The Dawn Patrol – Some earnings… Apple event preview. JPM says buy the dip.



Markets indicated up this morning despite a lower Asia and poor tech numbers last night, but these are very early indications. Gold -0.23% at $1724.32 and EUR USD at 1.3057. Today, we’ll watch at another batch of numbers and probably some downwards forecasts for Q4: ARM, KPN, STM (I still don’t like it despite the good news). On the macro front: French and Eurozone Business confidence indicators, US Richmond Fed Manufacturing Index and on the sovereign side, Spain to sell bills.

More importantly, as it may save the world, Apple should announce a new iPad mini (or Air). In terms of specs, it should come with a smaller and lower resolution screen. If it’s much lighter and has a matt screen or easy to read in the sun screen, then it will become the Kindle killer. Pricing also is important, rumours say between $250 and $350. The same sources talk about a carbon back. I think if it comes with such features, it will be very positive news and will boost Apple Sales. Apple may also announce a new iMac and MacBook Retina 13″.


too many results for me…

ALFA LAVAL, numbers look poor and sales come in below estimates.
ARM should open up as sales beat expectations (£144.6m vs £139.4m) and sees Q4 sales in line.
FAURECIA warns on its profits and expects an EBITDA of €500m vs €560-610m before. (watch Peugeot).
GECINA Confirms Full-Year Outlook; 9-Mo Recurrent Net Up 2.3%
numbers were in line yesterday night, the stock should be up this morning (Exane ups its PT by 7%) as the company benefitted from raw materials despite slightly lower volumes (volumes: -3.5% ).
SCHINDLER 9m Net CHF522m, Maintains Outlook ; Schindler 3Q Ebit Chf259m; Analyst Estimate Chf268.2m ; Schindler 3Q Ebit Misses Estimates; Orders Increase
SWEDBANK numbers look good too and Net of 3.53bn vs 3.3bn expected.
SYNGENTA sales look light.
TIETO to open up as well as Q3 is strong, margins strong and sees better EBIT margin looking forward.


YHOO – Yahoo up 3.8% after the close with Q3 sales/EPS of $1.09bn/35c vs estimates of $1.08bn/26c. Also, the new CEO, Marissa Meyer hinted the company may be looking at share buybacks.
TXN – TI shares slightly lower after a strong session. Q3 Sales/EPS of $3.39bn/45c vs estimates of $3.3bn/40c – NOT SURE ABOUT THE EPS here…
WDC – Western Digital first up and then down 6% on Q1 Sales/EPS of $4bn/$2.36 vs $3.98bn/$2.29. But Q2 forecasts were below expectations with sales/EPS of $3.55-3.7bn/$1.65-1.85 and estimates were for $4.09bn and $2.40…

The PC industry continues to suffer. Estimates for wordlwide sales are for a decline in terms of volumes for the first time since… ever I think.


On the Obama/Romney debate
From what I read, there is no clear winner last night. Both were good. The talk centered on the middle East and foreign policy as well as the US economy.

FT on the closely fought third Romney/Obama debate

Other Stuff
It’s a shame that London is not in France, our government would have saved them: Cab maker Manganese Bronze to appoint administrators, funding talks fail

On Q3 Earnings
As I posted yesterday, it ain’t really good and the Q4 forecasts take a hit with 18 of 20 companies (as of Sunday evening) lowered their Q4 quidance. (please see the attached file for more details).

bbg Q3 earnings.xls


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