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Apple's latest iPhone launch to push UK inflation numbers into the shade

Day ahead includes the launch of Apple Inc's iPhone 8, the August UK inflation numbers, and first quarter results from FTSE 100 equipment hire firm Ashtead Group
iPhone
Just over ten years on from its original phone launch in January 2007, Apple will unveil the iPhone 8

Ahead of the latest Bank of England Monetary Policy Committee meeting on Thursday, the latest Office for National Statistics numbers for UK inflation should attract attention on Tuesday, although undoubtedly the launch of Apple Inc’s (NASDAQ:AAPL) will see the most interest.

Just over ten years on from its original phone launch in January 2007, Apple will unveil the iPhone 8, with shareholders hoping for more fireworks than they got with the evolutionary iPhone 7 of a year ago.

Expected features include an OLED screen, camera upgrades and wireless charging, while the operating system is reported to include a new biometric authentication mechanism, Face ID, that uses sensors that can recognize a user looking at the display.

Leaks at the weekend also reported that there will also be a top-of-the range model, named the iPhone X, which will have a rumoured price tag of close to US$1,000.

Inflation to tick higher

The spiralling costs of mobile phones aside, the UK consumer price index is expected to see a modest increase in August, with headline inflation having surprised by holding steady at 2.6% in July, and prices then actually falling month-on-month by 0.1%.

Graham Spooner, investment research analyst at The Share Centre thinks it is clear that the falls in sterling since the June 2016 Brexit vote are not having the inflationary effect that many economists expected.

However, he pointed out, the pound has fallen again since this June's UK general election and that may lead to a bigger rise in inflation next year.

Ashtead seeing Trump boost

On the corporate front, FTSE 100 listed equipment hire firm Ashtead Group will deliver its first quarter numbers on Tuesday.

The firm has been performing well in recent times, especially in the US, and with President Trump’s hoped for infrastructure boost and more general construction spending expected to remain strong, it should continue to benefit.

Ashtead’s fourth quarter results in June showed an 11% rise in rental revenue and the company said the spring had seen a good increase in fleet on rent, and a positive update from a US peer in July also provided a boost..

Further capital spending is expected in the new financial year so any update on that will also be of interest to the market as a signal of Ashtead’s confidence on future activity levels.

Tuesday September 12:

Finals: InnovaDerma PLC (LON:IDP); Murgitroyd Group PLC (LON:MUR), TyraTech Inc (LON:TYR), Vernalis plc (LON:VER)

Interims: Ashtead Group PLC (Q1) (LON:AHT), ADES International Holding PLC (LON:ADES),  Flowtech Fluidpower PLC (LON: FLO), Goals Soccer Centres PLC (LON:GOAL), Hilton Food Group PLC (LON:HFG), Hydrogen Group PLC (LON:HYDG), IQE plc (LON:IQE), JD Sports Fashion PLC (LON:JD.), Manx Telecom PLC (LON:MANX), Midwich Group Plc (LON:MIDW), SafeCharge International Group Limited (LON:SCH), Smart Metering Systems PLC (LON:SMS), STM Group Plc (LON:STM), Tasty Plc (LON:TAST), TP Group PLC (LON:TPG)

Economic data: UK CPI, RPI, PPI, HPI inflation


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