BUSINESS LIVE: Investors brace after ‘Black Monday’; FCA warns firms on insolvency rules; Hut Group slumps again
Investors are braced for the opening bell after global equities tumbled and bitcoin crashed to a six-month low yesterday as fears of conflict in Ukraine and the prospect of higher interest rates spooked markets.
On a day of turmoil on financial markets worldwide, the FTSE 100 index fell 2.6 per cent and the FTSE 250 plunged 3.6 per cent as £68billion was wiped off the value of Britain’s 350 leading listed companies.
Britain’s financial watchdog has warned firms in insolvency proceedings they could face ‘assertive action’ if their proposals ‘unfairly benefit them at the expense of their customers’.
The Financial Conduct Authority has seen an increase in the number of firms developing proposals to deal with significant liabilities to consumers, and said it would not hesitate to us its regulatory powers, including enforcement actions, when appropriate.
Embattled retailer The Hut Group shares fell again yesterday after analysts predicted its full-year profits would disappoint.
The shares are down 76 per cent from their float price of 500p in September 2020, with the latest fall seemingly prompted by a note from analysts at Citi, who said foreign exchange pressures and higher commodity prices would weigh on THG’s profits.
Escalating tensions on the border of Ukraine contributed to falls across global stock markets on Monday