tv Boom Bust RT May 16, 2019 8:30pm-9:01pm EDT
i'm max kaiser one more of my guide to financial survival this is. a device used by professional scallywags to earn money. that's right these hedge funds are simply not accountable and we're just getting more and more to the. totally destabilize that local economy you need to protect yourself and get in for .
this is a boom bust broadcasting around the world and covering the world of business and finance team and the impact upon us all and daniel britto in washington we're glad you're on board straight ahead on today's program the trade war has taken another dramatic turn and this time it's taking a toll on tech party correspondents alex mahela and sarah long to bring us the latest on the banning of wall way in the united states and china's plans to retaliate and on that news tech stocks and taken tumble in response particularly smartphone manufacturers to deal with trading one with a hand to sift through the latest stock moves in several sectors and then you're back on the ground from consensus 2019 bringing you the latest on the future of watching a new platform for crypto trading all of that directly ahead but 1st we have some headlines let's go. a 1000000000 euros in fines for major names and finance leads our global report today as the european union's competition commission
sanctions by banks for alleged rigging of foreign exchange markets on thursday e.u. competition commissioner margaret about. announce fines against barclays citigroup j.p. morgan and u.s.g. japan's largest bank and while bank of scotland totaling nearly $1100000000.00 euros or $1200000000.00 the commission specifically accused the banks of manipulating markets for 11 different currencies over the past 6 years by sharing insider information and private chat rooms u.b.s. bank of switzerland was spared a fine of 285000000 dollars to 285000000 euros for informing investigators about what they knew of the insider collusion. foresman action would quote send a clear message that the commission will not tolerate collusive behavior in any sector of the financial markets. and checking in on the u.s. china trade fight the spokesperson for china's commerce ministry says they are not
aware of any plans for any further trade talks with the united states spokesperson golfing effectively rebutted u.s. treasury secretary stephen minucci and who had said in a congressional hearing that its team of u.s. negotiators was likely to go to beijing at some point in the near future meanwhile china has noticeably reduced their holdings of u.s. treasury bills to their lowest level in 2 years in march chinese official sold off $20500000000.00 worth of t. bills lowering their holdings to just over $1.00 trillion dollars over the past year in china reportedly has reduced the treasury portfolio by more than 5 percent some market watchers have speculated that china may choose to more dramatically reduce their holdings to retaliate against u.s. tariffs stay tuned. in the trade war has spilled over into yet another sector as president donald trump has signed an executive order effectively banning weiwei and other companies referred to as foreign adversaries in the united
states here to take a deeper dive into the details are our chief correspondent starbucks is still going and alex mahela mentions ron so welcome guys let's just get right into it sir i want to go to you 1st you've been following this very closely all day 1st of all give us an overview of what this executive order does and what does this mean for the future of wall way another designated companies in the united states well i want to start by saying that that executive order does not officially name always however it does ban a government the government bans basically these telecom and tech companies from doing business in the u.s. now the executive order sites quote foreign adversaries are increasing creating and exploiting vulnerabilities and information and communication technology and services that shortly after the executive order was issued the u.s. department of commerce actually added weiwei and 70 of its affiliates chinese affiliates to some entity list as what they're called that basically this means that the u.s. cannot sell or transfer technology from wall way without
a license and this makes it especially hard for wall way to do business in the u.s. now i do want to note that while we've competitors e.t.e. a chinese telecom giant had previously been added to that list in 2016 and that was later allowed to temporarily continue to have access to the u.s. market that is until president trump signed a law that really banned the t.e.'s so this is another chinese company. basically like wall way that's their main competitor but china has fired back and that chinese a spokesperson for the ministry of foreign affairs had this to say earlier today. we've also been asking chinese companies to comply with laws and regulations in other countries where they do business overseas and however china resolutely opposed any countries unilateral sanctions against chinese entities under its own to measure. records the us to hold their approach and to create conditions for normal business cooperation between our fleet under-educated to avoid further impact on china u.s. economic and trade relations and china will take further necessary measures and you
will resolutely safeguard illegitimate rights and interests of china. now while away continue to defend themselves and say that there is no evidence of any espionage or anything like that and that this could this ban could potentially lead to more serious legal issues very interesting point where off the bat there so that clearly this move was instigated by the wall we situation but they put language in there not specific not naming them as a company but just generally describing the kind of companies that will be banned so conserve them again in the future for others similar instances alex you're in canada right now and from there we're getting news that china has formally arrested 2 canadian nationals who were already detained in relation to the wall wait case according the foreign ministry the 2 are being held for allegedly stealing state secrets prime minister justin trudeau responded to china's move earlier today on thursday in a press conference in paris let's go to that but one of the things that we see
