J.P. Morgan Australia FTM 25 Jun 26 Xero Limited; Australian housing: Shifting gears and More

Research evidence excerpt

J.P. Morgan Australia FTM 25 Jun 26 Xero Limited; Australian housing: Shifting gears and More

Asia Pacific Equity Research

Australia First to Market 25 June 2026

Top Stories

Xero Limited (Bob Chen) (XRO AU, OW)

Price increases announced for UK subscribers

XRO has announced changes to UK Business Edition pricing overnight. The changes will see increases of 5-13% at the upper-

tiers, but with the entry-level tier (Simple) unchanged at 7GBP/month. Changes will be effective for existing subscribers from 1

September 2026, and therefore reflected in 1H27 ARPU/AMRR, and a full period revenue impact in 2H27, consistent with the

prior year. We forecast +3% UK ARPU h/h, with effective price increases offset by the impact of MTD for Income Tax in the UK,

which will see more subscriber growth at the lower tiers.

Australian housing: Shifting gears (Tom Kennedy)

The Government now has the numbers to pass May’s Budget, including much-publicized housing reforms

History suggests removing negative gearing has little effect on rental inflation in the short-run

Global Research

Daily Economic Briefing (Alex Gallin)

Constructive June survey readings

The June DM flash PMIs improved, with the composite output index rising 0.8pt to 51.3. At this level, the survey is consistent

with growth close to trend through midyear (see today’s Focus). Services output rebounded from recent lows in the US, Euro

area, and Japan, while the UK services index fell again. Manufacturing output also continued to advance, led in part by the US,

where the manufacturing PMI approached a five-year high. The future output index took a reassuring step higher, with

manufacturing expectations continuing to outperform services. Employment remains the main soft spot in the surveys—despite