(BFW) U.S. OVERNIGHT WRAP: Apple 2Q, Baltimore Riots, BP, Greece

BFW cite Ion-Marc Valahu – 28.04.2015

* QUOTE: “European equities might have moved ahead too far too fast,” said Ion-Marc Valahu, co-founder and fund
manager at Clairinvest in Geneva. “Growth in Europe is not there yet, even in Germany. In addition, we have the Fed on Wednesday so a bit of caution is warranted.”

 

(BFW) U.S. OVERNIGHT WRAP: Apple 2Q, Baltimore Riots, BP, Greece

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U.S. OVERNIGHT WRAP: Apple 2Q, Baltimore Riots, BP, Greece
2015-04-28 09:31:06.353 GMT

By Brad Skillman, Heather Burke and Nadine Skoczylas
(Bloomberg) — European stocks, U.S. index futures fall.
Oil declined for a 3rd day before U.S. government data forecast to show crude stockpiles expanded further from a record. Gold and silver were little changed.
* Top news stories include Apple’s 2Q profit beat estimates on demand for the iPhone 6 and 6 Plus, Baltimore riots lead
Maryland to declare state of emergency, U.K. GDP misses ests.
* Here’s a look at news that developed since you left the office Monday at 4pm. For a look at what’s happening today,
check out U.S. Daybook. To see this regularly, run FIRS USOVER to set up an alert.

KEY DATA:
* S&P 500 futures down 0.2% to 2100
* Stoxx 600 down 0.9% to 409
* MSCI Asia Pacific up 0.2% to 157
* US 10-yr yield up less than 1bp to 1.93%
* Dollar Index down 0.15% to 96.62
* WTI Crude futures down 0.8% to $56.56
* Brent Futures down 0.6% to $64.43
* Gold spot up less than 0.1% to $1,202
* Silver spot down less than 0.1% to $16.39

TOP NEWS:
* Apple’s Newest IPhones Fuel Profit Surge as China Outpaces U.S.: 2Q EPS $2.33, est. $2.16; expanding capital return program to $200b; raises buyback authorization to $140b from $90b and increases qtrly dividend to 52c from 47c
* Apple Finds Bigger Is Better When It Comes to IPhone Sales
* Maryland Declares Emergency as Riots Follow Black Man’s Death: Riots erupted in Baltimore after the funeral of a black man who died of injuries suffered while he was in police custody, prompting officials to declare a state of emergency, impose a curfew and close schools
* United Said Under Probe for Adding Route Urged by Christie Ally: U.S. Attorney’s Office in N.J. said to investigate whether United employees made improper attempts to influence Port Authority’s David Samson
* BP Profit Beats Estimates as Refining Offsets Oil-Price Plunge: First results this yr from the world’s largest oil cos. demonstrate the protection against lower prices gained from processing and selling fuel; 1Q adj. net $2.6b vs est. $1.2b
* Tsipras Says Greek People May Have to Rule on Creditor Deal: Prime Minister Alexis Tsipras said Greek voters could be asked to decide whether to approve an agreement with creditors that may not be in line with his campaign pledge to end austerity
* U.K. Economy Grows at Slowest Pace Since 2012 in Blow to Cameron: 1Q GDP rises 0.3% q/q; median est. 0.5% q/q; 1Q’s 0.3% pace was just half the rate of the previous 3 months, marked the weakest expansion since 4Q of 2012
* Yahoo Announces 18 New Series in Push to Expand Digital Video: New offerings will bring its total to 55 series, content includes original programming, live broadcasts and videos for its magazines that are focused on subjects such as cars, food
* Honda Net Forecast Trails Estimates on Recalls, U.S. Sales: Net income will probably rise to 525b yen in FY16, based on
U.S. GAAP accounting standards, compares with 661b yen est.
* Fed Seen Delaying Liftoff to September to Push Down Unemployment: Fed’s long-awaited liftoff on its benchmark
interest rate won’t happen until Sept., according to economists surveyed by Bloomberg News
* Teva Said to Take Acquisition Bid Directly to Mylan Holders: Teva, whose $40.1b takeover offer for Mylan was rejected, is meeting with key shareholders of the target company to win their support, people with knowledge of the matter said
* Nepal Finance Minister Says Reconstruction Cost to Exceed $10b: Death toll could rise past 6,000, govt struggling to save people trapped due to lack of equipment, Finance Minister Ram S. Mahat says in interview
* Container Store Shares Tumble After Profit Trails Estimates: 4Q comp. sales -0.8%, est. +2.4%; 4Q adj. EPS 24c, est. 31c
* Time Warner Cable Open to Charter Merger Talks, Reuters Says
* HBO ‘Game of Thrones’ Draws 18.1 Million Viewers in Debut
* Post-Mkt News:
* Mastercard to Buy Applied Predictive Technologies for $600m
* Google May Make Changes to News Service: Financial Times
* Hartford Financial 1Q Oper. EPS Beats; Rev. Misses
* Hartford Financial 1Q Oper. EPS Beats; Rev. Misses

