Youre watching al jazeera, these are the top stories this our, the 2022 faith football world. Camp is just a day away and favor boss gianni in ventana. Is holding a Media Briefing jo, harm in ventana earlier addressed several critiques that fee for and cut her face over the past few months, including the treatment of migrant workers. He says both parties care about the work is involved in the tournament, who is actually carrying about the workers who he for thus would us the woke up thus and to be fair to him, cut out thus as well. Malaysias general elections are underway. Vote is the choosing from at 945 candidates. The poles expected to be the tightest since independence more than 60 years ago. For me, you as president , donald trump, is he down to the decision to appoint a special counsel who will oversee investigations into his handling of classified documents. One time war crimes Prosecutor Jack Smith will also delayed a probe into trumps. 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Photos show the 2 hand in hand inspecting the launch of the countrys largest ballistic missile. All right, those are the headlines. Im emily angry. The news continues here after counting the cost spiraling costs dwindling supplies. The shock is being felt around the world with the war in ukraine, triggering gas supplying uncertainty. Europeans of bracing themselves for an unprecedented winter. Al jazeera ripples on the human ghosts of the Windsor Energy crisis. I. Hello, im rob matheson, this is counting the cost on al jazeera, your weekly look at the world of business and economics. This week its been called criptos Lehman Brothers moment. And the collapse of the f t x empire has shaken the crypto currency market. So can the crisis be confined on, on investors losing trust in crypto . Also this week, a Tech Industry layoffs for he is reviving memories of the stock market crash 22 years ago. But why are firms cutting down jobs and is at the end of the pandemic . Boom, plus will the warning you train help or hinder world wide efforts to shift from fossil fuels to Renewable Energy . Ah, f t x has been considered one of the safest and most reliable exchanges of a free wheeling crypto currency industry. Which wants to bring tokens into the financial mainstream. But some bank when fried zen pock collapsed almost over night, highlighting the extreme volatility of the virtual currencies. The downfall has sent shock waves across the market and raised questions over its viability. Hes apologized, but that hasnt helped more than 1000000 creditors who are potentially now out of pocket. Well, the company was valued at 32000000000. 00 us dollar in january, but by mid november, it was filing for bankruptcy protection. After failing to secure a rescue from wyvil exchanges, f t x is now under criminal investigation in the bahamas. U. S. Federal prosecutors are also looking into the case. The crisis is brought back memories of the collapse of Lehman Brothers. Thats when the downfall of the Investment Bank sparked the 20 o 8 financial crisis. The ripple effects of f t x is collapsed, have been felt throughout a struggling crypto currency market. Billions of dollars have been withdrawn from exchanges and the prices of several digital coins have dipped. Bitcoin fell to around 16 and a half 1000. 00. It had reached a peak of more than 68000. 00 in 2021. Entire markets. Capitalization now stands at 900000000000. 00 thats done from 3 trillion just one year ago. And that follows a series of setbacks for the trip to currency industry. Now we are in made the stable coin tedder, us deep crashed and broke. Its 1. 00 to 1. 00 peg with a dollar. Almost amongst later, the Landing Platform celsius paused withdrawals, blaming extreme market conditions. Then came the bankruptcies, including one bite, 3 arrows capital. One of the most prominent crypto hedge funds in the world. Johnny has from berlin is jones good off. Hes chairman of the digital utah association. Thats the d e a. And head of Digital Assets and currencies at a tonic. Sir, good to have you were this, the collapse of f t x has seems to have sent shock waves through the industry. Why was f t eggs so important . So if people today want to buy crypt occurring, if they do go buy a trip to exchange and f t x month, one of the largest with, you know, millions of users with a 1000000000. 00 Trading Volume every day, right . So they were one of the key players. And what basically happens in the end is that f t export taking on very risky position. So they basically took the money off the clients and also the group to acid, to operate into leveraged leverage business, which in the turn out to fail, right, to turn out to provide substantial. And just, you know, 2 weeks ago the industry feared that something might going on with a few eggs and literally to the situation that more and more players withdrew their money. Right. Which basically brought them into the situation. That liquidity, you know, the grid if you wasnt there and which ultimately led to bankruptcy, filings of ex, extra, when we go, what about the people who didnt take their money out . What happens to their cash . Basically this remains to be seen, right . So its in the bankruptcy process now, so we dont know how much of the money people are back off of there. And so this remains to be, this will definitely be, you know, a step thanks for the Crypto Exchange space. And well, you know, also leads to