First Look With Surveillance: Fed Case, Netflix Surge
Netflix Chief Executive Officer Reed Hastings is relinquishing his role at the firm that he's led for more than two decades. Hastings is stepping into the executive chairman role, handing the reins to Ted Sarandos and Greg Peters, two long-time deputies who will serve as co-CEOs. Hastings is leaving the company on something of a high note – the company added 7.7 million subscribers in the final quarter of 2022, easily surpassing its view of 4.5 million additional subs in the quarter. Netflix has been making a number of moves to shore up its business, including introducing an ad-supported subscription tier in a number of countries (including Canada) and introducing a push to crack down on password sharing. Worth noting that in the wake of the results, shares have been up as much as six per cent in extended hours trading (though shares have been pummelled over the last year, down 38 per cent before this morning's move higher.)
GOOGLE SLASHES JOBS, DEEPENING TECH LAYOFFS
Google parent company Alphabet is joining the ranks of big tech companies taking a hatchet to its global labour footprint. The company says it will cut about 12,000 jobs – more than six per cent of its workforce – joining the ranks of other tech titans that have looked to retrench in the face of recessionary fears and soaring inflation. In recent months, we've seen Facebook parent Meta Platforms, Twitter (albeit with some Elon Musk-related slash-and-burn policies playing a role) and Amazon all cut a significant number of jobs due to those aforementioned macroeconomic headwinds.
NO RELIEF FOR TORONTO RENTERS
The impact of higher interest rates and tight supply conditions were on full display in Toronto's rental market last year, according to a new report by Urbanation. The data by the real estate analytics firm showed rent growth in the nation's largest housing market averaged some 17 per cent in 2022 – as measured through condo lease transactions – a sharp reversal from the 0.5 per cent decline a year earlier. And it looks like tenants are reluctant to test the market as a result of those price increases – turnover fell 12 per cent from 2021's record high (but remains above historical averages.) No real secret as to why tenants aren't eager to pack up and move – units renting for less than $2,000 are down 87 per cent (!) over the last five years, and the vacancy rate has dipped to 1.5 per cent. Finally, glass half-full or glass half-empty – Urbanation expects further rent inflation this coming year, albeit at a more reasonable five per cent pace.
OTHER NOTABLE STORIES
- Pembina Pipeline is dealing with an “emergency incident” at its Northern Line NGL pipeline near Grande Prairie, Alberta. The pipeline has been isolated, and the company is monitoring the situation in an effort to limit the environmental damage of the leak.
- Sticking with pipelines, TC Energy has declared force majeure on shipments and cut volumes on its Keystone pipeline after ice buildup in Alberta caused power outages at a trio of pump stations this week, according to our Bloomberg News partners.
- Home furnishing retailer Wayfair is cutting 1,750 jobs, or about 10 per cent of its global workforce.
- Notable data: Retail Sales, U.S. Existing Home Sales
- Notable earnings: Schlumberger