Friday, January 18, 2019

Netflix numbers; Ryanair warning; More trouble for Carlos Ghosn


Netflix (NFLX) now has 139 million subscribers worldwide. In the quarter ending in March, another 8.9 million customers are expected, many of them in international markets.

Other key earnings figures, however, were less outstanding. Netflix shares fell 3% in extended trading after Wall Street's sales narrowly missed.

The Netflix share, which rose more sharply this week after announcing the price hike this week, has risen by about 50% since the end of December.

2. Tesla layoffs: Tesla has announced that it will reduce its full-time employment by 7% as the Model 3 production is expected to increase.

CEO Elon Musk told workers in a letter Tesla posted online Friday's cuts. The company will retain only the most critical contract workers and contractors, Musk said.

Must wrote in the letter that Tesla "faces massive, entrenched competitors" and that "has to work much harder than other manufacturers to survive while building affordable, sustainable products."

"I thank the departing party for everything you've done to advance our mission," he said. "I am deeply grateful for your contributions to Tesla."

Tesla shares (TSLA) fell 4% in the pre-market trade. In June 2018, the carmaker dismissed 9% of its workforce.

3. Carlos Ghosn charged (again): Imprisoned car boss Carlos Ghosn faces a new claim to financial misconduct.

Nissan (NSANY) and Mitsubishi Motors (MMTOF) stated that their former chairman had received unlawfully € 7.8 million ($ 8.9 million) in compensation and other payments from a joint venture between the two automakers.
The companies, which are working together on an alliance with Renault (RNSDF), said a joint investigation revealed that Ghosn had paid the money from the joint venture without the consent of other board members.

Japanese prosecutors have already accused Ghosn of abusing his position with Nissan by temporarily transferring personal losses to the company and downgrading his income by about $ 80 million between 2010 and 2018.

Ghosn has denied these allegations. He was deposed as chairman of Nissan and Mitsubishi Motors and could soon be displaced at Renault, after he had lost the support of his largest shareholder, the French state.

4. Ryanair profit warning: Europe's leading low-cost carrier has lowered its annual forecast for the second time in nearly four months, after wintertime fares have fallen much faster than expected.

Ryanair (RYAAY) warned in a statement that further changes to its forecast were possible if there were "unexpected Brexit or security developments".
The share fell 2.5% on Friday and shares in the competing discount airline EasyJet (ESYJY) fell 2%. According to Bernstein analysts, the prospects for older airlines with lucrative business and long-haul routes were better. For example, the shares of German Lufthansa (DLAKY) have hardly changed.

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5. World Market Overview: US equity futures were higher.
The European markets were opened with a plus of almost 1%. Asian equities closed the week with a banner session, with most major indices contributing around 1.3%.
The Dow rose 0.7% on Thursday and the S & P 500 0.8%. The Nasdaq rose 0.7%.

US stocks were supported by a Wall Street Journal report stating that the Trump government is debating whether tariffs on China should be raised to calm markets and encourage Beijing to make trade concessions.

A US Treasury spokesman told CNN that neither US Treasury Secretary Steven Mnuchin nor US Trade Ambassador Robert Lighthizer had "given recommendations to anyone about tariffs or other negotiating issues."

"This is a continuous process with the Chinese, which is far from over," the spokesman added.

6. Come this week:
Friday - Result from Schlumberger (SLB) and SunTrust Banks (STI)
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