Facebook to move to Hudson Yards, New York

The US tech company Facebook (FB) is increasing its presence in New York. The company has agreed to rent three towers totalling 139.000 m2 in the three developing buildings in the west side area of Manhattan, Hudson Yards. According to the information, the employees are moving already next year to the new offices.

The Hudson Yards has got several real-estate certifications for its sustainable buildings, materials and public transport. The area has already Leed Platinum for Hudson Years 10 and the Eastern Yards has got Leed- Neighborhood Development Gold (Leed ND).

The area is expected to gain more than 20 million visitors annually.  The area is having over 14 acres of public plazas, gardens and over 100 different shops and high-end retailers. The shops include for example luxury brands like Dior, Tiffany and Watches of Switzerland.

Facebook shares closed down 0,02 % to 193,15 dollars in New York on Thursday.

 

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Facebook to launch News Service in the US

Facebook (FB) has launched its News Service piloting in the US on Friday. According to the company info, Facebook wanted to create a service that will give consumers more control over the stories they see and the ability to explore a wider range of their news interests, directly within the Facebook app.

The news service is done with some of the global publishers and it includes also the financial incentive for the large publishers. These publishers include for example Wall Street Journal, the Washington Post, BuzzFeed News, Business Insider, NBC, USA Today, the Los Angeles Times and Bloomberg News.

Facebook says there are these sections to watch:

  • Today’s Stories chosen by a team of journalists to catch you up on the news throughout the day
  • Personalization based on the news you read, share and follow, so you can find new interests and topics and Facebook News is fresh and interesting every time you open it
  • Topic sections to dive deeper into business, entertainment, health, science & tech, and sports
  • Your Subscriptions, a section for people who have linked their paid news subscriptions to their Facebook account
  • Controls to hide articles, topics and publishers you don’t want to see

The Facebook share price closed up 0,81 % to 187,89 dollars in New York today. During a one year time horizon, the Facebook shares have rosen 29,25 %. During the week, the company said it will delay the Libra, crypto currency, in order to seek the US regulatory approval first.

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Facebook currency Libra and the governance issues

The US tech giant Facebook is facing hard times with its global currency Libra. According to Financial Times Mastercard, Visa and PayPal have decided to stop the co-operation with Libra due to the regulatory reasons.

The problem with the global currency Libra, planned to be launched next year, is regarding the governance issues related to privacy and money laundering questions. The global central banks have urged Facebook to comply with the regulatory framework in order to proceed with the currency.

Facebook founder Mark Zuckerberg is to attend the US House Commitee on Financial Services on 23 October regarding the governance.

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Facebook makes offer to leading media to license content – WSJ

According to Wall Street Journal, Facebook (FB) has approached ABC News, Dow Jones, Washington Post and Bloomberg as it plans to launch a news section later this year.

WSJ says that Facebook would be willing to pay as much as 3 million dollars a year to licence entire stories, headlines and previews of articles.

Facebook, which launched the digital currency Libra in June, has faced an outcry of the privacy issues. The company shares rose 2,17 % to 190,16 dollars in New York today.

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Facebook’s revenue up 26 % to 16,9 billion dollars

Facebook’s revenue was 16,9 billion dollars during the second quarter, up 26% from the year earlier.

The tech company showed a 2,6 billion dollars profit, or 0,91 dollars per share. The profit would have been 1,99 dollars per share, but the 5 billion dollars settlement with the Federal Trade Commission decreased the profit.

The settlement was agreed due to the privacy issues in the Facebook processes.

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Brexit: Weekend elections – ECB rate cut? (corrected)

Corrected: the Conservative Party elections timetable

The Brexit situation in the UK will move forward when the Tories had their elections for the next Prime Minister and party leader. The markets are considering Boris Johnson the likely winner to place the former Prime Minister Theresa May. The other candidate is foreign minister Jeremy Hunt.

The next UK Prime Minister, which name will be published during the beginning of this week, will lead the country out of the EU block, with or without a trade deal by the October 31st.

In the UK the sterling has decreased to its lowest levels in 2 years. The FTSE 100-index is trading up 0,45 % to 7542,86 points today.

The financial markets have seen the global interest rate easing starting this time in Asia. For example the South Korea and Indonesia have lowered their interest rates last week. Now the expectations are for the US Fed and European Central Bank, which is having its next meeting on July 25th. According to Reuters, markets are waiting for a 10-basis point cut with 60 % chance.

During this week there will be also earnings releases from Facebook (FB) on Wednesday and Alphabet (GOOG) on Thursday, as well as Amazon (AMZN)

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Stocks closed down in NY- US data and trade tariffs

The US equities closed down today due to weak consumer confidence data and the trade tariffs between the US and China. The US and China leaders are meeting this week in G20 meeting in Japan and the information from the Federal Reserve has been that the tariffs can increase the risk of slower growth globally if there is no more confidence in the markets.

Dow Jones closed down 0,67 % to 26 549 points, S&P 500 index down 0,95 % to 2917 points and Nasdaq down 1,51 % to 7884 points. In Europe the FTSE 100 -index closed up 0,08 % to 7422 points, while the equities on the continent were down. In Germany the DAX closed down 0,38 % to 12 228 points and in France the CAC 40 down 0,13 points to 5514 points.

The US consumer confidence and new home sales were both below markets expectations. On the other hand on the M&A side, the deal volumes and values have been record high, according to Bloomberg data. On Tuesday, AbbVie said it would buy Allergan company, the Botox maker, for 63 billion dollars.

The G20 meeting on Friday and Saturday in Osaka, Japan will give more information while the US President Donald Trump and the Chinese President Xi Jinping will have their discussions then. According to Bloomberg, the US officials have signalled that the trade deal is unlikely to happen.

The US markets have been pricing a 50 basis points rate cut for the next Federal Reserve meeting in July, but according to St.Lous Fed President James Bullard such a rate cut would be too much. He commented the situation in a Bloomberg interview.

The central bankers have been discussing about the cryptocurrencies and Facebook´s new Libra coin in the central banks meeting in Switzerland today. The question of financial stability, consumer and regulatory standpoint are the major issues for the tech company and some believe Libra is not going to be a Bitcoin.

According to Reuters, the Facebook other issues related to privacy concerns and hate speeches have been the major topics and central bankers are requiring more information from Facebook in order to proceed with the new currency. The Britain’s Financial Conduct Authority (FCA) also commented the issue today with the same tone of voice.

In London, the discussions about the Brexit deal and the new Prime Minister have continued. Boris Johnson or Jeremy Hunt will be the next Prime Minister for the UK and the new leader will be announced on the 23rd of July. The deadline, October 31st will be soon, while the UK Parliament is starting their summer holidays on July 25 and the MPs will return on the September 3rd.

The euro was trading slightly up 0,01 % to 1,1368 dollars and the sterling up 0,06 % to 1,2696 dollars.

In Asia, the stocks were also down, the Shanghai All ended down 0,87 % to 2982 points, the Hang Seng in Hong Kong down 1,15 % to 28185 points and the Nikkei-index in Japan down 0,43 % to 21 193 points.

 

 

 

 

 

 

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