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Investors in Netflix Inc will need patience to reap the rewards of a costly push into original content and international markets, analysts said, as slower subscription growth triggered a sharp drop in the company’s stock.
Netflix shares were set to open down 25% Thursday, enough to erase about US$7 billion of the company’s market value, after fewer new subscribers than the company had forecast signed up to its video-streaming services in the quarter ended September.
At least 19 brokerages cut their price targets on the stock by as much as US$150 to a low of US$300. The stock closed at US$448.59 on Wednesday.
Netflix, whose original shows include “House of Cards” and “Orange is the New Black,” plans to spend US$8.9 billion on the acquisition of new content in the next few years.
J.P. Morgan Securities analysts said original content would help to “reinvigorate” subscription growth at home and overseas.
Of more immediate concern, however, were the disappointing third-quarter subscriber numbers. Netflix lured 3.02 million new streaming customers globally versus the 3.69 million it had projected in July.
“(Subscription) growth and content cost trends both indicate a more difficult phase could lie ahead,” Macquarie analysts wrote.
In May, Netflix raised monthly subscription fees for its most popular video-streaming plan by US$1 for new customers in the United States, saying the higher price would allow it to spend more on new movies and TV shows.
“We believe the subscriber miss was largely due to price hikes for new subscribers, the effect of which was masked in the prior quarter with the positive reception to season two of ‘Orange is the New Black’,” BMO Capital Markets analyst Edward Williams wrote.
Netflix has a presence in nearly 50 countries and has grown its subscriber base fast. More than a quarter of its 53 million customers are now outside the United States.
The company is looking to expand its international business to reach new viewers and increase its buying clout with content providers. But each new country launch entails hefty investments in marketing and local content rights.
“We expect new international markets will become profitable eventually like earlier markets have, but this will require time and patience that some investors may not have, given high valuation and lower growth outlook,” Bank of America Merrill Lynch analysts wrote.
Netflix’s stock trades at about 76 times forward earnings and scores just 5 out of 100 on the Thomson Reuters StarMine Relative Valuation model. The lower the score, the more expensive the stock.
As of Wednesday’s close, seven analysts rated the stock a “strong buy” and 13 a “buy,” according to StarMine. Sixteen analysts had a “hold” rating on the stock, one had a “sell” and three a “strong sell.”
© Thomson Reuters 2014
DALLAS (AP) — A Texas health care worker tested positive for Ebola even though she wore full protective gear while caring for a hospitalized patient who later died from the virus, health officials said Sunday. If the preliminary diagnosis is confirmed, it would be the first known case of the disease being contracted or transmitted in the U.S.
Dr. Tom Frieden, head of the Centers for Disease Control and Prevention, said the diagnosis shows there was a clear breach of safety protocol and all those who treated Thomas Eric Duncan are now considered potentially exposed.
The worker wore a gown, gloves, mask and shield while she cared for Duncan during his second visit to Texas Health Presbyterian Hospital, said Dr. Daniel Varga of Texas Health Resources, which runs the hospital. Frieden said the worker has not been able to identify a specific breach of protocol that might have led to her being infected.
Duncan, who arrived in the U.S. from Liberia to visit family on Sept. 20, first sought medical care for fever and abdominal pain on Sept. 25. He told a nurse he had traveled from Africa, but he was sent home. He returned Sept. 28 and was placed in isolation because of suspected Ebola. He died Wednesday.
Liberia is one of the three West African countries most affected by the ongoing Ebola epidemic, which has killed more than 4,000 people, according to World Health Organization figures published Friday. The others are Sierra Leone and Guinea.
Texas health officials have been closely monitoring nearly 50 people who had or may have had close contact with Duncan in the days after he started showing symptoms.
The health care worker reported a fever Friday night as part of a self-monitoring regimen required by the CDC, Varga said. He said another person is in isolation, and the hospital has stopped accepting new emergency room patients.
“We knew a second case could be a reality, and we’ve been preparing for this possibility,” said Dr. David Lakey, commissioner of the Texas Department of State Health Services. “We are broadening our team in Dallas and working with extreme diligence to prevent further spread.”
