to c.n.n. for dealing amongst across and how to knock self-awareness even if it didn't mean to chat up people at the start of what so for all concerned because a bumpy here. that's our global news update for this hour thanks for tuning in. america's built a prison called the world and it's the prison it's the run it runs the prison and the cost of building the prison is 0 because it's all based on everyone in the world is still willing to accept dollars trade in dollars clear through the new york fed and worship the u.s. dollar wherever you go you'll find a.t.m.'s in countries where it's the local currency and dollars right dollar is god no matter what religion you say you are around the world the fact is you pray to the u.s. dollar every day.

this is the must broadcasting around the world and covering all aspects of business and how it affects you i'm christiane and i'm british born washington here that we have on deck today 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 markets as we approach to negotiators to do walking the simpler trading is on hand to dig into the details. of just some new developments in the fed's a sector as a major players are making moves in the field bring you up to speed with our analysis of the welcome international magazine for attorney myles edwards to give us the love on the regulations and in the face we have so much to get to the let's

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 face. 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 bank policies and its constant money pumped. everybody assumes rightly so in my view that the central banks around the world are going to print money as long as is necessary the japanese has said they will the europeans the english you know the federal reserve i mean this is madness we're all going to pay a price some day but in the meantime there's a lot of fun for a lot of people. and one of the trade deal provided some measure relief there weren't 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 we've 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 didn't react to president from self promotion the dax and the footsie traded down and the cac was virtually unchanged likewise the us markets continue to rally we're 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 i want to market we actually bring in t.j. watkins director of stocks a simpler trading so that was extremely anti-climactic after all this drama all this hype of dragging this out for over a year and a half now the market reaction was crickets so is space to going to be the same

thing or that the markets learn now after phase one that nothing ever really changes. well there was a bit in the market 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 we're 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 happened with our january 16th signing so you know we're we're fairly ok with this and i'm curious to see where phase 2 does go they were talking quite a bit of big words during that ceremony yesterday and now as part of phase one china continues to open up its markets its markets are chinese financial institutions able actually cope with foreign competition at this time. yeah i don't see any reason why they wouldn't it's not like they're 3rd world country coming into a 1st world although they've had some experience they have

a financial system they're doing just fine if anything they should bring a little bit more out there and i think that they're 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 can't really restrain bridgewater's the largest hedge fund in the world issued a starting to report that as a result of the coming inflation surge and the ballooning u.s. budgets the status of the u.s. 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 i'm 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 don't see where we're 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 we've 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 they're actually starting to decrease it from over 30 percent of their portfolio down to less than 20 and they've been doing that for the big hat for them but they are happy 2019 and contained to do sell referring to trade and settle their trades in their own national currency whether it's 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 we're saying america 1st they want to maybe go back and say hey we'd 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 we're going to do and we don't 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. continue on to another trade kind of situation that we're in here the u.s. said it also just passed the u.s. embassy a deal on thursday replacing 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 we're going to have to just wait and see how things kind of change and as these rules and how the agreements and new trade talks go we're 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 what's actually in this thing you know a lot of people argue that well the u.s. embassy is just a redone ok i'm 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 and the trumpet ministration really have been. a big proponent of it and i'd like to see what some of those differences are but so far i'd say let's 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 it's all them down to enforcement this has always been like the central issues surrounding this how are they coping with that. meant as always the case for any kind of law or rule or trade agreement i mean you think about all the things that we're arguing about in the country you know if we talk about immigration well you know it doesn't matter if we put rules and laws on the books if nobody's in forcing it and so it really does come down to an important factor of we've got to stick to these things it's 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 there's no reason to doubt that they wouldn't be strong about enforcing them to you walk ins dr stock that's simply trying thank you so much for your insight. thank you it's.

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 account 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 now 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 they're 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 tesla's 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 facebook's 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 of smaller companies in the past 2 years ever since john sheehan and the former head of. search and ai at google joined the space

other acquisitions in the space include laser like dr silk lads' lattice data tool of john and terry. and 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 that's actually kind of become one of their flagship products in it's kind of a i but it's 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 similar to what silicon valley referenced especially when you're not really references specially when you're not actually using the cloud to do this computing it also could have helped with privacy as well

so that's something to really keep in mind here so it's time now for a quick break but here. 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 the future of regulation holds for the state of fin tech as we go to break here the numbers at the close. to 0.

the study just one magic bullet you could actually come up with something to talk about his baby bond talking about ways we get access capital in capitalism capitals important so we could actually have programs that actually help folks who want to do that but when you give everybody a $1000.00 i'm a poor person i'm going to consume that and if you're rich you're going to invest that equity the wealth the spirit is going to grow because you're you're not using your money to do it can so you're literally buy more crazy things and then my landlord knowing that i got a $1000.00 and you just go raise my rent so then you get your inflation going on and there. is you'll media a reflection of reality. in a world transformed. what will make you feel safe.

