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tv   Boom Bust  RT  October 1, 2019 11:30pm-12:00am EDT

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content here's a look at what we have and still are for today what we're going to do that they're going to try to write down we're going to get out by. the legal n.p.r. we'll continue our facebook has released audio fired by the verge shows the company's c.e.o. is preparing for a political battle over regulating take tech and potentially breaking up the 2nd biggest name international regulatory attorney edwards is on hand to give us a legal view on what could be in store for the tech giant we're about to bring you a world of business news in just 27 minutes let's go. a resignation at the top of the global banking elite in the wake of a spying scandal leads our global report today as the chief operating officer at credit suisse steps down after admitting he ordered surveillance of a former employee the c.e.o. appear all of a release news of his intentions on tuesday the executive was forced to move on after he admitted that he ordered surveillance of chris was his former head of wealth management. mr blaize use of the company's invest
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a go was inspired by his suspicions that mr khan was poaching credit suisse talent and clients on behalf of his new bosses at rival u.b.s. reuters is citing a lawyer for arm investee go and a swiss financial blog for a report that the credit suisse contractor who directly hired the private spies died by suicide last tuesday credit suisse as head of global security also resigned in the wake of the scandal while the bank's board officially found that former c o 2 was not informed about the spying john tanner the chairman of the audit committee impaneled by credit suisse characterized their findings. the dismissed you've already. decided to initiate your position. there is no evidence to suggest that you just just a decision with the chief executive officer any member of the executive board of the chairman. is jim mcgreevey to. and the hits keep coming for the
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venezuelan state as they lose yet another round in court in their waning struggle to keep their u.s. refining and sales out let's go out of the hands of alleged creditors the u.s. court of appeals for the 3rd circuit released an opinion on monday that lists the lift's stay and thereby allows former investors in the defunct canadian mining company crystal works to move forward with efforts to collect on a previous $14400000000.00 judgment against bonus well it got past award was to satisfy crystal x.'s claim towards from the elected venezuelan government's nationalization of a gold mine once owned by crystal axe opponents of the current elected government who have sought sponsorship from the united states as part of ongoing regime change efforts have attempted to fulfill their claim of ownership to said go by paying $71000000.00 of interest on said go bonds due in 2020 but there are believed to be struggling to attempt to make the next payment of $913000000.00 near the end of this month. in the united kingdom prime minister boris johnson is disappointing in
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his latest apparent plans to resolve the u.k.'s exit from the e.u. and perhaps the e.u. custom union with the provisions of the good friday peace agreement for northern island reports on monday said that mr johnson's government was considering erecting strains of custom checkpoints a few miles away from the border between northern ireland and the republic of ireland the prime minister told the p.c.c. radio interviewer that this is not what we are proposing at all patrick robinson a member of the group border communities against drugs that describe the reactions and attitudes of its neighbors regarding the apparently. it's at the regulation of the good friday agreement that the peace treaty between the you know if you go to kindergarten. any sort of break to friction destroyed. completely correlates to. the ongoing strike by general motors workers represented by the u.a.w. has cost the automaker more than one. dollars during q 3 according to estimates by
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j.p. morgan j.p. analyst ryan brinkman pending no 2 investors on monday saying quote g m c u.s. production stopped immediately when the u.a.w. walked off the job on september 16th and we asked made its canadian and mexican facilities became progressively impacted throughout the 1st week those numbers are in line with g.p.'s initial estimate that a halt in production due to the strike would cost the detroit based company 70 $5000000.00 every day nearly $50000.00 workers represented by the new united auto workers union have been picketing since the start of the spat between the union and the automaker while reports last week indicated the 2 sides could be closing in on a deal nothing has been agreed to as of yet this week workers will start to feel the pain as u.a.w. members will start to receive strike pay of up to 250 dollars per week instead of their standard paychecks since the start of the strike g.m. stock has traded down nearly 2 points.
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now to take a closer look at this new breed of c.e.o.'s disrupting the space is the analyst ben swan. give our viewers who haven't been gawking at this corporate car crash of a sense of we work and what this unsettled board of investors that they read on the profile that they successfully pushed to remove this supposedly visionary c.e.o. in terms of his personal quirks but also his business irregularity is such as a selling the word we to the company for $6000000.00. yeah i think that's that's really what it comes down to look every one of these c.e.o.'s who's running the kind of new age companies if you want to call we work a tech company really is and it's every listed company but you know i think we need every you look at these c.e.o.'s and they're young and they're visionary people don't really have too much of a problem with that they are some strange characters and we can talk about that in a few minutes but i think the thing that really did adam newman is the fact that quite candidly the fact that he created essentially an l.l.c.
