Roughly $49bn (£37.6bn) has been wiped off Netflix’s value after the streaming giant reported its first fall in subscribers for more than a decade.
Shares fell 30pc as markets opened this afternoon, with investors baulking at the company’s first-quarter figures. It’s the biggest fall in the firm’s share price since 2011.
While some of the decline in user numbers was caused by Netflix’s withdrawal from Russia, the company warned it could lose another 2m subscribers in the current quarter, fuelling concerns the platform could be past its peak.
The decline has forced bosses into a dramatic U-turn. Netflix will now launch a cheaper, ad-funded version of its streaming platform and will crack down on password sharing.
03:50 PM
Bank of England pledges to use post-Brexit freedoms to create a “more British rule-making” in the City
The Bank of England has pledged to use Brexit freedoms “to adopt a more British style of rulemaking”. Tim Wallace has more:
Its Prudential Regulation Authority wants to govern the City “with less fine detail in legislation and more ability for us to maintain and develop a coherent and dynamic rulebook”, said Sam Woods, the regulator’s boss.
Legislation currently going through parliament is expected to transfer powers which used to be held by European authorities to the Bank, allowing it to make changes to the rules without new legislation for every detail.
Scrapping onerous and expensive rules blamed for stifling small banks is likely to be near the top of the agenda, while the Solvency II regime limiting insurance companies’ investments is also in line for an overhaul.
This marks a change from EU rules which were often deemed to be overly prescriptive, lacking in flexibility and failing to match the way the UK market works, given they had to be agreed by 27 other countries.
03:30 PM
SSE buys European onshore wind platform for €580m
SSE has agreed with Siemens Gamesa Renewable Energy to buy its European renewable energy development platform for €580m (£483m).
It marks the FTSE 100 group’s entry into Southern Europe and brings a 3.9GW portfolio of onshore wind development projects across Spain, France, Italy and Greece.
The energy company owns and operates 4GW of renewable assets in the UK and Ireland.
03:19 PM
Handing over
That’s all from me for today – thanks for following along! Handing over to Giulia Bottaro now.
03:08 PM
Nasdaq slides as Netflix drags down tech stocks
The tech-heavy Nasdaq dropped 1.8pc this afternoon as streaming giant Netflix slumped, fuelling worries among investors about their bets on high-growth companies set to report results.
Netflix plunged 36.6pc and was set for its worst day since October 2004, as it blamed inflation, the Ukraine war and fierce competition for its subscriber loss and predicted deeper losses ahead.
Major tech stocks Amazon, Tesla and Meta fell between 2.3pc and 5.3pc, while streaming rivals Disney, Roku and Warner Bros Discovery dropped between 4.5pc and 8.3pc.
03:03 PM
China snaps up cheap coal amid war
China is taking advantage of the war in Ukraine to grab coking coal at a heavy discount, with imports more than doubling in March, writes Louis Ashworth.
Imports of the fuel, which is used in making steel, rose to 1.4m tonnes in March from 590,000 a year earlier.
Beijing has moved to take advantage of bargain prices after Russia’s invasion of Ukraine led buyers such as Japan and the European Union to curb or ban imports, leaving Russian companies scrambling for buyers.
As a whole, coal imports fell 31pc year-on-ear, driven by a collapse in demand for thermal coal, which is used for power generation.
Coal is by far the most common energy source in China, representing more than half total consumption despite efforts over recent decades to reduce usage.
China has moved to step up domestic coal mining, but its mines produce an inferior quality of material that is unsuited for use in steel mills, forcing it to rely on foreign imports.
Chinese authorities have also considered ramping up energy imports from Russia further despite opposition from the West.
02:24 PM
Musk hunts for financing for $43bn Twitter bid
In other Musk news, the world’s richest person has started scouting around Wall Street for potential partners as he looks to shore up funds for his $43bn (£33bn) Twitter takeover bid.
Mr Musk and his advisers have held conversations about debt financing with several possible partners, Bloomberg reports. The prospect of raising equity to back the offer hasn’t yet been discussed with other firms.
