Apple’s record profit, Yahoo’s spin off and ATM bombers

Apple sold 74.5m iPhones to report the largest profit in history in the three months to December. Its net profit grew 37 per cent to $18bn and beat ExxonMobil’s previous quarterly record of $15.9bn in 2012. (FT)

Surging demand in China for the latest iPhones meant sales there doubled and drove revenues in the region up 70 per cent to $16.1bn.

In the news:

Yahoo’s Alibaba split

The internet company plans to spin off its $40bn stake in the Chinese ecommerce group in what it says will be a tax-free transaction. The decision boosts the chances of Alibaba buying back the shares – Matt Levine explains the benefits of the arrangement. (FT, Bloomberg)

Singapore loosened monetary policy

It is the latest Asian country to do so as economic growth slips and oil prices pull down inflation. The central bank slowed the pace at which the Singapore dollar appreciates against other major currencies – a tool it uses rather than interest rates – and sent the Singapore dollar down the most in a single day since 2010, to S$1.35 against the greenback. (FT)

The new Greek government

Alexis Tsipras announced his new cabinet, with the line-up dominated by leftwing academics . The top economic posts went to Giannis Dragasakis, a former communist politician, and Yanis Varoufakis, an Athens university professor, prolific blogger and former economist-in-residence for a gaming company. (FT)

The threat of sanctions on Russia

European leaders threatened to impose more restrictions, saying there was evidence of Russia’s “continued and growing support” for separatists in eastern Ukraine, where fighting has escalated in recent days. The EU is struggling to maintain a united front on this issue, however, as Greece’s new government has distanced itself from this call for broader sanctions. (FT)

UK growth speeds up

The economy grew 2.6 per cent in 2014 – the fastest rate since the financial crisis. This has stoked confidence within the Conservative government even though the data were weaker than expected and it took the British economy longer than its international rivals to exceed its pre-recession peak. (FT)

It’s a big day for:

The Federal Reserve

The US central bank is expected to make a steady-as-it-goes statement after its monetary policy meeting but it will be under intense scrutiny as it prepares the way for a possible rate increase. Analysts will be watching to see whether the Fed notes the weakness in wage growth and will be looking for worries about low inflation expectations. (FT)

Facebook

Facebook reports annual results today. Operating expenses are expected to increase as it invests in new projects, while revenue growth is expected to slow from 60 per cent to 40 per cent. (FT)

Boeing

The group reports fourth-quarter results, having beating Airbus for the third straight year to the title of world’s largest aircraft-manufacturer. (FT)

Food for thought:

ATM bombers

Gas raids have been happening for more than a decade but they proliferated only recently in the UK – a low-tech, low-investment alternative to more modern forms of thievery such as ATM fraud. The rise in these bombings has created an opportunity for companies that construct ATM components to develop anti-gas attack modules. (Bloomberg)

What if $50 a barrel is the new normal?

The oil industry is already struggling but what if there is no rebound in the oil price? Lex looks at who would get squeezed and who would survive. The biggest losers could be the oil service companies. (FT)

Bricks and mortar resurgence

Tech retailers selling pricey goods, such as Apple and Tesla, have helped sales at shopping centres hit record numbers. As well as attracting footfall and driving up sales, tenants like this are required to share a percentage of their sales with mall owners. (WSJ$)

Hanergy Group, the world’s largest solar company by market value, has been making use of some unconventional practices. It has been racking up enviable revenues largely through sales between its listed subsidiary, HTF, and itself. (FT)

Video of the day:

Rolling back the UK state

The Labour party is accusing the Conservatives of shrinking government spending to a level not seen since the 1930s. Chris Giles examines whether this is a fair comparison. (FT)

This article is published in collaboration with The Financial Times. Publication does not imply endorsement of views by the World Economic Forum.

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Author: FirstFT is the Financial Times’ editors curated free daily email of the top global stories from the FT and the best of the rest of the web.

Image: The Pierre building is seen through a stairway as customers enter the Apple retail store on Fifth Avenue in Manhattan, New York September 20, 2013. REUTERS/Adrees Latif.