City A.M. Latest Edition

LONDON’S BUSINESS NEWSPAPER

CAM ON NORRIE LAST BRIT LEFT LOOKS FOR SPOT IN SEMIS P20 TUESDAY 5 JULY 2022

STRIPPED BACK CATERHAM WITH NO DOORS BUILT FOR DRIVING FUN P18

CITYAM.COM

ISSUE 3,771

FREE READY FOR DEPARTURE

Easyjet exec resigns amid travel chaos ILARIA GRASSO MACOLA

KHAN AND STARMER CLASH ON BREXIT

STEFAN BOSCIA

LABOUR’s post-Brexit position came under the spotlight yesterday as a split between Sir Keir Starmer and Sadiq Khan on the UK’s relationship with the EU was reopened.

Starmer used a major speech last night to say the UK would not rejoin the EU’s single market under a Labour government, while also accusing Boris Johnson of “missing out on Brexit opportunities”.

“You cannot move forward or grow the

country or deliver change or win back the trust of those who have lost faith in politics if you’re constantly focused on the arguments of the past,” Starmer said.

“Under Labour, Britain will not go back into the EU. We will not be joining the single market. We will not be joining a customs union,” he said.

The Labour leader outlined a five-point plan to “make Brexit work”, which included pursuing “mutual recognition of professional qualifications” with the EU to

boost the UK’s services sectors.

The speech – delivered at the Irish embassy in London – was a clear sign Labour will try to engage more on Brexit amid Conservative party attacks suggesting Starmer would bring the UK back into Brussels’ orbit.

But the Mayor of London yesterday opposed Starmer’s comments and said the UK should rejoin the single market.

“We can’t go back into the European Union, the British public have spoken,

what we can do though is to make sure we have the least worst option,” Khan said in an interview with the BBC. “For me that is being members of the single market.”

If the UK re-joined the single market it would mean freedom of movement for people, goods, services and capital between Britain and EU member states.

A senior Labour source told City A.M. the Mayor’s intervention “wasn’t ideal”, but that Khan “doesn’t hold any sway in the shadow cabinet”.

EASYJET’s chief operating officer resigned yesterday as the airline continues to handle the fallout from the travel chaos that has engulfed many of Europe’s major airports.

The airline’s board announced yesterday that Peter Bellew, who joined Easyjet two and a half years ago, resigned on Friday to “pursue other business opportunities”.

The company added, however, that Bellew would briefly stay with the company to “ensure a smooth transition”.

Easyjet shares fell 4.4 per cent yesterday following the news.

Bellew’s resignation comes at a tough time for the airline.

Last month, Easyjet was forced to axe one in 10 flights across its network for the summer period in response to staff shortages.

Meanwhile, around 450 Spanish cabin crew staff walked out last weekend over deteriorating working conditions.

The carrier faced further criticism over the weekend after it emerged that its executives were jetting off for two nights to a luxury resort in Mallorca.

Easyjet defended the trip, saying it was “entirely appropriate for the management board to undertake business meetings around the network”.

Kellogg’s loses legal challenge against government’s new sugary foods rules EMILY HAWKINS CEREAL giant Kellogg’s yesterday lost its legal challenge against the government’s new rules that restrict the promotion of sugary products in supermarkets.

The New York-listed food titan had argued that because cereal is

eaten with milk in the vast majority of cases, milk should be included in the nutritional calculations that determine whether a product is too unhealthy to be sold as buy-one-getone-free.

But yesterday Justice Thomas Linden ruled against Kellogg’s, pointing out this was “not

invariably the case” and cereals could also be eaten dry or with yoghurt, for example.

Kellogg’s lamentations that it would lose around £5m in annual profit also ironically highlighted the government’s intended effect, Linden added.

Kellogg’s UK managing director,

Chris Silcock, said the firm was “disappointed” with the ruling but added that it would not appeal.

Under upcoming regulations, retailers will face restrictions on food and drink high in fat, salt or sugar (HFSS) in England. The new rules come as part of ministers’ bid to tackle childhood obesity.

Popular products – including Kellogg’s Crunchy Nut Corn Flakes and Fruit and Fibre – will be banned from display in store areas such as check outs and entrances.

While the rules were supposed to fully launch in October, the government delayed them by a year due to the cost of living crisis.

INSIDE UK ON BRINK OF INDIA TRADE DEAL P3 PRET BACK IN THE BLACK P4 COVID FRAUD CRACKDOWN P11 DANGERS OF OFGEM REFORMS P13 OPINION P16 SPORT P19

02

NEWS

CITYAM.COM

TUESDAY 5 JULY 2022

STANDING UP FOR THE CITY

Simply hiding cereal boxes in shops won’t trim our waistlines

A

T A TIME when people are struggling to eat at all, you would think the government would be less concerned with where cereal boxes are placed in supermarkets and more fussed with how many families can afford to buy them.

Not so, as Kellogg’s failed attempt to appeal the government’s new sugar rules in the High Court yesterday showed us.

Some of Kellogg’s cereals are too unhealthy to be put on prime

THE CITY VIEW display in stores or online, say the new rules linking the prominence of display to health profiles. It will transform the way £17bn of food is sold.

At the same time, Boris Johnson refused to make a decision on banning meal deals, and,

paradoxically, introduced caloriecounts on menus.

So to recap: we’ll tell you the most basic nutritional value of your roast, hide your favourite cereal at the back of the Sainsbury’s and incentivise people to buy, oh yes – crisps.

This comes as the cost of obesity to the NHS is set to rise £9.7bn by 2050, according to the King’s Fund. In 2019/20, there were more than one million hospital admissions linked to obesity –

clearly there is a threat to individuals’ physical health and the nation’s fiscal health and it is a challenge we need to confront.

The nature of the problem necessitates some kind of intervention, but it must be carefully backed up by enabling people to take control over their own health in a way that truly matters – to understand the difference between 180 calories of sweets and 180 calories of roast vegetables.

TOWER HILL ALIVE WITH WILDFLOWERS In honour of the Queen’s Platinum Jubilee, the Tower of London has sown 20m seeds in its moat to create a landscape of colours

Calorie counts are crude measurements which obscure the nutritional value of foods behind one lump sum.

Kellogg’s cereals have been sold in the UK since 1922 – people are not simply going to forget they exist. Shrinking down the nation’s waistlines starts in schools, with increasing our physical activity and making sure people are well-fed. It surely does not start with simply hiding the easy option from view.

WHAT THE OTHER PAPERS SAY THIS MORNING THE DAILY TELEGRAPH

APPROVE A MINI NUCLEAR REACTOR OR DELAY GREEN REVOLUTION, PM TOLD

Boris Johnson must give approval for a pioneering Rolls-Royce mini nuclear reactor project in the next six months or risk delaying a project vital to his green energy revolution, the company warned.

THE FINANCIAL TIMES

TURKISH INFLATION NEARS 80 PER CENT AS ERDOĞAN’S POLICY TAKES TOLL

Turkish inflation reached almost 80 per cent as President Erdogan’s unconventional monetary policy and the war in Ukraine’s disruption to food and energy imports took a heavy toll.

THE TIMES

SUPERDRY DESIGNER WINS £100,000 PAYOUT OVER AGE DISCRIMINATION CLAIMS

Rachel Sunderland, a designer for the fashion brand Superdry, has been awarded £96,000 in damages after she was passed over for promotion because of her age.

Germany registers first trade Premier League ask clubs to implement deficit in over three decades gambling sponsor ban to avoid reform JACK BARNETT SURGING European energy prices caused by Russia’s invasion of Ukraine has left Germany with its first trade deficit in over three decades, official figures released yesterday revealed.

German imports outstripped exports for the first time since 1991, generating a €1bn (£862m) trade deficit in May, according to the country’s statistics agency.

Exports dropped 0.5 per cent, while imports climbed 2.7 per cent to over €125bn (£108bn).

Oil and gas prices on the continent have jumped as a result of Russia choking flows in response to western sanctions.

Those higher prices have widened the difference between what Germany receives for its exports and what it pays for its imports.

Activity in Germany’s manufacturing sector has been cooled by firms struggling to secure resources due to global supply chain pressures. Economists have warned the eurozone economy will tip into recession if Russia cuts off all energy flows.

MATT HARDY PREMIER League clubs have been asked to back a voluntary ban on shirt sponsorships relating to gambling companies as the English football’s top flight looks to avoid legislation that could be part of a gambling White Paper due in the coming weeks.

According to Sky Sports, clubs were contacted yesterday by their governing body with regards to removing betting sponsors after recent reports suggested that political interference could ban gambling firms from being main shirt sponsors.

Almost half of Premier League clubs were involved with betting companies last year while Everton signed a new deal with Stake.com in June.

“The reality is that all commercial revenue in the Premier League is that the ‘big six’ aren’t reliant on a gambling company but the other 14 clubs are going to be wanting to challenge this in some way,” Everton struck a deal with Stake.com in June

JMW’s head of sports services told City A.M. “It looks like the reforms aren’t going to take gambling out of the sport entirely, but it could from shirts.”

Should the Premier League be successful in implementing this voluntary ban, it is unknown as to whether the government would back down from any more severe measures in the parliamentary White Paper. The Premier League declined to comment on the reports.

TUESDAY 5 JULY 2022

CITYAM.COM

PM to secure UK India free trade deal by October STEFAN BOSCIA BORIS Johnson has confirmed the UK plans to sign a post-Brexit free trade deal with India by October as negotiators prepare for a fresh round of talks this month.

The PM told MPs yesterday that he was aiming to have the deal completed by the Indian holiday of Diwali as he doubled down on a promise made during his trip to New Delhi in April.

The UK government’s negotiators will travel to New Delhi this month to restart official talks and discuss issues such as India’s large barriers to City of London financial services firms.

The UK is also trying to get India to drop its 150 per cent tariffs on Scotch whisky and other trade barriers on goods like British-made machinery.

A senior source at the Department for International Trade (DIT) said it was “a good sign” India’s government last year softened trade barriers to overseas insurance firms, which has allowed them

to increase how much they can invest in the country.

“India has traditionally had a protectionist economy when it comes to services – this is not news,” they said.

“But the fact they’re already moving in the right direction on things like the insurance industry shows there is real momentum when it comes to services and that a deal can be struck.”

Closing a deal with India, the world’s sixth largest economy, is seen as a major prize for the UK post-Brexit.

Prime Minister Narendra Modi has not made trade agreements a priority during his eight-year reign. However, India’s recently signed economic and trade agreement with Australia has raised hopes in London that Modi is now looking to tear down his country’s trade barriers.

It has been suggested that India’s recent slowdown in economic growth may have changed attitudes within the government about the need to embrace more international trade.

NEWS

03

Number 10: PM was aware of Pincher claims STEFAN BOSCIA

UK Power Networks is the largest electricity distribution network operator in the UK

Power network £15bn takeover deal collapses after price hike NICHOLAS EARL THE PROPOSED £15bn takeover of Britain’s largest electricity distributor by a consortium led by KKR and Australia’s Macquarie collapsed yesterday after a last-minute demand to raise the sale price.

Billionaire tycoon Li Ka-shing’s CK Infrastructure Holdings (CKI) – which bought UK Power Networks for £5.5bn

in 2010 – tried to elevate the sale price just two days before the deal was due to be signed last month, according to The Financial Times.

The six-member consortium decided the asking price was too high and pulled out of the takeover.

CKI’s decision follows a sharp rise in UK inflation which is currently running at 9.1 per cent, its highest level since the early 1980s.

NUMBER 10 has admitted Boris Johnson was aware of “reports and speculation over the years” that Chris Pincher had a history of alleged sexual misconduct before he hired him as deputy chief whip.

Johnson’s official spokesman said that “in the absence of any formal complaint it wasn’t deemed appropriate to stop the appointment because of any unsubstantiated allegations”.

Tory MP Chris Pincher resigned on Thursday as Johnson’s deputy chief whip – a position responsible for party discipline – after he allegedly groped two men at an event last week.

He was previously accused of sexually harassing a Labour MP in 2017 and of making unwanted sexual advances toward an Olympic rower in the same year.

However, the Tory HQ found that he had not breached the party’s code of conduct.

Pincher had the Tory whip suspended on Friday, after it was initially decided he would be able to remain in the party, and is the subject of a parliamentary investigation.

Online platforms will have legal duty to fight foreign state disinformation ILARIA GRASSO MACOLA ONLINE platforms will have the legal obligation to take “proactive, preventative action” against any statesponsored disinformation, under a new government amendment.

The change will link the National Security Bill and the Online Safety Bill by adding a new foreign interference offence to the list of

priority offences within the new internet safety rules.

“We cannot allow foreign states or their puppets to use the internet to conduct hostile online warfare unimpeded,” said digital secretary Nadine Dorries.

Under the new legislation, platforms will need to tackle bots as well as do risk assessment for illegal content and put in place systems and

processes to avoid users encountering hurtful contents. Stakeholders will draw on Ofcom’s codes of practice to help carry out such duties.

The regulator will have the power to penalise companies who fail to comply with fines of up to 10 per cent of their annual global turnover.

The Online Safety Bill was recently accused by think tank IEA of hindering freedom of speech.

Digital secretary Nadine Dorries said protections were needed against online warfare

04

NEWS

TUESDAY 5 JULY 2022

CITYAM.COM

Fintech Revolut ventures into physical retail EXCLUSIVE

EMILY HAWKINS LONDON fintech Revolut is making its first venture into physical devices with the launch of a card reader for shops and restaurants.

Revolut, which now caters to a global customer base of 18m and garnered a $33bn (£27bn) valuation in its latest funding round, told City A.M. it was launching the device in UK and Ireland.

Customers will be able to make card payments via the reader and use services such as chip and pin, contactless, Google Pay and Apple Pay. The fintech is moving into in-person payment technology as boss Nikolay Storonsky last week said he was hopeful UK regulators would green light its full banking license.

Storkonsky told Bloomberg he was optimistic the Financial Conduct Authority would approve the license “as soon as possible” with the protracted

wait already stretching a year and a half.

The move also comes as shoppers and diners are more reticent than ever to use cash after hygiene concerns during the pandemic.

“When designing new products, our team always has customer needs in mind: a fast and easy to use solution that will not slow business down, easy access to funds, and receiving payments faster than the industry standard of two to three business days,” Maria Garcia Marti, product owner at Revolut, said.

Revolut’s service for businesses will be extended “in the coming months” with a point-of-sale solution that will provide larger firms with more flexibility in integrating the reader with existing systems.

Rival payments service Square, headed by Twitter founder Jack Dorsey, has started working with Apple on integrating its contactless payment feature within its own app.

Pets at Home hit as pandemic pups grow up ILARIA GRASSO MACOLA

Apple has continued to feel the impacts of the pandemic on retail

Apple posts humble retail growth as shop closures continue to sting LEAH MONTEBELLO THE TOTAL turnover for Apple’s Retail UK, Europe and UK team yesterday climbed a humble two per cent to £2.3bn in 2021, with total operating profit up 24 per cent to £730m.

It came as Apple Retail UK continued to see the impacts of the pandemic, with turnover at £972m compared to £1.1bn for 2020, as a

result of store closures during the year. Combined tax payments for the three entities hit £96m, compared to tax payments of £96m in 2020 and £91m in 2019.

The amount of tax paid was impacted by tax rates on share-based compensation for Apple’s employees, with Apple’s share price performing strongly in the period, especially against the tech sell-off backdrop.

PETS AT Home yesterday took a hit after RBC analysts downgraded Pets at Home’s recommendation to ‘underperform’ as concerns mount over the cost-of-living crisis biting into Britons’ pockets.

The pet retailer’s shares took an 8.32 per cent tumble – the biggest on the FTSE 250.

Analysts explained that while the group maintains a prime position in the pet care market, its earnings forecast of a two per cent growth in the 2023 financial year followed by a 12 per cent increase the following year look too demanding.

“Pets at Home has benefited over the last two years from its market leading position in a sector that has seen strong growth,” RBC said.

Figures showed the percentage of people that now have a pet has gone up during the pandemic, from 40 per cent in 2019 to 62 per cent now.

“Whilst we think the defensive nature of pet care should provide Pets at Home with some topline resilience, we think that growth will now be more difficult to achieve in the light of rising cost of living and the benefits from higher spend on new pets fading away,” it added.

Pret a Manger back in the black as sandwich giant eyes foreign expansion MICHIEL WILLEMS SANDWICH chain Pret a Manger yesterday said it had returned to profitability in March after suffering another year of hefty losses in 2021 amid Covid-19 restrictions.

The group revealed it remained in the red last year with operating losses of £225.9m in new filings on Companies House.

This was an improvement on the £343m loss seen in 2020 at the height of the pandemic thanks to a 17 per cent rise in revenues to £461.5m last year as restrictions lifted and workers returned to offices.

It said its recovery has “continued and accelerated” in 2022, with halfyear revenues up 230 per cent to £357.8m, helping it return to profitability in March and becoming

cash flow positive since May. “That’s a fantastic result and shows how big the appetite is for freshly prepared food and organic coffee in towns and cities across the UK,” said Pret’s chief executive Pano Christou.

