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tv   Boom Bust  RT  July 13, 2021 9:30am-10:01am EDT

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this is your media, a reflection of reality in a world transformed what will make you feel safe for the tycer lation whole community. are you going the right way or are you being that somewhere? direct? what is true? what is faith? in the world corrupted, you need to defend the so join us in the depths will remain in the shallows. ah, in the the
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boom, but the one business show you can support them in branch aboard and i'm rachel watkins in washington. coming up reports are things like dance coach hitchcock, the i p o on hold indefinitely over concerns about data security risk voice by the chinese government. we'll take a look. 2 at aging, track down on company is going public in the us. and in other news, robin hood is facing everything from federal, fine to criticism and read it as it files you go public. we'll discuss how all the pressure fans impact the popular app moving forward. and later trade between the you can, you is picking up the fight post wrecked the concert. we'll go over the numbers and see whether the trend will let we have a fact. so today, let's dive right in we leave the program with by dance, the company behind social media giant, tick tock, shelving its plans for i appeal amid scrutiny in china,
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the beijing based social media giant last valued at $180000000000.00 in a funding round in december had been weighing an initial public offering of all or some of his businesses in the us or hong kong. instead, the company is found or decided that it would be better to wait. joining us out, discuss our pool, but co host spend swan and christy i. ben, i'm going to start with the big question. why is bite dance making this move to pull back these plans? yeah, i think there's a couple of big reasons for the biggest is that china has this regulator that's essentially stepping up and saying that they're going to be new rules. if you're a company that has over a 1000000 users, which obviously tick tock. far beyond that, then you're going to be required to go through additional regulatory approval in order to be able to list your company as an ip. no, and this is not just a byte, dance, exclusive, tick tock, exclusive rule. this isn't a new crack down essentially on these companies,
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because the idea is that if you're going to sell off your u. s. and your hong kong based, or ip, or excuse me, your us and hong kong based parts of your business, which is what by dance was looking at doing that other countries, other nations may be able to compromise the data that's within the app. the funny thing about this decision by chinese regulators is they're arguing essentially the same thing that the u. s. government was arguing about tick tock over here that china can access the data. and so remember back a year ago, trump wanted to force the sell of take talk to microsoft and walmart. and so instead what we're seeing is the chinese doing the exact same thing. same where we want to make sure that the day is not compromised by the country. you're selling the i p o in. and therefore we're going to put new rules on. it is interesting to see how not china is kind of getting their hand at being able to talk about some of these possible security risk and concerns. and we are seeing this ongoing ongoing crackdown rather now. kristi, why are companies like ride sharing giant d,
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b and bite dance? so set on going public in the u. s. rather than say, china. well, i guess the most obvious reason is that most of these chinese, especially tech companies, they don't even qualify to list on the china exchange in the 1st place due to chinese regulation. because according to them, you have to be profitable for i believe it is for the last 3 fiscal years and actually have a net profit of over 30000000 r and b to even be considered for listing on it. so then if you look at tech companies, most tech companies don't operate that way. and if you look at the most chinese 2nd venus, such as i do seen way ball and all of those, none of them were profitable and they listed on the us exchanges. so literally, that's one of the biggest reasons america allows for tech companies to actually get capital in order for them to grow and then become profitable. they couldn't even list and trying to, regardless the market share or but possible potential. and then other reasons for companies like ali baba who actually were profitable, but still chose to list on the us exchange anyway,
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that was also due to the differences between the chinese and the u. s. exchanges in the u. s. offers voting powers that are beyond their share. so founders and management team, they can actually still keep control of the company even with less than majority shares. and that is just simply not possible in china. so that was very important for ali baba to actually maintain control of the company. and then just to put it very simply, the listing in the u. s. allows a company to be deemed international. it is better to then attract international source, the capital from the us, from europe, than to list in china, where you're getting only capital from a very small domestic and local pool. and christy, i want to follow up on that because there are a number of chinese tech firms that want to move ahead with i p o in new york. but the real question here is we're basing allow those companies to move forward. i think they will continue to allow them on a very small scale to list in new york, but it will just make it very difficult for these companies. so rather than barring all companies from listing, they're simply enacting the c a c as a, as a kind of
