tv Business - News Deutsche Welle May 25, 2022 3:45pm-4:01pm CEST
for bitcoin and other currencies and where do they go from here? now that entire nations have pinned their economic hopes on them. and we'll go to the world economic forum and davos where social inequality is a topic, at least for some i'm chris kolber amberlynn. what with the program, social media stocks of tumble this week with meta, pinterest, twitter, and google baron company, alphabet all dropping between 5 and 24 percent. the sell off comes after snap on our snapshot issued a profit warning at the beginning of the week. the company said the macroeconomic environment has deteriorated, further and faster than anticipated. snap shares are now down 40 percent, and on track to lose $15000000000.00 and market capitalization. and they've dragged other social media firms with them this way combined. they lost more than $160000000000.00 in market value just on tuesday.
all right, here with me as my colleague good ship on a jan bell from be able to business to talk about this. she found a snap says the business environment has changed. what are the specific problems that social media companies are looking at? well, there's a lot of macro economic issues that those social media companies are looking at, which of course, other companies are looking at. we're talking about inflation. rising energy costs, supply chain disruptions which have, of course, been all around since the pandemic hit us around 2 years ago just over 2 years ago . and though the issue that also these companies are dual dealing with because they of course they get a lot of their revenue from advertising. and when advertises, don't wanna use their money for advertising because of course high energy cost means companies are spending more on energy and that's definitely going to be an issue. and then of course, also supply chain disruptions are leading to another issue. although advertises don't want to necessarily advertise the products that they don't know they'll be able to stalk or have enough of. so that's another issue that is of course,
is that they are being affected by and that's definitely eating into the bottom line. and this all doesn't sound like just a blip to sounds more like a longer lasting topic that they're being confronted with. definitely, i mean of course we also talked about the time when the social media companies have been plateauing, when it comes to numbers of users. another issue of course, and we've seen that we had met the parent company of facebook announcing earlier this year that they were getting more competition from take talks. of course, more players is also another issue, and they had a white belt of more than $200.00 and something $1000000000.00 in early february. so this definition that these companies are going to be facing going forward. they really have a lot of competition. they're competing for the same pot of money, which is of course, getting smaller and is more players around definitely more competition, more issues and the macroeconomic environment is definitely not helping to bondage and below. thank you very much. there now to some of the other global does the
stories making news. brazilian president variables and arrow says he is taking a more aggressive stance to protect the amazon forest. he signed a degree that raises finds for li logging in the rain forest and for other unauthorized activity. and signals somewhat a reversal for mr. balls in our over previously. opposed environmental fines. countries in asia worried about inflation and domestic prices are limiting or in some cases, even banning the export of certain products. india has captured sugar exports just days after stopping wheat from leaving the country. malaysia has banned chicken exports while indonesia temporarily paused. palm oil. e u ministers have agreed to suspend import duties on all ukrainian products and a bid to help the countries bad. our economy trade between the ear and ukraine has doubled since 2016 but the russian invasion in ari has weighed heavily on ukraine's
agricultural and industrial production. let's start crypto here. crypt. currencies have been causing quite a stir. last year. they had to record highs. el salvador and the central african republic adopted bitcoin as legal tender, much to the alarm of many experts they would point to the most recent crypto currency cell of this month, virtual coin, exchange platform, coin base, lost half of its stock market value within 5 days. many virtual coins saw massive declines. bitcoin, the world's most popular crypto currency, has now lost more than 55 percent of its value since reaching an all time high last november. but there are those that keep touting criptos as the future. let's get more in this from d w's ben fossil and at the world economic forum in davos, who has with m sheila warren from the crypto council for innovation. ben,
thank you, chris, of will. the war and ukraine has obviously d stabilized ukraine's economy and it's in type banking system. so how much on crypto currencies helping? well, we've seen the equivalent of that $50000000.00 flow into ukraine since the beginning of this invasion. and what i think is even more interesting than, than that is how that money was a catalyst. it was the bridge that enabled the global community politicians and others, other countries to provide more than $5.00 and $8.00. at this time. we were talking 60000000 originally, but because of this volatility on the markets, it's reduce that amount to 50000000. how, how safe is it for ukraine to be relying on that money considering the volatility? i think it's important understand as money is not really sitting, and while it's for very long, it's pretty much been deployed immediately, almost instantaneously. and so the value that it has at times donation is really the value it's having in the purchase of humanitarian items, or really crowd funding. essentially a war time defense. criptos,
especially bitcoin plunged 17 percent last month this month. 20 percent. um, when are we going to see some sort of stability because this volatility has been going on? as long as we have been talking about crypto currencies on this balcony here douglas? that's true. and i think we are seeing the cycles get a bit longer in terms of when things go up and down. and certainly the trend lines are not more than a decade of data on the price of vic coin steadily taking upwards. so i think this leaders to market correction is really a part of a much broader economic recession potential that we're entering a heard a lot of discussion about that here during this week. and others also here in the us is the ukranian prime ministers, vice prime minister. he's here at the world economic forum trying to rally crypto investors. and earlier this year, ukrainian president below mid zelinski signed an actual digital assets billed to ensure that crypto currency is recognized as an asset in ukraine even after the war . could you explain how that works?
