let's talk netflix. you guys -- you and i love talking about netflix. really interesting numbers because they lost fewer described -- and subscribers than they thought they would in the second quarter. 970,000 versus the 2 million the forecast. they are only going to add a million in the current time and when they forecast 1.8 million. these are as a big-name title that actually help them. you've been bugging me about it for weeks. what have you been watching? >> i have been watching stranger things and i said yesterday it is a lot gory or than it has been in seasons past but somehow i am addicted. court that gore generated 1.3 billion viewing hours. the best four weeks for a season netflix has ever had. clearly that might be helping the stock. >> thank you. let's stay away from netflix now. let's bring in this portfolio manager. why are shares up if they still lost almost a million subscribers? >> it is kind of a confusing report. if you think about it, it is kind of a sigh of relief i a lot of people coming to the numbers. obviously, the projection go

netflix was to be disruated _ quite. netflix was to be disrupted in _ quite.quite. netflix was to be i disrupted in the category, quite. netflix was to be - disrupted in the category, it is facing disruption itself. tn is facing disruption itself. in silicon valley it has released its new audience figures for the last quarter and they are not especially good, they lost a million subscribers in the last three months, what's gone wrong? loads of competition, disney plus, amazon prime, apple tv, the competition has created a brutal spending war, the top eight streamers projected to spend $100 billion content this year. netflix came up content this year. netflix came up with some monster flicks, the crown and lex productions nominated for 27 0scars this year, the company still making good content. the cost of living crisis has led to belt tightening with families looking to streaming services as a saving. many households don't have an account but share the logins of friends or family. one study found netflix was losing 25 billion to dollars a yearfrom was losing 2

and so my point is that for a long time people viewed netflix as disruptor everything that netflix did was right. everything that traditional media is wrong they do all the thing this is he do whether it is windows, sell ads, put movies in theaters, all that stuff why? it generates more revenue and more cash flow you're segmenting the marketplace. you're capturing all of the revenue under that demand curve. so it's going to take an adjustment on the part of netflix to pivot from the disruptor that burns cash flow they're going to grow up and become something closer to a traditional media company. that is something that investors applaud because it's the rational thing that will generate the most cash flow for the assets they do have. >> yeah. so interesting netflix is more of a traditional media company and vam is valueds much now you have all of these other players competing head-to-head because we're seeing this disney push towards their bundle. we're going to see the warner brothers discovery bundle. we could see moribund willing of all of the other services. how do you that i is go

netflix coming up short its dismal anticipation. it's not out of the woods just yet. >>> plus european policy makers getting set for an emergency plan to deal with the global energy crisis and russia's role as primary fueler for the block. our own brian sullivan is on the ground with what's at stake in europe. >>> and later on, cathie wood admits defeat for one of her worst supported funds. you're watching "worldwide exchange" right here on cnbc >>> good morning and welcome to the show i am dominic chu here at cnbc global headquarters. brian sullivan, as you can see there is in longen held, germany, with a look at the energy prices and the possible gas cliff facing not only germany, but the entire continent as well. brian, you're wearing a hard hat. >> yeah. we're here at the foundry, a 60-year-end family foundry why are we here, dom we're here because we're going to do this all show long and awe all day long on cnbc, we're going to connect the dot tweens the energy crisis and nord stream pipelines and why u.s. markets care we're go

and netflix -- you and i love talking about netflix because you and i love so me the shows. they are up 7% after hours because they lost fewer subscribers than they thought they would, 970,000 versus the 2 million they forecast, which is the eye-popping headline. there is a big name title that helps them there. you've been bugging me about it for weeks. what have you been watching? emily: i don't know if it's my absolute favorite. but stranger things -- it has been gory or than seasons past. ed: that gore rated 1.3 billion viewing hours. the best four weeks for a season netflix has ever had. clearly that might be helping the stock. emily: not bad. a few of those hours for me and my couch. let's ring indent morgan. explain this to me -- why are shares up if they still lost almost a million subscribers? dan: it's a confusing report. if you think about it, it's a sigh of relief by a lot of people coming to the numbers. obviously the projections going into the third quarter are below expectations in the terms of a number of new subscribers. they are saying they are going to add