“The opportunity now is for us to take that growth and apply it internationally.”

Pret has signed four new partnerships abroad.

Pret a Manger returned to profitability in March after being hit hard by the pandemic

THE DOORS ARE OPEN TO NEW SOUTH WALES Find out why New South Wales, Australia is the leading destination ŚĬȋĀŋĬŷȋŽĬŠŋȋÞŠŒĉĥꌌȋĉĥȋ ŒĉÃǹ ÃßĉƌȋßǢ AUSTRALIA’S LARGEST ECONOMY | A HIGHLY SKILLED WORKFORCE | UNRIVALED OPPORTUNITIES

Visit investment.nsw.gov.au for more information.

06

NEWS

TUESDAY 5 JULY 2022

CITYAM.COM

MoJ denies it told court staff to name strikers LOUIS GOSS THE MINISTRY of Justice (MoJ) has denied telling court staff to name striking barristers, after the Criminal Bar Association (CBA) threatened legal action over claims any such instruction would breach UK data protection laws.

A MoJ spokesperson said any claims the Justice Secretary or the MoJ told court staff to report the names of barristers who failed to appear in court are “categorically untrue”.

The MoJ is “monitoring the number of disrupted cases... to assess the impact on the justice system” the ministry said.

The comments come after the Law Society Gazette last week reported that all Crown Court clerks had been asked to hand over information on barrister’s missed hearings to attend strikes.

The Times later reported that a MoJ spokesperson, in seeking to explain

the letter, had claimed it had “used confusing language and was potentially sent by mistake”.

The Lord Chief Justice was accused of seeking to “intimidate” striking barristers by telling judges to refer them to the regulator, as they continued their strike over legal aid fees this week.

Acting on a pro bono basis for the CBA, law firm Mishcon de Reya asked the MoJ to say whether any barristers’ names were in fact handed over, as the firm claimed that any such purported instruction would breach the UK’s data protection rules.

The firm called on the MoJ to say who approved the alleged instruction as it asked the ministry to explain whether any purported decision was in fact a “mistake”.

Mishcon also called on the UK’s information watchdog to investigate the allegations “at the earliest opportunity”.

Oil is trading well above $100 per barrel – which is putting pressure on politicians to ease the cost of living for consumers

Johnson urges OPEC Plus to boost oil production to ease cost of living crisis amid record petrol prices NICHOLAS EARL PRIME Minister Boris Johnson has urged the world’s largest oil cartel to produce more oil to drive down prices and alleviate the cost of living crisis, “There is no doubt that we are going to need a lot more OPEC Plus oil,” Johnson told Parliament yesterday.

The Organisation of Petroleum

Exporting Countries (OPEC) consists of some of the world’s largest oil producers including Saudi Arabia, Iraq, Iran and the United Arab Emirates.

OPEC Plus is the loose wider grouping of oil producing countries including allies such as Russia.

The group has committed only to modest pledges in raising oil output this year, and has persistently missed

these targets, amid capacity issues and fears of any potential supply glut leaving OPEC exposed to lower oil prices.

This has contributed to tightening markets in recent months, which has kept oil prices elevated at over $110 per barrel on both major benchmarks.

The rising prices for oil have been reflected at UK forecourts, with petrol closing in on £2 per litre.

TUESDAY 5 JULY 2022

CITYAM.COM

Fuel protests put motorways at a standstill ILARIA GRASSO MACOLA UK MOTORWAYS were brought to a standstill yesterday after dozens of angry drivers took to the streets and protested against rocketing petrol and diesel prices.

Campaigners targeted major arteries such as the M4 in South Wales and Somerset, as well as the M5 from Devon to Bristol and the A38.

Demonstrations – in the shape of 30mph “go-slows” – also affected the M54 in Shropshire, the A12 in Essex and the A64 near York.

Protests on the M4 ended up with 12 arrests for dangerously low speed driving. Drivers were not able to cross the Prince of Wales Bridge – which connects England to Wales – in either direction for more than an hour.

The commotion comes as petrol reached a new record high of 191.5p per litre on Sunday, with the CMA investi-

gating whether the 5p fuel duty cut announced in March is being passed on to consumers, after accusations of retailers profiteering.

According to home delivery firm Parcelhero, the go-slow demonstrations could have an impact on the transport of goods, especially in Wales and southwest England.

“Blocking vital roads only adds further problems for hauliers and delivery networks,” said Parcelhero’s head of consumer research David Jinks.

Jinks’ words were echoed by the government, who called for “people’s dayto-day lives” not to be disrupted.

Motoring groups such as the RAC and the AA yesterday called on the government to provide more support. “It’s time to take action and announce a further cut to duty or to VAT to help hardpressed drivers and businesses,” said the RAC. The AA’s Luke Bosdet called the situation “an outrage”.

NEWS

07

DHL to create 3,500 jobs in UK expansion DANIELLE DESOUZA

Ryanair expects its passenger numbers to exceed pre-pandemic levels this summer

Flying high: Ryanair posts record June as passenger levels take off LEAH MONTEBELLO AND ILARIA GRASSO MACOLA RYANAIR had its busiest month ever in June, flying 15.9m passengers.

Its load factor reached 95 per cent for the first time since the beginning of the pandemic.

The budget airline said it operated over 88,500 flights last month and

expects to fly 15 per cent more passengers this summer than in the same busy period in 2019.

Ryanair has been spared the ongoing travel disruption which has afflicted rivals such as Easyjet.

The news comes after Ryanair boss Michael O’Leary last week warned fares will only continue to rise over the next five years.

GERMAN logistics company DHL is set to create 3,500 jobs through the expansion and creation of depots across the UK. DHL said it will invest more than £190m into creating 10 new collection and delivery depots across the UK, and expanding 20 existing sites, which will create 3,500 jobs.

The investment forms part of DHL’s plan to expand its UK ecommerce operation – DHL Parcel UK – through a £482m cash boost.

It comes after the firm witnessed a 40 per cent rise in volumes since the start of 2020, following a boom in its e-commerce division.

Nearly half of the money will be used to build the Segro Park Coventry Gateway, a hub south of Coventry airport, which can hold up to 500,000 items per day and will produce more than 600 new jobs in administration and manufacturing.

The building will also be environmentally friendly, as it has design features including solar panels and LED lighting, as well as PA electric vehicle charging points.

08

NEWS

TUESDAY 5 JULY 2022

CITYAM.COM

Poll puts Channel 4 privatisation at the bottom of Tory voters’ wish list LEAH MONTEBELLO NEW POLLS have shown that Channel 4 privatisation has the least support out of 10 Tory policies that the government wants to deliver between now and the next election.

According to polling from WPI Strategy, privatisation of the broadcaster is the least supported from those who voted Conservative

back in 2019.

Just 16 per cent of voters back the move compared to 37 per cent who oppose it.

On top of this, just 17 per cent of the small number of voters who support it as a policy put it in their top three priorities – lower than any other policy polled.

Upgrading 20 hospitals and building 40 new ones by the next

election, as well as bringing full fibre and gigabit-capable broadband to every home and business in the UK, has the highest net support from all voters on the WPI poll.

The figures will be a blow to culture secretary Nadine Dorries, who is reportedly planning to introduce legislation to privatise Channel 4 in the next month, despite ongoing criticism.

MPs call for ban on Chinese CCTV big dog Hikvision LEAH MONTEBELLO MPS CALLED on the government yesterday to ban the sale and operation of widely-used CCTV brands linked to human rights abuses in China.

A cross-party group of nearly 70 parliamentarians, including Tory MPs David Davis and Steve Baker, condemned Hikvision and Dahua’s “involvement in technology-enabled human rights abuses in China”, calling for curbs on the tech being sold or used in the UK and “an independent national review of the scale, capabilities, ethics and rights impact of modern CCTV in the UK”.

The statement, co-ordinated by privacy and civil liberties group Big Brother Watch, is also backed by rights groups including Rene Cassin, Stop Uyghur Genocide, Free Tibet and Hong Kong Watch.

Partly Chinese state-owned CCTV manufacturers Hikvision and Dahua are now blocked from trading in the US, owing to security concerns and evidence of their widespread use in socalled “re-education” camps in Xinjian, where an estimated one million Uyghurs are detained.

The House of Commons Foreign Affairs Committee called on the UK to follow suit with a ban of Chinese surveillance companies in November last year. However, the government has been reluctant to act. New research suggested that UK public bodies are actually working with this tech.

The MPs’ statement follows a sixmonth investigation involving thousands of Freedom of Information requests by Big Brother Watch, which found that the majority of public bodies use CCTV cameras made by Hikvision or Dahua, including 73 per cent of councils across the UK and over half of secondary schools in England.

A Hikvision spokesperson told City A.M.: “There is no backdoor. Technological or otherwise. Hikvision cameras are compliant with the applicable rules and regulations of the countries we operate in and are subject to strict security requirements.

“Vulnerabilities are a common and accepted occurrence of coding, and technology more broadly. Hikvision takes cybersecurity very seriously and follows the responsible disclosure process for vulnerability management”.

Shareholders gave the buyback programme the green light at the supermarket’s AGM

Shareholder pay day: Tesco kicks off £150m share buyback scheme CHARLIE CONCHIE TESCO announced yesterday it will kick off a £150m share buyback programme as bosses look to put excess cash back in shareholders’ pockets.

In a statement yesterday morning, the firm said it had appointed HSBC to repurchase shares as part of a wider plan to claw back a total of £750m worth of shares by April 2023.

The move comes after getting the go ahead from shareholders earlier this

year at Tesco’s annual general meeting.

Bosses at the FTSE-100 grocer have been looking to reduce the firm’s share capital with a major buyback programme, first announced last October.

In April this year, Tesco committed to buy back a total of £750m worth of shares by April 2023, meaning it will have bought back a cumulative £1.05bn worth of shares throughout the programme.

Shares lifted one per cent yesterday.

TUESDAY 5 JULY 2022

CITYAM.COM

Government ‘running out of time’ for tax cut EMILY HAWKINS NIGHT time economy bosses have urged the Chancellor to slash VAT to 12.5 per cent in a bid to help businesses return to their pre-Covid glory.

Pleas for help from sector leaders followed reports last week that Downing Street was mulling reducing the headline rate temporarily to help UK households navigate the cost of living crisis.

According to The Times, Boris Johnson’s chief of staff, Steve Barclay, had advocated slashing the current 20 percent rate.

A reduction to 17.5 per cent would cost the government some £18bn, it was reported.

Hospitality and leisure firms saw VAT reduced to five per cent and then 12.5 per cent amid the pandemic, before the rate was returned to its pre-Covid rate.

The Night Time Industries Association (NTIA) reiterated calls for Rishi

Sunak to relieve clubs’ tax burdens, with the trade body’s chief saying “decisive action” was needed after inflation surpassed nine per cent last month.

“Hospitality, night time economy and events industries are facing a bleak summer, and uncertainty to what the future holds with no clear strategy presented by the Prime Minister on when or how this crisis will be averted,” NTIA boss Michael Kill explained.

“Time is running out for the government and the Chancellor to put measures in place to stem the spiralling costs of living,” he added.

Pubs and restaurants have also called for a tax cut, with the British Beer and Pub Association (BBPA) claiming April’s hike came at an annual cost to pubs of £516m.

The Treasury thinks a tax cut would drive inflation further, it was reported.

NEWS

09

Brewdog chief: ‘I did push people too far’ LEAH MONTEBELLO

Moscow-based Winter Capital backed Getir in a funding round last year

Getir says investor has no link to sanctioned Russian oligarch EMILY HAWKINS SPEEDY grocery delivery app Getir has shrugged off speculation that government sanctioning of a Russian oligarch linked to investment in the firm will impact its funding.

Vladimir Potanin, hit by sanctions last week, is linked to Moscow-based Winter Capital, which was among several back-

ers to help Getir raise $550m (£454m) in a Series D investment last year.

The investment firm is partially backed by Potanin’s firm Interros.

However, Getir said Winter Capital presently had a 0.45 per cent minority stake in the platform.

Winter Capital now has “no direct or indirect relationship to Vladimir Potanin,” a Getir spokesperson said.

JAMES Watt, CEO and founder of Brewdog, has opened up about issues of anger management and mistakes around Brewdog’s workplace culture.

Speaking on the podcast The Diary Of A CEO in an episode published yesterday, Watt said: “It’s completely fair to say at times in the journey I have been too intense, I have been too demanding, that I have set standards for the team that I would set for myself, and for a lot of the team members that is unattainable…

I did push people too far.”

It comes after a string of allegations rocked the company, ranging from personal impropriety to financial misconduct and marketing scams. In BBC’s Disclosure documentary earlier this year, several members of the Brewdog’s US staff said they saw CEO and co-founder James Watt giving private, late-night tours of the US brewery to customers.

The Scottish craft beer firm is valued at $2bn (£1.6bn). Watt revealed plans to give away £100m of shares to staff earlier this year.

ADVERTISEMENT FEATURE

Robert Sinclair, CEO of London City Airport talks about London City Airport future plans

flexibility. Central to our plans is a commitment to become the first UK airport to mandate the use of cleaner, quieter, new generation aircraft in any newly extended hours. These aircraft can fly further and will open up new destinations for passengers while also ensuring that the benefit of quieter aircraft will be felt by local residents throughout the week.

A

FTER a difficult two years coping with the pandemic and its impact on air travel, we are preparing for a busy summer. Following a June where we welcomed 311,000 passengers, by year end we expect a total of 3 million passengers through our doors, and current trends suggest that we could reach our pre-pandemic peak of 5 million passengers per year as soon as 2024.

The good news for readers who are flying from or to London City over the next couple of months is that we are ready. We are fully resourced from a staffing perspective, and we remain committed to offering our trademark fast, convenient service, which, perhaps more than ever, is so valued by customers.

We are also prepared for the return of business travel. Our research, conducted to gauge levels of post-pandemic demand, has found that appetite for business travel remains high. In fact, 73% of the businesses we surveyed reported that they expect to travel for business within the next two years, including many who had not previously flown before. This research proves that, contrary to pessimistic arguments that the pandemic will permanently affect air travel, demand remains strong.

Unleashing this pent-up demand will also bring economic benefits to the UK as a whole. Recent analysis

by WPI Economics has found that

We are proposing that our current annual passenger limit is increased to up to 9 million passengers per year by 2031

PLANNED, PRIMED, PREPARED: OUR VISION FOR A BETTER APPROACH TO AIR TRAVEL Robert Sinclair is the CEO of London City Airport the difference between a fast recovery, where prepandemic passenger levels are reached by 2024, and a slow one could result in a £17.5 billion boost for the UK economy. Which I hope will be good news for all of us.

To meet this demand, and realise these benefits, we must look at how we operate and identify

opportunities to adapt and innovate for the better.

With that in mind, we have launched a 10-week consultation looking at how we can best respond to future demand.

We are looking at options to make some adjustments to our existing planning permission, designed to give passengers more choice to travel at weekends, to provide more global connections through European hub airports and to accommodate the long-term

demand we expect to see. We are proposing that our current annual passenger limit is increased to up to 9 million passengers per year by 2031, while simultaneously delivering on our industry-leading commitment to reach net zero by 2030.

We are currently a 6 day a week airport as we are closed from 12.30 every Saturday for 24 hours. In our plans, we are proposing to allow flights on a Saturday afternoon and evening to give passengers greater

Unlike many other projects in our industry, this can be achieved without any new, complex, infrastructure and without any changes to our annual flight limit.

These plans can boost London in the short term by creating 2,100 additional jobs and contribute an additional three quarters of a billion to our economy per year.

You might ask why now, but as we all know, conversations around airport infrastructure take time and we want to ensure that our plans are the most informed and that we can plan to deliver our market leading service levels for even more customers.

Our ten-week consultation is open until September 9th and I would encourage all of you to read about our proposals and share your views on how we can support the City, support the recovery and support London’s ambition to best place in the world to live, work and thrive.

10

NEWS

TUESDAY 5 JULY 2022

CITYAM.COM

Gold weighed down by Fed hawks as US dollar resurgent NICHOLAS EARL THE HAWKISH US Federal Reserve’s response to soaring inflation and the strengthening of the US dollar continue to weigh down gold prices, despite market volatility traditionally benefitting the safe haven asset.

The precious metal was trading at $1,807 per ounce yesterday afternoon, having dropped over $40 in the past month, as the Fed’s switch in monetary policy begins to take shape and downgrade investor confidence.

The dollar is also likely to be further bolstered by another large interest rate hike expected at the end of this month – which analysts forecast could be as much as 75 basis points.

This would take interest rates to a

LABOUR BACKS BIG TECH HUB Google’s King’s Cross hub woos Khan and Starmer as it enters final development stage AS GOOGLE placed the final steel beam on its newest development in King’s Cross, Labour leader Sir Keir Starmer said the new build represents “seizing of opportunity, harnessing of talent, the creation of good, sustainable jobs and an immense contribution to our community”.

Mayor of London Sadiq Khan said the investment from Google was “reaffirming its commitment to London”.

hefty 2.25-2.5 per cent.