isolation community. are you going the right way or are you being led. what is true. is faith. in the world corrupted you need to descend. to join us in the depths. or remain in the shallow. join me every thursday on the alex salmond show and i'll be speaking to guests of the world of politics or business i'm show business i'll see you then. 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 reported that the number of checks payments in 2800 fell below the number of automated clearing house debit transfers for the 1st time ever online shopping now has made mobile payments like ben momar popular but with the rise of additional payments privacy and security are now problems and those are starting to crop up now shopping and transact online could expose a customer's personal information such as online shopping activities purchases and even card information for the most part of 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 medications 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. in the chairman of the u.s. commodity futures trading commission says big quote in a theory of our commodities but the classification of ripple is still up in the air during an interview with the chatter earlier this week c f t c chair heath tarbert said are right now because underneath there are the 2 that we think fall under our jurisdiction now when asked about the status of ripple c.f.c. chief added his or her. sation 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.s.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 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 they're not securities now to see if you see chair says bitcoin theorem 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 it's really unfair to blanket all of crypto currencies under the blanket term of security until it's proven otherwise unless it's like have a trial by air a kind of basis i think this is really unfair for the entire industry and it has stagnate the entire industry because security laws are complicated and they're 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 a law that says hundreds of thousands of dollars most mainly what science can't really afford and now if we're playing if we're playing devil's advocate here on the whole commodities versus securities idea now i know you would venture to be previously that it's hard to say it's a commodity because it's not like oil or gas but i look at it as like a precious metal that's used in. our cell phones today right so those may not have a whole other lot to 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 that's actually what japan is doing and they're doing

a really good job now that they have their board that regulates security they have a board that regulates monies and then they create the f.s.a. who now regulates cryptocurrency it's 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 risk 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 it's also unrelated and uncorrelated to the other broader assets within the market and is this when it comes to the u.s. i mean it's japan is so far ahead of his obviously generally they're they're more tech centric and they understand the new technology and they implement a faster we see that with robotics but it is the u.s. situation where we're kind of legged behind is that a lot of our government so big that it's hard to kind of implement these things i would say one aspect is because they are lazy so that's why they're trying to fit

cryptocurrency a new asset class into their existing infrastructure the other reason is because they are threatened by crypto currency because of their currency and the technology doesn't factor when the entire fiasco is done that the u.s. hold so dear because having the u.s. dollar as the world's reserve currency gives the u.s. tremendous power and block chain cryptocurrency of the whole threatens that entire ecosystem that they've built the country on this is very interesting conversation as we can generally talk about this all day but let's bring in our legal perspective with this and we're going to bring in our friend and international regulatory attorney miles edward who's who is in new york miles thanks so much for joining us i want to start off by picking your great regulatory mind here where do we still where do you stand on the whole securities versus commodities distinction when it comes to cryptocurrency. well actually it's both and so if you stand back and you look at what the f.c.c. says yes he says bitcoin not a security it's a replaceable currency but in certain circumstances if it's a token on

a platform it's a security if it's part of asset management program as christie says security if it's in a private hedge fund security so they're 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 it's a commodity crypto currency it's a commodity it's traded like a commodity represents a fungible asset and actually it's a contract and for me personally it's more like not like a precious metal as as you were speaking about silver or gold to me it's more like 4 x. it's more like a foreign currency because that's what it actually is it represents a value and to me it's 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 cost of even a utility token because legally there is a very real distinction between a utility 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 you're 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 fence which is part of the u.s. department of treasury says it's money it's a currency so i'm going to regulate it and they've actually done some some great improvements and regulating it so it's actually going to be divided and categorized within itself and miles i want to kind of piggyback on what the last thing chrystia

here is 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 and in the u.s. specifically you know you say in like 4 different organizations are dealing with something that's 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 it's 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 that crypto can currency legislation act which will look at these items so the 1st thing is is we have a very old structure for regulating any types of securities secondly you know we're

just not as well educated as our european and asian colleagues are as far as what it is it's 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 there's an international aspect to it. they're somewhat intimidated by it and they don't 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 can track and know i also believe that there should be a so for regulatory organization such as the n.s.a. or finra specifically for those involved in the crypto currency. marketplace and 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 c 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 it to have a former regulator on board for this bush well i mean having any former regulator definitely credential eyes is a process but. tremendous hurdles i mean christian i think you mentioned it i mean we're on the u.s. petro dollar 60 percent of the world's 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 $400000.00 so there is a real disconnect with that also what about privacy now big coin has been has what it up so there's privacy there's 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 it's always been used for the very nefarious transactions so i think it's great that we're going in this direction and china is experimenting with that right but it's 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 there's some trying to replace the u.s. dollar and that's why they're 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 but on bought of tiffany's last november and has set its sights on becoming a jewelry powerhouse high end jewelry is becoming a hefty slice of its portfolio as it presently represent the highest growth category for louis it's growing ambition to become one of the top 5 jewelry 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 for rare find move it on decline to disclose a price that paid for this well but as a comp the $1108.00 carolyn's lez that he they rode sold for $53000000.00 in 2016 this diamond is presently kept under high security in louisville tons plus a vin don't location where it will be presented to clients during the court or fashion shows in paris next week this is a high risk purchase for louie as the quality of the stone is still unknown the su l o is a rough cut diamond and for those of you who watch the movie uncut jan establishing the value of an uncut gemstone is more of an art than a science. now that's it for this time you can catch a boom bust on directv channel 321 dish network channel 280 or streaming 247132 t.v. the free to yak counters and the 9 or you can check out at youtube dot com slash boom bust r g c

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