netflix says it's ready for growth. we'll talk to our correspondent on wall street, and it's a growing market literally here how german businesses are preparing to capitalize on the greater need for weed. this is d w business. i'm christy flats, and in berlin, russian natural gas deliveries through the north stream one pipeline are now expected to resume thursday after the completion of scheduled maintenance. that's according to 2 sources. familiar with export plants who spoke with writers. russian energy, giant gas prom had previously said it could not guarantee gas deliveries due to quote unquote, exceptional circumstances. the pipeline supplies more than a 3rd of russian gas exports to the you. earlier a european commission spokesman said the block is making sure it's ready if russia does, in fact cut off gas tabs in coming months. what is clear is done when we are preparing winter contingency plans, winter preparedness plans. we base ourselves on the worst possible scenario, and this is absolutely obvious. the presi

yeah, and netflix has been bleeding users this year. what is the company doing to turn things around? they sound pretty helpful now. yeah, christiana, it has been the 2nd quarter in a row that netflix is losing, and subscribers that they try to solve this for some customers with an ad supported program. i mean, you can still for the regular price, get netflix without an ads, but you can also, or will probably be able to sign up for a model that is an ad space and then you'll pay less. another big issue is also sharing a password. so they want to crack down on that. there are some try runs already in south america. and then at the end of the day, it's also content content content. so we've been quite successful with their strange things. so for example though, but at least in the last quarter, things weren't as dim as expected by many analysts. right, well they have been expecting things to be pretty done because netflix market valuation has gone from $300000000000.00 to under $90000000000.00 and less than a year. what went wrong over th

tomorrow we will hear from a big investor in netflix and we will break down netflix results.don't forget to check out our podcast wherever you get , your podcasts. i'm emily chang in san francisco. this is bloomberg. ♪

netflix you are committed to watching the show.kind of commitment keeps the consumer, the entertainment consumer, glued to the screen. the formats can be different i doubt there would be something like preroll i think it will be in the show but it, again, doesn't have to be your traditional 30-second tv ad >> does the whole thing make you feel more bullish or bearish on netflix? >> i think bullish in the sense that this can generate a lot of revenue for netflix and microsoft. i think in the near term there's risk if you're thinking long term, it's a great opportunity if you're thinking very near term, you're probably a little ski skittish >> appreciate your insight thanks so much today >> thank you >> mark douglas with mountain. >>> coming up, we'll get the traders' take on netflix and some names to buy in what could be a rough earnings season "the exchange" has more after this [sfx: street ambience] ♪ ["fly me to the moon"] ♪ ♪ ♪ imagine a community where millions share ideas and trade stocks, crypto and beyond. to the moon? in ot

and we will see if netflix is really going to be successful. let's say with the ad supported system or also cranking down on pad for cherry corps to thank you so much for that now to some of the other global business stories making as well. sticking with tech, amazon is doing people who leave fake product reviews for products on the platform . a major problem flagging the e commerce giant. amazon has filed a lawsuit against the administrators behind over 10000 facebook groups, which are reportedly used to recruit people to write fake reviews. a delaware judge has ruled that a lawsuit filed by twitter against billionaire. you on my will proceed to trial in october. it was the 1st hearing in the legal, tough, all over, must abandon $44000000000.00 deal to buy twitter. the social media company wants to force him to complete the buyout as a s and the scan and avian pilot unions have settled a wage dispute. and then a 15 day strike, the scanner may be an airline announcement, reach an agreement with all pilot unions and can now resume normal operati

