Finance Round-Up: Cryptocurrency and Foreign Investment

this is boom-bust broadcasting around the world from Washington DC I'm Bart Chilton and thank you for joining us coming up today we look at the market reaction to the trade news from yesterday both stocks and commodities and we consider if US markets are topping off and a rebalancing might be in order where would investors move their money naima Slama think markets joins us from London to discuss and ride-hailing companies are in the news as didi and uber make major moves that could impact their future Archie's Alex with high Levitch weighs in from Toronto plus US regulators are getting rather rough in a good way on bad actors in the cryptocurrency space Gary to wall the special counsel it's cat Newton Rosenman will be with us for the latest on that and more and with sports betting now legal as a result of a may decision by the US Supreme Court we get an update on how the business is flourishing and how one gaming company is making it easier than ever for folks to place their bets RT sports correspondent Steve Christakis antes up the deal the details let's get to let's go market reactions to the attempted rewrite of the North American Free Trade are in the headlines today as Nasdaq sets a new record Nasdaq ting text of a hawk tech-heavy stock index broke 8,000 that level yesterday powered by familiar names such as Netflix and Google that have had a very good 20:18 on the stock front and the Dow Jones Industrial Average hit 26,000 yesterday that's the first time since February where broadly markets seemed to react favorably to yesterday's announcement on a potential bilateral us-mexico trade agreement that US President Donald Trump suggested would replace NAFTA Treasury secretary Stephen minuchin hailed the bilateral agreement earlier today this is very important so this deal is is it's about autos it's about intellectual property it's about market access it's about financial services it's about currency there there are there are many many ways that this deal helps American workers and American consumers and is very important if you remember one thing they'll be more trade going on as a result of this deal and while on a conference call with mr. Trump yesterday the Mexican president suggested can a stay in the NAFTA renegotiating writing process mr. Trump largely ignored questions from reporters offering only sort of a week we'll see response to that end Canadian foreign minister Chrystia Freeland is in Washington today for talks on including Canada in the NAFTA rewrite well mr. Trump has positioned the u.s. to leave Canada out relevant congressional committee chairs insist that mr. Trump is not legally authorized under this so-called trade promotion Authority or TPA to negotiate an agreement that excludes Canada we'll talk more about this tomorrow and for the second time in as many weeks the German Foreign Minister Heiko Maas has called for the European Union to move away from the so-called Swift system of international financial payments Swift as an acronym for the Society for worldwide financial telecommunications the system has been used over the years to guard against money laundering and particularly to guard against terrorist group financial transactions more than 11,000 financial institutions and roughly 200 nations use Swift and a messages set every single second of every day the concern of a German Foreign Minister is that the United States might be able to dictate which nations can use Swift that's particularly key now as the u.s. is set to reimpose economic sanctions on Iran which were lifted in 2015 beginning on November 4th of this year other nations like China Russia and those in the EU which continued to support the 2015 nuclear deal with Iran which seeks to koala Ran's nuclear ambitions what to ensure that the u.s. can't simply ban financial transactions with Iranian entities and those outside doing business with Iranian companies some companies as we've reported like the energy company total and the carmaker Puzo are among and among others have already ceased doing business with Iran for fear of having us retaliatory measures placed upon them and while the foreign ministers call for European unity has been echoed by German Chancellor Angela Merkel she has been cautious about endorsing a move away from Swift and said quote we know that the Swift agreement is extremely important especially on questions of terrorism financing that said new reports out today indicate the European Commission is moving forward on proposals with an s for an alternative payment system to Swift for more on this and global markets Whittle London where we are joined by Naima Aslam the chief market analyst at think markets name thanks for being back with us what do you make of the German Foreign Minister hi Colm s reiterating he did so last week in an op-ed and now he did to German ambassadors and is called to move the EU away from the Swift international payment system in an effort to be less tied to I guess the United States which some see is having inordinate influence upon Swift I'm not really sure about how that we have so much influence given there's only two of the 25 board members but be that as it may he's concerned about it what are your thoughts thanks for having me but there's nothing new about it because the way that