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Fly News Breaks for June 19, 2019
V, JPM, FB, MA
Jun 19, 2019 | 09:11 EDT
After Facebook (FB) unveiled its cryptocurrency Libra yesterday, Morgan Stanley analysts led by Brian Nowak highlighted six "key questions" they still have about the impact on Facebook, commerce and the overall global banking and payments system from the social media giant's offering. The team, as previously stated, believe that Instagram commerce could be a greater than $4B annual opportunity for Facebook and even larger over the long term across Instagram, Messenger, WhatsApp and the core app. However, they also think costs may rise as they believe Facebook is likely going to have to fund rewards to drive Libra adoption. Libra's real-time aspect largely already exists in the banking system, except for in real-time cross-border payments, which is a challenge that Facebook could address, though it won't be alone there as JPMorgan (JPM) is also working on its own s Interbank Information Network blockchain, the team noted. The team believes Libra's threat of disruption to Visa (V) and Mastercard (MA) is "fairly low" as the major networks have a significant scale advantage, low costs, mature fraud detection abilities and they are both also founding members and investors, Nowak and the analysts also noted.
News For FB;V;MA;JPM From the Last 2 Days
JPM
Jul 16, 2019 | 06:48 EDT
Reports Q2 reported revenue $28.8B, managed revenue $29.9B, consensus $29.6B.
FB
Jul 16, 2019 | 06:30 EDT
U.S. Representative Adam Schiff sent a letter to the CEOs of Facebook (FB), Twitter (TWTR) and Google (GOOGL) seeking information about their policies for dealing with deepfake videos and photos, Reuters' Elizabeth Culliford reports. In the letter, Schiff says he is concerned about the effect that deepfake disinformation could have on the 2020 U.S. Presidential elections. "As we look ahead to the 2020 election, I am gravely concerned the experience of 2016 may have just been the prologue," Schiff says. Reference Link
FB
Jul 15, 2019 | 16:28 EDT
Stocks had a quiet start to what will be a busy week for corporate earnings after Citigroup (C), the first big U. S... To see the rest of the story go to thefly.com. See Story Here
JPM
Jul 15, 2019 | 14:53 EDT
Notable companies reporting before tomorrow's open, with earnings consensus, include JPMorgan (JPM), consensus $2.50... Johnson & Johnson (JNJ), consensus $2.43... Wells Fargo (WFC), consensus $1.15... Goldman Sachs (GS), consensus $5... Prologis (PLD), consensus 36c... First Republic Bank (FRC), consensus $1.27... Domino's Pizza (DPZ), consensus $2.02... Synovus Financial (SNV), consensus 99c... First Horizon National (FHN), consensus 37c.
FB
Jul 15, 2019 | 14:14 EDT
Asked about President Trump's previous criticisms about Facebook (FB), Treasury Secretary Steve Mnuchin said the president has "legitimate" concerns about Libra and other cryptocurrencies but that the president would not target any specific provider and that providers will be treated fairly and equally.
FB
Jul 15, 2019 | 14:07 EDT
Treasury Secretary Steven Mnuchin, in a press conference, said the Treasury department has "serious concerns" that Facebook's (FB) Libra currency could be misused. The department has told Facebook and bitcoin companies that they must enact safeguards against illicit use and money laundering. Mnuchin continues presenting about the Treasury department's stance on Libra, Bitcoin and other cryptocurrencies.
FB
Jul 15, 2019 | 12:52 EDT
In testimony for the Senate Banking Committee, David Marcus, who oversees Facebook's blockchain efforts, will say that the company will not immediately profit from Libra, according to prepared remarks ahead of the hearing. "Our first goal is to create utility and adoption, enabling people around the world -- especially the unbanked and underbanked -- to take part in the financial ecosystem," Marcus will say. He will add that Facebook won't make money in the early phases of Calibra and will ensure that "customers' account and financial information will not be shared with Facebook, Inc., and as a result cannot be used for ad targeting." Reference Link
FB
Jul 15, 2019 | 11:52 EDT
In prepared testimony for the Senate Banking Committee, David Marcus, who oversees Facebook's blockchain efforts, will say that the company is not planning to launch its Libra cryptocurrency until regulatory concerns are "fully addressed," Reuters' Pete Schroeder reports. Marcus also plans to say that Libra is not being built to compete with sovereign currencies or interfere with monetary policy. "The Libra Association, which will manage the Reserve, has no intention of competing with any sovereign currencies or entering the monetary policy arena," Marcus plans to say. Reference Link
JPM
Jul 15, 2019 | 09:40 EDT
Unusual total active option classes on open include: Carrizo Oil & Gas (CRZO), Nokia (NOK), Citi (C), JPMorgan (JPM), Ford (F), Caterpillar (CAT), Broadcom (AVGO), Aurora Cannabis (ACB), Square (SQ), and Goldman Sachs (GS).
FB
Jul 15, 2019 | 08:55 EDT
Friday's total option volume of 18.9 million contracts resulted in net open interest growth of 2.79 million calls and 3.17 million puts. Micron (MU), Tesla (TSLA), Alibaba (BABA) and Facebook (FB) saw the greatest growth. Top five new positions opened include 22k Southwestern Energy (SWN) Aug-19 2.5 puts, 20k Tesla (TSLA) Jul-19 100 puts, 20k Facebook (FB) Jul-19 210 calls, 20k PG&E (PCG) Sep-19 25 calls and 19k Micron (MU) 7/26 weekly 46 calls.
FB
Jul 15, 2019 | 06:53 EDT
Facebook (FB) board member Peter Thiel says the FBI and CIA should investigate whether Google (GOOGL) has been infiltrated by Chinese intelligence, Axios' David McCabe reports. Thiel blasted the Alphabet-owned Google for its work in China, saying the search engine giant was "engaged in the seemingly treasonous decision to work with the Chinese military and not with the U.S. military," according to the report. Reference Link