The Financial Conduct Authority has started regulating Buy Now Pay Later in the UK, requiring third-party lenders to assess whether customers can afford repayments before extending credit and bringing a market used by almost 11 million adults into the consumer credit framework for the first time.

The rules took effect on 15 July 2026 and apply to newly issued deferred payment credit agreements where the lender is separate from the retailer. Providers must now be authorised by the FCA or operate under a temporary permission, comply with the Consumer Duty, explain repayment terms clearly, support customers in financial difficulty and allow eligible complaints to be taken to the Financial Ombudsman Service.

The reforms give BNPL users protections that apply across other regulated credit products, including proportionate affordability checks before borrowing and, in some cases, the right to seek a refund from the lender under Section 75 of the Consumer Credit Act. Agreements entered into before 15 July remain outside the new regime, while retailers that provide their own credit continue to benefit from an exemption.

The change brings the UK closer to the European Union’s revised Consumer Credit Directive, which expressly brings many BNPL schemes within consumer credit regulation. The UK and EU frameworks are not identical, but both are moving away from treating short-term, interest-free instalment products as a separate category requiring fewer protections than other forms of borrowing.

A £13 Billion Market Comes Under FCA Oversight

BNPL has grown from a relatively small checkout option into a significant part of UK consumer credit. The FCA said the market expanded from £60 million in 2017 to more than £13 billion in 2024. Its Financial Lives Survey found that 20% of UK consumers, equivalent to 10.9 million adults, used BNPL in the 12 months to May 2024.

The product initially gained traction by allowing shoppers to divide purchases such as clothes, electronics and furniture into several interest-free payments. Its use has since spread into routine household spending. Research published by Fair4All Finance found that one in five financially struggling or financially squeezed BNPL users had used the product for essential purchases such as groceries and bills.

The expansion created a regulatory gap. Consumers could accumulate multiple agreements from different lenders without the same affordability protections, complaint rights and supervisory standards that apply to credit cards and personal loans. The FCA said repeated borrowing had sometimes left customers without a clear view of what they owed, contributing to missed payments, late fees and worsening financial circumstances.

Under the new regime, lenders must carry out checks proportionate to the amount, product and customer circumstances. The FCA has not prescribed one universal assessment for every transaction. Firms can tailor their approach, but they must be able to show that their lending decisions are responsible and that customers can afford the repayments without creating financial harm.

The Next Test Is Whether Checks Disrupt Checkout

For BNPL providers and retailers, compliance is only part of the challenge. The commercial test is whether lenders can conduct the required assessments without undermining the fast checkout experience that helped BNPL grow.

Radi El Haj, Chief Executive Officer at payments infrastructure provider RS2, said affordability checks should be embedded within the transaction rather than added as a separate stage after the customer chooses BNPL.

“Affordability checks can’t be a separate step tacked onto checkout. That’s where lenders will lose customers. They need to happen instantly, as part of the transaction itself, using the same real-time data lenders already rely on for fraud checks. Do that well and the customer barely notices. Do it badly and they abandon the basket.”

His argument shifts the focus from whether lenders comply to how they comply. A provider that requires customers to leave checkout, submit extensive information or wait for a manual decision risks losing the sale even when the applicant ultimately qualifies. Lenders with real-time decisioning systems may be able to assess affordability using customer data, credit information, account history and risk indicators while keeping the process within the existing payment journey.

El Haj compared the change with the implementation of Strong Customer Authentication under the revised Payment Services Directive. Some merchants and payment firms initially treated the additional authentication requirement as a compliance step separate from checkout design, contributing to failed payments and customer abandonment. Others used exemptions, risk-based authentication and improved interfaces to reduce disruption.

“We saw something similar play out with PSD2 and Strong Customer Authentication a few years back. Plenty of firms treated it as a box-ticking exercise and ended up with checkouts that dropped customers left and right. The firms that treated it as a design problem came out the other side with smoother journeys than they started with. I’d expect BNPL regulation to sort providers the same way.”

The comparison has limits because affordability assessments and payment authentication serve different purposes. Both, however, require providers to introduce regulatory controls at a point in the customer journey where delays and additional steps can reduce conversion. The firms best able to combine compliance, data and payment orchestration may therefore gain an advantage over providers relying on fragmented systems.

