Netflix Inc. suffered two consecutive quarters of subscriber losses for the first time in its history, and said some key steps it is taking to boost revenue and subscriber growth wouldn’t happen until next year. The company lost 970,000 paid subscribers in the June quarter, fewer than the 2 million it had expected to lose. Netflix estimated it would add 1 million net new subscribers in the current quarter. Netflix shares were up 7.4% in after-hours trading. The stock has had a rough 2022, losing about two-thirds of its value since the start of the year. The streaming giant also has been working to cut costs. The company laid off about 5% of its workforce in recent months, according to a person familiar with the matter. Netflix on Tuesday said cost-cutting measures resulted in about $70 million of severance costs and an $80 million noncash impairment of some real estate leases. Netflix’s revenue came in lower than expected, growing 8.6% to about $8 billion, while operating income fell 15%. Net profit was $1.44 billion, up 6.5% from $1.35 billion a year earlier. Netflix said foreign-exchange fluctuations weighed on revenue and profitability, and projected that revenue growth would slow to 4.7% in the third quarter. Overall, Netflix had 220.7 million subscribers globally. In the first quarter, Netflix had reported a loss of 200,000 subscribers, which at the time was the company’s first quarterly subscriber loss in more than a decade. Netflix said shutting down service in Russia—which had 700,000 subscribers—after the country invaded Ukraine led to the net loss.

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Thanks to the European tailwind, the SMI added 1 per cent on Tuesday closing at 11,122 points. Among the 20 SMI stocks, there were 18 price gainers and two price losers. 33.22 (previously: 30.16) million shares were traded. The business figures of Novartis were well received, the share price rose by 1.5 per cent, even though the figures contained no real surprise. Roche's competitor shares increased by 0.4 per cent. UBS and Credit Suisse added 0.5 and 2.8 per cent respectively. Swatch (+4.3%) and Richemont (+4.0%) benefited from data on Swiss watch exports. Although growth slowed in June, it remained at a high level. Business in China performed better. Holcim gained 2.4 per cent. The building materials group is expanding in Poland. After reporting figures for the first half of the year, Rieter fell by 1.7 per cent. Analysts criticised the mechanical engineering company's lower profitability. SGS (-2.4%) slipped even more significantly. The testing group undercut market expectations with its business figures. Orascom Development Holding (+2.6%) increased after presenting half-year figures.

European equity markets closed firmly in positive territory on Tuesday, following a favourable trend on Wall Street and encouraging news about Russian gas supplies to Europe. At the close, the Stoxx Europe 600 index gained 1.4% to 423.4 points. In Paris, the CAC 40 and the SBF 120 added 1.8% each. In Frankfurt, the DAX rose by 2.7%, while in London, the FTSE 100 advanced by 1%. The nuclear power supplier EDF rose more 14.7% on news the French government planned to take it private in a EUR9.7 billion buyout. The OPAS will be launched by the beginning of September at a price of €12 per EDF share, with coupon attached. Alstom lost 2.6% after publishing its activity for the first quarter of its 2022-2023 financial year, ending next March. Order intake fell 16% year-on-year on an adjusted basis to €5.6bn, while sales rose 5% to €4bn. The European Commission on Tuesday conditionally authorised the acquisition of the multi-technical services company Equans by the diversified industrial group Bouygues (+1.5%). For its part, the British authority, the Competition & Markets Authority (CMA), expressed its concerns about this operation. In Frankfurt, energy group Uniper (+10.1%), industrial conglomerate Siemens AG (+4.5%) and chemicals group BASF (+4.5%) benefited from press reports that Russian gas deliveries to Europe via Nord Stream 1 are expected to resume on Thursday after maintenance operations.

U.S. stock indexes recorded their biggest one-day gains in nearly a month Tuesday, as investors reacted positively to a fresh batch of company earnings reports. The S&P 500 added 105.84 points, or 2.8%, to end the day at 3936.69. The tech-focused Nasdaq Composite gained 353.10 points, or 3.1%, to 11713.15 , and the Dow Jones Industrial Average rose 754.44 points, or 2.4%, to 31827.05. All three indexes logged their biggest one-day point and percentage gains since June 24. They have risen more than 6% from their lows in mid-June but remain down sharply for the year. Netflix, which reported after market close, said it lost subscribers in two consecutive quarters for the first time in its history. But the streaming giant lost fewer customers than it had anticipated — 970,000 compared with an expected two million. Shares rose in after-hours trading. Investors are paying close attention to comments companies make about plans to cut back on hiring or other investments. Some technology companies, including Apple, Microsoft and Alphabet’s Google, have already slowed hiring or cut jobs. Shares of International Business Machines fell $7.25, or 5.3%, to $130.88 after the technology company said shutting down its Russia operations and a strong dollar weighed on its quarterly results. Shares of Lockheed Martin gained $3.10, or 0.8%, to $390.38 after the aerospace and defense contractor reported results that missed analysts’ profit and sales estimates. Shares of Halliburton rose 61 cents, or 2.1%, to $29.46 after the oil services company beat profit and revenue expectations.

In Asia, major indexes are on a strong upward trend in the middle of the week. The Hang Seng Index in Hong Kong rises by 1.7 per cent, the Shanghai Composite gains 0.7 per cent. China Everbright however loses 9.4 per cent. The financial services provider is projecting a loss of between 2.60 billion and 2.80 billion Hong Kong dollars for the first half of the year. The Nikkei-225 recorded the strongest gain, rising by 2.5 per cent. Here, too, it is mainly semiconductor and technology stocks that drive the market. Tokyo Electron adds 5.7 per cent and Renesas Electronics climbs by 5.0 per cent. In Seoul, the Kospi gains 0.8 per cent. KB Financial Group (+4.6 per cent) and Hana Financial Group (+2.5 per cent) record gains.

Short-term U.S. 3-month T-bill rates led Treasury yields higher on Tuesday, as investors turned their attention to rising rates in Europe ahead of the European Central Bank’s interest-rate decision later this week. The 10-year U.S. Treasury note was yielding 3.019%, up 6 basis points with the 2-year U.S. Treasury note also rising by 8 basis points.

Berenberg lifts Danone to Hold (Sell) - Target EUR 52 (50)

Citi cuts Ericsson target to SEK 83 (87) - Neutral

Jefferies reduces Siltronic target to EUR 110 (130) - Buy

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