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tv   Boom Bust  RT  May 19, 2020 10:30pm-11:01pm EDT

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this is a boom bust the one business show you can't afford to miss something i want to stay open in washington coming up the senate banking committee questioned 2 top ranking officials on a 2 trillion dollar relief package causing some stocks to slip. conferencing services have become extremely popular but how safe are they and which one is best to use on a panel later show for you today so let's go and dive right in. the world economy faces a potential lengthy coronavirus recovery london based market said it expects the global economy to shrink 5.5 percent this year of that's triple the damage from the 2008 financial crisis and a new report by the world economic forum surveying risk managers is now suggesting
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this will be a long lasting global recession a contraction for the next 18 months managing director of the world economic forum so obviously he said the crisis has devastated lives and livelihoods it has triggered an economic crisis with far reaching implications and revealed the inadequacies of the past meanwhile on tuesday taiwan said it was disappointed and angry with the w.h.o. for not inviting the country to join this year's world health assembly. the ministry of foreign affairs expresses strong dissatisfaction that the world health organization secretary has yielded to pressure from the chinese government and continues to disregard the right of the 23000000 people of taiwan. taiwan has been lobbying to join after it was able to contain the krona virus outbreak the country is now relying on its own efforts for production of a vaccine this comes as u.s. president donald trump tweeted out a letter he sent to the head of the world health organization highlighting some
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serious concerns over the response will he also threaten to permanently cut off its funding if the w.h.o. does not commit to some major substantial improvements within the next 30 days chinese foreign ministry spokesperson criticized that move. but the above mentioned open letter of the us leader is full of language like maybe and it tries to mislead the public in this plausible way to present your control issues the trick the us is responsibility for incompetence and it's. this is. meanwhile the taking new measures to enforce its citizens follow their restrictions while those who host parties will be fined around $2700.00 attendees will be fined half of that and those not wearing a mask will those could be fined $800.00 more countries in europe plan to open their borders france and germany proposed a $500000000000.00 euro recovery fund now this would offer the e.u.
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commission some grants for the sectors and regions that have been most affected with coated 19 the plan however has not yet been approved in the u.s. is also working on more stimulus the 2 trillion dollars from the krona virus act federal reserve chair jerome powell and treasury secretary steven minucci and appeared before the committee on tuesday and how the 2 have been outspoken about their opposing views on edition from where we are joined by r.t. correspondent rachel blevins rachel what came out of the fiery hearing this morning well this marks the 1st time that administration officials were questioned about the results of the $2.00 trillion dollars kerry's act and it was also the 1st senate hearing that was held remotely for social distancing purposes the treasury secretary steven minucci and was questioned about a recent report which found that very little of the $500000000000.00 that was meant to be used as a loans for businesses and local governments has been used yet and he claimed they still plan to spend the money they just haven't done it yet but he was also asked about i q's ations that the government has prioritized helping major corporations
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while smaller businesses have been left to suffer here was his response to. companies such as boeing that i had expected would need to borrow from us on a direct basis we're able to borrow $25000000000.00 in the primer. markets so i would say in the best case scenario the markets open up and we don't need to use these facilities in the case of main street facility the minister will society which we expect both to be up and running by the end of the month we expect these to have a big impact on both those markets now that main street lending program that he referred to was a $600000000000.00 program that is supposed to help smaller and midsize businesses that have an eligible for previous programs but even though it's supposed to be up and running by june it's still not clear exactly when those businesses will get the funding they desperately need plan that's a problem what these these small business loans as well there were businesses that were still in the application process and those businesses are basically now having
