tv Boom Bust RT June 29, 2019 1:30pm-2:00pm EDT
purchase of russian arms including the s 400 air defense system in europe was in an effort to avoid u.s. sanctions according to the economic times despite sanctions india's government said they will not stop purchasing russian arms but many financial institutions felt pressured and shied away from processing the transactions earlier this month russia's vitti bank agreed to receive payment in euro's rather than the traditional transaction. and then other news about international sanctions and how to work around them the european union is finally moving forward with a system to enable trade with iran after the united states neg on the 2015 nuclear agreement and the reimposed sanctions the 3 remaining partners to this so-called p 5 plus one agreement france germany and for now the u.k. announced on friday that the instrument in support of trade exchanges or instax is now operational the group is calling itself the e.u.
3 which will finally infuse instax which will create it 1st in january with several $1000000.00 to allow transactions to begin diplomats from the 3 along with the remaining p 5 plus one partners china russia and iran are meeting with their counterparts in geneva on friday in an increasingly desperate effort to save the international nuclear agreement here to a stop on the markets reactions to a very eventful week before the g. 20 summit has even officially started as todd by the horrors of trading. but 1st of all let's just catch up we're a global stock markets right now in the wake of what we've been calling sort of the pre-game to the g. 20 what else besides that is moving them this week. well i think the markets are you know again i think the markets are already priced in good news i think. not a deal yet because obviously there will be a deal is written but they've already produced in that they're going to get along they're not praising him that the president could walk away that there won't be a deal they even play. it all the options they put these markets higher i think the
markets are priced for perfection and any disappointment with some lower you tell you tie that in with the federal reserve talking about is rate cuts and everybody looking for him why would we be cutting rates when the markets are all time highs it doesn't make a logical sense that tells me there's a problem and you put goldman sachs and ally cutting their lending rates to me that sounds like that like a problem that you've been talking about * and the grain markets this week what's the story there. well i think the grains really add up but on the other the grains are really solid but you we had the progress planning report today and it was a little bit bearish the street but of course what happens in most cases is people on the street were already anticipating good news so you have the good news was ok the market sold off hard and you saw that in corn and wheat get hit pretty hard so i mean dribble the rally but they have been the weakest one so again i think that they're going to rally hard i think they're going to go much higher but i think this sell off is actually good for the market you're going to shake out some of the weekends and probably just back to this g 20 anticipation when you say markets are
priced in good news coming out of there would be good news not talking about a full deal to resolve the u.s. china trade fight or just no more agitation just the situation not getting worse. i don't think will be a full deal obviously i think they'll be you know a little bit of tension but as long as they come out saying that will work towards the future and put a deal together that would be that bad would be the best that the street could hope for this weekend so if they come out with a positive tone and president trump is positive and you already get a deal done and president xi and they don't have any this backlash or any of this the last minute change and i think that's already been priced in and i think if that doesn't happen i think the markets are going to be as they say cruising for a bruising early next week because again they've already priced and look at the end of the day today look at the month of june look at the rally we've had we're right near all time highs so again when you look at that way you have to assume. that the
markets are pretty priced in this great news and if it doesn't come we know it's going to happen and bubba quickly we noticed an item that might have chocolate lovers very concerned reuters reports that premiums for ivory coast cocoa work are currently at 162170 pound sterling per ton over spot one in futures an 8 year high one gonna premiums are around 8 year highs as well as 300 trees $350.00 pounds talking about a huge shortage of near term supply what's really going on in cocoa markets there and will the price of our favorite candies go up soon. when i look at the cocoa marks over the city undersea and when i look at markets i'm only looking at the price action and the money flowing in and the charts and the charts have been rather weak so again we see these things happen all the time and i think what really happens is the bad news that we're looking at now has really been priced in these markets is really similar if you go back to the hard markets when the hogs are over 100 they're now at 70 something because again the street over anticipates
and rushes to because of the possible problems and then of course they come back to reality so the market start to sell off i think so i guess i know there are some issues out there but the markets are very efficient and of course you see what goes on and they are very good at getting these markets right which is why we've seen over the year such a drop in implied volatility to markets because the science has become much closer and the news it's too is just too much news flowing that the big firms can get to wall before it ever hits the tape now but i also had some comments recently about our lead story with apple choosing to produce the macro in china which is perhaps a little counterintuitive walk us through that decision process that apple must have gone through. well i think that apple you know again there's a lot going on and apple and of course they're very much affected by what goes on in china and i think that you're starting to see that they finally kind of resolved what their issues may be and we have now seen other than to. a pretty solid rally
