Central banks in Indonesia, South Korea, and South Africa cut rates. It suddenly seems cool to lower rates. Show me the inflation loosely inspired by Jerry Macquire.
Netflix is bleeding. Although the Q2 net revenue at $4.92B up 26% Y-o-Y, Netflix lost more than 1,00,000 subscribers. Its two top shows The Office and Friends are going off the channel by 2021. Further, Netflix is going to spend $15B, the largest for any network to build homegrown content. Also, its free cash flow is going to reduce more than the projected -$3B to-$3.5B. Free Cash Flow is the core measure for valuing stocks through discount cash flow modeling. It trades at a whopping PE of 114.7 TTM.
However, international subscription growth is robust, and a lot of exclusive content is coming on Netflix. Its time for Netflix to find a game-changer. Remember the Game of Thrones and HBO. You never know — time to bring out the best in creativity and artistic flair.
UN lauded the Indian government for its stellar achievement at the high-level political forum 2019 event “From Commitment to Achievement: India’s Experience in Localizing the SDGs.” Between 2006 and 2016, India has lifted 271M people out of poverty. Financial inclusion has been stunning in the last five years. 310M accounts opened, 120 M new gas stoves provided with the most massive sanitation mobilization in the history of the world. Refer to my tweet; News18 article for more details.
The State of Food Security and Nutrition in the World is an annual flagship report jointly prepared by FAO, IFAD, UNICEF, WFP and WHO to inform on progress towards ending hunger, achieving food security and improving nutrition and to provide in-depth analysis on key challenges for achieving this goal in the context of the 2030 Agenda for Sustainable Development. The report targets a wide audience, including policy-makers, international organizations, academic institutions and the general public. Refer to my tweet for the link to the report.
UNAIDS estimates that some $26.2 billion is needed by 2020: the 2018 amount available for the AIDS response was approximately $7.2 billion short of that figure. https://news.un.org/en/story/2019/07/1042551
A recent article published in Bloomberg highlights the gloomy deflationary risk in Europe. 10Y German Bunds trade at -0.2% yield means investors are paying 2 Euros to the government for holding a 1000 Euro par bond for ten years. Bunds are German name for bonds. The article further estimates such negative-yielding debt topped $13T globally or about 25% of global debt. US debt is not among negative-yielding bonds, although 85% of German debt is underwater. Negative yielding bond scenario is reminiscent of Japan and a harbinger of supply exceeding demand. A significant article on global debt is coming up on themiddleroad.org. Stay tuned.
FAANGs(Facebook, Apple, Amazon, Netflix and Alphabet’s Google) along with Microsoft account for 17% of market cap of S&P 500’s $26T. Markets to be very volatile considering the trade war is a long way to go.