Thndr Claps - A whole lot of micro & macro news

A weekly wrap-up of the most prominent news in the U.S. & Egyptian markets.

US Claps

Netflix raking in new subscribers ??

Netflix (NASDAQ:NFLX) added 7.66 million new subscribers, significantly more than analysts’ expectations of 4.57 million.

The biggest driver of Netflix’s lower-than-expected EPS was due to a large amount of euro-denominated debt, which increased proportionally to a weakening USD.

Netflix’s new ad-supported tier has been included in its earnings, although it is unclear how many new subscribers the tier brought.

Microsoft kicks off the year with layoffs ??

Microsoft (NASDAQ:MSFT) will lay off 10,000 employees over the next two months in preparation for slower revenue growth.

As prices continue to rise, consumer spending habits are changing, with consumers opting to become more cautious when spending on technology.

The company is expecting revenue growth of 2% in the fiscal Q2, the slowest growth rate since 2016. Investors are growing concerned over whether tech companies will be able to adapt to periods of slower growth.

Tesla slashing prices ??

Tesla (NASDAQ:TSLA) is cutting prices for its EVs in the US and Europe to stimulate sales.

The Model 3 and Model Y’s prices dropped in the US by up to 14% and 19% respectively depending on the configuration.

In the US, EVs can qualify for tax credits, a benefit provided by the government that reduces the dollar amount of taxes owed, depending on the category they fall into, range, efficiency, and price.

Egypt Claps

Juhayna founder Safwan Thabet released from jail??

Juhayna founder Safwan Thabet & his son Seifeldin have been released from jail, according to a Facebook post by?Safwan’s daughter?last night.

In December 2020, Safwan was arrested on allegations of “financial irregularities”. Two months later, his son, who became Juhayna’s CEO following his father’s arrest, was also arrested.

Juhayna’s stock price was sent spiraling down following the news at the time, going from EGP 7/share to as low as EGP 4.5/share.

The EGP devaluation makes Egypt more attractive for investors ??

Minister of Planning Hala El-Said said that after the?devaluation of the EGP,?there was higher demand from foreign investors to buy stakes in state-owned companies.

El-Said explained that different types of investors have expressed interest, such as high-net-worth individuals and sovereign funds.

During this month, the Sovereign Fund of Egypt is set to promote?5 companies?that have been included in the Pre-IPO Fund.

What does adding the EGP as an official exchange rate against the Russian ruble mean? ??

The Russian Central Bank added a number of currencies to its list of official exchange rates against the Russian ruble, including the Egyptian pound.

According to one economist, the main reason for this step is to reduce dependence on the dollar for trade between the two countries.

Trade between Egypt and Russia is quite significant, especially when it comes to basic commodities such as wheat. The listing of the EGP against the Russian ruble could reduce the demand for dollars required to settle export and import operations.