FT : China oil groups rebuff merger rumours


China National Petroleum Corp and Sinopec, China’s top two state-owned oil companies, have denied they are considering merging to form a giant monopoly after rumours prompted both companies’ Hong Kong-listed shares to jump on Monday.
PetroChina, CNPC’s listed arm, said on Tuesday it had not received “any information, written or verbal, from any government authority” regarding a merger. Sinopec issued a similar denial to the Hong Kong exchange.

The idea of an oil merger first surfaced in February, after China’s two state-owned rail companies agreed to combine to better compete in international tenders.
The country’s two top nuclear groups have also been ordered to co-ordinate internationally but are resisting the idea of a domestic merger.
Unlike rail companies, which must compete internationally as China’s domestic rail buildout slows, the oil companies’ main business is in the Chinese market. Critics say a merged oil group would be a more bloated and less efficient version of the current duopoly.
Both companies were created in the 1990s from the division of the former Ministry of Petroleum Industry, a powerful body that played a substantial role not only in Chinese energy and industrial policy but also in political factions.
They are under siege from a nearly two-year anti-corruption campaign that is rooting out the political support base of former energy and security tsar Zhou Yongkang, whose early career was spent in the oil towns at the heart of CNPC and Sinopec.
Mr Zhou was formally charged with “bribery, abuse of power and intentional disclosure of state secrets”.
On Monday Chinese anti-corruption investigators detained Wang Tianpu, Sinopec’s second-in-command. Chinese financial magazine Caixin reported that Mr Wang had fronted for the business interests of Mr Zhou’s son, Zhou Bin, who is also in detention.
Mr Wang was also among those reprimanded for the explosion of crude leaking from an oil pipeline that killed 62 people in the coastal city of Qingdao in 2013.
Mr Wang had survived previous corruption purges at Sinopec, including the 2007 scandal that claimed the then-head of Sinopec and the then-mayor of Qingdao amid allegations of improper land deals by the two mens’ shared mistress.
Sinopec remains under the control of Fu Chengyu, a rising star who previously headed smaller rival, Cnooc.

(ZeroHedge) Who Is Really Choosing America's Next President?

Who Is Really Choosing America's Next President?

Rapid Rise in Super PACs Dominated by Single Donors
Super PACS that get nearly all of their money from one donor quadrupled their share of overall fund-raising in 2014.

The wealthiest Americans can fly on their own jets, live in gated compounds and watch movies in their own theaters.
More of them also are walling off their political contributions from other big and small players.
A growing number of political committees known as super PACs have become instruments of single donors, according to a ProPublica analysis of federal records. During the 2014 election cycle, $113 million – 16 percent of money raised by all super PACs – went to committees dominated by one donor. That was quadruple their 2012 share.
The rise of single-donor groups is a new example of how changes in campaign finance law are giving outsized influence to a handful of funders.
The trend may continue into 2016. Last week, National Review reported that Texas Senator Ted Cruz’s bid for the Republican presidential nomination would be boosted not by one anointed super PAC but four, each controlled by a single donor or donor family.
The Supreme Court’s 2010 Citizens United ruling helped usher in the era of super PACs. Unlike traditional political action committees, the independent groups can accept donations of any dollar size as long as they don’t coordinate with the campaign of any candidate. Previously, much of the focus in big-money fundraising was on “bundlers” -- volunteers who tap friends and associates for maximum individual contributions of $5,400 to a candidate, then deliver big lump sums directly to the campaigns. Former president George W. Bush awarded his most prolific bundlers special titles such as “Ranger” and “Pioneer.”
While bundling intensified the impact of wealthy donors on campaigns, the dollar limits and the need to join with others diluted the influence of any one person. With a super PAC, a donor can single-handedly push a narrower agenda. Last year, National Journal profiled one such donor – a California vineyard owner who helped start the trend by launching his own super PAC and becoming a power player in a Senate race across the country.
Beyond the single-donor groups, big donations are dominant across all kinds of super PACs, according to the analysis. Six-figure contributions from individuals or organizations accounted for almost 50 percent of all super PAC money raised during the last two cycles.
“We are anointing an aristocracy that’s getting a stronger and stronger grip on democracy,” said Miles Rapoport, president of Common Cause, an advocacy group that seeks to reduce the influence of money on politics.
ProPublica’s analysis identified 59 super PACs that received at least 80 percent of their funding from one individual during the 2014 cycle. They raised a total of $113 million, compared with the $33 million raised by the 34 such groups that existed in 2012.
Donors who launch their own PACs are seeking more control over how their money is spent. And many have complained about the commissions that fundraising consultants take off the top of their donations to outside groups. But the move carries risks if the patron is new to the arena.

