Apple to launch euro-denominated Green Bonds

The US tech company Apple (AAPL) launched last week two euro-denominated Green Bonds with maturities of 6 and 12 years. According to the company the aim of the new Green Bonds is to foster energy efficiency in the company supply chain and products and cut carbon emissions. Total amount is 2 billion euros.

The company has three environmental priorities in its framework which the bonds are targeted also:

  1. Climate change: Mitigate the company impact on climate change by reducing the comprehensive carbon footprint.
  2. Smarter Chemistry: Pioneer the use of greener materials in the company products and processes.
  3. Resources: Conserve Earth’s resources by transitioning to recycled and renewable materials in the products, and by minimizing water and waste in the company operations and throughout the product lifecycle.

Apple said also that it intends to list the bonds in the Nasdaq Bond Exchange.

The Green Bonds markets have been growing steadily this year and it is expected that the overall issuance will reach over 200 billion dollars this year.

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Berkshire Hathaway´s profit 16,5 billion dollars in Q3

The US holding company Berkshire Hathaway (BRK) announced its third quarter earnings release on Saturday. According to the release, the net earnings increased to 52,3 billion dollars from 29,4 billion dollars a year ago during the nine month period. During the quarter, the net earnings were 16,5 billion dollars compared to 18,5 billion dollars during the same period a year ago.

The Common Stock A earnings were 31,9 dollars compared to 17,9 dollars for the nine month period. The company said it invested for example in Occidental Petroleum Corporation 10 billion dollars in April and increased also investments in Pilot Flying.

Berkshire Hathaway is operating in the railroads and the Burlington Northern Santa Fe is one of the largest railroad systems in the US and Canadian provinces. Operating earnings from railroads increased to 2644 million dollars during the quarter compared to 2484 million dollars a year ago.

The big investment in Kraft (KHC) was also showing a good track after the reporting delays in the company. Kraft, with its food and beverage products, is valued 9,1 billion dollars in Berkshire´s portfolio. The company owns 26,6 % of the Kraft Heinz company.

Berkshire Hathaway´s biggest direct investments in the US companies include American Express with 17,9 billion dollars, Apple (AAPL) with 57 billion dollars, Bank of America (BAC) with 27,8 billion dollars, Coca-Cola with 21,8 billion dollars and Wells Fargo with 20,2 billion dollars. The investments represents 66 % of the 220 billion dollars fair value in the portfolio.

The fixed income securities in the portfolio included for example 3,8 billion dollars worth of US Treasury securities, 8 billion dollars of foreign governments securities, corporate bonds worth of 6,1 billion dollars and corporate bonds with non-investment grade of 462 million dollars.

According to the release information, U.S. government securities are rated AA+ or Aaa by the major rating agencies.

-Approximately 87% of all state, municipal and political subdivisions, foreign government securities and mortgage-backed securities were rated AA or higher. Non-investment grade securities represent securities rated below BBB- or Baa3. Foreign government securities include obligations issued or unconditionally guaranteed by national or provincial government entities, the company said.

During the nine month period the cash pile has grown in the company and now represents 75 billion dollars compared to 42 billion dollars a year ago.

The market cap of Berkshire Hathaway (BRK) company is 528 billion dollars.

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Apple revenue 64 billion dollars – EPS 3,03 dollars Q4 2019 (updated)

The US tech company Apple (AAPL) published its fourth quarter earnings release today. According to the info, the company revenue increased 2 % to 64 billion dollars and earnings per share to 3,03 dollars (+4 %) compared a year ago.

-We concluded a groundbreaking fiscal 2019 with our highest Q4 revenue ever, fueled by accelerating growth from Services, Wearables and iPad,” said Tim Cook, Apple’s CEO.
-With customers and reviewers raving about the new generation of iPhones, today’s debut of new, noise-cancelling AirPods Pro, the hotly-anticipated arrival of Apple TV+ just two days away, and our best lineup of products and services ever, we’re very optimistic about what the holiday quarter has in store, he continued.
The service segment showed all time high revenue of 12,5 billion dollars and the international sales were about 60 % of groups total sales.
Apple said its iPhones sales were 33,3 billion dollars during the fourth quarter compared to 36,7 billion dollars in the previous year. 12 months iPhone sales were 142 billion dollars.
The sales of iPads were 4656 million dollars and annually 21,2 billion dollars. The sales of wearables like Apple Watch, were 6520 million dollars and annually 24,5 billion dollars. Services sector also increased to 12,5 billion dollars in the fourth quarter and the 12 month sales were 46,2 billion dollars.
Apple spent 4100 million dollars in R &D during the quarter and totally 16,2 billion dollars in a year.
The operating income for the quarter was 15,6 billion dollars and for the whole year 63,9 billion dollars. Net income was 13,6 billion dollars.
Apple is estimating that during the first quarter of fiscal 2020, the revenue could be between 85,5 – 89,5 billion dollars and gross margin between 37,5 – 38,5 %.
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Apple to launch new AirPods with iQ

Apple_AirPods-Pro_New-Design_102819Apple (AAPL) has today launched new AirPods. According to company, the new AirPods Pro include for example “active noice cancellation” in order to focus better. The products are for sale on Wednesday.
– AirPods are the best-selling headphones in the world. The one-tap setup experience, incredible sound and iconic design have made them a beloved Apple product, the company says in the press release.
The new AirPods Pro have for example these features:
Voice-activated Siri uses the chip to enable hands-free “Hey Siri” to play a song, increase the volume, make a call or get directions. 

