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The Race Oncology Ltd (ASX: RAC) share price is rising today after the company announced positive findings on its anti-cancer drug trials.

At the time of writing, Race Oncology shares are in the green, up 4.47% trading at $3.27.

Race Oncology is a Sydney-based company working on clinical development and commercialisation of the anti-cancer drug Zantrene.

What did the company announce today?

Race Oncology is investigating if Zantrene can protect the heart from damage by other drugs.

In today’s release, the company said preclinical studies showed that Zantrene was able to “protect heart muscle cells from a new class of anti-cancer drug (Carfilzomib)-induced cell death” while also improving its ability to kill cancer cells.

Race advised it has submitted a patent application “addressing the combination of Zantrene with carfilzomib for the protection of the heart of cancer patients”. If granted, the patent would cover the clinical use of the drug combination until 2041, it said.

The company added that its findings opened up a potential for collaboration with other companies. Carfilzomib is owned by US pharmaceutical giant Amgen, Inc.

Race Oncology advised its next steps included conducting animal studies early next year and performing more preclinical studies on other anti-cancer drugs.

What did management say?

Speaking about the news potentially driving the Race Oncology share price today, CEO Phillip Lynch said:

This additional result further underscores the potential patient utility and commercial applicability for Zantrene.

We will be allocating additional resources to ensure this discovery can be comprehensively addressed.

Race Oncology share price snapshot

The Race Oncology share price has surged this year to date, up 86%. It is also up almost 55% over the past 12 months.

For comparison, the benchmark All Ordinaries Index (ASX: XAO) is up nearly 11% over the last year.

The yearly high for the share price is $4.23, while the yearly low was $1.62.

Based on its current price of $3.27, Race Oncology has a market capitalisation of around $489 million.

The post Here’s why the Race Oncology (ASX:RAC) share price is climbing today appeared first on The Motley Fool Australia.

More reading

• Why is the Race Oncology (ASX:RAC) share price plunging 12% today?
• Why Bapcor, Mayne Pharma, Race Oncology, and TechnologyOne shares are sinking
• Racing higher: Race Oncology (ASX:RAC) share price jumps 13% on study breakthrough

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Kogan.com Ltd (ASX: KGN) share price is rebounding on Wednesday from its recent 19-month low.

At the time of writing, the online retailer’s shares are swapping hands for $8.03, up 5.38%. This comes after a prolonged period of downward pressure on the company’s shares as it contends with a slowdown in sales.

The reprieve for Kogan shares follows a strong session for US-listed e-commerce companies overnight. In addition, ASX investors could be eyeing off businesses set to benefit from a Christmas spending spree.

Why are Kogan shares rallying on the ASX today?

The market is looking more fondly upon the ASX-listed Kogan share price today as it marches upwards. While there are no new announcements from the company today, investors could be getting excited about a potentially happy holiday period.

As my colleague Brendon covered yesterday, the Commonwealth Bank of Australia (ASX: CBA) released the results of its latest consumer survey. According to the CommBank Household Spending Intentions Index, retail spending intentions increased 9.6% in November compared to the previous month.

Additionally, CBA noted the strong gain in November suggests a strong Christmas shopping period. Fuelling this year’s silly season is excessive household savings, which the major bank pegs at an estimated $240 billion.

This further solidifies forecasts for pre-Christmas spending as published by the Australian Retailers Association and Roy Morgan. The joint report indicated pre-Christmas retail sales were likely to hit $58.8 billion. This figure is in line with the previous year. However, it represents an 11.3% increase compared to pre-pandemic spending.

For ASX-listed Kogan, shareholders will be hoping the excess household savings will go towards bringing down the company’s high inventory levels. The unpredictability in supply and demand has bullied the Kogan share price since February this year.

While the company noted it had resolved inventory pressures in its October update, it remains elevated from historical levels. The damage to the bottom line over the last year has led to Kogan being removed from the S&P/ASX 200 Index (ASX: XJO). This change will be effective from opening trade on 20 December 2021.

