tv Boom Bust RT June 24, 2021 8:30pm-9:01pm EDT
the fact gisors financial survival guy, housing bubble. oh, you mean the downside? artificially little mortgage right now, get carried away was calling to report doing the breathing technique and then take a pool in the hill and no new when he goes out to, to bring staff. i need to re reinstate the diamond fields rec, tomorrow. the judge in green, a vision should be in i don't think there comes right on police report in
december 2020 a group of and he finishes fill out a film crew access for 3 months. if people organization is an idea that must be opposed to channel out the gate route, they make their faces. but they can say what they believe and we believe in helping our community. we believe that fascism is one of the major threats to the united states as gotten driven to the johns to see who and teeth are really are. in order for me to exercise my 1st amendment right and say that my life matter, i have to be onto the teachers that that's how we can trust the police. we can't trust the government. we can't trust anyone except ourselves to protect ourselves in the
the this is boom bus one business show you can't afford to miss a branch bore in washington coming up. our goal remains to ensure that russia cannot use energy as a course of tool as a weapon against ukraine or anyone else in europe. and during his latest trip to germany, united states secretary of state anthony blanket addressed the controversy regarding that nearly complete nordstrom to pipeline. we bring you his full comments and reaction. then we turn to the oil sector, which is stored in the wake of the surging summer travel season. we take a look at the rebound of the commodity and the consumption forecast. then later we analyze the performance of air b and b and how the rental company has managed to recover from its corona virus losses with rti correspondent, sire tab in june. perfect. so today, dive right in and the us secretary of state is speaking out against the north
stream to pipelines, saying it must not be used as a course of tool against any european state. specifically, secretary anthony blinking is talking about ukraine, which the north seem to pipeline, would allow russia to bypass while sending natural gas to europe. like its comments come amid meetings with german officials about how to protect europe's energy sovereignty. by the time we took office, the pipeline as a matter of its physical construction, was more than 90 percent complete. and we are determined to see if we can make something positive out of a difficult situation that we inherited. and to do it, we can to make sure that the end result is that europe's energy security is not undermine infected, strengthened that your, that ukraine's position is not weakened, that it's actually reinforced. our goal remains to ensure that russia cannot use energy as a course of tool as a weapon against ukraine or,
or anyone else in europe. good place to speak of in the conversation. we had tony made it very clear to me that there is an expectation in washington with regard to nord stream to so that we do our part to ensure that this pipeline cannot be misused by putin to exert political pressure on ukraine. we are aware of that and we want to do our part. we have done that in the past, and we have started to do that by helping to ensure that they will continue to be an alternative gas transit contracts for ukraine even if north stream 2 were to operate missteps. and joining us now to discuss his boom by the co host, an investigative journalist, ben swan. ben, what's the harm or difficulty that could be placed on your screen by russia? sending gas directly to germany? yeah, the harm, the difficulty is a loss of about 7000000000 in transit fees that you currently are use right now.
because russia moves natural gas through pipelines where through the ukraine in order to get it to europe. and so the fear of losing that, that $7000000000.00 which translates into hundreds of millions of us dollars that they would not be able to get anymore is the fear. it's funny though, the terminology that's being used here, brent, because, as you said off the top here, the us secretary of state is saying we cannot allow russia to harm ukraine. we cannot allow them to put this pressure on our european allies because they have power because they're sydney natural gas dramatically, from russia to germany. and so instead, the united states is exerting pressure and trying to influence germany to say, not only, not only do you have to continue to work with ukraine, but you may have to continue to pay transit fees on gas. it's not even flowing through that country. how bizarre is that? well, and it's interesting, because we've talked about this story,
obviously over the last several years. so much of these concerns that number one. well, what happens if russia decides to shut off energy to places like germany, then they're going to be stuck. and frankly, the problem is the u. s. really has no other plan when they talk about thanks for providing gas to germany. right. does this discussion between blanket and the german foreign minister, indicate that germany will be paying ukraine the ukraine? that is to say, those gas transit fees, even without gas moving through their country. it seems to indicate that. but think about what you just said. so the, if the fear is, well, what if the russians decide to turn off that, that pipeline, they don't let you have the gas anymore? well, right now, the gas is coming from russia. it's just coming from russia across the land, through ukraine, and going to europe through the north string to pipeline it's bypass in ukraine and going directly between russia and germany. so number one, that argument a little tough. number 2, why would, why should do this? right?