Dallas officials knocked on doors, made automated phone calls and passed out fliers to notify people within a four-block radius of the health care worker’s apartment complex about the situation, though they said there was no reason for neighbors to be concerned.
Dallas police officers stood guard outside the complex Sunday and told people not to go inside. One said an industrial barrel outside contained hazardous waste taken from inside the building. Nearby residents periodically came out of their homes to ask about the commotion.
Kara Lutley, who lives a half-block from the complex, said she never received a call or other emergency notice and first heard about it on the news. She said the infected worker seemed to have taken all necessary precautions.
“I’m not overly concerned that I’ll get Ebola,” she said.
Officials said they also received information that there may be a pet in the health care worker’s apartment, and they have a plan in place to care for the animal. They do not believe the pet has signs of having contracted Ebola.
Frieden on Sunday raised concerns about the possible breach of safety protocol and told CBS’ “Face the Nation” that among the things CDC will investigate is how the workers took off protective gear, because removing it incorrectly can lead to contamination. Investigators will also look at dialysis and intubation, procedures with the potential for spreading infectious material.
Health care workers treating Ebola patients are among the most vulnerable, even if wearing protective gear. A Spanish nurse assistant recently became the first health care worker infected outside West Africa during the ongoing outbreak. She helped care for a missionary priest who was brought to a Madrid hospital. More than 370 health care workers in west Africa have fallen ill or died in west Africa since epidemic began earlier this year.
Ebola spreads through close contact with a symptomatic person’s bodily fluids, such as blood, sweat, vomit, feces, urine, saliva or semen. Those fluids must have an entry point, like a cut or scrape or someone touching the nose, mouth or eyes with contaminated hands, or being splashed. The World Health Organization says blood, feces and vomit are the most infectious fluids, while the virus is found in saliva mostly once patients are severely ill. The whole live virus has never been culled from sweat.
Duncan, the first person in the U.S. diagnosed with Ebola, came to Dallas to attend the high school graduation of his son, who was born in a refugee camp in Ivory Coast and brought to the U.S. as a toddler when his mother successfully applied for resettlement.
The trip was the culmination of decades of effort, friends and family members said. But when Duncan arrived in Dallas, though he showed no symptoms, he had already been exposed to Ebola. His neighbors in Liberia believe Duncan become infected when he helped a pregnant neighbor who later died from it. It was unclear if he knew about her diagnosis before traveling.
Few criticisms are as withering as those of a child for a parent.
So when the 10-year-old daughter of Mohamed El-Erian, CEO of the world’s largest bond firm, gave a devastating retort to his order to brush her teeth, by listing the 22 milestones he missed over the last school year — from a big soccer game to the Halloween parade — he did what many modern fathers might dream but few would dare.
He quit his job to stay home with her, instantly creating a new archetype: overworked fathers who lean … out.
“I felt awful and got defensive: I had a good excuse for each missed event! Travel, important meetings, an urgent phone call, sudden to-dos,” Mr. El-Erian, 56, wrote in the finance magazine Worth, about his departure from PIMCO, a $2-trillion investment fund.
“But it dawned on me that I was missing an infinitely more important point. As much as I could rationalize it — as I had rationalized it — my work-life balance had gotten way out of whack, and the imbalance was hurting my very special relationship with my daughter. I was not making nearly enough time for her.”
With so much cultural energy devoted to the work-life balance of female executives — notably Sheryl Sandberg’s book Lean In and Anne-Marie Slaughter’s essay Why Women Still Can’t Have it All, but also the awkward questions about home life frequently directed at female executives like Mary Barra of GM, Indra Nooyi of PepsiCo, or Meg Whitman of Hewlett-Packard — it has been less remarked-upon that men often struggle to balance work and family too.
Now, there are signs of a pushback, with powerful men emerging to say: us too.
Among those men who have chosen to lean out is Max Schireson, CEO of software firm 10gen, who has three children, aged 14, 12 and 9. He stepped down earlier this month to spend more time with them, taking the less taxing role of vice-chairman, largely out of regret at having missed key family events, including upsetting ones, like a child’s emergency surgery and the puppy being hit by a car.
