FT markets round-up: "Global equity markets started the second quarter on a cautious note, as weak manufacturing data in the US and China offset demand for growth assets. Wall Street is heading lower, following earlier losses in Asia, after an unexpected slowing in US manufacturing growth. But the housing market showed further strengthening as US construction spending rose in February, buoyed by the highest level of homebuilding in more than four years." (Financial Times)
Apple's chief executive has apologised to Chinese customers over its after-sales services. Tim Cook blamed a "lack of external communication" and promised the company would revamp its warranty and repair policies in a message on Apple's Chinese homepage (Financial Times). Apple has come under attack from state-run media in recent weeks over alleged "arrogance" and discrimination in its customer-service policies (Wall Street Journal).
Factory activity fell off at the end of the first quarter, according to ISM data. The ISM's activity index dropped to 51.3 in March from 54.2 in February, although Markit's manufacturing PMI indicated that growth continued, rising to 54.6 last month from 54.3 the month before (Reuters).
Tesla Motors said it was on the verge of its first-ever quarterly profit. First-quarter deliveries of its new Model S sedan beat forecasts of 4,500 to hit 4,750, leading it into profit, the 10 year-old electric car company said. Analysts had been expecting a loss of 7 cents a share. Tesla's stock jumped more than 22 per cent after the announcement (Wall Street Journal, Financial Times).
A US judge allowed the city of Stockton, California to remain in bankruptcy after finding that its creditors did not negotiate with it in good faith before its filing, the largest such petition by a US municipality. "You cannot negotiate with a stone wall," Judge Christopher Klein said (Bloomberg). Creditors including Assured Guarantee have argued that Stockton is not truly insolvent in a way that would give it access to bankruptcy. Stockton was also not required to negotiate with Calpers over reducing contributions to the fund, Klein said. "We are very pleased with Judge Klein's ruling," Calpers said (Calpers statement).
Taylor Morrison is planning the biggest IPO by a US homebuilder in two years. The company is aiming to raise $500m from selling stock priced at $20-$22 a share. A successful IPO would make it the eighth-largest homebuilder by market capitalisation (Financial Times).
FURTHER FURTHER READING
- Michael Dell's must-believes.
- The Fed and savers: "...too much sympathy for their plight is dangerous."
- This seems a funny time for the IMF to be talking about small states...
- Milton Friedman predicts the eurozone crisis.
- DeLong on Blanchard on five lessons from the financial crisis.
