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tv   Boom Bust  RT  July 2, 2021 8:30pm-9:00pm EDT

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proves certain things in such circumstances when you have an occupation or harassment based on things that have to do with he said, she said they have to be prepared for the consequences of. 2 how much can they attach to the proof and the condition, and whether or not the other party be accused party will concede to the accusation or charges that are laid that does it for me this hour i'll be back in about 29 minutes with another full fresh look at your news. this is our international stay with us. i use
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the this is no one visit show you can't afford to miss. i'm rachel blevins in washington. coming up, robin hood says, it can't guarantee it won't cut off certain stocks from its traders. if another virus read it, frenzy takes off. we'll discuss plot. the tension between the u. s. and china continue to increase and the south trying to see. so what can we expect and could global trade be impacted as a result that the plan for updated global tax rules is set to target the world's most powerful big tech companies. will take a look at how the new fees could impact consumers. we have a lot to get to, so let's get started. it is no surprise to hear that robin hood's i. p. o is
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raising questions about the power of mean stocks to disrupt financial markets. robin hood, which claims that as democratizing finance has found us solve, caught in the middle of mean stock traders and the fcc now and it's i p o filing robin hood says it cannot assure investors that mean mania like game stop or am see won't hit again. so joining in out of those jobs are boom bus, co host benson and christy i. christy, let's start with you here. now in an i p o filing companies have to list specific risk factors for investors. why would robin hood claim that means stocks are a risk factor while it's not exactly the mean talk that are the risk factor if the trading frenzy that comes with that because it's a big risk. and that's because robin hood like all brokerages, they depend on query houses to clear their trades and execute climes trade. and these clearing houses have certain capital requirements that are raised, strained,
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curious, of increased and heightened volatility. so that's exactly what happened this past year. robin hood had actually had to shut down certain names due to the increased capital requirements. and even though they raised about $3400000000.00 in order to assure the balance sheet, it was still not enough. and they had to limit the trading of names like the game stop and the bed bath and beyond and others. so robin hood can't actually control this, it's completely dependent on the clary houses and clearing houses. they just the requirements that fluctuate daily based on volatility in the market. so if we have another flurry of this mean trading, this could actually happen again. and as a result of setting these trading limits on those names. robin hood based a lot of backlash from outreach customers who lost their money, threatened to leave the app store and do su, litigation, etc. that also received us congressional inquiries, and investigations, negative media, all of which caused reputational harm to the name. and what poses the risk in the future as a publicly listed company to affect the price of stock?
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yeah, and it's interesting to see the fact that robin hood is now admitting that this could happen again. it's just all up to those read it users who decide to come together. now ben, this is a sentence that would not make any sense if you heard it before this year. but robin hood has also listed those coin as a risk factor for perspective investors. why is that? well, there's a couple of reasons for that. a lot of the reason for it is speculation not what robin hood will tell you as well. they do allow for the training of crypt, specifically don't coin a lot of their users are buying those. and so because it goes up or down that can have a huge amount of volatility, which could be bad for their business. but there's other claims here that seem to indicate that perhaps robin hood as an entity or someone closely associated with robin hood holds a large equity stake in dough. and that goes back to the wall street journal. back in february, they did some reporting that bad time that indicated that about 20 percent of all those coin and circulation belong to one person or one entity about 30 percent of
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them. and very possibly that there may be a connection to robin hood itself that we don't know that. but here is what is a significant point here, is that the ceo of robin hood says, this is not true and that the company itself holds no major stake in any of the coin they trade. well, volunteer volatility of coin thing should not necessarily be bad for your business model unless you say, well people are buying them through us and therefore if they get hurt, that will reflect badly on us. but the thing is robin has a platform for stocks and it's a platform for crypto. so the idea of crypto going up or down, or stocks going up and down would have a large detrimental impact on the platform. i think it's highly unlikely. yeah. and it is notable to see that we're in a time where, you know, when those coin 1st started becoming popular, there weren't a lot of mainstream places that you could buy it. and all of a sudden we have robinhood and we have coin base. and those sorts of things coming along. now, christy, when we're talking about a public company here,