Up To 30% Of Existing Users Could Be Rejected

The protections may also reduce access for consumers who previously used BNPL without undergoing a regulated affordability assessment. Fair4All Finance estimates that between 10% and 30% of current users could be rejected once the regime is fully implemented.

The organisation said exclusion is likely to be concentrated among consumers in financially precarious positions, including people who use interest-free instalments to manage cash flow. Its research found that 41% of BNPL users had struggled to make a repayment, while around two in five of those who experienced repayment difficulty had cut back on essentials.

Santosh “San” Nakra-Shah, Co-founder and Managing Partner at ChilliMint Europe, said the regulation is overdue but warned that rejecting a BNPL application does not remove the applicant’s need for short-term credit.

“What worries me is the unintended effects of these regulations. Fair4All Finance estimates the stricter affordability checks could exclude 10-30% of current users from BNPL altogether. That need for quick, flexible credit doesn’t evaporate just because access tightens. It goes looking for a new front door, and people don’t always choose a safer one once theirs closes.”

That creates what Fair4All Finance describes as an exclusion paradox. Preventing unaffordable borrowing protects consumers only when those rejected do not replace BNPL with a higher-cost or less regulated product. Some could turn to overdrafts, credit cards, high-cost lenders or unlicensed credit if affordable alternatives are unavailable.

The FCA has acknowledged that some regular BNPL customers may find the product harder to access. It argues that lending should not proceed when repayment would worsen a consumer’s financial position and that proportionate checks are necessary to prevent unsustainable debt.

Nakra-Shah said the next phase of the policy debate should consider where excluded demand moves.

“I see stronger regulation as a genuinely positive step, but the debate feels incomplete. Demand for short-term credit won’t disappear when BNPL becomes harder to access, so are we solving the problem, or just moving it somewhere less visible? As the market evolves, are we paying enough attention to the consumers who may end up caught in the middle?”

Consumer Protection Could Strengthen Trust In BNPL

The rules may reduce approval rates, but they could also make BNPL more acceptable to consumers who were previously concerned about weak protections. Users will receive clearer information before borrowing, including payment dates, amounts and the consequences of missing an instalment. Lenders must provide appropriate help when customers experience financial difficulty, which can include accepting lower repayments or allowing more time to pay.

Consumers can now take complaints relating to regulated agreements to the Financial Ombudsman Service. Some purchases will also qualify for Section 75 protection, allowing customers to pursue the lender when goods or services are misrepresented, faulty or not supplied, subject to the statutory conditions.

El Haj said those protections could improve the sector’s reputation and support providers capable of meeting the higher operational standard.

“There’s a genuine upside here too. Section 75-style protections and access to the Ombudsman should build real trust in a product that’s had a bit of an image problem, which in turn should grow the market for the lenders doing this properly. But it raises the bar on infrastructure. Real-time decisioning, clean audit trails and BNPL providers actually talking to the rest of the payments stack aren’t optional extras anymore.”

The regulatory transition could also change the competitive structure of the market. Larger providers have had more time and resources to prepare credit assessment, reporting, complaints and customer support systems. Smaller lenders face the same conduct requirements while operating on transactions that often generate limited revenue, potentially increasing pressure to partner with larger platforms, change their products or leave the market.

BNPL Competition Moves From Frictionless Credit To Frictionless Compliance

The rules do not end the commercial case for BNPL. Interest-free instalments can help customers spread costs and manage irregular cash flow when the borrowing remains affordable. The FCA has said it wants the sector to continue innovating and growing sustainably rather than restricting access for customers who can repay.

What changes from today is the basis of competition. Providers previously competed mainly on merchant distribution, approval speed, customer reach and the simplicity of the checkout experience. They must now combine those features with affordability assessments, regulatory reporting, audit trails, financial difficulty support and Ombudsman exposure.

The strongest providers will be those able to meet those obligations without turning a fast checkout option into a slow credit application. That requires affordability data, fraud controls, credit decisioning and payment processing to operate as one connected system rather than a series of separate checks.

The longer-term risk is that regulation divides the market between customers who retain access to a safer BNPL product and those pushed toward more expensive borrowing. The longer-term opportunity is that consumer protections make BNPL a more trusted and sustainable part of the credit market.

