tv Boom Bust RT January 29, 2021 5:30am-6:01am EST
join me every thursday i'll be all excited when sure and i'll be speaking to us of the world of politics all those those i'm sure. i'll see you that. this is boom bust the one business show you can't afford to miss. in washington coming up u.s. g.d.p. close out 2020 at its worst rate since $1046.00 and shrank by 3.5 percent and the game stop saga continues as robin hood and other major trading partners are trading as the battle between wall street and small investors continues we'll explain what this means for future trading with the us pros with
christiane and ben next have a lot to get to so let's get started. here's a headline that will surprise no one in 2020 the u.s. economy had its worst performance in 74 years since the end of world war 2 it contracted 3.5 percent now this was of course because of the coronavirus lockdowns and the impact of the worldwide pandemic so what's in store for 2021 especially in an economy that remains so uncertain joining me now to discuss this and more. on it chrystia i ben let's start with you can you give us a rundown of how the economy did or didn't perform in 2020. yeah i mean as you said in the beginning here it's really no surprise to anybody the economy did not do well contract at 3.5 percent as you said the worst it's done since 1946 so it's been a long time since the economy's contracted that much in a single year and that came off of the 2.2 percent growth that we saw the year before in 1900 the bottom line here is this is basically every sector was down
because of the coronavirus with the exception by the way of government government grew during this time or everything else is that it's always a bad recipe when you're talking about of a free market system or at least supposedly a free market system we'll talk about that in a minute but yeah i mean obviously everything contract because of coronavirus it's not really a surprise here the economy works we're thinking it's going to come back but a lot of that depends on the regulations that are put into place remember coronavirus did not cause the economy to to contract or to falter government policies over the coronavirus did right well we're seeing some movement and stocks right now kristie u.s. stocks jumped on thursday they're roaring back from that sharp sell off that we saw on wall street earlier that saw the that's and p. 500 and the dow jones industrial average they suffered their worst drop in 3 months what's going on here. you know the market stage a drastic comeback and we're still in the middle of earnings week so we have shares of things like american airlines started more than 8 percent after quarter better
than results so you have financial materials and other cyclical sensitive names jumping more than 2 percent in each of the bulge back arc it's still intact so yesterday we had with violence sell off and that stemmed from fears of an overly speculate of vironment and many of wall street's biggest firms are actually forced to liquidate and sell out of their favorite positions things that have been working for the past year things like amazon netflix space folks who might all have tech names in order to raise cash and pay off margin calls on their short positions i got absolutely smote and that forced liquidation and fears of needing to raise more cash in the future sparked this massive across the board wednesday that accelerated into the close however today as many brokerages are introducing restrictions on these small cap names order is coming back into the market so robinhood blocked you can stop stock purchases and market brokers t.d. ameritrade are also restricting access to specific names which include e.m.c. need blackberry nokia and a few others and these names are restricted to position closing only and traders
cannot buy more shares of the company so as order is kind of restored to the market the macro backdrop still remains mostly the same and mostly positive but now the big question is is that really order because while things are returning back to status quo for retail traders are disillusioned saying that this is unfair and as market manipulation to restrict trading in these new preventing retail traders from profiting into these are really affecting the markets you mention this game works which the saga continues ben i need to ask you shares in the company they've been at the center of this trading frenzy fueled by this reddit message board but we're down sharply on thursday after the brokers are stricter trading on stock now i do want to mention weeble lifted their restrictions on the stock just a just a little bit ago robin hood is facing a class action lawsuit in new york against what it's done but do we know. yeah i'm so so excited about this story this is a story we should spend the entire show on today for entire half hour right now