The Tesla founder has a personal wealth of around $261bn, but much of that is tied up in stock. He has multiple options available to fund the bid, including selling some of those shares, taking out loans against them, raising debt financing or bringing in an investment partner.
02:10 PM
Has Netflix gone woke?
Gareth Corfield has more:
Netflix, which features a show titled He’s Expecting as well as higher-profile series such as prison drama Orange is the New Black, has not shied away from topics including social inequality and progressive politics.
During Donald Trump’s term as US president Netflix’s perceived bias was a live topic.
Figures published by CNBC in July 2020 suggested 98pc of political donations from Netflix employees had been made to Democratic Party politicians and campaigns.
Mr Musk’s commentary on Netflix echoes similar rhetoric about Twitter from the last few weeks.
02:07 PM
Elon Musk says ‘woke mind virus’ makes Netflix unwatchable
Here’s a recap of Elon Musk’s intervention in the Netflix story, courtesy of my colleague Gareth Corfield:
Elon Musk has blamed “the woke mind virus” for making Netflix “unwatchable” after the streaming service announced it has lost 200,000 subscribers.
“The woke mind virus is making Netflix unwatchable” he posted.
After agreeing with a Twitter user who said popular culture was “infested with current year trend woke garbage”, Mr Musk added: “Can [Netflix] please just make sci-fi/fantasy at least *mostly* about sci-fi/fantasy?”
In 2020, Netflix’s Star Trek: Discovery courted controversy after introducing its first non-binary and trans characters for its third series. The non-binary character, Adira, was in a relationship with a transexual member of the USS Discovery’s crew named Gray.
Executive producer Michelle Paradise said at the time that Star Trek “has always made a mission of giving visibility to underrepresented communities”. In its original form the show made waves in 1960s America by featuring a black female character, Lieutenant Uhura. It also featured a Russian character working in harmony with his US crewmates, a nod to the Cold War.
01:56 PM
Netflix results prompt sled of downgrades
Netflix’s disappointing results aren’t just spooking markets – they’ve also prompted some damning reaction from analysts.
At least 11 brokers have downgraded the stock in the wake of the subscriber losses. Just one has upgraded.
Among the negative verdicts, Pivotal Research Group described the first-quarter figures as “shocking” and warned of “materially slower subscriber growth at a higher cost”.
Wells Fargo added that the outlook for Netflix was now “clear as mud”,
01:45 PM
Netflix plunges at the open
Netflix’s shares have taken even more of a beating than expected at the opening bell, with losses now extending towards 32pc.
One Twitter observer can’t help a tongue-in-cheek reference to the streaming service’s 2021 environmental hit Don’t Look Up…
01:22 PM
Analysis: Energy prices to remain high beyond 2030
UK energy prices will remain significantly above normal levels up to 2030 and even beyond as Russia’s war in Ukraine prolongs the energy crisis.
That’s according to analysis by Cornwall Insight, which found that prices will remain above £100/MWh annually. This is double the five-year pre-2021 historic average of £50/MWh in winter and the even lower prices in pre-2021 summer.
The report predicted that while prices will drop from their current highs, they will remain elevated. Prices are expected to rise to £150/MWh in winter 2025 due to closures of nuclear power stations, delays to Hinkley C, and increasing high-cost peaking capacity.
Tom Edwards at Cornwall Insight said:
While we are used to seeing headlines depicting energy prices at an all-time high, unfortunately, while prices will reduce, our modelling shows that pre-2021 prices are not making a comeback this decade and likely beyond.
Rising EU demand for non-Russian gas has pushed up gas prices across the world, and these higher prices have increased production costs for power, with gas set to remain the marginal fuel source for producing power throughout the remainder of the 2020s.
With all GB coal capacity due to close by April 2024 and many nuclear power stations coming to the end of their lives, high power prices will continue to feed through into consumer bills.
01:11 PM
P&G price hikes help boost sales
Procter & Gamble has beaten expectations for sales in its latest quarter as prices rises helped to offset increased costs.