yes, so i think this is important to understand that ukraine's taking a very strong positions in the place of his face of some countries saying we're going to ban certain kinds of activity. we're going to ban bitcoin as a payment method example that ukraine is again, quintin gum. susan is saying the opposite. they're saying this has proven to be so valuable to our citizens, our people during this critical time in our history. we want to ensure we always have access to this going forward. and only get surprising to see why that be the case. and besides the government using criptos to fund their war effort. we've also seen ukraine's largest independent be a brand ah, planning to sell known fungible tokens. and if tease to help distribute free water for humanitarian aid, could you explain that? well, that's news to me, but i can tell you that we've seen a lot of deployment of n f t 's, non federal tokens for charitable or philanthropic purposes. we've seen a lot of crowd raises around ownership. that the unique digital asset, which is what an eft he represents to say we're going to donate the process of this cause to humanitarian assistance,
to disaster relief and recovery and things like that. so really, i think it's really a creative way of generating interest, both in the brand of his beer company, but also providing resources to those in need. lastly, what would your advice be to people wanting to help ukraine in donating for crypto currencies or people just wanting to get into the crypto currency market? what sort of advice would you have for them? well, that never wanted piece advice. as always do your research. you know, it's really important to know that not all crypto currencies are the same. there are significant differences among these and it's not actually that hardening worded to kick the tires and figure out what you're getting into when it comes to support ukraine. there are several published wallet addresses that those of you who are crypto currency holders can find legitimate donated wallets that can receive this funding from you encourage you to do so because of course it's a still a dire situation. thank you very much. sheila, thank you for having me crystal back to you in the studio. thanks. then d w has been has on their speaking to sheila worn from the crypto council for innovation in davos. now,
social inequality has continued to grow globally according to a recent study by oxfam, almost half of humanity lives in poverty and depend, demik has widened the gap between the rich and poor at the world, economic forum or the powerful from politics and business come together. it is also an issue, at least for some while some meet in the well guarded congress center and davos. others are taking the railway up the mountain to be able to talk to each other undisturbed. they are the social innovators and social justice is what they're striving for. someone who has been feeding us to remain hungry. someone who has been making houses for us to remain homeless. so there's something fundamentally dull. and maybe that is a reason inequalities going. some are losing patience with those in power. those meeting here in davos who we need to address hunger, not only on the micro level,
not only on the, you know, the corporate level, but also the gasoline solution because the guy sold solution are much faster. is the respond that the problems in a while probable day still talking about the planning, we're to get it done. some of the most dedicated social innovators are being recognized for their work by the swiss shaw foundation. and they plan to bring up issues that often get little attention. we believe, i think one of the big challenges that we face of the global community is a challenge of how do we create a, just an sustainable future for everyone. a sustainability is not just about protecting our world, but it's about creating a world in which all people can live and, and she, the well being that they want for themselves and their families. they discuss hunger inequality, poverty as well as the possible solutions they want to make it clear to the global leet that just discussing problems is not enough. because a lot of them, not all of them. a lot of them see that they want to do well and to good. they say
that they're committed to the environment and equity. this is the time to show it. they should put their money where their mouth is. this is not the year to have triple digit profits at the risk of the most vulnerable. you can do. wow and do good. it's a rare appeal for more social justice here at the world economic forum in davos. and here's a reminder of the top of business story. we're all following for you at the sour social media shares and criptos falling off a cliff and recent days with markets reflecting fear over regulation and rising interest rates and billions lived out in acids value. it's all for me and the business team here in berlin for more checkout website. that's d, w dot com slash business. and of course the w news, youtube channel. we're also on facebook. i'm chris kolber on berlin. thanks for
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