time now for a quick break but stick around because when we return we sit down with or actually at ski for an in-depth look into global markets and before we go i'll have a word about vinyl and as we go to break the dow up nasdaq down here at the numbers at the closing bell. an economy that's been created by financialization of everything outsourcing manufacturing to countries like china totally ignore that just made that word up to ignore something. of your local infrastructure bill now trump saying we want to do infrastructure we've got to go borrow a trillion or two trillion dollars from whom our biggest creditor that would be china china's owning all the cars in the twenty second century in america can't even get from point a to point the.
united states is going. deep into mystic prizes challenge to american supremest c g north from the outside world from russia knows from china from the inside those sides are missing what you see now on the ground russia and this cyber bullies ease you know russians opportunity is psychos are going to understand the bill of times to find somebody outside the united states will is responsible for do it while the real problem isn't so. what politicians do. put themselves on the line to get accepted or rejected. so when you want to be president and. want to. it's. actually going to be for
us it's like the before three in the morning can people get. interested always in the waters about how this. question. was similar for the spurs to the skill because most of the snowboarder the four of them and so. beautiful yes good new books and go here bush will see you put him over them close them as material to move to my idea of the oh my my my friends are the thought of you know focused them. so from him you know will some day and some as a woman in the sport of the video dog give you a c.b.s. so you'll still. to go susan to prevail i'm with someone in the field some of the shows and who goes to
the police but yes the people still think of them so she's two three full well what you could give that would usually beautiful sunday shows we see when you do see chelsea suggest it was toast to me of some pathetic attempt in the playful of the media as a symbol to be so. jason morgan chase has announced that it will demolish its fifty seven storey headquarters on park avenue in new york city it's actually just a few blocks from here the bank will build a new seventy story world headquarters on the same site for its fifty thousand employees jamie diamond the bank's chairman and chief executive said in
a statement quote we are recommitting ourselves to new york city while also ensuring that we operate in a highly efficient and world class environment for the twenty first century meanwhile barclays the british bank headquartered in cannery wharf in london is cutting back and streamlining operations after a two thousand and seventeen significant earnings lost just reported barclays lost two hundred sixty seven million dollars last year in part due to the us tax law hit the losses despite a two percent increase in deposit barclay has been shedding its interest in africa and has recently taken other streamlining efforts in internal restructuring efforts according to c.e.o. jeff staley who said in a statement two thousand and eighteen will be the first year in five years that this bank begins with a clean operating model. and sticking in the u.k.
a spokesperson for british prime minister to resign may has said that britain will be able to sign trade deals with other european union countries during the brics a transition period but leaders continue to contend and say that such trade deals with e.u. members must be agreed to by all of the twenty eight member nations making any such trade deals with the u.k. more difficult to achieve. and we talk about global markets right now we're joined again by boris boris used to work with the international securities exchange and the dortch a bursa group and now is a board member at the nodal exchange morris good to be with you here in new york thanks for coming in great to be here bart ok for source of all let's talk about the market meltdown that we saw it seems that were passed but what do you make of it and is there still somewhat of a correction coming well i think
a lot of market participants have been expecting a correction for some time it's been years of a low volatility environment there's been a lot of expectations for this correction to finally occur and there's been some economic data that's finally made some folks look at reallocating their portfolios and i think that's what we've seen in the last couple of weeks although it has calmed down a little bit although we saw white the move yesterday on higher interest rates did let's look at global markets a little bit more. the you know the nikkei in japan the hang seng in hong kong shanghai index the dax euro next stock what are those markets doing while we're primarily you know in the u.s. people are just focused on the u.s. what are global markets doing yes sure so anyone that's been looking at the global markets the stock indices in asia and both in europe you can see that those markets tend to follow the u.s. quite closely few look at the charts there's been almost no difference on those
couple of days around february sixth there was a huge downturn following the u.s. volatility spike and since then there's been a calming down but you even see that today where the u.s. market opened significantly higher while the asian markets closed a little bit lower and the european markets were a little bit lower to start the day as well so you see a lot of following the u.s. it makes some sense when you think about how markets have more over the last decade or so where they're pretty much. operating twenty four seven three sixty five and so even when you know n.y.s.e. and nasdaq closed there's not they're not really close because you have futures rated on those stocks during the off hours and so you you always have sort of a lead in to what the stocks may be so it's really twenty four seven three sixty five trading and a lot of this trading of course is done electronically we're at nasdaq yesterday