The consumer goods giant delivered 10pc organic revenue growth in the three months to the end of March.
It said higher sales were driven by price hikes, and to a lesser extent an increase in shipment volumes and a shift toward higher-priced products and geographical markets.
The maker of Gillette razors raised its forecast for full-year sales growth while also warning that higher expenses will take a bigger bite out of its profit.
P&G said inflation in energy and materials had worsened and it now expects $3.2bn (£2.5bn) in extra costs this year – $400m more than its previous guidance.
About half of the increase is tied to commodity prices, and much of the hit will come in the current quarter.
Andre Schulten, chief financial officer of P&G, said:
If we look at the current situation in the market – imbalance between supply and demand, geopolitical disruption, need to restructure supply chains, higher energy costs due to conflict in Ukraine – all of those impacts will continue to put pressure on the cost side.
12:48 PM
IMF: Support for cost-of-living crisis will send bills soaring even higher
Helping households with the cost of living crisis risks sparking food and energy shortages and sending bills even higher, the International Monetary Fund has warned.
Tom Rees reports:
The Fund predicted that soaring energy and grocery bills will trigger social unrest but warned countries they could be adding fuel to the fire by unveiling multi-billion pound support for squeezed families.
Jean-Marc Fournier, economist at the IMF, said that stoking demand at a time of strained supply risks “putting further pressure on international prices and possibly leading to energy or food shortages” with poorer countries bearing the brunt.
Families are being squeezed by the war in Ukraine boosting global food prices to a record high and sending energy bills soaring.
Most advanced economies including the UK have unveiled support to help households cope with the cost of living crisis but it could prevent demand from falling in response to high prices. Lower demand, such as from families turning down the heating, would allow prices to slip back as supply more easily meets needs.
Government action to prop up family budgets will come at a huge cost to the public purse while also having “undesirable consequences” by exacerbating global demand, the IMF said.
12:21 PM
UK prepares fresh Russian defence sanctions
The UK is planning to slap fresh sanctions on Russia this week in an effort to ramp up the pressure on Putin.
The new measures are likely to target Russian military and defence companies, as well as more tycoons and their associates, Bloomberg reports.
Britain has already rolled out a raft of sanctions against Moscow, and the Government is working with the G7 and EU on further measures.
Defence companies already sanctioned by the UK include tank maker Uralvagonzavod and Kronshtadt, which makes drones and other unmanned aerial vehicles.
Britain is also said to be considering raising tariffs on a number of Russian goods, while further sanctions against people and entities spreading disinformation are possible.
12:10 PM
LME needs stronger guidance after nickel fiasco, says IMF
The International Monetary Fund (IMF) has called for the London Metal Exchange’s governance systems to be strengthened after a huge short squeeze that left the world’s main nickel market suspended for six days.
The LME has been criticised by investors for its handling of the crisis, when prices surged by 250pc in less than two days in a squeeze centered around Chinese nickel and stainless steel producer Tsingshan Holding Group.
The IMF highlighted the nickel market chaos as part of wider risks in commodity markets and lessons for policy makers in the wake of recent extreme volatility.
The LME said it took action after the nickel price spike posed a systemic risk to its market. However, the decision to cancel several hours of trades at the highest prices also served as a bailout of Tsingshan and its banks to the tune of several billion dollars.
The Financial Conduct Authority and Bank of England have announced investigations into the governance, market oversight and risk management of the LME and its clearing house. The LME itself will also conduct an independent review of the events.
11:58 AM
Rail union calls for the ‘biggest strike in modern history’
Passengers face a summer of rail chaos as union leaders plot a wave of strikes by as many as 40,000 staff across Britain’s train network.
Oliver Gill has the details:
The Rail, Maritime and Transport (RMT) union announced plans for the “biggest strike in modern history” amid a row over job cuts and pay freezes.
More than 40,000 railway workers are to be balloted for industrial action, the RMT said on Wednesday. A ballot will open on April 26 and close a month later. Industrial action could begin in June.
