Financial news: Around the world in 30 minutes

[Music] I'm Lindsey Francis is boom-bust broadcasting around the world from Washington DC tonight the International Monetary Fund releases its growth projections for 2017 India sinks China is set to rise we take a closer look around the world also Denmark is set to relax its laws regarding the sharing economy or at least create a few the government is warming to the idea of collecting big taxes on this new form of consumerism instead of running it out of town for lack of regulatory control also my guess form a u.s. training commissioner Bart Chilton has the lowdown on taxes can Washington get it done this year he is set to fill a said standby Boombah starts right now [Music] caring economy giants like Airbnb and uber could see the way paved for them right into the heart of Northern Europe the Danish government has decided to stop fighting this change in consumerism and instead embrace it by adjusting its labour and tax laws according to the business ministry about one-fifth of Danes have either offered or consumed the kinds of services provided by uber and airbnb and that is set to increase business Minister Brian Mickelson says if you want people to understand the prospects in terms of new jobs new technology then it also has to contribute to the financing of the welfare society we live in a lack of tax implications for private citizens renting out their homes through the Airbnb online service is of particular concern to Denmark also there are no business operation licences or requirements to be met as a landlord new legislations there includes allowing homeowners to rent their properties for at least 90 days a year along with an optional tax program sharing services in housing and transportation was worth more than 100 million dollars in 2015 according to the government [Music] a December interest rate hike may be up for debate by some people and may be set in stone for others or even just downright unlikely but what certainly is up in here right now is the Board of Governors vege of talent it's shallow and the recruiting must begin in earnest some say it's got a strong start please welcome Danielle DiMartino booth president of money strong and author a fed-up an insider's take on why the Federal Reserve is bad for America I got to start off with parental quarrels what's your take on him entering into this fray well look quarrels his name has been vetted and riveted at this point it was kind of ridiculous in my mind at least that the Senate was holding up his full-blown confirmation and I don't think Lindsay that it was any coincidence at all that the Senate pushed him through on the same exact day that the White House finally released its formal shortlist of candidates to replace or not replace Yellen at the end of her term come February and it was just as if a miracle a cloud had parted in the sky and boom Quarles was in so I think that that was the Senate holding though the White House's feet to the fire on that one okay well right now there's let's talk about two other potential candidates for the Fed Kevin wash Jerome Powell between the two if you had to choose which one seems to be the better choice to replace Jenny Yellen well they're both extremely qualified candidates but I will revert back to my hero and that's hard for me to separate my hero in in the 100-plus years of Federal Reserve history and that is William McChesney Martin he served for the longest time of any chairman including Alan Greenspan he served as a private in the United States Army he acted as a liaison between the Soviet Union and the United States he started out on Wall Street at a brokerage firm at the age of 31 he became president of the New York Stock Exchange he studied economics at Columbia University I'm not trying to bring him back from the grave Lindsay don't get me wrong but what I'm trying to say is that he was very well-rounded he was extremely experienced and he was a political and I think of the two potential candidates I think that Jerome Powell is is much more qualified and that back career gives him a lot more experience than that of kevin wash who really is purely kind of a finance guy that's that certainly not the case with Powell well we don't think you like that array of a background a deep resume to really bring I want to say wisdom to the Fed what about Stanley Fisher's chair last stake coming up October 13th again we've got more than a couple of openings here how would you fill his chair well I think that there are many other qualified candidates some of whom happened to be on the shortlist I do like the idea of John Taylor from Stanford I certainly don't advocate for central banking being run by one individual rule even if it's got his name on it the Taylor rule but I do advocate for what his rule exemplifies and that is an added measure of discipline among policy makers at the Fed I think that we could use somebody like him if there's gonna be an insistence on having many more academics come into the Fed there are several other bankers I think that are extremely qualified as well but again their names did not land on on the short list right well short list resistance though to future nominees we're talking about Donald Trump putting together plans for new these new positions do you think that yellen's replacement takes priority in this situation some some people also say maybe maybe he won't Gary Cohn is saying no she might stay yeah it's right now it is no longer kind of a DEFCON 1 numbers game anymore it was before the Senate confirmed Quarles but now that they have even after Stanley Fisher's departure on October the 13th there's still enough wiggle room because now you've still got four people on the committee up until Janet Yellen leaves so right now the main focal point what markets are focused on more than anything right now is who is going to fill Janet Yellen seat and or will she accept the chance to keep the position so I think that every other vacancy on the Federal Reserve Board at this point is kind of who until we hear that final nominee to go up in front of the Senate right it's the hinge in the door and when do you think this is going to happen let's talk timelines right up until the last minute how long are they going to drag this out for us if you look back to when Bernanke was first appointed if you look back to when Yellen was first appointed the two predecessors he really had the news in hand before Halloween so think about it that way I would be astonished if this dragged on into November just because