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As investors anticipate a batch of important economic data this week, the UK’s major stock indexes began mostly unchanged on Monday. Meanwhile, gaming companies saw a decline following allegations that the government was preparing tax raids. Risk on mood in the US helped the blue-chip index, the FTSE 100, trade +0.28% heading into the close.In single stock stories UK betting companies sank as a report indicates that the government may levy high taxes. Following a media story suggesting that the government may treble taxation, shares of gaming businesses listed in the United Kingdom declined. Playtech declines 2.2%, Flutter 6.9%, Entain 14.3%, and Evoke 13.8%. According to the Guardian, the UK government is debating plans to treble some levies on internet bookies and casinos.According to people involved with the talks, the Treasury has not yet made a decision but is willing to modify the UK’s intricate betting and gaming regulations in order to generate an extra £900 million to £3 billion. According to the article, measures may be included in the first budget of the Labour government, which is scheduled for October 30. Evoke is the biggest loser among small-cap firms, while Entain is the biggest drop on the FTSE 100.Asset manager Ashmore announces increased assets under management in the first quarter, and shares increase During the first quarter, Ashmore’s assets under management climbed from $49.3 billion to $51.8 billion. In the quarter, net outflows dropped from $2 billion in the previous quarter to $700 million. Ashmore said that throughout the course of the three months, its core developing markets division produced impressive profits.This year, Ashmore’s stock has dropped almost 6%.UK’s Mulberry surges on decision to assess Frasers’ improved takeover offer Mulberry, the British luxury brand, jumps 15.6% to 130p The company says it is working with advisers to evaluate sporting goods retailer Frasers’ sweetened 111 million pound ($145 million) takeover proposal Mulberry’s top investor Challice refuses to sell to Frasers, which is down marginally after the announcement Frasers has until October 28 to make a firm offer or walk awayMulberry is down around 17% year-to-date, while Frasers is down around 11%.In broker updates UBS analysts said investors are worried that the government would raise taxes on some industries, therefore they are waiting for the new UK budget on 30 October to receive clarification. Domestic banks may experience a 5% increase if such levies are not implemented. With Prime Minister Keir Starmer appearing at the International Investment Summit in London and Chancellor of the Exchequer Rachel Reeves’ impending Autumn Budget, the UK investment environment is in the spotlight. Assuming that an industry-wide rise in input costs will eventually be reflected in spreads, investors who think banks have pricing power may seek to accumulate the stocks if a tax is proposed and shares drop off, according to UBS analysts. This would leave aggregate returns unaltered.
Technical & Trade ViewFTSE Bias: Bullish Above Bearish below 8225

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