Rupert Rowling, market analyst at Kinesis Money, said: “In this environment of ever rising interest rates, it is hard to see gold making significant gains, but if the precious metal can hold above $1,800 an ounce, then it would demonstrate that there remains significant underlying support for gold – which, given the ongoing jitters with market confidence amid fears of a recession as well as a war in Ukraine, is entirely understandable.”

Meanwhile, silver’s struggles have also shown no sign of easing.

The metal is still trading below $20 an ounce, near its lowest levels in two years, having reached a peak of $26 as recently as April this year.

ANNOUNCEMENTS

LEGAL AND PUBLIC NOTICES CITY of LONDON The PLANNING ACTS and the Orders and Regulations made thereunder This notice gives details of applications registered by the Department of The Built Environment Code: FULL/FULMAJ/FULEIA/FULLR3 – Planning Permission; LBC – Listed Building Consent; TPO – Tree Preservation Order; OUTL – Outline Planning Permission

Retail Unit 3, 2A Eastcheap, London, EC3M 1AA 22/00388/FULL

37 Breton House, Barbican, London, EC2Y 8DQ 22/00446/LBC

External works to shopfront including (i) removal and replacement of front window to create a pass through window for takeaway orders; (ii) installation of a retractable fabric canopy above the front window; (iii) installation of a new fascia and works associated with signage; and (iv) other associated repair works to the facade.

Internal refurbishments including removal and installation of several internal walls and doors to make amendments to the room layouts while UHÀWWLQJ WKH H[LVWLQJ NLWFKHQ DQG EDWKURRP Installing a mezzanine platform in the upper penthouse bedroom, accessed by a new staircase, with a walk-in wardrobe below the new mezzanine (to the rear of the penthouse room).

Three proposed new internal doors will be made full height.

Retail Unit 3, 2A Eastcheap, London, EC3M 1AA 22/00389/LBC External and internal works to shop including (i) removal and replacement of front window to create a pass through window for takeaway orders; (ii) installation of a retractable fabric canopy above the front window; (iii) installation of a new fascia and business signage (iv) other associated repair works to the facade; (v) demolition of internal modern partitions and creation of new WC, front and back areas of the shop; and (vi) LQVWDOODWLRQ RI QHZ SOXPELQJ DQG HOHFWULFDO ÁRRUV DQG ZDOO ÀQLVKHV

78 Cornhill, London, EC3V 3QQ 22/00422/FULL Application under Section 73 of the Town and Country Planning Act 1990 (as amended) to vary condition 3 (approved drawings) of planning permission 21/00420/FULL (dated 15/07/2021) to allow for the reinstatement of the lower ground ÁRRU FOHUHVWRU\ ZLQGRZ RQ )LQFK /DQH

2 Royal Exchange Buildings, London, EC3V 3LF 22/00460/LBC 5HSODFHPHQW RI H[LVWLQJ VW ÁRRU PHWDO IUDPH window to timber framed doubled glazed; 5HSODFHPHQW RI H[LVWLQJ VHFRQG ÁRRU VDVK window to timber framed double glazed doors to balcony; - Lower spandrel by approx. 400m to FUHDWH GRRUZD\ WR WKH QG ÁRRU EDOFRQ\ 5HPRYH H[LVWLQJ ÁDJSROHV RI VHFRQG ÁRRU EDOFRQ\ ,QWURGXFH SODQWHU ZLWK UDLOLQJV WR WKH VHFRQG ÁRRU balcony to meet building regulation requirement of 1100mm fall protection.

41 Lothbury, London, EC2R 7HF 22/00487/LBC

Internal additions and alterations to the existing building to provide new circulation core at ground ÁRRU DQG PH]]DQLQH OHYHO UHIXUELVKPHQW RI H[LVWLQJ RIÀFH ÁRRUVSDFH DW JURXQG PH]]DQLQH 5HIXUELVKPHQW DQG H[WHQVLRQ RI WKH H[LVWLQJ RIÀFH building to include; external works to facades, DQG ÀUVW ÁRRUV DOWHUDWLRQV WR WKH H[LVWLQJ %DQNLQJ QHZ ZLQGRZV DQG GRRUV WKURXJKRXW LQÀOOLQJ +DOO DQG JURXQG ÀUVW DQG VHFRQG ÁRRUV WR UHPRYH of the rear lightwell over basement and ground modern additions; relocation of the existing level, alterations to the existing roof structure reception desk; installation of new electrical to facilitate an occupiable external terrace, and services and routings; and other associated works. extension of the existing lift shaft and stair core by DGGLWLRQDO ÁRRU WR FUHDWH WHUUDFH DFFHVV

Holyer House, 20 - 21 Red Lion Court, London, EC4A 3EB 22/00442/FULL

You may inspect copies of the application, the plans and any other documents submitted with it on-line DW KWWSV ZZZ SODQQLQJ FLW\RÁRQGRQ JRY XN ,I \RX DUH ÀQGLQJ LW GLIÀFXOW WR DFFHVV WKH RQ OLQH GRFXPHQWV RU UHTXLUH SDSHU GRFXPHQWV SOHDVH FRQWDFW XV E\ HPDLO DW SODQV#FLW\RÁRQGRQ JRY XN or telephone 020 7332 1710.

Anyone who wishes to make representations about this application should do so online: KWWSV ZZZ SODQQLQJ FLW\RÁRQGRQ JRY XN RU E\ HPDLO WR 3/1&RPPHQWV#FLW\RÁRQGRQ JRY XN Any observations must be received within a period of 21 days beginning with the date of this notice (unless otherwise stated) and will be taken into account in the consideration of this application.

In the event that an appeal against a decision of the Council proceeds by way of the expedited procedure, any representations made about the application will be passed to the Secretary of State and there will be no opportunity to make further representations.

Lawyers mull influence of EU crypto rules on UK HAMZA FAREED MALIK THE EU’s landmark Markets in Crypto-Assets (MiCA) regulation, decided last week, will be the world’s first regulatory framework for crypto and could serve as a “benchmark” for the UK’s own legislation, according to legal experts.

The MiCA regulation, which will come into force at the end of 2023, will apply to crypto-asset issuers and service providers in the EU. Under the new regulatory framework, crypto-asset service providers will need to be authorised to operate in the EU, while stablecoin providers will need to maintain sufficient reserves and crypto industry players will need to give information of their environmental and climate footprint.

MiCA’s rules will also tackle fraudulent schemes, market abuse, and manipulation.

“This landmark regulation will put an end to the crypto wild west and confirms the EU’s role as a standard-

setter for digital topics,” said Bruno Le Maire, French minister for the economy, finance, industrial and digital Sovereignty.

Legal experts and the UK Treasury spoke to City A.M. on crypto rules in the UK in light of MiCa. Mark Deem, partner at Mishcon de Reya, said there is a possibility that the EU will “become the default or benchmark position as far as regulation is concerned”.

He said the UK would risk losing “any strategic advantage” if it did not adopt regulation similar to MiCA and that the most important thing for regulators would be offering “suitable regulation” that encourages investment in crypto.

Harry Eddis, partner at law firm Linklaters, said the UK will “take notice” of MiCA and may utilise some of its approaches, but would not imple-

ment MiCA in the same way as the EU. Asim Arshad, senior associate at Mackrell Solicitors, said he thought the UK would be keen to distance itself from some of the EU’s “stricter policies” and make itself an “attractive centre for those... who may feel rattled by MiCA”.

The EU’s new crypto rules will come into effect at the end of next year Meanwhile,a spokesperson for the Treasury – which is due to consult on a “world-leading” crypto regulatory regime later this year – told City A.M. it was “firmly committed” to putting the UK at the forefront of crypto by “capitalising on the freedoms gained by leaving the EU”. The UK’s framework will “support the safe adoption of crypto” while also facilitating innovation, they added.

Augmentum pulls back on fresh investment as ‘price correction’ looms over fintech fund CHARLIE CONCHIE FINTECH venture vehicle Augmentum reported a “strong performance” last year but said it had pulled back on fresh investments in the past six months amid a rout in global tech firms.

In its full year results yesterday, London-listed Augmentum said its portfolio of investments had driven net asset value per share up by 19 per cent as the firm pumped £60.8m into seven new fintechs and seven existing portfolio companies.

The total cash invested marks a sharp increase from the £15.5m

invested last year, but bosses said they had pulled back from investment in the second half of the year, with just £16.4m invested, compared to £44.4m in the first six months of the year.

“We began the year coming out of Covid and ended it with further economic uncertainty caused by higher inflation and the prospect of increasing interest rates... all compounded by a rapidly changing geopolitical situation in Europe,” said Augmentum boss Tim Levene.

“But, uncertain times drive innovation and activity in fintech continues to grow and so do the opportunities,” he added.

Levene said he remained bullish for the period ahead as valuations drop and a slew of new investors pull back from the space, presenting a wave of cheaper investment opportunities among fintech firms.

“We are starting to see some of this money leave the sector which will continue to lead to a healthy correction in entry prices later this year and beyond,” he said.

Augmentum’s balance sheet was bolstered in the past 12 months by the acquisition of retail investment platform Interactive Investor by Abrdn for £1.5bn, putting £42.8m back in Augmentum’s coffers.

TUESDAY 5 JULY 2022

CITYAM.COM

NEWS

11

Wirecard’s accounting chief admits to forging documents in KPMG audit LOUIS GOSS WIRECARD’s former head of accounting has admitted to forging documents when under pressure to provide evidence of transactions during a special audit by KPMG. Wirecard’s former chief financial officer, Stephan von Erffa, told prosecutors he falsified the documents after coming under pressure from the auditor to provide evidence of a €50m (£43m) payment, according to sources speaking to the

Financial Times.

The accounting chief admitted to creating a fake, back-dated email and corresponding financial documents when asked to hand over documents to KPMG that did not exist.

The forgery came after the German firm hired KPMG to audit its accounts in an effort to clear itself of allegations of balance sheet manipulation, after suspicions were first raised by the Financial Times.

The Wirecard financial chief said the act of forgery had been a single,

isolated incident that was not intended to falsely represent the company’s accounts. Von Erffa denies involvement in the firm’s wider fraud.

Former German tech titan Wirecard collapsed into insolvency in June 2020 after announcing €1.9bn in missing cash. Von Erffa is set to face trial this year over the case along with two other Wirecard executives, Oliver Bellenhaus and Markus Braun.

Bellenhaus turned himself into authorities in June 2020.

Braun denies wrongdoing.

Wirecard made headlines in June 2020 when it collapsed into insolvency

Company execs face crackdown over Covid fraud LOUIS GOSS INDIVIDUALS who defrauded the government’s Covid-19 support schemes should consider turning themselves in before they are hit with harsher penalties, lawyers have warned.

The comments come after figures from the UK’s Insolvency Service showed the service has struck off a total of 179 company directors for unlawfully taking the financial support packages offered to businesses during Covid-19, in a sign authorities are becoming increasingly focused on executives that abused the government’s Covid-19 support The UK’s Insolvency Service banned 140 executives from acting as company directors in the year running up to 31 March 2022, and a further 37 in April and May alone, for defrauding the government’s Covid-19 support packages, figures from the Insolvency Service show.

Those struck off include individuals that falsely claimed furlough payments and those who defrauded the government’s Coronavirus Business Interruption Loan Scheme (CBILS).

All in all, more than a third of company directors struck off by the insol-

vency service over the past two months were disqualified for abusing Covid-19 support packages, the figures show.

The crackdown comes as UK government estimates suggest fraudulent Covid-19 support claims cost the taxpayer at least £5bn.

Andrew Sackey, a partner at Pinsent Masons, said: “Directors who abused Covid support schemes need to carefully consider their options. Often, self-reporting is the best way to mitigate the risk of custodial outcomes.”

“Authorities like HMRC and the Insolvency Service are now hunting down those who made fraudulent claims. There will be a wave of civil and criminal penalties, including prison sentences,” Sackey added.

“The Treasury has already clawed back hundreds of millions from fraudulent or erroneous Covid claims and several arrests have been made, but this is just the beginning.

“The government expects to recover billions in the next 12 months. It is taking action on multiple fronts to crack down on fraudsters and bring them to justice,” Sackey said.

UK to settle whistleblower’s dismissal claim LOUIS GOSS

Bosses previously warned customers were being put at risk by security shortages

Security shortage fears rage on after spiking incidents report row EMILY HAWKINS BOUNCERS have criticised government’s claims there are more nightclub security staff than prepandemic amid a landmark report into spiking incidents.

The committee had recommended a support package for venues to “boost security measures including the recruitment and training of additional door security staff, particularly female staff”.

In its response to the Home Affairs’ committee yesterday, the government

cited stats from the Security Industry Authority that claimed there had been an increase in qualified door staff.

However, the UK Door Security Association said the data did not show the number of inactive licences or how many people had left the country.

“We will only be able to tackle the problem, when we accept that we have a problem,” a spokesperson added.

Night time bosses have previously warned customers were being put at risk by security shortages.

THE GOVERNMENT has agreed to pay £423,000 to one of its former prosecutors over claims she was pushed out of her job at the Foreign Office for seeking to blow the whistle on corruption.

International prosecutor Maria Bamieh claims she was pushed out of her job at the Foreign Office after she sought to expose corruption in the European Union Rule of Law Mission in Kosovo (EULEX), while on secondment from her UK government job.

The settlement comes after Bamieh claimed two top EULEX officials took bribes from Kosovo criminals in return for dropping cases against them.

Bamieh said senior Foreign Office officials later told her to “turn a blind eye” towards apparent evidence of collusion between EULEX officials and suspected criminals in Kosovo, before she was dismissed from her job in 2014.

A Foreign Office official said: “We have agreed to settle this longrunning case without any admission of liability and continue to strongly refute these allegations.”

Bamieh’s lawyer, Mike Cain, partner at law firm Leigh Day, said: “The protection of whistleblowers is crucial for a fair and functioning democratic society. It helps weed out corruption, prevent danger and stem illegality.”

Shares climb for 888 as it feels the afterglow of William Hill takeover LEAH MONTEBELLO

British firm 888 acquired William Hill’s non-US business for £2bn on Friday

SHARES in 888 climbed yesterday following the firm’s re-admission into the London Stock Exchange main market for listed securities.

This comes after the firm completed its £2bn acquisition of gambling firm William Hill’s non-US business from Caesars Entertainment on Friday.

The group, which owns Mr Green and SI Sportsbook, confirmed the done-deal last Friday, and said that Ulrik Bengtsson and Eric Hageman, former CEO and CFO of William Hill, would be leaving their positions, with 888 chief Itai Pazner taking the reins.

In April, 888 sliced the deal’s value, citing the changing “macroeconomic and regulatory environment”.

The new agreement with Caesars Entertainment meant 888 paid £250m less for an initial cash consideration, down from £835m.

However, last month British firm 888 said it expected revenues for the half year to dip as it feels the impact of stricter gambling measures and a temporary withdrawal from the Netherlands.

12

NEWS

TUESDAY 5 JULY 2022

CITYAM.COM

Clarity on Venture Capital Trusts key to UK startup funding, warns VC chief EXCLUSIVE

CHARLIE CONCHIE THE GOVERNMENT risks jeopardising the UK’s funding environment for early-stage startups if it fails to provide clarity on the future of the venture capital trust (VCT) regime, an industry chief warned today.

Will Fraser-Allen, the new chair of the Venture Capital Trust Association, said that the long-term survival of VCT schemes – which

offer generous tax breaks for retail investors – is key to ensuring the UK’s funding landscape can keep pace with global rivals.

“We haven’t got the same scale of venture capital that we’re able to compete with the US in terms of those much larger funding requirements,” he said.

“But at the early stage I would argue we’ve got a good set of interventions that allows these companies to come through.

However, a ‘sunset clause’ for the

VCT regime has been embedded in the schemes, which will shut out the relief to investments made on or after 6 April 2025.

Fraser-Allen said that ensuring the schemes continue beyond 2025 will be top of his agenda as he assumes the role of chair of the association.

“Uncertainty is not good for anybody,” he added.

“And that’s why we’re keen to continue dialogue with the Treasury, and why government has to give clarity around it.”

Will Fraser-Allen is the new chair of the Venture Capital Trust Association

Greenwashing spurs ‘false’ faith in climate fight CHARLIE CONCHIE RAMPANT greenwashing is creating a “false confidence” in the fight against climate change and threatening to derail efforts to hit net zero targets, the chief of the UK’s environment agency warned yesterday.

Emma Howard Boyd, addressing the UK Centre for Greening Finance and Investment Annual Forum, warned the conference that “robust, consistent and trusted data” is required if the transition to net zero energy is to be successful.

“The more businesses are transparent about their plans to transition to net zero and prepare for climate shocks, the easier it is to benchmark best practice, set standards and celebrate the companies that really are delivering on their commitments,” she said.

“If we fail to identify and address greenwashing, we allow ourselves false confidence that we are already addressing the causes and treating the symptoms of the climate crisis.”

Greenwashing is defined by environmental law charity Clientearth as companies using advertising and public messaging to appear more climate friendly than they really are.

In one of her final speeches before leaving the Environment Agency in September, Howard Boyd is expected to praise such NGOs “for their tireless work to call this out”.

