Visa's most recent trend suggests a bullish bias. One trading opportunity on Visa is a Bull Put Spread using a strike $165.00 short put and a strike $155.00 long put offers a potential 14.42% return on risk over the next 28 calendar days. Maximum profit would be generated if the Bull Put Spread were to expire worthless, which would occur if the stock were above $165.00 by expiration. The full premium credit of $1.26 would be kept by the premium seller. The risk of $8.74 would be incurred if the stock dropped below the $155.00 long put strike price.
The 5-day moving average is moving down which suggests that the short-term momentum for Visa is bearish and the probability of a decline in share price is higher if the stock starts trending.
The 20-day moving average is moving up which suggests that the medium-term momentum for Visa is bullish.
The RSI indicator is at 67.61 level which suggests that the stock is neither overbought nor oversold at this time.
To learn how to execute such a strategy while accounting for risk and reward in the context of smart portfolio management, and see how to trade live with a successful professional trader, view more here
LATEST NEWS for Visa
Delivery startup Rappi partners with Visa to offer pre-paid cards in Brazil
Thu, 20 Jun 2019 04:51:44 +0000
Delivery startup Rappi is partnering with Visa Inc to offer a prepaid card linked to its digital wallet in Brazil, expanding the product's rollout from Mexico and Colombia, where Rappi was founded, executives from the two companies told Reuters. “It is the first of many financial solutions we plan to offer to our users,” Rappi co-founder in Brazil, Ricardo Bechara, said in an interview on Tuesday. Singapore-based Grab, which has a similar business to Rappi's in Asia, struck a deal with Mastercard last year.
Facebook’s Libra May Spark a Currency War
Thu, 20 Jun 2019 04:18:26 +0000
(Bloomberg Opinion) — It's one thing for academics in Asia to rant against the tyranny of the dollar, or to make cheery forecasts about its impending eclipse by the Chinese yuan. But now that Facebook Inc. wants to spawn a new global currency – one that could meet the “daily financial needs of billions of people” and perhaps rival the greenback one day – central banks in Beijing, Jakarta, Manila or Mumbai won't exactly be ecstatic.To them, the prospect of being at the mercy of a cabal of tech czars and venture capitalists sitting in Switzerland could well mean swapping the yoke of the U.S. Federal Reserve for a less predictable and potentially more sinister dependence.What if Facebook's crypto, backed by fiat-currency assets and offering stable value, starts out by paying for coffee but over time becomes people's preferred store of wealth? What will it mean for monetary sovereignty? Suppose users of Libra, as the currency will be called, manage to set aside their outsize privacy concerns with Facebook. Were the tokens to take off and – against all regulatory odds at home and abroad – gain global acceptance, there will be several implications for governments around the world.Some of them will be of particular concern in Asia, where most of the larger economies, starting with China, yearn for a growing role for their currencies in international commerce and as a store of value. Americans enjoy everything a little cheaper because the world – including money launderers, drug dealers and terrorists – wants the U.S. currency, which only the Fed can manufacture. China wants the same privilege for itself; and in a decade or two, India and Indonesia will, too. However, the long, patient game of internationalizing the yuan would get complicated if the Chinese on the mainland themselves take to Libra to bypass the country’s increasingly invasive social scoring system.Shielded by capital controls, Asian central banks at times seek weaker currencies to stimulate their export-led economies. But if people can move their wealth with one scan of a QR code to a digital coin backed by a reserve of low-risk assets – including bank deposits in various currencies and U.S. Treasuries – such stratagems won’t work any more. The People's Bank of China could then respond with its own digital currency, and unlike Facebook, pay interest on it.(2) Other central banks may join the battle for continued relevance. This competition, and not devaluation, could end up becoming the real currency war of the 21st century.None of us has experienced a central bank-sponsored digital currency yet: Our online payments are mediated by commercial banks or fintech. But it’s not a far-fetched idea. Seventy percent of the monetary authorities surveyed by the Bank for International Settlements last year said they’re working on the concept. So far they’ve had no reason to take the leap. Central banks already make digital cash available to financial institutions. Those are called bank reserves. Presumably, the Switzerland-based Libra Association, which will also include Visa Inc., Uber Technologies Inc., venture capitalist Andreessen Horowitz and other founders apart from Facebook, will also rely on a “geographically distributed network of custodians” to tap this closed user group for reserves.Nothing stops a central bank from providing its own digital tokens via commercial banks to compete with Facebook. If that doesn’t do the trick, the monetary authority can pull the ultimate stunt: It can open up its balance sheet to the public. Groups like the U.K.-based Positive Money, which is advocating for “Britcoin” to be held by individuals directly with the Bank of England, see it as the ultimate antidote to “extractive middlemen like banks and now tech companies.” Such a step would carry risks. In normal times, commercial banks can retain customer deposits by paying higher interest. But when panic strikes, deposits might flee to the central bank, even if the latter imposes a negative interest rate. Monetary authorities don’t want a funding shock to their banking systems. However, were Facebook to pose an existential threat, they may be compelled to walk an untrodden path.New purchasing power will increasingly come from Asia and Africa where the demographics are still favorable for high income growth. To the extent that global tech avoids paying national taxes when this purchasing power turns into digital consumption, it’s already a headache. Were Libra or another such project backed by the technology industry to take over where the dollar leaves off, concerns around a fair share of taxes could multiply. For that reason alone, Libra may not end up going anywhere in Asia. (1) The Libra Association will use its income to pay operating expenses, and then to compensate early investors in the consortium.To contact the author of this story: Andy Mukherjee at email@example.comTo contact the editor responsible for this story: Matthew Brooker at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Line Near Approval of Japan License for Crypto Exchange
