Market Prognosis

A concise summary of the major macro events of the past 24 hours, and selected UK company-specific news.

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July 14, 2023

Crypto refuses to die

Macro & Overnight

As global investors factor in lower US inflation and a peak in rates, non-dollar risk assets become more interesting to allocate to. The Pound Sterling, gold, and UK equities fall into this bucket list.

Remember cryptocurrencies that were a fad Ponzi scheme that the SEC would eliminate? The demise of FTX confirmed this, right? Well, they are refusing to die. Yesterday’s ruling in the case against Ripple Labs suggests the SEC’s central claim that most cryptographic coins are securities will prove much more challenging to establish. Coinbase shares were up 24% yesterday, while the price of Ripple coin rose over 50%.

While the SEC has previously acknowledged that Bitcoin is NOT a security, its resistance to approving a spot Bitcoin ETF may now dissipate.

UK Company News

ITV is no longer in talks to acquire All3Media 

Johnson Service Group updated that workwear markets have remained relatively stable and, encouragingly, signs of new sales have become evident in recent weeks. HORECA volumes have continued to build, with some 8,500 rooms installed by Hotel Linen in the first six months of the year. It sees more certainty about costs in the short term. A more predictable cost base and current anticipated volume over the busy summer months give confidence it will report full-year adjusted operating profit slightly ahead of current expectations.

McBride, the supplier of private-label household and cleaning products, updated that results will report a return to profitability. Following the exceptional input cost inflation of the past two years, it is evident that there is a shift to private labels due to consumers’ growing preference for better value, high-quality private label products. It anticipates that adjusted operating profit will materially exceed current market expectations. Its liquidity, at £59.3m, is significantly higher than the minimum liquidity requirement of £15m applicable under the Group’s financing arrangements.

McBride and Johnson Service group identified that costs are more certain and revenues are ahead of forecast. 

Prognosticator 

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