Her warnings come after the UK’s top financial watchdog, the Financial Conduct Authority (FCA), announced last week that it backed calls to bring ESG ratings and data within its remit in a bid to prevent inflated ESG ratings.

“We see a clear rationale for regulatory oversight of certain ESG data and rating providers – and for a globally consistent regulatory approach informed by the recommendations on ESG data and ratings developed by the International Organization of Securities Commission in 2021,” the FCA said last week.

“We therefore support the government’s consideration of bringing ESG data and rating providers within our regulatory perimeter.”

Scrutiny of ESG-labelled products has grown in the past year amid fears of greenwashing and exploitation of products.

One of the pioneers of the ESG label, Paul Clements-Hunt, told City A.M. last month that ESG had become a “gold rush for easy assets”.

‘Veganuary’ co-founder launches new £30m vegan venture fund CHARLIE CONCHIE THE CO-FOUNDER of the ‘Veganuary’ initiative has launched a new £30m investment vehicle today designed to spur growth in firms developing meat-free animal alternative products.

London-headquartered Sentient Ventures, headed up by Veganuary co-founder Matthew Glover, venture investor Alexandra Clark and former investment banker Manish Karani,

will pump early-stage growth capital of between £500,000 and £2.5m into plant and fermentation-based companies globally.

Clark told City A.M. the fund would target firms fuelling the shift to net zero and strengthening food systems around the world.

“We’re not just looking at the effects of the pandemic or the [Ukraine] war or climate change,” she told City A.M. “We’re looking at all of them and how we can actually

get better quality products to the consumer that don’t cause this environmental destruction.”

Sentient said each investment will be weighed up using its own “impact assessment tool”, gauging metrics including animal lives spared and days of suffering reduced.

The fund is looking to tap into swelling demand for meat alternatives, with the market set to balloon to $162bn (£133bn) by 2030, according Bloomberg Intelligence.

Russian energy squeeze pushes Uniper to the brink as gas supply crisis looms NICHOLAS EARL

Troubled energy firm Uniper is one of Germany’s biggest buyers of Russian gas

THE GERMAN government could acquire a stake in troubled energy giant Uniper, as escalating economic tensions between the west and the Kremlin take their toll on European businesses.

Uniper has been in bailout talks with the government since last week, after the utilities provider offered an

alarming profits warning and withdrew its financial forecasts for the year.

The company is Germany’s biggest buyer of Russian gas and has been struggling this year amid surging commodity prices and severe energy shortages from Russia.

Its share price has fallen 63 per cent since the beginning of the year – suggesting investor expectations of

imminent state intervention.

The Kremlin’s decision to cut pipeline gas to just 40 per cent of regular levels over the past few weeks has forced the company to seek supplies on the spot market, which is trading at historically high levels.

Analysts at investment bank Credit Suisse told clients last week that Uniper was having to spend up to €40m (£34m) daily in the gas market.

TUESDAY 5 JULY 2022

CITYAM.COM

NEWS

13

Charlie Davies (left) and Simon Oscroft (right) founded So Energy in 2015

OFGEM REFORMS RISK STIFLING INNOVATION

F

INANCIAL stress tests, fit and proper person rules, quarterly price caps... Ofgem’s efforts to reform the energy sector have gathered pace in recent weeks.

This follows historic volatility across the retail market that has led to the collapse of nearly 30 suppliers in the past nine months – directly affecting over four million customers.

Amid the watchdog’s flurry of activity, the future of the industry is starting to take shape ahead of a challenging winter.

From now on, there will be more scrutiny on suppliers entering the market – with Ofgem demanding robust finances, competent management and healthy levels of hedging.

This is to ensure energy firms are resilient to future market shocks.

Cultural change is also on the cards, with less emphasis on switching and special deals to lure customers, alongside consumer protections such as limits on direct debit overpayments.

Much of this has been welcomed by So Energy’s co-founder Simon Oscroft (pictured right), who recognised the market had been plagued with “unsustainable practices” which needed to “change for the good of customers and suppliers”.

So Energy’s co-founder argues that Ofgem’s regulatory changes should not favour bigger firms, writes Nicholas Earl

In particular, he praised Ofgem’s temporary ban on acquisition-only tariffs – which prevent suppliers offering a deal to a new customer without also offering it to its existing loyal base.

Oscroft told City A.M.: “If your supplier offers you a tariff, but they are offering a cheaper tariff on a price comparison website and you don’t see it – then you have no trust in your supplier and it feels unfair. That just needs to go. It’s a basic hygiene factor that we should have in our sector.”

However, he is also wary of the general pace of Ofgem’s reforms, with concerns that some of the policies pursued by the watchdog could embolden the biggest firms in the industry with too much power and prevent new propositions from entering the domestic energy market.

NEW SUPPLIERS COULD SUFFER FROM MARKET REFORMS

For instance, Oscroft warned that demands for suppliers to ringfence customer balances will require suppliers to leave large amounts of capital aside.

It will also prevent funds being used to improve the offering for consumers, with funds languishing in an account.

Ocroft believed this could hamper the operations of smaller energy firms, forcing them to charge more, and drive up household bills – an unattractive prospect amid price cap estimates of £3,000 per year next January.

He said: “This has a big cost that will end up on customer bills. It will also prevent newer suppliers entering the

We will see less innovation as a result of many of these changes

market, as they will have to raise a lot more money – and a lot of that money will sit there and just be dead capital on the side.”

Ringfencing refers to proposals from Ofgem for energy firms to protect customer credit balances, so that the money is both set aside from commercial operations, and can be returned to households if a supplier goes bust.

Ofgem wants at least 30 per cent of customer credit balances to be ringfenced, while Centrica is pushing for this to be ramped up to 100 per cent, despite rival firm Octopus Energy opposing ringfencing entirely.

So Energy’s co-founder suggested Ofgem is overcompensating for its “slow reaction” to the crisis, and argued there was a risk of “overkill” by correcting the market in a way that favoured established firms.

He said: “I struggle to see how a new supplier could come in unless they have an extreme amount of funding and a huge parent above it. So, we will see less innovation as a result of many of these changes.”

SUPPORTING CUSTOMERS THAT WANT TO MAKE A DIFFERENCE

So Energy was founded in 2015 by Oscroft and Charlie Davies, with a genuine sense of mission.

Its focus was on offering 100 per cent renewable energy to the widest possible market at an affordable price.

The firm has grown to support over 300,000 customers and last year merged with Irish power giant ESB Energy to expand its market share.

In a new era defined by tougher regulatory oversight with fewer firms, Oscroft believed surviving challenger suppliers with a distinct pitch could be a valuable alternative to the established players.

He said: “Giving customers real propositions so they can say, ‘Hey, I want to make a difference, and I want to do it with a supplier that I can trust’ – I think it is a genuine alternative.”

Oscroft recognised the vast energy market – which peaked with 80 suppliers in 2018 – created confusion for customers, but he was not in favour of a reversion to the Big Six, which dominated the industry prior to liberalising reforms in the 2010s.

“I don’t think anyone wants that apart from maybe those suppliers themselves,” he concluded.

14

MARKETS

CITYAM.COM

TUESDAY 5 JULY 2022

CITY DASHBOARD LONDON REPORT

BEST OF THE BROKERS

Mixed bag to kick off new trading week as Shell and BP lift FTSE

L

ONDON markets kicked off a new trading week in mixed fashion yesterday, with the FTSE 100 led higher by oil and gas giants.

The capital’s premier FTSE 100 index jumped 0.89 per cent to 7,232.65 points, while the domestically-focused mid-cap FTSE 250 index, which is more aligned with the health of the UK economy, dipped 0.24 per cent to 18,592.95 points.

The reasonably positive start to the week means the FTSE 100 has pared back some of the losses registered at the beginning of the month that were caused by it being caught up in a global market sell-off.

However, it is still down around five per cent over the last month.

Oil mega caps BP and Shell led the gains, each adding around four per cent.

YOUR ONE-STOP SHOP FOR BROKER VIEWS AND MARKET REPORTS

To appear in Best of the Brokers, email your research to notes@cityam.com

CVS 1,720

P 4 July

1,700

1,585

1,680 1,660 1,640 1,620 1,600 1,580

28 June

The two firms represent an enormous share of the FTSE 100, meaning movements in their share prices exert a strong influence over the index’s direction.

The FTSE 100 has been partially shielded from global equity market plunges due to it having a heavy weighting toward socalled “old economy” stocks that have held up well since the beginning of the year.

Retailers drove the midcap FTSE 250 lower. Pets at Home tumbled nearly 10 per cent in a sign that investors are ditching the firm’s stock as they bet the pandemic boom in pet sales eases as life returns to normal. A downbeat analyst note also fed the sell-off.

Card retailer Moonpig fell nearly seven per cent, while cult bootmaker Dr Martens dipped 2.9 per cent.

The pound rose against the dollar.

29 June

30 June

1 July

4 July

CVS Group received a Buy recommendation following the £9m sale of Quality Pet Care. The two companies made the headlines earlier this year when the CMA opened an investigation into the acquisition over competition concerns. “Although painful financially, it is positive that this issue has now been put to bed and the company can focus on growing organically and through acquisition,” analysts said.

GRAFTON 820

P 4 July

800

721.6

780 760 740 720

28 June

29 June

30 June

1 July

OIL SUPPLIES: WATCHING CLOSELY

Fundamentally supplies continue to be tight and there is still enough economic activity to stop oil prices slumping. However, lingering recession fears could act as a ceiling on the oil price so we might not see the black stuff race ahead in value too much from current levels.

4 July

Peel Hunt said it was confident Grafton’s board will find a “worthy successor” following the departure of the group’s chief executive of 11 years Gavin Slark.

Analysts commented: “His departure will clearly be a negative for the group, but we are confident that the board will able to find a worthy successor, with the ability to build on the market-leading platforms established under Gavin’s leadership.”

RUSS MOULD, AJ BELL

GET YOUR DAILY COPY OF

DELIVERED DIRECT TO YOUR DOOR EVERY MORNING

ISA SPECIAL

– WHERE TO ISAS UNWRAPPEDTHIS TAX YEAR PUT YOUR MONEY Money languishing in savings accounts can be put to better use this ISA season, as Suzie Neuwirth reports

CITYAM.COM

WSPAPER SINESS NE NDON’S BU

SIX NATIONS

2022

RIVALRIESS LLY HERE SIX NATION T IT’S FINA ED AS THE GE PULLOU PA 8RENEWFO 22 R 20 M RETURNS CITYAM.CO LO

THURSDAY 3 FEBRUARY

2022

SPORT

W

01

at a 30ITH UK inflation surging year high due to supply energy costs and for inchain issues, the casesaving, vesting, rather than been greater. your money has never still hovering are Interest rates low, meaning that around an all-timesavings account or a money held in eroded in cash ISA will be significantly real terms.

ISA season, people As we head into their tax-free aluse to still looking to 5 April will need lowance before of inflation eroding weigh up the risk the risk of investtheir savings versusasset classes such as ing their money in peer-to-peer loans. or stocks and shares tax year, the For the current 2021/22 ISA can save in an inmaximum you not pay tax on any is £20,000. You do gains accrued within terest or capital an ISA wrapper. exempt from payThis means you are which kicks in on tax, ing capital gains than £12,300 from any profit of more an investment. into an ISA by You must put moneyfor it to count toyear the end of the tax allowance. Any unwards this year’s not roll over into used allowance doesuse it or lose it! so the next tax year, of opportunities on With a plethora can be overwhelmoffer, the ISA market the best places ing, so we have analysedmoney. to put your hard-earned

PLUS: YOUR GUIDE TO THE FIXTURES AND LOOKING BACK ON LAST YEAR’S THRILLER

INSIDE:

MAKO VUNIPOLA EXCLUSIVE: ‘ENGLAND CAN DO THE GRAND SLAM’

of the fund as the “You should think in April, investment and indiwill hit six per cent main course of your plates – slightly more better, inflation that investors should be looking fence waiting for vidual shares as side more to sitting on the be the time to lock in meaning above six per cent to avoid risky, but you may consider them The Bank of England of 0.1 per cent to Society, according might for returns low Historic stock mar- fun and interesting to follow.

Coventry Building from Moneyfacts. but now from an historic a rate.” eroding their savings.

December, and raised sure you first have that this can be data as of 25 Januarymost average rates that best 0.25 per cent last “You should make this year to 0.5 ket performance suggests is riskand then buy “Last year, we saw across the savings it again on 3 February although no investment EQUITIES core plate of investmentsthe edge.” around go to record lows out of the ISA wrap- EYEING UP losing savers money in achieved, per cent. individual shares ISAs or in comparison to that you’ll usually people in a free. example, if you invested in an back With cash However, this pales 30-year high of 5.4 market, within It’s worth noting slowly climbing fi- real terms, it is advisable for “For fees with a the perper, but they are position to coninflation, which hit fund that tracks to pay a few different 2021 and is presays Rachel Springall, comfortable financial ISAs, which give index tracker stock market, on a his- have s ISAs. Th per cent in Decemberthan six per cent up again,” at Moneyfacts. the in- formance of sider stocks and shares nance expert dicted to rise to more2022. steady process them a good chance of outperforming of “It is a slow and rise in during the course left languishing though. There was a base rate in Therefore, any money decrease in value in cash ISAs will

KING CASH IS NO LONGER lifted the base rate

UNBEATABLE LINE-UP OF STAR COLUMNISTS: GAVIN HASTINGS ROB HENDERSON MIKE PHILLIPS BENJAMIN KAYSER MARCO BORTOLAMI ZINZAN BROOKE

THE HAWKASRGE ARE IN CH

2022 3 FEBRUARY THURSDAY

IN ASSOCIATION WITH

ISSUE 3,674

WEDNESDAY 9 FEBRUARY 2022

LOUIS GOSS

pay more be forced to in KPMG could damages for its rolegiant in uction than £1bn sed constr auditing collap ed a Carillion. firm has receiv er The Big Four the Official Receiv from legal claim

Climate noise blocking out real solutions

Households face hike in energy bills

N FRENZY P4

S ACQUISITIO

FONE PLOT PSES P3 VODA TECH DEAL COLLA INSIDE PLAY

WHAT FUTURE

nsible for been respo KPMG had on’s accounts for g itself auditing Carilli decades, earnin almost two for its audit work. ions £29m in fees increased the provisof the KPMG has to respond to all up £92m it has saved tly faces, from s. claims it currenA.M. understand City to £144m,

FOR ZOOM? P8

FREE GOING GREEN

MICHIEL WILLEMS

d yout claim lodge billion-pound pa und KPMG with aro s ng ha e ps lla Carillion co t officer governmen on’s (OR) – a UK for managing Carilli pays responsible – requesting the firm News’ liquidation excess of £1bn, Sky damages in an reported late last Mark Kleinm by the night. is being driven The claim duty to Carillion’s ory OR’s statut

CITYAM.COM

FREE

EARL NICHOLAS its latest announce OFGEM will consumer price the ns of update to with millio cap today, bracing for a households hike in energ y painful price . bills this spring ts at Cornwall Energ y analys d the cap, warne Insight have what suppliers can , could which limits default tariffs charge for t £2,000 per year. y rise to almosBrearley, the energ usly Jonathan chief, previo watchdog’s mechanism the suggested t soaring should reflec costs. wholesale St is expected to e Downing loan schem £6bn a a £200 roll out providing hold to this week, every houserising rebate for blow from soften the prices. e taxpayers This will involvwriting loans under effectively to suppliers.ute for Economic The Instit Mayer told City Affairs’ Andy plans will only A.M. that the l relief for “at provide partia four per cent and will come at or above households of higher bills for will “remain end of 2022,” around se te of five years the expen through to the inflation target.today, , from the Institu be three to what may is repaid.”

Julian Jessop , is betting the Bank will rate rise double the Bank’s pricing in a out before. In Policy as the loan unclear whether Markets are Economic Affairs at one Monetary history the year and have been caught expectations It is also this they g defy recent but will fall in defied (MPC) meetin the Bank energ y energ y prices Committee points, .

November, unchanged, triggering to , with the be percentage near futurewarning the cap lift rates 0.5 abrupt hawkish tilt will comparisons and left rates and ts marke er. trade body The Bank’s dampening volatility in or Mark Carney’s again in Octob y prioritising nd.’ could rise ity for suppliers to driven by it rises across the econom former Governan ‘unreliable boyfrie n The inabil sale costs to rampant price ding to the pandemic. reputation as t rate and inflatio Rishi cap, has City A.M. pass on whole A higher interes agitate Chancellor instead of respon due to the ists polled by may customers, s going bust. tes a one Most economwill peak at between 6.5 is environment n and Treasury estima led to dozen think inflatio seven per cent in April e in both woulds.

