What to watch for
A tepid third quarter for Apple? Analysts expect the tech giant’s revenue to be flat compared with the same quarter last year, while earnings per share are projected to drop 22%. And there will inevitably be questions about whether Apple has any tricks left up its sleeve. That may explain the latest news that Apple is testing larger screens for future iPad tablets and iPhones.
Muted second quarter expectations. US carrier AT&T is likely to report a marginal increase in earnings in the second quarter, as the cost of acquiring new customers dents profits. The world’s biggest package delivery company, UPS, which cut its 2013 earnings forecast in July, is likely to report a drop in profits.
Reining in Wall Street. A US Senate subcommittee will hold a hearing on whether financial firms should continue to be allowed to control power plants, warehouses, and oil refineries. The hearing comes even as the Federal Reserve said on Friday that it is reviewing a 2003 decision that let deposit-taking banks trade physical commodities such as aluminum.
While you were sleeping
Dan Loeb pared his Yahoo stake. Loeb’s Third Point, the investor group that spearheaded the replacement of Yahoo CEO Scott Thompson with Marissa Mayer, sold a 3.7% stake and gave up three board seats. With Loeb off Yahoo’s board, the struggling internet company will lose much-needed investor pressure.
UBS settled with the US mortgage regulator. The Swiss banking giant reached an agreement with the Federal Housing Finance Agency to settle claims that 9t mis-sold mortgage investments between 2004 and 2007. UBS will pay more than 700 million Swiss francs ($746 million) to settle the claims.
McDonald’s disappointed investors. The fast-food chain reported weaker-than-expected second quarter earnings and revenue growth, as the economic slowdown dented demand. McDonald’s also warned that economic weakness would hamper sales for the rest of the year.
Telefonica closes in on KPN’s German unit. Spain’s Telefonica is reportedly looking to pay the Dutch telecoms operator $6 billion in cash and give KPN between 15 and 30% stake in the combined entity.
The duchess of Cambridge gave birth to a son. His name isn’t yet known. As the first child of the duke and duchess of Cambridge, the new royal will be third in line to the throne.
Quartz obsession interlude
Matt Phillips on why Europe’s plan to cut debt by cutting spending is just not working. “Italy’s debt-to-GDP ratio hit 130% during the first quarter of 2013, a new record. Ireland’s continued to escalate, touching 125% at the end of March. Greece remains a basket case. Even after having defaulted on its debt twice over the last few years—which sharply cut the debt outstanding—it posted the highest overall debt-to-GDP ratio, 160%. But it also posted the highest quarter-over-quarter rise in the measure.” Read more here.
Matters of debate
Mobile game developers should make multiple products in quick succession to land a killer app. Non-game app developers should build just one.
Benefitting from the slowdown in China. India’s manufacturers can grab a bigger share of the global manufacturing pie.
The nerve center of African piracy is shifting from the east coast to the west. Global governments must offer development aid for coast guards and create a maritime task force to fight the growing menace.
Why so many Russian rockets have been failing. The crash of Proton-M on July 2 is another sign of the neglect and systemic issues in Russia’s space program.
The cost of hack attacks. A new study estimates that cyber espionage and cyber crime may cost the US economy $100 billion each year.
Faster than the speed of light? NASA scientists are experimenting with photons to see if faster-than-light travel might be possible.
340-month global warming streak. Anyone born after February 1985 has never experienced a month of below-average global temperature.
Healing power of the written word. Study shows that seniors’ wounds heal faster if they unburden themselves through expressive writing.