basically look at ourselves and look at all and and somehow reconstitute those so that the power comes back in the organization starts doing what it used to do or to correspondent alex mail is thanks for joining us thank you. China and u. S. Managed to avoid an escalation of their multibillion dollar tariff war over the weekend the 2 world powers brokered a temporary cease fire trump promise to hold office to slap a new 25 percent tariff on 300000000000. 00 in chinese imports and to list some restrictions on fall way and china agreed to buy American Food and Agricultural Products while there has been no major breakthroughs and resolving the fundamental points of conflict this truce gets negotiators another chance to forge a more permanent accord markets and both china and the u. S. Are rallying on the news but chinese official Media Outlets have sought to tone down expectations as a promise was met with silence from china theres still a lot of distrust by both sides and china warns that the u. S. Has a track record of flipping and flopping and Election Campaign tricks are just a few factors that could alter the u. S. Stance. For more with this and what came out of this meeting r. T. Correspondent sara lunde has a oka joins us to break this all down kristie on saturday trump reversed his governments decision to ban walk away as part of a concession between the u. S. And china on the g. 20 cylons the u. S. Agreed to allow american firms to continue trading with wall way the chinese Tell Communications company it was put on the blacklist in may that restricted u. S. Firms from doing business with walk away without government permission President Trump said it was unfair to u. S. Suppliers who were upset by the move our companies were very upset these companies are Great Companies that you know all of them but they werent exactly happy with it but were allowing that because that wasnt National Security and he went on to say while way is a complicated situation that will be discussed in later trade negotiations but it remains unclear though whether waterway would be formally removed from the Commerce Department blacklist while we spoke spokesperson told reuters that we acknowledge the u. S. President s comments relating to walk away and have no further comments at this time meantime President Trump and his chinese counterpart xi jinping once again called a temporary truce to the u. S. China trade war the 2 Worlds Largest economies have agreed to restart trade talks for now the u. S. Will hold off on adding more costly tariffs on some 300000000000. 00 worth of chinese imports President Trump announced the trade truce after an 80 minute meeting at the g. 20 summit in osaka japan we had a great meeting and we will be continuing to negotiate and i promise for or. At least the time being were not going to be lifting tariffs on china we will be adding an additional. You know tremendous amount of oil we have i guess 350000000000. 00 left which could be taxed or could be. Doing that where were going to work with china on where we left off. To see if we can make a deal and earlier today china spokesperson for the ministry of Foreign Affairs echoed that sentiment. The most important consensus reached by president putin is that the 2 sides agree to continue promoting china u. S. Relations based on cooperation and stability this is in line with the interest of both countries and the general expectation of the International Community over the 2 sides have agreed to restart china u. S. Trade consultations and the u. S. Has agreed not to impose new tariffs on chinese products this is in line with the interests of both sides its still unclear whether there will be a deadline to reach a deal mean how the 2 sides will negotiate on issues ranging from economy to technology. What does this really mean how close are we really to a comprehensive resolution of this dispute well a temporary truce does not end the trade war its a good thing theyre coming back to the negotiating table but weve seen this before both sides have agreed to keep the tariffs that have been imposed as of late for now but at least of there will be discussion there is room for dialogue right in this is pretty much the best Case Scenario maybe of a little better than what expedient spoke to before this at least things dont get worse and there is the lifting of the waterway ban or to correspondents or months as delegate thanks for that important update. Markets are moving today even though things really didnt change all that much and the painful tears are still remain in place there are still significant obstacles that remain a to obtain a Long Term Agreement these are all over core issues such as Technology Intellectual Property protection industrial policies and the creation of a level Playing Field for foreign firms operating in china as such the talks could still suffer further setbacks and the risk of further terrorist has not been removed altogether while markets jumped earlier the accuse the s. N. P. Is and the dour also slightly bleeding lower throughout the day looks like the optimism was short lived and uncertainty still remains looking at the charts its almost reminiscent of late 2016 where every papa sold off because there isnt enough underlying strength or momentum to ride to give us the latest. Our Fearless Wealth Corp so the markets right now