tv Boom Bust RT March 27, 2021 2:30pm-3:01pm EDT
i think. he says the blockage only adding to industry supply strains already hampered by ongoing chain bottlenecks as a result of the coronavirus pandemic the canal also a major source of income for egypt experts say the ramifications will be felt everywhere every day the canal is closed number one it means that egypt isn't getting toll money for this about $700000.00 for every vessel to go through or more importantly container ships or tankers are not delivering food fuel manufactured goods to european goods are not being exported from europe to the far east in this is going to have a massive impact on production on availability of goods in europe and in asia and while the 120 mile canal between the red sea and the mediterranean is the shortest route between asia and europe operators are now forced to reroute more than 150 ships waiting to pass through sending them on
a 2 week extended voyage around the southern tip of africa further to the domino effect a vessel stock right now also swiss gets to late before it gets out to asia that's going to take it another month before it's out there but if the vessels don't make it out to asia and time they are of course also on able to commence that next journey with cargo from asia back to europe in time which means the next journey around is going to be delayed up into europe and while the canal is also a transit point for roughly 8 percent of global natural gas the blockage will add to an already rising middle east risk premium for oil and refined products and analysts say the delays could increase shipping up to 30 percent and a pro long disruption could impact close to primarily the european market and then the cork comes out as almost like a ketchup bottle then you get both all the vessels in the queue and the additional normal vessels coming into the northern european ports at the same time. so the
longer this lasts the higher the risk that we're going to see massive congestion problems in the european ports say a week to 2 weeks from now now experts say it's a bit premature to assess the full impacts arising from the incident but they do predict that within the near term the blockage is likely to add to industry supply strains causing further delays meantime experts are investigating exactly what caused the ship to run aground reporting for boom bust trinity chavez r.t. . joining me now to go further and up on this topic is boom bust co-host and investigative journalist ben swan now ben this is the type of incident that gets more serious the longer it goes on so what else can you tell us about the efforts being made to move the ship and why is it so difficult. yes really glad that trinity had that piece ahead of time because it gave you kind of the visual of what's happening there this is a massive cargo ship we're talking about i think it's 247000 ton container ship and the way it's wedged right now it's just locked in there as some we would call it
catty corner way that is wedged in there and so we can't you can't get around it at all there are 200 vessels right now that are waiting in line to try to get around this thing and you can't instead they've actually been sent to other areas we also know though that some of these vessels are being sent to something called the bitter lakes area it's a kind of a shallow lake area and the ships are going in there as like a waiting area but it's not helping because they can't get around it so get this egypt is using 8 tug boats and excavation equipment along the banks of that canal in order to move that ship but as you said it could be a few hours 2 days or even multiple weeks and the longer it goes on obviously the greater the ripple effect that will see as a result of really the backlog that's taking place here and this truly is a bizarre incident all around a man only 1st heard about it we're going well wait a 2nd has this happened before what's going on with this ship and now we're 4 days into it now as we mentioned officials say that they are expecting to be able to get
the loan but they do admit that it could possibly take weeks what would that mean for the global economy. well obviously it's as trinity explained it's going to create more of a backlog really worldwide and we're already seeing slowdowns in terms of products making it their way to destinations around the world because of the coronavirus we've seen supply chains had already been slowed down extensively as a result of coronavirus the now you're talking about 2 things you're talking about this is one of the the major ports for really between asia and and the middle east in terms of. goods and services and also oil right boiling natural gas is the most important part of this and that's where we're probably going to see the biggest effect if you're asking where in the world is this really going to have an impact it's going to be the fact that you can't move those oil tankers through the suez canal and as a result of not being able to do that because as you know while speculation drives the price of oil not the reality of oil but speculation we'll probably see the
price of oil going up in a very short amount of time as a result of this which is of course what the oil industry wants right and it's kind of interesting when you see it work out like that you see a lot of people being hurt by this by not being able to move the supply but then at the same time there's other profiting others who are profiting off of watching that oil price go up now always and this can be the 1st time that something like this has happened so do the private companies that own these ships have any kind of contingency plans in place. well there's a contingency plan in terms of the suez canal is obviously a canal right that's connecting oceans and it's connecting seas in order to be able to make a shorter route so what's happening instead is the same company by the way that owns this particular ship it's a japanese company has already started rerouting their other ships so instead of going through the suez canal they're going around the tip of africa in order to get around from asia and over to europe so listen as some of these experts were saying
