|Day's Range||16.25 - 19.80|
New York Attorney General Letitia James says the antitrust investigation into Facebook now has the support of 47 attorneys general. Yahoo Finance’s Zack Guzman and Heidi Chung discuss with Former Congresswoman Nan Hayworth.
Analysts polled by Bloomberg expect SNAP to post an adjusted loss of 5 cents per share on sales of roughly $438 million. SNAP's stock is up 165% this year and Wall Street expects an additional 4 million new active users during the quarter. Yahoo Finance's Daniel Roberts, Anjalee Khemlani, and Scott Gamm discuss on YFi AM.
Markets are in the green due to optimism for upcoming earnings and a pause in the U.S.-China trade conflict. Yahoo Finance’s Jen Rogers and Heidi Chung discuss with Thornburg Investment Management’s Head of Investments Ben Kirby on how if the economy is late cycle, what this means for earnings and the Fed’s next meeting.
Facebook CEO Mark Zuckerberg says the company is increasing transparency about ads after Facebook received backlash for allowing political ads with false claims. CNET senior producer Dan Patterson joined CBSN with more on what Facebook is doing ahead of the 2020 election.
Tight controls imposed by China have resulted in the ban of several foreign social media sites, like Facebook, but how did this come about?
(Bloomberg) -- Mark Zuckerberg defended Facebook Inc.’s Libra project ahead of congressional testimony, saying the cryptocurrency won’t be launched without approval from the U.S. government.In prepared remarks for Wednesday’s hearing, he argued the company is seeking to offer an affordable solution to existing methods of sending money abroad.“People pay far too high a cost—and have to wait far too long—to send money home to their families,” wrote Zuckerberg, chief executive officer of the world’s largest social network. “The current system is failing them.”The House Financial Services Committee hearing is focused on Facebook’s impact on the financial services and housing sectors, so Libra will be a major focus. But there will likely be other questions about privacy, election ads, and Facebook’s targeted-advertising business.https://t.co/eFyzoBjPI2Plus, more background here: https://t.co/iqN6nTElDQ pic.twitter.com/QizHr0og9F— Bloomberg Crypto (@crypto) October 22, 2019 Libra has faced intense criticism from politicians and regulators. When David Marcus, the executive in charge of the project, testified before the same committee in July, one of the main concerns was Facebook’s deep involvement. That perception problem has not been lost on Zuckerberg.“This is something that needs to get built, but I understand we’re not the ideal messenger right now,” he wrote in his testimony. “We’ve faced a lot of issues over the past few years, and I’m sure people wish it was anyone but Facebook putting this idea forward.”If Facebook is prevented from building a new global cryptocurrency, tech companies in other countries like China might step in to take advantage of the opportunity, the CEO warned.“While we debate these issues, the rest of the world isn’t waiting,” he wrote. “If America doesn’t innovate, our financial leadership is not guaranteed.”The Libra Association, the new currency’s governing body, was officially created last week, which means Facebook is now just one of 21 members, each with the same voting control over important decisions. That means Zuckerberg won’t technically be able to make commitments about the currency or its rollout.“We don’t expect to be leading those efforts going forward,” Zuckerberg said in written testimony released Tuesday. “The Libra Association has been created, has a governance structure in place, and will be driving the project from now on.”Still, he stressed that Facebook will not be part of launching the Libra payments system anywhere in the world until U.S. regulators approve. “Last time I testified before Congress I talked about taking a broader view of our responsibility. That includes making sure our services are used for good and preventing harm,” he wrote.Members of the committee will have high expectations for the CEO, whose company is still very much the face of the project. One thing he will be able to discuss is how Facebook plans to integrate the new currency into its existing products, like WhatsApp and Messenger.“You’ve got a huge wealth of data that they’ve harvested from their users’ activities,” Warren Davidson, a Republican from Ohio who is on the committee, said. “Do you now mingle that same database with financial transactions?”(Update includes more details about Wednesday’s hearing, and more quotes from Zuckerberg testimony)\--With assistance from Sarah Frier.To contact the reporters on this story: Julie Verhage in New York at firstname.lastname@example.org;Kurt Wagner in San Francisco at email@example.comTo contact the editors responsible for this story: Jillian Ward at firstname.lastname@example.org, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Facebook CEO plans to tell House committee that the company will not go forward with a digital currency until U.S. regulators sign off.