The rules settling that balance began today. Their impact will be measured not only by complaint numbers and default rates, but also by checkout conversion, approval rates, provider exits and where consumers denied BNPL seek credit next.

Bitcoin held above $64,000 into the July 15 session, steadying a crypto market caught between escalating Middle East tensions and a softer-than-expected U.S. inflation print. The total crypto market capitalization slipped roughly 0.8% between the July 14 close and the July 15 open, shedding $16.94 billion as rising friction between the U.S. and Iran rattled traders. Reported casualties and fresh concern over the Strait of Hormuz drove the initial pullback.

The market recovered soon after, with inflows peaking at $35.58 billion as cooling U.S. inflation firmed from forecast into hard data. The Consumer Price Index fell 0.4% in June—its steepest single-month decline since April 2020—dragging annual inflation to 3.5% and core CPI to 2.6%, both softer than analysts had projected.

Bitcoin Emerges as the Biggest Beneficiary of the Inflation Cooldown

Bitcoin absorbed most of the momentum, rallying to $65,577—a high last reached on June 22, roughly three weeks earlier. The move reads bullish, yet Bitcoin still faces defined hurdles on the chart. Price first needs a sustained break above the $64,336 resistance, and without it, BTC stays capped below that ceiling. A decisive move through opens a path toward $67,292, where sellers are likely to mount fresh pressure.

Spot markets have yet to confirm the bullish tilt, posting net sales of $59.83 million that point to lingering caution rather than conviction. Even the $303.7 million in net purchases over the past five days has proven too thin to force a decisive rally. U.S. investors remain the primary engine behind the move. Spot Bitcoin net flows from this group showed a $181.08 million inflow, while their total trading volume closed at $2.30 billion on July 14, according to SoSoValue.

Altcoin Season Index Signals a BTC-Led Market

Whether this marks a full bull market with Bitcoin bulls in control remains unconfirmed, as no direct signal yet points to a dedicated Bitcoin season. CoinGlass’ Altcoin Season Index has been sliding, falling from 58 to 46 and reflecting Bitcoin’s growing strength against the broader altcoin field. A declining reading shows capital rotating into Bitcoin, and a level near 20 or below would mark a firmly Bitcoin-dominated market—territory last seen from early to mid-July 2025.

BTC need not reach that threshold before setting new highs, it printed a record in October 2025, months after trading past that level, which marks the index as a proxy rather than a precondition.

An Ontario man has pleaded guilty to fraud and illegally distributing securities after raising nearly C$5.3 million from investors through what was presented as a mortgage investment corporation, according to the Ontario Securities Commission.

In an announcement published on 15 July, the OSC said Ian Ross McSevney admitted to fraud and distributing securities without filing a prospectus, contrary to Ontario securities law. McSevney was the sole directing mind of Altmore Mortgage Investment Corporation, which raised money from approximately 30 Ontario investors between May 2015 and May 2019.

The case is one of the latest enforcement actions targeting investment schemes that promised exposure to real estate-backed lending while allegedly using investor funds for purposes other than those represented.

Investors Were Told Their Money Would Fund Mortgages

According to the OSC, investors were led to believe that Altmore Mortgage Investment Corporation would use their money to originate mortgages and other loans secured by real estate.

Mortgage investment corporations are commonly used in Canada to pool investor capital and finance residential or commercial mortgages. Investors generally expect their returns to be generated from interest paid by borrowers and supported by underlying real estate collateral.

The OSC alleges that Altmore did not build the mortgage portfolio investors had been promised.

While some legitimate real estate loans were arranged, the regulator said most of the C$5.3 million raised was not invested as represented.

OSC Says Investor Money Was Used To Repay Earlier Investors

According to the regulator, approximately C$3 million was repaid to investors during the scheme, with those repayments typically funded using money contributed by newer investors rather than investment returns generated by mortgage lending.

The OSC also said McSevney directed approximately C$1 million toward credit card payments, family members and relatives.

The regulator noted those payments were funded through a combination of investor money and other sources.

Although the OSC did not describe the operation as a Ponzi scheme, the allegation that investor repayments were largely financed with funds from subsequent investors reflects a pattern commonly seen in investment fraud cases where promised investment returns are not supported by the underlying business activity.

Mortgage Investment Corporations Face Increasing Regulatory Scrutiny

Mortgage investment corporations have become an increasingly important source of private real estate financing across Canada, particularly as banks tightened lending standards in recent years.

