FINANCE
Sam Bankman-Fried, the founder of failed crypto exchange FTX, is set to go on trial this week in the US in what has been described as the “crypto trial of the century.” The founder faces seven counts, including wire and securities fraud, as well as money laundering. Last November, FTX and its sister hedge fund Alameda Research, imploded, with more than $8bn in customer deposits. All eyes will be on these fraud trials, set to take place in courts both in New York and Washington, which have prompted legal debate about the future of how finances are protected.
POLITICS
In another major case, Donald Trump’s civil fraud trial opens today in New York, which will put both the former US president and his family businesses under the spotlight. Not only could the case deal a big blow to Trump’s business interests and real estate portfolio, it may call into question his hopes as the front-runner for the 2024 Republican presidential nomination.
ECONOMY
The British economy is performing better than expected, according to revised figures from the Office for National Statistics (ONS). Gross Domestic Product (GDP), a standard measure for the size of the economy and a barometer for how well its performing, rose above pre-pandemic levels by the end of 2021, the ONS has revealed, much faster than previously thought. The news now counteracts a key attack line for Labour, ahead of a potential UK general election next year, which highlighted that Britain is the only G7 country still poorer than before the pandemic.
PROPERTY
First Meta’s London HQ, now Canary Wharf, offices are still unoccupied, and landlords are worried. Last week, property giant British Land announced that Facebook’s owner Meta had paid £149m to back out of a 20-year lease at a brand-new office development near London’s Regents Park. And Canary Wharf’s One Canada Square is struggling to attract tenants. Analysts predict that home working has reduced the use of London’s offices by 20% and with employers shrinking the size of their offices, London vacancy rates have soared to a 30-year high.
RETAIL
German premium footwear brand Birkenstock is targeting a valuation of up to $9.2bn in its initial public offering (IPO) in New York. The brand, which helped spark the ‘ugly shoe’ trend and is backed by private-equity firm L Catterton, has revealed that around 32.26 million shares, priced between $44 and $49 apiece, would be sold in the IPO by the company and its selling stockholders to raise $1.58 billion. This is according to a filing with the U.S. Securities and Exchange Commission.
CRIME
Almost 90 retail leaders, including the bosses of Tesco, Sainsbury’s, Boots and WH Smith, have written to the government demanding action on rising retail crime, in which violent criminals are “emptying stores”. The retailers, who also include the bosses of Aldi, Primark and Superdrug, are calling for the creation of a new UK-wide aggravated offence of assaulting or abusing a retail worker – as already exists in Scotland – which would carry tougher sentences and require police to record all incidents of retail crime and allow the allocation of more resources.
DEALS
One of the UK’s best known bathroom retailers, Victoria Plum, is understood to have been sold to AHK Designs, the owner of Beds.co.uk and furniture retailer Cox & Cox. City sources told Sky News that the deal was part of a pe-pack administration, with inflation in global freight costs and pressure on consumer spending impacted profitability and cash flow in recent months. The brand was put up for sale by its investment firm owners, Endless, who had owned the business since 2019.
MARKETS
Trading in options tied to the Vix volatility index – properly known as Wall Street’s “fear gauge” – is on course to hit a record volume this year, as cautious investors look to protect themselves from the risk of a sudden stock market reversal. The Vix shows expectations of volatility in the S&P 500 over the next month, and the bulk of the increase in trading this year has come from investors buying call options – a type of derivative that would pay off if the index spikes higher. The jump reflects the growing need for investors to hedge their positions amid a fragile stock market rally.
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