excited to hear what my buddy christie is going to say about this also we might agree we might disagree to me this is the biggest story financial story of the year so far i'm a end up being the biggest story of the year period which is that you have these these retail sites like robin hood coming in today and basically restricting and saying you cannot buy game stop stock from us you cannot buy amc the nokia bed bath and beyond and why are they doing that they're doing that because these wall street head hedge fund managers want to be able to come in and short those stocks and make big profits on them and so what you actually have happening here is a war between retail investors who guess i believe are absolutely trying to hurt hedge funds and they're trying to hurt money on wall street by doing this so what that's what you can do in a free market in a true free market if you say hey i see that big hedge funds are trying to short the stock on game stop and make a profit so rather than letting them sell low on that we're going to buy it and we're going to pump that price up and that's for those who are not following the
story that's what retail investors did they came in they started buying game stop in the in the stock went through the roof for the last couple of days and they're sticking it to wall street and in response to that these retail investments i think robin hood say you're not allowed to buy we're going to block you and this is how outrageous it is a o c ted cruz sherrod brown republicans and democrats in congress are all in agreement that this is bad guys how outlandish this was for a once a as they are in agreement which they're happy to be here happy to hear that for once or an agreement we talked a little bit about this before christie and it is interesting i'm with you ben is a major story this is something that has been happening for years now market maybe not necessarily manipulation whatever you want to call it has finally been to be doing this for so long it's just now there are other creative people who are getting on board with this and this is actually exposing a lot of what's been going on christie what do you think. i mean hedge funds have
been doing it to other hedge funds for years i mean that's just what a short squeeze is if the hedge fund sees another hedge fund a competitor amassing a massive short position they do it to each other so what's the difference between retail traders coming in and staging a war between hedge fund has just got to be helpers and such so i don't know if brokers should be setting an arbitrary rule like this of what we saw today it's unfair it's unfair to retail trade by swooping in to say under the guise of volatility because it actually locks retail trade us out of their account that as a result a lot of retail traders today actually lost money lot of money due to the arbitrary decision of these marriages so yes they are private companies and they can do whatever they want but the trust in the system that's gone especially for robin hood because robin hood it's stablish their platform on the model it's in our the ordinary investor give them access make it an even playing field so this now goes totally against what we saw today was not a free market despite the fact that they say they support a capitalist free market robin hood and other brokerage house like t.d.
ameritrade and active brokers they enacted their own form of market manipulation by restricting purchases well any warning previous to explore just even overnight disclosures especially when hedge funds and other professional today are able to really trade stock as they see fit up to a professional stock traders hedge funds they can actually buy a game stop today while retail traders are walked out of it well and really going to say something real quick about that which is that the only thing you could do if you were a retail trader robineau is you could sell which means that robin hood didn't just lock you out of your account they said the only thing you can do is what the hedge fund managers want you to do we're going to actually put you in a position where you where you either lose money by sitting on it or you can sell it off right now so that it benefits them and there is no more stark example of market manipulation than what we saw today there's nothing really that's going to change here no rules that are going to be enforced i think perhaps the only one is that they brokerages may not allow right for them to restrict these brokerages are
rules in force are not going to allow them to restrict these brokerages from taking action in this sort of circumstance right. well but we'll see what happens i think congress may take action to make it illegal for you for these kinds of of retail firms to be able to lock you out of your account they should make it illegal what absolutely should be illegal the bottom line is if we believe that people have the right to buy and sell on the stock market then they have the right to buy and sell in the stock market you cannot stop them from doing that because you don't like what they're buying and you don't like who it's hurting because it's hurting big money that is christie said does this all the time and that this is how they make their money and the idea that you and this is what's so fascinating about this this isn't a racial issue this is an issue of of the retail market against wall street that's what it is people men women people from all over the country who got in on this and said hey you know what we're going to stick to these firms well if you want to do that you have the right to do it it's your money and you can do it and the idea that you would be locked out of that system and those accounts rosen and then told