Sunak. The point increas per cent and anytime soon. percentage blow to the public finance unlikely to cool developed markets deal a £23bn living Smith, cost of James ING, said the economist at

ry of the recove to maximise creditors, any losses. Court put the OR in on in The High ating Carilli collapse the charge of liquid following building nd January 2018, -billion-pou go of the multiwhich saw the firm contractor, worth £7bn. debt with bankrupt

ISSUE 3,677

to r will be forced The audito claim today, at which the will be recognise s of the case court point the detail through the made public firm system. stands the the OR’s t City A.M. under d itself agains ent. plans to defen declined to comm firm claim. The

PREVIEW P22 OLYMPICS 21 LIFESTYLE OPINION P20-

LONDON’S

THROUGH THE DRINKING GLASS THE LATEST FROM OUR WINE GURU P22

Y ENER GY D-DA

POLLED BY NOMISTSAT – LEAST DAY AS ECO TO HIKE TO COME THIS YEAR ETTERS SET REE MORE TO TH BANK RATES ICT ED in 2022, CITY A.M. PR three times

Bank has raised lift rates a further first time the in a calendar marking the four times TT JACK BARNE borrowing costs– that’s the consensusists. since 2004 econom this year England will since year st of City A.M.’s poll of rate setter THE BANK of fastest rate hike cycle n in foreca ce, a former the Andrew Sentanadviser to Cambridge embark on to tame rampant inflatio 2004 in a bid g at its meeting of rate and now senior expects “three s he said City s, startin exclusive after today’ the UK – Econometric – reveals an rises this year” per cent by setters today economists. further rate rates to 1.25 18 A.M. poll of top -back rate hike in meeting, taking year. and will The first back-to the end of theanalysts agree with certainty today shift near top a l is Capital Severa years intent to rapidly an Sachs andfour rate in signal the Bank’s rting the British Sentance. Goldm suppo are both pricing mic to policy from Economics h the pande 2022. throughout economy throug inflation. set to hikes stamping out Threadneedle Street is After today,

LONDON’S BUSINESS NEWSPAPER

THE ULTIMATE SAVINGS GUIDE ALL YOU NEED TO KNOW ABOUT YOUR ISA P19-21

P24

ARM WRESTLE

BRIT CHIP FIRM TO COME UNDER POLITICAL PRESSURE TO LIST IN LONDON NOT NEW YORK AFTER REGULATORY HURDLES END NVIDIA TAKEOVER PLAN CHARLIE CONCHIE BRITISH chipmaker Arm is set to be the subject of a charm offensive to encourage it to list in London rather than New York.

Arm’s Japanese owner Softbank said yesterday it was making preparations to float the Cambridge-based chipmaker after a $40bn (£29.5bn) takeover bid from US giant Nvidia collapsed amid regulatory pressures.

Softbank said it was eyeing up New

York as the favoured destination, but political insiders have indicated the government is keen to see the firm go public in London.

A Whitehall source said “it shouldn't be a surprise that ministers would like a British success story like Arm to float in London”, while a Treasury spokesperson said it would push ahead with reforms to listing rules to make the capital more attractive to major firms.

Arm’s local MP said it was “vital” the

firm listed in the capital. Politicians are reportedly also wooing other soon-tofloat global firms.

News of the float came after a bumper takeover bid from US giant Nvidia was finally kiboshed, with a combination of competition watchdog interest and national security concerns too much of a hurdle to overcome.

Softbank pushed through a management shakeup at Arm yesterday, with president of the firm’s IP products

division Rene Haas taking over as chief executive from Arm-veteran Simon Segar.

Softbank boss Masayoshi Son said: “Rene is the right leader to accelerate Arm’s growth as the company starts making preparations to re-enter the public markets.”

Son added that Softbank was aiming to take Arm public before the end of the financial year in March 2023.

CONTINUED ON PAGE 3

STATE SET TO BLOAT BY £76BN THURSDAY 10 FEBRUARY 2022

A PROMINENT former Greenpeace activist and now Stanford University fellow has said “panic” over climate change is blocking debate over the move to a greener future.

Danish campaigner Bjorn Lomborg writes in City A.M. today that “fifty years of panic clearly haven’t solved climate change” and that a smarter approach which “focuses on realistic solutions such as adaptation and innovation” is needed.

Lomborg’s warning comes the week after McKinsey calculated the cost of moving to net zero by 2050 across the world at a cool $9 trillion a year.

The head of the Copenhagen Consensus think-tank called for solutions that emphasise JACK BARN ETT the funding of green energy projects rather than to the gover ECONOMIC politicians “showering growth is the end of nment’s spending spending vital if is bill by the decade. subsidies over expensive vanity able” levels not to reach “unsu state O’Connell The , experts warne projects.” stain- ing report comes as scale envis said state spending a raft of spend A report from pledges set at the ioned by The City has become a hub the think d today.

- was out at budge tion Found the of green finance in recent ation publi tank Resolu- the ts have already the last two the “unsustainable” and new report vealed a persis put the size shed today economy state on said growi years. A global ranking by ng of and the enormtently higher NHS re- level since course to reach its Pursuing a was crucial. largest the analysts at Z/Yen put the strategy of bill ous cost of tained econo ing to net The plann 1970s. achieving transitionzero capital at the top of the global ed mic growt suswill swell enue national hike, 1.25 percentage the Britis the size h point desira for the Treas h to raise revtree for the first time in 2021. on top of tions in the state to historic propoof and divide corporation ble than balan ury is more nd The UK government is coming years. tax r- ing of hikes and cing the publi nances throu The cost of the freezincome tax increasingly under fire for caring for perts said. gh further tax hikes c fiing popul thres Britain’s age- raise the tax ation will failing to lay out the costs of , exburden to holds, will level since primarily ramping up “Avoiding the heaviest drive the the transition to ‘net zero’ and relati a period of weak growt to the tune in government spend a John O’Con 1950s. ve amid ongoing rows about the of econo nell, ing £76bn h mic declin chief cial,” the of this decad a year price of energy and the rollout state e, taking the by the end thatTaxpayers’ Alliance, executive of addinthe Resolution Found e is crutold “ministers g that a to the size of electric vehicle facilities. protracted ation said, must refuse City A.M. sluggishne before the same level as Germof the argument period of the tired ss after the Covid-19 crisis. that spend any’s reined has finan Ramping ing canno in.

LOMBORG: PAGE 12 t be ernmwiped £200bn a year cial crisis zero target up funding to reach “Instead, they off ent’s spend s will add should go ing war chest.the govDan Tomli £14bn each net by backing for growt nson year taxes. business and cuttin h Foundation said of the Resolution ” g insur ance incre the coming national ase compared was “smal to tax hikes l to come. fry”

They lost billions in 2020, when the pandemic caused prices to plunge.

They regained some of this in 2021-22,CHAR LIE CONCHIE when economic activity restarted.”

Michael Hewson, chief market TECH analyst at CMC Markets, described thegover leaders have called nment to calls for a tax as “predictable”. shake up on the listings rules UK British chipmafter the owner of RESULTS AND ANALYSIS: PAGE 5 aker Arm eyeing up said it was a for one of New York floatation companiesBritain’s most exciti . ng GOCARDLESS GOES UNICORN P3 GREGGS LAUNCHES FASHION RANGE P7 RENTS REACH RECORD HIGHS P8 BRITS FLOCK BACK TO THE OFFICE P10 WINTER OLYMPICS P27

ECONOMISTS and BP’s boss rejected calls yesterday for a windfall tax on energy firms after the energy giant announced healthy profits.

The British firm’s chief Bernard Looney said it would be misguided to limit its ability to invest and reduce

INSIDE

North Sea gas impact.

The Labour Party have been pushing for a one-off levy on energy firms amid spiking household costs.

But Looney said “the UK needs more gas, not less gas, right now. That’s going to require more investment, not less investment.”

Calls for a tax raid have increased in

BP reported a £9.5bn profit yesterday, its best annual result since 2013

ISSUE 3,678

CITYAM.CO M

Windfall tax plans rubbished by economists after oil giant’s losses last year Lo ndon must NICHOLAS EARL

BUSINESS NE

WSPAPER COOL RUNN GEAR FORINGS ALL THE AN OVERDU MOUNTAIN BREAK P2 E 0

the week since Shell also revealed chunky profits.

BP lost £4.2bn in 2020 amidst a collapse in global demand for oil, similarly to most oil majors.

Speaking to City A.M., Andy Mayer from the Institute of Economic Affairs said: “Fossil fuel energy companies have not enjoyed ‘windfall’ profits.

INSIDE LV= AND ROYA

FREE SCRUM DO enjoy sizabl WN New Zealand set e private equ to ity boost

MATT HARD Y result in a stake PRIVATE equity smaller firm Silver 15 per cent to acquire a anticipated than the stake of aroun Lake is set Lake and NZR when Silver cent in intern ational rugbyd five per of last year. held talks in January All Blacks which outfit could see the the The initial deal commercial was said to arm of the rugby been valued valued at £1.5bn have team at around £1.5bn time and came The deal with . at the acquired a stakea year after Silver Lake (NZR) would New Zealand Rugby in give City Footba Group – who minority shareh the American firm ll champions own Premier League be a new comm olding in what woulda Manchester ercial City.

The deal was holding company. originally the of a player rebelli subject According to on, Sky but would repres News’ Mark if Kleinman, the ent the latest finalised transaction biggest – private – and would equity rugby union. move into

become tech flo at capital as Arm plans to

Arm’s Japan said on Tuesd ese owner Softb ay it was looki ank take the chipm ng Nasdaq excha aker public on to bid by Amer nge after a takeothe collapsed. ican rival Nvidia ver Russ Shaw London Advo, founder of Tech cates, told the move showed “ther City A.M. e is a lot

L LONDON MAR

RIAGE COLLAPSE

more work to be done that needs tech firms ” to tempt in the capitinto listing al.

“If we could get Arm to list that would in the UK signif icant be a very said. “But win,” he this is

S P3 CO-OP BOSS

TAKES TIME

ic e o during therise o more an six per Therefore,course of 20 cen any money in cash left ISAs will decrease languishing in value in

WEDNESDAY

p up again, y are o c nance exper ys a e im ing a pring “It is oney , ithough. a slow and steas.

There was y a base rate process rise in

ca s sing rea erms, s a visa com or inancia si er s oc them a goos an are c ance of

9 FEBRUARY

2022

ISSUE

3,677

W ABOUT

YOUR

ISA

CITYAM.COM

ARM W

e after

OFF FOR EXAM

list in New York

going to be a hard slog over changes to the coming years to make it the UK’s listings regim more attrac Janine Hirt,.” firms. tive for teche of UK fintec boss The gover h body Innovate consulting nment has been Finance, said the recent weekwith tech bosses in s as it looks governmen overh to aul the listin t needs to push ahead gs persuade more tech system and with going publi firms into c in Lond on.

C b re

M

RESTLE

BRIT CHIP NOT NEW FIRM YORK TO COME AFTER UNDER CONCHIE REGULAT POLITICA BRITISH subject chipmaker of a charm Arm is York as ORY HURDLE L PRESSU set politicalthe favoured ensive to be the t insiders destination, government have S END RE TO LIST e public is keen indicated but in London. the to see firm listed NVIDIA the firm IN LONDON reportedly in the capital.

TAKEOVE float global also wooing Politicians are other firms.

News R PLAN soon-toof the division flo Rene CHARLIE

MAN IN MARK KLTHE KNOW GETS TH EINMAN TALKINGE CITY P13

a bum

executive Haas taking Softbankfrom Arm-veteran over as chief boss “Rene is the rightMasayoshi Simon Segar. s gr leader Son said: to ac eler omp

S P9 COVID RULE

A PR Green Stanf said “ chang the m Lom today clearlyt change app realistic ad is need w the cost by 2050 o cool $9 ac tri C f the f projects r politicians subsidies projects.” ov of green f y analysts at Z capit l

S TO BE SCRA

PPED P11 BAIL

EY’S WAGE DILEM

MA P18

SCAN THE QR CODE WITH YOUR MOBILE DEVICE FOR MORE INFORMATION

CITYAM.COM

FTSE 100 7232.65 64.00

Ã

FTSE 250 18592.95 44.03

Price Chg High Low

GILTS Tsy 2.500 24 ................375.81 Tsy 5.000 25 ................108.10 Tsy 4.250 27 .................111.78 Tsy 6.000 28 ................124.44 Tsy 4.125 30 .................363.72 Tsy 4.250 32................. 118.16 Tsy 4.250 36 .................119.81 Tsy 4.750 38.................129.28 Tsy 4.250 46 ............... 129.20

DIVERSIFIED INDUSTRIALS -1.06 -0.40 -0.79 -0.96 -2.93 -1.29 -1.91 -2.43 -2.99

379.4 117.6 124.6 140.4 402.3 138.0 148.0 163.4 175.8

357.2 106.8 109.6 121.5 352.1 114.1 115.9 124.8 123.6

AEROSPACE & DEFENCE BAE Systems ................. 836.0 -2.4 838.4 526.0 Chemring Gp ...................317.0 -3.0 367.5 256.0 Meggitt ........................... 788.8 0.4 839.2 397.0 QinetiQ .............................374.6 0.0 374.6 243.0 Rolls-Royce .......................86.5 0.5 147.5 78.2 Ultra Electronics ........3462.0 2.0 3464.0 2350.0

AUTOMOBILES & PARTS Aston Martin..................401.2 -26.5 2081.0 401.2 TI Fluid Systems ...........152.6 0.2 323.5 151.2

BANKS Barclays ...........................155.5 2.3 217.1 140.6 HSBC Hldgs.....................539.7 5.3 567.2 359.8 Lloyds Banking ................42.7 0.3 55.1 41.2 NatWest Group............. 222.0 3.8 253.5 192.2 Standard Chartered.....623.6 10.6 638.6 410.0 TBC Bank Group......... 1270.0 46.0 1656.0 901.0 Virgin Money UK ...........136.2 3.9 218.1 124.2

BEVERAGES Britvic...............................814.5 -2.0 1006.0 741.0 Coca-Cola HBC AG......1851.0 -13.5 2784.0 1460.5 Diageo ...........................3495.0 -12.5 4103.5 3343.0

CHEMICALS Croda International ..6576.0 Elementis.........................100.3 Johnson Matt.............. 1902.0 Synthomer ......................222.4 Victrex ........................... 1761.0

68.010410.0 5908.0 1.8 158.7 97.2 25.0 3168.0 1721.0 -0.4 564.0 222.4 13.0 2706.0 1590.0

CONSTRUCTION & MATERIALS Balfour Beatty ...............258.4 Barratt Devel ................460.0 Bellway .........................2160.0 CRH ................................2838.5 Genuit Group ..................375.5 Grafton Group................721.6 Ibstock.............................165.0 Marshalls.........................443.8 Morgan Sindall Gp..... 1838.0 Persimmon ................... 1892.5 Taylor Wimpey ...............118.5 Vistry Group.................. 834.0 Volution ...........................338.5

Ä

Price Chg High Low

1.8 319.0 215.6 0.6 760.0 454.4 5.0 3526.0 2070.0 -10.5 4002.0 2756.5 -4.0 801.0 375.5 -60.2 1412.0 721.6 2.4 239.2 154.0 -0.2 845.0 441.4 8.0 2685.0 1776.0 18.5 3070.0 1808.0 0.5 182.9 116.5 -3.0 1261.5 760.5 1.0 560.0 336.5

Smith (DS) ......................277.6 3.8 462.3 273.8 Smiths Gp.......................1417.0 11.0 1629.0 1355.5 Smurfit Kappa Gp......2740.0 21.0 4305.0 2719.0 Vesuvius..........................300.0 -3.2 567.0 300.0

ELECTRICITY Contour Global...............252.5 0.0 257.0 178.0 Drax Gp ............................647.5 -12.0 831.5 393.8 SSE ..................................1695.5 18.0 1920.0 1445.5

ELECTRONIC & ELECTRICAL EQUIPMENT Halma ........................... 2005.0 Morgan Advanced ........279.0 Oxford Instruments .. 1966.0 Renishaw ......................3680.0 Spectris .........................2767.0 XP Power......................2735.0

-5.0 3216.0 1876.5 2.5 412.5 273.5 -16.0 2680.0 1760.0 20.0 5565.0 3568.0 65.0 4083.0 2458.0 -65.0 5630.0 2730.0

EQUITY INVESTMENT INSTRUMENTS 3i Infrastructure...........328.0 Aberforth Smlr Cos ...1182.0 Alliance Trust.................918.0 Allianz Tech ....................203.5 AVI Global Trust............ 179.8 Baillie Gifford Japan....703.0 Baillie Gifford US ..........152.6 Bankers InvTst ................98.7 Bellevue Healthcare..... 153.6 BlackRock Smaller ....1288.0 BlackRock Wld Mining568.0 BR Throgmorton ...........541.0 Caledonia Inv ..............3520.0 Chrysalis Inv .....................93.7 City of London IT.........405.0 Edin Inv Trust ................593.0 Edin Wwide .................... 174.0 European Opp ............... 665.0 F&C Investment ............810.0 Fidelity China SPE .......284.0 Fidelity Emg .................. 636.0 Fidelity Eur .....................283.0 Fidelity Spec Val .......... 266.0 Finsbury G&I Tst...........777.0 GCP Infra Inv..................110.4 Global Smaller ...............139.0 Greencoat UK.................154.7 Harbourvest Glb........ 2060.0 Henderson Sml Co ........795.0 Herald Inv Trust .........1564.0 HICL Infr ..........................174.4 Hipgnosis Songs Fund .108.0 ICG Enterprise ............1064.0 IMPAX ENVIRO MKTS402.0 JPM American..............685.0 JPM Emerg Mkt ............104.2 JPM Euro Disc. ..............376.0