The post Why is the Kogan (ASX:KGN) share price jumping 5% today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 retail shares lift as Aussies head into Christmas with $240bn in savings
• Why Bapcor, Kogan, Sigma, and Zip shares are dropping today
• ASX 200 (ASX:XJO) midday update: Metcash jumps, Kogan and Zip sink
• Here’s why the Kogan (ASX:KGN) share price just hit another 52-week low
• These are the 10 most shorted ASX shares

Motley Fool contributor Mitchell Lawler owns shares of Kogan.com Ltd and Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Ionic Rare Earths Ltd (ASX: IXR) share price is taking off after the company announced its plan to acquire a rare earth technology developer.

The company has entered into a binding term sheet to purchase Seren Technologies Limited (SerenTech). It is now undergoing due diligence for the acquisition.  

At the time of writing, the Ionic Rare Earths share price is 4.55 cents, 10.98% higher than its previous close.

Let’s take a closer look at the takeover offer.  

Ionic Rare Earth share price soars on proposed acquisition

The market’s bidding the Ionic Rare Earths share price higher after the company announced an acquisition set to cost upwards of US$2.5 million.

SerenTech is a private company based in the United Kingdom. It has developed a unique rare earth separation technology.

The technology uses multifunctional amide ionic liquids to separate and refine rare earth elements. The resulting products have had more than 99.99% rare earth oxide purity at pilot scale.

Additionally, it can refine to high purity levels using mining ore concentrate or permanent magnet recycling.

It has demonstrated it can separate magnet rare earths – neodymium, praseodymium, dysprosium, and terbium – for modest capital requirements.

As a result, the company believes the technology will allow it to sell recycled magnetic rare earths to key markets in the United States, Europe, and Asia.

Under the acquisition’s terms, the company will pay US$1 million cash to SerenTech’s owners.

It will also provide them with 48 million new shares. If valued at 4.4 cents apiece, the shares are worth US$1.5 million.

On top of that, the deal could see Ionic Rare Earths paying the sellers 2 milestone payments, together worth up to US$1.5 million.  

The acquisition is conditional on Ionic Rare Earths completing its due diligence. It’s expected to go ahead in the second quarter of 2022.

Right now, the Ionic Rare Earths share price is 170% higher than it was at the start of 2021.

What did management say?

Ionic Rare Earths managing director Tim Harrison commented on the technology:

[SerenTech will advance] the company’s plan to unlock additional value from the unique critical and heavy rare earth basket to be produced at Makuutu.

Importantly, there is immediate potential to roll out a strategy incorporating permanent magnet recycling into the near-term activities of the company, providing an interim step to help bridge the gap between production at Makuutu and going downstream with our own dedicated separation and refining asset.

The post Ionic Rare Earths (ASX:IXR) share price leaps 11% on acquisition news appeared first on The Motley Fool Australia.

More reading

• Why the RBA and Treasury are weighing up central crypto
• Here’s why the Fortescue (ASX:FMG) share price is having a green day
• The Magellan (ASX:MFG) share price has lost 40% in 6 months. What now?
• Up 27% this week, what’s with the Advanced Human Imaging (ASX:AHI) share price?
• Marquee Resources (ASX:MQR) sprints 13% higher on lithium update

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It wasn’t too long ago that most governments were dismissive of cryptos.

Perhaps officials believed if they ignored the newly arrived digital currencies, they’d simply fade away.

Of course, we know how that’s worked out.

Combined crypto assets worth $3.5 trillion

The combined crypto market cap now stands somewhere north of US$2.5 trillion (AU$3.5 trillion.) And in Australia approximately 17% of the residents currently hold crypto.

With those figures in mind, the Aussie government is stepping up its efforts and pace to both regulate Bitcoin (CRYPTO: BTC) and its fellow altcoins, as well as formulating plans to launch its own digital currency.