In one cautionary tale, a reclusive 89-year-old Texas oilman with no political experience launched Vote2ReduceDebt, one of the nation’s highest-spending conservative super PACs. A ProPublica investigation found that much of the donor’s millions went to entities run by the group’s consultants or their close associates. The super PAC imploded as principals traded allegations including self-dealing, faked campaign events and a plot to siphon the PAC’s money to a reality TV show.
Bill Burton, a former Obama administration official who helped found Priorities USA, the juggernaut super PAC affiliated with the president’s reelection campaign, said he expects donors to face more problems if they continue to go it alone.
“One of two things is going to happen,” he said. “We will either see widespread flaunting of coordination rules or we will see some pretty spectacular failures to the tune of millions of dollars.”
The single-donor super PACs identified by ProPublica span the political spectrum. Among the top conservative donors were Richard Uihlein, a packaging supplies businessman, and casino magnate Sheldon Adelson. Former New York City mayor Michael Bloomberg spent heavily on both sides but leaned Democrat. Hedge fund titan Tom Steyer dominated on the left.
In 2012 the largest single-donor super PAC was former TD Ameritrade CEO Joe Ricketts’ Ending Spending Action Fund, which raised over $14 million, 89 percent of which came from Ricketts. It was the ninth-largest super PAC by spending. In 2014 Steyer’s Nextgen Climate Action was the largest super PAC, raising almost $78 million, 85 percent from Steyer. (Steyer’s wife, Kat Taylor, is a member of ProPublica’s board of directors, and the couple has donated to ProPublica.)
In addition to the super PACs dominated by a single individual, dozens more received the great majority of their funding from one corporation, labor group or advocacy organization. In 2014, those PACs represented 8.6 percent of super-PAC fundraising.
PACs dominated by one donor could run afoul of disclosure laws, according to Larry Noble, the former top lawyer for the Federal Election Commission. Under the rules, political ads must include disclosures about who funded them. Noble said election law would require groups funded by one person to list that donor’s name, not just the name of the PAC – though he couldn’t recall the FEC addressing such a case.
Naming the super PAC instead of the donor in the ad, Noble said, also allows the groups to delay disclosing where their money comes from until the next FEC filing date – potentially weeks after the ad runs.
“It defeats the purpose of the law to allow someone to hide behind a super PAC if they are the only funder,” Noble said.
“They want to make it more authoritative, like there’s more support. It looks better to say the ad is from Americans for Good Government than from John Smith… That just makes a mockery of the law.”

>>> What to look at today - 28th of April 2015

Dow-0,23% S&P-0,45% Nasdaq-0,63% Russell-1,23% VIX @ 13.12 (+6.75%)
US Market Closed lower, even with China moving higher and European more optimitic on greece issue. Biotech (IBB) lost 4.2% and contributed to teh under-performance of the Nasdaq. AAPL +1.8% ahead of numbers, AMAT -8.4% on termination of Tokyo Electon merger due to regulatory concerns (TOELY -18.5%)...Volume were ahead of average @ 780mil shares...US After Hours RTEC +12.5%, RCII +8.2%, AAPL +1.4%, TCS -24.9%, IPHS -9.9%, CUDA -4.4% following earnings/guidance...UNXL -38.3% o n termaination of contradct with Eastman Kodak...China markets are notably more subdued after yesterday's oversized rally driven by speculation of more aggresssive easing by the PBoC along with reports the govt will look to reduce the number of SOEs from 112 to as low as 40 through large scale mergers. Today's report from State-owned Assets Supervision and Administration Commission (SASAC) would not confirm those rumors. Also of note in China, the Mof reportedly urged regulators to speed up local govt bond sales, and PBoC Gov Zhou noted deposit insurance premium would be 0.01-0.02%. Separately, PBoC Dep Gov Yi Gang added PBoC operations can provide ample liquidity, and there is still large room to cut the relatively high RRR rate.In Japan, Econ Min Amari said the govt will announce a fiscal discipline plan that will renew public trust in Japan's finances. Remarks follow yesterday's cut of Japan's sovereign rating at Fitch to A from A+. In corporates, Canon traded lower after disappointing earnings and lower camera sales guidance. Honda and Panasonic are on tap for release after market close today.