(Bloomberg) -- Facebook Inc. is following other tech titans like Microsoft Corp. and Google, pledging to use its deep pockets to ease the affordable housing shortage in West Coast cities.The social media giant said Tuesday that it would commit $1 billion over the next decade to address the crisis in the San Francisco Bay Area, building as many as 20,000 new homes that are accessible to teachers, nurses, first responders and other essential workers. A quarter of the funds are earmarked for a partnership with California to construct housing on state-owned land in areas where there aren’t enough residences.“State government cannot solve housing affordability alone, we need others to join Facebook in stepping up,” California Governor Gavin Newsom said in the statement. “Progress requires partnership with the private sector and philanthropy to change the status quo and address the cost crisis our state is facing.”Newsom, who campaigned last year with the promise of building 3.5 million homes in the state to ease the shortage, has been under pressure to deliver. This month, he signed legislation that’s intended to curb rent growth. But he’s made clear that the state won’t be able to solve its problem without building many more new homes. Recent data suggests that permits for new construction have fallen this year, calling into question whether the state will be able to make progress on his goal.While researchers have said there are other barriers to construction in California, the success of Facebook and other technology companies has contributed to soaring housing costs in the San Francisco Bay Area and greater Seattle, where Microsoft is based. The firms employ tens of thousands of high earners who have bought or rented homes, leaving fewer options for poor and middle-income residents. San Mateo County, which includes Facebook’s headquarters in Menlo Park, added more than 13 jobs for every new unit of housing between 2010 and 2015, according to an analysis by Up for Growth, a group that advocates for more construction.That imbalance has contributed to a growing backlash against tech firms at the same time they’re facing tough questions about their market power, their role in spreading disinformation and their approach to user privacy. Facebook Chief Executive Mark Zuckerberg is set to appear for a public hearing before the House Financial Services Committee on Wednesday in Washington. That committee, run by Rep. Maxine Waters, a Democrat from California, oversees housing and urban development issues.“A company like Facebook wants to build all the good will that it can, and this is certainly one way to do it,” said Margaret O’Mara, a University of Washington history professor and author of “The Code: Silicon Valley and the Remaking of America.” “I’m glad that big tech companies are stepping up to address the problem, but it’s going to require much more than this.”Facebook said that $150 million of its pledge would go toward an affordable housing fund set up by the Partnership for the Bay’s Future, an organization backed by Zuckerberg and his wife Priscilla Chan. Another $25 million will go toward a teacher-housing initiative that was announced earlier this month and $350 million will serve as “additional commitments” that will be allotted to efforts that are deemed effective. The final $225 million is related to land that the company previously purchased and has zoned for housing.That’s similar to what Google is pursuing with the lion’s share of its own $1 billion pledge to build housing in the Bay Area, which was announced in June. Microsoft led the pack with a $500 million commitment to Seattle-area housing in January.(Updates with Zuckerberg testimony in the seventh paragraph; professor’s comment in the eighth.)\--With assistance from Kurt Wagner.To contact the reporter on this story: Noah Buhayar in Seattle at email@example.comTo contact the editors responsible for this story: Craig Giammona at firstname.lastname@example.org, Christine MaurusFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Facebook Chief Executive Mark Zuckerberg plans to acknowledge before Congress that Facebook is not the "ideal messenger" for its Libra cryptocurrency project, given ongoing criticism of the company. In prepared testimony made available on Tuesday, Zuckerberg plans to tell lawmakers he supports delaying Libra's launch, currently set for mid-2020, until U.S. regulatory concerns are fully addressed.
Facebook CEO Mark Zuckerberg plans to tell lawmakers that he understands Facebook is not the “ideal messenger” for its cryptocurrency project and he supports delaying Libra’s launch until regulatory concerns are addressed.
Halloween — or should we say Howl-o-ween — is going to the dogs. Americans will spend $490 million on costumes for their pets this Halloween, according to the National Retail Federation, which is more than double what they dropped to dress their dogs, cats and other critters in 2010. Sara Ochoa is one of the 29 million people getting her furbaby into costume for the occasion.
Makan Delrahim, the assistant attorney general, says effective antitrust regulation now can help prevent the need for “heavy handed government regulation of any sector down the road.”
Facebook Chief Executive Mark Zuckerberg plans to tell lawmakers that the company won't be a part of launching its Libra digital currency anywhere in the world until U.S. regulators approve it. Zuckerberg is scheduled to appear Wednesday before the House Financial Services Committee, and also says in prepared testimony that U.S. financial leadership is at risk if companies aren't allowed to innovate. "The rest of the world isn't waiting. China is moving quickly to launch similar ideas in the coming months. Libra will be backed mostly by dollars and I believe it will extend America's financial leadership as well as our democratic values and oversight around the world," he will say.
Three senators on Tuesday roll out a bill that they said would make it easier for users to leave the leading social media platforms, in a fresh sign of how Big Tech is in Washington’s crosshairs.
Facebook's announcement follows a similar commitment from Google to spend $1 billion on housing development and a $4.7 billion plan from Stanford University for housing and transportation investments.
The S&P 500 and Dow Jones indexes rose on Tuesday, as upbeat earnings reports eased concerns over the fallout from the fragile U.S.-China trade relationship, but Facebook pressured Nasdaq after the company was hit with an expanded New York-led probe. The benchmark S&P 500 index still hovered above 3,000 points, and was within striking distance of a record high hit in July, with Biogen Inc's 31% surge fueling the index.
Snap is set to report quarterly results after market close Tuesday in a report that will prove whether the company has sustained its recent improvements in user growth and monetization.