Network Rail, the state-backed owner of stations and tracks, is planning to cut more than 2,500 frontline maintenance workers, the union said.
Meanwhile, train operators have imposed wage freezes despite public sector workers receiving an inflationary rise in April.
11:23 AM
EU looks to cut cost of Russia oil ban
The EU is said to be working to speed up the availability of alternative energy supplies in a bid to cut the cost of banning Russian oil.
A source told Reuters the efforts were designed to persuade Germany and other EU sceptics to support the new sanctions.
Some EU nations are said to be pushing for other new restrictions, including banning Sberbank and Gazpromneft from Swift, banning more Russian news channels, suspending visas for Russians and blacklisting additional individuals and companies linked to the Kremlin.
11:12 AM
US futures hold steady as Netflix slumps
Wall Street is set to tread water at the opening bell, even as Netflix braces for a slump in its shares after last night’s disappointing results.
Futures tracking the benchmark S&P 500 and tech-heavy Nasdaq were little changed, having fallen 0.6pc and 1.2pc respectively earlier. The Dow Jones ticked up 0.1pc.
All eyes will be on the Nasdaq this afternoon, though, with Netflix slumping 27pc in pre-market trading after reporting its first subscriber loss in more than a decade.
11:01 AM
The Issa brothers’ Asda takeover is the deal of the century – on paper
The billionaire Issa brothers have been unequivocal about their ambition for Asda to become the country’s second largest supermarket chain, following years of jostling with Sainsbury’s for the spot, writes Laura Onita.
The brothers, from Blackburn, emerged victorious with their £6.8bn bid for Asda in October 2020, backed by private equity firm TDR Capital. Only last month, Mohsin Issa, the older of two, said he was “pleased with the progress made in the six months since we officially took over the business”.
And now their business partners have reason to be cheerful too – on paper, at least.
10:52 AM
Oil rebounds as China demand picks up
Oil prices have bounced back as industrial activity in China picked up and US stockpiles declined.
Benchmark Brent crude climbed above $108 a barrel after tumbling more than 5pc on Tuesday.
Car makers and supermarkets in Shanghai are beginning to resume operations as the city looks to get back on its feet after weeks of tough Covid lockdowns.
Meanwhile, the American Petroleum Institute said US crude stockpiles fell by about 4.5m barrels last week, according to a Bloomberg report. If confirmed, that would be the biggest decline in holdings since early February.
10:37 AM
Renault’s Russia sales plunge after Lada factory shutdown
Renault’s sales in Russia plummeted last month after the French car maker shut down factories and set out plans to pull out of the country.
Shipments of Lada vehicles fell 56pc in March compared to the same month last year. That’s the ninth straight monthly decline for the brand that dates back to the Soviet era.
Sales of Ladas will probably continue to drop off due to sanctions over Russia’s invasion of Ukraine that have hampered trade and prevented the import of key parts needed for production.
The vehicles are made by Renault’s AvtoVaz venture at two Russian factories, which have either been halted or operating at reduced capacity since the war started.
The Avtovaz business, which Renault majority owns, has made the French firm the most exposed car maker to the conflict. The manufacturer last month announced it was suspending production at its own plant in Moscow and assessing options for AvtoVaz.
Overall, Renault car and commercial vehicle sales volumes in Russia dropped 64pc in March, compared to a worldwide sales slump of 25pc.
10:24 AM
Expert reaction: Netflix reforms could be game-changing
Dominic Sunnebo at Kantar says Netflix has tried to reassure investors by saying it will crack down on the estimated 100m households that share passwords, but this won’t be an easy task:
Converting even a small fraction of these to full paying customers is not an easy task, particularly so when consumers are looking for ways to save money, not spend more.
If the schemes to counter password sharing move too fast and too aggressively, it also risks alienating a potential future audience – many who password share beyond the household are not actually aware they’re breaking the terms of their subscription.
The comment about investigation into an ad supported model are the most important – Netflix said it has shied away from this to date, citing the ease of a fully ad free model as its preferred choice.
