Transcription
Holy flippity flip flop flapping smokes everyone. Trump just pulled the trigger and the markets are going absolutely haywire right now. We have just got some breaking news and this is the reason why I'm going live to tell you exactly what is going on in the markets today. We got a huge shock with Trump saying the ceasefire between the US and Iran is officially over. Oil is surging right now. We're seeing gold silver selloff. We're seeing a lot of the uh stock futures indices sell off and we're seeing absolute mayhem in the market.
So, in today's video, I'm going to break down exactly what just happened, why it is officially over now, and what this means for the markets going forward. So, go ahead and type one in the chat if the stream is working well. And we're going to go and get into today's video to cover the news, the facts, and the data.
Well, okay. First things first is this everyone. Oil surges 6% after Trump says ceasefire with Iran is over. So that's right. We've had a lot of back and forth. We've had a lot of, you know, there is a deal. You know, they're about to put the pen on the paper. The deal is about to be signed any second to, you know, just a complete um 180 flip. It's now officially over with the latest escalations. And again, I'm not going to go too in depth on the geopolitics and the politics of all this. So, we're going to talk about how this is affecting you, how this will affect the markets.
So, first I'll go ahead and quickly play this clip here.
>> Is the ceasefire over? IS IS THE CEASEFIRE DONE? IS theou dead?
>> It's a very interesting question to me. I think it's over. I don't want to deal with them anymore. They're scum, you know.
So, there we have it. out of, you know, out of his own mouth, it is over. The clip goes a bit longer, but again, we're going to focus on what's happening in the market. So, look at this. I'll bring up the chart here. This is crude oil WTI. And as we can see, once this announcement uh was made about 2 hours ago, we saw a massive massive spike in the oil markets. And I thought there was something very unusual happening in the oil markets because the price of oil actually dropped below the price of what uh what where it was at when the conflict started. But the straight of Himu still had huge volatility and there was still conflicts breaking out in the straight of Himu. So it didn't make sense for it to break below what it was before the conflict started. And to me I think that is because there's huge manipulation in the paper price of oil. We also saw a lot of countries releasing their strategic uh reserves to try to keep the price down. But if this keeps on going on, which I keep warning people about, it's not going to get any better anytime soon. I think it's only going to get worse.
Now, we got uh more reactions uh here in the markets, but I'll go ahead and bring up his comments. He says, "To me, I think it's over. I don't want to deal with them anymore. As far as I'm concerned, it's over." Now, Trump's comments Trump's comments came after the US military conducted a series of powerful strikes against Iran in retaliation for three commercial vessels transition uh transiting the straight of Hermoose coming under attack on Tuesday and Washington warned at the time that Tran would face heavy costs for targeting commercial shipping.
Now, the corresponding jump in oil and yields and the likelihood that the Fed will be forced to take a more hawkish stance with inflation with inflation here to stay. He said in the email the 10-year US Treasury was trading five basis points higher and it did nearly approach 4.6%. So again, this is going to affect all of us. Your petrol prices in Australia, what you call in in America, your gas prices are going to go up. This then flows into an input cost into all businesses. Groceries that are being transportated transported around on trucks is going to make things much more expensive. And like they say, this is going to mean the Federal Reserve, the Reserve Bank of Australia, they're going to have to keep on lifting interest rates or at the least they're not going to be able to start cutting rates when they wanted to.
So, I'll go ahead and bring this up [snorts] another chart here and I'll move myself so you can see it. Um, we saw this is a 10-year US Treasury. We can see here once this uh news broke, it spiked and spiked quick. I'll also go ahead and bring up gold and silver. We can see gold and silver is selling off because the dollar is going up. People are selling their gold also to cover margin calls on their stocks. Gold is down around 2.3% and silver 4.3%.
Now when we go into the futures markets, we can see the Dow's down around 600 points and the NASDAQ's down around 400 points. So the markets are very very worried because things were meant to be, you know, fixed by now. They'll telling us, don't worry, you know, this is just going to be a short conflict. It'll be over in a couple of months. But we're seeing here things are not getting any better. And this couldn't happen at a worse time because inflation is already running hot and we're seeing huge overvaluations in the AI stock market bubble which I'll show you some very very interesting news of what's going on with that and again this will affect all of us because a lot of the jobs that are you know being cut right now are being affected by AI and a lot of all the cost of everything going up is affecting everyone massively and the cost of living is becoming unbearable.