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to declare bankruptcy or no longer going to reopen because of this now we're also seeing these record unemployment numbers numbers we haven't seen since the great depression how did officials respond to concerns about americans being able to provide for their families that's right well more than 36000000 americans have filed for unemployment census lockdown began and members of the senate banking committee expressed concerns about how those who are no longer getting a paycheck will still be able to pay their bills now in response to that federal reserve shared powell said that the focus right now should be on getting americans back to work take us know what he had to say a long periods of unemployment. and really affect people's ability to go back to work because they lose their networks they lose skills it was contact with the job market so i think anything that people. intact is probably. in their job but in the meantime keep them out of solvency and things like that if should that should the expansion take start leader or take take longer to get going
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. it's also important to note that according to latest reports an estimated 44 percent of the americans who have fallen for unemployment recently are either still waiting on those benefits or they have been denied altogether and that's not even the end of this rachel we're going to see probably a higher number of these unemployment as business as more businesses begin to close i know paul has been a pretty vocal about getting the fed to do whatever it takes he said not considering a negative rate but like kristie mentioned yesterday that as long as these investors are looking to buy and continuing to buy because the fed will be there to support them then there's there's really not much for them to do and there's only one way from here are to correspondent rachel levin thank you thank you. for more analysis on this on the markets we turn to boom bust co-host christine and todd of a horowitz chief strategist of a trading thank you for joining me today. christy revenues chrystia let's start
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with with stocks right there pretty mixed following the testimony that we just spoke to rachel about retail earnings are in focus for the week what are we seeing there. well i think with retail just like techs you're getting a mixed bag an earnings call to try to put a positive optimistic spin on every single story so today you have examples like home depot sales were stronger than expected growing about 6.4 percent your rear but profits were still down due to a virus related costs so the pandemic has changed customer shopping patterns and added additional labor and safety costs for the company as a had to supply extras notation products and limit the number of customers in the store at one time it also had to expand its cost of labor as an employee incentives in order to keep workers coming in during the pandemic so shares are trading down about 2 percent for the day and wal-mart also traded down 2 percent even though at initial plan it had next activation by a long shot and same store sales jumped by 10 percent in the 1st quarter due to
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courting goods and consumer discretionary products however it withdrew its financial outlook for the year saying. the buyer and i may created unprecedented variability so even though it's grew cost also grew as a result as more employees need to be stacked in order to help clean the stores stock shelves and most importantly fulfill online orders so it was also announced today during earnings that it would discontinue jet dot com and then use out the brand completely so while wal-mart did gain off the back of any calm throughout this entire coronavirus pandemic as everybody was online shopping rather than going to the stores that segment of the business has still yet to turn a profit and wal-mart is still actively trying to broaden its online sales beyond groceries and it's still heavily behind amazon delivery i know that the report mentioned u.s. e-commerce sales were up 74 percent but their apparel hadn't been doing as well but much like you said it's more about the groceries and essential that they offered todd i want to get this question and let's turn to the energy complex our oil prices finally stabilizing or are we seeing just
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a plunge into xperia rolls again. well i think what you're really seeing is you're seeing that the economy is starting to pick up again you're getting the economy open you've got the producers are cutting on supply so we're starting to burn through some of the glut that we had which will bring in higher prices i mean again we're certainly far away away from where we were on both sides but you know as you get the economy rolling you get people driving again you get companies working they're going to consume fuel and that's of course going to keep prices going higher and i think you're probably reached about the pinnacle of where they're going to go for now because again we still have many issues that are not being addressed but the initial sell off was probably too big which brings us back to probably a midpoint where we are no one that demand is definitely going up as more economies that begin to reopen kristie now focus is gradually shifting from the coronavirus