Nikkei +0.36% Hang Seng -0.18% Shanghai -0.59%

Eur$ 1.0885 RUB $51.7442 EURCHF 1.0385 CHF0.9541 GBP 1.5241 WTI 56.23 (-1.23%)

S&P -0.08% EuroStoxx -0.41% Dax -0.33% SMI -0.39%

Macro :
- Greece Needs Additional EU400m to Pay Pensions: Kathimerini


Keep an eye on :
- AKA NO : Akastor 1Q Ebitda Falls to NOK177m as Opg Revenues Decline
- AIXA GY : Aixtron 1Q Sales Miss Ests., Net Loss Narrower Than Expected
- SAN SM : Banco Santander 1Q Net EU1.72B Compares With EU1.69B Estimate
- BNR GY : Brenntag Has Financial Leeway for Acquisitions: Boersen Zeitung
- CRG IM : Carige Receives Two Binding Offers for Cesare Ponti, MF Reports
- CBK GY : Commerzbank to Raise as Much as EU1.4b in Share Sale, Commerzbank Capital Increase Unrelated to Postbank Sale: Reuters
- DAI GY : Daimler 1Q Profit Beats Est; FY Forecast Confirmed
- DBK GY : Deutsche Bank Requests From Postbank Squeeze Out Shareholders
- DBK GY : Deutsche Bank Said to Have Planned to Shed Retail Unit: Reuters http://reut.rs/1JwTWaq
- GIL GY : DMG Mori Seiki 1Q Sales Rise 6.6%; Confirms 2015 Outlook
- DRI GY : United Internet Says Acquires 9.1% Stake in Drillisch, increased stake to 20.7% not planning increase to 30% or mandatory offer.
- FIE GY : Fielmann 1Q Sales, Pretax In Line With Ests.
- GSZ FP : Engie CEO Sees 2015 Dividend at Miniumin EU1 in All Scenarios
- GEBN VX : Geberit Says 1Q LFL Sales +2%, 2015 Forecasts Largely Unchanged
- KER FP : Kering Says Boucheron CEO Pierre Bouissou to Leave Jeweler
- LONN VX : Lonza Says Yr Started With Good Momentum; Gives 2018 Targets
- NEX FP : Nexans 1Q Organic Growth Up 1.8%; Sales Hurt by Brazil
- ORA FP : Orange 1Q Sales, Ebitda Match Ests.; Keeps Outlook Unchanged
- UG FP : Peugeot to Extend Diesel Partnership With Ford: Les Echos
- PHIA NA : Philips 1Q Adj. Ebita EU327m vs EU304m, 1Q Healthcare Ebita Drops on Expenses, Charges, FX
- SCHP VX : Schindler 1Q Net CHF168m vs CHF160m; Predicts Lower FX Impact
- SCYR SM : Sacyr Close to Concluding Repsol Debt Refinancing: Expansion
- SFL IM : Safilo 1Q Rev., Ebitda In Line With Ests.
- SIK GY : Sika Sees Disclosure Duty Breach by Burkard Heirs, Saint-Gobain
- LOCAL FP : Solocal 1Q Rev. Falls 3% to EU209m; Ebitda Declines 26%
- SWEDA SS : Swedbank 1Q Net Beats; Credit Losses Lower Than Est.
- SYNN VX : Syngenta Wins U.S. EPA Approval for Acuron Herbicide for Corn
- TIT IM : Telecom Italia Media Savings Shareholders Oppose Merger
- TIE1V FH : Tieto 1Q Sales, Pretax Miss Ests.; Keeps Outlook Unchanged
- TNET BB : Telenet 1Q Adj. Ebitda Meets Est.; Churn Rises on Price Increase
- TNT NA : TNT 1Q Oper Loss EU11m vs Profit EU15m; Sees EU25m-EU30m Charge
- FP FP : Total 1Q Adj. Net Beats Est.; Div. Matches Forecast
- UMI BB : Umicore Sees 2015 Adj. Ebit Including Associates of EU310m-340m
- UNR1V FH : Uponor 1Q EPS, Net Income Miss Ests.; Reiterates 2015 Forecast
- WDI GY : Wirecard 1Q Ebitda Jumps 31% as Co. Confirms FY Forecast