As 9 News reported, “Treasurer Josh Frydenberg confirmed the Commonwealth and Reserve Bank were now working on the feasibility of a central cryptocurrency in Australia.”

On 3 November, Commonwealth Bank of Australia (ASX: CBA) became the first Aussie bank to offer crypto services to its customers.

According to notes from the treasurer’s speech, delivered today and published by The Australian this morning, Frydenberg says that despite the disruption digital assets have created:

The regulatory framework governing the payments system has remained largely unchanged over the last 25 years. Given the pace of change and those leading it, if we do not reform the current framework it will be Silicon Valley that determines the future of our payments system. Australia must retain its sovereignty over our payment system.

The Treasury and Reserve Bank of Australia (RBA) are looking into the possibility of launching an Aussie Central Bank Digital Currency (CBDC).

CDBCs are issued by central banks and the value is linked to the issuing nation’s fiat currency. In our case, that’s the Aussie dollar. One spruiked benefit is that it would simplify foreign exchange issues and international money transfers.

RBA governor Philip Lowe is scheduled to speak at the Australian Payments Network summit tomorrow to shed more light on the government’s plans for an Australian issued CDBC.

Industry consultation ‘critical’

Jonathon Miller, managing director of crypto exchange Kraken Australia, welcomed the news of potential Australian issued CDBCs. But he noted that CDBCs and cryptos like Bitcoin are still “very different”.

According to Miller:

We are fully supportive of any developments, like CBDCs, that seek to remove intermediaries. This reduces costs, improves efficiency and most importantly places financial decision making in the hands of private individuals. Whilst allowing a direct relationship between a Central Bank and private individuals and enterprises would give rise to many efficiency gains, it’s still very different from the promise that cryptocurrencies are delivering.

Miller also advised that regulators move with care in the nascent crypto world:

We urge caution when developing licensing and custody frameworks for digital currency exchanges and custodians…

It’s critical that the government consults with the industry so that best practice can be developed by looking at existing secure and trustworthy exchanges. The novel character of digital assets means there is no existing licensing regime that is appropriate.

The post Why the RBA and Treasury are weighing up central crypto appeared first on The Motley Fool Australia.

More reading

• Here’s why the Fortescue (ASX:FMG) share price is having a green day
• The Magellan (ASX:MFG) share price has lost 40% in 6 months. What now?
• Up 27% this week, what’s with the Advanced Human Imaging (ASX:AHI) share price?
• Marquee Resources (ASX:MQR) sprints 13% higher on lithium update
• ANZ Bank (ASX:ANZ) spruiks $400m tech rebuild with mortgage approval in 10 min

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum.  The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price is edging higher on Wednesday.

The world’s fourth-largest iron ore producer has kept relatively quiet over the past few weeks. However, since the beginning of November, the company’s shares have soared by 28%, highlighting renewed investor confidence.

In contrast, the S&P/ASX 200 Index (ASX: XJO) registered a 0.6% gain over the same timeframe.

In early morning trade today the Fortescue share price reached $18.07, trading back at September levels. At the time of writing, Fortescue shares are up 2.44% to $17.84.

What’s driving Fortescue shares higher?

News that energy behemoth AGL Energy Limited (ASX: AGL) will team up with green energy Fortescue Future Industries has excited investors.

Both companies have entered into a memorandum of understanding to develop a hydrogen hub for the Hunter Valley coal plants. Namely, this relates to the Liddell and Bayswater coal-fired power stations, which AGL plans to transform.

The Liddell coal-fired power station is scheduled to close down in 2023, with Bayswater going offline in 2025.

Notably, Fortescue boss Andrew ‘Twiggy’ Forrest will be involved with the development, which will consist of a 12-month feasibility study.

Furthermore, Fortescue’s primary commodity, iron ore, has rebounded from its lows last month, leaping to US$108.04 a tonne today. This represents a big difference from when the steelmaking ingredient was exchanging hands for US$91.98 a tonne.