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should they be holding a crypto like don't coin which is so speculative in nature? well, i think any public company should be free to hold any asset they want as long as they properly disclose it, and investors are aware of the highly speculative nature of the asset. and as much as i hate those coin and bend. no. so i think no one is completely useless. however, i do applaud robin hood for jumping on the bandwagon because it was a very small move for them. the point of robin who was the game of the stock market . so it's like a video game for users. so windows point started looking like the ultimate casino game, the ultimate game of taishan of crypto currency. it was smart for robin hood to then put it on the platform to take advantage of the trend. but now a significant portion of its revenue is derived from those points. and that's dangerous because of the highly i can nature. like you said, there can be amazing applied if it goes to moon, which i doubt, but it can also come suddenly without warning. so i think it's okay for a company to hold, hold it if it wants to,
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but then investor will just have to be aware of it and the company has to trade like, especially those with name in the future. it's almost no different, like a farmer company holding a speculative asset that could be the next cancer cure. or on the other hand, a complete waste of aren't the money that never gets approved or an early stage tech on the whole, the next big app or just another does. so i don't think we should get into what should be should be asked or not. because then it's like, well what, yeah, exactly. now i could say say one more thing about that. i think there if you go back to some of the reporting, my bloomberg earlier this year, i mean there are a number of people who say that absolutely they are convinced that robin hood is the holder of the wallet that has about 30 percent of those coin in it, and the reason that's important as we get into the same kind of scenario that we get into with amazon, right. we're amazon, it's a platform. but it's also a competitor to, to many of the entities that are honest, platform, merchants that are on this platform. and that's where i think there could be a problem here. robin hood is a platform if
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a platform is also the primary holder of a large amount, almost 30 percent. and the experts who have looked at this and said almost undoubtedly belongs to robin hood. this wallet, as if that is true, and there are billions of dollars worth of dose that, that robin hood holds. they now have a kind of a conflict of interest, especially when it comes to their investors. if they do not disclose it, and so far they don't seem to be disclosing it. so the fact that they're saying it's not ours now maybe it's not. but if they're saying it's not, and it actually is, that is hugely problematic. absolutely. and especially when you're talking about all of the anti trust allegations that now congress is dealing with when it comes to amazon and facebook and google, and they're realizing that they're going to have to try to break these companies up in order to get anything done here. and yet that in itself also seems impossible. so it really is a slippery slope. and now we're watching robin hood sort of getting into that. now, why have you both here been? i also want to ask you about bitcoin. it has been ranging from
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304-023-6404 the last 12 days. and it has been difficult to pinpoint the exact reason for investors lack of appetite. right now it appears the battle between bowls and bears is pretty strong. so where does the price go from here? yeah, i'm not sure where it goes. i think the, you know, the floor is going to sit around 30000, which again, i think you're looking back over the last couple of years is a pretty great floor to have. i don't think it's going to drop much below 30000. i think they'll keep it, keep it there, but ultimately 34000 is a good test. and if you can get back up to 40 in the next couple of months, that would be great. but i don't think it'll go much be below 30. and inside, as always, been on kristi, i thank you for your time in care. thank you. as locked down or lifted and unemployment claims decline. the u. s. economy continues to make progress. the congressional budget office has now double this forecast for us economic growth in
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2021, to 7.4 percent. that will help the staggering deficit just slightly by pushing it back to 3 trillion dollars. reports. notice that after passing trillions of dollars and stimulus measures starting in 2020 congress will fall short once again this year with a deficit that equals 13.4 percent of g d p marking the largest level since 945. the market were mixed. this week, as the latest reports on economic growth love, some countries behind, while other soar to record highs. we start in russia where the mo, x finish up this week, the index rally on thursday as the nation's economic ministry, and also the countries g. d, p cru, 10.9 percent year on year in may. moving to asia, where the shanghai composite is in the red marking one of its worst performances.
