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The Financial Conduct Authority (FCA) is seeking feedback on its proposals to enhance transparency in the UK’s cryptocurrency markets, focusing on admissions, disclosures, and market abuse prevention. The FCA emphasizes the need for stronger controls among firms to mitigate risks and reduce fraud, while reminding consumers of the high-risk nature of crypto investments. Feedback is open until 14 March 2025, as the FCA aims to establish a balanced regulatory framework.
UBS Group AG has adjusted its holdings in Dalata Hotel Group, surpassing a 4% threshold in voting rights through financial instruments. This strategic move may influence Dalata's market positioning and reflects a shift in investor confidence. The company, known for its premium hospitality services, has a current market cap of £791.4M and a year-to-date price performance of 0.65%.
EUR/GBP and EUR/USD are experiencing rallies, while GBP/USD is under pressure ahead of the Bank of England's rate decision. EUR/USD has stabilized around $1.0454, targeting the $1.055 area, while GBP/USD faces resistance near $1.2715-$1.275 and is likely to test the $1.2617 low.
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European stocks opened mixed as German Chancellor Olaf Scholz lost a confidence vote, paving the way for early elections in February amid economic struggles. Meanwhile, Royal Mail's parent company is set to be sold to Czech billionaire Daniel Kretinsky, and shares of Canal+ fell 15.7% on its London debut. Confidence among U.K. manufacturers has dropped to a yearly low due to rising costs and economic uncertainty.
EUR/USD and GBP/USD are experiencing declines as the US dollar strengthens, while EUR/GBP is recovering from a multi-year low. EUR/USD is on track for its sixth consecutive day of losses, approaching early December lows, while GBP/USD faces pressure after being rejected by a resistance line.
IG
The stock market has experienced significant gains in 2024, with the FTSE 100 up 12% and the S&P 500 soaring 30%. Analysts predict continued growth in 2025, with the FTSE 100 potentially nearing 10,000 and the S&P 500 reaching 6,666, driven by expected GDP growth. Investors are advised to consider small- and mid-cap companies, particularly Bioventix, which shows promise in the biotech sector amid rising demand for its Alzheimer’s detection solutions.
UBS has maintained a "Neutral" rating on HSBC Holdings with a target price of 710 pence. Analyst Jason Napier noted that HSBC is contemplating divesting its private client business outside Hong Kong and the UK, aiming to concentrate on affluent clients in other markets, given the minimal earnings from regions like Mexico, Malaysia, and Indonesia.
In March 2020, European financial regulators recommended that banks cancel planned dividend payments to maintain capital and support the economy amid the Covid-19 pandemic. Major UK banks, including Barclays and HSBC, announced cancellations, leading to adjustments in index levels effective April 2, 2020. The timing of these adjustments affected the performance of index funds, with discrepancies noted between fund and index performance in March and April 2020.
UBS Group AG has acquired a 6.74% stake in Revolution Beauty Group PLC, indicating potential confidence in the company's market position and strategic direction. Revolution Beauty, known for its affordable and innovative cosmetics, has experienced a year-to-date price decline of 52.62%, with a current market cap of £48.39M.
Diageo PLC shares surged over 2% after UBS analyst Sanjeet Aujla upgraded the stock from Sell to Buy, raising the price target from 2,300p to 2,920p, anticipating a 12% growth. UBS highlighted the strong performance of Don Julio Reposado tequila and Crown Royal Blackberry whisky, predicting U.S. sell-out growth of over 3.6% in early 2025, despite a challenging market. The consensus rating for Diageo remains a Moderate Buy, with a target price of 2,790.58p, indicating a 7% upside.
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