Today we expect to see a decent rebound in US stock indices, as investors are trying to put their money into stock that’s currently cheaper due to concerns about the new wave of coronavirus infections.
Netflix is one company to keep an eye on. The streaming giant reported its Q2 earnings yesterday after the close, and they were much better than anticipated. However, the company also lost close to half a million subscribers in North America during the same quarter as many people went back to their jobs. The company also published a more pessimistic forecast for the future of its subscribers, especially now that there is more competition compared to previous years.
Other companies to watch for today include Johnson & Johnson, Coca-Cola, and Verizon, which are going to report their quarterly earnings today.
The Russian Gazprom is also of interest today. Its stock is currently on the rise, as the United States formally agreed not to oppose the completion of Nord Stream 2 in Europe, likely as a result of the recent meeting between President Joe Biden and Angela Merkel. In turn, the German Chancellor got the right to take action against Russia if it perceives that the latter is using its gas supplies as political leverage.
Meanwhile, tensions are running high in Europe. The United Kingdom’s government seems intent on pushing ahead with legislation to abolish the ‘border’ currently existing between Northern Ireland and the rest of the UK.
Right now Northern Ireland is adhering to EU rules in order to enjoy free trade with Ireland, which is separating it from the rest of the United Kingdom as far as trade goes. Boris Johnson wants to change that, which is likely going to be in direct violation of the Brexit withdrawal agreement the PM negotiated with the European Union.
The EU has already threatened that if the UK government violates the agreement, the bloc is going to take legal action. Moreover, the Brexit disagreement might also put a wrench in the talks between the EU and the UK regarding mutually recognizing each other’s vaccine certificates to facilitate travel and save the holiday season.
The British pound once more finds itself under pressure due to these developments, and also because there is no demand for risky assets at the moment, thanks to the rapid spread of the coronavirus.