Audio Sharing makes it easy to listen to the same song or watch the same movie with a friend by simply bringing a second pair of AirPods close to iPhone or iPad.

– Announce Messages automatically speaks incoming messages as soon as they arrive, and when on a phone call or sharing media via Audio Sharing, Siri knows not to interrupt.

Apple´s shares were up in New York (+ 0,71 %) trading at 248,34 dollars in Nasdaq. The overall Nasdaq-index was showing 1,01 % gain to 8326 points.

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Apple to integrate a new phone and content – Apple TV+

The US ecosystem provider Apple (APPL) has today announced the new iPhone 11 and news related to Apple TV service. The company is integrating the iPhone and tv content so that all new iPhone buyers get one year free tv stream from Apple.

– Customers who purchase any new iPhone, iPad, Apple TV, Mac or iPod touch starting September 10 can enjoy one year of Apple TV+ for free. Beginning November 1, customers can initiate the one-year free offer in the Apple TV app on the device running the latest software, the company said in the press release.Apple-tv-plus-launches-november-1-the-morning-show-screens-091019According to the iPhone launch the new iPhone 11 will cost 699 dollars and the Pro-model starting 999 dollars and iPhone 11 Pro Max 1099 dollars. The new models should be available from September 20th.

The Apple TV service will cost 4,99 dollars per month.

In Wall Street, the Apple news were taken positively and the company shares were trading up 0,11 %, while for example the other streaming service providers were down: Disney (DIS) shares were trading down  -2,71 % as well as Netflix (NFLX)  -3,52 %.

The general Dow Jones index was trading slightly down -0,14% and technology Nasdaq-index  -0,50%.

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US companies to issue bonds fuelled by low yields

Many big US companies are now using the benefit of record-low yields and increasing demand for corporate bonds. According to Wall Street Journal there were 21 companies with investment-grade credit ratings to raise 27 billion dollars only on Tuesday and about the same amount of companies are in the pipeline for the rest of the week.

Investors are eager to invest in big, well-know brands like Apple which yields better than the negative government bonds. The 10-year Treasury bond yield is now 1,46 % when it was trading around 2 % in July. In the euro-area, the 10-year bond is trading at -0,59 %, while it was -0,52 % a month ago.

The US airline company United Airlines (UAL)  sold 1,2 billion dollars of secured bonds to finance the purchase of new aircraft. Apple (AAPL) Walt Disney and Deere (DE) all issued 30-year bonds with yields below 3%. For example the Walt Disney bond yield was 2,83% according to WSJ information from MarketAxess.

The companies can use the new debt to refinance the existing debt with lower yielding bonds and they can also extend the maturity of the debt.

The US central bank, the Federal Reserve might also make a new rate cut during this month. According to CME market estimates, the Fed is expected to lower the interest rates on a quarter-percentage-point  at September policy meeting on the 17-18th.








Business Finance

Tech stocks up in Wall Street – RealReal +12 %

The tech stocks soared up in Tuesday trading in New York. Apple´s (AAPL) stock closed up 4,23 % to 208,97 dollars due to the tariffs delays in the US China trade negotiations. Also retail gained and for example Amazon (AMZN) closed up 2,21 % to 1824 dollars. The tariffs delay is expected to help the Christmas shopping as well.

The re-used luxury online shop RealReal gained over 12 % in trading. The company published its second quarterly figures ending June 30th. According to the press release the total revenue gained 51 % to 71 million dollars from a year earlier and the average order value was 452 dollars. The net loss was 26,8 million dollars compared to the loss of 17,6 million dollars a year ago. The company had the IPO in the beginning of July.

Tesla (TSLA) was also up, 2,62 % to 235 dollars and Ralph Lauren (RL) also up 1,61 % to 93,41 dollars. The retail company Macy´s was also up, 0,41 % to 19,36 dollars. The company is to publish its figures on Wednesday.

Dow Jones- index closed up 1,44 % to 26 279 points, the large S&P 500 -index closed up 1,48 % to 2926 points and tech-index Nasdaq closed 1,95 % to 8016 points. Semiconductor sector index closed up 2,95 % to 1489 points.

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