“Friends and colleagues often ask my wife [a doctor] how she balances her job and motherhood,” he wrote about the decision in Time magazine. “Somehow, the same people don’t ask me … I recognize that by writing this I may be disqualifying myself from some future CEO role. Will that cost me tens of millions of dollars someday? Maybe. Life is about choices.”
It is possible, indeed likely, that there is more to these stories than meets the eye. For example, the Wall Street Journal quoted two sources saying Mr. El-Erian, before he left, told PIMCO founder Bill Gross he was “tired of cleaning up your s—.” (Mr. Gross himself quit and joined a smaller rival fund last week, in anticipation of being forced out, in a move that seemed designed, as the Financial Times reported, to do maximum damage to the firm he founded, based in Newport Beach, Calif.)
In an age of unprecedented parental fretting and empowerment, however, the Wall Street tycoon who sees the light and becomes a lunch-packing, booboo-kissing soccer dad is an instantly attractive character, almost a movie pitch. He fills an aspirational gap in the culture.
‘Friends and colleagues often ask my wife how she balances her job and motherhood. Somehow, the same people don’t ask me’
Yes, his story has been met with skepticism from, among other people, women. As news of Mr. El-Erian’s Worth essay made the rounds this month, writer Beverley Turner noted this in The Telegraph: ‘‘El-Erian has described wanting to spend more time with his family as a ‘cliché’ but it’s not actually. As [the] reaction shows, blokes who cut back on work to be parents – whether they dine with presidents or mow lawns — are still the exception to the rule.’’
But for those fathers who feel the guilt of leaving their child to go to work, though, he is a daydream come true. Kids dream of running away, but many working parents dream of staying home.
Mr. El-Erian, who has earned as much as $100-million in a single year, acknowledges how “incredibly fortunate” he is to have this option, and that “not everyone has this luxury. But, hopefully, as companies give more attention to the importance of work-life balance, more and more people will be in a better position to decide and act more holistically on what’s important to them.”
He said PIMCO had been devoting more time to improving the work-life balance of its employees, but the note from his daughter came as a “very personal wake-up call” for himself.
Once, he kept a schedule that saw him sleep only from 9 p.m. to 1 a.m., work on his role as an economic media commentator until dawn, get to the office before 5 a.m., and start his management work by 9 a.m. Now, he manages a “portfolio of part time jobs that requires a lot less travel,” including chief economic advisor at Allianz, PIMCO’s German parent company, and chair of U.S. President Barack Obama’s Global Development Council, as well as being a prominent columnist with Bloomberg and the Financial Times.
It leaves him enough time to alternate with his wife, a lawyer, in managing the morning routine on school days. He picks his daughter up more often and is even planning a father-daughter holiday.
“So far, it’s been the right decision for me,” he wrote.
WASHINGTON — With pipeline plans facing opposition in the West, the East, and the South, a Canadian premier is in the U.S. this week promoting an alternate route for exporting oil: the North.
The premier of the Northwest Territories is in Washington, D.C., this week promoting an “Arctic Gateway” to carry oil through his region to international markets.
Bob McLeod has been promoting the plan in meetings with the Exxon oil company, the American Petroleum Institute, the Canadian embassy, and in appearances before two Washington think-tanks in the presence of numerous members of the Obama administration.
He told one audience Tuesday that it’s become a real problem to get pipelines approved — and not just the famous Keystone XL example that Americans keep hearing about.
He says even getting oil through Canada’s own provinces is becoming difficult. So he’s promoting a 2013 Alberta government study that says an Arctic route could be technically feasible.
McLeod says oil could be shipped out from Tuktoyaktuk to Asia, Europe, or Canada’s east coast on existing infrastructure as early as next summer — and he says more elaborate year-round facilities could be set up within a few years.
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Thousands of years ago, humans traded grains and rocks for goods. We dug into our satchels for bits of silver. How little things have changed. Generation after generation has spent its days “pulling stuff out of our pockets and handing it to someone to get something back,” said Edward Castronova, a professor of media at Indiana University.
The author of Wildcat Currency: How the Virtual Money Revolution is Transforming the Economy, Mr. Castronova believes, finally, a transformation is coming.
No more pockets. No more reaching, even. Just tapping on the lens of your glasses will bring up a tally of your financial assets, from dollars and bitcoins to loyalty points and frequent-flyer miles. When you want to obtain something, some chip will calculate the best combination of currencies and execute the transaction for you.
