In the world corrupted you need to descend. To join us in the depths. For a mate in the shallowness. This is catching a round the world and covering all aspects of business and how it affects you im christiane and im british born washington heres what we have on deck today as u. S. Markets are surging following the signing of the phase one trade deal between the United States and china the water markets around the globe are reacting and what can we expect in the market as we approach phase 2 negotiators to do walk into. Were trading is all here to dig into the details. On new developments in the sector as a Major Players are making moves in the field bringing up to speed with our analysis we Welcome International bankers returning miles give us an outlook on the regulations of the space we have done much to get to the lets get to it. While the m. S. C. I. World and next and the u. S. Markets are at record highs following the signing of the phase one trade deal between china and the us most analysts do not attribute the rally to this much ado about nothing agreement instead this equity rally is mainly driven by the Central Banks policy and its constant money pumped. Everybody assumes rightly so in my view that the Central Banks around the world or going to print money as long as is necessary the japanese have said they will the europeans the english you know the Federal Reserve i mean this is madness were all going to pay a horrible price some day but in the meantime theres a lot of fun for a lot of people. And while the trade deal provided some measure relief there werent any positive surprises for the market it only provided a psychological relief for the market temporarily calming the volatility in asia however the nikkei and flat the shanghai composite fell half a percent and in the all his press interview he did not characterize this as a quote groundbreaking move moment instead he summed it up as to what weve been saying all along it help to alleviate the current tensions in trade friction and eliminate market uncertainty it is to stabilize expectations and enhance confidence over in europe and also didnt react to President Trump self promotion the dax and the footsie traded down and the cac was virtually unchanged likewise the us markets continue to rally were also not predicated on this trade agreement but rather on the back of Strong Bank Earnings coming out of Morgan Stanley Goldman Sachs and j. P. Morgan. And now with more on the Market Reactions we bring in t. J. Walk ins director of stocks at Simpler Trading so that was extremely anticlimactic after all this drama all this hype after dragging this out for over a year and a half now the Market Reaction was crickets so is phase 2 going to be the same thing or the markets learn now after phase one that nothing ever really changes. Well there was a bit in the market but a bit of a bump in the market anyway it could have been with the banks and financial and stuff like that but overall it has alleviated some tensions and generally were happy about it there has been a lot of chaos surrounding the trade war and trade tensions and this is one step that has been telegraphed by the trumpet ministration for a few months and so far it happened with our january 16th signing so you know were were fairly ok with this and im curious to see where phase 2 does go they were talking quite a bit of big words during that ceremony yesterday and now its part of phase one china continues to open up its markets its markets know our chinese financial is to. Able actually cope with foreign competition at this time. Yeah i dont see any reason why they wouldnt its not like theyre a 3rd world country coming into a 1st world although theyve had some experience they have a Financial System theyre doing just fine if anything they should bring a little bit more out there and i think that they are up for the task and can do just fine as competition stiffens and they get more out there. So we are seeing kind of a Global Market melt up right now and 6 cellaring at a pace of the central bank cant really restrain bridgewaters the Largest Hedge Fund in the world issued a starting a report that as a result of the coming inflation surge and the ballooning us budgets the status of the us dollar as a World Reserve currency could be threatened what do you think about that. That sounds like a whole lot of doom and gloom honestly im not sure what other currency would be used i mean the dollar is all around the world most countries really prefer it and it is the the main currency that everybody uses and so i just dont see where were looking at is trying to replace that one thing the bridgewater did say is that they see a rise in gold and i definitely agree that in fact a simpler trade in myself weve been directing people to start looking into gold and gold related products as a way to kind of hedge but to have some defensive plays to combat against inflation but what about countries such as russia and china and india who are actively taking the u. S. Dollar out of their currency reserves rotation theyre actually starting to decrease it from over 30 percent of their portfolio down to less than 20 and theyve been doing that for the big cap for them but they are happy 2019 and continue to do so for him to trade and settle their trade in their own National Currency whether its the ruble the r. And b. Or in india with their currency. It seems to me that a bad might be more of a political situation how were saying america 1st they want to maybe go back and say hey wed like to strengthen our own economy and give a little bit more to our own people and say this is our country this is what were going to do and we dont need to necessarily rely or. Divvy up everything in american dollars so i think it comes more from a different aspect as opposed to more of an economical one like that you know to continue on to another trade kind of situation that were in here the us said it also just passed the us embassy a deal on thursday reply. The 26 year old nafta how is the market digesting this news and is it making any changes over the north american markets here. So far were going to have to just wait and see how things kind of change in as these rules and how the agreements and new trade talks go were going to have to just give a little bit more time to see how that actually functions Companies Need time to adjust you know Business Plans need to adjust the other thing is we kind of need to figure out whats actually in this thing you know a lot of people argue that well the