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which is what we company was as an umbrella company and then he licensed to we work the right to use the word we for $6000000.00 as you just said i mean that kind of business practice it works when you're not an i.p.o. you can do that stuff because you can get around tax law and there's ways to to make money off of that but when you decide you want to enter the realm of an i.p.o. and have an initial public offering you want to open up your books to everyone else when the rest of the world looks at it they seem like a big scam or oh you're shifty money from over here to over here you're personally benefiting from it and why would i as an investor want to put my money into that kind of a system so i think that ultimately is what did it meant and bend the comparison that cries out here is perhaps travis kalanick of goober boob are obviously in there they made it there but not without major drama what are the parallels between this we were case in case and what does this apparent repeat of this cycle suggest
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about the cutting edge accomplice culture in 2019. well i think there's some big differences between what happened with travis and what's happening with adam and largely because again look travis was also a very visionary person there's no question about it he still is and since he's left it where he has started up a venture fund where he's still investing in 2 big idea companies he says profits and for profit and nonprofit companies but again the difference here is you had in travis kind of this reputation of being a bro right he had this reputation of somebody who was very kind of loose with the way he talked to people that sexual harassment within his company was high that he was going to korean escort services on the company dime so you have all these these personal issues that he was dealing with during the i.p.o. what i think that's why the i.p.o. ultimately was successful because one person's personal issues is one thing but is the company's solid is it able to survive that's why you brought it obviously it is
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a solid company we work is not necessarily a solid company because as we open up those books at newman aside if you take a look at what we work is doing they're not making money the easy almost appears as if they have an unsustainable business model in terms of of the amount of money they're paying in rent the fact that for every dollar they're bringing in they're losing $2.00 and so a lot of investors also look at that and said well we don't really have a lot of confidence that necessarily the company's going to survive because if we had a recession already on the hook for long term leases that we can't turn around and sell for short term so that's i think the concern there so it's different in terms of that but in terms of adam and travis you have 2 characters and they really are characters who are extremely eccentric in very different ways and whether or not the public can trust them or not i think it comes down to investors say i don't want to trust that guy with my money kind of got booted before they even when i pm been invited to r.t. so we also have to manage in. before we go perhaps the architect of this corporate
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character. and he famously made up a farm south of the f.c.c. with a suspected pot related tweet about a possible i.p.o. and then unsettled investors by smoking marijuana on camera in a podcast and so this isn't exactly a boys' club let's also mention elizabeth homes and her fantastic claims up blood test so it seems that there is a link between these fantastical business aspirations sending humans to mars or revolutionizing medicines with a blood test so what are all these people what do you think of the behavior of all of these eccentric. characters will look i think when it comes to if you are a person who is so visionary that you can look at the world as it is and you can see something different it takes a visionary person to be able to do that you love lust no question is that person no question that that travis was that person as well because i was looking at the world and say there's a different better way to do this and he was right about that steve jobs is one of
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those people visionary person who looked at the world and saw a different way doesn't mean they're all good people it doesn't mean that you necessarily want to have a personal relationship with them but they're brilliant people and the line between being a genius and being insane is pretty thin but i think what's important for people to remember here is that just because someone is a visionary and has great vision does not necessarily mean that they're able to run a successful business and that's what we're seeing with a lot of these inflated i.p.o.'s is that it's a great idea and it does well but maybe the person who has a visionary idea is not the same one to carry it through you know the line between genius and insanity worry you find it bends to one investigative journalist and cryptocurrency analyst thanks so much for your insight. this time for a quick break but hang here because while we were tearing fresh off of an ongoing legal battle over libra facebook is back in the hot seat courtesy of the audio file their plans for antitrust legislation international regulatory advisers on hand to
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give us a legal view on what could be in store for a tech giant. as we go to break gather the numbers that the. you know world a big part of. life and conspiracy it's time to wake up to dig deeper to hit the stories that made stream media refuses to tell more than ever we need to be smarter we need to stop slamming the door on the bath shouting past each
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other it's time for critical thinking it's time to fight for the middle for the troops the time is now we're watching closely watching the hawks. and the rug come forth a lot and then comes out of the cold war you are the set of one among what i would . a fine after 90 they tell you nasty hi i'm i said. at the salon months in front of the i don't show on. some totally. shut the lock of the.