netflix has created 72%. maybe it is still. expert on netflix, she is a u.s. analyst at bloomberg intelligence. they are still addicted to a $200 million cost for the ryan gosling vehicle "the gray man" which wikipedia has launched out in limited release with a 52% rotten tomato. kailey leinz tells me 52% rotten tomato doesn't get it done. how big of a train wreck is this going to be. do we know yet? >> this has always been the big question for netflix. the quality of some of its film content. but we see is that they have some really, really tremendous viewership numbers for a lot of these budget films. you look at films like "extraction" for "red notice," they pulled in 90 million to 100 million viewers. that is comparable to any big-budget release. i think when "the gray man" comes out, the most expensive film that netflix has ever made, is still going to attract a lot of viewers on the platform. the question is how much does it get in its theatrical release? it is only being released in about 450 theaters. kailey: it is also a question of how many viewers a

there's something about netflix being courted. we will take a look at which one makes the most sense. we start off with below negative. it is a sign of pending recession, it is back up 19%. given a new lease on life to this growth trade. it is kind of confusing. if there is a recession coming. >> i'm not sure you want to be in a zoom but i think we've seen this before. there is enough growth there in terms of balance sheet. if you look at the charts, microsoft and amazon, challenging that 50 day. that tells you what is going on. look at the triple cues which is the nasdaq 100 and the s&p. 3.5% since just before memorial day. that doesn't seem to make sense unless you are talking to the yield curve. about three days ago or in the last week, some of those big moves down and the yield across the bond market was breaking something. is the feds going to break something? today they don't care. it tells you the feds is on the front. if you look at the short end of the curve, there is a flattening which means the short end sold out more t

almost all the competitors and netflix have an advertising based here and most competitors netflix they don't make you pay more for better quality video at netflix . you have to have that premium tier in order to have that great. picture you also have to pay more to have more simultaneous streams and a lot of people say hey, if i'm paying you extra already have multiple people streaming. why can't i share that password with my friends and family, even if they don't live in my house, so let's talk about some of the challenges the competitors, right we have hulu. we have disney plus essentially is netflix, forcing those other guys and gals to up their game? i think it's the opposite. i think it's the other way around. you know, netflix was and still is the biggest service, but they haven't had to change their model in a while. and all these new services that came in. they started to eat their lunch, and they've started to introduce new options. new features and new things that people are saying, hey, i actually like that, not to mention yeah. you know all of this. not all program, but a l

all of these strategies show netflix becoming a bit of a more traditional media business has netflix just fallen behind the kind of innovation of the future that you write about in your book with "the meta-verse"? >> i wouldn't say they've fallen behind on the innovation of the future, but what we are seeing is the adoption of more traditional business techniques. of course, it was nearly a decade ago that reed hastings and richard plepler got into a scrap as to whether or not password sharing was going to be bad for the industry overall netflix's competitors have long expected advertising and we're seeing that as the service grows and saturates, as churn goes up while they try to maintain high arpu, they need to adopt a more diversified revenue profile. >> so matt, before we dig into your very exciting new book, what is your prediction for netflix and what the rest of this year looks like are they going to be able to turn around their subscriber growth, or is this going to be a tough environment for them >> it looks pretty challenging when you take a look at the company's profile, a

netflix, of course rallying.s than bad, i think is the best way to describe it, subscriber laws. no subscribers are being bled out in europe and america, then if you look at the emerging markets, latin america, that is where you are seeing growth. that is helping netflix stock this morning. we should also talk about some mostly-better covid tests. it is morning as the covid situation gets better, how much of their bottom line -- how much does that help their bottom line? let's talk about bath and body works. they cut their second quarter eps estimate and outlook. that has everything to do with consumer income. if you are concerned about recession, you are concerned about that ability to spend. let's talk about fake reviews. 13% lower after they took a right down to shut down their operations. you can see that showing up on their bottom line. let's go back to the dollar story. that is going to show up again in the earnings story. it did week and a little bit, coming back higher today. the question is, does it cont