appear to be content with the cooperative tone coming out of the sheetrock meeting however do you think this rally is short lived now that the near term headwind is out of the way we now have to deal with the macro backdrop of a slowing Global Economy do you think this 10 year bull market is going to continue. Yeah you know i do think its going to continue because trump wants it to continue powell wants it to continue the Chinese Government wants it to continue the eurozone wants it to continue so weve got these big players that want really all the markets to continue to go up into the right so you know weve got more legs in this market now looking closely at a particular sector of the market the stock there is clearly must be breathing a sigh of relief is some ease with. These. Over 4 percent premarket it is since traded been down after that pop but which news out of the group has the biggest upside and why. I love Texas Instruments so coming into this correction spread about an 18 month correction and t. X. And came into it about 160 percent now s m h was only 140 percent up so even coming into it texas instrument was a very strong leader but even better the correction the sideways correction over the us 18 months texas instrument looks like its supposed really position to exploit explode just really higher and i think anything over 118. 00 for t. X. And youve got to be a long. Devil i have to keep a watch out for them dialogs as well that one has been underperforming as of late the shanghai market now is up over 2 percent and theyre trading session on monday Foreign Investors have continued to buy in a shares and the analysts estimate over 70000000000. 00 in employers over the coming year the tech sector obviously got a boost today but what other sector should we look at in the china market that will also benefit from this traitress. Well i mean the one market or the one sector thats kind of secretly going up that no ones talking about is actually real estate in the u. S. And i i know it sounds really odd but x l r e its going up into the right its been really strong the last 18 months since this trade war has started and no ones really talking about how strong it is which leads me to think that its got a lot more upside to it and while today is a nice day for a pop in the equities market pops of course are temporary so when would you say we should start fading the rally the traders are only temporary and its only it seems a matter of time before things could while we has not officially been dropped from the u. S. And its list in the previous terms those are still in place how do the next 2 quarters look. I think theyre going to look choppy but they want to go higher theyre going to go higher we have some really big players that want it too so i expect a market that goes higher but actually as it goes higher makes people more anxious almost that it justifies them to not be in but its going to go up into the right in a very choppy way i wanted to add to your comment earlier i thought i get us started that way if the the upside potential and what is the story thats driving the strength. You know i think the story is people do not want to be in this market theyre tired i mean it sounds weird but theyre tired of it going higher theyre being told daily that its not going to go higher so i think what people are saying is look if its going to go higher and i have to be in that im going to pick a part of the market that i think is safe and so people unconsciously or collectively are saying im going to go into exile ari its real estate its got a protectiveness to it and its going to continue to go higher now if the market goes 30 percent higher from here you can expect accelerate to go 4045 percent higher. That is assuming that we do come to some sort of a traitress well we have to remember what happened last year in 20122012 actually it was one of the worst markets for china year that market declined by over 20 percent and we have since rebounded but if we do if we dont come to such a traitress what where do you see the market going both in asia and in the u. S. Well theres work to try and it is having a much harder time with this trade war than the u. S. China is down about 20 percent since this whole thing is started so if this doesnt get resolved china is going to be hit much harder than the u. S. And then it comes in to what powell is going to do so powell could still save this by lowering rates and lowering them faster but man if this trade war goes sideways or goes bad i think all the chips are in front of power for him to say im going to drop rates and then a few dozen we could see some downward choppiness pretty a lot of a lot of volatility ill definitely have to hedge our bets both ways are say pack the chief Investment Officer feel as well corp thank you so much for the time. Thanks. Time now for a quick break by here because when we return those plane profits are boeing boeing gone for the aerospace guy as the problems continue to pile up molly barrels of americas water is standing by to take us through the Turbulent Times for the air giant and as they go to break here the number of. Posts. Seems wrong. To me to get to shape out these days you cant get educated and in detroit because betrayal. When so many find themselves worlds apart. Just to look for common ground. As we speak large organize