The price of iron ore has been on a rollercoaster ride in 2021, rising to a record US$229 in May to recent year-to-date lows.

What do the brokers think?

This month a couple of brokers rated the company’s shares with varying price points.

Global investment bank Citi downgraded its outlook on the Fortescue share price from buy to neutral. The broker noted that China steel production cuts may persist through to the 2022 Chinese New Year on 1 February. Furthermore, it believes that a strong destock cycle is underway.

While this may seem negative at first, Citi continued on saying that China is now starting targeted monetary policy easing. This leads the broker to assume an increasing likelihood of a strong post-Chinese New Year recovery in iron ore demand.

Nonetheless, the broker retained its original 12-month price target on Fortescue shares at $18 apiece.

In addition to Citi’s assessment, JP Morgan weighed in, downgrading the company’s shares to neutral from overweight. It followed suit, cutting its outlook on Fortescue by 9.1% to $20 a share.

Fortescue share price snapshot

Over the past 12 months, Fortescue shares have declined close to 20% in value. However, when looking at year to date, its losses are further in the red by 25% for the period.

Fortescue commands a market capitalisation of roughly $54.31 million, and has over 3 billion shares on its registry.

The post Here’s why the Fortescue (ASX:FMG) share price is having a green day appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 mining shares are flying higher
• These were the 5 best-performing ASX hydrogen shares of November
• Rio Tinto (ASX:RIO) and Fortescue (ASX:FMG) share prices hit by broker downgrade
• Why did the Fortescue (ASX:FMG) share price outperform its sector today?
• Why has the Fortescue (ASX:FMG) share price had such a lousy start to December?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Magellan Financial Group Ltd (ASX: MFG) share price has declined by around 40% over the last six months. What’s going to happen next?

There have been various factors that have turned some analysts sour on the funds management business including investment fund underperformance and fund outflows.

But the latest event that investors have to wrap their heads around was the surprise exit of the Magellan CEO, Brett Cairns.

CEO departure

Earlier this week, Magellan announced that Mr Cairns had resigned as CEO for “personal reasons” and will be leaving the company.

Mr Cairns has been involved with the business since 2007 when he started as a non-executive director and eventually became CEO in 2019. He was “instrumental” in developing Magellan’s exchanged-traded products as well as developing the retirement product called Futurepay.

Taking the role of interim CEO is Ms Kirsten Morton, who has been the chief financial officer for over eight years. Magellan stated she has a detailed understanding of Magellan and its operations, having joined the senior management team in 2013.

The Australian reported on speculation that there had been a rift between Mr Cairns and chair and co-founder Hamish Douglass, though Magellan denied that was the case.

Whilst the Magellan share price is currently up 2.5%, it’s still down around 8% this week.

Latest funds under management (FUM) update

On the morning of the CEO’s resignation announcement, the fund manager revealed that its FUM had increased $1.6 billion over the month of November 2021.

Analysts at UBS calculated that whilst Magellan seemed to benefit from net inflows during the month, it was lower margin institutional inflows that offset higher margin retail outflows.

Continuing with UBS’ thoughts on the business, the broker still believes that Magellan’s revenue growth could be challenged from potential outflows and lower management fees. That’s one of the main reasons why UBS currently rates the Magellan share price as a sell, though the price target is $29.50.

Valuation

Based on UBS’ numbers, the Magellan share price could be valued at 12x FY22’s estimated earnings with a partially franked dividend yield of 7.5% in FY22.

However, whilst investors are questioning the funds management side of Magellan, the business has been diversifying its business recently.

Magellan Capital Partners

Magellan Capital Partners has been created to make investments that could bring strategic benefits to the company and enhance Magellan’s intellectual capital.

The three major investments it has made are FinClear, Barrenjoey and Guzman y Gomez (GYG).