of course, for netflix, that's necessary. it has recently seen subscriptions go down for the 1st time in its history. producer moses papa. toby has no illusions about the motivations of streaming platforms. we both recognize the. busy assuming platforms are businesses and they're not, you know, you're only chargeable or csr our mission. they're here to also make money. we was on the sun amid the streamers midway, where we want to be authentic to our stories. we want to do stories that are commercially viable to get new stories and content, the streaming platforms invest locally. that's true for all 3 big players in africa . netflix, the south african platform shall max an amazon prime video. they provide storytelling workshops or technical support. so max producers shows like the comedy series garner ger laugh, filled in lagos, and across, and, and specifically at the west african market. and early 2022 amazon prime video set partnerships with nigerian film production companies whose films will be included other streaming pla

emily: netflix earnings are coming up.ve been talking about the success of "stranger things," and what would you bet is going to happen here? are they going to buck the trend that we saw earlier or will we see a slow degradation in the number of subscribers for a while? matthew: it's clear by all benchmarks that stranger things season four was as accessible -- third-party analytics show some are weaker than we hope for. one company shows that netflix ranks second last in terms of subscriber retention after 30 day sign-ups. there also at a four year high for the oversaw -- overall services term of retention. even if it was a strong quarter for ads, the elevation will likely be offset. emily: lord of the rings, the new series, jeff bezos tweeted out the trailer last week. you think it will be a megahit like stranger things has been for netflix? matthew: stranger things is still breaking records seven years later. i think it will be one of the most significant things that amazon overall does in 2020 absolutely. emily: what is

of the netflix. many serious maya and the 3 is an animated fantasy adventure inspired by meso, american for so pre colonial mythology. the series was created by jorge gutierrez, who is also the director and co author in the series he creatively and authentically integrates mythology from the indigenous groups of america. actress so it's al danya, who lent her voice to the heroine. maia is delighted by the project. i get to share what i most excited about, which is my heritage. i love my love where i'm from. i love who i am in a church, and there's so much about latin x culture that we don't know when these are civilizations that are thousands of years. so, you know, asked ag culture in my, in culture, indian culture, the arrow actually error. so the caribbean kish these are, these are civilizations that basically define beans. nice. it's pretty cool to see just how punch she is. stories are of course easier to relate to when they line up with personal experience. but simply putting together a more di

netflix has been a sub fee story. they didn't need advertising they needed people to pay every month to get it. as greenfield pointed out, you need people to watch you don't need new subscribers every month. you need those who watch to watch for a long period of time. >> it changes the programming you have and it changes -- we talked about it a couple of weeks ago -- the possibility where you have to renegotiate with the licenses that you have. >> it's a different thing. >> it will cost more. >> isn't it nice to have both? that's why cable is so good, subs and advertising. >> that's why it's nice to window movies. it's nice to take your movie, bring it to the theater, capture it here. >> the new payday is starting to look like that, she's going to talk about how this is changing the calculus of how this looks >> the old school is you take it to the theater or netflix and take it and sell it to somebody else. >> look at tom benjamin button, tom rogers, he's de-age 20d years. that's incredible. that's awesome that's ama

netflix was a company that only traded on subscriber growth.pretty much was the singular metric people looked at. now you have a decline in subs and a downward guidance to the third quarter subs, and the third quarter outlook. there is clearly a shift in sentiment and a reprioritize ation of what the relevant metrics are, and it is increasingly looking like monetization over the absolute number of subs. emily: the markets took a turn in part because of the subscriber loss, do you think this shift in sentiment will buoy markets through earnings the next six weeks? >> near term, absolutely. i think the sentiment has become so low that you are going to see some level of relief. obviously, we are not out of the woods as it relates to inflation and what that that will do -- that that will do, but i think what you will see is an increasing appreciation for mean reversion rates. these companies had so much demand during covid and then you had this growth drop off the last couple of quarters where it looked like, is this a structural change where deman

