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U.S. Morning Call: Apple hiring for iWatch project

Monday, July 15, 2013 - 03:55

July 15 - Apple is aggressively hiring workers and looking to acquire startups for its iWatch engineering efforts, according to the Financial Times.

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Reading your Monday morning call earnings from Citigroup due out at 8 AM eastern the bank is expected to report at 15% rise in profit from a year earlier. New CEO Michael -- that has been on a cost cutting mission since taking over late last year after Vikram Pandit was abruptly ousted. Crap that's -- the bank benefiting from lower costs for bad mortgage assets that was left over from the housing crisis. Although city has come a long way since then with its stock up 25%. This year the bank's capital ratios are still lagging. Under the new proposed rules banks will need to raise ratios to 5%. Above the 3% agreed upon in the about the agreement. Is the case that means it needs to set aside thirteen billion dollars in capital or eight point 6% of current market cap to comply with the new rules. What's the best performing stock on the S&P 500 this year. It's Netflix. Up 178%. In 2013. And up another 1% in the premarket. But some analysts think Netflix isn't taking subscriber growth seriously enough according to the Wall Street Journal. Netflix to be more like Amazon which has sacrifice margins but has -- online retail dominance as a result. Netflix recently dropped byte com content which then went exclusively to Amazon. Analysts say if Netflix wants to reach greater heights and grow its subscriber base. It may need to pick up margins like Amazon and pay more for contact. Also keep an eye on Boeing shares this week shares to after Ethiopian airline 787 plane caught fire at London's Heathrow airport. A big step back after going worked so hard to restore confidence in the aircraft. But the stocks up premarket after multiple airlines said they still have faith in the dreamliner and will continue to fly them. And finally we're watching apple it's aggressively hiring and looking to snag startup expert I watch engineering efforts according to the Financial Times. Don't hold your breath the tie up the higher suggests that a Smart what. -- until the second half a 2014. Let me not to marking its US stock futures point to a higher open this morning investors in the US not so worried about the slowdown in China. Second quarter GDP data shows China's economy expanded seven and a half percent from a year ago. Back in 2007. -- had -- to fourteen point 2%. And although mining stocks up today with a bad news priced and they're expected to lose out in the long term. Along with energy companies and raw materials providers. All of which were thriving off the economic -- in China. Retailers in the US playing it safe when it comes to inventory. And analysis from Reuters shows better inventory tracking tools are enabling retailers to be conservative in placing their back to school orders. That could mean higher profit margins later in the year when retailers were probably not have to offers made discounts to get rid of excess stuff. Analysts say that from the retailer's perspective it's better to miss sales than stock up. The back to school season is the second biggest sales period for year. Market research firm NPD group -- -- 3% rise back to school sales last year with online sales picking up. Markets waiting for the retail sales data for June due out a little later today. That's it for your Monday morning call remembered follow us on Twitter at Reuters Insider and get Margaret -- -- later dot com slash. I was burned cars.

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U.S. Morning Call: Apple hiring for iWatch project

Monday, July 15, 2013 - 03:55