a waiver, probably more regulation into space because this was also one of the key issues that f t x was not regulated. Understand. I wanted to ask you about that because one would think that this is going to get significant leverage to those who want to see more transparency. And perhaps more importantly, want to see more regulation. This is on the short term of Course Development about active, horrible, right. Lots of people lost money. Lots of investors lost money. But i think on the long run that can also be like a chance for crypto because it doesnt change anything off the fundamentals of a crypto. So the f t x failed failed. What governance issue of f t x. Right . So horrible Risk Management, very speaking legit. Position, but also the regulatory regulatory gap you mentioned. So we dont need regulation. We also do need more kind of a lot of regulation because its not sufficient if one countries regulating because then entities can move to other countries and those i think what we do need right now. And also, what we will see over the next years to come as a learning of the case. I dont understand particularly very much about cryptic currency. Its, its a very complex situation. And to those people like me, it would seem that this is based essentially on trust. It is on a trust that the system is actually going to work when you get 50 situations like this. Obviously, that trust gets undermined. How far do you think the ripple effects of this are going to go . Why are other exchanges going to be affected by this . So in the short term, i think they could be, the other exchanges are affected. We dont know yet. Right . So the tuition is so complicated, we dont know what, what ripple effects will come out here. But i think whats really important to understand it is really not, you know, big when, if the room be cooked are not to blame here, right . Its extra blame. Its a company to blame, so the kind of analogy i would like to give this when buyer can become bankrupt, we didnt say docs are a bad thing, right . Reset basically, you know, one company company, it made a horrible mistake, right . We also need to x, which we do you and might be off the regulation. But i think that its really important that it doesnt change any of the continental crypto. But of course, show us that we need more regulation and we also costs proper risk measures governance method inside these very, you know, important a large group to Exchange Companies as well and happy to see the setbacks in the market, particularly over the last year. I mean, the market capitalization just being done some c trillion just one year ago to 900000000000. 00. Why is it being such a challenging year overall for crypto currencies . Yeah, so we do see that we are now in a, in the market for one year as you mentioned. And we thought, you know, the market kind of specialize in now and i think the markets are going down, which i think is a logical the development. What we shouldnt forget is that this development is not specific to crypto, right . Its specific to our kind of risky as a class. So we have seen that declines in terms of tex dot, for example, that within the past year also declined in a similar size as crypto. So i think the main reason why the technical course are, you know, general macroeconomic reasons. We do see the interest increases in the us that basically down the private off as that most of the risky as of but of course, and we do also crypto specific development. You know, we have seen her and were not crash half a year ago. We now do the f t x, but generally i would say that its the macroeconomic situations about, you know, interest rate, high high inflation or the recession. Every developments that are driving down the price of, you know, not a group the channel of risk. They the big money course to be made in those risky after those risky efforts that you were talking about earlier, those risky investments which down in this case f t x. But others, one would imagine, will be taking similar risks. There is going to be a lot of pushback if there is an urgency, a sense of urgency to bring in regulation and so on. Isnt that . Yeah, i think it kind of this right. And also why i mean we have checks what was located in the bomb up. They all had an entity, but there was no regulatory standard. And what i would basically car one regarding like more regulation, s b currently be in the you in the european union. There, the Marketing Group to regulation currently negotiated, which is also about, you know, exactly regulating these things. And i think this is what we need, not just in the you, in more countries. And also on a level that is basically, you know, kind of globally coordinated even this is of course, from a political level. Its definitely, you know, quite a challenge in terms of investment. So you think that investors are going to be a lot more cautious when it comes to the companies in which they invest. As you say, its not necessarily the crypt currency itself. That is the problem. It is the management that is the problem. Executive management, but the governors, the both part of the Risk Management weve, even after the bankruptcy filing some money kind of disappeared. Which of which of course cannot be the case for such last not, not companies. And in this regard. Right. And i hope that investors not completely, you know, basically dont enter the base again because that the continental use cases