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a watchdog organization, kind of like a gatekeeper to try to limit the flow, as they said, because the cybersecurity, because the data sharing was what been mentioned before, if you have users over 1000000, you have to go through this very lengthy investigational process that is a direct copy from the u. s. regulations on the u. s. playbooks. so china is now on the defensive because of the continuing hostilities between the u. s. and china and because of these are very hot sectors, namely tech and finance. aging is now going to become more defensive when it comes to these overseas listing acquirements because they don't want an episode of if the u. s. if conditions actually, to cherry the us did say that, hey, we can pull all of these chinese companies off the stock of the stock exchanges and that would be extremely detrimental in the long run. for all these chinese companies does more of a defensive play for now. rather than an outright feeder, certainly those tension between the 2 countries do still remain. now then china's market regulator on saturday said it would block 10 to plan to work the countries
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talk to video games streaming sites on anti trust grounds. what happened there? yeah, you know, we talk about this quite a bit. it seems like which is this idea of anti trust coming out of china. the chinese regulators are being very serious about that. they have a mandate to say, make sure that you don't have companies that are too big and therefore is bad for consumers. in this case, the 2 companies that 10 percent would want to, to merge with essentially collectively they would control 80 percent of the entire gaming streaming market in china. and so the regulator said, nope, can't do it. you're going to be too big. and again, i, you know, it's, it's hard many times to give china, i think a lot of credit for things that it's doing because obviously they're a top down system. and if you believe in the free market as i do, it's difficult to look at that. and say, hey, you're trying to do it great. but on anti trust, i gotta say china is doing great. they are doing the right things in terms of protecting the market, protecting the consumer, and not allowing a few companies to become too big. and one thing about trying to do was they're
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being extremely consistent in the application of that they're not letting a few companies get too big and holding everyone else back. and that's an encouraging sign. they got 32nd final word i think it's very encouraging, but i do think that it's also detrimental. that's another reason why chinese companies decide to listen to us because of the complete oversight of the top down approach. yes, i, again, like ben says i, i agree with the free market and i, and unfortunately it's just a big companies tend to succeed over little companies because they have more capital, more access to, to access to capital and investment and access to talent. and that's the most exported thing when you're growing as a tech company. so unfortunately when you're big, it's easy to get bigger and it's more difficult for the small guy to then come up and compete. so i am a little, i'm a little conflicted on that. fortunately, on the one hand, it's great that they're, that they're applying this and they're applying it consistently. but on the other hand, i do believe that if you are doing well, you should and should be able to continue doing well and even better. boom bus been
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swan and chris the excellent analysis as always, thank you so much for the long awaited i p over the popular stock training. up robin hood has been surrounded by controversy to say the least from a $70000000.00 federal find you a push from the read it users that made it famous thing the world should ignore the robin hood i p o altogether. so what will this mean for the future of the newly public company? joining us now, this is michelle snyder, partner and director of training research and education for the market gauge group . now michelle robin hood was just fine $70000000.00 by wall street self regulator for widespread and significant harm to the users. the company is also under scrutiny from the c c over the practices that generate most of its revenue. so how do investors see all of this pressure right now? well, we can add to that by the way, the $12600000.00 they had to pay in restitution. what i like to call the list of
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their crimes and misdemeanors. for example, false margin information, erroneous margin calls inaccurate account balances, inaccurate options, trading risk mean stocks. they couldn't keep up with the volume. and we had that unfortunate incident where that 20 year old kid committed suicide because he thought he owed a lot more money, which really goes down to i think their biggest issue, which is customer service. so if we put that all aside, let's look at where they make money. so where does robin hood make money? first of all, they have interest on their uninvited cash. so in other words, if you don't actually invest the money, they will charge you interest on that. or you also have a subscription service called gold service. they get $5.00 a month on that one from their people and they have $30000000.00 subscribers. but their biggest way that they make money is selling order flow, and that's where a lot of the rhetoric people are extremely upset about. because in essence what
