Proactive Investors -
- FTSE 100 hit session low at 7,747.09
- US stocks seek lower as debt ceiling breach looms
- Drahi increases stake in BT (LON:BT) to 24.5%, no bid planned
Crypto regulation approaching
Bitcoin was up 1.5% on Tuesday afternoon, back above $27k at $27,268 as the first global approach to regulating crypto assets was put forward.
The International Organization of Securities Commissions which regulate financial markets has unveiled an 18-point plan to put guardrails around crypto investing.
Susannah Streeter, head of money and markets, Hargreaves Lansdown (LON:HRGV) commented: ‘’This move by the international watchdog which represents authorities regulating financial markets around the world, is aimed at protecting investors but it will also propel crypto further into the mainstream.
"Bitcoin seems to have been bolstered by the news of this concerted effort to regulate the industry, rising by more than 2%. The cryptocurrency has gained 64% since the start of the year, largely recovering from the sharp falls it suffered in the back half of 2022. Despite this volatility, the IOSOC is clearly recognising that digital coins and tokens are here to stay which is why it’s pushing a global approach to governing this risky asset class."
Streeter added: "When FTX collapsed like a house of cards it sent shockwaves - not just through the crypto world - but also the wider financial system as the vast numbers of diverse firms owed money became apparent. The ripple effect sent a shiver through regulatory bodies and prompted this turning point from the IOSOC. It wants to apply the similar stringent rules governing the way equity and bond markets operate to the crypto-sphere covering requirements governing conflicts of interest, operational risks, treatment of market manipulation and the treatment of retail customers.
"This move by the international watchdog comes hot on the heels of MPs calling for the government to treat crypto investments as gambling. The need for regulation could not be clearer, and now the guardrails have been drawn up and now the pressure is growing on individual jurisdictions, including the UK, to come up with a concrete plan to regulate the market."
Round and round Mulberry
Mike Ashley is looking to promote himself to the board of luxury handbag maker Mulberry, sparking a potential battle.
According to the Telegraph newspaper, Ashley met with Mulberry’s chairman Chris Roberts and CEO Thierry Andretta in recent weeks to request a seat at the table, which is yet to be granted or denied.
Ashley, who owns 37% of Mulberry’s AIM-listed shares via Frasers Group, is said to have become frustrated by the lack of transparency surrounding Mulberry’s Asian business.
Singapore-based Malaysian billionaire Ong Beng Seng, and his wife Christina, own the majority 56% stake in Mulberry.
Mulberry (LON:MUL) signed a deal with Challice, Ongs’ company in Singapore, in 2017 which established a joint venture to expand the handbag maker in the Far East.
Ashley and his advisers are seeking clarity on how the venture operates, including how the Ongs benefit.
Shares in Mulberry have struggled since the collapse of House of Fraser in 2018, which acted as the main UK market for its handbags.
A look at some of today's movers
Fallers
Physiomics (LON:PYSM) - down 23% to 2p: Shares fell after a disappointing trading update. The firm, which uses mathematical models to help develop cancer treatments, has warned that its total income for the financial year ending in June 2023 is expected to fall more than 10% short of its previous guidance of £750k, landing at around £660k.
Trellus Health (LON:TRLST) - down 12% to 6.1p: Shares dropped 7% on a seemingly innocuous (though delayed) set of prelims. The company posted a fairly hefty underlying loss of US$8.1mln for the 12 months that ended 31 December 2022, although we are guided that this was in line with management’s expectations.
Risers
URA Holdings (LON:URAH) - up 20% to 2.53p: Shares jumped after the firm said it had raised £280,000 through an oversubscribed placing and subscription, issuing 14,000,000 new ordinary shares at a price of 2.00p per share. The fundraise was conducted at a 10% discount to the mid-market closing price on 19 May 2023, and falls within the company's existing authority to issue shares for cash on a non-preemptive basis.