Apple rises above three trillion – Handelsblatt Morning Briefing

Good morning dear readers,

On Monday evening, the stock exchange world celebrated another record: For the first time in history, a corporation reached a market value of three trillion dollars. Apple shares rose to an all-time high of $ 182.88 and passed the three trillion mark. That is more than the UK’s annual economic output. And only 16 months ago Apple cracked the two trillion.

Apple’s new rating record is symbolic. More than ten years of the stock market boom, only interrupted for a few months by the Corona Dip in spring 2020, have made stocks expensive. This is especially true for the papers of the most important global corporations.

For the 100 largest companies by market value, the average price / earnings ratio is currently 31.5. On a long-term average, the top 100 in the world were only valued at 18 times the profit, i.e. around half as expensive.

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With some number crunching, our stock expert Ulf Sommer actually managed to fish out four of the 100 blue chips that are comparatively low and at the same time will increase their profits according to analyst estimates in the current year.

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However, at least two of these stock tips are not suitable for small talk during the one-world workshop: Philip Morris produces tobacco and Exxon produces oil. The two groups have thrown numerous equity funds that invest under sustainability aspects from their portfolio, which partly explains the low valuation.

And if that doesn’t frighten you, be reminded: The controversial business models also harbor price risks because they are susceptible to political regulation. Similar hardships are not to be feared with the equally inexpensive stocks of Novartis and Samsung Electronics.

Satya Nadella: In his book “Hit Refresh”, the Microsoft CEO describes his leadership style, which is likely to have a decisive role in the company’s success.

(Photo: Bloomberg)

The only company that has been able to temporarily contest Apple’s title as the most valuable company in the past few months is its old rival Microsoft. Until recently, he was considered a sclerotic dinosaur from an era in which mousepads were still given as promotional gifts. But the changes under Satya Nadella, Microsoft CEO since 2014, are making a big difference:

In the cloud business and other business areas, Microsoft suddenly shows itself to be agile and innovative. The collaboration software Microsoft Teams has become almost synonymous with home office for millions of employees. Handelsblatt employee Axel Postinett analyzes this turnaround that Nadella did not achieve this with pressure and rigor, but with empathy and forbearance in the event of failure. Conclusion: The “-soft” in the company name takes on a whole new meaning.

In search of safe investment strategies beyond the stock market, institutional investors are increasingly venturing into the music industry, which was once known for irrational exuberance rather than reliability. To be more precise: the investors acquire the rights to text and sheet music from pop legends.

According to a report in the “Financial Times”, the media group Warner Brothers has now secured the rights to the so-called songbook of David Bowie, who died in 2016 and probably the most creative and productive genius in music history, for around $ 250 million. The sellers were Bowie’s widow and children. The songbook includes the music from the 26 Bowie studio albums and should generate stable cash flow for decades due to the constant use of the songs. We think: a real rock’n’roll suicide!

According to the Robert Koch Institute, the Omikron variant is spreading rapidly.

(Photo: imago images / photothek)

In view of the spread of the highly contagious Omikron variant, the federal and state governments are aiming to shorten the quarantine periods in order to avoid large-scale staff losses. A corresponding proposal from the Ministry of Health is currently being discussed within the federal government, said a spokesman for Interior Minister Nancy Faeser (SPD).

Federal Minister of Health Karl Lauterbach (SPD) had told the broadcaster RTL / n-tv that during the deliberations of the heads of government from the federal and state levels next Friday, “in any case new resolutions will be made” so that the Omikron wave does not get too high. The seven-day incidence, which has been falling for a long time, is now increasing again. According to the Robert Koch Institute (RKI), the Omikron variant is spreading rapidly. So far, the RKI has recommended a 14-day quarantine for contact persons of infected people who have been infected with the Omikron variant – even if they have been vaccinated or have recovered.

And then there’s the fashionable quiz question of the day: The chairmen of the CDU and CSU meet. Which of the two wears traditional jackets? Of course, Friedrich Merz from the Sauerland from the CDU. The Franconian Markus Söder, on the other hand, preferred a blue jacket during the reconciliation walk with the designated chairman of the sister party, which would have been good for him even when drinking grog on Amrum.

Such externalities must be discussed here, because the meeting of the conservative grandees in front of the Bavarian lake and alpine backdrop was clearly optimized for its visual power. The photos were distributed by the Bavarian Prime Minister via Twitter and Instagram. At the end of January, Merz is to be elected as chairman by the delegates of the CDU party congress, his freestyle is considered certain. Söder writes about the pictures: “New start: CDU and CSU close together again.” In a photo he statesmanlike pointing into the distance, Merz half a step behind him. A user on social media commented ironically: “We dumped Armin over there”.

I wish you a day on which you have absolutely nothing to complain about.

Best regards
Her

Christian Rickens
Head of Text Handelsblatt

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