and apple looking is trying to get back to that trillion dollar company but again they have to be very careful with what happens in china and they may have to move along and as many companies are quietly doing right now they may have to move elsewhere because at the end of the day if we don't get a deal with china and they're going to keep giving us their intellectual properties they're not going to be happy market master todd horowitz above a trading things for insight thank you so much. markets around the world lack direction as investors are cautious awaiting the next tweet from donald trump which could potentially cause a swing in the markets as traders place their bets on what the outcome of g. 20 will be here's a look at the state of play in the markets around the world this week the xstrata flat all week with flashing back and forth and ending down less than one percent the council of europe has lifted its sanctions on russia this week and restored its
voting rights 5 years after it lost them due to it's an extension of crimea but this kremlin victory failed to boost market sentiment and still weighed down by the broader market narrative over in asia the shanghai composite slipped down about one percent for the week as the optimism for a sino u.s. traitress fades china maintained a tough stance on trade and she blasted protectionism ahead of his trade talks with trump this weekend calling these measures an economic blockade and the biggest risk of instability in the global economy there is tremendous uncertainty over whether the talks will produce progress in ending the year long trade war between the 2 economies contributing to the whiplash volatility you see in the markets this week this is a race all previous gains from earlier over in hong kong the hang seng index traded flat but eked out a small gain a point 2 percent for the week led by strength and health care and managed to recover heavy losses it suffered midweek when their 80 our counterparts in the us markets came under pressure late friday trading saw a rally into the close ahead of their long weekend holiday over in japan the nikkei
also gained less than one percent ending the week flat japan's industrial output in may rose 2.3 percent helped by robust auto production market over in india the bombay sensex rose as domestic investors are hoping for positive news on the trade front with my pump ale holding talks with prime minister narendra modi in new delhi pozen momentum was triggered and domestic stock markets on reports of swift monsoon progress in the country as traders loaded up on future. yes and then over in australia the assets closed lower i had a key trade talks as investors shift their cap on to more defensive assets commodities contribute to continue to prop up the markets as i or miners and steel makers lead and then finally all shares in south africa struggled for direction all week but ended up as we had optimistic into the weekend awaiting the results from g 20 caution remains the default state for investors as we lack a catalyst both locally and from international markets and i got over to daniel with the rest of europe and america thanks kristie taking
a look at europe and moving quickly it's been a complete mixed bag in europe with the french can down the german dax finishing up for the week footsie starting study perfectly finishing flat on the week moving to the americas we begin in colombia where the cold is down for the week public service and industrial stocks led some of the losses there one specific notable fall was for airlines down more than 2 percent earlier this week j.p. morgan notably lowered their year end target price for that market by 9.8 percent moving to brazil and following the regional trend is also down at the end of the week after setting a record high above 103000 points last friday following back this week low inflation and optimistic comments from president about his pension cuts package moving fairly quickly through the block the brazilian congress helped keep that slide from going too far also in the j.p. morgan assessment i mentioned earlier that i will vesper was the only exchange in
the region to see its year and price target increased coming to the want to stock markets the nasdaq down with and want to see flat some recovery earlier today and those markets were on reports of possible progress on the u.s. china trade dispute the trump meeting in osaka this weekend but not enough to make up for summer and p. and nasdaq and finally the ts in toronto also down for the week completing the turning the americas. g.d.p. growth april reported at point 3 percent earlier this week higher than expected and seeming to lower the prospects for an interest rate cut there and that is your global stock market wrap up. time for a quick break but hang here because when we return bitcoin prices have seen a major rollercoaster over the past week but what's driving the swing at the currency analyst ben swan lend us a hand to sift through the spend on spirals for the quine and as we go to break here the numbers are the club of.
and a very warm welcome to you watching on since last. my son doing drugs my nephews was still in drugs my sister just with doing drugs it was like an epidemic of drug abuse america's public enemy number one in the united states. drug abuse we started going after the users in the prison population. we started treating sick people people who are addicted to these drugs like criminals while i was on the hill i recently became convinced that the war on drugs. there are countless numbers of people who are in prison for. long sentences for minor minor offenders in the drug trade it's a lot watching your children grow up and miss you in waves and say by daddy as you're walking out of this it's just it doesn't get easier.