the Trump administration is playing the games in the White House I think everyone is very much concerned that the US has a position where it can dictate and the currencies can be just literally driven to the ground through speculations and the interest rates and everything else and the sanctions can drive the countries to the grave so I think with the evolution of a blockchain technology it was already on the horizon has we've seen Bitcoin as a new emerging payment technology and ripple and so many other so I do think that the countries like Europe and especially Germany which it doesn't hold any any longer good relationship with the u.s. they certainly want to move away from this system which is dominated by the US but yes you said that's the only two banks over somebody's the easter position which are old on that approach Matis and most and i think now we are entering in an era where no one wants to rely on a technology which is controlled by a one company one individual one country it's all about decentralized now yeah well I totally get you you know the the effort to move away considering what the US President Donald Trump has done and what he says he certainly seems to want to be more isolationist but boy that's a big order for the European Commission to come up with a new Swift program I mean there are eleven thousand banks they're doing like a message a second on this thing so perhaps you're right name that maybe going to a crypto based system is in the in the future I note that Angela Merkel agreed that the with unity of the EU but still has some caution with regard to developing the new program nine let's move to markets which in the u.s. have been buoyed over the last 24 hours related to some positive trade news about the US and Mexico potential trade deal but how are other global markets doing one key word that I really like that she uses a potential I think that's the key word in that agreement right because market is getting little bit ahead of self thinking that yes it is a done deal which certainly it isn't and that that should that is something that the traders should be paying attention to but I think the spillover effect of this trade agreement shall be called the US and Mexico trade agreement because Trump administration doesn't wanted to call that NAFTA anymore it has a positive impact on the global markets over in Europe we have seen the markets moving higher and the move isn't particularly driven by one potato sector its its overall move is a combination of all sectors which is driving the market higher which in all essence is really good because this is after all the biggest longest rally that we have ever seen yeah you know some say named that particularly those that are heavy US stocks and even commodities that a time now to rebalance at least to consider rebalancing that maybe the US markets are either topped out or about to top out what are your thoughts about that and if they have and people should diversify a rebalance where should they be going where would you suggest yeah that's that's really an accident questions number one to answer that question if if the markets are talked out in the u.s. well I think there's a still a little bit more room left but yes we are coming towards the end of this bull rally but for those investors who are looking to have a higher risk and a higher growth and a higher appetite for the profit I think they should be looking at the countries where the geopolitical landscape is about to change because of the change in the politics with the change in the political arena so countries such as Malaysia Pakistan where there have been recent elections I think these markets do represent a huge potential and then some of these countries like Pakistan become either part of the emerging market it's a great new spoiler for foreign investors but apart from that I think gold is one particular derivative which stands out because it is very much depressed because of the domination of the pressure that will be seen from the dollar index and it has driven a gold below 12-under but now we have broken above 1200 but I think given where the geopolitical uncertainty is the universe's should be looking at gold at the same time as well to have some sort of a hedging to put for you it makes a lot of sense to me and there may be you know some gold cryptos out there in the future we always get stimulating and thought-provoking information from you that's the chief market analyst at think markets name Aslam thanks named and famous investor Warren Buffett's company Berkshire Hathaway is making their latest market shifting investment in India the Financial Times quotes a knowledgeable sources saying that the previously tech shy Buffett's company is betting on India's largest mobile payment payments platform Paytm by investing between 285 and 350 million dollars in pay teams parent company 197 communications and taking a stake of 3 to 4 percent in the parent corporation pays it has 300 million users in India with four billion dollars in value of monthly transactions on the platform a Berkshire Hathaway now joins big names including Holly Baba and Softbank as investors in pay teams parent many market watchers quoted in reports the caution that while this is the first for Berkshire mr. Buffett is not personally involved in the deal and may not this