-2.5 366.5 302.0 6.0 1612.0 1174.0 10.0 1078.0 887.0 -7.0 370.0 200.0 1.8 222.0 172.0 3.0 1106.0 662.0 1.0 358.0 146.0 0.1 125.0 95.5 1.2 208.0 132.4 2.0 2220.0 1286.0 1.0 792.0 502.0 -5.0 1042.0 536.0 -15.0 4100.0 3160.0 -2.5 277.0 93.7 4.0 425.0 377.0 3.0 657.0 580.0 -2.8 351.0 160.8 -3.0 891.0 644.0 2.0 946.0 770.0 1.0 401.5 218.5 10.0 935.0 605.5 -0.5 345.0 267.5 3.0 315.0 256.5 1.0 930.0 734.0 -1.2 118.6 100.2 -1.0 177.0 138.0 1.5 159.9 129.6 -10.0 2940.0 2005.0 -13.0 1370.0 795.0 -40.0 2630.0 1560.0 1.4 183.0 161.0 -0.4 129.2 102.6 -2.0 1314.0 954.0 2.0 583.0 381.5 -3.0 782.0 654.0 -0.6 139.0 99.8 0.5 582.0 366.5

FTSE ALL SHARE 3967.61 27.58 Price JPM Japan IT ............... 430.0 Jupiter Fund Mngt .......140.0 Law Debenture .............. 761.0 Mercantile IT ..................177.8 Monks Inv Tst ............... 930.0 Murray Inc Tst...............832.0 Murray Intl Tst ........... 1238.0 Ninety One ......................195.5 Pantheon Intl Partn .....245.5 Pershing Square.........2460.0 Personal Assets Tst....48100.0 Polar Cap Tech Tst ..... 1834.0 Renewables Infra Gp ...134.6 RIT Cap Partners.......2400.0 Schroder Asia ...............508.0 Schroder Oriental .........253.0 Scot American Inv .......461.5 Scottish Mortgage .......722.4 Sequoia Econ Infra ........90.8 Smithson Inv................ 1176.0 Syncona ...........................201.5 Temple Bar......................216.5 Templeton Em Mkts .....146.2 Vietnam Enterprise ......672.0 VinaCapital Vietna ......480.0 Witan Invest .................206.5 Wwide Healthcare .....3115.0

Ã

Chg High Low 1.5 729.0 412.5 -1.9 298.2 140.0 7.0 830.0 724.0 0.0 291.0 174.8 -3.0 1472.0 888.0 3.0 952.0 770.0 6.0 1320.0 1076.0 -2.6 277.4 195.5 0.5 351.0 240.5 -5.0 3115.0 2330.0 -50.050900.047350.0 -4.0 2750.0 1778.0 -0.4 139.4 123.2 25.0 2765.0 2250.0 -7.0 617.0 498.0 -3.0 277.0 251.5 2.0 543.0 442.5 -6.8 1543.5 670.6 -0.2 114.6 90.8 -7.0 2025.0 1140.0 -3.0 222.0 157.2 0.0 254.4 201.6 -1.2 199.4 140.6 -3.0 791.0 649.0 0.0 545.0 438.0 -1.0 257.0 202.0 -50.0 3860.0 2825.0

FIXED LINE TELECOMMUNICATIONS BT Gp ................................190.4 5.0 200.9 135.2 Telecom Plus ...............1980.0 10.0 1980.0 1010.0

FOOD & DRUG RETAILERS Greggs ........................... 1834.0 13.0 3416.0 1808.0 Ocado Gp ........................ 784.8 -29.2 2090.0 727.8 Sainsbury(J).................. 208.4 1.0 340.0 203.3 SSP Group...................... 238.0 0.2 303.2 207.8 Tesco................................. 257.5 2.7 303.4 229.7

FOOD PRODUCERS Assoc British Foods....1597.0 8.0 2259.0 1548.5 Cranswick ....................2992.0 -42.0 4148.0 2918.0 Greencore Gp ...................98.8 -0.1 146.6 98.8 Hilton Food Gp .............1018.0 0.0 1250.0 1004.0 Premier Foods.................112.0 0.8 126.8 98.3 Tate & Lyle ......................772.0 11.8 906.5 733.5 Unilever.........................3802.5 2.5 4360.0 3328.0

FORESTRY & PAPER Mondi .............................1479.5 24.0 2068.0 1309.0

GENERAL FINANCIAL 3i Group ........................1085.0 Ashmore Gp....................215.0 Brewin Dolphin .............509.0 Bridgepoint Group........223.0 Capital Gearing ..........4985.0 Close Brothers .............1021.0

-17.0 1503.5 1059.0 -4.0 410.0 207.6 -1.0 517.0 266.0 -9.0 569.0 223.0 10.0 5180.0 4905.0 0.0 1602.0 1007.0

Ã

RISERS

Harbour Energy ...........................349.90 BP ..................................................401.45 Tullow Oil .......................................45.42 Price CMC Markets .................272.0 Coats Group......................62.0 Hargreaves Lans............773.0 IG Gp................................684.5 Integrafin Holdings.......217.4 Intermediate Cap ......1305.0 Intl Public Prtnshps .....164.0 Investec ...........................438.1 IP Group ............................69.2 JTC ...................................582.0 Liontrust.........................890.0 London Stock Exch ....7708.0 Man Group ......................245.6 OSB Group ..................... 482.2 Paragon............................493.0 Petershill Partners ........217.5 Plus500 .........................1571.0 Provident Financial ......194.9 Quilter ..............................100.4 Rathbone Grp...............1938.0 Ruffer Investment.......300.5 Schroders.....................2648.0 SDCL Energy ...................116.6 TP ICAP ...........................108.1

Chg High Low -2.0 470.0 219.5 -0.3 81.4 58.2 -4.0 1677.0 762.6 0.5 945.0 648.0 -5.8 602.0 217.4 -11.5 2379.0 1305.0 -0.4 174.8 156.0 8.5 536.8 270.5 -0.7 155.2 69.2 -2.0 936.0 581.0 -5.0 2485.0 890.0 150.0 8504.0 6370.0 2.3 259.6 178.8 4.0 599.0 418.8 4.0 617.5 427.2 2.0 350.7 194.8 -25.0 1673.0 1255.5 -4.5 381.6 194.9 -0.8 197.1 100.4 28.0 2210.0 1518.0 1.5 325.0 230.0 2.0 3871.0 2626.0 0.8 124.0 97.8 -4.0 208.2 108.1

GENERAL RETAILERS B&M..................................365.6 Currys.................................69.8 Dunelm Gp.......................818.5 Frasers Group ...............668.0 Howden Joinery Gp...... 597.2 Inchcape.........................690.0 JD Sports Fashion .........114.7 Kingfisher........................245.4 Marks & Spencer ..........139.8 Moonpig...........................213.0 Next ..............................6098.0 Pets at Home Gp ..........284.2 Vivo Energy .................... 145.6 Watches of Switz ......... 763.5 WH Smith......................1376.5

0.5 644.0 355.8 0.5 141.6 68.1 -11.5 1521.0 776.5 3.0 813.5 562.5 -8.0 975.6 581.4 -1.0 933.0 647.0 -3.0 234.0 102.9 -1.5 376.0 234.8 1.6 256.9 131.6 -16.0 424.6 190.6 114.0 8426.0 5764.0 -25.8 519.0 278.0 -2.8 149.0 99.3 -10.0 1518.0 755.0 -21.5 1805.5 1311.0

HEALTH CARE EQUIPMENT & SERVICES Convatec..........................226.4 1.4 262.6 166.8 Mediclinic Intl ..............466.0 12.8 466.0 275.8 Smith & Neph...............1140.0 -10.5 1592.5 1120.5 Spire Health .................. 238.0 3.5 254.5 206.0

HOUSEHOLD GOODS Berkeley Grp Hldgs ...3754.0 Countryside ................... 244.8 Crest Nicholson .............245.6 Reckitt Benckiser ......6232.0 Redrow............................488.6

11.0 4943.0 3670.0 -1.2 571.5 225.8 -1.4 426.8 233.0 4.0 6600.0 5391.0 -3.0 718.8 481.0

% 5.2 4.4 4.4

Ä

FALLERS

Pets at Home Gp ......................... 284.20 Grafton Group .............................721.60 Moonpig .......................................213.00

Price Chg High Low

INDUSTRIAL ENGINEERING Bodycote .........................524.0 Hill & Smith ..................1156.0 IMI ..................................1169.0 Melrose Ind .................... 153.2 RHI Magnesita ............1932.0 Rotork ..............................239.6 Spirax-Sarco..............10130.0 Weir Gp..........................1414.0

-1.0 984.5 2.0 1902.0 4.0 1838.0 -1.4 190.8 -43.0 4262.0 1.0 373.4 75.0 17135.0 41.0 1916.5

Evraz ...................................81.0 0.0 646.2 53.1 Ferrexpo ..........................128.2 -3.4 495.2 116.0

INDUSTRIAL TRANSPORTATION Clarkson........................2905.0 -90.0 4180.0 2905.0 Redde Northgate ..........341.0 1.5 443.0 337.0 Royal Mail ....................... 267.8 -2.5 578.8 267.8

LEISURE GOODS Games Workshp .........6770.0 -65.012220.0 6005.0

LIFE INSURANCE abrdn ................................154.6 0.1 299.0 154.5 Aviva ................................404.7 3.1 602.9 394.6 Just Group ........................69.3 -0.6 106.0 69.3 Legal & General............ 244.0 1.4 307.8 235.2 Phoenix Gp...................... 587.4 0.8 701.4 571.2 Prudential .....................1018.5 -12.5 1553.5 881.0 St James Place ............1081.0 -10.0 1731.5 1081.0

MEDIA -20.0 3170.0 2240.0 0.4 454.4 253.8 17.4 741.8 499.5 -24.0 1416.0 829.0 -5.0 3910.0 1551.0 0.2 624.0 464.4 -0.2 126.0 65.2 1.2 270.6 167.0 4.2 869.4 571.8 26.0 2449.0 1986.0 1.0 800.4 531.0 -18.0 1224.0 783.2

MINING Anglo American ........ 2840.0 Antofagasta ..................1107.0 BHP Group ...................2244.0 Centamin ...........................80.3 Endeavour Mining.......1703.0 Fresnillo ...........................779.2 Glencore ......................... 434.8 Hochschild Mining ...........93.7 Rio Tinto .......................4835.0

18.5 4170.5 -14.5 1781.5 20.0 3019.0 3.0 109.8 64.0 2100.0 21.8 986.8 8.4 541.5 -1.7 173.4 0.5 6292.0

Price Chg High Low

MOBILE TELECOMMUNICATIONS 524.0 1110.0 1165.0 107.6 1932.0 236.2 9130.0 1363.0

INDUSTRIAL METALS

4imprint........................2305.0 Ascential .........................262.2 Auto Trader Gp..............559.6 Euromny Inst Inv.......1290.0 Future .............................1683.0 Informa........................... 526.0 ITV ......................................65.4 Moneysupermkt.com ... 175.8 Pearson .............................747.4 RELX ..............................2236.0 Rightmove Group ......... 566.2 WPP .................................805.2

% -8.3 -7.7 -7.0

2470.5 1107.0 1835.2 75.8 1510.0 622.4 296.2 93.7 4375.5

Vodafone Gp ...................128.7

Admiral Gp...................2228.0 -6.0 3688.0 2103.0 Beazley............................ 489.6 3.8 504.0 342.5 Direct Line Ins ...............248.4 -2.1 316.4 231.4 Hiscox ..............................948.0 2.0 990.2 792.8 Lancashire Hldgs...........389.6 -4.2 675.5 346.6

OIL & GAS PRODUCERS 16.9 451.4 -1.0 229.8 18.0 1391.0 17.3 530.0 82.0 2440.0 1.9 62.2

278.4 125.6 620.0 310.1 1833.4 40.3

OIL EQUIPMENT & SERVICES Wood Gp(J) ....................155.4

5.0 256.5 150.4

PERSONAL GOODS Burberry Gp..................1638.5 PZ Cussons......................203.0

6.5 2182.0 1482.0 2.0 269.0 182.8

PHARMACEUTICALS & BIOTECHNOLOGY AstraZeneca .............10808.0 Dechra Pharma...........3434.0 Genus.............................2540.0 GSK ................................1802.6 Hikma Pharma ............ 1654.0 Indivior ........................... 309.8 Oxford Biomedica ........450.0

54.011054.0 8063.0 -64.0 5405.0 3110.0 -14.0 6070.0 2234.0 17.0 1810.4 1380.4 32.5 2690.0 1482.0 5.2 336.8 148.1 -16.0 1634.0 415.0

REAL ESTATE Assura ................................64.8 Big Yellow Gp ..............1290.0 British Land ....................443.0 Captl & Count Prop ......140.0 CLS Hldgs .......................202.0 Derwent London ........2570.0 Grainger...........................275.8 Grt Portland Est .............737.0 Hammerson ....................... 19.1 Land Securities..............653.8 LondonMetric Prop ......225.6 Primary Hlth Prop ........135.0 Safestore Hldgs .......... 1036.0 Savills .............................. 999.0 SEGRO .............................950.6 Shaftesbury................... 522.0 TR Property IT ..............359.5 Tritax Big Box .................179.1 Tritax Eurobox .................85.0 UK Commercial Prop ......73.6 Unite Group .................1046.0 Urban Logistics .............159.0 Workspace Gp ...............539.5

/€ 1.1611 /$ 1.2107 /¥ 164.28

à à Ã

0.0051

€/£ 0.8613

1.4840

€/¥ 141.49

Price Chg High Low

-0.5 79.8 59.6 -4.0 1724.0 1200.0 0.7 556.4 442.3 1.0 179.3 139.0 -0.5 262.0 185.2 -22.0 3802.0 2570.0 -4.4 335.0 269.8 0.0 803.5 700.5 -0.2 39.9 19.0 0.6 813.2 653.2 -2.2 285.2 225.6 -1.9 169.6 131.1 7.0 1418.0 1000.0 -14.0 1450.0 975.5 -5.4 1436.5 950.6 6.5 662.0 515.5 -8.5 510.0 359.5 0.6 249.0 178.5 -0.7 124.0 85.0 -0.9 93.4 72.5 -11.0 1237.0 990.2 -1.5 199.0 118.5 -15.0 971.0 539.5

Auction Tech ..................901.0 Avast..................................517.4 Aveva Gp.......................2301.0 Baltic Classifieds...........129.0 Computacenter............2310.0 FDM Group.....................848.0 Kainos Gp .....................1099.0 Micro Focus Intl ........... 264.8 NCC Grp ...........................186.8 Playtech ...........................549.5 Sage Group .....................633.2 Softcat ..........................1282.0 Trustpilot...........................98.9

-17.0 1642.0 788.0 -1.4 645.4 474.0 41.0 4220.0 1924.0 3.0 255.0 99.8 -32.0 3030.0 2306.0 -3.0 1362.0 830.0 -9.0 2084.0 954.5 -13.5 466.1 264.8 0.2 335.0 167.4 1.5 770.0 351.0 -1.0 853.8 595.6 -17.0 2240.0 1253.0 -0.6 460.0 79.1

SUPPORT SERVICES Ashtead Gp .................. 3474.0 Babcock Intl Grp............317.8 Biffa ..................................376.4 Bunzl ..............................2759.0 DCC ................................ 5162.0 Diploma..........................2176.0 discoverIE Gp.................633.0 Essentra...........................249.0 Experian .......................2426.0 Ferguson .......................9012.0 Hays .................................. 110.8 Homeserve ....................1170.0 Intertek Gp..................4228.0 IWG...................................184.4 MITIE GROUP................... 57.1 Network Int....................186.0 Pagegroup.......................401.6 Rentokil Initial.............. 486.4 RS Group ........................ 858.5 Sanne Group...................907.0 Serco .................................174.6 Travis Perkins.................955.6

-63.0 6450.0 3359.0 -0.2 380.2 255.9 11.4 416.0 283.0 41.0 3163.0 2397.0 82.0 6486.0 4889.0 -54.0 3460.0 2158.0 -27.0 1262.0 608.0 2.0 357.0 247.0 -4.0 3667.0 2285.0 -18.013305.0 8680.0 -1.0 175.4 110.8 3.0 1174.0 608.5 -33.0 5782.0 4188.0 -3.6 328.0 184.4 0.6 77.3 46.5 -4.2 394.4 171.8 -3.4 680.5 386.0 9.3 636.2 444.5 -7.5 1255.0 812.0 -3.0 946.0 822.0 2.1 183.8 121.2 -2.6 1830.0 955.6

TECHNOLOGY HARDWARE & EQUIPMENT Spirent Comms............. 244.8 -6.8 300.2 215.4

TOBACCO Br Am Tob ....................3560.5 25.0 3628.0 2512.5 Imperial Brands ..........1839.5 4.0 1882.0 1486.0