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it's going back to geopolitics as we figured it might the rising tension right now is between the united states and china and other countries in the middle where if they're playing the game late or the blame game that is what's going on there. well recently the the market kind of floated recently on optimism that as todd just said on the optimism that we're going to get a reopening that gilliatt or madonna's vaccine will save us all or most of all the power in the fed pledge unlimited support and unlimited ammo for risk assets and dollars at the floor in the market but now as you just mentioned the one thing to do you love this entire rally this entire whole trade is basically the relationship between us and china which has been deteriorating so right now the hostility of the accusation continues with new restrictions on semiconductor chips in an attempt to cripple falling now we talked about this last week how the cometh department is completely over the chain to prevent any chip maker foreign or domestic that uses any sort of american technology at all from supply weiwei without their approval so
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the end game of all this is to try to force supply chain out of china supply chains and logistic efficiency that has taken over a decade to build up so now washington's actions for china are becoming increasingly hostile which is the latest move today being that nasdaq tightening up their i.p.o. rules and restrictions and making it harder for chinese stocks to lift now this is especially significant because it really tightened the huge amount of capital flow between the 2 nations and we spoke about this yesterday when it when this news came out while we said it will struggle if these u.s. new sanctions remain in place costing the company billions of dollars i mean it is possible and that that relationship between united states and china is definitely getting worse but todd can the u.s. completely decouple from china they rely is so much on the manufacturing what would be that cost what would it look like and what are the consequences that these businesses are are going to eventually face. well i think 1st of all 'd i think
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that we've got too much stuff with china and especially if you look at our drugs and things like that i think that's where brom i'm happy that we're pulling away there and i think that look i believe that we should be able to be self-sustaining what came. what it came down to over the years was it was cheaper to go to china but i think cheaper comes at a cost and i think you're seeing those cost sharp right now with a lot of the issues that we're having now whether you believe china or not let the virus out on purpose i have no idea but my point is very simple that we should not have our core items over in china like drugs and things like that because we need to have those and when you have to depend on somebody who might be an adversary or an enemy at some point it's hard to have your lives determined by what they do so i think that again it'll hurt some companies but the bottom line is prices will rise which is fine i mean i think most americans would not mind paying a little bit more i think the companies got spoiled using china by having much bigger profit margins let me answer in a day i don't think it's that big of
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a deal and i think we can certainly survive and will thrive without china if that if it ever comes to that i mean they are saying a lot of analysts experts are saying this is temporary that in the long run it doesn't matter because staying in china will be more cost effective because while americans eventually want to do these jobs for a cheaper cost. well i think that americans will be happy to get more jobs here i think it'd be nice to have higher paying jobs back here i think one of the things we've missed out over the years is we've gone totally into a service sector and we don't have those manufacturing jobs we don't have those jobs that help people that need those types of jobs i mean you know we've got all types and you can't hire everybody at mcdonald's or wal-mart there are jobs that could be here that we could certainly flourish from and have more of the population participate in these jobs and make a good living i think what originally happened is that we get too priced out and we kept giving raises and unions got too much involved as
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a story for they haven't had the day if you brought in fair reasonable wages here the cost variance would not be as big as anybody might think when you count in shipping duty time and all of the other things that go on. so i think that the more you can manufacture in america the better off you're going to be will all see about that and what the next move like president trump has wanted to bring jobs back to america we'll see how that plays out with co-host christine and todd harwich of trading thank you for your time today thank you. time now for a quick break but hang here because when we return with more people working from home and using online video conferencing services how much more vulnerable are we getting casual will discuss with the best co-host spence on and cyber security analyst morgan right now as we go to break here the numbers at the club.
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the collapse of the russian post has exposed yet again the unprofessionalism by news of the corporate looking media the same media consistently project the old slave values to live. in even the truth or to speak to sleep in their news reporting. the world is driven by dreamers shaped by one person with those words. thinks. we dare to ask.
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they fail. to do that and she says you said you can. do. that job on. this. show this up but for us think think think you would think he could be but you know it's. going to. be. pleasing. and it. should be.