care of a bar on the march to the United States. In a play and coming out party carrying. Just war. This is a virtual invasion of our country. So far to. Say. That im at the end i thought of it but i meant. For nothing im going to. You know its going to stuff it in. A knife. If you dont do is you know were going to see a more little goes unnoticed society player for 2 oceans that. The. Magic mushrooms use down some contacts used in the wrong way carry carry potential arms like any any psychoactive substances. But used in the right way they seem to have quite a. Profound 32 potential and quite a good safety profile as well. During the Great Depression which almost remember there was most of the family were unemployed working. There wasnt it was bed you know much worse objective listen today but there was an expectation of the things were going to get better. There was a real sense of hopefulness there isnt today todays america where shaped my the turn principles of concentration of wealth and power. Reduced democracy attack solo duo. Engineer election manufacture consent another principle according to. One set of rules for bridge. Thats what when you put her into the. Will which will is dedicated to increasing power for. One of the most influential intellectuals of our time speaks about the modern civilization of america. Welcome back updating the story we reported as it was breaking last friday brazilian president jebel sonar reminded the world over the weekend that the trade agreement between the European Union and medical store could take years to pass the e. U. Agreement with the 4 medical certain nations argentina brazil part of why an order which would create a market a total market of over 780000000 people was announced late friday as of last week seeming to cap 20 years of negotiations but more economic diplomacy lies ahead to cover such as not yet addressed a National Parliaments will have to approve the agreement mr paulson are told reporters that could be it will take one to 3 years before the document truly becomes an agreement at the same time the brazilian leader predicted a domino effect of other deals resulting from the breakthrough citing japan as a likely next partner. In other major energy and climate news the Worlds Largest publicly traded property and casualty ensure has announced that it will no longer insure or invest in companies that make more than 30 percent of their revenues from the burning or mining of coal and ensure a says that they will not insure construction of new coal burning plants and will phase out current coverage policies poor coal plants and come. Many of the coal related revenues above the 30 percent threshold by 20221 important for you to tell the companies the insurance phase out will begin and 28. 0 child is just the latest of its peers to turn away from financing the Greenhouse Gas emissions that the new and says our species has 11 years or less to get under control or risk global catastrophe in april of last year the famed avoid of londons implemented a similar policy. The Indian Government is looking into giving the reserve bank of india more power to regulate the countrys Nonbank Financial Company sector which has faced recent issues it doesnt appear the worlds 2nd most populous country country is planning to bail out the privately run shadow banks according to a written letter from indias finance minister no mollusk who said the government has received a proposal from r. B. I. To strengthen r. B. I. s regulatory and supervisory powers under the reserve bank of india 134. 00 and the same is under consideration the shadow Banking Sector in india has struggled after a series of nonbank lenders defaulted on debt obligation some of what you including the infrastructure leasing and Financial Services caused the government of india to step in and take control. She can stand on air has dropped plans to lease a boeing 737. 00 max until she 2 concerns about the aircraft are resolved and its in the air this is just the latest fallout from boeings ongoing saga involving the 37 max in the investigation in the wake of crashes legal journal contributor with americas lawyer has more. Sign American Airline companies abroad are losing confidence in boeing. It certainly seems to be the case daniel certainly for so much on air the airline put plans on hold to lease a boeing 737. 00 max after their board of directors stopped the order that jet was actually being leased from another vendor that had purchased the airplane so this move doesnt directly affect boeings order book but in recent media interviews boeing c. E. O. Dennis kneale unburned said the company is having ongoing conversations with customers about the costs and other issues related to the fact that the 737. 00 max jet is still grounded so Southwest Airlines said earlier this month that it would seek reimbursement and compensation from boeing nearly 500. 00 of those planes have been grounded since march of this year all over the world theyve been grounded after 2 fatal crashes of the popular plane lion air flight 610. 