So look at this. Nvidia's $1 trillion slide sends valuation to pre- AI boom levels. So Nvidia's, you know, shedded $1 trillion worth of valuation from the top. So a lot of people are realizing what I'm about to show you in a minute. Not only that, but Microsoft lost 613 billion. And Route sets up its worst months since 2000. Because again, we see this every single time when there's a revolutionary technology created. All the CEOs, all the investors, they get over optimistic and they start bidding up these prices and they get severely overvalued. It doesn't mean this technology won't eventually change the world. It's just not ready right now because look what's actually happening with AI and with these companies. [snorts]
So Nvidia VP says AI costs are far more than human employees. That's right. It was meant to, you know, come out, change the world and make it much cheaper for these companies to use the technology. But because of the compute costs are going up so much, it's now actually more expensive than employees, humans. A [snorts] 2024 MIT study supports this view. Researchers looked at what it would take for AI systems to match human performance across different jobs and found that automation made financial sense in only 23% of roles that rely heavily on visual tasks. In the other 77% of cases, keeping human workers was still the more cost effective option. That's right, AI is not ready yet. There are also examples of AI making costly errors. In one case, an engineer said an AI tool wiped out his entire database and network.
Now, tech layoffs are on the rise. So, as companies increase AI spending, layoffs across the tech industry have been rising. Data from layoff tracker layoffs.fyi show that more than 92,000 tech workers have already lost their jobs this year, spanning nearly 100 companies. That pace is much faster than last year when there was 120,000 um that occurred over the entire year. So we're only halfway through the year. We've had 92,000 layoffs, but I think this is about to reverse as companies realize that one, it's much more expensive and two, it is not as reliable.
Now look at this. Employers who laid off workers citing AI are already starting to regret it again because they brought into this AI hype that it can do everything. But I use AI sometimes and the amount of times it gets things wrong is shocking and it just pretends that it's right and you just say, "Hey, that's not right." They go, "Oh, whoops. Whoops. Sorry about that." So, the automaker Ford is reportedly rehiring hundreds of experienced human engineers to work on quality issues that automated systems couldn't address.
Now, Commonwealth Bank of Australia and IBM are also refocusing on human capital after making layoffs while investing in artificial intelligence technology. And making employees redundant while using more AI may not necessarily offer the best route for business growth. Endless says that's right. Because AI can pretty much only do 75 to 90% of the job, but it still needs a human to put in the fin the the final touches. So, it is simply not ready for mass production. And what that means for the stock market is all these investors that were paying crazy valuations thinking it was going to replace human workers in the next couple of years. Well, I think they're about to get a reality check. So, according to a report, 39% of business leaders made employees redundant due to AI uh deployment. However, among that number, 55% admit this was a wrong decision about those redundancies that were made.
And look what else is happening in the job market. So job seekers are giving up. Labor force participation rate falls to lowest in 50 years outside of the co era. So people are absolutely giving up because of how bad the jobs market is and because even if they work, you know, as hard as they can, they still can't afford a house and they still can't afford to have a good lifestyle. So June's drop in the unemployment rate was because of an exodus of workers from the labor force. So this is why you can't just look at the headline figure. The labor force participation rate which measures the working age population of those either employed or looking for a job fell to 61.5% the lowest since March 2021 according to the Bureau of Labor Statistics. Excluding the co era market a jobs market it was the lowest participation rate since June 1976. And the labor force, look at this. This is absolutely shocking. It fell by 720,000 people in June. So that is absolutely insane. How many people in America are leaving the labor force because even if they work their butt off full-time, they're still not affording a good lifestyle. They can still barely cover the rent, the utilities, the groceries, etc.
So again everyone, for those that are just joining the stream, oil has surged over 6% after Trump says the ceasefire is over. There's no more deals going on. There's no more negotiations, at least for now. Who knows? If the market keeps falling, I wouldn't be surprised if all of a sudden on Friday, they make an announcement saying, "No, the negotiations are back on." Because there's been huge amounts of manipulation in the market. Like for example, Trump made more than 1 billion from crypto in his first year back in office. when you know he pumped his uh memecoin Trumpcoin whereas $45 it fell to $1.50 over 95% and he also made 500 million in income from world liberty financial a cryptocurrency firm founded by his own sons the children of his special envoy uh Steve Witoff. So there's lots of manipulation happening in the markets. I think we're going to see more and more volatility. We're seeing pretty much everything sell off today. We're seeing interest rates skyrocket.
So, what I think is really going to happen is stagflation, people. That's when you have high inflation and you have the unemployment rate go up. Now, the reason again why I just showed you the official unemployment rate isn't going up is it's because people are leaving the labor market altogether. So, you're definitely going to want to build cash on the sidelines. Watch this space because things are going to get very, very volatile. But everyone, what do you think about all this? Let me know down below. You're awesome. I'll see you all in the next video.