However, Netflix already offered multiple tiers to its service, across number of screens and definitions and in most parts of the world consumers are very familiar with ad supported models.
If Netflix does go down this route it’s game changing, not just for Netflix and its ability to generate a very significant new revenue stream, but also for the world of advertising. Netflix has reach close to that of traditional TV in a number of major markets around the world – its power to enact large scale change here should not be underestimated.
10:20 AM
Shell urges shareholders to reject activist’s climate demands
Shell has told shareholders to reject a Dutch activist group’s resolution that asks the energy giant to set more radical climate goals.
The FTSE 100 firm said that adopting the Follow This vote, which wants Shell’s policies to be more in line with the Paris climate accord, could result in “unrealistic interim targets” that would harm its own energy transition plan.
To convince investors it’s already doing enough, Shell will put its energy transition progress report to a non-binding vote at the annual shareholder meeting next month.
The company won the backing of 89pc of investors when it put its green plan to the ballot for the first time last year. At the same time, the Follow This climate proposal received 30pc of votes in favour – the most since it started lobbying Shell in 2016.
10:04 AM
Kremlin says Russian metal firms facing ‘hostile attitudes’
The Kremlin has said Russian metal companies are facing “hostile attitudes” from what it describes as unfriendly countries, adding that Moscow would come up with a plan to combat this.
Spokesman Dmitry Peskov said: “We are among world leaders in this industry, and our metallurgists have begun to face hostile attitudes… our companies are experiencing some difficulties.”
Russia’s economy has been battered by western sanctions over Ukraine. Putin is due to meet representatives of the metals industry later today.
09:52 AM
Pound rises as Bank of England speeches loom
Sterling pushed higher against the dollar this morning as investors turn their attention to key speeches by Bank of England officials this week.
The pound rose 0.2pc to $1.30275, moving away from last week’s lows. Against the euro, it fell 0.25pc 83.17p.
Traders will be poring over speeches by Bank of England Governor Andrew Bailey and policymaker Catherine Mann for signs of its plans for interest rate rises.
Inflation surged to a fresh 30-year high of 7pc in March, but the Bank has softened its language on the need for more rate increases amid concerns about slowing economic growth.
09:35 AM
Netflix set to lose $40bn after subscriber shock
Netflix is on track to have around $40bn (£31bn) wiped off its market value after the streaming giant reported its first decline in subscribers for the first time in more than a decade.
Shares in the company fell as much as 26pc pre-market trading, extending its plunge this year to 57pc.
If the losses hold, Netflix is poised to become the worst-performing stock this year in both the benchmark S&P 500 and tech-heavy Nasdaq 100 indices.
The streaming service shocked Wall Street last night by losing 200,000 customers in the first quarter – the first time it has shed subscribers since 2011.
It also warned its user base could shrink by another 2m customers in the second quarter.
09:16 AM
Watchdog sets target of 40pc women on boards
The City watchdog has unveiled new diversity targets for listed companies, including that 40pc of board members should be women.
The Financial Conduct Authority (FCA) said companies will have to make annual statements showing how they are complying with the new rules, or explain any divergences.
The regulator last year proposed that at least 40pc of board members should be women – including at least one senior position such as company chair, chief executive or chief financial officer – and at least one board member from a non-white ethnic minority background.
The FCA’s final rules made no major changes. They’ll apply to financial accounting periods from April 1 2022.
08:59 AM
Naked Wines shares jump on surprise profit
Naked Wines rallied this morning after the online retailer forecast a surprise full-year profit.
Shares jumped more than 14pc, helping to trim its recent decline, after the firm said adjusted earnings would be in the “low single-digits” in the year to March 28.
Analysts had expected Naked Wines to break even or post a small loss.
The jump in shares may have been spurred on by a rush of short selling on Naked Wines. Having more than quadrupled during the pandemic, the company has wiped out most of its gains over the last year as drinkers flocked back to bars.
08:46 AM
European car sales plunge 19pc
Car sales in Europe fell for a ninth consecutive month as the war in Ukraine exacerbates supply woes and dents demand.
