Apple's earnings disappointed with net profit of $13.1bn, or $13.81 per diluted share, flat on the year. Net revenue was $54.5bn compared to $46.3bn a year ago, and Apple sold 47.8m iPhones in the fourth quarter. Both numbers were below expectations, reviving fears that the US smartphone market has matured and that the iPhone's popularity has peaked (Financial Times). Shares in Apple fell more than 8 per cent after hours. The S&P 500 had closed up 0.15 per cent at 1,494.81, sitting 4.7 per cent below its all-time high. Apple's gross margin was 39 per cent, while revenues from its Chinese business were up 26 per cent on the quarter and 67 per cent on the year (Apple statement). The company now has $137bn of cash on its balance sheet, equal to roughly a third of its market capitalisation, and made an average of $145.6m in profit per day in the fourth quarter. The House voted to suspend the debt ceiling until May 19. Approved with 285 votes to 144, the bill will also automatically authorise to increase the debt limit by the amount of borrowing needed by the Treasury from now until then, allowing House Republicans to avoid voting for a formal increase (Financial Times). In return for the ceiling suspension, the bill requires the Senate to pass a budget, a feat it has not managed during the past three years, by the middle of April (Wall Street Journal). Netflix surprised analysts by posting a $8m profit, or 13 cents per share, in the fourth quarter. It had been forecast to post a loss of 13 cents a share. Netflix had 27.15m streaming customers in the US at the end of 2012, gaining 2.05m in the quarter and beating its own prediction for subscriber growth (Reuters). Shares in the company rose more than 25 per cent in after-hours trading. Neel Kashkari is leaving Pimco to consider a run for office in California. Kashkari, once the public face of the Tarp bailouts and latterly head of global equities at the Pacific investment manager, could stand as a Republican. California's next election for governor is in 2014, and it next elects a US senator in 2016 (Wall Street Journal). A jury found Goldman was not negligent in how it arranged the sale of Dragon Systems Inc in 2000. The $580m deal collapsed 13 years ago after the buyer, Lernout & Hauspie, was consumed by an accounting fraud, leaving Dragon's founders with worthless shares (Bloomberg). Accountants offering tax advice do not have legal privilege in the UK, according to a ruling by the country's supreme court. Prudential had argued that it could withhold certain details of a 2004 avoidance scheme from the tax authority because documents contained advice from accountants. Granting privilege to the profession is a matter for Parliament to decide, the court said (Financial Times). India's economy: it never inflates but it pours. Morgan Stanley, swearing, and subprime. Derivatives regulation: European Parliament sighting! (Research) career advice: "Try writing the first paper on some topic, not the tenth, and never the 50th." China: "on average, the rate of worker deaths is five times greater at connected companies than at similar companies that lack political connections."