Such long bulls! This week is the bears’ turn. The markets fell hard on Tuesday right after President Donald Trump halted the House Democrats’ $2.4T virus relief proposal.
The President has publicized the conclusion on Twitter, saying,
“We made a very generous offer of $1.6 Trillion Dollars and, as usual, she [Nancy Pelosi] is not negotiating in good faith.”
Stocks drop hardly, along with Dow plummeting to 0.9% and The Nasdaq sinking to 1%.
But in the same breath, Trump pleaded with US Congress to quickly extend $25 billion in new payroll assistance to American passenger airlines who have been furloughing thousands of workers as air travel hasn’t recovered.
However, in the same breath, Trump had pleaded with the US Congress to swiftly add $25B in new payroll aid to American passenger airlines that have been licensing thousands of workers for air travel haven’t healthier yet.
The US airlines are jointly burning $5B of cash a month for passenger traffic is remaining at 30% of the 2019 levels. Meanwhile, waiting for a government decision, the major airlines will diminish their staff by at least 25% in October.
The Big Tech companies that include Amazon, Apple, Alphabet, and Facebook, who had enjoyed a bumper year, already saw that the share prices fell hard after the House Judiciary’s Antitrust Subcommittee was released a 450-page report that showed how the tech giants have been abusing their power.
The report’s recommendation makes it to the legislature; it can eventually break up parts of the companies’ trades.
“The markets have been optimistic thanks to the unprecedented stimulus from both central banks and governments globally, but there’s uncertainty circling now as governments struggle to suppress COVID,” A spokesperson from AAX, the world’s first digital asset exchange powered by the London Stock Exchange said.
Crypto’s depraved apples
The crypto markets have seen the prices fall on Tuesday, with the global market cap down to 2.1%, a $7B drop. The biggest losers were XRP down to $%, Binance to 4.4%, Polkadot 6.4%, and Chainlink to 6.5%.
The bleak outlook came after the UK’s financial regulator had announced that it was banning the crypto derivatives trading, taking effect next year.
“Significant price volatility, combined with the inherent difficulties of valuing cryptoassets reliably, places retail consumers at a high risk of suffering losses from trading crypto-derivatives. We have evidence of this happening on a significant scale,” Sheldon Mills said, the interim executive director of strategy & rivalry at the FCA.
Meanwhile, Europol has released a report on the internet organized crime, claiming that the cryptocurrencies play an essential role in cybercrime.
“Reliability, irreversibility of transactions and a perceived degree of anonymity have made cryptocurrencies the default payment method for victim-to-criminal payments in ransomware and other extortion crimes, as well as criminal-to-criminal payments on the Darkweb,” the report alleged.
“If there’s bad activity in crypto, we need to get rid of it,” Brian Brooks said, head of the US regulatory agency that supervises the nation’s banks, and he wants to resolve outstanding uncertainties about how the banks handle crypto.
Brooks is formerly the top lawyer for leading the US-based cryptocurrency exchange Coinbase; he has advocated for clarity about cryptocurrencies since becoming the acting Comptroller of the Currency, a role he assumed in April of this year.
If the US Government can’t make up its mind regarding COVID, crypto transparency will have to wait.
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