“Bull markets are born on pessimism, grown on skepticism, mature on optimism, and die on euphoria.” — John Templeton

1. Facebook Releases Plan for Libra Crypto — it could amount to the biggest catalyst for digital assets in their decade-long existence. Facebook (NASDAQ:FB) has unveiled a consortium to create an open-source digital currency called Libra, set to launch in the first half of next year, which would allow consumers to send money around the world easily and for free. While Libra won’t be run by Facebook – but rather by a nonprofit association and backed by relatively stable government money – the company does have a plan to profit from it with a new subsidiary, Calibra, which is building a digital wallet for storing and exchanging the currency. Furthermore, U.S. lawmakers from both sides of the aisle are forming a growing group calling for hearings on Facebook’s (NASDAQ:FB) Libra cryptocurrency. Democrat Maxine Waters, chairwoman of the House Financial Services Committee, said she wants Facebook to testify about the plans and the company should put them on hold for a review, while she’s also received a letter from the committee’s top Republican, Patrick McHenry, calling for a hearing. Many have additionally cited concerns about the social network’s checkered past when it comes to trust and privacy.
2. Boeing Gets Zero New Orders at Paris Air Show Day One — Boeing (NYSE:BA) didn’t announce a single new order on the first day of the expo, while rival Airbus (OTCPK:EADSF) recorded orders and options for 123 planes, according to CNBC. The report reinforces Boeing CEO Dennis Muilenburg’s view that this year’s Paris Air Show would be less about orders and more about reassuring customers and suppliers that the company is making progress on getting the grounded 737 MAX back in the air.
3. Rocket Explodes Near Exxon Site in Iraq — a rocket struck the site of the residential and operational headquarters of several global major oil companies in southern Iraq early Wednesday, including ExxonMobil (NYSE:XOM), but had no effect on oil fields or exports, sources told Bloomberg. The incident in the Basra province injured three Iraqi workers, however, prompting Exxon to evacuate 20 foreign employees. While attacks on energy facilities, including a Saudi Arabian pipeline and several oil tankers, as well as a U.S. military buildup, are stoking concerns, a considerable ratcheting of tensions will likely be required to drive prices higher.
4. FOMC Monetary Policy Meeting — as the Fed latest FOMC meeting, the yield on the benchmark 10-year Treasury dropped below 2% overnight for the first time since November 2016. The FOMC left interest rates unchanged at its monetary policy meeting last Wednesday, dropped the word “patient” from its statement and said it would “act as appropriate” to sustain the economy. The Fed Funds Futures pointing to a 100% chance of monetary policy easing in July.

The week ahead — Economic data from Econoday.com:

This entry was posted on Monday, June 24th, 2019 at 4:30 pm and is filed under Weekly Summary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.