Congress is going to go for recess there's the holidays coming up you're gonna have to give the Senate enough time to vet the potential candidate that brings us back to Jerome Powell simply because he's already been vetted by the Senate he's already a sitting member of the Federal Reserve Board and if you're gonna drag your feet and that's why I think Vegas betting odds had gone through the roof on Powell over the last few hours and fallen on worse if if this administration is not going to get things done quickly and I think we we've seen the propensity to not get things done quickly then Powell certainly going to be an easier nominee to get through the Senate because he's a known own right a trick or treat for us here in Washington then and for those on Wall Street as well thank you so much for your input Danielle DiMartino booth president of money strong and author of fed up an insider's take on why the Federal Reserve is bad for America thank you India can blame it's D monetization in the mid-year introduction of the countrywide goods and services tax for a lower growth projection from the International Monetary Fund the IMF says it stands at 6.7 percent growth in 2017 0.5% less than its previous two forecasts in April and in July at the center of this economic uncertainty and slower growth is the goods and services tax which promised to help break down India's complex duty system in an effort to unify the domestic market the government expects that to help propel growth over 8% in the near future the latest report is released ahead of the annual meetings of the IMF and the World Bank it puts China slightly ahead of India in terms of growth rate for the next year in 2017 and it's looking even better elsewhere though the International Monetary Fund has put Canada at the top of g7 nations when it comes to economic growth in fact it's issued some positive news for many countries but the organization fears anti-globalization movements present a hurdle for some RTS Alex Mihailovich is in Toronto with more on this Alex let's start in Canada up where you are what's the latest from IMF on Canada's economic state I know what you're thinking Lizzie this is a little bit like the movie Groundhog Day because we've heard this before that Canada stopping the g7 that would be the OECD from Paris just a little while back they mentioned that Canada's at the top and now we have the IMF the washington-based saying pretty much the exact same thing now half a basis point above what they originally predicted now they put growth at 3% for Canada for 2017 which is making a lot of people happy obviously in Canada especially so these are nice numbers it's nice to see and for economy right now that has been doing really really well and with of course having our neighbors to the south which is a machine when you look at America Canada stands in a really good place when we think in terms of let's say the OECD or the IMF and these kudos that they're giving us right okay I'll let you continue to brag here one of the factors though helping Canada's growth in this and this stellar economic performance well you know there's a couple of major factors here and one of the factors is that the drag from the oil prices that originally that we saw is pretty much dissipating I'll Canada's not as reliant on oil as it once was and when I say once I manage I'm talking in the very recent history just a year or two ago now Canada's kind of backed off without we understand the whale oil prices are moving so that's been a positive move in that direction the drag is not what it used to once be second of all it's our central bank they've done a phenomenal job with interest rates etc and keeping this country afloat we saw how we can at a whether 2008 over the biggest economic crisis while you know you guys were bumped a little bit harder than we were we we did really well there third of all I mean it's it's basically the fact that the government is pumping a lot of money into the economy so that could be a good thing or it could be a really bad thing a lot of people are looking at as a bad thing especially fiscal conservatives they don't want to see this movement forward where it's actually the government money taxpayer money driving the economy so that is a big part of this factor Justin Trudeau's government has been pushing forward with a lot of investment but that investment means debt somewhere down the road of course it does Canada is not the only one on this list though how are the other countries performing well we have a little graph here for you to sell a list I should say of countries and how they're doing as well as the world so you know the IMF bumped up a few let's say entities they're moving forward the world went up from 3.5 to 3.6 percent growth advanced markets jump from tube to 2.2% emerging markets this is an interesting one a state at 4.6 percent a lot of that's due to China which you mentioned already so it was bumped up from 6.7 to 6.8% so China is one of the fastest growing when it comes to expansion of the economy and as you mentioned also slightly ahead of India which is at 6.7 but you're trying to expect it to slow down to India in the coming future and yes plus in 2018 might surpass China and of course we have the United States they're on the list to 2.12 to 2.2 now with the united states they're the growth projections haven't been to too high because of those things that Tom talked about those major tax cuts they're not really coming from fruition and IMF is thinking that just might not happen somewhere somewhere down the road at least in the near future the Brits they've been print hit pretty hard and for a couple of reasons their economy slowing down basically by 0.3 percent for they've been downgraded to 1.7 percent of a growth rate and this is due to low consumption levels in the country but also many people are saying bright breaks it and that's where we get into this whole globalization thing countries that are ignoring the factors of globalization like like the United States or like Britain might actually if they're not playing the game they might actually be hurt in the long run and of course Russia as well a little bump up in getting growth for Russia it seems that a lot of countries are doing well or better than projected initially but that anti-globalization thing it might hurt a few in the future that's right thank you very much that Alex Mihailovich coming at us from Toronto thank you time now for a quick break but stick around because when we return uber hits yet another snag in the UK this