WHAT HAPPENED IN EUROPEAN MARKETS:
* European shares fall, at session low, with all regions declining except for Spain. U.K. stocks decline after 3-day gain, pound weakens, as GDP growth slows more than forecast.
* QUOTE: “European equities might have moved ahead too far too fast,” said Ion-Marc Valahu, co-founder and fund
manager at Clairinvest in Geneva. “Growth in Europe is not there yet, even in Germany. In addition, we have the Fed on Wednesday so a bit of caution is warranted.”
* 17 out of 19 Stoxx 600 sectors fall with health care, construction underperforming and oil & gas, utilities outperforming
* 80% of Stoxx 600 members decline, 19% gain

EUROPEAN DATA:
* Stoxx 600 down 0.9% to 409
* FTSE 100 down 0.8% to 7049
* DAX down 0.6% to 11962
* German 10Yr yield down less than 1bp to 0.15%
* Italian 10Yr yield up 1bp to 1.37%
* Spanish 10Yr yield up 2bps to 1.32%
* S&P GSCI Index down 0.4% to 432.4

EUROPEAN TOP NEWS:
* Standard Chartered Misses 1Q Profit Est.: 1Q pretax profit $1.5b, down from $1.9b y/y, vs est. $1.6b
* Bollore Eyes Berlusconi Deal Ahead of Potential Italy Foray: large investment in Mediaset, possibly also involving Telecom Italia, is one optop for Vivendi Chairman Bollore’s co., people familar told Bloomberg
* Daimler Profit Surges 41% as Sales Gains Beat Rivals’ Growth: 1Q Ebit from ongoing ops EU2.93b vs est. EU2.69b, rev. EU34.2b vs est. EU33.5b; reaffirms 2015 targets
* Santander Quarterly Profit Rises on Growth Across Markets: 1Q net income rose to EU1.72b, beat EU1.69b avg. est.
* Orange First-Quarter Earnings Drop on Europe Competition: 1Q sales EU9.67b vs est. EU9.6b., Ebitda EU2.92b vs est. EU2.93b
* UPM-Kymmene Declines as Adjusted 1Q Report Below Estimates

EUROPEAN ECO DATA:
* U.K. First Estimate 1Q GDP Rises 0.3% Q/Q; Med. Est. 0.5% Q/Q
* Sweden March Retail Sales Rise 0.7% on Month Vs Est. +0.2%

WHAT HAPPENED IN ASIAN MARKETS:
* Asian shares outside Japan fell, with a gauge of regional equities retreating from a seven-year high, as energy shares led losses and companies slid on earnings concerns.
* QUOTE: “Valuations have a run a little bit ahead of earnings,” Angus Gluskie, managing director at White Funds Management in Sydney, where he oversees about $550 million, said by phone. “We need to see a period when earnings catch up and progressively make the valuations look more favorable. We’re sitting on the fence and it seems the Fed is finely balanced.”
* 7 out of 10 sectors rise with industrials, consumer outperforming and energy, tech underperforming
* INSIDE ASIA: Won Gains; Thai Exports Slide More Than Forecast

ASIA DATA:
* MSCI Asia Pacific up less than 0.1% to 157
* Nikkei 225 up 0.4% to 20059
* Hang Seng up less than 0.1% to 28443
* Shanghai Composite down 1.1% to 4476
* S&P/ASX 200 down 0.6% to 5949

ASIAN TOP NEWS:
* China Life 1Q Net 12.3b Yuan Vs 7.2b Yuan Year Ago: 1Q total revenue rose 24.9% y/y to 192.6b yuan, according to a statement to Shanghai stock exchange.
* Sydney Home Prices Surging at 5 Times Wages Fuel Bubble Woes: Home prices in Australia’s biggest city surged more than five times faster than wages in each of past two yrs
* Japan Retail Sales Slump Flashes Warning Signal for Kuroda: March sales dropped 9.7% y/y, most since 1998
* Daiwa Profit Climbs 16% on Brokerage Commissions, Trading:
4Q profit 38.5b Yen, beating 35.4b yen est.
* Nomura Said to Miss Goal of Posting Profit Abroad Last Year: Missed its goal of returning to profit outside Japan last fiscal year, people with knowledge of the matter said
* Galaxy Securities $3.1 Billion Sale to Fuel China Margin Trading: co. plans to use about 60% of proceeds of the sale for its margin finance
* Sinopec No.2 Caught in Graft Probe as China Crackdown Widens: China identified 26 state-owned enterprises as targets for graft inspections this yr, after similar probes in 2014
* Loeb Shows How to Get at Japan Inc. $1.9 Trillion Cash Pile: Corporate cash and deposits increased 4.3% y/y, activist Loeb proving determination can pay off as Fanuc to double its dividend payout
* Toyota Plans $4.2 Billion Share Sale to Develop Fuel-Cell Cars: co. to sell as many as 50 million “Type AA” shrs and
repurchase common stock to mitigate dilution
* Apple IPhones Sales in China Outsell the U.S. for First Time: New Year gift-giving holiday buoys larger-screened smartphones in Asia

ASIAN ECO DATA:
* Japan Mar. Retail Trade -9.7% y/y vs est. -7.5%; prior -1.8%
* Japan Mar. Sales -1.9% m/m vs est. 0.6%; prior 0.7%
* Hong Kong March Exports Fall 1.8% Y/y; Est. +2.1%
* Philippines’ Feb. Imports Rise 11.2% Y/y; Est. -3.1%
* Thailand’s March Exports Fall 4.45% Y/Y; Median Est. -3.5%