It’s been a roller coaster ride for Bitcoin (BTCUSD) investors in the last six months. The crypto asset touched all-time highs of $126,223 in October 2025. While market participants were expecting the bull run to sustain, Bitcoin reversed sharply and currently trades lower by 46.8% at $67,704. While the steep correction might have created some panic, it’s important to note that deep correction after a big rally is not uncommon for Bitcoin. As an example, Bitcoin dropped from $69,000 towards the end of 202 ...

European stocks closed on a firm note on Wednesday, reacting to some encouraging earnings updates and economic data from the region, and on expectations of more monetary easing by a few central banks. Easing geopolitical tensions contributed as well to the positive mood in the .Soft inflation data from both France and the UK helped. Investors also reacted to reports of a leadership change at the European Central Bank. A Financial Times report said Christine Lagarde plans to leave the European Central Bank ...

Economic Outlook - The Bank of England is urged to implement quick interest rate cuts to alleviate the cost-of-living crisis and boost consumer spending and business confidence [1][2] - Trade unions support interest rate cuts, citing easing inflation as beneficial for working families, with expectations of further softening due to government support for energy bills and other costs [2] - Firms are looking for inflation easing to be accompanied by measures to reduce business costs, such as business rates reform, to stimulate economic growth [3] Inflation and Interest Rates - The Consumer Price Index (CPI) has dropped to 3.0%, the lowest level in nearly a year, indicating potential for interest rate cuts by the Bank of England [25][28] - Analysts predict a 25 basis point cut in interest rates at the next Bank of England meeting, with further cuts anticipated if inflation continues to decline [19][21][20] - Despite the drop in headline inflation, services inflation remains sticky, suggesting caution from the Monetary Policy Committee [22] Market Performance - The FTSE 100 index has reached new record highs, driven by gains in sectors such as mining, defense, and banking [6][15][28] - BAE Systems has reported a 10% increase in sales to £30.7 billion and a record order book of £83.6 billion, reflecting strong demand in the defense sector [23][10] - Glencore's revenue for 2025 increased by 7% to $247.54 billion, with adjusted EBIT falling less than expected, indicating resilience in the mining sector [16][17] Company-Specific Developments - BAE Systems has increased its dividend by 10% and expects sales growth of 7-9% for the current year, supported by rising global defense spending [23][13] - Glencore's performance improved significantly in the second half of the year, aided by stronger metals prices and higher copper output [17] - BAE's free cash flow is projected to exceed £1.3 billion, contributing to a reduction in net debt by 22% [13][24]

Core Viewpoint - The price of Bitcoin has decreased by 48% over the past four months, negatively impacting speculative altcoins like Solana, which is down 37% year-to-date and currently trades at $78, a 73% discount from its all-time high of $294 [1] Group 1: Solana's Current Situation - Solana recently reached a two-year low of $67, leading to a bearish outlook with a price target of $50 being more likely than a recovery to $250 due to significant downward momentum [3] - Market sentiment around Solana is overly negative, with some analysts suggesting it could potentially triple in value this year if conditions improve [1] Group 2: Contrarian Perspectives - A new investment thesis from Standard Chartered suggests that Solana is transitioning from a meme-coin centric blockchain to a stablecoin-centric network, which could drive significant growth [4] - Solana has recently surpassed Ethereum as the fastest-growing blockchain for stablecoins in terms of transaction volume and velocity, making it more attractive for micro-size stablecoin payments [5] Group 3: Future Projections - Standard Chartered forecasts that Solana could reach $200 this year, $400 next year, and potentially $2,000 by the end of 2030, indicating that current bearish sentiment may be exaggerated [6] - Prediction markets indicate a 44% chance of Solana hitting $150 this year, a 23% chance of reaching $200, a 14% chance of hitting $250, and a 10% chance of reaching $300 [7][8]

Core Insights - Coinbase is actively purchasing Bitcoin during a market downturn, indicating a bullish stance despite current price struggles [1] - Standard Chartered Bank has revised its year-end price target for Bitcoin downward, predicting further price declines in the near future [1] Group 1: Coinbase's Strategy - Coinbase announced its intention to "buy the dip" in Bitcoin and its own stock, reflecting confidence in the long-term potential of digital assets [1] - The exchange has repurchased $1.7 billion in shares since October, with an additional $2.3 billion available for future buybacks [1] - Despite the current volatility, Coinbase believes that the underlying technological advancements and adoption of crypto products remain strong [1] Group 2: Market Outlook - Bitcoin prices are currently struggling to stay above the $70,000 mark, with altcoins like Ethereum and Solana facing similar challenges [1] - Standard Chartered forecasts Bitcoin could drop to a low of $50,000, representing a potential decline of over 25% from recent levels, while Ethereum may fall to $1,400 [1] - The bank emphasizes the need for renewed ETF inflows to support a market recovery, suggesting that further capitulation is likely before new buyers emerge [1]

