Business Highlights: Netflix Subscribers, Delivery Apps
Netflix shares fall 26% after losing 200,000 subscribers
SAN FRANCISCO (AP) — Netflix suffered its first loss of subscribers in more than a decade, sending its shares plunging 26% in extended trading amid fears the pioneering streaming service may have already experienced its better days. The company’s customer base fell by 200,000 subscribers in the January-March period, according to a quarterly report released on Tuesday. It’s the first time Netflix subscribers have fallen since the streaming service became available in most of the world outside of China six years ago. Worse, Netflix now forecasts a loss of 2 million additional subscribers in the April-June period.
The latest apps promise fast service, but can they deliver?
NEW YORK (AP) — Venture capitalists have poured billions into the latest pandemic delivery craze: Companies that promise to get you a bottle of Tylenol, iced coffee, hummus, a cucumber and a roll of napkins in paper. In 30 minutes or less – or even 15 minutes or less. Experts say they are unprofitable. Big companies are getting into it. And officials in European cities and New York, which has become the launch pad for the United States, have already begun complaining about how they operate, saying it’s bad for employees and residents. Services are already shutting down, downsizing or reducing their promises of fast delivery.
Flyers, metro users throw masks: “Feel free to burn them”
NEW YORK (AP) — Travelers cheered and took off their masks as pilots announced over loudspeakers that a federal judge in Florida had overturned a nationwide mask mandate on planes and public transportation. The judge’s ruling on Monday allowed airlines, airports and transit systems to make their own decisions about mask requirements, leading to a mix of responses. Major airlines and airports in places like Dallas, Atlanta and Los Angeles quickly moved to a mask-optional policy. New York City has been one of the few to continue to require masks at its airports and on its public transit system.
Florida Governor DeSantis pushes to end Disney self-government
TALLAHASSEE, Fla. (AP) — Florida Governor Ron DeSantis is asking the Legislature to repeal a law allowing Walt Disney World to run private government on its properties in the state. DeSantis is a rising GOP governor and potential 2024 presidential candidate. He has fought with Disney over the company’s opposition to a new law banning sexual orientation and identity instruction. kindergarten through third grade. On Tuesday, DeSantis upped the ante. As lawmakers returned to the Capitol for a special legislative session on redistricting Congress, the governor announced that he had issued a proclamation authorizing the Republican-controlled state house to pass bills eliminating the Autonomous District of Disney.
Tech stocks rebound from early loss, leading market higher
NEW YORK (AP) — Stocks closed higher on Wall Street on Tuesday as tech stocks rallied from a weak start. The S&P 500 rose 1.6% and the Dow Jones Industrial Average 1.5%. The tech-heavy Nasdaq escaped an early loss and added 2.2%. Healthcare giant Johnson & Johnson rose 3.1% after announcing better-than-expected results and increasing its dividend. Energy companies fell along with crude oil and natural gas prices. Banks rose as Treasury yields continued to climb, allowing banks to charge higher interest rates on loans. The yield on the 10-year Treasury note rose to 2.94%.
Citing Russia’s war, IMF lowers global growth forecast to 3.6%
WASHINGTON (AP) — The International Monetary Fund has downgraded the outlook for the world economy this year and next. The IMF blames Russia’s war in Ukraine for disrupting world trade, driving up oil prices, threatening food supplies and increasing uncertainty already heightened by the coronavirus pandemic. The 190-country lender on Tuesday lowered its global growth forecast to 3.6% this year. That’s down sharply from 6.1% last year and the 4.4% growth the IMF forecast for 2022 in January. The Russian-Ukrainian war and darkening outlook hit just as the global economy seemed to be shedding the impact of the highly infectious variant of the omicron coronavirus.
The New York Times Promotes Joseph Kahn to Editor-in-Chief
NEW YORK (AP) — The New York Times has named Joseph Kahn as its new editor, replacing Dean Baquet as its second-in-command. Kahn will be responsible for leading the legendary news organization as it navigates a period of rapid transformation in the digital age. He has been editor of the Times since 2016 and will take up his post on June 14. He was previously the paper’s Beijing bureau chief and head of its international bureau, which won six Pulitzer Prizes under his leadership. Baquet, who at 65 has reached the traditional retirement age for Times newsroom chief, will remain at the paper in a post to be announced later.
Energy shift creates opening for ‘world’s largest batteries’
LUDINGTON, Mich. (AP) — A question hangs over the transition from fossil fuels to cleaner energies like wind and solar: What happens when the wind doesn’t blow or the sun doesn’t shine? ? The hydropower industry says the answer is to develop more pumped storage plants. They work like giant batteries, pumping water from a lower reservoir to an upper reservoir. When energy is needed, water is released downstream by turbines. The United States has 43 pumped storage plants, but only one has been built since the 1990s. Cost, regulatory and logistical issues have hampered new construction. The industry is pushing for tax breaks and streamlining permits. But some say pumped storage causes environmental problems and better technologies may emerge.
The S&P 500 jumped 70.52 points, or 1.6%, to 4,462.21. The Dow Jones Industrial Average rose 499.51 points, or 1.5%, to 34,911.20. The Nasdaq gained 287.30 points, or 2.2%, to 13,619.66. The Russell 2000 Small Business Index added 40.63 points, or 2%, to 2,030.77.