— U.S. Retail Sales Rise; German AI Defense Firm Raises €200M; Lazard’s Incoming CEO Sets Bold Goals; Arm Shares Surge on IPO; Apple Develops Non-Invasive Glucose Monitor; Crude Oil Tops $90 Again; U.S. Housing Payment Costs Soar 56%
1. U.S. Retail Sales Rise
The U.S. Commerce Department reported today that total retail sales in August rose 0.6% month-on-month, reversing declines from the previous two months. Excluding gasoline, sales increased by 0.2%.
Another data set showed the Producer Price Index (PPI) rose 0.6% month-on-month, mainly due to a 20% spike in oil prices. Excluding gasoline volatility, the overall inflation outlook remains relatively stable.
While consumer spending power remains resilient, high prices continue to weigh on household budgets.
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2. German AI Defense Firm Raises €200 Million
German defense tech company Helsing has raised €209 million in new funding.
The round was led by venture capital firm General Catalyst, with Swedish defense company Saab AB joining as a strategic investor.
The funds will support Helsing’s expansion in France, Germany, and the UK, as well as its AI defense technology R&D.
Founded in 2021, Helsing previously received investment from Spotify founder Daniel Ek.
Saab and Helsing have secured a contract with the German Defense Ministry to upgrade AI electronic recognition systems for 15 fighter jets.
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3. Lazard’s Incoming CEO Sets Bold Goals
Peter Orszag, who will take over as CEO of Lazard next month, stated in a letter to employees that he aims to double the company’s revenue and net profit by 2030.
With a 175-year history, Lazard is positioning for aggressive growth. The 54-year-old Orszag emphasized ambition for the future.
Mark McMaster, a 35-year veteran of the company, will remain as Global Head of M&A.
Orszag wrote that Lazard must seize opportunities in untapped industries and product areas while strengthening existing capabilities.
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4. Arm Shares Surge on IPO
Today, SoftBank’s chip designer Arm Holdings officially went public, with shares soaring as much as 22%.
Arm sold 95.5 million American Depositary Shares, raising $4.87 billion and reaching a market cap of $62 billion.
During the pricing process, shares were oversubscribed. Although underwriters suggested pricing above the range, Masayoshi Son opted for caution.
Arm’s IPO is the largest since Rivian’s $13.7 billion debut in October 2021, and among the biggest tech listings in recent years.
Its successful IPO is expected to set a positive precedent for other upcoming tech listings.
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5. Apple Develops Non-Invasive Glucose Monitor
Apple has reportedly appointed Tim Millet to lead the development of its non-invasive blood glucose monitoring team.
Millet replaces former team leader and scientist Bill Athas, who passed away late last year.
At this week’s product launch, Apple introduced faster processors but no new health features. In recent years, Apple Watch has added blood oxygen and temperature sensors.
Apple hopes to introduce blood pressure and glucose tracking features in the coming years.
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6. Crude Oil Tops $90 Again
WTI crude rose as much as 2.2% today, breaking through the $90 mark. Brent crude also climbed 1.9% to $93.69, the highest since November.
Last week, Saudi Arabia and Russia extended their production and export cuts. The spike in energy prices drove August CPI above expectations, putting pressure on the Federal Reserve.
Many analysts expect oil prices to soon surpass $100 per barrel.
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7. U.S. Housing Payment Costs Soar 56%
Freddie Mac reported today that the average 30-year fixed mortgage rate rose from 7.12% last week to 7.18%.
Rates have hovered above 7% for the past five weeks. A Realtor.com survey found that 60% of buyers cite low housing inventory as their biggest challenge.
Based on a $600,000 mortgage, monthly payments now reach $4,065 — 56% higher than in early 2022.
Accelerating inflation and a strong economy may keep mortgage rates elevated.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.