|Day's Range||54.20 - 54.20|
The head of Facebook’s blockchain project discussed the future of Libra, regulatory hurdles and improving commerce on the platform in a wide-ranging interview with Yahoo Finance reporter Brian Cheung in Washington, DC.
(Bloomberg) -- The Facebook Inc. executive responsible for the embattled Libra cryptocurrency said he doesn’t fault companies that pulled out of the project, adding that he’s optimistic more organizations will sign on despite intense opposition from politicians who seem to fear financial innovation.“I totally respect the fact that those businesses and those leaders have a responsibility to their shareholders, employees and stakeholders,” Facebook’s David Marcus said in a Tuesday interview with Bloomberg Television. “We are going to move forward. We are going to add more members.”Facebook suffered a setback in recent days when a quarter of the membership of Libra’s governing body, the Libra Association, defected from the effort amid pushback from regulators and lawmakers. Among those who stepped away are some of the association’s most high-profile names, including Visa Inc., Stripe Inc. and Mastercard Inc.Visa, Stripe and Mastercard received letters earlier this month from Democratic U.S. Senators Sherrod Brown and Brian Schatz that urged the companies to “carefully consider” how they would manage potential risks associated with Libra before proceeding with the project. Asked if he thought the letter constituted a threat from the senators to the companies, Marcus responded, "I don’t know, what did it sound like to you?" He added that such correspondence can have a chilling effect.“For these types of letters to be circulated for a thing that is an idea -- a project -- and telling people you should not explore innovation,” that is a concern, Marcus said. “The core of our financial system has not evolved much. Consumers all around the world are paying the price for it,” he added.Facebook announced its Libra plans in June, saying the digital token would give consumers a low-cost way to make payments and transfer money across the globe. Regulators and lawmakers have expressed concerns that the coin would be used to bypass money-laundering rules and might undermine central banks’ control over monetary policy.The Libra Association, which held its first meeting in Geneva this week, has said it has more than enough willing companies waiting in the wings to join the project. There are 1,500 organizations who have expressed interest in signing on, the association said, though so far only 180 of them meet the organization’s criteria.Even if new backers do sign on, Libra is still a long way from reality. Facebook executives and the Libra Association have said they won’t launch the currency until regulators in the U.S. and elsewhere have been appeased.Industry-watchers will soon get a fresh look at lawmakers’ sentiment toward Libra. Facebook Chief Executive Officer Mark Zuckerberg is slated to testify before the House Financial Services Committee next week.To contact the reporters on this story: Julie Verhage in New York at email@example.com;Kurt Wagner in San Francisco at firstname.lastname@example.orgTo contact the editors responsible for this story: Jesse Westbrook at email@example.com, Anne VanderMeyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
On CNBC's "Fast Money Halftime Report," Jon Najarian spoke about unusually high options activity in American Airlines Group Inc (NASDAQ: AAL ) and Facebook, Inc. (NASDAQ: FB ). American Airlines ...
With the Dow rising, and risks from Brexit and the trade war lower, investors are apparently ready to take a little risk. They’re selling utilities and staples and buying the market’s most risky stocks.
Senator Elizabeth Warren and former vice president Joe Biden are both critics of how Facebook runs its huge advertising business.