u. S. Embassy is just a redone ok im sure there are some differences i got to dig through that thing and really see what what the changes are but i know that trump in the trumpet ministration really have been. A big proponent of it and id like to see what some of those differences are but so far id say lets go ahead and in them so far the markets are doing well with it and all of this is great for president optically but one of the big issues with the u. S. Embassy as well as the u. S. Tied craig name it its all them down to enforcement this has always been like the central issues surrounding this how are they coping with that. For some and is always the case for any kind of law or rule or a trade agreement i mean you think about all the things that were arguing about in the country you know if we talk about immigration well you know it doesnt matter if we put rules and laws on the books if nobodys in forcing it and so it really does come down to an important factor of weve got to stick to these things its on the books we need to enforce it and i think that the trumpet ministration generally has been pretty strong about enforcing things in the laying down the law and sticking to it so if they come out with new rules i think that theres no reason to doubt that they wouldnt be strong about enforcing them to you walk ins dr stock thats simply trying thank you so much for your insight. Thank you. Electric vehicle maker tesla is planning to build a design and Research Center in china to create what they characterize as quote chinese style and quote vehicles the company made the announcement by their official we had to count writing in order to achieve a shift of made in china to design in china tesla c. E. O. Elon musk has proposed a very cool thing set up a design and Research Center in china for the post so we chat was a recruitment call of sorts asking for applications from designers and other staff by the 1st of february along with the post tesla included design drawings that could indicate what theyre looking for in the near future now at this time it is unclear where this facility would be located and when it would be good again designing tesla vehicles last week while celebrating his 1st public delivery event for model 3 vehicles made in china musk said the company will also design an electric car in china intended for a Global Market. Pay 200000000. 00 for north. And i start up that specializes in bringing intelligence to Smart Devices apple is now on an acquisition spree to make up for lost ground in a Key Technology area. Runs Machine Learning on edge devices that those are smart appliances that operate beyond the reach of traditional Cloud Data Centers that handle most of the processing now this has become an important aspect in ai as it allows the data to be kept on the device rather than in the cloud a very important differentiation as apple competes with google and facebooks offerings this Technology Reduces the network demands caused by and allows the application to run even if it loses connection to the cloud apple has been on a choir for an increasing amount a Smaller Companies in the past 2 years ever since john sheehan and the former head of search and ai at google. In the space other acquisitions in the space include laser like dr silk lads lattice data. And terry. Now kristie this is actually quite a fascinating because we were just talking about this off the air yesterday about the fact that siri was purchased about 10 years ago for 200000000. 00 by apple and now thats actually kind of become one of their flagship products in its kind of a i but its really a personal of say the Voice Assistant Style Technology but could this be the next big thing that is really a flagship product for apple i think it really is because right now they are losing market share in the in their Smartphone Technology area so right now i think they are branching more to smarter appliances and once they have this Edge Computing technology on edge devices they will basically be able to control your own home imagine Edge Computing on your smartphone or so much of what Silicon Valley referenced and especially when youre not really a reference is specially when youre not actually using the cloud to do this computing it also could have helped with privacy as well so thats something to really keep in mind here so its time now for a quick break but here is ill start with the space expanding at a breakneck pace the cryptocurrency field is seeing some new Major Players move into the sector we break down the latest issues facing cryptocurrency and what the future of regulation holds for the state if in tech as we go to break here the numbers of the close. Thank. You. And were going to fulfill the repeated purposes probably to the people. You know weve all bots beat you to. Now you want to work. No. More you are coming coming coming. On a space flight you literally leave all your problems behind you fly high and above everyone and everything and then you see any and all borderlines want to disappear you see that our planet is not as were taught in schools with Different Countries marked in different colors separate from one another you see that our planet earth is just another albeit bigger International Space station on a mission in the fastness of space just like the i. S. A. s. Digital payments is becoming mainstream nearly 22 years since pay pal started to disrupt the way money gets transferred after 22 years Digital Payments has finally outpaced traditional cash and checks the Federal Reserve. At the number of checks payments and 20000 felons below the number of automated clearinghouse debit transfers for the 1st time ever Online Shopping now has made mobile payments like ben momar popular but with the rise official payments privacy and security are now problems and those are starting to crop up now shopping and transacting online could expose a customers personal information such as Online Shopping activities purchases and even card information for the most part the u. S. Privacy laws do not limit the personal information institutions can collect about a customer and what they can do with that data that means that businesses can use bits and pieces of your personal data to put together a complete profile about you your habits spending trends your credit worthiness preferences your make a chanst your family and household this in turn will paint a picture of your lifetime value to the business which they will then carefully target to extract every bit out before selling your profile to the