Daily Briefing - June 23, 2020

Real Vision: Finance & Investing

Real Vision

Investing, Business News, News, Business

4.1 • 1.1K Ratings

🗓️ 23 June 2020

⏱️ 32 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Senior editor Ash Bennington joins managing editor Ed Harrison to discuss the latest news in markets, macro, and coronavirus. Bennington and Harrison first analyze the breaking story about Wirecard, a German fintech company, and its implications for Germany. They also talk about how the Fed has released the animal spirits on markets, bolstered by exorbitant amounts of liquidity, and anticipate the pullback in consumption in light of a W-shaped recovery. Finally, they explain how the pandemic reasserting itself will end up strengthening the dollar and lead to a liquidity crunch. In the intro, Nick Correa explains the latest developments in the Wirecard story and provides some context around how they arrived at this point. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	It's Tuesday, June 23rd, 2020, just after market closed in New York.
0:17.0	This is the Real Vision Daily Briefing.
0:19.8	I'm Ash Bennington in New York, joined shortly by our managing editor Ed Harrison from
0:24.3	Washington DC but first Nick Correa with today's stories. Thanks Ash. Wirecard
0:30.1	AG's ex-C CEO Marcus Braun had resigned last week after news broke of 1.9 billion euros, or 2.1 billion dollars,
0:37.7	went missing from the German FinTech company.
0:40.1	Braun had turned himself in yesterday evening and is now detained by Munich prosecutors as part of an investigation into the company's accounting practices.
0:48.0	The scandal, now a national embarrassment, has led to calls from the government to enact urgent regulatory reform.
0:54.3	Currently, Wirecard is in discussions with its creditors and talking about full-fledged
1:00.6	restructuring.
1:01.6	Marcus Braun was forced to liquidate the majority of his stake in
1:04.2	Wirecard as he pledged 4.2 million shares in order to secure a 150 million-year-old loan in 2017.
1:11.2	The margin call was triggered as Wirecard stock has plunged over 80% since last Wednesday.
1:16.0	Today, Germany's finance minister Olaf Schultz said, quote,
1:19.0	auditors and regulators don't seem to have been effective here.
1:22.0	We need to quickly clarify how we have to change
1:24.7	our regulatory requirements in order to be able to monitor complex corporate networks across
1:29.8	the board, promptly and quickly."
1:31.8	End quote. Katie Schroeder, a criminal defense lawyer in Frankfurt, said, quote,
1:35.8	given the numbers, it's certainly the biggest accounting scandal in Germany.
1:39.2	You'd have to think pretty hard to find a case of such a scope, end quote. On Friday, Ed's going to be speaking to an investor who's been right on the money on this story.
1:47.4	Roddy Boyd, a past contributor who's a pioneer in uncovering corporate fraud and one who has been following the Wirecard story closely for years.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Real Vision, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Real Vision and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.