it's in russia is best interest to sell gas and natural gas to germany in germany's best interests, to take that natural gas directly from russia instead of paying transit fees. and thirdly, the united states makes this argument, while the number to seller of natural gas to the united states is russia. and that's something that the trauma ministration never wanted to admit when they're talking about energy independence. and right now we're talking about, we don't even have the conversations anymore about energy independence here in the united states, we are buying the 2nd largest supply of natural gas in this country comes directly from russia to the united states. so right now, rushes already providing this natural gas, it makes no sense that they would cut off the world. it's one of their primary sources in terms of exports. and now the vitamin administration is actually receives some criticism for lifting sanctions against russians involved in the completion of the pipeline. we have about 30 seconds here, but why did you do this if washington remain so opposed to it?
well, i think the reason he did it was the same face. vitamin says the reason that he did it is because, well, the pipeline is almost done. so there's no point in keeping this. what present improvement over in russia says he says the reason by that is because that biting cannot afford to do something that's going to keep harming the europeans, which is in their best interest. it's very difficult to impose sanctions on a country by germany, and they try to punish them or punish russia for having a unilateral deal between 2 countries. that's very difficult, especially when that unilateral deal is good for the russians. and it's good for the germans and the u. s. at some point someone's going to say you have no, no say in this, and i think that's what biden was worried about. and absolutely, and chairs are anglo merkel. didn't want to ruffling any feathers, but she has been severely in favor of this pipeline make criticism from the united states co host ben swan. thank you so much. thank you. meanwhile, current oil demand is driving up crude prices in every part of the world with brent storing to $75.00 per barrel. a 2 year high demand balances back from the pandemic
. and it wasn't just international crude that's climbing on wednesday, w t. i was also above $73.00 a sign of a tighter market. now, mid fears of a return to $100.00 oil and inflation. mounting. the global oil market is calling for an increase in supply and turning to the oil cartel to fill the supply shortfall. but will opec provide what consumers are demanding? well, to take a look at this, let's bring into co host chris the i and david mckelvey. the ceo of macaroni financial group, always great to have both you talking about this important issue. chris, the i want to start with you with opec scheduled to meet online next week to decide their production policy for august beyond what's expected to come up that meeting, especially after boosting output from may to july. well, it's expected that they're probably gonna be boosting output again, so only by some $500000.00 barrels per day when they meet next week, which is a very modest boost. but that definitely won't be enough to plug the shortfall in
supply. so the organization is looking to cautiously rep about, but apparently they're still worried about uncertain demands as the world economies recover unevenly. and if there's a potential that can wave of the various delta virus had a. so opec plus flash output early last year by $9700000.00 barrels a day, as the panoramic struck demand. so the cumulative additions over the past couple of months have now brought back about 4000000 barrels a day by next month. so we're still less than halfway back to normal hours. so this modest increase will be very easily absorbed by the market. so while demand is screening for more supply, it's still very controlled. so the alliances, motivation for moving very slowly could very well be financial oil right now, is that around $75.00 a barrel? and that's basically replenishing their coffers that were severely strained by last year's market when there was essentially no demand. so the group now wants to sustain current prices or higher ones until they're satisfied. so prices could
definitely hit a 100. and david, frankly, legend harold ham. actually he's the executive chairman at continental resources, of course is anticipating $100.00 a barrel of oil. very soon as christy said you could see it soon. do you see it reaching that price soon? reaching a 100. yes, but not necessarily in 2021. opec has brought back 40 percent of their 2020 production cuts to the market. as christy mentioned, there's still plenty of we'll bring back to the market again. this is sort of recovery demand with higher prices, both crude and w t. i. the larger the shift and market dominance back to the u. s. that that is what's likely with higher prices with revitalized drilling. so if you'd give drillers in the u. s. a reason the aim for that 13100000 barrels of production, which we peak that they'll try for the closer we get to a 100. this is really where i think opec has to weigh some costs,