about crypto that are really interesting. That basic, you know, bring p crypto can basically the to the fact that they include people to the financial sector, Financial Inclusion and you know, its, if it doesnt change any on the fundamental, i think something one should consider. And my also investors shouldnt step away because hes been market other markets where, you know, basically basically its being built. And i think this is also by people shouldnt shy away from trip them out. But of course on a regulatory side, there is definitely the need to tract. Really good to get your thoughts on. This is janice ross, thank you so much for being with us and counting the cause. Thank you very much for having me. The f t x, bankruptcy caps a series of challenges faced by Tech Companies industry founders of the morning about a looming recession. For months theyve been telling their employees to expect tough times ahead. Tech giants have long been hailed as employment havens with high salaries. But now some are making the van move of cutting thousands of jobs, while others are slowing hiring or stopping it altogether. Matter which owns facebook. Instagram on whats up is lane off more than 11000 employees from its worldwide had kind of 87000 twitter has cut about half a stuff amazon plans to cut jobs to and the list of companies trimming the workforce is growing. Its not just in the us tech start ups in asia and africa have been cutting their stuff to met a chief executive. Mcguckie was blaming the companys rapid expansion and said hes got it wrong. Invested millions of dollars in the so called met averse, pitching it as a Virtual Reality future in which people will work exercise and go to conses tech found or say the layoffs are partly because they just hire too many people, all twitches you on them ill must says his freshly acquired company could face bankruptcy. While joining us from oxford is a really little theater. Hes a professor, the Oxford Internet institute is also also the book cloud. Empires, how digital platforms are overtaking the state and how we can regain control. Really thank you very much indeed for being with us. Whats changing in the market thats forcing these layoffs that the Tech Companies . So one reason is obviously the overreach during the pandemic. So some extent, to some extent, what were seeing now is a correction. Amazon, for instance, has said that they simply hide to many people. Theyre expecting the good times to continue. And now the consumer demand is going down. And now theyre having to lay off. But another reason is the macroeconomic situation Rising Interest Rates and these are not unrelated to each other publicly listed companies are not able to raise money from the market at such favorable terms anymore. And startups that are bc funded or finding it much harder to raise funds from b c. So in order to extend their runway and make sure that they make it through to the other side of the looming recession, theyre having to cut costs. How much of this is also done to misjudgment by, on the part of the management . You said, of course, about that the, the over hiring during the pandemic. But we are used to hearing people like l. O mosque, amongst talk about make pronouncements about the state of the Tech Industry in the state of the tech in the world and almost getting it right most of the time. But this seems to be significant misstep. Whats going on . Yes, so it is significant. This is the 1st time christ met our facebook is laying off significant numbers of people in the history off the companies. So that israeli a sort of reckoning of his sorts. And you can say that with metal suddenly mr. Zocker berg, he bet the farm on the idea of metal verse. He needed to discover a new vision for his company. The facebook run into a lot of trouble around social media manipulation and so on. And so he bet the farm on the idea that in the future people will be interacting with b r goggles in members. And that is proving to be a very costly and vision. And personally, im very skeptical about it as i think are many investors. And so partly broke the problems relate to his, lets say, i dont want to say yet misjudgment, because the jury is out there. But to this is very risky, bad. And then as for mr. Must twitter and he paid at 44000000000 for a company that was not profitable. And he came out with at least one idea for increasing revenues, which was to start charging for verification. And it turned out rather predictably, some would say that in fact, that was the value of destroying proposition because it decreased trust in the platform and therefore decreased advertiser or appetite. So now hes left with trying to cut costs instead to bring revenues and costs seem to balance and hands massive layoffs of twitter. You mentioned the influence of investors there. And of course, that is key because with regard to be the rise of Interest Rates that you mentioned as well, of course, investors are going to try and find a safe haven for their cash as often as they possibly can. And the fact is, interest has raised Interest Rates that stays people into more secure investments that maybe in some way had an influence in whether or not theyre going to continue the investment in and check companies. Does that mean that we are seeing a temporary see change in levels of invest with Tech Companies or do you think this is precision something longer term . Well, suddenly, if the if