is this the trend now for netflix? 1 million - for netflix? the warning of a 2 million subscriber loss but will be seenin subscriber loss but will be seen in the next quarter and the next quarter?— seen in the next quarter and the next quarter? they expect next quarter— the next quarter? they expect next quarter to _ the next quarter? they expect next quarter to be _ the next quarter? they expect next quarter to be brighter. i next quarter to be brighter. they really have been challenged in the high market of the us but asia—pacific and latin america is still growing for them. 220 million viewers out there, no longer easy to find additional people to make up find additional people to make up for the find additional people to make upforthe group find additional people to make up for the group that will inevitably leave them each year. inevitably leave them each ear. ., ~' inevitably leave them each ear. ., ~ , ., inevitably leave them each ear. ., ~ ., year. thank you. good to get our year. thank you. good to get your analysis. _ the battle bet

netflix was one we were watching, managing to do pretty well. we are looking at carnival, lower by 8% on the section, announcing a share sale, selling some shares, and that is pushing the shares lower by a percent -- by about 8%. mccallum announced a re-opening for the casino. then tesla was a big one. i know you are all over the story. was much higher earlier. coming off those gains a little bit. you are up 0.5%. the numbers look pretty good. emily: we are going to talk about that more now. taylor riggs, thank you for that update. i want to bring in steve westly, also former longtime member of tesla's board. i know you are liking what you see. investors seem a little lukewarm. what are you thinking? steve: it is great news for tesla. everybody thought it was going to be a soft quarter. there were supply chain issues, closing the china facility. we saw 254,000 units delivered, 53,000 increase year-over-year. big surprise was revenue and profitability. they hit $16.9 billion. the biggest news is largest car deliveries in history in june. they are

david: so you go over to netflix.ow when everybody is -- when somebody is famous, and they move, say that a baseball player or a football player, they go to a different team or somebody tries something different, people are always saying this person isn't really as good as their reputation, and they're going to flop. and there's a lot of, i would say, in hollywood, maybe there's some people that don't like people that are too successful. and so they're kind of wishing secretly maybe they're gonna flop. but you didn't flop. you had an incredible hit. your first show, "bridgerton," was the most successful opening show of anything on netflix ever. ♪ >> all is fair in love and war. david: so, when it went on for the first time, were you worried that night whether it would actually be a success or did you not panic? shonda: you know what's interesting? i wasn't scared about the success of the show. that's not my job. i always say that. i was happy by then because netflix was already happy. everybody had already really like

microsoft could build on its newly inked ad partnership with netflix. apple has a growing interest in media, though it's constrained by regulatory scrutiny and comcast and nbc universal, cnbc's parent company, could look for more scale to build on its streaming ad strength. there are other companies that could feel pressure to merge as both advertisers and consumers pull back. warner brothers discovery, which is reckoning with its heavy debt load and paramount, if controlling shareholder sherry red stone decides that her stock won't reach the heights it hit last year, so interesting, guys. john, curious what you think of some of these tech giants, if they could, from a regulatory standpoint, would take the opportunity to snap up some of these media assets as the stocks continue to decline? >> i don't know, julia i mean, netflix, even here, its market cap is over $87 billion you have to spend at least $100 billion to get it that would be so huge. roku, whole different issue, around $13 billion that's a lot more digestible but still, in this market, carl,

netflix giving me? the possibility that advertising could be good? the idea that somehow there's a microsoft tie-in and then the "grayman," it better be unbelievable >> i think it goes live friday, right? >> ryan gosling. >> yeah. >> the younger people in my office are raiching about the people who are in it there you go someone said chris evans is in it i thought chris evans was an analyst. do you know his body of work >> no. >> chris pratt >> i know pratt, certainly know pratt. >> i know pratt & whitney and i liked their quarter. i know all the wendys. look, i absolutely understand, it wasn't $2 million loss to, only $1 million loss i have got companies that are gaining substantially but not gaining enough, whatever they're supposed to be gaining halliburton last night they claimed they were sold through and realized they made a mistake. they shouldn't have said they can add so much more yet the stock was -- had come down from 38 to 29, didn't go up >> rather own met ta at 12 times gap earnings >> yes