We will become the perfect consumer: a “walking source of purchasing power, able to freely walk through the world and acquire whatever you wanted,” Mr. Castronova envisions. “Until a little red beep would go off telling you that you’re out of money.” Little wonder that tech companies, and payment companies, are racing to beat each other to dominate in the space, most recently with Apple’s announcement this week of its launch of the Apple Pay device-based wireless payment system, compatible with the next generation of iPhones and Apple Watch.
The wallet, that overstuffed modern satchel — “an organizer, a secretary, and a friend,” asSeinfeld’s George Costanza once described his book-thick pocketbook — could have as little as five years left to live, the author suggests. Digital devices are already organizing our lives like secretaries, and connecting us to our friends. The only thing missing is the money.
“Our vision is to replace this,” Apple chief executive Tim Cook said during Tuesday’sproduct gala, gesturing to the image of a bulging black leather wallet on the giant video screen behind him.
Justin Sullivan/Getty Images
Apple Pay, a contactless system, which uses near-field communication technology, will be available on its newest iPhones and the Apple Watch, starting in the U.S. in October.
The company will have to succeed where others have only struggled. Google Inc. has yet to make its Google Wallet, launched in 2011, take off on a wide scale. PayPal, which was acquired by e-commerce company EBay in 2002, has expanded beyond facilitating online payments and into physical stores, but hasn’t achieved widespread traction either.
But Apple has shown a knack before of being able to improve on existing products and make them ubiquitous, noted Maynard Um, equity analyst for Wells Fargo in New York. There were MP3 players around before the superior iPod roared into the space and put one in every music lover’s hand.
“If there’s one thing that Apple has done well in the past, is it’s gotten people to adopt technologies that they have not been willing to in the past,” he said. “It’s all about the execution of the technology.”
And Apple has built features into its platform that positions it a few steps ahead of its competitors, said Forrester Research analyst Denée Carrington.
Consumers have been reluctant to change the way they pay because many existing mobile-payment platforms are cumbersome, requiring users to figure out which app to use, and pull it up to make a purchase, she says. There hasn’t been a compelling reason for merchants to change their ways either, she added.
[kaltura-widget uiconfid=”23273481″ entryid=”0_4g4f7qea” ]
Apple Pay, however, is using its PassBook app to automatically detect when the user is in a store and prompt them to pay, she said. The Touch ID function to detect a user’s fingerprint as a security measure when paying will also make consumers more comfortable, she added.
“They have designed a lot of things into the experience that are different than the way other [digital] wallets work,” said Ms. Carrington. “That will help remove the barriers that have existed before, and make it easier to even think about trying it,” she said.
And because iPhone users are typically early adopters of technology — and big spenders — merchants will be more willing to change their current point-of-sale terminals and adopt Apple Pay to cater to this audience, she added.
Apple’s entry is enough of a threat that some analysts, such as Piper Jaffray’s Gene Munster, have downgraded EBay.
The iPhone maker has already signed deals with Visa, MasterCard, American Express, and major retailers including Staples, McDonald’s and Whole Foods.
Still, Ms. Carrington doesn’t think the five-year deathwatch for the wallet is particularly realistic.
“There are things in your wallet, such as an ID,” she said. “And times when you need to have coins or cash. And that’s not going to go away entirely in the next year, or five years.” Mr. Um wonders how you deal with paying digitally for groceries when your device batteries are dead.
Jack Dorsey, CEO of payment-systems’ maker Square Inc., who was a co-founder of Twitter, said he is preparing for Apple, with its marketing and execution prowess, to finally shake up the sleepy digital-payment space.
“[Near field communication] is not new technology … It really hasn’t taken off because there hasn’t been a huge consumer demand for it,” said Mr. Dorsey, at the launch of Square’s Kitchener, Ont. office on Wednesday. “We think Apple may change that.” (Square launched its own wallet app in 2011, but pulled the plug earlier this year — now Mr. Dorsey says he doesn’t consider Apple Pay competition, but rather a complement to his system, which is agnostic about the form of payment).
