Bitcoin Surges Amid ETF Demand and Halving Event Anticipation

Bitcoin surged by 4% on Monday, reaching nearly $67,000 amid increased demand for spot Bitcoin exchange-traded funds (ETFs). BlackRock and Fidelity Investment's spot Bitcoin ETFs have gained immense popularity within 50 days of trading, while investors anticipate the "halving" event in April, which will reduce the issuance of new tokens and potentially support prices.

Bitcoin Surges Amidst ETF Demand, Anticipation of Halving Event

Bitcoin (BTC-USD) experienced a notable resurgence on Monday, gaining 4% and approaching the $67,000 mark (£53,153). This upward trajectory was fueled by sustained demand for spot Bitcoin exchange-traded funds (ETFs).

In less than 50 days of trading, BlackRock's (BLK) and Fidelity Investment's spot Bitcoin ETFs — IBIT and FBTC, respectively — have emerged as the most popular offerings from these asset managers, according to data shared by Bloomberg ETF analyst Eric Balchunas.

Investors are also eagerly anticipating Bitcoin's upcoming "halving" event in April, during which the issuance of new tokens will be halved. This anticipated supply constraint is expected to further support prices amidst growing demand.

Baidu Stock Soars on Apple AI Partnership Rumors

Shares of e-commerce giant Baidu (9888.HK) witnessed a surge following reports that Apple (AAPL) had engaged in preliminary discussions with the Chinese company regarding the utilization of its AI technology.

According to Cailian Press, a Chinese media outlet, Baidu is poised to become Apple's local generative AI model provider for the iPhone 16, the Mac computer operating system, and the upcoming iOS 18 mobile operating system.

Apple's search for a generative AI partner in China stems from the Asian nation's requirement that such models undergo vetting by its cyberspace regulator prior to public release, as reported by The Wall Street Journal, citing anonymous sources.

Direct Line Shares Drop as Ageas Withdraws Offer

Direct Line (DLG.L) shares experienced a downturn after the insurer asserted its confidence in its standalone prospects following the announcement by Belgium's Ageas (AGS.BR) that it would not be submitting an offer for the company, despite two unsuccessful attempts to engage with the board.

"As communicated at Direct Line Group's 2023 preliminary results on 21 March 2024, the board believes under Adam Winslow's leadership the company is well-positioned to drive material improvement in performance that is expected to unlock significant value for Direct Line Group shareholders," the London-listed insurer stated.

In February, Ageas had confirmed its exploration of a potential £3.1bn offer for Direct Line Insurance Group.

"We had hoped to reach agreement on a jointly recommended firm offer together with the Direct Line board," said Ageas chief executive Hans De Cuyper.

"However, I am convinced that, given the circumstances, we took the right decision not to make an offer, staying true to who we are and what we stand for in terms of maintaining a friendly approach and respecting our financial discipline."

Kingfisher Profits Plunge, Warns of Earnings Decline

Kingfisher (KGF.L), the owner of B&Q, disclosed a substantial decline in annual profits of over a quarter and issued a warning of a further steep drop in earnings this year as it undertakes a comprehensive overhaul of its French operations in an effort to revive its fortunes.

For the year ending January 31, the group reported a 25.1% decrease in underlying pre-tax profits to £568m. Kingfisher, which also owns the Screwfix chain and brands such as Castorama and Brico Depot in France, noted a 5.9% decline in like-for-like sales in France and a 7.7% drop elsewhere in Europe.

In contrast, the UK and Ireland exhibited more resilience, with sales increasing by 0.8%, resulting in an overall group-wide sales decline of 3.1%.

Despite a modest improvement in sales declines to 2.3% during the early stages of the new financial year, the group cautioned that profits are anticipated to fall once more, ranging between £490m and £550m in 2024-25, below the £560m estimate by analysts.