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in the last few months, friday's job was driven primarily by slowing economic growth and credit concerns in hong kong. the hong sang is also down falling a dismal drop on friday. this one can be chalked up to a lagging ali baba and other names in the tech sector, having a poor showing now to japan, where the new k finished in the read. despite of late rally on friday, this tip and trading with lead primarily by the railway and real estate sectors among others. and now we turn to india where the sun sex follow the lead of the other asian markets by finishing in the rec. this despite a late week run driven primarily by the banking and pharma sectors. now over to australia where the assets finished almost flap. the index dipped early in the week on renewed fears of lock downs, but was balanced out by a rally in the gold mining sector. and then we jump across the indian ocean to south africa where they all share finished up for the week. this growth was driven
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by the nation showing a larger than expected trade surplus in may and over to europe, where the french tack and german docs are both in the green. this after rallies from frances renault in society generale, along with germany's delivery hero. and to deal with nearby and the u. k. the foot, the is up the next slide best training day in early 2 on thursday, driven largely by energy stocks now over to brazil where the eco vest is in the red, but just slightly. the index plummeted on thursday before rallying on friday. this comes as the brazilian economic ministry has raised its 2021 trade forecast for more than $15000000000.00 in mexico. the b m. v also finished slightly down this week, but optimism is growing in the nation as its factory saw their slowest pace of contraction . since the pandemic began,
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mexico's p. m. i rose to nearly 49 percent in june. just shy of breaking the gross line at 50 and to the united states were all 3 major indices finished up for the week. the s m p saw it's 6 consecutive record close on thursday. the late as rally was boosted by decreased unemployment claim. the nasdaq also saw our record high close this week as tech stocks me to come back. meanwhile, the doubt lag behind as boeing took a hit on friday in canada to t. s. x followed the lead of the us counterparts by ending the week in the green. the index jumped in early friday, trading with a rally lead primarily by the tech and finance sectors. now as we go into the next week, we will continue to keep an eye on those tech stocks and on the state of the cobra . 19 delta, the varian as it continues to spread. and that is your global market walk. the
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tensions between the us and china remain on a number of issues from the trade war to a continued military build up in the south china sea. but even though the violin ministration has promised to pursue diplomacy 1st, a new report gives insight into washington's plan to continue to target beijing in the small waterway that sees one 3rd of global maritime trade every single year. our cheese alex mile of it has the story. it was a common scene under the trump administration. japanese and american troops conducting military games together as a show of force against china. and not much has changed since trump was voted out of office under president biden. the games have continued. now, according to reports, 6 people who asked not to be identified, told the financial times, but the united states and japan had been conduct the war games like these. but top secret in the south trying to see to prepare for
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a possible conflict with china. although taiwan, the source of say, some of the joint military drills were disguised to look like disaster relief training. china has addressed the report about the chinese government and people's term resolve will safeguard national sovereignty and territorial integrity will not waiver in the face of any external pressure. we hope relevant sides will stop typing up the china threat theory and instead do more things in the interest of regional instability. asian considers taiwan and inseparable part of china as recognized by the u. s. in 1900. $7091.00 china policy, china, japan both consider an island chain into each trying to see their own, which is another area of contention. the latest report of war games seems to extend from the final years of the trump administration, at which time it is said that the u. s. in japan began to carefully claim for potential conflict with china, with exercise including everything from secret tabletop wargames to joint drills in
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the south and east trying to seize. it's believe that in the event of a war between the us and china, the united states would heavily rely on japanese air bases put in japan in china's sites. meanwhile, on another part of the globe, the u. s. lead north atlantic treaty organization is provoking another superpower. this time, russia, for the past 2 weeks, rival russian and needle fleets have had runnings in the mediterranean and the black sea. there are reports that russian bombers and heavily armed fighters took at least one mock attacker and at a british aircraft carrier in the mediterranean, while other russian plains bugged its escorts. it said that in retaliation, at least one stealth fighter from the british aircraft carrier, then circled a russian warship. the russian military launch drills in the mediterranean sea, which include warplanes, capable of carrying hypersonic missiles after tension reached new heights. in an incident with a british destroyer in the black sea, which is said to have violated russian territorial waters,
