Marketplace Morning Report

Netflix stock is down almost 20 percent in futures trading, and according to the streaming giant’s latest quarterly report, we know that subscriber growth slowed dramatically last year from the blockbuster numbers in 2020, when so many of us where staying home and leaned on Netflix for entertainment. Christopher Low discusses mortgage rates and the bond buying program in our markets talk. The Sundance Film Festival is going virtual again – how does that work when it comes to networking?

From the BBC World Service: Two of the world’s biggest energy companies, Total Energies and Chevron, are leaving Myanmar amid concerns about human rights abuses following last year’s military coup. Plus: Toyota is hit with production delays. And, can insects become a bigger go-to food staple globally?

Tensions between Russia and Ukraine have continued to rise. One sticking point is Russia's crucial role in supplying natural gas to Europe through Ukraine and what a military conflict would mean for that gas. Another is the Nord Stream 2 pipeline, which was built to carry natural gas from Russia to Europe – and circumvent Ukraine. The pipeline, which is not yet online, could mean economic problems for Ukraine. Arkady Ostrovsky, The Economist's Russia and eastern Europe editor, spoke to us about what's at stake. Also today, we take a look into Amazon’s plans to open an actual brick-and-mortar clothing store in Los Angeles.

We’ve been chronicling the trend of younger people getting into stock trading via their phones, which has led to some interesting results, such as last year’s GameStop frenzy. Critics say the more trading stocks feels like a game, the bigger risks people take with their money. Diane Swonk talks the markets with us after data on jobless numbers reflect omicron’s damaging effects on the economy. President Biden said there’s a peacemeal path to move his Build Back Better plan forward.

The Senate Judiciary Committee takes up two bills today aimed at reining in the power of Big Tech companies such as Google and Apple. One bill would force tech giants to open up their app stores to more competition. The other would bar them from favoring their own apps and services. Rising prices haven’t stopped people from buying products from big companies such as Procter & Gamble, data shows. Community colleges will be getting a big financial boost from the Biden administration, so what can they do with it?

From the BBC World Service: Authorities in Peru say a tanker spill has caused an “ecological disaster” with hundreds of dead animals. Government officials have urged Repsol, the Spanish refinery operator, to do more to help cleanup efforts. Plus, a cyberattack on the International Red Cross exposes half a million vulnerable people. And, there are concerns the game-like nature of some stock trading apps encourages too much risk taking.

A lawsuit brought by the drugmaker Gilead alleges that a counterfeiting ring sold more than 80,000 bottles of fake and possibly unsafe HIV medications to pharmacies over the past two years, worth more than $250 million. Gilead said the bottles had falsified documentation and sometimes contained fake pills, and in some cases made patients sick. For more, we spoke with the Wall Street Journal’s Corrine Ramey, who broke this story Tuesday. Susan Schmidt discusses the potential rise of interest rates in our daily chat about the markets.

From the BBC World Service: Ukraine’s defense minister told the BBC he encourages Western governments to impose immediate sanctions on Moscow amid rising concerns of an invasion of his country. Plus: Shares of Sony plunge after Microsoft announces a big acquisition. And, how China’s Xingjang region hopes to benefit from the winter Olympic games.

President Biden pledged to battle climate change when he took office more than a year ago, and bills like the Build Back Better Act reflected that pledge. However, that same bill appears to be in limbo and highlights the administration’s gains and losses on the energy policy and climate front. A Bankrate survey has found that many Americans don’t feel they have the resources to cover a $1,000 emergency expense. Homebuilders are staying optimistic in the face of a hurricane of issues that range from supply shortages to rising mortgage rates.

It’s not just “dry January” anymore. Sales of non-alcoholic beverages spiked 30% in the past year, according to Nielsen data. Leading the charge are younger people, who have not only become more health conscious at the start of the new year, but also more wary of cost. Julia Coronado discusses the markets with us today. The BBC reports on how geopolitics could be a factor in the rise in global oil prices.

From the BBC World Service: The crude oil price spike is tied to rising geopolitical risks, with concerns over a Russian invasion of Ukraine and supply disruptions in the United Arab Emirates after a deadly drone attack. Plus, at the virtual Davos summit, Chinese President Xi Xinping defended his common prosperity strategy. And, concerns over China’s influence at Sri Lanka’s new port city development.

The number of Americans filing paperwork to start businesses hit a record 5.4 million in 2021, up from the previous record of 4.4 million new business applications set in 2020. A study from LendingTree finds that a lot of those new entrepreneurs can be found in the South. We spoke with Matt Schulz, LendingTree’s chief credit analyst, about the study’s findings. Airlines are still wary of Verizon and AT&T’s launch of new 5G signals, as they offer fresh warnings about the signals’ effect on planes and equipment.

