Proactive Investors -
- FTSE 100 hit session low of 7,719.72 early on
- Wall Street seen up as debt ceiling talks continue
- Sage (LON:SGE) advances as upgrades follow strong interim results
Checked in
Burberry (LON:BRBY) could deliver fourth-quarter revenue growth ahead of the sector average, according to analysts at the Royal Bank of Canada who have hiked their target price for the luxury group to 2,400p from 2,200p, while retaining a 'sector perform' rating on the stock.
The analysts believe Burberry could achieve 14% growth compared to the sector average of 9% which, if delivered, “could mark an important milestone.”
Underlying improvements in the Asia Pacific market supported by China's reopening and momentum in South Korea and Japan, coupled with the EMEIA region continuing to benefit from local and inbound tourism, should aid revenue growth. Demand in the Americas, however, is expected to remain subdued, they added.
Burberry shares were trading at 2,533p, down 0.2%.
Digital assets "serve no useful social purpose"
The Treasury Select Committee has proposed bringing the trading of cryptocurrencies under existing gambling regulations, claiming that digital assets including bitcoin and ether offer “no intrinsic value and serve no useful social purpose, while consuming large amounts of energy and being used by criminals in scams, fraud and money laundering”.
In an extensive report filed to the House of Commons, the cross-bench committee, which exerts influence on policy, administration and spending, concluded that “cryptocurrencies pose significant risks to consumers, given their price volatility and the risk of losses.
How to regulate crypto has become a major source of debate across the UK, European Union and the US, which all have differing opinions on the matter.
In the Treasury Committee statement, member MPs warned of a “halo effect” if the government opts to regulate crypto trading as a financial survive “leading consumers to believe this activity is safe and protected, when it is not”.
“The events of 2022 have highlighted the risks posed to consumers by the cryptoasset industry, large parts of which remain a wild west,” said Treasury Committee chair Harriett Baldwin. “Effective regulation is clearly needed to protect consumers from harm, as well as to support productive innovation in the UK’s financial services industry.”
Some of London’s biggest movers
Risers
- Chaarat Gold Holdings Ltd (LON:CGH) - up 26% to 11.2p: Shares shot up following a non-binding letter of intent and an indicative term sheet from Xiwang International for a potential equity investment of US$250mln.
- Egdon Resources PLC (LON:EGRE) - up 86% to 4.3p: Egdon shot up after becoming the latest in a long line of companies waving goodbye to the UK public market after agreeing to be taken over. The deal values the AIM-listed UK onshore oil producer and explorer at £26.6mln, or a 96% premium to its valuation at the close of play on Tuesday.
Fallers
- Circle Property PLC (LON:CRC) - down 65% to 3.5p: Shares more than halved in value after it confirmed the planned cancellation of its AIM listing and said it expects to return just over 4p per share to investors in September.
- Watches Of Switzerland (LON:WOSG) - down 6% to 693p: The Rolex seller ticked lower after it said the “challenging trading environment” seen in the past half-year is expected to continue into the coming six months.
- British Land (LON:BLND) - down 5% to 358p: Shares fell due to a slump in property valuations brought on by high-interest rates and broader economic concerns.