(Bloomberg) -- Elizabeth Warren pledged Tuesday to forgo any high-dollar fundraising events if she becomes the Democratic nominee, a move that would make her the first general-election candidate to do so and could be a high-stakes gamble against a cash-rich incumbent and a well-funded GOP apparatus.But Warren would still accept high-dollar contributions from most people who choose to write her a check without getting special access or seeing her in person. She also vowed to refuse to accept “any contributions over $200 from executives at big tech companies, big banks, private equity firms, or hedge funds.”Warren’s pledge also wouldn’t stop the party or super-PACs from raising vast amounts of money on her behalf. But it may stop wealthy donors from cutting big checks if they believe it won’t help them get access to the nominee.“When I’m the Democratic nominee for president, I’m not going to change a thing in how I run my campaign: No PACs. No federal lobbyists. No special access or call time with rich donors or big dollar fundraisers to underwrite my campaign,” Warren said in a statement released by her campaign.Still, some Democrats fear it would put the party at a huge fundraising disadvantage against President Donald Trump, who’s raking in vast sums of money from big donors by his own campaign and by super-PACs that support him.Rufus Gifford, the finance director for former President Barack Obama’s 2012 campaign, has said Warren’s earlier suggestions to avoid high-dollar events was “a colossally stupid decision” that would cost Democrats not only in the presidential contest but also in down-ballot races.But it also reflects her populist pitch to be a different kind of candidate who isn’t corrupted by special interest money, and so far she has proven adept at generating small-dollar contributions that are envied by her party rivals.A Warren campaign aide said the decision to accept no more than $200 from executives and big tech or financial firms was “retroactive” and any contributions above $200 from those people would be returned.The aide also said that big tech companies under this guideline will include Alphabet Inc., which is Google’s parent company; Amazon.com Inc., Apple Inc., Facebook Inc., Microsoft Corp., Lyft Inc. and Uber Technologies Inc.Nominees traditionally complain about the amount of time needed to raise money in a campaign and call for changes in financing presidential races, but then say they can’t “unilaterally disarm” against a well-funded opponent.Warren’s bet is that her pitch will propel her campaign in the Democratic contest -- where she’s tied with Joe Biden for the top spot -- and mobilize many of the estimated 100 million eligible voters who didn’t turn out in the 2016 election. Biden spends a significant amount of time raising money from traditional donor bases.It’s unclear how Warren’s pledge would apply to the Democratic National Committee, which can accept contributions from individuals of as much as $355,000 for various accounts, including $35,500 per donor that can be used to influence the election.And it wouldn’t apply to outside groups like super-PACs, which under federal law cannot coordinate their activities with campaigns. In 2016, Priorities USA had more than 30 individual donors who contributed more than $1 million.Obama barred contributions from registered lobbyists and corporate PACs. The DNC was outraised by its Republican counterpart in 2012 by almost $100 million, yet Obama, a popular incumbent, won overwhelmingly against rival Mitt Romney in the election. The party lifted the bans in 2016, and the DNC raised $354 million compared to $343 million for the Republican National Committee.Warren often highlights her approach to fundraising on the campaign trail, reassuring prospective voters that her campaign is fueled by them, not big dollar donors.“I don’t spend my time at fundraisers for bazilionaires and corporate executives,” Warren said during a town hall in Austin, Texas, last month. “I just don’t do it.”When asked whether her grassroots fundraising model could leave her without enough money to go against Trump in the general election, Warren was adamant that a flurry of contributions between $5 and $25 would be enough. Trump and the RNC raised $125 million in the first quarter, more than all of the major Democrats combined.“If you think it’s going to be all about scooping up a bunch of money from rich people, and then buying a bunch of TV ads, and that’s how it is someone’s gonna win, then, yeah, it looks like Trump’s doing a lot here,” Warren said recently in San Diego. “I just don’t think that’s how democracy works anymore. And I sure don’t think that’s how it’s going to work in 2020. I think it’s going to be about getting out and building a grassroots movement.”In his battle against Hillary Clinton in 2016, Bernie Sanders relied primarily on small-dollar donors to raise $235.4 million through the end of May 2016, nearly matching the $238.2 million she raised over the same period.But Clinton also had joint fundraising committees that raised millions for the Democratic National Committee and state parties.Trump is using the same arrangements to build a huge financial advantage over his rivals. His campaign and the RNC, plus a pair of joint fundraising committees that raise money for each, have taken more than $300 million through this year, according to Federal Election Commission reports and totals announced by Trump’s re-election effort.Warren has raised $60.2 million in the same period, including about $10 million she transferred from her Senate campaign.(Updates with Warren aide saying big tech donation policy was retroactive in eighth, ninth paragraphs.)To contact the reporters on this story: Sahil Kapur in Washington at firstname.lastname@example.org;Bill Allison in Washington at email@example.com;Misyrlena Egkolfopoulou in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Wendy Benjaminson at email@example.com, Max BerleyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Riksbank head Stefan Ingves says the introduction of Facebook’s Libra came “out of the blue” and forced Sweden's central bank to think hard about its work.
Apple Inc.'s (AAPL) stock plunged 18% off its highs this spring as slowing iPhone sales prompted many on Wall Street to say the company's growth days are over. Since then, Apple's shares have staged a remarkable rebound, rising 50% year to date as sales of the iPhone 11 beat expectations and amid raised forecasts for both its new entertainment streaming service and its share price. Apple's gain has created a striking divergence from its fellow FAANG stock members, all of which once were regarded as growth stocks.