FinClear provides trading infrastructure, services and technology solutions that support businesses in wealth management and stockbroking. It owns iBroker, a post-trade system that underpins more than 15% of all transaction value traded on the ASX and Chi-X exchanges, including all that is executed through CommSec. Magellan owns 15% of FinClear which cost $23 million.

GYG is a fast service Mexican food restaurant which has operations in Australia, Singapore, Japan and the US. Global sales last year were $445 million. It’s planning to open another 30 stores next year and Magellan says that it has a long pathway ahead, with large global growth potential and good drive-through economics. Magellan invested $103 million for a 12% stake of GYG.

Barrenjoey is a new full-service financial services business that operates across corporate finance, equities, fixed income and research. Magellan said that it believes it’s “highly likely that Barrenjoey will become very valuable to Magellan over time”. It spent $156 million for a 40% economic stake in Barrenjoey.

However, at the moment analysts aren’t attributing much value to these investments within the Magellan share price.

The post The Magellan (ASX:MFG) share price has lost 40% in 6 months. What now? appeared first on The Motley Fool Australia.

More reading

• Why Carsales, Magellan, Nickel Mines, and Sigma shares are dropping
• Leading brokers name 3 ASX shares to sell today
• ASX 200 (ASX:XJO) midday update: Zip update impresses, BOQ rises
• Why the Magellan (ASX:MFG) share price is sinking to 52-week lows
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Advanced Human Imaging Ltd (ASX: AHI) share price is having an incredible run this week.

Shares are swapping hands at $1.10 at the time of writing, up 27.5% since the close of trade on Monday.

Advanced Human Imaging is a company developing human scanning technology for smartphones.

What’s the latest?

The Advanced Human Imaging share price was off and racing last week with no new news released.

The company listed on the Nasdaq in November, so let’s take a look at its recent performance on the United States exchange for more perspective.

Shares in the company’s US-listed ticker (NASDAQ: AHI) surged 36.2% on the first trading day of the week in the US to $6.02.

Also on Monday, the company informed investors it had accelerated the rollout of new technology as a result of the COVID-19 pandemic and the need for access to remote care.

The company has developed patented technology that enables people to check, track and assess health data using a smartphone “via the combining of body dimensions, body composition and vital signs”.

Advanced Human Imaging said it has improved its mobile-device risk assessment, advanced 2D-3D capturing and was now offering real-time personalised health data.

The company will also launch derma scanning on the skin using artificial intelligence at a Las Vegas technology conference in January 2022.

What did management say?

CEO Vlado Bosanac said:

We accelerated the rollout due to the increase we have seen in the telemedicine and telehealth industry due to the COVID-19 pandemic.

We are addressing an immediate need posed by incoming enquiries and new partner opportunities across the health, mHealth and insurance sector.

Advanced Human Imaging share price snapshot

It has been a bumpy ride for the company of late. The Advanced Human Imaging share price has lifted 10% in the past 12 months but is down around 14% this year to date.

In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned nearly 10% in the past year.

The post Up 27% this week, what’s with the Advanced Human Imaging (ASX:AHI) share price? appeared first on The Motley Fool Australia.

More reading

• The Advanced Human Imaging (ASX:AHI) share price is leaping 46%. Why?
• What sent the Advanced Human Imaging (ASX:AHI) share price down 18% today?
• Here’s why the Advanced Human Imaging (ASX:AHI) share price is frozen

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Shares in mineral exploration company Marquee Resources Ltd (ASX: MQR) are charging up with authority today, currently trading at 12 cents apiece.

Shares in the company rallied as much as 13% in early trading before retracing back to their current gain of 9% on the day.

Marquee shares are catching bids as investors respond positively to a company announcement on the West Spargoville Project. Here are the details.

What did Marquee Resources announce?

The company advised that, after recent drilling and geological review of the site, it has identified potential to identify lithium bearing lithium-ceasium-tantalum (LCT) pegmatites within the project area.

Marquee has subsequently received the final results from a 55.5 line-kilometre, Deep Ground Penetrating Radar (DGPR) survey that was recently completed at the site.