Group 1: Software Stocks - Retail investors are actively buying software stocks despite the current poor performance of the sector, with some analysts cautioning against this trend [2][11] - The sentiment around software stocks is mixed, with some believing the market has overreacted and presents buying opportunities, while others remain skeptical about the long-term viability of certain companies like Workday and Salesforce [11][14] - The AI trade is still in its early stages, causing anxiety among investors about potential job losses and market changes, but there is optimism about new job creation in the long run [12][19] Group 2: Consumer Staples - Consumer staples have been performing well, with companies like Coca-Cola reporting solid earnings, while Kraft's performance was disappointing [3][42] - McDonald's has seen strong US sales attributed to value offerings and marketing strategies, despite concerns about the impact of GLP-1 weight loss drugs on consumer behavior [46][61] - The company is focusing on value and affordability to attract lower-income consumers, which has been successful in recent quarters [49][52] Group 3: Memory Chips - Lenovo's CEO indicated that the memory chip shortage affecting hardware companies will continue into the year-end, echoing sentiments from Cisco's CEO [5][6] - This ongoing shortage is seen as beneficial for memory chip companies like Sandisk, which are experiencing stock price increases [6] Group 4: Economic Outlook - The economy is showing signs of strength, with corporate earnings exceeding expectations and a robust jobs report indicating private payroll growth [23][26] - Analysts suggest that the current economic conditions favor cyclical and defensive value stocks, with the value trade up 4.5% year-to-date compared to a 1.5% decline in growth stocks [24][25] - There is a belief that the economy does not require further rate cuts, as current conditions do not indicate a downturn [28][29]

Group 1 - LSEG plans to develop an on-chain settlement service called the LSEG Digital Securities Depository to connect traditional and digital securities markets [1] - The service will facilitate trading and settlement of tokenized bonds, equities, and private market assets across multiple blockchain networks while remaining compatible with existing settlement platforms [1] - The first deliverable under this system is expected in 2026, pending regulatory approval [3] Group 2 - LSEG is under pressure from activist investor Elliott Management, which has acquired a stake in the company and is advocating for changes due to a more than 35% decline in the company's shares over the past year [2] - The company's stock has been affected by a broader selloff of global software stocks related to AI concerns, although it saw a slight increase of 0.9% on Thursday [2] Group 3 - Major British banks and financial institutions, including Barclays, Lloyds, NatWest Markets, Standard Chartered, and Brookfield, have expressed support for LSEG's initiative [4] - The initiative aims to create an ecosystem that allows participants to seamlessly transition between digital and traditional markets, accommodating various time zones and payment options [3]

Company Overview - Compass is a leading global contract caterer, serving 5.5 billion meals annually across more than 25 countries, and is recognized as a well-managed business [2] - The company derives approximately 75% of its revenues in U.S. dollars, highlighting its international operations [4] Currency Change Announcement - Compass announced it will change the currency of its share trading from sterling to U.S. dollars effective April 1, 2024, to align its trading currency with its reporting currency, thereby reducing foreign exchange volatility [1] - This move is part of a broader trend among British companies, with many now reporting in currencies other than sterling [8] Industry Context - The change in trading currency follows a recent adjustment in FTSE Russell's membership rules, allowing companies trading in dollars or euros to be considered for inclusion in the FTSE U.K. Index Series [5] - Other major companies, such as InterContinental Hotels Group, have also adopted this practice, indicating a shift in how British firms operate in global markets [6] Historical Perspective - The trend of companies reporting in foreign currencies is not new, with major firms like HSBC, AstraZeneca, and Shell having transitioned to dollar reporting in recent years [8][11] - Historically, Avis Europe was an early adopter of non-sterling reporting, having faced challenges in the past when attempting to report in the European Currency Unit [9][10] Market Reactions - The announcement from Compass has sparked discussions about the potential for more U.K. companies to follow suit and possibly list on the New York Stock Exchange, reflecting a growing trend of British firms seeking to align with global financial practices [4][13]

He had said previously that Britain should not be “in hock to the bond market”, raising concerns that a Left-wing led Labour government would raise spending and borrowing.Government borrowing costs rose sharply this year after the Mayor of Greater Manchester emerged as a leadership challenger to Sir Keir Starmer.Andy Burnham said he has “never said Britain should ignore the bond market” as he sought to address the concerns of investors.You can follow the latest political fallout here and stay up to date wit ...

Market Performance - European stocks showed a positive trend with the pan European Stoxx 600 climbing 0.89%, while the U.K.'s FTSE 100 gained 0.59%, Germany's DAX jumped 0.94%, and France's CAC 40 closed up by 0.43% [1] - Major European markets such as Austria, Denmark, Finland, and Spain closed higher, while Belgium, Greece, and Russia ended weak [2] Company Earnings and Movements - Burberry Group, IAG, and HSBC Holdings saw gains between 2% and 5.2%, while BP, Standard Chartered, and Rolls-Royce Holdings also moved up sharply [2][3] - Vinci reported stronger-than-expected results, with a full-year 2025 net income of €4.90 billion, up from €4.86 billion the previous year, leading to a nearly 10% increase in its stock price [5] - Stellantis plummeted 25% after announcing a €22 billion charge related to restructuring efforts and plans to sell its 49% stake in NextStar Energy [6] Sector Performance - In the German market, Siemens Energy climbed 4.3%, while Siemens Healthineers dropped more than 3% [4] - In France, ArcelorMittal gained about 4.75%, and Schneider Electric ended higher by 1%-2.3% [5] Economic Indicators - Germany's industrial production decreased by 1.9% month-on-month in December, reversing a previous rise, while exports increased by 4% and imports growth doubled to 1.4% [7][8] - France's foreign trade deficit increased to €4.8 billion in December, as imports grew faster than exports [9]