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Good morning. We begin at present with the newest outcomes from Apple, which surpassed analysts’ downbeat expectations however confirmed extra warning indicators about its enterprise in China.
The tech firm yesterday reported income of $90.75bn prior to now quarter, down 4 per cent from the yr earlier than however barely forward of consensus estimates for $90.3bn. Apple additionally introduced one other $110bn in share buybacks and raised its quarterly dividend by 4 per cent.
Net gross sales within the higher China area had been $16.3bn for the quarter, in contrast with $17.8bn a yr in the past.
Shares bounced greater than 7 per cent larger in after-hours buying and selling. This yr, Apple’s inventory has fallen about 7 per cent and it has as soon as once more misplaced its place because the world’s most respected listed firm to Microsoft.
The firm has had a rocky begin to the yr, with the cancellation of its years-long automobile venture, mounting stress from US and EU antitrust enforcers and rising competitors in China from lower-cost rivals comparable to Xiaomi and Huawei. Here’s extra on Apple’s outcomes and its challenges in China.
And right here’s what I’m conserving tabs on at present and over the weekend:
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Economic knowledge: Hong Kong and Singapore report March retail gross sales, whereas jobs figures are due within the EU and US. S&P Global publishes its providers buying managers’ index for Australia. Thailand releases its month-to-month shopper value index.
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Chinese lunar mission: China is about to launch a robotic spacecraft to the far aspect of the moon at present to gather rock and soil samples. (Reuters)
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Japan PM in Latin America: Fumio Kishida is because of meet Brazilian President Luiz Inácio Lula da Silva in Brasília earlier than travelling to Asunción for a go to with Paraguayan President Santiago Peña. On Saturday he’ll be again in Brazil to deal with an financial discussion board in São Paulo.
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Xi Jinping in Europe: China’s chief begins a five-day journey to Europe on Sunday, his first go to to the area since 2019, with stops in France, Serbia and Hungary.
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Holiday: Financial markets are closed at present in Japan for Constitution Day.
How effectively did you retain up with the information this week? Take our quiz.
Five extra prime tales
1. Hong Kong’s monetary regulator has launched felony proceedings in an insider dealing case towards hedge fund Segantii Capital Management and its founder Simon Sadler and former dealer Daniel LaRocca. The prices relate to dealing within the shares of an unnamed firm listed on the Hong Kong Stock Exchange earlier than a block commerce in June 2017. Here’s what we all know in regards to the case and Segantii’s block buying and selling enterprise.
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Fired SocGen Hong Kong dealer hits again: A Société Générale dealer dismissed over unauthorised dangerous bets has lashed out on the French financial institution, saying the “entire risk team and other bosses” had been equally accountable and complaining his bonus had been withheld.
2. US regulation agency Mayer Brown is to separate its China operations from its world community, turning into the newest regulation firm to rethink its enterprise there as market circumstances stay weak and tensions fray with the US. Mayer Brown, one of many world’s top-grossing regulation companies, is engaged on a plan to hive off its Hong Kong, Shanghai and Beijing workplaces, based on two individuals near the agency.
3. Russia shipped greater than 165,000 barrels of refined petroleum to North Korea in March in defiance of UN sanctions, the White House mentioned yesterday. The US is getting ready sanctions to focus on these aiding such transfers between the 2 international locations, and in addition condemned Pyongyang’s shipments of ballistic missiles to Moscow, which has been utilizing them in its conflict towards Ukraine.
4. Sony and personal fairness group Apollo have instructed Paramount Global they intend to make a $26bn money supply for the leisure firm, simply someday earlier than an exclusivity window is about to run out for a competing bid from Skydance Media. The Japanese group behind the rival Sony Pictures studio could be the bulk investor within the deal and have management, whereas Apollo could be a minority fairness investor, based on two individuals briefed on the strategy. Here’s extra on the supply.
5. The Solomon Islands has picked former prime diplomat Jeremiah Manele as its subsequent prime minister. Manele was the Pacific nation’s international minister because it pursued nearer ties with China, however analysts steered he may very well be extra conciliatory in direction of the west than outgoing premier Manasseh Sogavare. “He [Manele] may have an open ear,” mentioned Mihai Sora of the Lowy Institute.
Visual story
Stalled western assist and Russia’s success in a primarily land-based conflict have made for a troublesome begin to the yr for Ukraine. But within the Black Sea, Kyiv continues to make progress. Despite having no actual navy, Ukraine has disabled or destroyed a 3rd of Russia’s Black Sea fleet over the previous two years. Our newest visible story explores Ukraine’s hanging naval success and its strategic and financial significance for a rustic depending on seaborne commerce.
We’re additionally studying . . .
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TikTok and Tesla: Both Washington and Beijing juggle safety fears with industrial pursuits and political affect of their remedy of the businesses, writes John Thornhill.
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Japanese economic system: The battering sustained by the yen since January is inflicting fears in some quarters of the rising economic system bogeyman, writes Leo Lewis.
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Berkshire after Buffett: The second a part of our collection on the corporate’s future appears to be like at Ajit Jain, the danger “genius” operating Berkshire Hathaway’s insurance coverage operations.
Chart of the day
High flows of immigration into wealthy international locations are serving to to strengthen jobs markets and bolster development, the OECD mentioned yesterday, because it lifted its outlook for the worldwide economic system.
Take a break from the information
Miami’s new Messi Experience is a nine-room, walk-through extravaganza of AI, 3D and CGI devoted to arguably the best footballer of all time. Could it supply a glimpse of the way forward for customer points of interest? Or may it merely be a headache-inducing meeting of video screens and particular results? Ruaridh Nicoll visits to search out out.
Additional contributions by Tee Zhuo and Gordon Smith
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