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russia has downplayed the drills as nothing more than just facts. military equipment, you confirm once again, it's high reliability. the flying personnel has had a valuable experience of working in a hot climate and above the water surface, the russian exercises in the eastern mediterranean followed the entrance of the british carrier strike group into the area. earlier this week, british and us at 35 fighters from the h. m. as queen elizabeth, who combat missions against isis. russia, which is back the government of syria in its fight against extremist groups such as isis had sent a pair of mig 31 fighter jets capable of carrying hypersonic missiles to a russian air base in syria. for the latest drills. it is the 1st time warplanes capable of carrying such missiles have been deployed outside of russia's borders. for boom, bust fine, alex, mileage time now for a quick break. but when we come back, a new set of global tax rules aimed at taking on big tack is set to go into effect
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. but how are companies like amazon and facebook reacting and how will the new taxes impact the consumer will discuss next? and as we go to break, here are the numbers at the close. the news having a found introducing and found to, to a family when a new mother is going through that process. yeah, there's certainly tremendous cause for great joy. but because it's in a beth that causes so many different changes, it's stressful at many levels. ah
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ah ah, i use the that pressure is on for the big tech companies that are expected to be the target
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of a new global minimum tax falling in agreement made by leaders from $130.00 countries this week. but not everyone is expected to be hit with the new 15 percent tax rate . in fact, report say the u. k has already scored an exemption for financial services in one that following negotiations hosted by the organization for economic cooperation and development. it will ensure financial firms such as global banks in london won't face additional taxes. so joining me now to go further in depth on this is hillary ford, which president of straw mark, i'll be hillary. it's great to have you on the show today. we know that the u. k. has been fighting for an exemption for financial services. this talks began. so how big of a win is this after a year of london fighting to keep its financial hub intact? post breakfast. well, pleasure to be back with you again. rachel, and this is a huge victory. this is great,
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is crowned london again as the financial capital. in fact, actually, london was just re announced as the financial global capital beating amsterdam for numbers of shares traded. and yes, you're absolutely right. this is a victory is a victory in particular. 6 parisha soon as the chancellor of the exchequer he's been vying for this deal. and what this does is this is an exemption, so that the u. k. banks, the city of london, and within the square mile, these banks don't have to pay taxes and other countries on all of their trades. and so it does secure the center of london as a financial center and a few things about this. so he did have to make some concessions because of course the u. s. wanted the elimination of the d s t. that's the digital services tax that the u. k. levied on tech companies. so that won't look concession that he did make you could say it was kind of a game, you know, he had to make a concession and then he got this exemption for the banks, but he did manage to secure that exemption. and indeed, it is a victory after breaks it,
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as is the crowning of london again as the financial capital. okay, so a little bit of given take there in order to get their way. now it's interesting because the stated target of this new global tax is big tech companies like amazon, facebook and google. but even though these companies have called the new rules a step forward so far and so that they will agree to follow them, is there any concern that they could still do what facebook did in australia earlier this year and just shut down their services altogether? if they don't get their way in a certain country, well, you're right about that to rachel because the i thought was back in february when facebook sort of fluids toys out of its prime. because it was looking at some, penalize penalizing legislation from the australian government. and the australians woke up one morning and that just wasn't any news feed on their facebook feed. so yes, that was a big issue. and actually google did the same thing because there was a law that was going to mandate they pay for the news that they actually would feed