may not set a new precedent or policy room for mr. Buffett with regard to technology there are some mega moves in the ride hailing space as didi the Chinese company has suspended its so-called hitch the carpooling service that after a brutal assault in a murder of a female passenger this follows another murder of a writer in May the company released released a statement which read quote as a platform didi failed to live up to trust and by the public and has inherent responsibility and uber is taking a long way home to profit Sabbath focuses not on cars or SUVs but makes moves toward more urban friendly transport lots to get up to speed to on the ride hailing space let's get with Alex Mihailovich who's always savvy and sophisticated on these things Alex this suspension of the carpooling service the hitch is a big blow to didi isn't it well of course look at do you know many of us haven't even heard of didi out there I'm sure didi is the world's largest car company when it comes to a car hailing I should say a ride-hailing company out there both my valuation and the number of riders that use this so when news like this gets out of this level of negativity you know it's a horrible thing for the company so they have to take a major step back and take a good look in the mirror at what they're doing and how they're going to move forward now after this latest assault and let's let's be frank it was a rape and a murder and it this this is what happened to our driver there was actually a complaint about this driver the day before that came into didi and the person at the the customer service person did not react accordingly to Dedes uh the methods of reacting to something like that within two hours so there didi basically took the hit here and that this is something that people have been talking about online as well as the fact that they've been talking about it in from the Chinese government we've heard many complaints as well so any way that you turn this not a good thing for didi now look they've been taking this very seriously here's a statement from them this is from the the founder and the president herself two different people's I should say we thought we were using technology to build a better world of mobility six years ago when we started this business the tragedy will reminded us we have walk this path without enough respect nor humility now didi has changed its methods it's saying that you know it's not about growth anymore it's about safety and about protecting customers that's gonna be their number one priority Alex it seems to me that Boober is making a pretty big shift there they're moving away from the ride-hailing in urban areas they're moving to scooters and bicycles and I think what they've told investors is that that they may be not profitable in the near-term Alex because they're moving to these bicycles and scooters as opposed to having several tons of a metal rolling around in traffic jam so what do you think well it's interesting it's one of those several long-term plans according to the CEO they they know they've done mean they took a 4.5 billion hit last year and something like this is gonna give them a hit as well but it's the long-term plan I mean they've have been investing in this type of thing already in April they purchased jump and they also they have the investment in the scooter sharing company lime so this is not something that's brand new to them but it's it's an interesting idea of how to move forward knowing that it's gonna be kicking a loss but they're saying you know what's important here is the way that we're building cities and we don't want to contribute to more traffic with these massive vehicles also this is great for short hauls for commuters so they don't have to get into a car and and you know pay more so it'll be paying less and it's actually a good thing they're safe for uber drivers because from now on into the more bikes and these electric scooters that you have on the road the more long-haul drives that they have so they'll be profiting more in the end so it's a win-win for everybody according to Ober and and I also note that Toyota's got given five hundred million to Ober to develop their self-driving cars we'll talk about that again RT correspondent alex Mihailovich thanks Alex thank you and time now for a quick break but hang here because when we return US financial regulators are going after bad actors in the cryptocurrency space in a big way Gary de Waal special counsel at cat and mutant Rosenman join us for the latest plus RT correspondent sports correspondent priest steve chris tacos reports on how sports betting business is flourishing and how one gaming company is making it easier for folks to place their bets as we head to break here are the numbers at the closing bell we'll be right back it's called the feeling of freedom everyone in the world should experience freedom and you get it on the open road world according to Jessie welcome to my world come along for the ride the mainstream media swarming with falsehoods riddled with censorship and under corporate control is incapable of truly informing its audience it can't rise above the corrupt motives of those calling the shots when you awaken to this fact turn to art see America where we dare to question more welcome back Brazil has faced turmoil in the transportation