Gfinity has announced two significant developments: the acquisition of an exclusive license for advanced artificial intelligence technology and a successful fundraising round.

Shares spiked over 40% higher on Wednesday as a result.

The company has entered into an exclusive licensing agreement with 0M Technology Solutions Ltd for their Connected IQ (CIQ) technology, which specialises in contextual connected video advertising.

Under the terms of the agreement signed on February 4, 2025, Gfinity will pay a royalty fee of 30% of net profits generated from the license.

Connected IQ offers advertisers improved contextual video marketing opportunities powered by machine learning to enhance the relevance of the videos with which adverts are associated. Contextual advertising is growing in popularity amid increasing privacy laws that diminish the targeting of specific audiences on advertising networks.

Alongside the strategic move into the AI video arena, Gfinity has raised £245,000 through a subscription with third parties at 0.0625 pence per share. Additionally, Director David Halley has indicated his intention to subscribe for £15,000 worth of shares at the same price, bringing the total fundraising to £260,000 before expenses.

“The funding allows us to continue our push into sectors which we think are exciting for the Company, namely Connected TV, Online Video and Artificial Intelligence,” said David Halley, CEO of Gfinity.

“In addition, through our commercialisation of CIQ, we will gain an experienced team of Data and AI specialists to support our development.”

The company plans to leverage its existing advertising sector network and digital media monetisation expertise alongside CIQ’s established relationships with top-tier agencies and sell-side platforms. However, investors should note that CIQ is still in its early stages with a limited sales track record, and 0M Technology Solutions is a newly formed company with no published accounts.

The FTSE 100 was broadly flat on Wednesday as traders gathered their thoughts after the US president launched a trade war against some of the USA’s closest trading partners.

Despite Donald Trump agreeing to a 30-day delay in tariffs on Mexican and Canadian goods, financial markets remain vulnerable to any further developments in the tariffs spat, with traders wary of his next move. 

“A sense of calm returned to markets after the tariff-related tantrum. Wall Street recorded decent gains last night while Europe held firm this morning,” said Russ Mould, investment director at AJ Bell.

“The elephant in the room remains China as Donald Trump has not backed down from a trade spat. Retaliation is underway and that’s led to the cancellation of a meeting between the two country leaders.

“The decision by the US Postal Service to stop accepting parcels from mainland China and Hong Kong shows the severity of the matter. That’s disastrous for big Chinese e-commerce platforms that send goods to the US including Shein and PDD-owned Temu.”

Although the volatility has subsided, the unpredictability of Trump’s economic policy will have markets on the edge of their seats for the foreseeable future. This will likely lead to markets trading headline to headline until significant monetary policy developments take centre stage again.

The FTSE 100 was down 0.1% at the time of writing, with positive corporate updates helping to provide some support for the index. 

GSK shares shot to the top of the FTSE 100 leaderboard after announcing a sharp increase in oncology drug sales that helped group sales rise 7% on a constant exchange rate basis.

Investors will be delighted with the 6% jump in GSK shares on Wednesday after a fairly torrid 2024 for the stock. 

“GSK’s latest earnings update brings some welcome relief for investors. After falling 20% since May, GlaxoSmithKline’s shares have struggled, weighed down by legal and political challenges that have lingered like a stubborn cold,” said Mark Crouch, market analyst at investment platform eToro.

“However, following a better-than-expected fourth-quarter, Glaxo now projects sales to grow by up to 5% in 2025. Strength in its HIV and oncology portfolios has been a key driver, offsetting weaknesses in vaccine sales as GSK generated £3 billion in free cash flow.”

Frenillo jumped 3% to 741p after JP Morgan hiked its price target to 1,000p.

BP and Shell were slightly bid despite oil prices falling again amid Trump’s trade war, which threatened to disrupt both the demand and supply sides of the crude market.

“Crude oil futures remained under pressure after a turbulent session, as traders reacted to rising U.S. stockpiles and escalating Sino-U.S. trade tensions,” said Joseph Dahrieh, Managing Principal at Tickmill.

“China’s tariffs add uncertainty and their broader impact on the global supply and demand of energy products could fuel some risks. Prices initially dipped after China imposed tariffs on U.S. energy imports but later rebounded when President Trump reaffirmed his strategy to apply maximum pressure on Iran, aiming to curb its crude exports. With sanctions potentially removing up to 1.5 million barrels per day from global supply, the market found some support.”

SSE shares were fairly flat after announcing a 26% in renewables output so far in their financial year and confirmed adjusted earnings per share would be similar to the last two years.

SSE has announced its earnings guidance for fiscal year 2024/25, projecting adjusted earnings per share between 154 and 163 pence, broadly in line with profits over the past two full-year periods.

The forecast reflects robust operational performance despite variable weather conditions during the third quarter, with business unit operating profit expectations remaining stable.

The company’s renewable energy division has grown, with generation output increasing by 26% year-on-year for the first nine months of the fiscal year.

The improvement is attributed to both expanded capacity and weather conditions, though January has continued to see variability in weather patterns affecting the renewables fleet.

SSE’s ambitious green energy expansion plans are advancing, with several key projects reaching important milestones.

The company’s transmission arm, SSEN Transmission, unveiled its RIIO-T3 Business Plan in December 2024, outlining investments of at least £22 billion in critical grid infrastructure through 2031. The plan includes potential additional expenditure of £9.4 billion, which could bring total investment to approximately £32 billion over the price control period.

In renewable energy development, the company achieved first power at its 101MW Yellow River onshore wind farm and made a financial investment decision on the 208MW Strathy South onshore wind farm.

