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“The FTSE 100 started a bit lower on Wednesday after UK inflation moderated to come in just short of expectations," says AJ Bell Financial Analyst Danni Hewson.
“However, these figures are already firmly in the rear-view mirror and probably bear little comparison to current realities given the surge in energy prices and mounting supply chain issues seen in October.
“Online reviews outfit Trustpilot was getting a bad rating from investors after several major shareholders sold a chunk of their holdings at a discounted price.
“Cyber security firm Avast’s latest robust set of numbers may prompt increased regret over its impending exit from the UK market, following its merger with US rival NortonLifeLock.
“Burberry’s new chief executive Jonathan Akeroyd got the thumbs up from the market. An experienced operator in the fashion market – his tenure at Alexander McQueen was seen as a success as he revitalised the brand and primed it for international expansion.”
Netflix
“Content is king, certainly when it comes to persuading consumers to shell out for streaming services. Netflix has fought back from Covid shutdowns and has a roster of new material scheduled for Q4 that bosses say puts them in ‘uncharted’ territory.
“Subscriber numbers have been picking up, thanks primarily to hit series like Squid Games and as nights close in Netflix is anticipating a surge in demand as old favourites return. It doesn’t discount the increasing competition, not just in getting eyeballs to its content but in persuading content creators to sign on the dotted line.
“Not all series can enjoy cult status, but the Netflix juggernaut does dangle the possibility of global consumption, of taking a small foreign language project and elevating it to something that is on everybody’s watch list.
“Spend money to make money certainly seems to have been the zeitgeist here and the same ethos is expected to spread to game design and delivery. Being the number one choice in entertainment is the goal and the focus will be a joined up, ad free experience.
“But this is a long-term goal and the immediate one must be damage limitation following a comedy special which has been labelled as ‘transphobic’ by some groups and will see some staff stage a walk out later today.
“The issue has somewhat overshadowed these results and wasn’t addressed during the investor briefing but during a later interview with Variety one of the bosses did accept he’d handled the situation poorly, though explained that creative freedom always had the potential to create division. It’s a difficult line to tread and investors will walk their own path on this one.”
Antofagasta
“An iffy production report from Antofagasta has put the miner on the back foot. Blaming the weather would often get short shrift from investors but it is possible to have some sympathy with the epic drought conditions Antofagasta is facing at its copper operations in Chile.
“Getting metals out of the ground requires plenty of water and Chile has faced years of minimal rainfall. There is also some concern about looming changes to Chilean mining royalties which could see the company get a smaller share of production revenues.
“In the wake of Covid and amid elevated commodity prices, countries may well be tempted to increase their take as they look to rebuild broken public finances and the mining sector may have to prepare itself for a wave of resource nationalism.
“At least in the areas it can control, like cost and growth from new projects and initiatives at existing mines, Antofagasta is doing a decent job.
“Longer term the prospects for the copper market are underpinned by the metals importance in electric vehicle and renewables infrastructure. Both areas are likely to see significant investment as the world looks to address climate change by reducing carbon emissions.”
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