i think netflix as a 2024 long not now and not next year. >> so netflix in a statement says it's very early days, to your point, but our long term goal is clear, a premium better than linear tv brand experience for advertisers. so what does that look like even in the long run for netflix in terms of revenue >> sara, i think this is great i'm a huge fan of netflix's management team. they've been phenomenally visionary. i think they missed this one i think they should have entered into the advertising market maybe a year or two ago but that's okay. they have a large platform of 220 million users and you bring in a lower priced plan that's ad supported, there are so many wins in here for netflix if they execute well, and this will take time, but so many wins you will reduce churn, bring in more subscribers that are price sensitive and we've seen price sensitive in our survey that is we've done on netflix over the years and in international markets and you're going to help them grow in parts of the world where offerings, advertising video on demand, avod, asia-pacific has been a challenge

it created a hyper competitive environment for netflix which is top of the heap. trying to get market share from them. how much is that competitive dynamic as we show viewers the price of streaming platforms and those on se certify sirius xm >> so, there's a plus and minus here the good news or bad news? >> bad news first. >> the bad news is if you ente a period of economic downturn when consumers are going to be tightening their discretionary spend and there are studies that this has begun already netflix is the most expensive streaming service out there of the standard streaming services. that's what you saw on the wall. more expensive than hbo max or disney plus or apple tv or paramount plus the good news is that is a feather in netflix cap with the average revenue per user it is higher that is what investors like to see. the bad news it is the first service to go if you are looking to save money in a time period where you may need to save money. we didn't see that during the pandemic in the last recession that's because everybody was stuck home netflix was act

. >>> plus, the future of netflix, the streaming giant losing nearly a million subscribers. will you be seeing even more commercials as you stream? >>> and with a severe pilot shortage, our exclusive look at how one major airline is using former top gun pilots to train the next generation. >> announcer: this is "nbc nightly news" with lester holt >>> good evening, everyone, this is what scientists have been telling us the future looks like, except it is now temperatures far above what was once considered the summer norm, inflicting misery and creating a health danger for millions living under record heat from california to western europe as well as parts of asia and africa in this country, the torrid conditions setting more new records. dallas hitting 109, as did oklahoma city. dodge city, kansas, setting a new record at 107 across the pond, the usually temperate uk hitting an all-time record high, 104 degrees, bending and breaking train rails that's how hot it was. >>> fires near london prompting a tweet from the mayor, warning fire units are under immense pressure, please

any final thoughts here on netflix?be a big talker tomorrow during the trading day. >> and we have gone through a lot of fundamentals. the stock traded up through the $4.19 low down to $2.11 and you're back in that range here. i think you hold the bottom end of this range, it's tough for the technical standpoint of the stock. >> time for the final trade, so let's go around the horn and we'll start with with tim. what's your final trade? >> why not? airlines are going to report and delta already reported that the airlines are trading not only with the recession but not seeing the return in european flights. so we are getting better trends and i think they will continue. >> i don't like buying things at 4 percent, 5%, but mattel i would buy because they traded up today. with the disney princess franchise, i think it's a great team and they have done a great job. >> dan? >> that 2020 breakout level 105, 100ish is really important. that's what i want to start nipping at but i wanted to hold that level. >> and guy, what's yo