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they're doing is they're selling your order flow to institutions, which then of course, can jump ahead those trays. so if you put that all together, we have to continue to see where it's going to monetize from number one. obviously it can't get itself into too much more trouble at this point. and also just the whole trend of the trading has to continue, which means the market has space all them. if we get any kind of shift in how people are investing, that could be trouble for them. so that's really the bottom line. they had the 0 commission everybody's doing and now it's more competitive. and, and essentially, really basically they was, i said, i think the most important thing is that they cannot really sell in terms of that customer service. but you, like you said that day trading trend has to continue those retail traitors have to stay in it. and we don't know if that's going to go away when people start to have to go back to their regular life. and frankly, that's why their capital, i think on this i p o,
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right now they're also pledging to set aside 35 percent of its shares for individual investors. those retail traders that we've talked about, what kind of impact do you see this having? is there any conflict of interest in this plan for robin hood to encourage users to buy their company's stock basically on their own platform? well, it's definitely a typical because usually the retail investor does not get an opportunity to participate in an i p o. they've already res, $15600000000.00 from private investors. and they're looking to raise another $100000000.00 like you said, from their actual own customers. so essentially where you have to really understand is that there is inherent risk in buying into an i p o, especially you just said brand considering that they're making the money off of you . so now you're sort of double dipping in terms of your investment. and so i tell you just do your own diligence and expect that there could be bumps in the road before you decide to plug your money down. but on the other hand, they're growing, their user base is continuing to grow. so it could actually also turn out to be
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a good thing, you really have to understand what you're getting into. now in terms of growth. 6 you know, we've talked a lot about how these red it users really help turn robinhood into a viral sensation earlier this year with the whole mean stock grades. now it seems like there's kind of a movement to go back against robin hood and just ignore this ip all together. so is there a chance that those read it, users could have a significant impact on the company's ip? no, before it is even gotten off the ground. well, of course there is, there is a chance, but i think that i don't see that as being the major obstacle here. i think the most interesting aspect that comes out of the red it is that robin hood shelf can become a mean stock. but you know, if you look at the company, it has the least amount of barrier to entry to open account with literally within 2 minutes, you can get an account going. so if anything comes hot and they resolve the issues
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and they can put confidence back to their customer service, then i think those reddick kids won't really have much to say about what happens with the ip. no. yeah, certainly be interesting to see how long it stays on their radar. great inside, as always, michelle snyder of the market gage group. thank you so much for your time. thank you. and twitter has announced the higher of a grievance officer in india in an effort to meet new rules in the nation, falling through on a promise made in an indian court. last week, the social media giant made the announcement on its website providing contact information, and procedures for users to report violation. the indian government instituted new rules in may, which would require tech companies to act quickly on legal request to remove posts and share details on the origination of the content. now brad, it's going to be really interesting to see if this has an impact all around or if this grievance officer is sort of just a way of them following the rules that india has no set up for them. i mean, i know when it comes to a website like twitter,
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if you see something that you think violates their content policies, you try to report it, it could be days if not weeks before they even respond to you. so now it's going to be really interesting to see if this officer is able to do anything. and if it actually moves forward with getting that harmful content that violates their policies off of the platform all together. certainly something we'll keep an eye on here on the bus and time now for a quick break, but when we come back, trade between the u. k. any you is picking up. but one of the nation's biggest port is concerned summer travelers could affect the progress. we'll go over the future of post breakfast trade. that's going to break here the number that the close, the summer solutions where we focus on the solutions. not so much the problems stay
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right. we are joined by jeff booth author of the price of tomorrow. when i see black america, i think of myself. when i was growing up, like america spoke to me. when, why destroyed you did not. you said black lives matter is a movement, we are importing from america. no. nothing. if we i lived in a world where the wife lives mattered. i was not white. i like ms. newman and i wasn't new from black america. i learned how to speak back to why i bridge the people around them. now the police were at war with statistics. i'm scared that my children are going to go up in the country.