and to the extent that the Interest Rates come down again, then you would expect to see reallocation and portfolios towards attack and other stocks. But on the topic of investment, i think its also relevant to note that s t x the trouble Crypto Exchange was a big investor in a lot of web 3, encrypt those startups in africa for instance. And those start out may now be finding themselves in trouble. A lot of crypt though and web 3 startups also stored their funds on s p s. And now theyre unable to access those funds and reportedly at least one african startup has had to start laying off people because of this. So the sort of crash criptos Lehman Brothers moment is also contributing to the tech lay. Im, especially in africa. It seems, it always seems certainly to those of us outside the industry that the Tech Industry was a safe haven for jobs and almost for many people at least are guaranteed path to secure employment. And decent salaries are when we again seeing some sort of change in the profile of that. Are people going to be more cautious in entering the Tech Industry . Do you think . Well, lets put this into perspective. So mad at laying off Something Like 11000 people, right. But they hired just this year, 15000 people. So by no means does this mean that tech employment is over or tech no longer provides jobs or even provides good jobs . But it does mean that perhaps the honeymoon period is over and people have to think of tag jobs a bit more like they think of any other jobs that there is a list risk of getting laid off. And the company is not your family at the company will let you go when you are no longer needed. Venetta venetta, we appreciate your being with us and ill just in a thank you very much indeed. Thank you very much. It was a pleasure rob United Nations secretary general says the world is on a highway to climate hell. Carbon emissions from fossil fuels will hit a record high this year, and scientists a warning. Its going to make it harder to limit Global Warming to 1. 00 degrees celsius and prevent the more dangerous impacts of extreme whether they want a quick shift to Renewable Energy to steal the world out of climate crisis. That would require an annual investment or more than 4 trillion dollars in clean energy by 2030 to save the planet. But the worlds leading Energy Agency expects around half of that amount to be spent every year. However, the international Energy Agency or i. E. A predicts the world wide demand for every type of fossil fuel is going to peak in the near future with a i. E. A also says the Energy Crisis caused by russias invasion of ukraine to accelerate the transition to green energy. So will it. But to discuss that, im joined now from coventry in the u. K by michael bradshaw, the professor of Global Energy at warwick Business School. So very good to be, have you with us. Thank you very much indeed. Do you think that the war in ukraine is going to have an influence on the speed at which the world moves towards away from fossil fuel than towards Renewable Energy . Yes, i think im doubtfully it will. But clearly in europe, there is a strong determination to accelerate the transition. But the questions really, im almost blue global in scope. You know, what will happen elsewhere in the world. Now they say, well, good for, you know, for the wealthy economies, youve got the, the ability to fund Large Capital investments to say theyre going to accelerate the transition. But at the moment, some of their actions are making it even more difficult for emerging the developing economies, and they may just have to rely on coal. Where and what it is, there are other economies who could actually afford to be making the transition more quickly, or perhaps in a bigger scale, but dont appear to be doing so as well. Have to realize that this is very much a long term project, which is really in its very early stages. So i think wed point to, to some economies which are preparing for a well beyond fossil fuels. Interestingly, i think some of the fossil fuel export in countries, particularly in the gulf half strategies to diversify their economies and, and prepare for net 0 future. I think for many that in the pressing matter is really about energy security, energy affordability, and worrying about the colonization is really a high on their agenda. So i think, i think there is a question of, of, in this sort of poly crisis that we talk about at the moment, there are other matters which are far more pressing. So i think its probably a case by case basis. Europe is talking about reviving Nuclear Plants and that that is something clearly that other countries are looking at as well for obvious reasons because of the limitations and fossil fuel deliveries from russia. For example, gas, of course, is that has been taking the headlines to what extent is the interest in Nuclear Energy precipitate . Do you think that there is enough bits . There are enough studies being done into the viability, the wider viability of Nuclear Energy, or are people just being pushed because theyre looking for an alternative to fossil fuels. And i think there was a lively debate about the role of nuclear in a low carbon transition, even before the current crisis. I think for some countries that you know, it is a way of delivering a large amount of low carbon electricity. Some, some economies have that and want to replace it as an agent to be the case of the u. K. France, for example, me