we watch a netflix, gaining. a return to growth after losing 970,000 subscribers in the second quarter. less than what wall street feared. that is thanks to stranger things, let us work with our senior editor. they are calling it a success. it is less bad than what was expected. >> we are seeing it in the stock. it is a relief rally. it is also taking some of the warner bros., disney, paramount, all of these other companies with it. there has been a lot of anxiety in hollywood about the streaming business speaking and it is not robust growth of the are protecting but it is a return to some growth. heidi: i think it is clearing a very low bar that was set. even netflix acknowledging it is hard to contact allies that as a win. what do we see in changes to revenue strategy if we see a continued slow down when it comes to growth outside of basically everywhere except asia? >> they are doing quite a few things and they updated that on us today, advertising, they did subtly delay it, it was going to be an ad supported

with netflix, it is are they going to lose subscribers again. ubs really slashed their target.55 to 198 or something and they are saying that we're expecting subscriber loss in the u.s. and canada, but these other initiatives that they are doing to turn things around on their subscriber front, it will take a year or two to pan out, that means the ad-supported cheaper plans, and the gaming thing that they have been working on, that will take even longer to pan out. and then you go on to apple, lots of things going on in apple. we talk about china so much, but beyond that, there is a lot of signals that app store growth is not as blockbuster as it was during the pandemic. and in fact it might even be shrinking in china and plus foreign exchange headwinds also hitting apple and as we know it is hitting microsoft big time, that is the real concern for microsoft >> and microsoft has warned about that i think if we're all expecting bad news, does that lessen the odds that it is at least a downside surprise? >> it could be >> it is just weird to see everybody agreeing all at once that

heidi: the latest on netflix. you can also turn to bloomberg, dayb is where the analysis is coming from. bloomberg's team of expert editors are reacting as we get there webcast. u.s. stocks are surging into a broad base rally. speculation is that the market is close to bottoming out. we turn to orfield reynolds. we were talking about the bfa survey and how pessimistic surveyors are as inflation expectations are alleviated, this stagflationary state of mind? >> it is understandable that a lot of investors have driven money away from equity. there has been such a toxic mix of dynamics going on out there from the revival of covid zero shutdowns in china and the impact it has had, growing political tensions with china and the russian invasion of ukraine and what that has done. you have inflation taking off and the fed taking -- acting aggressively to combat that. understand when people pullback, the big question a lot of people have also been asking is our weight there yet? -- are we there yet? are we at the bott

is it a netflix horror show? what's the true impact for the streaming service as it loses a million subscribers? hello and thank you forjoining us. of more than a0 degrees celsius have been recorded for the very first time. the heatwave has caused widespread disruption and a major incident has been declared in london, where the mayor sadiq khan said fire crews were struggling to cope. the un's climate chief has warned heatwaves like the one gripping western europe are becoming more frequent. our first report is from our climate editorjustin rowlatt. with today's searing heat came fires, and lots of them. huge plumes of smoke rose above london as grassfires engulfed homes on the outskirts of the capital. the london fire brigade declared a major incident. a number of the calls that we've been dealing with today have been wildfires or grassfires, where the ground has been tinder box dry result of the weather over the last week, but in particular, the last two days. temperature records were tumbling before midday tod

the president of microsoft was on netflix board. he was personally involved in this effort last month. the move is progressing with added products and it has a chance of incremental revenue, quite a win for microsoft's ad business which is 6% of total revenue, julia, kind of interesting mix of things that netflix must have had to consider. maybe it didn't want too much infrastructure in the amazon basket and lots of other potential add providers or competitors? >> that's right, this is a very specific decision to go with the microsoft comments as they did not want to be partnering with a rival and they were really focused on the global rate. the three things netflix cited was the global reach of microsoft, the fact they say microsoft has the best privacy protections further user data which may be a little bit of a dig at google and they also cited this idea of flexibility down the line. you have to wonder if maybe this means netflix builds out its own capabilities, maybe they will shift some of that responsibility internally. but i

