Home » Technology » Kronen, Børs | Netflix bomb in the financial market: The Norwegian krone goes to the bottom

Kronen, Børs | Netflix bomb in the financial market: The Norwegian krone goes to the bottom

The krone is falling to its weakest point before Christmas, while many of the stock markets around the world are kneeling, among other things after very bad Netflix news.


OSLO / NEW YORK (Nettavisen): The krone falls to 10.11 kroner against one euro on Friday, down from 9.92 kroner on Thursday night, and is now at its clear weakest in 2022.

This is bad news for all Norwegians who buy goods abroad, or dream of a holiday trip to southern regions.

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Weak numbers

The reason for the fall in the krone is a global fall in the stock market where both the Oslo Stock Exchange, the German DAX index, the American stock exchanges and most others are down. Fear of omikron and poor results from big companies, such as American Netflix, are dragging down, according to CNBC.

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Netflix released miserable numbers after the stock exchange closed on Thursday, and falls 21 percent at the opening on Friday after the streaming giant confirmed that fewer people subscribe to the service than before.

Netflix stated on Thursday, among other things, that they expected to get 2.5 million new subscribers in the first quarter of the year, against an expectation that they will get almost seven million new subscribers.

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This is partly due to competitors such as Disney Plus steals subscribers, but also that people will probably have less time to sit inside and watch TV when the corona restrictions are gradually lifted. Interestingly, Disney is also down five percent, as the market fears that other streaming giants may also be affected by the same development as Netflix.

Netflix is ​​falling further

Netflix falls further on Friday night, and is now down over 24 percent, while Disney is down almost 6 percent.

Just after opening on Friday, the Nasdaq was down as much as 1.6 percent, and is heading for its worst week since October 2020.

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If the decline stays at more than 20 percent throughout the day, then it will be the worst day for Netflix on the stock exchange since July 25, 2012, when the stock fell by 25 percent. It will then also be the worst week for Netflix since July 27, 2012, when the share fell by a total of 28 percent, reports CNBC.

Massive fall for cryptocurrency

Cryptocurrency is now experiencing a massive decline in value in a very short time.

In 24 hours from Wednesday to Thursday, cryptocurrencies of as much as 150 billion dollars, or 1350 billion Norwegian kroner, disappeared, figures from coinmarketcap.com.

According to CNBC The value of Bitcoin fell by more than 7 percent in 24 hours, while ether fell by more than 8 percent.

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The latest figures at 15.30 on Friday, show that bitcoin is now down as much as 10 percent in the last 24 hours, which values ​​the cryptocurrency at just over 38,000 dollars.

Oil prices down

On the Oslo Stock Exchange, most large companies ended up down. It is worst for the giant Autostore, which fell 12 percent on Friday, while the stock exchange’s big giant Equinor fell two percent. Aker BP fell 2.19 percent, Norsk Hydro was down 2.68 percent and Yara International ended down 2.15 percent.

Overall, the Oslo Stock Exchange fell 1.85 percent, while the DAX is down 2.85 percent. The technology-heavy Nasdaq stock market is also down in the US, especially burdened by Netflix.

Currency strategist at DNB Markets, Magne Østnor, emphasizes that the Norwegian krone has actually held up well recently, especially helped by a strong oil price, but that several things are contributing to the decline on Friday. Norwegian kroner often weakens against the major currencies when there is stock market turmoil, since investors in such times move to “safe havens” such as the dollar and the euro.

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– The oil price is a bit down from yesterday and it is a bit confusing stock market, but it is not always there is a perfect connection between these things either, he says to Nettavisen.

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