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from the major services. and the australian prime minister scott morrison said we shall not be through. we shall not respond to threats. so yes, google threatened it, facebook did it, and i think yes, you're absolutely right. these forms, they want to get their way and they can pull down the services any day. there's no law that says they can't pull down the services, and i believe they will because they know the immense power and the merits reach. they have all be sort of or, well a and they can do it. yeah, it's when those big tech companies start actually flexing their power, the countries start to get a little bit concerned. now i want to touch on another thing that you mentioned, which is the u. k. agreeing to take steps to remove it's 2 per cent tax on digital services. so amazon dealt with that tax by increasing its prices that it charge for its products in the country. is it likely that these companies will treat the new taxes in a similar way by making the consumer pay more in order to pay up? oh, absolutely, rachel, that's what they do. i tested this
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a while back. what about the tax and the u. k. to see whether they the 2 percent tax, they did pass it on to the consumers. you know, i have relatives, many friends in england. and what i would do is i put in a friend's address. and if i was to order something to live in there for when i was going to be that it would be considerably more expensive than if i bought it in the u. s. and took it over with me. so yeah, i mean, you can test this. absolutely. that's what these big companies do. they just pass on the taxes to the consumer. they've done it before and they'll do it again in the future. and we're already seeing this. and you can, you can test it out yourself. so yes, you're absolutely right. this is what they will do. now before we go, do you see all of these countries actually complying? i mean, it's one thing to have 130 countries saying yes, we will do this, but do you think it's actually going to be carried out? well, i think those that have agreed to it will have to. but what's interesting of those countries that have been signed on islands so far actually happened. don't forget, they have a 12.5 percent corporate tax and this tax mandates 15 percent across the world. so they have not signed on. neither has a couple of countries in europe,
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i think i think it's hungry and it's donia. they haven't signed on because they have lower corporate tax rate. so what's gonna happen? nigeria also, i believe, and also think couple of the company countries. so only $130.00 of find on so water corporation is going to do. they're going to go to the other countries because of what we can do. interestingly enough, so shina had not find on in the 1st round and they have signed on now. so that could make a difference because the big prediction was most companies would flee and they'd go to china, but that is now being prevented. ok, well it'll certainly be interesting to see exactly what happens with this tax moving forward. excellent points to consider here. hillary ford, which thank you so much for your time. you're welcome. let's hope it's not a race in the bottom and it's been stopped. while we don't know the name of the mysterious auction winner, we do know someone else who are join. just phases is 1st flight in the space. 82 year old pilot wally funk will be aboard the blue origin space flight set for later
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this month. funk is a member of the mercury 13. the group is made up of a team of pioneering women who were training to become astern off in 1959 before their program was shut down. while she never became a nasa astronaut, she is an accomplished pilot. and the 1st female as a inspector. meanwhile, billionaire richard branson is looking to beat phases to space. his 1st flight with virgin galactic will be july 9th, just 9 days ahead of the blue origin flight. it's all about which billionaire can get their furs? well, that's all for now. you can catch boom bus on demand by downloading the portable tv app for your apple or android device. we'll see you here next time. and as always, don't forget to question more. me i
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choose. ah, is your media a reflection of reality? in a world transformed what will make you feel safe for the tycer lation whole community you going the right way? where are you being that somewhere which direction? what is truth is faith in the world corrupted you to this end? ah, to join us in the depths or remain in the shallows? ah,
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i don't think they can ride on police report on december 2020 a group of anti finishes. fill out a film crew access for 3 months. 3rd row like people, organization. it's an idea that must be opposed that channel out the gate route. they make their faces but they can say what they believe and we believe in helping our community. we believe that fascism is one of the major threats to the united states as gotten driven. this is a john to see who and teeth are really are. in order for me to exercise my 1st amendment right and say that my life matter, i have to be on to the teeth. that's all america. we can't trust the police. we can't trust the government. we can't trust anyone except ourselves to protect ourselves. in the
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the mass rallies and statues toppled canadians vent their anger after the remains of more than a 1000 children are discovered at a former indigenous residential school run by the catholic church and our 1st against so called evoke a culture president micron warned that progressive american ideas are radical, isaac france and microsoft. the law enforcement has secretly been requesting the data of its customers up to 10 times a day. i .

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