| Apple second-quarter outlook spooks investors
SAN JOSE, Calif. (AP) - As investors pummeled Apple Inc.'s stock over a disappointing financial outlook, a key question remained about the results: just how badly will the company be hurt by slowing economic activity in the United States and fears of a recession?Wall Street interpreted the Cupertino-based company's guidance for the current quarter, released after the market closed Tuesday, as a sign that weakening consumer spending will hurt Apple in 2008 and that even a hot company like Apple isn't immune from the broader economic pressures weighing on the stock market.Apple executives noted, however, that its forecast for the fiscal second quarter calls for sales growth of 29 percent, which is faster than in previous years, even if it is slower than Wall Street was expecting. The company said that because of booming holiday sales, Apple notched the highest quarterly revenue and earnings in its history."Our business performed very well in the December quarter, and we remain very confident in our products and our strategy," said Apple Chief Financial Officer Peter Oppenheimer.At the open of trading Wednesday, Apple shares tumbled nearly 12 percent, or $18.30, to $137.34.Apple's stock, seen as a refuge from the market's turmoil during the second half of 2007, has declined sharply, wiping out more than $40 billion in shareholder wealth since the end of December, when shares hit their 52-week high of $202.96.Shareholders had hoped Apple's first-quarter results, which cover the last three months of the year, would be a high point in a market otherwise marred by bad news.
World View: The FSA seems to have learnt its lesson a year too late
Most culpably, its business plan for 2007 set the wrong priorities. Judging from the outlook, the regulator's plan for 2008, out next week, will have a much sharper focus. The report is 56 pages shorter, but contains more than twice as many references to liquidity as the 2007 report. It may be informed by recent history, but for that reason, financial services companies would be foolish to ignore it. Continual power shifts EDF has been generating a lot of rumours lately. The French state-owned electricity group is reported to be eyeing Germany's RWE, Spain's Iberdrola and the Belgian assets that Suez and Gaz de France must shed to meet European Union conditions for their merger to go ahead. On paper, all these options look plausible. In practice, they are likely to prove difficult, if not impossible, given the huge political problems they raise.
Asos wins in online fashion battle
Asos, the internet fashion retailer, has revealed bumper Christmas sales and told the market to expect much higher pre-tax profits than previously forecast. Sales at Asos.com rose 86pc in the seven weeks to January 20, while margins remained flat. Analysts started to upgrade their pre-tax profit consensus of £5.9m for the year to March 31 as soon as the numbers were announced. .
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