>>> European Brokers Upgrades & Downgrades 28th of April 2015

>>> Up
*ADECCO RAISED TO BUY VS NEUTRAL AT GOLDMAN
*ATRESMEDIA RAISED TO BUY VS NEUTRAL AT CITI
*CAP GEMINI CUT TO NEUTRAL VS BUY AT UBS
*CORREIOS DE PORTUGAL RAISED TO NEUTRAL VS SELL AT GOLDMAN
*DMG MORI SEIKI RAISED TO HOLD VS UNDERWEIGHT AT HSBC
*MICHAEL PAGE RAISED TO BUY VS NEUTRAL AT GOLDMAN
*NESTLE RAISED TO BUY VS NEUTRAL AT CITI
*RANDSTAD RAISED TO CONVICTION BUY VS NEUTRAL AT GOLDMAN
*RUSHYDRO RAISED TO NEUTRAL VS UNDERWEIGHT AT JPMORGAN
*SAIPEM RAISED TO HOLD VS SELL AT SOCGEN
*TERNA RAISED TO BUY VS HOLD AT BERENBERG

>>> Down
*AEFFE CUT TO NEUTRAL VS OUTPERFORM AT MEDIOBANCA
*BPOST CUT TO SELL VS BUY AT GOLDMAN
*CATTOLICA ASSICURAZIONI CUT TO NEUTRAL FROM OUTPERFORM AT MEDIOBANCA
*ERICSSON CUT TO NEUTRAL VS BUY AT GOLDMAN
*GRIFOLS A SHARES CUT TO HOLD VS BUY AT BERENBERG
*IMCD CUT TO NEUTRAL VS BUY AT GOLDMAN

>>> PT Change


>>> Initiation
*CARPETRIGHT RATED NEW BUY AT CITI, PT 600P
*LUFTHANSA RATED NEW HOLD AT SOCGEN, PT EU13.5
*REVOLUTION BARS RATED NEW BUY AT NUMIS, PT 265P

>>> Call

>>> United Internet increases Drillisch stake to 20.7%; not currently planning i

United Internet increases Drillisch stake to 20.7%; not currently planning increase to 30% or mandatory offer

United Internet AG contractually secured -- via its subsidiary United Internet Ventures AG -- the purchase of an approximately 9.1% equity stake in Drillisch AG, Maintal, according to a press release on 27 April. The acquisition can only be closed after the relevant approval has been granted by Germany's Federal Cartel Office.

When the purchase is closed, United Internet AG will have a total indirect holding of 20.7% in Drillisch AG via its acquired and contractually agreed interests.

United Internet regards Drillisch AG as a well-positioned company with promising market opportunities. The product portfolio and target groups of Drillisch AG fit well with the Access business of the United Internet Group.

As a strategic shareholder, United Internet will accompany the further development of Drillisch AG and profit from its growth.

However, United Internet AG does not currently intend to acquire an equity stake of 30% or more in Drillisch AG - which would oblige it to submit a mandatory bid to all other shareholders of Drillisch AG - nor to make a voluntary takeover bid.

>>> Asian Update

Asian Mid-session Update: Japan officials promise discipline plan after Fitch cut rating

***Economic Data***
- (JP) JAPAN MAR RETAIL SALES M/M: -1.9% V 0.6%E; RETAIL TRADE Y/Y: -9.7% V -7.5%E (biggest decline since 1998)
- (AU) Australia ANZ Roy Morgan Weekly Consumer Confidence Index: 111.8 v 108.8 prior
- (AU) Australia Feb Conference Board Leading index m/m: 0.5% v 0.4% prior (3rd consecutive increase)
- (PH) PHILIPPINES FEB TRADE BALANCE: -$813M V -$315Me

