Mark Zuckerberg will head to Brussels today for the European leg of his apology tour. A live streamed event in which MEP’s will question the Facebook CEO on anything from the Cambridge Analytica scandal, to Europe’s new privacy laws to the social networks role in elections.

Whilst this is likely to help improve relations between Facebook and the EU, we are not expecting any ground-breaking revelations. Mark Zuckerberg is expected to stick closely to the script of his appearance before Congress, where he underwent a 2-day grilling on how he handled the data of its tens of million of users. He is expected to give a similar apology for not taking a broad enough view on the firm’s responsibilities- be that for fake news, foreign interference in elections or developers misusing people’s information.

This will once again focus attention on the regulation of tech giants. The regulatory landscape is becoming more challenging for tech giants to navigate particularly in Europe where the EU has been more proactive in this field. Zuckerberg’s appearance comes just days before the introduction of new European regulation for protecting data privacy – the General Data Protection Regulation.

Whilst Facebook’s share price dived 15% on the Cambridge Analytica scandal, the price has recovered quickly, with the help of Q1 results smashing expectations. Just two-month post scandal Facebook’s share price had pared all the losses and was only $7 short of its all-time high.

Facebook Q1 smashed expectations

The overriding concern was that the Cambridge Analytica scandal would impact on Facebook’s advertising revenue. Up until now advertisers have had a fairly free rein as they are able to use data for more effective, targeted advertising. Yet the Q1 results showed few signs of negative impact from the scandal because the Q1 statement covered January through March, therefore not reflecting the fallout from the scandal which occurred mid-March.  Q2 results will be more telling. Facebook have said that some advertisers paused spending following the scandal, they have since picked up again, so the impact is expected to be limited.

Regulation under the spotlight

The regulatory crack down could potentially make Facebook a less attractive site for advertising, leading to a decline tech giants main revenue supply. So far investors are showing few signs of concern and the recent scandals have not proved to be serious hurdles to the firm’s ability to make money. However, that could change going forward. Regulation is no doubt the big threat but whether that actually transfers into a loss of revenue or users still remains unclear. Facebook results attract significant attention under normal circumstances, but we expect an increase in attention and volatility heading into the Q2 figures late July.

CFD and forex trading are leveraged products and can result in losses that exceed your deposits. They may not be suitable for everyone. Ensure you fully understand the risks. From time to time, City Index Limited’s (“we”, “our”) website may contain links to other sites and/or resources provided by third parties. These links and/or resources are provided for your information only and we have no control over the contents of those materials, and in no way endorse their content. Any analysis, opinion, commentary or research-based material on our website is for information and educational purposes only and is not, in any circumstances, intended to be an offer, recommendation or solicitation to buy or sell. You should always seek independent advice as to your suitability to speculate in any related markets and your ability to assume the associated risks, if you are at all unsure. No representation or warranty is made, express or implied, that the materials on our website are complete or accurate. We are not under any obligation to update any such material. As such, we (and/or our associated companies) will not be responsible or liable for any loss or damage incurred by you or any third party arising out of, or in connection with, any use of the information on our website (other than with regards to any duty or liability that we are unable to limit or exclude by law or under the applicable regulatory system) and any such liability is hereby expressly disclaimed

Recommended Content


Recommended Content

Editors’ Picks

AUD/USD recovers further toward 0.6800 on risk-recovery

AUD/USD recovers further toward 0.6800 on risk-recovery

AUD/USD extends recovery toward 0.6800 in Asian trading on Thursday, despite mixed Australian employment data. The Aussie cheers a return of risk appetite, which weighs on the post-Fed US Dollar recovery. All eyes now remain on US economic data for fresh impetus. 

AUD/USD News
USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles

USD.JPY reverses sharply from 144.00, as US Dollar recovery fizzles

USD/JPY is attacking 143.00 in Thursday's Asian session, reversing sharply from 144.00. The pair pares back gains in tandem with the US Dollar, as the latter's post-Fed recovery falters due to a rebound in risk sentiment. The focus is next on the US data due later today and Friday's BoJ decision. 

USD/JPY News
Gold price regains positive traction amid a modest USD pullback from one-week high

Gold price regains positive traction amid a modest USD pullback from one-week high

Gold price attracts some dip-buying during the Asian session on Thursday and seems to have stalled its retracement slide from the $2,600 mark, or a fresh all-time peak touched the previous day. The US dollar trims a part of its intraday gains to a one-week high, which turns out to be a key factor lending support to the commodity.

Gold News
Crypto leaders and Congress blast SEC over crypto regulations

Crypto leaders and Congress blast SEC over crypto regulations

In a meeting on Wednesday, several crypto leaders and congress members debunked the Securities and Exchange Commission's harsh regulatory approach toward the crypto industry.

Read more
Australian Unemployment Rate expected to hold steady at 4.2% in August

Australian Unemployment Rate expected to hold steady at 4.2% in August

The Australian Bureau of Statistics will release the monthly employment report at 1:30 GMT on Thursday. The country is expected to have added 25K new positions in August, while the Unemployment Rate is foreseen to remain steady at 4.2%.

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Majors

Cryptocurrencies

Signatures