Many operate legitimately by providing investors with exposure to diversified mortgage portfolios. However, securities regulators have repeatedly warned investors that private mortgage offerings carry significant risks, particularly where investments are sold outside public markets.

Because many mortgage investment corporations raise capital through prospectus exemptions, investors often receive less disclosure than they would when purchasing publicly listed securities. Regulators therefore continue to focus enforcement efforts on firms and individuals who misrepresent how investor funds will be used.

OSC Says Guilty Plea Reinforces Investor Protection

Bonnie Lysyk, Executive Vice President of Enforcement at the OSC, said the outcome demonstrated the regulator’s commitment to protecting investors and maintaining confidence in Ontario’s capital markets.

“Investors should expect that their money will be used as represented. Mr. McSevney raised millions from investors for what was presented as a mortgage investment corporation but most of those funds were not invested as promised. This has no place in Ontario, and this outcome reinforces our commitment to protecting the integrity of our capital markets.”

The OSC’s Criminal Investigations and Prosecutions team led the investigation. The unit investigates securities-related fraud, market manipulation and other serious breaches of Ontario securities law, while prosecutions involving Criminal Code offences are conducted by Ontario’s Ministry of the Attorney General.

Sentencing Process Continues

McSevney’s case will return to court on 8 September 2026, when the parties are expected to schedule a date for sentencing submissions.

The guilty plea resolves the underlying allegations regarding fraud and illegal securities distribution, although the court has yet to determine the appropriate sentence.

The OSC reminded investors to verify the registration status of any individual or company offering investment opportunities and to review available investor education resources before committing funds.

The case serves as another reminder that investments promoted as being secured by real estate still require careful due diligence. The presence of mortgage or property-related terminology does not itself guarantee that investor funds are being deployed as represented, making regulatory oversight and verification an important part of the investment process.

Most networking in the online trading industry happens around conferences. Conversations are squeezed between panel sessions, scheduled meetings and exhibition stands, often competing with packed agendas and hundreds of other attendees. Finance Beach Mixer was built around a different idea: remove the conference altogether and make networking itself the main event.

The inaugural edition took place on July 10 at Lasmari Beach Bar in Ayia Napa, Cyprus, bringing together professionals from across the brokerage, liquidity, payments and financial technology sectors for an afternoon centred entirely on relationship building. FinanceFeeds served as the exclusive media partner, while Broctagon Prime and 26 Degrees supported the event. The concept was developed by Sonata Naujokaitė through expo-consulting, a consultancy specialising in exhibition and event strategy for financial services companies.

Video recap:

Moving Industry Networking Beyond Limassol

Cyprus has long been one of the industry’s principal hubs, with most brokerage events, conferences and networking gatherings taking place in Limassol. Finance Beach Mixer deliberately broke with that pattern by moving to Ayia Napa, asking attendees to leave the familiar conference circuit behind in favour of a more relaxed setting on the island’s eastern coast.

The change of location was intended to do more than provide a different backdrop. Rather than arriving between meetings at a large expo, participants travelled specifically for the event, creating an environment where conversations became the day’s primary focus instead of something fitted around a conference schedule.

“I picked Ayia Napa because this side of Cyprus never gets shown properly; everyone knows the touristy image, not the real beauty of it. And I knew if people committed to driving over an hour each way, they’d arrive in a completely different mindset,” said Naujokaitė, founder of expo-consulting and creator of Finance Beach Mixer.

That approach appeared to resonate with senior executives. Around 70% of attendees were founders, chief executives and other senior decision-makers, producing a guest list weighted towards professionals responsible for strategic partnerships, commercial development and business growth across the online trading ecosystem.

Designing Networking Rather Than Leaving It To Chance

Unlike traditional conferences, where networking often develops organically between sessions, Finance Beach Mixer introduced a structured networking challenge at the start of the afternoon. Every participant received colour-coded wristbands identifying their area of the industry, together with networking cards encouraging them to meet representatives from different business segments.

The objective was simple: encourage attendees to step outside their existing professional circles. Many participants already recognised one another from previous conferences or knew each other only through emails, LinkedIn or business meetings. The challenge provided a practical reason to begin conversations that might otherwise have been postponed or overlooked.