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fancy it is someone who did the board. put themselves on the line they did accept the reject. so you want to present. something. to the right. that's what. really. interested. and then more news regarding detroit's big 3 ford motor company has agreed to sell 51 percent of their india business to one of the country's biggest auto manufacturers mahindra ford said the sale as part of
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a 2 $175000000.00 joint deal between the 2 and is intended to develop market and distribute ford branded autos in india as well as ford and mahindra branded vehicles in emerging markets around the world ford added that they will transfer the majority of their operations to the combined venture although ford will maintain an engine plant in iran as well as the global business services unit ford credit and ford smart mobility the joint venture between the 2 companies is expected to be fully operational sometime in 2020 most accessible be managed by mahindra leadership will be made up of representatives from both companies over the last few years ford has entered into partnership with other auto companies and the effort to break into more markets on the news for stock was down more than one percent today. regulators policymakers and owners all continue to mobilize in the quickly developing fight over how to regulate the compelling contemporary check based economic sectors and facebook is once again the face of this big big telecom
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this fight. now a leak of 2 hours of audio from an internal corporate meeting at the dominant social media site is allowing the rear view of the c.e.o. and founder mark zuckerberg xnews and plans on how to push back on moves to curb his corporation's economic and interrelated political power at the center of the odd link to audio published by popular tech news site the verge and is mr zucker briggs response to proposals from presidential candidate and senator warner elizabeth warren to break up big tech like it was before 6 of the right answer is to break up with somebody you know i mean she is a lobbyist for the i would say we will have a legal challenge in our that we will win the legal so. basically. i mean i. have a major loss in our own government i'm not sure you want to know when you're. sick
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you care about what work with our government. but look at it in the day some of them try some of the really good bye and here to give us his expert perspective on this and so many other big regulatory issues affecting the global economy we're glad to welcome back international regulatory attorney miles edwards now miles mr zuckerberg frames the idea of breaking up big companies here in this section of the recording as sort of the push to regulate as a force opposite to what he calls the rule of law i.e. facebook continuing to do whatever it wants to do what's your take on his basic framing of the regulatory and public interest issues here. well i think in some ways he's absolutely correct because at least in the united states there's really only a few mechanisms in place in which you could break up an entity like facebook because
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i've spoken before on the show about isn't a monopoly and so they would have to. that they were extraordinarily competitive in their nature they colluded with others and they basically shut out all other social media type platforms it's absolutely surprising to me that at least here in the united states an entity is largest facebook is really not under any regulations at all and even though mr zucker berg has been in front of congress on more than one occasion we don't have a cohesive way to regulate and many of the proposed legislation in congress has never really gotten that far to do it so i think that if you were to ask me the dynamic and the favor is absolutely for facebook and against warren in the united states so mr as our coverage size and as media regarding senator warren and the rest of our plans that if she got to like a president that i would bet that we would have
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a legal challenge and i bet that we will win so you would bet would you bet against facebook and that's an area. well i think i would bet for facebook because i've never seen warren's plan for life after facebook and so there's really only 2 options warrant has one is to create this regulatory environment where they are going to be regulated like any other type of. entity out there here in the united states or 2 like we saw in their early 1980 s. like with a t. and t. and bell is to break it up and so both scenarios face a lot of challenges i hear a lot of rhetoric from senator warner but i'm not seeing a cohesive plan that would be regulated or legislated or maybe even decouple the advertising component from the social media component so i guess i'm
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at a loss because i haven't seen anything propose that i would be that i would consider to be viable and interesting and also checking in on one of the biggest recent regulatory scandals in the u.s. there is the abuse and addiction opioid crisis here in the united states the inspector general the internal watchdog at the drug enforcement administration has sanctioned or has criticized for allowing the limit on opioid production to rise to meet the dramatically growing demand after x. oxycontin was to unleashed on the market by f.d.a. regulators and this is something many people may not know that a fundamental factor in this crisis was the da actually raising the limit on how many of these legal corporate opioids could be legally manufactured tell us about the i.g. spawning and what are the implications here for the ongoing lawsuits regarding opioids. absolutely so oxy cotton like many other prescription painkillers in our
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cottage are considered controlled substances and as such the regulation of and the enforcement of their abuse falls within the so the da had a situation whereby they can control the production of oxy cotton they chose not to in fact it is the exact opposite an increase of production some of that was based upon lobbying and some of them was based on the compelling interest of people who were suffering from certain illnesses needed pain medication and so what happened is that. the market to be flooded with oxy but one thing that people don't really recognize is that it's not necessarily your abuse problem as much as it is a prescription problem and the fact that the da only recently started to look at doctors who are overprescribing these medications and what they should have done when they increased the production or allowed to increase the production of oxy
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cotton is also to take a look at those doctors or those institutions that were prescribe an oxy cotton heavily and start to look at what their protocols were in place as far as how they would allow these drugs should be prescribed they failed to do that so it was really the worst case scenario as far as litigation is concerned we have seen litigation against the manufacturer of oxy cotton and we may also see some litigation against those institutions that perhaps overprescribed it but the da was certainly complicit to a degree. in the opium oil crisis itself right and in a previous career i was very shocked to discover that at the core of this is the essential he says you can make a certain amount of these drugs and it's not as if we had a sudden epidemic of painful cancer cases. in this country that necessitated this
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dramatic expansion. and as opposed to their regulation of illicit drugs as opposed to legal corporate narcotics they always say with regard to say marijuana cocaine that if there is more of it more people will use it they made the opposite argument in this case. yeah correct and what they should have done is again look at who is prescribe being it's a prescription epidemic and also to drill down deep and speak to these docs and then to see if there was alternative ways to alleviate the pain other than oxy cotton itself and so it's really an educational effort but it's also letting the prescribers know that there is oversight and it's really only been recently that there has been any perceived level of oversight for those who are really the individuals who are prescribing these types of medications now let's move on to fannie mae and freddie mac.