i think the reason that they have not attack iran so far it's not that they didn't want but i would say that they couldn't do it as thinking of a short and quick war with iraq but i would say that that would not be the case trump said that if they wanted to they would have killed $150.00 people in the rain inside but the question comes to me is that americans a country in the past by nuclear bombs do they really care about killing 150 people . welcome back a deal has been made despite some friction over climate and trade issues ahead of the g. 20 summit this time between germany and france on one side versus brazil french
president emmanuel micron's said if brazil leaves the paris agreement as far as we are concerned we cannot sign it. trade agreement with them approach presidents through it came out president in our was soon to rebuff german chancellor angela merkel who wanted a clear discussion over what she called dramatic deforestation in brazil under mr bolton oros policies mr mcconnell conditions and conditions could have soured a deal between the european union and the 4 nations of americas who are argentina brazil. but we have some breaking news of the last few hours is the e.u. appears to have reached an agreement for a new trick to trade deal with the block the deal which will be the biggest trade deal ever negotiated by the european union nations to import cheaper beef and other products from the south american block. deutsche bank is preparing to eliminate hundreds of jobs across its global equity divisions and this will mark the 1st major cut in a broader restructuring after the collapse of merger talks with rival commerce bank a.g.
the bank announced that it will cut as many as $20000.00 jobs that's 20 percent of the workforce over the coming year as it shows its non-poor units in equities and derivatives trading rates trading zone research and the turnaround will focus on expanding its structure of finance business u.s. commercial real estate f.x. trading and credit trading and that's for the banks as it seeks to boost its profitability shares rose almost 5 percent on friday on the news of its shake up and no one is safe as c.e.o. christian sewing is reportedly considering replacing c.f.o. james. compliance has sylvie methought the future outlook for d.b. is still uncertain as it continues to hold an informal talks with u.b.s. over the idea of a mega merger to create europe's biggest financial institution. they point is having a bit of a pullback for now but it's nothing to be alarmed about we have a lot of support here our ten-k. which is an important psychological benchmark i wouldn't be too alarmed if we fall and break to $9000.00 because that would be a 35 percent correction which has been the historical norm as we look at previous
rallies so that would be a good target range to actually look for big oil. parabolic move has taken a break every once in a while to consolidate our previous support levels before moving the next leg up the leg down was that exasperated yesterday by billionaire investor mike novogratz who is probably heading bits like crazy he says that he looks to buy back in at $10000.00 and despite the pullback which really is nothing more than a technical correction but quite a still up 183 percent on a quarter to date basis the 5 day and 10 day moving averages are still trending north indicating that the path of least resistance is to the upside and now with more lead joined by cryptocurrency analyst ben swan good to have you back. so things that kind of rise this month has been really exciting for all of us we speculated that a lot of this was caused by inflows from investors who are worried about the outcome of g 20 and escalating trade tensions currency heading and even facebook libor contributed to its popularity its parabolic rise made
a lot of doubters critical of the volatility and one jetty saying that it's a fad and it's like gambling but let's take a look at some of the interesting facts about the intrinsic value of bitcoin right now when they point is still actually 40 percent below its all time highs once a toshi is worth more than 7 national fee up currencies and that includes the iranian reale the vietnamese dong the indonesian rupee among others it is also a bigger than the monetary basis of entire countries such as canada brazil and australia so despite all this evidence many doubt because as a true currency so what do you think ella take for them to realize that gold is outdated. i'm not sure what it will take for some people for some people i just don't think they'll ever quite get it right this idea of crypto currency is so foreign to them that they're never going to fully accept it but that's ok because you don't need those people in order for big calling to continue to do what it's doing them by the way agree with you i think this this correction that we're seeing
right now you know people who are already upset about it i saw some of the articles about it said see people who got in are now getting hurt again they always call it getting hurt look the bottom line is that if you go in $12000.00 just stick around and you'll be ok if you within that $9000.00 stick around you'll be ok the problem is that people want to treat this like it's flipping money where you come in at one level and you're guaranteed an increase and it doesn't work that way we should know that the bottom line is i think there are certain people who are never going to fully accept digital currency for what it is but i will say this as coin is beginning to move back just a little bit that also means as you know that all coins will probably see a big jump themselves or the other all coins may jump another 30 percent and watch those grow as well. and that's a part of the healthy kind of crypto currency economy where it's not just one coin like bitcoin everybody's getting a little love at that point and meanwhile steve forbes is also apparently advising mark zuckerberg to back the libra with gold so remind us all why this is a terrible idea. so actually i'm not sure it is
