tv Business - News Deutsche Welle November 29, 2017 4:02am-4:16am CET
the cryptocurrency bitcoin continues to say it's on course to break the ten thousand dollar mark so is it a good time to buy a few or have you missed the boat. and the o.e.c.d. says strong global growth won't be hay to stay if it was we've got wind under the wings were flying low. base is your business update i'm helena humphrey in berlin thanks for joining me bitcoin is just a whisper shy of breaking the ten thousand dollar mark the value of the premier crypto currency has skyrocketed in recent weeks as demond rises around the world but as demand is growing so too is concern there's no collateral backing these currencies and that means they can go bust big time well crypto currency is
a digital payment systems in which the currency is created on privately owned computers using a technology called lock chain value is determined purely on that demand and it's been so strong that the exchange rate for one bitcoin looks likely to set a new record. recalling has never ceased to surprise markets and now they want to cash in on the rush the world's largest derivatives market place the chicago mercantile exchange group says it will start offering bitcoin futures by the end of the year in recent days three hundred thousand users are reported to have signed up to bid going bring the total to over thirteen million but it's still quite hard to actually buy things with it a slew of trading platform such as fancy dot com and fast tech dot com offer everything from armchairs to ferrari's and watches but these are peer to peer sales platforms you won't be able to exchange your bitcoins for that flash b.m.w. in your local showroom but they can buy you some things. there are coffee bars that
will only accept bitcoin like this one in prague you can book that perfect trip to the mall deaves on expedient with call ins and speculation is rife that amazon could soon accept bitcoin for payment. with japan also recognizing bitcoins as legal tender it could be said that the crypto currency is future is looking good so if bitcoin doesn't actually crash it'll probably be only a question of time before the broader economy has to join the rush. and joining us now from new york is jacob any a softie runs the chevy digital assets fund which invests in crypto currency like but he left his job at goldman sachs to do said back in twenty thirty thank you for joining us jacob now because it is certainly a volatile currency so how wild a ride has it been for you and your fund day over the past four years. well it's been a crazy ride for all of us sometimes crazier than others this year in particular
but this year's ride has been distinctive because it's been pretty much straight up whereas a lot of us who have been around a little longer remember twenty fourteen when the price of big coin dropped over eighty percent very painful for those of us who hadn't expected a year like this so how high could you see it going and how do you know when it's actually correcting in terms of value because this is uncharted water yes well these are uncharted waters in terms of the price we've never been anywhere near ten thousand dollars before it's only a month and a half ago that it first hit five thousand dollars so that gives a sense of how quickly it's it's happening but if you look at the charts a big coin and you go back to the eight years eight or nine years of its existence there had been passed a tremendous spikes in two thousand and eleven it went from i think from two dollars to thirty dollars and then back down from thirty cents to thirty dollars and then back down below two dollars so it fell more than ninety percent and in two thousand and thirteen when a lot of us heard about the coin and i had had
a similarly crazy ride up but then also down so the ups have been followed by downs and that's likely to continue do you believe the hype do you think that it could reach over forty thousand dollars for example by the end of next year as some people say. yes i do think that i think there are reasons to think fundamentally it could be worth a tremendous amount in the distant future or even in the near future but that it's just we have to expect a very wild ride between now and then and anyone who is hoping that it will reach that kind of high has to remember it could easily drop by double triple that so it's it's very unpredictable of course a six string me sensitive to news development so i mean how much of your job is waking up in the morning and looking at news developments and getting a feel for how the currency might move in light of that. yeah that is a big part of my job is just keeping track of what's going on but a lot of it also is longer term developments the short term price movements are crazy in are very hard to predict what a lot of us are more interested in is what is the future of this is what it is
going to be widely used in ten years is it going to be replaced by another computing technology and is it just going to turn out to be just a fad that came and went so the long term is a little easier to make out in the long term i think the future of this technology is bright the ability to send money from one person to another without any organization or company in between is very powerful and i think that has a great future that is true a lot of people that were supporting out the fact that it's on regulated it could crash and investors could news the lot ok thank you very much jacob any is off he runs the chevy digital fund to aid new york my pleasure thanks a lot u.s. president pick for the federal reserve jerome powell has suggested the central bank is likely to raise rates december touring its next policy meeting paul told the senate banking committee the case for raising rates is strong the rate hike is likely to range between one point two five and one point five percent and it would
be the fifth in two yes despite being a republican paul has said that the u.s. central bank will continue his predecessor's policy of raising interest rates grab to me continue to consider. let's bring in our financial correspondent sophie in new york now sophie investors will have been listening closely to what jay powell had to say how all they reacting to his proposed normalization of interest rates. well pretty proverb to flee helen are when it comes to interest rates powell is quite close if not completely in line with janet yellen as investors love this because that makes him for addicted will he might move a little faster though with further rate hikes than yellen might have done that something but in a hearing today in front of the senate committee he declined to give a specific answer on whether the central bank would raise rates later this month
but he said that he things the case for raising interest rates at our next meeting is coming together later in the hearing he added that he expects the gravel path the fed has taken so far to continue and we understand that he's been grilled on capitol hill what issues would he have been taking those burning questions on well we just talked about his plans when it comes to interest rates he also talked about shrinking the balance sheet and of a part by the way where he agrees with janet yellen and then senator and wall street to watch stock elizabeth warren had some tough questions about regulation powell said he doesn't want to make these regulations any tougher and he does want to lift a part of the regular terror burden is especially for smaller banks so if human ski on wall street thank you the world economy is growing at a faster rate than it has. the momentum is unlikely to last that is the conclusion
of the o.e.c.d. report card released today which to globalization as the driver of growth at a time when protectionist tendencies a growing around the world. bag is one of globalization's winners they produce fans in germany china india and the us everywhere demand is climbing employees worldwide profit from it is a trend that has been confirmed in a study by the organization for economic cooperation and development or. it states that people in industrial as well as developing countries profit from globalization and the outlook is good the o.e.c.d. estimates the global economy will grow by three point seven percent in the coming year that would be point one percent more than in twenty seventeen according to the o.e.c.d. the us as the world's largest economy will grow considerably in twenty eighteen but
the euro zone's growth will be slowing down at only two point one percent growth that's mostly due to bragg's it and the unsolved debt crisis in southern europe for the first time a decade the world is growing in sync. this is not of the large economies are experiencing a recession despite the positive outlook there are some risks an a-list say investments are too low around the world to maintain long term growth and the problem is that indebtedness of households and corporations has reached record levels in many countries particularly worrying the high levels and continued growth of corporate levels in china given the importance of china to the world economy also concern the high levels of household debt in a number of advanced economies mainly associated with mortgage lending economists
are also calling for wages to be raised that way ordinary people can also play a bigger role in driving economic growth. germany still doesn't have a new government but apparently that isn't hurting business german companies are still posting profits in the latest figures from germany's society for consumer research g f k show that consumer confidence is rising. it will soon be christmas the most important time of the year for the retail sector in germany the industry has been doing well low unemployment and a robust job market have been fueling consumption since two thousand and twelve germany's most important consumer confidence index has almost always been rising steadily reaching ten point seven points from six points half a decade ago germany isn't alone things are looking up for the retail sector in the
euro zone second largest economy in france consumer confidence levels for november beat market expectations making it the first rise in recent times the survey shows that the french are more optimistic about the future giving the retail sector something to celebrate about this holiday season. now that you're up to date with the latest from the wild all business thanks for watching and see you soon.
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