Breaking News
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Epic v Apple, EU Travel, Tesla Delay - What's Moving Markets

EconomyMay 03, 2021 20:39
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters

By Geoffrey Smith -- Epic Games' antitrust lawsuit against Apple (NASDAQ:AAPL) reaches a California district court. The European Union will allow fully-vaccinated tourists in. Stocks are set to open the month in positive mood, and Tesla's factory in Germany faces another six months' delay. Here's what you need to know in financial markets on Monday, May 2nd.

1. Epic v Apple heads to court

One of the most important corporate legal actions of recent years heads to a U.S. district court in Oakland, Ca., on Monday, as Epic Games, the designer of the spectacularly popular game Fortnite, attempts to prove that the way Apple runs its App Store is discriminatory and anti-competitive.

The case is a landmark in defining and limiting the market power of platform companies that have increasingly come to act as gatekeepers to the Internet for thousands of aspiring smaller companies. The disparity in market power between the former and latter was underlined last week by the huge increases in revenue and profit reported by the likes of Apple and Amazon (NASDAQ:AMZN) in the first quarter.

The case starts less than a week after the EU’s antitrust authorities ruled that Apple had abused its position as operator of the app store to the detriment of other companies engaged in streaming, such as Spotify (NYSE:SPOT).

Separately, Nikkei reported that Apple is planning to cut production of Air Pods by between 25% and 30% this year in response to loss of market share to cheaper competition.

2. EU ends travel ban

The European Union is to end a year-long ban on non-essential travel to the bloc that it put in place to stop the spread of Covid-19.

The European Commission proposed to allow travel from countries that have low infection rates, as well as to allow visits by fully-vaccinated people. The measures will go some way to rescuing a summer tourism season that has huge economic importance for southern Europe in particular.

The move also reflects a broader increase in confidence that the bloc is bringing its epidemic under control as the pace of vaccinations picks up. Germany, the bloc’s biggest economy, vaccinated over 1 million people on both Thursday and Friday. The EU now expects to have at least 70% of its population immune to the disease by the end of August, a month earlier than previously expected.

3. Stocks set to open higher

U.S. stock markets are set to start the month in positive tone, as participants buy the dip that marked the end of April trading.

By 6:30 AM ET (1030 GMT), Dow Jones futures were up 152 points, or 0.5%, while S&P 500 futures were up 0.3%. Nasdaq 100 futures were up 0.1%.

Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) will be in focus after the company reported a swing back to profit in the first quarter at the weekend. Buffett’s lieutenant Charlie Munger pitched in with some salty comments on the vices of SPACs and Bitcoin, calling the rise of cryptocurrencies “disgusting and contrary to the interests of civilization.”

Estee Lauder (NYSE:EL) heads the day’s early earnings releases, amid anticipation of strong guidance as the cosmetics industry prepares to gain from the reopening of social and business life.

Loews (NYSE:L), Wynn Resorts (NASDAQ:WYNN), shale oil producer Diamondback (NASDAQ:FANG) Energy and pipeline operator Williams (NYSE:WMB) are also due to report.

4. Tesla’s German factory faces delay

Another stock likely to be in focus will be Tesla (NASDAQ:TSLA), after the German auto trade publication Automobilwoche reported that its factory outside Berlin is facing fresh delays to the start of production.

Automobilwoche said CEO Elon Musk had given the team building the plant another six months to start operations, something that puts the start of mass production back to January 2022. The company is still waiting for final permits to build parts of the Gigafactory.

Separately, Reuters reported that Tesla is expanding its government relations team in China to deal with growing regulatory scrutiny there.

5. Oil eases off as buyers take a holiday

Crude oil prices eased but other commodity prices remained relatively firm, as the holiday in much of the world took buyers away from their desks.

By 6:30 AM ET, U.S. crude futures were down 0.2% at $63.47 a barrel while Brent futures were down 0.4% at $66.46.

Commodity Futures Trading Commission data on Friday had shown net speculative long positions in crude falling to their lowest level since November, although overall positioning remained bullish with net adds to long positions in refined products, notably gas oil. The biggest individual position increases were seen in sugar, coffee, wheat and copper, however.

Epic v Apple, EU Travel, Tesla Delay - What's Moving Markets

Related Articles

Weekly Comic: Cheers! It's Springtime for Sterling
Weekly Comic: Cheers! It's Springtime for Sterling By - May 19, 2021

By Geoffrey Smith -- The rain may be incessant but in every other sense, the clouds over the U.K. economy appear to be finally lifting.   Lockdown restrictions on...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email