next business. And the chairman of the u. S. Commodity Futures Trading Commission says bitcoin the theory of our commodities but the classification of ripple still up in the air theyre going to view with the chatter earlier this week see if you see chair he says tarbert said are right now because in an ether are the 2 that we think fall under our jurisdiction now when asked about the status of ripple see if you see chief added his organization has been working with the securities and Exchange Commission over the last year to figure out which falls in what box meanwhile the former head of the c f t C J Christopher John carlo known as crypto dad if for his support of crypto currencies is launching a think tank to push the idea of digitizing the u. S. Dollar giancarlo who left his post as chairman of the c f t c last year says the nonprofit Digital Dollar Foundation will investigate converting the u. S. Dollar into a fully electronic currency using Block Chain Technology so with all of this i think we need to do a bit of a crypto classification one o one here kristie. Because that i like to look at you as one of our key experts in this space so. This is been an issue with the crypto space for a long time so you see says that things are securities unless we say theyre not securities now that the f. T. C. Chair says because even if theyre in the other commodities but ripple well it could be a security it could in fact be a commodity so is crypto a commodity is it a security or is it something altogether different well i think its really unfair to blanket all of crypto currencies under the blanket term of security until its proven otherwise unless its like have a trial by error a kind of basis i think this is really unfair for the entire industry and it cost stagnate the entire industry because security laws are complicated and theyre very expensive and most of these companies they start to i. C. A. O. Are imo whatever the new fundraising method is nowadays in order not only to not to purposely circumvent regulation but rather because at the fish and con a cost basis for that sufficient to file for registration under security laws that take hundreds of thousands of dollars most mainly what science cant really afford and now if were playing if were playing devils advocate here on the whole commodities versus securities idea now i know you would venture to me previously that its hard to say its a commodity because its not like oil or gas but i look at it as like a precious metal thats used in our cell phones today right so those may not have a whole other lot of their uses but their use for electronics could we look at the block chain as kind of a commodity because this is a technology that may be used in every aspect of our life in the near future i mean it certainly is more of a commodity than a security but i would actually argue that the entire cut the space as a whole should be considered a different Asset Classes and thats actually what japan is doing and theyre doing a really good job out that they have their board that regulate security they have a board that regulates monies and then they create the f. S. A. Who now regulates cryptocurrency its considered an entirely different asset class and the reason why i say is is because if you look at. Portfolio managers traders the people who use the stop the most in their portfolios they separated to stocks bonds securitized asses real estate and they have a completely separate division for crypto currency simply because it has a different rest profile a different return profile and also a different way of trading with different instruments so because of that i think it should be classified as a different as a cost because its also unrelated and uncorrelated to the other broader assets within the market is this when it comes to the us i mean is that japan is so far ahead of his obviously generally there are more tech centric and they understand the new technology and they implement a faster we see that with robotics but is it us situation where were kind of lagging behind is that a lot of our government so big that its hard to kind of implement these things i would say one aspect is because they are lazy so thats why theyre trying to fit cryptocurrency a new asset class into their existing infrastructure the other reason is because they are threatened by crypto currency because the and the technology doesnt factor when the entire feel system that the u. S. Hold so dear because having the u. S. Dollar as a World Reserve currency gives the u. S. Tremendous power and block cryptocurrency as a whole threatens that entire ecosystem that theyve built the country on the this is very interesting conversation as we can generally talk about this all day but lets bring in our legal perspective which is that were going to bring in our friend and International Regulatory attorney miles edward whos who is in new york miles thanks so much for joining us i want to start off by picking your great regulatory mind here were do we still where do you stand on the whole securities versus commodities distinction when it comes to cryptocurrency. Well actually its both and so if you stand back and you look at what the f. C. C. Says yes he says bitcoin not a security its replaceable currency but in certain circumstances if its a token on a platform its a security if its part of Asset Management program as christie says. Security if its in a private hedge Fund Security so theyre taking facts and circumstances test now if you look at what the see if t. C. Says much more pragmatic see if t. C. Says bitcoin its a commodity crypto currency its a commodity its traded like a commodity it represents a fungible asset and actually its a contract and for me personally its more like not like a precious metal as as you were speaking about silver or gold to me its more like 4 x. Its more like a foreign currency because thats what it actually is it represents a value and to me its traded like a foreign currency like the yen or the door each mark or the british pound and it should be regulated by the see who has minimal oversight over those markets i want to buy the distinction class of even a utility token because legally there is a very real distinction between a you tell you token versus an asset backed token versus a currency token. Oh absolutely and when we look at it we have crypto currencies we have crypto securities and we have crypto commodities and what youre going to find is that certain regulators are going to come in so the c f. T. C. Says crypto commodities