one study found that netflix was losing $25 billion a year from people watching netflix on someone else's said they would consider scrapping to netflix if it offered a cheaper ad supported tear. 0ne ticket—holder here in the uk has scooped a jackpot of nearly £200 million — in what's being described as the biggest uk lottery win of all time. tim allman reports. it was only two months ago thatjoe and jess thwaite celebrated their immense good fortune. their numbers had come up, and they had won £18a million in the euromillions lottery. but now they seem almost like paupers as an even bigger jackpot is about to be claimed. in the latest draw, a uk ticket holder has won £195 million. that is worth around $23a million. in a statement, camelot said:. ...millions of dollars, get those tickets out! of course, the best thing about it is a lot of money but it pales in comparison with some other lottery jackpot winners. in america, these sort of big pay—outs are not that unusual. a mother of two, mavis, received a cheque for more than $758 million five years ago. and spain's el gordo, or the fat on

i don't think netflix should be lumped in with those stocks anymore. i really don't it was in there -- >> okay. >> -- for a specific period of time for whatever reason but now that's decoupled itself from that group of stocks i think it is now, just an apple -- i don't think necessarily that facebook is in that group, these are companies that have their own individual challenges that have brought their stock prices down. it's not like they came for the generals like apple and microsoft, they're going down for the same reasons a netflix or-facebook were going down -- >> do you know what today's rally is really about, honestly? it's two stocks. it's united health, which is the largest waiting in the dow, just to remind our viewers, the dow is not structured the same way the s&p 500 is, it's weighted based on price of stock, which seems absurd but it's okay united health is the largest weight in the dow. it's 10% of the dow. so they're having a huge day, great upside quarter no read through for the rest of the market and economy, talk about a company with

and the heat, this week we have netflix, johnson & johnson, tesla, american express just a few of theames that report you can see them there all on the wall our next guest has a guide for investors on how to cope with it and it's peter anderson of anderson capital management. peter, you say this is a time for intelligent fortitude. what does that mean and what is the opposite of that >> well, good afternoon, everybody. so i have created over time, tyler, just a set of guidelines for what i think investors really need going into an earnings season like this. we all go in with our minds on fire and sometimes it's better to just have a set of guidelines and the first question i ask is should you even be here, meaning, do you have the stomach to suffer through this earnings period i think this earnings period can be tremendously changeable you'll have every kind of interpretation of what people are seeing for the next six months so if you don't have a long-term horizon, you shouldn't be listening to earnings reports and long term meaning over a year and then the second thing is with these

they are learning from netflix. learning and investing, so they are better in competing now, professor says a lot of netflix social buzz about netflix original shows has gone to his competitors. and many households are cutting back on the average 3 to 5 services. most have rarely use any of them. lily paypal pays for four streaming services as well as cable, but not for long. i'm just trying to cut back because i have so much, and that just seems like clutter in a way, just stuff. i don't use stuff i don't need. disney has its own streaming service, plus theme parks, theatrical films. toys and clothes. amazon has prime video plus its shopping service and whole foods nonetheless, rana we, she says netflix works for him, his wife and especially his kids. they're happy and we're happy. we'll stick with it, but it really depends on what what there is and what they're offering at the time and talk about erosion. how about comcast 2021? it lost 1.5 million customers 8% of its cable customers, and the erosion continues. to

and all eyes in the media world have been on netflix's earnings because as goes netflix, often goes the streaming sector as a whole. other companies like disney will be reporting irnings in the days and weeks to come and there is a lot of focus right now among investors on the performance of these streaming platforms and future of streaming video. we know netflix is taking some steps to diversify to try to bring in sub skrishscribers in different ways. it talked about experiments around pass word sharing, trying to crack down on it in some countries in order to entice more households to pay for the service. the company is also working on an ad supported version of netflix that would cost less. trying to gain more subscribers that way. the company says that in the third quarter of the year, it expects to gain about 1 million subscribers, that is not as many as some analysts had been hoping but it does seem still to be somewhat good news for the company following a dramatic correction in the stock price earlier this year. netflix of course the giant in the streaming business turning out s