DGPR is a contemporary geophysical tool for imaging the earth’s subsurface. The company says it works in a comparative manner to the “seismic velocity-depth method, utilizing variable wavelength radar pulses which experience refractions, reflections and diffractions at geological boundaries where the dielectric constant change”.

It has gained traction as a preferred method in field studies in recent times due to its rapid acquisition and cost efficiency.

Marquee says the DGPR interpretation provides a “strong basis for favourable structure in the area as well as identifying numerous target features for follow up drill testing”.

The Company is also nearing completion of a 3,200 hole auger program. Sampling will be completed within the “coming days”, per the release.

Due to the increased demand placed on laboratories during the current quarter, assay results have been delayed, however, first results should be delivered in the second week of December, according to the announcement.

Aside from this, Marquee Resources also announced that the remuneration of the company’s Executive Chairman, Charles Thomas, has increased from $150,000 per annum to $240,000 per annum – a 60% increase in yearly salary.

This change in remuneration is to “recognise Mr Thomas’s increased workload and also to bring his remuneration into line with industry standards”.

 Management commentary

Speaking on the announcement, Thomas said:

We are very excited about some of the targets that have come out of the DGPR data. The geophysicists are particularly excited about what have been interpreted as “layered anomalies” which may represent large targets and should be drill tested as soon as possible. This is in addition to multiple pegmatite-like structures that have been mapped throughout the survey area.

Thomas continued:

We are also days away from completion of the auger geochemistry program with results expected imminently, so it has been a busy period of exploration at West Spargoville. During the auger campaign the field crew have also been mapping and sampling numerous outcropping pegmatitesso piece by piece we are unlocking the lithium potential of the Project. The Company is perfectly positioned to drill test some exciting targets first thing in the new year.

Marquee resources has climbed almost 67% in the last 12 months after rallying another 85% this year to date.

In the past month, it has gained more than 4% and is flat on the previous week of trading.

The post Marquee Resources (ASX:MQR) sprints 13% higher on lithium update appeared first on The Motley Fool Australia.

More reading

• Marquee Resources (ASX:MQR) share price leaps 17% on ‘spectacular’ drilling results

The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price is not joining the market rally this morning after the bank unveiled a new fintech platform.

Shares in the big ASX bank have dropped 0.36% to $27.36 in early trade, while the S&P/ASX 200 Index (ASX: XJO) has jumped 0.78%.

ANZ announced today that customers can register for its digital banking service called ANZ Plus. The mobile app will be available from early 2022.

New tech to support ANZ Bank’s share price longer-term

ANZ Plus is one of the offerings on the bank’s new technology platform ANZx that’s aiming to help the bank better compete in the digital space. It’s a move to shore up its position amid new fintech upstarts and even other big banks like the Commonwealth Bank of Australia (ASX: CBA) which have been stealing its market share.

The new app aims to give customers better oversight and control over their money. Customers can manage spending, get detailed transaction data, set saving goals, be alerted to upcoming bills and more.

But there’re a few interesting takeaways from ANZ Bank’s digital transformation that investors should be aware of.

Trying to regain the IT edge

The new tech platform is seen as ANZ’s bid to compete with the IT prowess of CBA, regarded as the tech leader in the domestic banking space. It is CBA’s tech superiority that accounts for much of its valuation premium to other ASX banks.

While CBA rebuilt its core IT systems more than 10 years ago, ANZ hasn’t committed to such a major upgrade.

The workaround is ANZx which builds on the bank’s existing systems and, reportedly, allows it to become “future ready”.

The new platform is much cheaper to build and is funded from efficiency savings from other parts of ANZ Bank’s operations. The possible downside is that it may be riskier given inherent difficulties in getting new systems to work seamlessly with the old.

