Andreessen Horowitz sets up crypto outpost in London
Andreessen Horowitz, one of the biggest venture capital firms in the world, has said it will open its first crypto hub outside the US in London.
The company, controlled by billionaire Marc Andreessen said it planned to make a number of investments in UK-based crypto companies, and today announced its latest one, machine learning business Gensen. Andreesen Horowitz said its next annual crypto startup school would be hosted in London next year.
Managing partner Chris Dixson said: “We have been working with policymakers and regulators across the globe, and during our discussions it has become clear that the UK government sees the promise of web3, with Prime Minister Rishi Sunak suggesting the UK can become a hub of web3 innovation.
“UK authorities are also willing to work with the industry to create policies that incentivize startups to pursue decentralization.
“While there is still work to be done, we believe that the UK is on the right path to becoming a leader in crypto regulation. The UK also has deep pools of talent, world-leading academic institutions, and a strong entrepreneurial culture.”
UBS completes Credit Suisse deal
Swiss Banking giant UBS has completed the acquisition of longtime rival Credit Suisse, it announced this morning.
UBS agreed the emergency deal in March, after a collapse of confidence in Credit Suisse amid the biggest banking crisis in more than a decade.
In an open letter published in Swiss newspaper NZZ, UBS CEO Colm Kelleher said: “This is the start of a new chapter – for UBS, Switzerland as a financial centre and the global financial industry.”
The merger sparked fears of job cuts in London, Credit Suisse where employs 5,000 and UBS 6,000.
Mike Ashley’s Frasers’ Group buys £75 million stake in AO World
Frasers Group, the owner of Sports Direct, has bought a 19% stake in AO World, the online appliances retailer, for £75 million.
The retail group, majority-owned by entrepreneur Mike Ashley, also owns the Frasers department stores it is named after and the Jack Wills fashion chain. It said today it had been in talks with AO over “a strategic partnership” for the last two years.
CEO, Michael Murray, said:
“Frasers has long admired what John and the AO team have built, and we are delighted to have the opportunity to form a supportive, strategic partnership. AO is a fantastic business with a clear strategy which is leading the market in online-only electricals. Through this investment, Frasers will benefit from AO’s valuable know-how in electricals and two-man delivery, helping us to drive growth in our bulk equipment and homeware ranges. In turn, AO will have the opportunity to benefit from Frasers’ expertise and ecosystem.”
US inflation and rates decisions in focus, FTSE 100 seen higher
Wall Street believes the US Federal Reserve will pause interest rate hikes on Wednesday, although with inflation numbers due tomorrow the meeting’s outcome is far from certain.
May’s CPI print is forecast to fall to 4.1% from 4.9% previously, with core inflation excluding items such as food and energy down to 5.3% from 5.5%.
Hopes that the US is near the peak for interest rates helped the S&P 500 move into bull market territory last week following a rise of 20% since October’s low.
A select band of mega cap stocks is behind the S&P 500 improvement, while the tech-focused Nasdaq also finished higher for seven weeks in a row after Friday’s positive session.
European markets have been far more cautious, with the FTSE 100 broadly flat last week but forecast by CMC Markets to open 30 points higher at 7592 today.
Unlike the Federal Reserve, the European Central Bank is set to hike rates by another quarter point on Thursday with a further move expected in July. The Bank of England’s next interest rates decision is on 22 June.
Friday’s top stories
Good morning, here are a selection of Friday’s top stories:
- Home purchases are starting to fall through as a direct result of the extraordinary spate of turmoil in the mortgage market, brokers warned.
- Demand for central London offices has edged up, as property giant Landsec became the latest firm to make a fresh bet on employers upgrading to more ‘green’ workspaces.
- The Bank of England’s wave of rate hikes have only just begun to hit households, with the vast majority of the shock still to come, a leading economist warned today.
