Business, Economics and Jobs

Macro chatter: Facebook is bigger than Facebook thought


Facebook CEO Mark Zuckerberg delivers a keynote during a Facebook f8 Developer Conference at the San Francisco Design Center in September.



Need to know:
Prices for used cars, airfare and rents rose in the US last month, according to the latest government inflation data.

The key measure of inflation most closely watched by Federal Reserve policymakers came in just above their 2 percent target. 

Want to know:
Facebook is a bigger deal than Facebook thought.

Facebook shares are so popular that the social network has decided to raise its IPO price, Reuters said. That gives Facebook a valuation of more than $100 billion.

It’s not a bad birthday gift for founder and CEO Mark Zuckerberg, who turned 28 on Monday.

Facebook shares are scheduled to start trading on Friday, but Zuckerberg won’t be making his way to New York to celebrate by ringing the NASDAQ bell. Instead, ZDNet said he’ll celebrate his company’s IPO in true Silicon Valley fashion by ringing the bell remotely from California.

It is unclear whether he’ll still be in his pajamas (it’ll be early) or whether he’s managed to get his hands on an executive pinstripe hoodie.

Dull but important:
Another day brought another downgrade in Europe.

Moody’s cut the credit ratings of 26 Italian banks including giants UniCredit SpA and Intesa Sanpaolo Spa on Monday. Italy’s banks are now among the lowest rated of advanced European countries.

Spanish banks also aren’t doing so well. Spain is bailing out its fourth largest bank, and Moody’s said the country’s banking sector is still in a vulnerable spot.

Greece is doing even worse. Talk of it leaving the euro zone is intensifying.

Elsewhere in Europe things are better. The latest data shows the French economy didn't slip into recession in the latest quarter, and Germany's economy grew by 0.5 percent. 

Just because:
Groupon announced its first operating profit in two years and sent its stock soaring Monday.

The daily deal site still lost nearly $12 million the first quarter, and its share prices still haven’t risen enough to make its IPO investors a profit.

Groupon has been cutting costs and adding customers. It’s also still trying to regain the credibility it lost when some of its fuzzy accounting practices emerged.

Strange but true:
Ferrari’s hybrid won’t be saving the world’s wealthiest drivers any money.

Ferrari’s first ever hybrid is expected to cut fuel consumption by 40 percent. But prices will likely start at around $850,000, making it the most expensive Ferrari available, Bloomberg Businessweek reported.

Clearly, the car isn’t for those bargain-minded Ferrari shoppers.