TRAVEL & LEISURE 888 Holdings...................173.7 Carnival............................626.2 Compass Gp..................1729.5 Dominos Pizza................272.6 easyJet ...........................360.3 Entain .............................1212.5 FirstGroup.......................130.4 Flutter Ent....................8346.0 Intercontl Htls ............4303.0 Intl Cons Airl...................107.6

MARKETS

0.0032 €/$ 1.0428

SOFTWARE & COMPUTER SERVICES

1.3 139.5 106.9

NONLIFE INSURANCE

BP ......................................401.4 Capricorn Energy..........212.4 Energean ......................1066.0 Harbour Energy .............349.9 Shell ...............................2203.0 Tullow Oil........................... 45.4

£

TUESDAY 5 JULY 2022

1.3 478.0 160.7 -30.6 1766.4 619.6 1.5 1820.5 1407.5 -4.8 465.2 272.6 -16.6 935.0 360.3 -40.0 2377.0 1212.5 0.8 139.5 73.6 64.015890.0 7922.0 -55.0 5338.0 4193.0 -1.2 188.0 107.6

Price Mitchells & Butlers ......186.6 National Express ...........190.3 Rank Gp .............................85.3 TUI AG ............................. 132.4 Wetherspoon (JD) .......620.0 Whitbread....................2454.0 Wizz Air Holdings .......1786.5

Ã Ä Ã

15

0.0014 0.0024 0.8740

Chg High Low -0.9 295.0 184.2 -3.2 284.2 190.3 -1.2 184.2 79.5 -4.4 376.0 132.2 -15.0 1239.0 620.0 -55.0 3438.0 2436.0 -72.0 5398.0 1754.0

AIM 50 Abcam ............................1182.0 Advanced Medical ....... 292.0 Alliance Pharma.............112.8 ASOS.................................891.0 Camellia ....................... 6200.0 Caretech Holdings ........742.0 Central Asia Metals .....218.5 CVS Group.................... 1585.0 Dart Group .....................902.2 Diversified Energy .........112.3 EMIS Group .................1868.0 FD Technologies .........2045.0 Fevertree Drinks ........ 1240.0 Frontier Devs................1378.0 Gamma Comms ..........1058.0 GB Group .........................389.2 Gooch & Housego .........893.0 Hurricane Energy............... 7.0 Impax Asset Mgmt ......581.0 Iomart Group ................. 169.4 IQE.......................................35.0 James Halstead .............198.5 Johnson Service Gp ......101.4 Keywords Studios .....2186.0 Learning Tech Gp ...........110.1 M&C Saatchi ..................155.0 M.P. Evans ......................848.0 Majestic Wine................ 163.6 Midwich Group ..............576.0 Molten Ventures ...........399.2 Mortgage Advice B ......871.0 Next Fifteen Comm .....895.0 Nichols............................1135.0 Numis Corporation .......248.5 Polar Capital Hdgs........513.0 Purplebricks Gp................15.3 Renew Holdings............648.0 RWS Holdings ................333.8 Secure Income REIT ..468.0 Serica Energy................ 295.0 Smart Metering Sys....805.0 Telford Homes................349.5 Thorpe (F.W.)..................371.0 Watkin Jones .................214.5 Young’s Brew NV...........726.0 Young’s Brew-A............1120.0

-20.0 1750.0 1049.0 -3.0 341.0 256.5 0.8 121.6 96.4 9.0 5150.0 783.5 150.0 6925.0 5850.0 1.0 747.0 530.0 2.5 284.0 200.5 -52.0 2770.0 1549.0 -15.8 1423.0 902.2 2.0 128.8 97.7 8.0 1890.0 1136.0 93.0 2500.0 1378.0 -4.0 2812.0 1220.0 6.0 2840.0 1078.0 -14.0 2335.0 1058.0 -14.8 952.5 389.2 -7.0 1550.0 816.0 -0.4 11.7 2.1 -12.0 1482.0 555.0 -2.6 272.0 140.0 -0.1 53.3 28.2 -2.2 580.0 198.5 3.7 174.8 97.7 -28.0 3302.0 1952.0 -1.8 235.8 107.1 -1.0 216.0 125.0 -18.0 1085.0 672.0 -1.7 879.0 152.1 4.0 700.0 494.0 -8.4 1180.0 399.2 -12.0 1500.0 870.0 -10.0 1458.0 874.0 5.0 1540.0 1105.0 1.5 383.0 230.0 1.0 915.0 504.0 0.0 81.6 14.1 3.0 872.0 594.0 -9.4 678.5 333.8 1.0 480.0 382.5 18.0 418.5 144.0 8.0 1030.0 688.0 0.0 349.5 349.5 -9.0 520.0 371.0 0.0 276.5 205.5 -12.0 982.0 648.0 -8.0 1660.0 1120.0

16

OPINION

TUESDAY 5 JULY 2022

CITYAM.COM

OPINION EDITED BY SASCHA O’SULLIVAN

Waitlists, ambulance delays, a looming GP strike? It must be the NHS’ birthday Elena Siniscalco

S

O, happy birthday, NHS. It’s not every day a national health service turns 74, is it? And what a way to celebrate, after making it through the pandemic, doctors and nurses are threatening to strike, backlogs are getting worse and worse, and people are hopping in their cars to get to A&E because an ambulance won’t get to them in time.

When the NHS was introduced by Clement Attlee in 1948, it was off the back of a spirit of unity in the wake of the second world war. Many had hoped our reliance on overworked doctors and health staff during the pandemic would invoke a similar mood and help us nurse the service back to life.

For the moment, much of this rests on Sajid Javid’s digital transformation.

Just last week, he was outlining some of the basic tenets of his modernisation plan. The idea behind it is that by devolving tasks to technology, medical staff have more time to focus on the more critical and urgent aspects of care - as well as a holistic picture. It’s about efficiency, centralisation and long-term cost-saving measures.

The healthcare system is currently facing major hiccups - backlogs, understaffing and spending issues are not going away. One might think that technological advancement is too simple of a solution. But digital innovation

Sajid Javid announced his plans for a digitised NHS last week could help bridge the gap between disease reduction and prevention and overall patient care.

Mammoth health systems like the NHS often rely on numerical targets which can create rather crude results.

For diseases, we look at how many people were cured, in primary practice, it looks for how many patients a GP could see in a day. With the advent of online consultations during the pandemic, the patient’s overall experience - how they felt after surgery, or how invested their doctors were in their wider health - was sacrificed in favour of efficiency. But digital innovation

could also be a way of building back that bridge between disease treatment and prevention and patient care.

Practitioners often don’t have the time to focus on patient care. It’s not that they don’t want it, it’s just the simple fact of not having the hours in the day. But technology, built into the system, can provide targeted information so doctors know more about what to ask for, or offer digital monitoring after a patient is discharged.

Another well-known issue is the silos the NHS works in. Different parts of the system don’t talk to each other, and patients get ping-ponged from one

specialist to another, often with no clue about what’s making them feel sick. This erodes trust in the organisation. Javid wants to create a new digital strategy to ensure every patient has a “life-long digital care record”, available at every point of care. Patients won’t have to repeat themselves, doctors will be able to understand the problem better, and time will be saved. In an emergency, a patient’s medical history is crucial information, more likely to lead to more successful care. Inherent in this proposition is trust. Trust in how the data is used, how it is collected and how it is shared.

Privacy, please. Demand for phone booths is a sign the open-plan working craze is over

C

OLLABORATIVE space in offices has been in vogue for some time now. The demand for open plan offices was behind the creation of thousands of co-working companies.

You’ve heard the phrases: bumping into colleagues, water cooler chats, office banter - all the things we missed in the office. But whether people are in the office two days a week or five, something fundamental has changed in how we use that space.

One of the most desired features in offices now is phone booths, and those thinking about office design should take note. Humans are sociable creatures, but we also like privacy, and office design has been eating away at workers' privacy for years.

Advances in technology have meant that the equipment we have on our desk has got smaller: there’s no need for big desktop computers when you can use laptops and cloud computing.

But rather than relishing the extra space, desks have shrunk in size too, a phenomenon accelerated by the ad-

Will Kinnear

vent of break out areas and “collaborative space”.

It is particularly acute in the flexible workspace sector, where operators have found it difficult to monetise shared spaces, so they squeezed in more desks, allocating less space per person to compensate.

We've all seen those offices with amazing receptions and communal areas with café-bars, sofas and table football but look beyond the public spaces to where the regular desks are, and it's a different picture.

For two years, people were used to the privacy of their own home. Or they were bombarded with how little privacy they had, with kids and pets

and other distractions.

Designing offices to suit a tried and tested model of working is perceived as less risky.

It's a balancing act. Offices need freeflowing space to allow collaboration to flourish and for staff to feel part of something. But it can't be at the cost of personal space, staff also need to be able to retreat to quieter spaces with more privacy.

Hence the demand for phone booths.

For those with offices or co-working spaces to let, it means listening to those who will be using the space.

Workers have more choice. There are more job options, more ways of working and more places to work.

It’s true, people want space to work with others when they are in the office. But for many, they also need privacy. And especially in cities like London, this is a luxury not available for many, even in their own homes.

Occupier voices are louder than ever simply because people can vote with their feet. If staff don't like the work

environment, they can move jobs.

Why would they commute for two hours a day to sit at a cramped desk where they can be overheard or where it's too noisy to concentrate?

Businesses have a greater choice too.

Twenty years ago, you could look at ten buildings in the same street, and while the facades might be different, the floorplates and finishes would essentially be the same. It wasn't so much about what the space was like but negotiating the best possible deal.

But those days are gone. The industry has less power to dictate what office space should be like. Businesses are looking at how offices contribute to productivity and staff retention, not just what it costs.

Understanding how people work and their needs must inform offices to a far greater degree than it has in the past. Collaboration space is important and needs to be carefully curated, but the rest of the office design needs equal consideration. £ Will Kinnear is founder of Hewn

Patients will “need to understand the purpose of sharing their data”, says Badri Wadawadigi, Chief Digital Officer of pharmaceutical company Pharmanovia. The NHS must convince its patients that it’s worth the trade-off: by giving up information, a patient makes their treatment easier.

But the UK is not the first to try this approach. In 2009, Australia created an e-health record, to the tune of more than £1bn (AU$2bn). 12 years later? Almost no one used it. Just 2.69 million of the 23 million people registered for the record accessed it in 2020-21. A year on year increase of 14 per cent was largely due to the need for vaccine certificates.

Takeup in a post-pandemic era might be an easier sell. But there is still a critical question surrounding accessibility for older people or those with disabilities or language barriers. The NHS has always been built on the principle of care for everyone. “People working in digital health don’t focus on usability as much as (we need)”, says Wadawadigi. Disease-targeted apps will have to be built with the conditions of a person with that disease in mind.

Digital transformation could have the potential of saving the NHS from its current downfall. But, for the moment, it is still a pipe dream caught up in the chaos of the 2.48 million people on waitlists, the 40 minute waits for an ambulance in cases of a suspected heart attack, the many, many people pleading “please, just let me see my GP in person”. Javid’s vision is much needed, but it needs buy-in from across the government, health chiefs and the staff working in the system.

AWAY DAY, AWAY TOMORROW While thousands were trapped in travel hell, Easyjet execs were gearing up for a trip to Mallorca. But for Peter Bellew, it’s not an away day on the cards so much as just away. The chief operating officer quit after weeks of turmoil, but the top team will still head off to Spain

TUESDAY 5 JULY 2022

CITYAM.COM

WE WANT TO HEAR YOUR VIEWS

LETTERS TO THE EDITOR Wash yourself clean and green [Re: Greenwashing creates ‘false confidence’ in climate fight, environment chief warns, yesterday] Yesterday’s warning from the chief of the UK’s environment agency should be a wakeup call for businesses that have still not committed to robust reporting on their sustainability credentials. To instill real confidence, and allay accusations of greenwashing, they should establish a clear roadmap for meeting the targets they set.

If, for instance, the UK is to reach net

zero by 2050, it must address the issue of its built environment, which accounts for a quarter of its greenhouse gas emissions. Businesses should leverage reporting tools to quantify their buildings’ sustainability performance and identify areas for improvement.

Harnessing the power of data is critical, as potential clients and partners increasingly demand meaningful, measurable information on businesses’ performance against sustainability targets. Being proactive and holding themselves to account, therefore makes good business sense as well as, more importantly, ensuring that these targets can be genuinely achieved.

Georgia Sandom

TRAINING WHEELS Eurostar also plagued with queues and travel woes

As airports have been plagued with chaos, now Eurostar is also struggling, with passengers reporting 90 minute waits at King’s Cross St Pancras to board the train. It might be another stay-at-home summer after all.

EXPLAINER-IN-BRIEF: THE CURRENT STATE OF PLAY OF THE HEALTH SERVICE Backlogs affecting every aspect of care - from GP appointments to hospital treatment - plague the NHS. Around 6.4 million patients are waiting to start hospital treatment in England. In other words, ten per cent of the population are in line for treatment.

According to the latest figures by NHS England, there are 2.48 million people who have been waiting over 18 weeks for treatment. Another 323,093 have been waiting over one year.

Waits at the Barts Health NHS Trust in London have reached

St Magnus House, 3 Lower Thames Street, London, EC3R 6HD Tel: 020 3201 8900 Email: news@cityam.com

200 weeks - nearly four years - for operations.

The government has promised £9bn to tackle the backlog of elective operations - those scheduled in advance because they’re not urgently necessary.

But there’s also the so-called post-Covid-19 “hidden backlog” of those who need care but have had their referrals cancelled or are not showing up to clinics and hospitals. On top of that, there could be millions missing from official data, which would mean the numbers are even higher than we think.

Certified Distribution from 4/4/2022 till 29/4/2022 is 81,713

OPINION

17

› E: opinion@cityam.com COMMENT AT: cityam.com/opinion

Renewables haven’t pushed prices down because we haven’t learned to use them Jo-Jo Hubbard

W

IND and solar technologies promised us “power from thin air”: zero marginal cost generation to lower energy bills and carbon emissions in step. Yet today, as renewable records continue to roll in, they seem to have done little to assuage rocketing power prices.

It’s not that renewables were a bad bet. In fact, they remain the only bet to decarbonise all UK electricity by 2035. The problem is we are not using renewables properly. We are forcing them into a market infrastructure designed for centralised gas and coal, one that still pays supply to match demand at a national level. In other words, we pay wind and solar sites not to generate when it is “too” windy or sunny against local consumption needs.

We should have local markets incentivise consumers and storage to use the right electrons in the right place at the right time.

Energy bottlenecks don’t only increase energy costs, they slow the build out of new renewables October 2021 saw nearly £14m in costs paid to wind farms to reduce generation when their capacity to produce power exceeded the grid’s capacity to transmit it to consumers. On the other side of that bottleneck, £144m was paid to gas generators, typically to increase generation to meet demand where and when it’s needed. All these costs are paid by our energy bills.

These bottlenecks don’t only increase energy costs, they also slow the buildout of new renewables. Developers face record queues of up to a decade to be connected in grid-constrained zones (meaning sunny or windy places). This current system wastes existing renewables; creates barriers for new renewables and costs bill-payers millions.

Simply investing more and more to

Editorial Editor Andy Silvester | News Editor Ben Lucas Comment & Features Editor Sascha O’Sullivan Lifestyle Editor Steve Dinneen | Sports Editor Frank Dalleres Creative Director Billy Breton | Digital Editor Michiel Willems Commercial Sales Director Jeremy Slattery

Wind farms were paid £14m to reduce their capacity in October last year build the network capacity to handle any amount of generation is not the solution. This would be akin to building out roads and motorways to prevent a single traffic jam. It is astronomically expensive and materially wasteful.

What we need is precision.

We need to transform excess generation from a national problem into a local opportunity. We need to create incentives for excess generation to be consumed or stored locally. This means flexible local consumers – think batteries, electric vehicles, heating and cooling systems – get access to cheaper, cleaner power. This also benefits nonflexible consumers, reducing balancing costs and competition for electrons in other time periods.

Local opportunities to buy cheap, excess energy will increase the adoption of flexible uses where they are most needed. New energy-intensive industries, such as vertical farming, will have their unit economics transformed by a ready source of cheap, clean power. The additional flexible de-

Distribution helpline If you have any comments about the distribution of City A.M. please ring 0203 201 8900, or email distribution@cityam.com

mand that these industries engender will, in turn, fund more renewable development.

The wheels of change are starting to turn. For example, Electron created a local energy marketplace in the Orkney Islands to enable curtailed windfarms to pay local households to use their excess power, and we have a new project in the North of England to enable renewable generators to avoid curtailment losses.

Other flexibility markets are in the works in Oxford and Cornwall too.

However, local trading opportunities remain few and far between.

It is time to move away from our “topdown” approach to energy markets and encourage a kind of devolution within the industry. This will maximise the value of renewables today, and free-up capacity in electricity networks for a faster, cleaner energy future. £ Jo-Jo Hubbard is the chief executive officer of Electron

Our terms and conditions for external contributors can be viewed at cityam.com/terms-conditions Printed by Iliffe Print Cambridge Ltd., Winship Road, Milton, Cambridge, CB24 6PP

18

LIFE&STYLE

CITYAM.COM

TUESDAY 5 JULY 2022

MOTORING

BY MOTORINGRESEARCH.COM FOR CITY A.M.