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54 jets and more than 1300 military personnel are headed to heal some air force base in alaska where is that to say come on i'll show you what's the reason for any type of enhanced u.s. military presence in this area rush up. what is it suddenly about the south china sea that makes it so that it 11000000000 barrels of oil. take a look at this map who really owns what kind of says no it belongs to us india says no we claim that that belongs to us both of these countries have nuclear weapons
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capabilities there is reason for concern so that's why we're going to drill down on this story for you today right here on the news with rick sanchez where you know as we always like to say we do believe by golly it's time. it's no surprise that online video conferencing services like zoom and skype have seen a massive increase in users over the past few months we'll we've reported on it extensively but how safe is it to communicate through these systems plus we're learning more today about new powers handed to the f.b.i. when it comes to your browsing history a lot to get to on this subject so joining us now is my internationally recognized expert on cyber security strategy cyber terrorism and advanced technology and the west coast an investigative journalist ben so on gentlemen thank you for joining me
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today. q ben let's start with you can you give us a little bit of an idea here on what we're seeing in terms of the services yes so there's services that have existed for some time than others that are popping up that are fairly new everybody knows what zoom is at this point if you didn't know what the zoom was before coronavirus started you definitely know what it is now obviously it's a video communication tool that's used now zoom is a little bit different than what some people had originally thought it was it was originally designed for work spaces it's now being used for classrooms and other ins it was supposed to be in the in the encrypted but turns out it wasn't then there's microsoft microsoft or something called microsoft teams that's more of a workflow system it's probably closer to slack if you know what that is than it is to zoom you have google that now has something called google meet used to be hangouts rim or google hangouts but who uses google hangouts nobody does so it's now a google meet the more interesting one to me though is the real competitors zoom in
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my opinion is this new facebook messenger rooms that facebook is pushing which is a system that allows more for this kind of online social gathering to 50 people within a messenger chat room or a video conference room it's not designed so much for work or for telecom you need as it is for kind of a hang out with friends but facebook's really pushing it hard and it seems like they're pushing it just in time to kind of ride the wave of this telecommute they did they did just launch it about a month ago so there's a reason for that but morgan in terms of security now people like. skype they use so many of these services available how do we know which one is better which one is safer at this point to use that claim to have and 10 in corruption we have since learned that it's not true well when it comes to privacy or security what are the options are better than others which is a safety. well the safest one to use is the one that you apply the security controls that you have
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a chair hands by the way of zoom did release version 5 and i use him alive it is now fully encrypted in the end so they actually if zoom will tell you to if you go look at the literature at the end of the month if you have an upgrade they will force the upgrade so pretty soon everybody is going to have to have the navigation what has happened before siri that the recent we've got the zoom bombing and the other stuff is people just didn't realize when overnight we basically had to shift the sitar workforce or being inside a building to now overnight we've become a virtual workforce we had gaps in policy we had weaknesses in security and one of the weaknesses was people that take advantage of sayings like you know making sure that the invites for resume were private they would post a lot of these links on. like city councils would message boards we saw it with kids so you no matter which one years you know it's going to be as there is no such thing as the safest platform everything is going to have its issues no matter every fortune 50 every fortune 100 company has been breached period so the one that this
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is the safe one is the one where you get familiar with it you understand what it does and what it doesn't do most vulnerable it is most in its incidents happen not because of what the software does it's because of what the user didn't know it did and they did turn on 2 factor authentication or turn on like the zoom the meeting room so whether you're using messenger or skype. i've used all of these extensively the best one is the one you used to sunil your eyes yourself with and you turn on the security features so make sure those watching at home they make sure to look up the thudding to see what they will and will not allow i mean they will probably had no idea they were going to become what they have become now so how to share that they they have been at least trying they say to to work on this but more again in terms cyber criminals have adapted their ransomware tactics now during this pandemic making them more vulnerable setting some of their malware to to launch more quickly once inside these networks for example health care providers and even other companies according to the security expert that is what's the reason for this and why have the criminals changed these tactics. it's the age old thing menu
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follow the money and these guys are following the money rather than x. filtering data on one of my rules on chief security advisor for central one we have been tracking this issue globally and we're seeing the increase in velocity of attacks why because the money is in the places where there is critical information health care is probably one of the top targets research labs places that have information about vaccines or research that's going on rather than exfiltrate ing the data and say hey we're going to expose this you don't here's money they're just saying we're locking everything up and if you really want this data which they do then you better pay us so we're seeing a change in tactics and the other thing to serve going back to what i said previously about this whole transition to work from home we're seeing a lot more people being targeted at home and targeted in a variety of ways than they would be normally inside the enterprise environment because now work is no longer something place you go with something you do and we're doing it from all sorts of places and home with distractions and other things