***Index Snapshot (as of 02:30 GMT)***
- Nikkei225 +0.5%, S&P/ASX -0.3%, Kospi -0.1%, Shanghai Composite flat, Hang Seng -0.4%, Jun S&P500 -0.1% at 2,102

***Commodities/Fixed Income***
- Jun gold -0.2% at $1,201/oz, Jun crude oil -1.3% at $56.23/brl, May copper -0.5% at $2.7575/lb
- GLD: SPDR Gold Trust ETF daily holdings fall 3.3 tonnes to 739.1 tonnes
- SLV: iShares Silver Trust ETF daily holdings rise to 10,284 tonnes from 10,239 tonnes prior; Highest since Dec 2014
- (CN) PBoC won't conduct open market operations (OMO) in today's session (3rd consecutive halt)
- USD/CNY: PBoC sets yuan mid point at 6.1209 v 6.1220 prior setting (strongest Yuan setting since Jan 16th)
- (AU) Australia MoF (AOFM) sells $200M in 2% indexed bonds due 2035; Avg yield: 0.5808%; Bid-to-cover: 2.88x

***Market Focal Points/FX***
- China markets are notably more subdued after yesterday's oversized rally driven by speculation of more aggresssive easing by the PBoC along with reports the govt will look to reduce the number of SOEs from 112 to as low as 40 through large scale mergers. Today's report from State-owned Assets Supervision and Administration Commission (SASAC) would not confirm those rumors. Also of note in China, the Mof reportedly urged regulators to speed up local govt bond sales, and PBoC Gov Zhou noted deposit insurance premium would be 0.01-0.02%. Separately, PBoC Dep Gov Yi Gang added PBoC operations can provide ample liquidity, and there is still large room to cut the relatively high RRR rate.

- RBA Gov Stevens may have tipped the central bank's hand, expressing concern that the low interest rate environment in Australia makes for a very challenging retirement system. Local press reports interpreted the remarks as indication the RBA will likely stand pat next month, with fixed income markets recently showing a near-even split in expectations of another rate cut. Earlier, Treasurer Hockey said Australia's AAA sovereign rating is at risk if budget is not returned to growth, with borrowing unsustainable in the long term. AUD/usd fell below 0.7840 on Hockey comments but bounced above 0.7870 after the speech by Stevens.

- In Japan, Econ Min Amari said the govt will announce a fiscal discipline plan that will renew public trust in Japan's finances. Remarks follow yesterday's cut of Japan's sovereign rating at Fitch to A from A+. In corporates, Canon traded lower after disappointing earnings and lower camera sales guidance. Honda and Panasonic are on tap for release after market close today.

***Equities**
US equities / ADRs:
- RTEC: Reports Q1 $0.17 v $0.11e, R$52.6M v $49.0Me; +13.0% afterhours
- RCII: Reports Q1 adj $0.52 v $0.50e, R$877.6M v $859Me; +8.5% afterhours
- WNC: Reports Q1 $0.19 v $0.17e, R$438M v $424Me; +2.9% afterhours
- MRK: Announces the Trial Evaluating Cardiovascular Outcomes with Sitagliptin (TECOS) Met Primary Endpoint; +2.5% afterhours
- AAPL: Reports Q2 $2.33 v $2.19e, R$58B v $56.3Be; raises dividend 11% to $0.52; increases buyback program to $140B from $90B; +1.3% afterhours
- HIG: Reports Q1 $1.04 v $0.97e, R$4.62B v $3.78Be; +0.5% afterhours
- TWC: Said to be open to merger discussions with Charter Communications - financial press; +0.4% afterhours
- DB: Plans to become a pure investment bank/corporate lender were foiled by the ECB stress tests - financial press; +0.1% afterhours
- CR: Reports Q1 $0.92 v $1.01e, R$679M v $680Me; -1.4% afterhours
- ABX: Reports Q1 $0.05 v $0.10e, R$2.25B v $2.33Be; -3.1% afterhours
- CUDA: Reports Q4 $0.07 v $0.06e, R$72M v $71.8Me; -4.4% afterhours
- ALSN: Reports Q1 $0.38 v $0.33e, R$503.6M v $511Me; Guides Q2 Rev down y/y; -5.7% afterhours
- AMKR: Reports Q1 $0.12 v $0.10e, R$743M v $740Me; -9.2% afterhours
- TCS: Reports Q4 $0.24 v $0.31e, R$224.3M v $233Me; -25.5% afterhours

