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October 16, 2019

Netflix announces quarterly results / UK post-Brexit border issues exposed / IMF explores big tech in finance

By Lucy Ingham

3 THINGS THAT WILL CHANGE THE WORLD TODAY

Good morning, here’s your Wednesday morning briefing to set you up for the day ahead. Look out for these three things happening around the world today.

Netflix announces quarterly results

Netflix will today announce its third quarter results, in an earnings announcement that is expected to get greater scrutiny than the streaming giant typically enjoys.

It follows quarter two results that saw Netflix report weaker-than-expected subscriber growth, with the company’s stock down 20% since the day of its Q2 report.

The company also faces increasingly aggressive pricing strategies from rivals, particularly Apple and Disney, both of whom have recently launched their own streaming services.

Investors are likely to be looking for signs that Netflix can maintain its current growth trajectory, particularly given increased competition, with subscriber data set to be particularly important.

Netflix will hold a video interview with investors at 3pm PT (1am London time).

UK post-Brexit border issues exposed

The National Audit Office is today publishing a report looking into the UK border post-Brexit, warning that “resolving the most significant risk is now out of government control” if the UK leaves the European Union without a deal on October 31.

This is the latest report from the NAO examining various aspects of the UK’s exit from the EU, with previous reports exploring the potential impact of Brexit on the health and social care sector, trade negotiations and transport.

The report warns that the government’s decision to prioritise security and the flow of people over compliance “comes with financial risks”. The independent parliamentary body has said that any weaknesses may be exploited by organised criminals, with the approaching deadline meaning that there is little time left to implement measures such as infrastructure and staffing which will be needed to carry out checks on lorries wishing to use the Eurotunnel.

The report concludes that the current border arrangements for a no-deal Brexit are “not sustainable in the long-term”.

IMF explores big tech in finance

The World Bank’s International Monetary Fund (IMF) will take on the increasing presence of big tech in the world of finance today with a major seminar entitled Big Tech and the Future of Finance.

The seminar features heavyweight panelists from both the worlds of finance and technology, including Governor of the Bank of England Mark Carney, Professor of the Practice of Economic Policy at Harvard Kennedy School Jason Furman, Facebook head of Calibra David Marcus and co-founder and chairman of Infosys Technologies Nandan Nilekani.

It will explore not only how big tech is entering fintech, but the risks involved, considering how banking and finance is likely to be reshaped in the future.

The seminar will begin at 10am EDT (1pm London time) and will be available to stream via the IMF’s website.

Tuesday’s Highlights

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With voter ID plans criticised, what election technology alternatives are there?

Hull to become UK’s first smart city with its own operating system

Fusion island breakthrough may make power source viable “up to a decade sooner”