Unruly social media no model for Facebook, Inc. (NASDAQ:FB) Libra currency
Facebook FB.O cannot expect its new Libra currency to benefit from the same unregulated free-for-all that helped the company achieve a dominant position in social media, Bank of England Governor Mark Carney said on Thursday.
The U.S. social media company drew worldwide interest earlier this week when it announced plans to establish its own payment system, backed up by a currency it calls Libra.
“The Bank of England approaches Libra with an open mind but not an open door,” Carney says in a speech he will give in the heart of London’s financial district. “Unlike social media … the terms of engagement for innovations such as Libra must be adopted in advance of any launch.”
Carney, who will step down next January, will deliver his speech alongside finance minister Philip Hammond, who is expected to warn of the risk that a no-deal Brexit could trigger extended austerity and a Scottish vote for independence.
Hammond will also set out his vision for Britain’s financial services, at a time when both the government and the BoE are keen to ensure London retains its place as the world’s leading financial centre even after Britain leaves the EU.
Carney’s comments were part of a broader speech unveiling a major review into the future of Britain’s financial system, to cut costs for consumers, make it easier for small businesses to borrow and reduce banks’ compliance expenses.
Cash usage is falling rapidly in Britain in favour of credit and debit cards – though some older Britons and businesses in rural communities with poor internet access still prefer cash.
If Libra comes close to meeting Facebook’s ambitions, it would be a systemically important payment system which the BoE and financial regulators worldwide would take a keen interest in, Carney said.
The company would need to meet tough standards on consumer protection and fighting money-laundering, as well as ensuring the platform boosted competition and was genuinely open so that “new users can join on equal terms”.
The BoE – which already allows some non-banks to use its payment services – said it would consult on being the world’s first major jurisdiction to allow non-banks to deposit money with it overnight, and potentially even borrow BoE funds.
“Expanding access can improve the transmission of monetary policy and increase competition,” Carney said.
These changes would also reduce the economy’s reliance on Britain’s major banks, which still dominate consumer and small business financial services, but came close to collapse during the 2008 financial crisis, costing taxpayers billions.
Carney also gave a date – 2021 – for when British financial institutions account for the risks of climate change in a ‘stress test’ of their finances.
Climate change is a major preoccupation for Carney. Britain’s government recently announced the aim of making the country carbon-neutral by 2050, the first G7 country to do so.
The central bank governor did not address the more immediate challenge of Britain’s departure from the European Union, due on Oct. 31, or the outlook for interest rates and the broader economy.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 200.65.
The projected lower bound is: 178.89.
The projected closing price is: 189.77.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 67.7207. This is not an overbought or oversold reading. The last signal was a sell 1 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 61.48. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 12 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 114.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 6 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 2.050 at 189.530. Volume was 16% below average (neutral) and Bollinger Bands were 32% wider than normal.
Open High Low Close Volume___
190.950 191.160 187.640 189.530 14,635,740
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 181.46 182.95 161.59
Volatility: 31 39 42
Volume: 19,676,302 17,673,386 22,089,536
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
FACEBOOK INC A is currently 17.3% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 0 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.