post fukushima, some countries decided they were moving away from nikki and actually the case in germany. I think the majority of the unique population being built in the world are being built outside of europe, and then theyre being built in places like china and russia. I mean, i think the other thing to remember, of course, is at russia. Hes a major player in civil need or energy, both as a supplier of, of, of nuclear technology, but also cereals for the new can sector. So it may be a case of out of the frying pan into the fire. If you find yourself actually then being more reliant on, on countries like russia to supply you. And the other thing id say is that theres also the emergence of a small scale, multi to reactors, is alternative to the very large, very expensive nuclear pass stations that take decades to build and cost no multiple billions of dollars. And i think thats very much something in the u. K. For example, you government is trying to look at. And its also an issue in United States to build much smaller. And you can react as it can be built more quickly and on a modular basis. And therefore, less expensive, then you can as part of the mix and maybe looking at a different type of nuclear in the future. I mean, scientists been wanting, its going to be hard to limit the increase in temperatures to be 1. 5 degree celsius limit that has been talked about. And, and yet that were doing quite an investment of about 4 trillion dollars to be made by about 2030. But so far, apparently only half of that has been spent. Are we reaching a point where the governments have been showing some sort of initiative in there in order to, to base basically demonstrate theyre doing something. But there might be a weakness of it if you like that they, they might reach a point where theyre not prepared to make the level of investment that is really needed. Its not just about governments. Obviously there are, there are variations in nature of economies around the world, and there are many economies where the government, the state controls the economy and they can make long Term Investments and long term commitments elsewhere. You know, its a question really of, of government providing the context and trying to encourage the private sector to make necessary investments. I think many, many, many governments are making the right noises. They may have upgraded their n d c with the cult framework. They have an ambitious plans to achieve at 0 and were really meeting that crunch point where plans are not enough. I think there are plenty of paper transitions out there. But what we need to see is, is actually real money getting behind developing new technologies projects. But also investing at scale in the Current Technology that we have the i is always telling us actually we have the Technology Today to achievement 0. Its a matter of investment. So unfortunately, against the backdrop of a current crisis, Energy Crisis through crisis cost of living crisis and the potential of a global recession, you know, money is hard to find. So i think there really does need to be an open conversation or frank conversation about the role that government must play, but how the government can actually in many and says free up that far that, that thats private investment and also foreign investment. How do we get money into the developing and emerging economies as well . I think the time for talking and promises is over. We really stop got to start to deliver and it may be the getting behind the transition is a way in which Government Support the economy and individuals and companies out of the current crisis, like bradshaws professional Global Energy at water Business School and u. K. So we appreciate your time. Thank you very much indeed. Thank you. And that is our show for this week. But remember, you can get in touch with via the hash tag agent to see if you do or thompson. Email address is tied to the call side. Ology 0 dot net, but theres more for you online dollars a year dot com slash ctc. Thats going to take you straight to a page, which is individual reports linked an entire episode catch up on. But thats it for this edition of tons of the cost on robots and the whole team. Thanks for joining us. The news news ah. Ah, with britains beloved curry houses are in crisis 2 in the don is shut down every week. Use a bricks, financial drive, and the pad in 1. 00 oh, 1. 00 east investigates on out you 0 Generation School meets premier League LegendVincent Company to discuss the importance of leadership and representation. And most of it starts in a pyramid representation is rides that the rush will follow and travel to julia to discover how fool played a key role in shaping the country. From its struggle for liberation to the 2900 protest. The political reform generation football episode on al jazeera, its a simple act, applying a flag, but in the occupied westbank reading the palestinian flag could get you shot or arrested after the also a ports of the 900 ninetys between the Palestine Liberation Organization and israel bound on the palestinian flag was listed, but on the ground its becoming much harder to express. Any type of support for the palestinian call. One day there are no palestinian flag. Then next. Yes, the rates are filled with them that they need like to your neck by young men who are not even born with these really government for the delay or the palestinian flag illegal. Ah, this is al jazeera