in that story the trinity had there is a backlog that will take place here because one you're having a hard time getting ships out if they do have to go around instead of through the suez canal go around the tip of africa you're talking about additional days or even weeks of time in order to be able to deliver goods and then to pick up goods and take them back so what it really comes down to is the amount of time that this particular ship sits here stuck inside the suez canal unable to move is really going to have an effect long term on what the those contingency plans are so yes it is true that these other ships can go around if they need to but that's adding as i said days or even weeks to these delivery times and for a lot of them what they'd rather do right now is just sit and wait which is about again what about $200.00 ships are doing right now they're just sitting and waiting . that betting game and i think end of this there are some who are going to be saying i told you so about their route that they ended up taking great insight as
always ben swan thank you for your time thank you. early losses we start off in russia where the mo x. is down as markets anticipated new sanctions from the us inflation concerns remain in focus with officials warning it is out its peak in the country russia also surpassed or point $5000000.00 cases of cove it 19 as the country began producing a 3rd vaccine now the shanghai composite is also down friday rally which saw the index gain 1.6 percent was not enough to make up for losses earlier in the week china's one year alone primary along with the 5 year old p.r. were left unchanged we have another red arrow in hong kong the hang seng fell into correction territory trading 10 percent lower than its $52.00 week high last month
but the index gained nearly 1.6 percent on friday shares of shalmi and great wall motor surged more than 6 and 10 percent respectively in japan the nikkei is down there dropped her earlier in the week over fears of a renewed cove at 19 lock down but rallied as the record one trillion dollar budget for the upcoming year was passed on friday the sensex is also down as india saw 1000 cases hit a 5 month high on thursday bank of america says the country's economy could overtake japan's as the world's 3rd largest by 2031 moving that prediction back by 3 years due to the global pandemic and australia we see our 1st green arrow of the week sex actually had its best week in nearly 2 months pushed up by recovering commodities and south africa the all share is also up there rand recovered from recent lows after the country's central bank announced it would keep repo rates
unchanged at 3 and a half percent london is in the green the footsie held onto momentum from asian markets on friday a rise in oil prices overnight due to the massive container ship blocking the suez canal. also help the positive trend the german dax and french kakkar in the red astra zeneca supply concerns and europe are still raising questions about a pandemic recovery as leaders warn of the start of a 3rd wave of seeing. in brazil is down but just slightly latin america's biggest economy has struggled amid the pandemic with the 2nd highest number of cases worldwide at over 12000000 and best firm blackrock is becoming more cautious of brazilian stocks as the recovery remains uncertain that in mexico the b.m.v. is in the red the country's central bank kept interest rates unchanged at 4 percent as expected which helped push up the peso while mexico's state run oil giant petro
bras took a hit after 4 executives resigned over the incoming c.e.o. now here in the u.s. the dow and the s. and p. are up while the tech heavy nasdaq is in the red fed chairman jerome powell said thursday the economy is recovering more quickly than initially expected due to stimulus measures and the ongoing vaccine rollout and finally in canada the t s x is down this week but bank of canada says it will start rolling back its buying and lending programs as the economy continues to recover a jump in crude prices helped the index claw back some losses at the end of the week moving into next week we're going to continue to look at cove it might see numbers and the prospect of economic recovery worldwide and that is your global market walk. the united states is facing
a growing shortage of semiconductor chips and the effects are being felt everywhere from smartphones to cars sparked by the ongoing trade war with china and made worse by i'm president of lockdowns many are now asking how long the shortage will last here's our tease natasha suite with a look at the issue plaguing the latest forms of technology. a semiconductor chips shortage in the u.s. it's impacting major technology based companies american businesses relied on chips from overseas for the majority of their production and the past and this is what the current history incredibly hard slowing production as a result her current. go to appear before the book you're going. to be. court. wants to grow them on the way to go but it really is for many manufacturers cut back on ship orders as cursive is declined during the height of the pandemic but as demand for vehicles
slowly resumed ordering their supplier broad was a nightmare this led to ford canceling shifts at 2 different plants the company said it could face a drop of 2 and a half $1000000000.00 because of chip shortages alone general motors in a similar predicament saying it expects a loss of $2000000000.00 in profits and just this week g.m. extended more production cuts temporarily closing its missouri and michigan plants through april nissan is also cutting back production and its domestic plant as well as the one in mexico globally the car industry purchases the recession $1000000000.00 worth of chips toyota and volkswagen both fine $4000000000.00 each on an annual basis but now some companies are hoping to lessen the u.s. is for independents intel is one of several companies looking to expand chip production within the u.s. the company investing $20000000000.00 to build 2 new factories in arizona last month biden said he is pushing for 30 $7000000000.00 in funding for chip manufacturing within the country and surely going to be signed another executive
