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Both the new and the old are feeling frisky, with Netflix Inc. conquering the globe, metals soaring on China growth data, Credit Suisse Group AG signaling the end is nigh for job and cost cuts and legendary buyout firm KKR & Co. engaged in some succession planning. Here are some of the things people in markets are talking about.
Netflix's stunningly good quarterly earnings were built on a subscriber boom that not only surpassed analyst forecasts but made the company's international audience bigger than its domestic one for the first time. Shares jumped about 10 percent in after hours trading. The company will reach at least 20 percent of broadband households in five of its largest markets outside the U.S. by the end of the year, according to Instinet. Elsewhere in web-land, Microsoft Corp. and Google pleaded with U.S. regulators to preserve strong net neutrality rules, while AT&T Inc. and Comcast Corp. backed weakened oversight.
Credit Suisse told employees it will focus on businesses that generate higher returns in its next strategic plan, signaling the era of cost-cutting and job dismissals may draw to a close. The Swiss-based bank is midway through a three-year overhaul reorganizing operations around wealth management and emerging markets. Meanwhile, storied buyout firm KKR prepared for the day that the founders referenced in its name are no longer at the helm. Scott Nuttall and Joe Bae, two veteran executives in their 40s, were elevated to be co-presidents and co-chief operating officers, responsible for day-to-day operations.
Copper surged to a four-month high to lead a rally in base metals after China reported GDP grew faster than expected in the second quarter. The data came just after the Communist Party’s People’s Daily newspaper warned of potential ``gray rhinos'' -- highly probable, high-impact threats people should see coming, but often don’t. That may signal that the deleveraging campaign will continue, and that's probably bad news for the world's worst stocks -- the ChiNext index of small-cap shares. China also is waving a rusty rag at U.S. bulls, boosting steel output to a record just as the Trump administration weighs steps to cut imports. And elsewhere in the world of commodity giants, Elliott Management Corp., the activist hedge fund run by billionaire Paul Singer, is planning to woo retail investors in BHP Billiton Ltd. as it pushes for a change of strategy at the world’s biggest mining company.
BlackRock Inc. CEO Laurence D. Fink says the U.S. is growing more slowly than expected and faces "dark clouds.'' He fretted about whether the White House can quickly pass key reforms. There was some gloom in the asset manager's earnings too, with a record $74 billion in ETF inflows overshadowed at least partly by revenue that failed to beat estimates. In general, Americans are feeling better about their jobs, their fortunes, their economy. That's the outcome from a Bloomberg national poll, one that also shows they aren't all that happy with their president -- just 40 percent of Americans approve of the job Donald Trump is doing in the White House. Another concern on the horizon is the new subprime boom -- this time in autos.
Japan is eyeing a return to the glory days by wooing the Saudis to try and get the world's biggest IPO. Members of Saudi Arabia’s royal family visited Japan last September and again in March, and Prime Minister Shinzo Abe was among those trying to make sure at least one message got through: Please list Saudi Aramco in Tokyo.
This is what's caught our eye over the last 24 hours.
- Look out below! Bitcoin dropped through $2,000 on cryptocurrency infighting
- Brexit talks resumed, and domestic U.K. politics got uglier.
- Mohamed El-Erian says Jamie Dimon's alarm is warranted.
- Tesla shares slid after a vehicle crashed, and Elon Musk tweeted about share prices.
- Titleist not amused by lewd golf parody.