Category: Market News

Carr’s Group plc (LSE:CARR) has successfully completed its £70 million share buyback initiative, finalizing the Tender Offer on 19 June 2025. As a result, the company will acquire and cancel 42,944,785 of its Ordinary Shares—equivalent to roughly 45.4% of its total share capital. Following this reduction, the company’s voting share count will drop to 51,638,052, a change that will affect shareholder interest calculations under the FCA’s regulations.

This substantial buyback highlights Carr’s proactive approach to financial structuring and reflects a strategic effort to streamline its capital framework, which could enhance its overall market competitiveness.

Looking ahead, Carr’s Group presents a complex financial picture. While profitability challenges persist, they are offset by robust technical indicators and favorable corporate developments. The company’s ongoing strategic overhaul and commitment to delivering shareholder value remain key strengths, although concerns around valuation linger due to current negative earnings.

About Carr’s Group plc

Carr’s Group plc is an agriculture-focused manufacturer known for producing high-quality, scientifically backed livestock supplements. These include feed licks, mineral blocks, bagged supplements, and boluses. The company operates production facilities across three nations and distributes its products under five well-established global brands, reaching customers in over 20 countries.

Stocks showed little change after the Federal Reserve kept interest rates steady but signaled that cuts could still come later this year. Investors focused on Fed Chair Jerome Powell’s remarks warning that the impact of heightened U.S. tariffs has yet to be felt. Meanwhile, tensions escalated in the Middle East as Israel and Iran exchanged fresh airstrikes, with markets awaiting clarity on whether President Donald Trump will involve the U.S. in the conflict.

Markets Steady Amid Fed Decision

The S&P 500 closed nearly flat on Wednesday as markets digested the Fed’s decision to hold rates at 4.25%-4.5%. The Nasdaq edged up 0.1%, while the Dow Jones slipped 0.1%. Underlying concerns over the Middle East persisted.

Middle East Conflict Intensifies

On Thursday, Israel struck a major Iranian nuclear facility in Arak, while Iranian missiles targeted an Israeli hospital. The weeklong violence marks the worst escalation yet, with Israel targeting Iranian nuclear sites and military leaders, and Iran retaliating with attacks killing at least two dozen civilians.

President Trump remained ambiguous about U.S. involvement, saying, “nobody knows what I’m going to do,” while also noting that Iranian officials had sought talks but “it’s a little late.” Trump faced criticism from some supporters urging the U.S. to avoid entering another Middle East war.

Oil prices rose modestly on fears that the conflict could disrupt critical crude shipping lanes.

Fed Signals Cautious Path on Rates

The Fed kept rates unchanged but maintained projections for a 50 basis-point cut in 2025, consistent with previous forecasts. However, it slowed the pace of expected rate cuts for 2026 and 2027, indicating a potentially prolonged battle to rein in inflation.

Powell warned that Trump’s tariffs might soon cause a “meaningful” increase in consumer prices. He also emphasized the uncertainty around future rate paths, as economists expect tariffs could reignite inflation, weaken labor demand, and slow growth.

The Fed now expects inflation to end 2025 at 3%, growth to slow to 1.4%, and unemployment to rise slightly to 4.5%, suggesting a period of modest stagflation ahead.

Bank of England Decision Looms

Attention shifts to the Bank of England on Thursday, where rates are expected to remain at 4.25%. Inflation data showed a slight cooling in May to 3.4% year-on-year, still above the BoE’s 2% target. Monthly inflation ticked up 0.2%, down from March’s sharp rise. Analysts expect the BoE to carefully weigh recent inflation trends and trade developments before adjusting policy.

Trump Pushes Stablecoin Bill

Separately, Trump praised Senate approval of the GENIUS Act, a bill to regulate stablecoin cryptocurrencies, urging the House of Representatives to pass it swiftly. The legislation aims to set reserve requirements and transparency rules for stablecoin issuers, positioning the U.S. as a leader in digital assets. Stablecoins are cryptocurrencies pegged to traditional currencies like the U.S. dollar, widely used for crypto transactions and payments.

European equities declined on Thursday as growing speculation of potential U.S. intervention in the Middle East kept investors cautious ahead of several key central bank meetings.

By 07:15 GMT, Germany’s DAX index fell 0.7%, France’s CAC 40 dropped 0.7%, and the U.K.’s FTSE 100 declined 0.4%.