or mine in the s. C. C. Says crypto securities are mine and finn said which is part of the u. S. Department of treasury says its muddy its a currency so im going to regulate it and theyve actually done some some great improvements and regulating it so its actually going to be divided and categorized within itself and miles i want to kind of piggyback on what the last 3 or chrystia here why do regulators in the u. S. And really elsewhere where they are cracked down to have such a hard time figure out how to how to classify and really how to deal with crypto currency. In the u. S. Specifically you know you say in like 4 different organizations are dealing with something thats kind of in a similar sector should we not be looking at the possibility of doing what japan does which is to create a whole new organization to deal with crypto currency so that way its all kind of held together oh absolutely and when we look at it you know our securities laws go back to the 1930 s. It was never even contemplated that crypto currency would exist and so we also have to do is we have to look at our legislation and i know in 2020 there is a very large piece of legislation the crypto can currency legislation act which will look at these items so the 1st thing is we have a very old structure for regulating any types of securities secondly you know were just not as well educated as our european and asian colleagues are as far as what it is its always been considered exotic and esoteric and securities regulators in the United States need to become more comfortable with it and understand exactly what it is and i think because theres an International Aspect to it. Theyre somewhat intimidated by it and they dont understand it completely but i agree with you there is a steep learning curve for us regulators but we also have to make sure that any regulations we have contract and now i also believe that there should be a sofer Regulatory Organization such as the n. S. A. Or finra specifically for those involved in the crypto currency. Market place in space because the only individuals and entities who can best regulate this industry are the people who are involved in it themselves and as i guess spoke about a former the f. T. C. Chief is that advocating for the digitizing of the u. S. Currency so what do you make of the regulatory hurdles here and how important is that to have a former regulator on board for this push. Well i mean having any form or regulator definitely credential wise is a process but tremendous hurdles i mean chris yeah i think you mentioned it i mean were on the u. S. Petro dollar 60 percent of the worlds transactions happen based on the u. S. Dollar so 21000000. 00 outstanding bitcoins cannot in any way you know replace right Paper Currency or u. S. Currency itself in fact that was the case each bitcoin would be worth around 400 1000. 00 so there is a real disconnect with that also what about privacy now big coin has been has what it up so theres privacy theres security and of course what i always say how are you going to tax it because bitcoin has always been known as the anonymous currency and we saw from our history with silk road and the dark web its always been used for the very nefarious transactions so i think its great that were going in this direction and china is experimenting with that right but its a really long road to get to where we need to be and i think it appears that i think that some of the u. S. Concern is that theres some trying to replace the u. S. Dollar and thats why theyre so concerned about crypto currency as a whole International Regulatory attorney miles edwards thank you so much for your time today. Thank you. Ever since louis bhutan bought of tiffanys last november and has set its sights on becoming a jewelry powerhouse high end jewelry is becoming a hefty slice of his portfolio as it presently represents the highest growth category for louis its growing ambition to become one of the top 5 jory players in the market is no secret especially now after it just bought a 1758. 00 carat diamond from botswana now this diamond is the 2nd largest diamond found in a century name the swallow botswana or rare find movie bhutan declined to disclose a price to pay for the swell but as a call the 1108. 00 karen they wrote sold for 53000000. 00 in 2016 this diamond is presently kept under high security in louisville tons plus a vendor location where it will be presented to clients during the Fashion Shows in paris next week this is a high risk purchase for louis as the quality of the stone is still unknown this is a rough cut diamond and for those of you who watch the movie uncut gems establishing the value of an uncut gemstone is more of an art than a science. Now thats it for this time you can catch it boom bust on directv channel 321 dish network 280 or streaming 247 on twitter t. V. The free t. V. s counties and united or you can check it out at youtube dot com slash see you next time. Descriptions sound appetising even so the owners so how to choose just absolute industry is telling us what to feed our pets. More based on what they want sounds than was necessarily good for the journey. May not be you still see this people believe. We have animals that have you know diabetes in arthritis they have auto immune disorders allergies we are actually creating these problems and its a huge epidemic of problems all of them i believe can be linked to very simple problem of diet and some dog owners so heartbreaking stories about their pets streets the larger corporations are not very interested in proving or disproving the value of their food because theyre already making it a 1000000000. 00 on it and theres no reason to do that research. Bad guys are Survival Guide books they say heres how it all going to start safely at least. Be sure its close there are you going to get it back. Oh heck no. Repatriations forget the rest of 70 years. Belittle separate kaiser or. I. I i i. Why they mocked the 75th anniversary of the soviet unions liberation of warsaw from nazi germany thousands were sent to death camps or lost their lives in a city that suffered years of occupation during the 2nd world war. The pentagon reacts to accusations that washington has routinely americas longest war made by the u. S. The top u. S. Official overseeing afghanistans reconstruction. Long bronze its. Partners washingtons hope that germany confounded caved into trumps the right to impose on european states if they dont quit the 2050 nuclear deal
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