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Friday, January 18, 2019

Netflix numbers; Ryanair warning; Tesla layoffs

Netflix (NFLX) now has 139 million subscribers globally. It expects to add another 8.9 million subscribers in the quarter that ends in March, many of them in international markets.
But other key earnings metrics were less stellar. Shares in Netflix dropped 3% in extended trading after sales figures narrowly missed Wall Street estimates.
Netflix stock, which zoomed higher this week after the company announced a price hike, has soared about 50% since late December.
2. Tesla layoffs: Tesla has announced plans to cut its full-time workforce by 7% as it works to increase Model 3 production.
CEO Elon Musk told workers about the cuts Friday in a letter that Tesla posted online. The company will only retain the most critical temps and contractors, Musk said.
Must wrote in the letter that Tesla is "up against massive, entrenched competitors" and must work "much harder than other manufacturers to survive while building affordable, sustainable products."
"To those departing, thank you for everything you have done to advance our mission," he said. "I am deeply grateful for your contributions to Tesla."
Tesla (TSLA) shares fell 4% in premarket trade. In June 2018, the carmaker laid off 9% of its staff.
3. Carlos Ghosn accused (again): Jailed auto executive Carlos Ghosn is facing a new claim of financial misconduct.
Nissan (NSANY) and Mitsubishi Motors (MMTOF) said their former chairman improperly received €7.8 million ($8.9 million) in compensation and other payments from a joint venture between the two carmakers.
The companies, which together participate in an alliance with Renault (RNSDF), said a joint investigation found that Ghosn was paid the money from the joint venture without the approval of other board members.
Japanese prosecutors have already charged Ghosn with abusing his position at Nissan by temporarily transferring personal investment losses to the company, and understating his income by about $80 million between 2010 and 2018.
Ghosn has denied those charges. He has been removed as chairman of Nissan and Mitsubishi Motors, and could soon be ousted at Renault after losing the support of its biggest shareholder, the French state.
4. Ryanair profit warning: Europe's top low-cost carrier has cut its annual profit forecast for a second time in nearly four months after winter fares fell much more sharply than expected.
Ryanair (RYAAY) warned in a statement that further revisions to its forecast were possible if there are "unexpected Brexit or security developments."
Its stock dropped 2.5% on Friday and shares in rival discount airline EasyJet (ESYJY) shed 2%. Analysts at Bernstein said the outlook was better for legacy airlines with lucrative business and long haul routes. Shares in Germany's Lufthansa (DLAKY), for example, were little changed.

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5. Global market overview: US stock futures were higher.
European markets opened with gains of nearly 1%. Stocks in Asia closed out the week with a banner session, with most major indexes adding roughly 1.3%
The Dow advanced 0.7% on Thursday and the S&P 500 gained 0.8%. The Nasdaq increased 0.7%.
US stocks were helped by a Wall Street Journal report that said the Trump administration was debating whether to lift tariffs on China in order to calm markets and encourage Beijing to make concessions on trade.
A Treasury spokesperson told CNN that neither Treasury Secretary Steven Mnuchin nor top US trade envoy Robert Lighthizer had "made any recommendations to anyone with respect to tariffs or other parts of the negotiation."
"This is an ongoing process with the Chinese that is nowhere near completion," the spokesperson added.
6. Coming this week:
Friday — Earnings from Schlumberger (SLB) and SunTrust Banks (STI)

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from CNN.com - RSS Channel https://cnn.it/2FCsQ6S

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