Because attendees represented a broad cross-section of the industry, conversations naturally extended across multiple disciplines. Brokers met technology providers, payment companies connected with liquidity specialists, infrastructure firms spoke with commercial executives, while media representatives, consultants and service providers were equally drawn into the networking activity.

Three participants shared the Best Networker title after each introducing themselves to at least 14 new industry contacts during the challenge. Hana Dobrecka of YCM Invest, Antonis Nicholas of Broctagon Prime and Nick Assimenos of Finance Magnates shared the top prize, earning a jet ski experience after finishing level on points.

From Introductions To Longer Conversations

Once the networking challenge concluded, the structured element of the event gave way to a buffet lunch overlooking the Mediterranean before attendees continued discussions throughout the afternoon on the beach. The progression from organised introductions to informal conversations formed a central part of the event’s design, allowing relationships established during the challenge to develop naturally without the interruptions typically associated with conference programmes.

With no presentations, keynote speeches or exhibition booths competing for attention, participants remained focused on conversation. Instead of moving between meeting rooms or rushing to the next session, attendees were able to continue discussions at their own pace, creating an atmosphere that differed from the shorter interactions often associated with large industry expos.

For companies operating across brokerage, fintech, liquidity, payments and trading technology, those conversations often represent the starting point for future partnerships. Finance Beach Mixer sought to create more opportunities for those introductions by reducing many of the logistical constraints found at larger industry events.

A Different Addition To The Industry Calendar

The online trading industry continues to rely heavily on conferences to bring together brokers, technology providers, service firms and institutional participants. Finance Beach Mixer explored a different format, one built around a curated audience and a schedule where networking was not a secondary activity but the event’s primary purpose.

Whether similar formats become a more regular feature of the industry’s calendar remains to be seen. The inaugural edition nevertheless demonstrated demand for smaller gatherings focused on meaningful introductions, bringing together a predominantly senior audience in an environment designed to encourage longer conversations than the exhibition floor typically allows.

The gold market regained momentum on Wednesday after weaker-than-expected US wholesale inflation data boosted investor sentiment and eased expectations of aggressive US monetary policy tightening.

Gold prices rebounded from earlier losses and traded around $4,070 per ounce following the inflation report.

Data released by the US Labour Department showed the Producer Price Index (PPI) fell 0.3% in June, reversing May’s downwardly revised 0.6% increase.

The reading came in below economists’ expectations, who had forecast producer prices to remain unchanged during the month.

Earlier rally fades as geopolitical concerns return

Earlier on Wednesday, gold traded lower, as investors reassessed the broader inflation outlook.

The market’s initial optimism after softer US consumer inflation data gave way to concerns that renewed geopolitical tensions in the Middle East could drive energy prices higher and keep inflationary pressures elevated.

Earlier in the day, spot bullion fell 0.5% to $4,035.67 an ounce by 0300 GMT, while August gold futures declined 0.7% to $4,042.20.

The losses partially reversed Tuesday’s strong rally of more than 2%, during which spot gold climbed to $4,100.49 after June consumer inflation data came in below expectations.

Wholesale inflation cools more than expected

The report also showed that core producer prices, which exclude volatile food and energy costs, increased 0.2% in June following May’s downwardly revised 0.1% increase.

Over the past year, core PPI advanced 5.1%.

The softer inflation readings encouraged buying interest in the precious metals market.

The improved performance reflected growing optimism among investors as cooling inflation prompted markets to scale back expectations for an aggressive US monetary policy path.

On an annual basis, wholesale inflation rose 5.5% over the past 12 months, below consensus estimates of 6.2%, the report showed.

The market is caught between inflation relief and oil price risks

The gold market is now balancing two competing themes.

On one hand, softer-than-expected inflation data has eased immediate concerns over higher interest rates, improving sentiment toward bullion.

On the other hand, investors remain cautious that renewed fighting in the Middle East could push oil prices higher, potentially reigniting inflationary pressures.

This combination has created mixed trading conditions for gold, with investors weighing the supportive impact of cooling inflation against the possibility of another energy-driven price shock.

Silver prices also moved lower on Wednesday.

The decline came as escalating geopolitical tensions in the Middle East weighed on investor sentiment, offsetting support from a weaker US dollar following the softer-than-expected US inflation data.