a terrible idea i think libras the terrible thing the cold not as much look i actually think mark zuckerberg says he wants to create a stable korean it's completely stable and he says he wants it back with the u.s. dollar to do that in the argument that forbes is making to him and in the letter he wrote to by the way to mark zuckerberg is a little too gushing but in this gushing letter he writes to him about how mark zuckerberg is going to brilliantly recreate all financial systems across the world as if mark zuckerberg is the one who's created the idea of crypto as if mark zuckerberg is the brainchild behind this but what he's essentially saying is if you want to truly stable coin it should be backed by a commodity like gold i actually don't disagree with that the problem is that doesn't want to be backed by gold because facebook doesn't hold gold you would need to actually hold enough gold to be able to back the crypto currency with it and that obviously is not going to be the case for facebook and the other thing that's interesting is that forbes once him to rename it from the libra to the mark and to
use that is the name of the crypto currency and he has these kind of silly reasons for why he thinks this is such a brilliant idea if you love gold and you're a fan of gold there's nothing wrong with that stay with your gold but but to try to act like it's either or either there is gold or there is and there's nothing in between i think it's just a little bit of a silly argument and then you know there's obviously a lot of excitement in the crypto space especially recently but we all share some bad actors mucking it up as well we've touched on the quadriga debacle in the funds are still missing there and it was you know speculation there's fake debts and an exit scam but now ireland based exchange bit sane apparently has entirely vanished taking almost a quarter of a 1000000 users krypto deposits with it give us the latest on that yeah yeah it's kind of shocking about 256000 users had their crypto funds taken many of them holding other great coin or ripple in their accounts a lot of them are saying on telegram that they had as much as $5000.00. one user
who says he had $150000.00 in there these guys didn't just disappear though they actually scrubbed their social media accounts linked in is gone it's just kind of insane as you said there's always bad actors out there you've got to be careful when you deal with crypto. currency analyst bans on thank you so much of a half. guys things. on thursday twitter made a huge announcement the social media giant will now hide certain political tweets from public figures archie's court correspondent sara want to has more. on thursday the san francisco based tech giant announced a new plan to flag politicians abusive tweets that violate its policies the tweets will be hidden behind a notice that reads the twitter rules about abusive behavior apply to this tweet
however twitter has determined that it may be in the public's interest for the tweet terming available the new policy took effect on thursday twitter did not name any particular politician who inspired the teenagers but the move comes after years of criticism that the social media giant has failed to be consistent in and forcing its rules allowing politicians to bypass its guidelines on abuse and harassment in the past we've allowed certain tweets that violated our rules to remain on twitter because they were in the public's interest but it wasn't clear when and how we made those determinations the new policy will only apply to any politician representing a government official running for government or being considered for a position they must have more than $100000.00 followers and have a verified twitter account but twitter said the tweets could still be removed if
they pose direct or immediate threats of violence. and or to correspondence or montevideo good joins us now in studio for more on all of this sarah we're clearly living in a new era where social media can move markets or with a lot of power break it down for well it is interesting to really see the power and influence of social media to. people's opinion especially with twitter and i we've seen this in several tweets over the years i want to take a few examples into the process now one of the more recent ones is from space x. as he tweeted i want to put it up on the screen take a look at that he tweeted that considering taking tesla private at $420.00 now this and a lot of confusion and disruption to the market look how steep it when the power of one tweet can just really rattle the markets now there are several others to follow but he was sued by the securities and exchange commission he even threatened to take his twitter account down but he actually didn't but this was just
a few months ago where this lawsuit was still. in the process of getting settled and just the power and influence of the social media even with these new policies we'll see if that changes anything but the 2nd tweet when we take a look at is kylie jenner tweeting about no longer using snapchat now this look at that stock look how it went down snapchat lost $1300000000.00 after this tweet. the big influencer we all know it's all a big celebrity has millions of followers but it's a pattern that we see here in social media and how much really power it has to influence finance so with this actually be considered a form of market manipulation i mean it really could be it could be a form of it and that's where the line kind of gets blurred where people are speaking out voicing opinions things they use things they don't and how much power and effect it has over these now in 2016 if you remember even when a.p. twitter was hacked to look at what it caused the market to do there was breaking
news that there were 2 explosions in the white house that injured president barack obama the markets reacted instantly and sharply and even when those twitter this tweet was taken down it's that active and the power that it has to do both but there are more trump and boeing in late 2016 too so i mean as we've. seen this time and time again it's a brave new turbulent world archie correspondent was or much as they all got thanks for your time thank you. that's it by this time you can catch boom bust on track t.v. channel 321 dish network channel 280 or streaming 24730 the free t.v. at channel 130 to him or as always have us up at youtube dot com slash boom bust archie see next time.
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beauty all over a little over. the. russia and the united states agreed to view all control to sound cool for a troop. trade relations as the g. 20. 2 president seemingly coming away from the summit in an upbeat. meeting was good and businesslike we discussed the whole area of issues which are of interest to russia and the united states and we had a discussion we had a great actually we had a great discussion president putin myself it was really a tremendous discussion. there's a cease fire in the trade war as well donald trump announces that the u.s. and china will be resuming talks on their dispute over tariffs and also make.