Brexit: May: final voteday by 12th March (updated)

The UK Prime Minister Theresa May has delayed the meaningful Brexit-vote. She has promised to put her final Brexit deal to a vote in the Parliament by March 12th.

She said on the journey to Sharm el-Sheikh for a summit between EU and Arab league leaders that her team will be travelling to Belgium next Tuesday to continue the Backstop-talks.

-As a result of that, we won’t bring a meaningful vote to Parliament this week, but we will ensure that that happens by 12 March, she said.

The situation has changed also in the EU side, while some of the officials think that the Brexit could be postponed until 2021, according to Guardian.The idea behind this thinking is that if the PM cannot get the Brexit-deal through Parliament and wants to delay to departure, the EU could consider that UK would stay in the block until 2021.

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Samsung and Folding mobile – price 1980 dollars

Samsung Electronics (005930) announced today the first folding mobile ever.  This new type of mobile phone is targeted to the very heavy users and pros, who can now have all the digital content at the same time via the large screen. This is like opening the book of AR (augmented reality) content.

According to Samsung, “Galaxy Fold was designed with smartphone users in mind – driven by bigger and better form factors that boost their experiences. Galaxy Fold changes to the screen you need, the moment you need it. Slip it out of your pocket for one-handed calls, texts, and more and open for endless multitasking and higher quality viewing on our largest mobile display for presentations, digital magazines, movies, and AR content.”

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The new mobile phone is priced at 1980 dollars and should be ready for shipping in April. The Galaxy Fold has a 4.6 inch display when folded and a 7.3 inch screen when unfolded.

According to Samsung they worked closely with Facebook, Google and Microsoft in order to make the apps working smoothly in every situation over and over again. The phone has 12 gigabytes of memory and 512 gigabytes of storage and it has Android operating system (9.0)

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Tesla: Q4 operating income stable – positive cash flow beyond Q1 2019

According to the Tesla (TSLA) CEO Elon Musk last year was the most pivotal year in Tesla’s history. Mr Musk commented the year in the shareholder letter conserning 2018 and Q4 figures.

– During our Model 3 production ramp, we went through significant challenges with the battery module line at Gigafactory 1 in Nevada, and later with our general
assembly line in Fremont. Thanks to the hard work and ingenuity of our
manufacturing teams, by mid-2018 we successfully overcame these
challenges and stabilized Model 3 production at high volumes, he said on Wednesday.

Tesla´s  Q4 figures:

– Q4 operating income stable compared to Q3 at $414M, operating margin of 5.7%
– Operating cash flow less capex improved from Q3 to $910M in Q4
– Cash and cash equivalents of $3.7B at Q4-end, increased by $718M in Q4
– Q4 GAAP net income of $139M impacted by $54M non-cash charge
– Model 3 GAAP and non-GAAP gross margin remained stable at >20% in Q4

Elon made his estimates of the Model 3 production this year and commented the production shift.

– Model 3’s production rate progressively improved through Q4, with December 2018 being our highest volume month ever. In our Fremont facility, we are now past the steep portion of the production S-curve, and we expect our production rate to continue to
gradually improve. Every part of the Model 3 production process has demonstrated over a 24-hour period the ability to produce at an extrapolated rate of 7,000 vehicles per week. By the end of this year, we expect to be able to produce Model 3 at this rate on a
sustained basis, he stated.

– In Q4, we delivered 27,607 Model S and Model X vehicles to customers. For the full year, we delivered 99,475 Model S and Model X vehicles, which was in line with our guidance. We recently stopped taking orders for the 75 kWh versions of Model S and Model X and
will focus on the longer-range versions of these flagship products instead, with the recent introduction of a 310 mile range base Model S and 270 mile range base Model X, he reminded.

– In total, we are expecting to deliver 360,000 to 400,000 vehicles in 2019, representing a growth of approximately 45% to 65% compared to 2018. In this range, we are expecting to have positive GAAP net income and to generate positive free cash flow
(operating cash flow less capex) in every quarter beyond Q1 2019. We believe these results will be substantially driven by our restructuring action and the ongoing financial discipline with which we are managing the business, Elon said.

– Our 2019 capex, the vast majority of which will be to grow our capacity and develop new vehicles, is expected to be about $2.5 billion. We believe this amount should be sufficient to continue to develop our main projects, such as Gigafactory Shanghai, Model Y and Tesla Semi, as well as for the further expansion of our Supercharger, service and retail networks. We expect to arrange financing through local banks in China to fund most of the capex for Gigafactory Shanghai, he said.

Tesla published its figures after the Wall Street trading, but the company shares closed higher to 302 dollars, up 3,80 %.

 

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Apple: Revenue will be lower due to China (updated)

The US mobile phone manufacturer Apple (AAPL) has lowered its forecast for the fiscal-first quarter revenue outlook due to the China market. Apple says that it expects the revenue to be 84 billion dollars in the quarter. According to Bloomberg estimates, the revenue expectation was 91,3 billion dollars in average.