Rising Concerns Over U.S. Entry into Israel-Iran Conflict

Israel and Iran continued exchanging airstrikes on Thursday, with investor anxiety rising over the possibility that the United States might join Israel’s campaign against Iranian nuclear and missile sites. Such a move would significantly escalate the conflict and destabilize the region.

President Donald Trump added to the uncertainty on Wednesday, stating, “I may do it. I may not do it. I mean, nobody knows what I’m going to do,” when asked about U.S. involvement. He also noted, “Iran’s got a lot of trouble, and they want to negotiate.”

Bloomberg reported Thursday that senior U.S. officials are preparing for a possible strike on Iran as soon as this weekend, though the situation remains fluid.

In response, Iran’s Supreme Leader Ayatollah Ali Khamenei dismissed Trump’s earlier call for Iranian surrender, warning of “irreparable damage” should the U.S. intervene militarily. He affirmed, “The Iranian nation will not surrender.” Iran maintains its nuclear program is for peaceful purposes, despite the International Atomic Energy Agency’s recent declaration of Tehran breaching non-proliferation obligations for the first time in two decades.

Federal Reserve Holds Rates; Eyes Turn to European Central Banks

The Federal Reserve left its benchmark interest rate unchanged at 4.25% to 4.5% on Wednesday, as expected. Chair Jerome Powell reiterated a cautious stance on future rate cuts, highlighting inflation risks from Trump’s trade tariffs. The Fed still projects two more rate cuts in 2025 but trimmed expectations for 2026.

U.S. markets were closed Thursday for the Juneteenth holiday, shifting attention to upcoming monetary policy decisions in Europe. Norway, Switzerland, and the United Kingdom are set to announce policy moves soon.

The Bank of England is widely expected to keep rates steady, with markets focused on the vote split and forward guidance. Most analysts predict a rate cut in August.

The Swiss National Bank is likely to cut rates again, potentially moving back into negative territory, while Norway’s Norges Bank is expected to maintain its current stance.

Corporate Updates: Vodafone Names New CFO; Frasers Group Withdraws from Revolution Beauty Deal

European economic data and corporate earnings were limited. Vodafone (LSE:VOD) announced the appointment of Microsoft executive Pilar López as Chief Financial Officer, effective October 1. She will succeed Luka Mucic, who is stepping down.

Frasers Group (LSE:FRAS) confirmed it will not pursue an offer for British cosmetics retailer Revolution Beauty (LSE:REVB).

Oil Prices Rise Amid Conflict Concerns

Oil prices gained on Thursday amid worries that U.S. involvement in the Iran-Israel conflict could disrupt regional energy infrastructure.

At 03:15 ET, Brent crude futures climbed 1% to $77.47 per barrel, while U.S. West Texas Intermediate rose 1.1% to $74.31 per barrel.

Goldman Sachs estimated a geopolitical risk premium of about $10 per barrel is justified, given reduced Iranian supply and the threat of broader disruptions potentially pushing Brent crude above $90 per barrel.

The U.S. dollar inched higher on Thursday, supported by safe-haven demand as tensions in the Middle East escalate shortly after the Federal Reserve’s recent policy meeting.

At 04:25 ET (08:25 GMT), the Dollar Index—which measures the greenback against six major currencies—rose 0.1% to 98.585. This puts it on track for a weekly gain of 0.9%, marking its best weekly performance since late January.

Safe-Haven Dollar Boosted by Middle East Conflict

Fresh air strikes between Israel and Iran continued on Thursday, fueling market speculation that U.S. involvement under President Donald Trump could be imminent in the ongoing conflict now entering its seventh day. Trump told reporters Wednesday that “nobody knows what I’m going to do” regarding U.S. entry into the fray. He also hinted at a missed opportunity for negotiations with Iranian officials.

Analysts at ING noted, “Geopolitical risks combined with elevated oil prices are external to the U.S., keeping the dollar more attractive than energy-dependent safe havens such as the euro.” They added, “Upside risks for the USD remain.”

The Federal Reserve held interest rates steady on Wednesday as expected, but Chair Jerome Powell cautioned that inflation pressures could rise over summer as Trump’s tariffs begin to affect consumers. While the Fed’s projection of two rate cuts in 2025 may sound dovish, ING pointed out the central bank appears less concerned about growth and unemployment.

Euro Faces Pressure, Poised for Weekly Loss

In Europe, the euro slipped 0.2% against the dollar to 1.1465, hitting a one-week low earlier in the session. It’s on track for its largest weekly drop since February, driven largely by geopolitical worries.

