“Netflix” loses 970,000 subscribers in the second quarter
but the stock is up 8%.

topic

netflix stock

The Russian embargo on Ukraine is causing a drop in its wheat harvest.

The escalation of the gas crisis in Germany

netflix stock

According to the American broadcasting firm’s business statistics for the past three months only
the number of “Netflix” customers declined to 970,000.
This decrease followed earlier predictions that the company would lose two million users.

At the same time, the price of Netflix stock increased by 8% at the close of trade on Tuesday.
The stock made a profit of $3.20, exceeding forecasts of $2.94. In the second quarter of current year 2022,
the corporation generated net profits of up to $1.440 billion,
compared to 1.353 billion dollars in the same period the previous year 2021.

In the year from 2021 to 2022, Netflix’s revenues totaled $7.97 billion,
falling short of projections of $8.03 billion,
and the platform anticipates gaining one million users in the third quarter of this year to reach 221.67 million customers.

The challenge now is to accelerate our revenue and
membership growth by continuing to improve our products, content,
and marketing, as we’ve done previously over a 25-year period,
and to better monetize our audience.
The company told shareholders that it has thoroughly investigated the recent slowdown
and learned the causes, which are password-sharing, competition, and a stagnant economy.

The Russian embargo on Ukraine is causing a drop in its wheat harvest.

Mykola Solsky, the Ukrainian minister of agriculture, issued a warning
that the winter wheat crop is in a state of considerable reduction,
which is escalating the global food crisis,
and that the blockade caused by Russia’s invasion of Ukraine is the cause of the decline in wheat farming.

The statements of the Minister of Agriculture came to warn of the suffering of farmers
and facing a financial crisis and the lack of payment for seeds, wages,
herbicides and fuel for the cultivation of winter wheat due to the loss of cash,
as the ongoing blockade on Ukraine and its exports through the Black Sea is the cause of the problem facing Ukraine.

He added that winter seeds, wheat and barley are subject to a decline from 30 to 60%,
which is a large percentage as a result of the aforementioned reasons,
and added that the Russians continue to steal large quantities of grain from farmers in the lands that are seized,
estimated at 500,000 tons of grain, and the war is also causing On the Ukrainian territory,
fires also broke out in dry wheat fields

This crisis is related to ongoing talks between Ukraine and Russia over resuming food exports through the Black Sea.
An agreement is anticipated before next spring; if not,
Ukraine will already be experiencing issues and its wheat harvest will be replaced by other crops like soybeans and sunflowers.

The decline in wheat and corn production next year 2023 will lead to an extension of the grain
shortage around the world and thus raise food prices for a longer period.

The escalation of the gas crisis in Germany

and may resort to passing energy costs to consumers.

If European nations do not respond to returning the turbine that was repaired
in Canada for the Nord Stream 1 pipeline by the end of July,
Russian President “ Vladimir Putin “ has threatened to cut gas flows to Germany
through Nord Stream 1 for a second time to 33 million cubic metres per day.

The reduction in gas supplies to Germany by about 40% and then 20% to 67 million cubic metres
on June 1st came in response to the European countries. It is noteworthy
that the flows of gas through Nord Stream 1 since its operation in 2011 have amounted to about 55 billion
cubic metres of gas annually. Russia was subjected to sanctions as a result of its invasion of Ukraine.

Currently, Nord Stream 1 is entirely shut down for maintenance,
which will be finished next Thursday, at a time when everyone is worried about fully shutting off the gas supply following it.

On the other hand, Germany will also resort to restarting its second Nord Stream 2 project,
and Putin said that there is a road ready for connection, which is Nord Stream 2, which can be activated.

cost increases for consumers
One of the suggested alternatives by the German government to manage the situation
and emerge from the crisis is to permit Uniper to pass the high gas prices on to the consumer,
which serves as one of the terms of the bailout package.
In exchange for intervening and saving the company from the damage it suffered as a result of the conflict
between Western nations and Russia over its war in Ukraine,
which sparked worries about a gas shortage in the upcoming winter and a giant benefited German gas company,
the German government is attempting to save the company by acquiring a stake in Uniper that ranges from 15 to 30 percent.
Due to this information, the stock increased by more than 6%.

UK inflation at its highest level in 40 years and the increasing cost of living crisis

The cost of living crisis has persisted due in large part to inflation
which in the UK reached its highest level in 40 years.
This puts additional pressure on the Bank of England to raise interest rates significantly next month,
and consumer prices increased on Wednesday at a rate of 9.4 percent from 2021,
which is the increase. most significant since 1982

Price increase alerts
The Bank of England issued warnings regarding probable future price increases in light of the biggest increase in inflation to yet.
Energy prices will climb once more on Tuesday,
and rates for restaurants and lodging jumped by an average of 8.6 percent.
Additionally, food prices rose by 9.8 percent, the highest amount since March 2009.

high inflation
Policy makers in the Bank of England are concerned about high inflation,
which could take hold further in the event of rising wage and raw material costs,
forcing companies to continue raising prices, and the Bank of England
is close to raising interest rates by half a point in August in intensifying efforts Defeating inflation and bringing it back to 2%.

“Netflix” loses 970,000 subscribers in the second quarter

Related Topics