New car registrations fell 19pc in March to 1.13m vehicles as a lack of semiconductors and other components hamper production, according to the European Automobile Manufacturers’ Association.
The month capped a disappointing start to the year, contributing to an 11pc drop for the first quarter after carmakers had banked on improving conditions over 2021.
Russia’s invasion of Ukraine has disrupted local suppliers, forcing Volkswagen and BMW to temporarily halt production.
Producers have also started to again walk back expectations of improvements in semiconductor availability with bottlenecks now seen reaching well into next year.
08:35 AM
Oxford Biomedica warns on sales drop as vaccine deal ends
Shares in Oxford Biomedica slumped this morning after the company said revenue will drop this year as it pauses manufacturing of AstraZeneca’s Covid vaccine.
The company manufactured the jab during the pandemic and is now in talks with AstraZeneca about a possible extension to their supply agreement, which helped to boost revenue last year.
Oxford Biomedica also warned it would post a loss this year due to costs related to its new business in the US.
Shares fell as much as 7.4pc to the bottom of the FTSE 250.
08:24 AM
P&O Ferries sacks drunken sailors
Troubled ferry firm P&O may just have found the answer to an age-old question.
Hannah Boland reports:
The company sacked seven agency workers who had been brought in as cheaper replacements to existing staff after they were found to have been drinking alcohol while on duty.
The company said that seven workers were “found to be in breach of our strict guidelines on alcohol consumption and have been dismissed with immediate effect”.
“The safety of our passengers and crew is our foremost priority and we continue to operate a zero tolerance policy towards drinking whilst on duty,” a spokesman told the BBC.
It comes just weeks after the ferry operator sacked 800 seafarers to replace them with cheaper agency staff, in a move it said would help it to save cash.
Karl Turner, the Labour MP for Hull East, accused P&O of “risking [the] safety of passengers and crew in my honest opinion”. “They must be stopped.”
.@POferries agency staff fired for drinking alcohol on duty. Experienced British seafarers understand why ships must be dry. This business is risking safety of passengers and crews in my honest opinion. They must be stopped. https://t.co/pNqaFw7S3x
— Karl Turner MP (@KarlTurnerMP) April 19, 2022
08:14 AM
Petropavlovsk’s Russian bank asks for its money back
Petropavlovsk has said its main Russian lender has asked it to repay a $200m (£154m) loan immediately, piling more pressure on the beleaguered gold miner.
The London-listed company has found itself in crisis in the wake of sweeping sanctions that have hit lender Gazprombank, leaving it unable to sell any gold.
Petropavlovsk said Gazprombank had asked for the immediate repayment of a loan of about $201m and asked for another $87.1m credit facility to be paid next week.
The miner said it was “considering the implications of these notices with its advisers”.
08:04 AM
Shell pulls staff from Russia as exit plan begins
Shell has started to withdraw staff from its joint ventures with Gazprom as it moves forward with plans to cut ties with Moscow.
Dozens of Shell employees on temporary assignment at the Sakhalin-2 liquefied natural gas export project in Russia were removed over the weekend and relocated to other offices, Bloomberg reports.
Shell said it was pulling out its seconded employees in ventures with Gazprom and Gazprom Neft in a phased process.
A spokesman said: “Our key focus in this process is safety of our people and operations and compliance with applicable laws.”
Shell came under fire in March for continuing to buy Russian oil at a discount after the invasion of Ukraine. It’s since pledged to cut all ties – a move it warned will cost up to $5bn (£3.9bn).
07:57 AM
National Insurance rise will hit investment and hiring, firms warn
The recent increase in National Insurance will cause a significant number of firms to cut back on spending and job creation, according to a new survey.
About one in five companies said the tax rise – designed to fund health and social care – would reduce their ability to invest.
One in six said it will discourage the creation of new roles, according to the Recruitment and Employment Confederation.
The survey adds fresh criticism over Rishi Sunak’s decision to press ahead with the 1.25 percentage point rise at a time when households are battling sky-high inflation and a cost-of-living crisis.