ING’s outlook suggests EUR/USD could decline further amid these risks, with a near-term target of 1.140. However, they cautioned that unless geopolitical tensions lead to sustained commodity price shifts, such effects are likely temporary. “We expect buyers to return to EUR/USD dips once de-escalation signs appear,” they added.

Other Currency Moves Ahead of BoE Decision

The British pound fell 0.1% to 1.3410 ahead of the Bank of England’s policy announcement later Thursday. The BoE is widely expected to keep rates unchanged after a 25 basis point cut to 4.25% in early May. Investors will focus on the vote split and forward guidance, with market expectations pointing to two additional rate cuts before year-end.

USD/CHF climbed 0.1% to 0.8185 following the Swiss National Bank’s 25 basis point rate cut to 0%, opening the door to possible future negative rates. The SNB said the move counters reduced inflationary pressures seen since last quarter.

Asia-Pacific FX Update

In Asia, USD/JPY gained 0.1% to 145.31, with limited safe-haven demand for the yen. USD/CNY held steady at 7.1912 ahead of the People’s Bank of China meeting later this week. Meanwhile, AUD/USD dropped 0.6% to 0.6473 after data showed unexpected weakness in Australia’s May labor market.

UK equities opened lower on Thursday amid cautious sentiment ahead of the Bank of England’s expected decision to hold interest rates steady. Investor nerves were also heightened due to ongoing speculation about potential U.S. military action in the Middle East.

By 07:19 GMT, the FTSE 100 index had slipped 0.4%, while the British pound weakened 0.2% against the U.S. dollar, trading just above 1.34. European markets followed suit, with Germany’s DAX down about 0.7% and France’s CAC 40 retreating 0.6%.

Middle East Tensions Escalate

Israel and Iran exchanged air strikes on Thursday, intensifying regional hostilities. Meanwhile, a Bloomberg report indicated that senior U.S. officials are preparing for a possible strike on Iran as soon as this weekend, though the situation remains fluid.

Vodafone Names Microsoft Executive as CFO

Vodafone Group (LSE:VOD) revealed that Pilar López, a senior executive from Microsoft (NASDAQ:MSFT), will join as Chief Financial Officer starting October 1, 2025. She will succeed Luka Mucic, who had announced his departure earlier this year on May 7.

Frasers Group Withdraws Interest in Revolution Beauty

Frasers Group (LSE:FRAS), owned by Mike Ashley, confirmed it will not pursue a bid for Revolution Beauty (LSE:REVB), a British cosmetics company facing financial difficulties. Following the announcement, Revolution Beauty’s shares plunged more than 21%, while Frasers Group shares declined 1.5%.

Whitbread Q1: UK Softness Offset by Strong German Growth

Whitbread PLC (LSE:WTB) reported mixed first-quarter results for fiscal 2026. While Premier Inn’s UK accommodation revenue fell 2% year-on-year and like-for-like sales dipped 3%, the company’s German operations delivered solid growth. Whitbread also cited limited visibility ahead due to ongoing economic and geopolitical uncertainties.

Hays Predicts £45 Million Profit as Recruitment Slows Globally

Hays Plc (LSE:HAS) forecasted a pre-exceptional operating profit of £45 million for FY 2025, attributing the slowdown to subdued activity in permanent recruitment markets worldwide. The firm noted that Q4, ending June 30, experienced weaker engagement from both clients and candidates amid persistent macroeconomic concerns.

XPS Pensions Posts Strong Full-Year Performance

XPS Pensions Group PLC (LSE:XPS) reported robust full-year results ending March 31, 2025, with revenues rising 18% to £231.8 million, in line with prior guidance. Adjusted EBITDA increased 27% to £69.7 million, surpassing analyst expectations, while its EBITDA margin improved by 2.2 percentage points to 30.1%. Dividend growth also outpaced forecasts.

Eli Lilly to Appeal UK Rejection of Alzheimer’s Drug Reimbursement

Eli Lilly (NYSE:LLY) announced plans to appeal a U.K. health agency’s decision denying reimbursement for its Alzheimer’s treatment Kisunla, continuing its efforts to gain market access.

Bitcoin (COIN:BTCUSD) showed little movement on Thursday, trading within a narrow range as ongoing concerns about potential U.S. involvement in the Israel-Iran conflict kept investors cautious.