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that thing says no racism, but they're more likely to end up in the criminal justice system. then there are other fellow friends in daycare. mm. the welcome back. the construction of the nord stream to pipeline is finally almost done. that's according to the projects executive director who says it is now more than 98 percent complete and should reach 100 percent by the end of august. the pipeline which is to transport natural gas from russia. germany is expected to be fully operational by the end of this year. that's despite years of pressure from the us, including for us of sanctions against one of his closest allies, while the vitamin ministration signaled it would lift sanctions on the swiss based
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company behind the $11000000000.00 pipeline. back in may, the topic of finalizing the nordstrom to agreement between the u. s. and germany is expected to come up with president biden and chancellor merkle hold talks in washington this week. and you can export to the european union in may, rose to their highest level since october of 2019 exports to the block had fallen at the start of 2021 after breakfast officially took hold. as britain left the e u single marketing customs union. the british office for national statistics said good exit boards to the you, excluding precious metals of course, wrote the $19400000000.00 in may nearly twice. what it was in january import into the u. k. from the $27.00 nation block were also up after plunging to start the year as the global pandemic effect of traffic in the english channel. so what do these numbers mean for the future of trade for an independent britain? well, the guys, let's bring in hilary board, which is
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a board member with the british american business association and president, obstruct market consulting, l l. c. thank you so much for joining us as always, hillary. so what is the take away from this tre data? does it slower the show that that slump was really only temporary? there pleasure to be back with you brand and also rachel, a pleasure to be here. but i'm a couple of things. yes, it absolutely does. and one of the things this does, of course, is it actually thoughts all those doom and gloom predictions. and a few things i would like to practice. i'd like to mention on the bank of england's actually projected that growth in the u. k. this year will be 7.25 percent, which is the fastest growth since 1941 with re argument for world war 2. so definitely also the city of london last week, just re a claimed, it's crown as the financial capital over amsterdam. now the great data point and also lives trust, who currently is over here. she's the trade representative from the u. k. she's currently over here to negotiate a u. s. tre deal. she has now completed 68 of the 70 trade deals that the,
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the britain had with the rest of the world through the e. u. they used to be 70 now she's completed 68. we're almost back to where we were before she just completed one with norway and licks and fine. so the answer to your question is absolutely, bryan is temporary and remember, these numbers are good and that isn't. that's including coded the adjustment off the brakes. it all of the customs and all the red tape that people are whining about. so it's actually a really incredible number. while they're not wasting any time in this post world. now, at the same time, the head of britain's biggest port dover said the nation could face trade disruption as tours traffic picks up post pandemic. so what's the situation there? i mean, can they avoid the prerequisite term while we saw with 20 mile long lines moving forward? yes. right. so you're referring to cause some benefits. he's a c, e o that down and over. and he actually requested a 33000000 pounds from the british government to re structure and rebuild the whole
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facilities that to be able to adjust to all the red tape and all the things that are needed. that actually was turned down by the government and he's appealing it, but he's recognized there is a need for that because you're absolutely right. when all these tourists aren't hitting and of course where the english people want to go, they want to go abroad because they've been at home like everybody and every other nation. so i think you're going to see that in 2019 before brack set. there were all, before, all the things have happened now it was covered as well after the breaks it vote. but before we actually had gone through things, there were 74000 coaches every day. 2.4000000 laurie's trucks in america and over 2000000 cause that's going to come back and that's why he made that appeal on the other side of the english channel. beau, in calais, john mark to so excuse the plantation is not correct, but he's ahead of calais and he spent 2 years wanting to ensure that there was those sort of lines that one the delays. and he said once one,
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lori has gone through without the proper documentation, they will know what to do the 2nd time. so i think going back to brent's question about, is this permanent, on temporary, very temporary, but yes, probably some lines. if you're planning to go in and out to the u. k. from the you, i'm not going to call everywhere across the world though with all of the vaccination checks including heathrow airport. and absolutely, when you talk about the 20 mile long, that's an extreme situation and we hope that we don't see that again. now as trade is normalizing, there's still a little bit of post breakfast, turmoil, and this time over the divorce bill. yeah. now we know a divorce is never cheap, but what exactly is going on here? which the voice of your voice you know, a couple of things here on the e. u is claiming that great person owes 47500000000 euros. whereas in the u. k, government officials are saying it's more like 35 to 39000000000 years. gosh, how surprising that both sides. once i was less a month,