order will help address the vulnerabilities in our supply chain across additional critical sectors of our commerce so the american people are prepared to withstand any crisis and rely on ourselves aplan samsung also saw the laser production last year both companies putting off launches of new smart phones as a result another reason the price. of chips have skyrocketed is krypto mind mean the profits for big queen mining are determined by the cryptocurrency is price competition has been on the rise as prices have recently surged above the peak of 2017 this has made chips even more desirable to buy despite becoming more scarce for major electronic companies dependent upon semiconductors while the economy is seen some rebounding in the chip shortage could take up to 2 years to replenish and in the meantime manufacturers are looking to take advantage of hiking prices for a 2nd time in under a year where porting a 4 boom bust and sweets are. time now for
a quick break but when we come back all eyes are on bitcoin as a record $6000000000.00 in options contracts expire so what does this mean for the world's most popular cryptocurrency all this gas next and as we go to break here are the numbers out the clothes. for people america no representation of god that's the problem there's nobody in government that represents people who are not part of multimillionaire lobbying who work for banks who print money for themselves. to the can tell them that unless you're printing money for yourself getting from like until the fact you have nobody
in government representing in america not a single congressperson not a single senator nobody in the white house represents you you are on your own. i knew you would buy a big lie for 10 years like we've been saying and you would have $101520000000.00 even if you start it was 5 or $6000.00. i'm going to trust him with. the words. bring you. longer. i mean you know start employing him then you can. not. i'm not. the beginning of a us must you not yet you nationally for sides. knew
all i still knew being the create the. blog the 6 all extremists all of which i don't know much. new top of that if you should get to build you i a will review. in the store and. buying me a copy of night. if you want him let him know that you can be. so what we've got to do is identify the threats that we have it's crazy for him to let it be an arms race off and spearing dramatic development only mostly i'm going to resist i don't see how that strategy will be successful very critical time to sit down and talk.
make no certain you know borders and i'm just delighted to nationalities. as a matter. of fact seen. these. you. know mary. we can do better and we should. everyone is contributing in your own way but we also know that this crisis will not go on forever the challenge is for you to respond. so many good people are helping us. it makes us feel very proud that we are in it together.
but rise a bit coin drop back to near 50000 dollars for the 1st time in 2 weeks or raising 100000000000 dollars from its market capitalization as a record 6000000000 options contracts were stuck to expire on friday so what does this mean for the world's most popular cryptocurrency and will have a lasting impact joining me now i've got our co-host christine and mason joppa c.e.o. block where solutions maison all start with you here big question has dropped back to the low fifty's range and it seems like their recent rally is losing steam where do you see it going from here in the near term. thanks for having me rachel and chrissy it's a great day to be recording today because ends up nearly 3 percent along with the rest of the market recently what we're seeing is
a nice up trend and where the year after that because i'm having event which is when the big question having cycle takes place in the amount of a quick release to market is cut half every 4 years that is typically the best year for big korean and that is the year that upper forms if we're comparing back to 2018 we're seeing that years like that there's 9 correction so what we're what we're going to see this year is a bull market we're seeing that point consolidate at nearly double its prior all time highs close at $30000.00 at the end of 2020 so we're we're seeing institutional participation this year in a lot of companies you know an ad that has or treasury overall i think the outlook for the series is a bull trend and a continued general upturn in the market yeah i know with a lot of people now talking about bitcoin everyone's watching to see exactly what happened and what these trends are currently going to look like moving forward now kristie while the market participants are enjoying the bullish run other industries
are suffering because of the inflated price the chips as demand for mining rigs surge what's happening there. well these chips are basically in all of our smart devices these days from laptops to smart phones t.v.'s cars etc and the semiconductor industry has already been struggling with supply chain destruction caused by coke in 1000 pandemic in 20192020 but even before that with the us china trade war which caused china to stock up and afford chips for the past years so big buy mining is now pretty even sure of the entire or in this. or rigs creating an additional shortage and then. einar is prompting an increased demand for more and more advanced ships as well so the short bridge and the price boom and ships is now starting to affect other industries that are relying on these very same chips so the problem is so severe now that toyota and volkswagen been forced to cut production due to shortage of chips and smartphone makers they've also delayed the launches of new device so you have ts m. c.
