Apple stumble
Net iNcome dip
Tech giant Apple managed to beat the consensus on September quarter revenues of $37.5bn (£23.3bn), but the group's share price came under pressure due to a fall in net income to $7.51bn, from $8.22bn a year earlier. The group sold 33.8m iPhones over the quarter, representing a 26 per cent hike over the same period in 2012, but the cheaper 5C model effectively reduced the average sale price of the handsets. The gross margin for the quarter was 37 per cent, down from 40 per cent a year ago as Apple struggled to meet the challenge of lower-cost rivals like Samsung.
Indian takeaway
Vodafone to up stake
Following the relaxation of India's foreign ownership rules governing its telecommunications sector, Vodafone has revealed that it is seeking regulatory approval to take full control of its Indian business unit for £1.03bn. The group has filed an application with India's foreign investment panel to raise its stake in the unit from the existing 64 per cent. Meanwhile, Vodafone remains in dispute with Indian tax authorities over demands in relation to Vodafone's $11.1bn acquisition of Hutchison Whampoa's 67 per cent stake in what is now known as Vodafone India. No doubt UK Treasury officials will sympathise with their counterparts on the subcontinent.
Foresight Saga
Admission for over-50s
The initial public offering (IPO) for over-50s insurance group Saga moved a step closer, after it brought in capital markets specialists STJ Advisors to lay the groundwork ahead of next year's admission. Saga, which is part of Acromas Holdings, is estimated to be worth around £3bn. The proposed flotation is the latest in a growing list of big-ticket IPOs on the LSE, including Merlin Entertainment and Royal Mail, while upmarket UK retailer House of Fraser has reportedly engaged Rothschild as lead adviser for an admission planned for the first quarter of 2014.
Mortgage surge
Bubble rap
The latest data from the Bank of England show that UK lenders approved a total of 66,735 mortgages during September, representing the high-water mark in the wake of 2008's financial crisis. The figures were marginally up on City forecasts, but well in advance of August’s upwardly revised total of 63,396. Recent data also showed that house prices were on the rise across every English region through the month, adding weight to the view that the government's help-to-buy scheme is overheating the housing market.
Merlin revealed
Added attractions
Merlin Entertainments released more details of its upcoming IPO on the mainboard of the London Stock Exchange. The offer price range has been set at 280p-330p per share, which implies a market capitalisation of between £2.86bn and £3.335bn. The £200m generated by the offer will be used to reduce the group's net debt and pay costs associated with the offer. The subsequent free float from the global offer will be within a 20 per cent to 30 per cent range. There is an added attraction for investors willing to buy £1,000 worth of shares, as they will be entitled to a 30 per cent discount on tickets to Merlin's many attractions, such as Alton Towers.
FCA crackdown
Conduct unbecoming
Britain's Financial Conduct Authority (FCA) has pledged to lead a crackdown on the hidden fees that fund managers pass on to UK investors. The FCA has highlighted widespread abuses linked to third-party research costs, which tallied about £3bn over the past year alone. Martin Wheatley, head of the regulator, said that regulations will be tightened to ensure that managers will be required to meet these research costs from their own resources rather than taking it off clients. Instead, they may be compelled to include them within their headline management charge.