In a picture of inflation, a food vendor in Los Angeles tells a tale of how the rising cost of onions has had ripple effects on her business and others like it. The advanced child tax credit checks have stopped coming for now, leaving many families who relied on it in a bind. The BBC reports on the resignation of the chairman of Credit Suisse, who apparently broke COVID protocols.

The evictions moratorium in New York expired over the weekend after a nearly two-year run during the pandemic. We look at its impact, and what tenants can still do. China’s economy grew last year, but some sectors within it are still struggling when it comes to sales, such as education and tourism. A report from Oxfam sounds the alarm on how the pandemic has greatly exacerbated the wealth disparity between the world’s billionaires and everyone else.

From the BBC World Service: While the Chinese economy grew more than 8% last year, it has seen a drop-off in demand, supply-chain issues and weakening economic expectations. Plus, the Credit Suisse chairman has resigned amid reports he twice broke COVID-19 quarantine rules. And, Paris is cleaning up its river water quality ahead of the 2024 Olympics.

The Canadian province of Quebec has seen the highest number of COVID deaths in the country, and as it gears up to reopen and lift a curfew, it’s about to impose a tax on people who haven’t gotten vaccinated. Officials say that’s probably the driving force behind a spike in vaccine appointments. The Biden administration is rolling out billions for bridge replacement and repair. We check in with some retailers to see if they’ve been able to keep up with demand as government data on retail sales emerges.

The Supreme Court on Thursday blocked an emergency order by the Occupational Safety and Health Administration that large employers require employees to be vaccinated or tested weekly, but allowed a similar mandate for health care workers. Debbie Berkowitz, a former senior OSHA official who's currently a fellow at Georgetown University, joined us to discuss the rulings in more detail. Plus, car advertisements in France will eventually have to contain language that encourages people not to drive in an effort to address climate change. Can that even work?

From the BBC World Service: The cyberattacks hit the websites of the Ukrainian foreign, energy and education ministries. Authorities say nearly 60 attacks on state systems were thwarted last month alone. Plus, French electricity provider EDF will have to sell more power generated from its nuclear plants to competitors at cheaper prices as the government seeks to limit the rise in household energy costs. And, the young Indian artists making money from NFTs.

More than half of Americans are extremely worried about the direction of the country, according to the latest Mood of the Nation poll by the McCourtney Institute for Democracy at Penn State in collaboration with APM Research Lab. We discuss the findings with Eric Plutzer, a political science professor at Penn State and director of polling at the McCourtney Institute. Oil well drilling has picked up in the Permian Basin in Texas, but filling jobs for oil field work has proven to be a challenge. Medicare is challenging the FDA’s approval of Aduhelm, an Alzheimer’s drug.

Huge backlogs and outdated technology are just some of the obstacles bogging down the IRS as it enters another tax season, so it’s urging taxpayers to prepare as much as possible ahead of time – and to be ready to wait. Lael Brainard, the nominee for vice chair of the Federal Reserve, is ready for her confirmation hearing today. What questions could she face? There are now companies that specialize in providing clarity and intel on supply chains.

From the BBC World Service: Fed up with inconsistency around COVID rules, French teachers stage the biggest education strike in decades. Plus: Indonesia resumes thermal-coal exports, and a look at how people in Sri Lanka are dealing with an economic crisis pushing up the cost of food and fuel.

Prices have gone up 7% in one year, which is the highest reading for the Consumer Price Index since 1982. That’s the backdrop for our markets discussion with Jeffrey Cleveland of Payden & Rygel. We check in on China, which has suspended dozens of flights coming from the U.S. because of COVID issues. The number might not sound high, but the impact on airlines and visitors from the U.S. is significant. With bigger banks doing away with overdraft fees, smaller community banks are analyzing if they can afford to do the same.

For the answer to that question, we turn to World Bank President David Malpass, who discusses some of the challenges facing the global economy as well as the possibility that growth will slow down in 2022. The Biden administration is set to offer millions of free COVID tests to schools around the country.

From the BBC World Service: While high inflation concerns are keeping policymakers up at night in many parts of the world, prices in China are rising, but a slower rate than expected. Plus, Quebec plans to impose a tax on people who refuse to get a COVID-19 vaccine. And, the English company that’s looking to use nuclear fusion to help generate cheaper, greener power.

We talk to senior economics contributor Chris Farrell about the world of the default option when it comes to personal finance and planning. What is it, and why is it such a popular choice? Susan Schmidt joins us for our chat about the markets. Vaccine mandates could disrupt truckers heading into Canada from the United States, which could further compound supply chain issues.

