US: Wall St slips as Apple shares fall

Traders work on the floor of the New York Stock Exchange (NYSE) on August 06, 2015 in New York City. 

PHOTO: AFP

OCT 1, 201510:21 PM

[BENGALURU] US stocks fell in early trading on Thursday as a sharp decline in Apple's shares weighed on the three major indexes.

Apple was down 2.1 per cent at US$107.9 at 10:06 am ET, erasing opening gains for US stocks.

Global markets were upbeat after data from China was not as bad as feared and investors awaited a barrage of US data.

Factory activity in China shrank again in September, leading some investors to believe that the government will be more aggressive in its measures to boost the health of the world's second-largest economy.

See who is talking about APPLE

Last 30 days:

• 219644
• 12385
• 19877

30 days avg

HOT COMPANIES

Glencore +309% messages

• Wolseley +127%
• Marks & Spencer +46%
• JMAT +45%
• Hargreaves Lans +42%
• WPP +25%
• Sainsbury +15%
• Bunzl +14%
• Land Securities +13%
• BT +11%

• Wolseley +127%
• Marks & Spencer +46%
• JMAT +45%
• Hargreaves Lans +42%
• WPP +25%
• Sainsbury +15%
• Bunzl +14%
• Land Securities +13%
• BT +11%

Global investors will be looking to put a bruising quarter behind them - US stocks posted their worst quarter in four years, while the Shanghai stock market plunged about 25 per cent. "Historically, the third quarter tends to be a difficult quarter and the fourth quarter tends to be the best quarter of the year," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.

Investors will be parsing data released this week, with the crucial non-farm payroll numbers due on Friday, for clues on the timing of an interest rate hike by the US Federal Reserve.

REUTERS

    
 

Hewlett-Packard board approves split into 2 companies   

Hewlett-Packard logo. 

PHOTO: REUTERS

OCT 1, 20159:56 PM

[BENGALURU] Hewlett-Packard Co said its board had approved the previously announced split of the company into two separate listed entities - computers and printers, and corporate hardware and services.

Hewlett-Packard said on Thursday that it expected its split into Hewlett Packard Enterprise Co and HP Inc to be completed on Nov. 1.

A day later, Hewlett Packard Enterprise, comprising the corporate hardware and service business, will start trading on the New York Stock Exchange under the ticker symbol "HPE".

Hewlett-Packard, which will be renamed HP and comprise the computers and printers business, will continue to trade under its current ticker symbol.

See who is talking about HP DEUTSCHLAND

Last 30 days:

• 6438
• 317
• 969

30 days avg

HOT COMPANIES

Glencore +309% messages

• Wolseley +127%
• Marks & Spencer +46%
• JMAT +45%
• Hargreaves Lans +42%
• WPP +25%
• Sainsbury +15%
• Bunzl +14%
• Land Securities +13%
• BT +11%

• Wolseley +127%
• Marks & Spencer +46%
• JMAT +45%
• Hargreaves Lans +42%
• WPP +25%
• Sainsbury +15%
• Bunzl +14%
• Land Securities +13%
• BT +11%

Hewlett-Packard shareholders will get one share of Hewlett Packard Enterprise for each share held as of Oct 21.

The tax-free distribution will be on a pro-rata basis, the 75-year-old company said.

Hewlett-Packard announced the split in October 2014 after years of struggling to adjust to the post-PC computing era.

Hewlett-Packard said it expected Hewlett Packard Enterprise to start trading on a "when issued" basis on or around Oct 19 under the ticker symbol "HPE WI".

Up to Wednesday's close, the stock had fallen about 27 per cent since Oct 3, the last trading day before the company announced the split.

REUTERS

      

Tsinghua deal to connect Western Digital to powerful China tech set

A Western Digital Corporation hard drive is pictured here in Encinitas, California in this April 19, 2011 

PHOTO: REUTERS

OCT 1, 20157:53 PM

[SINGAPORE] A billion-dollar Chinese plan to invest in Western Digital Corp is designed to plug the US data storage firm into a network of influential China tech players carefully constructed by Tsinghua University, the alma mater of President Xi Jinping.

For US$3.8 billion, a unit of state-owned Tsinghua Holdings Co will get a 15 per cent stake in Western Digital. What Tsinghua, run by a university committee, hopes to get is the latest in a string of domestic and foreign footholds in data storage and the chip market, an area deemed of strategic importance by Beijing.

Wednesday's Western Digital deal follows Tsinghua's US$23 billion move to buy US chipmaker Micron Technology Inc as China ramps up efforts to develop chips expertise. But the Micron plan has been clouded by U.S. security concerns - and some say the Western Digital may follow suit. "Its (Tsinghua's) Chinese government affiliation is making its overseas acquisition more difficult," said Fubon Securities analyst Carlos Peng.

Western Digital hopes selling the minority stake to Tsinghua's Unisplendour Corp will help it avoid rigorous regulatory scrutiny. If the deal goes through, the California-based firm will have a new investor with a wide range of China tech units, from IT services provider Unisplendour to biotechnology firm Chengzhi Shareholding Co.

See who is talking about WESTERN DIGITAL

Last 30 days:

• 1011
• 32
• 243

30 days avg

HOT COMPANIES

Glencore +309% messages

• Wolseley +127%
• Marks & Spencer +46%
• JMAT +45%
• Hargreaves Lans +42%
• WPP +25%
• Sainsbury +15%
• Bunzl +14%
• Land Securities +13%
• BT +11%

• Wolseley +127%
• Marks & Spencer +46%
• JMAT +45%
• Hargreaves Lans +42%
• WPP +25%
• Sainsbury +15%
• Bunzl +14%
• Land Securities +13%
• BT +11%

The Tsinghua network also stretches to other US firms.

In May, Unisplendour announced to buy 51 per cent of Hewlett-Packard's H3C Technologies for US$2.3 billion, creating a Chinese tech hub that houses H3C's networking operation alongside its China-based server, data-storage and technology-services businesses.

Meanwhile, in 2014, Intel Corp bought a US$1.5 billion, 20 per cent stake in two mobile chipmakers under Tsinghua's umbrella. That provided the Chinese firm with support from a US semiconductor giant on chip design and development within China itself - a landmark deal for Beijing. "It (China) is producing its own products rather than just contract making, it's because there's demand from local consumption," said Gartner analyst Tracy Tsai. "Tsinghua, with its state-backed role, plays a key part under this background. It needs to introduce partners through mergers and acquisitions and help China boost its technology knowhow."

REUTERS