benefits in terms of who has what sort of market share and dominance. last time we talked on this topic back in may, i thought the price target would be in the mid seventies to say low eighty's, maybe stretch in the eighty's by year end. i still think those are good numbers. around brings in a wrinkle, and opec has to be mindful of what us negotiators have in mind and the potential ramp up in iranian exports as well. and that's a great point because that's what i want to get to next year. because christy a senior iranian official, has announced that the u. s. has agreed to lift all things on around oil and shipping industry. something to us de department has refuted at this point. now whether that is true or not, will around oil hitting the market make a substantial difference to world oil prices in your opinion. yeah, definitely because to ron could ramp up alpa bite about $1400000.00 barrels per day if it secures in accord with washington. and that would actually plug about 2 thirds of the deficit projected by opec for the rest of the year. so iran could
also quickly export 1000000 barrels of oil that it's currently holding in storage. if it reaches a deal over the past couple of months, it has boosted the volume of crude. it has stored in tankers and in what may be preparations for restart to exports. so some of those painters are already in transit to asia, which is the biggest market for ronnie and oil. so their oil exports were pretty much flashed to a mere fraction of what they once were as a result of trumps sanction. so a revival of the deal and lifting the levies could actually bring back about $3800000.00 barrels per day. oil to the market. so at this point the oil market is closely monitoring these negotiations on the g p. o. parties in vienna as the more significant variable for oil prices in the near term, even above the opec meeting next week, and data before we go with this rising oil demand in the us plus a flat domestic production in recent months, crude has significantly narrowed the discount to brent and recent weeks, will that likely result in lower us crude oil exports moving forward?
yeah, i mean if those 2 variables stay in place recovery demand in flat production, you'd see the spread continuing to narrow between w t i and brand. and so as i mentioned earlier, higher prices inspire more domestic drilling. it also doesn't hurt that reserve based loans are easier to come by in this price environment. so think back to the 20 twenty's when borrowing base re determinations were in play, it was a nightmare. and so now you have banks that are more active again, and of course private equity has been very active in lending into the oil space. so, you know, lending to be companies, it's sort of drill, baby drill that takes capital capital is abundant right now from many sources. so between the prices of deputy, the cost of capital being low and lender is concerned, dissipating to some degree, you may see a resurgence in oil exports and that relates back to opec and their production
decisions in the coming weeks. and as the pay that continues to win and production picks up, we'll continue to look at the boom bust co host christiane david mckelvey of mac of any financial. thank you so much for your insight today. thank you. and time now for a quick break, but when we come back, the bank of england has updated outlook for the u. k. economy and later on for it, take a look at those numbers. then we turned to the gig economy in the travel sector as air b and b as bounce back from head demik crash will bring you up to speed. as we go to break here, the numbers that the close the me in russia, china relations are strong and getting deeper. we are told this is dangerous for
the washington lead world. is it? why are moscow in beijing moving closer together? is it miscalculations of the washington consensus? have anything to do with it? is that china, russia, a liar made it america research was a glitch city that can just keep other than the human russell, but i hope so. but over the, over the years, they sort of the promotion learning and a lot of stories going on in the course which i'm interested in. mr. bob rhodes. i position we think he might be
a soldier because off the boot she's wearing your twitch pulled up, took a puzzled when you was the sure someone was supposed to buffalo ah ah. the air welcome back. the bank of england said thursday, it sees inflation in the world's 5th largest economy, eclipse thing, 3 percent, as it reopened, following pandemic locked out. that was similar to the messaging we've been hearing from the federal reserve in the united states. the british central bank thinks the rise above 2 percent will be just a temporary blip. now the bank of england monetary policy committee also voted to keep the bond buying program at $875000000000.00 pounds and interest rates