Market sentiment was further subdued by cautious remarks from the Federal Reserve, which opted to maintain interest rates without signaling any imminent rate cuts. The Fed also lowered its expectations for rate reductions in 2026, reinforcing a more hawkish stance.

By 01:27 ET, Bitcoin had dipped slightly by 0.3% to $105,124.1, continuing to fluctuate within a band of roughly $103,000 to $108,000 over the past week—largely shaped by renewed tensions in the Middle East.

A Bloomberg report on Thursday revealed that U.S. officials are preparing for the possibility of military action against Iran in the near future, though no final decision has been made. This news triggered risk-off moves across global markets, including losses in cryptocurrency.

Former President Donald Trump’s comments on the situation offered little clarity about potential U.S. military involvement. Meanwhile, Iran has consistently warned against direct U.S. engagement.

Trump Praises Stablecoin Legislation, Urges Swift Passage

Trump expressed support for the recent Senate approval of the GENIUS Act, legislation designed to regulate stablecoins. He urged the House of Representatives to approve the bill quickly and without amendments.

“The House will hopefully move LIGHTNING FAST, and pass a ‘clean’ GENIUS Act. Get it to my desk, ASAP,” Trump wrote on social media.

Although the bill’s progress boosted some crypto stocks, notably Circle Internet Group Inc (NYSE:CRCL), it did not significantly lift overall market confidence. Circle’s USDC and Tether’s USDT remain the leading stablecoins, vital for many crypto transactions.

Altcoins Drift Lower Amid Fed Caution

Other cryptocurrencies followed Bitcoin’s downward drift, pressured by the Fed’s cautious outlook. The central bank held rates steady at 4.25%–4.5%, with Chair Jerome Powell emphasizing a data-driven approach to any future monetary easing.

Powell reaffirmed the possibility of two rate cuts in 2025 but trimmed the expected reductions in 2026—a move seen as relatively hawkish. He also cautioned that Trump’s proposed tariffs could increase inflation pressures, reducing the likelihood of rate cuts.

Risk assets broadly retreated after these comments, dragging crypto prices down as well.

Ethereum, the world’s second-largest cryptocurrency, fell 0.5% to $2,525.37, while XRP held steady near $2.17. Cardano and Solana both declined by over 2.5%. Meme coins like Dogecoin slipped 0.3%, and $TRUMP token lost 1.3%.

A group of Democratic lawmakers from Texas has formally requested that Tesla (NASDAQ:TSLA) delay the planned rollout of its robotaxi service in Austin. The lawmakers’ letter, sent Wednesday, asks Tesla to hold off on the launch until September, when updated autonomous vehicle regulations come into force.

Tesla CEO Elon Musk had tentatively set the unveiling for this Sunday, but the lawmakers emphasized that postponing the launch would better ensure public safety and help foster trust in Tesla’s autonomous driving operations.

They argue that aligning the launch with the new legal framework will serve the community’s interests and support responsible deployment of self-driving technology.

Litigation Capital Management (LCM) (LSE:LIT) has disclosed a recent High Court ruling against one of its funded clients in a commercial litigation case, resulting in a £5.0 million investment write-down. The company is currently assessing the judgment and exploring possible responses. Alongside this, LCM provided a trading update revealing modest cash realisations during the second half of the fiscal year and a notable rise in net debt to A$73 million.

Due to ongoing uncertainty in the US litigation finance environment and related political factors, LCM has decided to suspend active marketing efforts for its Fund III, with plans to recommence fundraising activities in late 2025 or early 2026. Despite the recent trial loss, LCM remains confident in the underlying strength of the dispute finance market and its distinctive business model.

Financially, LCM faces headwinds from declining revenues that have affected growth projections. Technical indicators reflect bearish momentum, while valuation concerns persist, highlighted by a negative price-to-earnings ratio, even though the company offers a reasonable dividend yield. The recent legal setback weighs on market sentiment but does not significantly impact the overall portfolio’s performance.

About Litigation Capital Management

Litigation Capital Management (LCM) is an alternative asset manager specializing in global dispute finance. The firm operates through two main channels: direct investments from its permanent capital and third-party fund management. Its investment approach includes single-case funding, portfolio funding, and acquiring legal claims. Revenue streams come from direct investment returns and asset management performance fees. Headquartered in Sydney, LCM also maintains offices in London, Singapore, and Brisbane, and trades on AIM under the ticker LIT.