07:55 AM
Rio Tinto iron ore shipments slump
Rio Tinto has reported a drop in iron ore shipments in the first quarter and warned of looming risks from inflation, the war in Ukraine and Covid lockdowns.
The world’s biggest iron ore producer shipped 71.5m tonnes (Mt) of the commodity over the three-month period, down from 77.8 Mt a year earlier.
Labour shortages and supply chain troubles impeded the Anglo-Australian miner’s efforts to ramp up its Pilbara operations in Western Australia.
Chief executive Jakob Stausholm said: “Production in the first quarter was challenging as expected, re-emphasising a need to lift our operational performance.”
07:52 AM
Heineken sales climb as customers return to bars
Heineken delivered better-than-expected beer sales in the first quarter as customers returned to pubs and restaurants across Europe, despite having to pay more for their pints.
Beer volumes rose 5.2pc over the three-month period, while revenue rose by a third – driven mainly by price rises.
Shares in the world’s second-largest brewer rose as much as 5pc in early trading.
Heineken reiterated its outlook for modest growth this year as a rebound in demand is clouded by Russia’s war in Ukraine and rising supply-chain costs.
Dolf van den Brink, chief executive, warned of economic uncertainty and “additional inflationary headwinds” in the months ahead and said the company may raise prices further.
He added: “We expect mounting inflationary pressures to impact household disposable income and a consequent risk to beer consumption later in the year.”
07:51 AM
FTSE risers and fallers
The FTSE 100 is struggling for direction this morning, as gains in consumer staples and financial stocks were offset by losses in heavyweight commodity and pharmaceutical shares.
The blue-chip index was largely unchanged. Rio Tinto was the biggest faller, dropping 2.7pc after suffering a slump in iron ore shipments and warning on rising inflation.
Oil giants BP and Shell both slipped, while pharma firm AstraZeneca lost 0.8pc to become the biggest drag on the index.
Upward momentum came largely from Unilever, which gained 1.5pc. Banks were up 0.8pc.
The domestically-focused FTSE 250 dipped 0.1pc, with gold miner Centamin shedding 6pc.
07:24 AM
Just Eat mulls GrubHub sale as order numbers fall
Elsewhere, Just Eat Takeaway has said it’s considering selling off its GrubHub division after a slump in orders.
The delivery firm only bought its US rival in a £5.8bn deal in 2020, but it’s faced calls from one of its biggest shareholders to offload the business.
Activist investor Cat Rock Capital, which owns an almost 7pc stake in the company, said last year that selling Grubhub would address Just Eat’s “deep and damaging” undervaluation.
Just Eat this morning said it’s working with advisers to explore the possible sale of Grubhub or the potential “introduction of a strategic partner”.
It came as Just Eat reported a 1pc drop in orders to 264.2m in the first three months of the year as it struggled against pandemic-boosted levels from last year.
Meanwhile, gross transaction values increased by 4pc to €7.2bn (£6bn), representing a slowdown in growth.
07:13 AM
Cost-of-living crisis threatens streaming
While Netflix was hurt by its withdrawal from Russia, there are also signs wider demand for streaming services could be drying up, especially as the cost-of-living crisis forces households to cut back on non-essential spending.
Kantar data shows that 215,000 Netflix, Amazon Prime and Disney+ accounts were terminated in the first quarter in the UK alone, as households braced for surging energy bills and the fallout of rising inflation.
Cancellations are expected to worsen, with the proportion of viewers planning to axe one of their streaming services to save money hitting a record 38pc.
Netflix operates in an increasingly competitive market. Disney has now reached 196.4m subscribers between Disney+, ESPN+ and Hulu as it continues expanding its market share globally.
07:04 AM
FTSE 100 opens lower
The FTSE 100 has dipped at the open as investors continue to weigh up a slowdown in global growth.
The blue-chip index shed 0.1pc to 7,596 points.
07:01 AM
Squid Game makes Asia Netflix’s lone bright spot
The massive popularity of dystopian South Korean hit Squid Game made Asia a lone bright spot for Netflix.