Thu, 20 Jun 2019 03:46:00 +0000
(Bloomberg) — Line Corp., Japan’s largest messaging app, is close to getting a license to launch a cryptocurrency exchange in its home nation, according to people familiar with the matter.Japan’s Financial Services Agency could issue the license as early as this month, with exchange operations starting a few weeks after that, said the people, asking not to be identified discussing private matters. The service, which will be called BitMax, will allow Line’s 80 million users in Japan to buy and sell cryptocurrencies including Bitcoin and Line’s own token Link, one of the people said. Shares rose as much as 4.6%, the most intraday in two weeks.Line joins a crowded field of tech companies racing to roll out cryptocurrency products, including a move from Facebook Inc. earlier this week to create its own financial system with Visa Inc. and Uber Technologies Inc. For Line, the pressure to succeed is particularly acute as stagnant user growth has pushed shares to their lowest since listing in 2016. The Japanese company booked a loss last fiscal year as it stepped up investments into new businesses to reduce its reliance on advertising revenue.Line spokeswoman Icho Saito declined to comment.BitMax will use the same back-end technology as BitBox, a Singapore-based crypto exchange that Line launched last year for global users, according to one person. BitBox is off limits to users in Japan because of the licensing issue and so far hasn’t delivered a big boost to the company’s earnings. Exchange volume over the past 24 hours was about $2 million, according to its website.Line is still awaiting a separate banking license in Japan that will allow deeper integration of cryptocurrencies with its other services like online shopping. That license is unlikely to be issued until next year, according to one person. Line aims to debut stock brokerage operations this year with Nomura Holdings Inc. and banking services next year with Mizuho Financial Group Inc., co-Chief Executive Officer Shin Jung-ho said this month.Facebook this week announced its new crypto project Libra, a so-called stablecoin that is expected to let users send and receive money, shop online and invest through the social media platform. In Japan, tech companies including Rakuten Inc. and Yahoo Japan Corp. have launched their own crypto exchanges this year after receiving licenses from the FSA.Crypto’s growing adoption by large companies is contributing to a rebound in prices this year, with Bitcoin more than doubling over the past three months. Line’s own token Link has almost doubled in June alone, giving it a market valuation of about $30 million. It’s one of the few cryptocurrencies in the world that is issued by a large listed company.(Updates with shares in fourth paragraph.)To contact the reporters on this story: Yuji Nakamura in Tokyo at email@example.com;Yuki Hagiwara in Tokyo at firstname.lastname@example.org;Pavel Alpeyev in Tokyo at email@example.comTo contact the editors responsible for this story: Edwin Chan at firstname.lastname@example.org, Peter ElstromFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Senate banking committee sets July date to hold hearing on Facebook Libra coin
Wed, 19 Jun 2019 20:20:00 +0000
The Senate Banking committee on Wednesday set July 16 as the date to hold a hearing centered on Facebook Inc.'s Libra coin, an ambitious cryptocurrency venture led by the social-media giant that is intended as a frictionless way to to make payments over the internet using blockchain technology. The hearing titled "Examining Facebook's Proposed Digital Currency and Data Privacy Considerations," comes after a number of Congressional lawmakers a day ago demanded that Facebook , which is leading the digital-payments venture, delay its attempt to roll out the cryptocurrency by the second half of 2020 as planned, while legislators review possible risks to consumers. House Financial Services Committee head Maxine Waters on Tuesday said Facebook "is continuing its unchecked expansion and extending its reach into the lives of its users." The social-media outfit is wrestling with privacy concerns following its Cambridge Analytica scandal. On Tuesday, Facebook said: "We look forward to responding to lawmakers' questions as this process moves forward." Facebook has been meeting with regulators about its cryptocurrency plans, according to the Wall Street Journal, which reported that Facebook officials have met with Securities and Exchange Commission as its prepares to kick off Libra Coin with more than two dozen partners, including payment company PayPal Inc. [sL PYPL], ride-hailing apps Uber Technologies Inc. and Lyft Inc. , as well as credit card company Mastercard Inc. among many others. Many view this crypto as a powerful way for Facebook to tap into its 2.5 billion monthly active users. Libra coin won't be owned by Facebook and will be governed by a consortium of qualified global partners, with the intention of creating an independent payment system that has the benefits of the immutable ledger technology behind cryptos but none of the price vagaries of bitcoin because the digital asset will be pegged to a basket of fiat currencies like the dollar and euro , for example. Facebook's shares finished 0.5% lower on Wednesday, while the Dow Jones Industrial Average , the S&P 500 index and the Nasdaq Composite Index all finished in the session in positive territory.