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we're seeing an increase in these things happening at home why because people aren't used to the work environment yet for those who have been working inside an office for a long time so we'll see a lot of these tactics keep evolving but right now because a covert they'll keep using sure uncertainty and doubt in exploiting anxiety to get their way a lot of the hacking going on right now but then speaking of security issues interestingly the united states senate has now agreed to give law enforcement agencies access to web browsing history data without even needing to obtain a warrant 1st what does that mean for us that authentic. and it's very bad news for u.s. citizens since it was actually 3 amendments that were going before the senate in order to kind of strengthen privacy and really there was a really good shot that this was going to these amendments would actually pass there were 3 senators who didn't show up to vote been sass of nebraska you have bernie sanders did not show up to vote and there was a 3rd senator who had actually said that she would vote for it patty murray said
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that she would vote for these amendments but they did. show up and so we actually saw this fail by one vote what this ultimately means is that the f.b.i. and cia can essentially access your browsing history and they can search your i.s.p. history they are able to basically take all that information and they don't need a warrant they don't need the presumption of a crime being committed they don't need to know that you were doing something nefarious they just can access it at any time now a lot of people would look at that and say but why would they unless you were doing something wrong the problem is is that that's not how the constitution is is designed it's not designed to say it only protects people at the moment when they might need it or only protect people who are doing good things the constitution is there to provide protections for all of us and checks and balances for law enforcement and this is just another example where the patriot act over the last 20 years continues to expand and to take away those basic fundamental constitutional rights but this is kind of a big one it's a huge one like you said especially without a warrant because before this they would actually need one but more again since the
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beginning of this global pandemic marketplaces on the dark web they've seen a rise in coven 1000 related products and services for example thought after the and 95 mask these gowns the gloves and even the drug chloroquine in which they've all been listed on these marketplaces why are people flocking to the dark web to get these products and can they trust the gear that they're getting. no i don't trust anything that comes off the dark with remember the dark web only exists because of bitcoin being able to of provide a way to monetize silk road the original silk road where they're selling guns drugs explosives all sorts of things. i'm telling you right now the the dark well there's only a very few things that go on the dark web you got to remember that dark web actually toward the browser this was actually rigidly invented by the naval research laboratory it was designed for human rights activists and for a military to be able to communicate securely it was a very small d. it's actually still not very big it's a pinhead you know in a world of you know thousands and thousands of parents but the people who use this
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. as a lot of people who go there to try and get information we've seen things like blood trying to be sold we've seen things like you say like well i have the vaccine or i've got certain kinds of information fortunately it takes a little bit of effort for you know to prevent these things to happen you've got to do a lot of work to actually get on the dark web you have to download the browser you have to understand how it works and how to go searching for these things but you know it's just basically the dark web is just like going down a dark alley in the middle of the night in a country you're not familiar with you'd unless you fully know what you're doing you've got no reason to be there so don't trust it when it comes to getting all of these the equipment know and unless you know what you're doing you won't be able to get on there is he said at the jail very that's very true well that was been left coast investigative journalist pencil on and we're going right cyber security analyst and chief security advisor for a sentimental one thank you so much for your time gentlemen. you don't get to see you sir. that's it for this time you can catch him bust on the man on the brand new portable t.v. app on smartphones play you can always catch it on youtube dot com slash boom bust
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r.t. the next time. says stand there while the r j o united states has been the unbelievable winner of the global geographic macroeconomic gambling casino church with the world reserve currency and really smart intelligent financial engineers and software engineers that. has run up my thought is that this pandemic has exposed incredible wallner abilities in the united states and the united kingdom and that's going to be painful it's going to be a very painful next 10 to 15 years. seemed wrong. will just don't hold. any new world yet to shape
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out these days to educate and indeed from an equals betrayal. when so many find themselves worlds apart we choose to look for common ground. during the vietnam war u.s. forces. it was a secret war. and for years the american people did not know. how much it is especially the most heavily bombed country per capita. human history millions of unexploded bombs still in danger lives in this small agricultural country jordyn wieber. even today kids in laos full victims of bombs dropped decades ago is the us making amends for the tragedy and. help to the people need in that
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little. hello there i'm going to let you know watching in question broadcasting from marking america's national news headquarters in washington d.c. i want to welcome our viewers from across the nation and all around the world got a lot to cover tonight so let's get started. for a breaking news to get you this hour coming out of the middle east where the palestinian president mahmoud abbas just said that palestine is officially withdrawing from all agreements with israel and the u.s. so joining us now from tel aviv our very own paula flare she's got more on this
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major development paula.

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