While weaker inflation generally provided support to precious metals by reducing expectations for aggressive monetary policy, geopolitical uncertainty continued to influence broader market positioning, leaving both gold and silver caught between improving inflation trends and renewed concerns over energy-driven price pressures.

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Alibaba’s US-listed shares rose more than 6% on Wednesday after the Chinese technology giant confirmed that its Qwen artificial intelligence model will power Apple Intelligence features for users in China.

This marks a major milestone in Apple’s long-delayed AI rollout in the country.

Apple shares also gained about 1.8%, while Baidu’s US-listed stock climbed roughly 2.8% after the company separately confirmed it was also collaborating with Apple on AI features for Chinese iPhone users.

The announcement came after China’s cyberspace regulator approved Apple Intelligence for use on iPhones in China, removing one of the biggest regulatory hurdles that had delayed the launch since Apple first unveiled the AI platform in 2024.

Apple Intelligence receives regulatory approval

China requires all large language models and generative AI services to obtain regulatory approval before they can be offered to the public.

Apple Intelligence and Samsung’s Galaxy AI were the only foreign AI services approved in the latest batch.

Domestic smartphone makers Huawei, Oppo, Vivo, Xiaomi and ZTE also received approvals, with ByteDance serving as ZTE’s AI partner.

The approval follows months of discussions between Apple and Chinese authorities as geopolitical tensions between Washington and Beijing have intensified over artificial intelligence and advanced technology.

An Alibaba spokesperson confirmed to CNBC that the company’s AI model would become part of Apple’s ecosystem in China.

“Qwen will be integrated into Apple Intelligence experiences within iOS, iPadOS, macOS, and visionOS for users in China,” the spokesperson said.

According to Bloomberg, Qwen will enable capabilities including text generation, image generation, and image understanding across Apple’s devices without requiring users to switch between separate applications.

“The Apple-Qwen integration gives users the ability to access the model’s capabilities, like text and image understanding and generation, without needing to jump between tools,” the Alibaba spokesperson added.

Apple pursues multiple AI partnerships

Alongside Alibaba, Apple is also collaborating with Baidu to develop AI features tailored for Chinese users.

A Baidu representative told the South China Morning Post that the company was working with Apple on Apple Intelligence features for the Chinese market.

Reuters also reported that Baidu would contribute to Apple’s localized AI services.

The dual partnerships underscore Apple’s strategy of working with domestic AI leaders to comply with China’s regulatory framework while expanding Apple Intelligence outside Western markets.

AI rivalry continues to intensify

The announcement comes amid growing competition between Chinese and US artificial intelligence companies.

Earlier this month, Alibaba prohibited employees from using Anthropic’s AI models, while US lawmakers have been exploring ways to curb adoption of Chinese AI systems by American companies.

Separately, reports indicated that Meta had been forced to unwind its planned $2 billion acquisition of Chinese AI startup Manus following intervention by Beijing.

The development also coincides with Apple’s efforts to improve on-device AI capabilities.

CNBC reported on Tuesday that Apple is in discussions with Silicon Valley startup PrismML, which claims it can compress advanced AI models sufficiently to run directly on iPhones.

PrismML, a Caltech spinout backed by Khosla Ventures, recently released compressed versions of Alibaba’s open-source Qwen model, reducing its size from roughly 54 GB to less than 4 GB, allowing the full 27-billion-parameter model to operate on an iPhone 15 or newer device.

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Morgan Stanley (MS) shares are inching higher on Wednesday morning after the bank posted Q2 earnings that came in miles above Street estimates.

The multinational reported a 27% year-on-year increase in its net revenue to a record $21.4 billion on 58% growth in earnings per share (EPS) to $3.46 – also an all-time high.

“Active markets and consistent execution across all three regions drove exceptional results for our Integrated Firm,” said Ted Pick, Chairman and CEO of Morgan Stanley.

Including today’s gains, Morgan Stanley stock is up nearly 50% versus its year-to-date high.

What drove record profits in Morgan Stanley’s Q2

Underpinning the Q2 stellar results was a staggering resurgence in investment banking and capital markets activity.

The bank’s Institutional Securities segment brought in an exciting $11 billion in revenue, fueled primarily by its record-setting equity trading division, which skyrocketed to $6.3 billion – up 69% year-on-year.

