FirstFT: Today’s top stories | Financial Times

Apple posted double-digit growth in the first quarter of 2021 in all of its businesses, led by iPhone sales that surged by two-thirds from a year ago.

The world’s largest company said that revenue had soared 54 per cent in its fiscal quarter to $89.6bn, far exceeding already elevated forecasts of $77bn. Net profits leapt 110 per cent to $23.6bn.

Luca Maestri, Apple’s finance chief, told the Financial Times that every region grew by at least 35 per cent, led by a 94 per cent gain in Asia-Pacific to $7.5bn. In the Americas, its biggest region, revenue increased 35 per cent to $34.3bn. Revenue in China grew 87 per cent to $17.7bn.

Elsewhere in the world of Big Tech, Facebook shares rose more than 5 per cent in after-hours trading after it said prices for digital ads were soaring amid a boom in demand, one day after Google said it was enjoying a similar dramatic benefit from the pandemic. Microsoft sales also beat expectations in the first quarter, it announced on Wednesday.

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In the news

Biden to announce plans to expand US social safety net Joe Biden is poised to announce a $1.8tn plan to expand America’s social safety net, which will be funded by hefty tax increases on the wealthiest households, senior administration officials said. But members of Biden’s own party are among the doubters of his plan to tax the rich.

First woman to lead a Big Four firm to depart KPMG Mary O’Connor is to leave KPMG after being passed over to become the firm’s permanent chief executive. O’Connor led KPMG UK for two months after Bill Michael stepped down as chair and chief executive, but in a surprise move, KPMG’s board put forward Jon Holt, head of audit, to take on the role on a permanent basis.

Hong Kong immigration law change raises ‘exit ban’ fears The Chinese territory has amended its immigration law in a move which lawyers warn could increase business risks by handing the government broad powers to prevent individuals leaving the city. The changes will come into effect on August 1.

Saudi crown prince says he wants to mend Iran relationship Mohammed bin Salman said in a Saudi television interview that Riyadh wanted to resolve its differences with rival Iran, a marked shift in tone in the wake of the election of Joe Biden, US president.

Home and office of Rudy Giuliani searched by federal agents A lawyer for Giuliani, who is Donald Trump’s former personal lawyer, confirmed that a search warrant had been executed, which indicated that prosecutors were looking into an alleged failure to register as a foreign agent, according to a statement. Giuliani has denied any allegations of improper lobbying, the lawyer, Bob Costello, added. 

Samsung heirs reveal legacy plan The family of late Samsung patriarch Lee Kun-hee has pledged billions of dollars in healthcare spending and art donations and vowed to pay $11bn in one of the world’s biggest-ever inheritance tax bills. Following Lee’s death in October, South Korea’s most powerful family was given six months to tell tax officials how they would deal with his estate.

Global IPOs begin 2021 at breakneck pace A deluge of stock market listings has lifted IPO proceeds to a record-breaking $230bn this year, according to Dealogic, well above the previous peak of $80bn set in 2000.
Hong Kong’s stock exchange operator has notched its best-ever quarterly profit amid a flood of trading and initial public offerings.

Correction: Yesterday’s edition of FirstFT included a story on China’s declining population. It has since been amended to reflect the fact that the current population decline is the country’s first since the Great Leap Forward in the late 1950s, not the first since records began in 1949. 

The day ahead

Biden’s joint address to Congress Joe Biden, US president, will address a joint session of Congress for the first time at 9pm EDT on Wednesday/9am HKT on Thursday. Biden will address progress he has made on actions he pledged to make in his first 100 days. However, he now faces two big challenges in the slowing US vaccine rollout. (NPR, FT)

Earnings Thursday is another bumper day for earnings. Big Tech’s Amazon and Twitter report, in addition to pharmaceutical companies Bristol-Myers Squibb, Merck, Gilead Sciences and Emergent. Samsung, Royal Dutch Shell, Airbus and Unilever also report. Click here for the full list.

What else we’re reading

The double-edged sword of trade with China EU exports to China have grown at a double-digit pace since the pandemic struck, a rare bright spot in Europe’s otherwise bleak economic landscape. But China’s actions in places such as Xinjiang and Hong Kong have prompted some to reassess their links to the world’s second-largest economy.

Credit Suisse: plotting a comeback after ‘costly mistakes’ The twin failures of Greensill Capital and Archegos have put Credit Suisse in the spotlight for all the wrong reasons, raising doubts about the 165-year-old bank’s very existence and whether it will be broken up or survive in a European banking market that is under pressure to consolidate. 

Wall Street beware: the SEC’s Gensler carries a big stick The last time Gary Gensler ran an American financial regulator, he was charged with cleaning up the mess left by the 2008 crash. Now the new chair of the US Securities and Exchange Commission is under pressure to clamp down and deflate any bubbles before they burst, writes Brooke Masters.

For post-Covid style, comfort is in and status anxiety is out “After a year of wearing sneakers, jeans and shirts, all I can imagine myself buying now are floppy, flowing clothes that are comfortable, flexible and practical,” writes Gillian Tett. Some designers think the feeling is widespread, and will spark a permanent move towards more comfortable styles.

Building better jobs for the young What do young people want from the world of work? Tired tropes about “job-hoppers” in search of “meaning” are a distraction. Most youngsters want what their parents and grandparents wanted: a decent income, a chance to progress and enough security to build a life on. The trouble is, too few are getting it.

Cartoon of the day

Standard Life Aberdeen to change name to Abrdn