Facebook outage drives market weakness
U.S. Indices were lower to start the week, as Facebook, and its cohort of applications went offline for several hours.
Users across the globe reportedly could not access Facebook, Instagram and WhatsApp, with the social media giant not giving any information about the outage.
To the huge community of people and businesses around the world who depend on us: we're sorry. We’ve been working hard to restore access to our apps and services and are happy to report they are coming back online now. Thank you for bearing with us.— Facebook (@Facebook) October 4, 2021
Instead, a member of the company’s communications team tweeted that, “We’re aware that some people are having trouble accessing our apps and products. We’re working to get things back to normal as quickly as possible, and we apologize for any inconvenience”.
The benchmark S&P 500 index was down around 1.30% at the close, with shares in Facebook itself trading 4.89% lower.
GBPUSD gains as U.S. factory orders rise
In currency markets, GBPUSD rose for a third consecutive session, with today’s gains coming as U.S. factory orders rose more than expected.
Figures from the Commerce Department showed that factory orders for August were up by 1.2%, compared to market expectations for a 1% rise.
|💡 How do factory orders influence the economy?|
Because manufacturing has so many substantial links with so many other sectors throughout the economy, its output stimulates more economic activity across society than any other sector. That’s a major reason manufacturers play such a critical role in growth.
As factory output grows, it requires more inputs from mining and utilities and suppliers and creates job and investment opportunities in all the other sectors that use its products, such as transportation, construction, and retail. It also spurs growth in services such as finance and transportation.
The report also showed that data for July was higher than initially reported, now increasing by 0.7%, after being reported to climb 0.4%.
GBPUSD rose to an intraday high of 1.3640, which is its highest level since September 27th.
Today’s release comes in a pivotal week for the U.S. economy, as the Fed looks to Friday’s Non-farm payrolls report for guidance, before beginning to taper its COVID-19 rescue package.
TikTok turnover up over 500%
A year ago, TikTok was on the verge of being banned in the U.S. and other Western nations, however today the company reported that turnover has risen by over 500%.
This growth has come from the company’s European operations, with the firm announcing that its turnover grew by 545% to $170.8 million in the last year.
News of this comes a week after the company announced that it had over 1 billion active users, leading to raising advertising revenue.
|💡 TikTok’s recent plan to get more ad dollars|
TikTok executives announced new initiatives meant to persuade companies and ad agencies to buy space on the app during its first-ever TikTok World event on Tuesday, September 28th. This comes as the company makes nearly 0 dollars on user generated content that successfully promotes other products
The company has faced some problems including a tussle with the Trump administration and concerns for privacy policies as well as worry that the Chinese government could crack down on the app as it has with other companies in the tech industry
In capturing advertising budgets, the company also confirmed that expenditure has climbed, with market expenses up to $344.9 million in 2020, up from $110.3 million the year before.
In a statement, the company stated that, “We saw revenue increase significantly as our community grew, and we’ve continued to invest aggressively in building a solid foundation for the long-term success of the platform”.
“Letting losses run is the most serious mistake made by most investors.”– William O’Neil