Equity underwriting surged to $851 million on the back of a booming IPO pipeline, while advisory fees reached $798 million due to robust cross-border mergers and acquisitions activity.

In its earnings release, Morgan Stanley also revealed $788 million in fixed-income underwriting.

This alignment of trading prowess and advisory strength reinforced that Wall Street’s dealmaking drought is likely over, and MS stock is capturing the lion’s share of the rebound.

Is it worth investing in MS shares today?

Morgan Stanley’s strong wealth management engine and outstanding capital efficiency make up for another great reason to load up on its stock today.

The Wealth Management division pulled in $148.1 billion in net new assets for the quarter, pushing its total asset footprint closer to long-term goals while driving a 14% increase to $8.9 billion.

Importantly, MS delivered an 26.6% Return on Tangible Common Equity (ROTCE) – showcasing immense operational leverage as its expense efficiency ratio optimized to 65%.

Management capitalized on this strength by sweetening shareholder returns, raising the quarterly dividend by 15% to $1.15 per share and reauthorizing a multi-year $20 billion share buyback plan.

This combination of a high-yield dividend, defensive wealth management cash flows, and massive buybacks makes Morgan Stanley shares a compelling buy.

Morgan Stanley stock isn’t inexpensive to own

Looking ahead, Morgan Stanley’s strategic transformation under CEO Ted Pick is paying off rather well.

It’s no longer just a volatile, deal-dependent investment bank – it has successfully constructed an impressive moat where recurring, fee-based asset management revenues balance out and fund its aggressive trading desk.

As corporate boardrooms reactivate global capital deployment and public market transitions gain pace, MS shares stand uniquely poised to extract compounding returns.

That said, Morgan Stanley is currently trading at more than 18x forward earnings, which makes it more expensive to own than several of its Wall Street peers.

The consensus rating on it, however, remains at Moderate Buy.

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Hedera price has been caught between two major developments that tell very different stories about the network.

On one hand, a $9 million exploit at Bonzo Lend raised fresh concerns about security within Hedera’s decentralised finance ecosystem.

On the other hand, Lloyds Banking Group, Aberdeen Investments, and Archax completed a landmark tokenised collateral transaction on Hedera, highlighting growing institutional interest in the network.

These events have shaped recent sentiment around HBAR as traders weigh short-term risks against long-term adoption.

At the time of writing, HBAR was trading at $0.06717, up 1.4% over the past 24 hours.

Despite the daily gain, HBAR remains down 3.1% over the past seven days, 17.8% over the last month, and 71.3% over the past year.

The price also sits about 88.2% below its all-time high of $0.5692, recorded in September 2021.

Bonzo Lend exploit puts pressure on Hedera’s DeFi ecosystem

One of the biggest developments affecting Hedera recently was the exploit of Bonzo Lend, the network’s leading decentralised lending protocol.

The attack resulted in losses of approximately $9.05 million, making it one of the most significant incidents in Hedera’s DeFi sector.

According to the preliminary investigation, the issue did not originate from Hedera’s consensus mechanism or Bonzo Lend’s lending contracts.

Instead, the exploit was linked to a flaw involving Supra’s oracle verification process, which allowed manipulated price data to be accepted by the protocol.

The attacker reportedly inflated the price of the SAUCE token before using the artificially increased value as collateral.

Reports indicate that only 250 SAUCE tokens were deposited before the attacker borrowed millions of dollars worth of USDC and wrapped HBAR from the protocol.

Following the exploit, Bonzo Lend paused its lending platform and suspended withdrawals while the investigation and recovery process began.

The team stated that other services, including its staking products, vaults, and bridge, were not affected by the incident.

The exploit also had a broader impact on Hedera’s decentralised finance ecosystem.

The decline in Bonzo Lend’s locked assets contributed to a sharp reduction in the network’s total value locked, adding further pressure to investor sentiment during a period when HBAR was already trading below recent highs.

Lloyds, Aberdeen and Archax showcase Hedera’s enterprise use case

While the Bonzo exploit created short-term uncertainty, another development demonstrated Hedera’s growing role in traditional finance.

Lloyds Banking Group, Aberdeen Investments, and digital asset platform Archax completed the United Kingdom’s first foreign exchange transaction using tokenised real-world assets as collateral on the Hedera network.