– While we anticipated some challenges in key emerging markets, we did not foresee the magnitude of the economic deceleration, particularly in Greater China. In fact, most of our revenue shortfall to our guidance, and over 100 percent of our year-over-year worldwide revenue decline, occurred in Greater China across iPhone, Mac and iPad, Apple´s CEO Tim Cook said in an investor letter on Wednesday.

According to Cook, the other figures “remain broadly in line with our earlier estimates”. He also pointed out, that the revenue stream outside of the iPhone grew almost 19 % year-on-year. For example Wearables grew almost 50 % on annual basis. Also the services generated over 10,8 billion dollars during the quarter and according to Cook the company is on track to achieve its goal of doubling the size of this business from 2016 to 2020.

In spite of the cutting forecast, Cook expects to set all-time revenue records in several developed countries, including the United States, Canada, Germany, Italy, Spain, the Netherlands and Korea. – And, while we saw challenges in some emerging markets, others set records, including Mexico, Poland, Malaysia and Vietnam, he added.

Apple´s stock fell in after-hours trading about 7 % to 147 dollars.  Apple is to publish its final first fiscal quarter, ended 29th December 2018,  on the 29th January 2019.

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Tesla´s year deliveries 245.240 electric cars in 2018

The US electric car manufacturer Tesla (TSLA) announced that it has delivered totally 245.240 electric cars during last year. According to the company info, Tesla produced almost as many cars in 2018 as they did in all years together. The company published  its fourth quater production info on Wednesday.

– In Q4, we produced and delivered at the rate of nearly 1,000 vehicles per day, setting new company records for both production and deliveries.
Production in Q4 grew to 86,555 vehicles, 8% more than our prior all-time high in Q3. This included 61,394 Model 3 vehicles (in line with our guidance and 15% more than Q3) and 25,161 Model S and X vehicles, consistent with our long-term run rate of approximately 100,000 per year, the company said.

Tesla delivered the new Model 3 only in the North America, while the international deliveries in Europe and in China are expected to start in February this year.

-Our inventory levels remain the smallest in the automotive industry, and we were able to reduce vehicles in transit to customers by significantly improving our logistics system in North America, Tesla continued.

Tesla also announced that it will cut the car prises by 2000 dollars in the US markets.

– Moving beyond the success of Q4, we are taking steps to partially absorb the reduction of the federal EV tax credit (which, as of January 1st, dropped from $7,500 to $3,750). Starting today, we are reducing the price of Model S, Model X and Model 3 vehicles in
the U.S. by $2,000. Customers can apply to receive the $3,750 federal tax credit for new deliveries starting on January 1, 2019, and may also be eligible for several state and local electric vehicle and utility incentives, which range up to $4,000, the company wrote.

– Tesla’s achievements in 2018 likely represent the biggest single-year growth in the history of the automotive industry. We started the year with a delivery run rate of about 120,000 vehicles per year and ended it at more than 350,000 vehicles per year – an increase of almost 3X. As a result, we’re starting to make a tangible impact on accelerating the world to sustainable energy.

– Additionally, 2018 was the first time in decades that an American car – the Model 3 – was the best-selling premium vehicle in the U.S. for the full year, with
U.S. sales of Model 3 roughly double those of the runner up, the company said.

Tesla´s shares fell sharply during the first trading hours after the announcement, but gained slightly during the day and ended down 6,81 % to 308,88 dollars in Wall Street. The profit and sales figures for the last quarter of 2018 will be published later on, the day is not confirmed yet.

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US Markets down again – Treasury call

The US financial markets were surprised by the information that the Treasury Secretary Steven Mnuchin had called the country´s largest banks.  The question was about the market liquidity. According to the Treasury, the banks have confirmed that they have liquidity available for lending to consumers, business markets and other market operations.

The Treasury also confirmed that they will have a call on Monday, the Christmas Eve,  with the President´s Working Group on financial markets. The reason for this call is the large market volatility.

According to Bloomberg and Reuters business wires, the markets are really surprised and the big questions is, whether there is systemic risk or not.

The financial markets in the US have had several days downside trend and for example the stock markets have fallen over 10 % in December and are now at the lowest level since May 2017. Another issue on the agenda, is the Federal Reserve and its interest rates policy, also the question of the position of the Federal Reserve´s Chairman Jerome Powell.

The US Goverment shutdowns, which have been going on for three days now, are expected to continue, while no news are in sight.

Today, the financial markets are open only for a shorter time and for example Nasdaq will be closing at 1 EST and NYSE will be closing at 4 EST. On Christmas Day, the 25th December, the markets will be closed.

Today, the markets have continued their fall and for example the Dow Jones has fallen 1,97 %  to 22 003 points, S&P 500 -index  1,67 % to 2376 points and Nasdaq  1,16 % to 6259 points.  For example the markets in the Nordic countries and German are closed.

 

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