and samsung somewhat world's largest chip makers and they're in the main supply for tech giant such as apple and but right now production capacity for these chips have been diverted away as minor as take continues to grow big point minors demand for chips now represent a 10th of the entire sales of ts and c. which is the 3rd largest chip maker and the world and as of today dram chips are up over 60 percent in the past 3 months so while it certainly chip maker profits the short fall has wrecked havoc on the sectors previously predictable price cycles chip prices were expected to fall last year and now another 20 percent rise in consumer chip prices expected from the 2nd quarter as shortage intensifies and we certainly know that the demand is there but it is interesting to see how that supply has been impacted especially over the last 4 years in the specially when it comes to what the buy administration is going to do about it now switching gears a little bit mason despite its increasing mainstream adoption of bitcoin there are some major concerns about the crypto currencies impact on the environment so break
it down for us how much does bitcoin contribute to the world's total carbon footprint i mean is it even significant and are these fears overblown. i do think it's overblown overall on the big point only consumes about point 5 percent of the total utter c globally and that's that's estimated about 13 gigawatts 65 percent of the big quinn mining is based in china and a large portion of that you know if you're looking down down the line goes then to north america and the united states and other areas i would say a large portion of crypto miners are targeting hydro and renewable energy sources on miners are truly flocking to the lowest cost energy around the world and they possess some of those those are the most lucrative and lowest cost energy contracts and typically you'll find that where you have an abundant supply of power and not enough demand to consume that power some miners are taking energy that would be otherwise wasted and consuming it on a really good use case look at is natural gas in the states they're actually
flaring excess natural gas so miners are taking that which actually helps a carbon footprint is when you flare natural gas it really increases carbon emissions and in general overall miners have operational flexibility so they have off peak and curtailment agreements with with states and energy providers and cities around the world and they're willing to turn off their energy during demand spikes and they actually help stabilize the grade and balance network so overall you know my take is. impact is minimalized and they're actually contributing to the to the overall energy grid in a positive way interesting and that's also notable to consider a special when it comes to a lot of those critics out there who automatically want to look at the environment now kristie i want to bring up an interesting person who is talking about bitcoin we're seeing it get increasingly more a validation on wall street right now but the latest convert seems to be george soros the man who broke the bank of england of the soros fund management what is
his take on it. well this is really exciting because soros is considered a titan in the industry and when he makes moves others follow so it's really cool to hear the sources starting to put some real money and real weight and to the industry so sources see i said that their view on big point has changed recently and it's no longer in french asset due to there's a complete debasement of the u.s. over the past year the u.s. dollar money supply has increased by 25 percent in the past year alone so an inflection point is coming as a result of inflation so it really goes to show how far back when has come in the last decade as wall street begins to realize the true value of i and this past month soros joined a $200000000.00 investment into points for ny and y d g which is a provider of technology and investment solutions for big quite so i'm i.d.a.g. will be working on bitcoin related strategic initiatives that was for additional institutional adoption so you have life insurance annuities property casualty insurers now all in the aggregate of more than
a $1000000000.00 of direct and direct point exposure so by. and as we see them get on board we're going to see an additional wave of institutional adoption much stronger than what we saw in 2020. points to consider here kristie i and mason japa thank you both so much for your time. thanks for having me. that is all for now you can catch boom bust on demand by downloading the portable t.v. app for your apple or android device was the very next time and as always don't forget to question more.
always be polite never engage with a negative a good or confrontational. don't get into any conversation or start answering questions just ask for an attorney. to survive and tear a geisha if you're scared stiff. definitely don't want to be going to try to jump ship one cup. you're more likely to walk free if you're rich. or if you're poor and. you've got 2 eyes and 2 ears and one mouth. so you should be seen in here and a whole lot more than you're saying if you don't take that advice easy going to dig
yourself up all. americans love by and homed. this was a fundamental part of how our political leadership and. our country at large understood the bargain you get a hope and then you know rebel right as the things you don't revolt if you have a stake in the system. and think about the longer deeper history housings men in the united states not just that old question of the american dream but the bigger question of who the dream is for. is you'll be a reflection of reality. in
a world transformed. what will make you feel safe. isolation little community. are you going the right way or are you being led. directly to. what is true what is free. in the world corrupted you need to descend. to join us in the depths. or a maybe in the shallows. i'm going to. walk. across the progress bringing reviewers or true longer. i mean you know that employment in the.
beyond i'm not stupid i'm not. a piece kid. in the beginning of a us must do nothing at all you naturally for sides. can bore you to knew all understood it i still mean you've no regrets he created a. blog of 6 all extremists all of which i don't know much. new top of that if you should get to build you i a will review. in the store and for. me a copy of night. work and let him know that you can be born in the.
the u.k. and america see a massive rise in attacks on asian people reflecting on horrific global scapegoating the community for the pandemic. if you litigation racism has been such a common thing for so long just. been. a top french minister cries forward interference over the funding of a huge. getting cash from the city council and. has brought in to do with growing global rules criminalizing into course without explicit approval. we're trying to use technology to protect women instead of tea.