Profit declines for Apple, Boeing, Exxon, Facebook and Micron led the S&P 500 to the first string of consecutive quarterly earnings declines since 2017.
Plans for Facebook’s proposed “stablecoin,” Libra, appear to be unraveling. This is hardly surprising, given growing awareness of Libra’s potential adverse consequences. If it offers anonymity to its users, Libra will become a platform for tax evasion, money laundering and terrorist finance.
Snap (SNAP) stock has been on a downtrend recently. It's dropped nearly 20% since September 25 despite the absence of any significant news.
DICK'S Sporting (DKS) witnesses strong momentum on efforts to build the best omni-channel platform as well as robust merchandising initiatives.
The risks posed by cryptocurrencies such as Facebook's Libra must be addressed before any launch, a senior Bank of France official said on Tuesday, adding to a chorus of regulatory scepticism that threatens to derail the project. Since Facebook announced its plans for Libra in June, politicians and regulators around the world have voiced concern about the project, saying it risked upsetting global financial stability, undermining users' privacy and enabling money laundering. In the latest warning shot, Denis Beau, first deputy governor of the Bank of France, said the widespread use of such cryptocurrencies was fraught with peril.
Shopify has been a huge winner in 2019. Earnings are booming and the company plans to compete more with Amazon. But with software stocks under pressure, is SHOP stock a buy now?
(Bloomberg) -- The Libra Association, which oversees a controversial cryptocurrency, was officially formed on Tuesday, and its five board members have one thing in common: close relationships with Facebook Inc. and its executives.When Facebook first announced Libra, the company was quick to point out that it wouldn’t be alone in managing such an ambitious endeavor. Instead, it hoped to be one out of as many as 100 companies controlling the new digital coin. But as regulatory pressures have mounted and early partners have been leaving the project in droves, Facebook finds itself resorting to close allies to fill the Libra leadership team.David Marcus, who heads the Facebook team that proposed Libra in the first place, is on the board. Marcus is also an investor in Xapo Inc., whose Chief Executive Officer Wences Casares is on Libra’s board as well.Joining them is Katie Haun, a general partner at Andreessen Horowitz, which was an early investor in Facebook. Another early Facebook backer, Digital Sky Technologies, is part-owned by Naspers, which has majority ownership of the parent company of PayU, the home of another Libra board member, Patrick Ellis.The fifth board member, Matthew Davie of micro-lending service Kiva, also has ties to Facebook. One of Kiva’s board members is John Muller, associate general counsel at Facebook who, like Marcus, hails from PayPal Holdings Inc.“Silicon Valley boards nearly always have these kinds of interconnections,” Aaron Brown, an investor and a writer for Bloomberg Opinion, wrote in an email. “Even someone without formal ties to Facebook will have informal and indirect ones. So no one qualified to be on the board is likely to be fully independent of Facebook. But I don’t see the board as being essentially an independent check on Facebook. I see it as a group of qualified and interested people.”The board members and the Libra Association didn’t immediately respond to requests for comment.“Yes, David is a very small investor in Xapo like dozens of other people from Silicon Valley. Yes, Wences and David are both in payments and fintech in Silicon Valley and because of that they have known each other for a few years now,” a spokesperson for Xapo said. “Neither David being a small investor in Xapo nor David and Wences having known each other for a few years compromises Wences’ independence in Libra’s board.”The Libra Association board was formed after high-profile exits by a number of companies, including Mastercard Inc., Visa Inc. and PayPal. The exodus followed scrutiny by lawmakers and regulators who have expressed concern about Facebook’s poor track record in protecting user privacy.Facebook has described Libra as a community effort. But the original group of about 28 partners has dwindled to 21 organizations that signed on as members on Tuesday. Facebook’s challenge will be to convince more companies that there is value for them in a project that has the social-media giant firmly in the driving seat, whether it intended that to be the case or not.(Corrects number of original partners in final paragraph)To contact the reporter on this story: Olga Kharif in Portland at firstname.lastname@example.orgTo contact the editors responsible for this story: Nick Turner at email@example.com, Vlad SavovFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Everyone wants a positive earnings surprise this time of year. And investors who own the right S&P; 500 stocks routinely get them.
Facebook (FB) is not deterred by notable digital payment companies disassociating themselves from Libra. Advancing efforts on Libra brings other major blockchain players under the spotlight.