But for all his anticipation of the end of the wallet, Mr. Castronova doesn’t actually believe it will be Apple — or any of the big Silicon Valley firms — that will put an end to our bulging pockets. As with Facebook and Twitter and social media, he expects a small, nimbler company will develop the ultimate solution to the modern satchel.
“It took a small company to take the full plunge,” he said. “The same thing is going to go on here.”
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(CNN) — Israel came under fire Monday for claiming close to 1,000 acres of land in the Palestinian West Bank.
Israel announced Sunday that the land in and around the Wadi Fukin valley, would become “state land,” clearing the way for the development of a new Israeli settlement. The affected land lies near Bethlehem and close to Bitar Ilit — one of the biggest Israeli settlements in the West Bank.
Farmers in the area have 45 days to appeal Israel’s decision to claim the land.
“The seizure of such a large swathe of land risks paving the way for further settlement activity, which — as the United Nations has reiterated on many occasions — is illegal under international law and runs totally counter to the pursuit of a two-state solution,” United Nations Secretary-General Ban Ki-moon said in a statement Monday.
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UK Foreign Secretary Philip Hammond issued a similar statement, criticizing the move.
“This is a particularly ill-judged decision that comes at a time when the priority must be to build on the cease-fire in Gaza. It will do serious damage to Israel’s standing in the international community,” he said. “Our position on settlements is clear: they are illegal under international law, present an obstacle to peace and take us further away from a two state solution at a time when negotiations to achieve this objective urgently need to be resumed.”
Hammond said efforts should be focused on securing a durable cease-fire in Gaza and lasting peace. “We strongly urge the government of Israel to reverse this decision,” he said.
Israeli officials told CNN the expropriation was linked to the kidnapping and murder of three Israeli teenagers who disappeared from the West Bank settlement of Gush Etzion in June. Tensions between Israel and Hamas ratcheted up after the teens’ bodies were found June 30.
Both sides last week agreed to an open-ended cease-fire following more than seven weeks of heavy fighting.
Hamas has said the teens were abducted by Hamas militants who did not inform the group’s leadership about their operation.
The Israeli Civil Administration, which rules over Palestinians in Israeli-controlled areas of the West Bank, has posted “no trespassing” signs in the valley.
Farmer Mahmoud Mifrah, 66, told CNN he had grown vegetables and olives in Wadi Fukin for 42 years and did not see why he should suffer the consequences of others’ crimes.
“We are the neighbors of the Israeli people,” Mifrah said. “We share water and air and everything. We have to find a way to live together.”
The Palestine Liberation Organization said the expropriation was the“the largest Israeli land grab in the Occupied State of Palestine in three decades.”
“This move is further proof of Israel’s relentless policy of destroying the prospects for a negotiated peace and an independent Palestinian state, living side by side the State of Israel in peace and security,” the PLO said in a statement.
The Israeli group Peace Now expressed bafflement at the move.
“It’s a crazy idea. In my view it’s collective punishment not only to Palestinians but also to Israelis that it’s actually killing our chances to get to peace some day, and a two state solution,” spokeswoman Hagit Ofran said.
Hardball with Chris Matthews / Health / Society
By Lisa Crivelli
Charlotte Figi, the namesake of the Charlotte’s Web oil.
Charlotte Figi, the namesake of the Charlotte’s Web oil.Courtesy of Paige Figi
Two years ago, Charlotte Figi was losing a lifelong battle to epilepsy. Her parents were using a hospice program at home because she wasn’t eating, had chronic pneumonia, and couldn’t swallow water. At the age of five, Charlotte was suffering up to 50 seizures a day.
Fast forward to today: Charlotte, now seven, is like any other child. She rides horses, goes to school, and plays with her twin sister and older brother. Her parents say she is “99% seizure-free,” suffering usually one seizure a month which is under control after a few minutes.
“She can hike a couple of miles a day,” Paige Figi, Charlotte’s mother, told MSNBC. “She can walk, talk, feed herself, has a normal sleep cycle and she has not taken prescription medication in two years.”
Charlotte’s miracle? Medicinal marijuana oil.
“We were using [medicinal marijuana] as end of life comfort measures,” Figi explained. But it turned out that those measures saved Charlotte’s life.
