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How Amazon's decision to spend billions on video is paying off

For $99 a year, Amazon Prime subscribers get exclusive access to all of its original video content and two-day shipping. The goal is to draw Amazon Prime subscribers in with content and then use the perks to turn those subscribers into consistent shoppers. "When we win a Golden Globe, it helps us sell more shoes," Bezos said at a 2016 technology conference.

In order to determine the entire cost of each in-house production to the company, Amazon considers the total amount spent on marketing and production for a show, and compares it to the number of new Prime subscribers who opted to watch that show first, according to internal company documents revealed by Reuters. The assumption is that these subscribers signed up for Amazon Prime primarily to access that show.

As this chart from Statista shows, the result is a breakdown of the cost per first stream. Even though Amazon spent almost the same amount on production and marketing on the first seasons of "Grand Tour" and "Good Girls Revolt," the graph shows that the difference in cost per subscriber is vastly different.

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BANK OF AMERICA: Trading in the dollar is undergoing a huge shift — here are 8 reasons why you should be buying

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BANK OF AMERICA: Trading in the dollar is undergoing a huge shift — here are 8 reasons why you should be buying

The US dollar has been on the recovery trail in recent weeks, climbing 3% from a more than three-year low reached in mid-February.
Bank of America Merrill Lynch sees a shift occurring that could send the greenback higher, and it gives 8 reasons why traders should be buying.

After a prolonged period of weaker-than-expected performance, the US dollar is back grinding out gains.

The greenback has climbed 4% since hitting a more than three-year low roughly 10 weeks ago — and Bank of America Merrill Lynch sees a giant change afoot that could dictate its future.

It's referring to the recent increase in correlation between the euro-dollar currency cross and the 10-year Treasury swap rate differential. As you can see in the chart, the greenback and rates have historically traded in varying degrees of lockstep, with the measure only falling into negative territory recently.

It makes sense when you consider that the US is now firmly entrenched in a rising-interest-rate environment. And if the recent rebound (as indicated by the up-arrow) is any sign, the correlation would appear to be headed back into more normal territory.

"One of the more puzzling developments in financial markets over recent months has been the breakdown of the usually reliable correlation between the USD and interest rate differential," David Woo, BAML's head of global interest rates and currencies research, wrote in a client note. "There are signs that this anomaly may be coming to an end."

This is all a long-winded way of saying BAML thinks the dollar is going to keep climbing. And the firm has gone as far as to highlight eight reasons why traders should be selling the euro and buying the US dollar:

1) The continuation of "soft" April data in the eurozone — BAML says it "lends support to the 'euro is too strong' theory."

2) The recent recovery in US business investment — The firm says it's "paving the way for higher productivity and wage growth."

3) A likely NAFTA deal — BAML says it should "increase US leverage in trade negotiations with China."

4) Earnings season — US companies may use their first-quarter reports as an opportunity to repatriate their offshore cash, the firm says.

5) Continued deleveraging by China — This will "limit the ability of the PBOC to match further Fed hikes," according to BAML.

6) The flatness of the US yield curve, and the relative steepness of its eurozone counterpart — BAML says foreign investors will only consider currency unhedged investment in US bonds, and only hedged investment in eurozone fixed-income.

7) Fiscal risk premium — BAML notes it's already "very high" in the US dollar.

8) Divergence between momentum and positioning — It's "turning the tables on over-extended euro longs," the firm says. Read »

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WALL STREET PAYDAY: Dealmakers could pull in $330 million in fees from takeover frenzy

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April 30, 2018

Welcome to Finance Insider, Business Insider's summary of the top stories of the past 24 hours. Sign up here to get the best of Business Insider delivered direct to your inbox.

Mergers and acquisitions are back.

M&A bankers are set to split nearly $330 million in fees from three megadeals announced over Sunday and Monday, according to consulting firm Freeman & Co.

These deals include a $26 billion merger between telecom giants T-Mobile and Sprint; oil refiner Marathon's acquisition of Andeavor for $23 billion; and Wal-Mart's sale of its UK grocery business Asda to Sainsbury for $10 billion. Here's the latest:

Elsewhere in deal news, investors are frustrated with Botox-maker Allergan — and its CEO says it's "deep into the process" of figuring out what to do next.

WeWork has raised $6.1 billion and pioneered the co-working movement — but it increasingly looks like it doesn't understand commercial real estate. And DocuSign popped in its long-awaited IPO — now its CEO and CFO explain what's next.

In related news, UBS has hired a top investment banker from Deutsche Bank amid a major ramp-up of its US dealmaking team.

In finance news, Morgan Stanley's youngest bankers could be getting a 25% pay raise. And Goldman Sachs is battling to contain an outbreak of mumps on the trading floor. And a bunch of former KCG staffers have found a new home at Wall Street broker Instinet.

In markets news, Business Insider recently spoke with Tobias Levkovich, Citigroup's chief US equity strategist, about what's keeping investors complacent. You can read the full interview here. Elsewhere in markets news:

And in crypto news:

Lastly, Jeff Bezos reveals what it's like to build an empire and become the richest man in the world — and why he's willing to spend $1 billion a year to fund the most important mission of his life.

Trump may have let something slip about the Russian lawyer from the Trump Tower meeting

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Senin, 30 April 2018

How Amazon's decision to spend billions on video is paying off

BANK OF AMERICA: Trading in the dollar is undergoing a huge shift — here are 8 reasons why you should be buying

WALL STREET PAYDAY: Dealmakers could pull in $330 million in fees from takeover frenzy

Trump may have let something slip about the Russian lawyer from the Trump Tower meeting

The Russia Investigation

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Trump may have let something slip about the Russian lawyer from the Trump Tower meeting

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The federal judge in the Stormy Daniels case thinks it's 'likely' Michael Cohen will be indicted

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A federal judge just dismissed Paul Manafort's lawsuit challenging Mueller's authority in the Russia probe

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The House Intel Committee report on its controversial Russia investigation is out — here are the big points

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One moment from the Cohen hearing shows how tense things are between Trump and Cohen

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