unchanged at an all time low of 0 point one percent analysts are now looking for a possible rate increase in august of 2022. for more on this, let's bring in hilary form, which is board member of the british american business association and president of straw mark, business development consultants. hillary always a pleasure to have you on the show. it feels like we're really seeing the same situation in the u. k. as we are in the us. maybe the numbers here are a little bit higher for right now. but what the take away from these new projections from the bank of england. well, pleasure to be back with you brand a few things here. number of takeaways, one of them is that there were a great amount of concerns. there will be overheating actually of the u. k. economy . but the very great inflationary price pressures a view to be somewhat transitory. the bank of england chairman andrew bailey over so last november, this huge q e envelope, the quantitative easing envelope of a 150000000000 pounds. but it's few to really have kept the british economy. boyd
and british economy had stayed stable. so some of the take away from this all that there hasn't been the great recession that we thought before. and indeed, this is the recession. what existed of recession, somewhat different than anything before, because household income is that usually decline, of course, of actually increase because it wasn't anywhere to people to spend. so really what we're saying is we're seeing that the bank of being on is going to hold steady and it's going to basically spend the rest of that entire q e envelope. it's interesting that you missed that last point too because they're going to be books. one day written about this period of time over the last 16 months and how you entered this recession, but people, some people were actually able to thrive more so that in a traditional recession for sure. now, earlier this week it was reported that british factory output reached its highest level on record in june. but there is some concern that the economic boom could be a temporary thing. could all this concern over inflation to rail the positive growth where you're white, but they're all those concerns. i would say 2 things. and she defer to chris
williamson. he's the chief business economist. i a small keith. and as he talks about there are, there are 2 factors actually that are going to quote number one, the staff shortages very much like the us. of course, a lot of people are being paid to stay home rather than working. and that sort of the follow process also in the u. k. but also the supply chain issues. there was not only, of course, we all know about that huge tank of it was caught in the suez canal, but supply chain issues rippled throughout the supply chain due to of course the, the severe lockdown and the u. k. previously. so those 2 factors are actually tempering inflation. and meanwhile, the in the year zone as a whole economy seems to be booming as business growth accelerated to it's fast this pace. in 15 years for the month of june. the news comes as the european academies continue to reopen as well. and the vaccination dr. picks up steam. i s h s market composite p m. i jumped to 59.2 in june from 57 point one in may.
and just as a reminder, any reading over 50 shows, good economic health and growth should we expect continued growth in the year a zone as transitions out of this pandemic academy? well, i think so, and actually bring, i think that the projection, the, the actual reality is much better than the projections where you remember the projections are rather di and in terms of the entire euro zone, i will say a couple of just the junction positions here germany, of course, has come out far stronger. not surprisingly, many other countries. you talked about the p. m i, the p. m. i actually the purchasing manager, the index. anything over 50. yes, is viewed as good growth. it's 60 points for hitting a decade high in germany, and 61.7 in the u. k. so both germany and the u. k. of come out very in a very strong posture, a couple of factors for the u. k that i haven't mentioned were that also 70 trade deals that were in place with the e u. private breaks it lives trust the,
the british trade secretary, she have now secured 66 trade deals. so that's one of the reasons for things coming out so well in the u. k. m, for germany. it's that the vaccination program has finally yes, caught up with that. that was quite brilliant. actually in the u. k. that's one of the reasons for the euro's own bounce back. finally, hillary, i have about 30 seconds for this, but the e. c. b actually released a study on wednesday that said men suffered bigger job loss across the years due to this pandemic. and this is actually surprising because you would imagine women are generally employed in the sectors that were most effected by shut down quickly. what happened there? where you are, right? because the women usually in the personal service sector and that of course was on the total down throughout europe. and really that study did mention that it's but women have pivoted very well. they will actually quicker to find new employment than the men. well, i won't go into anything about the agility of women buses, men, but i would say that it's, that's the main factor. and also because in the retail sector, once opened,
