22 Jan Shutdown continues; Netflix earnings; Pharma takeover
1. Government shutdown continues: The U.S. government shutdown enters its third day on Monday, with the Senate scheduled to vote at noon on a bill to reopen it for three weeks. However, it is still unclear whether the proposal will garner enough support from Democrats to pass.
While a brief shutdown won’t have a significant economic impact, a prolonged disruption to government services could result in a hit. The last government shutdown — which lasted more than two weeks in October 2013 — cost an estimated $20 billion, according to an estimate from Moody’s Analytics.
In Germany, months of political deadlock were broken Sunday when the center-left Social Democrats voted to begin formal coalition talks with Chancellor Angela Merkel’s center-right party, a move that brings a new Merkel-led administration closer to reality.
2. Netflix reports earnings: The online streaming giant will release earnings for the quarter ended December after the close on Monday, revealing the impact of its most recent increase in subscription prices. Netflix ( raised the cost of its standard monthly subscription by $1 and the cost of its premium subscription by $2 in early October. )
The company behind hit shows like “The Crown,” “Stranger Things” and “House of Cards,” added over 5 million new subscribers in the previous quarter and expects to add another 6 million in the three months to December. It plans to spend $8 billion on shows and movies in 2018.
Netflix’s stock price has gone up more than 60% over the past year.
Logitech Intl SA ( and )TD Ameritrade ( are also set to report earnings after the close, while )Halliburton ( and )Wynn Resorts ( plan to release earnings before the open Monday. )
3. Pharma takeover: Sanofi ( announced a deal to buy biotech firm )Bioverativ ( for $11.6 billion. The French pharmaceutical group will pay $105 in cash for each share of Bioverativ, which specializes in treatments of hemophilia and other rare blood disorders. )
The agreed offer represents a 64% premium over Bioverativ’s closing price on Friday.
“Together, we have a great opportunity to bring innovative medicines to patients worldwide,” Sanofi CEO Olivier Brandicourt said in a statement.
Sanofi shares dropped more than 3% in in Paris on Monday morning.
The S&P 500 and Nasdaq both ended the week at record highs, while the Dow gained 54 points to close near an all-time high.
GE (, one of America’s most iconic companies, had its worst week since March 2009 after plunging 13%. The firm will report its latest earnings on Wednesday. )
5. Coming this week:
Monday — Netflix earnings.
Tuesday — Procter & Gamble (, )Verizon (, )United (, )Johnson & Johnson ( earnings; Davos starts; NAFTA talks resume. )
Wednesday — Comcast (, )Ford (, )GE ( earnings. )
Thursday — American Airlines (, )JetBlue (, )Southwest (, )Caterpillar (, )Intel (, )Starbucks ( earnings. )
Friday — Honeywell ( earnings, Q4 GDP. )
CNNMoney (New Delhi) First published January 22, 2018: 5:01 AM ET