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Standard & Poor’s downgrades UK rating outlook after government fiscal plan By Reuters

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© Reuters. FILE PHOTO: A general view of the Canary Wharf financial district in London, Britain, September 30, 2022. REUTERS/Maja Smijkoska

LONDON (Reuters) – Rating agency Standard & Poor’s cut its AA credit rating for Britain’s sovereign debt to “negative” on Friday from “stable” in response to the prospect of increased borrowing after the government’s financial statement last week.

Finance Minister Kwasi Quarting announced tax cuts of around £45 billion on September 23 as well as costly temporary support for household and commercial energy bills, sending sterling and gold markets into a tailspin.

The S&P – which ranks UK government debt higher than rivals Moody’s (NYSE:) and Fitch – said it sees UK public debt on an upward trajectory, contrary to previous expectations that it will fall as a share of GDP from 2023.

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“Our updated financial outlook is subject to additional risks, for example, if UK economic growth turns out to be weaker due to further deterioration in the economic environment, or if government borrowing costs increase more than expected, driven by market forces and monetary policy tightening,” he added.

Standard & Poor’s also forecast that Britain will enter a technical recession in the coming quarters and GDP will shrink by 0.5% in 2023.

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MicroStrategy is at its lowest level since 2020 after the sales were revealed

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(Bloomberg) — Shares of MicroStrategy touched their lowest level since August 2020 after the enterprise software company, which in recent years has been known as the largest buyer of bitcoin, revealed its first sale of the token.

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The stock fell 1.1 percent to $136.63 on Thursday, down 75 percent this year. Bitcoin rose less than 1% to around $16,590 and is believed to have fallen 64% since the start of the year.

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In a filing on Wednesday, MicroStrategy said it acquired approximately 2,395 Bitcoin between the beginning of November and December 21 through its subsidiary MacroStrategy, and paid out approximately $42.8 million in cash. It then sold 704 of the tokens on Dec. 22 for a total of about $11.8 million, citing tax purposes, before buying another 810 of them two days later.

Matt Malley, chief market strategist for Miller Tabak + Co. Step down as CEO. This news means they don’t seem to want to do that anytime soon.”

Overall, MicroStrategy held about 132,500 bitcoins worth over $4 billion USD as of December 27th. The company paid an average purchase price of $30,397 per bitcoin.

“Given MicroStrategy’s $2.4 billion in leverage, we believe the company may have a lot of leverage over Bitcoin, and may face some liquidity risk,” Jefferies analyst Brent Thiel wrote in a note on Wednesday. Thill has an “underperform” rating on the stock and a price target of $110.

Over the years of the pandemic, MicroStrategy has become well known for its Bitcoin takeovers, largely led by Saylor. Earlier this year, Saylor stepped down from that role and now serves as CEO at the company and continues to lead its bitcoin strategy.

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MicroStrategy was trading around $120 before Saylor first announced the company’s Bitcoin purchases in 2020. The stock reached an all-time high of $1,315 in February 2021.

(Updates to include the stock’s closing price in the second paragraph.)

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Bankman-Fried May File Petition in New York Federal Court Next Week Before Judge Louis Kaplan By Cointelegraph

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Former FTX CEO Sam Bankman-Fried is set to appear in court on the afternoon of January 3 to enter a lawsuit over two counts of wire fraud and six counts of conspiracy against him related to the collapse of cryptocurrency exchange FTX, according to Reuters. mentioned on December 28, citing court records. Bankman-Fried will appear before District Judge Lewis Kaplan in Manhattan.

Judge Kaplan was appointed to hear the case on December 27 after the original judge in the case, Ronnie Abrams, Resigned herself because of connections between FTX and the law firm Davis Polk & Wardwell, where her husband is a partner. The company provided advisory services to FTX in 2021.