bounce back so very rapidly that women will quickly employed. those are the main reasons and that fact, hillary ford, which board member of the british american association and president still mark business development consultants. thank you so much for your expertise there. brian, as the pandemic advanced around the globe hotel, an accommodation performance fell from all time highs to unprecedented lowes then something else happened. the pandemic sent travelers. traditionally, booking hotels in urban areas, away from the city and to rural areas, creating opportunity for homeowners to earn income by lifting their homes on sites like air b and b. r t. correspondence i haven't, your, has more on the story. several leading up to the pandemic, the global hotel and accommodation industry had achieved an oppressive down to growth and success now from 2015 through 20. 19 the us short term rental peak season occupancy. grow 2.3 percent annually then reached a 10 percent increase to
a record high of 68.6 percent in 2019 now as february 2020 then the global annual global hotel occupancy was growing every single year even at a record in 2019 as you see here, then the pandemic head and the hotel occupancy rate for 2020 hit a record low of 38 percent. now brand prior to the pandemic hotels historically had the upper hand in performance of compared to their short term rental competitors. now, in 2019, for instance, hotel occupancy was an average 10 percentage points. higher than rental occupancy in nearly 20 percentage points higher when compared to 2 plus bedroom rentals. now, the bigger homes now, one driver of the higher performance in hotel was business travel. as we know when now wild bows to hotel and short term rental sectors rely heavily on leisure travel
demand, which accounts for nearly 70 percent of the global hotel demand and a much even higher percentage for short term rental demand. the hotel sector generally generates approximately 30 percent of its demand for business travelers. now, as the economy thrived, pri, covert business travel demand, boom, specially in urban markets now take a look over here. you'll see that urban markets dev traditionally have an occupancy advantage over royal markets. now the red ones are the rural, the green ones over there are the urban and you'll see in 2019 hotels. there were up 77 percent in rural and urban just a little bit lower. now in rentals there were much higher in rural compared to urban. now 2020 look at the difference here. hotels. in rural markets, there were 210 percent occupancy versus urban. 75 percent rentals now
had a 100 and a 4 percent increase. so think of places like new york city, chicago, mexico city, shan guy, or tokyo. but then that all changed in 2020 were both hotel and rentals had a dramatic higher occupancy rates in rural areas. as rental homes became a social distance in refuge for their travels, starved and so far from what we're seeing, it looks like that trend is going to grow even more, brent and so sorry. who's the biggest player in the short term rental business? i think we can all figured out that's exactly right. no other than air b and b. now they have more than 7000000 listings in over 220 countries. and over the years they've had enormous growth. and now the genius part is that air b and be introduced, they inter dependent relationship with the existing hotel in vacation rental
industry. simply industry instead of simply disturbing and i should say, now hotel, resort camp grounds or even been breakfast. they get all his properties directly on air b and the decatur to a huge audience on their platform. and that business bottle is highly scalable as air b and b just takes a small commission free from the gas bookings. now, the boss also been a target for their lack of transparency from everything from charging chargers of fueling over tourism. and turning, formerly residential neighborhoods into ter, zones to allowing parties despite complaints and also via virus related restrictions on gathering but still air b and b stock has deeply enriched investors pockets over the past year with a return of 120 percent as since it's december i p o brent r t correspondent, sire temperature. thank you so much for following the story and that,
survive and interrogation. you've gotta be ready to stand your ground. definitely don't want to be going to throw in a jump. so one cups you're more likely to walk free. if you're rich and guilty, you are, if you're poor and you got 2 eyes and 2 ears and one mouth. so you should be seen in here and a whole lot more than you're saying if you don't take that advice, usually going to do it yourself before when i would show the wrong one, i just don't need you to fill out this thing because the attitude and engagement equals the trail. when so many find themselves will depart, we choose to look for common ground in
the i brush warns of severe consequences if it's a territorial waters are violated. again, after you worship bridges, it's black sea borders, anti virus software pioneer john mcafee, was found dead in a spanish prison. so in what authority to say was suicide. although he had tweeted that he would not take his own life. the pandemic sees that the number of super rich joining the millionaires club showed up as a report finds the firms profiting through the crisis. don't spread the wealth of ordinary stand ah.