A critical quarter for Netflix
Netflix already prepared shareholders for its second-quarter financial report this week. But that doesn’t mean the news is any easier to swallow. After Netflix announced in April that it had lost 200,000 subscribers, it warned that it was likely to lose another two million over the next three months as it struggled to remain competitive among a variety of streaming options. Since then, the company has gone through several rounds of layoffs while the stock price has fallen. As the streaming giant tries to recover, it plans to partner with Microsoft to create a cheaper, ad-supported subscription tier. But the move is no guarantee for calmer waters for the company.
The odds of a recession
The likelihood of an impending recession depends on who you ask. Speak to Wells Fargo’s chief economist and he’ll tell you that a recession in 2023 is “more likely than not.” Ask S&P Global Ratings and it will say the probability of a deep downturn is basically a tossup. Last week, despite what some would see as clear warning signs, JPMorgan Chase and Morgan Stanley said a recession was not yet in sight. Despite the different prospects, the fact is that most people – analysts, economists and laypeople alike – are thinking about it and looking for clues in indicators such as yield curves, inflation data, quarterly earnings and investor attitudes. And as the Fed tries to rein in the economy, fears that it could plunge the country into a serious slowdown will continue to grow.
What else?
Bank of America has been fined $225 million by federal authorities for abusively handling pandemic unemployment benefits. Amid the travel chaos, Delta Air Lines flew an empty plane to London’s Heathrow Airport to pick up stranded luggage and return it to the United States. And Heathrow said it would limit passenger numbers until the end of the summer as it struggles with staff shortages.
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