Markets Defused aims to give an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- Royal Mail targeted by Wall Street short-seller
- Robinhood’s Bitstamp deal upped the ante in crypto
- Bitcoin advanced over $71,000
- Premier League has new financial controls
- Saleforce made a big bet on AI in London
- Humane set to sell after tepid reception for ‘AI pin’
Royal Mail targeted by Wall Street short-seller
Royal Mail owner International Distributions Services PLC (LSE:IDS) has reportedly been targeted by ‘short-selling’ Wall Street hedge fund Sessa Capital.
It effectively sees Sessa betting against the proposed board-recommended takeover by Czech billionaire Daniel Kretinsky’s.
The £3.6 billion takeover is already facing regulatory and governmental scrutiny, heightened by the current general election campaigning.
It is meanwhile reported that Kretinsky is set to meet with the UK's business secretary Kemi Badenoch to discuss the deal, whilst the government is expected to review the takeover under the National Security and Investment Act.
The matter could be further complicated should Labour win the election as, notably, the trade unions have been critical of the proposed deal.
Sessa Capital has a net short position equating to 0.83% of IDS’ shares.
Robinhood buys Bitstamp to up ante in crypto trading
Robinhood Markets Inc (NASDAQ:HOOD) has struck a $200 million deal to acquire cryptocurrency exchange Bitstamp for $200 million, to bolster the trading app’s crypto exposure.
It helps Robinhood accelerate its growth ambitions as it rolls out internationally, beyond the borders of the United States.
Robinhood recently entered the UK, and a more limited version of the app is available in Europe, whereas Bitstamp holds active licences for markets including the European Union, United Kingdom, United States, and Asia.
“The acquisition of Bitstamp is a major step in growing our crypto business,” Robinhood Crypto general manager Johann Kerbrat.
“Through this strategic combination, we are better positioned to expand our footprint outside of the US and welcome institutional customers to Robinhood.”
Bitstamp chief executive JB Graftieaux, meanwhile, added: “Bringing Bitstamp's platform and expertise into Robinhood’s ecosystem will give users an enhanced trading experience with a continuing commitment to compliance, security, and customer-centricity.”
The acquisition deal is expected to complete in the first half of 2025.
In New York, Robinhood stock was up $1.39 or 6.5% changing hands at $22.91.
Bitcoin advanced over $71,000
The price of Bitcoin (BTC) surged above $71,000, to its highest value in over two weeks.
It sees the leading cryptocurrency moving closer to retest its all-time high of $73,777 which was set in mid-March. Bitcoin is up 3.5% week-on-week.
The strong performance has followed January’s ETF breakthrough – in which the US Securities and Exchange Commission's (SEC) approved the first ‘spot’ bitcoin ETFs, which has spurred institutional buying interest.
Bitcoin is up nearly 70% in 2024 in the year to date.
Ethereum (ETH), the second-largest cryptocurrency, has also improved recently helped somewhat by a similar process to get ‘spot’ Ethereum ETFs approved in the United States.
The price of Ethereum is about 1% higher over the past 24 hours, with Eth changing hands at $3,850.
Premier League clubs agree new rules to control spending
England’s top football clubs continue to cajole the financial rules for the Premier League with a vote today ushering in a new trial aimed at being a better ‘financial fair play’ model.
The new frameworks, the Squad Cost Rules (SCR) and Top to Bottom Anchoring Rules (TBA), are intended to operate alongside the controversial existing Profitability and Sustainability Rules (PSR).
It comes in the same week that Manchester City – which separately faces 115 Premier League charges related to the league's financial rules – launched a new legal challenge against the league operator.
Earlier in the season, Everton FC and Nottingham Forest breached the PSR rules.
According to today’s proposals, the SCR aims to limit the amount clubs spend on their squads to 85% of their revenue and net profit/loss on player sales, whilst the TBA intends to be a pre-emptive measure to protect the competitive balance of the league.
"The TBA is a League-level anchor linked to football costs, based on a multiple of the forecast lowest central distribution for that season," the league explained.
With Manchester City’s legal challenge also underway, and its 115 charges due to heard in November, this season latest trial of financial fair play rules will no doubt be an important focus for football administrators in the coming year.
Salesforce is making a big bet on AI in London
Salesforce Inc (NYSE:CRM, ETR:FOO) has unveiled plans to make a big AI investment in London, reportedly pouring some $4 billion into UK-based operations, run out of the Blue Fin Building in Southwark.
The company, an SaaS behemoth which is best known for its Customer Relations Management software and tools, has been making a number investments in AI in the past year.
Its investments included putting money into AI voice specialist Eleven Labs.
“AI has the potential to drive major growth for UK businesses – with the UK AI market predicted to reach over $1 trillion by 2035,” Salesforce UKI chief executive Zahra Bahrololoumi said in a statement.
“To realize this opportunity, industry-leading experts must work together to develop innovative solutions and overcome obstacles,”
“By locating Salesforce’s first AI Center in London, we are sending a clear message to customers and partners on AI: we are deeply committed to working closely together so that you can reap the rewards of this transformative technology, while ensuring it is a force for good.”
Howard Dawber, London’s deputy mayor, meanwhile, added: “London is fast becoming one of the most important centres of AI businesses in the world, and we warmly welcome the decision by Salesforce to launch its pioneering UK AI Center in the capital.”
“This new UK AI Center will bring industry experts together to innovate and collaborate.
“It will provide training for Londoners to access the jobs and opportunities of the future and boost our economy as we continue to work towards a fairer and better city for everyone.”
Humane in sale talks after tepid reception for ‘AI pin’
Humane, the company behind the wearable AI ‘pin’ device, is in sale talks with HP and a number of telecoms companies – that’s according to a report by CNBC citing ‘a source familiar with the matter”.
It comes after the device, developed by former Apple designers, failed to wow consumers after its launch.
The AI Pin is intended to be worn on a shirt or jacket lapel, and aims to replace smartphones by allowing users to make calls, send texts, and perform search queries via voice control.
Priced at $699 with a $24 monthly data subscription through T-Mobile, the device has not had the positive breakthrough that its designers had hoped for, with consumer market demand described as “tepid”.
Humane has now teamed up with investment bank Tidal Partners, which is advising of potential deals.
The company, which previously raised over $200 million of capital, was backed by high profile tech entrepreneurs and investors including OpenAI’s Sam Altman and Salesforce chief executive Marc Benioff, whilst Microsoft and LG also back the company.