sector this year with trucker strikes royal roiling delivery and inventory operations nationwide now the trucking slowdowns are having consequences in another vital transportation sector shipping global shipping giant Merck has raised the alarm saying ports are overbooked or outgoing cargo with some exports reserving exporters reserving more space than they need exporting firms started scrambling for space when the trucking strikes began and buying up space as a hedge against the crunch when the strike finished those exceedingly large bookings in turn exacerbated the overbooking and space problems the friction is getting exports out the door so to speak comes at an inconvenient time for Brazil and the world while US acrimony with China over trade issues is reducing Chinese purchases of US soybeans Brazil now the world's largest soybean producer has been expected to fill that gap but now some question if Brazil will be able to do so given the large logistical shipping complications and we are now delighted to be joined once again by our friend Gary de Waal who is special counsel at law firm cat and Muchin Rosenman Gary welcome back I have a couple of commodity questions for you at first we saw markets get a little fuel injection based upon the potential for a us-mexico trade deal do you think in commodity markets that news was met with really just a sigh of relief then no doubt who was met with a sigh of release although it was probably a little bit uneven supply a sigh Mexico was a big importer of hogs and cheese so you saw the big bump there it helped everything but clearly we need some relief in China China is responsible for 14 billion of soybeans imports the terrace there have caused about a $2 per bushel hit to the market price the tariffs are really hurting and and and we're not going to get good changes until we see some tariff relief in China yeah I'm totally agree with you let me ask you about the the news I was reporting there just a moment ago about Brazil and you know I'm not sure that's gonna happen but what thought about whether or not this transportation logistical problem with shipping could really put a damper on the Brazilian exports of beans to China you know it's interesting the the export of beans is actually cyclical from March to September most of the purchases are from Brazil for the rest of the year most of the Purdue purchases in China are from the United States it'll be interesting to see how everything plays out one thing interesting Bart that's to keep in mind is is that despite the trucking problems which really began in June at the end of June the the beans on the ports in China were at about a three point five week supply and that actually is greater than the equivalent week supply of three point two in 2016 and 2017 all very interesting Oh super data details a point ahead yeah absolutely well they were they were supposed to do in these markets right exactly okay let's go go to crypto real quick you know the CFTC your old agency my old agency they want one a permanent injunction a ban against an operator of a new york-based company called cabbage tech corporation and the CFTC they boldly and viciously defrauded investors I mean what does this say about how serious financial regulators are about going after bad actors in the crypto space Gary sure I think both the SEC and their old agency the CFTC have been very very active in this space previously barred and I think you and I have talked about it other editions of your show i-i've commented that before it was just regulators talking about it and getting settlements now the court decisions are coming down and that's the significance of this case against cabbage stackin Patrick McDonald it was an actual court saying that crypto currencies are a commodity and that the SEC that the CFTC has the authority to bring these kind of anti-fraud actions against such allegedly bad actors and you know better at then I as an attorney I mean once you set this case law that actually gives the regulator some more comfort in what they do and I think right now they're probably a little skittish and in that regard Gary you know the conflicts between the CFTC and the SEC the crews HJ Commission are sort of known for those of us who worked at one of these places but how are they getting along in the crypto area I think there's a lot at least from what I can read in the newspapers and my colleagues that both agencies tell me there's a lot of cooperation that being said I think there was a little surprise in many corners last week when the Securities Exchange Commission declined to approve two exchanges exchange traded products are made nine exchange traded products based on Bitcoin futures and if you read the disallowance orders there seems to not have been a recognition of the standards that exchanges must self certify in the future space regarding anti manipulation and surveillance that seems not to have been given a lot of comity or a lot of respect by the SEC in their disallowance and I wonder what will happen that was actually done by staff at the SEC and now the full SEC will will be reviewing this matter and coming out with their own opinion and I'll be curious to see how the SEC deals with the CFTC's processes for exchange contract approvals well I remember the self certification in our old world and the