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we've touched on this before on the question is how do we launch these core institutions of u.s. housing market as profit making and there are growing concerns right now that the trump treasury department has announced that they will allow fannie and freddie to keep more of their profits so walk us through this new policy and what this means for the housing finance department and the u.s. . well what it's going to mean is that there's going to be more i believe a perceived difficulty in the financial market with the obligations pertaining to freddie mae and fannie mack and the situation is they also issue bonds they also issue other types of securities which are bought by large institutions and investors and they've always enjoyed a certain guarantee by the fact that they were issued by. a federal agency or a federal agency that was at least simply. that lee associated with the government
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when you start removing that and start privatizing it then what's going to happen is the rating agencies such as moody's and s. and p. will come in and basically rate these obligations based on their overall credit worthiness and if we see a decline in that then we're going to see a decline in their overall value and also how interested investors are in it and that may have an impact on those organizations which will trickle down on to as i've spoke about before the ability for consumers known only to get mortgages but also enjoy a wide variety of mortgages with different terms so it's fraught with a little bit of hazard it's which i don't think has been perceived yet and probably will only be perceived once everything goes through completely right always fascinating international regulatory attorney miles edwards thanks so much for joining us. thank you. october 1st marks the 70th anniversary of
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the founding of the people's republic a massive celebration shut down kamma wants where the parade told the story of the founding of china in 3 chapters the founding of the country reforming and opening and now finally the great renaissance the celebration came as the finale it with 70000 pigeons and 70000 balloons were released to symbolize peace and joy the progress made in the last 70 years has been astounding in $149.00 banking assets in china total only $149000000.00 are in b. today total assets have exceeded $281.00 trillion r m b and in terms of market capacity the total market cap of chinese equities market now ranks 2nd in the world only to the us 70 years ago china has 650000000 people and half of them didn't even have enough food now if china has 1400000000 people and lifted 70 percent of the population out from abject poverty to middle class to highlight this achievement before most representing food delivery workers made
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their way through the parade on electric scooters from not having enough food to food for all delivered to your door all through the app of may 20 m. paying not only has china been boasting its impressive food delivery network which is both faster and cheaper than grub and rates ali baba now promises delivery in urban areas in less than an hour undercutting amazon's prime now which is still at 2 hours. and that's it for this time you can always catch boom bust on you tube dot com slash boom bust argy see you next. soul reposed candle is ongoing the whole negative interest rates are the same is
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that we work better in the bond market these things are happening or experiencing a breakdown of markets all over the world so what we have we dodged one bullet call the we work i.p.o. we're getting gunned down in a hail of financial bullets from financial bad guys shooting out as with impunity. gandhian by north and so many people because a cop beat him he's so good that even such a bad cop be sending. i'm not killed anybody. until the find the next guy. looked up live again in the human being done the influence of the red blood she went on panty and dumped.
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the clicks and moved toward the c.e.o. thing is a deflection what is comfortable saying. that is going to be that then i got off the mini answer. that he and others are going to going to hear a lot about. that that you can bank on you get nothing back up. long lol the name. on the bottom there's a famous french airline control cannot all. handle a new person and lead to any 100 gandhi the new normal and going to run the place has been to keep you know to you then go to mark you then damon join you. it's funny.
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because. in this connection to the last damn fast for the last company and seeing and on the day today for the match promotion commission. branches just shoot on disk in the. asian community. least your mom was. going to go so said i'm not going to much to me mama it's just our.
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aging protest in hong kong tons of glee with a lot of rounds fired by police and demonstrate was probing at security forces. trumps lawyer accuses democrats of trying to soften and to offer presidential hopeful joe biden's team just news networks to stop giving it time to review giuliani. it's only sees a spike in modern the rivals off the road over tons former interior minister matteo so being a decision.

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