increasingly around the world is that the chinese government is not following the same kinds of rules and principles that the large majority. of democracies follow even regards to rules based order in regards to international relations and we will consistently always stand up for canadians particularly these canadians who've been arbitrarily detained but we will also make it very clear that we're not going to change our values or our systems including the independence of our justice system. because china disagrees with our approach over the now alex what can we expect moving forward what can we expect in terms of chinese can. in relations especially when you were still got this jewish and where the can a candidate is holding hallways c.f.o. the china chief financial officer. i mean by all accounts this is
a tit for tat we're talking about a formal arrest of 2 guys that have been held since december and they were put in to integrate cursory in cursory did right after meeting one joe was taken here in canada now the 2 people we're talking about are michael spouse or who was a businessman in that work with north korea and michael carver and he's a former diplomat this as i mentioned around the same time as the main one joe the weiwei c.f.o. was arrested here in canada she is still being detained u.s. wants are extradited and she's basically got an ankle bracelet on so people know where she is or the authorities know where she is but for china i mean they've made a request after request for the release of men one joe and canada's and basically it's fallen on deaf ears here nobody's reacting to that and the question is you look at the what the prime minister saying the rule of law that same prime minister we have a crisis with athan sealab and here and people are accusing him of not following the rule of law then we have ralph good deal he's our public safety minister and
this is what he said he said no evidence of been produced to indicate any validity to allegations made against them that then being those 2 men that are being held in china well how about allegations against manning how about any proof against may we haven't seen that we haven't seen any concrete proof and there's really no accusations against this individual the c.f.o. of wall way of doing anything against canada that's all deals with a us extradition request so when you turn all that stuff around and you look at what we have here is that we're holding somebody that there's not broken any canadian laws for the us this could be an extended process in the courts here in canada and you can be here a very very long time and china doesn't like it yes it's most likely a retaliatory measure what we're seeing with these 2 canadians and china and things are getting bad. relationships are not getting better we were on the right track before all this went down we were on the right track to having more trade deals with china our 2nd biggest trading partner and they were after this u.s. extradition request everything went downhill from there and sliding down even
further down that hill right in sort of quickly back to you moving forward how does the way been let's call it that the wall we've been factor into this larger transpacific trade fight alongside the tariff escalations will this just complicate things moving forward well it's almost certain to say it's almost safe to say that trump took this radical step to show the chinese that he's not only willing to impose tariffs but that he's going to target something that's been a very difficult to manage a very difficult issue to manage and to compromise with with that which is intellectual property theft that has been according to reports a very difficult to compromise with and trump is not afraid to stand up to china and show that this national emergency the steps that he's taking he's willing to not only add more tariffs but now to ban chinese telecom giant weiwei excellent updates there from margie correspondents alex mahela bitch and sarah montes dilger thank you both very much. and now with more on how these moves have affected the
markets we're happy to welcome danielle shea director of simply trading danielle welcome back to the show make you so much it's danielle let's check in on the telecom sector lock not lots of news there after donald trump signs this executive order sanctioning companies who work with companies said to pose a security risk clearly way being reported is the wall way big band interesting lee we see a rival company stock for rising on a run today how high did it go and what's the long term outlook there. i personally love arisan stock i think it's a great pick i also love the sector spider communications e.t.f. that was created late last year x.l. seaver rise and is a part of that one of the main names i think it's an excellent long term pick i'm looking forward to break to new highs relatively soon and you know i think it's a great long term stock buy as well as a short term options trading interesting very very solid there and also let's move
on to apple a big name in smartphones but the i phone seems to have lost its magical power to make buyers to make users buy the latest upgrade when the late in the latest versions in their supply chain at the same time is being struck the strain may be broken by the u.s. china trade war is ample getting a balance from the one way boom. so apple is up slightly today but the problem with apple is that so much of its revenue is related to selling a physical product which of course is the i phone and a lot of that is also tied to china so out of the fangs stocks this is the one that is going to get hit the worst by trade now is it impacted positively today based on the way band yes i would say that's true but at the same time you're going to have those longer term trade or effects impacting apple so while i do like apple as
a longer term stock pick in the near term i expect it to continue to experience quite a bit of volatility due to the ongoing trade war sounds like that particular thing may be a bit of a loose tooth these days sam. sam sloan is also making news last week south korean investigators raided song factory and found laptops and other devices hidden under the floor of the meeting room prosecutors reportedly are looking into possible accounting fraud possibly related to the fight over who will succeed as. no of the since samsung conglomerate that presume their lead j. young is already facing bribery charges what's the prognosis in outlook for samsung right now and how serious a threat is this investigation. so any time that a stock gets hit on bad news like this what i always look to is how long that's going to remain in the news cycle for something like this where you're going to