commodities world gary was the exchanges could self certify and I believe we had like 10 days to reject it if we wanted so looking at these ETS I mean I'm supportive of Bitcoin orbit crypto ETF but they certainly need to be cool with all the rules and regulations and you and I both know all that it's always intriguing and interesting and of course enjoyable to me personally Gary to have you on the program Gary de Waal of the law firm cat and Muchin Rosenman thanks Gary good to see you again Bart they care and politicians and investors around the world are eager to see some movement in the brexit process and anxious to see a minimally disrupted resolution of the debacle now at least one prominent japanese executive is warning that his compatriots are quote seriously concerned at the lack of direction in the negotiations hereo Kanaka Ishii chairman of both heat XI Corporation and has served since 2014 as chairman of the Japan business Federation meruna mr. nakanishi lamented the environment of uncertainty around brexit telling the Financial Times various scenarios get discussed from no brexit to plunging ahead without any deal at all we net we are now in the situation where we have to consider what to do with all of them mr. nakanishi pleaded for clarity and urge the UK to stay in the EU customs union in any deal and weren't against they no deal hard brexit and now we move to sports betting it's a topic we've covered before in light of the US Supreme Court's decision to allow such betting back in May we thought it was time for an update plus there's now a new way to bet you can do it on your phone RT sports correspondent Steve Kerr stucco's any of the details give us deal us the details on what's going on is it taking off Steve it really is it's happened very quickly you know it's since May you know just a few months ago there's already now four states including Nevada of course New Jersey Delaware and Mississippi Mississippi coming just now in this month in August and New Jersey and Delaware jumped on it pretty quickly in June and they already have some impressive numbers Delaware being a very small state you know population under 1 million they generated already 15 million dollars in total bets netting about 1.5 million now New Jersey 4 million dollars in revenue in their first month alone but since the launch they've generated over 40 million dollars in bets oh and negative over 7 million in revenue so it's really taking off in West Virginia Rhode Island and Pennsylvania are next in the coming months well those are a pretty impressive numbers whether or not you like gambling or not like gambling a lot of us like business and like two people see people do well so good for them in that regard now what about I think I don't know if it was which the cup what's the gaming resort it was mg Amber's who's doing an app on their phone where you can bet on your phone so it is MGM Resorts it's called the play MGM New Jersey sports betting net now you have to have it specifically for New Jersey so I could download it in here in DC for example but I have to be in New Jersey within state lines they use geo trackers in order to bet oh very interesting yeah yeah and it's through a specific casino other casinos are gonna jump on but the Borgata in Atlantic City is the only one that's supplying this right now so you download the app you can bet from anywhere in New Jersey you have to be 21 years old and the way it works is app is it's very simple to use it's streamlined so you use a virtual wallet you deposit funds into it using a credit card or an e-check for example and your funds that are available in your wallet virtually you place bets and your winnings go directly back into your wallet and then you can you know rebate and and you can bet on any sport right now it's a soft launch it launched last Wednesday so it's only available actually for Android users at the moment but iPhone users in other platforms it'll be available for those as well according to the Borgata and MGM now MGM is the first company to have both physical and mobile sports sports books available and so that's they're looking to be ahead of the game now in terms of taking over there and so you can't download it here not that I was going to but it uses the geo tracking got to be physically in New Jersey in order to bet you can download it anywhere but you have to bet physically in New Jersey at the moment yes deep Chris tacos thank you so much appreciate all the information and that's it for this time thanks for hanging out with us you can catch boom-bust on DirecTV Channel 321 Dish Network channel 280 or streaming 24/7 on Pluto TV and the free TV app Channel 132 or as always you can find us at slash boom-bust arty see you next time you

3 thoughts on “Finance Round-Up: Cryptocurrency and Foreign Investment”

  1. When a kkkunt from Goldman Sachs has a position in the whitehouse and publicly says its going to help the American worker, you can be 100% sure that it will not be helping us.

    Very much like how his CEO says Bitcoin is a scam. They are full of shit and if you believe it, you are hurting yourself you naive human.

  2. There is only one place to move money in currently economical positions. That is in physical gold. 5000 yesrs of proof years can't be wrong.

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