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Meta Issues a Warning to Europe, EURUSD Suffers on Lagarde Comments & Peloton Goes Up 20% on Amazon Takeover Rumors

NASDAQ up, as Meta issues Europe warning

The NASDAQ was trading marginally lower to start the week, as Meta issued a warning that it could shut down Facebook and Instagram in Europe.

Meta, which has been in free-fall following the release of its Q4 earnings, today stated that new transatlantic regulations could impact its ability to offer some products in Europe.

đź’ˇ The Court Ruling
In July 2020, the European Court of Justice ruled the data transfer standard between the EU and the U.S. doesn’t adequately protect European citizens’ privacy. The court, the EU’s highest legal authority, restricted how U.S. firms could send European user data to the U.S. after concluding EU citizens had no effective way to challenge American government surveillance.

In a statement, the tech-giant said, “If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs (standard contractual clauses) or rely upon other alternative means of data transfers from Europe to the United States, we will likely be unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe”.

As of writing, shares in $FB were down 4.05% on the day, with the NASDAQ marginally higher.

EURUSD falls on Lagarde policy comments

EURUSD was trading lower to start the week, following comment from ECB President Christine Lagarde.

Lagarde doubled down on the European Central Bank’s decision not to follow the BOE or Fed (who are set to hike in March), in moving to raise rates, as she expects inflation will fall to the bank’s 2% target.

In her comments to the European Parliament, she stated that, “The chances have increased, that inflation will stabilize at our target. There are no signals that inflation will be persistently and significantly above our target over the medium term, which would require measurable tightening”.

She added that, “Any adjustment to our policy will be gradual”.

As of writing, EURUSD hit an intraday low of 1.1462.

Peloton up over 20%, on Amazon takeover rumours

Shares in the home workout company Peloton, were trading by as much as 20% on Monday, following reports of a takeover bid.

It was reported today that Amazon, and Nike are looking at the company with a potential acquisition in mind.

Peloton was one of the big gainers during the start of the pandemic, as sales of its e-bikes rose to record highs.

This came as many nations around the globe were in lockdown, prior to the release of the COVID-19 vaccine.

Since then, Peloton stock has dropped, with many opting to return to traditional workout spaces.

$PTON was up 22.85% as of writing.

“Spend each day trying to be a little wiser than you were when you woke up.”

–Charlie Munger

Eliman Dambell

Senior Market Analyst