APPLE (US Core Holdings) has posted record sales (up 54% YoY), boosted by its iPhone 12 models (5G). However, the group warned that chip shortages will affect iPad and iMac production. On the regulatory front, the EU has launched an investigation into alleged anti-competitive practices in relation to Apple’s App Store and streaming music service.
EURONEXT (Satellites) will tomorrow launch a capital increase (running until 10 May) to finance its acquisition of Borsa Italiana. We are in favour of this diversifying transaction and recommend subscribing. The group has also released very robust preliminary Q1 results only slightly shy of its excellent Q1 2020 performance.
FACEBOOK, GOOGLE et la AMAZON (US Core Holdings) all reported excellent results last week, posting year-on-year top-line growth of 46%, 34% and 44% respectively. Online advertising has recovered very strongly and the transition to online formats will continue to gather pace over 2021-2022. Google heavily dominates the online space, with an end Q1 market share of 57%, followed by Facebook and then Amazon.
KPN (Satellites) has rejected two takeover bids (from EQT/Stonepeak and KKR) amid market speculation over an offer at more than €3 per share. The EQT/Stonepeak bid was rejected with no mention of price; the consortium valued the deal at €18bn (compared with KPN’s market cap of €12bn).
After a flood of mostly positive results last week, indices posted year-to-date highs before correcting slightly on Friday. A good number of quarterly results are still expected over the next few days. Meanwhile, on the macro front, we expect trade balance, durable goods orders, PMIs and job numbers in the US. We remain confident.
USD has firmed up, helped by positive US indicators and profit-taking on GBP and EUR: EUR/USD 1.2035; USD/CHF 0.9125; GBP/USD 1.3825. For this trend to last, EUR/USD must break through support at 1.1980. CHF is temporarily benefiting from geopolitical tensions (China, Russia): EUR/CHF 1.0980. Forex dealers will be keeping a close eye on the BoE this Thursday. Gold is stable at $1,779/oz. USD/CHF: supp. 0.9000, res. 0.9225; EUR/CHF: supp. 1.0915, res. 1.1160; GBP/USD: supp. 1.3740, res. 1.40; EUR/USD: supp. 1.1900, res. 1.2207.
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