Notable movers by sector:
- Financials: Galaxy Securities 6881.HK +0.3% (prices secondary offering); Bank of Nanjing 601009.CN +5.0% (FY14 results); Industrial Securities 601377.CN +2.2% (Q1 results)
- Materials: Regis Resources RRL.AU +4.9% (Q3 production results)
- Energy: Osaka Gas 9532.JP +4.3% (FY14/15 results); Beach Energy BPT.AU -3.2% (Q3 results)
- Industrials: Fuji Electric Holding 6504.JP -5.6% (FY14/15 results); Hitachi Construction Machinery 6305.JP -6.4% (FY14/15 results); Daihatsu Motor 7262.JP -6.0% (FY14/15 results); Fanuc 6954.JP +6.0% (FY14/15 results); Komatsu 6301.JP -4.7% (FY14/15 results); UGL UGL.AU +1.5% (shareholder raises stake)
- Technology: Tokyo Electron 8035.JP -14.7% (ends merger plan with Applied Materials due to DoJ's decision); Kyocera 6971.JP -5.7% (FY14/15 results); Canon 7751.JP -2.5% (Q1 results); Gree Electric Appliances 000651.CN +10.0% (FY14 results)

>>> US After Hours

After Hours Summary: RTEC +12.5%, RCII +8.2%, AAPL +1.4%, TCS -24.9%, IPHS -9.9%, CUDA -4.4% following earnings/guidance

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings: RTEC +12.5%, GIG +10.3%, RCII +8.2%, SIMO +5.1%, CMP +2.7%, WNC +2.6%, AVB +2%, UHS +1.5%, AAPL +1.4%, HIG +0.5%, SSW +0.1%,

Companies trading higher in after hours in reaction to news: VRML +17.7% (announced expanded medical policy coverage of its OVA1 test), AEZS +10.3% (announced that a Data Safety Monitoring Board has recommended that co's Phase 3 ZoptEC study continue as planned), MRK
+3.3% (announced that its trial of Januvia, which evaluates cardiovascular outcomes with sitagliptin, achieved its primary endpoint of non-inferiority for the composite cardiovascular endpoint; also announced publication of data from two Phase 3 clinical studies of ZERBAXA (ceftolozane/tazobactam) in which both studies met the primary endpoint),
GENE +2.3% (provided a quarterly activities report: For the March 2015 quarter, 512 BREVAGenplus test samples were received), CVEO +1.4% (announced it has won four new contracts totaling CAD $64 mln in aggregate value), FAC +1.1% (announced an agreement to acquire the assets of 83 retail stores from Titan Non-Standard Automobile Insurance Agencies, for $34.5 mln in cash)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings: TCS -24.9%, IPHS -9.9%, AI -8.1%, AMKR -8.1%, OLN -7%, ALSN -5.9%, CUDA -4.4%, PRCP -3.5%, OSTK -2.3%, CR -1.4%, SWFT -1.4%, OMI -0.7%, AGNC -0.6%, ORC -0.4%

Companies trading lower in after hours in reaction to news: UNXL -38.3% (disclosed that on April 22, 2015, through its Uni-Pixel Displays subsidiary, co exercised its right to terminate that certain Manufacturing Facility Installation with Eastman Kodak Company), SHLM -3.8% (commenced $110 mln offering of Cumulative Perpetual Convertible Special Stock), LEAF -2.0% (announced public offering of ~22.73 mln shares of common stock, ~3.8 mln shares being offered by selling stockholders and ~18.9 mln shares being offered by the company; co also provided in-line Q1 EPS guidance), COR -1.7% (announced the sale of 4.5 mln shares of its common stock by investment funds affiliated with The Carlyle Group), PRTK -1.7% (announced proposed public offering of $60 mln of its common stock), ZGNX -1.4% (appointed Stephen Farr, Ph.D as new CEO, effective immediately), GWPH -1.3% (announced proposed public offering of 1.25 mln ADS shares, price not disclosed)

(BFW) Time Warner Cable Open to Charter Merger Talks, Reuters Says


Time Warner Cable Open to Charter Merger Talks, Reuters Says
2015-04-27 23:37:09.239 GMT