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i want more. now what those numbers are, the u. k. government is saying is those were internal numbers for the e. u. and they didn't take into account all that the u. k has already paid back into the you and the previous agreement. interestingly, theresa may or johnson previous i saw, had made many agreements. she agreed to the dollar, the euro numbers that will be paid to the you were ball. as johnson came into office, he did not question those euro amounts. he did not question any of those financials . and in june the u. k. did pay 6800000000 euros already to the u. hillary. i mean, we have to look at this. there was big news over the weekend, the english football team. okay. well what we couldn't quite close the deal, but quickly are we going to be able to of this is sure to get about 30 seconds. i really think all i have to say to you rent is katasha coming out and trust me, it's telling me, but no,
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this is going to be an ongoing saga. it's not going away. just like any divorce. they're always scabs that are going to be picked and things are going to. there's always going to be issues, i think. but if you look at the fundamentals, you look at the trade deals that have been completed. i think the u. k. it's not just my opinion, the data shows that the u. k is coming out of this really well and bricks it with a deal weld on hillary ford, which i'm sorry to troll you just a little bit there, but thank you so much for your excellent invalid. i will touch it with you right. 5 . and finally, richard branson became the 1st billionaire to travel the outer space on sunday and a highly anticipated trip with the crew from his company, virgin galactic unity, 20 to reach an altitude of more than 50 miles above the earth's surface, where the crew experienced 4 minutes of weightlessness before they made their return. shipping down the beautiful stay for everybody or
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anything such suitable beautiful people all together. now it is no secret, but brands and b jeff bay those 2 space. but it appears that bases and his blue origin team were calling branson out on twitter by saying that outer space and doesn't really begin until it leaves 62 miles above the earth's surface leaping rather. oh my number. what i want to say that this launch was fascinating. it was so amazing to watch. it's different than what you see from space x and blue origin . so you don't see the normal rocket, which is awesome when they come down as well. but for it to relief from the plane take off, it's like something you see in a movie, but come on, come on blue origin. now i do want to point out that baze, those and you are both in tweet. there couldn't graduation to. richard branford, but come on blue origin, you're splitting hairs over. i think it was about 20 kilometer. i think anybody
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who's getting up that far, we could say that they, they've been pretty much been to space at this point. well, if anything, we knew that jeff a, this is going and then all of a sudden richard brands and announced that he was going to meet him there by just a few days. so i guess as his way of getting back to them from what we understand basis is still waiting on f. a approval, which according to reports, could come as soon as this week. and you know, we will be on top of that as an app. and that's it for this time you can catch boom bus on demand on the portal tv app available on smartphones, tablets, google play in the apple app store by searching portable tv, portable tv can also be downloaded on samsung smart tv, roku devices, or simply check it out portable dot tv will see next time me ah,
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shoot for simple thing a little funny. waiting a little don't go to school. well, i don't want to go see me when you have a week when you have a meeting in the room initial authentic steamy guy spelled on the on the mission and come for the was going to fail and look at me, go to me and started the script you soon as you move in to when you finish the mental complete illusion actually going on normally financial young, moody and lose you lose could you could shoot that to the lower the
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make. no, certainly no borders and the blind number t's as emerge. we don't have authority, we don't, the whole world needs to take action and be ready. not a joke. people are judge crisis, we can do better, we should be better. everyone is contributing each in your own way. but we also know that this crisis will not go on forever. the challenge is paid for the response has been massive. so many good people are helping us. it makes it feel very proud that we need together in when i
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see black america. i think part of my and i was growing, you know, like america spoke to me when, why destroyed, you did not say like, the last measure is a movement. we are importing from america. no, nothing. if we lived in a world where white lives mattered. and i was know why i like missing. and i wasn't new from black america. i learned how to speak back to one aboriginal people around them. now that the police were at war with statistics, i'm scared that my children are going to grow up in the country. that thing says no racism, but they're more likely to end up in the criminal justice system than their other fellow friends in daycare. mm.
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the claims of fake test results, no checks, and no math that the euro 2020 final, the world health organization says london football showdown was devastating for efforts to control the pandemic. a battle continues as covey. it's highly contagious. delta variance takes root worldwide, including more than 90 percent of russia's new cases, returned to a corolla virus clinic to see how health care workers are coping the hash tag as so s q. but trends on social media, us lawmakers back the caribbean countries biggest protests in depth of on official blame, their northern neighbor for meddling and its internal affairs. ah .

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