Quarterly Outlook
Fixed Income Outlook: Bonds Hit Reset. A New Equilibrium Emerges
Althea Spinozzi
Head of Fixed Income Strategy
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OP 2019: Apple 'secures funding' for Tesla at $520/share
Peter Garnry
Chief Investment Strategist
Summary: Two icons of the tech world get together in an unexpected but surprisingly logical and very convenient marriage.
For the full list of Saxo's 2019 Outrageous Predictions, click here.
What will Apple do next with its $237 billion cash-and-equivalents hoard and its
important iPhone product line that is incapable of further volume growth? It’s either the
boring financial engineering of dividends or share buybacks or i t’s a bold move beyond
the confines of smartphones, laptops and their associated services and accessories.
Apple realises that if it wants to deepen its reach into the lives of its user base, the next
frontier is the automobile as cars become more digitally connected. After all, the late
Steve Jobs showed that a company needs to bet big and bet wild to avoid complacency
and irrelevance.
Acknowledging that Tesla needs more capital to realise its potential and Apple needs to
expand its ecosystem to the car in a more profound way than that represented by the
current Apple CarPlay software, Apple goes after Tesla. It secures funding for the deal
at a 40% premium of $520 per share – acquiring the company at $100/share more than
Elon Musk’s errant “funding secured” tweet.
The acquisition makes perfect sense. It’s small enough to be an all-cash deal and it only
represents 12 months of Apple’s free cash flow. The two companies are both focused
on engineering and design in hardware coupled with vertically integrated distribution
models in high-fashion areas. Apple has the financial strength to fulfill Elon Musk’s
wildest dreams, ensuring that Tesla does not have to balance capital expenditures to
cash flow generation in the short term.
The acquisition allows Tesla to build several new Gigafactories and production facilities
in Europe and China to stay ahead of the competition and dominate the future of the
car industry.
Quarterly Outlook
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Quarterly Outlook
Equity Outlook: Will lower rates lift all boats in equities?
Peter Garnry
Chief Investment Strategist
After a period of historically high equity index concentration driven by the 'Magnificent Seven' sto... -
Quarterly Outlook
FX Outlook: USD in limbo amid political and policy jitters
Charu Chanana
Chief Investment Strategist
As we enter the final quarter of 2024, currency markets are set for heightened turbulence due to US ... -
Quarterly Outlook
Macro Outlook: The US rate cut cycle has begun
Peter Garnry
Chief Investment Strategist
The Fed started the US rate cut cycle in Q3 and in this macro outlook we will explore how the rate c... -
Quarterly Outlook
Commodity Outlook: Gold and silver continue to shine bright
Ole Hansen
Head of Commodity Strategy
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Quarterly Outlook
FX: Risk-on currencies to surge against havens
Charu Chanana
Chief Investment Strategist
Explore the outlook for USD, AUD, NZD, and EM carry trades as risk-on currencies are set to outperfo... -
Quarterly Outlook
Equities: Are we blowing bubbles again
Peter Garnry
Chief Investment Strategist
Explore key trends and opportunities in European equities and electrification theme as market dynami... -
Quarterly Outlook
Macro: Sandcastle economics
Peter Garnry
Chief Investment Strategist
Explore the "two-lane economy," European equities, energy commodities, and the impact of US fiscal p... -
Quarterly Outlook
Bonds: What to do until inflation stabilises
Althea Spinozzi
Head of Fixed Income Strategy
Discover strategies for managing bonds as US and European yields remain rangebound due to uncertain ... -
Quarterly Outlook
Commodities: Energy and grains in focus as metals pause
Ole Hansen
Head of Commodity Strategy
Energy and grains to shine as metals pause. Discover key trends and market drivers for commodities i...