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- Business and finance update 9th December 2024
Business and finance update 9th December 2024
Bitcoin bounce
Good morning. Today we're talking about Bitcoin’s record high, the Observer’s new owner and rising house prices.
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Bitcoin bounce
Bitcoin has reached a historic milestone, surpassing the $100,000 mark for the first time after jumping 50% in the last month. This significant price surge has sparked debate among market analysts and investors about the future of the world’s largest cryptocurrency. The positive sentiment has been fuelled by the appointment of a crypto-friendly financial regulator by President-elect Donald Trump in the US alongside growing institutional adoption. The US approved several Bitcoin exchange traded funds allowing giant investment firms like Blackrock and Fidelity to sell products based on the price of Bitcoin. Some of these products have seen billions of dollars in cash inflows. However, concerns remain about Bitcoin's volatility and the potential for sharp price corrections, for example in 2022 its price fell sharply below $16,000 after crypto exchange FTX collapsed into bankruptcy.
Observer changes hands
The Guardian confirmed the sale of its sister publication, The Observer, to digital media company Tortoise Media. This move comes despite a recent 48-hour strike by Guardian and Observer journalists protesting the deal. Founded in 1791, The Observer will change hands for the first time since 1993. Tortoise Media, co-founded by former BBC News boss James Harding, has pledged to invest £25m and maintain The Observer's legacy as a leading voice in liberal journalism. While the sale faced resistance from staff, Tortoise aims to revitalise the newspaper by focusing on "slower, wiser news" - a strategy contrasting with the traditional fast-paced news cycle. This acquisition represents a significant shift for The Observer, entering the digital media landscape under new ownership.
Record house prices
The UK’s largest lender, Halifax, reported that the average cost of a home had reached a new high of £298,083 after a 1.3% jump in November - the biggest increase since June 2022. This was driven by higher demand prompted by more clarity around the new budget, as well as lower interest rates and falling unemployment. Despite inflation still being relatively high, wages have also risen over the past few months, leading to more housing demand. However, the Bank of England has warned that approximately 4.4m households could still face increases in their mortgage repayments over the next three years. The central bank cut interest rates last month for the second time since August but it has cautioned that future reductions are likely to be gradual.
Elsewhere...
Social ban: TikTok's bid to overturn a law which would see it banned or sold in the US from early 2025 has been rejected.
Beer limits: The amount of Guinness pubs can buy in the build up to Christmas has been limited by its maker Diageo after "exceptional demand" over the past three weeks.
Insurance takeover: Direct Line is set to agree to a £3.6bn takeover by its bigger rival Aviva, after the FTSE 100 firm returned with a sweetened bid for the company.
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