well you can sell it so that these wall street firms that don't need more money can go ahead and make their money and not lose anything is obscene like you said we could go on forever about this and i'm sure this isn't the end all will touch base again on it but must spend so on christie i thank you so much for that discussion. the struggle to an ocular at the u.s. population continues with some states are reporting vaccine shortages while others are still dealing with a distribution debacle as of today only 6 percent 6 percent of the entire population has received the 1st shot it's a tall task for the new leadership in the white house that's determined to ramp up these vaccinations and to add insult to injury the biden ministration projects hundreds of thousands of people could die from the virus in the coming weeks as reports. this is a wartime effort today the coronavirus pandemic showing no signs of letting up the u.s. reporting more than 25000000 cases and more than 424000 deaths the biden administration
issuing a stark warning if we continue on the other trajectory in the so you can see the most recent national ensemble cast. 179214000 could 9000 that's what. 212-0218 sobering message as the administration continues to push ahead in the battle against coded 19 mass vaccination sites rolling out across the country as the president works to fulfill his promise of vaccinating 100000000 americans during his 1st 100 days in office so far this week. we've been hitting our target of an average of $1000000.00 a nation's per day necessary to meet the president's early commitment to administer $100000000.00 shots in $100.00 days. still though health departments across the country say they are facing challenges with demand for kovan 1000 axioms that far outpace the supply. and while the biden and ministration has repeatedly touted its
plans to aggressively use the defense production act white house officials say there is no need for more vaccine manufacturers just yet i don't think our concern at this point is whether or not we're going to have the vaccine doses obviously the president announced yesterday the intention to purchased coaches additional doses are confidence in the manufacturers to have those doses available this as new variants of the coronavirus are being reported now in at least $26.00 states scientists warn that with no bus system to identify genetic variations of the virus the united states is not fully equipped to track dangerous. to not only have an increase merely means it is likely to meet you serious. minded it. does not be to. make it as a country continues to grapple with the virus the biden administration is now actively
considering a requirement for cope in 1000 testing for all passengers catching a domestic flight already travelers entering the u.s. must provide proof of a negative kovan 1000 test in order to board their flight but they are still strongly encouraged to avoid any non-essential travel reporting for boom bust trinity child as r.t. . time now for a quick break but when we come back super bowl $55.00 is just around the corner and while many major brands have opted out of advertising. c.b.s. confirmed it's already virtually sold out of commercial spots will discuss this. more with professor victor math than they were. right now there are. people who are overweight or obese it's the 4th
a tumble to self. and sugary and salty and addictive it's not at the individual level and it's not individual willpower and if we go on believing that never change this obesity epidemic that industry has been influencing very deeply the medical and scientific establishment. so what's driving the obesity epidemic it's corporate profit. by the pandemic no certainly no borders and just blind to nationalities. as america. we don't have the facts in the world needs to be. judged as commentary prices it is interesting to in modern times we can
do better we should. everyone is contributing way but we also know that this crisis will not go on forever the challenges create the response has been much so many good people are helping us. it makes us feel very proud that we are in it together. secret prisons are not usually what comes to mind when thinking about europe however even the most prosperous can be deceived we've been to 0 song work to view houses were allowed to leave prison was located only cia people had access to the story from investigators covered the darkest dealings of the secret services but i mean. the great of nor.
for justice. a battle is brewing over the distribution of astra zeneca covert 1000 vaccine in europe the pharmaceutical company was expected to deliver about 80000000 doses to members of the european union by the end of march but that number has been cut by 60 percent in the e.u. leaders want to know if the u.k.