Fed Vice Chair Richard Clarida announced his resignation Monday, much earlier than expected. Clarida resigns amid questions about stock trades he made in 2020. The past year saw a massive spike in ransomware-related cyberattacks. Large amounts of sensitive data were stolen from places ranging from school districts to health care providers, and then resold online. That includes the data of children. California remains a holdout for legalized sports gambling, and many groups are jostling for position to control that potentially lucrative scene.

From the BBC World Service: The United Nations is asking for $5 billion to help alleviate a worsening humanitarian disaster in Afghanistan, with around half the population struggling to find enough to eat. Also, data show Heathrow Airport saw fewer travelers in 2021 than even during the height of the pandemic in 2020.

We take a look at the relationship between mortgage rates and home prices. It can get a little complicated once inflation factors in. The Chinese city of Tianjin’s 14 million residents are going to undergo COVID testing after more than 40 cases popped up there over the weekend. The BBC reports on how people in rural Spain are campaigning for more investment and better infrastructure.

The pandemic has led to a heavy reliance on traveling nurses, whose pay has increased to thousands more than what staff nurses generally make. This begs the question for those nurses: Why stay? The Biden administration is trying to get more COVID relief money to small businesses in disadvantaged communities. The IRS wants apps like Venmo to start reporting businesses transactions totaling more than $600, which adds a wrinkle to the money logistics of many people who have gone into business for themselves.

From the BBC World Service: That’s more than half of all employees at New Oriental, one of China’s biggest private-tutoring companies. It comes after Beijing implemented stricter rules on private education sector last summer as it tightens regulation in various industries. Plus, the Philippines is the latest Asian country to appeal to Indonesia to lift its ban on coal exports. And, people in rural Spain are campaigning for more investment and better infrastructure.

Takeout has become a huge part of life in the pandemic era, and restaurants have leaned into to-go alcohol as a big part of their business. New York is moving toward making to-go alcohol a permanent thing. Julia Coronado joins us to discuss the release of the latest jobs data, part of which shows a somewhat underwhelming December. In an effort to turn things around, GameStop is about to explore the space of cryptocurrency and NFTs.

It’a another jobs report day today, and one thing that’s shown itself to be constant no matter what the data says is that demand for workers remains high. There’s a record-setting number of job openings and a desire for people to fill them. While inflation has been seen as a kind of economic dark cloud by many, others see some marketing possibilities. The BBC reports on how steel companies in the U.K. are handling U.S. import tariffs.

From the BBC World Service: A large coalition of investment firms is calling on the world’s biggest COVID vaccine makers to improve global jab distribution. Plus, though the fuel price cap has been reimposed in Kazakhstan, life in the commercial capital of Almaty is getting increasingly difficult. And, how British steel companies are dealing with the ongoing impact of U.S. import tariffs.

Nearly two years into the COVID era, the landscape of work has changed. Managers and employers everywhere are scrambling to find ways to hold on to the workers they have in a tight labor market. We address the anniversary of the Jan. 6 insurrection on the U.S. Capitol building with Ian Bremmer of the Eurasia Group, who put out a list of the biggest challenges facing the global economy.

From the BBC World Service: As unrest continues in Kazakhstan, including in the main commercial city of Almaty, we examine the country’s economic links with neighboring Russia. Plus, French regulators crack down on Facebook and Google over the use of electronic cookies to track online users. And, Taiwan is setting up a $200 million investment fund to further bolster ties with Lithuania.

That’s one of the possibilities analysts have mentioned following the release of the minutes from the Fed’s December policy meeting. The minutes showed that inflation concerns are spreading through more of the economy. Omicron worries have heavily impacted CES, the massive tech show in Las Vegas. What’s happening there raises questions about the convention-going experience in the future. Corporate political giving essentially shut down following the Jan. 6 insurrection on the U.S. Capitol, but it appears to be making a comeback.

President Biden could nominate Philip Jefferson for the seat on the Fed’s board of governors. If he makes it, Jefferson would just be the fourth Black governor in the history of the Federal Reserve. We take a short look at the how diversity has eluded the Fed for years. Susan Schmidt joins us for a markets discussion on a day when reportedly more than 800,000 jobs were added to private payrolls in December. The pandemic actually helped boost the sports collectibles market – is it poised for repeat business in 2022? Update (1/5/21): The story about diversity at the U.S. central bank has been updated to correctly characterize leadership at the Federal Reserve Bank of Boston. For more information, check out the story on marketplace.org.

The omnipresent pandemic and the tense staring contest between the U.S. and China are just a couple of the things to watch as the global economy churns ahead into 2022. We spoke to Ian Bremmer, founder of the Eurasia Group, about its “Top Risks” report for the new year. For the first time in 90 years, General Motors has lost its spot at the top of the U.S. car sales mountain.

