Tuesday, March 20, 2018

Facebook scandal : tech sell-off led stocks into the red

Now Facebook scandal induces heavy equity tumble. Very heavy turbulence for Facebook stock,  The catalyst was tech stock Facebook, which fell close to 7%. In an Orwellian twist, the Financial Times reported that data firm Cambridge Analytica may have used Facebook to harvest data on 50 million people without consent. This abuse is hardly bad, The user information was exploited for political benefit, including aiding the Trump presidential campaign. The data firm has close ties with President Trump's former Chief Strategist Steve Bannon. Officials across the Atlantic are calling for action.

Tech stock going down, The tech sell-off led stocks into the red. US flagship stock index S&P 500 was down over 2% before recovering up to the close. The implied volatility index VIX rose up to 19 and high yield credit spreads rose.

The Trump administration plans to impose tariffs worth USD60bn on China as early as this week, according to WaPo. For more on the administration's ongoing assault on globalisation see Strategy – Trump's attack on globalisation continues.. The EU and UK have settled on a Brexit transition deal. The conditional agreement grants British business with much needed visibility with a transition period lasting 21 months. Pressure has been mounting on the May administration, which hailed the deal as a big win. Difficult issues such as the Northern Ireland border and governance were left for the future. The pound surged against the euro, while retracting roughly half in the evening.

Source : tech news 

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