The company added 1m subscribers in the region in the first quarter, even as its total user base declined for the first time in a decade.
Squid Game, in which a group of people compete in a series of deadly childhood games while super-rich VIPs watch, became Netflix’s biggest launch ever.
Its success spurred the company to push deeper into Asian content, including the Korean zombie series All Of Us Are Dead, which took off this year.
06:55 AM
Elon Musk blames Netflix slump on ‘woke mind virus’
Never one to keep his opinions to himself, Elon Musk has weighed in on Netflix’s quarterly results.
The Tesla billionaire, who’s currently staging a takeover bid for Twitter, said the streaming service had become “unwatchable” due to a “woke mind virus”.
It wasn’t clear what films of TV series Mr Musk was referring to, but Netflix has put a greater focus on diverse casting and LGBTQ+ stories in recent years.
That’s despite a backlash over its recent decision to commission four new specials by comedian Dave Chapelle, who critics have branded transphobic.
The woke mind virus is making Netflix unwatchable
— Elon Musk (@elonmusk) April 20, 2022
06:47 AM
Netflix U-turn shocks markets
Investors and analysts had been expecting a slowdown in Netflix’s growth, but the company was still expected to add 2.5m subscribers.
Bosses Reed Hastings and Ted Sarandos had previously dismissed the slowdown as a post-pandemic speed bump, but growth has failed to return to pre-Covid levels.
Netflix pointed the finger at four causes, including increased competition and people sharing accounts. The company said there are more than 100m households that use its service and don’t pay for it, on top of its 221.6m subscribers.
This means they’ve been forced to do exactly what they said they wouldn’t: launch an ad-funded version and crack down on password sharing.
Michael Nathanson, an analyst at Moffett Nathanson, said: “It’s just shocking. Everything they’ve tried to convince me of over the last five years was given up in one quarter. It’s such an about face.”
06:35 AM
Netflix sheds subscribers
Good morning.
Netflix is tearing up all its old rules after a disastrous set of quarterly results cast doubts over its future prospects.
The streaming giant said it lost 200,000 subscribers in the first three months of the year – its first decline in more than a decade.
While its withdrawal from Russia led to the loss of 700,000 customers, it projected another loss of 2m subscribers in the three months to the end of June, fuelling concerns it may already have seen its best days.
Shares in Netflix plunged 25pc last night. If the decline continues today, the company will have lost about half its value so far this year, wiping out around $150bn (£115bn) in shareholder wealth in less than four months.
5 things to start your day
1) Europe pays the price for its Russian gas addiction – but the worst is yet to come Fresh forecasts from the IMF lay bare the economic blow to be dealt to the region due to its reliance on Russian energy
2) Netflix loses subscribers for first time in a decade as cost of living bites Streaming giant posts dire prediction for second quarter sending shares down 26pc
3) Bulb Energy boss still being paid £250,000 after taxpayer bailout Hayden Wood keeps salary following company’s rescue with £1.7bn of public money
4) Britain to suffer weakest growth in G7 as Sunak’s tax raid bites IMF warns that UK will lag behind major rivals next year
5) Great British Rail Sale: Everything you need to know Where you can go, how to book tickets and how long the sale will last
What happened overnight
Asian markets were largely flat on Wednesday morning. In Tokyo, the Nikkei 225 opened slightly higher, buoyed by a cheaper yen, but the Hang Seng Index in Hong Kong was marginally lower after being battered by China growth concerns and Beijing’s crackdown on the tech sector on Tuesday. Shanghai and Seoul were also down while Sydney, Jakarta, and Taipei were inching upward.
Coming up today
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Corporate: Oxford Biomedica, Wood Group (full-year results); Bunzl, Carr’s Group, Centamin, CRH, Hunting, IntegraFin Holdings, Naked Wines, Petra Diamonds, Rio Tinto, QinetiQ Group, Quilter (trading statements)
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Economics: People’s Bank of China interest rate decision (China), industrial production (EU), trade balance (EU)