have an ongoing investigation you may have more charges it is never good for the company and what i look at what i look to is for that volatility to continue and still that situation can be resolved and since it's just beginning i would not want to touch it at this point until it's over. and just as we wrap up here we're taking a look quickly one of the turning earnings reports coming in recently wal-mart turned a lot of heads tell us what's going on with wal-mart. so right now wal-mart and amazon target as well they're locked into a pretty large competition largely due to the e-commerce space right amazon came in and took over the e-commerce space that was really hurting wal-mart and at this point what wal-mart has been able to do through this earnings report is to show that they're e-commerce section of their business is growing exponentially they're also working on adding grocery delivery to more of their stores that skewed right
now and it's also another revenue stream for wal-mart no i think that the report from wal-mart was very positive i think that wal-mart amazon and target are going to continue competing and i think that competition is excellent for the consumer because at the end of the day what we get is better services and lower prices and at the same time the stock is trading higher so i think that one's a great stock pick as well right and this seems like another example of some similar stories we've seen recently of u.s. retail names big names in retail finally getting the. their online game in order and you know sort of making up some of that shortfall also i you know i made a online purchase just today and got sales taxes that's certainly helping brick and mortar to compete with online vendors now that online vendors are mostly having to pay sales taxes fascinating insight as always danielle shea director of options simple trading thanks for joining us thank you. so i'm now for
a quick break but hang here because when we return we're back on the ground from consensus 2019 bringing you the latest on the future of chain a new platforms for crypto trading and as we go to break here are the numbers at the closing bell. after the previous stage of my career was over everyone wondered what i was going to do next. different clubs on one hand.
everything is familiar on the other i wanted a new challenge and the fresh perspective i'm used to surprising. you. i'm going to talk about. or else you can think i was going to do. by the way. for you. was a little bit. it was a renewal they gave. us he would hope people would see it was it's when they would see it. that's the ticket. if.
that's. if you give. welcome back the u.s. department of transportation has suspended all commercial and cargo flights between the united states and been a swale of the transportation department acted pursuant to a request from the department of homeland security or d h s in a letter to transportation d d h s claim quote conditions in venice will or threaten the safety and security of passengers aircraft and crew traveling to or from that country the trump administration has escalated long running u.s. efforts at regime change of minutes weightless citing a worsening humanitarian situation is cause for a coup against elected president nicolas maduro however exports experts point out
that u.s. sanctions have only made daily what life worse for venezuelans and famed economist jeffrey sachs a summated that $40000.00 venezuelans have died due to the predictable effects of u.s. sanctions on supplies of critical lifesaving medicines. and swinging to the west coast of the united states there is more fallout from last year's camp fire the most damaging in california's history the state of california has now weighed the blame for the deadly fire at the feet of the badly battered utility company pacific gas and electric or p.g. any this week california. fire officials offered a scathing indictment claiming quote after a very meticulous and thorough investigation cal fire has determined that the camp fire was caused by electrical transmission lines own operated by pacific gas and electric located in the polgar area the company which has already filed for bankruptcy protections earlier this year saw their stock take a major hit over the past month particularly in the last few days after news of the
state investigation broke p.g. and e. cited an estimated $30000000000.00 in fire liabilities prior to their bankruptcy filing. and social trading platform ito has made waves with their mobile app which allows users to observe the trading behavior of peers and high powered traders but in 2017 the company changed the trading landscape by adding the ability to trade crypto currency on the platform during new york block chain week artie's branch of war sat down with the torah founder yoni assia to discuss the correlation between traditional traders and those dealing in corrupt. tell us about the toro you toured today is the world's largest social trading network we have 10000000 users from more than 100 countries who trade stocks commodities indices currencies and crypto currencies in a trading platform where everybody can see following automatically copy the top traders from all around the world and how did you make that leap because you got
started as a traditional investing platform and then you made that move into the cryptocurrency space so it was so we made the move really 2013 so early in the i mean that's relatively early in the hour so we i started trading in bitcoin and we sort of experimented with between 2011. so luckily for the company i actually bought like $50000.00 worth of bitcoin at $5.00. so those are going well for you today as we're at about $8000.00 that is very well now it's already. it across a lot of different courtesies but then we added bitcoin into the platform late 2013 and we basically launched it on the platform we had our users traded but it was relatively low demand for it for a while also just before mt gox when. we saw the 20141516 very quiet years like 2 percent of our users actually were trading