The 10-minute loan from ANZ

ANZ Bank is counting on the new platform to help it turn around its struggling mortgage processes. The bank is the only one of the big four ASX banks to lose market share for mortgages. This is largely because it takes a sluggish 51 days (median) for the bank to approve loans.

According to the Australian Financial Review, the bank’s new app should be able to cut this down to just 10 minutes.

It can do that because app users will essentially be giving the bank significant oversight of their personal details and finances.

Users may have to decide how comfortable they are about privacy boundaries. In any case, it will still take about a year for that feature to arrive on the app.

Fight back for the ANZ Bank share price

There’s another key reason behind ANZ Bank’s large digital investment that may not be as obvious. This relates to its over-dependence on mortgage brokers.

The app has the potential to circumvent this channel which will go a long way in helping the bank protect its precious net interest margin.

No one likes paying trailing commissions – not even banks.

The post ANZ Bank (ASX:ANZ) spruiks $400m tech rebuild with mortgage approval in 10 min appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 retail shares lift as Aussies head into Christmas with $240bn in savings
• RBA maintains interest rate but removes 2024 reference. What could this mean for ASX shares?
• CBA share price struggling today amid sliding home buying intentions
• Here are the 3 heaviest traded ASX 200 shares this Tuesday so far

Motley Fool contributor Brendon Lau owns shares of Australia & New Zealand Banking Group Limited and Commonwealth Bank of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

There was a big bounce in cryptocurrencies on Tuesday as investors bought risk assets in a big way. Not only is the S&P 500 up 2.1% at 11:30 a.m. ET, the Nasdaq Composite is up 2.8% and many high-growth stocks that have been beaten up over the past few weeks are up double digits. 

Three of the most notable moves in cryptocurrencies are Cardano (CRYPTO: ADA) trading 6.9% higher over the past 24 hours, Polkadot (CRYPTO: DOT) gaining 14.7%, and Solana (CRYPTO: SOL) rising 3.5%. Those are nice moves for investors, but keep in mind that the cryptocurrencies are down 11.1%, 15.3%, and 3.9%, respectively, over the past week. 

So what 

I see two major reasons for today’s move, with the biggest being the market overall moving higher. Cryptocurrencies have actually traded right along with tech and growth stocks over the last few months although often exaggerating the market’s moves, and today is no different. This is part of what’s known as a “risk-on” trade in the market because investors are bidding up risky assets. 

More important long term is the fact that India is discussing legislation that would put rules around the cryptocurrency industry. According to a report from Bloomberg, assets would need to be declared and would be taxed like other securities, but there were indications that India wouldn’t try to create its own cryptocurrency or ban crypto altogether. 

Investors are trying to determine what the rules of the crypto market will be long term. As huge markets like China and India set out their rules it could potentially bring billions of people into the crypto market or block them altogether, as China has done. For now, it appears that people in India will be allowed to enter the crypto market, even if there are some rules for their investments. 

Now what 

The sell-off of cryptocurrencies that began about a month ago seems to have paused as values rise again. But I’m cautious about being too bullish on crypto assets at the moment. The Federal Reserve and Congress don’t seem keen on adding more money or stimulus to the market right now, and that could remove some money from the market. 

Panic selling is never a great idea, but this is a great time to take a step back and look at the value cryptocurrency is adding to the market long term. In the case of Cardano, Polkadot, and Solana, their leaders are thinking about utility and lower transaction costs, which I think will add long-term value. This may be a rocky ride as volatility continues, but for cryptocurrencies that can add real value to users and businesses — not just an asset to trade — there’s still upside ahead for investors holding these cryptocurrencies long term. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Cardano, Polkadot, and Solana all popped on Tuesday appeared first on The Motley Fool Australia.

More reading

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• Crypto market crash: The latest on Solana, Cardano, Ripple, and Terra
• This crypto could be the Moderna of 2022
• Why Solana is up today amid a sea of red for major cryptos
• Australia’s first direct Bitcoin and Ethereum ETFs are launching

Travis Hoium owns shares of Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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