time it's about paying those taxes my gas former US trading commissioner Bart Chilton fills us in on the tax situation up on Capitol Hill as we go to break here the numbers at the closing bell [Music] I think the average viewer just after watching a couple of segments understands that we're telling stories that our critics can't tell and you know why because their advertisers won't let them in order to create change you have to be honest you have to tell the truth Artie is able to do that every story is built on going after the backstory to what's really happening out there to the American public what's happening when a corporation makes a pharmaceutical that kills people when a company in the environmental business ends up polluting a river that causes cancer and other illnesses they put all the health risk all the dangers out to the American public those are stories that we tell every week and you know what they're working [Music] [Music] [Music] dramas that can't be ignored stories others refused to notice versus changing the world right now a full picture of today's news live on demand from around the globe Rockland TV [Music] uber says it is slamming the brakes on any notions that it should contribute to the UK's national insurance system the insurance pays for the national health systems pensions and other benefits which its drivers could collect on if they were directly employed currently the those working in the UK are classified as self-employed there is no employment insurance to be had there are no sick days and the other benefits befitting full employment in that country uber says Insurance Contributions would cost tens of millions of pounds and it just won't do it uber is in several heated battles with London's transport of regulator as it moves to cut Hoover's phone app licence and to prevent the company operating in London due to safety regulation violations the new CEO of uber met with London Transport officials to apologise for past mistakes no word though on whether any headway was actually made the company is filing Appeals in both these cases 40,000 drivers operate in London carrying 3.5 million customers and pharmacy benefits manager Express Scripts will buy privately held medical benefits manager Evek or health care for three point six billion dollars every Corps manages medical benefits for around 100 million people Express Scripts runs prescription drug plans and processes mail order prescriptions and billing for prescriptions filled at retail pharmacies now the acquisition bolsters Express Scripts medical benefit management services the purchase is expected to close in the fourth quarter after receiving regulatory approval it's a rapidly changing field of business out there this news comes on the heels of an announcement by amazon.com that it is entering the world of prescription drug sales and delivery and the Trump administration has offered up a seven page blueprint for tax reform that they say will become law later this year what is it and can tax reform actually become a reality here to discuss this is former u.s. training commissioner Bart Chilton Bart thank you so much for being here for this now administration officials are clear in saying that tax reform will be done this year secretary as the munition recently has said we are 100% committed to getting it done shir it is critical to our economy we have a unique opportunity to do this and then of course director of the National Economic Council Gary Cohen said I do think it can pass both of the tax committees in both chambers in 2017 all right the administration says that there's a difference from the healthcare effort tax reform they've socialized their proposal among key members of the House the Senate and they have buy-in from what they call the big six are those the reasons they're so confident that it'll become law at the end of the year is there something else where are they getting this this magic from well it is a different approach I mean you know health care just seemed very haphazard and right you know on-again off-again so I've never heard these terms I mean I worked in the House and Senate for 15 years so I've never heard the term socialized a proposal GOP and I had never heard this phrase lots of acronyms he'd kill bodies with acronyms in Washington but I'd never heard that the phrase the big six I mean it sounds like a good band like the j7 the big who the big six is by the way and this is Gary Cohen Inspector minuchin talking about the big six but it includes them they're two of the big boys it's those two it's the Speaker of the House Senate majority leader and then the chairs of the tax-writing committees that's Kevin Brady at the House Ways and Means Committee and Orrin Hatch of Utah the Finance Committee so those were the ones that had quote-unquote socializes proposal but at this point I mean I think it's really dicey to get it done by the end of the year we'll have to see but it would be I don't know what they're smoking down there or putting in the pumping in the myth they're pumping oxygen Treasury and not only that we've got the holidays interrupting all of that let's take half a sec back though and talk about the administration what it's proposed the brass tacks but other than tank tax reform will be really great Trump has said he wants to simplify the code limit the current number of brackets it was like seven down to three or four if you're if you're really rich you've got problems there and he also said he wants to reduce corporate tax rates make the u.s. more competitive bring that money back home what did the administration propose in the blueprints well they've done pretty much what he laid out as a candidate and then earlier this year remember in May they released one page so they did propose a mine now it's now seven oh so they added six so they and by the way previous administrations Republicans the Democrats when they put a proposal forward you know they pay attention to the details I mean the details matter I'm not sure that the details matter to this administration which is fine they just want to get something passed and they really need it after health care tax writers are gonna take care of that they're gonna they're gonna do they're gonna be diligent about the details so you're right they've gone from seven down to three brackets the brackets will be twelve that's up for the lowest tip the lowest earners up from ten percent 12 25 and 35 and the 35 for the those that earn the most in our nation is going down from thirty nine point six down to 35 now you