and you know as you know it's a totally electronic venue n.y.s.e. not all that tronic are they still value having some floor traders there in addition to the optics for television but let's talk a little bit about electronic trading and you come from exchanges that have lots of electronic to treat explosive electronic trading at i.s.c. right yes so what do you make of it i mean it's indispensable in the today's age but good bad are there problems concerns i think for the most part i would say good and high frequency traders electronic participants have been a part of our markets for well over a decade and it's been like that as well around europe and asia i think they provide a very useful utility for the market and yes during extreme times of volatility you can observe that the markets become wider they become thinner you see a lot of stories about high frequency traders and how much more money they make
especially after a long period of time where you've seen high frequency trading quote unquote suffer with low volatility environment lower spreads not as much profitability in that space but for the most part the markets everybody would say have performed extremely well and the volatility has been pretty rough it's cost some wild swings intraday but at the same time we've had flash crashes in the past five years that have been much worse and the electronic trading participants that are there today on all the you. venues on all the international the venues they perform a very valuable liquidity providing service and i think the experience from both we tell institutional investors has been quite positive yet you're it's a double edged sword to some extent and it's a look at scary to people and i raised as you know alarms when i was back at my old agency a about them i called them cheaters not because they were cheaters just because
they were so fast in and out of markets and sometimes they weren't regulated and ice because they needed rules but i one hundred percent agree with you they need to be in markets they do provide liquidity if somebody is out there wants to make a trade they'll take the other side of it they may hold it for a second or less at times we did a study years ago it showed boris that there were at times in markets these are primarily opens and closes around four hundred to five hundred trades perception i mean it's hard for average folks to fathom that but when they are there they as a market maker they have an obligation to be on the other side of trades explain what a market maker is to some of the we have very sophisticated audience watching boom bust but for those that may not know what is a market maker what are the obligations on a market maker like n h f t sure and many if h of t's are not the same as other market makers many h f t's they come into the markets they provide liquidity very often there are one side of the market not both
sides however some of the biggest names in market making and those that participate at the new york exchanges the nasdaq markets and the c.d.o. you bats markets they do have obligations they do show up on both sides of the market it's not the same as it used to be when all trading of this as a condition of them trading their require that they provide the other side of the trade yet that's the obligation you're speaking about that's right so designated market makers d.m.'s. at the new york they do have these obligations they have also of course we wards for meeting those obligations in terms of the fee structures and the business behind it in transaction fees so by being in the market they say we know this is the exchanges especially that we know this is a riskier proposition because we're asking you to be there to be the other side of this trade not to bid or an offer in exchange for that we'll give you a lower transaction fee because we know you're not making much money or a high of
a rebate or a higher rebate right get rebate for all humans that it that's right and there are certain those are on exchange market maker some of the same high frequency traders are also referred to as aggregators or internalise or wholesalers they also make markets in their own dark pools in other dark pools with a facilitate both retail and institutional trading and they guarantee certain levels of execution quality to both retail and also institutional firms providing price improvement and ensuring that orders get executed at the best possible market or you know stuff so well such a pleasure to speak with you on it let me ask you this so. one of the issues that we talked you mentioned flash crashes and a lot of us remember may sixth two thousand and ten we also had an opening flash crash at the new york stock exchange on august twenty fourth two thousand and fifteen and i remember the way it was a real big deal and when that flash crash took took place twenty percent of the
exchange traded funds the e.t.f. had experienced high volatility well just a couple of weeks ago we excite another volatile nature we lost the. dow went down as much as sixteen hundred points intraday we saw all that volatility and we saw problems again in not just us but exchange traded products and these exotic exchange traded products like leveraged exchange traded funds and inverse exchange traded funds i'm wondering what your view is on the these pretty complex products that are being offered to investors sure so like you point out the big contrast with the recent volatility is that it's specifically affected a couple of days as you point out exchange created notes and funds in these cases that bet against volatility so these two funds x.i.v. and as vx y. are both strategies that essentially short volatility and they have performed they
have performed extraordinarily well in a period of consistently low volatility over the past five years but what happened on that day in the increased volatility environment as there was an apple a fight effect from the performance of those funds and in particular the way these products their head by their sponsoring firm specifically in the case of x. i.v. and credit suisse the way that fund works is it is hedged on a daily basis by credit suisse so when the market closed much lower and the bank had to hedge they centrally bought additional volatility. in the form of volatility vix futures and ultimately draining the assets in that fund causing that front to open around one hundred dollars a share close something like seventy dollars and end up at five dollars after the close now i think that the professionals in the market and many sophisticated