SEEING THE LIGHT With no windscreen and no frills, the Caterham Seven 170R is focused solely on driving fun.

Tim Pitt straps himself in

T

HIS is the first press car I’ve ever collected that comes with a crash helmet. Still, it doesn’t come with much else.

There’s no windscreen, for starters, and no doors or roof. Clamber inside and you’ll search in vain for carpets, a heater or a radio. The Caterham Seven 170R is motoring boiled down to the basics.

Fittingly for a car that originates from the Lotus Seven, the 170R is the ultimate exponent of Colin Chapman’s ‘Simplify, then add lightness’ philosophy. At 440kg, it’s the lightest production car on sale – and nearly a tonne lighter than a new Lotus Emira. It makes anything this side of a skateboard look morbidly obese.

Having so little heft means this entry-level Caterham (£27,385, or £24,990 if you build it yourself) can make do with 85hp from a 660cc three-

cylinder Suzuki engine: good for 062mph in 6.9 seconds and a very blustery 105mph. It also qualifies for compact ‘kei car’ status in Japan, where the majority will be sold.

You can have your Seven in softer 170S spec, but I sampled the hardcore 170R, with adjustable sports suspension, a Quaife limited-slip diff and hard-shell composite seats. Mine also came loaded with options, including lashings of carbon fibre trim and Aston Martin Golden Saffron paint, bumping the price up to £32,605. Not quite such cheap thrills, then.

Strapped in with a four-point harness behind a tiny Momo wheel, the Caterham immediately feels like a racer for the road. There are compromises, however. The footwell of the narrow-bodied 170 is so tight that I’m forced to drive with bare feet, or risk pressing two pedals at once. And the lack of a wind-

CATERHAM SEVEN 170R PRICE: POWER: 0-62MPH: TOP SPEED: FUEL ECONOMY: CO2 EMISSIONS:

£24,990 85HP 6.9SEC 105MPH 58.3MPG 109G/KM

screen means sunglasses are essential, while a crash helmet is advisable beyond city speeds – unless you literally want flies in your teeth.

To be honest, the novelty of driving in a helmet wears thin very quickly, so I’d opt for a proper screen. Doing so also gives your ears unfettered access to the raspy three-pot engine, which serves up hilarious wastegate whistles on the over-run. It’s guaranteed to make you giggle. Official fuel

economy of 58.4mpg might raise a smile, too.

The 170R isn’t particularly fast, but short gear ratios (you’ll need fourth for 70mph), skinny 155-section tyres and being al fresco all add to the sensation of speed. A lot of modern sports cars feel frustrating because you can rarely exploit their performance on the road. The Caterham is the opposite; you can wring it out almost anywhere.

Sitting almost atop the live rear axle, the tarmac inches from your elbows and a view of the front suspension jostling ahead, you’re acutely aware of the road and how the chassis reacts to its every nuance. The steering feels disconcertingly direct at first, but you soon tune into its vivid, hyperactive responses. Compared to a ‘normal’ car, it feels like the Seven has downed a double espresso.

Unlike more powerful Caterhams – such as the 137hp Super Seven 1600 I tested last year – the 170R doesn’t have the oomph to easily break traction and behave like a hooligan. Well, unless the road is wet, of course, in which case you’ll be getting wet too. While its limits are relatively low, though, the car has an alert, throttle-adjustable sense of balance, helped by the rear diff fitted to this ‘R’ version.

For about £200 a month (after a decent deposit), the Seven 170R offers an intense, all-consuming driving experience that makes every journey feel adventurous. I’d still choose one of the more powerful, four-cylinder models if your budget allows, but this is a great first rung on the Caterham ladder. Just don’t forget to tick the box marked ‘windscreen’.

Tim Pitt writes for motoringresearch.com

A LE MANS LEGEND RETURNS: NEW JAGUAR C-TYPE IS READY TO RACE

J

AGUAR has completed production of its first C-Type Continuation car, ahead of delivery to a very fortunate customer. Painstaking research and development by Jaguar Classic has led to a beautifully faithful recreation of the 1950s racing car.

Some 3,000 hours will be spent hand-building each ‘reborn’ C-Type Continuation. The cars will then undergo 250 miles of dynamic testing to ensure they perform as expected.

Originally produced between 1951 and 1953, the C-Type was used by Jaguar for sports car racing. Based on the road-going XK120, a total of 53 examples were produced, with 43 sold to private competitors.

The C-Type won its first Le Mans 24 Hour race in 1951, followed by another victory in 1953. The second win saw Jaguar modify the car for improved performance, and the Continuation is based on this later version. That means a 3.4-litre straight-six with triple Weber 40DCO3 carburettors, producing a considerable 220hp.

Each engine takes nine months to build, using refurbished Weber components and a Plessey hydraulic pump exactly like those fitted in 1953. Jaguar Classic has even included specific brackets on the brake fluid reservoir that serve no useful purpose. However, the original

vehicles had them fitted, so they remain a part of the Continuation.

Buyers of the Jaguar C-Type Continuation have a choice of 12 colours, with the painting process taking a week to complete. The first finished car, seen here, has a Pastel Green exterior and Suede Green leather seats. This choice was apparently inspired by a C-Type used

by Sir Stirling Moss, which he drove to victory in the 1952 Reims Grand Prix.

Each new car built by Jaguar Classic is fully FIA-approved, opening the door to their use in historic motorsport competitions – including the forthcoming Goodwood Revival.

TUESDAY 5 JULY 2022

CITYAM.COM

SPORT

19

Grace wins LIV event in Portland and bags $4m

S

***, this is fun! How good has this been? I’ve never experienced anything like this.” The words of Branden Grace after he banked the $4m prize pot for winning the second LIV Golf Invitational Series event in Portland, Oregon, United States.

For the second time in two events, Grace shot a final round 65 – at the Centurion Club it was enough for third but in Portland on Saturday it earned him a spot at the top of the glitzy podium.

Pumpkin Ridge is a challenging course throughout with a number of difficult par three’s and a run-in of two par four’s, a par five and a concluding par four.

Grace, though holed a lengthy birdie on the 10th and the 13th – one of just two birdies on that hole on Saturday –

Brilliant back nine hands South African top spot in Oregon as Aces pick up team title at second event, writes Matt Hardy on his way to posting a score of fiveunder on the back nine alone.

His seven-under 65 helped the South African post 13 under par for the threeday event, two strokes ahead of Mexican Carlos Ortiz in second and American Patrick Reed in third But there’s more to the LIV Golf Invitational Series than the individual competition; team scores are totted up at the conclusion of the 54th hole and there’s further financial reward for the best group.

Grace’s win helped the Stinger GC – Grace, Louis Oosthuizen, Charl Schwartzel and Hennie Du Plessis – to second on the team podium but a

third and fourth place finish for Aces GC’s Reed and Dustin Johnson – Reed beat his team mate in a third-place tiebreaker – handed their team – alongside Talor Gooch and Pat Perez – the $3m team title. The Fireballs GC – Sergio Garcia, Abraham Ancer, Carlos Ortiz and Eugenio Lopez-Chacarra – came in third.

“I played with DJ [Johnson] in London, as well, and played really nicely, and just kind of found a groove,” said Grace. “I’ve been feeling really comfortable. I’ve been hitting the shots that I see and things like that, and that's really important and gives you the confidence.

“Today was nothing different. From the first hole I hit the ball great. I made a couple of nice putts when it mattered, and obviously things go your way when you win a golf tournament.”

“Obviously Branden played really well,” Johnson said. “But I did get it back to where I was within one with six or seven holes to go, and then he decided to go on a little tear there birdieing every hole coming in.”

The £200m Saudi Arabia-backed golf league moves on to Bedminster at the end of this month before tournaments in the likes of Bangkok, Jeddah and Miami.

Grace won at 13 under par in Portland

Stokes’ men close in on record chase as Test team enter explosive new era, writes Matt Hardy

T

HE TARGET at Lord’s was 277, it was 299 at Trent Bridge and 296 at Headingley; but if England complete their chase of India on the final day of the fifth Test match against India today it will be a monumental chase of 378.

On Saturday afternoon, as England began – badly – chasing down a first innings total of over 400 on a rainy day in Birmingham, the thought of being within reach on the final day of this delayed series seemed distant.

But here, on the morning of the final day England are just 119 shy of completing a record run chase – and it really can go down as a team effort.

If this is what the Brendon McCullum-Ben Stokes era looks like on home turf then fans across the country will be hoping it never ends.

There remains work to do, but a 100run stand by openers Alex Lees and Zak Crawly was a welcome sight after a number of misfiring attempts, and the glorious partnership of 150 between stalwart Yorkshiremen Jonny Bairstow and Joe Root will make up a key part of the entry into the history books should this run chase be completed.

And again, following a new and welcome tradition in English cricket, day five is free.

Over 20,000 tickets were handed out yesterday in return for voluntary donations to the Bob Willis Foundation’s fight against prostate cancer – Saturday was Blue for Bob day.

INDIA LEAD

India lead this revisited series 2-1 but this Test – delayed from last year due to Indian Covid-19 fears – offered Stokes a new mentality.

The whitewash over New Zealand was one thing but coming from a series deficit to draw level and save face is a completely new battle.

India’s innings yesterday started to falter; Ravindra Jadeja, Rishabh Pant and Mohammed Shami among those who went cheaply – but the visitors had the scoreboard on their side.

Already over 100 runs ahead after the first innings were completed, India simply needed to build a score –

ENGLAND CLOSE IN ON SERIES DRAW and they set 378 as their defensive front.

Edgbaston cheered, jeered and entered into a wormhole of pandemonium as Lees past his half-century and Root and Bairstow hit 76 not out and 72 not out respectively.

And at stumps on day four, at a sundrenched Edgbaston, the duo walked off having again proven their undeniable importance to this squad.

Root, fresh off a player of the series gong against New Zealand, was steady; picking off any lazy bowling and working well with his partner to

378

The number of runs England would have chased down if they win today

*

rotate the strike and communicate.

Bairstow, one of world cricket’s inform Test players, did his thing – he

took his time to settle before launching into overdrive.

A five-innings run of 136, 162, 71 not out, 106 and 72 not out is sensational for a player many suggested should be left out over the winter.

DON’T TAKE ME HOME

He was dropped by Hanuma Vihari when he had amassed just 14 runs and dropped again by Pant – who has otherwise been brilliant across the opening four days both batting and keeping wicket – on 39.

India failed to take their chances,

and as today’s play get’s set to be played out in front of another sold out crowd – it’s ironic that much of England’s rebuild is coming from Yorkshire players; a county who have for so long, rightly, been the subject to much criticism.

So as the Barmy Army sing “Don’t take me home, please don’t take me home” this morning, and England edge closer to what would be their greatest run chase ever, there’s a growing desire of whatever is beginning to motor in English cricket to never, ever end.

20

SPORT

CITYAM.COM

TUESDAY 5 JULY 2022

GRACED WITH WIN Branden Grace wins second LIV Golf event PAGE 19

SPORT

T

ODAY’S play at the All England Club will feature British No1 Cameron Norrie as Wimbledon gets set to host a singles quarter-final involving a home player for the first time since 2017, five years ago.

Then it was the duo of Andy Murray and Johanna Konta, but today it is all about Norrie.

Relegated to the outside courts in the opening round of the tournament may just be the grounding experience any home No1 needs if they’re going to shine in the second week on Centre Court and Court One. A straight sets 6-0 7-6 6-3 win over world No100 Spaniard Pablo Andujar saw the Brit become the first to win a set at this year’s championships and the ninth seed had gotten his SW19 campaign off to a raucous start.

In a second round match against another Spaniard – the promising Jaume Munar – it was less than plain sailing.

Having won the first set in a regulation break of serve 6-4, Norrie lost the next two sets and suddenly became on the edge of packing his bags and heading home early.

But again the Briton produced a bagel and won the fourth and fifth sets 6-0 6-2 to avoid an upset – which have been common at this year’s championships – and progressed through to the third round.

ON A ROLL

Then it was the turn of the Americans – first Sam Johnson and then Tommy Paul. Johnson is a big serving six foot two player from Orange ranked 93 in the world.

Yet, like in his first round, Norrie won in straight sets. 6-4 6-1 6-0 the scoreline as Norrie completed a third bagel set in three matches.

And on Sunday afternoon, under the watchful eye of a near capacity Centre Court, Norrie reached his first Wimbledon quarter-final.

Tommy Paul, a long term friend of the Briton, was brushed aside 6-4 7-5 64 – much to the delight of the onlooking home crowd.

The South African born, New Zealand-raised Brit is on a Wimbledon charge and is the last home player standing. And when he goes up against unseeded David Goffin today on Court One, he’ll be aiming to be the first British man since Murray in 2016 to progress through to the semi-finals – of course it may be in his mind that Murray also won that year.

“Unfortunately I’m the last [Briton] standing,” Norrie said after his Round of 16 win. “But I think it’s even more reason for everyone to get behind me.”

“I’ve improved a lot and matured on the court and kept progressing with

CAM ON NORRIE Britain has its first SW19 quarter-finalist since 2017, and he’s in action today, writes Matt Hardy

my team,” he said afterwards.

“I’ve definitely improved mentally over the years and I’m way more mature as a player, and I think it shows.

“I’ve stayed patient with myself and embraced the grass surface – it’s probably not my favourite surface but this gives me a lot of confidence,” The former Indian Wells winner will face either six-time SW19 winner Novak Djokovic or rising sensation Jan-

It’s probably not my favourite surface but this [run of wins] gives me a lot of confidence

nik Sinner should he beat the 31-yearold Belgian this afternoon, but it’ll be no easy feat.

Goffin has history at this level as a three time Slam quarter-finalist – one of those coming at Wimbledon in 2019 – but was hampered with injury throughout 2021.

The course of these championships has been fascinating thus far with seeds losing early on, the absence of

Daniil Medvedev over his Russian nationality and the talk of lower attendances.

But this is it, the second week of Wimbledon and there is a Brit remaining. Cameron Norrie can follow in Konta and Murray’s footsteps of making semi-finals at the grass Grand Slam in recent years, but should he be successful it will be entirely his own storyline making the headlines.

MANCHESTER CITY OWNERS COMPLETE PALERMO BUY

BACK ROW CURRY OUT OF AUS TOUR WITH CONCUSSION

SPORTS DIGEST SAFE STANDING TO RETURN TO PREMIER LEAGUE THIS YEAR

£ Premier League and Championship clubs will be permitted to allow safe standing in areas of their stadiums, it was revealed yesterday. Clubs – including Manchester United and Tottenham Hotspur – took part in a government-commissioned trial earlier this year. “Thanks to a robust trial, thorough evidence and modern engineering, we are now ready to allow standing once again in our grounds,” said Culture Secretary Nadine Dorries. Designated standing areas have not been seen in the top flight since the mid 1990s following a report after Hillsborough.

ARSENAL SIGN JESUS AS MAN CITY COMPLETE PHILLIPS MOVE

£ Arsenal yesterday announced the singing of Gabriel Jesus while Man City confirmed they’d picked up Kalvin Phillips. Brazilian Jesus joins from Manchester City for a fee understood to be £45m and the forward is set wear the No9 shirt occupied by Alexandre Lacazette last season – the Frenchman has moved back to Lyon on a free transfer. Manchester City are understood to have also forked out around £45m for midfielder Phillips, who has signed a six-year deal with the Premier League champions.

SERENA SLAYER TAN LOSES AT WIMBLEDON AS NEDAL WINS

£ Harmony Tan, the slayer of 23-time Grand Slam winner Serena Williams, lost in the Round of 16 at Wimbledon yesterday as the French player fell to Amanda Anisimova in straight sets yesterday. On Centre Court, Rafael Nadal beat Botic van de Zandschulp 6-4 6-2 7-6 to progress through to the quarter-finals. Elsewhere at the All England Club, Nick Kyrgios won a five-set thriller against Brandon Nakashima and Simona Halep toppled Paula Badosa in straight sets to earn a last eight tie against the American Anisimova.

£ City Football Group (CFG), who own Manchester City, have completed the take over of Serie B team Palermo. The Italian side were relegated into the fourth division after going bankrupt but have recently been promoted twice in three seasons. The purchase adds the second division club to a portfolio which includes – alongside the Premier League champions – Melbourne City, Troyes, Mumbai City and New York City.

CFG chief executive Ferran Soriano said: “Palermo is a great and historic club with a strong and proud identity.”

£ England flanker Tom Curry will this week fly home from Australia after the back row failed concussion protocols in the days following his side’s 30-28 loss to the Wallabies on Saturday. England are yet to name a replacement for the Sale Sharks player but Eddie Jones’ squad has enough cover on the tour to not warrant calling somebody up. England are touring Australia for the first time since 2016 – where the tourists won 3-0 – but trail the series 1-0 with two Tests – in Brisbane and Sydney – remaining.