Wall Street Sees Big Promise in Facebook Coin, With a Lot of Ifs
Wed, 19 Jun 2019 17:52:40 +0000
(Bloomberg) — Facebook Inc.’s bid to create a new cryptocurrency has the potential to some day disrupt the global money system, analysts say. That’s if the new stablecoin, called Libra, can gain enough traction. In the meantime, they say, the plan probably means little for existing payments companies, like Mastercard Inc., Visa Inc. and PayPal Holdings Inc. — which are all partners with Facebook.Shares of Mastercard, Visa and PayPal were mixed in mid-day Wednesday trading, ahead of the conclusion of the latest Federal Reserve meeting. Facebook was down as much as 2.1%.Here’s a sample of the latest commentary about the new cryptocurrency:Cowen, George Mihalos, Jaret Seiberg“If successful – if – it could be very disruptive to the legacy interchange model developed by the networks and banks,” Cowen analysts wrote in a note. Libra may also be “price-eroding to processors,” and serve as a “shot across the bow to money remittance firms.”Their expectations aren’t all bad for existing financial firms. Libra offers potential to bring “new money” into the digital payments ecosystem, they said, which would add to the value stored in digital wallets, like PayPal’s. That may lead to greater account adoption and transaction growth, though costs will probably come under pressure, as “Libra will in many ways be akin to using cash.”They also warned that politics pose a risk to Facebook, with Congress likely to hold hearings in the next few months. “Washington has the power to end Libra and any other cryptocurrency,” they said, by denying access to the banking system, making converting the currency to cash impossible. Congress may also adopt legislation that imposes onerous anti-money laundering and public audit requirements.MoffettNathanson, Lisa EllisThe announcement may be “most important for the cryptocurrency world,” and less so for payments companies, Ellis wrote in a note after discussing the plan with Visa, Mastercard and PayPal. “The cryptocurrency ecosystem may finally have a crypto-based system that – in design, at least – meets the major criteria required to make it functional for payments.”Libra has passed Visa, Mastercard and PayPal’s litmus tests, she said. They “see enough potential in the system to have raised their hands to participate – the first significant endorsement of the viability of cryptocurrencies from the incumbent payment ecosystem.”Citi, Ronit GhoseLibra “could be a big thing,” as the “support of Facebook and other internationally active partners will provide at minimum, a lot of public exposure to stablecoins and specifically to the Libra project.”Citi questions how regulators will respond to Libra.“For instance, Japan and Singapore consider coins pegged to a legal fiat as e-money,” while China, India and Indonesia ban dealing in virtual currencies, and Libra might fall under the SEC’s purview in the U.S. “The creation of ‘private money,’ even if fiat-linked, will raise a lot of political and regulatory debate.”Morgan Stanley, Brian Nowak, Betsy Graseck, James FaucetteMorgan Stanley analysts see little threat Libra will disrupt current global payment networks, noting Visa and Mastercard have “significant scale advantage, mature fraud detection capabilities and low cost structure.”They ask whether facilitating cross-border payments — the only thing that’s not already present in today’s real-time banking system — will be enough to differentiate Libra from other services, including Zelle and PayPal’s Venmo. They note that JPMorgan’s Interbank Information Network (IIN) is a blockchain that currently offers anti-money laundering and know-your-client (AML/KYC) services, with 259 banks and payments as a use case.KBW, Sanjay SakhraniThe initiative isn’t an immediate threat to payments companies, Sakhrani wrote in a note. “While the use case appears compelling for the underserved, adoption at a much broader scale will be required for Libra to emerge as a viable alternative to existing payment ecosystems.”Libra seems different than other cryptocurrencies, as it solves at least some issues, including volatility in value. Also, sponsorship from a large platform like Facebook may “help with the problem of adoption, although we believe that barriers to scale are likely still high, particularly in regions where a well-functioning payments ecosystem exists.”Wolfe Research, Darrin PellerThe most likely medium-term impact may be on “P2P, cross-border remittance, and the global underbanked,” Peller wrote in a note. He doesn’t see a near-term use case for Libra disrupting the payment system in “financially developed markets outside of remittance.”He sees opportunities for PayPal to fund Libra wallets/transactions and assist merchant acceptance, but adds that there are “long-term questions on potential pressure around e-commerce fees if Libra gains ubiquity.”To contact the reporter on this story: Felice Maranz in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Steven Fromm, Janet FreundFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Also on Market Tamer…
Follow Us on Facebook