Netflix: Substantial Profitability Potential Likely To Drive Stock Even Higher Going Forward
By Victor Dergunov
- With Goldman’s recent upgrade, Netflix has officially surpassed all traditional media companies in the U.S. by market cap.
- Content is a subjective matter, but one thing is for certain – Netflix’s original programming has improved exponentially and is now amongst the best in the industry.
- From a growth perspective, Netflix could deliver $60 billion in revenues by the end of 2025.
- From an earnings perspective, the company could earn over $27 a share by that time as well.
- Ultimately, Netflix’s dominance in streaming, incredible content, stellar growth, and immense profit potential suggest the stock may go much higher before a significant top is reached.
British Pound Forecast: Brexit Talk and BOE Data to Steer the Sterling
By Nick Cawley
Fundamental Forecast for GBP: Bullish
We stay bullish on Sterling for the week ahead but caution that ongoing Brexit talks, and the Bank of England monetary policy announcement may weigh on GBP.
On Thursday the Bank of England is expected to leave all monetary policy levers untouched and the market will then look for clues on future moves from the MPC voting pattern and the subsequent press release. Governor Carney may also give his thoughts on Q2’18 UK GDP after last week’s data looks likely to weigh on second-quarter growth.
Sterling traders should continue to be wary of going long of GBPUSD after this week’s hawkish Fed rate hike and should look at other GBP-pairs for potential bullish set-ups.
EURNOK Downtrend Intact Amid Norges Bank Rate Decision
By Justin McQueen
Norges Bank, they have continued to state that rates will be raised after this summer, which in turn, indicates that rate lift off will take place at the September meeting. Subsequently, this has seen the EURNOK downtrend since the beginning of the year in full swing (-4% YTD), with the potential for this to persist.
The latest Norges Bank rate decision will take place on Thursday at 8:00GMT, followed by Governor Olsen’s press conference at 8:30GMT. Heading into the meeting, it is likely that the Norges Bank will maintain its hawkish stance and signal that rates are to rise in Autumn, which will support the Norwegian Krone. This is despite falling inflation readings, which have continued to surprise to the downside.
Will the Opec meeting deliver oil production boost?
Oil prices have been under pressure amid expectations that Saudi Arabia and Russia will take steps next week to increase output after more than a year of supply curbs. Energy ministers from Opec countries and those outside the cartel are meeting in Vienna this week (June 22-23) to debate oil policy with traders and market analysts questioning how far countries will go.
There is consensus between the Saudis and Russians that production should be increased “gradually” if deemed necessary, and the market should be supported by “reliable and sufficient oil supplies”.
US officials have quietly asked producers to increase output to compensate for any losses from Iran, which is under a new round of oil sanctions, and to alleviate the impact of any price spike. A collapse in Venezuelan production has contributed to a rise in prices above $80 a barrel in recent weeks, even as Brent crude retreated to $75 a barrel on Friday.
Goldman Sachs still sees oil rallying over $80 despite market concerns over key OPEC meeting
By Sam Meredith | @smeredith19
- Crude futures were mixed Monday, following a week of losses partly prompted by elevated fears that Saudi Arabia and Russia could soon move to ramp up oil production.
- “Our updated global supply-demand balance continues to point to further declines in inventories and higher oil prices in the second half of 2018,” the bank said, reaffirming its previous Brent forecast of $82.50 during the summer.
- Alongside its allied partners, OPEC is scheduled to meet Thursday in order to decide production policy.