Apple gross sales beat expectations regardless of China decline

Keep knowledgeable with free updates

Merely signal as much as the World Financial system myFT Digest — delivered on to your inbox.

Good morning. We begin in the present day with the most recent 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 previously quarter, down 4 per cent from the 12 months 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.

Web gross sales within the higher China area have been $16.3bn for the quarter, in contrast with $17.8bn a 12 months in the past.

Shares bounced greater than 7 per cent greater in after-hours buying and selling. This 12 months, 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 dear listed firm to Microsoft.

The corporate has had a rocky begin to the 12 months, with the cancellation of its years-long automotive mission, mounting strain from US and EU antitrust enforcers and rising competitors in China from lower-cost rivals reminiscent of Xiaomi and Huawei. Right here’s extra on Apple’s outcomes and its challenges in China.

And right here’s what I’m preserving tabs on in the present day and over the weekend:

• Financial knowledge: Hong Kong and Singapore report March retail gross sales, whereas jobs figures are due within the EU and US. S&P World publishes its providers buying managers’ index for Australia. Thailand releases its month-to-month client worth index.

• Chinese language lunar mission: China is about to launch a robotic spacecraft to the far facet of the moon in the present day to gather rock and soil samples. (Reuters)

• 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 handle an financial discussion board in São Paulo.

• 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.

• Vacation: Monetary markets are closed in the present day in Japan for Structure Day.

How nicely did you retain up with the information this week? Take our quiz.

5 extra prime tales

1. Hong Kong’s monetary regulator has launched prison proceedings in an insider dealing case in opposition to hedge fund Segantii Capital Administration and its founder Simon Sadler and former dealer Daniel LaRocca. The fees relate to dealing within the shares of an unnamed firm listed on the Hong Kong Inventory Change earlier than a block commerce in June 2017. Right here’s what we all know concerning the case and Segantii’s block buying and selling enterprise.

• 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” have been equally accountable and complaining his bonus had been withheld.

2. US legislation agency Mayer Brown is to separate its China operations from its world community, turning into the most recent legislation 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 legislation companies, is engaged on a plan to hive off its Hong Kong, Shanghai and Beijing workplaces, in response to two folks 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 Home mentioned yesterday. The US is making ready sanctions to focus on these aiding such transfers between the 2 nations, and likewise condemned Pyongyang’s shipments of ballistic missiles to Moscow, which has been utilizing them in its battle in opposition to Ukraine.

4. Sony and personal fairness group Apollo have advised Paramount World they intend to make a $26bn money provide 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 Footage studio could be the bulk investor within the deal and have management, whereas Apollo could be a minority fairness investor, in response to two folks briefed on the strategy. Right here’s extra on the provide.

5. The Solomon Islands has picked former prime diplomat Jeremiah Manele as its subsequent prime minister. Manele was the Pacific nation’s overseas minister because it pursued nearer ties with China, however analysts advised he might 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. 

Visible story

Stalled western support and Russia’s success in a primarily land-based battle have made for a tricky begin to the 12 months for Ukraine. However within the Black Sea, Kyiv continues to make progress. Regardless of 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 placing naval success and its strategic and financial significance for a rustic depending on seaborne commerce.

We’re additionally studying . . . 

• TikTok and Tesla: Each Washington and Beijing juggle safety fears with business pursuits and political affect of their therapy of the businesses, writes John Thornhill.

• Japanese financial system: The battering sustained by the yen since January is inflicting fears in some quarters of the rising financial system bogeyman, writes Leo Lewis.

• Berkshire after Buffett: The second a part of our sequence on the corporate’s future appears to be like at Ajit Jain, the danger “genius” working Berkshire Hathaway’s insurance coverage operations.

Chart of the day

Excessive flows of immigration into wealthy nations are serving to to strengthen jobs markets and bolster progress, the OECD mentioned yesterday, because it lifted its outlook for the worldwide financial system. 

Take a break from the information

Miami’s new Messi Expertise is a nine-room, walk-through extravaganza of AI, 3D and CGI devoted to arguably the best footballer of all time. May it provide a glimpse of the way forward for customer points of interest? Or would possibly it merely be a headache-inducing meeting of video screens and particular results? Ruaridh Nicoll visits to seek out out.

Extra contributions by Tee Zhuo and Gordon Smith