is keeping doses its member countries should get and are now threatening to withhold supplies of other vaccine doses from the u.k. in response legal journey here with america's lawyer joins us with more molly good to see you as always what's going on with supplies of the astra zeneca coated 1000 vaccine in the u.k. and the e.u. . you know there just aren't enough to go around and everybody is clamoring for them and i think you're also seeing some distrust of the system so as you mention those numbers the e.u. is expecting some 80000000 doses and what they're getting is around $31000000.00 they're looking across the water over there at the u.k. they've got a couple of factories that are also supplying these astra zeneca that scenes in there like hey are you sure we're being we're getting our vaccines fairly the case seems to be having theirs and so there is this mistrust of astra zeneca really in the whole process but you know the u.k. put in the request for their doses a lot sooner that's what the c.e.o. of astra zeneca said that the supply coming out of the u.k. would stay in the u.k. that that was their agreement and he was basically distrusting of that there seems
to be a supply chain issue worldwide with the vaccines in general but is astra zeneca technically legally obligated to supply the stocks into the european union well there is some confusion over that depending on who you talk to i guess the e.u. is basically saying that they are contractually obligated astra zeneca saying that they're not that it was based on a best effort clause and they didn't commit to a specific timetable for deliberate but they are committed to working it out the saying that that's not at all what they said that the company had committed to providing vaccines from those 2 factories in britain as well and again we heard astra zeneca saying that those were to stay in britain so you know the e.u. invested about 400000000 for these 400000000 doses of the vaccine so far and since not all the money has been paid to astra zeneca you lawyers are trying to determine if that's a breach of contract. there's talk of belgium may withhold doses of other vaccines from being exported into the u.k. is it within the rights to do something like this. they're going to have to pass
a law to do it basically doing new authorization mechanism and this is something that broke in the news today and it would basically give national regulators the right to refuse exporting the vaccine and so there's some pfizer biotech vaccines that are being made at a factory there in brussels and they are basically threatening to withhold those if they can pass this mechanism that gives them the power to do that it's about a $40000000.00 dosage supposed to go to the u.k. and you know a spokesperson for the belgian health ministry they actually toured the site were also the astra zeneca. were being made because that was one of the reasons the c.e.o. bashers anika said they weren't getting that there were some issues with getting the manufacturer in there was a problem that particular plant so they toured that plant to determine if there actually was a production problem and they hope that there's no need to ban exports but they will if they basically feel like it's possible and they're not getting their fair share so britain also did the same thing by the way they banned the export of
certain coronavirus medicines and so that's another reason you're saying hey we're going to look out for ourselves so it's basically acts of protectionism you know whether it's fair or not that's what they're looking and we knew this was going to be a tremendous for a hardship that they were going to face in the roll out all over the world legal journalist wine barrels were out of time but thank you so much with that for having the latest for us. as we approach super bowl sunday it seems even the big game is going to be a little bit different this year the tampa bay bucs are the 1st team in n.f.l. history to play a super bowl in their own home stadium while many are excited to watch veteran tom brady take on defending super bowl champ patrick holmes well a lot of people watch the game soley for commercials c.b.s. confirmed it has virtually sold out this is just by companies like and eyes are bush coca-cola and pepsi pulling out of the ad spotlight will the beer maker say they are putting the money toward a different cause saying later this year but wiser hopes to support recovery on promise at bars and restaurants by accelerating coated recovery so people can we
unite again they're planning to pursue a more effective campaign promoting docs and education so for more we welcome back professor of sports economics college of the holy cross dr victor matheson professor thanks again for being with us let's start with these major brands that are opting out of these where he expensive super bowl commercials is this more or publicize the stunt to kind of help boost engagement with the brand. i think what's really going on here is the fact that it's risky to advertise in time period when by the time the game goes on almost half a 1000000 americans will have died. so you seem sort of celebrate tori adds were the scenes were you know. wiser for august or was. that doesn't that doesn't relate as well it makes it a risk you know it's very similar and in fact in the environment we go out after 911 out you advertise your product old storm
a very good morning where i think things are very different obviously we're living in a different time it's not what we expected a year ago but we are coca-cola which is taking a big hit from the stadium closures so that it wants to make sure that it's investing in the right resources during these unprecedented times pepsi it's still hosting the halftime show right. yes so it should be pointed out that just because they've taken commercials out of particular brands doesn't mean these companies are pulling up completely so budweiser is still lab or ties in the. ard seltzer's i could still leverage the michelob and other product it's just not. as budweiser and bud light same with pepsi it's still advertising do just it's primary you know all of products and i think that and again to go have. and again you know some of these companies have been hurt as much as anyone were you were you drink soda you drink at the movie theater you drink it out at restaurants you drink it