investors who had allocations to these funds knew that this was a possibility i think as always with these high volatility events no one quite imagines the actual moves that occur a lot of people have correctly pointed out that while the percentage move in the markets was significant we had more significant moves where the vix had not moved as dramatically as a did on that day and in fact that finra and others are investigating exactly what happened specifically around the close and what happened with vix futures generally speaking though i am not against the leverage products or inverse products i think each product has a specific exposure that investors are looking for if these products don't exist that does not mean that a lot of people weren't simply short vix futures selling vx x. calls or short vx x. or the other volatility products unfortunately the world's a lot of retail investors who really didn't understand what these products are like
this was a very difficult way to learn that lesson and i think that going forward as some brokers have in fact shut off access to these funds we will see a little bit more scrutiny with new funds that come into the market worthily up ski thank you so much for being with me appreciate it thanks for sharing your expertise thanks for having me bart. vinyl is back in twenty eighteen and on my vinyl to get list is back in black the ac d.c. classic the industry reached a milestone last year with the first vinyl industry conference of this century in detroit that featured jack white formerly of the white stripes nielsen music reports that vinyl sales in the u.s. rose for the twelfth straight year in two thousand and seventeen by nine percent to over fourteen million sales while nine percent is down double digit increases in
previous years strong growth in other major markets including canada and the u.s. suggest the trend may be sustainable and the top selling album of the year quick shout it out that honor goes to sergeant pepper's lonely hearts club band by the beatles and in that regard we hope you enjoyed the show that's it for today thanks for watching we'll be back tomorrow one more time from new york the kerry sure to catch boom bust that you to you tube dot com boom bust r.t. see you next time. tell us done is getting it international recognition with the help of israel at least in the world of zoos and then builds to this it to do it looking like you know. this isn't like complicity is going to sunday i mean if you do. that with. the only palestinians who gets the most help from it's to some county i
don't think this is of those who when they were on the mission to know when to do this. and that there's a lot that's not just you have to this lady of the most of that you had i don't know if you competed in the doesn't seem to do one. some presume. we were his drawer full of gaza lest. we dismantle the settlements which we got good neighbors we got to tell organization. they look at still i will religious and i will keep them safe and dug tunnels so instead of having good neighbors we have a mustang which is a failed state. that's just.
certain i want to do things that show me very easily with really be very clear. away your. management. and they are they they when they have them they have. a scheme you need to feel that it's really. something yeah i'm them what do you how to become a something like nobody loves local just. to make a living that would diminish the consummate negative passion. that.
russia urges the u.n. security council to help resolve the conflict in the eastern border district of syria and accuses of foreign powers creating havoc and. telling the country apart. u.s. military is waiting for a health crisis on the portuguese island in the atlantic residents say pollution from an air base and cancer. that i'm thirty four years old and i lived my whole life in trying to do what is right by the entrance of the american base both of my parents died of cancer when i was thirty three i was diagnosed with breast cancer. and merkel storms out of the german parliament as a member of the integration that the party launches an attack on the chance.
our broadcast live from our studios in moscow this is our international incheon time and certainly glad to have you with us. the russian ambassador to the un has called for urgent action to resolve the humanitarian crisis in the rebel held a region of eastern good in syria addressing the security council he criticized the way the media and foreign powers have been influencing the situation. there is a massive saw occurrences in the mainstream media which is spread in the same room as day after day it doesn't help to understand the situation. they put forward the idea that there are only hospitals in the east in which the tsunami of fighting against now what we just heard was the russian ambassador to the united nations
responding to what he characterized as a smear campaign now the meeting was called in response to the situation in eastern guta that is a suburb of damascus located to the east of damascus and at this point it's an enclave of rebels and terrorist forces now there's been increasing hostilities in eastern guta as the syrian government is fighting to retake the city from tear. russia was responding to some of the very heated words and accusations we heard from other countries in the chamber in the lead up to his remarks systematic targeting of civilians and sheer disregard for human life attacks against health care and hospitals constitute war crimes the regime wants to keep bombing and gassing these four hundred thousand people and the assad regime is counting on russia to make sure the security council is unable to stop their suffering bell in his remarks to the fifteen member body the body was very clear that situations in eastern guta are rather dire however the situation is much more complex than it's
being made out to be that essentially civilians are being used as human shields by the terrorists and isn't this what the international community should be doing should they not be fighting against these terrorist groups to point out the some of the more extreme allegations being made against russia and syria are being made by the forces that just leveled the city of raka the u.s. led coalition leveled syria's rucka this is in the recent post should be forgotten so fast when it happened there was no for some reason nobody demanded international law to observe this. was still a thirty year we were forced to leave our homes because of ice and when we return we found everything we could use to rubble and look at all the devastation what rock is a ghost city by the minute when live in the midst of destruction we feel completely abandoned everything around has been destroyed.