might say wait a minute they're reducing on the wealthiest and they're raising on the lower Democrats will say but it's also not fair because they are doubling the proposal is to double the standard deduction so for individuals they double it from roughly 6,000 to 12,000 for married couples roughly from 12,000 to 24,000 that you're not taxed on any of that so it could be a big boon plus they want to get rid of these deductions the miry deductions those loopholes around holes say 1.6 or 1.8 trillion dollars over ten years so and then on the corporate side like you said you want to reduce those they're at 35 now during the campaign this is only the this is the only divergent thing from what he called for and what they actually proposed they wanted to go from 35 down to 15 he's going to 20 is where they're which is still on the low side in addition it's an ambitious move but no one believed he was really gonna go to 15 to go to campaign so quite large what he called for is what they put forward and so good for them right right key challenge paying for the tax cuts it's not neutral there have been reports revenues from opening up Arctic National Wildlife Refuge to oil drilling not a lot of fans of that on both sides of the aisle could be used to pay for five trillion dollars in these tax cuts explain what they need to do on the budget side of this reform debate because people say they want to budget neutral okay so the bottom line is you cannot spend money you can't cost the government money after 10 years without going to reaching a 60-vote threshold so they and right now the proposals gonna cost five point eight trillion dollars and they've only allowed that is Congress and the budget they're working on right now hadn't passed Congress yet they've only allowed protects reform to to spend 1.8 trillion so they got four point three or so trillion dollars they need to come up with which is why they're looking at opening up Anwar that's the Arctic National Wildlife Refuge as you said to drilling that's federal lands that get money from federal drilling and a bunch of other what they call pay-fors the bottom line is there are many people in Washington because we've got a 440 trillion dollar Adept billion dollar deficit every year 440 billion dollar deficit that don't want to spend one more nickel track tax reform they say has to be budget neutral so we'll see where they go from here well not only that but when you look at the modern GOP a lot of people will vote GOP because they're fiscally conservative they don't want the they're not the drill baby drill errs they don't want the the Arctic refuge drilled they want to know where this is gonna come from other than something like that I think it's it's pretty sloppy rhetoric comes up that's just my opinion how about the politics so tax reform is for talking about there are majorities of the president's party in the House and Senate that didn't when health care couldn't get it through one of the votes look like for passing reform 52 Republicans so the problem properly passed something in the house something but in the Senate got 52 Republicans and the president seems to be even though I'm sure that he can count very well he seems to be itself inflicting wounds on his policy proposals every single day it was Bob quart corker just recently who said can't spend another penny other than it's gotta be budget neutral and you've still got McCain senator flake Susan Collins Murkowski there's five that may vote against this thing again you can't afford to lose more than two so I think it as our it's a long rough road hoe let's look at the markets though there have been they've been buoyed by the mere prospects of tax reform we see that when we get these one-page that's 7 page and sometimes I think it's 9 but I guess it's just 7 how do you see the markets reacting to all of this if it pushes forward I think they've been buoyed as we've talked about many times just by the prospect of Trump being president and then by all these great records but I almost think at this point Lindsey that it's baked in I'm not sure how much more of the markets can take off I personally I've talked about this maybe six weeks ago I think there's a little bit of a speculative bubble there in equities and you know a little bit of a bubbles okay but I don't see that it's going to do a whole lot more for the economy if they did get it done this year maybe but again I'm a little concerned about that all right but let's one last question based on your experience working on the hill for years I want you to be as optimistic as you possibly can for us what's the soonest you think tax reform could be completed that would be a trick or treat for all of us that would be you know candy in the stocking give us a good end of the year okay it passes it passes the House Ways and Means Committee sometime in the next couple of weeks and then beginning of November it passes the House floor Senate passes in committee beginning in November and then done the end of November in the Senate then they've got a conference it both of them have to come together and then they do that and they both vote on it on December 23rd that's the optimistic view but by the same token if I'm saying that I'm really probably you know yes the thing is I think we need to do one of those Super Bowl bracket things where we start to you know insert the numbers and take bets on this but we're nervous so this is my idea thank you so much for coming in on this former US Attorney Commissioner Bart Chilton [Music] October is the time of year in the United States when we get a little pumpkin crazy pumpkin flavored lattes pie jack-o'-lanterns the list goes on and on for some here it's also the time to see you can grow the largest gourd this week Half Moon Bay California was the place to be as people across the u.s. brought in some of the largest pumpkins you will ever see they competed against one another for weight these pumpkins were so large cranes and forklifts were needed just to weigh them it's not just bragging rights though that gets the growers to till their fields the winner walks away with $16,000 this year man from Washington State one with a pumpkin weighing in at over one ton he got the money the bragging rights and even broke a world record thanks for watching everybody be sure to catch boom-bust on Direct TV in the United States you can find us on the RT channel three two one and if you miss us on DirecTV catch boom-bust on youtube youtube.com slash boom-bust our teeth thanks for watching see you next time [Music]