The transaction involved tokenised units of Aberdeen Investments’ money market fund alongside tokenised UK government bonds (gilts).

Archax, which is regulated by the UK’s Financial Conduct Authority (FCA), handled the issuance, custody, and transfer of the digital assets on Hedera.

The pilot demonstrated that tokenised financial assets can be used as collateral within an existing regulated financial framework.

The participating institutions highlighted several potential benefits, including faster collateral transfers, improved capital efficiency, reduced operational costs, and lower counterparty risk.

Hedera price outlook

Lately, the Hedera (HBAR) token has struggled to regain momentum.

After declining 17.8% over the past 30 days and 71.3% over the last year, HBAR continues to trade far below its 2021 peak.

Even with the recent 1.4% daily increase, the broader trend remains weak based on current price performance.

Notably, the token’s price remains below all major EMAs, signalling a general bearish trend.

However, the RSI reading is 37.86, and it appears to have bounced back up after nearing the overbought region, a sign that the market could rebound to ease the selling pressure.

In case of a price rebound, the first target lies at $0.07, while if the bearish trend resumes, the immediate support is at $0.066.

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Microsoft MSFT stock rose about 3% on Wednesday as Wall Street analysts reaffirmed their bullish outlook on the software giant despite trimming some price targets ahead of the company’s fiscal fourth-quarter earnings report later this month.

Shares gained after Evercore ISI raised its price target on Microsoft to $525 from $510 while maintaining an Outperform rating.

The brokerage expects Microsoft to deliver double-digit revenue and operating income growth in fiscal 2027, supported by continued investment in artificial intelligence and improving momentum across its cloud business.

The firm said Microsoft shares have remained range-bound as investors wait for greater clarity on Azure cloud revenue acceleration and the monetization of Microsoft Copilot.

Evercore ISI expects Azure growth to strengthen in the second half of the year while Copilot adoption continues to improve.

The brokerage also forecasts fiscal 2027 cash capital expenditures of about $210 billion, above the Street estimate of roughly $180 billion.

According to Evercore ISI, capital expenditure growth could begin to normalize in 2027 after the current investment cycle while providing a catalyst for improving investor sentiment.

Analysts remain optimistic despite price target cuts

While Evercore ISI became more optimistic, several other brokerages reduced their price targets ahead of Microsoft’s earnings release without changing their positive recommendations.

Citi Research lowered its target price to $570 from $620 but maintained a Buy rating.

The revised target still represents substantial upside from Microsoft’s recent trading levels.

“We remain positive on MSFT,” Citi analyst Tyler Radke wrote Wednesday, adding that the company is “increasingly strategically positioned in an era of optimizing token spend and AI efficiency.”

The brokerage expects Microsoft to report a strong fiscal fourth quarter but said investors should prepare for higher artificial intelligence spending in fiscal 2027.

“We think MSFT will be able to demonstrate stronger returns with accelerating growth rates in flagship franchises (Azure + M365 CoPilot) as we move into FY27, which would ultimately drive accelerating overall revenue/EPS growth through FY30,” Radke wrote.

Wells Fargo also maintained a constructive stance despite highlighting mixed expectations for the fourth quarter.

The firm pointed to concerns surrounding Microsoft’s cloud market share and capital spending but said stronger Azure growth, AI adoption and operating expense discipline could support a stronger fiscal 2027 outlook.

Mizuho also lowered its price target, cutting it to $490 from $550 as part of a broader revision across software stocks.

However, the brokerage said its channel checks remained positive overall, with public cloud demand staying strong and AI adoption remaining robust.

AI investment and earnings remain key focus

Microsoft’s continued investment in artificial intelligence remains a central theme for investors ahead of earnings.

Evercore ISI said Azure acceleration, Copilot momentum and moderating capital expenditure growth could help improve sentiment during the second half of calendar 2026.

The company is scheduled to report fiscal fourth-quarter earnings on July 29.

Consensus estimates compiled by Fiscal AI project earnings of $4.24 per share on revenue of $86.66 billion.

Analyst sentiment remains overwhelmingly positive ahead of the results.

According to Koyfin data, 53 of the 56 analysts covering Microsoft rate the stock as a Buy or stronger recommendation, while the remaining analysts maintain Hold ratings.

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