From the BBC World Service: That’s after authorities in oil-rich Kazakhstan lifted price caps on liquefied gas used for cars, causing prices to surge. An emergency has been declared in a number of cities and in the oil-producing western region of Mangistau. Plus, KFC apologizes to customers in Kenya after running out of fries. But, it’s more complicated than that. And, can London really compete with New York as a financial center?

Layers of numbers and data keep getting added to the arsenal of measurements used to interpret economic activity, but those numbers are becoming less and less dependable. Senior economics contributor Chris Farrell talks with us about possible solutions to this wide-ranging issue. There’s a shortage of bus drivers along with everything else, and transit systems are struggling to make up the difference. Apple is now worth $3 trillion dollars.

Elizabeth Holmes, the founder of the now-defunct blood testing startup known as Theranos, was found guilty on four counts of defrauding investors. We speak to Adam Lashinsky of Business Insider, who has been covering Holmes’ trial, on how this outcome impacts Silicon Valley. A law against surprise medical bills that Congress passed more than a year ago finally went into effect on Jan. 1.

From the BBC World Service: We break down how the London Interbank Offered Rate or Libor, a key lending rate used to calculate everything from your mortgage to credit-card offers, has been overhauled. Plus, while countries including the U.S. have been scaling back self-isolation requirements, several Chinese cities have recently gone into full lockdown. And, the world’s biggest oil producers don’t seem too concerned about the longer-term impact of COVID-19.

With the ongoing shortage of health care workers, families across the country are struggling to access home care for their loved ones. However, there are programs that can actually pay family members to provide that care. Julia Coronado kicks off our first markets discussion of the new year with a quick look at some promising signs within the economy. We chat with the BBC’s Victoria Craig on the continuing struggles of Chinese property developer Evergrande, the company that’s hundreds of billions of dollars in debt.

Senior economics contributor Chris Farrell discusses data from a series of studies that highlight a disturbing lack of diversity in financial services such as asset management and financial planning. Air travelers everywhere are kicking off their 2022 by dealing with even more flight cancellations. This is happening as telecom companies plan to launch more 5G networks, which airline groups say could mess things up even more.

From the BBC World Service: Why exactly were Evergrande shares suspended in Hong Kong? Plus, Turkey’s inflation has surged by the most in two decades, with many shop workers having to price and re-price products on shelves over and over again. And, Lebanon’s economic challenges ahead of scheduled elections later this year.

Travel woes continue for anyone trying to fly, as cancellations have reached seven days straight with more on the way. That’s not all – the FAA also says there could be a shortage of air traffic controllers. Christopher Low joins up for a recap of the economic year. High home prices are pushing out many first-time homebuyers, which is leading to more high-earning renters. After nearly a year since Brexit, the BBC talks to businesses in the Netherlands for perspective on what it’s like to do business with the U.K. now.

When the pandemic emerged in 2020, it led to a down year for every kind of industry – even confetti sales. However, 2021 brought more reasons for people to get out and celebrate, which will culminate with 3,000 pounds of confetti being dropped on thousands of people in Times Square to ring in the new year. Massive gatherings have been scaled back, but some retailers have witnessed a confetti resurgence. Concerns about the omicron variant have hobbled plans for New Year’s celebrations at bars and eateries. A jury in New York has found Teva Pharmaceuticals responsible for contributing to the deadly opioid addiction epidemic in the U.S.

From the BBC World Service: As we count down to 2022, many of us will be watching a movie or TV show. Demand for content has boomed during the pandemic and the British creative industry has benefited. Spending on U.K. film and TV productions hit a record as streaming giants Netflix, Amazon and HBO spend billions on new content. It’s been 20 years since Harry Potter hit the silver screen and the franchise has been churning out magical profits ever since.

Jobless claims dropped to just under 200,000 last week according to data from the Labor Department. This is happening despite a surge in COVID cases, and Diane Swonk helps provide some context during our discussion about the markets. A new law that goes into effect Jan. 1 in California could alter how companies like Amazon use data to manage workers in warehouses. We take a look at the general health of the U.S. job market. And, we speak to the leader of the flight attendants union about the labor movement and the working conditions flight attendants face.

Flight attendants have played a critical role during every flight during the holiday travel season and beyond, especially in the era of the pandemic. We spoke with Sara Nelson, international president of the Association of Flight Attendants-CWA, for more on what flight attendants are facing and how it factors into the larger labor movement. The FDA has granted emergency use authorization for new at-home COVID test kits from two different companies. The tests should be available starting next month.

From the BBC World Service: Global companies are having to backtrack or delay their return to office plans as the omicron variant continues to spread. Google’s EMEA boss explains why digital skills are so important in the pandemic era. As many offices continue to sit empty after two years, one man in Scotland is looking to capture the sounds of traditional workplaces.