out of ballparks in stadiums and of course that business has been decimated by rotavirus over and it's very surprising because pepsi yes they are going to continue sponsor the halftime show but they had pretty good commercials and and commercials that really get a lot of attention during during the super bowl so it's interesting to see them kind of pull out but despite these major brands opting out by a come c.b.s. confirmed it's already virtually sold out of commercial spots is the demand really that high for commercials to did was that caused by these other major brands pulling out what's the reason behind this. well the super bowl is still of the prime real estate in the night on television in the united states. the networks are . to sell about $400000000.00 of commercials during that night. the absence of you know some of the big sponsors like budweiser see it gives an
opportunity for some of these smaller companies or to take a risk going to a little bit different where you get these because that was. you know maybe they hit that right note. these very unusual definitely looks like it but we were talking about this before professor the ratings for n.f.l. specifically right where we're seeing that 2020 season ratings were down about 10 percent in viewership compared to last year to 2019 now the last 3 weeks of the playoff games they're leading up to the super bowl they seem to be picking back up ratings a little bit they aren't a little over 2020 1000000 viewers per per game what should we expect for the super bowl. no matter what happens whether ratings are up a little more little opera little down it'll still be far and away the biggest ratings of any show during the year we're going to get over $100000000.00 viewers for this again far bigger than any other sporting event or non sporting event by an
actor of 2 or 3 so it will still be a huge night for that suspect it's been set a very very well for the n.f.l. with kind of the old guard versus new guard you know at home 1st brady is an appealing match up for the n.f.l. so i think the n.f.l. will be fine in terms of your ratings here obviously they're going to take a big on. be only be at about a 3rd after the but in some ways at least the game will be a ringback little bit normal because most of us are our walk home anyway and we're not at the we're not at the a.t.m. offer these sort of. probably parties too so we'll see whether that has some effect on the ratings as well and for what we're not getting together in big groups that and 30 and a walk in you know very small. fry and we know that they still expect some attendees 7500 n.f.l. is giving away 7500 tickets for those health workers that have been vaccinated now
the average price of a secondary market now selling this year for $14110.00 that's up from the $5511.00 average last year people are paying less. well it's always hard to know what you what it means when that you saw it and when you say tickets are selling for $40000.00 certainly you know there's not large numbers of tickets being sold like that but there's a couple things going on obviously a huge reduction in supply means there's less tickets available out there which means to drive prices up the other big thing driving prices up is the fact that now but it's actually wearing a whole game of 1st time ever in super bowl history that the only team is actually played in the super bowl and what that means is that people if you're a local am president in some ways super bowl tickets are on sale if you don't need to stay out of those many days i'm probably not the be i'm hotel rooms and
playing. with so you know you can really splurge on just to get itself you know where you go you would feel that the normal year when travel would also pinball that's a very big deal the 1st n.f.l. game in history where the buccaneers are playing in their home stadium not something scary day many people here forward to that better and tom brady defending super bowl champ the home so it's going be an interesting one and and much like you said i think a lot of people are expecting this to be have huge viewership professor victor matheson of the college of the holy cross thank you for your time today. well thanks for. that for this time you can catch boom bust on demand on the portable t.v. at i will see you next time. please. in 2040 you know bloody revolution of you tube clip the demonstrations going from
being relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it just always i mean your list with video and the bill is that i mean you split needle the former ukrainian president recalls the events of $24.00 g. and. those who took it invested over $5000000000.00 to assist ukraine in these and other goals that will ensure a secure and prosperous and democratic. is going on the phone lines smoke why don't they come in put them in the muslim on muslim problem going to november on one side of the fence about. this.
was not a muslim but i did just that they had nothing. she was you make a. general but from the 6 sun on my book you go to the british course that's enough of them stop. i mean you got. to. it. seems wrong when old rules just don't hold. any new world that you get to shape out of disdain he comes to the ticket and indeed from an equals betrayal.
when so many find themselves worlds apart we choose to look for common ground. in. bolivia and argentina become the latest latin american states to get hundreds of thousands of russian coated shot doses as the head of the un heralds the role but think of you can play in the battle against the pandemic. in all strains and occupation campaign it using western vaccines grinds to a halt in parts of the country a surprise running out pumping doctors to question the easiest job procurement system.