The movement to legalize medicinal marijuana has a face like Charlotte’s–and it’s a young one that’s hard to ignore. Lawmakers across the country are pushing legislation to legalize marijuana oil as a treatment for children with epilepsy. The marijuana extract is producedin Colorado and is designed to not produce a high. Instead, the strain has increased levels of CBD, a chemical that fights seizures.
The organization the Realm of Caring developed the marijuana oil strain now known as Charlotte’s Web, which was named after Charlotte Figi–the first child to test the oil two years ago. On average, the organization says 85% of people taking Charlotte’s Web have seen a reduction in seizures.
Since the development of Charlotte’s Web, many parents have traveled to Colorado to treat their children, since the state law does not have a provision that allows the shipment or sale of marijuana products out-of-state. Others have gone as far as to relocate their families to Colorado for the oil. The Realm of Caring says they have 100 patients who have moved to Colorado from 43 other states, and there is a waiting list of more than 2,000 people who are willing to relocate. An additional list exists of more than 4,000 Colorado residents who are waiting for the oil. Doctors work with the Realm of Caring to determine each patient’s dosage based on their weight, and the cost of Charlotte’s Web is about 5 cents per milligram. The Figi family’s monthly cost for the oil is about $180 a month.
Left: Charlotte’s medicine | Right: The Stanley brothers (Jon, Jared, Joel, Jesse, and Jordan), the founders of the Realm of Caring and makers of the Charlotte’s Web oil. Photoby Paige Figi
Currently, there is a rapid movement to legalize medicinal marijuana across the country: four states in March alone (Kentucky, Utah, Alabama, and Georgia) passed legislation to allow the use of the marijuana oil for medical purposes. The fight to allow medicinal marijuana now heads to the floor of the North Carolina State Assembly, and lawmakers there are doubling down on their chances of legalizing with two bills up for consideration. When the assembly reconvenes next month, it will consider one bill to legalize all forms of medicinal marijuana and another that focuses solely on the cannabis oil for the treatmentof epilepsy.
“There seems to be a sense that something has got to happen,” said State Rep. Kelly Alexander, who is sponsoring the bill for medicinal marijuana. “This is a bipartisan measure to find a way to alleviate the pain and suffering of those with illnesses.”
Alexander spoke on behalf of his bill when it was introduced to the North Carolina General Assembly last year, but it was placed on an “unfavorable report” and put on hold. State Rep. Jonathan Jordan told the High Country Press that he was not likely to support the bill unless he saw evidence of the success of medicinal marijuana, and State Rep. Paul Stam told WRAL in Raleigh, “We did it to be done with it so people could move on for the session.”
Stam claimed lawmakers were being harassed by emails and phone calls in regards to the bill. MSNBC reached out to Stam, who declined to comment for this article.
But lawmakers who support marijuana legislation could see an advantage at the polls in November. In a recent George Washington University poll, 39% of surveyed voters say they would be more likely to vote if there was a proposal on the ballot to legalize marijuana. An additional 30% of those surveyed said they would be more likely to vote in the 2014 midterm election under that circumstance.
Americans also seem to be more open overall to changing marijuana laws. Plans to legalize marijuana show a 73% approval rating while decriminalizing the possession of pot has a 53% approval rating.
Charlotte and Paige Figi
Charlotte and Paige Figi. Photo by Paige Figi
Paige Figi said the opposition in states like North Carolina was based onpreconceived notions about the damages of marijuana as a whole. “Some states are very conservative and just won’t allow cultivation because they can’t figure out a way to regulate it,” Figi said. “There are no negative side effects, absolutely none. THC has shown long-term cognitive loss, but that’s not in this oil.”
Recently, the Realm of Caring began cultivating Charlotte’s Web in the form of hemp, which can be dispersed to a wider population. The organization is continuing its work to expand the legalization of medicinal marijuana to other states, sharing Charlotte’s story as a means to give hope to the families of epileptic children.
“We had a DNR [do not resuscitate] signed,” Figi recalled. “Nobody thought [Charlotte] had any time left…and now she is doing amazingly well.”
HARDBALL WITH CHRIS MATTHEWS, 5/14/14, 8:19 PM ET
The new faces of medical marijuana
Health, Health Car