crypto then in march 17th we added. i think it was $6.00 to the platform and then it started sort of going up to $400.00. and that sort of started spreading like fire across europe in asia. then we started adding more and more crypto as we have now 15 crypto currencies in this trading platform we recently launched the toro x. which is. crypto exchange and tokenized assets exchange and we also launched a wallet which enables you to take your assets off of the torah platform and basically send it to your own called storage it's in on chain chain crypto wallet now there's there's companies like robin hood out there that do traditional stock trading and then now they are getting more into the crypto game would you take that as kind of a nice note to say hey they're kind of following our model of how to do this. i
think generally you know our view is crypto is a great asset class but you should manage your portfolio across multiple asset classes and i think that eventually traditional capital markets traditional brokerage and crypto markets will converge for the mass market so we're happy to see sort of more participants going into this space i think generally it's good for the space to have potentially coming in coming in hopefully. so we're going to see more players traditional players i think going into the space over the next 2 years and how many users does he have right now we have 10000000 registered users and so you think that the like you said you know there was kind of a slow build to people trading the kryptos on a platform where they were you know doing traditional trading there do you think that you guys helped that movement because you've made it accessible to people who
just were used to trading on the market i think we definitely made it accessible to a lot of people who are less tech savvy. so we ordered to work with the most of the crypto exchanges you really need to understand how to hold your own keys how to transfer crypto assets where the tour platform is a really simple and easy user interface for you to on board very fast to fund your account with a credit card debit card or wires and then you can simply buy crypto as fast as you can buy stocks on the tor. have you noticed specially in your platform where you can go straight from traditional trading to crypto trading and kind of you know you sell one by another and it's pretty easy because your money is right in the same place are you seeing people invest more in crypto right now as we look at a little bit of in the markets due to certainly with the trade war and things that are happening with china here in the u.s. we're seeing a very significant pickup over the past week of trading on the platform
a lot of people who are. we see them sort of coming back in trading more actively now so i think the new hope in crypto is working out and we definitely see both new customers and existing customers trading much more and like you said you talked about you know fidelity and all these i mean are we seeing an acceptance of crypto trading in the standard training class now where they're like you said there's a diversification of your portfolio that you should always have i think if you're asking whether sort. of the traditional financially system has already accepted i don't think so not yet in most places financial institutions are still sort of very skeptical about crypto i think fidelity is the odd one out to a very large financial institution founder family led that's passionate about group which is great but i think we're still going to have a process until normal crypto people appreciate crypto as
a real asset class and what is going to take for that to happen is it just stability in the market stable oil and things like that or is it i think it's stability price and. so i think the higher the price and stables as it gets higher for a longer period of time people will accept this as something that needs to be a part of your portfolio the traditional financial ecosystem is very conservative so when they see something going from $20000.00 to $3000.00 and then have it people can really really keep on saying it's going to get to 0 scares a lot of people but if you know 5 years from today we're going to be with bitcoin a $50000.00 or maybe $30.00 to $50000.00 range for 2 or 3 years i think at that point people will accept it as an encore related asset class that needs to be a part of the portfolio.
and finally turning to the world of high end art auctions a new record has been set for a price paid for a work by a living artist rabbit a $3.00 foot mirror metal sculpture resembling a mylar balloon by the artist jeff koons sold at christie's auction house for more than $91000000.00 after fees its mr coon's a 2nd turn holding that title which he 1st game won a similar work balloon dog sold for more than $58000000.00 in 2013 koons was temporarily to the throne by. what a painting by david hockney sold for $90300000.00 the win it winning better in this case was one robert minucci and if that name sounds familiar yes robert mitchum is the father of u.s. treasury secretary steven into action. that's over this time you can catch boom bust on direct t.v. channel 321 dish network channel 280 or streaming 247 on pluto t.v.
it's the free t.v. up channel 1324 as always had us up at youtube dot com slash who must start to see you next time. whenever the politicians their business going to work around the south is stupid to support a politician to say they're going to impose a tax or oppose the regulation because the rest can just move right around it is easy as pie if you're listening any want to be wealthy want to be a rich understand that if you know how to read a balance sheet and you know how to read the recent legal guidelines you can be
rich and it's almost like falling off a log if you can't figure that out is because you either cannot read or you are incapable of math simple math that's it that's the bottom line because. in 2040 you know bloody revolution to correct the demonstrations going to be relatively peaceful political protests to be creasing the violent revolution is always spontaneous or is it just the lawyer here i mean your list book to do with redeeming the new bill is that i'm new school in need of the former ukrainian president recalls the events of 2040. of those who to vote had invested over $5000000000.00 to assist ukraine in these and other goals that will ensure. secure and prosperous and democratic.
u.s. police arrest for antiwar activists out the venezuelan embassy after their month long. protest against the expulsion of the girls diplomats. in your sent back to jail for refusing to testify on wiki leaks the u.s. army whistleblower says she would rather starve to death and then cooperate with prosecutors. in the philippines recalls its ambassador from canada and a dispute over vast amounts of trash shipped to the south east of the country years ago.