Escaping reality with Apple for $3,499
Macro & Overnight
With the debt ceiling drama over, the debate now moves to the consequences of the Treasury refilling its General Account. Although there is debate about the scale of its impact, the $500bn required in the near term will likely harm dollar liquidity.
Meanwhile, China has announced expansionary plans to stimulate its ailing real estate sector, adding a further spike to Japan’s ongoing equity market renaissance.
The Australian central bank has raised rates by another quarter point.
Apple launched its mixed reality headset to mixed reviews. The world might decide there are cheaper ways to leave reality behind than the expected $3,499 price tag.
UK Company News
Precision engineer Gooch & Housego said that its H1 revenue is up 31.7% at £71.3m and, with a steady reduction in order backlog, saw operating profit rise by 32.9% to £5.2m. It said that cost inflation persists but is being passed on with some time lag. Its order book remains solid and full-year expectations are unchanged.
AB Foods has agreed to the cash acquisition of milk testing specialist National Milk Records for £48m, an 85% premium.
Oxford Metrics, the sensing software company, saw revenue of £21.3m, up 69.6% profit before tax of £4.1m, an order book of £22.0m and continues to pursue M&A. (Note here).
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