one life years or book this is in the rubble have to be to remove the debris with all money there's no running water so we have two boats in barrels and the us coalition caused the destruction of records and has a responsibility to rebuild the city we need to how. with restoring the water supply in clearing the rubble as the meeting went on and different speakers took the floor and addressed the u.n. security council was very clear that everyone agreed that the life of civilians in eastern guta was was of top concern however there were clear differences about who was to blame and that certain countries felt as if these this situation was just squarely on the shoulders of syria and russia there was disagreement on on a centrally what what the russian ambassador characterized as a smear campaign against russia the u.n. earlier called for an end to the fighting in eastern good calling the rebel enclave
hell on earth earlier we spoke to a representative of doctors without borders about the situation there. where we have six. hope of nations in the last few days or a. number of. people has increased dramatically over the last. few days before the. people. who are. the biggest problem for the. still function. supplies as well as the party just go and medical supplies so some sort of agreement. these medicines and especially the surgical supplies and. into the.
surgeons. do that by saving were. who has reported extensively from syria's war zones takes a look at who is in control of the strategic domestic suburb. east ghouta is not a nice place to live in surrounded as it is under constant war zone within and without. islam the army of islam holds most of east ghouta as the name may imply these guys crusading for democracy and when they aren't busy killing each other they share power with nuestra while kiat in syria and the number of smaller groups
. these are ruthless people they cage civilians literally put woman and the elderly in metal cages and hoisted them onto roofs where they left them a literal human shield made of civilians to protect themselves their fighters from strikes these same people jihad ists who say they're fighting to free the country from outside then turn their guns on protesters when they day complain about the jihad ists themselves. these infamous incident being one of them
a crowd of demonstrators fired upon by rebel fighters john kerry himself once called the rebels holding east ghouta a subgroup of isis and al qaeda remember what the u.s. . led coalition deeds to isis in mosul. well it's kind of as if you know. they leveled and then ties city thousands of civilians dead yet they say there's no choice the terrorists were sponsible by using human shields a sad fact of war two billion casualties are a fact of life in this sort of situation do you agree that some of the the high level of i think ridiculous standard that we had previously is now created this
behavior by isis that they now realize if they take human shields they're going to avoid being struck and that actually this is adding to the problem congresswoman i do believe they understand our sensitivity to civilian casualties and they are exploiting that and i do agree that as we move into these urban environments it is in become more and more difficult to apply extraordinarily high standards for the things that we're doing although we will try for some reason this time around they seem to be avoiding any mention of who it is that controls east ghouta all but the same job that's when these limits blindly shell damascus every day and slaughter more and more civilians well that's war when the syrian army responds suddenly it's an atrocity remarkable isn't it how the rules change entirely depending on who's calling the shots security analyst charles shubert believes a truce could play into the hands of rebels in eastern gooda. a ceasefire at this
stage may well actually in the short term produce some benefit to the civilian population but it would probably longer problem in the long term because then it would allow the rebels to recreate it would allow. formations to reorganize ammunition to restock and so on and so even though it sounds brutal to some no doubt but from a military perspective this is better to be gotten over with quickly and to end the suffering as quickly and painlessly as possible and of course this kind of situation is never going to be painless for civilian population if we go back to the days of the british an american led as it was called bombardment of mosul plus of course the u.s. led bombardment of rock in syria there were no calls of course for a ceasefire to take place there were no cause amongst the western media like most western politicians and very few laid out.