Progress continues on the flagship Dogger Bank offshore wind farm, with turbine installation ongoing for the first phase. The project’s future phases received a boost with the confirmation of a second installation vessel secured for 2026.

Further strengthening its power generation portfolio, SSE Thermal has committed to building the Tarbert Next Generation power station in County Kerry, Ireland. The 300MW sustainable biofuel plant, supported by a 10-year capacity agreement, is scheduled for completion in late 2027 and will contribute to Ireland’s energy security and low-carbon objectives.

“Thanks to our focus on renewables, networks and system flexibility, we are a key delivery partner in the UK’s Clean Power Action Plan,” said Barry O’Regan, Chief Financial Officer.

“As we look to the opportunities presented by decarbonisation our focus remains on capital discipline, strategic delivery and the efficient operation of our value-creating assets.”

The FTSE 100 started Tuesday’s session on the back foot despite a delay to Trump’s tariffs on Mexico and Canada.

The UK’s flagship index fell over 0.5% in early trade but recovered as the session progressed to trade down by 0.1% at the time of writing.

Last-minute delays to tariffs on Canada and Mexico will be a minor relief for markets, but Trump’s actions over the past three days will leave traders wary of his unpredictability, which will ultimately weigh on risk assets.

Trump’s approach may just be viewed as unconventional negotiating tactics, but the disruption and fear they cause have the potential to be inflationary and cause long-term bitterness among close allies. 

The S&P 500 had rallied off the lows steadily during yesterday’s session. However, the news of retaliation by China resulted in a softening of futures in the European session. 

“There are more twists and turns to the tariff situation than a theme park rollercoaster,” said Russ Mould, investment director at AJ Bell. 

“One minute we’ve got eleventh-hour deals to temporarily halt tariffs on Mexico and Canada, and the next we’ve got China flexing its muscles and showing it isn’t a pushover.

“China has hit back at tariffs imposed on its goods imported into the US by saying it would retaliate with its own tariffs. It’s like two cats screaming at each other in the street, tails puffed up and fangs on display.”

Yesterday, the FTSE 100 fell in a broad sell-off, impacting most companies. However, on Tuesday, there was more targeted selling of UK-listed companies directly impacted by the escalating trade war.

BP and Shell both dropped after China retaliated against Trump with a 10% tariff on US crude oil, which sent prices down and knocked the FTSE 100 oil majors.

Diageo was lower despite reporting reasonable half-year results. Organic net sales grew 1% in the half-year period, which will be welcome news to investors after a string of disappointing earnings releases.

The threat of tariffs was the major factor weighing on Diageo shares on Tuesday. Alcohol has become a leading battleground between the US, Canada and Mexico, threatening the sales of Diaego’s leading brands in the US, a major contributor to the group’s revenues.

“Diageo returned to growth in the first half of its fiscal year, with strong performances in Guinness and Tequila offsetting weakness in other spirits. This is a solid performance given industry headwinds,” said Charlie Huggins, Fund Manager at Wealth Club.

However, Trump’s 25% tariffs on Canadian and Mexican imports have the potential to stop this recovery in its tracks.

The US is Diageo’s largest market. To compound matters, the biggest impact of tariffs would be felt on Tequila, which is the fastest growing part of Diageo’s portfolio.”

The Lloyds share price has enjoyed a sharp rally from January’s lows around 53p to trade above the key 60p level, where it has since remained trading in a tight range.

The catalyst for the rally in January was a shift in expectations around interest rates amid concerns about stagflation in the UK and positive news around motor insurance litigation and potential redress that could cost Lloyds billions.

Chancellor Rachel Reeves intervened in the motor financing litigation process to prevent any “considerable economic harm” through higher motor financing costs in the future and impact on banking capitalisation. This was a major win for Lloyds and its investors, who now await further developments with a semblance of optimism.

The other major factor at play for Lloyds’s share price is the expectations of the number of interest rate cuts in 2025.

Interest rate traders rolled back pricing on the number of interest rate cuts they saw in January 2025, with the Bank of England appearing to have their hand tied by stubbornly high inflation, and potential stagflation.

This is a double-edged sword for Lloyds.

The prospect of interest rates staying higher for long is a major positive for Lloyds and other banks as it provides the opportunity for higher net interest margins and greater profitability.

However, in recent days, the number of interest rates predicted by interest rate markets has grown, suggesting the Bank of England will indeed have to act on interest rates to stem the UK economy’s decline caused by the Labour government’s economic policies.

There is an argument this hasn’t been properly priced into Lloyds shares yet.

That said, traders have a balancing act to contend with. While interest rates may fall later in the year, underlying demand for mortgages and other products remains robust. With underlying demand remaining strong, the volume of products sold will offset any impact on earnings from lower interest rates. This is reflected in the sideways nature of trade in Lloyds in recent days.

The positive macro factors seem to be priced into Lloyds, leaving the stock needing additional developments to break higher.

From a technical perspective, Lloyds formed a number of small gaps higher during the run higher, leaving the stock vulnerable to a pullback to close these gaps.

The first small gap was around the 54p level in mid-January, and the second more material gap occurred from 59p to 61p in late January. In the grand scheme of things, these gaps are relatively small. That said, technical traders will be eyeing the close of these gaps if the stock retreats.

In addition, Lloyds has become horribly rangebound, and the wider range of 63p – 53p will take some breaking. With shares near the top end of this range, the weight of historical price action favours a decline in Lloyds shares in the absence of any majorly positive macro developments.

Results due for release later in February could prove to be the next major catalyst.