By Morwenna Coniam
(Bloomberg) -- While Charter not yet made formal offer, TWC
thinks it may be willing to make a more attractive bid vs 2
years ago, Reuters reports, citing unidentified people familiar
with the matter.
* TWC declined to comment, Charter representatives didn’t
immediately respond: Reuters
* NOTE: Earlier, TWC Said to Talk to Cox in Recent Days About
Possible Merger: DJ
* NOTE: Bloomberg Intelligence- Charter’s TWC M&A Better on
Antitrust Than a Comcast Acquisition
* NOTE: Comcast’s Week-Long Unraveling Of TWC Deal Was Months
in Making
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>

To contact the reporter on this story:
Morwenna Coniam in Hong Kong at +852-2977-6612 or
mconiam@bloomberg.net
To contact the editors responsible for this story:
Clyde Eltzroth at +1-212-617-1879 or
celtzroth1@bloomberg.net
Morwenna Coniam, Vivek Shankar

FT: Apple returns $200bn in cash to investors as iPhone sales boom

Apple returns $200bn in cash to investors as iPhone sales boom


Apple once again beat Wall Street’s forecasts for revenues, earnings and iPhone sales with its results for the second quarter, as it said it would return another $70bn to shareholders.
The world’s most valuable company by market capitalisation posted revenue growth of 27 per cent to $58bn, ahead of analysts’ expectations of around $56bn, thanks to stronger-than-anticipated iPhone sales, up 40 per cent to 61.2m units.

Net profit for quarter ending in March was $13.6bn, boosting earnings per share by 40 per cent to $2.33 — better than the $2.16 forecast by Wall Street analysts.
“We’re seeing a higher rate of people switching to iPhone than we’ve experienced in previous cycles, and we’re off to an exciting start to the June quarter with the launch of Apple Watch,” said Tim Cook, Apple’s chief executive, in a statement.
At the same time as announcing the figures, Apple said that it would expand its dividends and buyback scheme to return a total of $200bn to shareholders by the end of March 2017, up from the $130bn programme of a year ago. That includes a 11 per cent dividend increase and a further $50bn in share repurchases.
However, the iPad remained a weak spot in Apple’s line-up with sales of 12.6m, below expectations.
Apple’s stock traded close to its all-time high above $133 on Monday, before the company reported its results after the market close.
Several factors have been driving the iPhone’s growth. A study by Morgan Stanley in the run-up to Apple’s results found that iPhone customers upgrade their smartphones more frequently than other mobile customers.
The bigger screens offered by the latest iPhones released in September have also driven a fresh wave of upgrades.
The iPhone’s popularity is affecting the rest of the smartphone industry. Chipmaker Qualcomm warned last week that revenues this year would be $1bn less than it had previously thought, in part due to the strength of Apple, which uses its own mobile chips.

However, analysts at Piper Jaffray say some investors are concerned about the prospects for continuing health in iPhone sales between now and the release of its next update, likely in September. “If the iPhone 6/6+ cycle is fundamentally different than prior cycles given the larger screen size, which we believe is true, then market share in June and September could be higher than historical norms,” Piper Jaffray said in a note on Monday morning.
The figures come just days after the first shipments of Apple Watch reached customers who pre-ordered the device two weeks ago. Apple said back in October that it would not disclose financial results for its latest product, instead rolling Watch revenues into a broader category of accessories including the iPod, Beats headphones and other peripherals.
Analysts at Forrester Research predict that 10m Apple Watches will be sold by the end of the calendar year.
Apple has revisited its capital return programme every spring after resuming dividend payments and a huge share buyback scheme in 2012. Since then it has returned more than $112bn to shareholders.
Mr Cook told investors at the Goldman Sachs technology conference in San Francisco in February that Apple would give back any cash that it does not need to invest in the business or make acquisitions, such as last year’s $3bn deal to buy Beats Electronics. “It may come across that we are, but we are not hoarders,” Mr Cook said.
Because more than three quarters of its cash pile is held overseas, Apple has turned to the debt markets to help finance its buybacks.
“Since the current program started two and a half years ago, Apple returned 100 per cent of its free cash flow on a fully taxed basis,” analysts at Morgan Stanley