00 and the Ethiopian Airlines flight through 2 together they killed 346 people so while these crashes are still under investigation regulators pointed to a flaw in the planes software as a contributing factor in these accidents and preliminary report showed that a new stabilization system pushed both planes into steep nose dives from which the pilots were unable to recover so after these deadly accidents boeing was criticized for how it handled it for downplaying the planes problems and pressuring the f. A. A. In america to keep the jets flying regardless so it could be that thats also what were seeing from so mon just privacy i mean safety concerns but also just concerns in general about how the process is going because problems continue to rear their heads daniel. And do we have any word on when the issues will be resolved and the airplane could be back in the air. Well i think a lot of Airlines Want to know that the answer to that question and boeing c. E. O. So the company is Still Producing the 737 max and that it could return to the skies by the end of the summer but doesnt sound like some airlines entirely believe that theyve taken off their flight schedules through the fall in october so the c. E. O. Says theyve gone through the Software Update theyve done engineering test flights and theyre now in the process of certification with the f. A. A. As well as other regulators around the world however there are new reports that indicate this software fix may not be going that smoothly in fact there may have been another problem discovered with that exact same Software Bloomberg is reporting that longtime boeing engineers say the Plan Software was developed at the time that boeing was laying off experienced engineers and pressing their suppliers to cut costs so that effort was complicated they say by a push to outsource this work to lower paid contractors temporary workers making as little as 9. 00 an hour to develop and test the software and they often came from countries that didnt have a deep background in aerospace like india so as a result some engineers say the work was inefficient often done incorrectly and had to be reworked over and over again boeing has said that it did not rely on those specific engineers for work on the software thats linked to those fatal 737. 00 crashes but there are multiple investigations including a Justice Department criminal court probe and theyre trying to unravel how and when these critical decisions were made about that airplane software so well see what they say. And how the boeings stock actually fare i know a lot of orders has been canceled. Yes exactly so boeing shares slipped lower today after the u. S. Justice department issued boeing subpoenas regarding the production of another plane the 787. 00 thats out of a South Carolina plant and it suggests of course that the 737 max investigation could be expanding to other parts of the Company New York times reported that this particular plant where the 787 is made has been. By shoddy production and other issues that boeing employees were pressured to work more quickly so as a result boeing shares were marked point 9 percent lower at the start of trading monday to change hands at 363 160. 72 each and thats a move that leaves the stock down nearly 13. 8 percent since the march crash so well continue to follow boeing shares fell 2 point one percent last week compared to a point 44 percent for the Dow Jones Industrial average well see where they go but you know boeing is one of the largest air Space Companies in the world and they have a lot of pans and a lot of fires big story and will stick with it molly barrows contributor to americas lawyer thanks for the update. And you know this is just remarkable the story continues to go on and it just seems to get worse particularly the point about outsourcing the Software Raises questions about what theyre going back to thinks the software if theyre you going to use the same process as with the outsourcing the perhaps produced the silence where are they really capable of correcting themselves exactly and its almost like a double edged knife because at the same time the stock is actually dropping theyre losing cash on the books so theyre trying to actually implement some cost cutting measures to probably boost up the value of the equity shareholders however in doing so im going with these cost cutting measures theyre actually making the playing less reliable so i dont think how trustworthy this large cap actually is fascinating problems. Thats it by this time you can catch boom bust on directv channel 321 dish Network Channel 28 or 247 on pluto t. V. The free t. V. At channel 132 or as always had us up at you tube dot com slash. See you next on. Backs geysers financial survival. Housing bubble. Oh you mean theres a downside to artificially low Mortgage Rates dont get carried away thats cause report. This is a sticker from a water bottle phone in the stomach of a fish the brand is part of the Cocacola Company which sells millions of bottles of soda every day the idea was that lets tell consumers there are the bad ones there the litter bugs are trying this way industry shouldnt be blamed for all this waste the company has long promised to reuse the plastic. Thats. Special projects funded. Online your best bet is the end of it for the city but for now the mountains of waste only grow higher. And. Yet. You. Dont trump accuses iran of playing with fire after breaches its uranium stockpile limits under the 25th a nuclear deal also to become social media giants and getting ready for the 2020 us elections with baseball. 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